Construction World January 2018

The business magazine for the construction industry

FEBRUARY 2017 JANUARY 2018

WORLD

CR O WN B I R O

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

BARLOWORLD POWER adds local lighting masts to RENTAL FLEET

INNOVATION CUTS TIME AND COST on N2 project LARGEST 5-STAR GREEN STAR SA rated building HEAVY-LIFTING ON Mthatha River bridge

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CONTENTS

04 Unlikely architectural winner The Stortemelk Hydropower Project was recognised by SAIA.

14 Bringing nature into building design Developers are increasing incorporating nature into structures. 18 Largest 5-Star Green Star SA rated building Discovery’s new head office in Sandton is SA’s biggest green building. 24 Micro-tunelling for Cape Flats 3 bulk sewer This project employed various innovative design aspects. 30 Heavy lift for Mthatha River Bridge Maiden heavy lift for Concord Cranes’ 750 t hydraulic crane. 34 Innovative engineering for tourism development From pie in the sky to reality: an elevator down Graskop Gorge’s cliff face. 36 Innovation cuts time and cost of N2 project The many innovations on the N2 project between Mtunzini and Empangeni. 40 Provincial Main Road 577 Critical access for local residents to jobs and economic activity.

06 Award for uplifting communities Royal HaskoningDHV keeps on winning in 2017.

08 SA’s cities of the future: are we ready to deliver? Can cities cope with the massive growth? 09 Final straw for smaller builders? ‘Getting as much for as little payment as possible’ poses huge problems

10 Agile. Holistic. Transformed. CW interview’s Concor’s Riaz Saloojee.

REGULARS

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Marketplace

Property

Environment & Sustainability

ON THE COVER

Projects & Contracts

Barloworld Power has filled a gap in its rental offering with a new range of South African designed and manufactured lighting masts. The first stop for Barloworld Power Rental’s new all-South African lighting masts was at Sasol Secunda, where 38 units spent two months lighting up the site over the annual shutdown. The lighting masts formed part of a package of 110 rental machines, including Cat generators ranging from 40 kVA to 500 kVA, delivered by Barloworld Power. Read the article on pages 22 and 23.

Equipment

Products & Services

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COMMENT

T his better than expected growth has economists revising growth figures upwards for 2017. It bodes well for South Africa, given the fact that the country has been placed on a sovereign credit rating downgrade by Moody’s Investor Service. The Reserve Bank and IMF had forecast a growth rate of 0,7% in 2017 while the World Bank and Treasury forecast growth of 0,6 and 0,7% respectively. Even though the growth was weaker in the third than in the second quarter, this is the first time since 2015 that GDP grew at more than 1% for two consecutive quarters. This trend may well be a sign that South Africa’s economic recovery is gaining traction and some economists go as far as saying that the economic recovery in 2018 will surprise many. Unfortunately the good news is tempered by the RMB/BER Business Confidence Index for the fourth quarter. This index was at 34 and even though it is an improvement from the seven and a half year low of 29 in the second quarter We start 2018 on a positive note: According to economists, South Africa’s GDP growth was 2% (quarter on quarter) in the third quarter of 2017. This was primarily due to a 44% growth in agriculture, forestry and fisheries. Mining and manufacturing also had a favourable impact on the GDP. of 2017, the sentiment in the country is still decidedly depressed. The Index surveys 1 600 senior business people in the building, manufacturing, retail, wholesale and motor trade sectors. The fieldwork for the survey was done during the first three weeks of November 2017– before the Standard & Poor downgrade of South Africa’s local currency rating to speculative grade. According to this Index, building confidence fell from 44 to 34, in the process reversing the gains made in the third quarter. This drop is due to the challenging conditions that exist for non-residential contractors. However, the sentiment amongst residential contractors was at 43 – high when compared to non- residential contractors where the sentiment contracted by 11 points. The level of business confidence is, according to RMB, consistent with the private sector’s wait-and-see approach. The index will only be jolted upwards when there is more political certainty such as the emergence of strong political leadership that will implement market-friendly policies.

Highlights in this issue

CW’s interview with Riaz Saloojee about Concor’s USP and optimism for the future – page 10

How innovation cuts time on a road infrastructure project – page 36

The positive socio-economic impact of the new Main Road 577 in KZA – page 40

Wilhelm du Plessis Editor

@ConstWorldSA

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EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & DESIGN Lesley Testa CIRCULATION Karen Smith

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TOTAL CIRCULATION: (Third Quarter ’17) 4 874

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

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MARKETPLACE

Unlikely architectural winner

The Stortemelk Hydropower Project recently received the 2017 Award for Architecture from the South African Institute of Architects for the Free State Region. The hydropower project is the implementation of one of the three projects includ- ed in the Botterkloof and Merino II feasibility study by global engineering and infrastructure advisory company Aurecon for Stortemelk Hydro, with Renewable Energy Holdings (REH) as the project developers. As the EPCM (Engineering, Procurement, and Construction Management) contractor, Aurecon was responsible for the detailed design, construction super- vision, ECO monitoring, contract administration and programming, as well as the Health & Safety oversight. Earthworld Architects was subcontracted by Aurecon for the architectural de- sign of the upper part of the power station. The brief from the client was to create a building that blended seamlessly with the landscape while also celebrating the responsible production of electricity. It comprises a number of building skins, including corten weathering steel and polycarbonate sheeting, to create different experiences of the plant from the exte- rior and from within the interior. Slotted window openings in the façade create the perception that the production of electricity is spilling out into the environment, creating a beacon in the landscape. Upon completion, the project team managed to create a space that showcases spectacular light quality and successfully blends into the landscape, while cele- brating the plant’s functions. The 4.4 MW hydropower plant near Clarens was constructed between two CESA appoints new President At Consulting Engineers South Africa’s (CESA) 64 th Annual General Meeting held at the CESA Seminar in Johannesburg on 7 November, Neresh Pather fromMott MacDonald Africa was inaugurated as President of the organisation for the next two years, succeeding Lynne Pretorius. Sugen Pillay, Managing Director of Zitholele Consulting was elected to serve as Deputy President of CESA for the same period.

Pather, a Statutory Director of Mott MacDonald Africa, currently heads up the Transportation Sector in their Africa Business Unit. He holds a BSc. Engineering (Civil) degree and a MSc. Engineering degree in Transportation and as such has led many transport and strategic infrastructure projects within the company. He has more than 24 years’ experience in the industry. Prior to joining Mott MacDonald, Pather was the “CEO of PD Naidoo & Associates Consulting Engineers (Pty) Ltd” for a period of 12 years. He joined the company in 1997 and held a number of positions in the capacity of Director before becoming the CEO. Pather paid tribute to outgoing CESA President, Lynne Pretorius saying, “Thank you for your contribution to CESA, for your commitment, sacrifice and hard work in dealing with some hard-hitting issues. CESA has been on a trajectory to answer some of the challenges our industry currently faces

and you have led us ably from the front. Thank you to your company, ITS Engineers and to your family for allowing you to serve the industry for the past two years. “I am truly humbled by the privilege bestowed on me to lead our industry and I hope that CESA will be able to renew and reinvent itself to increase our relevance to our clients and especially to our young professionals who will ultimately take over the leadership of the industry. "Our work on the Transformation of the Industry will definitely continue as we seek to broaden this in the years ahead, to ensure that CESA becomes more inclusive, relevant and able to put the industry at the forefront through ‘Effective Ethical Leadership", he proclaimed. Incoming Deputy President, Sugen Pillay graduated from the University of Natal with a BSc. Hons in Civil Engineering, sponsored through a bursary scheme offered by one of our member firms. He has since completed

Neresh Pather, CESA President.

a Post Graduate Diploma in Civil Engineering and an MBA (cum laude). Pillay is registered as a professional engineer, with 20 years’ experience in most facets of civil engineering including the project and programme management of multi-disciplinary projects, as well as design and implementation of roads and civil services, municipal infrastructure waste water treatment work power stations. 

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existing dams without affecting their operations and stability, which is also a notable achievement for the project team. A great example of a renewable energy project in Africa “We are honoured to receive this award. There is considerable potential for hydropower development in Africa and the Stor- temelk Hydropower Project is a great example of a renewable energy project that will benefit thousands of people in the community for years to come,” says Bertrand Rochecouste Collet, Aurecon Project Director. André Eksteen from Earthworld Architects comments: “We are very proud of working with Aurecon and REH on this project and have ensured that the end product resulted in a non-traditional power plant that blended with its environment and caused minimum visual impact. The shell of the building is fragmented, with light spilling into the main generator room through ‘crevices’. A polycar- bonate skin was used and covered with ‘fragmented’ corten cladding. Not only does this allow natural daylight in, but it also becomes a metaphor when light from the plant itself spills into its surroundings at night. This beacon of light is quintessential to REH’s philosophy of sustainable development with minimal environmental but maximum sustainable social impact.” The construction commenced in October 2014 and, 22 months later, reached commercial operations date in July 2016, on time and within the project budget, without using any of the project contingencies. “It is rewarding to be involved in a project that delivered many firsts for hydropower stations in South Africa. I would like to thank the client, my team, our architects and everyone involved this project that inspires Africans and enhances the sustainability of the region,” concludes Collet. 

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MARKETPLACE

Sundran Naicker (SAICE President), Peter Sibanda (Project Director, RHDHV), Dumisani Biyela (uMgungundlovu District Municipality), Terrence Hlongwane (uMgungundlovu District Municipality), Bheki Mbambo (uMgungundlovu District Municipality), Sbongiseni Hobo (Hidrotech), Sanelisiwe Ngobese (Project Manager, RHDHV), Rolf Kieck (Hidrotech), Sindi Majola (Hidrotech), Nokuthula Dube (Nokuthula Dube & Associates) and Zamokuhle Ngubane (Resident Engineer, RHDHV).

Award for UPLIFTING communities Royal HaskoningDHV, a Level 1 B-BBEE company, continued its winning streak at the 2017 South African Institution of Civil Engineering (SAICE) National Project Awards held in KwaZulu-Natal in October 2017.

accredited training facilities were provided, career guidance was offered to a number of dedicated students and a series of Corporate Social Responsibility initiatives were initiated as part of the project. There was maximum utilisation of local labour with 50% of those employed being women. As an exit strategy, the project provided for accredited training in water and wastewater reticulation with participants attaining NQF Level 3. The qualifications obtained will enhance work opportunities for these trainees in the future. In keeping with Royal HaskoningDHV’s brand promise of ‘Enhancing Society Together’ the project benefited the ePhatheni community in many ways including the donation of dictionaries to a number of communities in the area. Five Early Childhood Development (ECD) Centres/Crèches were identified at ePhatheni in Ward 6 where the training of teachers and supervisors was carried out including health and safety and first aid training. In addition, donations of furniture, educational material, toys, clothing and first aid kits was made to all 5 ECD centres. Provincial Main Road 577 Provincial Main Road 577 for KwaZulu-Natal Department of Transport and the BRT Lanes: Corridor C3 for eThekwini Transport Authority was developed to provide critical access for local residents to jobs and economic activity in the New Germany and Pinetown areas of Durban. Part way through the contract the first dedicated Bus Rapid Transit (BRT) lanes in Durban were added to the design and construction process. It is to their credit that the KwaZulu- Natal Department of Transport and the eThekwini Transport Authority as well as the designers and contractors not only met the challenge head on, but came through the experience proud of their achievement. Stakeholder engagement was key to the project with the project labour force being drawn predominantly from the local community within the 4 surrounding municipal wards. A training centre was established which provided construction related skills training to the local labour and community who were then in a position to be employed by the contractors engaged in the construction of this and other phases of the project. A total of 637 local community persons were employed and 10 local subcontractors were appointed during the duration of this impressive project. 

T he ePhatheni Bulk Water Supply Scheme was awarded the Most Outstanding Civil Engineering Community-based Project for 2017. In addition, Main Road 577: The Challenge of the KwaDabeka Valley, a joint venture between Royal HaskoningDHV and Henwood & Nxumalo was highly Commended in the Technical Excellence Category for Most Outstanding Civil Engineering Achievement of 2017. Both of these projects had been winners in the Regional Awards held by SAICE earlier in the year. Salani Sithole, Managing Director of Royal HaskoningDHV states, “We are proud to be part of projects that support community development and social upliftment. In line with our motto ‘Enhancing Society Together’ we believe that by creating innovative solutions in partnership with our clients we empower communities by providing access to economic opportunities through the development of infrastructure”. ePhatheni Bulk Water Supply Scheme The ePhatheni Bulk Water Supply Scheme for uMgungundlovu District Municipality supported by the Department of Water and Sanitation was funded through the Municipal Infrastructure Grant funding programme. The ePhatheni Bulk Water Supply Scheme project involved amongst other things, effective and successful co-operation between Royal HaskoningDHV, the community, interested and affected parties including local authorities, non- government organisations and the labour force. The long-term aim of this project is to satisfy the potable water requirements for the ePhatheni area up to 2031. This has improved the quality of life for the community facilitating increased economic growth opportunities. As part of the socio-economic development of the area, an Expanded Public Works Programme (EPWP) was implemented,

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MARKETPLACE

SA’s cities of the future: ARE WE READY TO DELIVER?

With Africa’s urban population growing at a rate of 3,5% per annum and 65% of growth happening in smaller cities and urban areas, pressure on our cities and their infrastructure is increasing.

boost business; enable convenience and encourage suburban activity; and bring work closer to home – mitigating the time and cost of travel. They must also reduce pressure on land and existing infrastructure pressure in towns and cities so as to ensure long-term sustainability.” Harripersadh adds that an additional element of social consciousness must be added to this. Integration and functionality must enable communities to thrive and help to combat the poverty that is becoming systemic in our urban areas by creating access to key infrastructure. He emphasises that the massive scale of development needed – and the time this will take to deliver – means that decisions about investing in fully functional urban areas that meet integrated needs must be made now. “Government and the greater cement industry need to work harder to clarify policy uncertainty, commit resources and finance, and unlock procurement processes to initiate both new build projects and upgrades and maintenance work on critical infrastructure including schools and clinics, roads and transport, water and sanitation, among others. This will ensure we get the best possible value from infrastructure throughout its lifetime, as opposed to starting to rebuild after disasters or system failure.” With Gauteng alone currently planning vast new human settlements; healthcare, education and recreation facilities; and how best to integrate land-use for residential, commercial and industrial purposes, the future vision is a compelling one – if players work together to create a conducive collaborative environment. Harripersadh notes that these are some of the conversations PPC is looking to continue with government and SAFCEC beyond this year’s conference. “We need to work together to take advantage of local development opportunities and shape the cities and urban areas we live and work in. As an industry, it’s up to us to drive this change. Only then will we ensure that future cities are sustainable spaces where all our communities can thrive,” he concludes. 

G iven that the median age of African cities is less than 20 years old, Rajesh Harripersadh, PPC Key Accounts Manager, notes that the future of our country and continent is critically linked to the success of our cities. This has to start with infrastructure development – meeting current needs while gearing for the medium and long-term future – an important discussion at this year’s recent SAFCEC (South African Forum of Civil Engineering Contractors) conference in Gauteng. Themed #ReadyToDeliver, SAFCEC’s 2017 conference unpacked some of the most critical challenges facing the local engineering and construction industries at present, including when the sector can expect to see critical spending decisions made on key infrastructure upgrades and new builds.

“With Africa set to reach its demographic dividend by 2050 and our country’s population becoming increasing youthful, cities currently find themselves in a pivot space: facing a massive challenge or opportunity,” says Harripersadh. “For South Africa and Africa to capitalise on and realise this opportunity however, we cannot plan and execute as we have in the past. We also have to make critical decisions now – without hesitation or delay in committing to key projects.” Changes in how we live, work and interact in cities, coupled with space and sustainability constraints as well as mobility and technology requirements means that a new approach is needed for design and infrastructure creation. “Urban areas of the future cannot necessarily be modelled on cities of the past. They must simultaneously

City Infrastructure Planning will become crucial as most growth is happening in cities.

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Final straw for SMALLER BUILDERS? The alarming increase in South Africans at all walks of life opting for a policy of “getting as much as they can for as little payment as possible” is contributing to the decline of a building industry already plagued by late or no payments, says Uwe Putlitz, CEO of the Joint Building Contracts Committee (JBCC).

enforce payments of a debt by the agreed due date. Associated with this is the option to involve an ‘adjudicator’ where a certified payment is disputed. “Implemetation of the proposed ‘prompt payment’ best practice will go a long way to ensure sustainability of all invoved in the industry as currently many subcontractors and suppliers become ‘bankers’ for those higher up on the supply chain where amounts due are paid after 90 days or longer – or not at all. This leads to avoidable bankcruptcies and the consequent loss of already scarce skills, forcing some of the now unemployed into desperate measures – even crime – to survive. “The problem is aggravated by the attitude in a society where it has become the norm to get as much as possible for as little payment in return – resulting in compromises in design and execution, and failure to provide an accetable and comprehensive service for a product to function effectively over its lifespan. Consumers have opted for higher and ongoing maintenance costs instead of a better intitial expenditure. “This applies equally to the building and construction industry as well as any other industries. All that’s different is the terminology used,” Putlitz adds. 

P utlitz says late payments for work done on a building contract – even by just one of the parties involved – inevitably has spiralling and serious consequences, particularly for smaller subcontractors who in desperation can take this ‘grab what you can’ attitude further by entering a world of crime. “In terms of common law, the client or employer must pay the service provider in full on successful completion of a building project. Also, in common law, there are no changes to the scope of the project and hence, theoretically, no reasons for delays and/or additional costs. “But this is not as simple, nor always practical, when it comes to building contracts. This is why the industry drafts ‘standard forms of contract’ to amend certain common law provisions to, for example, make provision for interim payments. “Building projects involve a number of entities creating a supply chain. The client usually appoints a professional team to conceive, design and implement a project. The various consultants are bound by a form of contract that specifies payment milestones on the completion of a project stage, often translated into monthly

payments to suit the commercial world. Such design is then executed by a team of different contractors who purchase materials and other goods from numerous suppliers. “If each party to a contract makes stipulated payments – on time – all involved should get paid within a reasonable and defined period of time. But if just one party chooses not to make a payment of a certified amount, or to delay such payment, the payments to others in the supply chain are disrupted,” Putlitz explains. He says this problem was identified more than 10 years ago in New Zealand and other Asia-Pacific countries leading to the outlawing of ‘pay-when-paid’ clauses in building contracts. This principle spread to Europe and many other contries, including recently to South Africa where the Construction Industry development Board (cidb) is drafting Best Practice Principles to

Time can be disastrous to the profits and survival of all parties in a project. Late payment causes a spiralling effect that affects all involved, warns Uwe Putlitz, CEO of the JBCC.

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MARKETPLACE

AGILE. HOLISTIC. TRANSFORMED. Riaz Saloojee is the Executive Deputy Chairman and Group CEO of Concor Holdings and has overall responsibility and oversight of the Concor Group. He is a soldier by training and well experienced in the corporate world through his past leadership positions at SAAB, DENEL South Africa and the Swedish Defence and Electronics

Company. He reports directly to the Board of Directors and shareholder representatives, and is responsible for the strategic direction of the Concor Group. Construction World asked him about the direction of the company, transformation and the status quo of the South African construction industry.

Riaz Saloojee, Executive Deputy Chairman and Group CEO of Concor Holdings.

How do you use your background in the military to benefit Concor? The military teaches you discipline, focus and to lead from the front. It also teaches you how to be part of a team, and to be a role model for your troops. In that sense it is not different from the task at hand. What is your definition of leadership? It is the example you set for others – and is related to your value systems, ethics, morality, and how you conduct yourself in both personal and public spaces. What is your main role? My main role is to be the link between the organisation and Concor’s Board of Directors from a governance perspective. The second is to ensure that there is business continuity and that operations are executed effectively, that projects are delivered on time, on budget and to the best of our ability. Lastly it is to find ways to grow the business within the strategic objectives set by the Board. What is the strategic direction of Concor? This is based on a number of things. As a company Concor needs to maintain operational efficiencies as business

continuity is vital. The company has to be grown organically: We have to ensure that it is optimally structured and organised, that resources and assets are optimally utilised. The strategy is also to grow the business inorganically: How to use current capabilities to look at other business opportunities within the environment in which we operate. This may include strategic partnerships or joint ventures that can be entered into or acquisition targets that can reinforce and enhance Concor’s value proposition as an infrastructure provider. Lastly, the company has to be transformed to reflect the new ownership which now makes it the biggest fully transformed organisation in this environment. Concor wants to leverage its transformation credentials, but the organisation has to reflect the new strategic growth path that we have set for ourselves internally. What sets Concor apart? Concor is a unique organisation because it is focused on construction and infrastructure. It has not diversified into natural resources and other sectors. We have always been focused on the core business – and that is what distinguishes us. In addition, Concor has a long and

rich track record which means that it has experience, the correct human resources and skills to tackle projects in and outside South Africa. What are Concor’s key focus areas for the short and long-term? In the short term the key focus is to stabilise the organisation as the economic environment is not conducive to investment. Government is experiencing challenging times in terms of resources available for investment in infrastructure programmes. It is not an easy environment, but it is a wave we have to ride. In the long-term our external strategy – our strategy into the rest of Africa – has to be more aggressive. By increasing our footprint into Africa, we can take advantage of the huge need for infrastructure as the continent develops. The development of economies and societies always begins from an infrastructure development perspective – without it there can be no economic or social development. What are the challenges of a construction company in the South African context? The eccentricities of the local and international economic and investment climate make for a difficult context.

FROM LEFT: An aerial overview of the Medupi project; road work being conducted in the Eastern Cape; and computers were donated to the Muntonokudla Secondary School in KZN.

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About Concor Concor is a diversified infrastructure construction organisation comprising seven business units and core competencies in building, infrastructure, opencast mining and property development. As a member of the Southern Palace Group, the company is Level 1 B-BBEE accredited business and one of the largest players in the Southern Africa infrastructure construction sectors.

The new BCX facility in Midrand.

If economies are growing, GDP is good, there is employment, confidence and investment. If economies are being impacted negatively, whether it is due to local or international factors, companies have to be able to ride it out.

emphasis on transforming the company, we do so in a responsible way so that it does not negatively impact on business continuity. The country has historical legacies that we have to deal with, especially when it comes to skills. It is not only a responsibility of the government to address these issues, it is also the private sector’s responsibility. In conjunction with government, we have to make sure that we allocate the resources to create an enabling environment to reduce the historical gap. What does Concor mean with ‘holistic development’? Holistic development is not just the development of the company. It is also our contribution to the development of societies. When we talk about a ‘developmental state’, we want to create more jobs and we want to inject more investment into the economy, and we want to create greater opportunities for our people. It is an integrated approach of how to become a player in society – not just within the narrow confines of our industry. How do you develop the communities in which you operate? Within the imperatives of transformation and empowerment, it makes sense that you empower the communities in which you operate. This does not only entail temporary employment, but creating a sustainable environment going forward so that the skills that you are conveying and the supply chain that you are developing, will impart the knowledge and human capital that will be beneficial for future economic activity. We are committed to empowering such communities, but empowering them in a sustainable way. How will Concor build a sustainable business? You must have the confidence of your client base, something that you achieve by being consistently competitive, producing good quality, committed to transformation and

when there is credibility in what you are doing. Concor is in it for the long haul – we are not here to reap benefits as quickly as possible. One of the core principles for Concor – apart from adding value for shareholders and its employees – is that we contribute to the development of communities, societies and countries in a responsible way. With all the factors that are impacting negatively on the environment we have got to be at the forefront of being a responsible industry player. This is non-negotiable. Is there still a place for public private partnerships? I think that there still is a significant role for PPPs where access to capital, resources and a strong balance sheet are prerequisites for the rollout of a megaproject. One cannot rely solely on government resources or private sector funding for infrastructure development – sometimes a project is so big, that one cannot do it alone. What is Concor’s cross border expansion plans? Concor it is not merely looking for business opportunities in Africa, executing a programme and exiting. Our value proposition provides turnkey solutions, so the project has to be something that is integrated in a very real strategic partnership – a project with mutually beneficial employment and environmental benefits for all involved. When will the industry see an upswing? Although we are not there yet, the industry will start seeing a bigger injection into the economy from government with a more integrated economic development plan. This will give confidence to the economy and encourage local and foreign investment. It is not an easy environment at the moment and will take some time to rectify itself, but I am confident it will. 

How can a company be agile in a difficult environment?

One can only be truly agile in this environment by creating the kind or

organisation that can respond to the lean times and the good times. Agility is also the ability to respond to the needs of the client – whether it is the public or private sector – in an efficient and competitive manner, at the same time providing the efficiencies, professionalism and quality that is going to be the competitive advantage. In short: it is about being flexible, to downscale or upscale, and to provide innovative and competitive solutions. Concor has a ‘comprehensive strategy that aims to achieve meaningful representation’. Explain this. In this sector, Concor is leading the initiative to effect meaningful transformation and empowerment, not only from a shareholding perspective, but in terms of reflecting the demographics of our country. The company aims to create an enabling environment within the Concor entity which will give opportunity to people to express themselves so that qualitative empowerment is created. How challenging is achieving and maintaining the right level of skills in the construction industry? It is vital. Although it is important that the optimal level of skills is necessary for the proficiency of the company, it does not, in any way, contradict our objective of transforming the company and skills base to reflect the demographics of the country. There has to be robust mentorship programmes, succession planning, skills development, and young talent identification. Although we place much

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MARKETPLACE

Andre Niemand, technical advisor: Mining at PPC Slurry (far right), joins the PPC Slurry team for a group photo at the official handover of the three new Scania mining tippers.

Ruben Govender key account manager – Mining at Scania South Africa (centre), looks on as Amos Mabetha, engineering manager at PPC Cement, hands over keys to one of the drivers at PPC Slurry.

PPC Slurry boosts its SCANIA MINING TIPPER FLEET In a move that clearly underlines its total migration from the use of conventional yellow metal haulers, PPC Slurry has further added three more units of the construction-type Scania mining tippers. The new acquisitions bring to seven the number of Scania’s G410CB8x4EHZ mining tippers operating at Slurry.

Anders Friberg, general manager – Vehicle Sales & Export at Scania South Africa (centre), looks on as Amos Mabetha hands over the keys to one of the PPC drivers.

C onstruction World attended the handover ceremony at PPC Slurry in Mafikeng, North West Province, on 12 December 2017, where Andre Niemand, technical advisor: Mining at PPC Slurry, stated that Scania’s willingness to tailor the trucks to Slurry’s unique specifications, and the lower total operating costs, were the major reasons behind the buying decision. In terms of operating costs, Niemand highlights that as much as a 20% saving on maintenance costs is being achieved, compared with the conventional range of rigid haulers the company used to run. The truck’s lighter body also translates into increased payload and lower fuel consumption. Massive fuel savings, as high as 50% compared with the previous range of conventional yellow metal haulers, are being realised. Following extensive consultations between Scania South Africa and PPC Slurry, several improvements have been made to the new range of tippers recently delivered. The major improvement relates to the bin,

which was previously a major concern on the early Scania units Slurry bought. Scania took Slurry management to about four body builders and Slurry eventually settled for Benla Enterprises, which ticked all the right boxes in terms of meeting the customer’s needs. The bin has since been designed in line with Slurry’s expectations. A double hydraulic cylinder was one of the key motivators of the sale as it addressed both safety and dumping speed concerns. Niemand says the dual hydraulic cylinders have since improved speed of tipping and stability of the bin. Early trials have indicated an improvement of about a minute in tipping time compared with the previous bins. The material used to make the bins is also suited for real heavy duty mining. The lifetime of the product has since improved through addressing all the stress points in the body. Inside the bin, to reduce carryback, bin corners have been engineered to a 'bath tub' effect to allow for smooth flow of material. 

Charnie-Lee Adams-Kruger, key account manager – Mining at Scania South Africa (centre) looks on as Amos Mabetha hands over keys to one of PPC Slurry’s drivers.

PPC’s Kiln 9 project, which kicked off in October 2015, will increase cement production at Slurry from 1,2 to 1,9 million tonnes per year. The truck’s lighter body also translates into increased payload and lower fuel consumption.

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‘Paper chasing’ threatens concrete’s reputation The Concrete Institute (TCI) has expressed concern about an increasing trend among professionals to ‘chase paper’ rather than seriously expand their knowledge of concrete.

In most cases these students will fail and not have gained anything substantial from the experience. A few may scrape through, but are then soon found wanting in industry as they will not be able to meaningfully apply the little knowledge they have gained. “There can be no short cuts to becoming a good concrete technologist and that is why the School recommends that the student starts his or her education at the right level and only steps up to the next level when sufficient appropriate experience within the industry has been obtained,” Roxburgh stated. He said the more than 130 000 items in The Concrete Institute’s Information Centre bear testament to how broad the subject of concrete technology is. “Detailed knowledge on a large range of topics is needed by a concrete technologist. Fresh and hardened properties of concrete, aggregates, admixtures, mix design, testing, durability, special mixes and production are just nine topics out of the 59 subjects covered in the Advanced Concrete Technology (ACT) programme presented by the School. This is the level of education these professionals should be aiming for.” The ACT programme is staged over a period of six months and a candidate wishing to be successful would need to have served his time in industry and lecture rooms before attempting the ACT course. Roxburgh urged professionals to avoid taking the short cut to job security through paper chasing which ultimately could ruin their careers or have calamitous effects for their employers. 

John Roxburgh, lecturer at the TCI School of Concrete Technology, says the number of building industry professionals who are now attending classes at the School, merely because their employment on projects require stipulated certification, are increasing. “This trend does not bode well for those in the concrete and related industries as handing over control of concrete matters on a major construction project to relatively unskilled professionals, holding only the minimum certification, could end up in disaster. Retrenchments and overall scarcity of jobs in this industry have resulted in only the most skilled and educated retaining their jobs, or being employed for new projects. As a result, the School of Concrete Technology has noticed many students attending courses purely merely to obtain a certificate rather than expanding their knowledge. Paper chasing for job security is understandable but it could, in the long run, be detrimental to the students’ future and – should calamities occur – also the reputation of the construction industry,” Roxburgh cautions. “The school has always advocated a stepped approach to concrete technology education. The courses are set at five different levels of competency and knowledge. A student should start at an appropriate level to not miss out on important key concepts and practices. Having successfully completed a course, a reasonable amount of time should be given to acquiring appropriate practical experience in industry. In this way, a student will get a holistic concrete technology education which makes him or her much more valuable to industry. “Sadly, we have many candidates insisting on doing courses for which they do not have necessary knowledge or practical experience to successfully complete.

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PROPERTY

Bringing nature into building design Construction and nature might not automatically go hand in hand, but more and more developers are moving towards incorporating it into building design.

By Nicholas Stopforth, Managing Director of Amdec Property Developments

This was evident in this year’s nominees for the World Architecture Festival (WAF) awards ceremony that celebrated global architects across 68 countries and innovation in design. The 10 th annual WAF took place in Berlin mid-November. Buildings on the 2017 shortlist – across 33 categories – featured creative ideas for natural ventilation and light, as well as water-saving and energy-efficient solutions. Another global trend on the rise is rooftop gardens, springing up in major city centres. Hubs like Hong Kong, Tokyo, Rotterdam and New York are becoming known for urban farming initiatives to boost food resources. This coincides with dramatic growth in mixed-use developments featuring apartments, hotels, shops, gyms and restaurants as developers look to create green spaces innovatively. Closer to home, Johannesburg has long been considered the world’s largest man- made urban forest, boasting over 10 million trees. But could Cape Town be playing catch up? Its city’s skyline is set to change as it sees its first environmentally-friendly mixed-use development come to fruition in 2020. Harbour Arch is being built on the foreshore, by the Amdec Group, that developed Johannesburg’s iconic and award- winning Melrose Arch. The most eye-catching feature of this 5,8-hectare mixed-use precinct will be the

complex’s leafy rooftop towering over the city’s harbour. Sustainability and eco-friendly innovation will be a key focus area with green building initiatives including refuse recycling, water- saving devices, rainwater harvesting, a centralised district cooling facility and low- energy LED lighting. There is a rise in walkable mixed-use precincts with the potential to maximise the efficiency of energy and water usage, rather than buildings in isolation. Which is

why we’re bringing the global phenomenal of new urban architecture to the city – where you live, work, play and stay in a safe, convenient, sustainable and community- focused environment. The development will also boost the economy, with the first phase creating up to 2 500 construction jobs alone, 350 jobs will arise from two Marriott branded hotels, retail and lifestyle spaces destined for the site. Upmarket residential apartments and boutique offices space will top its offering. 

M1 Place’s new lease on lifestyle Growthpoint Properties’ R85-million revamp of M1 Place in Marlboro, Sandton, has converted an ageing retail warehousing property nearing the end of its lifecycle, into a modern, vibrant retail park.

conference, eventing and exhibition space design. The building of 2 000 m 2 features a multifaceted, dedicated event space for conferences, an avant-garde business centre with conference suites and dedicated meeting rooms. A highlight is its multiuse rooftop venue overlooking the iconic Sandton Central skyline. The Galleria comes fully equipped with cutting-edge production facilities and a full range of technical, décor and catering services. The upgrade of M1 Place was no simple project, with a specific challenge being delivering the refurbishment while its established retailers were still operating. “This meant the project needed

The fully-let property is perhaps best known as the location of United Furniture Outlets and United Fashion Outlets because of the excellent visibility these brands enjoy from the M1 Highway. M1 Place is superbly located minutes from Sandton Central, with outstanding highway frontage and excellent access from Eastern Service Road. The one-year upgrade and expansion project has modernised the retail park and increased its size from 13 800 m 2 to 23 000 m 2 . The revamp has also enabled each of its trio of original tenants to expand into bigger spaces, as well as adding three new names to its mix. Engelbert Binedell, Industrial Division

Director for Growthpoint Properties, explains: “M1 Place is a prominent and highly visible property asset, and it is home to great businesses. However, it had become outdated in recent years. We identified its refurbishment and expansion as a good investment to unlock better performance from the asset and extend its lifecycle. This strategic upgrade is already achieving its intended benefits.” M1 place has been reimagined as vibrant retail destination focused on décor and fashion, and it is home to Sandton’s newest event space. Located in the new extension of the retail park is The Galleria, an architectural masterpiece that sets the benchmark for

to achieve minimal disruption from construction activity and a phased development approach was key to this,” explains Leon Labuschagne of Growthpoint’s Industrial Division.

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CONSTRUCTION WORLD JANUARY 2018

New European headquarters

Over 23 years, Atterbury has successfully developed real estate across South Africa and on the African continent. Since 2014 they have expanded their activities into Europe, starting out in Austria and now concentrating operations in Leiden from where the development of prime commercial, retail and residential property in Europe is being effectively managed. The distinctive ‘Leiden Central Offices’ building is strategically located at the intersection of the historic centre with all its inner-city facilities and Leiden’s central train station. With only a 15-minute train ride, Amsterdam Schiphol Airport is in close proximity, making traveling throughout Europe easy and fast. Atterbury Europe’s CEO Henk Deist: “As our business grew into a meaningful size, we decided that from an economical and practical perspective our activities should be centrally headquartered in Europe. The Netherlands was chosen, not only for its competitive fiscal regime, but also for its access to top professional advisors and the Central Offices’, Atterbury Europe will expand its operations particularly in the Mediterranean and in the upcoming eastern European region. Atterbury Europe opened its new European headquarters in Leiden recently. The South African property developer focuses on shopping centre investments and retail development opportunities in Europe. From the distinctive office building ‘Leiden

Chris van Voorden (left) and Henk Deist CEO of Atterbury.

Investment Agency (NFIA) and the City of Leiden, Innovation Quarter’s Director of Foreign Investments, Chris van Voorden welcomed Atterbury Europe in Leiden. Van Voorden says: “The arrival of this highly rewarded South African property developer with an impressive track-record and portfolio, underlines our continuously improving business climate. We have noticed a growing interest from South African companies setting-up business in West Holland. Besides linguistic and cultural similarities, maybe also our direct approach in conducting business is a unique characteristic our countries share. With our partners, we are pleased to help Henk Deist and his team establish useful contacts and support them in their European growth ambitions.” 

fact that the Dutch use English as their main business language. We are five employees in the office, that is when we’re not travelling – four South Africans and a Romanian, on the lookout for the first local to join – we have enough space for growth.” Based in Leiden Deputy Major Robert Strijk of the City of Leiden: “We’re very pleased that Atterbury Europe is well aware of the attractive Dutch business climate and concluded that Leiden offers great opportunities. The city is an ideal, solid and hopefully prosperous basis from which they can expand their operations in Europe and I have no doubt the Leiden office will soon feel like ‘Die Klubhuis’ for their employees.” On behalf of the Netherlands Foreign

Internally, the building was completely gutted and renewed, with everything refinished to modern specifications from lighting to tiles. Externally, the building’s glass façade was fully upgraded and modernised, as was the brickwork on the façade of the property. This ensured the existing main property matched the façade of the new building created for The Galleria. Also, the M1 Place’s resource efficiency was boosted by installing energy-efficient lighting and some lower-energy air-conditioners. 

Engelbert Binedell, Industrial Division Director for Growthpoint Properties.

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PROPERTY

POSITIVE RESULTS for SA’s largest homebuilder Balwin, South Africa’s largest homebuilder focusing on large scale sectional-title residential estates in high-growth, high-density metropolitan nodes in South Africa’s major cities, released its interim results for the six months ended 31 August 2017.

B alwin launched four new developments in the first half of the year with 14 developments now underway. The average selling price of R1 218 088 per unit was higher during the period and supported by the transfer of apartments at The Polo Fields and Paardevlei Square, which are flagship developments that have experienced good sales levels. Steve Brookes, Chief Executive Officer and founder of Balwin said: “Demand for our product remains strong and sales are tracking our expectations with 1 015 apartments already pre-sold for the second half of the year. “Four developments experienced delays in obtaining certain council approvals and this impacted our performance negatively as fewer developments came to market for sales. Good progress has been made since the period end regarding the approvals and construction is on-track.” Revenue increased 19% to R894-million driven by good sales volumes which were in line with forecasts. However, delays were experienced in obtaining certain council approvals at four new developments (The Blyde, The Whisken, The Reid and Ballito Hills) which resulted in construction delays and therefore the handing over of an anticipated 300 apartments to clients. The Company also invested extensively on major civils and infrastructure works ahead of the construction of apartments starting across three large new developments. These factors resulted in a lower gross margin of 32,4% and profit declining 6%

to R163-million. Balwin continues to target a gross profit margin of between 35-40% through the entire lifecycle of a development. The Company has centralised its procurement processes with the establishment of a new procurement department which has already unlocked significant cost savings. “We remain highly innovative and continuously drive initiatives to differentiate our product. A new business segment was launched to generate annuity income, including through partnerships to implement solar energy solutions, the leasing of education facilities to experienced and robust operators, storage solutions and fibre infrastructure within the Balwin estates,” commented Brookes. The fibre infrastructure model is being run through Balwin Fibre, a new subsidiary of Balwin Properties Limited, that will own all Fibre infrastructure across Balwin estates going forward with the aim of becoming a large fibre network operator in South Africa. Balwin operates in diverse locations across high density urban nodes. During the period, Balwin established its office in Umhlanga which earmarks the penetration of Balwin into KwaZulu-Natal. Ballito Hills is the first development in the region. The development launched for sales with more than 150 sales achieved to date and the first phase expected to be registered early in the 2019 financial year. Significant progress was made on the Waterfall properties with all regulatory approvals obtained for The Polo Fields

Steve Brookes, Chief Executive Officer and founder of Balwin.

development on which phase 1 and 2 were handed over in July 2017. Sales at the Kikuyu development have also been outstanding with the first two phases handing over in November 2017. A total of 643 sales were achieved across our Waterfall developments. The Cambridge in Johannesburg north was sold out. “We are mindful of the challenging economic conditions and have been agile in responding to market dynamics. A number of initiatives are under our control to adjust our model effectively including the configuration of our apartment blocks, the pace of development and pricing points to maintain healthy sales levels. Careful capital allocation and cautious cash flow management also remain priorities to ensure optimal execution across all developments,” added Brookes. Balwin declared an interim dividend of 10 cents per share, in line with its policy to distribute 30% of after-tax profit to shareholders. “Looking ahead, the increased scale brought about by the new developments, the delayed projects coming onstream, costs controls, operational efficiencies and the benefit of new annuity income initiatives such as fibre, solar energy solutions, storage and education will support the company’s performance. We will also continue to focus on delivering on our rental model through strategic alliances such as the one announced with Transcend in August,” concluded Brookes. 

We remain highly innovative and continuously drive initiatives to differentiate our product. A new business segment was launched to

generate annuity income, including through partnerships to implement solar energy solutions, the leasing of education facilities to experienced and robust operators, storage solutions and fibre infrastructure within the Balwin estates.”

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