The implications of utilising small, medium and micro sized enterprises on construction projects

The National Development Plan envisages that eleven million jobs will be created in South Africa by small and medium enterprises (SME) by 2030. This vehicle aims to generate employment opportunities, redistribute income and contribute to poverty alleviation. This research highlights the main hurdles associated with the appointment of small, medium and micro-enterprise (SMME) contractors while providing recommendations geared towards the development of a sustainable industry. This study focuses on the cost, quality, programme, and health and safety implications of utilising SMMEs on construction projects. The study is seen from the perspective of the client’s representatives on construction projects and it focuses on South African National Roads Agency Limited (SANRAL) projects in the Eastern Cape. The respondents answered a structured web-based questionnaire which included open and closed questions. The research determined that in order to provide the best quality work, at the best price, on time, and in a safe manner, SMMEs who are employed on construction projects should be experienced or should be trained and mentored, or both. To ensure that SMMEs function at the required level with regard to the cost of their service, the quality of work, construction duration, and health and safety, it is fundamental to train and mentor the SMMEs. In order to assist SMMEs, they should be supported by providing construction material, the required tools, and personal protective equipment at the start of a project. It was proposed that SMME guidelines be drafted in order to standardise implementation methodologies which can be applied throughout the construction industry