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Financial implications for built environment consultants working at risk in South Africa

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Abstract:

Consultants in the built environment of South Africa are facing financial risks due to clients’ expectations of completing certain portions of work at risk. Thus, consultants would complete projects at risk in return for the possibility of remuneration in the long run. A descriptive survey was conducted among various professional consultants working within the built environment in South Africa. The findings include that a large percentage of work was expected to be completed at risk. Once work was completed at risk, a relatively small percentage continued to a stage where the actual consultant received remuneration. As a result of the current global economic climate, the amount of work required to be completed at risk increased and the percentage of work continuing to a stage of remuneration has also decreased. A greater percentage of clients therefore expected more work to be done at risk than the actual amount of work for which consultants are remunerated.

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