DON’T TAKE RISKS

Times are tough in the building industry, affecting everyone from contractors to workers and clients

WE ARE living in interesting and challenging times. So ended the March newsletter from Allen Bodill, executive director of the Master Builders Association Western Cape. Over the last few weeks, I have been bemoaning the state of our industry, and reading the newsletter reinforced my views. Allen writes: “The construction sector across South Africa appears to be heading into ‘perfect storm’ conditions... the serious nature of which was once again highlighted by the recent FNB/Bureau for Economic Research Civil Confidence Index survey, which indicates confidence in this sector declined to its lowest level in the first three months of 2019, with 90% of respondents reporting dissatisfaction with the prevailing business conditions in the sector.” This is not just bad news for contractors. It affects everyone across the board, from the lowest-paid worker to the wealthiest client. I want to reinforce the risks we are opening ourselves up to by taking the following options. As a client, beware of accepting a price that is so low it is obvious it is only going to end in heartbreak. A brick costs R2.50, a registered, compliant general worker costs the contractor around R365 a day. It is impossible to work below these costs unless you are dealing with stolen bricks or under-paid labour. These are just examples, but a cost is a cost, and then you still have to get your labour and materials to site, supervise them and make a profit. With cash flow being so tight, few contractors can operate without asking for a deposit, but negotiate this and ensure the amount is reasonable. To my fellow contractors, our reputation is at an alltime low, so please don’t make it worse by bending the rules or cutting corners. We have to adapt to the situation and ensure the structures protecting us remain in place.