Unprepared industry meet pandemic: COVID-19 and the South Africa construction industry

Abstract

PurposeThis paper aims to determine the responses of construction organisations to the Coronavirus (COVID-19) pandemic and its associated lockdown and the impact on the South African construction industry (SACI).Design/methodology/approachThe study adopted a quantitative survey with responses sought from 825 contracting organisation’s representatives drawn from the database of the construction industry development board. The data gathered were analysed using percentage, mean item score and one-sample t-test. The reliability of the research instrument was also tested using the Cronbach alpha test.FindingsFindings revealed that most construction organisations implemented a complete travel ban and halting all business operations on sites and offices in a bid to curb the spread of the virus. Furthermore, whilst most construction organisations envisage significant disruption in their project delivery, the problem of job losses was regarded as a short, medium and long-term impact of the pandemic. Loss of revenue, a decline in the economy and business interruption are also some of the potential impacts of the COVID-19 pandemic on the SACI.Originality/valueThe study’s findings give practical insights on the potential impact of the pandemic on the construction industry and the possible approach needed to help cushion the effect on the industry.