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• Create Date July 1, 2024
• Last Updated July 1, 2024

Preferred Construction Material Supplier and Competitor Survey June 2024

The survey conducted in June 2024 analyzed 271 projects valued at R14.1 billion, primarily awarded in November 2023. It included an additional 15 projects from March 2022 to September 2023, valued at R2.1 billion. Of the 271 projects, 49% were deemed unsuitable due to their nature, such as a R3.4 billion road maintenance project in Gauteng. The survey faced challenges with 8% of respondents citing the POPI Act, 31% being unreachable, and 17% lacking contact details. Delayed payments led to project suspensions as the 2023/24 financial year ended.

The surveyed project values increased by 13% over the past year, with 639 projects worth R56 billion. Since 2019, a total of 2,744 projects valued at R212 billion have been surveyed. Contractor confidence remains weak in Gauteng's private sector, and election results continue to impact public sector projects, particularly in Polokwane, KwaZulu Natal, and Limpopo.

Community unrest and vandalism have disrupted projects, such as a halted R1.8 million school fence project in East London and the need for armed security in Kariega. Contractors struggle with local procurement due to insufficient stock, impacting projects like a road project in KwaZulu Natal.

Construction material price inflation averaged 7.4% in Q1 2024, exceeding the 5.2% consumer inflation rate in May 2024 at 6.9%. Project awards in May 2024 dropped by 50% compared to April, with a notable decline in civil and building sectors. KwaZulu Natal led in project value awards, while Northern Cape had the lowest.

High-value projects awarded include a R330 million slope stabilization project in the Eastern Cape and a R191 million hospital refurbishment in the North West Province. Tender activity decreased, with the highest in the Eastern Cape and the civil sectors of KwaZulu Natal and Limpopo, while the Northern Cape and Free State saw poor activity.

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