Construction World February 2019

FEBRUARY 2019

COVERING THE WORLD OF CONSTRUCTION

WORLD

CR O WN

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

SEM: S tart E arning M ore

Building NAMIBIA’S LARGEST DAM

FOURWAYS MALL SA’S NEW PRECAST LANDMARK

Cape Town CBD’s HIGHEST RESIDENTIAL building

HOW MIXED-USE precincts are benefiting INNER CITIES

IFC advert

Best Business Decision

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CONTENTS 04 35 years of excellence M&D Construction recently celebrated its 35 th anniversary. 08 Maintaining Level 1 B-BBEE status Integrated infrastructure delivery company AECOM has maintained its B-BBEE status. 10 Civil contractor sentiment falls to an historic low The cidb’s SME business conditions survey paints a concerning picture of the local civil and building industry. 14 Reviving the Tsitsikamma Wetlands A century-old decision to drain the Tsitsikamma Wetlands has been reversed. 16 How mixed-use precincts are benefiting inner cities As more people desire central living, property companies meet the demand for inner city living. 22 Fourways Mall is SA’s new precast landmark The revamp of this mall represents a national first for the unique use of precast concrete.

29 SA’s first smart lighting architectural installation A digital display in the Rosebank Link building is turning heads.

30 The 21 st century’s next big thing Fly ash, of which South Africa with its coal based electricity has an abundance, may generate revenue and jobs.

31 Heritage and height marks landmark project 16 On Bree Street will soon be Cape Town’s highest residential block.

32 Building Namibia’s largest dam The new Neckartal Dam will be three times bigger than Namibia’s current biggest Hardap Dam. 35 Oxford Parks successfully completed Concor has successfully completed the first building for the Oxford Parks development in Rosebank. 38 Readymix suppliers look to admixtures for growth New technologies as a means of reducing costs while sustaining quality in a tough climate. 44 On the up Tata and Daewoo trucks have benefited from recent improvements in dealer, parts, service and networks.

Construction FEBRUARY2019 PUBLICATIONS CR O WN COVERINGTHEWORLDOFCONSTRUCTION

WORLD

SEM: S tart E arning M ore

Building NAMIBIA’S LARGESTDAM

REGULARS

04 14 16 22 26 42 46

Marketplace

FOURWAYSMALL SA’SNEWPRECAST LANDMARK

CapeTown CBD’sHIGHEST RESIDENTIAL building

Environment & Sustainability

Property

HOWMIXED-USEprecinctsarebenefiting INNERCITIES

ON THE COVER

Project Profile

With an extended range of new machines that come with a host of improved features for better efficiency, complemented by a relentless dealer expansion programme, new and existing SEM customers are guaranteed to start earning more out of their machines. The value equipment segment has grown by leaps and bounds during the past decade. The trend within the global construction market is for customers wanting machinery that costs less and capable to undertake less rugged jobs where

Projects & Contracts

Equipment

Products & Services

premium machines are not essential Read the article on pages 20 and 21

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CONSTRUCTION WORLD FEBRUARY 2019

In these tough times Construction World offers the construction industry a vehicle to reach potential customers via various platforms – with pricing ranges to ensure continuity in your company’s marketing message.

COMMENT The cidb Business Conditions Survey for the fourth quarter of 2018 was released in the middle of December and paints a concerning picture for civil contractors and general builders. In fact, never before has the sentiment in the construction industry reached such lows.

lion’s share of their revenue abroad. Politics plays a bigger role than ever before. Across the board – from consulting engineers to architects to building and civil contractors (not to mention the specialist services or suppliers) – the industry is in survival mode. But going off radar in times like these is not wise. The construction industry is cyclical – it may be bad now, but it will improve. It is critical to also advertise in the current economic climate to maintain a long- term positive perception of your brand (be it service or product). Only by advertising do you ensure that your brand is perceived as reliable even in difficult times and this could influence how you are supported when the tide turns. Our readers are your buyers Construction World , in the 37 years that it has been published, has seen the industry that it serves peak and dip. It has always aimed to be a vehicle the construction industry can use to fulfil individual marketing needs. To this end, the brand has adapted: whereas it was purely print based at the outset, it has diversified into online publishing, maintaining its focus on print as, by their

Although there were pockets of improvement in certain grades (notably 5, 6, 7 and 8), the sentiment for building contractors in Grades 3 and 4 fell to a historic low of 26. If you keep in mind that 50 is the divide between positive and negative terrain, one realises just how negative these grades are at the moment. In the Western Cape, which has seen some buoyancy and previously outperformed its provincial counterparts, building confidence dropped by a cumulative 30 index points for the past two quarters and is now at 26. Civil engineering contractor confidence did increase to 35 in the last quarter of 2018 – from an all-time low of 27 in the previous quarter. Although there were minor improvements in some underlying indicators, the indicator measuring construction activity reached its worst level on record. Marketing in tough times The South African construction industry is taking severe strain and the industry is at the mercy of many factors. The landscape of today is very different from the landscape of five or 10 years ago: The Big Five, to a large extent, are no more … or they are making the

very nature, trade publications favour print. In a time of declining print circulations, Construction World has grown its audited number of copies by upwards of 1 000 per month – albeit by means of PDF replicas (which is as tightly controlled as the print circulation). Entrust us with your marketing message. We reach the very people that you want to reach.

Wilhelm du Plessis Editor

REACH YOUR BUYERS (ESPECIALLY IN TOUGH TIMES)

• We have been tuned into our readers for 37 years • The print issue has an audited circulation of 6 092

• We have 11 000 unique web browsers • Every week our newsletter is emailed to 10 500 readers • The print issue is available online – no login required

@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

TOTAL CIRCULATION: (Third Quarter '18) 6 092

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

Publisherof theYear2018 (TradePublications)

www.constructionworldmagazine.co.za

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FULL PAGE SCARIA At Scania we understand that our customers demand high performance vehicles. From maximised fuel efficiency, increased uptime and extended productivity. Scania recognises your business needs. We offer tailor-made applications to meet your specific industry requirements, whilst including service solutions from on-site servicing to fleet connectivity. This is why we are continuously making the shift towards providing you with sustainable transport solutions that lower the cost of running your operation while improving your total operating economy. As theworld changes, so does our perspective

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CONSTRUCTION WORLD FEBRUARY 2019

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35 YEARS OF EXCELLENCE M&D Construction Group recently celebrated its 35 th anniversary at an event that was attended by the company’s many clients, supply-chain partners and employees. Y olanda Sedibe, M&D Construction Group’s human resources director, which means ‘Grow with us’ in English. “This focus spans our clients through

during the Apartheid era and those, such as the global economic meltdown, during our democracy. Certainly, it is this diversity that will ensure that we as a nation also endure the more recent ‘state capture’ saga that has had such a dire impact on the entire economy, including the entire South African construction industry,” he said. Murray noted that economic turmoil and political 'shocks' were among the single biggest threats facing any business and were behind the high failure rate of many global companies which seldom make it to 30 years. He said that M&D Construction Group had made it thus far by its robust and resilient management team; sufficient cash reserves to weather tumultuous episodes; and by always focusing on servicing clients to the best of its ability. “M&D Construction Group started as a small company in 1982 and, by the end of 1983, we had only three fixed assets. We have grown to the point where we are now a diversified company with a strong presence in the building, civil construction, roads and earthworks, as well as plant-hire industries. The group now owns about 100 items of capital equipment and we will have turned over R1-billion this financial year,” Murray said. Chief Executive Officer, Rukesh Raghubir, said that management was confident that M&D Construction Group had a strong strategy in place to ensure that it achieved its target of becoming a R7-billion company and was strategically positioned to be at the forefront of technology and using innovation as a disruptor to the construction industry within the next 10 years. “We set out to disrupt the traditional construction industry, and we will continue to do just that by harnessing advanced digital technologies, such as three-dimensional printing and augmented reality. M&D Construction Group is already undergoing its Fourth Industrial Revolution, an era that is defined by high levels of productivity, precision and safety,” Raghubir said. He also said there was immense potential for the company to further ply its specialised skills set and capabilities in the demanding oil and gas, as well as renewable energy industries. This would be on the back of the

said it was fitting that such an important occasion be celebrated at the University of Witwatersrand’s Science Stadium considering the company’s long professional relationship with this institution of higher learning. “This is where we first earned our reputation for being a specialist concrete contractor. We can proudly say that our Building Division refurbished and even completely rebuilt most of these stunning structures on campus. These buildings with their striking off-shutter finishes bear testament to the focus we place on ensuring the highest level of quality on all of our projects – one of the important drivers behind our growth over the years,” Sedibe said. She credited M&D Construction Group’s supply-chain partners and, just as importantly, its dedicated employees for the company’s ability to always exercise its core values of ‘being safe’, ‘doing it right’, ‘finding the best way’ and ‘doing what we say’. These are supported by the company’s motto of ‘Khula Nathi’, an isiZulu phrase

to our various sub-contractors and suppliers. It guides everything that we do, and also includes our loyal

employees who have demonstrated their commitment to the company. More than 60 members of our team have been with us for more than a decade. This speaks volumes of their commitment and the working environment that we have created over the years to develop and retain the people we need to help build this nation,” Sedibe said. Company co-founder and chairperson, Andrew Murray, noted that one of M&D Construction Group’s other strengths was its diversity, reflected by the company’s client base, supply-chain and employees. “While many people fear diversity, M&D Construction Group embraces and encourages it,” Murray said. “It is a significant strength considering that a nation comprising different ethnicities and people with varying cultures and religious beliefs was able to thrive through so many ‘dark’ periods in South Africa’s history. These include the many anxious and uncertain episodes

From left: Andrew Murray, Yolanda Sedibe, Human Resources Director, and Rukesh Raghubir, Chief Executive Officer.

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ensure that they too thrived in the same manner as M&D Construction Group, despite an increasingly ‘tough’ operating environment. He reassured the company’s clients that M&D Construction Group remained committed to the highest possible quality standards. “This will be achieved by continuing our focus on only working with the best subcontractors and suppliers, while employing and retaining world-class skills in the construction industry. Our focus on quality is also dependent upon ongoing investment into mentoring, as well as skills development and training. This is in addition to ongoing investment into internal systems that ensure accountability and the ability to identify the root cause of problems. These have enabled M&D Construction Group to constantly benchmark and improve on existing performances,” Raghubir concludes . 

M&D Construction Group recently celebrated its 35 th anniversary at an event that was attended by the company’s many clients, supply-chain partners and employees.

company’s extensive experience in the water industry which, Raghubir said, was also increasingly exploring the viability and applicability of decentralised infrastructure that will be operated by

independent service providers – another immense opportunity for a specialist in the field. Certainly, the company would also continue acting as a ‘big brother’ to emerging contractors to

How to deal with CONFLICT OF INTEREST IN SITE CLAIMS Disputes and consequent claims on building sites are nothing new, and resolving such situations invariable calls for time, patience and skills. But the problem is sometimes exacerbated when a conflict of interest unexpectedly crops up as the culprit, says Uwe Putlitz, CEO of the Joint Building Contracts Committee (JBCC).

J BCC is a non-profit company that represents building owners and developers, professional consultants, and general and specialist contractors who all provide input for the compilation of JBCC agreements (contracts) that portray the consensus view of the committee’s constituent members. Putlitz says difficulties may arise when a project’s team leader must deal with a claim from the contractor for additional costs and/or an extended construction period – and then finds that the cause for the claim is non- performance or incompetence from an individual employed by his very own firm. “It could actually be far worse: not only could the culprit be working for the same firm of consultants, he or she could

even be the principal agent or the project manager.” Putlitz says in such case only

unknown writer remarked ‘contracts are there to allocate blame’. Indeed, standard forms of construction contract have been drafted to be ‘just’ and ‘fair’ to both parties – but to achieve this, the provisions of the clauses dealing with execution criteria within stipulated time periods and along agreed procedures must be followed,” he adds. Putlitz says because the causes of conflict on building sites are so varied it is essential that the client at the outset determines an effective communication strategy involving all project participants throughout the design and construction phases, together with the delegated levels of authority of team members. “This procedure would simplify the avenues to follow when disputes of any type arise,” he advises . 

two solutions are available: • The principal agent must

immediately notify his or her company’s professional indemnity insurer and then collectively also the client to make a fair determination of the claim in consultation with the insurer - and accept responsibility for the costs thereof; or • Appoint another agent to deal with the claim in question – and immediately notify his or her professional indemnity insurer to resolve the degree of liability and costs thereof. “Sweeping the issue under the proverbial carpet is definitely not a solution. An

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SALES EXCEED CHF7-BILLION FOR THE FIRST TIME

Sika proved its ability to generate very strong growth in 2018, increasing sales in local currencies by 13,7% to the equivalent of CHF7,09-billion. The positive development of business in all regions, together with continued investments in new factories, the establishment of another national subsidiary, and the strategic focus on big cities to capture the business potential of the megatrend urbanisation contributed to Sika’s strong growth.

well as Arcon Membrane, a major manufacturer of roofing and waterproofing systems in Romania. New factories for concrete admixtures and mortar products were commissioned in Senegal, Saudi Arabia, Dubai, Azerbaijan, Kazachstan, and Russia. The newly established Americas region recorded local currency growth of 11,7% in 2018 (previous year: 12,6%). Including acquisitions, USA managed to record double- digit growth thanks to investments and market initiatives in metropolitan areas. The development of business in Brazil and Colombia was above-average. The basis for further growth in Central America was laid with the establishment of a new national subsidiary in Honduras. With the acquisition of the global Concrete Fibers business from Propex Holding, LLC, Sika has further invested in the high growth market for concrete fibers. New production plants for concrete admixtures and mortars were opened in Peru and Guatemala. Growth in the Asia/Pacific region amounted to 5,5% in local currencies (previous year: 5,4%). Here the highest growth rates were recorded by India, Indonesia, and China. In Vietnam, a state- of-the-art facility for mortar production has come on stream in the Bac Ninh plant alongside the existing production of concrete admixtures. This has enabled Sika to expand its supply chain in this large construction market. The new Global Business segment recorded a growth rate of 29,2% in local currencies (previous year: 11,5%), of which 23% is attributable to the acquisition of Faist ChemTec. This new segment includes the globally managed businesses automotive, Advanced Resins (formerly Axson Technologies), and Faist ChemTec. Advanced Resins and Faist ChemTec are established providers of components and solutions for automotive and other industries. A new automotive factory for the production of acoustic and body reinforcement systems was opened in Querétaro, in order to derive even greater benefit from the strong Mexican automotive market. Outlook For the business year 2018, a record operating profit (EBIT) in the range of CHF940-million to 960 million is expected. With investments in 11 new factories, one additional national subsidiary, and four acquisitions, the basis for continued growth has been established. These 16 key investments, together with the well-filled pipeline of new products and the strong sales organisation, allow Sika to look to the future with much confidence. In the business year 2019, Sika expects a sales increase in line with its Growth Strategy 2020 targets of 6 to 8% and an over-proportional rise in profits. Depending on the closing date of the Parex transaction, sales are expected to exceed CHF8-billion. The execution of the Growth Strategy will continue in 2019 with the opening of new factories and further acquisitions. The new Strategy 2023 will be communicated at the Capital Markets Day on 3 October 2019 . 

O ver the last year, Sika succeeded in increasing sales by 13,7% in local currencies to a total of CHF7,09 billion, thereby exceeding the CHF7-billion mark for the first time. All regions managed to boost sales and gain further market share. Above- average growth rates were achieved in Eastern Europe, Africa, the Middle East, USA, Indonesia, India, China, and in the Global Business segment. Paul Schuler, CEO: “We made further significant progress with our growth strategy in fiscal year 2018 and have made good use of the additional momentum afforded to us by the settlement of the takeover dispute. Our 13,7% increase in sales meant we broke through the CHF7-billion barrier for the first time. With 11 new factories, an additional national subsidiary and four acquisitions, we have invested a great deal in our supply chain in the past year so that we can benefit from the growth in global construction markets and further expand our market position. We owe this record result to the great efforts of the 19 500 people who work for Sika worldwide – and for that I would like to thank them.“ Growth in all regions In 2018, sales in the EMEA region (Europe, Middle East, Africa) increased by 14,2% in local currencies (previous year: 7,6%). The core markets of Spain and the UK recorded high single-digit growth. Double-digit growth rates were achieved in the Middle East, Africa, and Eastern Europe. With the acquisition of Index Construction Systems and Products in Italy, Sika gained a leading manufacturer of waterproofing systems for roofs and building structures. In the reporting period Sika also acquired Polypag, a Swiss-based manufacturer and developer of polyurethane foam systems, as

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AECOM MD for East Africa, Bridget Ssamula.

AECOM South Africa MD, Joe Ndala.

MAINTAINING LEVEL 1 B-BBEE STATUS Integrated infrastructure delivery company AECOM has maintained its Level 1 Broad-Based Black Economic Empowerment (B-BBEE) status, according to South Africa MD, Joe Ndala.

T he Level 1 status is affirmation of AECOM’s ongoing commitment to transformation, focusing on equity ownership and employment equity, skills development, supplier development, procurement, and socio-economic development. Ndala explains that, on a national level, a Level 1 B-BBEE accreditation has a positive impact, as it supports governmental initiatives for transformation. Commercially, it provides advantages in terms of brand awareness, business development, and client relationships. AECOM has implemented outcome-based programmes to improve and achieve its transformation objectives, including a learnership programme aimed at people with disabilities; the AECOM Educational Trust; and the Project Engage supplier development programme. Project Engage aims to create a live, interactive, and robust learning environment wherein representatives from its black- owned- Exempted Micro Enterprises (EME) and Qualifying Small Enterprises (QSE) participate in learning objectives outlined by this in-house, exclusively AECOM programme. AECOM’s disabled learnership programme recently saw 27 successful graduates. The learners were each awarded a certificate for completing the NQF Level 2 in Business

Administration from Skills College. “Our investment in this programme not only shows that AECOM is committed to South Africa, but that we are determined to make a difference in local communities,” Ndala comments. The disabled learnership programme commenced in 2016, with the initial intake of 29 learners all graduating successfully. A third intake is currently completing NQF Level 3 in Business Administration, and is expected to graduate this year. Ndala adds that procuring from a Level 1 accredited business enhances the B-BBEE scores of its own clients. It also encourages AECOM’s own service providers to improve their individual ratings. As per AECOM’s third-party procurement policy, preference is given to EMEs, QSEs, black-owned and black woman-owned businesses, where possible. Ndala’s recent appointment coincides with Bridget Ssamula being promoted from Country Manager for Uganda to MD for East Africa. This is against the background of the African and Middle Eastern regions merging under the leadership of Hamed Zaghw as Chief Executive and Jason Kroll as Chief Operating Officer. The merger with the Middle East region will assist AECOM in having a competitive edge in the South African market, aided by its Level 1 B-BBEE status . 

ECOM’s disabled learnership programme recently had 27 successful graduates.

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New President FOR SAIA

Cape Town architect and urban designer, Dr Luyanda Mpahlwa has been inaugurated as President of the South African Institute of Architects (SAIA). M pahlwa was inaugurated at an event held on 6 December at the Radisson Red Hotel in the V&A Waterfront, a building designed by his architectural firm, Design Space Africa, in association with Peerutin Architects. He accepted the chain of office from outgoing President Maryke Cronje. In a moving acceptance speech Mpahlwa told of his pursuit of architecture against all odds, including a period of incarceration as a political prisoner on Robben Island and exile in Germany where he completed his studies, going on to become one of the first black architects in the country. The incoming president reflected on his 40 years involvement with architecture, and the challenges the country faced during apartheid, where the access to architecture and engineering careers was previously determined on racial grounds. He rallied the gathered architecture community to acknowledge the challenges the profession faces and pledged to use his term in office to work hard at rebuilding the respect the profession deserves and encourage interest among young professionals. Mpahlwa said, ‘The architectural profession needs to be regarded as a key player within the built environment professions and architects need to play their role in reshaping the spatial dynamics of our country and our built environment in general’. Further appointments were announced with the inauguration of Treasurer Jan Ras as well as Vice President Kate Otten and Cecilia van Rensburg as Deputy Treasurer. The Inauguration was attended by a wide range of guests from the public and private sector and fraternal organisations. Speakers included Victor Miguel, President of Africa Union of Architects (AUA), Priscilla Mdlalose, CEO of the Council for Built Environment (CBE), Letsabisa Shongwe, President of South African Council for the Architectural Profession (SACAP), Vusumuzi Nondo, Development Manager of the evening’s host and sponsor V&A Waterfront and Musa Shangase representing Corobrik, a long standing SAIA sponsors, who all voiced their ongoing support for SAIA and the South African architecture community at the event. SAIA wishes to acknowledge the generous sponsorship received from the V&A Waterfront, Corobrik, and Gearhouse SA. ABOUT SAIA The South African Institute of Architects (SAIA) was established in 1927. It is a voluntary association repre- senting South African architects, along with its 10member regional institutes. Membership of the Institute is open to all registered Professional Architects as well as Candidate Architects who have qualified but who are serving their period of mentorship before registration. SAIA is committed to the pursuit of excellence in architecture and its activities include supporting itsmembership through professional development, advocacy, professional practice advice as well as public engagement.

Guests were entertained with a special performance by Zolani Mahola of Freshly Ground accompanied by David Watkyns, as well as a performance by reggae band The Rivertones. The President’s Inauguration was the highlight of SAIA’s Architecture Week, a week of architectural celebrations in Cape Town including Architectural Open Studios, the Cape Institute for Architecture’s annual street party, and SAIA Convention. 

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Civil contractor sentiment FALLS TO AN HISTORIC LOW After trending downwards since the beginning of 2017, general building confidence improved marginally from 30 to 34 index points. In contrast to the uptick in confidence, building activity slowed and tendering competition intensified.

I nsufficient demand for building work remained a key constraint. Ntando Skosana, Project Manager for Monitoring and Evaluation at the cidb remarked that, “Despite the improvement in sentiment, the building sector continued to suffer from a shortage of work.” In terms of the performance across grades, Skosana noted that “Building contractors in Grades 3 and 4 continued to struggle due to a further slowdown in building activity which weighed on sentiment.” Indeed, for Grades 3 and 4 confidence fell to a new record low of 26 and the building activity indicator deteriorated to its worst level on record. Although sentiment

among building contractors in Grades 5 and 6 as well as Grades 7 and 8 improved, it remained at depressing levels. In the Western Cape, building confidence has dropped by a cumulative 30 index points over the past two quarters and is now at 26. Skosana noted, “Building contractors in the Western Cape previously outperformed their provincial counterparts, but came under pressure in the third quarter. This continued into this quarter. Discouragingly, the outlook for this province does not look promising, as demand for new building work remains a key constraint.” In the final quarter of 2018, civil engineering contractor confidence improved

to 35 index points, from an all-time low of 27 in the previous quarter. However, Skosana pointed out that “Although there were minor improvements in some of the underlying indicators, it is important to note that the indicator measuring construction activity reached its worst level on record. This suggests that the industry is under pressure.” Sentiment ticked up across all grades. Despite this, confidence remained in negative territory (i.e. below 50) for all the grades. In contrast to the building industry, civil contractors in the Western Cape reported an improvement in confidence to 47, after registering an all-time low of 21 in the previous quarter. 

REQUIRING LEGAL INTERVENTION

The ‘construction mafia’, groups of people calling themselves a business forum and purporting to represent local communities, are plaguing the SA construction industry. MDA, a firm of attorneys specialising in the construction sector, has worked with several clients experiencing this intimidation. By Kelly Stannard, Associate at MDA Attorneys

How they operate The groups typically approach operational construction sites with violent threats and aggressive behaviour. They demand that a large percentage of the jobs on the project are awarded to them and that subcontractors are companies with which they are affiliated. The groups are becoming increasingly violent. Proactive moves by contractors We advise clients to consult with local community representatives on new projects and, as far as possible, to ensure the involvement of local suppliers. Despite doing so, they still experience violent individuals who threaten to burn down their site or even kill their staff should works continue without their demands being met. The agenda seems to have little to do with genuinely representing the local community. "Contractors are forced to shut down their sites for fear of their employees’ lives and destruction of their equipment, plant or the completed works. The police are called, but this only provides a temporary solution

as the group returns the following day. These circumstances leave contractor’s employees in constant limbo as to whether they can return to work or not and cause serious delays to the project, with grave financial consequences for the contractor and the employer. Despite, the construction mafia demonstrating a complete disregard for the law and rights of others, in MDA’s experience, the police will attempt to deal with the situation at the time violent behaviour is displayed but will not enforce any preventative action or make any arrests without a court order. Legal solution to threats and intimidation In several instances, MDA has advised clients to seek an urgent interdict. An interdict is a court order to stop or prevent someone from doing something. It comes into operation the moment it is granted by a court. A person who ignores an interdict can be arrested and committed to prison for contempt of court. An urgent interdict can be

obtained in a matter of days. It is important to act immediately to establish urgency and to ensure that the contractor has the contact details of those to whom they will serve the application. We advise keeping registers at all meetings with the ‘mafia’ leading up to launching the application which includes names and email addresses. An interdict in construction mafia circumstances would order that they may not approach or enter the site, threaten the lives of staff or prevent staff from working and further, that a sheriff must implement this, including employing the police to remove or detain perpetrators. The feedback that we have received from our clients is that the court order has been an effective deterrent despite the groups previously showing a flagrant disregard for the law. Disregarding a court order allows for arrests to be enforced immediately. Although an interdict may not be the best solution in all circumstances, it can work and is definitely worth considering in reducing the intimidating mafia tactics. 

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FULL PAGE BABCOCK

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SUCCESSFULLY CHANGING MINDSETS It is a tough time for South African construction. There is huge political uncertainty caused by, amongst others, land redistribution - while 2019 is also an election year. The private sector has adopted a wait- and-see approach, while the civil engineering sector is at historical lows. The result? A significant drop in the sale of new construction vehicles. Despite this Scania South Africa has maintained its market share in this segment, while other significant players lost ground because various value brands entered the market. This is a clear indication that the programmes that Scania introduced to enable it to offer Solutions Based Offerings over the last two years, are paying off.

An uncertain playing field According to the Construction Industry Development Board (cidb) SME Business Conditions report for the last quarter of 2018, the Building Sector continues to suffer from a shortage of work. Civil Engineering, even though it showed an increase from an all-time low of 27 points (out of 100) in Q3 of 2018 to 35 points, had the indicator measuring construction activity at the lowest level on record.

having built-up vehicles in stock to accommodate the construction industry’s fast turnaround times, agreements with preferred body builders that could assist with shortening lead times, financing and maintenance options, this market share more than doubled in 2017.” Even though the total South Africa Truck market grew with 9,1% in 2018, the construction sector had a significant decrease of 26,5%. The fact that Scania maintained its market share proves that Scania is building a sustainable business. “The NAAMSA statistics reveal that because of the uncertainty in the market, smaller construction companies have been forced to buy value brands as they want to stretch their capex,” says Friberg. “This is evident from the many smaller entrants into the construction vehicle segment.” He says that this will only be until the market ticks up. “Companies know that uptime and reliability is vital for their revenue generating ability.” Theuns Naude, Segment Manager: Construction, Public and Special Segments adds: “People are also holding on to assets longer and not replacing them at the normal frequency. The positive of this is that many trucks will need to be replaced at about the same time when the market conditions improve.” “Continuing what we started” Despite the significant drop of truck sales in the construction sector, Scania maintained its market share with only a marginal drop. “This is proof that the work that we have started doing, is paying off. And in the years to come, this pay-off will be even better,” says Friberg “Two years ago Scania was not really in the construction market

This obviously has a direct impact on OEMs. According to NAAMSA statistics, sales in the

construction vehicle segment fell by a dramatic 26,5% in 2018. Scania maintained its market share. Anders Friberg, GM: Vehicle Sales & Export says this is proof that the programmes

launched by Scania in the preceding two years are paying off. “In 2016 Scania had

a small market share in this sector – just

Anders Friberg, Scania GM: Vehicle Sales & Export says that even though the truck market had a significant decline, the fact that Scania held on to its marketshare is proof that what it started is paying dividends.

more than 3%. However, with programmes that include segment support,

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Scania’s range of construction vehicles includes 15 models. Various of these have been incorporated into the fleets of the likes of Hillary Construction, Tau Pele, Ditshimega Projects. Scania trucks have recently been incorporated into the Ekurhuleni Fire Department (fire trucks fall under the construction segment).

and was not truly considered a player in this segment. Customers are brand loyal – when the industry is doing well – and will stick to preferred brands. What we have aimed to do with our product and services is to change mindsets,” Friberg continues. “For Scania, the only way to ensure the customers’ success is to offer Solution Based Offerings. “This means that we have to know the customers’ business and where they operate. This will determine the right specification which in turn will optimise the vehicle for the specific application,” says Naude. “When a vehicle is tailored to a specific type of transport, fuel consumption will be optimised – it is a consequence of tailoring. Even though Scania is renowned for optimal fuel consumption, this is also a consequence of tailoring,” Friberg says. “We provide something to the market that gives added value to the customers and makes them more profitable, efficient and cost-efficient. If our customers are successful, we are successful. “Although sales numbers are a measure of success, Scania measures success based on customer satisfaction and feedback,” says Friberg. Scania’s core values (customer first, respect for the individual, elimination of waste, team spirit and integrity) make short term relationships impossible. “We want to focus of long term relationships that are mutually beneficial and build a sustainable business.” What this means for Scania in 2019 Scania is not waiting for the market to turn. “We are going to use 2019 to do a thorough analysis of the construction segment,” says Friberg. Right now Scania is focused mainly on two segments – mixers and tippers, but it has many different applications that it can offer the market. In the four regions (Greater Gauteng, KwaZulu- Natal, Central and the Western Cape) into which Scania has divided South Africa, there are pockets of strengths and weaknesses. “We are going to use 2019 to analyse why we are not selling as many construction vehicles in, for example, the Free State compared to Gauteng. It will be a thorough analysis (surveys and market research) of the customers’ purchasing behaviour and needs towards 2022 – when it is our aim to capture 10% of the construction vehicle market. “If you look at what we have achieved and take into account that we are launching a new product range this year that will

include additional services, this will ensure that the customer can focus on their core business while we ensure uptime and build our marketshare,” maintains Friberg. Although not much can be said about the new product range at this stage, it is called the XT range of construction vehicles and was already launched in Europe in 2016 when Euro 6 requirements necessitated a wider cooling system to accommodate the new emission levels. “We have fantastic existing products, but the new truck generation for construction and mining will be even better,” says Friberg. Strategic approach to product development Scania’s strategic approach to product development enables tailoring, as the OEM continually strives to introduce new features and benefits. The modular system on which Scania is based makes this possible. All Scania vehicles are tailored to be bodied on and this is a well-proven ingredient of Scania’s success. For Scania it is vital to improve the uptime, durability and reliability of its products. “Body building lead times are shortened by adding additional preparation for body work. "We have cross functional body builders training to ensure that bodybuilders know the product before it gets to them. The interface between chassis and bodywork lies at the core of what makes Scania so good. “This is excellent with the current range, but will be even better with the new generation,” says Naude. Currently the range of construction vehicles includes 15 models which include tippers, mixers, hook lifts, skip-loaders, heavy hauliers and logistic vehicles for moving goods between sites. A range of services can be connected to the vehicles. “The support needs are also different depending on who the customer is, what they are moving, where they are located and their operation cycle. You need to be truly flexible in how you provide these solutions,” says Naude. “The flexibility that we have locally without first having to go knocking on Scania head office’s door is of great benefit to Scania. It makes us more flexible, and able to listen to the customer,” concludes Friberg. 

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ENVIRONMENT & SUSTAINABILITY

“Sustainability is very important to us, particularly in a country with so few water resources.”

A century-old decision to drain the Tsitsikamma wetlands has resulted in grave damage. But an MTO project is bringing nature back to this eco gem. REVIVING THE TSITSIKAMMAWETLANDS

T he Tsitsikamma region was once home to impressive wetlands. Those days are returning thanks to an ambitious project restoring the natural order to this area, conserving water and helping local communities. Tsitsikamma is a colloquialism for ‘clear water’ and the region stands up to that claim. But roll back the clock for just over a century and it was even more impressive with wetlands spanning alongside the local mountains. Wetlands are not a common sight in South Africa, taking up less than 3% of its surface area. Yet they are crucially important in maintaining the natural ecosystem and without them, serious problems, including loss of water, start to occur. This was not known in 1917 when a planting project was started to meet the country’s timber needs. The intention was good — doing so safeguarded hectares of indigenous forests. But large areas of wetlands were drained to make space for the trees. Such destructive activities have taken their toll, halving SA’s percentage of wetlands. “Wetland degradation also creates other problems,” explained Jan Huyser, Environmental Manager at the MTO Group. “The wetlands functioned as a floodplain for the water captured by the mountains. Once they were drained, that flow narrowed, eventually creating a donga that is clawing its way upstream.” Wetlands are essentially transition areas between dry land and bodies of water. They include high water tables, fertile soils, aquatic plants and plenty of wildlife. As such, they act as water filters, feed underground aquifers and reduce erosion. Despite their scarcity, wetlands are crucial for sustaining water. They are also highly valuable to local communities for water access, livestock

grazing and recreational uses. The implications of wetland draining eventually resulted in the 1975 RAMSAR Wetland Convention. But the damage had been done. Then when MTO took over the Tsitsikamma lease in 2005, it decided to launch a rehabilitation project. This has two prongs to attack the problem: the removal of alien plants and addressing historical damage, such as plugging drainage ditches and reducing erosion impact. Parts of the project involves impressive engineering endeavours, such as gabions (mesh cages filled with rocks) and weirs (low-level dams to encourage water retention), as well as eco logs to block human-made drainage channels. To date, excluding training, logistics and certain infrastructure, MTO has spent over R11,5-million on the restoration. It also recognised that some wetland problems originate further upstream and has for the past few years been rehabilitating a Tsitsikamma tributary river, located on Fingo tribal land belonging to the Mfengu community. In total, the project has laid down 1 818 m 3 of gabion structures and 349 m 3 of concrete structures, installed over 75 eco logs and cleared 145,5 hectares of invasive species. Overall 2 882 m 2 of wetland banks have already been restored. “Sustainability is very important to us, particularly in a country with so few water resources,” said Lawrence Polkinghorne, CEO of the MTO Group. “Water is a very precious resource and we all have a role to play in its conservation. MTO is committed to environmental sustainability, we see it as a ticket to the game”. 

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Green contract CLEANERS VITAL IN FM Facility management is no easy task. The added pressure of needing to gain and maintain a green status can be overwhelming for even the most efficient facility managers. Understanding which products to use and just how to use them can be a time consuming and exasperating task.

LEFT: Ian Mac Donald from Teliot Cleaning and Hygiene Services, MIDDLE: John Coetzee, CEO of Green Worx Cleaning Solutions RIGHT: Nkululeko Sibiya from Teliot Cleaning and Hygiene Services.

A s a result, it is no wonder that many facilities rely on contract cleaners to manage their facilities for them. However, harmful chemicals and ineffective cleaning may result from the poor management of such contractors. Keeping the working environment free of chemicals and properly green requires hiring specialists who fully understand what that process looks like. Ian Mac Donald from Teliot Cleaning and Hygiene Services states, “Not enough attention is being paid to the cleaning chemicals being used in our offices, shopping centers, hotels, homes, etc. Many of these chemicals are actually worse for the environment as they impact on our water sources and ultimately impact us and future generations to come.” To ensure this doesn’t happen, it is imperative that organisations hire green contract cleaners to manage their facilities. Green contract cleaners are identifiable by their GreenTag Certification. This certification ensures that they truly are functioning at international standards of green cleaning as an organisation. These cleaners have the expertise and the product knowledge to ensure that the proper chemical free products are being used. As well as understanding the correct procedures to follow to limit waste and reduce the potential damage to the environment and employees. “With the water crises we have recently experienced on a global scale, I think it is more important than ever before for facility managers to be educated with regards to the proper procedures for effective resource management,” confirms John Coetzee, CEO of Green Worx Cleaning Solutions. Most facilities utilise a much larger amount of resources than the average home consumer. This places a stronger responsibility on facilities to manage their resources more effectively. This is also true with regards to the size of many facilities. The larger establishments use more cleaning products and also house a larger quantity of people. This in turn makes the potential harmful impact of chemical products larger than that of the average consumer. Mac Donald continues; “As a cleaning company, we often meet with customers who don’t really care what cleaning chemicals their cleaning companies use; all they care about is the cost. We believe and try to educate all our customers and potential customers that we are all responsible for our environment and the impact on our

water sources are becoming more severe. We believe that more emphasis needs to be placed on cleaning products by property management companies.” Selecting a green contract cleaner has other aspects which should be considered as well. Part of being green also depends on building the South African economy and utilising local products so as to give back to and maintain the South African Market. Nkululeko Sibiya from Teliot Cleaning and Hygiene Services confirms that, “… we strive to support local businesses and by doing so we make sure that money spent is kept in the South African Economy”. Within the current global climate, it seems that giving back to and building the South African economy – while protecting and maintaining natural resources – is required to run an effective and responsible facility. “Green contract cleaners who use eco-friendly biodegradable products and who understand the proper protocols and cleaning procedures to effectively clean and manage facilities is no longer a nice idea, but rather a necessity,” concludes Coetzee. In 2016 Green Worx was presented with the Award for runner up in the Green Technology Innovation category of the Mail & Guardian Greening the Future Awards. In the same year, the company won the 2016 South African Frost & Sullivan Award for New Product Innovation. In 2017, Green Worx won the ‘Green Business Award’ at the Mauritian African Leadership Awards and was declared a finalist in both the Sustainability Blank Canvas and Management of Systems awards categories, in The Da Vinci tt100 Business Innovation Awards Programme.  Green Worx Cleaning Solutions is ISO 14001, Global GreenTag, SABS and Green Building Council of South Africa certified and supplies innovative, environmentally responsible, biotechnology products based on the use of natural microbes and enzymes. In such, Green Worx supplies green cleaning and sanitation consulting and solutions, pollution control and environmental remediation products to industrial and commercial entities, as well as to consumers. Green Worx prides itself on its associations with global leaders providing innovative, effective and high-quality products and solutions to meet specific customer needs.

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