Abstract
Collusion is an unethical and disreputable agreement among parties of similar
interests with the intention of achieving a goal through immoral and dishonest means.
Proper ethical procurement practice in the construction industry, will enable the
Construction Industry Development Board (CIDB) to achieve their mandate which is
to promote uniformity in the construction procurement; efficient and effective
infrastructure delivery; and development of the emerging contractors, including
transformation. Furthermore, the Competition Commission of South Africa (CCSA)
to also achieve their mandate which is fair competition in all industries. With
collusion in existence it will be difficult for the CIDB and CCSA to achieve their
mandate. This study examined the influences of this practice among competitors and
stakeholders in the construction industry. Various causal factors of collusion among
parties were extracted from review of existing and relevant literature materials and
they were further evaluated to arrive at the specific ones that are relevant to the
construction industry and selected area of study. Using these factors, close-ended
questionnaires were prepared and administered to construction stakeholders with
adequate level of experience in the construction industry. The number of
questionnaire distributed is 50 and 45 were returned out of which 5 were not correctly
and completely filled. The distribution method used was self-administration. In
addition, purposive sampling was used. The findings from the 40 respondents
indicates that the major cause of collusion in the construction industry is greed of
various stakeholders that are shouldered with the responsibilities of managing and
monitoring construction contracts and activities especially the contractors. Political
influence was also identified as a major reason for collusion among other factors.
[Empowering emerging contractors, a well regulated environment, a fair competition,..