An Analysis of the Challenges Facing Emerging Contractors in the Nelson Mandela Metropole, South Africa

Abstract

The construction industry is an important
player in the economy of South Africa. The
South African government is the single largest
construction client, representing between
40%-50% of the entire domestic construction
expenditure in the country. Notwithstanding
this, emerging contractors face serious
challenges, including a sharp decline in
employment over the last 20 years, a steep
decline in gross domestic fi xed investment,
slow delivery due to poor capacity, low
productivity, poor quality workmanship
and low profi t margins for contractors. The
aim of this article is to explore the diffi cult
journey which emerging contractors currently
undertake through a survey analysis of the
industry, and to provide recommendations
to overcome these challenges. The survey
herein discussed was restricted to emerging
contractors in the Nelson Mandela Metropole.

African Insight Vol. 36 (3&4) 2006: pp. 186-198