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It is a commitment to the empowerment and development of local communities. By providing local subcontractors with the necessary support, supervision, and certification, Khato Civils is fostering a sustainable ecosystem where local businesses can thrive and contribute to the nation's growth.

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Sizwe sama Yende

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One of the major black-owned construction companies in South Africa has adopted a guiding principle of allocating 30 to 40% of work to local companies and suppliers.

Khato Civils (Pty) Ltd, which also has an impressive record of implementing massive and complex projects outside the country, believes that big companies must apply concerted effort to engage and empower local contractors suppliers where they are contracted to work.

Khato Civils chief executive officer, Mongezi Mnyani, called on African companies to take a leading role in the continent’s infrastructural projects.

“Any progressive construction company must never try and undermine what local companies can do. If you show up in these communities biased and not willing to engage, you will fail,” Mnyani said.

“These locals must therefore be subcontracted in order to upskill their capabilities and also grow the local economy. Our core guiding principle is that 30-40% of the works must be subcontracted to local companies and suppliers in all our projects,” he added.

The country’s construction industry has been troubled by a construction mafia, that pretends to be business forum, making demands on main contractors. Khato Civils has, however, voluntarily adopted empowering emerging contractors as its inherent responsibility.

More than local 100 subcontractors hired

Khato Civils, said Mnyani, had already been deliberately hiring local subcontractors in all its projects to leave a lasting legacy in places the company has been contracted to work. For example:

• In Giyani, where the company was awarded a R5 billion water supply project for 55 villages, it employed 62 sub-contractors on all bulk line branches. Khato Civils also transferred skills through training of 29 interns and 165 borehole operators;
• In Hammanskraal, Khato Civils employed 18 local sub-contractors for a bulk water and sewer project;
• Ten subcontractors were employed for the M1 Double Decker Bridge rehabilitation and upgrade in Johannesburg;
• For the Polokwane Wastewater Treatment Works, 11 local SMMEs were contracted for various services and works. A further 11 locals were employed under the Expanded Public Works Programme as well as two engineering students for experiential training;
• Khato Civils employed 23 subcontractors in Botswana and four students. Here, the company was contracted to construct the P1.1 billion (R1.5 billion) Mmamashia water treatment plant, which is the biggest in southern Africa.

Mnyani said that it was imperative that big contractors and owners of projects must pay the sub-contractors on time to assist with their cashflow requirements.

“Clients must pay for works done on time as per the contractual obligations so that contractors can continue working and sustaining own operations and be able to complete the works within the agreed time frames,” he said.

Mnyani said that at the core of Khato Civils' empowerment strategy is a meticulous process for appointing subcontractors. He said that a dedicated committee comprising engineers and procurement personnel assessed potential subcontractors based on their capacity to deliver quality work within the specified timeframe.

This rigorous selection process, he said, ensured that only the most capable local businesses were chosen, providing them with valuable opportunities to develop their skills and gain experience.

Supervision and Support

Mnyani said that the subcontractors were not left to navigate their tasks alone. He said that Khato Civils ensured that each subcontractor underwenr a thorough induction to understand and comply with project regulations and standards.

“Supervision is provided at every phase of the project by a team that includes the client’s resident engineer, Khato Civils’ project manager, quantity surveyor, project assistants, and quality assurance personnel. This collaborative oversight guarantees that work is completed to the highest quality standards, with Khato Civils maintaining overall project liability.”

He said that Khato Civil empowerment through subcontracting was also about flexibility and inclusivity.

Subcontractors were given control over their time and resource allocation, allowing them to manage their work schedules effectively.

“When a project requires different skills, Khato Civils prioritizes existing subcontractors for these opportunities, enabling them to diversify their experience and expertise. This inclusive approach ensures that local businesses can continuously evolve and expand their capabilities,” Mnyani said.

Certification

Khato Civils issued completion certificates to the empowered subcontractors upon the successful conclusion of their projects.

Mnyani said these certificates served as tangible proof of their skills and experience, opening doors to similar opportunities within South Africa, Botswana and beyond.

This certification process not only validates their work but also enhances their credibility and competitiveness in the market and increase their construction gradings, he said.

More than just a business approach

Khato Civils' subcontracting strategy is more than just a business approach, Mnyani said.

“It is a commitment to the empowerment and development of local communities. By providing local subcontractors with the necessary support, supervision, and certification, Khato Civils is fostering a sustainable ecosystem where local businesses can thrive and contribute to the nation's growth. Through this strategic empowerment, Khato Civils is not only building infrastructure but also building the future of businesspeople,” he said.

Khato Civils is, on the other hand, engaged in a communication campaign to raise awareness of the challenges that entrepreneurs and professionals face as they try to play a role in building the continent’s infrastructure.

“African entrepreneurs are often locked out of the development of their own nations because the majority of infrastructure projects were awarded to multinational firms and many countries lacked legislation biased to local sub-contracting and supplying,” Mnyani said.