Financial implications for built environment consultants working at risk in South Africa

Abstract

Consultants in the built environment of South Africa are facing financial risks due to clients’ expectations of completing certain portions of work at risk. Thus, consultants would complete projects at risk in return for the possibility of remuneration in the long run. A descriptive survey was conducted among various professional consultants working within the built environment in South Africa. The findings include that a large percentage of work was expected to be completed at risk. Once work was completed at risk, a relatively small percentage continued to a stage where the actual consultant received remuneration. As a result of the current global economic climate, the amount of work required to be completed at risk increased and the percentage of work continuing to a stage of remuneration has also decreased. A greater percentage of clients therefore expected more work to be done at risk than the actual amount of work for which consultants are remunerated.

Keywords: Built environment, financial risk, expectations, remuneration, work done at risk

Abstrak
Konsultante in die boubedryf van Suid-Afrika loop finansiële risiko’s as gevolg van kliënte se verwagtinge om sekere fases van werk te voltooi teen ‘n risiko. Konsultante voltooi dus projekte teen ‘n risiko met die hoop op vergoeding in die lang duur. ‘n Beskrywende opname is gedoen onder ‘n verskeidenheid professionele konsultante wat in die boubedryf van Suid-Afrika werk. Die bevindinge was dat ‘n groot persentasie van die werk teen ‘n risiko gedoen word. As die werk teen risiko voltooi is, is daar maar ‘n relatiewe klein persentasie wat voortgaan tot ‘n stadium waar die konsultant wel vergoeding ontvang. As gevolg van die wêreld se huidige ekonomiese klimaat het die hoeveelheid werk wat teen risiko gedoen word toegeneem terwyl die stadium waar vergoeding moet geskied, afgeneem het. Meer kliënte verwag dus werk wat teen ‘n risiko gedoen moet word terwyl die eintlike bedrag van vergoeding vir die konsultante afgeneem het.

Sleutelwoorde: Bou-omgewing, finansiële risiko, verwagtinge, vergoeding, werk gedoen op risiko

Article text in English