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1100th issue - Established 1923 - Jan

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ry 2017

The official journal of Master Builders South africa

®

FROM THE DESK OF THE PRESIDENTLet’s build the South Africa of our dreams

together ................................................................ 3

MBSA & MBA newsMaster Builders enters new era ......................... 4

MBA-WC addresses skills shortage .................. 5

Master Builders key appointments of 2016 ....... 6

Roy Mnisi appointed to CETA Board ................. 7

Construction health and safetySafety overhead: The importance of roof

maintenance ....................................................... 8

Construction industry OUTLOOK 2017Captains of the Construction Industry share their

insights for the forthcoming year ...................... 10

EconomicCivil Confidence Index lowest since 2012 ....... 18

SA Construction industry can expect some

consolidation during 2017 ................................. 19

Emerging contractors

Practical pointers and advice for emerging contractorsClean up your business and improve potential

profit in 2017 ...................................................... 20

Industry newsITC-SA warns against non-compliant imported

structural timber ................................................. 22

RoofingHigh performance anti glare roofing technology

now in SA market .............................................. 24

Technology in the built environmentSoftware frees quantity surveyors to add yet

more value ......................................................... 26

Project newsProbuild orchestrates unique crane-work at Sandton construction site ................................. 28

Events 2017Industry events for the forthcoming year ......... 30

Product newsSaint-Gobain Weber launches Epox-easy

adhesive and grout ........................................... 30

ObituaryMaster Builders SA pays tribute to the late Andrew Stewart ................................................. 31

PeoplePeople on the move in the construction

industry .............................................................. 32

MBSA members and affiliates ......................... 32

SA Builder is available online.

Visit: www.sabuilder.co.za

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Compliments of the new season to all our readers and members of Master Builders South Africa. We trust you had a safe and restful festive season with your loved ones. We hope you are returning with renewed vigour ready to take on the challenges of what is likely, by most macro-economic indicators and commentators, to be yet another long and difficult year for our sector and our country.

In December, the ratings agencies gave us what is widely interpreted to be yet another reprieve. We just need to come together as a country and as a nation to make our contribution to the extraction, harnessing and realisation of the country’s infinite potential and intellectual capital, despite the many socio-economic challenges brought about by poverty, unemployment and inequality that we continue to face.

Despite this we have much to celebrate, be optimistic about and look forward to. We look forward to The State President’s State Of The Nation address and the Budget Speech by the Minister of Finance to set a positive tone and outlook for 2017 to underscore our resilience as a nation, and as a sector despite the strong headwinds predicted with specific reference to economic growth forecasts which does not bode well for the country and the sector.

We congratulate the Federated Employer's Mutual Assurance Company (FEM) for their act of patriotism in establishing a R750 Million Education Fund through which they’ll partner with the Make A Difference (MAD) Leadership Foundation; with a core focus on generating much-needed additional skills in the building industry. A cursory glance at the Department of Higher Education and Training Report titled “List of Occupations in High Demand: 2015” gives an indication of the magnitude of the problem and potential crisis the country and the sector faces. We urge other corporates to

follow FEM’s example and demonstrate their belief and confidence in the country’s future.

We also welcome the settlement agreement reached by the government and construction companies implicated in the collusion scandal. We hope this heralds and ushers in a new chapter and the beginning of the restoration and building up of the trust deficit that was eroded by revelations of collusion and anti-competitive behaviour in our sector.

We look forward to the gazetting of the Construction Sector Charter Codes as a legislative instrument to drive and monitor the extent and pace of transformation in the sector. MBSA will continue to get its members to embrace and drive meaningful transformation as our contribution to the deracialisation of the economy and the sector. It is however regrettable that this change has to be by force of legislation and not by a sense of patriotic duty. We need to move from a culture of perfunctory compliance to that of genuine commitment.

We also look forward to the finalisation of the Draft Preferential Procurement Policy Framework Act which is currently under consideration by National Treasury.

In similar vein we look forward to the finalisation of the National Minimum Wage.

Let’s build the South Africa of our dreams together, united in our diversity.

Bafikile Bonke Simelane

Let’s buiLd the south AfricA of

our dreAms togetherBafikile Bonke Simelane

President, Master Builders South Africa

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Master Builders enters new eraBafikile Bonke Simelane becomes the MBSA’s first-ever black President

By Gordon Kotze and Tai Chishakwe

Bafikile Bonke Simelane, the new President of Master Builders South Africa inaugurated at Master Builders SA Congress 2016, is the first-ever black President of this 112-year-old organisation.

Bafikile Bonke Simelane, President of Master Builders South Africa

Simelane, who is the director of group corporate services at NMC Construction Group, was born in Boksburg and grew up in Daveyton on the East Rand. He holds various qualifications including a National Diploma in Building (Cape Peninsula University of Technology); a Bachelor of Technology: Construction Management (University of Johannesburg); a Post-graduate Certificate: Project Management for Built Environment Professionals (University of Pretoria); participated in a Construction Management Programme (Stellenbosch University); a Director Development Programme (Institute of Directors of Southern Africa [IoDSA]) and an ImagiNation Leadership Development Programme (Gordon Institute of Business Science).

Simelane says that there was a time early in his career when he almost quit because of the lack of coaching,

mentoring and career advancement opportunities. “This is why I’m particularly sensitive about the continued plight of young, especially black, graduates, when it comes to lack of access to in-service or experiential learning opportunities, which is a requirement for the fulfilment of their academic obligations to obtain their qualifications from tertiary institutions,” he describes.

For this reason, he was nominated to become a South African Council for the Project and Construction Management Professions (SACPCMP) Construction Management Ambassador. “This is after I was appointed to serve in the SACPCMP by the Minister of Public Works in 2014. Needless to say, I’m also a member of the Construction Management Development Committee (CMDC) which organises the annual Construction Management Summit. I’m also Chairperson the Registration and Education Committee (REGCOM),” Simelane adds.

Concerning his leadership style, he says that, in spite of his busy schedules, he tries to be ‘available and accessible’ to people, especially his subordinates. “I’m also a firm believer and a disciple of MBWA or ‘Management By Walking Around’ - whether I’m at the office or at NMC’s construction sites across the country. I think it’s now called ‘Visible Felt Leadership’,” continued Simelane.

During his term as President of Master Builders SA, he aims to continue driving the Master Builders SA’s focus on transformation – ensuring that emerging black contractors are brought into the mainstream and see that they progress through the Construction Industry Development Board (CIDB) Contractor Grading System for example.

“As built environment professionals, we have a ‘civic/ national’ duty and must be ‘change agents’ to do more to support them through coaching, mentoring, skills transfer to build capacity and enhance their prospects for success, make them more competitive, sustainable and profitable,” says Simelane. “This has a potential to contribute to job creation, poverty alleviation and reduce inequality through access to opportunity for wealth creation, prosperity, nation-building and social cohesion.” n

10-12 SEPTEMBERCENTURY CITY CONFERENCE CENTRE, CAPE TOWN

www.masterbuilders.org.za

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The 2015 Skills Shortage Survey indicates that the category Site Supervisory staff, which includes the trade and general foreman level, to have the most critical shortage overall.

In order to resolve this situation the Master Builders Association – Western Cape (MBA-WC), through its Skills Trust facility, embarked on a Cadet Foreman Programme, which is aimed at young matriculated people between the ages of 22 and 30, who, through lack of career guidance, wish to pursue a more stable career.

Candidates are subjected to rigid selection process, which includes psychometric tests designed to indicate their trainability and ability to work under pressure.

Once selected, candidates enter a training environment which exposes them to all the facets of building work, including but not limited to - excavation, carpentry, concrete, scaffolding, bricklaying, plastering, tiling and setting out. They arrive with 'soft' hands and at the end of 12 weeks have a good understanding of building, and, in fact they can even build their own house.

The Cadets are then placed with MBA WC member companies for nine months on-site to gain practical experience. Each month their attendance and performance is evaluated. Following this period the cadets then return to

the training provider and are registered to complete the learner programme Site Supervisory Practices at NQF IV a SAQA approved programme. They are then exposed to theoretical knowledge such as, measurement, computer literacy, quality management, health and safety, management, advanced setting out, risk management, report writing and communication.

After three months they are then placed for further practical training for nine months and again are subjected to monthly evaluation reports.

The process is then repeated, after which the cadets are assessed and receive the NQF IV Certificate in Site Supervisory Practices.

During their theoretical training period, cadets are paid a stipend by the MBA Development Trust, and when on site are paid a stipend by the host employer.

During March, 2017 Master Builders Association - Western Cape will be interviewing an additional group of eight persons to start in early May 2017. Interested member companies wishing to host our Foremen of the Future should contact MBAWC.

The Association extends thanks to those member companies who are currently hosting cadets. n

MBA-WC addresses skills shortage

western Cape

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Master Builders key appointments of 2016

Itumeleng Leshoedi was appointed as Manager Occupational Health and Safety, Master Builders SA.

Itumeleng is a dynamic operator with over 18 years of experience and detailed knowledge of the health and safety.She holds a B-Tech Degree in Safety Management with UNISA (University of South Africa) and a Certificate in Occupational Health and Safety management system (OHS 18001:2007).

She is also a graduate member of IOSH and completed the Chevron Head Office new building two year project as Health and Safety Specialist.

Upon her appointment Itumeleng prompt and efficiently stepped right up to the plate and coordinated all aspects of the Master Builders National Safety Awards 2016 as Lead Auditor, managing all aspects of logistics and judging of this important competition.

She also made important contributions to the health and safety issues debated at Congress 2016. n

2016 saw a number of important appointments made as consolidation of a number of key core operational functions was addressed.

Amongst these were the following:

Terrence Mwase was appointed as Manager: Business Development and Marketing, Master Builders South Africa.

Terrence Mwase was appointed as Manager: Business Development and Marketing for Master Builders South Africa. Terrence is a member of the Chartered Institute of Marketing (CIM-UK) and the Institute of Directors Southern Africa (IoDSA).

He is a marketing professional with extensive experience from the finance, government and manufacturing sectors gained from his work conducted in several countries in the Southern African region.

In addition to being a member of the CIM and IoDSA, Terrence holds an Honours Degree in Business Studies, a post-graduate qualification in Municipal Financial Management, and has recently completed a Master of Business Leadership (MBL) degree with the Graduate School of Business Leadership (UNISA). He has more than

10 years of working experience in various capacities in Business Development and Marketing in the banking, manufacturing, and NPO sectors.

Terrence Mwase

Itumeleng Leshoedi

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East Cape

New Membership Manager for East Cape Master Builders Association

The East Cape Master Builders Association (EC MBA) recently welcomed Gordon Kotze as its new Membership Manager. With many years of experience, Gordon will lead the EC MBA’s

recruitment drive and provide much needed support to members on a range of industry matters.

The EC MBA operates throughout the Southern and Eastern Cape with offices in Port Elizabeth, George and East London as well as a Training Office in PE. The Association has 17 full-time staff providing services such as Contractual & Legal, Health & Safety, Industrial Relations and Training. Regular meetings and events are held throughout the region for member companies.

The public is encouraged to contact the MBA when considering contractors for their building or maintenance projects. In such cases, they will also have recourse to the MBA if the contractor does not adhere to the Association’s code of ethics. n

Gordon Kotze

Roy Mnisi appointed as CETA Board Member

It is with great pleasure that we announce the appointment of Master Builder South Africa's Executive Director, Roy Mnisi, to the Board of the Construction Education Training Authority (CETA) for the period up to

31 March 2018. He was appointed in the capacity as the representative of Organised Employer.

This is further testimony of Master Builders SA's commitment to promoting the interests of the building and construction industry.

Mnisi is an admitted Attorney of the High Court of South Africa with more than 10 years post admission experience. He served articles at Medelein Nel Attorneys and Johan Jacobs and Malcolm Moodie Attorneys, and was admitted as an attorney in 2004. He then joined the City of Johannesburg Metropolitan Municipality as a Legal Specialist within the revenue Department of the City.

In 2008, he joined the Institute of Municipal Finance Officers in as a Chief Executive Officer and held that position until 2015, when he joined Master Builders SA. He has served on several Boards including the Playhouse Company, Independent Regulatory Board for Auditors, Water Research Commission, Freedom Park and others.

He is also a member of the Institute of Directors and a non-practicing member of the Law Society of the Northern Provinces. n

Roy Mnisi

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Safety overhead: The importance of roof maintenanceAlthough the importance of a roof structure as a component of a building and its functioning cannot be overstated, it is possibly one of the most neglected parts of a building. While some roof systems call for less intense maintenance than others, all roofing systems should be checked periodically and maintained accordingly. The Institute for Timber Construction South Africa (ITC-SA) weighs in.

As the saying goes, prevention is better than cure, and the best preventative measure one can implement in the care of a roof structure is to conduct regular inspections to help identify and

remedy problems as and when they occur. A roof withstands more from the elements than any other component of a building and the frequency of roof inspections and maintenance is dependent on the geographical location of the given building; if the structure is close to the sea or in similarly harsh conditions, it will need greater care than a structure inland, for example.

That said, preventative maintenance is pivotal in saving money on a roof by providing a longer service life. The following offers a guideline towards maintaining a safe and secure roof structure for years to come:

Roof exterior

When it comes to the roof’s exterior, be sure to check for any cracked roof tiles, loose sheeting and loose roof screws. These may cause leaks, which have the potential to cause damage to the interior timber of the roof structure and prompt or accelerate wood rot. At the same time, look for open areas around newly installed antenna shafts and chimneys; while waterproofing should be installed to prevent

any leaks, the condition of the waterproofing membranes must also be inspected regularly. Crumbling chimney mortar could also signal moisture penetration and will need to be reapplied.

Timber roof overhangs are most susceptible to the elements and should be maintained regularly to prevent fungal attack or rot from moisture. Loose fascia boards and leaking gutters are the most common cause of leaks onto roofing timber. On this note, be alert to any creeper plants growing onto the overhanging roof timbers. Keep all gutters free from debris and make sure the downpipes are draining properly by water testing them.

If the roof exterior is beginning to collect moss or algae, consider installing zinc or lead control strips to help control the problem. These strips form harmless zinc oxide when rainwater runs over them, in so doing, carrying with it a coating preventing further moss or algae growth from occurring.

Check all flashings, making sure they are not deteriorated and be sure to secure or replace any loose shingles. Trim back any overhanging tree branches and check any metal on the roof for signs of rust. Pay attention to all caulking and sealants, and scrape and remove any caulking that is

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weathered, cracked or damaged, and reapply. If the roof has gravel surfacing, be alert to any bare spots, otherwise, check for blisters in the roofing material.

Salt or dirt build-up can encourage rust on steel roofs, and moss and lichen growth on tiled roofs. Some manufacturers’ warranties advise regular washing, particularly in areas that don’t receive frequent rain. Frequent washing and inspection are advised to prevent salt and dirt build-up.

Exposed timber trusses must be treated for exposure to the elements.

Roof interior

Cracked timber components in the roof structure are the first warning signs that something within the roof structure is deteriorating. Inspect all the components of the roof structure after new services, like plumbing, electrical and/or a fireplace, are installed. Check the interior of the roof for any leaks; these may be indicative of a leaking roof membrane.

If timber is beginning to show signs of rot, painting it will only worsen the situation. In this case, it is advisable to replace the affected timber. Painting and repainting should only be done on healthy timber surfaces. Be sure to adhere to the paint or treatment specifications concerning the application.

Additional loading

Additions, such as a cooking canopy that extracts smoke or steam from the kitchen, for example, are usually suspended from the roof trusses. In the case of additional loading, it is important to ensure that the load is spread across more than one truss. The load of the item should be established before installation and the truss design should be checked for any added loads. Be sure to use a professional to install new items in roofs, such as additional ceilings, bulkheads and chimneys.

Storage in roofs is not recommended unless the design of the roof specifically makes provision for this.

Legal compliance

As per the Construction Regulation 2014 Occupational Health and Safety Act of 1993, an owner of a structure must ensure that:

a. Inspections of the structure are carried out periodically by a competent person in order to render the structure safe for continued use;

b. That the inspections contemplated in paragraph a) are carried out at least once every six months for the first two years and thereafter yearly;

c. The structure is maintained in such a manner that it remains safe for continued use;

d. The records of the inspections and maintenance are kept and made available on request to an inspector.

The roof is a structurally important and very costly component of a building and the average cost of a roof as a portion of the final building can easily exceed 25%. The costs associated with repair or replacement of the same roof structure will be even more than this due to the additional work required to establish structural integrity.

This is why it is imperative that a roof structure, on residential, commercial and industrial buildings, is regularly inspected for any anomalies and that remedial action is promptly and accordingly taken. A roof is a lifetime investment and should last just as long.

All nail-plated timber roof structures must be designed, manufactured, erected and inspected by ITC-SA accredited members who have been awarded a Certificate of Competence. An A19 Certificate will be issued on compliance, which is required by the Local Authority before issuing an occupation certificate.

Acknowledgement and thanks to MiTek Industries SA and International Truss Systems for their contribution to this article. n

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South Africa’s construction industry faced a challenging year in 2016 amidst labour unrest, decreased spend on projects and increased regulatory scrutiny – along with ongoing pressure

on margins, lower revenue and lower order books.

Andries Rossouw, PwC assurance partner, says: “the tough economic conditions in 2016 did not spare the construction industry, with lower revenue, decreased spend on projects, and a long term industry settlement.

“However, there has been some improvement in companies’ performance as the year draws to an end, with signs of an increase in profitability and market performance.”

PwC’s fourth edition of ‘SA Construction, 2016’ is based on the financial results of the leading construction companies listed on the JSE for financial year ends to June 2016.

The 2016 financial year saw a decline in market capitalisation and financial performance. Seven of the nine companies reflected a decrease in market capitalisation. In aggregate for the nine companies analysed, market capitalisation decreased by 3% to R25 billion as at 30 June 2016 (R25,9 billion as at 30 June 2015). After 30 June there was a market capitalisation recovery of 11%.

Actual government construction expenditure increased by 5% in 2015, with total expenditure amounting to R258 billion. A promising development for the industry is government’s infrastructure plan, which aims to address South Africa’s needs over the next few years. However, this will require input from and coordination with the construction sector for it be successful.

The private sector is also a significant contributor to capital expenditure in the construction sector, with the mining sector being one of the biggest players. Due to severe pressure in the sector, however, with shrinking margins attributed to volatile commodity prices, exchange rate fluctuations and labour unrest, there has been a decline in demand from this sector.

The secured order book has shown a declining trend since 2014. A decrease in order books was observed

across six of the nine construction companies analysed. The secured order book cover of 1,5 times current-year-revenue, showed a marginal increase on 1.24 in the prior year. The increase was as a result of an even bigger decrease in revenue.

Financial performance of the industry

Total revenue decreased by 9% to R117,4 billion on the prior year mainly as a result of a decrease of R9bn from Aveng, a R3, 9 billion decrease from Murray & Roberts and a R0,9 billion from Stefanutti Stocks, partially offset by a R1,9 billion increase from WBHO and a R0,5 billion at Raubex. These decreases were largely as a result of the weaker economy, in particular for commodity markets with a notable decrease in revenue from energy, oil and gas projects. Disposal of non-core businesses also contributed.

Total operating costs decreased considerably by 12% in response to lower revenue. Staff costs continue to represent a significant component of operating costs constituting 29% of total operating costs (2015:30%).

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Every year SA Builder invites captains of the construction industry and related

sectors to participate in an objective outlook of anticipated operating

conditions and initiatives for the building and construction industry for the

forthcoming year.

As a backdrop, we present PwCs Construction Report for 2016, followed by Outlook 2017 from

the Captains of our industry. Here follow their views for 2017.

PwC Construction Report 2016

Andries Rossouw, PwC Assurance Partner

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A number of retrenchments took place in the industry in 2016 as construction companies could no longer maintain their staff investment.

Cash generated from operations decreased by 23% on last year from R4,4 billion to R3,4 billion. It is positive to note that solvency and liquidity ratio continue to remain reasonably strong and in line with those of the prior year at 1,8 and 1,3 respectively.

Integrating risk for performance

Risk management continues to be a vital component of effective management for the construction industry having regard to the recent economic climate and more harsh operating conditions.

The common risks identified by construction companies include monitoring and compliance with the B-BBEE codes; health, safety and environmental sustainability; industrial action; liquidity risk; talent management and staff retention; growth expansion and operational performance; the macro-economic environment; tender risk; and compliance with legislation and regulation.

Tax developments

Key players in the construction industry have taken steps to review their group structures with a view to streamline their operations into a more consolidated group. However, this requires careful consideration of tax planning. The Income Tax Act contains a number of group roll-over provisions which may assist corporates to restructure and simplify their operations and structures in a tax neutral manner. It should also be noted that the legislation does not prohibit the use of tax loss companies as part of restructuring.

Improving value to stakeholders

The construction industry adds significant value to South Africa and its people. The monetary value received by various stakeholders is often summarised by companies in their value added statements.

Seven of the nine companies included in the construction industry analysis, representing 72% of the revenue for all companies considered, provided readily available value-added statements.

The value received by heavy construction employees represented 77% (2015:83%) of the value created. This is a significant contribution to the labour market. According to Stats SA, more than 1.38 million people are employed by the construction industry, either on a contract or permanently.

The state received 11% (2015:9%) of value created in the form of direct taxes. However, the reality is that the state receives significantly more if one takes into account the tax on employee income deducted from employees’ salaries and net indirect taxes like VAT.

Rossouw concludes: “While several years of weak performance have resulted in weaker construction

companies, we nevertheless believe that the industry is well positioned to support the country’s development goals.” n

2017 a better year for construction

Dr Roelof Botha, Acclaimed Economist

South Africa’s economy is poised to grow by between 2 to 3% in 2017, which will have a knock-on effect in the building and construction sectors and lead the way out of the protracted downturn the market has experienced. This is according to the acclaimed economist, Dr Roelof Botha, managing director of GOPA Group SA, who was speaking at the recent Readymix Conference by Sarma, where he encouraged delegates to look out for opportunities as the markets turn.

“Despite the largely negative sentiment that exists in South Africa at present the economy is still in relatively good shape and has, in fact, faired far better than other emerging market peers. Due to the diversity of our economy we have largely riden out the storm thanks to sectors such as agriculture and services industries which provided a counter balance to ill performers.

“Other factors also indicate reasons to be bullish, such as increased gold demand which is at the second highest level in the history of the world. Just recently China purchased 1 400 tons of gold and Russia 1 000 tons, among others. This is good news for our mining sector and as commodity prices begin to swing back up it will get even better,” says Dr Botha.

outlook2017

to page 12 >>>

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On the building front the number of building plans being passed is looking better and will lead to increased activity in future when they are converted to actual building projects. Another indication of improvement is that hardware sales are turning upwards. “This is an inherently stable market and the slightest bit of improvement in the economy should translate to positive growth in the sector.”

As for the negative sentiments, Dr Botha predicts that these will prove to be largely unfounded and that any possible downgrades will not happen in the near future. Also, he expects the rand will not go into freefall as many naysayers might suggest. The only caveat, of course, is the unpredictable political environment and the extent to which markets will react to the internal strife within the national government.

“There is a lot of positive and a lot of money to be made. We predict that CPI will go down and as a result interest rates will not rise again in the near future. At present, our per capita disposable income ratio is good, the index of manufacturing volume is rising; and metals prices, of the type mined in South Africa, are up by 20%. That means overall our macro-economic outlook is better than one reads in the media.” n

We are cautiously optimistic and firmly believe that there are good opportunities to be exploredIt is important to note that our outlook is based on the market we operate in which is predominantly the private sector within the Gauteng region. We experienced reduced activity in the first half of 2016 which raised concerns going forward as to whether or not all the negativity surrounding our political environment was resulting in contraction due to poor investor confidence. Although this could be the case we must however note that activity over the last three to four months has increased as can be seen by the number of enquiries and tenders that have been circulated in our space.

This increased activity in the last few months has made us more bullish on the outlook for 2017, however margins remain under huge pressure which has been the case for some time and we don’t see much of a change going into 2017.

We must also note that many of these tenders are being submitted with unrealistic programmes which is evidence that developers are also under pressure to secure limited leasing opportunities with tight move in dates.

We believe that we are in for an interesting year ahead as the playing field undergoes major changes and restructuring as a result of additional pressure placed by government in a bid to rebuilt relationships with the Major’s previously damaged by the Competition Commission’s findings. This will all add more pressure to an already struggling industry which is noticeable by the number of listed entities expressing interest in selling off majority share holding and in some circumstances leaving the space completely.

We are hopeful that due the avoidance of a ratings downgrade, foreign investor confidence will be boosted thus unlocking further opportunities for growth in our sector.

In summary even though employment figures for the year in the industry were up we did not feel these increased levels of work in our sector but as a result of recent increased activity, are more positive for the New Year. Due to the volatile nature of our industry we do however remain cautious on the outlook but still firmly believe that there are good opportunities to be explored for those who are prepared to invest the time and effort . n

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Jose Correira, MD, Tiber Construction

<<< from page 11

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2017: Towards a future of possibilities

2016 was certainly a challenging year, but also the year that delivered a number of surprises which have set in motion a wave of change – not only in our country, but globally as well.

From the unexpected results in South Africa’s local government elections, the severe drought conditions that persisted throughout the year, Brexit, the fees must fall campaign and most recently the surprising win of Donald Trump as president-elect of the United States of America, 2016 gave South African much to talk about, disagree about and, in some cases, even worry about.

No matter our personal opinion about each of these events, what they all have in common is the ushering in of change. And change, more often than not, is positive.

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outlook2017

Richard Tomes, Sales and Marketing Executive, AfriSamto page 14 >>>

january 201714

It is this change that informs my outlook for 2017 to be a year that will kick-start a future of possibilities.

I share the optimism of our Finance Minister, Pravin Gordhan, that opportunity for a new growth cycle in South Africa exists. Albeit moderate, positive growth is projected for our economy over the next three years. This is good news for all players in the construction industry as we know that growth in the economy, directly stimulates growth in our industry.

However, to truly create a future of possibilities for the industry and our country, we cannot approach the opportunities that come with economic growth like we have done in the past.

As an industry, we need to embrace the changes that 2016 have set in motion.

Globally we hear calls for unity among nations. This is no different for our country and our industry. Together, we have the opportunity and responsibility to unite and collaborate with each other and our government to find ways to drive our industry forward for the betterment of our country and all its citizens.

Together, we can create a future of possibilities. n

The NDP must shift from Plan to Execution

2017 is likely to be fairly similar to 2016. Although the municipal elections took place in 2016, which is one of the reasons for a sluggish performance in the construction industry, the new municipal leaders are still finding their feet and trying to get rid of corruption. On top of that the possible downgrade and the political uncertainty, both play a roll in how 2017 will pan out.

The NDP remains a plan and until the

emphases can be shifted to execution, the economy is not going to benefit from “The Plan”. There is far too much red tape and fear for a qualified audit to really get things done.

Overseas investment is unlikely to make a big difference in 2017. Until the fraud and corruption get under control, investors will be hesitant to invest in infrastructure. The proposed nuclear plant/s are also not necessary if we invest in solar and wind and manage the storage properly.

South African construction industry is becoming a much safer place to work in, due to the awareness and safety programmes that are being run. The Lost Time Ratios have reduced dramatically in the last 10 years. In this regard, the efforts of FEM with industry associations have played a major role and more effort is planned for the future.

On Skills and training: There are no shortages of major skills in the industry, but the average age of artisans is very high and more emphasis need to be placed on training artisans. Over the years CETA has been blamed for the lack of training, but it is not CETA’s roll to organise training. Industry has to use the training institutions and claim their grants back from CETA for the training that was done.

Green building is more expensive than conventional building, in the short term, but with the projected increases in the price of electricity, the long term rewards for going green is under-estimated. The credits that can be claimed for going green, is also not well enough used.

Many South African companies are working in Africa, but few seem to be very successful, especially competing with the Chinese. Some of the larger companies have ventured on other continents and appear to be very successful. This is proof that our methods and knowledge can be very well used globally.

Until we get rid of corruption and until government at all levels employ competent people to run the planning, tendering, awarding and supervision of contracts, there will not be sustainable growth in South Africa. It is a myth to think that you can push students through the system and that they will be skilled overnight to do what is required. Experience only comes from hard work and years of hands on appropriate work. n

V.U.C.A says NMC2016 Has been a rollercoaster ride for the world and our country. Even if some of it was anticipated I do not think anyone quite realized how much of a rollercoaster ride it was going to be. We have been charting turbulent waters to say the least and the new acronym of V.U.C.A (Volatility, Uncertainty, Complexity and Ambiguity) is going to be very real for us in the coming years ahead. This is the catchall and simply means “it is crazy out there”.

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Nico Maas

<<<from page 13

january 2017 15

From strategist Eric J. McNulty the words mean the following:Volatility: reflects the speed and turbulence of changeUncertainty: means that outcomes, even from familiar actions are less predictableComplexity: indicates the vastness of interdependencies in globally connected economies and societies, and;Ambiguity: coveys the multitude of options and potential outcomes resulting from them.

Flexibility and resilience is going to be crucial for 2017 as the one thing we know for sure is that it is going to change. As an industry we need to try and remove the noise and keep asking the pertinent questions and adapting accordingly – often easier said than done.Our industry and the traditional modus operandi has changed and is changing.

There is a new normal in the application of terms of engagement governing the construction industry with, new BEE grading and legislation, CIDB requirements, contractual vigilance and Competition Commission outcomes and consequences exacerbated by weak growth, lack of confidence, budget constraints and skills shortages. Feast or famine still very much characterizes our industry, however it is more nodal than before.

South African construction industry has been in a slump since 2010 and the added impact of reduction of skills, slow

roll-out of NDP, budgetary constraints and slow project starts or non- starts is constraining construction companies both in terms of delivery and profitability.

We can definitely see some form of rationalisation of the industry and a changing face of construction companies with more emphasis on SMME development. Who would have thought that Murray and Roberts would have unbundled the way they have. We should be seeing a lot more of these changers in our industry during 2017.

As largely categorized by the CIDB the sector is now also divided into large, medium and small projects. Government are breaking up the larger infrastructure projects into smaller packages to accommodate the smaller contractor and although this opens opportunities for more participation across the industry, it does mean that the larger established sector have to either find larger projects outside our borders, or restructure their companies.

Economic growth will remain lacklustre in 2017 with the various nodes in the metropoles continuing to provide opportunities .As an industry we hope that the NDP and the infrastructure spend announced in Minister Gordhan’s MTF budget will start rolling out on a greater scale, and should this happen , and one is well positioned in terms of being aligned with respect to all the different requirements , 2017 should provide more opportunities. n

Companies investing in better technology and improving efficiency in their manufacturing processes in the concrete products industry will do well

2016 was a year of both success and challenges. Political instability played a large part of driving negative business sentiment. Clients held back and put off investment until they could receive clarity on the political landscape. Unfortunately clarity still has not come. Continual lack of real focus from government seems to have kept industry in the doldrums. In our industry which covers concrete pre-cast products, paving, brick manufacture and ready-mix, our customers that traditionally have done well in the past have maintained their position as market leaders and expanded operations during these tough times.

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Shaun Webber, CEO of the NMC Group

to page 16 >>>

january 20171616

On the whole the year was challenging in the second half of 2016, however as a company we were able to meet budget. Nigeria and Angola suffered heavily due to lower oil prices in 2016 and very little investment was recorded from these countries in our industry.

2017 is probably going into unknown territory for many industries. The IMF and economic indicators show that South Africa will have modest growth of around 1% in 2017. The weaker rand seems to persist, which is positive for exporters, although many African countries have also lost against a basket of first world currencies as well so their purchasing power in local currency has also been eroded. Other factors such as the drought in Southern Africa will play its part in keeping growth lower in the region. In Namibia growth in 2017 will be very low due to lack of funds from government as well as the harsh drought they have experienced in 2016 and forecast for 2017.

Markets to watch are Ethiopia as they have excellent track record of growth in 2015 to 16, although political instability may cause 2017 to be challenging for this promising country. South Africa should have fair growth in the concrete products sector, although only those companies investing in better technology and improving efficiency in their manufacturing processes in the concrete products industry will do well. Those that do not will probably find it a very challenging year in 2017. Cement prices have come down across Africa as well as South Africa and this is positive for the concrete products industry and consumers as cement is a major part of the cost of production in our industry.

Companies need to invest in their skilled staff to retain them as well as enjoy the benefit of having a lower cost on production by having skilled operators who can operate plant more efficiently. The big question is what lies at the end of 2017; with talk of global recession from some market commentators, companies should make cautious and necessary investments but ensure they have sufficient cash to weather the storm if it comes in 2018. n

The most important element in the forthcoming year is for municipal, provincial and national government to concentrate on upgrading and expanding infrastructure

In 2016 we had a reasonable year, buoyed predominantly by building construction mainly in Sandton, Rosebank, Durban and Kimberley. Rental of tower cranes played a dominant role. The year also saw SAF relocate with three other business units within the Torre Industries group to purpose built premeses at Waterfall-Midrand. The highlight of the year was selling new cranes to WBHO for the construction of the new Discovery head office in Sandton.

The challenge this year, as was last year and in the foreseeable future is the lack of spend on infrastructure(civils) long term water/sewerage as well as roads contracts.

2017 promises many potential contracts against a backdrop of political uncertainty. The government must be decisive in dealing with the uncertainty within itself or a tough environment will persist with retrenchments and a weaker economy.

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Quintin Booysen, Marketing Manager, Pan Mixers South Africa (PMSA)

Quentin van Breda, MD of SA French

<<< from page 15

january 2017 17

The NDP is a great document and a framework that should not be negotiable. There is little point having this if the conditions, finance and will to implement are not present. We, along with many suppliers and the construction industry in general could grow and absorb thousands of unemployed, if talk and white papers turn into action.

We consider ourselves at the forefront of SHEQ in our industry and will continue to participate in forums to impart our skillset and continue to innovate and always strive towards a zero accident environment. It is very challenging having outside the OSH act or Mines act too many confused and differential site specific safety requirements. These requirements, some taking days to complete, delay contracts and in many cases are inappropriate for the task to be performed.

All after sales service technicians have been trained in France or French instructors have trained in RSA. There is little point seeking the skills required from advertising as the skills shortage in RSA is huge, so training is the only option to achieve excellence in quality of staff.

We currently work in all neighbouring countries and have provided after sales service in Mali, Ghana, Mauritius, Seychelles and the DRC. We have no inhibitions working anywhere in Africa but limit our involvement to well researched, financially viable contracts.

The most important element in the forthcoming year is for municipal, provincial and national government to concentrate on upgrading and expanding infrastructure. Unemployment is a social injustice which can be alleviated starting with education and growing the economy. n

FAW reviews 2016, and outlook 2017“FAW Vehicle Manufacturers SA (Pty) Limited has enjoyed a particularly memorable year, racking up unmatched milestones amongst FAW manufacturing plants outside of the headquartered plants in China,” says Jianyu Hao, CEO of FAW SA.

One of the most recent achievements, and reason for celebration, was on 31 August when the Coega based plant saw its 2 000 locally built truck roll off the production line, giving rightful claim to the company motto – “Built in South Africa, for Africa.”

It is in the export market that FAW SA has been particularly prominent and flourished over the past few months of 2016, having one of the most consistent month-on-month export drives in the SA truck building industry. The company recently exceeded the 200 unit mark in exports into African countries.

FAW has frequently emphasised its customer promise for parts, service support and technical assistance whenever and wherever needed.

Another of FAW’s popular units sold locally has been the remarkable 5-tonner FAW 8.140FL, which moved into the second position, based on market share end October year-to-date, just one year after being launched and holding sway for being the lowest cost-per-ton vehicle in the market.

Of the most recent achievements added to the expansive list of successes by FAW, was in November when FAW’s 8-tonner, the FAW15.180FL, breached the 25% growth threshold, with 263 units sold this year compared to 186 units last year – a growth of 27,7% (October 2015 to October 2016).

Of all the FAW models the 15.180FL remains one of the most popular amongst operators because it has all the hallmarks of FAW trucks - durable chassis frame and cross members capable of whatever African roads can throw at it. This robust truck and comfortable cab can be combined with different body lengths and load combinations allowing flexibility in terms of bodies fitted as per application.

Outlook for 2017Jianyu Hao concludes: ”The indications for 2017 remain largely similar to 2016. It will be a tough and competitive market in slowly recovering economies. However, the opportunities are there and the chance of a one to three per cent growth is possible. We at FAW SA will continue to build on our customer relationships as we explore every new possibility.” n

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Jianyu Hao, CEO of FAW SA

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Civil Confidence Index lowest since 2012

Following a cumulative 24 index point rise during the second quarter of 2016 (2Q2016) and 3Q2016, the FNB/BER Civil Confidence Index shed 17 points to register a level of 35 in 4Q2016.

This is according to Jason Muscat, Senior Economic Analyst, FNB.

“A number of factors contributed to the drop in confidence,” says Muscat. “These include lower activity growth, keener competition and, consequently, also weaker profitability.”

Barring 1Q2016 when the index was at 28, confidence is at its lowest since the beginning of 2012. The fall in the index means that sixty-five per cent of respondents are dissatisfied with prevailing business conditions. The lower confidence is a result of deteriorating growth in construction activity as well as keener competition. “This was a perfect storm,” continues Muscat. “The weaker activity as well as increased tendering price competition took its toll on overall profitability. In fact, the index measuring profitability declined to its lowest level in two years.”

“The survey results confirm what we have suspected for some time: that the civil construction sector remains under pressure,” noted Muscat. According to Stats SA, annual growth in the real value of construction works contracted by 1.5 percent in 3Q2016, in addition to the 0,3 % decline recorded in 2Q2016. A large part of the weaker demand stems from a fall in government capital expenditure (capex) amid mounting fiscal pressures.

Muscat states that: “The slowdown in government investment is unlikely to be a short-term phenomenon, despite government’s recent commitment to invest more than R900 billion in infrastructure over the next three years.” Construction work by the private sector, mainly mining, was probably also lower during the quarter.

Despite the deterioration in their fortunes, civil contractors expect some improvement in activity next quarter. This is somewhat supported by the constraint measuring new demand which, although reasonably high, is below its five year average. “While it is important to take note of respondents’ expectations, the underlying economic fundamentals do not suggest a much improved civil construction sector in the near future,” said Muscat.

In conclusion Muscat states that the fall in confidence is substantiated by the deterioration in construction activity and

keener tendering competition, which led to worsening profitability. Overall, the civil construction sector likely weighed on GDP growth in 4Q2016, with only a small chance of some respite over the short term given current economic (and fiscal) conditions. n

Jason Muscat, senior economic analyst, FNB

FNB/BER Civil Confidence IndexPercentage satisfied

Source: BER Stellenbosch University

Civil constructionGrowth in construction activity

Source: BER Stellenbosch University

- Civil constructionTendering competition

Source: BER Stellenbosch University

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SA Construction industry can expect some consolidation during 2017

Moneyweb reports that after largely completing internal cost cutting and restructuring to match extremely challenging market conditions, the large listed construction companies during 2016

employed external strategies aimed at survival.

In the report penned by Antoinette Slabbert, Elsie Snyman, CEO of construction data service Industry Insight notes that the industry seems to have stabilised, although at a very low base, but some consolidation could be expected during 2017.

With the exception of Basil Read, which saw a 39% drop in its share price in the past year, the share prices of six other listed construction companies increased by more than 30%.

Company % change over past year

Share price

Murray & Roberts +45,15% R11,57Aveng +255% R7,89WBHO +40,41% R149,68Group Five +39,05% R27,04Basil Read -38,9% R2,19Raubex +69,22% R24,44Stefanutti Stocks +34,29% R4,75

According to the report, Snyman says confidence levels are still too low to inspire the investments necessary to boost the struggling construction sector. While a few bigger projects have recently come to market, it is from an extremely low level. She does not expect real revenue growth for the next two to three years.

The past year was characterised by big changes in the sector, largely aimed at survival in an extremely difficult market. This includes an agreement concluded between the seven companies and representatives of government, which the industry hopes will heal the rift that has seen government by-passing them for awards in the aftermath of the bid-rigging scandal. Several companies entered into settlements with the competition authorities in 2013 after admitting their roles in widespread tender irregularities over an extended period of time.

The report notes that the industry paid a very high price for its unlawful conduct. Apart from the collective penalties of R1,46 billion paid to the competition authorities and huge reputational damages, the companies agreed to collectively contribute R1,25 billion over 12 years to a fund, which will be established for socio-economic development.

Apart from the financial contribution, the companies also agreed to far-reaching transformation. Snyman said that to regain government’s trust, the companies had to demonstrate that, contrary to what government believes, they are serious about transformation.

The companies agreed to each transform to a level of at least 40% black equity or to mentor up to three emerging

black-owned enterprises to enable them to sustain a cumulative combined annual revenue equal to at least 25% of each of the mentor companies’ annual revenue by 2023.

The agreement provides for the settlement of possible civil claims from government clients against the companies relating to the bid-rigging scandal, which removed some economic and reputational risk.

Aveng has since announced the sale of a 45% economic interest, in Aveng Grinaker-LTA to Kutana Construction, a women-owned emerging black construction company and subsidiary of Kutana Capital. Murray & Roberts announced the sale of 100% of its local construction and building operations to black-owned Firefly Investments.

WBHO announced an agreement with black-owned Motheo Construction Group, Fikile Construction and Edwin Construction, which will result in the three contractors collectively execute 25% of WBHO’s annual turnover over the next seven years, estimated to value up to R4 billion per year.

Unrelated to the industry agreement with government Murray & Roberts reached a settlement with the Gauteng government with regard to its multi billion rand claim and multimillion rand counter claims resulting from the construction of the Gautrain rapid rail system. This has removed considerable uncertainty from the company’s financial picture.

The industry might however have to wait another two to three years for real growth, said Snyman. n

Source: Moneyweb

Elsie Snyman, CEO of Industry Insight (Photo: CESA)

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Clean up your business and improve potential profit in 2017Heinrich van der Vyver offers emerging contractors some sound business advice

As a business owner in South Africa for over 18 years, I know what it’s like to hit a brick wall. That ‘S-curve’ graph that tracks your business growth, starting at the initial growth spurt, then levelling out,

and then the big slump where you’re not sure if you’re going to make it through, and then the surge of new business growth as you reach your next zenith of client-acquisition, mostly on the back of you getting to know who you really are as a business, what your brand is, and who your ideal client is. Yes, I know that S-curve well.

But once that surge has settled, and becomes the new norm, your growth seems to hit sludge. Your turnover is steady and good, your clients are happy, you’re replacing those clients who fall away with new ones, and you are covering costs. But the line on the graph doesn't go up as steeply as you’d like it to any more.

It’s in times like these that your business - and probably your way of thinking about your business - could do with a vigorous spring clean. I don’t mean the ‘I changed the linen’ kind of spring clean. We’re talking pick up the rug, move the couches and strip the curtains type of spring clean. So put on your yellow gloves, because it’s about to get dirty.

Four ways to clean up your business and improve potential earnings in 2017

1. Think, think, think – and schedule Dream Time

I have two young children who love watching Winnie the Pooh. One of this yellow, fluffy sage’s sayings when faced

with a challenge is, ‘Think, think, think’. Like the yellow bear with the red top, it’s time we slowed down to speed up. Take the time to step back from your business and think. Dream. As business owners we easily fall into the trap of believing that being busy means we are successful. On the contrary, we need to schedule dream-time where we can think our way into the next stage of growth.

Heinrich van der Vyver

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2. Systems check

In this context, ‘systems’ does not mean technology or bleeping lights or white lab coats. Quite simply, a system is where any two parts work together towards a common function or goal.

Your business has a lot of different systems that act independently or in conjunction with each other to produce or support your profit-making efforts. Doing a systems check involves you, sitting with your managers and function owners, and mapping out what systems you have in your business. Remember, this is not just about computers and machinery. This is every system that has a set of elements that work together to produce a function or goal.

It could be the printing machine in the factory being manned by an operator. The machine, the human operator, his lunch break, the process and the material being used by the machine make up one system. It could be the secretary answering the phone and replying to customer emails. The phone, the tired/happy secretary, the computer and the slow/fast internet connection all make up that one system. And on you go, through your entire business until you have identified all the systems that make up your business.

The reason we do this is because the thought of improving a business as a whole is much too vague and too daunting, and so we usually just stop before we’ve even started. It is better to break up the business into systems that are in more bite-sized pieces, and then understand how we can improve each system, rather than look at the business as a whole. If we improve each system, even by just a little bit, our entire business will shift into another level of operations.

3. Workflow

The next step is to map out your workflows. Basically, a workflow is the pathway your product or service takes from start to finish to be produced: from answering the first email enquiry, through to creating a quote to pushing it through production, including stock management and QC, to loading it in a van and delivering it to the client, finally culminating in an invoice and accounts.

Identify the workflow. What is the task or function? 1. Perhaps construction site logistics and health and safety compliance.

Identify the processes involved in the workflow: such as 2. construction staff on-site and getting the right building materials to them at the right time.

Identify the process owners. Who is the person 3. responsible for each part of the workflow? Who is the expert in that role? If no-one is identified, have a discussion on who is best to handle that function.

Identify what steps are needed in each process. Sit with 4. the process owner and unpack what takes place in that workflow. Take the brief, brainstorm with the team, put together a first draft, apply changes, send to client for comment and apply changes.

Identify how to do each step in the most efficient way. 5. This is sometimes called a procedure document. The process owner will help with this and should include instructions on what questions to ask and how to record the brief on a template that is also attached.

Identify which of those steps can be automated. 6. Repetitive admin tasks can often be automated by using business operating software. This frees up time and expensive resources can be redirected into more profit-supporting roles.

This process will streamline your workflow and make your business outcomes predictable, stable and measurable. In other words, you can confidently provide your customers with a consistent result, which ensures your customers keep coming back for more, and you remain profitable.

4. The lid

Once you have broken your business up into systems and mapped out your workflows, identify what limitations might be restricting the smooth and easy flow of work through that system.

A lid on your system could be an old machine that is slowing things down, staff that have a bad attitude, the lack of policies and procedures, or insufficient shifts to handle the demand on production.

This step could take a while.

You could think about taking your management team •away on a workshop to brainstorm these points in a focused and deliberate fashion.

Alternatively, your ERP or business operating software •will show you immediately, on a daily basis, in real time, where your constraints are across your entire business. ‘It can’t measure attitude,’ you might say. Well, it may not measure smiles per minute, but it does show you individual staff productivity, which should give you some indication of their attitude. At the very least it will raise a flag for you to address that you might not have otherwise noticed.

Once you’ve identified what the lid is in each system, you can brainstorm ideas to remove the lid and improve the system.

A good business coach can help you unpack these steps further, along with your ERP or business operating software. We never said it was going to be easy! But following these steps will improve efficiency across all channels, reduce wastage, and ultimately improve your bottom line. Here’s to spring cleaned businesses and better growth in 2017. n

Heinrich van der Vyver is the founder of QuickEasy Software, a proudly South African software company in Cape Town with a national footprint. QuickEasy’s business operating system, or ERP, simplifies business processes and integrates every aspect of the business cycles into one, easy-to-use system. With a well-known legacy in the printing sector in South Africa, QuickEasy offers the same user-friendly, reliable business software to all businesses in South Africa, backed with friendly on-site support, business support and training.

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ITC-SA warns against non-compliant imported structural timber

As the South African construction market experiences a shortage of structural timber, imports of the material have become necessary and are on the rise. In the light of this, the Institute for Timber

Construction South Africa (ITC-SA) stresses that all structural timber destined for – and employed by – the South African market must be compliant with local legislation.

National Building Regulations require that all structural timber is compliant with SANS 1783, which covers sawn softwood timber, and both national and international manufacturers of structural timber supplied to the South African market are expected to be certified by a South African-based ISO 17065-accredited certification body. This also applies to South Africa’s neighbouring countries, like Swaziland and Zimbabwe, for example.

“Even so, it is not uncommon for non-compliant structural timber to be imported and supplied to the local market – including to formal roof truss manufacturers – without there being any knowledge of the integrity of the finger joints, adhesive used, or the grading of the timber,” remarks Abe Stears, managing director of the South African Technical Auditing Services (SATAS). “Worse so, when a batch of non-compliant imported timber is rejected by a buyer, it is commonplace for that timber to simply be sold on to another unsuspecting buyer. In this way, non-compliant imported timber for structural applications may still find its way into the South African market,” he says.

Presently, only SATAS and the South Africa Bureau of Standards (SABS) are accredited to certify manufacturers of products in compliance with SANS 1783.

“It is both unfair and unacceptable to expect local manufacturers to comply at a cost with the requirements to ensure that a quality product is supplied to the end user, while non-compliant imported timber is allowed to be used in structural components. Even though South Africa is experiencing a shortage of structural timber that necessitates the use of imports, we have to ensure that the same rules apply to this timber, and that all timber coming into the South African structural timber market is in compliance with SANS 1783,” says Stears.

“All industry professionals who make use of structural timber are urged not only to be aware of national legislation around the use of structural timber, but to not make use of any imported – or locally produced, for that matter – timber that does not comply with South African standards and requirements,” he concludes. n

The Institute for Timber Construction was established more than 40 years ago to regulate the engineered timber roof structure industry and to provide design, manufacturing, erection, inspection and certification for compliance with, inter alia, SANS 10400 and SANS 10082, where engineering rational designs are applicable.

The ITC-SA is a South African Qualifications Authority (SAQA) accredited professional body with a professional membership and therefore has to comply with the requirements as set out in the National Qualifications Framework Act (NQF Act 67 of 2008 – as amended). The ITC-SA is also a Recognised Voluntary Association in terms of the Engineering Profession Act, 2000 (Act 46 of 2000).

In 2014, the Institute for Timber Frame Builders (ITFB) was incorporated into the ITC-SA to ensure a better and more uniform representation of the timber engineered practitioners in the built environment.

Abe Stears, managing director of the South African Technical Auditing Services

The Institute for Timber Construction South Africa stresses that all imported structural timber destined for the South African market

must be compliant with local legislation

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High performance anti glare roofing technology now in SA market

A leading multinational steel supplier has recently introduced an innovative coated steel roofing material to the African market, which reduces specular reflection and minimises disturbing glare

from a coated metal roof.

The BlueScope Steel regional manager for Africa, Arno Hanekom says “Architects, designers and developers are delighted with the launch of premium products, Clean COLORBOND® MATT and Clean COLORBOND® ULTRA MATT steels.”

Formed into a variety of roofing profiles by leading South African roll formers and roofing specialists, the product is available in a range of durable and attractive colours that closely resemble the standard Clean COLORBOND range.

However, that is where the similarity ends, since Clean COLORBOND MATT (AZ 150) and its ULTRA version (AZ 200) incorporate a new unique performance coating, specially designed to reduce the problems of glare caused by today’s high gloss steel roofs.

Daylight reflectance – the pros and the cons

In terms of modern green trends, it is desirable to have a roof of high solar reflectivity so that inbound solar infra-red radiation is not absorbed into the building, but simply bounced back into the atmosphere. This reduces the temperature of the roof considerably and helps keep the building inside cooler.Daylight reflectance is defined as a measurement of the percentage of visible

light reflected off the material surface. Usually, when light falls unto a surface, a certain percentage of light will be absorbed by the material, part of it reflected off the surface, and the remaining transmitted through the material.

There are two main types of daylight reflectance: specular reflection and diffuse reflection. A specular reflection occurs when light is reflected in a concentrated, mirror-like material; while a diffuse reflection is scattered and unfocused, meaning much less glare

In the case of reflectance from exterior cladding and high pitch roof, the type of reflectance is mainly caused by specular reflection.

“With continuous improvements in construction technology and material science, the demand for more aesthetically pleasing and unique structures with low specular reflection has increased”, says Hanekom.

“Users are is able to mitigate the issue of daylight reflectance without any compromise to our products’ aesthetic beauty and quality, and minimal change to our legendary high Solar Reflectance Index (SRI) performance offered by Clean COLORBOND with THERMATECH™.

“Still incorporated into Clean COLORBOND MATT and it’s ULTRA derivative is our renowned THERMATECH technology, which allows the product to achieve greater thermal performance without compromising its quality. So, apart from its low daylight reflectance feature, the product also has features such as high dirt resistance, chalk resistance and gloss retention. The product is able to help the building owner to save energy from costly climate control measures while it mitigates the Urban Heat Island (UHI) effect”, he explains.

The critical difference

The table at the bottom of page 25 shows the range of colours available and highlights the outstanding gloss reduction performance of the new coating when compared with the standard Clean COLORBOND and Clean COLORBOND ULTRA ranges

Measurement units of gloss

The measurement scale, Gloss Units (GU) of a gloss meter, is a scaling based on a highly polished reference black glass standard with a defined refractive index having a specular

Clean COLORBOND MATT anti glare roofing reduces the temperature of the roof considerably and helps keep the building inside cooler

The principle of specular reflection

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reflectance of 100GU at the specified angle – normally 60 degrees. The most commonly used standard defines an upper point calibration of 100 and lower end point of 0 for a completely matt surface.

A first for South Africa

First made available to the Singaporean market in 2014, Clean COLORBOND Matt was brought to South Africa to support the prestigious east extension project of the Cape Town International Convention Centre. The new product aims to provide a gloss rating of 7 +/- 3 units.

Speaking about the use of the new product at the CTICC extension, Rudolf Estyerhuyse of architectural firm Stauch Vorster said: “The specification makes perfect sense considering BlueScope Clean COLORBOND MATT ULTRA's aesthetic and technical qualities. The Matt finish provides an elegant textural appearance as an alternative to the standard gloss finish. The Matt finish also reduces reflective glare, a critical consideration in terms of the impact of the relatively low light coloured roof on neighbouring high-rise developments and the adjacent freeway. BlueScope Clean COLORBOND MATT ULTRA was specified because of its excellent corrosion protective qualities and long term durability.”

“Our matt product has set a new standard for steel roofing & cladding with stylish matt finish, suited to address the issues of glare from sunlight common in urban areas. Since the CTICC project, it has been specified on several other important projects”, says Hanekom.

On the domestic housing front, the product was recently used in cladding an extension to a heritage home facing the ocean in Kalk Bay, Cape Town. Says project architect, Thomas Leach: “We were very pleased with the result, the Clean COLORBOND MATT steel cladding allowed us to achieve a crisp form with clean lines that speaks about contemporary design and roots the project in the present day. The Victorian profile links it with the past and its sensitive context. The steel cladding creates a waterproof sheath that performs well, is maintenance free and looks great!”

Other project case histories include

Ackermans’ Head Office •

V&A Silo Precinct – Silo’s 3, 4, 5 •

Chapman’s Bay Estate •

Whale Coast Mall, Hermanus•

Ballito Mall , KZN•

Sanctuary Mall •

Sitari Estate – including all residential, Curro School, Gate •House, Checkers and other commercial projects. n

Product Clean COLORBOND®Clean COLORBOND® Ultra

Solar Reflectance Index

Clean COLORBOND® MATT

Clean COLORBOND® Ultra MATT

Solar Reflectance Index

Coating AZ 150 AZ 200 (SRI)1 - ASTM E1980 AZ 150 AZ 200

(SRI)1 - ASTM E1980

Gloss units 25 units (standard) 25 units (standard) 25 units (standard) 7 units 7 units 7 units

Colour African White Amazing White 85 Winter MATT Sonata MATT 84

Off White Enduring White 85 Scallop MATT Oyster MATT 82

Ivory Grey Cosmic Grey 81 Cotton MATT Cloudy MATT 80

Shale Grey Ultimate Grey 69 Coffee MATT Latte MATT 68

Armour Grey Livid Grey 47 Hidden MATT Alley MATT 47

Volcanic Grey Ore Grey 29 Graphite MATT Iron MATT 26

Cape Charcoal African Charcoal 19 Eclipse MATT Granite MATT 18

Clean COLORBOND MATT steel cladding was specified for Goulding House, a heritage home facing the ocean in Kalk Bay,

Cape Town

Photos:Thomas Leach Architects; BlueScope Steel

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Software frees quantity surveyors to add yet more valueEnthusiasts are seeing improvements in software as a sign that the days of the quantity surveyor are numbered. Nothing could be further from the truth.

By Larry Feinberg, executive director, Association for South African Quantity Surveyors

Software has disrupted many industry sectors, from travel to insurance, and from retail to real estate. In each case, we were informed excitedly that the new technology would side-line humans. And yet estate

agents, insurance brokers and even brick-and-mortar retail stores all still continue to grow.

More accurately, those that have embraced the new technology have gone on to flourish.

When it comes to quantity surveying we are seeing a similar dynamic unfolding. An added element is that the profession is poorly understood by other players in the public and private sectors. All too often, quantity surveyors are seen simply as providers of bills of quantities and drafters of tender documents. In reality, a quantity surveyor has a much broader and more valuable role to play, especially in these days of mega-projects, strict regulation and, of course, unremitting cost pressure.

It is true that intelligent software can help automate and improve some of the more routine elements of the quantity surveyor’s job, such as measurement and the collation of documents. But to see the role of the software in this light only, or even to see it to some extent replacing a quantity surveyor, is to miss the point entirely. Rather, the software should be seen as providing quantity surveyors with the space to provide the services that have, over time, come to define their real contribution to any project.

This contribution includes the ability to determine the viability of a project from the outset, or to see the project holistically, in order to assist the owner to balance the architect’s vision with the realities of meeting cost targets that will ensure that

planned returns are realised. This contribution continues, not only during the actual construction phase but throughout the entire life-cycle of the building. I always think of the quantity surveyor’s role as one of creating a value proposition that extends from the design phase, through the construction phase and then ultimately throughout the life of the building management phase. Software alone would be hard pressed to provide all these vital service solutions to clients.

In addition, the quantity surveyor is able to take the basic data and calculations produced by the software as the basis for exercising his or her judgement - not, as many would have one believe, to bypass it. Software cannot take into consideration many of the long-term questions that are of increasing importance to those who fund large projects, and those who will use them. For example, what are the benefits of spending more during the construction phase in order to reduce costs over the life of the project? How can certain needs such as air conditioning be met in a way that it is environmentally responsible without compromising operational efficiency - or commercial viability?

These, and similar questions, need the expert judgement of an experienced professional to resolve, not the wired-in certainties of a piece of software. By fulfilling this role, the quantity surveyor protects the interests of the client, including those who will use the finished product, and the broader community at large. n

Larry Feinberg, executive director, Association of South African Quantity Surveyors

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Probuild orchestrates unique crane-work at Sandton construction site

In a deft and unique piece of engineering, Probuild Construction recently erected a Potain ‘flat-top’ MCT85F5 tower crane with the help of another larger Potain tower crane.

The operation, which took place on Probuild Construction's site of an upmarket apartment block in Sandton, did not even require the temporary closure of lanes on the busy adjacent street, usually a necessary inconvenience for most crane erections when done in space-constrained areas like Sandton. This was made possible partly by the design of the flat-top crane.

“The jib of the flat-top crane has the ability of being erected in 5 metre and 10 metre sections; it does not have to be lifted as one piece,” Louw Smit, sales manager at SA French says. “This made it possible for us to deliver the 45 metre jib in smaller segments, and assemble it ‘in the air’ using the taller Potain MD310B crane already on site.”

The day after the tower of the Potain MCT85F5 crane was erected on site, the jib was delivered in sections which were each lifted into position by the Potain MD310B crane and secured while the next section was being delivered.

Louw Smit, sales manager SA French, Kobus van der Merwe, site agent Probuild and Matthew Simmonds, contract manager Probuild

LEFT: The first counter weight being positioned

BOTTOM: The slew turret and counter jib being positioned on the tower

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First came the 6 tonne ring gear and counter jib assembly measuring 12 metres in length, followed by the other sections to make up the site requirement for a 45 metre jib. At this length, it can lift 1,650 kg – although it can lift five tonnes up to a jib distance of 16,3 metres. This model’s full jib capacity is 52 metres.

The crane’s main purpose will be to enhance the high levels of productivity on site by moving bricks and other materials – mainly for the wet trades – to where they are needed in good time.

Another advantage of the flat-top design is the absence of a jib tie – which allows it to operate with closer working distances above the jib. In this case, there is limited available space between the jib of the Potain MD310B tower crane and top of the new building when completed – making the MCT85F5 the ideal choice.

While the larger crane is on rental from SA French, Probuild has purchased the flat-top unit and expects it to be regularly in use on its contracts around the country.

SA French is the leading distributor of tower cranes and lifting solutions in sub-equatorial Africa. Founded in 1982 with the exclusive local distributorship for Potain tower cranes, the company is now part of Torre Industries. n The Potain flat-top MCT85F5 is erected on a set of reusable fixing angles

with 34.1 metre of tower

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Events 2017: Forthcoming events of interest to the construction industry

Forward details of your events to john@sabuilder.co.za for inclusion here

2017

Africa Energy Indaba

The Africa Energy Indaba addresses power generation products and services, oil and gas products and services, nuclear power, hydroelectric power, wave and tidal power generation services, geothermal technologies and services, bio fuels, lighting efficiency services and related products and services.

Sandton Convention Centre 21 – 22 February

KZN Construction Conference & Expo

KwaZulu-Natal’s only dedicated event for the built environment. With over 80 exhibiting brands, dedicated zones, free to attend workshops, networking opportunities and more.

Durban Exhibition Centre 22 - 23 February

Royal Institution of Chartered Surveyors (RICS) Annual Summit, Africa - 2017

A prestigious event at which the future of the real estate, built environment and land sectors will be discussed.

Johannesburg (venue TBC) 22 - 23 February

Energy Efficiency World Africa Energy, Power Efficiency, Energy Saving Sandton Convention

Centre '29 March

Totally Concrete ExpoThe African educational and networking platform for insights into the latest developments and technologies associated with the concrete and construction industry.

Gallagher Convention Centre, Midrand 23 - 24 May

A-OSH Expo Brings industry professionals to source and select best of breed occupational health and safety products and services

Gallagher Convention Centre, Midrand '30 May – 1 June

Cape Construction Conference & Expo

The ultimate marketing experience for suppliers and solution providers to the construction industry. Cape Town ICC 15 - 16 August

112th MBSA Congress – 2017

www.mbsacongress.co.za

Addressing immediate issues and opportunities within the South African Building and Construction Industry Cape Town 17 September

Saint-Gobain Weber launches Epox-easy adhesive and grout

Saint-Gobain Weber has introduced an easy-to-use tile fixing product called Epox-easy. This is a convenient two-component epoxy adhesive and grout, which can be used for interior and exterior

tiling applications on floors and walls. Epox-easy is specially formulated to fix tiles where very high bond strength, toughness or flexibility is required and for grouting where chemical resistance and/or complete non-permeability is required.

This includes sites such as hospitals, laboratories, laundries, dairies, abattoirs, breweries, distilleries, refrigerated rooms swimming pools, car-wash bays, where increased durability is needed. “This product contains a unique pigmentation system, which effectively locks colour into the sand, reduces the risk of staining and makes the residue much easier to remove from the tiles,” says Tiisetso Mokotjo, tile fixing and waterproofing product manager, Saint-Gobain Weber.

“When set and solidly bedded it forms a robust layer, which is impermeable to liquids, resistant to chemicals, easy to

sterilise, clean and maintain and is resilient to pressure washing.” Epox-easy is quick and simple to mix. The 5kg bucket contains two components. The two components must be thoroughly mixed to achieve a uniform colour and consistency, preferably using a mechanical mixer at a slow speed.

Unlike most epoxy based products, the Weber Epox-easy is easier to clean and wipe off excess grout, and the unique pigmentation system reduces the risk of staining. Working time is 60 to 90 minutes with a curing time of 24 hours for light pedestrian traffic, full load capacity after 72 hours, and achieves total chemical resistance within seven days.

The product is flexible, allowing for slight movements due to changes in temperature and humidity. It is available in 5kg plastic buckets, which can cover a surface area of up to 10m2.It is available in three colours and can be used with ceramic, porcelain, mosaic and glass tiles on multiple surfaces. n

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He will be missed Andrew James Macdonald Stewart

Master Builders South Africa Honorary Life member and Past President, Mr Andrew Stewart, passed away in November 2016.

Andrew grew up in Amanzimtoti on the Upper KwaZulu Natal South Coast and matriculated from Kingsway High School where he was Head Boy.

After graduating from the then University of Natal with a BSc Civil Engineering, he joined the then Natal Division of the Roberts Construction Company in 1963 and in 1972 became area manager in Pietermaritzburg. He became actively involved in the affairs of the former Pietermaritzburg Master Builders Association and was elected President during 1976/7, serving on the then BIFSA Executive Committee. That was an eventful year for him as he also attended the Harvard Business School in Boston as well as becoming a Director of Roberts Construction (Natal).

Andrew relocated to Durban during 1979 when he was elected to serve on the Executive Committee of the former Durban Master Builders Association. During the late seventies it was proposed that the large number of affiliated Master Builders Associations be amalgamated into fewer Associations structured in the then provincial boundaries. In what is now the KwaZulu Natal Province this meant the amalgamation of three Associations and a number of Special members of BIFSA.

Andrew was elected President of the Durban Master Builders Association during 1981/2 and the tricky amalgamation of the diverse groupings commenced in earnest. During this difficult exercise Andrew, with his usual calm and diplomatic disposition, provided excellent leadership and proved to be a bridge-builder of note.

Andrew was elected President of BIFSA during the 1984/5 corporate year and during his term of office he was also promoted to MD of Murray & Roberts (Natal). This was a trying period for Andrew but he non-the-less carried out his duties of the Federation with distinction. It is worth noting that in those days the Federation had the additional function of Trustees of the National Development Fund for the Building Industry and the Building Industry Training Scheme.

As the serving President, Andrew chaired the various Committees and Boards it required a great deal of his working and personal time. In this regard he had the support of his own Association, Company and most of all his wife Maryann and his two children.

In subsequent years Murray & Roberts (Natal) through its subsidiary Sunflower Projects became an important player in the field of skills development and Andrew was appointed to lead this important project. Andrew was awarded Life Membership of the Natal Association during 1993.

After 1994 at KwaZulu Natal level Andrew again became actively involved in Association affairs particularly those relating to employee benefits and the business operations of the Association. He regularly attended the Annual Federation Congresses in the dual capacity of Past President and an Association delegate where he has spoken out on important governance issues. In doing so he at times has ruffled some feathers.

In his capacity as the Chairperson for three major Building Industry Retirement Funds he made a major contribution towards creating conducive employee benefits.

The Associations Executive Council unanimously resolved on 19 August 2008 to nominate Andrew for an Master Builders SA Life Membership.

Andrew was a true gentleman of the industry. It was a •pleasure and a privilege serving on the former BIFSA EXCO with him as well as his regular interactions at Congress and the AGM’S - Greg Steele, Director, East Cape Master Builders Association.

Andrew was a well-known member of the construction •fraternity. He will be missed! – Barney Richardson, Director, SA Refrigeration and Air Conditioning Contractors' Association (SARACCA). n

Andrew Stewart

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CORPORATE mEmbERs

AFFIlIATE mEmbERs

East CapeGreg Steele – Executive DirectorTel: 041 365 1835E-mail: ecmba@global.co.za

BolandDaniël Uys – Executive Director Tel: 021 863 3330E-mail: info@mbaboland.org.za

master builders south africa

KwaZulu-NatalVikashnee Harbhajan – Executive DirectorTel: 031 266 7070E-mail: info@masterbuilders.co.za

Greater BolandUrsula Pekeur – SecretaryTel: 023 342 6964E-mail: mbagb@telkomsa.net

Northern CapeChrista du Plooy – SecretaryTel: 053 832 1762E-mail: nc_mba@xsinet.co.za

West BolandPhillip Botha – Executive DirectorTel: 022 772 2251E-mail: mbaweskus@cwmail.co.za

Western CapeAllen Bodill – Executive DirectorTel: 021 685 2625E-mail: info@mbawc.org.za

Free StateHendrina Greyling – SecretaryTel: 057 352 6269E-mail: masterbuilders@mbafs.co.za

MBa northMohau Mphomela – Executive DirectorTel: 011 805 6611E-mail: info@mbanorth.co.za

Association of Architectural Aluminium Manufacturers of SAJohan J Heyneke – DirectorTel: 011 805 5002E-mail: aaamsa@iafrica.com

SA Reinforced Concrete Engineers’ AssociationJeff Thomas – DirectorTel: 011 455 6321E-mail: sarcea@iafrica.com

SA Refrigeration and Air Conditioning Contractors’ AssociationBarney Richardson – DirectorTel: 011 622 3890E-mail: saracca@icon.co.za

peopleArup appoints BIM leader for Southern Africa

Arup has appointed Nic Karassavas as its BIM Leader for Southern Africa. Karassavas brings significant experience in initiating, managing and developing projects within a BIM environment as a result of having worked on a wide range of building and infrastructure projects as a principal, manager and technician. “The use of BIM technology on projects is finding a greater audience in Southern Africa, as more awareness of the benefits of BIM are highlighted and embraced. This new position as BIM Leader for Arup will enable me to continue to showcase our expertise in the application of this innovative technology,” said Karassavas. The delivery of projects within a BIM environment is one of Arup’s fundamental strategies within Southern Africa. Nick Karassavas joined Arup in 2014 as a CAD/BIM Manager. n

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