Economy

SA faces growing costs due to construction disputes

Date: Apr 9, 2025

Sihle Zikalala, the Deputy Minister for the Department of Public Works and Infrastructure, has revealed that South Africa (SA) is spending considerable amounts of money due to disputes within the construction sector.

Speaking on the second and final day of the 2025 International Construction Law Association Conference in Cape Town, Zikalala shed light on the different types of conflicts that are driving up costs in the industry.

Zikalala pointed out that construction disputes often involve issues like breach of contracts, payment delays, project setbacks, and changes to the scope of work. He explained that the costs of these disputes can vary depending on the nature of the project and the particular problem encountered.

"It’s a substantial amount, both in terms of direct costs and the time lost during disputes," said Zikalala. "When these matters end up in court, you’re looking at legal fees, which add up quickly. On top of that, the delays caused by the disputes only increase the overall cost of the project."

His comments come at a time when the SA government is actively seeking ways to address these issues in the construction sector. Zikalala’s remarks highlight the importance of finding quicker and more cost-effective ways to resolve conflicts, especially as infrastructure development continues to be a priority for the country.

--ChannelAfrica--

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