Urgent Reforms Needed as South African Construction Industry Teeters on Collapse
The South African
construction industry is nearing collapse due to shrinking profits, unethical
practices, and payment delays to subcontractors, warns the Master Builders
Association (MBA) North. Executive Director Mohau Mphomela highlights the
severe impact on subcontractors, who suffer prolonged payment delays and
mounting debts. Nico Maas of Gauteng Piling reports losses over R9 million and
debts of R11 million. With 80% of work now subcontracted, financial instability
among main contractors exacerbates the crisis. MBA North proposes solutions
including retention funds, fair contracts, and best practices to safeguard the
industry and ensure ethical conduct.