Builders feel the pressure

An estimated 120 000 to 140 000 formal jobs will be lost in the construction sector, according to construction market intelligence firm Industry Insight.

But the fear of job losses and the financial blow hits the small business owner the hardest.

“My biggest concern or fear is that the property and construction sector will have a prolonged recovery,” said Vere Shaba, founder and chief executive officer of Greendesign.

Greendesign is an award-winning Johannesburg-based engineering consulting firm that designs, engineers and commissions high-performance buildings across Africa.

The property and construction sectors have been severely impacted by the lockdown because residential and commercial projects can only resume from Level 3 and 2.

Shaba said that her business has had to use the force majeure contract clause for delays in projects.

“Using the clause negates all financial losses incurred by delays, specifically for contractors and consultants with teams who still need to be paid during this,” she said.

Her hand was forced to take this route because of the negative impact the lockdown would have on her business and she had to mitigate the risk.

She laid bare the sentiments of those that were in the construction sector on how the lockdown would further harm the in industry that was already on its knees. The construction sector has already faced numerous liquidations and has had JSE-listed companies being under business rescue.

“Delays negatively impact our workload, cashflow and investor confidence in the property and construction sector in South Africa which was already on the fifth consecutive quarter of a recession,” Shaba said.

Shaba, who has five employees, said that she has never made a “culture” of receiving finance for her business operations. Greendesign maintained a three to six month cashflow projection.