XEBISO B . KAMUDYARIWA is a lecturer at the University of Witwatersrand . She focuses on Construction Procurement research
A DOUBLE-EDGED SWORD
So , the construction site is made safer ; does that mean everything is back to normal ? Unfortunately , exacerbating the situation further is the fact that limited people are allowed on site implying fewer construction workers to enable social distancing . This can lead to delays in the construction process as there are fewer hands to do the necessary work . Others have touted this as an opportunity to bring technology into the industry to improve efficiency . This solution is unfortunately double edged as while machines can improve the construction process , they can also literally take jobs away . This is besides the fact that technology would not come cheap making it a solution for bigger projects ( by implication higher grade contractors ) that are able to handle the cost . Another touted solution is that of working round the clock ; workers do the work in shifts to enable the work to move as quickly as required . This would obviously mean extra expenses such as lighting for working at night ; but this cost could prove a small price to pay to ensure work progresses .
Implementation of these solutions though is for work going forward and does not address current implications of delays . As early as February , construction material shipments from China for example were already hit , with indefinite delays meaning contractors could not meet their obligations on time . In this case , again contracts play a major part in determining how the cost of delays will be shared between the contractor and the client . The crisis provides an avenue for standard contracts to be revised to prevent only one party , usually the contractor bearing the majority of risk . After this crisis , it is hoped that in the future such risks are anticipated , and adequate mitigation strategies determined . One issue that has come into focus in terms of import delays is that of local production . South Africa does have capacity to produce materials , it is hoped that local industry gets a boost as project materials are increasingly sourced locally .
The industry has already been facing reduced infrastructure spending and major companies such as Stefanutti have seen their share prices crashing to an unprecedented degree . Insurance companies have also been battling with clients , refusing to pay out on business interruption policies . On one hand these are the sort of emergencies when such policies should prove helpful , on the other , pay-outs to the large number of affected businesses could possibly bankrupt insurers . Class action suits are in motion over these issues though insurers have compromised by promising to do case by case reviews instead of blanket rejections .
13 africanthinker . com