Construction sector signs major reform pact to tackle delays, cost overruns and governance

SOUTH Africa's construction sector continues to grapple with project delays, cost overruns, skills shortages, and governance failures, according to the Department of Public Works and the Construction Industry Development Board (cidb).

- TAWANDA KAROMBO

CONSTRUCTION industry stakeholders have now signed the 2025 National Construction Summit Declaration that commits stakeholders and players to “turbocharging the construction industry for improved performance and accountability” amid pressing challenges. SUPPLIED

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Transformation in the sector also remains a key area of concern, officials noted following a two-day National Construction Summit attended by President Cyril Ramaphosa.

The construction sector, a major driver of economic growth and employment, contributed 2.5% to GDP in the second quarter and accounted for 35% of gross fixed capital formation, with total spending of R247 billion.

Construction industry stakeholders have now signed the 2025 National Construction Summit Declaration that commits stakeholders and players to “turbocharging the construction industry for improved performance and accountability” amid pressing challenges.

Among commitments related to governance is a framework to track performance across infrastructure clients, professional service providers and contractors, identifying nonperforming clients, and enabling the blacklisting of contractors and professionals who fail to deliver.