The legal regulation of construction procurement as a relational construct in South Africa

Anthony, Allison Megan (2018-03)

Thesis (LLD)--Stellenbosch University, 2018.

Thesis

ENGLISH ABSTRACT : Public procurement is generally considered to be the acquisition of goods or services by the government. It contributes a large deal to the country’s economy and involves the expenditure of public funds. Due to its importance, public procurement is regulated by section 217 of the Constitution which provides that organs of state when contracting for goods or services must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective. Public procurement in the construction industry forms part of the regulation of general public procurement under section 217. Construction procurement is also regulated by sector specific legal rules and constitutes a large part of the country’s expenditure budget. Public procurement is regulated by a hybrid legal system. This means that both public and private law apply to the procurement process. Based on the public nature of public procurement, private law is ill suited to the nuances of the complex, multi-party procurement process. Moreover, the doctrinal nature of private law is inadequate in addressing the needs of the various role-players involved in public procurement. This is exacerbated by the even more complex and highly specialised field of construction procurement which often lasts for long periods of time. The question this dissertation aims to address is whether an alternative approach to public procurement law may assist in the manner in which it is regulated given the various inadequacies experienced. More specifically, the aim is to determine whether a relational perspective or understanding of construction procurement law in South Africa assists in formulating regulation in this area of law. Chapter one sets out the research question to be answered, the hypothesis on which the dissertation is based and the methodology employed. Chapter two establishes the definition of construction procurement, its legal regulation, and recommends the separate categorisation of construction works and thus construction procurement in section 217 of the Constitution. Chapter three addresses the nature of the legal rules which regulate construction procurement and the manner in which these rules should be interpreted. Following this, chapter four investigates relational contract theory created and developed in the American private law, its nature and whether it can be applied in South African public procurement law. This chapter recommends a relational procurement law to address the current inadequacies in public procurement law. Public-private partnerships form a large percentage of the country’s infrastructure budget and are increasingly used as a means to deliver infrastructure in South Africa. As such, chapter five establishes whether relational procurement law can be implemented in the public-private partnership legal regime. In addition to the acquisition of goods or services, public procurement can be used for the promotion of collateral objectives such as socio-economic goals in the form of preferring certain groups of individuals when government contracts are awarded. This has been especially important in the South African context. Therefore, the working of relational procurement law within the preferential procurement regime is important. Chapter six thus discusses a relational preferential procurement law. The concluding chapter collectively refers to that discussed in preceding chapters including the conclusions reached and attempts to answer the research question as to whether a relational understanding of construction procurement law in South Africa assists the regulation of this area of law.

AFRIKAANSE OPSOMMING : Openbare verkryging word algemeen beskou as die verkryging van goedere of dienste deur die regering. Dit dra grootliks by tot die land se ekonomie en behels die besteding van openbare fondse. As gevolg van die belangrikheid daarvan, word openbare verkryging gereguleer deur artikel 217 van die Grondwet wat voorsiening maak dat staatsorgane wat kontrakte vir goedere of dienste sluit dit ooreenkomstig 'n billike, billike, deursigtige, mededingende en koste-effektiewe stelsel doen. Openbare verkryging in die konstruksiebedryf maak deel uit van die regulering van algemene openbare verkrygings ingevolge artikel 217. Konstruksie verkryging word ook gereguleer deur sektor spesifieke regsreëls en vorm 'n groot deel van die land se bestedingsbegroting. Openbare verkryging word gereguleer deur 'n hibriede regstelsel. Dit beteken dat beide die publiek en privaatreg op die verkrygingsproses van toepassing is. Op grond van die publieke aard van openbare kontrakte is die privaatreg sleg geskik vir die nuanses van die komplekse, veelparty-verkrygingsproses. Daarbenewens is die leerstellige aard van die privaatreg onvoldoende om die behoeftes van die verskillende rolspelers wat by openbare verkrygings betrokke is, aan te spreek. Dit word vererger deur die selfs meer komplekse en hoogs gespesialiseerde gebied van konstruksie verkryging wat dikwels vir lang tydperke duur. Die vraag wat hierdie skripsie daarop gemik is, is of 'n alternatiewe benadering tot die reg op die verkryging en die wyse waarop dit gereguleer word gebruik kan word, gegewe die verskillende onvoldoende ervarings. Meer spesifiek is die doel om vas te stel of 'n verhoudingsperspektief of begrip van die konstruksieverkrygingsreg in Suid-Afrika help om regulering in hierdie regsgebied te formuleer. Hoofstuk een stel die navorsingsvraag wat beantwoord moet word, die hipotese waarop die verhandeling gebaseer is en die metodologie wat gebruik word. Hoofstuk twee bepaal die definisie van konstruksieverkryging, die wetlike regulasie daarvan en beveel die afsonderlike kategorisering van konstruksiewerke en dus konstruksieverkryging in artikel 217 van die Grondwet aan. Hoofstuk drie handel oor die aard van die regsreëls wat konstruksieverkryging reguleer en die wyse waarop hierdie reëls vertolk moet word. Hierna ondersoek hoofstuk vier die verbandhoudende kontrakteorie wat in die Amerikaanse privaatreg geskep en ontwikkel is, die aard daarvan en of dit in die Suid-Afrikaanse reg op openbare verkrygings toegepas kan word. Hierdie hoofstuk beveel 'n verhoudingsverkrygingswet aan om die huidige tekortkominge in die wet op openbare verkrygings aan te spreek. Openbare-private vennootskappe vorm 'n groot persentasie van die land se infrastruktuurbegroting en word toenemend gebruik as 'n manier om infrastruktuur in Suid-Afrika te lewer. As sodanig bepaal hoofstuk vyf of die wet op die verhoudingsverkryging in die regsproses van openbare-private vennootskappe geïmplementeer kan word. Benewens die verkryging van goedere of dienste, kan openbare verkrygings gebruik word vir die bevordering van kollaterale doelwitte soos sosio-ekonomiese doelwitte in die vorm van voorkeur van sekere groepe individue wanneer regeringskontrakte toegeken word. Dit was veral belangrik in die Suid-Afrikaanse konteks. Daarom is die werking van verhoudingsverkrygingsreg binne die voorkeurverkrygingsregime belangrik. Hoofstuk ses bespreek dus 'n relasionele voorkeurverkrygingswet. In die afsluitende hoofstuk word gesamentlik verwys na wat in vorige hoofstukke bespreek is, insluitende die gevolgtrekkings wat bereik is en poog om die navorsingsvraag te beantwoord of 'n verstandelike begrip van die konstruksieverkrygingswet in Suid-Afrika die regulering van hierdie regsgebied help.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/103815
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