How construction companies struggle to get paid
As if the crash in building work were not enough, construction companies battle to get paid for completed work
As if the crash in building work were not enough, construction companies battle to get paid for completed work."I suspect that many clients think that because Basil Read is in business rescue [it has] no capacity to fight for payments," says Basil Read CEO Khathutshelo Mapasa."We have had to go through this very frustrating process. These are claims that have been signed off, invoices have been submitted, but they just do not pay," he says.Perhaps clients are simply betting on companies going belly-up.After all, according to Master Builders SA, between 2014 and 2018, 506 construction firms went into liquidation.And based on Stats SA data, the body says that for 2019 it is estimated that 98 construction companies will hit the wall.Basil Read, which reported an operating loss of R733.8m in the year ended December 31 2017, has been in business rescue since June 2018.Loss-making contracts got the better of the once prestigious construction firm.Mapasa says that in the past decade, clie...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.