Construction World July 2019

MARKETPLACE

The way AfriSam complies with the new carbon tax is aimed at encouraging the appropriate behaviour of consumers.

ENCOURAGING APPROPRIATE BEHAVIOUR With South Africa’s carbon tax in force from 1 June this year, AfriSam is providing customers with transparent pricing and the ability to make greener choices.

A ccording to Richard Tomes, Sales and Marketing Executive at AfriSam, the way the company complies with the new carbon tax is aimed at encouraging the appropriate behaviour of consumers. Rather than apply a blanket price increase, AfriSam is allocating the amount of carbon tax due on each bag of cement. The carbon tax is a levy that varies according to the amount of carbon emitted in the manufacture of a product. The different cement brands in AfriSam’s range contain varying amounts of clinker – the most energy-consuming element of cement. This means that the carbon footprints of the brands differ from each other. “We are taking a transparent and responsible approach to the new tax,” says Tomes. “By showing the amount of carbon tax payable on

each specific bag of cement, our customers will still see the base price that we are charging. This avoids any confusion about how much of the final price is going toward the tax.” He notes that this approach will also make it easier for customers to identify the AfriSam cement brands with lower carbon footprints. “We believe that a tax should not just be a punitive tool, but it should also affect behaviour in society,” he says. “Just as cement producers are working hard to reduce carbon emissions, so the end- user can also play their part by choosing an environmentally-friendly brand.” While certain specialist cements demand higher clinker content, he says AfriSam increasingly uses extenders to create high- quality cement brands with lower environmental impact. 

CONSIDER MEDIATION TO SAVE TIME AND MONEY IN RESOLVING DISPUTES It is possible to resolve million-rand disputes, saving time and energy, without incurring excessive legal costs. Through mediation, it is even possible to achieve this and retain a beneficial commercial relationship with the counterparty. Barry Herholdt, Associate: MDA Construction and Technology Attorneys M ediation is most successful when executed using the right approach, techniques and procedure to ensure a good settlement between the parties, but most importantly, to achieve an outcome that satisfies both parties. relationships over the long term. Mediation includes the effective implementation of a favourable settlement outcome, which can be easily achieved when the process is steered by an experienced and well-trained mediator. More importantly, mediation requires both disputing parties to be willing and open to seeking a settlement or resolution. The fact that all parties involved can be

This requires a well-educated, knowledgeable and trained driver – the mediator. His or her knowledge of mediation techniques and procedures and how they’re best applied plays a crucial role. In Commercial Mediation: A User’s Guide , a South Gauteng High Court matter, MB versus NB is discussed, which recognises that mediation can produce remarkable results in the most unfavourable of circumstances, especially when conducted by one of the several hundred people in this country who have been trained in the mediation process. A major advantage of mediation is that it can save costs, compared to other dispute resolution procedures contained in standard form construction contracts like adjudication, arbitration or court litigation. A second advantage is that resolution of a dispute can be achieved in less time. Mediation is designed and envisaged to be a speedy process compared to other available dispute procedures because mediators work to encourage the parties to seek solutions, each side is also more likely to be able to address their own interests and needs, including reputation management. In typically adversarial litigation proceedings, the parties do not focus on finding a workable solution. Mediation can protect business relationships and minimise deteriorating relationships between parties. In fact, it can even strengthen and grow existing

bound by strict confidentiality, creates a safe environment and encourages the parties to make full and honest disclosures. All in all, mediation is an attractive dispute resolution mechanism when well applied. A quote from Commercial Mediation aptly sums it up: “The success of the process lies in its very nature. Unlike settlement negotiations between legal advisors, in themselves frequently fruitful, the process is conducted by an independent expert who can, under conditions of the strictest confidentiality, isolate underlying interest, use the information to identify common ground and,

by drawing on his or her own legal and other knowledge, sensitively encourage an evaluation of the prospects of success in the litigation and an appreciation of the costs and practical consequences of continued litigation, particularly if the case is a loser.” 

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CONSTRUCTION WORLD JULY 2019