How Quantity Surveyors can help manage costs as global tariffs impact SA construction projects

The saying "When America sneezes, the world catches a cold” is relevant once again. In 2025, it illustrates how the sweeping US tariffs are being felt across the globe, even affecting the construction industry at the southern tip of Africa. “Although these are taxes on imports into the US, they have a ripple effect on local building costs as Chinese and other suppliers redirect their materials to markets without tariffs and disrupt our supply chains,” says Nolubabalo Tsolo, Executive Director of the Association of South African Quantity Surveyors (ASAQS).

Pushing up construction costs
Local buyers in South Africa are consequently facing material shortages, steep price increases, and longer lead times for essentials such as steel, aluminium, solar panels, and electrical components, says Tsolo. She explains that contractors are struggling to manage the rising costs and add risk premiums to tenders. This means that projects – from roads and bridges to schools and affordable housing – risk exceeding their budgets. In addition, currency fluctuations are making dollar-priced imports even more expensive. All this puts strain on both public and private projects, with affordability and delivery timelines being reassessed.

Behind the scenes
“Amidst this uncertainty, quantity surveyors (QS) play a crucial role in stabilising the construction sector and keeping costs under control,” says Tsolo. “We’re the only profession specialising in the finances of the construction industry – also referred to as ‘building accountants’ (Bou-rekenaare) in Afrikaans.”

The QS’s initial estimate of the project cost – including labour, material, time, and profit – is based on information from the architects, engineers and other industry specialists. “We look at the current market prices in construction, combined with historical data as well as statistical forecasts and construction and material price indices,” says Tsolo. Ideally, the estimate also includes reserves for contingencies and escalations to cover unforeseen risks and costs during the project.

However, Treasury currently doesn’t accept contingencies (typically 5% to 10% of project value) in the public sector, and QS have to formally request additional funds for unexpected costs. It’s meant to boost accountability, says Tsolo, but adds onerous of bureaucracy, which delay construction and drive costs even higher.
​
How to build resilience
The ASAQS suggests the following responses to the tariff-related challenges on SA’s construction sector: 

• Embrace dynamic pricing strategies:

Together with other industry bodies, the ASAQS is engaging with government departments for more flexible public sector procurement frameworks to address price volatility. But this requires regulatory clarity. “The Standard for Infrastructure Procurement and Delivery Management stated that no escalations and contingencies should be included in the contract price (clause 14.5.9),” says Tsolo. “However, when this regulation was replaced in 2019 with the Framework for Infrastructure Delivery and Procurement Management, it didn’t mention the escalations and contingencies.”

• Focus on strengthening local supply chains:

The government has been encouraging local manufacturing, but it should use the US tariffs to actively help local producers of construction materials, for example through tax breaks and other incentives. This would reduce reliance on imports.

• Train QS on integrating global economic indicators into cost planning

ASAQS members already benefit from evolving continuous professional improvement programmes and webinars that also tackle macro-economic topics. Other industry bodies and partners could add value to this.
​
“By building resilience, we intend to lessen global economic shocks on the local construction sector,” says Tsolo. “Quantity surveyors are central to this, ensuring that construction projects remain feasible, efficient, and financially sound, even in uncertain times.” It shows that while South Africa can’t stop America from sneezing, we can protect ourselves from catching a full-blown cold. 

ENDS

MEDIA CONTACT: Stephné du Toit, [email protected], 084 587 9933, www.atthatpoint.co.za 
For more information on ASAQS please visit:
Website: www.asaqs.co.za
LinkedIn: linkedin.com/company/asaqs
Twitter: @the_ASAQS
Facebook: facebook.com/asaqsza