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• Create Date July 31, 2024
• Last Updated July 31, 2024

Preferred Construction Material Supplier and Competitor Survey July 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 July 2024 survey included a sample of 206 projects worth R10 billion, that were primarily awarded in December 2023.  Delays in local government payments have impacted project progression, achieving a 70 percent response rate. The survey highlights issues with the Construction Mafia causing delays and extortion, particularly in KwaZulu-Natal, and increased material costs. Awards in June 2024 totalled R6 billion, a 30 percent decrease year-on-year. KwaZulu-Natal led in project awards, while Eastern Cape reported several project cancellations in the public building sector. Construction tenders decreased by 11 percent y-y in June, with the increase in civil tenders offset by a weakening in the non-residential building sector.

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