Undercharging for contracts was an error, says Basil Read chief
The construction industry settled for low margins in order to maintain its capacity
SA’s construction industry erred by securing work at low margins to maintain capacity when infrastructure spend dried up, says Basil Read CEO Khathutshelo Mapasa. Basil Read went into business rescue in June 2018. At the time the company said its construction business, which consists of roads, buildings and civils, had experienced cash-flow problems because of “mismatched cash inflows and cash outflows”. The company attributed the cash-flow difficulties to, among others, claims taking longer to resolve.
PODCAST: How the construction industry contributed to its own demise.