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Read the case study below and answer ALL the questions that follow. Lockdown forcing construction sector to think more strategically about tech adoption According to
Read the case study below and answer ALL the questions that follow.
Lockdown forcing construction sector to think more strategically about tech adoption
According to the results of a survey conducted by Construction Computer Software CCS amongst its clients,
stakeholders and industry partners, the lockdown has compelled the construction industry to think more strategically
about the adoption of technology, especially as it relates to communication and collaboration. The survey was
conducted to establish how the construction industry has been affected by the lockdown and what measures players
are putting in place to manage the current situation, as the sector is expected to play a major role in South Africa's
economic recovery post the Covid pandemic. Project disruptions and delays
Some of respondents said all their projects have been affected by disruptions or delays due to the Covid
pandemic and of respondents from companies with a revenue of more than R indicated that of their
projects have been delayed or disrupted. These disruptions and delays are as a result of the lockdown measures
enforced by government, as well as shortages of materials, plants and equipment and PPE.
CCS CEO Andrew Skydder says while respondents expect all construction sectors to be affected by the pandemic
in the shortterm, the building sector is expected to be the most affected.
"The building sector is primarily funded by private sector clients, who are expected to cut back on investments due
to the anticipated economic decline as a result of the Covid pandemic. Residential and retail investment is likely
to be most affected due to significant job losses, growing consumer financial stress and a lack of confidence
following the Covid enforced lockdowns."
He adds that infrastructure spending, including civil and roads, is expected to be less affected as this tends to be
government funded. "Respondents suggest that government is likely to accelerate its infrastructure spend
programme in a bid to accelerate economic recovery and absorb unemployed labour into the employment market
as quickly as possible. Mining is expected to be least affected."
Private clients most affected
of respondents said private clients would be the most affected. Business and consumer confidence have been
negatively affected by the Covid pandemic and lockdowns, which is expected to result in a decline in GDP
in This supports the view that the building sector will be most affected as it is primarily funded by private
clients.
Stateowned enterprises, such as Eskom and Sanral, are expected to be least affected. Eskom, in particular, is an
essential service provider and has significant build programmes under way which have not been affected by the
lockdown. In addition, water authorities such as Rand Water, which is an extension of national government, are
also expected to be less affected as they too provide essential services, with infrastructure requiring ongoing
maintenance and upgrading.
Skudder says of respondents indicated that on more than of their projects, clients have invoked force
majeure clauses on their projects. "Smaller companies seem to have been less affected with of companies
with less than revenue having more than of their projects affected." "This compares to of R
to of to and of plus revenue companies. Companies with a revenue of
between Rm and Rbn seem to have had the highest level of force majeure being invoked, with of Rm
to R companies having to of their projects being affected, compared to just for companies
with revenue of less than
Managing the challenges presented by the pandemic
Skydder says a few major themes emerged in the survey. "One was the increased need to keep the channels of
communication open, especially with employees, but also with clients and other stakeholders on projects. It is
undoubtedly healthier for businesses if people feel informed in times of great uncertainty. "Cost management is
another obvious theme, with companies implementing measures to manage costs and ensure liquidity stretches for
as long as possible. Interestingly, organisation
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