construction companies in South Africa

South Africa’s construction industry faced a challenging year in 2014, fraught with labor unrest, substantial delays on some of the country’s major construction projects, as well as recent setbacks in the economy.

“The 2014 financial year started with a lot of promise despite adverse findings by the Competition Commission and various challenges to the industry,” says Andries Rossouw, PwC Partner. Order books were strong and margins were recovering for the first time in five years. However, the lack of recovery in the economy meant that this promise was not fulfilled and 2014 proved to be a tough year for most construction companies.

Rossouw says: “The past few years have highlighted the need for better coordination and monitoring within the construction industry – a challenge that the South African Government has welcomed with the roll-out of its National Infrastructure Plan. Implementation of the plan will require significant input from the construction industry.”

PwC’s second edition of ‘SA Construction’ highlights some of the trends in the South African construction industry. The study’s findings are based on the financial results of the leading construction and construction materials companies listed on the Johannesburg Stock Exchange (JSE) for financial year ends to June 2014.

The South African construction industry

The construction industry is cyclical in nature. However, the 2014 market capitalization of the heavy construction and building materials & fixtures companies saw mixed results. Ten companies reflected an increase and five a decrease. In aggregate, for the 16 companies analyzed, market capitalization had slightly decreased to R67.4bn as at 30 June 2014 (R68.1bn as at 30 June 2013).

The market capitalization of the 16 companies had decreased further after 30 June 2014 and as at 30 September, 2014 had declined to R66.3bn (a 1.6% decline in market capitalization over the three-month period).

The Government’s ongoing National Development Plan and its continued commitment to public infrastructure investment of R847bn over the next three years are positive signals for future growth in the industry.Actual government construction expenditure in 2013 was R12.7bn below the 2012 forecast. This decrease in anticipated expenditure underlines the challenges experienced by the industry.

Actual government construction expenditure in 2013 was R12.7bn below the 2012 forecast. This decrease in anticipated expenditure underlines the challenges experienced by the industry.
Growth in the order book for 2014 was 16% in line with the percentage experienced in 2012 after a flat 2013. The secured order book now covers 1.3 times current-year revenue, a marginal increase on 1.2 in the prior year, but still well below the 1.5 of 2012.

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Total revenue increased by 9% to R172bn in the prior year mainly as a result of an increase of R4.1bn from Group Five, R1.5bn from Murray & Roberts and R1.3bn from Avenue. These increases were large as a result of increased revenue from energy, oil and gas projects and a weaker rand partially offset by weaker demand from the mining sector.

Total operating costs increased by 9.4%, marginally higher than the revenue growth, resulting in a slightly lower profit margin. The report shows that for the heavy construction companies, staff costs continued to represent a significant component of operating costs, constituting 28.3% of total operating costs (2013: 27.8%) and increased by 10% on the prior year.

The common key risks identified by construction companies include risks to growth and expansion of the industry; industrial unrest; loss of key skills and expertise; health, safety and environmental sustainability; project execution; transformation; tender risks; credit risk management; and compliance with the laws and regulations.

In addition to these risks, the construction industry remains under pressure from the public and regulators to significantly improve its safety performance, with challenges prevailing across the industry. There is also the added risk of non-compliance with the Construction Charter, and concerns around the retention of talent and skills shortages.

Top Construction Companies In South Africa

NameAddressPhone (Country Code +27)
Sunset Industrial9 Central Avenue, Pinelands, Cape Town, 7430, Western Cape, South Africa Get directions0215318212
Laygaogamond Properties & Projects (Pty) Ltd143 Kwartel Rd, Birch Acres, Kemptonpark, Gauteng, South Africa Get directions0119760323
Thabimndeni Construction & Projects CCUnit 6, 20 Lewis, Amanzimtoti, Amanzimtoti, Kwazulu-Natal, South Africa Get directions0319035223
SPHANDILE TRADING ENTERPRISE46 Second Avenue, Alberton North, Alberton, 1456, Gauteng, South Africa Get directions0119073554
Afri-Devo (Pty) Ltd65 Swansway Av, Heuwelsig, Kimberley, Northern Cape, South Africa Get directions0538611514
BASELINE CIVIL CONTRACTORSGooderson Road, Blackheath, Blue Downs, Western Cape, South Africa Get directions0219052545
Riverside Chuene Construction CC80 A Bendor Drive, Bendor, Pietersburg, Limpopo, South Africa Get directions0152964765
Turner & Townsend (Pty) LtdMetlife Cntr, Coen Steytler Ave, Foreshore, Cape Town, Western Cape, South Africa Get directions0214217001
L & R Welding Tool Supplies (Pty) Ltd47 Railway St, Noldick, Meyerton, Gauteng, South Africa Get directions0163620325
VNA Consulting596 Ridge Rd, Essenwood, Durban, Kwazulu-Natal, South Africa Get directions0312071537
Brice Construction CC16 Fisher Av, Epping Industrial, Epping Industrial, Western Cape, South Africa Get directions0215345221
Point Blank ConstructionSouth Africa Get directions0227421026
ITHEMBA HOME BUILDERS108 Ann Rd, Clayville, Midrand, Get directions0113164264
JA Rutkiewicz Consulting Structural & Civil Engineering23 Newport Rd, Parkwood, Parkwood, Gauteng, South Africa Get directions0118805770
Gossow & Harding Construction (Pty) Ltd7 Norway Street, Maitland, Cape Town, 7404, Western Cape, South Africa Get directions0215113101
Reed Simpson Construction (Pty) Ltd18 Lanner Rd, New Germany, New Germany, Kwazulu-Natal, South Africa Get directions0317057704
Action Building & Civils18 Red St, Isithebe, Isithebe, Kwazulu-Natal, South Africa Get directions0324591667
Moretlo Consulting CC19 3rd Avenue, Westdene, Bloemfontein, Free State, South Africa Get directions0514305509
KGATO PROJECT MANAGEMENT16 Kolbe Ave, Oranjesig, Bloemfontein, Free State, South Africa Get directions0514309815
Roal Construction7 Frikkie Fourie Street, Ooseinde, Bloemfontein, Free State, South Africa Get directions0514320270
W P Ryan Builders CC3 Lovers Walk, Kenilworth, Cape Town, 7745, Western Cape, South Africa Get directions0217617323
JP Steel17 Kirston Str, Parow East, Parow, 7501, Western Cape, South Africa Get directions0219304405
Bloch Quarmby Higgs45 Kenneth Kaunda Rd, Durban North, Durban, 4016, Get directions0315630050
Debrock Construction Projects50 Short St, Johannesburg , Johannesburg, Gauteng, South Africa Get directions0738301219
Quil Construction & Projects CC96 2 Road, Kew, Johannesburg, Gauteng, South Africa Get directions0114401433
AVRILLE BUILDING PROJECTS3 Nuweveldberg Rd, Eldorado Park Ext 4, Soweto, Gauteng, South Africa Get directions0119421031
PHETOGO PROJECT MANAGEMENT & ENGINEERSWestdeneSntrm, Reidst, Westdene, Wstdne, Free State, South Africa Get directions0514472077
Axis Plan649 Klip Bank St, Wingate Park, Pretoria, 153, Gauteng, South Africa Get directions0129975167
Innes Projects CC1 Lester Rd, Wynberg, Wynberg, Western Cape, South Africa Get directions0217619333
Cowles Engineering33 Cowless St, Rowhill, Springs, Gauteng, South Africa Get directions0867632996
R T R Construction Cc1423 North Coast Road, Avoca, Durban, Kwazulu-Natal, South Africa Get directions0315692295
Abil Services58 19th St, Elsies River Industry, Elsies River, Western Cape, South Africa Get directions0219315624
East Coast Handyman2 Yorkshire St, Sherwood, Port Elizabeth, 6034, Eastern Cape, South Africa Get directions0722131288
BOMBENI CONSTRUCTION (PTY) LTD51650 Curnick Ndlovu Highway, Inanda, Inanda, Kwazulu-Natal, South Africa Get directions0842859422
Hani Construction (PTY) Ltd1886 Thesele St, Kimberley, Northern Cape, South Africa0785784759
MAXID'S CONSTRUCTIONArea 8, F1325 Amatikwe, Inanda, 4310, Kwazulu-Natal, South Africa0734684323
G F CONTRACTORSAustinville, 6 Shiraz, Diep River, Cape Town, Western Cape, South Africa Get directions0824260600
Kingsbourne (Pty) LtdSouth Africa Get directions0118861867
ZIKHUTHALISENI TRADING5 Ceremic Curve, Alton, Richards Bay, 3900, Kwazulu-Natal, South Africa Get directions0355712152
Sunset Industrial9 Central Avenue, Pinelands, Cape Town, 7430, Western Cape, South Africa0215318212
VNA ConsultingVNA House, 596 Peter Mokaba Ridge, Essenwood, Durban, Kwazulu-Natal, South Africa0312078121
Brick 'n Board25 Rogland Street, Braskville, Brackenfell, Western Cape, South Africa0219812884
Laygaogamond Properties & Projects (Pty) Ltd143 Kwartel Rd, Birch Acres, Kemptonpark, Gauteng, South Africa0119760323
Thabimndeni Construction & Projects CCUnit 6, 20 Lewis, Amanzimtoti, Amanzimtoti, Kwazulu-Natal, South Africa0319035223
Master Builders & Allied Industries Assn (East Cape)13 Doneraile Street, George, George, Western Cape, South Africa0448733356
SPHANDILE TRADING ENTERPRISE46 Second Avenue, Alberton North, Alberton, 1456, Gauteng, South Africa0119073554
W F Construction6 Aaren St, Great Brak River, Great Brak River, Western Cape, South Africa0446202343
Constructsafe Consultants CC18 St George'S Rd, Lynfrae Estate, Claremont, Western Cape, South Africa0216714676
Afri-Devo (Pty) Ltd65 Swansway Av, Heuwelsig, Kimberley, Northern Cape, South Africa0538611514
BASELINE CIVIL CONTRACTORSGooderson Road, Blackheath, Blue Downs, Western Cape, South Africa0219052545
Riverside Chuene Construction CC80 A Bendor Drive, Bendor, Pietersburg, Limpopo, South Africa0152964765
Turner & Townsend (Pty) LtdMetlife Cntr, Coen Steytler Ave, Foreshore, Cape Town, Western Cape, South Africa0214217001
L & R Welding Tool Supplies (Pty) Ltd47 Railway St, Noldick, Meyerton, Gauteng, South Africa0163620325
VNA Consulting596 Ridge Rd, Essenwood, Durban, Kwazulu-Natal, South Africa0312096014
Brice Construction CC16 Fisher Av, Epping Industrial, Epping Industrial, Western Cape, South Africa0215345221
AVENG GRINAKER-LTA115 Bamboesvlei Rd, Ottery, Ottery, Western Cape, South Africa0217031040
Point Blank ConstructionSouth Africa0227421026
ITHEMBA HOME BUILDERS108 Ann Rd, Clayville, Midrand,0113164264
Agvic Construction867 Alpha Street, Paballelo, Upington, 8801, Northern Cape, South Africa0543310040
O S C Projects27 Plot , Dalmada, Pietersburg, Limpopo, South Africa0152636567
O S C ProjectsPlot 27, Dalmada, Pietersburg, Limpopo, South Africa0152636567
JA Rutkiewicz Consulting Structural & Civil Engineering23 Newport Rd, Parkwood, Parkwood, Gauteng, South Africa0118805770
Gossow & Harding Construction (Pty) Ltd7 Norway Street, Maitland, Cape Town, 7404, Western Cape, South Africa0215113101
Reed Simpson Construction (Pty) Ltd18 Lanner Rd, New Germany, New Germany, Kwazulu-Natal, South Africa0317057704
Bay Jay Construction (Langebaan)2 Floris Brand St, Langebaan, Langebaan, Western Cape, South Africa0227722286
Action Building & Civils18 Red St, Isithebe, Isithebe, Kwazulu-Natal, South Africa0324591667
Moretlo Consulting CC19 3rd Avenue, Westdene, Bloemfontein, Free State, South Africa0514305509
KGATO PROJECT MANAGEMENT44 Jac Van Rhyn Rd, Universitas, Bloemfontein, 9321, Free State, South Africa0514460074
Laumosbou CCDonkervliet, Paarl, Paarl, Western Cape, South Africa0218680431
Billet Construction Services Cc280 Oak Av, Ferndale, Randburg, Gauteng, South Africa0113261694
Neat Builders (Pty) Ltd65 Durban St, City And Suburban, Johannesburg, Gauteng, South Africa0113346848
Roal Construction7 Frikkie Fourie Street, Ooseinde, Bloemfontein, Free State, South Africa0514320270
W P Ryan Builders CC3 Lovers Walk, Kenilworth, Cape Town, 7745, Western Cape, South Africa0217617323
Progressive Builders0836330408
JP Steel17 Kirston Str, Parow East, Parow, 7501, Western Cape, South Africa0219304405
Trinity Builders6 Duiker Dve, Beacon Bay, Beacon Bay,0825055169
Patsa Civil Works & Construction CCBoudastria Building, 1018 Zastron St, Hilton, Bloemfontein, Free State, South Africa0514470229
Bloch Quarmby Higgs45 Kenneth Kaunda Rd, Durban North, Durban, 4016,0315630050
Debrock Construction Projects50 Short St, Johannesburg , Johannesburg, Gauteng, South Africa0738301219
Debrock Construction Projects50 Short St, Johannesburg , Johannesburg, Gauteng, South Africa0738301219
AVRILLE BUILDING PROJECTS3 Nuweveldberg Rd, Eldorado Park Ext 4, Soweto, Gauteng, South Africa0119421031
PHETOGO PROJECT MANAGEMENT & ENGINEERSWestdeneSntrm, Reidst, Westdene, Wstdne, Free State, South Africa0514472077
Heunis C M Building Contractors Coastal CC1 Glanville St, Grahamstown, Grahamstown, Eastern Cape, South Africa0466222541
Axis Plan649 Klip Bank St, Wingate Park, Pretoria, 153, Gauteng, South Africa0129975167
Innes Projects CC1 Lester Rd, Wynberg, Wynberg, Western Cape, South Africa0217619333
Cowles Engineering33 Cowless St, Rowhill, Springs, Gauteng, South Africa0867632996
R T R Construction Cc1423 North Coast Road, Avoca, Durban, Kwazulu-Natal, South Africa0315692295
BOMBENI CONSTRUCTION (PTY) LTD51650 Curnick Ndlovu Highway, Inanda, Inanda, Kwazulu-Natal, South Africa0842859422
Amaza Construction CC1419 Welbedacht East, Welbedacht, Durban, Kwazulu-Natal, South Africa0314005942
Andile Amahlubi Construction1296 Spinal Rd, Umlazi A, Umlazi, Kwazulu-Natal, South Africa0739481143
AYANDA SONS AND DAUGHTERS CONSTRUCTION AND PROJECTS (PTY) LTD31 Sitres St, Delft South, Delft, Western Cape, South Africa0737000151
J T W Construction146 Greenhills Av, Greenhills, Randfontein, 1767, Gauteng, South Africa0114123856
MVELI QUALITY BUILDERS AND GENERAL SERVICEMakhaza, 44 , 43991 Khuhla Cres, Khayelitsha, Khayelitsha,0782849627
Jay-Jay ConstructionDalweiding, Farm Dal Josafat, Paarl, Western Cape, South Africa0218682780
BOTHO BATHO PROJECTS29 Victoria Road, Bertrams, Johannesburg, Gauteng, South Africa0826800375
Cougar Construction CC27 Fairfield Av, Scottsville, Pietermaritzburg, 3209, Kwazulu-Natal, South Africa0333864694
ZIKHUTHALISENI TRADING5 Ceremic Curve, Alton, Richards Bay, 3900, Kwazulu-Natal, South Africa0355712152
HILTI SA (PTY) LTD3 Cosmos Ind Park, 449 Pretoria St, Silverton, Pretoria, 127, Gauteng, South Africa0112373000
Boogertman Smit Building19 Steenbok St, Koedoespoort Industrial, Pretoria, Gauteng, South Africa0123334577