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• Create Date August 4, 2026
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Preferred Construction Material Supplier and Competitor Survey July 2026

The Preferred Supplier Survey, pioneered by Industry Insight, evaluates the Market Exposure Rate (MER) of key construction material suppliers within the construction industry. MER is used to measure supplier participation in projects based on their exposure to project values rather than sales volumes.

Rising Material Costs and Payment Delays Tighten Pressure on Contractors

The July 2026 Preferred Supplier Survey (PSS), based on feedback from contractors on 38 active construction projects with a combined value of approximately R11.0 billion, provides valuable insight into the challenges currently affecting project delivery across South Africa. While the projects surveyed span a range of sectors and provinces, a common theme emerging from contractor feedback is that project implementation remains under considerable pressure, while construction material pricing is on the rise. Funding constraints, delayed payments, lengthy procurement processes and administrative bottlenecks continue to slow construction progress, often delaying projects long after contracts have been awarded.

A notable finding is that many of the projects monitored by the survey were awarded during 2022, 2023 and 2024 but remain under construction or have only recently commenced. This suggests that implementation delays continue to affect a number of public sector projects, with contractors frequently citing funding shortages, delayed budget approvals, contractor withdrawals, rising construction costs and unresolved administrative processes as key obstacles. These challenges were reported across projects in KwaZulu-Natal, Limpopo, the North West, Gauteng and the Eastern Cape, affecting the health, housing, education, road and bulk infrastructure sectors. In several cases, projects remain on hold pending additional funding, while others have experienced extended completion dates due to payment delays or supporting infrastructure still needing to be completed.

While the findings relate only to the projects included in the survey and should not be interpreted as representative of the broader construction market, they provide valuable on-the-ground insight into the operational challenges facing contractors. The survey suggests that project implementation continues to be constrained by funding, payment and administrative issues, resulting in longer construction programmes, extended cash-flow pressures and slower procurement of construction materials and specialist products. These contractor insights complement broader market indicators by highlighting the practical challenges influencing construction activity once projects move beyond the award stage.

Download the PSS July 2026 overview here (available to PSS Subscribers)

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