Construction World May 2019

MAY 2019

COVERING THE WORLD OF CONSTRUCTION

WORLD

CR O WN

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

INNOVATIVE BLASTING techniques for HAZELMERE DAM

STAMPEDE ROLLERS supplied and supported by KEMACH EQUIPMENT

Jewel City RENEWS JOBURG CBD

BEST PROJECTS 2019: first call for entries

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CONTENTS

06 Construction mafia derailing projects Gang-related activities across the industry have spread like wildfire. 08 Planting and harvesting Dennis Vietze, MD of Wacker Neuson sub-Saharan Africa, answers 10 questions. 11 SA to face unexpected bill for poor infrastructure projects Some 80% of large infrastructure projects are delivered late or over budget. 14 Is enough being done to preserve water? South Africa, a water scarce country, will become unhabitable by 2050. 19 Contemporary apartment block unveiled A new development on the border of Houghton and Rosebank. 24 Jewel City invigorates six Joburg CBD blocks Redeveloping six blocks of the CBD that have been closed to the public for decades.

26 Oxford Parks's second phase Concor Buildings has kicked off the second phase of the Oxford Parks project. 28 The concrete for Maputo Bridge The concrete for the 3 300 m Maputo Bridge had to be durable and sustainable. 30 Dispensing justice A new court building in Booysens redefines the traditional notion of such buildings.

36 Innovative dam projects Jet Demolition’s innovative work at Hazelmere Dam. 38 Major refurbishiment for Cornelis River Dam Innovative sollutions at Phumelela Local Municipality.

Construction MAY2019 PUBLICATIONS CR O WN COVERINGTHEWORLDOFCONSTRUCTION

WORLD

REGULARS

INNOVATIVEBLASTING techniques for HAZELMEREDAM

STAMPEDEROLLERS suppliedandsupported by KEMACHEQUIPMENT

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Marketplace

Environment & Sustainability

JewelCity RENEWS JOBURG CBD

Property

BESTPROJECTS2019: firstcall forentries

ON THE COVER CW_MayCover2019_Cove.indd 1

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Projects & Contracts

Kemach Equipment has partnered with Stampede Compaction Equipment to supply locally manufactured walk-behind/ pedestrian rollers to the South African market. Donned in the renowned Kemach Equipment yellow, the new-look machines will proudly display both Kemach and Stampede brands. Read the article on pages 22 and 23

Equipment

Health & Safety

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Less money being spent on infrastructure has led to a skills exodus, loss of jobs and capacity. At this stage there is no light at the end of the tunnel.

COMMENT

The South African Forum for Civil Engineering Contractors says the local construction industry is in a state of accelerated decline. It has joined various bodies calling on Government to urgently intervene. Even though the building sector (mainly the private sector) has been hard hit, conditions in the civils industry have now reached crisis proportions.

As if the lack of new contracts for infrastructure is not damaging enough and has led to the constant decline of the industry over the past decade, the rise of the construction mafia at various construction sites has now accelerated this decline. From an infrastructure spend point of view, there was a 12% nominal decline in budget between the 2017/2018 and 2018/19 government financial year. The construction industry has always been a major investor in capital expenditure and skills development in South Africa – apart from being the biggest employer in the country. The dwindling construction industry is threatening tens of thousands of jobs in a country with an unemployment rate of massive proportions – more than 27% at the last count. Group Five recently joined a string of construction companies to apply for business rescue. This is the biggest construction company yet to go this route and has highlighted what is at stake: thousands of jobs, and the loss of capacity and skills. The loss of capacity in the construction sector will take years to recover. The country will now increasingly

have to rely on foreign contractors – such as those from China – to build infrastructure. From a skills perspective, the industry is experiencing its worst brain drain ever as many skilled engineers and technical staff are leaving the country as there is simply no work for them locally. To add insult to injury, this process has been accelerated with the increasing violent environment brought on by the so-called construction mafia. Initially KwaZulu-Natal was the focus of various mafia-like activities on construction sites, but this has spread throughout the country. In essence, the violence emanates from the desire of the surrounding communities to gain economically from the projects in their area. Violence is being used to get what is wanted, so one has to ask the question ‘What will stop them now?’. There is a belief that South African construction has entered a mafia zone. Call for entries Against this gloomy background, we publish the first call for entries for our 2019 Best Projects Awards. These awards have, for the past 17 years,

recognised excellence in the construction world. Independently judged, the awards celebrate contributions to the construction industry in the civil engineering, building, specialised contracting, consulting engineering, and architectural spheres. When the construction industry’s activity peaked after the projects for the World Cup in 2010, it attracted 72 entries. Even though the industry has been in a steady decline since then, the number of projects entered never dipped below the 50 mark – a clear indication that these awards are regarded as positive in a sometimes negative industry. I trust this year will be no different and that, come 6 November, we will celebrate the many excellent projects still happening in South Africa.

Wilhem du Plessis Editor

B E S T P R O J E C T S

2019

@ConstWorldSA

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NEWMD FOR ARCHITECTURAL COMPANY SVA International (SVA), one of Africa’s leading architectural companies, is proud to announce the appointment of Sandi Mbutuma as Managing Director, equipping the company to continue providing comprehensive solutions for its clients across Africa.

S VA is a member of the GIBB Group of Companies, part of GIBB’s Property Delivery Unit, providing integrated, comprehensive building-service offerings. GIBB Property Delivery Unit’s capabilities cover engineering, architecture, building electronics, health, safety, environmental and sustainability, town planning and urban planning, tenant management and building- management systems. She was previously a director at Pentad Quantity Surveyors and a partner at Brian Heineberg

Gibs, and the Property Development Programme at the UCT Graduate School of Business. “We are excited to have Sandi joining SVA,” said GIBB Group CEO, Richard Vries. “Looking at her track record and her standing in the industry, we know she will provide the exemplary leadership that will help SVA and the GIBB Group deliver on the continent’s infrastructure needs.” Mbutuma has two decades of experience in the industry, in commercial building projects across Africa, facilities management, quantity surveying, technical auditing and senior management. She describes herself as an “ambitious, energetic, team player, with a pedantic attention to detail”. Her joining the company will boost its ability to deliver on trademark service offerings in key markets. Recent work has included the Media City Hotel in Dubai, Benmore Gardens in Johannesburg South Africa and a Hotel and Offices Mixed-Use Development in Gaborone, Botswana. “Our vision is to deliver on client requirements to ensure that the client, owners and building users derive optimum value from our projects,” said Vries. “Sandi’s appointment is a strategic one, which will allow us to do just that.” 

Sandi Mbutuma, MD of SVA International.

& Partners. Mbutuma then established her own practice, Azzaro Quantity Surveyors (Azzaro), where she served as the Managing Director. During the transition period from Azzaro to SVA, Mbutuma will continue to fully discharge her responsibilities towards clients in relation to her role at Azzaro. She holds a B. Tech (QS) from UJ, and completed the Programme for Management Development at

A DECADE OLD

Bosch Ulwazi marks its 10 th anniversary this year, with a track record in the advancement of engineering skills across South Africa. The company was established in 2009 as a subsidiary of Bosch Holdings, to mentor engineers and project managers to achieve professional registration with regulatory bodies.

T oday, Bosch Ulwazi provides a range of technical skills solutions to public and corporate client organisations that employ graduate engineers, technologists and project managers who are candidates for professional registration. Professional registration is a key milestone that prepares young graduates for leadership, or even branching out into their own enterprise. Bosch Ulwazi has successfully ventured into establishment and development of emerging enterprises into reputable suppliers to the built environment. “A critical part of Bosch Ulwazi’s operations is to identify,

mentor and develop black-owned businesses, to support a client’s supplier and enterprise development goals,” explains Bosch Ulwazi’s managing director, Balan Govender. “In partnership with leading organisations, including state owned enterprises, Bosch Ulwazi plays a key role in the development of small, medium and micro-sized enterprises (SMME’s). Our highly-skilled team provides guidance on project and operations management, skills development and the planning and implementation of expansion strategies, in compliance with corporate governance. “To date, we have developed 78 emerging enterprises in South

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Africa, which are now profitable and sustainable organisations. In fact, a few of our beneficiaries now have annual turnovers close to R50-million. We are proud that every one of our clients has received maximum points in the enterprise and supplier development categories of the BEE scorecard, in line with the Government Gazette Codes of Good Practice. “As we celebrate a decade in business, we look forward to seeing SMMEs increase their number of employees, boost turnover, become ISO compliant and ultimately have access to procurement opportunities within the supply chain of sponsoring companies. “Another key focus for Bosch Ulwazi is graduate development. Our Engineer-in-Training (EIT) and project management programme provides opportunities for graduate engineers and project managers to enhance their practical engineering and project management competencies, to meet the Engineering Council’s (ECSA’s) and the SACPCMP’s requirements for professional registration, over a period of three years from graduation.” Since the introduction of the EIT programme in 2010, graduates have worked on Group projects in South Africa, Brazil, India, Barbados, Tanzania, Swaziland, China, Oman and Kenya. On completion of the curriculum, candidates will have a

comprehensive portfolio of evidence that assists in the submission for professional status. To date, 15 graduates have successfully registered as professional technicians, technologists and engineers. Bosch Ulwazi has also assisted 10 senior engineers within the Group, to complete their registrations, as mature applicants, with ECSA for professional status. Bosch Ulwazi’s success over 10 years can be attributed to a firm commitment to the highest standards of education and skills development. Carefully-structured needs-analysis and development plans are tailored to suit the requirements of each individual and business. The team’s hands-on, step-by-step approach and individualised support, ensures that every enterprise achieves its specific milestones. Looking ahead, the company plans to expand its services to the Eastern and Western Cape and hopes to establish an ‘incubator’ in KZN to assist emerging enterprises. Bosch Ulwazi also provides mentoring for business owners at a higher level than that which is provided to SMMEs. The company brought into its fold, mentors with extensive experience in management of organisations and running of large projects within the engineering industry. 

DOES THE ARBITRATION CLAUSE PERISH WHEN A CONTRACT IS TERMINATED? Our clients often ask us what happens to the arbitration clause of a contract that is terminated. Many experience a backlash when trying to invoke the arbitration clauses of their terminated contracts on the basis that when a contract is terminated, the arbitration clause perishes with it. By Kelly Stannard, Associate at MDA Attorneys

D on’t assume that the arbitration clause of your contract no longer applies to a terminated contract. Carefully consider the wording of your arbitration clause and the circumstances of the termination. Where a contract is cancelled by consent Where a contract is cancelled by mutual consent, the arbitration clause must also be seen as cancelled, because mutual agreement to cancel a contract creates a new agreement to cancel, ending the rights and obligations of both parties. Where parties agree to bring a contract to an end and they are effectively agreeing to treat it as if it had never existed, it is clear that the arbitration clause ends with it. Where a contract is terminated by repudiation A contract does not cease to exist with a repudiation of a contract, even though performance and obligations cease. It survives to measure claims arising out of the breach and the arbitration clause survives to determine the settlement of claims. Arbitration clauses must be interpreted per the rules of interpretation and for this reason, the intention of the parties and context are important. The point of an arbitration clause is usually to provide a mechanism to settle disputes. It is usually reasonable to assume that parties intended for it to operate even after the performance under the contract has come to an end. Where performance under a contract has terminated When performance of a contract has come to an end, for example where a contract stipulates an end date and that date has been reached, the arbitration clause continues to be operative. The reasonable intention of the parties would likely be for that clause to operate even after obligations have ended. 

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CONSTRUCTION MAFIA DERAILING PROJECTS

W idespread concern has spread like wildfire across the built environment due to the construction mafia and gang-related activities on project sites. Yunus Bayat from the Association of South African Quantity Surveyors (ASAQS) says that a major intervention is needed to protect infrastructure projects, investor confidence, and the safety of professionals in the built environment who are working on project sites. “The Delangokubona Business Forum continues to intimidate foremen, project managers and construction bosses by going onto project sites and demanding a stake in their projects. As professionals working on these projects, we cannot protect ourselves from this type of violent intimidation and we are no match for the AK-47 automatic weapons that they bring with them,” says Bayat. Construction projects worth R25,5-billion are being violently disrupted On 18 March 2019, the South African Forum of Civil Engineering Contractors (SAFCEC) issued an urgent plea for action to the Minister of Finance, Tito Mboweni. In the letter, the SAFCEC said that it is gravely concerned that construction projects worth a minimum of R25,5-billion are being violently disrupted and halted in South Africa. “Armed gangs demanded to be part of the R1,65-billion SANRAL Bridge Project in the Eastern Cape. These illegal site disruptions caused AVENG and the European-based Strabag International to pull out of the project, which forms part of the N2 Wild Coast Road Construction project,” says Bayat.

While the gang activities were reported to the police and interdicts were obtained, the disruptors were released shortly thereafter. On Wednesday, 13 March 2019, a R2,4-billion German oil storage investment project that is being constructed by WBHO in Saldanha, Western Cape, was halted after armed gangs arrived on site. ‘The project site pictures look like a war zone’ “The gangs demanded to be part of the project and burned the properties to the ground. The pictures of the scene look like footage from a war zone. Again, police were called, but they only arrived hours later and said that the issue had to be handed over to the Paarl police station. Contractors, female engineers, and other staff had to run for their lives into the veld. The response from the South African Police Force simply isn’t good enough anymore,” says Bayat. On Monday, 18 February, the Black Business Council In the Built Environment (BBCBE) issued a letter to Minister General Bheki Cele from the Ministry of Police to request an appointment to discuss the illegal stoppages of construction projects across the country. In the letter, the BBCBE says that their members who are engaged in construction activity are subjected to victimization and work stoppages on a daily basis due to local business forums demanding participation in projects. “The ASAQS is calling on the National Prosecuting Authority and local police services to address the situation. A strong and solid intervention is needed, and it should be seen as a top priority for everyone in the built environment and government,” concludes Bayat. 

A call for urgent GOVERNMENT INTERVENTION

Master Builders South Africa is calling for urgent government intervention to prevent further destruction of the construction industry in the country. The call follows Group Five’s filing for bankruptcy protection last week, the fifth major construction company to do so in less than a year.

R oy Mnisi, Executive Director of Master Builders expressed deep concern on the matter. “This is the fifth large firm to succumb in less than a year. In 2018 alone, NMC Construction went into voluntary liquidation while Basil Read, Esor Construction and Liviero Group applied for business rescue. We still have many other small-medium sized firms facing financial difficulties and yet, there has not been any government-industry engagement to develop a plan to halt the trend.” According to Mnisi, the industry has continually engaged government on the adverse impact of late/non-payment of contractors for work completed but the matter remains

‘actual’ infrastructure spending by the government, as well as illegal and often violent work-stoppages at construction sites by various illegal forums. The adverse impact of these company closures were severe, he noted. “The short-term effect is that direct employees of these collapsed companies lose their jobs. When you consider that the construction industry employs more than 11% of the workforce in South Africa, the negative impact on the economy as a whole is dire. There is also a knock-on effect across the industry because subcontractors, suppliers and service providers are equally affected.” “In the long-term, we will lose our capacity to develop infrastructure and will have to depend on foreign companies in the future. That is why we are appealing to the government for engagement,” Mnisi concluded. Master Builders South Africa (MBSA) is a Federation of registered employer Associations representing contractors and employers in the construction industry, and is regulated in terms of Section 107 of the Labour Relations Act 66 of 1995. The Federation’s nine Master Builders Associations, and three Affiliate Associations represent more than 4 000 contractors and employers in the industry. 

unresolved. “The decline has reached a very concerning level, so much that it is no longer a sectoral problem but a national crisis. We appeal to the government to open up to the industry and urgently find concomitant solutions to save it from a total collapse”. He however, acknowledged that there were other factors instrumental to the demise of the industry. These include a sluggish economy, reduction in

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MARKETPLACE

PLANTING AND HARVESTING Dennis Vietze was appointed as Managing Director of Wacker Neuson sub-Saharan Africa in June 2017. In the financial year 2017/2018 the company grew by 10%, regained market share and cemented at least one of its business units as a market leader in the region. Construction World asked Vietze – a German native who has had 17 years’ experience in sales and marketing, and who has been instrumental in this turnaround – how he is bringing renewed energy and success to the brand.

What is the unique selling point of Wacker Neuron? Quality and service. We are a premium manufacturer of construction equipment and even though this comes at a premium, customers also know that quality and service are inherent to the brand. We have a dual brand strategy whereby we offer premium and value lines: Instead of losing the customer to a less expensive Eastern brand, we offer them an entry level machine and later attempt to promote them to a premium line machine – thereby keeping the customer in the Wacker Neuson brand. What gives Wacker Neuson construction equipment and compact machines the edge over brands that offer similar products? Wacker Neuson is a premium manufacturer, it has a nationwide footprint, with professional back-up service that takes cognisance of the size of the country so as to minimise downtime. We are, in addition, customer-centric driven. Describe Wacker Neuson’s approach to marketing? For most, a marketing mix consists of four elements: products, pricing, place, and promotion. I prefer to extend this to a marketing mix that consists of seven elements and therefore add people, process and physical facilities. With ‘people’ I mean having the right people for the job; with ‘processes’ I refer to everything needed before and after a new product is launched and with ‘physical facilities’ I mean having stock available on the yard for potential customers. I was a tough task when I took over in June 2017, but my target was to streamline all the marketing and business activities into these seven elements. How important are dealers in your total marketing plan? Dealers are vital. When I took over, Wacker Neuson had a direct sales approach: there were 12 area sales representatives for a country that is roughly 3,5 times the size of Germany where we had 120 sales representatives together with dealerships in a hybrid model. Even though South Africa, as opposed to Europe, is a very different market with challenging cultural conditions, it is – at the end of the day – still about a customer expecting service. For this reason I changed the sales structure to an indirect sales structure whereby we establish dealers in the different territories. These dealers are responsible for service, sales, and backup should Wacker Neuson itself not be able to be present in a certain territory. In June 2017 we had 18 randomly chosen dealers who were selected without any structure. Now we have 10 dealers in the country – which means that dealers are situated roughly 300 km apart. If it is not a Wacker Neuson dealer, one of our own sales representatives, territory managers or field service technicians is out to feel the pulse of the customer’s needs and interacting with them. How do you go about selecting dealers? Dealers must fit into the Wacker Neuson marketing structure and strategy. Whether they approach us or vice versa, I want to see commitment from such a dealer. Wacker Neuson, as a brand, has

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“I believe in SA, see a fruitful future and want to be a part of that. I want to be here with my team to harvest – and not just to plant the seeds.”

status. If a dealer wants to deal with Wacker Neuson, it needs to get my buy-in. I will need to see a long-term business plan – at least for three years, but a five year business plan will be even better as this feeds into Wacker Neuson’s intention of growing its market over a longer term. We do not offer equipment on consignment to dealers as this does not bring any pressure to perform into the dealership. We rather want to see a ‘shop floor plan’ whereby we assist dealers with extended payment terms on Wacker Neuson Equipment. We also supply machines that have to be turned around in three months or be sent back at the dealer’s cost. What is your dealership footprint at the moment? We currently have 10 dealers in South Africa and six dealers in sub- Saharan Africa. By the end of 2019, we will extend our footprint to Mauritius, Seychelles, Ethiopia, Kenya, Tanzania and Zambia. How do you assist customers in achieving maximum uptime? Aftersales service is crucial. If a machine is failing, we need to make a plan. Someone will travel to site from Johannesburg, Durban or Cape Town. Our dealers are currently being brought up to the Wacker Neuson standards. We are currently working on a new service strategy that will be launched on 1 May. My aim is to reach a 48 turnaround time. In line with this we have appointed a National Service Manager. What are your strategic plans for the Wacker Neuson brand in sub-Saharan Africa? We have three strategic plans. From a product perspective we want to keep the market leadership in Soil and Asphalt Compaction . This is our strategic business unit where we increased market share dramatically from 2017 to 2018. We are the market leader in rammers, ride on rollers and pedestrian rollers. Secondly, we want to increase our market share in our Excavation business unit. In this business unit we have various excavators in the 1,5 to 15 ton class. The biggest market in South Africa is between the 1,5 and 5 ton classes. Here we currently have a market share of about 30% – albeit in a very limited market. Lastly, technology is a strategic plan. I want to use telematics successfully to warn customers proactively when a service is due, so they do not lose out on their warranty, and at the same time give them the chance to become active with us. In an effort to save cost, delays and travel time, I want to

introduce Vuzix lenses with which we will troubleshoot problems before a technician travels to a breakdown. This will allow head office, via the internet, to ‘look through the eyes’ of a technician while he inspects a machine remotely. What is your role as MD and what have your challenges and successes been? I try to show, through my management style, what I expect of employees. I am not a micromanager. I motivate people and try to find the right pace. Internationally, but especially locally, Wacker Neuson lost some of its brand equity over the last few years. This is something I learnt when I was out in the field 80% of my time in the months after I joined. Since becoming the MD in June 2017, there has been a turnaround. We have gained back the lost market share. People are showing trust in the company, in me and in my team. However, I am not single player. All I can do is introduce the structure and facilitate changes. My team has to make it happen. I am still there – I am not only interested in the end result. I come from a sales background, so want to feel the sales pulse and want to share the 17 years of experience I have gained. There has been a significant turnaround over the last two years. We had a growth rate of 10% from 2017 to 2018 – in a volatile market. In 2019, when everyone is talking of the severe downturn, we had a good start. We exceed budget for the first quarter by 8%. Personally it has also been a challenge. I had intercultural training before moving here – I came to a new country where I would always be a foreigner. The first few months I spent listening, getting close to customers so I could get a better understanding of the cultural differences. The Institute of Directors Southern Africa proposed a course in BEE as I have a commitment to the country to create jobs. People seem to trust me – and this has stood the company’s good stead. The size of the country made expanding Wacker Neuson’s footprint a challenge – but it is also an advantage. In your view, what is the medium to long-term outlook for the construction industry locally and in Southern Africa? I am quite positive. As a company we have planted the seeds and we are seeing the first plants coming up. In fact, I am going to extend my visa for another five years. The board in Germany is satisfied with my performance. I believe in SA, see a fruitful future and want to be a part of that. I want to be here with my team to harvest – and not just to plant the seeds. 

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It is nearly universally accepted that good infrastructure has significant benefits for the economy and peoples’ quality of life. South Africa currently has a predicted annual infrastructure spend of USD50-billion a year by 2030. SA TO FACE UNEXPECTED BILL FOR POOR INFRASTRUCTURE PROJECTS

H owever, we have a significant problem. According to Mace’s new report, up to 80% of large infrastructure projects are delivered late and over-budget – and then under-deliver on benefits. This has a substantial cost to taxpayers. Modelling done by Mace, the consultancy and construction company behind iconic projects such as the Zeitz MOCAA in Cape Town, the London 2012 Olympics and Dubai Expo 2020, shows that if major projects continue to experience issues at the rate they do now taxpayers will be faced with an unexpected bill of R205-billion every year by 2030. The new Mace Insights report released recently, A blueprint for modern infrastructure delivery¸ looks at the main reasons why so many large projects go wrong and what we can do to put it right. Nearly 40 senior executives from around the world were interviewed for the breakthrough report alongside a review of latest academic literature and new modelling. Some of the main issues identified include: • Lack of clarity of outcome when deciding on which schemes to take forward. Often decisions are driven by political pressure rather than rigorous cost and benefit analysis. • The poor predictive abilities of project teams in their early stages, who are pressured into providing fixed point price estimates and programmes well before accurate predictions are possible or realistic. • Procurements based on ‘cheapest price’ rather than ‘value’. On large and complex projects, cheapest price procurement is a false economy. In South Africa, Mace and MMQSMace deliver project management, programme management and cost consultancy for some of the country’s largest and most high-profile developers. Completed projects include a range of projects for the V&A Waterfront, a number of different mining companies, retail bank rollouts and the refurbishment and upgrade of Park Station Johannesburg. Drawn from the report, our top solutions for addressing concerns with South African infrastructure are: Create a department for growth In many countries around the world, the political responsibility for planning, business regulation, housing and transport are separate. This means that when a mega infrastructure project comes along it cuts across multiple policy areas with a very wide range of stakeholders. Bringing the relevant elements together into a

coherent single government department would improve decision- making and efficiency. Create an independent scrutiny panel If your project or programme is large enough or you are a government agency with many large projects you should create a panel of industry ‘heavyweights’ outside normal public sector structures to challenge the project scope, timescales and costs. Their sole role should be rigorous challenge. This independent scrutiny panel needs to have the teeth and executive support to get the information they need for proper challenge. The London 2012 Olympics and the Hong Kong Aviation Authority both took this approach. Governments may choose to use this panel to challenge their top 10, 20 or 50 projects at regular intervals. Training academy for project ‘sponsors’ and leaders Many large infrastructure owners are public bodies who can struggle to attract the right calibre of people to work for them due to pay constraints. Hence it makes sense to provide high-quality practical training to current government employees to try and upskill them and enhance their skills. A particular focus should be given to the understanding of probability and risk and what that means to a project alongside how to hone in on a clear outcome for a project to achieve.  Kelvin Byres , South Africa Country Manager, said: “The delivery of infrastructure in South Africa is key to continue to enable economic growth across the country. As population pressures on our urban centres grow, we must keep pace with our infrastructure programmes. “The Government rightly has ambitious plans for infrastructure investment across South Africa, but if we can’t deliver them effectively we risk huge costs for our taxpayers.” Jason Millett , Chief Operating Officer for Consultancy at Mace said: “According to our calculations, unless something changes South African taxpayers will be stung with an unexpected bill of R205-billion a year by 2030. “Sadly, many large infrastructure projects do not have the right measures in place to properly plan, develop and deliver these vital schemes. This leads to cost increases, delays in completion and under delivering on the benefits they promised.

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Smart buildings AND THE DIGITAL TWIN

Disruptive technologies alter the landscape of established markets, forcing industries to adapt or face increasing inefficiency and redundancy. Advancements in industry solutions around Smart Real Estate and PropTech allow Deloitte to define the ‘art of the possible’ for the digital disruption of the built environment through integrated systems-design processes and digital twins.

D igital Twins enables the industry to consider buildings as complex ecosystems, the result of integrated planning and design, thereby unlocking new potential for asset owners and facilities managers across the project lifecycle. The Digital Twin explained The built environment has long been a steadfast pillar of investment and commercial opportunity, yet often falls behind the technology curve due to prolonged incubation periods to fund and develop a project – the average construction project takes around five years from inception to completion. Coupled with the fact that buildings are, by nature, static and inflexible structures (products) designed for a specific purpose at a specific time. This has historically created conditions for rapid redundancy and a loss of ‘touch’ with the changing needs of occupants and operational efficiency of facilities. Industry 4.0 and IoT have presented the construction industry with renewed possibilities, whereby buildings are developed as ‘systems’ with integrated intelligence allowing for ongoing diagnostics and performance monitoring to adapt to changing conditions as is required. Finding a way to link the physical realm of bricks and concrete with the digital realm of bits and bytes requires a medium between the two. This layer of integration is addressed through the Digital Twin. Construction projects today no longer make use of the paper blueprints of old, but instead rely on complex Building Information Models (BIM) that represent all building components and systems in a virtual environment. Every window, fixture, electrical fitting and volumetric calculation is combined within a digital database and represented graphically as a 4-Dimensional

model. This is free to be interrogated from every angle, pulled apart according to component layering, material, and even according to construction schedule. BIM therefore serves as a perfect representation of the physical building in virtual space. However, having the information is only half of the battle, since interpreting and analysing the information is where true value is uncovered and where the Digital Twin makes its mark. As complex, high-value assets with equally complex lifecycles, buildings present an ideal opportunity to realise the benefits of Digital Twins. But buildings are so much more than just physical assets, these are man-made environments where people live and work, facilitate social interactions and knowledge sharing, foster communities, and house economic activity through commercial practices. From a corporate perspective, buildings even drive loyalty and cultivate brand identity. When designed correctly, buildings also help to create healthier, happier and more productive people. Approaching a building as an ecosystem rather than a product creates opportunities for the Digital Twin to optimise every aspect of performance such as energy use, air quality, temperature control, space management, and human-centric facilities that respond to personalised requirements. Digital Twin complexity expands as it incorporates new simulations and use cases, generating a complete view of the entire building across its lifecycle, and integrating any disparate systems to create a centralised repository for all data and decision-making. This is often referred to as the digital thread. Entirely new ways of designing and operate buildings will start to emerge, as professionals will have access to complex simulations

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of entire buildings that provide a sandbox environment in which to test new designs aided by advanced analytics and machine learning. The entire construction process is planned, visualised and optimised before ground is even broken. Construction sites can therefore be managed more effectively, now able to predict exactly what impacts delays and which decisions to make to affect the overall construction process. The ability to monitor safety and compliance in real time saves lives by predicting emergencies before they occur. Through simulations, workplaces will be able to redefine the way spaces are structured and dynamically reorganised. There will be a shift to bespoke spaces and multimodal workstations that can be adapted in near to real time to respond to the unique needs of

different teams. Retail will take advantage of simulations to test new store layouts and design spaces that engage consumers in a more meaningful way. The health sector will take advantage of simulations of staff and patients to minimise friction and bottlenecks, allocate medical supplies more efficiently and optimise staff rostering to meet both current and predict future patient needs. The Digital Twin therefore represents a major driver of change because of these powerful predictive capabilities, ushering in a new era of built environment efficiency and resiliency.  This opinion piece was authored by Dr Marco Macagnano, Smart Real Estate Leader at Deloitte Consulting .

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

T he idea is to improve the skills of local brick-makers, enabling them to not only understand the science of accurate mixing of all materials necessary to produce quality bricks, but also to run their brick-making business efficiently and profitably. “To live up to our brand ethos of ‘Strength beyond’, we aim to go beyond business as usual. That means not just selling product but also providing our customers with practical help that will improve their businesses,” says Njombo Lekula, the MD of PPC South Africa “The key purpose of these workshops is to impart knowledge and expertise to these business people and to ensure that they get the best value out of our product and, in turn they can produce the best 100% Msanzi 100% quality bricks and blocks for their customers. “It’s all about strengthening the township economy and ensuring that we can serve the local community better. Better quality bricks, better houses and ultimately a more stable community.” The workshops are led by PPC Technical Specialists who pass on the technical know-how to brick-makers but, says Lekula, that’s not the end of it. The PPC sales team then takes over to offer individual

brick-makers support in growing and managing their businesses effectively with ongoing mentoring to complement the technical expertise transferred at the workshop. In the first two weeks of the programme, PPC had already impacted 103 brick-makers, with many more to come. One of the workshops was held at Muzi Bricks in Soshanguwe. The owner, Muzi Shongwe, wrote that his customers were thanking him for bringing PPC back to Kasi, and he had benefitted hugely from the technical advice he had received: “As a community of brick-makers we ask you to do many of these training sessions as you are the only cement company that cares about helping businesses like ours.” Lekula says that feedback of this nature shows the value of what PPC is trying to do. “We have always understood that the infrastructure our products help to create is much more than just buildings – it is where people live and socialise and do business. By supporting local brick-makers we are not only helping them to develop their businesses, we are contributing to building the country, quite literally.” 

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ENVIRONMENT & SUSTAINABILITY

Is enough being done TO PRESERVE WATER? Research by the United Nations Intergovernmental Panel on Climate Change (IPCC) warned that limiting global warming to 1,5°C will require fast, far-reaching and extraordinary changes. What’s more, without sufficient action to address climate and behavioural change, already water stressed regions – including parts of Southern Africa – could become uninhabitable by 2050. For those who remain sceptical on the true impacts of climate change one only needs to point to recent extreme weather events.

“F rom the current drought cycle and the effects of which have been exacerbated by the El Niño, to the polar vortex that is creating a cold, snowy winter for the Northern Hemisphere; these extreme weather changes and conditions are clear indicators of the effects of climate change,” says Alison Groves, Regional Director, WSP, Building Services, Africa. World Water Day was commemorated on 22 March and the 2019 theme of “leaving no one behind” looked at access to water as a critical human right. In 2018 the theme focused on “nature for water” and exploring nature-based solutions to the water challenges faced in the 21st century – and it has been earmarked that the theme for 2020 will centre around climate change. But, what does any of this mean? While observing World Water Day and the carefully thought out and constructed themes each year are all aimed at raising awareness and driving debate on key issues related to water availability and accessibility – there needs to be actual behavioural change across all spheres of society and in every corner of the world to prevent being forced to face the inevitable devastating effects of inaction. Stuck in a state of disaster management According to Karen King, Senior Associate, WSP, Environment & Energy, Africa, “Possibly the single biggest challenge faced by any water sector is managing available water resources in the country.” King explains that in the local context, South Africa receives just

half of the world’s average rainfall each year and is currently rated as the 39 th driest country in the world, where by 2016 eight out of nine provinces were declared disaster areas due to the ongoing drought. “Though some areas have since had some relief with wetter conditions over the Summer months, the rain alone cannot solve all of the country’s constraints or secure enough resources for the future. “This is especially true if we consider that 98% of the country’s water is already allocated. Where the sense of crisis that we are feeling at present has further been intensified by two fundamental problems; firstly, demand for water services has grown at a faster pace than the infrastructure, and secondly that people use water as though they are living in a water-rich country, with little regard for conservation,” adds King. The South African Government has certainly realised the importance of both creating access to and protecting available water resources – where the duality of these priorities creates another layer of complexity. Some of the important initial steps that have been taken to bring about effective change include getting important governing structures right through the Catchment Management Agencies (CMAs) to regulate and manage water resources under the Department of Water and Sanitation (DWS), and there has been movement to create more clarity on the national and regional plans for water and sanitation infrastructure. Despite this, Groves indicates that we are not re-engineering

Karen King, Senior Associate, WSP, Environment & Energy, Africa.

Alison Groves, Regional Director, WSP, Building Services, Africa.

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Property developers become MORE WATER-CONSCIOUS “What we also forget is that there are other parts of the country where water scarcity persists, and water restrictions have not been lifted. The Eastern Cape is a case in point. The Katse Dam is sitting at 35% of its capacity and primarily feeds Gauteng, where very little water from this dam makes its way to the Eastern Cape watersheds – and this region is still very much feeling the effects of the drought. So, while Gauteng has sufficient water, we need to remember that though rain falls in Gauteng, this is not where the water in our taps comes from – because in reality this water is drawn from three different drainage basins – and we must not be lulled into thinking that everything is okay,” adds Groves. From ‘new normal’ to future proofing water conservation Traditionally, disaster risk reduction planning has been centred on water-wise towns and cities fast enough in response to climate change and droughts. “If we just look at the Western Cape, for example, where successive years of drought brought the City of Cape Town to its knees.” King agrees and indicates that the biggest learning from the Western Cape experience is that Government, at all levels, needs to pay more attention to warnings. “The Western Cape Water Reconciliation Strategy, which was published in 2009, clearly stated that the drought preparedness in the region was inadequate. Further to this, and an important lesson, is that Governments need to react a lot quicker in terms of implementing water restrictions – and need to have the capacity to keep these in place. A positive learning from the experience, however, is that water consumers are actually capable of reducing their water usage.” Groves says, “Less than a year ago drought was considered the new normal in the region – where water consumption was eventually restricted to 50 litres per person per day. Yet, regrettably, people are quick to forget and, as the rain falls and the dams fill, it almost becomes a distant memory and the urgency to do things differently dissipates.”

understanding and reducing what would be the causing factors of disasters. Specific to water; this includes addressing the needs of people in relation to water bodies – including proximity in terms of danger from water bodies and proximity in terms of having access to adequate, safe and quality water. “More generally than just water, disaster risk reduction is centred on choices we make for our lives and the environment, which is explicitly linked to water management planning. The choices, for example, will relate to how we grow our food, where and how we build our homes, what kind of government we choose, how our financial systems work and even what we teach. Each decision and action will make us as society, specifically, more vulnerable or more resilient to a disaster,” says King. “And, if we are to move towards more sustainable and future proofed models of water conservation then we must start adopting and implementing more proactive mechanisms and that take all current and future potential water resources into account.” Groves indicates that, “To support continued and future growth – of populations, industries and economies – long-term planning must be approached with a sense of ‘societal resilience’ in mind; and resilience that can withstand socioeconomic and climatic changes well into the future. Such planning must also incorporate a vision to compensate for extreme weather changes and immediate - or imminent - environmental threats.” “In truth and quite ironically, we need to be treating our current water resources as if we are in the grips of drought conditions, no matter where we are in the country. Doing so will entrench a countrywide stewardship and culture change towards water consumption and conservation; where responsible and sustainable actions to preserve water resources will become fundamentally central to our way of life. This will not only aid in securing future water reserves for the next few years beyond the current drought – but for future generations too,” concludes Groves. 

As an essential sector for the development of the region, what can Cape Town’s property developers do to continue providing housing for Capetonians, while reducing their water usage and becoming more water-conscious in the current circumstances – and for the long-term too?

M arch, commonly known as Human Right’s Month is also National Water Month and befittingly so, as water is a human right. Water is a precious commodity and the high demand of water against the rapidly diminishing water supply is a great concern in South Africa and globally. The Department of Water and Sanitation’s theme for this year is “Leaving no one behind, water for all”. The theme is in line with the National Water and Sanitation Master Plan, a guiding framework towards the attainment of service delivery of basic services such as water and sanitation by 2030 and beyond. The plan is based on five key objectives that define the ‘new normal’ for water and sanitation, and seeks to achieve: • Resilient and fit-for-use water supply • Universal water and sanitation provision • Equitable sharing and allocation of water resources • Effective infrastructure management, operation and maintenance • Improved raw water quality management According to the Department, South Africans currently consume

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