Construction World April 2019

APRIL 2019

COVERING THE WORLD OF CONSTRUCTION

WORLD

CR O WN

P U B L I C A T I O N S

Bridging communities: FRANKI AFRICA’S expertise on show

LEONARDO RISES high with innovative CONCRETE SOLUTION

MALUTI CRESCENT changes shopping in EASTERN FREE STATE

and productivity Komatsu introduces the new and improved PC210-10MO hydraulic excavator Promising more productivity, more power, improved safety, and increased fuel efficiency to give you the market-leading 20 tonne hydraulic excavator. Proving 100 years of engineering expertise can’t be wrong.

LOWER FUEL CONSUMPTION •Reduction of fuel consumption by 20% •Advanced management system of variable engine speed matching control •Fan clutch system •Reduction of hydraulic piping loss

HIGHER PRODUCTIVITY •Larger bucket capacity •Higher stability •Powerful digging operation • Improved travel performance

HIGHER DURABILITY •Enhanced work equipment •Heavy-duty main frame and rigidity swing circle

SAFETY & COMFORT •Large comfortable cab •ROPS Cab (ISO 12117-2) •Rear view monitor system (optional)

LOWER MAINTENANCE COST •Less maintenance time with new features

ICT & KOMTRAX ® •Large multi-lingual high resolution Liquid Crystal Display (LCD) monitor •Equipment Management Monitoring System (KOMTRAX ® )

•Detection system to prevent failure of main components •More visible maintenance information on the monitor screen

Preorder now: info @komatsu.co.za . www.komatsu.co.za . +27 87 945 1000 T&Cs apply.

You asked for MORE power

m re 5 LIFTING CAPACITY Lifting capacity has increased thanks to greater stability.

m re 20 BUCKET CAPACITY The bucket size has been increased to 1.2m³.

20 FUEL EFFIECIENT

m re

12 ENGINE POWER

Enhanced engine management technology has improved engine output while lowering diesel consumption.

m re

15 TRAVEL POWER

m re

Greater digging power is provided by a more powerful engine.

Travelling power output has increased by 15%, delivering improved traction and reduced tramming times.

% increases compared to the PC200-8MO

effective machine monitoring

T&Cs apply

08

15

26

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CONTENTS 06 New rules for new technologies The use of drones is heavily regulated.

22 Three decades of drilling experience in Africa Geomechanics’ services include exploration drilling.

08 Spreading its wings The ASAQS is now an Associate Member of the Pacific Association of Quantity Surveyors. 10 Backing their fellows Until black people have enough faith to back their fellows, BEE won’t become entrenched.

26 Leonardo rises high with innovative concrete solutions Pumping concrete up 55 floors required some concrete technology innovation. 31 Barlow Park Precinct set to begin construction What was corporate offices, will soon be an innovative mixed-use space. 34 Strong pipeline in Africa in 2019 Architecture group Paragon has expanded into various African countries.

15 Green consultant in Umhlanga AECOM is the green consultant for Pran Boulevard.

16 New Maluti Crescent opens Phuthaditjhaba’s new mall is changing shopping in the Eastern Free State.

36 A final resting place with symbolic power A cemetery in Taiwan required special formwork to make it a reality.

38 Precast concrete slabs speed up housing delivery AfriSam supplied specialised cement to Elematic SA for precast hollow core slabs.

Construction PUBLICATIONS CR O WN COVERINGTHEWORLDOFCONSTRUCTION APRIL2019

WORLD

REGULARS

Bridgingcommunities: FRANKIAFRICA’S expertiseonshow

LEONARDORISES highwith innovative CONCRETESOLUTION

04 14 16 26 30 46 53

Marketplace

Environment & Sustainability

Property

MALUTICRESCENTchangesshopping inEASTERNFREESTATE

ON THE COVER CW_April 2019_Cove.indd 1

2019/03/19 10:41:57AM

Projects Profile

A magnificent bridge over the Okavango River in the Mohembo Village area which is being piled by Keller’s Franki Africa for main contractor Itinera/Cimolai JV, is a shining example of Franki’s diverse strengths. Construction World focuses on Franki’s renowned ability to deliver in remote and challenging environments. The bridge, which connects villages on the east of the river with the rest of the country, straddles the Mohembo East (Kauxwi) Ferry landing site with the Mohembo West (Shakawe) Ferry landing site. Read the story on page 20

Projects & Contracts

Equipment

Products & Services

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COMMENT

As much as the recent news that Group Five had filed for bankruptcy protection was not wholly unexpected, it does emphasise three things: a battling construction industry is an indicator that the economy of a country is in dire straits, timeous business decisions are vital for the survival of a company and lastly, the construction industry – as we know it – is being demolished by the depressed South African economy, low infrastructure spending, and high levels of national debt.

Group Five is the fifth local construction company that has entered into business rescue in less than 12 months. As Group Five is one of the biggest construction companies in the country, the ripple effects can be severe. At its peak in 2007, Group Five was worth R8,2-billion. When its shares stopped trading in early March (after having traded on the JSE for 45 years), it was worth R100-million. More than 8 000 jobs are at risk. Seen against the background of a country with a 27% unemployment rate, the gravity of the situation hits home. In the current South African construction industry the number of tenders is low. This results in companies taking risks to win contracts, margins are squeezed to the limit which in turn negatively affects cash flow. Group Five has blamed the under- pricing of construction projects for the company's downfall. Yet, the current state of the economy alone is not to blame for Group Five’s demise. Its agility has to be questioned: only in 2018, many years after clear signs of an impending slump, did they actively

start restructuring the company. WBHO restructured in time and is doing well, while Murray & Roberts saw the writing on the wall and sold its building and infrastructure units in 2016 to focus on underground mining, oil and gas. The fact that the FTSE/JSE Africa Construction & Materials Index is down 27% while the FTSE/JSE Africa All Shares Index is down 6% in the last 12 months indicates the real possibility that the South African construction industry will be demolished. The implications are dire: construction is one of the biggest employers – even bigger than the mining industry. Government needs to intervene urgently to arrest this swift demise or face an escalating unemployment figure. If the local construction industry meets its demise, the country will be dependent on foreign construction companies to meet its infrastructure needs. Current confidence The most recent barometer of confidence,

Confidence Index, showed a 7-point decrease which means that confidence is now at the lowest it has been for eight years. The index dropped to 25 in the first quarter of this year, from 32 in the fourth quarter of 2018. This means that 75% of respondents are dissatisfied with prevailing business conditions. The fall in confidence was mainly due to a deterioration in building activity, off an already low level. The further decline in the index this quarter was supported by the fall in building demand. The index does not expect the low level on confidence to change in the immediate future. Amidst the doom and gloom is the uptick in the confidence from architects to 36, from 26 in the fourth quarter of 2018. This is on the back of an improvement in activity.

Wilhem du Plessis Editor

First National Bank (FNB)/Bureau for Economic Research (BER) Building

@ConstWorldSA

www.facebook.com/construction-worldmagazinesa

EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & GRAPHIC ARTIST Katlego Montsho CIRCULATION Karen Smith

PUBLISHER Karen Grant PUBLISHED MONTHLY BY Crown Publications cc P O Box 140 BEDFORDVIEW, 2008 Tel: 27 11-622-4770 • Fax: 27 11-615-6108

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The views expressed in this publication are not necessarily those of the editor or the publisher. PRINTED BY Tandym Cape

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ECSA VOLUNTARY ASSOCIATION RECOGNITION

The Institute for Timber Construction South Africa (ITC-SA), South Africa’s professional body for the engineered timber construction sector, has been recognised as a Voluntary Association in line with the newly-gazetted Voluntary Associations Recognition Framework, which came into effect in 2018.

I n a media statement issued by the Engineering Council of South Africa (ECSA) on 2 August 2018, it was reported that the Executive of Policy and Standards at ECSA, Edmund Nxumalo, noted that “the revised and approved rules and framework stipulate that ECSA will be the sole authority on the accreditation, monitoring, and validation of CPD activities and providers.” According to the statement, Nxumalo added that the update would result in the Council’s development of an accreditation policy framework to be prescribed to universities and Voluntary Associations for the verification of CDP providers and the validation of activities. The Council would “also develop a policy for auditing and monitoring of Voluntary Associations and universities.” In line with the updated Voluntary Associations Recognition Framework, the following outcomes have been outlined by ECSA as underpinning the relationship between ECSA and Voluntary Associations: • All ECSA-recognised VAs are going to be required to support Council and cooperate with Council in all matters pertaining to the execution of its legislative mandate, its vision, its strategy, its performance plans and its transformation agenda. • All ECSA-recognised VAs are going to be required to give effect to Council Resolutions in so far as they require execution/implementation by VAs in carrying out Council’s functions. • The VA Recognition Framework is to reposition ECSA as a sole regulator and representative of the organised engineering profession on all cross-cutting engineering-related matters and discourse nationally and internationally. • The relationship and interaction between ECSA and its recognised VAs will be more clearly defined and regulated. According to Amanda Obbes, ITC-SA General Manager, “The amendments to the Recognition Framework are welcomed by the Institute. The changes necessitate that VAs are more accountable for the responsibilities outlined in the framework, the most important being the promotion of ECSA registration. The update also facilitates

a closer working relationship between ECSA and VAs than ever before. “Recognised VAs, like the ITC-SA, are benefitted through their association with a reputable and credible regulatory body, through which they may also apply for CPD accreditation,” says Obbes, concluding, “The ITC-SA’s now-enhanced association with ECSA will be passed on to its membership, and has great potential to influence an upswing in its reputational profile through dynamic collaboration in programmes and on projects. ITC-SA members also qualify for discounts with ECSA due to their recognised VA membership status. This not only bodes well for the ITC-SA membership, but serves the greater construction industry and the ever-important consumer at the end of the value chain.”  As a professional body, the ITC-SA’s vision is to create and maintain the highest standards in the engineered timber construction industry by monitoring its membership, continuously improving standards, promoting and marketing engineered timber structures, and overseeing the training and development of its members. The ITC-SA is a South African Qualifications Authority (SAQA) accredited professional body with a professional membership and therefore has to comply with the requirements as set out in the National Qualifications Framework Act (NQF Act 67 of 2008 – as amended). The ITC-SA is also a Category B Recognised Voluntary Association in terms of the Engineering Profession Act, 2000 (Act 46 of 2000). The Institute was established 45 years ago to regulate the engineered timber roof structure industry and to provide design, manufacturing, erection, inspection and certification for compliance with inter alia SANS 10400 and SANS 10082, where engineering rational designs are applicable. The Institute is a SALGA Disaster Risk Management Strategic Partner. ABOUT THE INSTITUTE FOR TIMBER CONSTRUCTION

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"The use of drones is heavily regulated

– this is not child’s play."

NEW RULES FOR NEW TECHNOLOGIES

Drones have become increasingly popular among our clients as construction companies recognise how they can be put to significant use in their businesses. In addition to aerial photographs, drones can be used throughout the construction project lifecycle to create 3D models which inform design decisions, track the progress of the works and record keeping. By Kelly Stannard, Associate at MDA Attorneys

A s construction and technology attorneys, we support our clients’ steps to modernise their businesses. While there is much excitement about flying drones at work, it is important to consider the laws that apply to drones. Flying of drones is regulated by Part 101 of the eighth amendment to Civil Aviation Regulations under the Civil Aviation Act 13 of 2009. The regulations distinguish between private and commercial operation. “Private operation” means using the drone for an individual’s personal and private purposes where there is no commercial outcome, interest or gain. Several subparts of the regulations are not applicable to private operation. If your organisation is starting to use drones for a commercial outcome, it is important to know the regulations that apply so that you can ensure that you are operating your drones lawfully. Firstly, no drone may be operated within South Africa without a letter of approval and certificate of registration by the director of the South African Civil Aviation Authority. Application must be made to the director on the prescribed form and accompanied by the prescribed fee to obtain these documents. Secondly, no person may pilot the drone without a valid remote pilot license. The remote pilot must be 18 years or older, hold the required medical certificate as well as a certificate in proficiency in radiotelephony. The remote pilot will also need proof of proficiency in English and to have passed the theory examination and skill test.

Licenses are valid for 24 months. A revalidation check must be conducted within the 90-day period before the expiry date of the validity period. Thirdly, no person may operate a drone without a RPAS Operator Certificate (ROC). Application for a ROC is also made to the Director on the prescribed form and accompanied by the prescribed fee. A ROC holder has several obligations, such as developing an operations manual containing all the information required to show that the operator will ensure compliance with the regulations and how safety standards will be applied during operation, establishing a safety management system, conducting background checks on all personnel recruited to handle the drone and ensuring the drone is stored in a secure manner to prevent unauthorised use. Also, an ROC holder must at all times be adequately insured for third party liability. The regulations also prescribe requirements in respect of certain conditions such as landing on roads, flying beyond visual line of sight, night time operation and operation in the vicinity of people, structures, buildings and public roads. The above examples are by no means exhaustive, but do illustrate how the use of drones is heavily regulated – this is not child’s play. The person from whom you purchase a drone is obligated to advise you of the regulations that apply to you. But you can never be too careful on the ground or in the sky, so we advise our clients to familiarise themselves with the regulations. 

MBA NORTH: NDP ACTION LONG OVERDUE A lack of progress on National Development Plan implementation is killing off SA’s construction sector and hampering economic growth, says Master Builders’ Association North.

T he news that Group Five has filed for bankruptcy protection has come as yet another blow for South Africa’s construction sector, following shortly after a disappointing 2019 budget speech that offered little hope of significant infrastructure investment in the foreseeable future, says the President of the Master Builders’ Association (MBA) North, Musa Shangase. MBA North, which represents members in Gauteng, North West, Mpumalanga and Limpopo, says the construction sector has suffered several consecutive quarters of slow – and even negative – growth, creating a ‘state of emergency’ for large and small construction firms alike. “While we understand the predicament the new Finance Minister is in, we believe the budget was not a visionary one. It cut spending

on education, infrastructure and housing – all areas that could have boosted the ailing construction sector,” says Shangase. “And it must be noted that infrastructure development is the cornerstone of the economic growth of this country. If we want to achieve the growth goals set out in the National Development Plan, we need to fast track the execution of the plan and start investing in infrastructure development, which would boost investor confidence and catalyse an economic turnaround.” Shangase says indications are that the same key stumbling blocks that emerged in recent years will continue to hamper growth in the construction sector. “The government is awarding fewer projects and has been slow to pay, which is crippling stakeholders,” he said. “We’re seeing even large contractors facing business rescue

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and liquidation as a result, while for subcontractors with no cash flow, the wait of 180 days or longer for government payment is devastating.” Another challenge, he says, is local business forums demanding a 30% procurement allocation on every construction project, usually leading to delays, costly training and a risk to project quality. Shangase says: “The Group Five news underscores the fact that the continued slow release of infrastructure projects and payments will impact the sector, with more major construction industries going into collapse if these problems are not given workable solutions.” Shangase says 2018 was a challenging year for the MBA, for the construction industry as a whole and for the economic growth of the country. He told the recent MBA North AGM: “On the construction industry front demand for new construction work remains a constraint and activity growth is likely to remain under pressure in the near future. From cidb grades perspective, confidence fell to historic lows of 25 and 15 for Grades 5 and 6, and Grades 7 and 8, respectively. The Construction Industry Development Board (cidb) small and medium-sized enterprises (SME) business conditions survey has shown that civil contractor confidence fell by six index points

to a historic low of 27 during the third quarter. Weakness in all the underlying indicators, especially construction activity, contributed to the drop in confidence. Meanwhile, general building confidence has been trending downwards since early 2017. During the third quarter, business confidence shed three index points to 30 and the South African economy grew by 2,2 % q-q following two consecutive quarters of negative growth in the first two quarters of the year of -2,6% and -0,4% consecutively. The growth in the 3rd quarter is mainly attributed to the manufacturing, transport, finance and business services sectors. However, the construction sector contributed negatively to the GDP with -2,7% in the third quarter. This is a trend that has prevailed since 2013 when the industry was in the headlines for all wrong reasons. “In light of the infrastructure budget again being compromised and funds reallocated elsewhere, our concern is that we have fallen behind in terms of the NDP goals. If we want to achieve the growth goals envisaged in the NDP, we need to invest in infrastructure development now. But unfortunately, the NDP has been on the shelf since 2013. At this stage, the only positive note is the fact that we have a plan, but unless it is executed, our industry will die and South Africa’s economic growth goals will not be realised,” he says. 

AECOM, a premier, fully-integrated global infrastructure firm, recently announced it is honing its strategic focus across the Middle East and Africa by integrating regional operations as well as consolidating its African presence. HONING REGIONAL FOCUS

Left: AECOM MD for East Africa, Bridget Ssamula. Middle: AECOM Middle Eastern and African Chief Executive, Hamed Zaghw. Right: AECOM Middle Eastern and African Chief Operating Officer, Jason Kroll.

“W e are incredibly proud to be involved in some of the biggest infrastructure projects across Africa, including the USD1,5-billion Tema Port Expansion Project for Meridian Port Services in Ghana,” said Joe Ndala, AECOM’s Managing Director of South Africa and Chief Financial Officer for the African operation. “By consolidating our presence in Africa and bringing it together with our Middle East business, we’re able to focus on solving the region’s most significant infrastructure challenges, including improving water-and transport-related infrastructure and broadening industrial capacity.” One of the priorities for the newly consolidated region is to promote awareness among the firm’s client base of the company’s extensive suite of services, which includes the latest Building Information Modelling (BIM) technologies and Artificial Intelligence (AI). Such technology is being deployed not only for project management, but also for quality, cost control and maintenance. Ndala’s recent appointment to the managing director role coincides with additional leadership changes across the region,

including Bridget Ssamula’s promotion to managing director for East Africa. Additionally, the Middle Eastern and African regions will merge under the leadership of Hamed Zaghw as chief executive and Jason Kroll as chief operating officer. “With the restructuring of our businesses in Africa, our teams are more agile and better equipped to help our clients implement strategic innovations, help to reduce their costs and addressing their various needs,” Ndala comments. In relation to the R400-billion infrastructure fund announced by South African President Cyril Ramaphosa to kickstart the local economy, Ndala sees this opportunity as a medium to long-term project pipeline. “Electricity is not only a vital resource for modern infrastructure, but also part of the foundation to economic growth.” In addition to South Africa, Ndala points to Mozambique, Tanzania, Angola and Uganda as promising markets, especially in terms of the oil and gas industry, which represents a major growth opportunity in Africa and an area in which the firm can leverage its Middle Eastern experience and expertise. 

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Spreading its WINGS The Association of South African Quantity Surveyors was recently awarded Associate Member Status of the Pacific Association of Quantity Surveyors. The PAQS is an international association whose members are fully fledged associations that fall within the Asia Pacific area or border the Pacific Ocean, all of whom represent the Quantity Surveying profession in the Asia and Western Pacific region. C hairman for PAQS, Francis Leung, extended a warm welcome and congratulations to the ASAQS on joining PAQS as an members, and active participation in the various committees and activities on Research, Education and Accreditation, Sustainability, BIM, and International and External Affairs.

associate member. “PAQS had the privilege of welcoming ASAQS as our Associate Member last November, but our bonding with ASAQS started much earlier. It had indeed been a progressive, interactive process,” said Leung. Special recognition leads to amendment of the PAQS constitution The ASAQS has attended the PAQS Board meetings since its inception 22 years ago with the status of a non-voting Observer Organisation due to South Africa not being a country that falls within the Asia Pacific Area or shares a border with the Pacific Ocean. At the PAQS Board Meeting of November 2018, member countries unanimously recognised that the ASAQS had steadfastly contributed to the development of PAQS over the years and that special recognition was needed despite South Africa not falling within the geographical region of the PAQS. “With some amendments to the constitution, the PAQS formally welcomed the ASAQS to PAQS, which now has the membership of 15 countries collectively pursuing the interests of over 40 000 professionals and practitioners. ASAQS has been instrumental in introducing PAQS country members to the African practices and markets,” says Leung. Some of the responsibilities that go along with being an Associate Member include uplifting the industry, extending help to other

“The objective of quantity surveying is to optimise value for money for the planning, procurement, delivery and operation of construction and facilities. There is a lot we can do to excel our services and to collaborate with other stakeholders for improving and sustaining the built environment. At an industry level, we are witnessing rapid changes brought about by advancement of technology, sharing economy and the move towards collaborative contracting and early contractors’ involvement,” says Leung. What the change in membership status means for local Quantity Surveyors Larry Feinberg, Executive Director of the ASAQS, says that while Associate Members carry no voting rights, the change in membership status will allow the ASAQS to be appointed to any of the PAQS working committees and have all rights to PAQS research and documents. “The ASAQS is deeply honoured to be recognised and accepted as the PAQS’s first and only Associate Member. This recognition elevates the status of South African Quantity Surveyors among an internationally recognised group of professionals. The ASAQS will continue to co-operate with strategic partners outside of South Africa’s borders so that our members and our profession will have a strong voice and continue to be considered as key role players on the global playing field, despite South Africa’s remote location,” concludes Feinberg. 

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Backing THEIR FELLOWS Until black people have enough faith in their fellows to employ them as service providers, black economic transformation (BEE) will not become entrenched, BEE Advisory Council member Dr Thami Mazwai recently said.

D r Mazwai was speaking at a Broad-Based Black Economic Empowerment (B-BBEE) Commission-hosted roundtable session on black ownership, and how to grow, develop and transform South Africa’s township and rural economies. The session was held at the Gallagher Convention Centre in Midrand. The roundtable session was called after the B-BBEE Commission and members of the BEE Advisory Council identified ownership as one of its key focus areas in terms of improving business and public awareness of the importance of transforming the economy. The two entities have also observed various ownership models being implemented in South Africa, and have debated ways in which black ownership can be broadened to revitalise township and rural economies, and increase participation in the economy among the poor and the working class through the ownership of productive economic assets. BEE Advisory Council convenor Koko Khumalo reminded the audience that the B-BBEE Act is aimed at developing a stable, prosperous economy for all South Africans, regardless of race, and that the economy is stagnant. “We are all very worried,” she said. “Research has shown that a diverse [business] leadership team produces better results.” According to Chantyl Mulder, another BEE Advisory Council member, work is under way to bring to life a proposal that the Companies Act regulations be amended to require that the Companies and Intellectual Property Commission (CIPC) records data tracking black ownership, broken down by race and gender. CIPC commissioner Rory Voller said the commission has started to amend its registration forms so that it can gather race and gender information when companies are registered. Already this information has been gathered from 6 000 of South Africa’s larger businesses. Voller said he expects amendments to the Companies Act in this regard to be promulgated in South Africa’s next presidential term,

which will begin in May, after the general elections. Focus needs to be on the impact of transformation, Mulder said. B-BBEE Commission commissioner Zodwa Ntuli agreed. Access to finance emerged as a real hurdle to direct, meaningful ownership that gives black people input into the daily operations of a business. This was raised by Ipeleng Mkhari, CEO of Motseng Investment Holdings and president of the South African Property Owners Association, Black Business Council CEO Kganki Matabane, and others. There was also discussion around the abuse of trusts to keep black people at arm’s length from real, operational ownership of a business. Matabane said that to encourage black people’s involvement in the economy, the Competition Commission’s efforts to broaden access to markets needs support. South Africa is an economy too often dominated by large players, leaving emerging black businesses competing for a small slice of that particular market. Matabane said another avenue through which black businesses could be encouraged is by increasing South African funders’ appetite for risk financing. Too often small black businesses rely on international funders who demand a controlling stake in their business to cover the risk, he said. Business expert Terry Moore of Wits Business School said the world is moving away from a focus purely on giving shareholders as much income as possible, to a more broad-based focus on doing business that benefits all. Pure equity investment has proved to be a fickle means of enrichment that has eviscerated the American middle class, Moore said. Working to benefit the communities in which a company does business has proven to make “good business sense”, he said. “In essence, all concede that we need to broaden ownership to benefit workers, the poor, rural and township people, a task that faces all, business, government and civil society,” Ntuli concluded. 

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CESA RESPONDS TO 2019 BUDGET While Consulting Engineers South Africa (CESA) supports the provisions of Minister Tito Mboweni’s 2019 Budget presented in his speech recently, the organisation believes that Government needs to urgently revise its Procurement Practices for Consulting Engineering Services related to the development of Infrastructure making sure that the citizens of South Africa get ‘Value for Money’ infrastructure that is safe and designed to stand the test of time.

C hris Campbell, CEO of CESA states, “We would like Government to focus on ‘Value for Money’ when procuring the services of consulting engineering firms. We know we have less money available for infrastructure and we now need to make sure we get ‘more bang for our buck’ in the long-term. The problem often lies between two parties, the client, who provides poor scope definition and seeks out the least cost professional service providers and the Professional Service Providers, aggressively underpricing their services simply to secure the project and compromising their ability to manage the design and construction supervision diligently enough to provide quality services which provide lasting infrastructure solutions whilst managing the construction process to minimise cost overruns and time delays. Open tendering for such professional services as well as the expectation from public sector clients for fees to be discounted exacerbates this problem and is counter- intuitive to ensuring that public sector entities ensure optimised total cost of ownership in such infrastructure investment. Consulting contributes 3% to the costs of developing an infrastructure asset over say three years, Construction contributes up to 30% of these costs over say another three years, then the asset owner is left to manage operations and maintenance for the remaining say 25 years with a potential cost of 67% of the asset cost of ownership. A consulting engineering company providing quality professional services at 3% of these costs will be able to assist in reducing cost in the downstream phases whilst ensuring sustainability of the infrastructure. The assumption of course is that the client will maintain a rigorous process of maintenance that ensure ongoing performance of such infrastructure. Although CESA is in full support of competitive service provisioning, they believe that firms should not take on work

for which they are not able to deliver quality professional services as this compromises the integrity of the industry and places the public at large at risk. In order for Government to ensure that South Africans receive ‘Value for Money’ the personnel procuring professional services need to be technically competent to do so. “Following on from the State of the Nation address it is heartening that technical competence in Government will be increased and that infrastructure promotion will be driven further through the Infrastructure Fund. These are positive steps that CESA supports and is willing to become active participants in,” states Neresh Pather, CESA President. CESA’s theme for 2019 includes Delivering Purpose and Engagement – Establishing Trust and there is a strong focus within CESA on working with and supporting Government, with increased collaboration with National Treasury on Procurement, the Auditor General’s office on compliance support, together with partnering agreements with Client Bodies like SANRAL, Transnet and COGTA allowing CESA to contribute positively in terms of support that includes capacity building, skills development, compliance and good governance.  Although CESA is in full support of competitive service provisioning, they believe that firms should not take on work for which they are not able to deliver quality professional services.

CESA’s Chris Campbell (right) and Neresth Pather.

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A call for NEW BEGINNINGS Following Finance Minister Tito Mboweni’s first budget, economist Dr Azar Jammine has raised hopes for a ‘major recovery’ in the South African economy, but he warned it was unlikely to happen before 2021.

S peaking at AfriSam’s 2019 National Budget Breakfast in Sandton recently, Dr Jammine told a diverse audience of more than 200 people from the construction sector that 2019 and 2020 would remain very difficult. Planned government investment in infrastructure, for instance, was expected to rise only 4%, spelling a continued slump for civil engineering. He said one of the key drivers of recovery would be restoring the tax-collecting capacity of the South African Revenue Services, which had fallen about R40-billion short of target in the last financial year. He also hoped that government expenditure would be made more effective if the challenges at the State Owned Enterprises (SOEs) were addressed and the more-than-34% of the tax revenue being spent on the civil service was reduced significantly. Focusing on the state of the construction sector and its prospects, Industry Insight senior economist David Metelerkamp painted a sombre picture for most segments. The hard-hit civils sector would see some light from the 14% increase in planned government expenditure in transport and logistics infrastructure. Metelerkamp noted that this was off a low base from last year, moderating its likely impact. Water infrastructure would see an 8% increase in public spending, but investment in power facilities was only slightly raised due to the Medupi and

metres completed grew considerably in 2018. Demand for ‘luxury homes’ was down. The future held promise for large mixed-use developments, of which over 30 were on the table, said Metelerkamp. Ten of these were expected to launch in this financial year, and 14 more in 2020/21. He noted that the shopping centre ‘boom’ was over and that an oversupply now existed. Referring to the oversupply in the cement sector, AfriSam sales and marketing executive Richard Tomes, said AfriSam was now in a better position to cope with current market conditions after a period of right-sizing its business. Closing off the speaker line-up, political analyst Aubrey Matshiqi said despite the right words in Minister Mboweni’s budget address, certain ratings agencies had lost confidence in the ANC government’s ability to implement its stated plans. Matshiqi argued that “only limited change” would be achieved by this year’s election, and there was a “paucity of thought leadership” among the country’s leaders. He urged the audience to continue to ‘dream actively’ by nourishing hope through hard work and commitment to a better society. The ANC, he said, had run its course and what was now needed was a new revolution that included greater involvement by individuals, organisations, companies and civil society. Citizens’ over- reliance on the political class “condemns us to under-performance – especially in economic terms,” said Matshiqi. Tomes added that despite the impact of the lack of infrastructure spend on the construction sector, he remains confident that some level of stability will return to the industry once the 2019 national elections have taken place and the newly elected government will have been mandated with a new five year term to address issues around policy uncertainty and fix the state-owned entities. He concludes, echoing Matshiqi’s sentiment, that in order to strengthen the construction industry and country, we must all the heed the president’s call of ‘Thuma Mina’ made during his inaugural state of the nation address – a call for all South Africans to ‘lend a hand’ and be of service to the nation. 

Kusile projects approaching completion. The renewable energy sector would bring some relief to contractors, as its role in power generation could grow as these technologies showed evidence of reducing the cost of generating electricity. The building industry looked better than civils, he said, especially the residential segment. This was mainly in demand for flats and townhouses, where square

AfriSam Sales and Marketing Executive, Richard Tomes.

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ENVIRONMENT & SUSTAINABILITY

WASTE-TO-ENERGY AT N1 CITY MALL The improper disposal of waste is one of the fastest growing risks to our planet and way of life. Rotting food leads to increases in methane gases as the food decomposes in landfills. To address this, the City of Cape Town plans to start banning wet waste from its landfills from 2022.

Lara van Druten, CEO of The Waste Transformers (left) and Kari Alanko, Finnish Ambassador to South Africa.

T he Waste Transformers from the Netherlands and South Africa’s own JSE-listed international property company Growthpoint Properties have united to help take on this challenge. They are leveraging end-of-pipeline food waste from shopping malls and adopting a de-centralised approach to organic waste. An on-site, anaerobic digester has been installed at Growthpoint’s N1 City Mall in Cape Town, which is processing the waste from the mall to generate clean methane. This methane is consumed by an internal combustion engine to produce green electricity and hot water for the shopping centre. A fertiliser is also created, which will be used for the mall’s gardens. It is an on-site, smart, green, transportation-free approach to realising zero-landfill that makes sense. Gavin Jones, Growthpoint Properties Regional Retail Asset Manager, Western Cape, says, “Shopping centres can be big food waste generators, especially those with a significant selection of restaurants and grocery shops. This makes them excellent locations for waste-to-energy conversion. N1 City Mall is proud to lead this initiative for its environmentally conscious retailers and customers.” Nardo Snyman of Growthpoint Properties says, “Organic waste is one of the last barriers to truly achieving Net Zero waste at a number of our properties. With rising levels of pollution in our country and our oceans, it is no longer a case of best practice to re-purpose our waste but rather a necessity. We are excited about this initiative as it is aligned with our commitment to environmental responsibility

and economic empowerment. The containerised, small-scale, on-site approach to transforming waste into energy holds great potential. This pilot project will focus on positive impacts and financial feasibility and, if successful, we would look to roll it out to other Growthpoint Properties by 2022.” Lara van Druten, CEO of The Waste Transformers, comments, “This project demonstrates how companies can cooperate in a mutually inclusive way that generates energy for positive economic and social change. We are excited at the opportunity to transform an unused resource – waste – into new energy for South Africa. And, we are truly delighted to embark on this journey with a company of the stature of Growthpoint.” The Waste Transformers is a waste solution provider specialised in converting organic waste streams into energy while simultaneously transforming waste into new products. The Waste Transformers are specialised in a smart, high-impact approach to resource recovery and energy production that aims to power South Africa’s growth with good, green energy, generated locally, while simultaneously recovering the assets in waste. Growthpoint is a leading international property company that provides space to thrive with innovative and sustainable property solutions. It is the largest South African primary listed real estate investment trust (REIT) and invests on three continents. It is included in the FTSE/JSE Top 40 Index, a constituent of the FTSE4 Good Emerging Index and the FTSE/JSE Responsible Investment Index. 

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A 4-star Green Star rating was the target from the outset – the project received it in May 2018.

Integrated infrastructure delivery company AECOM’s experience in green building rating and sustainability stood it in good stead when it was appointed as green consultant for Pran Boulevard on Umhlanga Rocks Drive in the Ridgeside precinct, designed by architecture and interior architecture group Paragon. GREEN CONSULTANT IN UMHLANGA P ran Boulevard consists of two separate office buildings of three

In addition to sustainability, AECOM also incorporates architecture, interior design, and masterplanning, with all of these disciplines collaborating in order to offer a streamlined service for clients. Itself a Silver founding member of the Green Building Council South Africa, AECOM can undertake building ratings such as Green Star Office, Green Star Interiors, Green Star Existing Building Performance, LEED Design and Construction, and LEED Interior Ratings. From on-site practices to green initiatives in its own offices, AECOM is committed to implementing sustainability across the board. “We are committed to building our capabilities to provide sustainable solutions for our clients in creative and innovative ways. We aim to produce sustainable outcomes across every aspect of our work, including planning, design, development, production, delivery and review. “Sustainability is also at the core of how we manage our company globally. We take our responsibilities seriously, and continue to deliver improvements in our environmental performance across key performance indicators, including greenhouse gas emissions, water, waste, energy, and preparedness for the impacts of climate change,” Manning concludes. 

levels each above ground floor, linked together on each level with enclosed glazed bridges. There are three parking levels providing about 250 parking bays, as well as a ground-floor podium level with timber decks, walkways, landscaping, and water features. The total building area, including the parking levels, is about 18 600 square metres. Located in the rapidly-evolving business district of Umhlanga, Pran Boulevard used parametric modelling for its design, combined with a building envelope that responds to the site, views, and climate. Over 80% of the building has access to views. The structural system is concrete with a glazed cladding envelope. A particular achievement of the project is that the two buildings achieve a 60% improvement in carbon emissions over the SANS 204 National Building standard. This is due to innovations such as a cooled-air HVAC system, combined with water-efficient measures such as efficient sanitary fixtures and water-wise landscaping, AECOM Sustainability Practice Area Lead Candice Manning highlights. For example, paints, adhesives sealants, and carpets all have low VOC emissions. More than 70% of all building waste generated on-site is recycled or reused. An integrated Building Management System (BMS) system records and logs all energy and water usage within the building, which can be displayed in real-time for building-performance review. A 4-star Green Star rating was the target from the outset, which the project received in May 2018. This was a particular achievement in that AECOM also had to adhere to the highly specific requirements of the Ridgeside Management Association (RMA) concerning the treatment of corner sites in the precinct, as set out in the RMA Design Guidelines Volume 0 & 1. Situated on the corner of Umhlanga Rocks Drive and Ntusi Road, the site slopes away steeply from Umhlanga Rocks Drive towards the east. Combined with a maximum building-height restriction, the site posed a major challenge in terms of maximising the building height/office area, while also finding a median level to maximise pedestrian accessibility from the Umhlanga Rocks drive side, and vehicle access from Nokwe Avenue on the opposite side.

AECOM Sustainability Practice Area Lead, Candice Manning.

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PROPERTY

NEWMALUTI CRESCENT OPENS Maluti Crescent Shopping Centre opened on 21 March 2019 and officially became the largest shopping centre in Phuthaditjhaba in the Free State.

F ormerly called Setsing Crescent, Maluti Crescent’s major redevelopment and expansion was undertaken by JSE-listed retail REIT Vukile Property Fund. At the beginning of March the development team was busy adding the final touches to the project and excitement in Phuthaditjhaba and its surrounding community was building as the launch day approached. Maluti Crescent was developed and leased by Flanagan & Gerard Property Development & Investment forVukile Property Fund, with MDS Architecture and contractor Concor Buildings. The R400-million redevelopment transformed Maluti Crescent from a strip mall to a state-of-the-art modern, enclosed shopping centre. It added 13 000 m 2 of gross lettable area to the mall and boosted its size to 35 000 m 2 . It also includes new undercover parking as well as the first and only structured taxi facility of its kind in the area, which opened in November 2018. “We usually find that construction at a centre drives away customers who dislike the disruption. Maluti Crescent is different; rather than staying away, residents of Phuthaditjhaba have been coming to the mall eager to see the construction progress for themselves and doing a bit of shopping at the same time,” reports Paul Gerard, Managing Director of Flanagan & Gerard. The development team has gone to great lengths to minimise disruption to the existing centre so its original tenants can trade happily throughout the construction. While this is a massive accomplishment, it still isn’t regarded as the project’s most significant success. “Skills transfer through local employment has been the biggest achievement of the project by far. Few projects can achieve a local labour contingent as high as Maluti Crescent’s contracting team,” notes Gerard. Some 3 160 people have been employed on site since the development started. At the time of writing, there were 420 people working on site with locals making up in excess of 65%. Through contractor Concor Buildings, Maluti Crescent has also undertaken community initiatives. It has donated soccer jersey kits to a local football club, made improvements to an old age home, helped to fix a road serving schools, roofed a church and hosted a school site visit. The redeveloped mall will also accommodate the aspirations of a growing number of business people from its community.

New local operators Khadim Fashion Boutique, Lesedi Stationers, Alpha Pharm, Dynasty Beauty Boutique, Tom’s Biltong and IT equipment and services provider Afri-tech will join existing local businesses at Maluti Crescent The local businesses trades side-by- side with South Africa’s biggest names in retail at Maluti Crescent, including Pick n Pay, SuperSpar, Game and Woolworths. Before the official opening, Itumeleng Mothibeli, Director of Asset Management at Vukile said: “We can’t wait to open the new Maluti Crescent on 21 March 2019. The response from its community has already been phenomenal, and we are confident that the upgraded centre will delight its diverse range of customers. It will be a truly modern shopping experience with a higher quality of retail that reflects both retailer and shopper demand.” Maluti Crescent brings several retail firsts to Phuthaditjhaba, such as Bogart Man, The Cross Trainer, Jam Clothing, Queenspark, Street Fever, Legit, Shoe City, McDonald’s and Nandos. The centre’s new tenant mix speaks directly to the needs of its community with two major supermarkets, two pharmacies, major fashion chains, trendy athleisure, quality sit-down restaurants and fast food outlets, speciality retail, all major banks, health and beauty, quality electronics and all major cellular providers. Plus, customers can expect to enjoy all the latest store design concepts, including new generation stores from the Mr Price Group, TFG, Truworths’ brands, Pick n Pay and Woolworths. 

Itumeleng Mothibeli, Director of Asset Management at Vukile.

Paul Gerard, MD Flanagan & Gerard.

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