Privately owned construction company GVK-Siya Zama accomplished several significant milestones this year that strengthened its position in the construction industry.

One of its primary achievements was the completion of two mammoth projects, each valued at about R1-billion.

The first involved the redevelopment of the historic Cape Station in collaboration with Eris Property Group, while the second was undertaken for a global digital giant, demonstrating the company’s capability to deliver high-profile, complex projects.

Looking at standout projects and partnerships, GVK-Siya Zama says the successful delivery of the R1-billion projects highlighted the company’s growth from its 1960s origins as a painting and restoration contractor to its current status as a construction company capable of managing large-scale projects.

Along with boosting the skills profile of its employees, the company’s leadership team attributes this transformation to continued dedication to building partnerships with clients, consultants, and importantly, subcontractors and small- to medium-sized enterprises.

The company says its emphasis on collaboration, mutual benefit, and a shared commitment to stakeholders is a cornerstone of its business philosophy.

The company notes that the construction industry faced considerable hurdles throughout the year, whereby GVK-Siya Zama encountered persistent low mark-ups, fierce competition and slow- or non-paying clients.

The company says these factors hindered efficient trading and challenged financial prudence.

Additionally, it notes that a “mass exodus of skilled labour from the construction industry” had been an impactful phenomenon this year.

“This ‘brain drain’, driven mainly by more lucrative opportunities abroad, particularly in the Middle East, presented significant challenges, given the mark-ups and general trading conditions in South Africa.

“Collectively, these challenges have led to devastating consequences in the industry as a whole,” says GVK-Siya Zama.

“In light of these challenges, there is a pressing appeal to Public Works and Infrastructure Minister Dean Macpherson. The construction industry urgently requires support. We call on the public sector to play a more proactive and responsible role,” says GVK-Siya Zama CEO Eben Meyburgh.

GVK-Siya Zama argues that the industry needs a consistent pipeline of work, fair processes for tender adjudication, equitable treatment and evaluation of contract claims by skilled, impartial consultants and timely payments.

“Ineffective consultants and a lack of proper adjudication of claims leave contractors, subcontractors, small businesses, and local workers at risk. Delays in payment not only impact individual projects but also disrupt the entire construction value chain,” says Meyburgh.

The local construction sector is deeply integrated into the socioeconomic framework of the country and is dedicated to project execution, skills development, black economic empowerment and community upliftment.

However, the company says pushing the local industry to the brink may pave the way for foreign companies, which it says often avoid compliance with empowerment standards and receive concessions to import materials or substandard components such as structural steel and cement.

It posits that this approach threatens to weaken the local value chain, leading to a lack of genuine investment in the country and profits siphoning out of the economy.

“Despite these dire circumstances, it is encouraging to see that proactive measures are being taken against the construction mafia. There is hope that the government will remain committed to supporting the industry, and we are hoping for a turnaround for every construction business and the thousands of people they employ,” says Meyburgh.

Looking to 2025, GVK-Siya Zama says several exciting developments are on the horizon for the company. One of the largest projects currently under way is the Soshanguve Mall north of Pretoria, which will likely exceed the scale of the Cape Station project.

Additionally, work will continue on infrastructure and healthcare initiatives in the rural Eastern Cape, which will run over several years due to their extensive size and scope.

The company is also involved in two prominent projects at Cape Town’s V&A Waterfront, comprising a residential development and a significant addition to the hospitality offerings in the area.

Regarding trends for 2025, GVK-Siya Zama says it remains optimistic about the construction industry’s potential recovery, noting an increased appetite and willingness to invest. While government initiatives to stimulate growth are a positive sign, the company says they are often hampered by budgetary constraints that may take time to overcome.

Nonetheless, the adoption of new contracting methods, such as public-private partnerships and joint ventures, is becoming a promising way to accelerate project delivery.

Changes in tender documents and requirements also suggest a shift that could greatly enhance the efficiency of future projects, the company states.