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• Create Date September 6, 2024
• Last Updated September 6, 2024

Preferred Construction Material Supplier and Competitor Survey August 2024

The Preferred Supplier Survey is conducted amongst contractor involved in active construction projects to monitor the preferred material suppliers appointed by contractors. It monitors a material supplier’s trade exposure, measured against the value of project being supplied. Through ongoing research and active engagement with contractors across the country, many issues are highlighted, and concerns raised that contractors must face on a day-to-day basis. During the last 12 months results from over 500 projects, worth R40bn were included in our survey that has grown to include over 2100 different suppliers in aggregate, cement, readymix, floor and wall surfaces, roofing, paint, paving, pipes, culverts, formwork and scaffolding. July 2024 highlights remain focussed on the negative impact of the Construction Mafia, delayed payments, and unreasonable stipulations in the bills of quantities especially with regards to local procurement on rural sites.

The August 2024 survey examined 209 construction projects worth R10.4 billion, mainly focused on roads, water, and power. Half of the projects were unsuitable, and the survey faced challenges due to delays in payments and project suspensions. Construction material price inflation rose, exceeding consumer inflation. Project awards in July 2024 decreased by 20%, with civil projects seeing a sharp decline. Interference from external parties, construction mafia issues, and project delays continue to affect contractors, particularly in KwaZulu-Natal and Mpumalanga. Despite these issues, some areas show signs of recovery, with daily tenders being advertised.

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