Service providers desperate for work

The weak economic outlook
is probably one of the biggest
risks facing South African
industry at present.
According to Graham
Croock, director of BDO
Risk Advisory Services, it has
significantly increased the
potential for losses as well as
reduced the possibility of large
contracts being renewed.
James Chopty, director
energy and resources Africa
at WSP, said over and above
the risk of no growth the
bleak economic environment
in the oil and gas sector had
dramatically increased the
risk to logistics and other
service providers in the
industry.
“With service providers
becoming more desperate for
projects they are accepting
more risk and often are not
completely prepared for it.”