Building boom bolsters province

Posted On Wednesday, 20 September 2006 02:00 Published by
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The Eastern Cape is experiencing a massive building boom - with some contractors so busy that they cannot take on any new projects until 2008
By Nicky Willemse

The Eastern Cape is experiencing a massive building boom - with some contractors so busy that they cannot take on any new projects until 2008.

The boom has caused a critical shortage of building contractors, with potential clients having to wait months just to get a quote.

The competitive market has pushed prices up, with contractors' tenders up to 50% higher than initial cost estimates by quantity surveyors.

Economic growth and lower interest rates in the past few years have prompted the boom. But rising prices in steel and copper, together with petrol hikes, have also sent bills soaring. The huge demand for materials has meant there have been delays and shortages - and those in the industry predict more once building begins in earnest for the 2010 Soccer World Cup.

Adel Group director of building Tony de Lauwere said there was "far too much work for the number of builders".

"The housing and development market took off about two to three years ago. It has slowed a little, the commercial and industrial market has now taken off. We can't take on any more work at all this year, or for the whole of next year."

Area director of Grinaker-LTA Building Cape Leon Petrie, with projects throughout the Eastern and Southern Cape, said the demand for building was a "positive swing-around" for the province, but said the lack of skilled labour available was problematic.

Port Elizabeth funny man Barry Hilton has been trying to get building contractors to give him a quote for renovations to his Lorraine house for a month.

"I don't see it as a negative though. It means PE is flourishing and going forward, which is great, and good luck, but please come round and give me a quote!"

Essexvale couple Gail and George Charalambous said they battled to find a builder, but once they had, it took him seven months to complete their renovations - "at least two months longer than it should have", Gail said.

Architect Nicola Darke said the huge demand for reputable building contractors meant clients sometimes had to "book them six months in advance".

PE civil structural consulting engineer Ivo Huisman said until recently the building industry in this area had been "very depressed". "From 1980 to 1990, people in the industry halved, and then halved again from 1990 to 2000.

"Logically, a bit of growth in the building industry means there is a huge shortage of building contractors, from the engineers to the bricklayers."

Greg Steele, executive director of the East Cape Master Builders Association said the "demand for building work" was only one of the factors leading to higher costs. Other factors included increased material prices as a result of the higher demand.

Alf Zehmke, branch manager of East Cape Master Builders Association (Knysna) said property damage resulting from last month's floods added to the pressure already on builders in the area. "We don't have people to send out to attend to flood damage."

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Publisher: I-Net Bridge
Source: I-Net Bridge

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