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| Volume 4, Issue 11 |DECEMBER 2014
Fusion ResArt is All Inside Molapo CONSTRUCTION 11 Mexican 14 19 taurant Mixes Modern, Around Us Piazza Courtesy 20 DEFECTS: Rustic & Cultural Design of the BIDP who’s fooling who?
FEATURE INSIDE
Fairgrounds Corporate Profile cORPORATE PROFILE
BOIDUS FEATURE >
Building and Construction in 2014: The Good, the Bad and the Ugly
CORPORATE PROFILE Botswana’s Only Financial Hub Office Park National Exhibition Centre Finance Education Centres Urban Lifestyle Commercial & Shopping Botswana’s Only Financial Hub Tourist & OutdoorOffice Destinations Park Hotel & Accomodation
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National Exhibition Centre Finance Education Centres Urban Lifestyle Commercial & Shopping Tourist & Outdoor Destinations Hotel & Accomodation
Boidus speaks to key stakeholders and looks back on another noteworthy year for the sector by Kibo Ngowi
Inside the Building Materials Supply Industry by Kibo Ngowi
It’s that time of the year again when those of us building homes in stages run to the materials store to try and stock up as much as we can to make up for lost time. December has always been a peak time for building materials purchases but how do the business owners feel about the performance of their stores overall? Boi-
The past year has been an interesting one for the building and construction industry with plenty of headline grabbing stories to keep tongues wagging. Some stories pointed to the shifting landscape of the country’s economy: Mining giant BCL changed its focus to the manufacture of steel; the country’s second largest city Francistown unveiled its ambitions to develop into an economic hub of the region; the billion Pula international access route Kazungula Bridge officially began construction; and the largest shopping mall in the country, Game City, began a multimillion Pula expansion in a bid to stay competitive in the country’s increasingly saturated commercial property market. Other stories highlighted that things don’t always turn out as planned: Five plots were repossessed from the urban
precinct envisioned to become the economic centre of the Capital City, the new Gaborone CBD, and the founding Minister of Infrastructure, Science and Technology was forced out of office, in spite of leading one of the highest performing ministries, after failing to be re-elected. Reason for optimism came in the form of Botswana being recognized as the most efficient and transparent amongst emerging property markets worldwide and the construction industry making great strides in establishing a regulated environment. Boidus Focus presents a snapshot of the good, the bad and the ugly of the building and construction industry in 2014. CONTINUED ON PAGE 04
dus Focus spoke to the heads of four of the most important building material supply companies in the country to learn from their first-hand business perspectives and to find out their thoughts on the state of the building material supply industry as a whole. CONTINUED ON PAGES 4,15,16,17,19
Progress on the Road to Regulating the Construction Industry by Kibo Ngowi & Keeletsang P. Dipheko Botswana’s construction industry already has a history stretching back decades, including a long albeit ended period of government backed rapid development within the country. However, problems such as corruption, collusion and sub-standard workmanship have been the specters haunting the sector since day one. Without formalised legal provisions to regulate the professionals within the construction industry, weeding out the bad seeds and ensuring best practice has always been a tall order but in the past
few years signs of progress have become evident in the dream of regulating the Botswana CI. 2014 was a bumper year for the regulation promise that saw organizations such as MIST and BOCCIM finally taking action to make a regulated industry a reality. Boidus Focus speaks to some of the key players involved in establishing a regulated environment for the construction industry in order to gain a clearer picture of where the dream stands today. CONTINUED ON PAGES 06 & 08
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BOIDUS FOCUS December 2014
Boidus Sponsors Academic Excellence Awards in Real Estate
by Boidus Admin
and Masego Mabayani (Diploma) during the ceremony. The criterion for giving out the award was to identify the overall best student for each programme using grades obtained per module.
Ass MoE Mosieraele Goya (left) and Phenyo Motlhagodi (centre) awarding the best students in Real Estate
On the 28th of November Ba-Isago University College held its 2014 Graduation Ceremony at the institution’s campus in Gaborone and Boidus Media played our part by sponsoring The Academic Excellence Awards in Real Estate. Boidus Media Business Development Partner Phenyo Motlhagodi and the Assistant Minister of Education Mosieraele Goya bestowed the prestigious honours on Bertha Mosendame (Certificate)
News Briefs
Ba-Isago Vice-President for Academic Affairs & Research Mr. Ruramayi Tadu explained that the awards are a way of honouring students who have worked hard for the duration of their programme and also a way to motivate other students: “It is an honour to receive such an award at such a platform. The Certificate will always be used in their CVs to speak for their hard work during their studies.” In explaining his decision to partner with Boidus Media for these awards Tadu said, “Boidus is fast becoming a leading newspaper in the built environment in Botswana and is being recognized by the industry. Real Estate falls under this area and hence we felt that Boidus would be fit to sponsor this award so as to motivate and reward these students and present them to the industry.”
Compiled by Keeletsang P. Dipheko
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The Public Procurement and Asset Disposal Board (PPADB) held a three-day capacity building workshop for the District Administration Tender Committees (DATCs) in Gaborone recently. The theme for the workshop was “Improving efficiency in public procurement through devolution.” The workshop joined together chairpersons, secretaries and committee members to share experiences in relation to tender processes, adjudication and awards for Central Government. The main objective of the workshop was to facilitate the devolution of the authority by familiarising the participants with the straight forward albeit controversial responsibility of managing public procurement and asset disposal.
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The Ministry of Lands and Housing and its parastatal Botswana Housing Corporation (BHC) last month entered into an agreement known as the Shareholder Compact which is said to be one of the corporate governance best practices. The newly appointed Lands and Housing Minister Prince Maele said the shareholders compact will clearly articulate the strategic intent of the shareholder to the parastatal as well as the parastatal’s strategic objectives, performance indicators and targets. Moreover the BHC Board Chairperson Dr. Bolelang Pheko urged the shareholder to ensure that the corporation is adequately resourced to attain the targets covered in the shareholder compact.
Thousands stampede at Oodi Sub Land Board Thousands of Batswana descended upon Oodi Sub Land board recently to submit applications for plots. However the Land board did not give applicants an acknowledgement letter or a reference number due to the jam packed offices with no room for free movement. Superintendent Bonosi Molapisi of Broadhurst Police Station said they estimate that around 70, 000 came to apply for plots despite the fact that there are only 400 available plots in the villages of Oodi, Modipane, Dikwididi, Mokatse, Bokaa and Morwa. In the meantime people have been told to wait until further notice by the Land Board.
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BOIDUS FOCUS December 2014
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Boidus Feature Page 4
BOIDUS FOCUS December 2014
Building and Construction in 2014 Boidus Focus presents a round-up of the biggest built environment stories that either made headlines in the past year or hold significant potential to influence future trends. 1 Botswana ranked number #1 emerging 5 The end of the Swartz Era at MIST – The founding property market in the world by a New York based research firm – A study of Emerging and Frontier Markets, conducted by the New Yorkbased real estate brokerage and consulting firm Cushman and Wakefield, identified Botswana as the most efficient and transparent developing commercial real estate market out of 42 emerging property markets worldwide, citing the country’s improving economy and a high supply of new office developments in Gaborone.
2 BCL invests heavily in steel manufacturing
– A fully integrated steel manufacturing company called Pula Steel and Casting Manufacturers was established following the restructuring of Bamangwato Concessions Limited (BCL). Pula Steel is expected to invest a total of P89.5 million into a steel manufacturing plant that will create 1 000 direct jobs at full production. Botswana currently imports all its steel from foreign countries with South Africa being the largest source at 50%, followed by China with 40%. The demand for steel in Botswana amounted to P2.6 billion in 2013.
Minister of Infrastructure, Science & Technology Johnie K. Swartz was forced out of Parliament after failing to win re-election in his constituency during the 2014 General Elections held in October. During his term at the ministry Swartz drove a number of significant achievements including the merging and developing of other organisations such as BIH, BITRI and others under MIST. He indicated that he has retired from public service and has no intention of continuing his political career but assured the current Minister Honourable Nonofo Molefhi that he would be available to serve as an advisor for at least the next year.
6 Game city breaks ground on P250 million Expan-
sion – Turnstar Holdings held a groundbreaking ceremony in November following the signing of a P250 million deal with RMB Botswana, a division of FNB Botswana Limited and FirstRand Bank Limited, for the expansion of Game City Shopping Mall. According to Turnstar Managing Director, Gulaam Abdoola, the re-development will include: the addition of a conference facility; a terrace to be used by a restaurant, a piazza, an entertainment court and a structured three floor parking lot consisting of 650 parking bays.
7 Five CBD plots repossessed – Through the enforce-
nomic hub by 2022 – Key decision makers from the private and public sectors descended upon Francistown in August this year for the Francistown Investment Forum, a conference aimed at facilitating discussions to position the city as the lead economic hub in Southern Africa by 2022. The Francistown Investment Company has been established to drive an aggressive strategy to attract billions of foreign direct investment into the city in the next 8 years.
ment of a government development covenant which obliges landowners of the Gaborone CBD to develop their plots within two years of purchase, the area has experienced a boom in development in the past few years but not everyone has been able to comply with the covenant. In September a decision was taken by government to seize no less than 5 plots in the area on the grounds that the registered owners failed to develop commercial property on their pieces of land. An announcement in the Government Gazette, signed by President Khama, revealed that five plots in Gaborone’s CBD would be seized by government. The matter is currently before the courts.
4
8 Great strides made in Legislation to Regulate the
3 Francistown unveils plans to become eco-
Kazungula Bridge ground broken – The Governments of Zambia and Botswana officially launched the commencement of construction works on the Kazungula Bridge across the Zambezi River in September. The much anticipated P1.4 billion Kazungula Bridge is expected to start early next year, after the two hosting countries signed a contract agreement with the Korean multi-national contractor, Daewoo Engineering and Construction. The project will facilitate trade between Botswana, Zambia and the SADC region by reducing the number of days taken by truckers at the Kazungula border from six days to six hours, improving border management operations and reducing time-based trade and transport costs.
Construction Industry – In April the Quantity Surveyors Registration Act was passed in Parliament and within months a Registration Council for the profession had been put in place. Also in 2014 the Architects Registration Act was amended to allow government to provide funding for the Architects Registration Council following a realization that the process of registration for the profession had stalled due to a lack of funding. Meanwhile, the Engineering profession became the first fully regulated profession of the Botswana CI as it became law that all engineers must be registered with the Engineers Registration Board in order to practice in Botswana. Finally, BOCCIM held consultations with key stakeholders on the long awaited bill to establish an overall regulation body for the construction industry.
Inside the Building Materials Supply Industry
On Establishing a Building Material Suppliers Association by Kibo Ngowi
CONTINUED FROM THE FRONT PAGE
“I would definitely support the formation of such an organization. I’ve been saying it for many years to the people in our industry. We used to have meetings with some of the other suppliers and I said on many occasions ‘Let’s get together; let’s form, not necessarily an organization, but a committee in which we can all sit down together and talk, where we can set the prices, set the products that we are brining into the country; to serve the people better and to take care of the people.’ Unfortunately it has never worked out but I would be very happy if such an organization was set up here so that at least everyone could be happy. If we are doing cutthroat business it’s not good. It should be healthy competition. Until we get together we will not be able to have healthy competition.” – Jamal Trading Founder and CEO Mrs. Ahmed “We actually don’t believe in the formation of such organizations. The reason is that if any formation controls the prices the consumer is the loser. So in the past people actually did come to us to form an association and agree on prices instead of having a price war and we actually said ‘no – we don’t want to enter that.’ Even the competition board doesn’t allow that type of arrangement. So we actually do not like any type of formations which control what prices we must sell so in that respect we are not in favor of that type of formation. Our 12 branches are one type of formation where we are actually getting good prices from our suppliers because of our buying power. It’s not in our interest; it’s not in the consumer’s interest. Simple. So we avoid any formation.” – Builders World Managing Director Mr. Sheik “Unfortunately we have not been party to this dialogue but we are generally a business that likes the playing field to be level and if such an association ensured that we as an industry provide high quality, are ethical and put our customers first, then we do not see why we would not support such an association. This association would be a value add to our customers in regard to fair pricing, quality products, better service and just ensure that we give the market what it wants.” – Builders Warehouse Managing Director Mr. Chris Vengesa “I don’t have an answer. At the end of the day until one knows what that association wants to bring to the party, what their intentions are, what their mandates are, I couldn’t tell you whether we would support it. Cashbuild per say doesn’t belong to any of these associations in any of the countries we are trading in and nobody has ever discussed it with me in the 10 years I’ve been operating in Botswana so I’m not aware of it and I’m not aware of what benefit it would bring. If it was going to ensure that imported poor quality material was stopped from entering the country then in principle I would support it. Because I think there are people who are bringing in inferior products and I feel that’s wrong. When one builds a house or adds on to a structure, that’s a longterm investment and to make people do that with inferior building material I think is just morally wrong.” – Cashbuild Operations Manager Mr. Shane Thorrenson
BOIDUS FOCUS December 2014
PART
1
Consumer Education Page 5
PRACTICAL ADVICE GUIDE
Essay 4
December 2014
BBS Mortgage Loan Approval Process In our previous instalments, we discussed the mortgage application requirements, types of mortgages and the different BBS savings and investment accounts tailored to meet your needs. In this issue, we will focus on the processes that your mortgage loan has to undergo, leading to the final decision. The mortgage loan process begins with the consultation stage. At this point, there is no commitment made to you by BBS. The BBS Sales Consultant explains the BBS mortgage product and requirements with reference to available material as indicated in the mortgage checklist. The explanation is highly dependent on the customers’ specific needs. As you may recall, one of the most important documents required when applying for a mortgage loan is a valuation report. The Sales Consultant may at this point issue an instruction to value, which a customer will give to a specified valuer. The specified valuer must be on the BBS panel of selected valuers. A BBS mortgage application form will be handed to the customer for completion. Further, where a structural survey is required, particulars of qualified engineers will be provided to the customer. The customer will then submit the mortgage loan application form, together with all other requirements, which we discussed in the first instalment. These include: payslip, three months bank statement, certified copy of your national identification Card (Omang) or passport for non-citizen, copy of marriage certificate or decree absolute where applicable, form A or B, letter confirming employment, structural survey report, valuation report, copy of the title deed and the right of ownership to a property described therein and offer of sale letter. The Sales Consultant receives all these documents and verifies their completeness using the BBS mortgage application checklist. If all documentation is in order, a customer file is opened. The following will be performed on the customers’ file once all documents have been submitted; ITC Verification This is where a customer’s credit status is checked. At this point, BBS aims to establish how ones credit history fairs. If the customer’s credit status is adverse, a waiting period may be imposed on the client.
Credit Scoring BBS will also establish a customers’ credit worthiness using a credit scoring model. This numerical expression is used to assess the likelihood of a customers’ ability to repay the debt. During this assessment, certain information is required from the client, including a person’s credit history. A score generated by the system will have an impact on affordability. Loan Processing At this stage, the BBS Sales Consultant will prepare a motivation letter, narrating the applicant’s request, and also recommending the loan amount the Society may consider. The Sales Consultant will then escalate the file to the Sales Supervisor for review. Once approved by the Sales Supervisor, it is sent to the BBS Credit Section for consideration. The Credit Manager will review the file and send it back to the Sales Consultant upon approval, or decline the loan application. The loan can be declined for a number of reasons, including non- affordability, bad credit history or bad account conduct as reflected in the applicant’s three months bank statement. Account Opening Once the file is received from the Credit Manager, the Sales Consultant creates a customer identification figure (CIF) in the system. The Supervisor authorises the allocated identification figure, which is unique to every customer. Once the CIF has been approved, the consultant will open a mortgage account, which is also approved by the Sales Supervisor. NB: Once the account has been opened, the Sales Consultant will proceed to prepare a draft mortgage offer letter. Once approved, the customer will be invited to come and sign, if they are satisfied with the terms and conditions therein. Declined Loan In the event that a client’s loan is declined, a Sales Consultant will provide the customer with a decline letter. The decline letter will outline the reasons why the loan application was unsuccessful. BBS has qualified Sales Consultants who are ready to assist you. You may reach them at 3971396 or visit any of our branches country wide for assistance.
Boidus Feature Page 6
BOIDUS FOCUS December 2014
Progress on the Road to Regulating the Construction Industry by Kibo Ngowi & Keeletsang P. Dipheko
Your Garden as a line of defense against intruders There are all kinds of alarm systems that you can install in your home for security, but did you know that your landscape can help thwart intruders before they even get close to your house? You may already have a sophisticated security system in your yard and not even know it. There are also a lot of plants that have a “rather pointed” type of protection. Some bushes can be grown as hedges to give intruders a prickly welcome mat by walls or under windows. A trellis can allow you to train a climbing rose/bush along the window’s edge. With a climber though, you want height, not width. If it’s located along a walkway, prune off any branches that might grow into the walkway. Use garden ties to secure the branches loosely to the trellis. In about two years, the climbing rose should reach the top of the trellis, looking good inside and out. Security however, isn’t all thorns
CONTINUED FROM THE FRONT PAGE
PART 1 - MIST PS REFLECTS ON MINISTRY’S PERFORMANCE IN 2014 to provide funding for the Architects Registration Council and MIST has also been actively involved in the consultation process for the bill on the establishment of an overall body to regulate the construction industry and Mokotedi says they are eager to have the bill presented to Parliament sometime next year.
and prickles; it can also be the edge of a leaf. Some plants have spiny teeth around the leaves that are a guaranteed hindrance to unwanted hooligans. When planning for your home security, one of the best defenses can be the eyes and ears of your neighbors. If you have a junglelike yard, your neighbors can’t keep an eye on your front door when you’re not at home. You also want to be able to see out of the windows, and too much vegetation makes that impossible and also provides a space for intruders to hide. Don’t get rid of the plants; just thin them out. Also, plant or prune your trees so that the branches don’t overhang the roof of your house, which could provide access to an intruder. Several feet of space between the roof and the canopy are much safer. “As you plan the safety and security of your home, don’t forget to include the yard and garden,” says Hoffman. “Your yard is your first line of defense.”
In a wide-ranging interview with Boidus Focus the Permanent Secretary of the Ministry of Infrastructure, Science & Technology (MIST) Dikagiso Mokotedi explored the strides his ministry has made in regulating the industry and reviving terminated projects and also defended the controversial government focus on maintenance over new projects. Reflecting on their proudest achievements of 2014 Mokotedi is eager to highlight that for the past 2 years MIST has been working to revive terminated projects and in 2014 they managed to get two vital projects back on track. The Sir Seretse Khama International Airport is now expected to reach completion by March 2015 while the Francistown Stadium will be completed by April 2015. There are two separate contracts for the work on the stadium; one is for the playing pitch and track while the other is for the mechanical and building related matters. The playing pitch and athletic track will be ready by April 2015 but a period of three to four months of growing and maintaining the grass will be needed before it’s ready for use. Meanwhile the building and mechanical aspects will be ready by June 2015. 2014 has also proved to be a good year for industry legislation or as Mokotedi puts it: “Our programme of regulating or creating a favourable environment for the construction industry is slowly taking shape.” In April the Quantity Surveyors Registration Act was passed in Parliament and within months a Registration Council for the profession had been put in place. Also in 2014 the Architects Registration Act was amended to allow government
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Most of the construction projects that have been undertaken in the past few years have been for maintenance and refurbishment and many industry stakeholders have criticized this approach as being the source of industry contraction but Mokotedi is firm in the rationale behind this strategy: “As you know, Botswana like the rest of the world has been affected by an economic downturn so government took the deliberate decision to slow down on new projects while still completing the projects that were initiated before the downturn started. At the same time, since we have lagged behind in the refurbishment of our facilities, we need to put resources into that endeavour. So our advice as a ministry has been for government to use the little resources we have on maintenance for now because if we pursue new projects without maintaining the existing structures they will collapse and become unusable. However, refurbishment should not be seen as a substitute for new projects because even if a decision was taken to pursue new projects this maintenance would have to continue.” In the past few years there has been tension over the state of the construction industry with official government statistics pointing to growth in the sector while the actual professionals on the ground claim the industry is in crisis. Mokotedi’s position on this conflict is a diplomatic one: “I would not argue with people who see the industry in crisis but on the other hand I would say that it’s not all gloom and doom. The only difference here is that maintenance is not as fashionable as building new projects but it is equally important.” “Our mission as a ministry is to continue to improve on our service delivery in the coming year to make sure that the industry is assisted to get out of recession because the more projects we are able to do the more we are able to help the economy and resuscitate some of the collapsed SMMEs that rely on construction activities. So our desire is to be more efficient and implement as many projects as we can so that we can start to bring up the economy.”
BOIDUS FOCUS December 2014
Guest Columnist Page 7
THE REAL ESTATE ADVANTAGE-
RETROSPECTION We have come to the end of 2014; the end of a year is usually filled with immense excitement about the upcoming festivities and the prospects for the New Year. It is however necessary to reflect on one’s year in order to celebrate with a purpose and to enter the future with a clear direction in mind. Real Estate is no different from any other investment asset class. Often at the end of a business financial period, financial statements are reviewed and interrogated. With real estate a review of your investment would require the same kind of interrogation. Oftentimes people forget to treat real estate as an investment. We believe that the value of real estate increases infinitely and that every property investment will somehow work itself out into an investment. A submission is presented here to you to consider property slightly differently from the norm. We start with the basic assertion that the derivation of value from land is a real estate function. That assertion would lend itself to a further assertion that real estate is the first fundamental requirement for any economic activity. With this very assertion the question begs, have you derived the best possible value out of your real estate? Humour me with one more assertion about real estate. Consider residential property for instance; the source of residential property investment is rental income paid by households. Household incomes in Botswana have been constant for the past few years. On the other end, most residential property investments are financed through debt that is secured by household income and/ or rental income. Either way the investments are directly backed by rental income. Considering yourself a real estate investor, what does this mean for you? The lack of growth in household income has limited the extent of growth of residential housing; the logic is that if household income is not growing further and faster upward, then 10% escalation rates can no longer be the order of the day. With an increasing cost of living, rental becomes the first expense households’ review. In the current market where low to medium cost housing are increasing in supply and quality, they become a viable option for the high income dweller, particularly in Gaborone.
More and more Batswana are finding quality brands at affordable prices online, with a tolerance for shipping times because our centres do not yet offer a shopping experience that would be considered memorable by a consumer. As an investor in this sector that has historically recorded monthly cyclical foot traffic, perhaps it is a worthy consideration to review the shopping experience. Free wifi becomes a viable value add, for example. In your consideration of your investment success, note that the main driver of real estate growth is the lending or funding environment. As such, according to the latest Econsult Economic Quarterly Review, banks are experiencing the following:
• A drop in excess liquidity • Banks are now fully lent due to shortage in deposits • Bank Profitability has significantly dropped from 55% in 2006 to 25% in 2013 You would note that banks have to retain a certain level of liquidity in order to provide lending. Real estate as a single sector contributes the highest proportion of lending to households. So we should expect that lending restrictions will become tougher in the near future. The level of risk banks are now willing and able to make, in terms of lending projects, will dramatically decrease; this will also be perpetuated by the performance of the commercial sector. The commercial sector has had a higher development rate over the last 5 years than Botswana has experienced in the past prior to this period. Most of this was developments in the CBD and Fairgrounds. The anticipated income at the time of feasibility or approval of the loans versus the achievable income in current market conditions
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leaves much to be desired. So that immediately requires the banks to exercise further caution as the probability of success on assets already financed is reducing by the day. In real estate one should expect to see banks lending preference leaning more towards tried and tested developers or property owners who have strong balance sheets to bank up their debt should the development not succeed. So as you reflect on your current property portfolio, note that the good times are behind you and tough times lie ahead. When you consider the future of your portfolio engage with your Property Consultant, Advisor or Expert, on which areas you should review to ensure the sustainability of your investment. Sethebe Manake ©vantage properties info@vantagepropertiesbw.com
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Boidus Feature Page 8
BOIDUS FOCUS December 2014
Progress on the Road to Regulating the Construction Industry
by Kibo Ngowi & Keeletsang P. Dipheko CONTINUED FROM THE FRONT PAGE
PART 2 - UNDERSTANDING THE CONSTRUCTION INDUSTRY REGULATION BILL The creation of a regulatory body for the Botswana construction industry is an endeavour that various sector stakeholders have been struggling with for more than two decades but finally it seems that the dream may soon become a reality. A Working Committee was tasked by the Ministry of Infrastructure, Science and Technology (MIST) to put together a proposed Bill for a regulating authority and the committee is now at a stage where presenting the bill to Parliament seems within reach. Boidus Focus spoke with Nic Van Rensburg, a member of this committee, to find out what the bill in its current form aims to achieve and where it stands. Note that the word “contractor” is used in the sense of a person or entity that does construction work whether it consists of small or large building and/or civil works. BF: For those who have not heard about the construction bill, can you explain what this industry regulation bill aims to achieve? NVR: The aim is to create an independent authority that will control and regulate the industry. The Authority established by this proposed bill will not be governed by the Government of the day, but by the construction industry in conjunction with Government. This is a novel concept and will no doubt be the cause of many heated debates in the days ahead. BF: How will the bill benefit construction industry professionals? NVR: The bill will in the long term allow all construction industry professionals to be part of a greater body that will look after the industry and its issues. BF: How will it benefit construction industry consumers? NVR: A person having a problem with a contrac-
tor can lodge a complaint to the Authority and his issue will be addressed with the effect that the contractor’s license to operate may be suspended or withdrawn. BF: What is the proposed structure of the regulator? It is proposed that the Authority will have a Board on which industry sector representatives and Government representatives will sit. The Authority Board will start by setting up the Construction Contractor Registration Board, similar to the existing Engineers Registration Board and in the long term it is envisaged that all construction industry registration boards will fall under the control and regulation of the Authority. BF: How does this structure ensure that all the various industry professionals will receive fair representation? NVR: The proposed Authority Board will consist of representatives from all sectors in the construction industry as well as representatives from Government so that Private as well as Public interests are looked after for the benefit of Botswana. Due to the number of sectors in the industry that want their own voice and the limited number of seats on the Board, Sectors will have to combine and elect the representative that will best look after all their interests. BF: What role will the organisation play with regards to the registration and regulation of industry professionals? NVR: The proposed authority will be in charge of a Construction Contractor Registration Board which will register, control and regulate the activities of construction contractors. As stated the proposed bill is written in such a way that the existing and future registration boards particular to the construction industry will be under the authority of the Construction Sector Regulatory Body.
BF: Does the Bill make provision for skills training? NVR: The proposed Bill includes a training board under the Authority Board that will look after the construction industry training needs just as the mining industry looks after its own training. It was felt that the current education regime in Botswana does not produce students that are accepted by the industry. At this moment we are talking mostly about the vocational trades, but will definitely wash over to construction industry sectors with more professional skills. This will give our students a chance to go out and earn money outside the small Botswana economy. (Total population: 2million, working force: 287,000 people. Every person that has a job supports about 7 people. Included in the supported section are 134,000 government employees who are employed to run the Government and serve the nation. A ratio of 1 government employee for every 14 people) BF: How does the bill propose to tackle issues of corruption? NVR: The proposed bill will setup mechanisms to prevent corruption and corrupt practises as far as possible, but it should be understood that until we as a nation are not prepared to: Protect a whistle blower on corrupt practises and treat him or her as a hero; Blow the whistle ourselves when we get to know of corrupt practises; and restrain ourselves from selfish enrichment at the cost of other people, we will never be able to stamp out corruption or corrupt practises. BF: Various attempts have been made to establish a body of this kind in the past. What are the obstacles that led to the failure of these previous attempts? NVR: This has been an initiative from the Construction Industry itself for the past 21 years, but suppressed by various government officials
PART 3 - BIE PRESIDENT SPEAKS ON THE REGULATION OF THE ENGINEERING PROFESSION The BIE is a voluntary association that was established in 1983 by a handful of engineers, mainly from mining and civil, who were concerned about the practices of engineering in Botswana. Unfortunately the Institution’s membership didn’t grow as one would have expected because most of the engineers did not see the benefit of being a member, particularly that there was no legal instrument regulating the profession.
The Botswana Institution of Engineers (BIE) scored a major coup by becoming the first fully regulated professional body in the Botswana construction industry. Boidus Focus met with the current immediate past President, Linda Moseki, who is also the first female engineer to lead the Institution in over 30 years, to find out what the other built environment professions can learn from the engineering fraternity for their own bids to become fully regulated.
During Moseki’s tenure, July 2011 to November 2014, Moseki continued the battle by working very hard with her Council to ensure that the professionalization of engineering in Botswana through statutory regulation was achieved. She says it took BIE 10 years, from 1998 to 2008, for the amendments to the Act to be approved by Parliament. In 2008, Parliament finally approved the amendment of the Engineers Registration Board (ERB) making it a self regulatory body and for public officers to be registered with the ERB as well. It is now mandatory for all qualified engineers to register with the ERB and to be issued with prac-
ticing certificates in order to practice in Botswana. Currently BIE has about 600 active members from various classes of membership including students, technicians, graduates, engineers and others. There is a significant increase compared with the 2011/12 figures. This is attributed to the mandatory registration and the BIE efforts of sensitising stakeholders on the benefits of Engineers engaging professionals who affiliate with Professional associations for accountability purposes. Moseki also stated that new BIE Certificates with a one (1) year validity period were introduced on the 1st July 2014, not only to assist with the financial sustainability of the Institution, but also to ensure that only qualified engineering professionals practice in Botswana. Certification is only carried out by BIE. Most members use the BIE Certificates for tendering purposes and employment opportunities. Communication regarding the use of the new BIE Certificates has been sent to all stakeholders including ERB, Government, Parastatals
over the years, who saw it as an unnecessary need and also as a duplication of existing associations already operating in the industry. It was revived by BOCCIM and the industry and then taken aboard by MIST in January 2011. BF: Are you confident that this draft of the bill will not be hindered by these obstacles? NVR: Since the buy-in from MIST, a working committee consisting of industry representatives has been working on the proposed bill. We do not foresee smooth running ahead as any paragraph or section that will erode an existing body or person’s power will cause friction and fights but we are determined that this proposed bill should be promulgated so that we have a chance of looking forward to a more controlled construction industry where delinquent operators, whether construction contractors or professionals in the construction industry, are held responsible for their mistakes. BF: What remains to be done before this bill can be presented to parliament and what timeline are you targeting to be done with the process? NVR: The proposed bill is currently at a private lawyer for review and to ensure legal language is correctly used and cross references are correct, etc. (One can say we are at the stage where the i’s are dotted and the t’s are crossed). This particular part of the process was enabled by the financial power provided by PPC Cement. When the bill comes back from the lawyer, it will be presented to the working committee for final review and acceptance whereby it will be presented to MIST where after the proposed bill will be scrutinised by their legal department for onward delivery to the Attorney General’s office and presentation to Parliament. We envisage the process to be finalised by next year, but of course we have been battling for 21 years already so anything can still happen.
and Private Organisations. Moseki stated that the new Council will continue sensitising the public about the same. Moseki said their wish as BIE is the quick implementation of an Engineering Standard Fees scale like in other professions to ensure engineering is correctly valued. This will alleviate collusions or corruption in the industry because the award of tenders will be based only on the technical competencies and not the lowest tender as is the case now, resulting in better work ethics and standards and improved service delivery because Engineers will be remunerated accordingly. Going forward, Moseki pledges her support to the BIE Council in advocating for high engineering standards and professional ethics and also fulfilling her dream of instilling interest in young children at primary and secondary schools to undertake science and engineering as a career to ensure the sustainable development of the country through innovation. She is hoping that the new President will implement the MoU signed with ERB and SAICE and continue with the promotion of high standards to protect the general public and the environment.
BOIDUS FOCUS December 2014
Advertising Page 9
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BOIDUS FOCUS December 2014
Lifestylenoted: CHRISTMAS DECORATING IDEAS by Tshepiso Motlogelwa, Interior Designer - tsmotlogelwa@gmail.com When decorating your home for the holidays the key is to keep it simple and to avoid clutter. Limit the number of festive decorations and instead incorporate one or two ideas that pack a decorative holiday punch. Use these low budget decorating ideas to trim your tree, decorate your home and set the table this holiday season.
Kitchen design It is that time of the year again when a lot of people undertake renovation projects for their homes. One of the most popular areas in residential interior designing is the kitchen. It is also one of the most costly areas to re-contstruct. A lot of people make an attempt to do it themselves as opposed to hiring an interior designer in order to save a bit of money. Whatever decision you make, thorough planning must always be conducted when designing your kitchen. One of the most common mistakes in designing your kitchen is not taking full advantage of the space by placing cabinets. It is a must in any home kitchen to have cabinets in which you can place your dishes, grocery supplies and glasses. Also, it is important to
If you don’t have enough vases for this flower array, you can use your wine glasses to pull off this arrangement in a short time. Prepare enough flower bunches to extend down the center of the table.
Don’t throw away your empty canning jars! Wash and dry jars and layer the bottom with the greenery of your choice, and then add a handful or two of cranberries. Pour water into the jar, causing the cranberries to float to the top. Insert a floating candle.
Make a charming table centerpiece with a colorful colander. Fill it with holiday greenery (you can use green leaves and berries). Insert a glass candleholder in the center and add a white unscented candle. Use a small colander to accent a cocktail table and a larger one for a dining table.
For a fresh holiday centerpiece, build a tiered tree with crystal candlesticks and plates or graduated cake pedestals. You can also use plates and wine glasses to achieve this tier.
have a cabinet space that you can place near your oven. This will give you convenience when cooking using your oven. For pots and pans, place floor cabinets just across your stovetop. Another method for using space is to place cooking materials in your storage cabinets. You can also fit a divider in your kitchen drawers or make use of a full extension glider to utilize the space more effectively. Installment of extra large islands inside your kitchen is one of the most common mistakes. Your kitchen light is also one of the things that you must focus your attention to in redesigning your kitchen. The most appropriate kitchen lighting is fluorescent or halogen illuminated lights. Working in a kitchen with inappropriate lighting will be extremely difficult.
BOIDUS FOCUS December 2014
Guest Columnist Page 11
Lifestylenoted: Mexican Fusion Restaurant Mixes Modern, Rustic & Cultural Design by Tshepiso Motlogelwa, Interior Designer
Overlooking the beautiful scenery of dense Eucalypti on the banks of Notwane river, this newly opened Mexican American fusion restaurant captures the essence of a relaxed, fun and personalized dining experience. Johnny Jalapenos Mexican Fusion bar and Grill has created an alluringly exotic atmosphere to enjoy a night or celebrate a special event. The goal was to make this place look simple, laid back, and fun but warm and cozy at the same time with emphasis placed on the food they serve. Screed floors, exposed bricks, polished ce-
ment walls and lots of wood from reclaimed furniture lends an industrial look to the space. The space has a modern feel but there are elements of Mexican culture, both contemporary and ancient. There’s a wall lined with sombreros (Mexican wide-brimmed hats), potted cacti in different corners and a logo consisting of the face of a Mayan within the Mayan calendar. There’s also a playfully designed red pepper mounted on the wall to hold the fire extinguisher, presumably for those who find the Mexican food too hot to handle. However the manager Tracy says they were careful to incorporate beef and other more locally common foods into the menu rather than making the selection strictly Mexican cuisine. She also says that the venue has become a big attraction for diners between the ages of 25 and 30 who start off their Friday night at Jalapenos before moving on to explore the city’s night life. However, it could serve just as well as the destination for a unique Sunday outing for the family.
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Home Improvement Page 12
BOIDUS FOCUS December 2014
DIY Projects - Building a Paver Patio
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Pavers are available in a variety of sizes, shapes, colors and materials. Most types include lugs or grooves that make it easy to create even, uniform seams or joints between the pavers. Selecting the right building material is important. You want durability and a product that looks good. [Source: diynetwork.com] Prep the Area
When considering where to build a patio, choose a flat, level area. Then have your local utility company come out and make sure the area is free of underground utilities. Next measure the area, so you can order the right amount of materials. Our area is 11’ x 11’ square. Once you have the materials, do a dry layout of your design. Do this in any level part of the yard. Play with
the pattern and design, see what works and make sure you have enough materials.
At your patio location, measure the area and pound four stakes into each corner. We did ours 12’ square – 11’ square plus 6” on each side for edging. Tie mason string to mark off the square. Measure diagonally across the stakes from opposite corners to make sure the patio area is square.
Lay the Base
Once the patio layout is done, you’re ready to excavate the area. Dig deep enough to allow for the base material under the pavers.
Pavers vary in thickness. The rule of thumb is to dig to the thickness
of the paver, plus another six inches for a solid base.
Lay the Pavers
With a firm, flat base prepared, you’re ready for the pavers. Start in the corner, setting each paver into the sand by tapping it lightly with a rubber mallet.
Our pavers are 2-1/2” thick and we want them to be level with the ground. We need six inches of base material plus 2-1/2” for the paver height, so we are digging 8-½” deep.
Using the set pavers as stepping stones. Fill in a small area then check with a level to make sure they are even. Remember, you want a slight slope for drainage. Make adjustments with the rubber mallet.
It’s a good idea to create a slight slope away from the house to encourage water runoff — a 3” slope over a 12’ patio should be fine.
Now it’s time to add the base material. First, fill the excavation with compactable gravel, to a depth of five inches, tamping it down as you go. Rake the top surface smooth and level with a steel rake. To check for high and low points and to make sure your area is level, place a long, straight 2x4 on edge across the area then place three-foot level on the 2x4, adjust the gravel as necessary. Use a plate compactor to compact the gravel, which will create a firm and long-lasting base for the patio. You can rent a plate compactor for as little as $50 a day. For best results work the compactor in a circular motion and go over all areas at least twice.
Finish the Base
With the gravel base compacted, install galvanized steel edging around the perimeter of the base. This edging marks the outside of the 11-foot square to be filled by the pavers. Edging is also available in plastic or aluminum.
If a paver is too low, remove it, add sand and reset. Following the pattern you dry laid earlier, it won’t take much time to finish setting the pavers. The final base material is a one-inch layer of sand.
Spread the sand over the gravel base to a depth of one inch. Screed the sand with a 2x4 using a pair of 1-inch PVC pipe and a depth guide. You can create similar guides by sawing wood into long, 1-inch thick strips. Then remove the guides and fill in the remaining sand.
Fill the Joints
Now that the pavers are set in the base, use a push broom to fill in the joints with a fine layer of sand. Sweep off the excess sand from the patio surface.
To pack the sand into the joints, spray the patio with water from a garden hose. When the patio has dried completely you may need to fill in certain joints with more sand.
BOIDUS FOCUS December 2014
Advertising Page 13
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BOIDUS FOCUS December 2014
Art Attack by Sophie Lalonde
This week, Andrew Shannon, the man who punched a hole through a Claude Monet painting has been sentenced to five years in prison. The incident took place in June 2012 in the National Gallery of Ireland. The Monet painting titled ‘Argenteuil Basin with a Single Sailboat’ (1874) is worth US$10 million. The security guard who restrained Shannon also found a can of paint stripper in his bag. This is not the first time a piece of public art has been vandalized but it leads us to the question: Why do people do it? Are they making a statement? Is it a political statement, an economic statement, a philosophical statement, or a statement about art and creativity? Is there always a logical reason behind the vandal’s actions or are they simply crimes of passion? Looking back at around 455 AD when the Vandals invaded Rome it is common knowledge that a huge number of artworks were destroyed and damaged. This was the start of the deliberate destruction of art. Since then there have been an uncountable number of incidents in which vandals have defaced art, either claiming it to have been an accident, a form of protest or a work of art in itself. Some works get more attention than others: Rembrandt’s ‘Night Watch’ has been vandalized three times. The first time was in 1911 when a former navy chef attacked the artwork with a knife. Fortunately, the varnish on the painting is incredibly thick so he was unable to puncture the surface. In 1975 William de Rijk repeatedly
slashed the painting, later claiming that Jesus had made him do it. He was soon after admitted to a psychiatric hospital. To this day, evidence of the slashes still remains. And finally, in 1990, the work was vandalized again when an escaped psychiatric patient sprayed it with sulphuric acid. It has since been restored. Similarly, Leonardo Da Vinci’s ‘Mona Lisa’ has had its fair share of harm. It is now one of the most protected artworks in the world, having been incased in bulletproof glass. What is it about these paintings that has caused
so many vandals to choose them as their subjects? No obvious statements have been made or come to light. Rindy Sam, a French Cambodian, was fined in 2007 for kissing and consequently leaving a lipstick mark on Cy Twombly’s untitled triptych. The piece was on display in Avignon, France with the Lambert Collection. Rindy Sam told the court she was ‘overcome with passion’ when she saw the white canvas. ‘I just gave it a kiss. It was an act of love when I kissed it. I wasn’t thinking, I thought the artist would understand’. An unusual uncontrollable crime of passion it would seem. In October 2012, a Rothko mural, housed in London’s Tate Modern, was vandalized by a man claiming to be making a comment on contemporary art. Before he was arrested, Mr. Umaniec told the BBC that he was not a vandal, adding that ‘art allows us to take what someone’s done and out a new message on it’. A supposedly grand statement to the art world gone horribly wrong, Mr. Umaniec has been jailed for one and half years. Marcel Duchamp’s ‘Fountain’ is one of eight versions, which are on show internationally. In 1993 Mr. Pinoncelli urinated on a version of ‘Fountain’ at an exhibition in Nimes, France. In 2006, Mr. Pinoncelli again attacked the porcelain urinal with a hammer at the Pompidou centre in Paris. The vandal claimed that the attacks were a work of performance art and argued, ‘I made it fresh and new, I created something new, of which Duchamp would have approved’, claiming a once radical work of art had become institutionalized. Suffragette Mary Richardson vandalized Velazquez’s ‘Rokeby Venus’, currently on display at the London national Gallery, in 1914. Richardson took a meat clever and slashed the painting seven times. Ms. Richardson explained her action as a protest. ‘I have tried to destroy the picture of the most beautiful woman in mythological history as a protest against the government for destroying Mrs. Pankhurst, who is the most beautiful character in modern history’ she said in a press statement. (The painting has since been repaired) Art is a reflection of our history. Different to the written word, an artwork cannot only depict where we are in society socially, economically, politically, and philosophically but it can also induce an emotional response which, without question, differs between individuals. Are these people choosing art as the subject of their crimes because art is what remains as a testament to where we are in the world right now?
Art is All Around Us by Tlotlego Gaogakwe
You, reading this, yes, you… I am writing to remind you that you are, in actual fact, a piece of Art – A living, breathing, walking, thinking, feeling piece of Art. Let’s explore this, shall we? Take a minute to consider your creation, when all of your being was strung together by the forces of the Universe, when bone was stringed to muscle, when the seed of the liver and lungs was planted and washed with blood and then all was eventually bundled by the skin cloth. It was in essence the making of the most complex piece of Art. And so what if we are Art? Well, this is where it gets slightly tricky. We crawl, take our first steps, grow older, and then maybe marry and just get on with life. With each stage we gradually forget our original essence. Life takes a hold and amnesia grows bold. We lose the time and often the space to rejoice in our artistry. How often do you take a minute to listen to your child’s nursery rhyme singing—the way children often absent-mindedly repeat the song they learnt at school that day? They may mangle the words but they carry the spirit of the song. Art still lives within them. When was the last time you took a walk around your neighbourhood? Do it. Do it with open eyes. Look at the absolute splendor of Art reflected. It’s in the structure of the houses. It’s in the dry, dusty hues that are the Botswana painting. Even the street lamps outside your house line up in a perfect, orchestrated order like sentinels keeping watch. As I sit writing this, there is a gentle rain falling outside my window. Have you taken the time to appreciate that quiet music of rain that lingers in the air on a day like this? You have probably forgotten how to hear it. I am jubilant. There is an Art Renaissance in Botswana. The powers of Music, Dance, Architecture, Design, Fashion, Visual Art, Media, Theatre and Writing are being welcomed back. They are being awakened and in their return Batswana are assured redemption from our own state of sleep. We have existed in an ignorant, unquestioning state. All of this Art will force us to examine our lives, to ask ourselves the questions we would otherwise avoid, to look ourselves in the mirror and wonder if our lives are what they could, what they should be. Is your life what it should be? Do you see the trees in your neighbourhood? Do you hear
Claude Monet's ‘Argenteuil Basin with a Single Sailboat’ (1874), after Shannon punched it
that music in the falling rain? Do you appreciate the awkward, uncontrolled movements of your toddlers as they dance? You should because these are the things that will sustain us. Some of the Botswana Art that has kept me alive this year includes: • Tumisang Baatshwana’s ‘Keneilwe – A Dance for the Given’ which explored the marginalisation of our brothers and sisters from the Kalahari; • The Madi Majwana financial literacy radio show currently on air; • The numerous visual art exhibitions that showed at various galleries in the city, from the recently re-opened Thapong Visual Arts Centre to the new kid on the block Sophie Lalonde Art at the iTowers; • Samantha Mogwe’s voice; • Meeting with and working with numerous, unbelievably talented Batswana writers on different projects. The word will continue to sustain; • The spoken word poetry which is currently establishing itself in numerous poetry outfits around Gaborone; • The music that lives on at Botswana Craft; • And the Tuesday film screenings with the Gaborone Film Society at Maru-aPula School. These are obviously very personal choices. That is the beauty of this beast—you find Art that speaks to you, and you listen. I am absolutely happy to be writing this inaugural column for Boidus Focus. With each edition, there will be a perspective, specifically devoted to reflecting on Art. This is bound to be a blissful marriage. Why? Take a look around this cityscape. The new CBD is a case in point; the gradual re-design of Gaborone by visionary architects and building contractors means they are painting a new city for us. They are urging you to live Art every day by looking at it, working within its walls and driving by it on your way to the shops. For this I will be forever grateful. You have many more mentions of Art – in all its disciplines – to look forward to in this column. Now that you are done reading— get up and go walk. Remember the Art within you. Tlotlego Gaogakwe is the Chairman of The Company@Maitisong – maitisong@ gmail.com
BOIDUS FOCUS December 2014
Regional / International News Page 15
Inside the Building Materials Supply Industry by Kibo Ngowi
CONTINUED FROM THE FRONT PAGE
Cashbuild Focuses on Renovation Rather Than Expansion in Botswana Market it’s grown into one of our most profitable businesses,” says Thorrenson. “We’ve been around for a long time so we believe the brand and what it stands for is what sets us apart.” Thorrenson explains that Cashbuild occupies a niche in that contrary to many of its competitors it has a very narrow focused range: “We specifically focus on structural building materials. If you want to build a basic house, you can build everything from start to finish with us, but we are not focused on the DIY market as much as our competitors. Probably 70% of our products are basic structural materials and that’s our strongest selling product.”
The major portion of Cashbuild’s business is in its origin country of South Africa but the company has 30 odd stores outside SA in Botswana, Lesotho, Swaziland, Namibia and Malawi. Boidus Focus was lucky enough to speak with Cashbuild Operations Manager Shane Thorrenson on one of his trips to Botswana. Cashbuild has been in Botswana for more than 30 years and currently has 10 stores within the country. “We’re very happy with where we’ve come from in Botswana because
However, there has been a positive turn in the amount of attention and investment the brand has given to the Botswana market in the past few years because they realized they were not performing as well as they could within the country mainly due to neglect. So they deliberately decided to focus on their oldest stores across the region and in Botswana where they’ve been operating for 32 years there are very old stores that are still standing so they have generally focused on upgrading these stores in the past few years: “Earlier this year we upgraded our Lobatse branch, next year we’ll be doing Francistown and then we’ll look at other older stores we have in
the country.” Thorrenson goes on to explain that when Cashbuild was first established it was a wholesale business but over the last 10 to 12 years the company has started to focus more on the retail market. Even the way they are constructing their newer stores is very much more focused on the retail side than on the wholesale side. “The challenge is finding the right location,” says Thorrenson. “With our increased focus on retail we try to position ourselves in shopping malls. Secondly, as a business we are committed to utilizing local suppliers but the challenge is that we need to find more local manufacturers specifically with regards to structural building materials.” One thing Cashbuild is proud of is a CSR initiative they call ‘Art at Heart’. Every time they open a new branch or rebuild an existing branch, management and staff go through a process of selecting roughly 8 different schools in the area to which they donate building materials. They just donated P90, 000 worth of materials to schools in the Lobatse area. They’ve done the same in Maun and Gaborone and next year they plan to do the same in Francistown. According to Thorrenson Cashbuild throughout
all its stores in the region does between 40 and 50 of these projects every year and for each one the investment is around R100, 000 so between R4 and 5 million is given back to communities every year. They focus on primary schools and part of the initiative is to get the school kids involved in drawing and performance competitions from which winners are selected and given prizes. Thorrenson has been in his role as Operations Manager for the past 10 years and when questioned on how the trends of the building materials industry have developed he points to issues of competition and quality: “The industry has become extremely competitive over recent years and there are a number of very good operators who have done well and managed to expand their businesses. I think what would make it better is if we all focused more on the quality of the building materials being sold. If I think of the earlier days of Cashbuild, when corrugated iron was sold at 0.5mm thickness, as different retailers have found the market more competitive, they have gone to thinner thicknesses of corrugated iron so now what’s selling in the market is 0.25mm thickness. That’s literally half of what it used to be and often this iron is so weak that it only lasts for six months and then it rusts through. So I think a lot of effort needs to go into managing the quality of the products.”
Boidus Feature Page 16
BOIDUS FOCUS December 2014
Inside the Building Materials Supply Industry by Keeletsang P. Dipheko
CONTINUED FROM THE FRONT PAGE
Jamal Trading Founder Optimistic About Botswana Prospects Ahmed explains that business is like a child: it takes nine months before the child is born, then the child starts sitting, then crawling and then takes its first step. In business the concept comes, one step is taken, the funds are secured to start it and the company starts trading, but she warns that the most common mistake is for people to start too small or too big:
Jamal Trading is the only major building material supplier in Botswana owned and run by a woman and since its creation in 1982 it has grown to open several branches across the country, including those under the subsidiary brands of Nata Timbers and Eezi Build. Boidus Focus met with the Founder and Chief Executive Officer of Jamal Trading Company Mrs. Jamal Ahmed. Ahmed says what drives their organisation are their services, their prices and the good relationship they maintain with their customers. She insists that each customer is treated equally, whether it is a one thebe customer or a P2 million customer, they are given the same level of respect and quality service. Jamal Trading has several branches in Bo-
tswana, located in Lobatse, Molepole, Tlokweng and Phakalane. Then there is Eezi Build which has branches in Tlokweng, Serowe, Palapye, Selibe Phikwe and at the back of PPC where there is a wholesale and the manufacturing subsidiary Nata Timbers. Ahmed says in making a decision to open a new branch, like any other business, they look for areas with higher populations and take into consideration the level of development as well as consumer buying patterns in order to try and predict whether people would be able to buy from the store. “Three things are important to keep in mind in business,” says Ahmed. “Number one is honesty: you give your word and you keep it; number two is your service and number three is your prices. If you don’t compromise on any of these you will be successful.”
“When you are small, until and unless you can compete on the prices, you are gone because your expenses are not covered. When you go big then it’s very difficult to sustain the expenses. That’s the main thing you need to have in business; there should be money in your pocket for you to spend on the first year. In the second year it starts coming back and then in the third year you start making a profit. If you can compromise on your expenses with the little profit you make, then you can make it; otherwise it is very difficult to sustain any business and that’s the reason many business close down.” The sister company Nata Timbers makes specialized doors which are not manufactured anywhere else in Botswana. They also manufacture a wide variety of other timber products. Ahmed says they established the company because they wanted to have their own in-house supply of products. In Botswana, these products are usually bought from South Africa or Zimbabwe and this is a very competitive industry.
“In the past there used to be peak times for business but now the pattern has changed,” says Ahmed. “There are no clear peaks and down times; one month business is very good and the next one business is down. Before, December and January were usually good times for business because everybody was taking the goods to the villages to build houses but now there is no peak time as such.” She says that when the business was concentrated in Gaborone there used to be peak times as they used to supply as far as Kasane but because they have spread to open many branches servicing different parts of the country there are no peak times. Ahmed believes that through a building materials suppliers association plenty of things can be achieved, especially if government could provide some financial support for the development of schools for skills training and other essential activities: “I think if we can work towards the future with honesty we can go far ahead and our country will be somewhere higher than where it is today. Botswana is a heaven; people here are so loving and caring. The country’s name is regarded highly all over the world and if we work hard we can bring more and do better.”
BOIDUS FOCUS December 2014
Guest Columnist Page 17
Builders World MD Calls for More Industry Support From Government & Quality Regulators by Kibo Ngowi
Builders World Managing Director Mr. Sheik is a veteran of the building material industry and with the Executive Director of World Group (The parent company of Builders World) Samuel Mpuchane planning to retire, Mr. Sheik has now stepped into fill the gap, at least until a long-term solution can be agreed upon by their board. Boidus Focus spoke to him about Builders World and his thoughts on the industry. Sheik says there are three important things that Builders World has maintained since its establishment 25 years ago – good prices, good quality and good service. He emphasizes that most of the products they stock are South African Bureau of Standards (SABS) or Botswana Bureau of Standards (BOBS) certified. “With this we have built a good relationship with and won the confidence of the customer,” says Sheik. “Customers know that we stick to our promises and we stick to our standards.”
While Sheik approves of the work BOBS is doing he does insist that the organization must be more aggressive in that they must inspect all the building material supplies sold within the country and provide more support to the local industry in ensuring their products meet quality standards. “They have to work closely with local manufacturers,” says Sheik. “Instead of acting as a policeman they must be supportive of industry and actually guide industry players on how to best follow quality standards. Anything that local industry lacks they must advise and provide support.”
here and often it’s not quality cement: “So in that respect we feel that government must protect the local industries. It will encourage the local industry and it will help us a lot. And this goes for whatever industries we have locally, whether it is cement or paints. Locally manufactured products should be given priority, even if that means putting a levy on imported materials. If government does not protect local industry there are foreign giants that will definitely kill off local industry with their higher capacity.”
As a veteran of the building material industry Sheik is well placed to comment on how trends have evolved over time. In this regard he explains that consumer buying patterns within the country have changed because Botswana is slowly moving towards the DIY market. He adds that Batswana are also becoming more conscious of good service and quality products now and that they demand world class materials with good designs. Timber, paint and cement are Builders World’s three biggest selling products.
Sheik also feels that government should put measures in place to protect local industry. He points to the example of cement, saying right now many South African companies are ‘dumping’ cement in Botswana because in 2010 some of the big companies were producing at a high capacity but now they cannot sell as much as they were during that time within SA so they are dumping that cement
Sheik also feels government should improve upon its payment systems: “We supply a lot to local contractors and they are experiencing serious problems on the payment from the government. The delay in payment is delaying their projects so they lose their productivity. So government must develop speedy payment systems for the local contractors which can protect their productivity.”
The company currently has 12 branches spread across the country and Steel Junction is also part of the group. “Our future plans are to open more branches,” concludes Sheik. “Construction is going on in Letlhakane, expansion is underway in Palapye, and we are opening another one in Serowe soon. We plan to open more new branches in the next two years across Botswana.”
BUSINESS CONTINUITY MANAGEMENT by Alan David-Andersen, Risk Management Consultant, BIC
Business Continuity Management (BCM) is not a new risk management tool but the benefits of its implementation are being appreciated. Those companies who have been prudent and implemented it will be confident in the knowledge that they will have controlled interruptions to their business in the event of an incident. Of those companies that experienced a major data loss without having a plan in place, 43% never reopened, 51% closed within 2 years and 6% survived in the long term. BCM is not Disaster Management but rather alternative processes to continue the delivery/supply of products and or services, at an agreed level, following disruption. It does not always cover all departments in the business, but rather focuses on the key ones that support product and service delivery. Business Continuity is defined as: “the capability of an organization to continue delivery of products or services at acceptable redefined levels following a disruption” It therefore directly benefits the retention of cus-
tomers, market share and brand reputation. It does not cover IT recovery (technology a.k.a Disaster Recovery or DR) but does determine the recovery capabilities that IT must design and prepare for. Actually addressing IT shortfalls and recovery requirements is done under a separate work programme and can be governed by ISO 27031. BCM identifies potential threats to an organization and the impacts to business operations that those threats, if realized, might cause. It provides a framework for building organizational resilience with the capability for an effective response that safeguards the interests of all stakeholders. The company must firstly identify what is critical to its survival and wellbeing i.e. the on-going supply of volume based products or services, or where the company is obliged by statute or contract to supply the service. Thereafter the resources requirements to continue the delivery of products and services (following a disruption) must be determined, and finally a threat assessment against the resources must be carried out. The types of threats vary from business to business, but threats are real and should be dealt with if significant enough to avoid being forced into a crisis without a life jacket i.e. business continuity plan. This methodology can be used successfully by WUC, BPC, banks, mobile phone operators and other such companies. BCM implementation involves an investment in time, technology, tools, consulting and training. It requires regular evaluation, revision and practice. The threat does not necessarily have to be as damaging as a fire destroying your factory but can relate to far smaller incidents as well,
which may have a profound impact on your delivery or services. A few examples are: • Damage to a machine which is central to your entire operation. This could be due to mechanics, power surges, floods or any number of things, and result in non-delivery to clients leaving a huge opportunity for your opposition to fill the gap; • Your sole supplier being unable to supply raw/ components because of a fire/strike at their premises; • Competitors bringing out a new product or a business opening up in direct competition to yourself; • Key personnel retiring or being hospitalized; • The non-supply of utilities; • Environmental spillage/contamination; • Protecting your contracts or statute requirements; • Fire and weather related perils. The incidents/threats are endless and could be specific to your line of business. Every good BCM programme starts with a welldefined policy, which clearly identifies what must be protected and who is responsible for the roll out programme, audit and budgetary requirements. As part of the BCM programme, a solid crisis management plan must also be developed for Top Management to properly deal with the media, press releases and contact with your customers. In broad terms BCM is managed on the three levels: • Strategic – this is normally the EXCO level where the threats are determined and which items are going to be protected. Crisis Manage-
ment is also done at this level. • Tactical – this is the department/line managers who coordinate the business recovery following a disruption. • Operation – are responsible for the actual execution of the business continuity plans i.e. business process recovery. To give you an idea of the extent to which BCM can be undertaken, large multinational companies often go as far as securing alternative premises, entering into SLA agreements with other suppliers and sometimes, even with potential competitors. We must emphasise that this is not an alternative to Insurance in any form and in fact insurance is one of the obvious ways of protecting one’s business from a number of threats. But consideration should always be given to the fact that it is not possible to insure against customer loss and reputational damage and only a solid BCM programme can assist with this. In conclusion, BCM will assist you in returning your business to acceptable levels of supply/ service within an agreed timeframe. Beyond that timeframe, the situation becomes a crisis and the point at which the disruption is unacceptable can be considered a disaster. There are a number of other continuity plans such as disaster recovery, product recall, major hazards and environmental disaster that could also assist to effectively manage the crisis. The intention of this article is to give a brief overview of Business Continuity Management and hopefully create some food for thought. It is Botswana Insurance Company’s view that risk management is simply not taken seriously enough and has an extremely positive role to play in the overall performance of all companies no matter what the size or turnover.
Advertising Page 18
BOIDUS FOCUS December 2014
OUR CORE SERVICES
Sand-Blast Botswana (Proprietary) Limited has specialized in surface protection engineering for the past 6 years. Over this period of time, efficient techniques and up to date technology has been developed and applied to the fields of abrasive blast cleaning, industrial painting, high pressure cleaning, in-situ linings and concrete patch repairs.
Sand-Blast (Botswana) (Proprietary) Limited is a 100% citizen-owned leader in high-quality conveyor belt maintenance; wear protection and corrosion prevention whose operation started in Botswana in 2007. Since then Sand-Blast Botswana has grown from strength to strength. Our customers are serviced from locations in Palapye, Jwaneng and Orapa, with our Head Office being in Gaborone. The company operates nationally in the field of Corrosion Engineering and specialises in the protection of structural items, whether of concrete or steel, from detrimental degradation by the environment in which the item is located. To achieve this we offer a professional, technically competent and commercially competitive service. Since 200, Sand-Blast Botswana has striven to be a market leader in this field by continually introducing and using new products and methods in its endeavours to meet the changing requirements of industry.
Our services are specific to the protection of steel and concrete against corrosive and/or chemical attack, using a variety of coatings and membranes. Market assessment has shown a need for a more specialized and innovative approach, and Sand-Blast Botswana meets this requirement by utilising the highest level of project management skills while deploying the best resources available within the corrosion protection industry in order to meet our clients stringent programme, quality, safety and environmental requirements.
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BOIDUS FOCUS December 2014
Inside Molapo Piazza Courtesy of the BIDP by Kibo Ngowi
Boidus Feature Page 19
Inside the Building Materials Supply Industry
CONTINUED FROM THE FRONT PAGE
Builders Warehouse Adjusts to the Botswana Market by Keeletsang P. Dipheko
Builders Warehouse is one of the leaders in home improvement and building materials offering complete project solutions. Since the South African brand opened its first branch in Botswana three years ago, management feel it has settled quite successfully in the country. Boidus Focus spoke with the General Manager of Builders Warehouse in Gaborone Chris Vengesa to gain further insight on the store’s performance since entering the Botswana market.
On the 6th of December the Botswana Institute of Development Professionals (BIDP) hosted a Christmas party for their members at Flava Restaurant in the newly constructed section of Molapo Crossing Shopping Complex – Molapo II. Long standing BIDP member and Molapo Crossing owner Luc Vandecasteele took the guests on an exclusive tour of Molapo II during which he explained his vision and the decisions ultimately taken in the development process. Boidus Focus was on hand to take a look inside one of the country’s newest and most exciting developments. The BIDP was established in 1978: • To promote the advancement of and to facilitate the acquisition of that knowledge which constitutes the professions related to development in Botswana. • To promote the general interests of the professions and to maintain and to regulate them in the public interest. • To promote the participation of central and local authority into providing educational institutions in Botswana at Professional and Technical level and to stimulate and encourage the interest and participation of the Batswana people into entering the professions. • To promote the establishment of a professional Centre in Gaborone to facilitate the use of common resources in conjunction with the provisions of common support services for the professions. • To establish and maintain good relations with other professional bodies in Botswana, to establish links with similar Societies in other countries and to join and support any international bodies concerned with the work of the professions.
The second branch of the store to open in the country has been operational in Francistown for 18 months now and although it has been facing some challenges, Vengesa says they are optimistic that the same success they have enjoyed in Gaborone will manifest itself in Francistown; if this happens the brand will expand into the western part of the country. He goes on to explain that Builders Warehouse sets itself apart from competitors by providing a full spectrum of products: “You can get everything from foundation phase, through to finishing’s and decorative items and even appliances all under one roof.” He says their store is inviting not only for builders, contractors and handymen but women in décor and home improvements as well. As a South African supply chain, Vengesa stated that the Botswana market has been very receptive to their brand compared to South Africa where he says they are already a household name: “We are entrenched in the minds of customers as a convenient shop for everything related to homes and valued as a project partner to contractors. The
culture of home improvement in Botswana is rapidly increasing, and therefore we believe the potential can very well be compared to our operations in South Africa.” Vengesa says they initially had challenges with replenishing stock timeously, conceding that they did not anticipate the reception they would get from the market, which meant that the supply could not keep up with the demand: “This hiccup has been resolved and we are very pleased with the consistent flow of stock into the stores now. The opening of the second store in Botswana also assisted in evening costs out to get stock to our stores, which of course helps us keep our prices low.” He says they have experienced a constant flow of feet into their stores and huge flows during their carnival weekends which are held every quarter. Vengesa says they experienced the biggest surprise in the gardening section which in spite of the water restrictions has performed well as they focused on pot plants and flora that are not thirsty for water. Furthermore, in the building section they offer the lowest prices for all wet mill (bricks, cement, building sand, brick force) products. “Having been in this market for just over three years, I believe the opportunity to improve building material supply in Botswana lies in our ability as an industry to give our customers a wider range so they do not have to cross the border into Rustenburg to get goods that we could actually range in Botswana,” concludes Vengesa. “I also see an opportunity in quality improvement and better prices.
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BIDP President Tebogo Modisagape says their immediate plans for the future are to involve the membership at large in the affairs of the institution via a well-structured marketing plan in order to establish a bonding of interest in programmes and projects to promote the work of the professions through seminars and workshops. The organization has approximately 150 members ranging across all professions actively involved in the construction and development of Botswana, such as project managers, planners, architects, designers, engineers and quantity surveyors. One becomes a member of the organization by being sponsored and seconded by members in good standing. There are various categories of membership and for each category one has to possess adequate academic education and professional experience in the discipline of a specific profession. These categories are: Honorary member; Ordinary member; Associate member; Student member; Retired member; Corporate member and Reciprocal member.
Reliance Office Supplies We are Botswana’s leading corporate furniture supplier and have been in operation since 1989. We hold the exclusive Botswana franchise for CN Business Furniture, the prestigious South African company with 9 branches in South Africa. Having worked for years with interior designers, corporate layout specialists and on large corporate projects, we have now rebranded and redesigned our own space here in Gaborone. Whilst in the past we relied on catalogues and design software to display our furniture to customers, we now have a dedicated showroom to display our ranges in all their full-size glory. Please allow us the opportunity to welcome you into our working haven and to introduce you to our ranges of: executive and operator desking and seating;
reception furniture; soft seating; boardroom furniture; screens and partitions; training and educational furniture; restaurant, cafe and canteen furniture and storage and filing systems. Our furniture is of the highest quality, with most products holding a 5 year warranty. We showcase ranges for all budgets including pieces designed and imported from Italy. We provide delivery and installation, so that you can order in the knowledge that your furniture will be set-up in your office to your exacting specifications. We understand that you spend an average of 264 days at work each year. Let us help you spend those days surrounded by the beautiful office furniture you deserve.
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Professional Practice Page 20
BOIDUS FOCUS November December 2014
DISPUTE RESOLUTION – To court or not to court?
The judge ruled that: “… the question I have to answer was a simple one. It is whether a dispute or difference exists that warrants the current proceedings to be stayed pending the referral of the matter to arbitration. The question is answered by cl 11 of the agreement signed between the parties. Clause 11 provides that: “if any dispute or difference concerning the contract shall arise between the Employer … and the Contractor such dispute or difference shall be and is hereby referred to arbitration in accordance with the Arbitration Act (Cap 06:0) as amended..”
by Euan Massey and Natalie Reyneke
When parties to a construction contract are faced with a dispute, more often than not, such construction contract contains an agreement to arbitrate. In Botswana, arbitration is regulated by legislation. There are a couple of reasons why arbitration is preferred over litigation (the referral of the matter to court) being, inter alia, the escape from tedious court processes, the lack of public interest or involvement in matters, and the ability of parties to be able to select the person who will preside over the arbitration. However, parties all to often seek to refer disputes to the courts to determine, which may just be in vain. Where there is an agreement between the parties to refer a matter to arbitration, it stands to reason that a party may not unilaterally refer a dispute to court through the litigation process. In terms of section 6(1) of the Arbitration Act: “any party to a submission or any person claiming through or under such party, can apply to that court to stay the proceedings, and that court, if satisfied that there is no sufficient reason why the matter should not be referred in accordance with the submission, and that the applicant was, at the time when the proceedings commenced, and still remains, ready and willing to do all things necessary for the proper conduct of the arbitration, may make an order staying the proceedings subject to such terms and conditions as may be just.” In other words, a party to an agreement to arbitrate may apply to the court to stay any proceedings instituted in such court on the basis
of an agreement to arbitrate. In the case of B.M Packaging (Pty) Ltd v P.P.C. Botswana (Pty) Ltd the court held that a party to an agreement to arbitrate could not unilaterally elect to proceed to court for the purposes of resolving a dispute. This would, in effect, deprive the other party of its contractual right to arbitrate. The attitude of the court was that although it had a discretion
whether or not to stay proceedings, it would only exercise that discretion in favour of the litigant when the litigant had presented strong enough evidence that a dispute did not fall within the ambit of arbitration. The BIDP building agreement which is used regularly for building projects in Botswana sets out quite specifically in Clause 35 the type of disputes that the parties agree may be referred to arbitration. The Clause is long-winded and difficult to interpret, however, the important wording is underlined in the paragraph below. Clause 35 of the BIDP states: “1) Provided always that in case any dispute or difference shall arise between the Employer or the Architect on his behalf and the Contractor either during the progress or after the completion or abandonment of the Works, as to the construction of this Contract or as to any matter or thing of whatsoever nature arising thereunder or in connection therewith (including any matter or thing left by the Contract to the discretion of the Architect or the withholding by the Architect of any certificate to which the Contractor may claim to be entitled or the measurement and valuation mentioned in clause 30(5)(a) of these Conditions or the rights and liabilities of the parties under clauses 25, 26, 32 or 33 of these Conditions), then such dispute or difference shall be and is hereby referred to arbitration in accordance with the Arbitration Act 1959 (Act Cap 06 01) Laws of Botswana as later amended… “
It is clear from cl 11 that any dispute or difference concerning the contract must be referred to arbitration. It is trite learning that words used in documents should be given their ordinary grammatical meaning. According to the Shorter Oxford English Dictionary (1993 Ed) the word “dispute” means “an instance of disputing or arguing against something”, “a controversy”…. In simple terms dispute or difference means not being in agreement. A careful reading of cl 11 shows that if a dispute or difference exists concerning the contract, the matter shall be referred to arbitration.”
between the parties. It is clear therefore, that the Botswana Courts have adopted a positive approach towards the enforcement of agreements to arbitrate. In other words, arbitration is appreciated by the Botswana legal system as a good and valid alternative dispute resolution mechanism. Parties to construction contracts containing agreements to arbitrate are well within their rights to oppose any action commenced in a court of law and at the very least, obtain a stay to such action proceedings until the matter has been through the arbitration process (which may, at the end of the day, obliterate the ability of the matter to be heard by the court). Such opposition must, however, be based on the fact that such action is premised upon a dispute or difference (if the wording of the BIPD is to be used) which falls within the ambit of the agreement to arbitrate. The content of the case law examined above indicates that a party seeking to litigate outside of an agreement to arbitrate would have a tough job ahead of them convincing the court to preclude the operation of an agreement to arbitrate.
The Court held that a dispute or difference existed between the parties and held that the proceedings be stayed and the dispute or difference between the parties be referred to arbitration as contemplated by cl 11 of the agreement signed
If you are faced with a court action which you believe falls within the ambit of the agreement to arbitrate, don’t take it lying down. Utilize the positive approach adopted by the courts to enforce such arbitration agreements to ensure that you are able to obtain the benefits that may flow from the arbitration process.
affects the quality of a building. It is a significant defect that means the owner does not have the full and normal use or enjoyment of his/her property. It becomes a defect if the flaw is so serious that the buyer might not have bought the property or paid as high a price if she had known about it. Construction defects vary in nature and the courts have recognised that construction defects can be grouped into the following four major categories:
fore apparent practical completion. In the past, the courts have held that patent defects must be apparent on inspection but need not necessarily have been seen by the people carrying out that inspection. By contract, a latent defect is one which has been concealed in the works and may not become apparent for many years. In order to pinpoint liability at the completion of a house or project one must consider these factors:
• • • •
• At the date of practical completion the work should be complete and free from patent defects; • Completion of the building will be achieved notwithstanding the presence of latent defects, because such defects are by definition not apparent; • Any defects which are not apparent at completion but which do become evident during the defects liability period may be addressed in that period; • No one told the owner about the defect before the sale, or someone actually lied to them about it. The responsible party may have been the seller, the seller's agent, or the contractor; • The owner relied on the lies or nondisclosures. If, for example, the owner took the seller's word that the house was up to standard in CONTINUED ON PAGE 21
In the case of Building Construction 2000 v Ralebala the applicant approached the court for orders for payment on a construction contract for the restoration of possession of the machinery that remained on site. The respondent resisted the application on the ground that the contract required “any dispute or difference concerning [the] contract” was to be submitted to arbitration.
CONSTRUCTION DEFECTS: who’s fooling who?
Whose liability is it when a house is found to have been built with defective materials and what legal actions can the consumer take to recover his/her losses? By Akheel Jinabhai What if something was wrong with your newly built house at the time of purchase, and someone -- the seller, the seller's agent, or the contractor -- could or should have told you about it beforehand, but didn't? Such problems may come to light days, weeks, or years later, leaving you wondering whether you should have to shoulder the entire financial burden. Construction defects are one of the major causes of disputes in construction litigation. There are often conflicting thoughts when it comes to pinpointing what can be considered a construction defect. This, of course, is down to the differing viewpoints and interests of those who are asking the question. These typically include the builder, developer, contractor, subcontractor, material supplier, product manufacturer and homeowner – All seeking to meet different goals. But what exactly is a defect? A defect is a flaw that
Design defects Material defects Specification problems Workmanship incompetence
Disputes surrounding construction defects are contractual in nature and normally concern two or more people. The general principle is that construction works are deemed substantially in accordance with the contract if they are free from known defects which would prevent the homeowner from taking over and making use of the project. The magic word in this sentence is “known”. The question then becomes known to whom? Who then bares the liability for unknown defects? What can distinguish what is known is the legal concepts of patent and latent defects. A patent defect is one that is detectable either at or be-
BOIDUS FOCUS December 2014
Editor’s Note / Guest Columnist Page 21
Editor’s Note:
Bye to the year 2014 and Praying for a better 2015/16 Financial Budget by H. Killion Mokwete, RIBA Chartered Architect The end of 2014 marks the third year that I have actively been writing and publishing Boidus Focus, the first built environment publication in Botswana. During these years I have witnessed tremendous growth in the dialogue and platforms embracing the industry. Other publications are beginning to see this sector as a necessary and viable area to explore beyond the occasional headline. After all, the construction industry has consistently been either the second or third largest contributor to Botswana’s economy for a long time, even during the early parts of the recession. Advertising clients are also starting to fully appreciate the audience that makes up the built environment. This makes for good steam going forward as we plan to better our publications and grow our products.
was seen to be slowing down, with real GDP growth down to 4.4 percent in 2014, from an average of 6% in 2013 (IMF). During the State of the Nation Address, the President indicated that NDP projects might be resumed in the coming financial year, meaning that there might finally be government spending on new projects and infrastructure. After years of brutal austerity measures which hit the industry hard, a change in direction would be greatly welcome. If this proves to be true, the industry will at last breathe a sigh of relief after four years of a total free on new projects by government. We would like to see architects, engineers, quantity surveyors, contractors and all built environment professionals hiring and making work available in the industry.
The year 2014 saw an increase in industry based events from just one in 2009 to five national events. This year also saw REIB partnering with Ba-Isago University College to launch a Real Estate conference which was a long overdue development. All these initiatives can only lead to the growth and maturity of the industry. The consumer will also have multiple opportunities to interact with professionals, investors and other stakeholders.
It is therefore only appropriate that while we first of all pray for good rains this year, we also pray for the unfreezing of the industry in this coming year’s budget. We urge all three honorable ministers at MIST, MLH and MLGRD as well as the honorable Minister Matambo of MFDP to take on board the requests of industry, voiced through BOCCIM, not for a bailout but for budget allocations to new projects to allow the industry to grow in the New Year. As the industry bids for professionalization, a timely boost of projects will ensure momentum and good skills are not lost to other fields due to a brain drain.
BOIDUS TEAM
Being an election year, 2014 might see a change in government policy for the better, especially as the national overall economy
MANAGING EDITOR
ART DIRECTOR
DISTRIBUTION
H. Killion Mokwete
Bridget T. MacKean
Martha Rooi
DEPUTY EDITOR
GRAPHICS ASSISTANT
GUEST COLUMNISTS
Kibo Ngowi
Taelo Maphorisa
STAFF WRITER
SALES
Keeletsang P. Dipheko
Tara Michelle Theron Tebogo Sekwenyane
ACCOUNTS
Euan Massey & Natalie Reyneke Sophie Lalonde Tshepiso Motlogelwa Sethebe Manake Akheel Jinabhai Tlotlego Gaogakwe
Ngwewabo Mokwete
BOIDUS FOCUS
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CONSTRUCTION DEFECTS: who’s fooling who?
By Akheel Jinabhai
CONTINUED FROM PAGE 20
deciding to buy or in setting your price, thus acting in reliance of that word; • The owner suffered monetary loss in having to mitigate losses. When a latent defect becomes apparent, it becomes patent rather than latent. Therefore what a homeowner sues for in court is a patent defect. Once a homeowner has made up their mind to sue for any defects the elements which he/she must raise are that there is: • A contract; • A breach; • Causation; They must seek damages and show course why they are entitled to them. This claim should only be raised against people who are connected to and have entered into a contract. In all the previous cases which held the general contractor responsible to the owner for construction defects and workmanship deficiencies there was one consistent holding of the court. It was that an agreement to construct a house in a good and workmanlike manner did not exclude undertaking to protect the purchaser against the use of bad and unsuitable material in doing the work undertaken. The contractor is therefore liable for defects from the poor work that they have done after the homeowner can prove that poor workmanship resulted in the defect. If the defect is based on design then this is not the responsibility of the contractor unless he stands both in the capacity of a professional and a contractor. Therefore the risk would lie with the professional who professes to the quality of the goods or materials used in construction. However, when you buy something, there is an implied warrantee that the thing sold is free from any defects. A seller can contract out of that implied warrantee by stating that the thing sold is bought ‘as is’. Most agreements of sale of immovable property contain a voetstoots clause freeing the Seller from any liability for patent and/or latent defects, which the Buyer may later find when taking occupation of the property. However, there are two exceptions that would entitle the purchaser either to cancel the contract or sue for a reduction in the selling price: • The seller knew of the defects and did not disclose them to the purchaser; • The purchaser can also cancel the contract on the basis of a fraudulent or innocent material misrepresentation, even if the sale is voetstoots (but only if the latent defect is so serious that if the purchaser had known of it he would not have bought). Our case law provides that ‘…a seller who was aware of a defect will not be excused by the fact that at the time of sale he declared that he was selling the thing such as it is, and that he did not wish to be held liable for its defects …and ‘…that the operation of the voetstoots clause was thus confined to cover those latent defects which the seller did not deliberately conceal in order to induce the contract…’ There has to be a causal connection between the defendant’s breach and the claimant’s loss, and the (informal) test in contract is more commonly expressed in terms of effectiveness. The breach need not be the sole cause, but it must be sufficiently substantial.
One might be wondering what then happens if I am a homeowner who does not construct but I acquire my house through an estate agent or company. A purchaser who discovers a physical defect in the property purchased after transfer has been effected may attempt to recover his losses from the estate agent who handled the transaction. Traditionally, an estate agent was protected from such litigation by the legal theory of caveat emptor - "let the buyer beware." Courts have criticized caveat emptor as inapplicable to contemporary society and its acceptance as a defence in real property transactions has been substantially eroded. As courts moved away from the strict application of caveat emptor in real estate transactions, dissatisfied purchasers brought actions in tort for misrepresentation. A purchaser may have difficulty proving that an agent owes him a duty to refrain from making an affirmative misrepresentation or to disclose the existence of a defect. Some courts have found that an agent owes a duty to a purchaser only when the agent and purchaser have created an agent-principal relationship. Some courts have held that an agent does not have the duty to investigate the truth of a seller's representation; other courts have held that an agent has an affirmative duty to inspect the property and disclose any defects discovered. Once liability is proved then the court can decide on an award of damages.
DAMAGES
An aggrieved party in disputes such as these would normally receive damages as a remedy. The basic principle is that awards of damages for breach of contract are intended to put the innocent party in the position they would have been in had the contract been properly performed, so far as money can do this. The purpose of damages is not to punish the defendant but to compensate the claimant. Essentially, unless the claimant can show that he has suffered a financial loss, he will be entitled only to nominal damages. Where the claimant has suffered financial loss, then money will be able to do this relatively easily. So, for example, the usual measure of damages for defective work or materials is either the diminution in value of the property which results from the defects, or the cost of putting the defects right, subject to considerations of reasonableness and mitigation of loss. The basic rule of English law is that a claimant can recover only in respect of his own loss, and if he has not suffered any loss himself, he cannot recover any substantial damages. The cost of repair was once thought to be assessed as at the date of the breach. It is now clear that this so-called rule is merely a mitigation point, so that if repairs are undertaken at the first time they can reasonably be undertaken then the claimant is entitled to damages assessed at that time, even if that time does not arise until trial. The normal measure of damages for defective work is the cost of reinstatement taken at the time when the defect was discovered. The claimant will not necessarily lose his entitlement to damages if he waits for the outcome of the case before carrying out the remedial works; it all depends upon the circumstances of the case. The above is meant only as a brief introduction to the scenarios regarding the breach of contract in construction and the remedies available. The information given is general and is not intended as legal advice. Akheel Jinabhai is the Founder and Managing Partner of Akheel Jinabhai & Associates.
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BOIDUS FOCUS December 2014
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