Why SAPAC Professionals and Contractors cannot perform Price Fixing!

Prepared by :SAPAC
Article Classification: Statement
Image courtesy: SAPAC

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South African News

The South African Professionals and Contractors Collective (SAPAC) plays a vital role in ensuring ethical conduct within the construction and trades industry is applied. How? By identifying real professionals and contractors only those that are capable and competent is effectively allowed onto the SAPAC platform. Fly by night operators is quick to be identified. 

SAPAC steps in to ensure that consumers have access to competent and reliable professionals and contractors. The Self Regulating entity mission is rooted in customer health, safety, and satisfaction. 20 Sept 2023 - Gerhard Marais

What is Price Fixing

So what is Price fixing? The illegal practice of colluding to set prices at artificially high levels, is a serious concern for any industry, and the contracting sphere is no exception. Here's why SAPAC professionals and contractors will not engage in price fixing:

• Ethics and Professionalism: SAPAC has a strong code of ethics that its stakeholders must adhere to. This code emphasizes fairness, integrity, and professionalism. Engaging in price fixing would be a clear violation of these ethical principles and could result in disciplinary action (by means of investigation), including expulsion from SAPAC.
  
  Read: Mission and Objectives
  Read: The Role of SAPAC 
  
  
• Competition: The South African construction industry is already unfairly competitive. How is this possible you might ask? Various illegal entities perform various installations placing the public in harms way. Not following SANS or the legal requirements. That has been developed with the end user (public) in mind.
  
  SAPAC does encourage "fair competition" amongst Legal entities. However non-legal entities is in the market and performing unsafe actions and placing the public in harms way.
  
  
• There are many qualified SAPAC professionals and contractors vying for clients. Price fixing would stifle competition and limit client choice. In a competitive market, businesses are incentivized to offer competitive rates to attract clients. 
  
  
• Therefore many SAPAC Professionals and Contractors obtain the work when clients do contact SAPAC. And there is no favoritism with regards to this from the SAPAC HQ
  
  Read : Construction Mafia
  
  
• Further SAPAC is the only entity that is not charging 10% or Finders fees or any fee to Professionals and Contractors with regards to any type of job that a client requires. In all cases the public is assisted free of charge by the SAPAC HQ to get in contact with a reputable competent and capable professional and OR contractor. Or to assist them sort out an issue.
  
  
• Reputation: SAPAC professionals and contractors rely on their reputation for quality service and fair pricing. Price fixing would damage their reputation and could lead to a loss of business. Clients who discover that they have been overcharged are unlikely to return and may spread negative word-of-mouth. However this is unlikely seeing that clients opt for illegal contractors not knowing the difference. And they opt for the cheapest unskilled option. Only to discover they require assistance. 
  
  
• Risk of Detection: Price fixing is a crime, and there are serious penalties for those who are caught. The Competition Commission of South Africa (CCSA) is responsible for investigating and prosecuting anti-competitive behavior. The CCSA has the power to impose large fines on businesses and individuals who are found guilty of price fixing.

There are strong ethical, economic, and legal reasons why SAPAC professionals and contractors will not engage in price fixing. SAPAC's commitment to fair competition and ethical conduct helps to ensure that clients receive quality reliable contracting services at competitive rates.

Being a stakeholder provides you a voice, yes this is true. However SAPAC HQ is committed to ensuring the message gets spread to a public that is unaware of the relevant trades with their issues and to ensure that compliance is the cornerstone in everything that is performed through active participation and consultation with all industry voices accounted for.

That being said active participation and consultation (i.e. Meetings) is different with regards to implementation of decisions (Actions). Decisions with regards to SAPAC will be in line with the mission and objectives of SAPAC Professionals and Contractors. And in line with industry norms and practices.

Read: Mission and Objectives
Read: The Role of SAPAC 
Read : Construction Mafia

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