Architect and Builder April 2017 | Page 22

Polarisation Leads to Serious Problems in SA Construction Industry W hy are so many construction contracts in SA over budget, late and being carried out at the expense of good relationships between the parties? I believe that polarisation in the construction industry is at the root of the problem. At MDA Consulting we deal with con- struction contracts every day. There are a number of factors which contribute to polarisation, not least of which is the failure of the contracting industry to transform. In addition, collusion on the FIFA 2010 Soccer World Cup stadiums exacerbated the combative atmosphere. Increasingly, we are seeing more community interference in the operations of contractors as well as extreme threats of violence towards contractors by certain business forums in the Durban area. The reality is that we are in a catch-22 situation. 22 Risk and the Contractual Environment Construction contract agreements help to manage risk. However, trust is non-existent between the various role players in the construction sector, which has had devastating consequences for our industry. One of the main causes of dispute bet w