Upswing seen for building, construction.

Neil Muller Construction has contracted four significant projects in Cape Town with a total value of R38.6 million, which will run through to the middle of the year.

Each of the four projects is repeat business that was awarded by previous clients. The first project began construction on January 24, and consists of the extension and alteration to the distribution warehouse of Fruitair, an exporter of perishable and non-perishable food products.

The warehouse is situated in Freedom Way in Montague Gardens, and the R6.2 million project will be completed in June this year.

The company was also awarded a R15.7m contract for Old Mutual Properties for the extension of the distribution warehouse of TFD Network Africa, in Phumelela Park, Montague Gardens.

TFD Network Africa is a logistics distribution company for food products. Construction will also run until June.

Neil Muller Construction was also contracted for the construction of phase four of the Store-All mini-storage facility in Pickwick Road, Woodstock.

The six-month contract will also begin this month Following the completion of phase one of the Nestle production facility in Stikland, Bellville, last year, NMC has been awarded the R12.9m contract by Lyons Properties for phase two.

Construction of the of the Paarl Mall regional shopping centre will begin in August

A German company is planning to invest in a condom factory in Coega, as part of the R43bn arms offset deal.

Decision not to proceed with project could seriously hamper development.

The Coega Development Corporation has appointed almost 100 contractors to work on various infrastructure projects within the Coega Industrial Development Zone with 1 500 people employed on various construction sites in the zone.

Port Elizabeth - The Coega Development Corporation (CDC) is expected to sign an agreement with Pechiney, the French resources giant, before the end of November.

Building activity in the residential sector had remained buoyant, but the nonresidential sector was struggling.

 Overcapacity in the building industry and a weak rand have pushed SA building costs to historic lows against other countries.

The highest contract price of an air-conditioned office building in SA is now only US310/m² - 13% of the 2 350 cost in the US - according to a survey by international consultants E C Harris. It is only 42% of the $730 top cost in Slovakia, the next lowest on a list of 35 countries . Japan is the highest at $2 630/m².

'The price differential is at the point where it means multinationals will now open in SA because the setup cost is so low,' says Harris's head of cost research, Paul Moore. 'The low costs are reinforced by low labour costs, an important component of building.'

But it could also mean higher building-cost inflation: building costs rose 20,4% annualised last quarter.

Moore says there are also signs that SA contractors are using their price advantage to build up business elsewhere in Africa. 'With no funds for tourism or infrastructure, they are looking for outside opportunities, especially in the north,' he says.

Harris forecasts military construction will rise 17% this year as private property development slows down.

The civil engineering industry is reaping the rewards of increased spending on infrastructure