Journal of Civil Engineering Vol 68 No 2

Volume 68 Number 2 June 2026  Journal of the South African Institution of Civil Engineering 4 individuals, women, and youth among Grade 1 contractors highlights the impor- tance of this category as a route in the transformation of the construction indus- try (Construction Industry Development Board 2016). This research was carried out to address the aforementioned need by developing a decision support framework that integrates multiple decision criteria and guides decision makers on register- ing, grading contractors, and assessing infrastructure project performance. To achieve this goal, a literature review was conducted, followed by the development of a questionnaire to assess the existing state of practice and establish whether there is a need for an improved registration, grading, and performance evaluation of contractors by the role players involved in the con- struction sector. The Analytical Hierarchy Process (AHP) was utilised as a multi- criteria decision-making tool to develop a framework for grading and assessing the performance of contractors. If South Africa is to improve its construction outputs, the utilisation of a grading and performance assessment framework may be required. LITERATURE REVIEW According to Ngai et al (2002), the con- struction industry is an integral part of the nation’s infrastructure development and is an essential part of the economic backbone of many countries, often con- tributing 7% to 10% of Gross Domestic Product. The industry is often criticised for inefficiencies in outcomes such as time and cost overruns, low productivity, poor quality, and inadequate customer satis- faction (Chan et al 2003). It is therefore important to have a change in attitudes and procedures to enhance the chances of success in construction projects (Dubois & Gadde 2002). The South African construction sector is faced with several challenges, some of which are poor project performance and unethical conduct. The increase in the failure of infrastructure projects raises great concern about the way the construc- tion sector operates. Maseko (2017) notes that infrastructure construction projects are largely characterised by remarkable levels of unethical practices and poor per- formance, which has impaired the image of the industry. Moreover, the delivery of good-quality infrastructure projects in some emerging economies is continuously disrupted because of poor performance. South Africa’s Construction Industry Development Board Act (38 of 2000) estab- lished the cidb to implement an integrated strategy for the reconstruction, growth, and development of the construction industry. The cidb regulations, adopted in 2004, provide a framework for grading contractors in terms of their capabilities as well as the volume and nature of the pro- jects they can undertake. Initially, the grade of a contractor was based on two methods: one based on track record and the other on available capital (Mohlala 2015). The latter method meant that a contractor could achieve a high grade provided it had avail- able capital, regardless of its track record. This led to the amendment of the cidb regulations in 2013 to provide for a ranking framework based on both track record and available capital. It is posited herein that, in order to improve the state of the construction sec- tor, an enhanced contractor grading and performance assessment framework should be considered to decrease the failure rate of infrastructure projects in South Africa. For example, a study conducted by Construction Industry Development Board (2016) on contractor progression showed a strong correlation between a contractor having construction-related training or qualifications and that contractor’s survival and progression. Mohlala (2015) studied the relationship between the project performance of emerg- ing contractors in South African govern- ment infrastructure projects and their experience and technical qualifications and found that contractors with technical qualifications and experience generally perform better than those without techni- cal backgrounds. The study also found that, where there is no technical background, the level of education also affects the level of project performance. The grading of contractors using relevant criteria may improve the client’s confidence in the qual- ity of the contractor who will roll out the infrastructure project and may enhance the performance of the construction industry. According to Hanson (2006), contrac- tor project performance in South Africa is affected by poor workmanship because of contractor incompetence. Operational skills, which include project manage- ment and business skills such as planning and financial accounting, are crucial for the success of any business (Thwala & Mvubu 2008). However, Mofokeng (2012) found that small and medium construction companies lack business and managerial experience. Previous literature (Jaafar & Abdul- Aziz 2005; Lin 1998; Jo & Lee 1996; Yusoff 1995; Fredland & Morris 1976) has shown that managerial expertise and experience are vital for the success of any enterprise and have a significantly positive relationship with the performance of the enterprise. According to Croswell and McCutcheon (2001), some of the difficul- ties facing emerging contractors include a lack of entrepreneurial, managerial, techni- cal, and administrative expertise. These skills and expertise are vital for emerging contractors’ performance through the life cycle of a project and from one project to the next. The acquisition of competence is, thus, an ongoing process, especially in project-based enterprises (i.e. construction companies) since each project is inherently unique. Emphasis should therefore be placed on continuous learning from one project to the next to improve competence in government infrastructure projects. The increase in the failure rate of South African infrastructure projects (Mohlala 2015) indicates a need to identify the root causes to improve the sector’s performance. Presently, the grading of contractors does not consider multiple criteria. A study conducted by Cheung et al (2004) found that there are seven main key performance indicators: time, cost, quality, client satisfaction, client changes, business per- formance, and health and safety. According to Xiao and Proverbs (2003), the improve- ment of project performance, which leads to improved contractor performance, can result in increased client satisfaction, better reputation, and improved competi- tiveness. Some authors attribute project performance to the contractor’s technical competence (Faridi & El-Sayegh 2006; Iyer & Jha 2005; Hanson et al 2003). The study has developed a framework for registering and grading contractors in the construction sector. The problem at hand is to have a robust framework to register and grade contractors that may assist in improving the performance of the South African construction sector. It is envisaged herein that a robust contractor registration and grading framework could assist in improving the performance of the construction sector and reflect the true capabilities of contractors. This study has