03 May 2017
Posted by: SAFCEC Communications
The estimated value of civil projects put out to tender during the 1st quarter of 2017 slowed significantly, from an estimated value of R14.7bn in the 4th quarter of 2016 to just over R8.3 bn. This is approximately 40% lower when compared to the same quarter in 2016. Annual growth - measured over a running twelve month period - turned negative, falling by 5% y-y by the 1st quarter of 2017 from an annual increase of 14% by the end of 2016. The more positive growth in tender values during last year has filtered through to awards in the first quarter of 2017 but may not be sustained for long, based on the weak tender performance in the 1st quarter.
Tender values contracted across all of the provinces during the 1st quarter compared to last year, with the largest declines reported in Kwa-Zulu Natal, followed by North West and the Western Cape. Ten Grade 9 projects were put out to tender during the 1st quarter (mostly roads contracts in Limpopo) compared to 13 tenders in the 1st quarter of 2016, and an average of 23 per quarter during 2016. A total of 3 grade 9 civil projects were cancelled / postponed affecting mainly the North West province. On the upside, 20 Grade 9 projects were awarded during the 1st quarter - a significant increase compared to the number of projects awarded in the same quarter of last year.