Construction World July 2018

The business magazine for the construction industry

JULY 2018

WORLD

CR O WN

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

​Future of DIGITAL PROJECT delivery ​F

SANDTON GATE breaks ground

Enter BEST PROJECTS 2018

GREEN BUILDING isn’t rocket science

The CUSTOMER’S SUCCESS is OUR SUCCESS

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CONTENTS

27 Smart cities are driving sustainability Developers are increasingly incorporating nature into building design. 29 New Namibian wind farm The Ombepo Wind Farm is the first wind farm to be constructed in Namibia. 34 Setting the benchmark for warehouse projects Designed by Paragon, this warehouse is redefining warehouse design. 36 Raising the standard Peerutin has, for two decades, raised the bar for architecture. 42 Office noise hampers staff health and productivity The louder the noise, the greater the impact on health and output. 48 A game changer Bell’s 315SL 4x4 TLB has been a great acquisition for a civil contractor.

06 New engineering trends make engagement vital Construction companies are increasingly faced with new trends. 14 Leading the way for future forward work spaces Office workers are redefining their work spaces. 17 Green building needs common sense – not rocket science Discipline, good planning and communication are what is needed.

22 Innovation and design excellence recognised The cream of the crop of this year Corobrik SAIA Architectural awards. 26 The future of digital project delivery 2D drawings are being replaced with 3D models.

54 Moving the earth for the customer SANY, part of Goscor Earthmoving Equipment, gives customers a choice.

04 14 16 22 26 52 56 REGULARS Property

Marketplace

ON THE COVER

Environment & Sustainability

At the African Construction & Totally Concrete Expo (TCE) in 2016, Scania South Africa partnered with bodybuilder Reimer on a joint stand, while in 2017 it partnered with Liebherr. In 2018 Scania decided to have its own stand to enable the brand to be the champion. This is symbolic of the growth of the Scania range of construction vehicles, now firmly entrenched in the South African construction world. Read the article on pages 18 and 19

Project Profiles

Projects & Services

Equipment

Products & Services

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COMMENT

The recent announcement that South Africa’s GDP contracted by 2,2% in the first quarter of the year, came as a shock to most. After the political euphoria that was created by the election of Cyril Ramaphosa, it is a huge disappointment. However, thinking that political change will bring about GDP growth in a short time, is highly naïve: positive sentiment alone cannot drive an economy. • An audited magazine that has been tuned in to our readers for the past 36 years. • A website with more than 11 000 unique monthly visitors. • A weekly electronic newsletter that reaches 10 000. • A social media presence (for example, we have almost 5 000 Twitter followers). • The annual Best Projects awards that recognises excellence in the entire built industry – the only award of its kind in South Africa. Wilhelm du Plessis Editor

Highlights in this issue

Even though many saw the political change as a positive step, it is by no means a quick fix. The contraction is indicative of the serious economic problems that South Africa has experienced in the last 10 years, including the highly constricting policy environment and a serious infrastructural deficit. The ruling party has a difficult choice to make: allow the private sector to grow the economy by creating a competitive best practice economy or maintain the status quo’s ideologically- infused developmentalism. If they choose the latter, South Africa’s GDP will most likely continue to flatline – or contract further – and the President, widely hailed as the saviour of South Africa’s economy, will then have to deal with being the successive leader of a country with a dwindling economy. For most economists the ANC faces three major issues that can potentially stand in the way of getting the country’s GDP on an upward curve: its labour policy, privatisation and deregulation. Achieving a workable solution for each of these will be no small feat. However, the positive is the realisation that GDP growth requires both political and economic reality … and not just mere sentiment. Serving the construction industry I was honoured to receive the 2 nd runner-up award in the Media and Communications Excellence category of the Africa Construction Awards. Even though it is an award for individuals, Construction World , and its publisher, Crown Publications, have made it possible to create various platforms with which to serve the construction industry so that it can better inform and recognise achievement. Here is what we offer the industry:

@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 & DESIGN Lesley Testa 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: (First Quarter '18) 5 470

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

www.constructionworldmagazine.co.za

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MARKETPLACE

Confidence levels POSITIVE FOR 2018 despite slowdown The results of Consulting Engineers South Africa's (CESA) Bi-annual Economic and Capacity Survey for the period June to December 2017 recently released indicate that expectations relating to industry confidence levels for the first six months of 2018 are still positive, increasing in the last six months of this year.

CESA CEO, Chris Campbell.

T his despite the slowdown in investment by Government and general economic conditions not facilitating growth in the sector with investment by government showing the biggest decline in 2017 since the financial crisis of 2009/2010. 2018 got off to a relatively good start, with economists and market analysts hailing the win by Cyril Ramaphosa in the ANC’s December elective conference, as well as the eventual resignation of ex-president Jacob Zuma boosting industry confidence indexes in the short term.

“In the December 2015 survey, industry confidence levels fell to their lowest level in 16 years. Since then there has been good improvement with the net satisfaction rate improving to 96,3 percent in the first six months of 2017 and falling significantly to 54,4 percent in the December 2017 survey but are positive for 2018 rising to 92,6 for the last six months of the year. This is despite employment in the indus- try decreasing by an average of 12 percent in the last six months of 2017, one of the biggest declines since the inception of the

survey,” states CESA CEO Chris Campbell. Gross fixed capital formation (GFCF) fell by 3,9 percent in December of 2017, the third consecutive contraction, following contrac- tions of 2,1 percent and 3,9 percent in the 2nd and 3rd quarters of 2017 respectively. Investment was negatively affected by a slowdown in government investment, as well as general economic conditions not facilitating growth in the sector, although an increase in confidence to some degree. Investment by general government saw the biggest decline in 2017, with a contraction

Strengthening Gauteng Built Environment team Recognising the increasing pressure on the built environment from growing populations and development in African countries, global engineering and infrastructure advisory company Aurecon has appointed Kolosa Madikizela as its Unit Leader for the Built Environment in Gauteng.

Madikizela has built her 14-year career in the construction, property development and engineering sectors at organisations such as Bigen Africa, Aveng Group, and Nexus Facilities Management Company, as well as Life Healthcare and Shell South Africa in facilities management. Her most recent role was as the Man- aging Director at Pragma, an engineering organisation specialising in physical asset management. “African skylines are going through a period of unprecedented change. Growing populations and digital disruptions are changing how people live, work and play, and I look forward to pursuing ways to grow the Built Environment Unit and take on more work in Africa,” says Madikizela. Ferdi Nell, Aurecon Managing Director Africa, says that the company’s built environment capabilities are funda- mental to the successful execution of its business strategy and Madikizela’s appointment is key to achieving the com- pany’s business goals.

“I am delighted to welcome Kolosa Madiki- zela to lead our Built Environment Unit. She will play a key role in bringing together the right people to make sure that we deliver world-class buildings to our clients, as well as use innovation and emerging technol- ogies that will create future-ready African environments,” says Nell. Aurecon is working on some of the most significant buildings across the property, health, education, manufacturing and infra- structure sectors in Africa. These include some of the largest and greenest commercial office buildings in South Africa, such as Aurecon’s Tshwane office at the Lynnwood Bridge Office Park, “The Towers” in Cape Town, and Atrium on 5 th in Johannesburg. She serves as an industry expert on the advisory board for the Built Environment at the University of Cape Town’s department of Construction Economics and Manage- ment. Previously, Madikizela was an external supervisor to Masters students in the Department of Industrial Engineering at the

Cape Peninsula University of Technolo- gy (CPUT) and a Guest Lecturer at the Department of Construction Management and Quantity Surveying. She served on the industry advisory boards for Industrial Engineering at CPUT and Stellenbosch University. Madikizela has contributed many articles to the African Facilities Manage- ment online website (AFM online) and she is a freelance talk show host at Cape Talk radio station where she covers a wide range of topics from engineering innovation, gender equality and transfor- mation to lifestyle, property development and politics. 

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of 5,5 percent y-y, the biggest y-y contraction since the financial crisis in 2009/2010. GFCF as a percentage of GDP averaged at 9,5 percent in 2017 overall and was 9,3 percent in the 4 th quarter. The National Development Plan (NDP) has, what may seem to be a somewhat unachievable target of 30 percent contribu- tion of GFCF to GDP by 2030. All economic indicators currently suggest that investment in relation to GDP is likely to slow over the medium term, due to slower government spending, financial constraints experienced by SOE’s and continued weak private sector confidence. Industry challenges Campbell cautions that regulation issues, including the procurement of consulting engineering services, remain one of the biggest challenges faced by the industry. Procurement is currently based on price and broad-based black economic empowerment (BBBEE) points, with functionality or quality having a minimum threshold, thus being largely price driven. This is affecting tender prices, as firms sometimes tender below cost in view of the diminished availability of projects. A further challenge to the industry is to find a way to standardise the procurement procedures applied by the different govern- ment departments. “Unlocking greater private sector partic- ipation is seen as a critical element to fast track delivery which will support engineering

fees and as such engineering development in the industry.” Service delivery, especially at municipal level remains a critical burning issue. The consulting engineering industry is threatened by incapacitated local and pro- vincial governments. As major clients to the industry, it is import- ant that these institutions become more effective, more proactive in identifying needs and priorities and more efficient in project implementation and – management. Fee earnings In the last six months of 2017 fee earnings increased by 2 percent compared to the first six months of 2017, which was relative- ly unchanged compared to the same period in 2016. The increase was better than the expected 0,4 percent increase as reported by firms in the previous survey with regards to the outlook for the last six months of 2017. Larger firms reported an increase of 4 percent, while earnings for medium-size firms was 27 percent lower. Smaller firms saw the biggest increase of 17 percent, but micro firms saw a decrease of 4,1 percent. Earnings are expected to decrease in the first half of 2018, with all size firms expect- ing a decrease of some sort. Outstanding payments This remains a serious issue, having a broad-based effect on firms operating in the industry. After having shown some improve- ment in the December 2015 survey, the per-

centage of fees outstanding for longer than 90 days as a percentage of total estimated income (including late payments) deteriorat- ed to an average of 25 percent in the last six months of 2017. It is estimated that around R6,6-billion in earnings is currently outstand- ing after the 90-day period. Industry transformation The appointment of Black executive staff measured by the contribution of Black executive directors, non-executive directors, members and partners as a percentage of total executive staff, increased slightly to 41,5 percent from 37,4 percent and 45,7 percent in the previous two surveys. The appointment of women at an executive level deteriorated to 11,9 percent from 12,8 percent but is still below the 13,6 percent in the June 2016 survey. Of the total women employed in the consulting engineering industry, 2,5 percent were reported at an executive level up from 1,6 percent in the June 2017 survey. Human resources Employment decreased by an average of 12 percent in the last six months of 2017 to an estimated 21, 369 employees in the industry, compared to the first six months of 2017, following the 4 percent increase reported in the previous survey. This is one of the biggest declines since the inception of the survey. This represents a decrease of 8,5 percent compared to the same period in 2016. 

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MARKETPLACE

New engineering trends make ENGAGEMENT VITAL By Richard Vries, GIBB Group CEO

Evolving business models One of the most influential trends we are seeing is the evolution of business models away from traditional models that have remained fairly unchanged over the last few decades. The traditional client rela- tionship for an engineering consultancy involves a client identifying a need and then approaching consul- tants to further define and ultimately solve the problem. South African Consulting Engineering companies are confronted with some fascinating trends that will shape our industry, now, and more so, in the future.

engineer’s traditional role could evolve. In the future, it may be possi- ble that our success as built-environment professionals will depend on how well we adapt to this changing business model, where there is increasing acceptance of risk, increasing levels of competition and less of the traditional, hours-based remuneration model. What renders Chinese companies so effective at this model of doing business is their strong financial muscle and higher risk tol- erance. Projects are financed primarily through Chinese institutions and generally proceed to construction more quickly than for instance through the use of the traditional models predominantly used in South Africa. South Africa remains an environment with a highly reg- ulated procurement process. Necessary as this may be to deal with specific South African public sector procurement challenges and the

lack of equal accessibility to project finance, it may be a constraint on the pace and scale of private sector investment, if not well structured. For engineering companies active in Africa, these changing business models present a new opportunity. At GIBB, we have responded by establishing a project development division – GIBB Capital – focused on developing projects from concept to implementation and working with various partners in the project devel- opment space. Empowering SMMEs Another emerging engineering trend is a regulatory environment geared to empower South Africa’s small and medium-sized businesses (SMMEs). Current preferential procurement regulations stipulate that 30% of certain categories of state procure- ment must be set aside for SMMEs. Government may further set pre-qual- ification criteria that favour SMMEs in tendering processes. This trend will affect larger consulting practices. There will be an evolution of how large companies function, their procurement models

Amongst many others, the need could include constructing a power, water or transportation asset. In the traditional model, the consultancy would then charge the client for the time spent on the project. Risk primarily rests with the client in this model. We have noticed this traditional client-consultant business model evolving, particularly outside South Africa, as Chinese construction con- glomerates enter the African busi- ness landscape. The Chinese model is primarily shaped around – design, build and finance; in most instances, operation and maintenance of the asset is retained by the client. This model assumes a much high level of risk for the contractor, but is well received by most client bodies, espe- cially public sector clients, for whom obtaining approvals for increasing project budgets due to unforeseen risks are cumbersome and time con- suming. To compete now, engineer- ing companies have to re-evaluate their appetite to take on risk, in order to address the need for development

of infrastructure on the continent and become part of the project owner (or in some instances even lead as the project sponsor). The traditional tendering model for procuring engineering services will remain for some time to come. However, large scale projects such as the South African Renewable Energy Independent Power Producers Programme is an example of how the consulting

as well as their view of core and non-core functions. This is a positive development that will help government bring emerging business into the mainstream. It will create employment in small enterprises, but we will also likely see a downsizing of larger firms. Unfortunately one of the unintended consequences of the '30% regulation' being of benefit to qualifying small enterprises (QSE’s),

These emerging trends will bring opportunities as well as tough challenges. As in every industry, there will be competing interests and opposing views.

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may be that companies that are well positioned to grow and employ more staff would artificially limit their turnover to the R50-million threshold. The disadvantages of marginally growing your business beyond R50-million means an immediate reduction of your company turnover (unless you are able to immediately supplement the 30% of loss in sales through new business. Not easy to do if one con- siders that the new emerging business now has to compete with established large players higher up on the project complexity scale. What is more likely to happen is that the firm would fall back to a QSE level. What may be required in the context of a developmental state would be to create a 'continuum of growth' where different bene- fits continue to accrue as business grow and employ more South Africans up to the envisaged levels of creating Black Industrialists as per DTI’s stated policy. The aim should be to reward to fast growing QSE and not encourage them to stay small. Whether ultimately more jobs are created with the QSE artificial ceiling or many more jobs are lost, remains to be seen. Transferring risk A third trend emerging in the engineering sector is for more risk to be transferred to engineering companies. Engineering companies traditionally operate under Professional Indemnity (PI) insurance for the service they provide. Traditionally, the risk would be limited to twice the fee paid to the professional or a capped limit of the value of the indemnity. This assisted the insurers to quantify the risk and therefore price it appropriately. An insurer could then provide cover up to a certain value if, for instance, a struc- ture collapses due to a design failure. We have noted a recent trend in clients expecting unlimited lia-

bility insurance from professional service providers. This places engi- neering firms in a commercially undesirable position of assuming a disproportionate risk to the fees being earned. A more reasonable approach would be where the client requests this higher level of liability exposure, the level of insurance is increased and therefore the professional fee is increased commensurately with the additional insurance premium. Industry bodies, such the Black Business Council in the Built Environment (BBCBE) continue to engage client bodies around this major concern to professionals. In a highly competitive industry, where the consultant is in most instances evaluated on price rather than value-add, there is a fierce price competition. Some professional services companies become tempted to sign off on the unlimited risk specified, despite knowing that the PI provided by insurers is limited. Clients are of course not telling professionals to do this, but the fierce competition in the sector encourages it. Where the client is a government body, it could be argued that the government is acting in society’s interest by trying to pass on all the risk to its service provider. However, in cases like these, there is room for more engagement before the interpretation is widely adopted by clients as the norm – particularly because it could have unintended consequences and affect the structure and pricing of the market. Disproportionate risk could have a negative impact on the industry. Resolving it will require conversation with insurers, technical people, client bodies as well as policy makers. These emerging trends will bring opportunities as well as tough challenges. As in every industry, there will be competing interests and opposing views. However, I am confident, that some of the chal- lenges can be resolved through adequate consultation and a high level of trust between the various stakeholders. 

MARKETPLACE

Eighth Diamond Award reflects continued excellence Corobrik’s dedication to the delivery of quality products and ongoing customer satisfaction has seen them receive the illustrious PMR.africa Diamond Arrow Award for the eighth consecutive year.

Visitors will also discover Saint-Gobain’s innovative solutions through the building itself. From the floor to the ceiling and walls, the experience centre and office space incorporate different Saint- Gobain materials that can improve comfort. The flooring area has been coated with Saint-Gobain Weber self-levelling screed. Saint- Gobain Gyproc and Ecophon acoustic ceiling panels were installed to improve acoustic. Visitors will also be surprised to discover lami- nated glass solutions that can switch from translucent to transpar- ent immediately thanks to a liquid crystal. Saint-Gobain is a driver in the development of the Kenyan fabric through the services and solutions it delivers to improve living com- fort for the greatest number of people. The Group creates local employment and offers a wide range of training courses to upskill professionals within the construction in- dustry. “In Kenya, the average unemployment rate is about 11%. It is critical for us to provide distributors, craftsmen and artisans with the necessary technical skills on new construction technology. In 2018, we trained 170 people from the different sectors within the construc- tion industry in Kenya on the installation of ceilings, drywalling and insulation,” says Sachin Ramkasoon. Saint-Gobain also supports the development of local communi- ties. In 2014, the Saint-Gobain Initiatives Foundation contributed to the complete refurbishment of four classrooms at Nagum Primary School where 370 pupils take turns for their lessons. Local compa- nies were consulted to perform the work.  Kenya Architect Nathan Kureba (centre) unveils the new Saint-Gobain Experience Centre at 9 Riverside building in Nairobi. With him is Saint- Gobain Directeur Marketing International, Slawomir Szpunar (left) and CFOO sub-Saharan Africa, Denis Simonin (right). excellence, while also acknowledging the hard work that goes into running a successful business, and we feel this is achieved year-on-year.” The suppliers are rated across 11 industry aspects, including ability to meet orders, Black Economic Empowerment, competitive pricing, deliveries meeting promises, environmentally friendly solutions, flexibility, range and quality of products, response to queries, reputation and sustainable development practises. The ratings are then tallied with PMR.africa handing out Diamond, Gold, Silver and Bronze awards to companies, institutions and individuals that have excelled throughout the year. Corobrik is honoured to be taking an award that recognises the service and quality products it delivers to customers on a daily basis. Shangase said this comes down to a culture of employee value creation which has entrenched an ethos of constant high performance across its factories and centres nationally. All Corobrik’s manufacturing processes meet international standards with sustainability underscoring all business directives. The past decade has seen Corobrik investing in sustainable equipment such as advanced extrusion technology at the Phesantekraal factory to reduce energy consumption and improve the structural building material; new robotics at Rietvlei and Lawley factories; and the conversion to a natural gas kiln at the Lawley factory. This has resulted in reduced emissions and earned Corobrik carbon credits for the effort. Corobrik also complies fully with the National Environment Management Act of 2014, with its own Environmental Impact Access implemented at each quarry. 

Disseminated by South African consultancy and research company, PMR.africa, the annual awards are given to high-performing organisations ranking tops after an industry evaluation is conducted. “We are incredibly proud to have received the prestigious Diamond Award for being the highest rated brick supplier countrywide,” said Musa Shangase, Corobrik’s Commercial Director. “These awards strive to enhance competitiveness and company Pictured from left: Shauneez Naidoo, Musa Shangase, Lauren Moll and Teboho Mokoena of Corobrik proudly display the Diamond Arrow Award they received from PMR.africa.

Representative office in Nairobi Saint-Gobain openened its experience centre at its new representative office in Nairobi. More than a mere showroom, this space will enable the visitor to discover and experience how Saint-Gobain building solutions can make a difference in people’s daily life. Throughout the year, thematic events will be organised to tackle specific topics within Kenya’s building and construction industry. Conceptualised to be informative and engaging, the experience centre is fitted with digital access points and practical experienc- es around comfort. “We invite visitors to feel, touch, see and hear. Through different experiences to explain sound or thermal transmis- sion, we try to demonstrate how our solutions can have an impact on our daily life,” says Sachin Ramkasoon, Business Development Director for East Africa. Digital displays show why comfort matters. The DB station, a mobile application, enables the visitor to experience various acoustic performances of conventional wall compared to Gyproc walls.

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MARKETPLACE

Seeing new hope South Africa’s new political leadership has brought new optimism to the South African construction industry – but the wounds of excess capacity still fester, says Norman Seymore, CEO of the Chryso South Africa Group and vice-president of Chryso globally. Chryso SA is the parent company of a.b.e. Construction Chemicals.

Seymore says although Pres Cyril Ramaphosa has only recently taken over the reins politically – and the land expropriation issue could still pose challenges for the ANC government – the local construction industry now seems to have a sense of 'cautious optimism' about its future. “There is the expectation that long- delayed infrastructural projects – which were budgeted for many years ago – could finally be released to provide more work in the building and ancillary sectors. Chryso is, in fact, already seeing an upsurge in building activity with increasing demand for our products particularly in the Western Cape where water conservation will spawn several urgent and major building projects, for renewable energy projects in the Eastern Cape, and for upgrading of the Transkei infrastructure, to name just three examples. The industry is now also more confident that the long-term promise contained in the National Development Plan will now gradually be fulfilled.” But Seymore says the damage done by the cement industry’s excess capacity is by no means over, particularly in the ready mix

concrete sector which is currently facing very difficult trading conditions. “Excess capacity and depressed trading conditions have swept ready mix producers into a ‘price war’ caused by the proliferation of players in the market and the fact that users of ready mix are operating in a do-or-die market where pricing rules. Adverse operating conditions in the ready mix sector impact negatively on Chryso as the industry is an important market for our Group’s products.” Facing such difficult local conditions coupled with the weakening of the rand, Seymore feels Chryso’s decision to seek new markets elsewhere in Africa has been fully justified and - to expand the Group’s export drive even faster - he has personally taken over responsibility for driving exports to sub-Saharan Africa. New Chryso/a.b.e. distributors have been appointed in Botswana and Mozambique with more to follow in other African countries such as Angola, the DRC, Tanzania and Uganda. Chryso established its own East African operations based in Nairobi two years ago. “Chryso’s other priority for future growth is new products and here the Group

intends widening its offerings in decorative concrete, structural fibres, waterproofing, environmentally-friendly dust suppressant products, and our product range for the mining sector.” The opening of Chryso’s Centre of Excellence testing laboratory and research facilities at the Group’s local head office in Jet Park has also paid dividends. The new Centre features ultra-modern testing equipment and temperature control systems to offer cement, concrete and construction technology as an added-value service to customers. “The Centre provides tailor-made solutions to match specific applications and customer requirements and recommends suitable additives and dosages to boost concrete mix performance and contain costs. The new facility – which complements the work done by accredited testing laboratories – is the biggest of its kind in the local admixture market. Customer support has been overwhelming,” Seymore adds.  Chryso SA Group chief, Norman Seymore, says there is now ‘cautious optimism’ in the construction sector – but also ominous levels of competition.

The damage done by the cement industry’s excess capacity is by no means over, particularly in the ready mix concrete sector which is currently facing very difficult trading conditions.

The winning certificates were awarded based on the results of the National Survey of Consulting Engineering Firms, a peer research- based method of determining the best companies in each category. Through its annual awards, PMR.Africa seeks to acknowledge a company’s vision, integrity, values, competence and empathy, all of which contribute to ethical and sustainable business practices. According to PMR.Africa the purpose of the awards is to enhance competitiveness both locally and internationally, to create excellence and set a benchmark in industry and to acknowledge staff for their role in contributing to a winning company. SMEC South Africa was placed first overall in the following categories for companies with more than 400 employees: • Civil Consulting Engineers • Structural Consulting Engineers • Combined Civil & Structural Consulting Peer researched Awards SMEC South Africa walked away with three Diamond Arrow awards at the PMR.Africa annual awards function held in Johannesburg on 21 May, 2018.

Accepting the winning certificates on behalf of SMEC South Africa were (from left): Bongani Mthombeni-Möller, Strategic Business Development Executive and Gauteng South Regional Manager; Kresen Manicum, KZN Regional Manager and Executive Board Member; and Andre van der Walt, Gauteng North Regional Manager and General Manager Energy and Resources Africa Division.

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MARKETPLACE

I nspired by the Earth Charter – which comprises four pillars, namely respect and care for community of life, ecological integrity, social and economic justice, as well as democracy, non-violence and peace – the Earthrise Trust was founded as a non-profit social initiative, dedicated to building a new development paradigm that advances the ideals and principles enshrined in the Charter. As part of its founding principles, the Earthrise Trust has since committed to approach to the development of a sustainable community through eco-farming, the Earthrise Trust also acquired a Hydraform blockmaking machine to help the community self-build the much-needed houses. As part of its objective to support the Naledi Village, settled at the Rustlers Valley Farm in Ficksburg, Eastern Free State, in pursuing a holistic HELPING COMMUNITY meet sustainable development goals

rebuilding and guardianship of the historic Rustlers Valley Farm in Ficksburg, Free State. As Gino Govender of the Earthrise Trust explains, the 273-hectare Rustler’s Valley Farm, which has since been purchased by the trust, has a rich social history. Govender says the Earthrise Trust has since undertaken to work with local residents to build a sustainable, rural community at Rus- tlers Valley Farm. Earthrise believes that job creation and increased levels of income are of paramount importance to creating a rural culture of self-worth, independence and pride in this community. As a result, Earthrise has established Rustlers Valley Farm as a sustain- able, cooperative, commercially-viable, precision farming initiative which involves elements of communal and large-scale commercial farming, both at Naledi and Rustlers Valley Farm respectively. While eco-farming was deemed to form the economic base of the community, proper housing was also a necessity to satisfy the basic social/human needs of the community’s population. “We brought the Hydraform team to the farm to demonstrate the capabilities of their blockmaking machines, through some videos. We also had our own team travel to Hydraform’s offices in Boksburg, Gauteng to learn more about the technology and how it could meet our community develop- ment targets,” says Govender. After an extensive consultation process, both Earthrise and the Naledi Village community were not only thrilled by Hydraform’s technology, but most importantly the company’s understanding that the machines were sought for a good cause, which was to set a rural community on a self-reliant sustainable economic and social path. “Hydraform understood that this was not just about Earthrise, but it was more about the Naledi Village, and they therefore went out of their way to negotiate a very good price,” explains Anton Chaka, the Chaka says they eventually chose to purchase the Hydraform M7MI Super blockmaking machine. “We got a very good deal from Hydra- form, especially considering a couple of other things which were thrown into the mix, such as free transport and training,” says Chaka. Initially the machine was used to produce blocks which were used in all the new construction projects such as an ablution facility, the Naledi Arts Centre and toilets for the local primary school. “To date, the team has produced about 30 000 blocks on demand since we started production with our M7MI. Once we get the title deeds to our land from the government, then the next big project of each household is to save money and build permanent homes of their dreams for their children. This is the Naledi of the future,” says Chaka. For Chaka, the beauty of this machine is its mobility, which allows it to be moved from one site to the other. The Hydraform M7MI is a popular choice with most Hydraform clients. The machine includes a compression chamber, diesel engine and a pan mixer, all mounted on a robust trailer for transport. This machine is ideal for remote areas. It can produce 2 200 blocks per eight hour shift, equating to +/- 57 m² of walling/day and 12 x 50 m² houses/month.  Naledi Village Chair. Package deal

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PROPERTY

Leading the way for FUTURE FORWARD work spaces

T he benefits of this work method have been lauded for increasing productivity and work-happiness in employees. While it seems work may have left the building, companies and employees are still in need of future-forward spaces to connect, col- laborate and share ideas. As a result, many office developments are responding to this need by providing considered work environ- ments that emphasize openness, transcend the idea of the daily grind and encourage a healthy work life balance in campus-style and community orientated spaces. In a 2017 article for ‘Director’, Monica Parker a behaviourist and founder of organisational change consultancy, Hatch, whose clients include Microsoft, Deloitte and the BBC says, “People always need a place to come together, and while coffee shops are goodbye to the nine-to-five, many professionals around the world are now untethered from their desks, able to work remotely from anywhere and at any time thanks to WiFi, smartphones and a whole host of other tech savvy tools. Rapid technological advancements have gifted people with the ability to redefine their work lives. Saying

great, people still like to have a place they can call a work home. I don’t think work has left the building – there is still that communal driver.” Today, companies are understanding more and more the importance of nurturing productivity through the significant benefits of open and flexible office environments. These benefits include creativity, knowl- edge sharing, teamwork and coordination. While Google, Apple and various other tech advanced companies have been operating like this for decades already, South Africa is just beginning to ride the crest of the flexible and open work wave. Cue Park Square, Nedbank’s iconic R-1billion mixed-use office and retail development located within uMhlanga’s New Town Centre and thriving commercial hub. Bordering the popular CJ Saunders Park and featuring innovative commercial and retail offerings, Park Square with its considered restaurants, shops and coffee bars will offer a connected work cul-

ture incorporating a unique leisure offering seamlessly linked to a vibrant and open urban square. The Four Star Green Star-rated building, due for completion in October this year, includes 36 000 m² of commercial space, 4 000 m² of retail and an impressive 3 500 m² open public piazza. Furthermore, it’s easily accessible to pedestrians, offers abundant parking and is close to a GO!- Durban Integrated Rapid Public Transport Network (IRPTN) stop. Ken Reynolds, Nedbank Property Finance Divisional Executive, property expert and Director of Nedport Developments, a subsidiary of Nedbank and Park Square’s developers says, “Projects like Park Square are effectively turning the South African urban planning paradigm around. This innovative and con- nected space encourages people to think beyond the boardroom, take time to unplug and to connect with one another. “By similarly drawing the surrounding communities for shopping and relaxing, the overall effect is a sociable, communal space that emphasises a convenient and balanced work life experience.” Park Square has already secured a series of high profile tenants including Nedbank, Spar and the IBV International Vaults. Spar This world-class destination offers a win-win situation for both, where staff benefit by working in an open, future-forward environment and companies reap the rewards on their bottom line.

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SA’s only commercial property leasing app Emira Property Fund has launched V2.0 of its innovative app – the first and only one of its kind in South Africa that provides real-time information about properties to make it easier for brokers to conclude leasing deals successfully.

The update of the free Emira app is based on the patterns and preferences of over 300 property brokers who used the revolutionary early version of the app, first launched some 18 months ago, in October 2016. The improvements have resulted in a simpler, extra streamlined, more user- friendly and visually enhanced application with improved searchability of the schedule of space available at Emira’s properties. This now makes it even easier for brokers to find what they are looking for, with real-time information flow. Geoff Jennett, CEO of Emira, says: “We believe this app is a competitive advantage for brokers, and thus for Emira too. The response from commercial real estate brokers to the earlier version of the app was very positive. Now the refreshed, rebranded app is keeping with rapidly evolving technology. We believe it will ease the leasing process for brokers even further by putting the information they need and value the most at their fingertips. The updated app will ensure that doing business with Emira continues to be a rewarding experience for brokers.” One of the most popular functions of the app has proven to be the access to Emira’s vacancy schedule. This function shares up-to-the-minute information with brokers about the availability of its properties, giving them immediate updates with changes. For space to let in the Emira portfolio, the app lists premises and their rental rates. These are searchable and filterable by size, region and property type. With the new version of the app, this schedule includes additional search criteria, with more regions and subsectors, all

also includes a category for rural retail leasing opportunities. Another top feature of the app has proven to be its downloadable resources. This enables brokers to provide their clients with an information pack that gives them a full picture of the property. Now the app also highlights Emira’s innovative leasing initiative aimed at selected properties for the office market, The Intelligent Relocation, which offers tenants eight months of their total first year’s rental in incentives on a three-year lease, or 14 months rental in incentives on a five-year lease. It is made up of a rent- free period for fit-out and settling in, and a tenant installation allowance for layout available on the app includes information packs, brochures and information sheets for The Intelligent Relocation properties. The helpful data provided covers specific properties, asking rentals, parking ratios and rentals, and availability – everything that brokers need to help their clients make a well-informed, competitive decision. Brokers have the option to download a comprehensive range of information to their device or have it emailed to their own inbox, or directly to their clients. This includes Emira’s full vacancy schedule and important documents like its ‘offer to lease’ and ‘broker mandate’, as well as more information about Emira. In this fast-paced around-the-clock world, brokers can access this information on the Emira app, any time of day or night. Of course, this ease of working is also echoed in Emira’s in-personal broker resources, with three dedicated broker liaisons serving as points of contact for the broking community.  configurations and customisation. Material supporting this initiative

Marketing Manager, Travis Anderson says, “Customers no longer want to shop in large centres. They want the conve- nience of parking, walking straight into the building, doing their shop and walking straight out. "We love Park Square because of its convenient location in a fast-developing area and its proximity to the CJ Saunders park which will allow us extra exposure as we piggy back off activities held there.” Reynolds says, “If you can imagine your day like this; arrive at work with your barista-made coffee in hand, in a reusable mug of course, use the morning for plan- ning and responding to mails followed by a quick jog around the park at lunch, tuck into an artisanal deluxe sandwich bought from the Spar then attend afternoon meet- ings and drinks in the Square with your new client? Then you have imagined a day at Park Square.” Not forgetting profitability, a positive work environment increases productivity and in turn can have a significant impact on a company’s success. A reduction in staff downtime having amenities within walking distance of employee’s desks also reduces stress, as well as the lunch-hour rush with staff being able to avoid having to leaving the campus for their various requirements – from healthcare to lunch and even a spot of recreational shopping. Reynolds says, “Park Square offers mutual benefit for the employer and the em- ployees with its unique commercial and lifestyle aspects." This world-class destination offers a win-win situation for both, where staff benefit by working in an open, future- forward environment and companies reap the rewards on their bottom line,” he concludes. 

able to respond to the evolution of Emira and its portfolio. For example, it now

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ENVIRONMENT & SUSTAINABILITY

Renewable energy journey LEVERAGES TRANSFORMATION

A battery storage project Brand Engineering recently completed is that of an off-grid battery system at the Kruger National Park, which is one of the largest energy storage systems in the southern hemisphere. It is able to store 1 780 kWh worth of electricity and supply 410 kW worth of peak power. “Brand Engineering is the only South African contractor with experience and exposure to all types of RE technologies for commercial and utility scale,” states Kriel. “We bring our resources and knowledge of the latest technology to improve and ulti- mately benefit the developer, and we guaran- tee specified power generation, output and carbon savings for the projects in which we are involved.” It is fully compliant with the REIPPPP’s socio-economic requirements and in fact has historically exceeded stipulated targets for local employment. “Employing local workers, transferring and developing skills and uplifting the communities in which we work are integral to our company mission and have resulted in a track record reflecting positive labour relations, which is of benefit to all parties concerned.” According to Energy Minister, Jeff Rade- be, local community shareholding in the newly signed projects amounts to 7,1% of the total value, which amounts to an impres- sive R1,63-billion. ISO 9001:2008 certified for Quality Management Systems, Brand Engineering has won numerous awards specifically for RE projects over the last four years. They are Reticulation Contractor of the Year (for the past three years) and Best Contributor to Energy Efficiency (for the past four years). 

The signing in April of 27 Power Purchase Agreements (PPAs) worth R56-billion has finally resolved the lengthy renewable energy (RE) impasse in South Africa and demonstrates renewed impetus in the country’s RE journey. It is the initial step of the Department of Energy’s new, clear RE roadmap, which has brought much needed certainty to national energy policy and will fast track investor confidence and boost growth in the economy.

T his is according to Herman Kriel, Group Managing Director for Brand Engineer- ing SA, specialist electrical engineering contractor. Established over 45 years ago, Brand Engineering, together with its BBBEE company, Besamandla, operates in Southern Africa and the African continent. It is responsible for the generation of 472 MW of power for the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) projects and related RE initiatives. “An integral element of the DoE’s REIPPPP is the generation of local employ- ment opportunities. Furthermore, it serves to promote transformation, ensure partici- pation by Black industrialists and increase Black business ownership,” says Kriel. “The signing of the PPAs and ensuing long await- ed implementation of bid windows 3.5 and 4 will create approximately 60 000 new jobs over the next three years. The new, clear RE roadmap will help leverage a key objective of the National Development Plan (NDP) which is to grow an inclusive economy.” The majority of the projects are expected

to reach financial closure in the coming few months, with some having closed shortly after the PPAs were signed. Having carried out the highest number of utility scale solar RE initiatives in South Africa, Brand Engineering, together with Besamandla, is geared for the implementa- tion of the revitalised REIPPPP projects. The organisation has become a key construction partner for RE developers and Integrated Power Producers (IPPs), to which it offers a one stop service. It carries out balance of plant (BOP) engineering, pro- curement and construction (EPC) on solar fields; electrical EPC on wind farms; full EPC on grid connections as well as electrical, control and instrument (ECI) installations for Concentrated Solar Power (CSP). Brand Engineering is also undertaking a number of battery storage initiatives. “The use of battery storage systems to provide consistent solar power output and manage peak loads is a big game changer for RE,” Kriel contends. “The decreasing costs of these batteries and other RE technologies are in turn further reducing RE costs.”

The recent signing of 27 Power Purchase Agreements (PPAs) demonstrates renewed impetus in the country’s RE journey. Energy Minister, Jeff Radebe says: “To date we have concluded 91 projects with a capacity of 63 000 megawatts. On average, 15% of this energy was delivered to the power system during system peak periods."

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