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Construction Regulation 3(1) Temporary Exemption: What the GCC Factories Candidate needs to know

Updated: Jun 27, 2022


This article aims to capture the developments around the Construction Regulation 3(1) Temporary Exemption, which could:

  • Possibly assist the GCC Factories Candidate with preparations for the GCC Factories OHS Act Exam, and

  • Provide guidelines for the Certificated Engineer and Construction Manager on dealing with the provisions of Construction Regulation 3(1) and its Temporary Exemptions.

Agenda

Introduction


In section 40(3)(b) of the Occupational Health and Safety Act, the Chief Inspector at the Department of Employment and Labour has the authority to grant temporary exemptions.


The year 2014 saw the promulgation of the amended Construction Regulations. And in July 2015, a Temporary Exemption for Construction Regulation 3(1) under Government Notice 641 of the 24th of July 2015 was granted.


On the 17th of August 2018, Government Notice 850 saw the replacement of the Government notice 641.


The Construction Regulation 3(1) Temporary Exemption affects the GCC Factories Candidate because they need to answer the GCC Factories Exam questions to account for the Temporary Exemption. Therefore, it is essential to know and understand the notable changes.


Before delving into the Temporary Exemption, it is necessary that we first have a look at the initial Construction Regulation 3(1) requirement.


The Construction Regulation 3(1), 2014


According to Construction Regulation 3(1), a Client who intends to have construction work carried out must apply for a construction work permit.


The Client must apply for the construction work permit from the provincial director in writing at least 30 days before the commencement if the construction work will:

(a) exceed 180 days,

(b) will involve more than 1800 person-days of construction work, or

(c) the works contract is of a value equal to or exceeding thirteen million rands or Construction Industry Development Board (CIDB) grading level 6.




The key elements from Construction Regulation 3(1) are:

  • A Client who intends to do construction work must apply for a construction work permit from the provincial director in writing at least 30 days before the start of the construction work.

  • The condition under which the construction work permit will be a requirement is when the construction work either:

    • exceeds 180 days,

    • involves more than 1800 person-days of construction work, or

    • has a works contract value equal to or exceeding thirteen million rands or a CIDB grading of level 6 and above.

The essential elements for the GCC Factories Candidate are as follows:

  • Understand the definition of client and construction work.

  • Remember the conditions where the construction work permit is required. The first condition is when to apply for the construction work permit. The second condition is the duration, person-days, or contract value.

The essential elements for the Certificated Engineer or Construction Manager are as follows:

  • Ensure that you estimate the duration, person-days, and contract value well ahead of the anticipated construction work.

  • Suppose the construction work must comply with the requirements for a construction work permit. In that case, you must ensure that you apply for the construction works permit to the relevant provincial director.

  • You can get the contact details of the provincial offices from the Department of Employment and Labour website. Here is the direct link: https://www.labour.gov.za/Contacts/Provincial-offices/Pages/default.aspx

Here is a template you can use for your construction work permit application:

CR Annexure 1 - Application for a permit to do construction work
.pdf
Download PDF • 779KB

The July 2015 Construction Regulation 3(1) Temporary Exemption


The July 2015 Temporary Exemption (Government Notice 641 of the 24th of July 2015) reads as follows:

  • A Client who intends to carry out construction work must apply for a construction work permit from the provincial director in writing at least 30 days before commencement of the construction work. The Client must submit the application if the construction work:

    • starts on or after the 7th of August 2015, and the works contract exceeds one hundred and thirty million rands (R130m), or

    • the Construction Industry Development Board (CIDB) grading is level 9.

  • A Client who intends to carry out construction work must apply for a construction work permit from the provincial director in writing at least 30 days before commencement of the construction work. The Client must submit the application if the construction work:

    • starts on or after the 7th of February 2017, and the works contract exceeds forty million rands (R40m), or

    • the Construction Industry Development Board (CIDB) grading is level 8.

  • A Client who intends to carry out construction work must apply for a construction work permit from the provincial director in writing at least 30 days before commencement of the construction work. The Client must submit the application if the construction work:

    • starts on or after the 7th of August 2018, exceeds 365 days, and will involve more than 3600 person-days of construction work, or

    • the work is of a value exceeding thirteen million rands (R30m), or

    • the Construction Industry Development Board (CIDB) grading is level 7.

Here is the actual document:

Government notice 641 of 24 July 2015
.pdf
Download PDF • 674KB

Let's look at the August 2018 Temporary Exemption and discuss it further.


The August 2018 Construction Regulation 3(1) Temporary Exemption


A Client who intends to carry out construction work must apply for a construction work permit from the provincial director in writing at least 30 days before commencement of the construction work. The Client must apply if the construction work starts on or after the 7th of August 2018 and will:

1. exceed 365 days and will involve more than 3600 person-days of construction work, or

2. the tender value limit is grade 7, 8, or 9 of the Construction Industry Development Board (CIDB) grading.


Here is the actual document:

Construction Regulation 3(1) Temporary exemption starting 7 August 2018
.pdf
Download PDF • 345KB

The noticeable changes granted by the Temporary Exemption are as follows:

  • The number of construction days changed from 180 days to 365 days.

  • The number of construction work person-days changed from 1800 to 3600.

  • The condition for Construction Regulation 3(1)(a) and 3(1)(b) were combined. The situation changed from an either-or to an 'and' statement. The implication is that the construction work evaluation needs to exceed 365 days AND involve more than 3600 person-days. Suppose either one of these conditions is not applicable. In that case, the construction work does not meet the requirements of the Temporary Exemption clause 1.

  • The construction work value evaluation changed from the work contract to the tender value. A tender value is typically a budget estimate from the client side. The contract value is the amount of the final work the Client agrees to pay the Contractor. In my opinion, it makes sense to use the tender value because it allows the Client to submit the construction works permit in parallel with running its tendering processes.

  • The minimum CIDB grading level changed from 6 to 7.

The conditions to apply for a construction work permit have changed, allowing relatively smaller projects to proceed without applying for a construction work permit within the stipulated time frame.


During the GCC Factories Exams:

  • The GCC Factories Candidate needs to ensure that they use the values from the Temporary Exemption should a question relating to Construction Regulation 3(1) is asked.

  • In your answer, it will be prudent to indicate that the values you are quoting are from the Temporary Exemption. It will demonstrate to the examiner that you are fit to be a competent Certificated Engineer and keep abreast of the developments relating to Occupational Health and Safety.


Conclusion


This article captured the developments around the Construction Regulation 3(1) Temporary Exemption.

  • The first Temporary Exemption was in July 2015. It provided conditions on when different levels of construction work needed to apply for a construction work permit.

  • The August 2018 Temporary Exemption notice replaced the July 2015 Temporary Exemption.


The noticeable changes granted by the August 2018 Temporary Exemption are as follows:

  • The number of construction days changed from 180 days to 365 days.

  • The number of construction work person-days changed from 1800 to 3600.

  • The condition for Construction Regulation 3(1)(a) and 3(1)(b) were combined.

  • The minimum CIDB grading level changed from 6 to 7.


Tips for the GCC Factories Candidate:

  • Understand the definition of client and construction work.

  • Remember the conditions where the construction work permit is required. The first condition is when to apply. The second condition is the duration, person-days, or contract value.

  • The GCC Factories Candidate needs to ensure that they use the values from the Temporary Exemption should a question relating to Construction Regulation 3(1) is asked.

  • In your answer, it will be prudent to indicate that the values you are quoting are from the Temporary Exemption.



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