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• Create Date October 2, 2024
• Last Updated October 2, 2024

Preferred Construction Material Supplier and Competitor Survey September 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.

The September 2024 survey included 101 construction projects, valued at R11.9bn, and revealed significant challenges in South Africa’s public sector construction, particularly in the education, housing, water, and road sectors. The survey, which also covered an additional 28 projects from 2022-2023, highlighted delays due to weather, payment issues, and community interference. Contractors reported difficulties related to local procurement policies, with rising material costs and supply chain inefficiencies causing further strain. Key findings included a 2.2% decline in project volume and a 2% reduction in value over the last 12 months. Amidst this, political disputes and community interference have further disrupted project timelines, particularly in the North West and KwaZulu-Natal provinces. Although some progress has been made, with housing projects adopting solar panels, project cancellations have surged by 30%, reflecting deeper structural issues in the sector.

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