Construction contractors and healthcare delivery in South Africa: challenges and interventions

Abstract

This paper compares the demand side requirements of the National Department of Health with the supply-side capabilities of the construction industry as determined by the Register of Contractors. It finds that only a small percentage of registered contractors may tender for the Department’s projects, and suggests that the target set by Government in terms of its hospital revitalisation project will not be met unless dramatic interventions are introduced. The paper recommends that new interventions are required, and that these focus around procurement strategies that advance integrated supply chains, long-term relationships throughout the construction and post-construction period, innovation, and new technologies, if Government wants to achieve the strategic objectives around socio-economic infrastructure delivery and higher rates of economic growth.