Call to lift the curbs on building

Municipalities reportedly losing thousands of rand in income from rates due to projects halted by the pandemic

THE LOCKDOWN has severely affected the construction industry, which employs hundreds of thousands of people. In halting projects, many cities and municipalities are losing thousands of rand in income that was to have been realised from rates.

Wayne Bartlett, director for Bartlett Construction, said in the past few years the construction industry had suffered many blows.

The embattled sector now faces further losses as a level 3 service provider.

“From the construction Mafia to limited investments, non-payments and a rise in lawsuits, all these factors have ultimately culminated in the demise of some of South Africa’s most prominent construction firms.

“Fast-forward to February 2020, and the country is temporarily revived during the time of President Cyril Ramaphosa’s State of the Nation Address (Sona), and Finance Minister Tito Mboweni’s Budget Speech where there were talks of smart city developments; a new university; and investment worth R700 billion over the next 10 years.

“A promise to shift expenditure and focus from state-owned debt servicing to infrastructure was on the cards with heavyweights in prominent industries starting to issue tenders, but this was short-lived,” he said.

The country’s Budget (in excess) has now been allocated to fighting the pandemic and the commercial construction sector sits at a level 3 (service provider). This means that all halted commercial projects pre-lockdown will remain uncompleted for the foreseeable future and will put major pressure on both the industry and its clients,” Bartlett said.

The construction industry, he said, had recorded the highest number of retrenchments and job losses in the country between 2018 and last year.

This is expected to accelerate. Bartlett hopes that a compromise can be reached within the next few days, rather than waiting a few months for projects to continue.

“A construction project can generate hundreds of jobs for labourers. While the phased approach is restrictive and necessary, the industry could effectively start to operate from May 1 at about 20% capacity, with strict precautionary measures in place.

“This will offer a boost to the sector and ensure that clients’ projects are met in time for lockdown to be lifted and business to commence,” he said.

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