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development through partnershipcidb
T h e C o n s t r u c t i o n I n d u s t r y D e v e l o p m e n t B o a r d
The c idb Quar ter l y Moni tor :
January 2009
THE ECONOMICS
OF CONSTRUCTION
IN SOUTH AFRICA
Acknowledgements: The support of Industry Insight in providing details of contracts awarded is gratefully acknowledged.
1
CIDB QUARTERLY MONITOR ; JANUARY 2009
1. Introduction The cidb Quarterly Monitor provides an overview of the state of contractor development in South Africa as input to developing targeted development intervention strategies in support of the National Contractor Development Programme (NCDP). This Quarterly Monitor covering the 1st to 4th quarters of 2008 focuses on public sector supply and demand at a provincial level, and deals only with the General Building (GB) and Civil Engineering (CE) cidb Class of Works. The cidb Quarterly Monitor also includes an overview of contracts awarded on maintenance, refurbishment, renovations, etc., which provides an indication of public spending in line with the National Infrastructure Maintenance Strategy (NIMS) and the cidb Quarterly Monitor has included the cidb BER/Business Confidence Survey for Grade 4 to Grade 8 General Building and Civil Engineering contractors for all the provinces includes perceptions of the confidence in business conditions and insufficient demand for work obtained from the recently introduced cidb SME Business Condition Survey. The cidb Quarterly Monitor must only be seen as a guide to assist in developing targeted intervention strategies. Specifically, the cidb Quarterly Monitor should be seen as a tool for interrogating existing intervention strategies.
2
2. Background and Assumptions The background and assumptions used in developing and in interpreting the cidb Quarterly Monitor are highlighted below:
i) Contracts Awarded: Details of contracts awarded is obtained from the cidb iTender Register
of Projects supported by the Industry Insight Project Database. The Industry Insight Project Database is considered to be about 60% or more accurate (and is constantly being improved). This data has then been scaled up to reflect total construction spend as reflected from Reserve Bank data. (The support of Industry Insight in providing this information is gratefully acknowledged.)
ii) Public vs. Private Sector Demand: The cidb Quarterly Monitor only presents information on public sector contracts for General Building (GB) and Civil Engineering (CE) cidb Class of Works. Most contractors would however target both public and private sector opportunities. Currently, public sector spend accounts for about 25% of total General Building activity and about 80% of Civil Engineering activity, although lower grade contractors, and in particular emerging contractors, would be more dependent of public sector contracts.
iii) Sub-contracting: Much of the work of contractors in Grades 2 to 6 is through obtained sub-contracting to higher level contractors, and not as main contractors. Typically, around 50% of work is sub-contracted to lower Grade or to speciality contractors.
The impact of sub-contracting is illustrated in the adjacent table and following figures, using an assumed distribution of work between the grades. Typically, direct public sector contracts to contractors in Grades 2 to 6 accounts for about 10% of total turnover in General Building and about 20% in Civil Engineering.
Building Civil
0 10 000 20 000 30 000 40 000
7 & 8
5 & 6
2 to 4
Public; Main contractorPrivate; Main contractorPublic & private; Sub-contractor
0 5 000 10 000 15 000 20 000 25 000
7 & 8
5 & 6
2 to 4
Public; Main contractorPrivate; Main contractorPublic & private; Sub-contractor
iv) Supply: Contractor information is obtained from the cidb Register of Contractors, and
considers only:
• contractors registered in Grades 2 to 8; and • General Building (GB) and Civil Engineering (CE) Class of Works. The data is then aggregated into the following categories:
Public25%
Private75%
Sub-contracting50%
Building
Public80%
Private20%
Sub-contracting50%
Civil
Class of Works Public Sector
Main Contracts as % of Total
General Building (GB) 10% Civil Engineering (CE) 20%
Class of Works % Public Sector
Spend General Building (GB) 25% Civil Engineering (CE) 80%
3
• Grades 2 to 4; typically established and developing
contractors that operate at a local level; • Grades 5 and 6; typically contractors in transition
from operating at a local to a regional / provincial level; and
• Grades 7 and 8; typically contractors that operate a regional / provincial level.
Grade 9 contractors are excluded from the analysis as these typically operate at a national / international level.
v) Business Conditions: The cidb Quarterly Monitor includes perceptions of the confidence in business conditions and insufficient demand for work obtained from the recently introduced cidb SME Business Condition Survey. The cidb SME Business Condition Survey is undertaken by the Bureau for Economic Research (BER) for the cidb, and measures business conditions at a provincial level and in various contractor grades. The full results of the survey are available on the cidb web.
The Confidence Index represents the percentage of respondents rating the business conditions as satisfactory, while the index for demand for work is obtained by formula (0,67 * seriously + 0,33 * slightly) scaled up to 100 to give a % index.
vi) Contractor Development: This cidb Quarterly Monitor includes information on new
upgrades per contractor grade and new registrations during the preceding 12 months. The method of evaluating upgrades in the cidb Quarterly Monitor has been changed from previous editions of the cidb Quarterly Monitor. Previously, only upgrades were considered for “compliant” applications (i.e. where the full financial and track record information has been provided), and new business enterprises (i.e. who do not have a previous track record at time of registration) were also excludes. The present method excludes non-compliant applications, but includes new entrants.
Grade Characteristics 7 & 8 provincial / regional 5 & 6 local / regional 2 to 4 local
4
3. South Africa Demand: The value and distribution of public sector contracts awarded in South Africa in Grades 2 to 8 is shown in the adjacent table and figures. The distribution in the public sector contracts awarded between the grades clearly reflects the infrastructure requirements of South Africa, but it is noticeable that from the available data for the four quarters under review that: • in General Building, the distribution of public sector contracts awarded in the Free State is
skewed towards Grades 7 and 8 as compared to other provinces; • in Civil Engineering, the distribution of public sector contracts awarded in Gauteng and the
Northern Cape is skewed towards Grades 7 and 8 as compared to other provinces.
5
GradeValue pa (Rm;
Corrected) % Distribution
7 & 8 14 406 66%5 & 6 4 804 22%2 to 4 2 594 12%Total 21 804 100%
7 & 8 39 170 59%5 & 6 11 148 34%2 to 4 4 121 6%Total 54 438 100%
Civil
Building
Demand; Public Sector Awards (Corrected)
0% 20% 40% 60% 80%
7 & 8
5 & 6
2 to 4BuildingCivil
Civil
Civil
Civil
Grades 7 & 8Building
Grades 5 & 6Building
Grades 2 to 4Building
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
10%
20%
30%
40%
50%
EC FS GT KZN LP MP NW NC WC
0%
10%
20%
30%
40%
50%
EC FS GT KZN LP MP NW NC WC
0%
5%
10%
15%
20%
25%
EC FS GT KZN LP MP NW NC WC
0%
5%
10%
15%
20%
25%
EC FS GT KZN LP MP NW NC WC
6
Maintenance: The value and distribution of public sector maintenance contracts (including refurbishment, renovations, etc.) awarded in South Africa in Grades 2 to 8 is shown in the adjacent table and figures. Overall, about 27% of public sector building contracts and around 25% of civil contracts are for maintenance – which is somewhat encouraging given the state of infrastructure in South Africa. However, the breakdown of maintenance contracts across the provinces is variable, with Free State, Limpopo, and Mpumalanga allocating much lower proportions to maintenance – in particular within Grades 2 to 6 in General Building.
7
Grade Value pa (Rm; Corrected)
% of Total in Grade
7 & 8 3 249 15%5 & 6 1 561 7%2 to 4 1 137 5%Total 5 947 27%
7 & 8 11 110 20%5 & 6 1 933 4%2 to 4 646 1%Total 13 688 25%
Maintenance; Public Sector Awards (%)
Building
Civil
0% 10% 20% 30% 40%
7 & 8
5 & 6
2 to 4Building
Civil
Civil
Civil
CivilGrades 2 to 4
Building
Grades 5 & 6Building
Grades 7 & 8Building
0%
10%
20%
30%
40%
50%
EC FS GT KZN LP MP NW NC WC
0%
10%
20%
30%
40%
50%
EC FS GT KZN LP MP NW NC WC
0%
5%
10%
15%
20%
EC FS GT KZN LP MP NW NC WC
0%
5%
10%
15%
20%
EC FS GT KZN LP MP NW NC WC
0%
2%
4%
6%
8%
10%
EC FS GT KZN LP MP NW NC WC
0%
2%
4%
6%
8%
10%
EC FS GT KZN LP MP NW NC WC
8
Supply; Black Ownership: For South Africa as a whole (and in fact for every province in South Africa other than the Northern Cape), more than 80% of cidb registered Grade 2 to 4 building and civil contractors are black owned (defined as more than 50% ownership control). Furthermore, more than 60% of all Grade 5 and 6 building and civil contractors are black owned, while around 60% of all Grade 7 and 8 building contractors are black owned. While the high proportion of black owned contractors is encouraging, the sustainability and growth of contractors should be the end goal – which is examined later in this cidb Quarterly Monitor.
9
Grade Number of Contractors
Number Black Contractors
% Black Owned
7 & 8 242 167 40% to 80%5 & 6 779 655 >80%2 to 4 4 261 4 001 >80%Total 5 282 4 823 >80%
7 & 8 302 137 40% to 80%5 & 6 982 741 40% to 80%2 to 4 3 033 2 751 >80%Total 4 317 3 629 >80%
Building
Civil
Supply; Black Ownership
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
Civil
Civil
Civil
Grade 7 & 8Building
Grade 2 to 4Building
Grade 4 & 5Building
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
10
Supply; Women Ownership: On average, around 40% of all Grade 2 to 4 contractors are women owned – with the highest ownership in Limpopo (which probably reflects tender preferencing in this province), followed by Mpumalanga. However, women ownership varies significantly from province to province, and across the Grades. From Grades 5 and 6 and above, women ownership is typically less than 30% in the civil sector, when in the building sector it is around 30 to 50%.
11
Grade Number of Contractors
Number of Women
Contractors
% Women Owned
7 & 8 242 64 <30%5 & 6 779 336 30% to 50%2 to 4 4 261 2 122 30% to 50%Total 5 282 2 522 30% to 50%
7 & 8 302 47 <30%5 & 6 982 293 <30%2 to 4 3 033 570 <30%Total 4 317 910 <30%
Supply; Women Ownership
Building
Civil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
Civil
Civil
Civil
BuildingGrades 7 & 8
Grades 5 & 6Building
Grades 2 to 4Building
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
0%
20%
40%
60%
80%
100%
EC FS GT KZN LP MP NW NC WC
12
Business Conditions: The cidb SME Business Confidence Index for the country as a whole and covering public and private sector work is given in the adjacent figures, together with the index of contractors indicating insufficient demand for work being a constraint. The Business Confidence Index represents the percentage of respondents rating the business conditions as satisfactory, while the index for demand for work is obtained by formula (0,67 * seriously + 0,33 * slightly) scaled up to 100 to give a % index. It can be seen that, overall, business confidence in the building sector has continued to drop over the last quarter – suggesting increasing competitiveness between contractors. (Note however that the public sector is not a major player in the residential sector.) Specifically, business confidence of Grades 4 and 7 building contractors has increase in the 4th quarter of 2008, while business confidence of Grades 5 and 6 building contractors has decreased. In the civil sector, busienss confidence has decreased across all grades. Overall, insufficient demand for work has increased in both the building and civil contractors over the past quarter.
13
Civil
Civil
Business ConfidenceBuilding
Insufficient Demand for WorkBuilding
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Grade 4 Grade 5 Grade 6Grade 7 Overall
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Grade 4 Grade 5 Grade 6Grade 7 Overall
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Grade 4 Grade 5 Grade 6Grade 7 Overall
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Grade 4 Grade 5 Grade 6Grade 7 Overall
0
20
40
60
80
100
EC FS GT KZN LP MP NW NC WC0
20
40
60
80
100
EC FS GT KZN LP MP NW NC WC
0
20
40
60
80
100
EC FS GT KZN LP MP NW NC WC0
20
40
60
80
100
EC FS GT KZN LP MP NW NC WC
14
Contractor Development: Details of the upgrading of contractors in the building and civil sectors within the past four quarters is shown in the adjacent figure. On average, around 6% of Grade 2 to 4 contractors are upgrading per year, around 7% within Grades 5 and 6, and around 3% in Grades 7 and 8.
15
Grade (from)Number of Upgrades %
7 & 8 7 3% <5%5 & 6 66 8% 5% to 10%2 to 4 238 6% 5% to 10%Total 311
7 & 8 8 3% <5%5 & 6 63 6% 5% to 10%2 to 4 206 7% 5% to 10%Total 277
Contractor Upgrades %
Building
Civil
0% 5% 10% 15%
7 & 8
5 & 6
2 to 4
BuildingCivil
Civil
Civil
CivilGrades 2 to 4
Building
Grades 5 & 6Building
Grades 7 & 8Building
0%
5%
10%
15%
EC FS GT KZN LP MP NW NC WC
0%
5%
10%
15%
EC FS GT KZN LP MP NW NC WC
0%
5%
10%
15%
20%
EC FS GT KZN LP MP NW NC WC
0%
5%
10%
15%
20%
EC FS GT KZN LP MP NW NC WC
0%
5%
10%
15%
EC FS GT KZN LP MP NW NC WC
0%
5%
10%
15%
EC FS GT KZN LP MP NW NC WC
16
Contractor Development (continued): An analysis of upgrades is given in the adjacent table, from which it can be seen that, say, five General Building contractors have upgrade from within Grades 2 to 4 to within Grades 7 and 8 within the last four quarters! An analysis of these upgrades is given below:
From Grade To Grade Reason for Upgrade
3 7 Increase in reportable track record (largest contract value undertaken) and in employable capital
4 7 Increase in reportable track record 4 7 Increase in reportable track record 4 7 Increase in reportable employable capital 4 7 Increase in reportable employable capital / NAV
In all but one of the above cases, the growth in contractor upgrading has taken place over a period of about two years. Also included in the adjacent table is a comparison between the number of upgrades and the number of new registrations over the past four quarters. On interest is that the number of new entrants within Grades 2 to 4 over the past few quarters far exceeds the number of upgrades – suggesting an unsustainable situation. The number of new registrations per quarter in Grades 2 to 4 is shown in the adjacent figure, which shows a constant flow of around 150 to 250 new registrations per quarter in the building and civil sectors.
17
From/To 2 to 4 5 & 6 7 & 8 9
7 & 8 5 25 & 6 30 36 02 to 4 158 75 5 0
7 & 8 6 25 & 6 33 28 22 to 4 122 81 3 0
Civil
Building
Contractor Upgrades
2 to 4 5 & 6 7 & 8
Upgrades (to) 158 105 46New Reg. 646 96 19
Upgrades (to) 122 114 37New Reg. 860 117 19
Upgrades & New Registrations
Building
Civil
Quarter 2 to 4 5 & 6 7 & 8
200802 143 21 5200803 150 22 6200804 198 32 6200801 155 21 2
200802 197 31 7200803 214 31 2200804 242 25 4200801 207 30 6
Building
Civil
Number New Registrations200805
050
100150200250300
200801 200802 200803 200804
Building; 2 to 4Civil; 2 to 4
18
4. Eastern Cape
GradeValue pa (Rm;
Corrected) % DistributionDistribution
15% +/- Average
7 & 8 1 445 51% <5 & 6 1 004 36% >2 to 4 372 13% =Total 2 820 100%
7 & 8 8 416 76% =5 & 6 1 807 16% <2 to 4 907 8% =Total 11 130 100%
Grade Value pa (Rm; Corrected)
% of Total in Grade
Distribution 15% +/-
Average
7 & 8 411 15% =5 & 6 452 16% >2 to 4 177 6% >Total 1 040 37% >
7 & 8 3 452 31% >5 & 6 126 1% <2 to 4 108 1% <Total 3 685 33% >
Grade Number of Contractors
Number Black Contractors
% Black Owned
7 & 8 21 12 40% to 80%5 & 6 63 40 40% to 80%2 to 4 414 372 >80%Total 498 424 >80%
7 & 8 24 9 <40%5 & 6 103 73 40% to 80%2 to 4 345 307 >80%Total 472 389 >80%
Grade Number of Contractors
Number of Women
Contractors
% Women Owned
7 & 8 21 0 <30%5 & 6 63 11 <30%2 to 4 414 145 30% to 50%Total 498 156 30% to 50%
7 & 8 24 1 <30%5 & 6 103 23 <30%2 to 4 345 127 30% to 50%Total 472 151 30% to 50%
Supply; Black Ownership
Supply; Women Ownership
Building
Civil
Civil
Maintenance; Public Sector Awards (%)
Building
Civil
Demand; Public Sector Awards (Corrected)
Building
Civil
Building
0% 20% 40% 60% 80%
7 & 8
5 & 6
2 to 4
Building
Civil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
Building
Civil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
Building
Civil
0% 10% 20% 30% 40%
7 & 8
5 & 6
2 to 4BuildingCivil
19
Civil
Grade (from)Number of Upgrades %
7 & 8 3 14% >10%5 & 6 8 13% >10%2 to 4 19 5% <5%Total 30
7 & 8 0 0% <5%5 & 6 7 7% 5% to 10%2 to 4 33 10% 5% to 10%Total 40
Building
Contractor Upgrades %
Building
Civil
Insufficient Demand for Work per Grade / Business Confidence Index (BCI)
5002000500
0% 5% 10% 15% 20%
7 & 8
5 & 6
2 to 4
BuildingCivil
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
100
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
From/To 2 to 4 5 & 6 7 & 8 9
7 & 8 3 05 & 6 2 6 02 to 4 12 7 0 0
7 & 8 0 05 & 6 2 4 12 to 4 21 12 0 0
Contractor Upgrades
Building
Civil
2 to 4 5 & 6 7 & 8
Upgrades (to) 12 9 9New Reg. 84 9 3
Upgrades (to) 21 14 4New Reg. 105 8 0
Building
Civil
Upgrades & New Registrations
Quarter 2 to 4 5 & 6 7 & 8
200801 17 2 0200802 18 3 2200803 28 1 1200804 21 3 0
200801 28 2 0200802 24 1 0200803 31 4 0200804 22 1 0
Civil
Number New Registrations
Building
0
10
20
30
40
200801 200802 200803 200804
Building; 2 to 4
Civil; 2 to 4
20
5. Free State
GradeValue pa (Rm;
Corrected) % DistributionDistribution
15% +/- Average
7 & 8 1 496 89% >5 & 6 134 8% <2 to 4 52 3% <Total 1 682 100%
7 & 8 1 063 59% <5 & 6 613 34% >2 to 4 116 6% =Total 1 792 100%
Grade Value pa (Rm; Corrected)
% of Total in Grade
Distribution 15% +/-
Average
7 & 8 265 16% =5 & 6 67 4% <2 to 4 30 2% <Total 362 21% <
7 & 8 538 16% >5 & 6 30 4% <2 to 4 10 2% <Total 578 21% >
Grade Number of Contractors
Number Black Contractors
% Black Owned
7 & 8 20 14 40% to 80%5 & 6 41 32 40% to 80%2 to 4 257 242 >80%Total 318 288 >80%
7 & 8 29 14 40% to 80%5 & 6 52 32 >80%2 to 4 151 242 >80%Total 232 288 >80%
Grade Number of Contractors
Number of Women
Contractors
% Women Owned
7 & 8 20 6 30% to 50%5 & 6 41 12 <30%2 to 4 257 122 30% to 50%Total 318 140 30% to 50%
7 & 8 29 8 <30%5 & 6 52 13 <30%2 to 4 151 53 30% to 50%Total 232 74 30% to 50%
Supply; Women Ownership
Building
Civil
Building
Civil
Building
Civil
Demand; Public Sector Awards (Corrected)
Supply; Black Ownership
Building
Civil
Maintenance; Public Sector Awards (%)
5002000500
0% 20% 40% 60% 80%
7 & 8
5 & 6
2 to 4BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
Building
Civil
0% 10% 20% 30% 40%
7 & 8
5 & 6
2 to 4BuildingCivil
21
Civil
Grade (from)Number of Upgrades %
7 & 8 0 0% <5%5 & 6 5 12% >10%2 to 4 15 6% 5% to 10%Total 20
7 & 8 0 0% <5%5 & 6 8 15% >10%2 to 4 15 10% 5% to 10%Total 23
Building
Civil
Contractor Upgrades %
Insufficient Demand for Work per Grade / Business Confidence Index (BCI)Building
0% 5% 10% 15% 20%
7 & 8
5 & 6
2 to 4
BuildingCivil
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
From/To 2 to 4 5 & 6 7 & 8 9
7 & 8 1 15 & 6 6 8 02 to 4 23 12 2 0
7 & 8 2 05 & 6 6 12 02 to 4 15 17 2 0
Civil
Building
Contractor Upgrades
2 to 4 5 & 6 7 & 8
Upgrades (to) 23 18 11New Reg. 27 6 0
Upgrades (to) 15 23 16New Reg. 49 2 0
Building
Civil
Upgrades & New Registrations
Quarter 2 to 4 5 & 6 7 & 8
200801 7 1 0200802 9 0 0200803 6 3 0200804 5 2 0
200801 16 1 0200802 12 0 0200803 16 1 0200804 5 0 0
Building
Civil
Number New Registrations
0
10
20
200801 200802 200803 200804
Building; 2 to 4Civil; 2 to 4
Insufficient Data
22
6. Gauteng
GradeValue pa (Rm;
Corrected) % DistributionDistribution
15% +/- Average
7 & 8 1 836 68% =5 & 6 686 25% >2 to 4 179 7% <Total 2 700 100%
7 & 8 12 306 85% >5 & 6 1 740 12% <2 to 4 386 3% <Total 14 432 100%
Grade Value pa (Rm; Corrected)
% of Total in Grade
Distribution 15% +/-
Average
7 & 8 246 9% <5 & 6 347 13% >2 to 4 129 5% =Total 722 27% =
7 & 8 2 479 17% <5 & 6 353 2% <2 to 4 94 1% <Total 2 926 20% <
Grade Number of Contractors
Number Black Contractors
% Black Owned
7 & 8 78 53 40% to 80%5 & 6 196 163 >80%2 to 4 855 763 >80%Total 1 129 979 >80%
7 & 8 122 60 40% to 80%5 & 6 257 183 40% to 80%2 to 4 599 513 >80%Total 978 756 40% to 80%
Grade Number of Contractors
Number of Women
Contractors
% Women Owned
7 & 8 78 22 <30%5 & 6 196 75 30% to 50%2 to 4 855 408 30% to 50%Total 1 129 505 30% to 50%
7 & 8 122 19 <30%5 & 6 257 68 <30%2 to 4 599 270 30% to 50%Total 978 357 30% to 50%
Building
Civil
Civil
Maintenance; Public Sector Awards (%)
Supply; Women Ownership
Civil
Supply; Black Ownership
Building
Building
Building
Civil
Demand; Public Sector Awards (Corrected)
0% 20% 40% 60% 80%
7 & 8
5 & 6
2 to 4BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
Building
Civil
0% 10% 20% 30% 40%
7 & 8
5 & 6
2 to 4BuildingCivil
23
Civil
Grade (from)Number of Upgrades %
7 & 8 2 3% <5%5 & 6 14 7% 5% to 10%2 to 4 37 4% <5%Total 53
7 & 8 2 2% <5%5 & 6 18 7% 5% to 10%2 to 4 34 6% 5% to 10%Total 54
Insufficient Demand for Work per Grade / Business Confidence Index (BCI)Building
Civil
Contractor Upgrades %
Building
0% 5% 10% 15% 20%
7 & 8
5 & 6
2 to 4
BuildingCivil
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
From/To 2 to 4 5 & 6 7 & 8 9
7 & 8 1 15 & 6 6 8 02 to 4 23 12 2 0
7 & 8 2 05 & 6 6 12 02 to 4 15 17 2 0
Contractor Upgrades
Civil
Building
2 to 4 5 & 6 7 & 8
Upgrades (to) 23 18 11New Reg. 166 36 6
Upgrades (to) 15 23 16New Reg. 197 42 13
Upgrades & New Registrations
Building
Civil
5002000500
Quarter 2 to 4 5 & 6 7 & 8
200801 30 8 1200802 37 9 1200803 62 13 3200804 37 6 1
200801 51 13 4200802 42 11 2200803 55 8 3200804 49 10 4
Building
Civil
Number New Registrations
010203040506070
200801 200802 200803 200804
Building; 2 to 4Civil; 2 to 4
24
7. KwaZulu Natal
GradeValue pa (Rm;
Corrected) % DistributionDistribution
15% +/- Average
7 & 8 2 873 60% =5 & 6 1 116 23% =2 to 4 806 17% >Total 4 795 100%
7 & 8 3 264 61% <5 & 6 1 602 30% >2 to 4 525 10% >Total 5 392 100%
Grade Value pa (Rm; Corrected)
% of Total in Grade
Distribution 15% +/-
Average
7 & 8 441 9% <5 & 6 382 8% =2 to 4 17 0% <Total 840 18% =
7 & 8 77 1% <5 & 6 48 1% <2 to 4 31 1% <Total 156 3% <
Grade Number of Contractors
Number Black Contractors
% Black Owned
7 & 8 43 28 40% to 80%5 & 6 158 132 >80%2 to 4 1 019 989 >80%Total 1 220 1 149 >80%
7 & 8 41 13 <40%5 & 6 154 114 40% to 80%2 to 4 899 852 >80%Total 1 094 979 >80%
Grade Number of Contractors
Number of Women
Contractors
% Women Owned
7 & 8 43 9 <30%5 & 6 158 68 30% to 50%2 to 4 1 019 454 30% to 50%Total 1 220 531 30% to 50%
7 & 8 41 7 <30%5 & 6 154 41 <30%2 to 4 899 379 30% to 50%Total 1 094 427 30% to 50%
Supply; Black Ownership
Maintenance; Public Sector Awards (%)
Building
Civil
Demand; Public Sector Awards (Corrected)
Building
Civil
Supply; Women Ownership
Civil
Civil
Building
Building
0% 20% 40% 60% 80%
7 & 8
5 & 6
2 to 4BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 10% 20% 30% 40%
7 & 8
5 & 6
2 to 4BuildingCivil
25
Civil
Grade (from)Number of Upgrades %
7 & 8 1 2% <5%5 & 6 11 7% 5% to 10%2 to 4 62 6% 5% to 10%Total 74
7 & 8 4 10% 5% to 10%5 & 6 8 5% 5% to 10%2 to 4 55 6% 5% to 10%Total 67
Civil
Building
Contractor Upgrades %
Insufficient Demand for Work per Grade / Business Confidence Index (BCI)Building
0% 5% 10% 15% 20%
7 & 8
5 & 6
2 to 4
BuildingCivil
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
From/To 2 to 4 5 & 6 7 & 8 9
7 & 8 1 05 & 6 5 6 02 to 4 45 16 1 0
7 & 8 3 15 & 6 5 2 12 to 4 40 15 0 0
Contractor Upgrades
Building
Civil
2 to 4 5 & 6 7 & 8
Upgrades (to) 45 21 8New Reg. 140 13 1
Upgrades (to) 40 20 5New Reg. 187 11 1
Building
Civil
Upgrades & New Registrations
Quarter 2 to 4 5 & 6 7 & 8
200801 37 3 1200802 29 4 0200803 39 1 0200804 35 5 0
200801 39 2 1200802 53 6 0200803 56 1 0200804 39 2 0
Number New Registrations
Building
Civil
0102030405060
200801 200802 200803 200804
Building; 2 to 4
Civil; 2 to 4
26
8. Limpopo
GradeValue pa (Rm;
Corrected) % DistributionDistribution
15% +/- Average
7 & 8 1 615 64% =5 & 6 387 15% <2 to 4 519 21% >Total 2 521 100%
7 & 8 3 042 66% =5 & 6 1 332 29% >2 to 4 247 5% <Total 4 620 100%
Grade Value pa (Rm; Corrected)
% of Total in Grade
Distribution 15% +/-
Average
7 & 8 198 8% <5 & 6 34 1% <2 to 4 58 2% <Total 290 12% <
7 & 8 436 9% <5 & 6 504 11% >2 to 4 22 0% <Total 962 21% <
Grade Number of Contractors
Number Black Contractors
% Black Owned
7 & 8 19 19 >80%5 & 6 134 127 >80%2 to 4 581 575 >80%Total 734 721 >80%
7 & 8 18 12 40% to 80%5 & 6 161 149 >80%2 to 4 346 327 >80%Total 525 488 >80%
Grade Number of Contractors
Number of Women
Contractors
% Women Owned
7 & 8 19 11 >50%5 & 6 134 88 >50%2 to 4 581 418 >50%Total 734 517 >50%
7 & 8 18 5 <30%5 & 6 161 80 30% to 50%2 to 4 346 200 >50%Total 525 285 >50%
Civil
Supply; Black Ownership
Building
Maintenance; Public Sector Awards (%)
Building
Civil
Supply; Women Ownership
Building
Civil
Demand; Public Sector Awards (Corrected)
Building
Civil
0% 20% 40% 60% 80%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 10% 20% 30% 40%
7 & 8
5 & 6
2 to 4BuildingCivil
27
Civil
Grade (from)Number of Upgrades %
7 & 8 0 0% <5%5 & 6 10 7% 5% to 10%2 to 4 35 6% 5% to 10%Total 45
7 & 8 0 0% <5%5 & 6 9 6% 5% to 10%2 to 4 20 6% 5% to 10%Total 29
Building
Contractor Upgrades %
Building
Civil
Insufficient Demand for Work per Grade / Business Confidence Index (BCI)
0% 5% 10% 15% 20%
7 & 8
5 & 6
2 to 4
BuildingCivil
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
From/To 2 to 4 5 & 6 7 & 8 9
7 & 8 0 05 & 6 7 3 02 to 4 21 14 0 0
7 & 8 0 05 & 6 7 2 02 to 4 7 13 0 0
Civil
Contractor Upgrades
Building
2 to 4 5 & 6 7 & 8
Upgrades (to) 21 21 3New Reg. 58 9 0
Upgrades (to) 7 20 2New Reg. 115 14 1
Upgrades & New Registrations
Building
Civil
Quarter 2 to 4 5 & 6 7 & 8
200801 13 1 0200802 14 1 0200803 17 4 0200804 14 3 0
200801 19 4 0200802 39 3 0200803 39 2 0200804 18 5 1
Building
Civil
Number New Registrations
0
10
20
30
40
50
200801 200802 200803 200804
Building; 2 to 4
Civil; 2 to 4
Insufficient Data Insufficient Data
28
9. Mpumalanga
GradeValue pa (Rm;
Corrected) % DistributionDistribution
15% +/- Average
7 & 8 2 058 74% =5 & 6 642 23% =2 to 4 88 3% <Total 2 788 100%
7 & 8 2 182 54% <5 & 6 1 139 28% >2 to 4 702 17% >Total 4 023 100%
Grade Value pa (Rm; Corrected)
% of Total in Grade
Distribution 15% +/-
Average
7 & 8 564 20% >5 & 6 53 2% <2 to 4 14 1% <Total 631 23% <
7 & 8 1 210 30% >5 & 6 66 2% <2 to 4 128 3% >Total 1 404 35% >
Grade Number of Contractors
Number Black Contractors
% Black Owned
7 & 8 18 17 >80%5 & 6 72 69 >80%2 to 4 453 443 >80%Total 543 529 >80%
7 & 8 13 10 40% to 80%5 & 6 102 89 >80%2 to 4 313 305 >80%Total 428 404 >80%
Grade Number of Contractors
Number of Women
Contractors
% Women Owned
7 & 8 18 9 30% to 50%5 & 6 72 42 >50%2 to 4 453 273 >50%Total 543 324 >50%
7 & 8 13 4 30% to 50%5 & 6 102 39 30% to 50%2 to 4 313 179 >50%Total 428 222 >50%
Demand; Public Sector Awards (Corrected)
Building
Civil
Building
Civil
Building
Civil
Supply; Black Ownership
Building
Civil
Maintenance; Public Sector Awards (%)
Supply; Women Ownership
0% 20% 40% 60% 80%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 10% 20% 30% 40%
7 & 8
5 & 6
2 to 4BuildingCivil
29
Civil
Grade (from)Number of Upgrades %
7 & 8 0 0% <5%5 & 6 10 14% >10%2 to 4 25 6% 5% to 10%Total 35
7 & 8 0 0% <5%5 & 6 3 3% <5%2 to 4 22 7% 5% to 10%Total 25
Civil
Contractor Upgrades %
Building
Building
Insufficient Demand for Work per Grade / Business Confidence Index (BCI)
0% 5% 10% 15% 20%
7 & 8
5 & 6
2 to 4
BuildingCivil
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
From/To 2 to 4 5 & 6 7 & 8 9
7 & 8 0 05 & 6 5 5 02 to 4 12 12 1 0
7 & 8 0 05 & 6 2 1 02 to 4 12 10 0 0
Civil
Building
Contractor Upgrades
2 to 4 5 & 6 7 & 8
Upgrades (to) 12 17 6New Reg. 62 9 2
Upgrades (to) 12 12 1New Reg. 72 16 2
Upgrades & New Registrations
Building
Civil
Quarter 2 to 4 5 & 6 7 & 8
200801 15 3 1200802 12 2 0200803 19 4 1200804 16 0 0
200801 22 3 0200802 14 5 0200803 17 5 1200804 19 3 1
Building
Civil
Number New Registrations
0
10
20
30
200801 200802 200803 200804
Building; 2 to 4Civil; 2 to 4
Insufficient Data Insufficient Data
30
10. North West
GradeValue pa (Rm;
Corrected) % DistributionDistribution
15% +/- Average
7 & 8 378 69% =5 & 6 137 18% =2 to 4 70 14% =Total 586 100%
7 & 8 1 277 67% =5 & 6 511 27% >2 to 4 119 6% <Total 1 907 100%
Grade Value pa (Rm; Corrected)
% of Total in Grade
Distribution 15% +/-
Average
7 & 8 207 35% >5 & 6 51 9% >2 to 4 20 3% <Total 278 47% >
7 & 8 0 0% <5 & 6 174 9% >2 to 4 11 1% <Total 186 10% <
Grade Number of Contractors
Number Black Contractors
% Black Owned
7 & 8 11 7 40% to 80%5 & 6 38 35 >80%2 to 4 239 231 >80%Total 288 273 >80%
7 & 8 7 5 40% to 80%5 & 6 50 33 40% to 80%2 to 4 120 113 >80%Total 177 151 >80%
Grade Number of Contractors
Number of Women
Contractors
% Women Owned
7 & 8 11 1 <30%5 & 6 38 14 30% to 50%2 to 4 239 107 30% to 50%Total 288 122 30% to 50%
7 & 8 7 1 <30%5 & 6 50 6 <30%2 to 4 120 55 30% to 50%Total 177 62 30% to 50%
Demand; Public Sector Awards (Corrected)
Building
Civil
Supply; Women Ownership
Building
Civil
Maintenance; Public Sector Awards (%)
Building
Civil
Supply; Black Ownership
Building
Civil
0% 20% 40% 60% 80%
7 & 8
5 & 6
2 to 4BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 10% 20% 30% 40%
7 & 8
5 & 6
2 to 4BuildingCivil
31
Civil
Grade (from)Number of Upgrades %
7 & 8 0 0% <5%5 & 6 3 8% 5% to 10%2 to 4 18 8% 5% to 10%Total 21
7 & 8 0 0% <5%5 & 6 2 4% <5%2 to 4 2 8% 5% to 10%Total 4
Insufficient Demand for Work per Grade / Business Confidence Index (BCI)Building
Building
Civil
Contractor Upgrades %
0% 5% 10% 15% 20%
7 & 8
5 & 6
2 to 4
BuildingCivil
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
From/To 2 to 4 5 & 6 7 & 8 9
7 & 8 0 05 & 6 2 1 02 to 4 13 4 1 0
7 & 8 0 05 & 6 1 1 02 to 4 1 1 0 0
Building
Civil
Contractor Upgrades
2 to 4 5 & 6 7 & 8
Upgrades (to) 13 6 2New Reg. 25 6 2
Upgrades (to) 1 2 1New Reg. 48 13 0
Upgrades & New Registrations
Building
Civil
Quarter 2 to 4 5 & 6 7 & 8
200801 8 2 0200802 7 1 1200803 4 3 0200804 6 0 1
200801 6 4 0200802 11 3 0200803 18 4 0200804 13 2 0
Building
Civil
Number New Registrations
0
10
20
200801 200802 200803 200804
Building; 2 to 4Civil; 2 to 4
32
10. Northern Cape
GradeValue pa (Rm;
Corrected) % DistributionDistribution
15% +/- Average
7 & 8 721 69% =5 & 6 185 18% <2 to 4 144 14% >Total 1 050 100%
7 & 8 2 162 86% >5 & 6 244 10% <2 to 4 113 4% <Total 2 519 100%
Grade Value pa (Rm; Corrected)
% of Total in Grade
Distribution 15% +/-
Average
7 & 8 83 8% <5 & 6 97 9% >2 to 4 48 5% =Total 228 22% <
7 & 8 1 100 44% >5 & 6 0 0% <2 to 4 4 0% <Total 1 104 44% >
Grade Number of Contractors
Number Black Contractors
% Black Owned
7 & 8 3 0 <40%5 & 6 13 10 40% to 80%2 to 4 75 64 >80%Total 91 74 >80%
7 & 8 7 0 <40%5 & 6 14 7 40% to 80%2 to 4 40 25 40% to 80%Total 61 32 40% to 80%
Grade Number of Contractors
Number of Women
Contractors
% Women Owned
7 & 8 3 1 30% to 50%5 & 6 13 2 <30%2 to 4 75 20 <30%Total 91 23 <30%
7 & 8 7 1 <30%5 & 6 14 5 30% to 50%2 to 4 40 11 <30%Total 61 17 <30%
Demand; Public Sector Awards (Corrected)
Building
Civil
Maintenance; Public Sector Awards (%)
Supply; Black Ownership
Building
Civil
Building
Civil
Supply; Women Ownership
Building
Civil
0% 20% 40% 60% 80%
7 & 8
5 & 6
2 to 4BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 10% 20% 30% 40%
7 & 8
5 & 6
2 to 4BuildingCivil
33
Civil
Grade (from)Number of Upgrades %
7 & 8 0 0% <5%5 & 6 1 8% 5% to 10%2 to 4 4 5% 5% to 10%Total 5
7 & 8 0 0% <5%5 & 6 2 14% >10%2 to 4 2 5% 5% to 10%Total 4
Insufficient Demand for Work per Grade / Business Confidence Index (BCI)Building
Contractor Upgrades %
Building
Civil
0% 5% 10% 15% 20%
7 & 8
5 & 6
2 to 4
BuildingCivil
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
From/To 2 to 4 5 & 6 7 & 8 9
7 & 8 0 05 & 6 1 0 02 to 4 3 1 0 0
7 & 8 0 05 & 6 1 1 02 to 4 1 1 0 0
Civil
Building
Contractor Upgrades
2 to 4 5 & 6 7 & 8
Upgrades (to) 3 2 0New Reg. 13 1 0
Upgrades (to) 1 2 1New Reg. 39 5 0
Building
Civil
Upgrades & New Registrations
Quarter 2 to 4 5 & 6 7 & 8
200801 2 0 0200802 7 1 0200803 3 0 0200804 1 0 0
200801 3 0 0200802 5 0 0200803 3 0 0200804 28 5 0
Number New Registrations
Building
Civil
0
10
20
30
200801 200802 200803 200804
Building; 2 to 4Civil; 2 to 4
Insufficient Data Insufficient Data
34
11. Western Cape
GradeValue pa (Rm;
Corrected) % DistributionDistribution
15% +/- Average
7 & 8 1 985 69% =5 & 6 512 18% <2 to 4 364 13% =Total 2 861 100%
7 & 8 5 458 63% =5 & 6 2 160 25% >2 to 4 1 005 12% >Total 8 622 100%
Grade Value pa (Rm; Corrected)
% of Total in Grade
Distribution 15% +/-
Average
7 & 8 833 29% >5 & 6 79 3% <2 to 4 228 8% >Total 1 140 40% >
7 & 8 1 817 21% =5 & 6 631 7% >2 to 4 238 3% >Total 2 686 31% >
Grade Number of Contractors
Number Black Contractors
% Black Owned
7 & 8 29 17 40% to 80%5 & 6 64 47 40% to 80%2 to 4 368 322 >80%Total 461 386 >80%
7 & 8 41 15 <40%5 & 6 89 49 40% to 80%2 to 4 220 172 40% to 80%Total 350 236 40% to 80%
Grade Number of Contractors
Number of Women
Contractors
% Women Owned
7 & 8 29 5 <30%5 & 6 64 24 30% to 50%2 to 4 368 175 30% to 50%Total 461 204 30% to 50%
7 & 8 41 1 <30%5 & 6 89 18 <30%2 to 4 220 79 30% to 50%Total 350 98 <30%
Civil
Supply; Women Ownership
Supply; Black Ownership
Building
Civil
Demand; Public Sector Awards (Corrected)
Building
Civil
Building
Maintenance; Public Sector Awards (%)
Building
Civil
0% 20% 40% 60% 80%
7 & 8
5 & 6
2 to 4BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 20% 40% 60% 80% 100%
7 & 8
5 & 6
2 to 4
BuildingCivil
0% 10% 20% 30% 40%
7 & 8
5 & 6
2 to 4Building
Civil
35
Civil
Grade (from)Number of Upgrades %
7 & 8 1 3% <5%5 & 6 4 6% 5% to 10%2 to 4 23 6% 5% to 10%Total 28
7 & 8 2 5% <5%5 & 6 6 7% 5% to 10%2 to 4 15 7% 5% to 10%Total 23
Insufficient Demand for Work per Grade / Business Confidence Index (BCI)Building
Contractor Upgrades %
Building
Civil
0% 5% 10% 15% 20%
7 & 8
5 & 6
2 to 4
BuildingCivil
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
0
20
40
60
80
100
08Q01 08Q02 08Q03 08Q04
Series2 Series3
From/To 2 to 4 5 & 6 7 & 8 9
7 & 8 0 15 & 6 0 4 02 to 4 20 3 0 0
7 & 8 1 15 & 6 5 1 02 to 4 10 5 0 0
Civil
Contractor Upgrades
Building
2 to 4 5 & 6 7 & 8
Upgrades (to) 20 3 4New Reg. 71 7 5
Upgrades (to) 10 10 2New Reg. 48 6 2
Upgrades & New Registrations
Building
Civil
Quarter 2 to 4 5 & 6 7 & 8
200801 14 1 2200802 17 1 2200803 20 3 1200804 20 2 0
200801 13 2 2200802 14 2 0200803 7 0 0200804 14 2 0
Number New Registrations
Building
Civil
0
10
20
30
200801 200802 200803 200804
Building; 2 to 4Civil; 2 to 4
PO Box 2107, Brooklyn Square, 0075 Pretoria, South Africa
Registers Helpline: 0860 103 353
website: www.cidb.org.zaE-mail: [email protected]: +27 (0)12 482 7200Fax: +27 (0)12 343 7153
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