Construction World September 2018

COVERING THE WORLD OF CONSTRUCTION

SEPTEMBER 2018

WORLD

CR O WN

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

INNOVATIVE PILING solution from FRANKI in Saldanha Bay

Last call for entries

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CONTENTS

24 Earthform the perfect solution Technicrete’s Earthfrom retaining wall blocks was a solution in Thohoyandou. 28 Piling for bridges in Swakopmund Stefanutti Stocks Geotechnical has installed seventy 900 mm diameter piles in Namibia. 30 Sustainable and innovative The shortlisted projects in the AfriSam-SAIA Award for Sustainable Architecture + Innovation. 38 A paradigm shift in construction The possibilities of digitalisation in the construction industry. 42 Building on its formwork systems with BIM offering The construction industry is in need of change so as to boost productivity. 44 Projects with stellar safety records Concor Western Cape has won three out of five building categories in the MBAWC Regional Safety Competition. 50 ITC-SA’s Annual Awards All the winners in the recent ITC-SA awards for the engineered timber construction industry. 54 Welcoming return of renewable energy Raubex Infra is looking forward to increased participation in REIPPPP.

04 Maintenance across borders The difficulties associated with working on international projects. 06 Architecture part of the multi-disciplinary offering AECOM is offering an integrated infrastructure offering, something gaining traction especially in East Africa. 10 Demise of large contractors as construction industry struggles Since 2011 SA’s listed construction firms have lost 70% of their value. 20 First SA commercial property to go off municipal water grid The District in Cape Town is Growthpoint’s first ‘water net-positive’ building.

REGULARS

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Marketplace

ON THE COVER

Property

Building roads and bridges is fundamental to the growth of an economy and this has certainly been heeded by the Saldanha IDZ (Industrial Development Zone), which, in contrast to many areas in South Africa, has been undertaking significant infrastructural development with the funds they have received from the Western Cape government for that specific purpose. Some of this infrastructure includes roads and bridges, such as the Greenfields Link Interchange project, awarded to WBHO Construction in late 2017 and who subsequently awarded the geotechnical piling contract to Keller’s Franki Africa. Read the article on pages 22 and 23.

Environment & Sustainability

Projects & Contracts

Equipment

Products & Services

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CONSTRUCTION WORLD SEPTEMBER 2018

COMMENT

The Annual Association of South African Quantity Surveyors (ASAQS) Conference, which this year took place on 2 August, is a one day conference with speakers whose messages are not only relevant for the QS profession, but to the construction industry as a whole. This year’s speakers ranged from professional adventurer Peter von Ketz to strategic specialist Dr Andrew Brough to Oscar von Memerty who inspired with his message of success against the gravest of odds. The South African construction industry is in largely negative terrain – especially the civils industry. I recently attended talks organised by AfriSam and another by PPC where economists (respectively David Metelerkamp and Dr Roelof Botha) painted a picture of an industry that is at the mercy of the political status quo in the country. Context is the new currency is what Lynette Ntuli, one of the speakers at the ASAQS Conference and CEO of Innate Investment Solution defined the status quo to be. The volatile context, where the Rand can nosedive in a matter of hours, is something that we have become accustomed to. We have swung into ‘Ramaphoria’ and quickly swung out of it – with the realisation that it is going to take more than mere sentiment to steady this ship. Furthermore, the sad reality is that everything has now become political: water, health, education, safety, etc. The related infrastructure for these is no longer a basic human need, but an expression of power. The irony is that the construction industry holds the largest potential for job growth of all industries in South Africa –

Seth Godin, creator of the concept ‘the purple cow’, used the phrase to describe how companies stand out from the crowd. What is your company’s ‘purple cow’?

especially important in a country with rampant unemployment. Craig Lemboe, a senior economist at the Bureau for Economic Research (who compiles the BER Consumer Confidence Index), says that the only way the country’s construction industry (and industries in general) will return to growth, will be through the return of private investment, improved political sentiment, rebalancing the approach to transformation, ensuring that growth is labour-intensive and obviously through improving the education system. The latter has been the ruling party’s greatest failure. Turbulence has become the norm and only one characteristic leads to success … grit. It is up to the individuals and companies that make up the built environment to determine how this turbulent time will be survived so that when the tide turns they can take advantage of a more positive environment. Change, both good and bad, is happening rapidly and the industry has to be resilient. Agility and adaptability is the only way to achieve a sustainable model – for a company, a profession and an industry. The ASAQS sees its main goal as preserving and enhancing the QS profession by maintaining professional ethics, integrity and high standards. Larry Feinberg, Executive Director of the ASAQS said that growth (for the Association, but this can be applied to all professions in the built environment) must be sustained and measurable and that is why the Association set a strategic plan in place a few years ago as clients rely on a QS to stay competitive, vital in the current climate. Part of this plan was to actively advocate and market the QS profession. In this regard, Lynette Ntuli used the phrase “if you are not sitting at the table, you are on the menu”, emphasising the importance of being part of the discussion, for now and in future. The overriding message, for me, of the Conference was the concept of the ‘purple cow’ – a phrase coined by Seth Godin. Now is the time for companies within the industry to define what makes them stand out, what makes them intrinsically different. Until now it has mainly been price, but this is

Crown Publications received the Publisher of the Year Award (trade publications) at the 2018 Consulting Engineers South Africa Engineering Excellence Awards. Seen here are (from left): Christopher Campbell (CESA CEO), Karen Grant (Crown Publications’ Publisher) and Wilhelm du Plessis (Deputy Publisher and Editor of Construction World).

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MARKETPLACE

MAINTENANCE ACROSS BORDERS Whether it is safety tests for your electrical switchgear, efficiency tests for your boiler or upkeep for plant parts and equipment, the need for ongoing maintenance is vital. However, when completing international projects, where the management of a facility is transferred to a local team, how can maintenance of the site and its components be preserved?

opportunity to scope out the entire plant and offer suggestions or efficiency ideas for future preservation. Developing your relationship with them from a supplier to a trusted advisor will not only cement your ongoing relationship but may also bring new business opportunities too. Remote support Of course, travelling across the globe just to change a switch is not only costly but also wastes a lot of downtime in the facility. Many providers, like Boulting, offer wireless transmitters for some of the facility’s key components. These wireless transmitters then connect to both the plant’s own monitoring system as well as the supplier’s trackers to remotely supervise the system. This means key elements like generators and switchgears can be assessed from across the globe for cost and energy saving opportunities. This can be key for some specific parts, which have much shorter lifespans due to climate and the level in which the plant is operating. For instance, switchgears are tested to EU standards, where typically circuit break- ers are designed to able to meet 10 000 operations. As climate and altitude con- ditions vary from country to country, it is impossible to test equipment for all eventu- alities. Working in extreme conditions can greatly

H ere, Dave Friar, international operations director at Boulting, international engi- neering solutions provider, considers what you should do when preparing to hand over maintenance control on an overseas project. Planning for the ongoing maintenance of a new facility or plant is important, particu- larly before it begins operation. According to ‘Efficient Planet’, a badly maintained 10-year- old plant can cost more to maintain than a properly maintained 25-year-old facility. So, developing a comprehensive maintenance plan can help save both time and money. However, when handing over the ongoing management of a new overseas facility, where you won’t have easy access to the plant equipment or data, working closely with your in-country counterparts is vital. Collaboration across borders While many international facility managers don’t always realise the importance of imple-

menting maintenance plans, it is essential for the plant’s construction team to ensure it is considered as a significant element of the project from the outset. Whether that is providing familiarisation training for on-site staff to learn how to use, maintain and install replacement parts, or by simply offering user manuals, the more in- formation on-site teams have the more likely they can keep everything running smoothly. At Boulting, we always provide recommendations for ongoing maintenance techniques before we hand over a facility. This can keep maintenance needs at the forefront of the plant management team’s attention when they begin work. On-site teams also receive both physical and digital copies of equipment manuals to have on hand should any equipment need emergency upkeep. Should in-country teams request main- tenance assistance, it provides an ideal

impact the operational life expectancy of equipment. Being aware not only from the beginning of the project, but also reminded of the need for regular maintenance and replace- ment through remote monitoring can help in-country management teams predict maintenance needs before components unexpectedly break. Offering your support and ongoing services will not only maintain your relationship but the plant too. Having an unexpect- ed vehicle breakdown, or boiler failure can leave you stranded and out in the cold. Be sure to not leave you international customers feeling the same when you transfer the ownership of the facility to them. 

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CULTURE IS AT THE HEART of a safe workplace By Hardie de Beer, Executive: Technical & Lime, PPC

O ur industry is particularly hazardous, and the environment lends itself to employees being exposed to dangerous machinery and adverse environmental factors like dust and noise. Health and safety are thus pressing issues for us, and we give them a lot of thought and attention. We have learned that there is no single formula for creating a safe workplace – but there are certain basic principles that can be adapted to create the all-important safety culture without which the desired behaviours will never take root. To achieve this, the company has to engage effectively with the workforce, and empower them to identify risks in their work environ- ments and take appropriate action. The aim is to make employees and managers partners in the creation of a safe workplace. It is vital to move towards behavioural safety, which requires em- ployees to act with safety in mind as a matter of course. To achieve this requires a sustained effort from everyone. There are several principles that are key to achieve this. Everyone should understand the SMART goals of the safety programme. The SMART goals must be specific, measurable, applicable, relevant and should take place within a designated time frame. It is also important to create a safe environment that is both inspirational and empathetic. Safety has to become internalised into the way people approach their work. A key element is the quality of the corporate leadership. In particular, executives and managers have to show that they have internalised the safety culture. Talking about it is not enough. Companies have to create a safety culture Creating a safe working environment is a complex issue and requires a concerted effort by all stakeholders over a sustained period of time. It is this understanding that is at the core of PPC’s approach to safety at all its operations.

people to acquire the specific competences they need to act safely. At PPC, we use a simple yet highly effective way of actualising these principles. We call it Snakes and Hazards, and it uses well- known characteristics of three common African snakes to make people aware of the kinds of safety risks they face, and what to do about them. The puff-adder denotes the concealed hazard that an individual must point out to colleagues. The python, by contrast, is the hazard that can start off as small and harmless, but that can become life-threatening if it is allowed to grow. A third hazard is denoted by the cobra, just as this snake rears up in threat and warning, this type of hazard is both obvious and real. This hazard typology makes it easy to assess the risks in any plant, and has the virtue of being readily understandable across cultures as we have found in our plants across South Africa, Rwan- da, Zimbabwe, the DRC, Botswana and Ethiopia. More importantly, it starts meaningful discussions about workplace safety that are conducive to the creation of a safety culture that is integrated into working patterns. When it comes to safety, regulation and physical

safety equipment have roles to play, but they will always have limits. For genuine workplace safety, there is only one approach that works – ingraining safety into the way people behave at work. That takes time and effort but then a safe work- place is a priceless asset. 

Hardie de Beer, Executive: Technical & Lime, PPC.

We have learned that there is no single formula for creating a safe workplace – but there are certain basic principles that can be adapted to create the all-important safety culture without which the desired behaviours will never take root. body in the company has to buy into the safety culture; it must become the way everybody does things at work. One group cannot opt out. Education and communication are thus key levers in building the culture as well as helping that will result in colleagues being able to joint- ly assess and suggest mechanisms to ensure a safe working environment. A third foundational principle is that every-

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MARKETPLACE

Architecture part of MULTI-DISCIPLINARY OFFERING

Adriaan Vorster, Architecture Business Line Director for AECOM in Africa.

W hile the trend in Africa is still for single-discipline appointments, such as separate structural and mechanical engineers, AECOM is setting a new benchmark with its multi-disciplinary approach. “What we offer is a game-changer as we are literally a one-stop shop. In addition, we can draw on the strengths and resources of the global AECOM business, from the Far East to the Middle East and the Amer- icas. This means that we have one of the strongest offerings on the continent,” comments Adriaan Vorster, Architecture Business Line Director for AECOM in Africa. From the automotive manufacturing industry to data centres and high-end residences, AECOM’s client base is very diverse. “In the past, especially in Southern Africa, we have been very engineering- focused, but we have now decided to expand our architectural service offering,” Vorster asserts. What gives AECOM a leading edge in this regard is not only the breadth and depth of its international expertise and experience, but the fact that it is equally at home in Africa with an ‘on-the-ground’ presence. “We understand our African markets, and have been represented on the continent through our various legacy companies for almost 50 years. It is a good place to be, and we can definitely add value,” Vorster highlights. This value-add includes AECOM’s expertise in smart buildings, for example, which is one of the latest tech- nology-driven evolutions in both architecture and engineering terms. “There has been a definite mindshift,” Vorster notes. About 10 years ago, the ‘green’ revolution kicked off with the broad adoption of BREEAM (Building Research Establishment Environmental Assessment Method), LEED (Leadership in Energy and Environmen- tal Design), and the Green Star rating, as administered by the Green Building Council of South Africa. “In terms of Green Star, South Africa sees an ever-increasing uptake, with the rest of the continent follow- ing suit. While we might not have the same volume as Canada, China, or the US, what we produce is certainly on par.” The main benefit of smart buildings revolves around connectiv- What differentiates AECOM from traditional architectural and design practices is that it is able to offer a complete solution, from design to project management. While the trend in Africa is still for single- discipline appointments, such as separate structural and mechanical engineers, AECOM is setting a new benchmark with its multi-disciplinary approach. Well-known as an integrated infrastructure delivery company in Africa, AECOM also offers architectural services, which are rapidly gaining traction on the continent, especially in East Africa.

ity and, ultimately, optimisation. A modern service-driven business needs connectivity to move data seamlessly, and to engage with its environment. A second intangible benefit is that smart buildings essentially create an enabling environment for workers to deliver their best. This is because factors such as light and temperature levels are highly customisable, as opposed to a 30-to-40-year-old building with a single unintelligent air-conditioning system, which inevitably meant simultaneous hot and cold spots. For landlords, the approach means optimising the use of facilities, building systems and resources, such as water and electricity, due to constant monitoring. However, the Achilles heel of greater uptake in Africa remains the high cost of data, which acts as the backbone for the systems. “South Africa has one of the highest data rates in the world. In order for a smart building to work as intended, it needs the bandwidth and affordable data in equal measure to act as one of the enablers. This is definitely an economic inhibitor at present,” Vorster points out. Another factor is that the physical infrastructure is lagging the smart building trend itself, such as the installation of fibre-based connec- tivity. “Only once this backbone is in place, can you start to develop smart buildings and, more importantly, smart cities.” Smart buildings cannot be seen in isolation. “This is the begin- ning of an evolutionary process. As smart buildings are connected together, they can drive a smart power grid. Imagine then if you add 20 blocks. Overall power consumption will be reduced dramatically. Smart buildings can interact with each other in terms of peak power loads, releasing battery-stored power to the grid at a premium,” Vorster points out. A fully modern smart building has to adopt a holistic approach in its design, incorporating both ‘green’ design best practice, in addition to technology. “A ‘green’ building, meaning one that has been designed with sus- tainability in mind, is not necessarily the same as a ‘smart’ building. In my opinion, smart buildings are the next revolution. They combine technological functionality with environmental concerns,” Vorster stresses. In some instances, older building stock is difficult to retrofit or refurbish, with older healthcare facilities, for example, lack the necessary ceiling voids to run modern networks, air-conditioning, and sensors, as an example. “What is also happening from a technology point of view is that solar panels have become much more efficient, which makes renew- able energy an ideal fit for Africa. Add a level of intelligence to this, such as room sensors to monitor occupancy levels and turn off the lights, and you have a winning recipe,” Vorster adds. Smart buildings are at the forefront of broader global techno- logical trends such as the Internet of Things (IoT). “While the local architectural and engineering industry has been highly successful at promoting green building, I do not think we are there yet in terms of smart buildings.” However, Vorster adds it is an increasingly import- ant debate that AECOM is eager to encourage. “We must be part of the global conversation around these issues.

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We are vocal at work groups and conferences and, as a company, have already had access to this type of technology for years. When the African market matures suitably, we will absolutely be ready for it, with our specialists engaging on the topic at an ever-greater frequency as the South African and African market realigns itself.” Vorster predicts that a decline in data prices, coupled with the ready availability of bandwidth, will be a crucial enabler. “I think the industry will jump to it then. It makes economic sense not only from the obvious benefits for big business, but in terms of more produc- tive workplaces. Energy is costly at the moment, which means that buildings have to run lean, and be as efficient as possible,” he concludes. 

ABOVE: AECOM has a global architectural presence, showcased by the Shenzhen Yinhugu Garden project in China. ABOVE RIGHT: AECOM is involved in multi-disciplinary African projects such as the new terminal building at Kasane International Airport in Botswana.

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MARKETPLACE

The G20 initiative recently launched its ‘Public Private Partnership (PPP) Contract Management Tool’ – a free online resource that provides practical, user-friendly guidance for public officials in charge of managing PPP infrastructure projects after financial close, through construction and operations. CEO of the Global Infrastructure Hub, Chris Heathcote, said that governments need to focus on the importance of managing PPP infrastructure projects to ensure that the public is receiving the full benefit of the infrastructure services. “A great deal of attention is paid to the preparation, procurement and negotiation processes of PPPs”, Heathcote said. “However, this is only the start of delivering a successful project, and in many ways the hard work begins after financial close. Simply signing a PPP contract and letting it run its course will not automatically lead to the private sector delivering the public service to the level of quality expected, and has the potential to undermine the entire process of project preparation and procurement.” Governments need to monitor the obligations of a private sector operator and ensure that scope changes are managed effectively to ensure value for money and minimise the risk of disputes, according to the Global Infrastructure Hub. Governments also need to ensure that community stakeholders are consulted in relation to disruptions through construction and operations. The aim of the ‘PPP Contract Management Tool’ is to help government officials address these types of challenges and prevent potential setbacks and disruptions throughout the construction and operations phases of a project. Heathcote stressed that procuring authorities need to ensure PPP contract management teams are well-resourced, and that adequate training is provided to the officials responsible for handling both day-to-day management issues, and the significant challenges that can arise, such as requests for renegotiation. “Our research finds that up to 48% of PPP contracts globally are renegotiated within the first 12 years. The key issues associated with renegotiation are that they don’t typically benefit from a competitive tender process and often lack transparency. “Therefore, it’s important that the government’s contract management team has the capacity and resources required to successfully manage a renegotiation.” The Global Infrastructure Hub tool, which has been created with global professional services consultancy Turner & Townsend, provides practical guidance to increase the quality of PPP infrastructure investments internationally. Murray Rowden, Regional Managing Director, Americas & Global Head of Infrastructure at Turner & Townsend, said: “Public Private Partnerships offer a huge opportunity to unlock infrastructure Stronger public sector oversight and contract management are essential to realising the true value of investment through public private partnerships (PPPs), according to new guidance from the Global Infrastructure Hub. • More successful management after contract signature and financial close essential to realising value of infrastructure PPPs. • Nearly half of global PPP contracts require renegotiation within the first 12 years. • Public sector need to upskill to monitor and help deliver more successful programmes. • New tool from the G20’s Global Infrastructure Hub with Turner & Townsend to improve contract management practices. Effective management essential to unlocking PPPs

The entered sites were audited using the MBSA auditing system which measures both legal and physical on-site compliance. The audit comprises two components, with the first being a full audit of all of the documentation required in terms of the law and the second entailing a site walk-through to observe the behaviour and conditions on site. Of this year’s Competition, Bester says, “Generally, the sites scored well with most achieving an MBSA 5-star rating, meaning that they scored more than 90%.” He adds that although there were some accidents reported, no serious ones have occurred on the audited sites. “Last year saw more injuries reported, but fortunately these were not of a serious nature. The reduced number of injuries reported this year suggests that there has been an improvement, however one must bear in mind that the sites competing in the Competition are leading in the Health and Safety sector.” These sites have been entered in the National Safety Competition and will compete against the country’s five other Master Builder regions, with an MBSA representative visiting each to perform further audits and establish the winners in each category. The prize giving ceremony will coincide with the annual MBSA Congress, which is taking place in Port Elizabeth this year, from 9 to 11 September. “We at the MBAWC wish all of our region’s winners the best of luck for the National Competition,” concludes Bester.  Health and Safety Competition are in. This year’s Competition attracted 40 entrants from all over the Western Cape. These sites have been undergoing audits since April by MBAWC Occupational Health and Safety Manager, Deon Bester, who is also an accredited Master Builders South Africa (MBSA) Lead Auditor. Western Cape’s safest building sites announced The results of the 2018 Master Builders Association Western Cape’s (MBAWC) annual Regional Occupational

Category

Contractor

Contract

Manufacturer Allied trades

Aveng Steeledale Paarl

Brand Engineering Montague Gardens

Plant yards

WBHO Concor WBHO

Philippi Yard Signature Lux Jungle Oats Nettleton Rd

R15-mil to < R40-mil R40-mil to < R100-mil

R100-mil to < R250-mil Concor R250-mil to < R450-mil Concor R450-mil to < R750-mil WBHO

Aurum

Yacht Club

Scaffold Contractor

Cape Formwork Various Sites Contractors

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CONSTRUCTION WORLD SEPTEMBER 2018

Revision of building agreements completed

The Joint Building Contracts Committee (JBCC) has completed a revision of what is probably the building industry’s most essential documentation: the JBCC Principal Building Agreement.

such as work by direct contractors and ‘free issue’ to contractors that could lead to accidental damage, now has to be specified and included in the works insurance. Also insurance cover against specialised work, or periphery actions involving construction equipment and materials that do not strictly fall under the ‘building’ category, must be specified and insured. Highlighted also in the revision is insurance to cover the transit phase of imported building materials, such as via shipping, where marine insurance may be required,” Putlitz explained. New stipulations to expedite prompt payment, and rewording of aspects covering suspension, termination, dispute resolution, and penalties are in the revised agreement. “To make the JBCC agreement more adaptable for use in other African counties, the agreement furthermore allows for the use of local adjudicators, arbitrators, or mediators in the country where a contract is used. Generally, the costs of adjudication and/or mediation will be shared equally

JBCC is a non-profit company that rep- resents building owners and developers, professional consultants, and general and specialist contractors who all provide input for the compilation of JBCC agreements (contracts) that portray the consensus view of the committee’s constituent members. Uwe Putlitz, CEO of JBCC, said the constituent members felt the time had come to issue a revised JBCC Standard Form of Building Contract which has as its main aim the avoidance of disputes in contractual matters in the industry. Noteworthy among the changes for the 2018 editions are: • The adaptation of the text for easier reading with fewer cross-references • Revised layout of the contract data

by all parties involved in a dispute.” Putlitz added that the JBCC agreement still had as main objective the identification of disputes before they occurred, proper and proactive action in this regard, and the creation and adherence to recorded and accessible communications. “The revisions simply clarify and/ or strengthen the applicable contractual agreements,” he stated. 

• Revision of certain definitions • Rewording of clauses relating to insurances and payments

“In revising the JBCC Standard Building Contract, we also felt that aspects of insurance needed to be included. Insurance,

CEO of the Global Infrastructure Hub, Chris Heathcote.

investment, but these long-term programmes require a long- term view if they are to deliver for all parties. “Learning from past examples, the tool sets out the skills and expertise required to both procure and manage programmes across their whole lifecycle – ensuring that infrastructure assets are set up for success from day one.” The project has been informed by an in-depth interrogation of 250 infrastructure PPPs reaching financial close between 2005 and 2015 to understand their successes and challenges. The research programme included three global workshops with government participants from over 30 countries, as well as multilateral development banks, including the World Bank, the Inter-American Development Bank and the European Investment Bank, and infrastructure legal practitioners from King & Wood Mallesons and Norton Rose Fulbright. 

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MARKETPLACE

DEMISE OF LARGE CONTRACTORS as construction industry struggles

The years since 2011 have seen the demise of South Africa’s large construction firms, with the country’s listed contractors losing almost 70% of their value over the past decade.

S peaking at AfriSam’s recent breakfast briefing on the State of the South African Construction Industry in Johannesburg, Industry Insight senior economist David Metelerkamp says that small firms have taken over a substantial portion of market share from larger players. “From a 60% contribution to the market in 2012, the large companies now account for only just over 40% of market share,” said Metelerkamp. “From under 16%, the smaller firms now also make up about 40%.” He noted that several large contractors are now in business rescue, if not insolvent, and the market share of medium-sized companies has been more or less flat over this period. Various factors are behind this situation, not least of all the fact that the civils sector has been “in the doldrums” for some time, with poor annual growth levels until 2016, followed by five consecutive quarters of negative growth. The situation was aggravated by a break- down in trust between large firms and gov- ernment, after numerous cases of collusion were uncovered in infrastructure projects leading up to the 2010 World Cup. “Transformation has played quite a big

role,” he said. “Government was not happy with the rate of transformation in the sector, so broke up their bigger infrastructure projects into smaller pieces to award them to small contractors, which explains why smaller players started taking a bigger share of the overall pie.” The large companies also had over- capacity, he argued; they were geared for a level of growth that was simply not being achieved and have been slow to restructure and to implement the necessary efficiencies. The government’s financial position also played a role, as it had to consolidate the national budget in the face of rating agency downgrades and rising government debt. “In my opinion, there may also just be too many listed construction companies in South Africa,” Metelerkamp said, pointing out that nine such firms were listed on the JSE. “If you look at other emerging markets, and even advanced economies, there are only three listed contractors in China, two in Brazil, five in Turkey, and four in Australia.” Those large South African firms still doing well were finding most of their work outside of the country. The civils sector is certainly bearing the brunt of the construction downturn, with the worst

levels of confidence since the early 1990s. “Over the last 18 months, there has been a significant decline in the value of tenders awarded in total,” he said, pointing to a 26% decrease in the value of projects over the past year. Generally, order books across the civils sector remain flat and dipping, possibly due to the planned clean-up of the state-owned enterprises by President Cyril Ramaphosa’s new administration. “This is positive in the medium to long run for the civils sector,” he said, “but con- ditions will remain tough this year, which will possibly be the worst year for the civils sector; we are expecting some improvement next year and the following year.” On the positive side, Metelerkamp high- lighted that there has been more interest from private investors in renewable energy, so the civils sector will have to rely more on the private sector than it has traditionally. There might also be good news related to the next national election being on the horizon, as the run-up to elections often see a raft of tenders going out. “The building sector, being driven by private investment, is looking slightly better,” he said. In the residential segment, flats and townhouses will drive future growth, while the non-residential segment is seeing more positive tendering values. Addressing industry stakeholders at the AfriSam briefing – which included construc- tion firms, retailers, trade unions, manage- ment, material suppliers like AfriSam and industry associations – AfriSam’s chief executive officer Rob Wessels reiterated the positive role that construction played in creating employment. While construction contributes just 3% of gross domestic prod- uct, it employs roughly 9% of South Africa’s labour force, about 1,4 million of South Africa’s total of about 16,3 million employed.

Richard Tomes, Sales & Marketing Executive, AfriSam, (LEFT) and Rob Wessels, CEO, AfriSam.

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From a 60% contribution, the large construction companies now account for only just over 40% of market share.

“The construction sector is labour-intensive, and if our president’s vision of creating another one million jobs over the next five years is to realised, a significant portion of that will have to be achieved by the people in this room,” said Wessels. He highlighted the AfriSam vision of a Positive African Future, emphasising the value of the company’s relationship with its stakeholders to achieve mutual goals but also to work towards national objectives of growth and sustainability. Richard Tomes, AfriSam’s marketing executive, noted that the company has – like its customers – been focused on achieving greater efficiencies in its process and operations, while remaining committed to its obligations in terms of safety and social contribution. “The market is not easy, but it is vital for all industry stakehold- ers to keep communicating, so we can find ways to work together and build the economy and country,” Tomes said. 

Construction plays a positive role in creating employment. The sector employees about 1,4 million of South Africa’s total workforce of approximately 16,3 million people.

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O ver the past two years, he has built a vibrant construction busi- ness that repairs properties on behalf of insurance companies. But it has been a challenging journey and one where his business philosophy of delivering quality results and ensuring top notch ser- vice have stood him in good stead. “I tell people who want to go into business that the more they grow, the bigger the challenges they will face and the larger the potential problems will be. In the school of life, before you go to the next grade, you have to pass the test. So, don’t keep going around the same mountain like the Israelites. Keep your eye on that next level.” History Esbend was born and grew up in Pietermaritzburg into a family of entrepreneurs. Both his grandfather and his father, who passed away when he was just 12, were in the construction industry and he admits that following them seemed the natural thing to do. After completing his matric, however, he headed to the United States for a year and a half where he helped his sister who ran a laun- dromat and a construction business. Back in South Africa, he joined Waltons Stationery and then moved to the Road Traffic Inspectorate. Five years later, when his second son was born, he decided that the dangers and shift work weren’t worth it and moved to eThekwini Municipality where he worked in the signage and advertising department. On the side, he was doing a few small construction jobs. “I wasn’t satisfied. I knew I wanted to go into business and, specifically, into construction. I’d been trying to do some small jobs but things didn’t always work out. I bumped my head and lost a lot of money but I persevered,” he recalls. Three to four years ago, Esbend remembers being so broke that he couldn’t scrape together enough money to buy a loaf of bread. His wife Karen, who he says has been by his side throughout, dipped into her salary to help pay workers. Without a car, he relied on public transport and hired a bakkie to do jobs. Having his wife by his side has been one of his biggest assets, though. “If we face a hurdle, we only give ourselves one day to mope. After that, we look for solutions and pick ourselves up,” he says. He resigned in November 2016, using his pension payout to set up Sbenz Construction. Now that ‘everything was on the line’, he no longer had the option of failing. Branding Because he believes that a good business needs to have a profes- sional image, he invested in branding his company and building a professional image to give his business credibility. Quotes and invoices were delivered on smart letterheads. He registered a domain name rather than resort to a gmail address. While subcontracting for one particular construction company, Esbend realised that the future of his company lay in the insurance Just over a year ago, Sherwyn Esbend’s office in North Coast Road was an empty space. Today, it has been subdivided into separate offices and a smart reception area and he has just taken delivery of two brand new bakkies. Building a SUSTAINABLE CONSTRUCTION company

OPPOSITE: Sherwyn Esbend, the owner of Sbenz Construction is also focusing on improving the company's Construction Industry Development Board grading which will open doors to other opportunities in the broader construction business.

sector. Repairs in response to insurance claims provided a signifi- cant and steady volume of work with reliable payments. But being accepted onto the service provider panels of large insurance companies and financial institutions proved difficult. Com- panies were looking for a track record and references from others in the sector. He says the turning point came when he joined the Sekela Devel- opment Programme (Sekela), which develops and supports small enterprises through workshops and mentorship. This, in turn, resulted in Sbenz Construction being accepted on to the SA Home Loans (SAHL) panel of contractors who are called in to effect repairs in response to insurance claims. “SAHL opened the door for me. Without being included on the SAHL panel, I would not have been able to get on to other panels. They have given us references. Now we are doing work for other major insurance brands and big banks and can grow our business,” he says. Another game changer was the massive flash flood that hit Durban in October last year. As insurance companies scrambled to do the repairs, more contractors were needed and companies waiting in the wings were called in to assist with the excessive backlog of repairs that needed to be done. “Through that storm, we made it on to one of our biggest client’s panels, we had been requesting for some time but had been rejected,” he recalls. Sbenz Construction completed about 200 jobs and has only just finished all their storm related work. Money earned was ploughed back into the business. This enabled Esbend to move to his much larger current office and employ another 20 people. With more big clients in the pipeline, he expects to grow his staff even more. His association with SAHL also influenced his decision to study further. Following a Sekela advisory board session with SAHL which covered self-development, he registered with MANCOSA for a Bache- lor of Business Administration. He has on-the-ground experience of much of the study material but believes this qualification will give him a far broader overview of business and increase his credibility with clients. He is also focusing on improving his company’s Construction Industry Development Board (cidb) grading which will open doors to other opportunities in the far broader construction business. “When

“If we face a hurdle, we only give ourselves one day to mope. After that, we look for solutions and pick ourselves up.”

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we joined Sekela, we were on cidb Grade 1, now we are in the process of applying for Grade 5. This is not something I even dreamed of. I thought if I could get to Grade 3, I would be fine,” he says. At present, 95% of his work is for the insurance industry and this remains his primary focus. Esbend’s long term plans include pitching for work from the petroleum industry and, in the medium term, he plans to partner with larger construction companies on major contracts as part of their Enterprise Development Programmes. 

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CONSTRUCTION WORLD SEPTEMBER 2018

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A Scania for EVERY CONSTRUCTION APPLICATION It is hard to imagine a business more diverse and challenging than the construction industry. In such an industry, a one-size-fits-all approach is not in the interest of the customer and for Scania this approach does not exist. It is committed to providing trucks and services that enable them to drive the customers’ business forward. This means providing durability, reliability and drivability.

Robust, rugged and flexible Clients want the perfect truck, so Scania gives them every option to get this right: from the cab, to the bumper to the axels and to the engine. Everything is adapted to match the operational environment. The main aim is to optimise uptime and it understands the need to build trucks that last as this is the foundation on which client’s build their operation. This is the reason why the chassis of Scania trucks are built with effort, experience and expertise. This means that they are manufac- tured with bodybuilder preparations, as lightweight as possible (to optimise the payload), high ground clearance and a vertical exhaust – to name a few. Scania prepares the chassis to make bodybuilding easier: pre- drilled holes, sub-frame brackets and cut-to-fit frames, hydraulics and electricity. Tau Pele has three G460 truck tractors that they use as a bitumen hauler, a side tipper and as low bed application. “Then we have vari- ous P410 8x4 double steer trucks, which we use as a tipper, bitumen distributor as well as for continuous slurry mixer applications,” says Deetlefs. “Each Scania chassis for the specific application is performing very well,” says Deetlefs about the 11 Scania’s in its fleet. “Scania’s technical team also assisted each time with the selection of the correct chassis for the application.” Tailoring Scania has been on the road for more than a century. Vehicles are continuously tested to find ways to optimise and improve overall vehicle performance. This includes tests for it to withstand heat and cold, nonstop testing, tilt stability tests, shock tests, crash tests and all condition tests. In terms of productivity, the tailoring ensures maximum payload, optimum driveability and a truck that is correctly specified for the customers’ operating condition. Customers in the construction industry have engine options from 250 hp inline all the way to the Scania 730 hp V8. Scania’s optimal fuel efficiency is a result, not only of the Euro 6 engines that ensures high-torque output and low emissions, but of this tailoring whereby a balance is struck between performance and efficiency. Superior cabs Cabs are required to be flexible and comfortable as the driver will spend hours in the driver’s seat. In addition it has to be safe. Scania’s cabs are some of the toughest in the world and rigorously tested to meet European safety standards. Scania offers a range of cabs for the construction industry.

S cania South Africa relaunched its range of construction vehicles in 2015 and the unprecedented growth year on year is proof that this approach is welcomed in the local construction industry. It offers a range of vehicles for the construction industry, including vehicles used as tippers and heavy tippers, skip loaders or hook lifts, concrete mixers, concrete pumps, flatbed with crane, mobile cranes and heavy haulage transport. As Scania is basing its products on the modular system, it can easily change existing models. Scania provides more than trucks though. Besides the physical vehicle, it tailors complete solutions to support operations in the best possible way – customers will get what they need to support their operations so they can focus on the business. This is achieved with uptime, productivity and fuel efficiency. In terms of uptime, customers can expect a robust vehicle that will not let them down, supported by a service network to ensure uptime so customers get maximum profitability. A truck for the application An example of where Scania supplied vehicles for a very specific appli- cation is Bloemfontein-based Tau Pele. Established in 2004, Tau Pele specialises in the construction of new roads and the rehabilitation of existing ones. “While the company focuses on major national and provincial arterial roads and urban highways, its expertise extends to the development of urban infrastructure, as well as selected industrial projects,” says Joe Deetlefs, Tau Pele’s manager: plant and equipment. Tau Pele boasts a footprint across the SADC region, operating from its Bloemfontein headquarters across all of South Africa’s nine provinces and beyond the country’s borders to Namibia, where it is known as Tau Pele Construction Namibia. “We started buying Scania trucks for our Namibia operations because of the good footprint that Scania has in Namibia. We were happy with the whole package, and therefore extended the South African fleet with various Scanias,” Deetlefs explains.

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Tau Pele’s focus Road rehabilitation and construction The effective management of a road construction or rehabilitation project encompasses several capa- bilities, ranging from technical expertise to project management, to ensure the road is constructed to the required specifications and expectations. Asphalt production Asphalt is a specialist product which requires an asphalt plant for the production of asphalt materials. Tau Pele has acquired an asphalt plant to produce asphalt materials on selected projects and carries out its own in-house paving of asphalt materials. Chip and spray pavement seals Here, Tau Pele completes the full circle with bitumen binders. From procuring raw bitumen from the Refineries, transporting, storing and blending and modification of all various spray grade binders, to the correct application on to the road. It also man- ufactures cold emulsion products for sealing and slurry applications. Everything is adapted to match the operational environment.

The cab for the Scania P-series is lightweight, economical and comfortable and ideal for engines in the 250 to 450 hp range. The compact size and low overall weight expands the customers’ load space capacity; suitable for varied tough construction sites. The G-series cab (for 250 to 490 hp) is sized midway between the P and R-series, and is ideal for construction activities. It is easy to enter and exit and has good visibility. The cab for the R-series (for engines of 370 to 730 hp) is characterised by impressive equipment levels. This cab is used when tailored solutions for over- Even though Scanias are designed to run in tough environments, care and as- sistance is needed for continued flawless operation. Scania has various useful services that can be tailored to suit the customer, including repair and mainte- nance, Scania Assist, Financial Services, Insurance and driver training. For Tau Pele this was a crucial element in their choice. “The most important aspect to me in choosing a vehicle is the after-sales support that I’m going to receive from a supplier, whether I have a small or big fleet. In addition, the local branch of the supplier must be my way of communicating with the brand. Parts, service as well as any issues need to be sorted out by the specific branch, which in my case is Bloemfontein, whether it is for a truck that needs to be serviced in Port Elizabeth or elsewhere. Such issues should not go through a call centre, but get sorted out at your local branch,” says Deetlefs.  sized loads (heavy haulage) are needed. Taking the customer further

Tau Pele’s 11 Scanias include: • Three G460 Truck Tractors • Four 8x4 P410 Tippers • Two 2x8 P410 Bitumen Tankers • Two 8x4 Micro Pavers

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