An exploratory study into the challenges facing the emerging contractors involved in the construction of low cost housing in Wells Estate and Ikamv’elihle townships in the Nelson Mandela Metropole, South Africa

Abstract

Paper presented at the XXXIII IAHS World Congress on Housing, 27-30 September 2005,"Transforming Housing Environments through Design", University of Pretoria.

The construction industry is an important player in the economy of South Africa. In 1999 the construction industry contributed approximately 35 % of the total gross domestic fixed investment and employed 230 000 employees [1]. The South African government is the single biggest construction client, making up between 40 % and 50 % of the entire domestic construction expenditure [2]. Notwithstanding, the emerging contractors face some serious challenges in their endeavour to deliver the infrastructure projects effectively. Among other construction industry challenges, there has been a sharp decline in employment over the last 20 years, a steep decline in gross domestic fixed investment (GDFI), slow delivery due to poor capacity, low productivity and poor quality workmanship, and low profit margins for contractors. Emerging contractors are reportedly beset with a prevalence of client dissatisfaction [3]. Considering that client satisfaction is the crucial variable underpinning current and future prospect in the building industry, it is necessary to investigate the challenges facing the emerging contractors. The primary objective of this research was to investigate the challenges facing the emerging contractors involved in construction of low cost housing at Ikamv’elihle and Wells Estate in the Nelson Mandela Metropole. The study looked, amongst others, at areas such as business leadership, business strategy and planning, customer and market focus, people management, resource and information management, business processes, customer satisfaction, supplier and partnership performance, business results as well as health and safety issues.