Abstract
D.Ing.
The construction industry has changed dramatically over the past thirty odd years. The
following factors played a significant role in this change: (1) The building boom around
the 1970s pressurized the industry to work faster. This was followed by periods of
variation in workload, which have over the last number of years manifested in a
permanent low demand for construction in South Africa. (2) Projects became larger and
more complex. (3) An over-regulated labour environment not only leads to the downsize
of organizations, but is a main contributor towards the increased use of subcontracting.
(4) The time value of money causes owners to specify compressed project schedules
and lowest price is often the only selection factor in the award of contracts. The shift in
work from predominantly public sector towards the private sector, which by nature is
more time conscious, is another factor pressurizing the industry to work faster.
The industry has introduced amongst others the following measures to cope with these
demands: (1) Main contractors are subcontracting more and more of the work. (2) The
traditional in-series concept came under pressure - the management approaches
became formal procurement concepts and design-build re-appeared. (3) New
construction techniques such as fast-tracking and the movement towards factory
produced elements in certain areas, for example precast concrete elements, reduced
project schedules and replaced previously time consuming activities and counteracted to
a certain extent the shortage of skilled tradesmen.
The author argues that in the process to combat these external pressures, the following
problems, amongst others, manifested: (1) Ineffective project procurement. (2) Unethical
and unsound practices between main contractors and subcontractors. (3) Lack of quality
and reliability of a substantial share of end-products. Another problem burdening the
industry is historical, namely cultural differences between designers and contractors.