Sound human resource management (HRM) is not a “nice-to-have” for South African businesses – it is a survival issue. Effective HR practices help you attract and keep good staff, avoid costly disputes, and stay on the right side of the law. Research on South African SMMEs shows that weak or informal HR procedures are a major reason many small businesses fail in their early years.

Even if there are only a handful of employees, you are still an employer in terms of South African labour law. Good HRM helps you to:

Recruit the right people, place them correctly, and manage performance in a structured way, which directly improves productivity and profitability.

Build skills and loyalty through training and fair treatment, which reduces staff turnover and the disruption and cost that come with constantly replacing people.

Small businesses often rely on close personal relationships and “informal” understandings, but as soon as there is a conflict, the absence of proper HR systems becomes a serious risk. Clear, documented HR practices provide consistency and protect both the employer and employees.

HR policies are the “rules of the game” in your business. They explain what is expected from employees and what they can expect from you. For South African small businesses, written policies are essential to:

Align with labour laws (for example, around working hours, leave, overtime, and termination), helping you avoid accidental non-compliance.

Create a predictable, transparent environment where employees understand standards of conduct, grievance procedures, and consequences for misconduct.

Key policies usually include contracts of employment, a code of conduct, disciplinary and grievance procedures, leave policy, working hours/overtime rules, vehicle policy, asset equipment and tool policy, and policies on issues such as harassment and discrimination. Having these in writing, communicating them, and applying them consistently can prevent disputes before they start and show any inspector or commissioner that you take compliance seriously.

In South Africa, discipline is not just about “getting rid of problem employees” – it is about correcting behaviour in a way that is substantively and procedurally fair, as required by the Labour Relations Act (LRA) and the Code of Good Practice: Dismissal. This means:

Substantive fairness: there must be a valid, fair reason for any warning or dismissal, and the sanction must fit the seriousness of the misconduct.

Procedural fairness: the employee must know the charges, have reasonable time to prepare, be allowed representation by a fellow employee or union representative, and be given a proper opportunity to state their case at a hearing.

Progressive discipline is expected in most cases: counselling or verbal warnings, then written warnings, then a final written warning, before dismissal for repeated misconduct, unless the case is so serious that dismissal for a first offence is justified (e.g. gross dishonesty or violence). Clear disciplinary policies, notices and records demonstrate that you followed a fair process.

Ignoring HR management or “doing things informally” exposes a business to significant legal and financial risk. Consequences of non-compliance with labour legislation can include:

Unfair dismissal or unfair labour practice cases at the CCMA or Bargaining Council, which may result in reinstatement of the employee or compensation of up to 12 months’ remuneration (and up to 24 months in automatically unfair dismissal cases).

Compliance orders, fines, and possible enforcement from the Department of Employment and Labour or bargaining council for breaches of basic conditions of employment or breaches of the collective agreement (e.g. not keeping proper records, underpaying, or exceeding maximum hours without proper overtime arrangements).

Beyond the direct costs, there is also reputational damage, management time spent at the CCMA / Bargaining Council or inspections, and disruption to operations. Having sound HR policies and consistently applying fair procedures dramatically reduces these risks and supports long-term business stability.

To summarise, “doing HR properly” is just as important as quality work output, sales and finance etc.

Official Notice

Notice from BIBC pertaining to updated system relating to foreigners

Dear Employer,

Please note the following system changes and updates that have been implemented to strengthen compliance and ensure the timely management of documentation and updates to employee information on the eesi© 2.0 system.

Disputes arising on modern day construction projects typically involve extraordinarily complex factual scenarios, technical issues and legal issues. Were the ancients concerned with how to resolve problems involving construction? The principles of law pertaining to the built environment can be traced back several thousand years.

The earliest known principles of construction law can be found in the Code of Hammurabi. Hammurabi was the sixth king of Babylon and ruled from 1792 BC to 1750 BC. The Code of Hammurabi contained 282 laws inscribed on twelve stone tablets which were placed in public view.

Hammurabi’s Code established the concept of civil damages, whereby one must pay compensation for defective work – a concept that has survived to this day. The code clearly recognized a responsibility of works risk, care of the works, the site and to work with skill care and diligence. One of the first building codes were “published” in Deuteronomy 22:8

The concept of parapets and handrails survived until today, and fortunately the extremely harsh remedies in terms of code 229 to 231 set out in Hammurabi’s Code has disappeared.

In other words, if the Plant, workmanship or materials do not comply with the provisions of Clause 7.2.1, it is considered defective.

The MBSA House Building and Small Contracts Agreement (2005 edition) follows the same definition in principle but states that hairline cracks due to normal settlement, shrinkage or expansion which appear after Practical Completion shall not constitute a defect.

In other words, if the workmanship or materials do not comply with the documentation (the contract, drawings, specifications, and the like) that constitutes the agreement, it is considered defective.

To allege and prove a defect, the drafter and compiler of the tender and subsequent contract documents must ensure that all matters relating to materials and workmanship are clearly specified as well as the criterion to measure compliance (or not). In the absence of clear specifications or drawings, a contractor may rely on “acceptable industry standards” which may not be sufficient or acceptable to the Employer under the Contract.

THEUNIS VAN ZYL

INDEPENDENT ARBITRATOR, ADJUDICATOR, MEDIATOR  |  CONSTRUCTION CLAIMS EXPERT
PR TECH ENG, PR CM, PR CPM, FSAICE, A A Arb, NECReg

021 981 4229  /  theunis@vzagroup.com  /  www.zagroup.com

The MBSA hosted an industry specific webinar in April 2026. The topic of this webinar was:

FUEL PRICE SHOCK: Contractual Recovery, Risk Allocations, and Survival Strategies for Contractors

The Association sent out an invitation to all members to attend this free webinar which has a very relevant topic pertaining to the increase in petrol and diesel prices in South Africa and how it affects contractor with specific reference to their current contracts.

The guest speaker, Prof. Waldo Krugell addressed the topic of “Energy Market Volatility and Its Direct Impact on Construction Cost and Contracts”.

This was followed by a panel discussion which dealt with the following issue:

CONTRACTUAL RESOURCES AND RISK MANAGEMENT UNDER JBCC, GCC AND MBSA FRAMEWORKS

This session covered critical aspects on the issue and provided insights for the business continuity and risk management, we therefore encourage you to take a few minutes out of your schedule to listen to the recording of the webinar.

Should you not have been able to attend the live webinar, MBSA has provided a link where you can view the webinar on YouTube.

South Africa’s construction sector continues to experience fatal building failures, including the George and Ormonde collapses in 2024 and 2026. While causes differ, these incidents consistently reflect weak oversight, fragmented accountability, and limited visibility of who is on site.

According to the International Labour Organisation, up to 38% of South Africa’s construction sector, of which the building industry is a significant part, operates outside formal systems, signalling significant non-compliance risk. For the BIBC, the implication is simple: if you don’t know who is on your site, you don’t know your risk.

This risk is amplified by layered labour structures involving subcontractors and labour brokers, where multiple ‘givers of work’ operate without real-time visibility or control over who is on site. “Where systems are not integrated into a unified compliance framework, accountability fragments and traceability weakens,” continues Hattingh, enabling non-compliant operators to undercut costs by bypassing wages, benefits, tax and protections.

This distortion reshapes the market, with non-compliant contractors undercutting compliant firms by an estimated 25% – 35%. “Cheap labour is not a competitive advantage. It is a liability that undermines compliant businesses and weakens sector resilience,” he says.

In the Western Cape, BIBC non-compliance is often an early warning sign. “To avoid levies, contractors keep workers off the books,” says Hattingh. “That triggers a domino effect: no UIF, PAYE, COIDA (Compensation for Occupational Injuries and Diseases Act) or structured training and safety.” The result is lower standards with workers lacking proper induction, Personal Protective Equipment (PPE) and skills verification, and where health and safety files are often generic rather than site-specific.

A key driver is the shift from master builder models to layered contracting, with reliance on subcontractors and labour brokers. While responsibility is delegated on paper, legal accountability remains unchanged.

The financial appeal of non-compliant labour is also short-lived. “A single audit can trigger back-pay, penalties and interest running into hundreds of thousands of rand,” Hattingh says. “In fatal cases, unpaid benefit obligations can reach up to R500,000 and more, per deceased worker.” When the subcontractor’s business collapses as an outcome of a building collapse, for example, liability shifts to the principal contractor, developer, or giver of work.

The inability to account for workers in emergencies is a structural outcome of non-compliance. “Off-book workers don’t appear on site registers,” says Hattingh. “In a collapse, they become invisible, delaying rescue, complicating investigations, and deepening distress for families.”

While the BIBC does not regulate health and safety, its compliance framework enables traceability. Registration ensures workers are identifiable, employment is recorded, and benefits can be activated when needed.

“What is required is an integrated system where labour records, contractor registration, and site access control are aligned, ideally digitally and in real time,” he says. “Without that, oversight is fragmented from the start.”

In response, enforcement is shifting to multi-agency High Impact Task Teams (HITTs) including the Department of Employment and Labour (DoEL), SARS, Home Affairs, SAPS and the BIBC, enabling coordinated enforcement that allows for immediate prohibition notices, including full site shutdowns for serious non-compliance. At the same time, compliance is being increasingly embedded in financial processes.

Looking ahead to 2026, enforcement is set to intensify, especially in private estates and high-value developments, shifting towards a system-based compliance model with stronger powers and penalties. A key shift is the end of the ‘passive client’ model, with developers and project owners carrying non-delegable responsibility for labour and safety compliance.

For the BIBC, compliance is not administration, it is protection. It ensures fair pay, benefits, death and injury recourse, and stronger site traceability.

For those appointing contractors, the questions are non-negotiable: is the contractor registered, are workers documented and compliant, and who is actually on site?

Because when cost-cutting replaces compliance, the consequences extend far beyond the construction site.

Danie Hattingh

Principal officer BIBC pension fund

Member Action Required

UPDATING OF MEMBER INFORMATION ON THE DATABASE AND WEBSITE

Please take a few minutes to update your company information. To effectively market your legitimate business interests – we rely on an accurate, up-to-date member database. Please take a moment to review and update your business particulars on our website (www.mbaboland.org.za).

The following step-by-step process will assist you in viewing your company information that is currently on our database:

1. Access the MBA Boland website at https://mbaboland.org.za/ and ensure that you are on the home page.
2. Proceed to “SEARCH THE DIRECTORY” and then “SEARCH OUR MEMBERS” which can be found on the left side of the page.
3. Type in the name of your company and press “SEARCH”.
4. The name of your company will appear with summarized information currently on the database under the following headings:

NB: TO VIEW YOUR FULL COMPANY INFORMATION THAT IS ON THE DATABASE, CLICK ON THE COMPANY NAME THAT IS HIGHLIGHTED ABOVE THE INFORMATION.

Should your information on the database be outdated, please send an email to info@mbaboland.org.za with the correct information that needs to be under each of the headings listed above.

Building Confidence in Construction

By Mark van Eyssen – DL Sure, Paarl

The construction industry remains one of the most important drivers of economic growth in the Boland and broader Western Cape. As members of the Master Builders Association Boland, DL Sure understands the risks, pressures and responsibilities faced by contractors, developers, suppliers and professionals operating in this demanding environment.

In today’s construction sector, insurance is no longer simply a compliance requirement, it is an essential part of protecting projects, cash flow, reputations and long-term business sustainability.

At DL Sure, our value proposition is centred around providing practical risk and insurance solutions tailored to the construction industry.

Construction projects involve significant financial and operational risk. Delays, damage, liability claims, theft, weather events and contractual disputes can all have major financial consequences.

DL Sure assists contractors and developers with:

We focus on ensuring that clients not only have the correct cover in place, but also understand their contractual and risk management responsibilities before problems arise.

Suppliers, merchants, architects, engineers, project managers and consultants all play critical roles within the construction sector and face unique operational and liability exposures.

DL Sure provides tailored insurance and risk solutions that help protect:

At DL Sure, we believe our role extends beyond simply placing insurance policies. We aim to be a trusted risk management partner to the construction industry by assisting clients with:

Through our involvement with MBA Boland and our commitment to the local business community, DL Sure remains dedicated to helping construction businesses operate with greater confidence, protection and long-term sustainability.

Because in construction, protecting the project is just as important as building it.

Markus Nortier

Scaffold Specialist and Safety Trainer  |  Founder, Phine Academy
Cape Town, South Africa  |  SANS 10085-1:2024 Specialist

In the South African construction industry, scaffolding is far more than a temporary structure. It is a productivity platform – a working environment that, when built correctly and compliantly, can determine whether a project meets its programme, controls costs, and gets workers home safely. Yet too many contractors still treat scaffolding as a reactive afterthought rather than a proactive project management tool.

This article makes the business case: compliant, well-planned scaffolding is not a cost burden – it is a productivity investment. It draws on South African law, global safety research, and on-site experience to show why doing it right the first time is always the smarter choice.

Global and local research consistently shows that scaffold-related incidents and non-compliance are among the most significant drivers of construction delays, cost overruns, and human tragedy.

Scaffold compliance in South Africa is governed by a robust legislative framework. Ignorance of these requirements is not a defence – and non-compliance exposes employers, contractors, and supervisors to criminal liability, civil claims, and project shutdowns.

1. Zero Unplanned Stoppages

   A scaffold that is erected to SANS 10085-1:2024 specifications and signed off by a competent person will not be shut down by a DoL inspector. It will not collapse mid-shift. It will not require last-minute bracing. Planned downtime (shifts) beats unplanned downtime (incidents) every single time.

   Research insight: A 2021 study by Loughborough University found that construction sites with formal scaffold inspection and handover procedures experienced 42% fewer work stoppages than those relying on informal checks. Each stoppage cost an average of 4.6 productive work-hours per incident.
2. Faster Access Means Faster Progress

   A scaffold designed with the job in mind – correct platform width for the work being performed, birdcage layouts for tank work, cantilever access for restricted ground conditions – allows trades to move faster, carry tools efficiently, and work without constant repositioning.

   Under Regulation 16 of the Construction Regulations, scaffold platforms must be wide enough for the safe passage of persons and materials. Compliance here is not a constraint – it is a design brief that directly serves the programme.

3. Reduced Rework and Material Damage

   Scaffold failures and near-misses often result in damaged materials, tools, and partially completed work. A single scaffold collapse on a cladding project can set a programme back weeks and trigger an entire QA re-inspection cycle. The CIDB reported in 2022 that rework attributable to scaffold-related incidents accounted for 8-12% of total construction costs on affected projects in South Africa.

4. Predictable Programme Management

   When scaffolding is planned as part of the construction sequence – with handover certificates, defined load classes, and inspection intervals built into the programme – the entire project becomes more predictable. Subcontractors know when access is available, which drives parallel trades and reduces idle time.

   The scaffold handover certificate required under Construction Regulation 16(4) is not just a legal document. It is a project management trigger – it tells the team that a safe, verified work platform is ready.

5. Lower Insurance Premiums and Claim History

   COID contributions and professional indemnity premiums are increasingly risk-rated in South Africa. Contractors with a clean scaffold inspection history, maintained scaffold registers, and documented competency records pay less. Those with incident history pay significantly more – or lose cover entirely.

Construction Regulation 16(1) is unambiguous: scaffolding may only be erected, altered, and dismantled by competent persons. The definition of competency under the OHS Act requires both formal training and practical experience.

This has a direct productivity implication. A trained scaffolding team works faster, makes fewer errors, requires less supervision, and can identify hazards before they become incidents. Investing in scaffold erector training is not a compliance tick-box – it is a workforce capability investment with measurable returns.

• Read and implement a Scaffold Method Statement before erection begins.
• Calculate and apply the correct base jack extension and sole plate sizing per SANS 10085-1:2024.
• Apply ties at the correct intervals (SANS Table 8: 1:3 ratio for most freestanding scaffolds).
• Complete scaffold handover inspections and sign the register before any trade accesses the platform.
• Identify load class requirements and ensure platforms are not overloaded.
• Inspect after rain, wind events, or any activity that could affect scaffold stability.

Before allowing any worker onto a scaffold, confirm the following:

• Scaffold erected by a competent person (trained and experienced erector)
• Scaffold register up to date and available on site
• Handover certificate signed by the competent person
• Load class clearly marked on the scaffold
• Base jacks on sole plates, not directly on unstable ground
• Ties installed at the correct intervals per SANS 10085-1:2024 Table 8
• Full-length guardrails (top rail, mid rail, and toe board) installed
• Access ladder secured and positioned correctly
• Fall Protection Plan in place and communicated to all workers
• Last inspection date recorded – re-inspect after any adverse weather or disturbance

The data is clear. The law is clear. And on every site where scaffolding has been planned, erected, and maintained correctly, the programme benefits are tangible. Safe scaffolding is not a compromise with productivity – it is the foundation of it.

South African contractors who treat SANS 10085-1:2024 compliance as a minimum standard – not a maximum aspiration – are the ones meeting programme milestones, managing costs, and building reputations that win the next contract.

Markus Nortier

Markus Nortier is the founder of Phine Academy, a South African occupational health and safety training provider based in Cape Town. He is a SAQA-accredited facilitator specialising in scaffolding safety, working at heights, and construction compliance under SANS 10085-1:2024, the OHS Act 85/1993, and Construction Regulations 2014. Phine Academy delivers practical, competency-based training to scaffold erectors, supervisors, and safety officers across the Western Cape and beyond.

www.phineacademy.co.za  |  training@phineacademy.co.za

The 2026 Master Builders South Africa Annual Congress will be held on 3 – 4 September 2026 at the Capital, Zimbali, KZN.

This year’s Congress will be hosted under the theme:

Below are various interesting news articles which have appeared on various sites on the internet. Follow the link to each article to read the article and to obtain more information on each article and full information of the publisher and author of the article.

Acknowledgement is given to all publishers and authors.

New Members

WE WELCOME OUR NEWEST MEMBERS

A warm welcome to our newest members that have joined the Master Builders Association Boland.

Whether you’re navigating labour relations, health and safety compliance, or the latest municipal infrastructure projects, we’re thrilled to have you on board. As part of our community, you’ll gain access to expert resources, networking opportunities, and updates on South African construction standards to support your success.

Let’s build a stronger industry together!

The list below indicates all new members that joined the Association since the publication of our last newsletter:

Please take a few minutes to update your company information. To effectively market your legitimate business interests – we rely on an accurate, up-to-date member database. Please take a moment to review and update your business particulars on our website (www.mbaboland.org.za).

The following step-by-step process will assist you in viewing your company information that is currently on our database:

1. Access the MBA Boland website at https://mbaboland.org.za/ and ensure that you are on the home page.
2. Proceed to “SEARCH THE DIRECTORY” and then “SEARCH OUR MEMBERS” which can be found on the left side of the page.
3. Type in the name of your company and press “SEARCH”.
4. The name of your company will appear with summarized information currently on the database under the following headings:

NB: TO VIEW YOUR FULL COMPANY INFORMATION THAT IS ON THE DATABASE, CLICK ON THE COMPANY NAME THAT IS HIGHLIGHTED ABOVE THE INFORMATION.

Should your information on the database be outdated, please send an email to info@mbaboland.org.za with the correct information that needs to be under each of the headings listed above.

Exchange rates are indicative and fetched live from open market data. Fuel prices are official DMRE figures effective 6 May 2026 and subject to change on 3 June 2026. All prices in South African Rand (ZAR). Source: Department of Mineral and Petroleum Resources, Central Energy Fund (CEF), Frankfurter API.

Venue Hire

Bennos @ MBA Boland

23 Concordia Street, Southern Paarl

Discover the Perfect Venue for Your Next Meeting, Function, Event, or Party!

Looking for a versatile space in Paarl that ticks all the boxes? Our function facilities are designed for seamless gatherings for up to 50 people, blending comfort and convenience with a personal touch.

Whether it’s a corporate strategy session, birthday bash, product launch, or family celebration, our all-in-one venue delivers professional vibes with a personal touch. Fully equipped, easy access, and competitively priced – book now and elevate your event!

Click any photo to enlarge.

Parking and Entrance

Parking and Entrance

External Seating

External Seating

Veranda Area

Veranda Area

Veranda Area

Bar Counter and Catering Area

Braai in the Bar Area

View from Veranda into Bar Area

External Braai Area

External Braai Area

Main Hall

Main Hall – Meeting Setup

Setup as per Client Needs

Setup as per Client Needs

Ever thought about reaching hundreds of builders and contractors with one simple move? Our Master Builders Association Boland website and newsletter are the perfect ways to showcase your products/services and grow your business.

Whether you’re selling tools, materials, performing construction or maintenance work, or offering specialised services, our members are actively looking for trusted suppliers and contractors just like you.

Get your advert on our website and/or in our next edition of the newsletter and connect directly with the role-players in the industry and industry’s decision-makers.

Contact us today to reserve your advertising space!

Place an advert on the MBA Boland Website promoting your business to other members of the Association and anyone who visits our website. The section “Featured Companies” which appears at the bottom of all pages on the website features the logos of companies using this method to advertise. By clicking on the relevant company logo, the link will take you directly to the company’s website.

Place an advert in our newsletter promoting your business to other members of the Association and readers of the newsletter.