Invitation to Firms
in the Construction
Industry to Engage
in Settlement of
Contraventions
of
the Competition Act
Issued by:
The Competition Commission of South Africa
77 Meintjies Street
The DTI Campus
Mulayo Building (Block C)
Sunnyside
Pretoria
South Africa
CONTENTS
Introduction ........................................................................................................................................................................ 1
Definitions ........................................................................................................................................................................... 2
PART 1: INVITATION TO ENTER INTO SETTLEMENT PROCESS ................................................................. 4
INVITATION ................................................................................................................................................................... 4
PROPOSED OFFER ....................................................................................................................................................... 4
The Nature of this Settlement Process................................................................................................................ 5
Requirements of this Settlement Process .......................................................................................................... 5
Administrative Penalties .......................................................................................................................................... 6
Calculation of the Penalty .................................................................................................................................... 6
Joint Ventures ........................................................................................................................................................... 8
CLP ..................................................................................................................................................................................... 8
WAIVER ........................................................................................................................................................................... 9
PART 2: APPLICATION PROCESS AND REQUIREMENTS............................................................................. 10
Application Process and Disclosure of Information and Documents .................................................. 10
Confidentiality............................................................................................................................................................ 13
PART 3: EVALUATION PROCESS AND REQUIREMENTS............................................................................... 14
Evaluation of the Applications ............................................................................................................................ 14
ANNEX “FTP1” – FORM TO BE COMPLETED BY APPLICANTS ...................................................................... 1
Annex “FTP2”: CLASSES OF CONSTRUCTION WORKS..................................................................................... 1
Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
INTRODUCTION
1. On 10 February 2009 the Competition Commission (“the Commission”) initiated a complaint
in terms of section 49B(1) of the Competition Act, 1998, as amended (Act 89 of 1998)(“the
Act”) into alleged prohibited practices relating to bid-rigging and collusion in the
construction of the stadiums for the 2010 FIFA Soccer World Cup.
2. On 1 September 2009, following the receipt of applications for immunity in terms of the
Commission’s Corporate Leniency Policy (“CLP”), the Commission initiated a complaint in
terms of section 49B(1) of the Act into prohibited practices relating to bid-rigging and
collusion in the construction industry.
3. Based upon various investigations to date in the construction sector, it is evident that there
were widespread contraventions of the Act, particularly section 4(1)(b).
These have
included referrals and settlements in cast concrete products, plastic pipes and reinforcing
steel. There are also ongoing investigations in markets such as cement, bricks and pilings.
Many of the firms that have been respondents in these cases are also alleged to be
implicated in bid rigging of construction projects.
4. In terms of section 2 of the Act, two of the key objects of the Act are to promote the
efficiency, adaptability and development of the economy, and to provide consumers with
competitive prices and product choices.
5. In addition, the Commission is required in terms of section 21(1) of the Act, amongst other
things, to implement measures to increase market transparency, to investigate and evaluate
alleged contraventions of Chapter 2 of the Act, and to negotiate and conclude consent
agreements in terms of section 49D for confirmation as an order of the Competition
Tribunal in terms of section 58(1)(b) of the Act.
6. Therefore, in the interests of transparency, the efficiency, adaptability and development of
the construction industry, the provision of competitive prices, and a cost-effective,
comprehensive and speedy resolution of the investigations referred to above, the
Commission has decided to fast track these investigations and their resolution by inviting
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Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
firms that were involved in collusive conduct in the form of bid-rigging of projects in the
construction industry to apply to engage in settlement.
7. In addition, by pursuing this fast track process, the Commission aims to, amongst other
things:
7.1. incentivise firms to admit their anti-competitive conduct by proposing settlement on
financially advantageous terms;
7.2. ensure that all firms truthfully and comprehensively disclose their anti-competitive
conduct;
7.3. strengthen the Commission’s evidence against those firms that are not taking
advantage of this settlement process;
7.4. minimise the legal costs associated with, and speedily resolve, the complaints and cases
arising from these complaints; and
7.5. set the construction industry on a new competitive trajectory, which will promote the
efficiency, adaptability and development of the construction sector and the economy as
a whole.
8. The terms and conditions of the settlement process are set out below.
DEFINITIONS
9. Any expression in this invitation to engage into settlement that is defined in the Competition
Act, 1998 (Act 89 of 1998) has the same meaning as in that Act and, unless the context
indicates otherwise —
9.1.
“Act” means the Competition Act, 1998 (Act 89 of 1998), as amended;
9.2.
“applicant” refers to a firm that: was or is involved in prescribed and nonprescribed prohibited restrictive horizontal practices in relation to one or more
projects in the construction sector; accepts this invitation to engage in
settlement; and applies to the Commission to enter into a consent agreement
envisaged by section 49D, read with section 58(1)(b) of the Act;
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9.3.
“application” refers to the application filed by the applicant in the form of
annexure “FTP1”;
9.4.
“CIDB” means the Construction Industry Development Board;
9.5.
“CIDB Act” means the Construction Industry Development Board Act, 2000 (Act
38 of 2000);
9.6.
“CIDB Regulations” refers to the Construction Industry Development
Regulations, 2004 (as amended) (Government Notice No. 692 of 9 June 2004,
published in Government Gazette No. 26427 of 9 June 2004);
9.7.
“CLP” means the Commission’s Corporate Leniency Policy (Government Notice
No. 628 of 23 May 2008, published in Government Gazette No. 31064 of 23 May
2008);
9.8.
“Commission” means the Competition Commission established in terms of
section 19 of the Act;
9.9.
“prescribed prohibited practices” refers to prohibited restrictive horizontal
practices relating to the construction industry that are contemplated in section
4(1)(b) of the Act and that ceased after 30 November 1998, but more than three
years before the complaints referred to in paragraphs 1 and 2 were initiated;
9.10.
“non-prescribed prohibited practices” refers to prohibited restrictive horizontal
practices relating to the construction industry that are contemplated in section
4(1)(b) of the Act and that are on-going or had not ceased three years before the
complaints referred to in paragraphs 1 and 2 were initiated, as contemplated in
section 67 of the Act;
9.11.
“settlement process” refers to this invitation to firms in the construction industry
to engage in settlement of contraventions of the Act and the procedures detailed
herein; and
9.12.
“sub-sectors of the construction industry” are the classes of construction work
defined in Schedule 3 of the CIDB Regulations, substituted by Government Notice
No. 8986 of 14 November 2008, published in Government Gazette No. 31603 of
14 November 2008.
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PART 1: INVITATION TO ENTER INTO SETTLEMENT
PROCESS
INVITATION
10. The Commission hereby invites firms in the construction industry who have engaged in
prohibited practices in contravention of the Act to apply to enter into a settlement process.
The Commission wishes to engage with applicants with a view to settling contraventions of
the Act by entering into consent agreements, as envisaged by section 49D, read with section
58(1)(b) of the Act, with applicants who:
10.1.
submit an application in terms of Part 2 hereof;
10.2.
agree to pay the administrative penalty or penalties determined by the
Commission as envisaged in paragraphs 19 to 28; and
10.3.
comply with the requirements of this settlement process.
PROPOSED OFFER
11. Following the evaluation of the application, and any further information, documents or
submissions provided to the Commission, and subject to the Commission being satisfied that
the applicant meets all the requirements herein, the Commission will prepare, for the
applicant’s consideration, a draft consent agreement.
12. The applicant may accept or reject the proposed consent agreement, but may not accept it in
part only.
13. If the applicant accepts the proposed consent agreement, the Commission will apply to
make the agreement an order of the Competition Tribunal in terms of section 58(1)(b) of
the Act.
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14. If the applicant rejects the proposed consent agreement, the Commission may pursue the
matter with the Competition Tribunal by means of a referral in relation to each alleged
contravention of the Act, in which case, it may request the Competition Tribunal in terms of
section 59(2) of the Act to impose an administrative penalty for each of the contraventions
in an amount not exceeding 10% of the firm’s annual turnover in the Republic and its
exports from the Republic during the firm’s financial year preceding the Competition
Tribunal’s decision and order.
THE NATURE OF THIS SETTLEMENT PROCESS
15. Applicants who respond to this invitation may only do so on a “with prejudice” basis.
16. Any information contained in the applicant’s application and all documents submitted
therewith is restricted in terms of Rule 14 of the Rules for the Conduct of Proceedings in the
Competition Commission during the investigation and evaluation processes contemplated
herein and until such time that a decision to refer or non-refer the disclosed conduct is
taken by the Commission. Provided that the Commission may utilise restricted information
for purposes of making offers to applicants under this settlement process.
17. The Commission may at its discretion use or disclose, subject to its rights and obligations in
terms of the Act and in the light of its litigation privilege, any information, documents or
submissions that a person or firm provides to it by virtue of this settlement process for any
legal proceeding contemplated in the Act.
REQUIREMENTS OF THIS SETTLEMENT PROCESS
18. In addition to complying with the procedures outlined elsewhere in this document, the
applicant must meet the following requirements for the Commission to enter into a consent
agreement with it:
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Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
18.1.
provide the Commission with truthful disclosure, including information and
documents in its possession or under its control, relating to the prescribed and
non-prescribed prohibited practices;
18.2.
provide full and expeditious co-operation to the Commission concerning the
prescribed and non-prescribed prohibited practices, and, undertake to provide
the Commission with full and expeditious co-operation from the time that the
consent agreement is concluded until the subsequent proceedings in the
Competition Tribunal or the Competition Appeal Court are completed;
18.3.
provide a written undertaking that it has immediately ceased to engage in, and
will not in the future engage in, any form of prohibited practice;
18.4.
should not destroy, falsify or conceal information, evidence and documents
relating to the prescribed and non-prescribed prohibited practices; and
18.5.
should not make a wilful or negligent misrepresentation concerning the material
facts of any prescribed and non-prescribed prohibited practice or otherwise act
dishonestly.
ADMINISTRATIVE PENALTIES
19. The applicant must pay a percentage of the applicant’s turnover as determined by the
Commission in accordance with the following:
CALCULATION OF THE PENALTY
20. The Commission recognises that the construction industry is delineated into distinct
subsectors as specified in Schedule 3 of the CIDB Regulations, substituted by Government
Notice No. 8986 of 14 November 2008, published in Government Gazette no. 31603 of 14
November 2008, annexure “FTP2” hereto.
21. The Commission will have regard to the non-prescribed prohibited practices engaged in by
the applicant in each subsector as delineated in the CIDB Regulations (“the relevant
subsector”).
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22. The Commission will categorize the applicant as either A, B, C or D in the relevant sub-sector
(see column 1 of Table 1 below) in accordance with the number of non-prescribed
prohibited practices that the applicant has engaged in in that sub-sector (see column 2 of
Table 1).
23. The Commission will determine the penalty payable by the applicant in respect of the nonprescribed prohibited practices engaged in by the applicant in the relevant subsector. The
penalty will be within the range specified for each category of applicant (see column 3 of
Table 1).
Table 1
Column 1
Column 2
Column 3
Category
Number of non-prescribed Penalty:
Percentage
of
contraventions by applicant turnover of applicant in
in subsector
subsector
A
1 to 4
1% to 4%
B
5 to 12
4% to 7%
C
13 to 22
7% to 10%
D
23 and over
10% to 12%
24. The turnover referred to in column 3 is the annual turnover of the applicant in the relevant
sub-sector in the Republic and its exports from the Republic for the financial year preceding
the date of this invitation. The Commission may, at its sole discretion, adjust the turnover
applicable so as to account for the relative sizes, corporate structures and activities of each
of the firms in the relevant subsector and across subsectors.
25. If the applicant was no longer trading in the relevant sub-sector in the financial year
preceding the date of this invitation, the Commission will determine the turnover by taking
into account the applicant’s most recent available annual turnover in the Republic and its
exports from the Republic in the relevant sub-sector.
26. The Commission will determine the final penalty for each sub-sector within the relevant
range set out in column 3 of Table 1 by considering the factors listed in section 59(3) of the
Act as well as:
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Invitation to firms in the construction industry to engage in settlement of
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26.1.
the number of contraventions in the relevant subsector;
26.2.
whether or not the applicant won or lost the bid;
26.3.
the size of the contract(s); and
26.4.
whether the applicant has settled any claim for damages that may arise as a
result of the non-prescribed prohibited practice.
27. The provisions of paragraphs 20 to 26 will apply to each subsector in which the applicant
has engaged in non-prescribed prohibited practices, with the penalty being the sum of the
amounts so calculated across the relevant subsectors.
28. Despite the above, a firm that is granted conditional or total immunity in terms of the
Commission’s CLP will not be required to pay a penalty in respect of the conduct that is the
subject of the grant of such immunity.
JOINT VENTURES
29. If a joint venture, under the control of two or more controlling firms, participated in a
prohibited practice, the Commission will consider the respective roles of the controlling
firms and the joint venture in the conduct associated with the prohibited practice to
determine whether the fine or penalty should be imposed upon the joint venture or the
controlling firms or both.
CLP
30. A firm that requests in writing that its application under this settlement offer be considered
as an application for a marker or as an application for immunity under the CLP must comply
with all the terms and conditions of the CLP. An application under this settlement offer that
does not expressly and in writing request the Commission to consider its application as a
marker or as an application for immunity under the CLP, will not be considered under the
CLP.
31. Notwithstanding paragraph 30 above, a firm may apply for a marker or for immunity under
the CLP before making an application in terms of this settlement process. Applications for
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Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
immunity under the CLP will be determined within the same time frame as the evaluation of
applications in terms of this settlement process.
WAIVER
32. No relaxation, extension or indulgence which the Commission may grant to an applicant will
constitute a waiver of any right of the Commission in terms of this settlement process or any
consent agreement concluded pursuant thereto or any applicable law.
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PART 2: APPLICATION PROCESS AND REQUIREMENTS
APPLICATION PROCESS AND DISCLOSURE OF INFORMATION AND DOCUMENTS
33. In entering this process, the applicant must complete an application in the form of annexure
“FTP1”.1
34. The application must contain the following information, documents and submissions:
34.1.
the legal identity of the applicant;
34.2.
if the applicant is a joint venture, details of the parent firms involved in the joint
venture;
34.3.
a description of the applicant’s corporate structure;
34.4.
the applicant’s undertaking to provide full and expeditious co-operation to the
Commission during the investigations and until the subsequent proceedings in
the Competition Tribunal or Competition Appeal Court are completed;
34.5.
the applicant’s annual turnover in the Republic and its exports from the Republic
for the financial year preceding the date of this invitation, with copies of
supporting documents;
34.6.
the list of the tenders or projects in which the applicant was and/or is involved
in prescribed and non-prescribed prohibited practices;
34.7.
for each tender or project listed in terms of paragraph 34.6:
34.7.1.
the project or tender name and any reference number associated with the
project or tender;
Applicants are encouraged to follow the format of FTP1, but may adapt it in order to fully comply with
the requirements of paragraph 34.
1
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34.7.2.
if the applicant was awarded the tender and required to register the project
with the CIDB in terms of regulation 18 of the CIDB Regulations, provide
copies of the applicant’s registration documents;
34.7.3.
the dominant class of the construction work associated with the tender or
project – the classes of construction work are defined in Schedule 3 of the
CIDB Regulations (a copy of which is contained in annex FTP2), with copies
of any supporting documents;
34.7.4.
the applicant’s annual turnover in the Republic and its exports from the
Republic for the financial year preceding the date of this invitation in the
sub-sector associated with that dominant class of construction work, with
copies of supporting documents, and the annual turnover of each entity
described in the corporate structure referred to in paragraph 34.3;
34.7.5.
information on the tender or project, including details about the invitation
to tender, the scope of the tender, the tender dates and the names of other
tendering parties, the applicant’s tender proposal, the amount it tendered,
with copies of all supporting documents, including the applicant’s tender
proposal and the final completion certificate;
34.7.6.
a description of the conduct that constituted a prescribed or non-prescribed
prohibited practice, including the names of other firms involved in the
conduct, the date that the prohibited practice commenced and ceased and, if
it has not ceased, whether and in what manner it is continuing;
34.7.7.
the full names of the individuals involved in the prescribed or nonprescribed prohibited practice, and a description of their involvement in the
conduct, their contact details and job description;
34.7.8.
the date that the project was completed;
34.7.9.
the amount received in respect of the project;
34.7.10.
the date of receipt of the final payment for the project;
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Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
34.7.11.
the nature or amount of any benefit that the applicant received as a result of
the applicant’s participation in the prescribed or non-prescribed prohibited
practice and the date when the applicant received that benefit;
34.7.12.
whether the applicant wishes the Commission to consider this application as
an application for a marker or as an application for immunity under the CLP;
34.7.13.
if a joint venture was involved in the tender or project and that involved a
non-prescribed prohibited practice, submissions whether the penalty
should be imposed upon the joint venture or the controlling firms or both;
and
34.7.14.
any documents, information or submissions that the applicant wishes to
make or provide on the matters set out in paragraph 26 above.
34.8.
In compiling the list contemplated in paragraph 34.6, the applicant must:
34.8.1.
disclose all relevant facts and admit that it has contravened the Act for all
non–prescribed prohibited practices; and
34.8.2.
disclose all relevant facts for all prescribed prohibited practices.
35. An applicant that has been granted conditional immunity in accordance with the CLP in
relation to one or more construction projects or tenders need only apply in respect of the
tenders or projects not forming part of the conditional immunity grant. The application for
leniency of an applicant that has been granted conditional immunity will be deemed to be an
application in terms of this settlement process.
36. A firm that has applied for a marker and/or whose application for immunity in accordance
with the CLP has not been granted as at the date of this invitation shall be required to file an
application in terms of this settlement process if it wishes to be considered as an applicant
under this settlement process.
37. The application must be delivered to the Commission on or before 12h00 on Friday 15 April
2011 by one of the following means:
37.1.
Facsimile: +27 12 394 0166
37.2.
Email: [email protected]
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Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
37.3.
By hand: the DTI Campus, Block C, Mulayo Building, 77 Meintjies Street,
Sunnyside, Pretoria, South Africa.
38. The deadline for the submission of applications may be extended, at the sole discretion of
the Commission. Any such extension, should the Commission deem it necessary, will be
applicable to all applicants.
CONFIDENTIALITY
39.
The applicant may identify information contained in the application which is
confidential within the meaning of the Act and claim confidentiality in accordance with
the procedure set out in section 44 of the Act.
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PART 3: EVALUATION PROCESS AND REQUIREMENTS
EVALUATION OF THE APPLICATIONS
40. Upon receipt of the application, the Commission will review the application to ensure that it
complies with the requirements of this settlement process.
41. An application that is received after the due date will not be considered.
42. The Commission may, at its sole discretion —
42.1.
reject any application that does not substantially comply with the provisions of
Part 2 hereof; or
42.2.
direct the applicant to rectify an application that is not substantially deficient
within a specified period of time, failing which the Commission may reject the
application.
43. The Commission may require the applicant to provide further information, documents or
submissions which it believes are relevant and necessary for the purposes of the evaluation.
44. The Commission will obtain information and documents from other sources and will
consider this information when evaluating an application.
45. If the Commission becomes aware that the applicant has omitted projects or material
information or documents from its application where the applicant was involved in
prescribed or non-prescribed prohibited practices, then the Commission may, in its sole
discretion, and depending on the applicant’s reason for omitting the project, information or
documents and the nature of the applicant’s co-operation with the Commission —
45.1.
direct the applicant to furnish the information or documents within a specified
period of time, failing which the Commission may reject the application;
45.2.
agree to include the omitted projects in the consent agreement, following the
applicant’s full and proper disclosure of the information and documents related
to the project; or
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Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
45.3.
reject the application in its entirety.
46. The Commission will, in terms of paragraph 11 above, make an offer to a firm that complies
with all the requirements hereof.
47. Enquiries regarding this invitation and the settlement process detailed herein should be
directed
to
Mr
Lemogang
Moletsane
on
012
394
3408
or
by
email
at
[email protected].
Dated at Pretoria on the 1st day of February 2011.
___________________________________
Mr. S Ramburuth
Competition Commissioner
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ANNEX “FTP1” – FORM TO BE COMPLETED BY APPLICANTS
Item
Issue
Response
Part A
1.
Name of the applicant
2.
Is the applicant a joint venture?
2.1.
If so, what is the name of the joint
venture?
2.2.
If so, what are the name or names of the
controlling firms?
Description and diagrammatic depiction
of applicant’s corporate structure
3.
What was the applicant’s annual turnover
in the Republic and its exports from the
Republic, and that of each of the firms
depicted in its corporate structure, for
the financial year preceding the date of
this invitation?
4.
Copies of supporting documents are
required.
5.
The list of the tenders or projects in
which the applicant was involved in
prescribed prohibited practices.
6.
The list of the tenders or projects where
the applicant was and/or is involved in
non-prescribed prohibited practices.
Copies of supporting documents are
annexed as “___”.
Part B (This part must be completed for each tender or project that is listed in 5 and 6)
1.
Project or tender name and any reference
number associated with the project or
tender.
2.
Was the applicant awarded the tender or
project?
2.1.
Copies of supporting documents are
annexed as “___”.
Was the applicant required to register the
project with the CIDB in terms of
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Item
Issue
Response
Regulation 18 of the Regulations in terms
of the CIDB Act (GG No. 692, 9 June
2004), as amended?
If so, copies of the applicant’s registration
documents are required.
Copies of supporting documents are
annexed as “___”.
What was the dominant class of the
construction work associated with the
tender or project?
3.
(The classes of construction work are
defined in Schedule 3 of the Regulations
in terms of the CIDB Act (GG No. 692, 9
June 2004), as amended2 (a copy of which
is contained in annex FTP2)
Copies of supporting documents are
required.
4.
Copies of supporting documents are
annexed as “___”.
What was the applicant’s annual turnover
in the Republic and its exports from the
Republic for the financial year preceding
the date of this invitation in the subsector
associated with that dominant class of
construction work?
Copies of supporting documents are
required.
Copies of supporting documents are
annexed as “___”.
5.
Provide information on the tender or
project, including details about the
invitation to tender, the scope of the
tender, the tender dates, the names of
other tendering parties, the applicant’s
tender proposal and the amount it
tendered.
Copies of all supporting documents,
including the applicant’s tender proposal
and the final completion certificate are
required.
6.
Copies of supporting documents are
annexed as “___”.
Describe the conduct that constituted a
prescribed or non-prescribed prohibited
practice, including the names of other
2
Schedule 3 was substituted by Government Notice No 8986 of 14 November 2008, published in Government
Gazette No 31603 of 14 November 2008.
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contraventions of the Competition Act
Item
Issue
Response
firms involved in the conduct, the date
that the prohibited practice commenced
and ceased, and if it has not ceased,
whether and in what manner it is
continuing.
Motivate why it constitutes a prescribed
prohibited practice or a non-prescribed
prohibited practice.
What are the full names of the individuals
involved in the prescribed or nonprescribed prohibited practice?
7.
Describe their involvement in the
conduct.
7.1.
What are their contact details?
7.2.
What was their job description?
8.
What was the date that the project was
completed?
9.
What was the amount received in respect
of the project?
10.
What was the date of receipt of the final
payment for the project?
11.
What was the nature or amount of any
benefit that the applicant received as a
result of the applicant’s participation in
the prescribed or non-prescribed
prohibited practice?
12.
What was the date when the applicant
received the benefit?
13.
If a joint venture was involved in the
tender or project and that tender or
project involved a non-prescribed
prohibited practice, should the penalty be
imposed upon the joint venture or the
controlling firms or both? Please
motivate your answer.
14.
What are the applicant’s submissions
regarding the final penalty to be levied on
the applicant within the range specified
for the category in each subsector in
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Item
Issue
Response
which the applicant has engaged in nonprescribed prohibited practices?
15.
Has the applicant settled any claim for
damages that may arise as a result of the
non-prescribed prohibited practice? If
yes, provide details and supporting
documents.
16.
Does the applicant wish the Commission
to consider this application as an
application for a marker or as an
application for immunity under the CLP?
Copies of supporting documents are
annexed as “___”.
NOTE: Copies of supporting documents should be provided where possible, even if not
specifically called for.
Declaration
1. I confirm that the above discloses all the relevant facts, information and documents that
are within the applicant’s possession or control relating to the prescribed and nonprescribed prohibited practices that the applicant was involved in.
2. The applicant has stopped engaging in and will not in future engage in any form of
prohibited practice.
3. The applicant undertakes to provide full and expeditious co-operation to the
Commission during the investigation and evaluation of its application up to and until the
subsequent proceedings in the Competition Tribunal or Competition Appeal Court are
completed
Dated at _______________________ on this ____________ day of _______________________ 2011.
_________________________________
For and on behalf of the applicant
(Duly Authorised)
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Invitation to firms in the construction industry to engage in settlement of
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ANNEX “FTP2”: CLASSES OF CONSTRUCTION WORKS
CONSTRUCTION INDUSTRY DEVELOPMENT REGULATIONS, 2004 (AS AMENDED)
SCHEDULE 3
Description
Civil
engineering
works
Electrical
engineering
works
Designation
CE
EP
(Infrastructure
)
Definition
Basic works types
Construction works that
are primarily concerned
with materials such as
steel, concrete, earth and
rock and their
application in the
development, extension,
installation,
maintenance, removal,
renovation, alteration, or
dismantling of building
and engineering
infrastructure
Water, sewerage, roads,
railways, harbours and
transport, urban
development and
municipal services.
Construction works that
are primarily concerned
with development,
extension, installation,
removal, renovation,
alteration or dismantling
of engineering
infrastructure:
Electrical power
generation, transmission,
control and distribution
equipment and systems.
Examples
Structures such as a cooling tower, bridge, culvert, dam,
grand stand, road, railway, reservoir, runway, swimming
pool, silo or tunnel.
The results of operations such as dredging, earthworks and
geotechnical processes.
Township services, water treatment and supply, sewerage
works, sanitation, soil conservation works, irrigation
works, storm-water and drainage works, coastal works,
ports, harbours, airports and pipelines.
Power generation
Street and area lighting
Substations and protection systems
Township reticulations
Transmission Lines
Supervisory control and data acquisition systems
1
Issued 1 February 2011
Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
Description
Designation
Definition
Basic works types
Examples
a) relating to the
generation, transmission
and distribution of
electricity; or
b) which cannot be
classified as EB.
Electrical
engineering
works
(buildings)
General
building works
EB
GB
Construction works that
are primarily concerned
with the installation,
extension, modification
or repair of electrical
installations in or on any
premises used for the
transmission of
electricity from a point of
control to a point of
consumption, including
any article forming part
of such an installation
All electrical equipment
forming an integral and
permanent part of
buildings and/or
structures, including any
wiring, cable jointing and
laying and electrical
overhead line
construction.
Electrical installations in buildings
Construction works that:
Buildings and ancillary
works other than those
categorised as being:
Buildings for domestic, industrial, institutional or
commercial occupancies
a) are primarily
concerned with the
development, extension,
installation, renewal,
renovation, alteration, or
dismantling of a
permanent shelter for its
c) civil engineering
works;
d) electrical engineering
works;
Electrical reticulations within a plot of land (erf) or
building site
Standby plant and uninterrupted power supply
Verification and certification of electrical installations on
premises
Car ports
Fences other than classified as SS
Stores
Walls
2
Issued 1 February 2011
Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
Description
Designation
Definition
occupants or contents; or
b) cannot be categorised
in terms of the
definitions provided for
civil engineering works,
electrical engineering
works, mechanical
engineering works, or
specialist works.
Mechanical
engineering
works
ME
Construction works that
are primarily concerned
with the development,
extension, installation,
removal, alteration,
renewal of engineering
infrastructure for gas
transmission and
distribution, solid waste
disposal, heating,
ventilation and cooling,
chemical works,
metallurgical works,
manufacturing, food
processing and, materials
handling
Basic works types
Examples
e) mechanical
engineering works; or
f) specialist works.
Machine systems
including those relating
to the environment of
building interiors:
Air-conditioning and mechanical ventilation
a) gas transmission and
distribution systems
Centralised hot water generation
b) pipelines
Dust and sawdust extraction
c) solid waste disposal
Compressed air, gas and vacuum installations
d) materials handling,
lifting machinery,
heating, ventilation and
cooling, pumps,
Conveyor and materials handling installations
e) continuous process
systems
f) chemical works,
metallurgical works,
manufacturing, food
Boiler installations and steam distribution
Central heating
Cranes and hoists
Continuous process systems involving chemical works,
metallurgical works, oil and gas wells, acid plants,
metallurgical machinery, equipment and apparatus, and
works necessary for the beneficiation of metals, minerals,
rocks, petroleum and organic substances and other
chemical processes
Kitchen equipment
3
Issued 1 February 2011
Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
Description
Designation
Definition
Basic works types
processing such as that
in concentrator
machinery and
apparatus, oil and gas
wells, smelters, cyanide
plants, acid plants,
metallurgical machinery,
equipment and
apparatus, and works
necessary for the
beneficiation of metals,
minerals, rocks,
petroleum and organic
substances or other
chemical processes.
Specialist
works
SB
SC
A subset of construction works identified and defined
by the CIDB that involves specialist capabilities for its
execution
Examples
Laundry equipment
Lift installations and escalators
Refrigeration and cold rooms
Waste handling systems (including compactors)
The extension, installation, repair, maintenance or renewal,
or removal, of asphalt
The development, extension, installation, removal, and
dismantling, as relevant, associated with building
excavations, shaft sinking and lateral earth support
SD
The development, extension, installation, repair, renewal,
removal, or alteration of corrosion protection systems
(cathodic, anodic and electrolytic)
SE
Demolition of buildings and engineering infrastructure and
blasting
4
Issued 1 February 2011
Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
Description
Designation
Definition
Basic works types
Examples
SF
The development, extension, installation, renewal, removal,
renovation, alteration or dismantling of fire prevention and
protection infrastructure (drencher and sprinkler systems
and fire installation)
SG
The development, extension, installation, renewal, removal,
renovation, alteration or dismantling of glazing, curtain
walls and shop fronts
SH
The development, extension, installation, maintenance,
renewal. removal, alteration or dismantling, as relevant, of
landscaping, irrigation and horticultural works
SI
The development, extension, installation, repair,
maintenance, renewal. removal, renovation, alteration or,
dismantling of lifts, escalators, travellators and hoisting
machinery
SJ
The development, installation, removal, or dismantling, as
relevant, of piles and other specialized foundations for
buildings and structures
SK
The installation, renewal, removal, alteration or
dismantling, as relevant, road markings and signage
SL
The development, extension, installation, renewal. removal,
renovation, alteration or dismantling of structural
steelwork and scaffolding
5
Issued 1 February 2011
Invitation to firms in the construction industry to engage in settlement of
contraventions of the Competition Act
Description
Designation
Definition
Basic works types
Examples
SM
Timber buildings and structures
SN
The extension, installation, repair, maintenance, renewal,
removal, renovation or alteration, as relevant, of the
waterproofing of basements, roofs and walls using
specialist systems.
SO
The development, extension, installation, renewal, removal,
alteration or dismantling or demolition of water
installations and soil and waste water drainage associated
with buildings (wet services, plumbing)
SQ
The development, extension, installation, repair, removal,
alteration, dismantling or demolition of precast concrete or
steel fencing
6
Issued 1 February 2011