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• Create Date June 3, 2024
• Last Updated June 3, 2024

Preferred Construction Material Supplier and Competitor Survey May 2024

The Preferred Supplier & Competitor Survey (PSS) is a monthly survey conducted among contractors to determine material suppliers and brands involved in building and civil projects across the country.

Most of the projects surveyed during May 2024 were in the road and water sectors, followed by the education sector. Notably, water sector projects often include upgrades to sanitation facilities, which are relevant to educational institutions. Many projects remain suspended due to non-payment by clients such as DOE, PWD, and DBSA, with some projects pending since March. This month, responses were brief, so the focus was on data collection. In cases where respondents were more talkative, additional information on confidence levels and material contribution percentages was obtained.

Contractors, particularly those in Limpopo, Mpumalanga, and the Northwest, were generally reluctant to engage, with many calls unanswered or engaged. Political instability and volatility were significant concerns, particularly regarding confidence levels. This year, there has been a noticeable lack of project awards prior to the election, leading to a wait for promised infrastructure funding.

Cost escalations in tenders have become a notable issue, as the originally included 8-10% increase is now insufficient, with contractors reporting adjustments of up to 12-15%. This necessitates requests for price adjustments, further delaying project progress. Contractors working across provincial borders have also noted that material prices are more competitive inland, leading them to procure from places like Gauteng, despite project locations in more outlying areas like Limpopo or George, where local materials are more expensive.

Additionally, the quality of aggregates has come under scrutiny, emphasizing the need for contractors to maintain quality standards rather than opting for lower costs.

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