Cost of building in SA is now 11% higher than last year

The cost of building in South Africa is 11% higher than it was last year as local contractors pass the burden of inflation to their clients. According to Craig Lemboe, senior economist at the Bureau for Economic Research (BER), the Building Confidence Index (BCI) for the third quarter of 2022 is now 11% higher year-on-year that it was in the second quarter - thus indicating that the gap between input costs and the tender price is becoming narrower. This means contractors are not carrying the burden of input costs like before and are now leaving clients to foot the higher bill.