COVID-19 Disruptions and Implications in the Construction Industry
South Africa’s construction industry has been pulled to its knees throughout 2020, with several lockdowns and COVID-19 restrictions initially with the total lockdown prohibiting any on-site construction to continue and subsequently preventing regular on-site construction projects to continue as per usual and putting a proverbial spanner in any future projects. This forced several construction companies to make desperate moves to stay afloat, many having to go the business rescue route and in some instances liquidation and in others simply closing the doors of their business. This means more and more claims have already arisen with potential of a great many more which will even further obstruct business as usual. With the new year in full swing, the construction sector in South Africa is facing a plethora of challenges to get the gears turning once again.
Construction Materials Shortage
Steel is one of the most frequently used materials in construction. As a direct result of the COVID-19 lockdowns and restrictions, the local steel industry is short on supply. Now, the demand for steel is steadily increasing once again, which led to AMSA announcing that they started steel production ahead of their planned schedule to support the local steel industry. However, with the pandemic increasing in severity, the problem of workplace safety still remains with the consequent further restrictions in response to the pandemic, having direct legal implications when it comes to construction law and employee rights.
Adopting Technology for the Construction Industry in South Africa
Moving into the new year, the construction sector will face an uphill battle to get going again. Whether it is a shortage of building materials or adhering to COVID-19 restrictions, the focus still rests on creating a safe and legal workspace on-site. Therefore, the construction industry can no longer delay the implementation of technology to change the way that they operate in an effort to overcome the crushing effects of stringent lockdown in the future.
If you are a construction business owner and need a construction law specialist to assist you throughout these unprecedented times, Allardyce & Partners Attorneys offers labour and construction law specialists to ensure that you stay on the right side of the law. For more info on how we can assist you, please contact us on 011 234 2125 or email us at enquiries@www.allardyce.co.za today for all your construction law needs.
