Evaluating and prioritising causal factors that led to the liquidation of Major Construction Companies in South Africa

The construction industry is labour intensive by nature and, therefore the highest contributor to employment, (Fakunle and Fashina, 2020), it also brings dignity to society by providing housing infrastructure, (Ejohwomu et al, 2021), and it is an industry recognised for its contribution to the gross domestic product. However, major construction companies within the South African context have been liquidated which could be as a result of numerous factors. The aim of the study is to determine the primary causal factors of major construction company liquidation in South Africa.The study employs a qualitative methodology wherein semi-structured interviews were used as a data collection method utilising five case studies with eleven respondents who held executive management positions and were involved in the liquidation process of such companies.The key findings indicate that the non-profitability of contracts, late and non-payments, and rapid growth and expansion of companies through acquisitions primarily had a major impact on the liquidation of major construction companies within South Africa. Other factors of significance include the participation of construction companies in the high-risk design and build contracts, heavy overhead structure, and underbidding. The outcome of the research can be utilised as a key tool for the construction industry major companies to gauge their readiness and preparedness against the current threats and ultimately build resilience. The identification of these potential threats to the well-being of the construction industry will form the basis of future research directed at achieving mitigation measures towards the identified factors