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Established in 2006, Seda Construction Incubator (SCI) is a public benefit organisation mandated to develop and mentor emerging construction companies in South Africa. The Core business of SCI is to develop emerging contractors through the infusion of both technical and business administration skills that are aligned with the introduction of technology in order to enhance the efficiency and management of their businesses.
Financial year 2015/2016 has been another year of successful delivery on our mandate with all our targets met. We are pleased to record a 7% increase in jobs created during the current financial year as we continue in a struggle to combat unemployment. Below is an indication of the total Women, youth and SMME Companies supported as well as their combined Turnover and Direct jobs that was created.View Annual Reports
The Incubator is aimed at providing support to selected participants for a period of three years by which each Emerging Contractor should have advanced by at least one financial level above their entry point on the CIDB register and be capable of operating unassisted in the open market. Should a particular contractor not wish to advance more than one CIDB financial grading, an alternative primary indicator will be agreed on, possibly “gross income or turnover” if multiple smaller projects are deemed to be the niche market of the particular contractor. The construction incubation model is one of the interventions, but not the only one that can make a significant impact to addressing the challenges faced by emerging contractors in South Africa. Most construction businesses (SMME) veto the services offered by the SCI as one of the solutions with regard to skills shortage. There is consensus amongst the majority of client bodies that the model offers a good strategy to assist emerging contractors. The level of formality the SCI model brings to the industry is also widely acknowledged and appreciated. . .
SCI provides support in three phases of development of the emerging contractors; Tender Phase Support, Construction Phase Support and General Administrative Support. We have identified these three areas as being the most critical in terms of the need for development and mentorship interventions. To date under current year in review, the Seda Construction Incubator supports 338 construction companies in South Africa.
Seda Construction Incubator is a well-resourced organization and is managed by the Chief Executive Officer (CEO) who is accountable to the Board of Trustees. The CEO is responsible for driving the organization at strategic level, assisted by the managers of core business units
In order to better serve our clients, SCI is making available the following elements to our contractors
In-house Professionals including construction management professionals, civil engineers, architects and electrical engineers. In seldom cases there is a need for quantity surveyors.
Whilst Mentors are for core technical skills, Business Development Officers (BDO’s) are responsible for the soft side of the business and their duties include the following: Compliance, CIDB renewals, CIPC returns, Tax compliance
The office space enables the contractors to have a conducive environment for the pricing of projects and the documents thereof, and book keeping of records in one place.
Both incubator staff and contractors share this facility. This brings an element of professionalism to the business incubated. This facility is for meeting purposes for both staff members and contractors
The resource centre is equipped with construction related software programmes. These are software programmes that are used by big companies. The idea behind this is to introduce big company’s processes to the emerging contractors
Our Helpdesk and Support Centre ensure that clients, staff and general public request are processed in a timeously mannerContact Support
We are very pleased to witness 10 years of successful operation of the organisation. One could have not imagine that the organisation that started with 7 contractors in 2006 and 1 branch could have grown to 11 branches in 4 provinces over a period of 12 years. Some of the achievements include more than 250 clients who have graduated out of the programme and more than 8000 jobs createdRead More
The Board of Trustees presents a diverse provision of skills, competencies, knowledge and experience. This cumulative wealth of experience has been instrumental to the success of SCI as well as the development of emerging contractors. Accordingly, the Board of Trustees exercises oversight on the management of the SCI programme.
SCI is to provide innovative structured support through infusion of business technical and technology interventions that lead to sustainable businesses, sustainable job creation and wealth creationl.
The mentorship model includes providing guidance to and facilitating the incubatees, who are selected through clear criteria for inclusion into the programme, to achieve financial and operational efficiency and success.
MENTORSHIP STAGES The program was developed around specific processes that can be found in any construction business: TENDER STAGE When the contractor wishes to acquire work in the form of contracts they need to be priced correctly, with clear profit margins, and all expenses to be recoverable ensuring a profitable business and clear financial formula for success. PRE-CONSTRUCTION After securing or being awarded the contract, there is a contractual period in which the contractor has to prepare for occupation or possession of the site. CONSTRUCTION MANAGEMENT Processes that are specifically the domain of the company directorship or management need to be properly and professionally managed.These necessary administrative functions are sometimes used as a measurement of capability by the attending professional consultant on the project. Correct, clear and concise understanding can ensure a pathway to recommendation for future and current projects. SITE SUPERVISION Interaction with the Site Foreman is essential in ensuring that the information and skill requirements are thoroughly understood by all role players in the transfer process. Stronger Site Supervision allows the contractor’s management team a certain amount of independence and autonomy, thereby creating opportunities
SCI recognises that from a business perspective, construction needs may include a range of services such as providing access to technology and to business development support services such as venture capital. The technical training that we provide ensures that incubatees are skilled enough to complete projects in the open market. Clients are coached in a range of skills in order to complete a SAQA qualification which is in line with a NQF Level 5 qualification and approved by the Construction CETA. The areas of training include the transfer of skills in General Building skills, Electrical Engineering skills and Civil Engineering Construction.
The outreach programme is aimed at level 1 and 2 CIDB contractors. The programme was introduced three years ago and has resulted in more than 8- contractors being supported in Dundee, INK area and Nelson Mandela Bay Municipality. The outreach programme has been included in the long and short term objectives of the next three years. The idea is to introduce an outreach programme in all branches of the Seda Construction Incubator. It has proven the impact of the programme in terms of job creation and poverty. .
We have a dedicated and committed team of staff who together make up the skills and services of the Seda Construction Incubator (SCI). We pride ourselves on the quality and excellence of the Business Mentors, Business Development Managers and the training offered. SCI has been nominated for four years in a row as the top achiever in the Incubation category by the DTI, an achievement which reflects our passion and commitment to attaining Centres of Excellence. SCI is a well resourced organisation which is managed by a CEO and is accountable to it’s own Board of Trustees, with head office situated in Durban.
ADDRESSING A NEED
There has been political will and administrative support for the SCI’s Contractor Development Programme. This is demonstrated by the fact that all incubator centres are implemented in partnership with a municipality. Administrative support from DTI and the municipalities ensures the continuous support of the programme over a period of time.
WE FOCUS ON DEVELOPING:
Women in construction
Youth in construction
Civil engineering contractors
General building contractors
Electrical engineering contractors
Mechanical engineering as well as specialised construction contractors registered with the CIDB
“Developing Skills, Building a Future”.
“SCI is here to help you and is the leader in the development of competitive construction SMMEs” Mduduzi and Siyanda Zondi
“SCI has been a
revelation to me in ensuring that I succeed in challenging
the powerful structure that in most cases, hard to achieve
a small business.”
Vulindlela Gabriel Mkhize
Vulindlela Gabriel Mkhize
supporting emerging contractors becomes even more pertinent during these trying times in the economy.
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