{"id":316608,"date":"2026-04-15T10:56:50","date_gmt":"2026-04-15T08:56:50","guid":{"rendered":"https:\/\/novanews.co.za\/tygerburger\/?p=316608"},"modified":"2026-04-15T11:48:00","modified_gmt":"2026-04-15T09:48:00","slug":"building-industry-warns-of-catastrophic-risks-from-cheap-contractors","status":"publish","type":"post","link":"https:\/\/novanews.co.za\/tygerburger\/building-industry-warns-of-catastrophic-risks-from-cheap-contractors\/","title":{"rendered":"Building industry warns of catastrophic risks from cheap contractors"},"content":{"rendered":"\n<p>The Building Industry Bargaining Council has warned that unregistered contractors pose serious safety risks following recent fatal building collapses in George and Ormonde.<\/p>\n\n\n\n<p>Speaking on 14 April, Danie Hattingh, spokesperson for business at the <a href=\"https:\/\/www.bibc.co.za\/\" type=\"link\" id=\"https:\/\/www.bibc.co.za\/\">Building Industry Bargaining Council<\/a> (BIBC), said building failures stem from more than just engineering problems.<\/p>\n\n\n\n<p>&#8220;Building collapses are often framed as engineering or safety failures, but we repeatedly see a breakdown in labour compliance and site control,&#8221; Hattingh said.<\/p>\n\n\n\n<p>Up to 38% of South Africa&#8217;s construction sector operates outside formal systems, according to International Labour Organisation figures cited by the BIBC.<\/p>\n\n\n\n<p><strong>ALSO READ: <\/strong><a href=\"https:\/\/novanews.co.za\/demands-for-answers-on-george-building-collapse-investigation\/\" type=\"link\" id=\"https:\/\/novanews.co.za\/demands-for-answers-on-george-building-collapse-investigation\/\">Demands for answers on George building collapse investigation<\/a><br><br>This widespread non-compliance allows contractors to undercut legitimate firms by an estimated 25% to 35% by avoiding statutory obligations including UIF, PAYE, and COIDA contributions.<\/p>\n\n\n\n<p>&#8220;Cheap labour is not a competitive advantage. It is a liability that undermines compliant businesses and weakens sector resilience,&#8221; Hattingh warned.<\/p>\n\n\n\n<p>The practice of keeping workers &#8220;off the books&#8221; to avoid levies creates serious traceability problems, particularly during emergencies.<\/p>\n\n\n\n<p>&#8220;When workers are not registered, documented, and traceable, the system fails,&#8221; he explained.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-legal-liability-remains-with-principal-contractors\">Legal liability remains with principal contractors<\/h2>\n\n\n\n<p>Despite complex subcontracting arrangements, principal contractors and developers retain ultimate legal responsibility under the Occupational Health and Safety Act and Construction Regulations.<\/p>\n\n\n\n<p>&#8220;Principal contractors may think risk is shifted through these arrangements, but the law is clear: you can delegate work, not accountability,&#8221; Hattingh said.<\/p>\n\n\n\n<p>The financial consequences of non-compliance are severe, with single audits potentially triggering back-pay, penalties and interest running into hundreds of thousands of rand.<\/p>\n\n\n\n<p>&#8220;In fatal cases, unpaid benefit obligations can reach up to R500 000 and more per deceased worker,&#8221; he added.<\/p>\n\n\n\n<p><strong>ALSO READ:<\/strong> <a href=\"https:\/\/novanews.co.za\/death-toll-rises-to-eight-in-ormonde-building-collapse\/\" type=\"link\" id=\"https:\/\/novanews.co.za\/death-toll-rises-to-eight-in-ormonde-building-collapse\/\">Death toll rises to eight in Ormonde building collapse<\/a><\/p>\n\n\n\n<p>The BIBC announced that enforcement activity will intensify in 2026 through multi-agency high-impact task teams involving the Department of Employment and Labour, SARS, Home Affairs, the police, and the BIBC.<\/p>\n\n\n\n<p>These teams have powers to issue immediate prohibition notices and shut down sites for serious non-compliance.<\/p>\n\n\n\n<p>Hattingh said enforcement will particularly target private estates and high-value developments as the industry moves away from the &#8220;passive client&#8221; model.<\/p>\n\n\n\n<p>&#8220;Where systems are not integrated into a unified compliance framework, accountability fragments and traceability weakens,&#8221; he explained.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-digital-integration-recommended\">Digital integration recommended<\/h2>\n\n\n\n<p>The BIBC is calling for integrated systems that align labour records, contractor registration, and site access control in real time.<\/p>\n\n\n\n<p>&#8220;What is required is an integrated system where labour records, contractor registration, and site access control are aligned, ideally digitally and in real time,&#8221; Hattingh said.<\/p>\n\n\n\n<p>He emphasised that compliance checking should become standard practice when appointing contractors.<\/p>\n\n\n\n<p>&#8220;For those appointing contractors, the questions are non-negotiable: is the contractor registered, are workers documented and compliant, and who is actually on site?&#8221; he said.<\/p>\n\n\n\n<p>&#8220;Because when cost-cutting replaces compliance, the consequences extend far beyond the construction site.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Building Industry Bargaining Council warns unregistered contractors pose safety risks following fatal collapses in George and 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