Over the past few years, the construction industry has suffered many fatal blows. The embattled sector now faces further losses as a level 3 service provider.
From the construction mafia to limited investments, non-payments and a rise in lawsuits, all these factors have ultimately culminated in the demise of some of South Africa’s most prominent construction firms. Fast-forward to February 2020 and the country is temporarily revived during the time of President Ramaphosa’s SONA address and Finance Minister, Tito Mboweni’s budget speech. “This year started off more promising than anticipated,” says Wayne Bartlett, Director for Bartlett Construction. Talks of continued smart city developments, a brand-new university, R700 billion worth of investment over the next 10 years and a skyline filled with cranes were making news headlines. “A promise to shift expenditure and focus from state owned debt servicing to infrastructure was on the cards,” says Bartlett. With more than 55 years in the industry, Bartlett Construction, a medium-sized construction firm has upscaled and downscaled over the years to accommodate fluctuating demand. “Late last year, heavy weights in prominent industries started issuing tenders and the industry seemed to be getting back on its feet”.Bartlett says that this was short lived.
“The country’s budget (in excess) has now been allocated to fighting the pandemic and the commercial construction sector sits at level 3 of the risk-adjusted strategy. This means that all halted commercial projects pre-lockdown will remain uncompleted for the foreseeable future and will put major pressure on both the industry and its clients once they can commence”. Adding to our country’s unemployment woes, the construction industry recorded the highest number of retrenchments and job losses in the country between 2018 and 2019. “The industry has shed so many jobs over the past few years and it’s expected to accelerate rapidly. According to a recent article by Marketwatch, the construction industry worldwide will be most affected by the pandemic”. Bartlett hopes that a compromise can be reached within the next few days rather than waiting a few months for projects to continue. “A construction project can generate hundreds of jobs for labourers. While the phased approach is restrictive and necessary, the industry could effectively start to operate from 01 May at around 20% capacity with strict PPE measures in place. This will offer a boost to the sector and will ensure that client’s projects are met in time for lockdown to be lifted and business to commence”.In collaboration with Wayne Bartlett, Director for Bartlett Construction