Amended Construction Sector Code

August 22, 2019

The long-awaited Amended Construction Sector Code (Construction Sector Code) finally came into effect on 1st December 2017. Many describe the South African construction sector as a sector in tatters. Over the past decade, many issues have plagued the sector. One such is the reputational damage caused through 'bid-rigging' admissions and hefty fines paid in retribution by those involved. Another factor is government's lack of investment in infrastructure and the downgrading of the Rand to junk status. The latter had an impact on contracts already underway when a decision on the Rand's fate was finally announced. This is the result of capital for most projects not stemming from cash reserves, but credit, which today is more expensive. In 2017 the difficulty facing the sector became evident, as most JSE listed organisations representing the sector showed significant losses.

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