OIDUS FOCUS Registered at GPO as a Newspaper
BOTSWANA’S BUILT ENVIRONMENT NEWSPAPER | Vol 4, Issue 2 | MARCH 2014 www.boidus.co.bw
Innovation Hub 02 Botswana 07 Lifestylenoted hosts African Division [article by Keshia Mogopa, Conference
Interior Designer]
Game of Futurology 07 The [article by Jan Wareus, Architect/Town Planner]
Aid for Contractors: Pre18 First vention is Cheaper than Cure [MDA Abdulla Consulting]
P8.00 (Including VAT) BOIDUS FEATURE >
BOIDUS EXCLUSIVE >
Developing Commercial Malls in Botswana’s Rural and Urban Centres What does it takes to develop a successful mall and stay ahead of the competition. by Keeletsang P. Dipheko / HK Mokwete
Who is the First Time Home Buyer in Botswana?
by HK Mokwete
GAME CITY: STAYING AHEAD OF COMPETITION THROUGH STRATEGIC EXPANSION An interview withPhase its developer, Turnstar impression - restaurant exterior Game City 4 artist
The Minister of Finance and Development Planning, Hon k. Matambo, recently announced in his Budget Speech 2014/15 that Government will be amending the Transfer Duty Tax and VAT thresholds as follows: • VAT registration threshold will be increased from P500 000 to P1 000 000 in order to relieve small tax payers on the burden of regularly filing VAT returns.
• Amendments to the Transfer Duty Act, which are meant to encourage homeownership, especially by firsttime home owners. Boidus Focus sought to interrogate the state of this so called ‘First Time Home Owner’ in Botswana’s property market and find out who is he/she? How much of a market do these first >>> CONTINUED PAGE 05
Image source: www.botswana.co.za
A Fresh Model for Mall Development Emerges in Kanye
Mahalapye Mall – A Test Case for Retail Centres in Rural Areas
An interview with its developer, Time Projects In recent years Botswana has seen an explosion of shopping complexes, particularly in the capital city of Gaborone, leading one economist to memorably speculate that Gaborone may be in danger of being ‘malled’ to death. However as long as there are consumers willing to spend money then commercial property will remain a lucrative market that can attract investors
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MEDIA PLATFORMS Boidus (Pty) Ltd. P. O. Box 50097, Gaborone Plot 2930, Ext.10, Gaborone
t +267 73805898 e mail@boidus.co.bw
An interview with its Architects, Malepa Architects
so the only question is: How does one develop and maintain a successful mall in Botswana?
complete, it will mark the first PublicPrivate Partnership (PPP) mall development in Botswana. Partnering with the South East District council has given Time Projects access to high value prime land in the heart of the bustling semi urban village of Kanye which would have been impossible to gain otherwise. Access to strategic prime land in developing a commer-
In trying to answer this question Boidus Focus looks at three distinct retail outlets each developed with unique aspects aimed at making them stand above the rest. When Time Project’s Mongala Mall is
>>> CONTINUED PAGES 08/13
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OIDUS FOCUS
Registered at GPO as a Newspaper | Volume 3, Issue #2
Botswana’s Architecture design & Urban Landscape Newspaper | M A R C H 2 0 1 3 www.boidus.co.bw
NEWS | page 02
BUILDINGS | page 06
A Luta Continua on the Land Question Airport Roof Gone with the Wind
The Idea of Eco Cities: Need for harmony between policy and green initiatives
HOUSING | page 16
PRACTICE | pages 14, 18
Buy or Build a new Home: The Pros and Cons
Disentangling the Web – A Look at Infrastructure Project Management
NEWS | page 02
EDITORIAL | page 06
Regional News Feature - SA Property 3rd on Earth
Sustainability Today David Lessolle on Climate Change
EDUCATION | pages 15
PROF PRACTICE | page 16
How to Start Your Own Architecture Firm: 12 Tips From The Experts
The Role of Architecture In Humanity’s Story
Meet Botswana’s Young and Rising Star Architects
BOIDUS EXCLUSIVE >
NEWS | page 02
EDITORIAL | page 04
Letlole Larona Breaks Ground at the Kromberg and Schubert Botswana (Pty) Plant
Government to Promote Introduction of Residential Development into the CBD
SUSTAINABILITY | page 06
EDUCATION | pages 15
How ready is Botswana for the Inevitable Change towards Global Decarbonisation targets?
Guide to School Programmes: 2013 Built Environment Careers Guide
P8.00 (Including VAT) BOIDUS EXCLUSIVE FEATURE >
Event Feature: State of our CitiesCBD Executive Seminar Event
BOIDUS EXCLUSIVE >
Bringing together key CBD stakeholders such as landowners and developers to engage on issues that affect their developments and investment
Vincent Moapare, founder of Architects Collaborative; Pedriel Mokwadi Nyame, founder of Architects International; Moemedi Gabana, founder of Gabana Architects; Gorata Bontle Kgafela, founder of GBR Architects
“Public Piazza, Mixed Use Podium and Sky gardens coming to Gaborone”
Botswana’s Architecture Design and Urban Landscape Newspaper | J U N E 2 0 1 3 www.boidus.co.bw
P8.00 (Including VAT) BOIDUS EXCLUSIVE FEATURE >
BOIDUS EXCLUSIVE >
Registered at GPO as a Newspaper | Volume 3, Issue #4
Botswana’s Architecture Design and Urban Landscape Newspaper | J U L Y 2 0 1 3 www.boidus.co.bw
P8.00 (Including VAT) BOIDUS EXCLUSIVE FEATURE >
BDC FAIRSCAPE PRECINCT, The Realm of Splendor - Live, Work & Play With Breath taking Views
by Kibo Ngowi & HK Mokwete
by Kibo Ngowi & HK Mokwete
by Kibo Ngowi & HK Mokwete
Guide to developing your multi-residential investment
FNB’s CBD HQ – Intelligent Corporate Architecture First National Bank (FNB) has moved into its newly built headquarters in Gaborone’s rapidly developing Central Business District (CBD). Located in plot 54362, the Head Office called First Place, boasts the banks’ “one-stopshop” capability. With an expansion of
Red East Construction: Award Winning Chinese Contractor
Demand is good, rentals are good and finance available. So here is how to develop. Q&A- Financier: We finance up
H. Killion Mokwete
by Kibo Ngowi
Investing in multi-residential development is becoming the next big thing in Botswana’s residential property market. Landowners and homeowners are realising that the bulk residential demand is in the middle-income bracket of earners, with income between P5, 000 - P15, 000 per month.
the office facilities accommodating all the Bank’s divisions such as Electronic Banking, Private Banking, Property Finance, WesBank, Firstcard to mention but a few, customers get a full bouquet of FNBB products under one roof. >>> CONTINUED PAGE 07
to 80% of the open market value, this depends on the valuation report contents and the location of the property. The deposit requirement is 20%.
by Kibo Ngowi / H. Killion Mokwete Boidus Focus sat down with the Managing Director of Red East Construction, a Subsidiary of the Zhengtai Group Mr Zhu Dexiang to try and understand what has set this Chinese construction
Q&A-Realtor: Demand is good for rentals with range of P2500pm to P4500pm for 2-beds units. Two beds units in areas like Ext. 5 or 11, Block 8, G west Phase 1 can go for as much as P6500pm (not furnished).
company apart from its counterparts and defied the perception of poor construction workmanship as a uniquely Chinese problem. >>> CONTINUED PAGE 07
>>> CONTINUED PAGES 07, 18
Birds-eye view
From top left, going clockwise: Moemedi Gabana [Gabana Architects], Gorata Bontle Kgafela [GBK Architects], Vincent Moapare [Architects Collaborative], Pedriel Mokwadi Nyame [Architects International]
Office of the President
Public Piazza
With stakes high in Botswana office market, Botswana Development Corporation’s Fairscape Precinct is set to raise the bar of what quality office space is by delivering an Agrade mixed use development which will see work, play and live become
reality in one area. The Iconic tower which has been slowly emerging off the skyline of Fairgrounds is setting unmissable view of a gleaming honey comb lattice structure with unparalleled
views from across the City. Boidus was recently given exclusive tour of the construction site to experience first hand this exciting project as it becomes reality. >>> CONTINUED PAGES 08, 13
The Relocation of the Office of The President Is it the Right Move Or Not? by HK Mokwete
The current debate in parliament over a budget allocation request of P195 million for the purposes of augmenting funds to either- acquire or build a new office block to house the Office of
the President (OP) is missing the bigger picture of what should be debated when procuring the office space for the ‘Highest Office in the Land.’ >>> CONTINUED PAGE 04
Bold, New, Fresh Design Ideas
Reviewing the best UB Graduating student 2013: Ndaboka Mothobi
by Kibo Ngowi
Top Left: Vincent Moapare, Top Right: Moemedi Gabana, Bottom Right: Pedriel Mokwadi Nyame, Bottom Left: Gorata Bontle Kgafela
Botswana’s architecture profession has come of age since the first qualified Motswana architect returned home in the early 1980s. The second generation of qualified architects, who were all trained abroad in Canada, USA and
UK is slowly taking shape and making its presence felt in the local scene. These architects, confident and ready to raise the game, have started their own design firms and are slowly making landmarks across the Botswana
built environment landscape. Boidus Focus sat with some of these rising star architects to find out what drives their design philosophies and to showcase designs from their firms. >>> CONTINUED PAGES 04, 08, 13
Ndaboka Mothobi’s final year thesis project was not only graded the best, but it presents a breath of fresh air to the creativity that defines the best of what architects can do. JOHANN WOLFGANG VON GOETHE once described architecture as ‘frozen music’ and for those who share this icon’s view of architecture as an artform, Ndabo-
ka’s shattered rock layered building is a perfect example. Often the best time for unfettered creativity is when there are less and less barriers to imagination and school project design provides a haven for this. Boidus Focus sat down with the talented ‘Ndaks’ to discuss his exciting fresh thinking to architecture. >>> CONTINUED PAGE 14
Government to Promote Introduction of Residential Development into the CBD
Top: Guests and delegates at the CBD Event Bottom: Architect and Urban Designer Jo Noero from Noero Architects and University of Cape Town Right: Hon. Assistant Minister of Trade and Industry, Keletso J. Rakhudu, officially opening the event
The Boidus Media, State of our CitiesCBD Executive Seminar recently held at Masa Centre was by any measure a resounding success. The Seminar event brought together for the first time ever in Botswana, key stakeholders of the New CBD development such as investors, development owners, government, industry champions
and the public in sharing of ideas and opportunities about our upcoming CBD. Envisaged as the future heart of Gaborone City, the CBD is slowly taking shape and the seminar sought to make it a centre stage focus of discussions and professional deliberations. In this Boidus Focus Special, find event abstracts:
As you reflect on the ‘challenges and opportunities’ of developing a CBD, I would like to encourage all of you to think of this as what our generation will be remembered for having done, not only for this City, but for the nation, albeit through the toughest times. Assistant Min. of Trade & Industry, Hon. Keletso J. Rakhudu
Extract Seminar Paper Presentation by Jobe Ofetotse, DTRP
by Boidus Admin
A Successful CBD represents among other things; • A success CBD Image of the city and the country • Generation of the country’s prosperity • Successful partnership between the Government & PVT sector Dimitri Kokinos: Portfolio Structuring Manager (Stanlib)
>>> CONTINUED PAGES 08, 13, 18
FIND CREATIVE
Introduction Thank you to the organizers for inviting DTRP to contribute to this important and highly topical seminar. In organizing it, BOIDUS have directly responded to our concern that it is easy to be critical and identify perceived
TO COMMERCIAL
ANSWERS QUESTIONS.
IDEAS EXPO BOTSWANA is an event designed to combine the best of creativity, business and technology in which participants are invited to give talks, do demonstrations, and show their work. Renowned experts in branding, business and marketing.
Interactive session for learning and networks.
Exhibition with the latest innovation.
Certification of attendance.
Latest trends and technology.
by Keeletsang P. Dipheko
Botswana has been grappling with power shortages for years resulting in unscheduled load shedding exercises that have negatively affected countless Batswana households and businesses alike. At a briefing for the business community on March 4th The Minister of
> 2014 CALENDAR EVENTS
OIDUS FOCUS
Registered at GPO as a Newspaper | Volume 3, Issue #5
MMEWR infrastructure woes to affect economic drive
failings of the CBD concept but more challenging to come up with solutions where problems have been identified. That is what we hope the seminar will concentrate upon. From a DTRP standpoint, the forum >>> CONTINUED PAGE 04
Boidus Roadshow 2014
CBD Executive Seminar May 2014
Property Breakfast Seminar September 2014
P500
(FOR BOTH DAYS)
June 21-22
University of Botswana
P300
student price for both days
*PRICE PER DAY FOR INDIVIDUALS OR PAY P500 FOR BOTH DAYS. FOR INDIVIDUAL AND CORPORATE TICKETS CONTACT +267 72 49 51 71
[For bookings call Killion on 75505291]
Minerals, Energy and Water Resources (MMEWR) Mr. Kitso Mokaila said that the controversial Morupule B power plant would be fully operational by June 2014. But cynicism is to be expected since only last year President Ian Khama himself declared that load shedding would be a thing of the past >>> CONTINUED PAGE 04
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BOIDUS FOCUS March 2014
BHC launches Sitting Tenants Sales Campaign to promote home ownership by Keeletsang P. Dipheko
Botswana Housing Corporation today (13th March) launched a campaign to encourage its sitting tenants to purchase their leased houses. The campaign was launched at a media breakfast seminar event, held at Blue Tree which drew representation from banking community and other building merchant’s partners. The campaign aims to create the opportunity for sitting tenants through engagement with the corporate partners to realize how they can capitalize on the opportunity to buy the houses they are currently leasing from BHC. When welcoming guests, BHC, Chief Executive Officer, Mr Regional Motswaiso said, “We believe that our partnerships with the media and banks can help our customers realize and unlock net worth from properties they occupy and maximize on the opportunities brought about by homeownership”. The campaign will see BHC make available some 1,528 houses for purchase to sitting tenants. From the 1,528 houses, Low cost category has 1,354 houses with pricing discount of 5.5%, Medium cost 141 at 3.5% while the High cost has 33 at 2%. There will be consumer incentives such as a P7500.00 voucher upon
purchase, all buying tenants stand a chance to win prizes quarterly, P10,000.00 home renovation voucher and P5000.00 home security voucher. According to the BHC marketing and research manager Mr. Mookodi Seisa, sitting tenants means those who have been renting BHC houses for over 10 years. The eligible primary target would be legal citizen sitting tenants who are currently occupying the houses and citizen sitting tenants that want to buy houses from BHC. Secondary target would be nucleus family members that can assist legal tenants to buy the leased property. However citizen sitting tenants leasing BHC stand alone and the government leased houses, flats and townhouses would not be eligible. He noted that the campaign will empower sitting tenants through homeownership, to extend BHC mandate of providing Batswana with access to houses. “Banks are partnering with BHC to empower Batswana to become homeowners, whereas merchant partners are supporting to provide building material and other home improvement products.” said Mr Seisa. The campaign will be anchored by an awareness strategy which will involve house to house interactions, media engagement and activation events at malls and other local areas.
KBL and FNB lead way in Developing Community Parks by Boidus Admin
BIH hosts IASP conference and engineering & mining competition by Keeletsang P. Dipheko
As a member of the International Association of Science Parks and Areas of Innovation (“IASP”), Botswana Innovation Hub (BIH) will host the 2014 IASP African Division Conference from the 9th to 11th April, 2014 in Gaborone. The conference will run under the theme “Science and Technonolgy Parks – Expanding Economic Frontiers in Africa,” and the conference will bring together leaders, experts, and professionals from Science and Technology Parks, areas of innovation, technology based incubators, all collectively referred to as “STPs & AIs” academia, the public sector and businesses.
increase local participation in mining industry. The competition will benefit Botswana as in its quest for technological innovation. Responding to who is eligible to participate in the competition Innovation Hub notes that Individual or Group Submission, Artisans and Artisan Trainees are eligible. Furthermore Senior Engineering Undergraduates and College Students, as well as Recent Graduates, Traineers and Mining Professionals are also eligible.
Furthermore the conference will feature presentations with sub-themes titled Parks and Economic Diversification, Africa and Innovation and Science, Technology, Innovation & Sustainability. This will include Case studies of initiatives within STPs fostering sustainable development.
Team work is encouraged although the contribution of individual members must be highlighted and demonstrated, through Judging panel; Industry experts and academia. Participants must develop and design an innovative engineering solution to current mining problem in Botswana that can be implemented. This could apply anywhere from mineral exploration, mining, mineral processing to use of mine effluents and waste. These solutions are very specific to a problem (gap) in the market.
BIH has also recently launched an Engineering and Mining Design Competition, the competition is expected to build motivation to innovation and
In helping put the products to fruition, BIH mentorship and R&D support in conjunction with VSAD as well as Assistance with commercialization.
The conference will feature presentations on the following sub-themes: Science Parks and Economic Diversification • What roles do STPs play in addressing job creation and socio-economic challenges? Africa and Innovation • What are the challenges in the continent that science, technology and innovation can and is addressing? • What are practical examples of such innovations and how successful have they been? Science, Technology, Innovation & Sustainability • What is the role of STPs & AIs in sustainable development, with particular emphasis on sustainable energy production, water conservation, waste management, service delivery and productivity in Africa? • Case studies of initiatives within STPs fostering sustainable development. How can Science, Technology and Innovation assist in achieving this development?
The announcement by FNBB that it will soon be completing the re development and revamping of Tawana park in Broadhurst is a welcome development to what otherwise was becoming an eyesore within the community of Ledumang and the City as large. The intervention by FNB follows similar earlier efforts by KBL who invested through their CSR to develop what is becoming a popular community park opposite Kgalagadi Breweries in Broadhurst Industrial. In a CSR environment full of disjointed efforts some aimed at housing and others NGO’s, direct community ac-
tion is most welcome as it directly benefits the community. In exchange, the corporation get to enjoy branding rights and associating the community with a good brand. These efforts need to be extended to a much larger need of Gaborone City, especially its lack of a City Park or Urban Square. Through CSR corporations can invest sensibly in improving parts of the city which could easily offer direct access to the public. Gaborone Mall, GSS grounds, Bonnigton grounds all offer ample opportunities for corporate CSR that can target prime places within the City.
BOIDUS FOCUS March 2014
International News Page 3
Lessons from South Africa’s National Budget Speech 2014 by Boidus Admin / Source: www.treasury.gov.za
Highlights of the South African National Budget Speech 2014-15 delivered by Minister of Finance, Pravin Gordhan to Parliament on February 26th, Cape Town. INFRASTRUCTURE INVESTMENT Mister President, under your leadership of the Presidential Infrastructure Coordination Commission, coordinated by Minister Patel’s department, we are now making progress in overcoming infrastructure backlogs and investing for more inclusive growth and development. Public infrastructure investment will amount to R847 billion over the next three years. The first unit of the Medupi power station is expected to be completed towards the end of this year. • Transnet has increased capacity on its coal line. Plans are in place to further expand the coal, iron ore and manganese lines.
• The Passenger Rail Agency of South Africa refurbished 500 metrorail coaches last year, and its new rolling stock procurement programme will get under way this year. • Spending on social infrastructure – which includes health, education and community facilities – will increase from R30 billion in 2012/13 to R43 billion in 2016/17. Priority will be given to programmes to eradicate school infrastructure backlogs and to refurbish clinics and hospitals. • A programme to rehabilitate 35 dams has been completed, and work is in progress on the country’s five large water transfer schemes. • In 2014/15, a total of R40 billion in infrastructure grants will be transferred to local governments for their water, sanitation, energy and environmental functions. The private sector is also making an increasing contribution to in-
frastructure investment. Contracts for 47 renewable energy projects were concluded in 2012 and 2013, many of which are already under construction. These will add 2 460 MW of power capacity, and investment of R70 billion. A further R45 billion in investment will be contracted this year. UNLOCKING CITY DEVELOPMENT AND MUNICIPAL SERVICE DELIVERY Our development plans also focus on overcoming the spatial fragmentation of South Africa’s built environment, improved public transport and accelerated investment in human settlements. An integrated city development grant has been introduced to strengthen long-term city planning and encourage private investment in urban development. It will amount to R814 million over the medium term. The assignment this year of the human settlements function to metropolitan municipalities is a vital intervention in accelerating housing investment and integrated urban development. Over the next three years, national government will allocate R105 billion to municipalities for free basic water, sanitation, electricity and refuse removal services. In rural districts, Minister Nkwinti’s development initiatives are gaining momentum and water supply and sanitation programmes are in progress. R3.9 billion has been allocated to capacity building programmes over the MTEF, targeted at small towns and rural municipalities.
Billions of rands are allocated for Special initiatives include: conditional grants to municipalities, Municipal Infrastructure Support Agency, human settlements Upgrading Support Programme in 53 municipalities, managing the human settlements function, and settlement upgrading in mining towns.
Maranyane House Plot 50654, Machel Drive Private Bag 00265 Gaborone, Botswana
Tel: +267 391 3328 Fax: +267 391 3289 Email: info@bih.co.bw www.bih.co.bw
MEASURES TO PROMOTE ECONOMIC GROWTH Mister Speaker, our policy is inclusive growth – in the words of the NDP, to strengthen the “virtuous cycle of growth and development.” Over the medium term, several spending plans and tax measures are aimed at addressing structural economic challenges and promoting the stronger, more inclusive growth envisaged in the NDP: • Manufacturing development incentives are allocated R10.3 billion over the next three years, in addition to tax relief offered through incentive programmes. • The economic competitiveness and support programme will provide R15.2 billion to businesses to upgrade machinery and increase productivity over the MTEF period. • Special economic zones are allocated R3.6 billion to promote value-added exports and generate jobs in economically disadvantaged parts of the country. • In support of the digital broadcast migration programme, R620 million will be allocated in the adjustments appropriation this year, from funds to be surrendered to the National Revenue Fund by Sentech. • Government is developing an agricultural policy action plan to support the NDP’s target of creating one million jobs in agriculture and land reform by 2030. Over R7 billion will be spent on conditional grants to provinces to support about 435 000 subsistence and 54 500 small holder farmers and to improve extension services. • To boost domestic food production and reduce reliance on imports, the Fetsa Tlala initiative aims to bring an additional one million hectares into cultivation by 2019, creating 300 000 jobs. Meanwhile, the comprehensive agriculture support programme grant, which receives R1.6 billion per year over the medium term, aims to increase farm output, especially for the beneficiaries of land reform.
Boidus Feature Page 4
BOIDUS FOCUS March 2014
MMEWR infrastructure woes to affect economic drive by Keeletsang P. Dipheko
including a sluggish economy, which forced them to build many key projects in phases or prioritise some above others which resulted in a failure to achieve the overall desired impact. The water situation in the country is so dire that the MMWER struggled to obtain enough water to complete construction projects on schedule experiencing prolonged delays. Dedede lamented that Botswana society is not geared toward working for the economy noting that many citizens employed in these jobs of national interest have quit after being trained and gaining valuable skills.
CONTINUED FROM THE FRONT PAGE
by late 2013 only for load shedding to restart anew and with more crippling impact than ever before only a few months later. It also gives no confidence that a new contractor has been appointed after Botswana Power Corporation (BPC) terminated their contract with the old contractor CNEEC. “CNEEC failed to deliver the plant on time and according to specifications. Also, BPC and CNEEC could not agree on the terms and specifications for continuation of the operation and maintenance contract,” said Mr Mokaila during last week’s briefing. To this day BPC still has to supplement its power supply with 100 MW from Eskom in South Africa and more from the Orapa and Matshelagabedi substations. Water shortages have also been a problem in Botswana. This financial year the MMEWR was allocated P3.55 billion or 29% of the total money government gave out, the bulk of which will go to operational and maintenance costs. P60 million was dedicated to the Morupule A and B power stations but it is telling that P140 million was dedicated to Emergency power supply and another P100 million was dedicated to the Rakola substation. Boidus Focus sat down with the Permanent Sec-
retary in the MMWER Mr. Thatayaone Dedede to gain insight into the ministry’s plans for the immediate future. Mr. Dedede emphasises that the financial year 2014/15 will be one focused heavily on infrastructure for his ministry. The infrastructure that they are engaged in is required for directing natural resources towards driving the economy, he remarked. This infrastructure includes water pipes and pumps and storage facilities.
“The challenges we face have left us in an ongoing learning curve. There has been an influx of Chinese contractors and the major challenge of this we have picked up is with regards to the difference in cultures, even down to the working ethics,” says Dedede. He went on to conclude that the only solution to the problems associated with these foreign contractors is to have ‘radical water tight’ tender documents that incrementally incorporate whatever the ministry learns from their different projects. Mr. Dedede also talked up the ‘Project Management Office’ that has been introduced in an effort to better manage ongoing and future development projects. The office has methodologies that all stakeholders will be expected to
Dedede concluded by remarking that the introduction of citizen economic empowerment policy has assisted greatly in accommodating local companies in the industry: “The new policy requires that every project we undertake should have at least 30% citizen involvement. Considering the magnitude of the infrastructure projects in our ministry we went further and specified that we want to achieve at least 40% citizen involvement. We want to see a deliberate plan by all those engaged on how they are going to build capacity.” When questioned on whether the citizen empowerment policy may negatively affect quality of work delivered Dedede responded, “We are not going to compromise on quality just to accommodate a local company because if we compromise then we won’t get the desired results.”
Asked how the construction industry will benefit from the projects, Mr. Dedede noted that for the start of NDP 10 their ministry should have been the major driving force in the construction sector employing over 400 to 500 in a project. Most projects are situated in rural areas and the construction industry significantly contributes to these projects through the supply of key properties and materials. However the ministry is still faced with challenges,
by Alan David-Andersen / BIC Article - 13th March 2014
The blackout of electricity has had a profound effect on businesses of all descriptions in all places. Large shopping centres are practically empty because the shops cannot trade without electricity. It is not a case of the shoppers will be back when the power is restored. Yesterday’s hamburger sales cannot be made up today or tomorrow. An-
“The ‘Project Management Office’ also comes with capacity building for the ministry,” says Dedede. “We have already trained almost over 20 people to the level of becoming accredited project managers and once accredited our people benefit from continuous mentoring through the global projects management institute. We believe this will go a long way in helping us overcome the current challenges.”
“Since the start of NDP 10 we have been given between two to three billion pula annually to look at building this infrastructure and the bulk of it was used to build the power station and three dams which are Dikgatlhong, Thune and Lotsane Dams,” says Dedede.
Do many hands make light work? Botswana has over the last few weeks been in a virtual blackout with no electricity in suburbia and elsewhere, in some instances this has lasted for 16 hours or more. People are saying that this is the worst it has ever been in the last 6 years when power saving became a reality. Power saving however, is not new to Southern Africa and for obvious reasons one has to make planning vital in both their personal and professional lives.
follow, with the rationale being that the uniform methodologies will make it easier to overcome problems if and when they arise.
other factor is that at times card machines or ATM’s don’t work either, leaving customers in distress as many have been accustomed to conveniently ‘swiping’.
•
•
• Even though this has become a harsh reality for Botswana, it shouldn’t be surprising that some business do not have back up facilities or a basic “Business Continuity Plan” (BCP). No business is ever too small to have a contingency plan in place. After all, it’s often smaller businesses that are impacted more severely from disasters and unforeseen events. The creation of a B.C.P. will assist in: • Ensuring the protection and preservation of assets. This includes IT information, data protection etc. • Managing the disasters while minimiz-
• •
ing the impact to the business and maintaining continuity Maintaining your market share. Preventing your customer moving to the opposition. Making certain that you are correctly insured to assist in carrying the financial burden. Making certain that you comply with legal and other regulatory bodies. Having a risk management plan in place. Having a supply chain plan in place and being able to maintain confidence with your stakeholders.
These plans must be simple and reviewed periodically. It must be a plan that can be invoked quickly and considering the above, it has to be agreed that generators are probably an absolute necessity in the future. It’s also important that Tenants in shopping complexes meet with their landlord’s to plan how they are going to avoid
a situation like this again. Botswana Insurance Company encourages all businesses micro to large, to have a sound BCP which should also entail a detailed risk management plan and an insurance checklist. Being underinsured is common, and with the recent unexpected circumstances which could lead to potential workplace misfortunes, preparation and adequate cover is key. Losses of this nature (load shedding) are generally not covered even where there is a Business Interruption policy in force, however this is dependent on the type of insurance coverage.
For more information Call 3600500 or visit www.bic.co.bw
BOIDUS FOCUS March 2014
Boidus Feature Page 5
Who is the First Time Home Buyer in Botswana? by HK Mokwete
CONTINUED FROM FRONT PAGE
time buyers present? Why have financing institutions been excluding these in the first place and what difference is the new budget provision going to make? A First Time Buyer (FTB) or first time home buyer is a term predominately used in the BritishIrish property markets, and in other countries, for a potential house buyer who has not previously owned a property. These customers in the early 1980’S have dominated property markets especially in Europe, with about Ireland leading the EU with 80% of its home owners-occupiers as First Time Home Buyers. During the 80’s, half of all mortgage loans in the UK were taken by first time home buyers, although this has since decreased to 15% due to rise in property prices which grew out of reach of first time buyers. With this back drop how do we then define ‘First Time Home Ownership’ in Botswana? In Botswana the first time buyer market has not yet been established. But as a developing country with dual or multiple modes of homeownership, one belonging to rural homestead ownership and urban housing ownership, defining first
time home buyer needs to be contextualised. According to Real Estate Institute of Botswana (REIB) President, Modiredi Maruping, First Time Buyers in Botswana must be defined the in similar way as the Government allocates land and the way BHC sell houses, all aimed at giving priority to the first time land owner or house owner respectively. Therefore Maruping argues that ultimately Fist time home buyer definition will have to infer to the above systems. Whereas in other countries land ownership is out of reach to most citizens because of its unavailability and its cost, in Botswana, landownership is only a problem issue in Urban areas, specifically Gaborone and surrounding villages (Tlokweng, Mogoditshane) and Francistown. Otherwise one is able to apply for land and stand an opportunity to own (build)a house, and according to a Finscope Report, 2011, 59% of household heads owned their homes that were self built. The starting point for defining home ownership in Botswana has to critically assess issues of affordability of means to build or own a house. To build or buy a house one needs to have access to
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finance. This is mostly done through mortgage financing institutions and to qualify for financing one has to be earning not just an income but a certain level of income. Income earners and housing affordability In Botswana, some 27% of the adult population did not earn any income by 2011 according to a survey done by think tank Finscope, while some 35% of adults earned less than P1, 000 per month. A further 26.3% earned less than P10 000 per month. Now to put this figures in mortgage affordability context, an average minimum mortgage facility from local financing institutions is around P50 000 and you will need to pay P1,300 over 25 years while an average mortgage of P500 000 you will need to pay P4991.20 per month. Putting all of the above in the context of current housing prices of at least P500 000 low cost if you are lucky and P200 000 for a 2 bedroom in out of town areas. This then clearly shows that a large proportion of adult population earning below P10 000 per month is unable to access funding to either buy or build a house. According to Finscope, this translates to 73% of the adult population who cannot afford to buy property. To define their demography, Mr Maruping argues that everyone within age of 18 and 65 years who is buying for the first time but the act will determine the specifics. The Finscope survey also observed that 41% of household heads were living in rented property, while 59% who owned property were mostly self built and from these 43% owned the land from which the houses were built. It is worth noting that the type of dwelling or homes surveyed showed that a significant proportion, (44%) of dwelling s were in villages and in traditional areas.
Therefore based on the above Finscope numbers, it is clear to see that a majority of adults did not own the homes they lived in and if they did then these are village homesteads which have been self built.
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How much of a market do these first time buyers present?
The size of the potential for these ‘First Time Buyer’ is not tested in Botswana and judging by the number of adults who both rent, 41% and some good margins of those who own own self built homes in the rural areas. The size of this market can also be demonstrated by housing demand in key urban areas especially Gaborone and Francistown which present the highest demand. Soaring property prices and rental prices are all indicators that a lot of the potential first time buyers are priced out in any property buyer situation plus the income earners with burden of unsecured loans rendering them un fundable to diminished take-home earnings. Why do banks ignore this market? Are banks ready to explore this market? According to IMF (2013), Loans to households amount to about 60 percent of total loans in the banking system, with 41% as unsecured lending and only 14% mortgage loans while 3% spent in Household vehicle. The IMF reports notes that Botswana’s banking system is profitable and wellcapitalized with relatively low none performing loans (NPL’s), however, there are potential vulnerabilities stemming from the high concentration of banks’ loans to households and the recent acceleration in the growth of unsecured lending. High mortgage rates and combined with bank charges and other upfront costs such as Transfer Duty tax and legal fees all mean that a lot more people cannot qualify for financing to neither build nor buy property. Banks particularly in Botswana have so far not made available enough mortgage products that emphasis affordability and taps for example into the P10 000 per month income earners who cannot qualify for any mortgage. A number of these income earners who do not qualify for property loans still however present a valuable asset to banks as they in turn invest their money in the unsecured lending space which as of 2011, stood at 23% of the 13% who took out bank loans. With a small but lucrative income earning adults to circulate amongst them, banks have continued to recycle these customers from bank to bank offering various unsecured products and in the mean time increasing house hold debt to a total estimated P23 billion, equivalent to P11 200 for each person in Botswana as of September 2012 (eConsult). As proven in other markets, first time home buyers present a lucrative market which needs exploring, and banks need to develop products that can attract this market segment.
Sustainability Page 6
BOIDUS FOCUS March 2014
SUSTAINABILITY TODAY
ENERGY Ecobuild 2014
[Source: www.bdonline.co.uk] Ecobuild 2014 is the world’s largest event for sustainable design, construction, energy and the built environment. Ecobuild 2014 took place at the Excel centre in London, UK, and here are some highlights from the event;
by Phenyo Motlhagodi
Subsidise Sustainability: A UK Business case for Botswana
Green buildings cost same as conventional structures
The World Green Building Council has unveiled a comprehensive new report at Ecobuild, outlining the compelling global business case for green buildings. The ‘Business case for Green Building’ report highlights how green buildings can be delivered at a price comparable to conventional buildings and investments can be recouped through operational cost savings. Key findings include: • Asset value: Emerging evidence in some markets of green buildings being able to more easily attract tenants and to command higher rents and sale prices; • Design and construction costs: There has been an overall reduction in the costs associated with designing and constructing sustainable buildings; • Operating costs: The direct benefits from green buildings in use (such as reduced energy and water use and lower long-term operations and maintenance costs) typically exceed any costs premiums associated with their design and construction within a reasonable payback period; • Workplace productivity and health: The characteristics and indoor environments of green buildings can influence the productivity and health of workers who occupy them, resulting in bottom line benefits for businesses. Jane Henley, chief executive of the World Green Building Council, said: “This report synthesizes credible evidence from around the world on green buildings into one collective resource, and the evidence presented highlights that sustainable buildings provide tangible benefits and make clear business sense.” Paul King, chief executive of the UK Green Building Council, said: “This report is a very valuable compilation of all the credible research into the business benefits of green building from around the world. As sustainability becomes ever-more embedded in the market’s expectation of good quality, it may prove increasingly difficult to disaggregate the ‘green premium’, but what is certain is that those buildings that don’t keep pace will inevitably lose value.” The report was produced in partnership with PRP Environmental along with the following sponsors: Skanska, Grosvenor, and the Abu Dhabi Urban Planning Council/Estidama.
Study looks into benefits of green offices World Green Building Council launches study to measure the health and productivity benefits of sustainable office buildings The health and productivity benefits of sustainable office buildings are to be explored in a new study backed by contractors Lend Lease and Skanska. The study, launched by the World Green Building Council (WGBC), will seek to define the to robustly measure health and productivity outcomes from green office buildings, and attach financial value to them. WGBC’s project, which is being backed by Skanska and Lend Lease as well as property giant Jones Lang LaSalle, aims to establish a common way of capturing these benefits, and to provide best practice guidance on the type of green building features - such as daylighting, ventilation and indoor office environments - that enhance them. This can then be used to create a toolkit for office owners and occupiers to use and better inform investment decisions. Sick days, employee turnover and staff surveys are all likely to be investigated as potential ways of standardising the measurement of health and productivity of staff in their workplace. The topic is rising up the estate sector’s agenda as organisations begin to understand the business benefits of greener, healthier buildings.
The British government has committed itself to reducing their carbon footprint by the year 2050 by up to 80%. Undoubtedly the great challenge will be addressing the inefficient existing homes. And so, experts in this area say; if the British government has any serious ambition of reaching this legally binding objective, then they will have to improve the energy efficiency of the smaller homes, as the expectation is that they will still be around 40 years from now. A number of incentives and schemes have been put in place by the British to ensure that they improve the energy effectiveness of households, but what is quite clear is that the uptake of this by the home owners has been relatively low. The hot issue with one of the almost well thought out schemes (Green Deal) is that it’s said to not have integrated the small local builders in its thinking. And you can look at this in local context: for the smaller homes, it’s the local builders/contractors who are contracted to do
renovations, plumbing, extensions and or electrical works. Green Deal fails to engage these contractors who are well placed to suggest energy efficiencies to the property owners during quotations for work on the house. The bigger issue though will still go back to incentives. Contractors will not spend any more time or money than they have to to educate/ train their people around energy efficient installations until they see a sufficient demand for this. The initial costs are still too high to mention to clients and with the world over still living in debt, consumers think about the now and not necessarily tomorrow. Until there is some sort of synergy in thinking from any government (policy maker), its people (consumers with an efficiency demand) and service providers (Sustainability champions), the situation remains a rather hopeless one. This applies to Botswana or any other nation that finds itself in this space. It is worthwhile appreciating that the Green Deal Scheme is a government initiative to help Britain become more energy efficient. It is a first-come, first-served offer where householders in England and Wales can claim Cashback from Government for improvements made. That first come, first served bit is perhaps not appetizing enough as you would have already spent a “fortune” to make the house energy efficient, and then have to wait for the return on investment. The idea is that the scheme lets people pay for energy efficiency improvements through savings on their energy bills. The big idea though should be to use the same budget for the cash backs to subsidize energy efficient installations from the start and scrap the cash backs. In this way the products, startup cost speak for themselves and the consumers’ pockets speak for themselves. Reports are that a new research from Experian will be published in this March, “showing that a VAT
(UK) reduction from 20% to 5% on all housing renovation and repair could be the solution that government is looking for. The research suggests that more than a billion pounds of extra investment would be spent on energy efficiency measures between 2015 and 2020 if the next government reduced VAT on all housing renovation repair. This could result in almost 92, 000 extra homes, both private and public, installing double glazing, cavity wall insulation, roof insulation, and energy efficient boilers over the five year period. This would lead to a saving of up to 240,000 tons of CO2 from the UK’s homes by 2020. Now relating to Botswana, in any context of the idea of energy efficient installations through cost reductions in the household or work place. You cannot do so without the consideration of the value chain of employment, the benefit of savings, and the endless possibility of improvement of the quality of life beyond urban centres. Much needs
to be done around this. Let’s focus solely on energy - Fair enough coal powered electricity is subsidized, but why? At household level, how do we even begin to ensure wise use of electricity when the consumer does not fully appreciate the real cost, whereas the cost of producing coal is certain to go up, and the same with producing its electricity? Why sell “bad” at a reduced fee and deny “good” (renewables, energy efficient) by maintaining them at cost reflective in an environment like Botswana where they are quite pricey given all the dynamics for the retailer based in Botswana? With a reported 3200 hours of sunlight per annum, should we not be thinking of immediate policy to subsidize the installations of solar energy generating equipment? The point here is, Botswana as the rest of Africa will need an energy mix (coal with solar or other) in any case as is evident with the energy challenges. Our coal producers will be sustainable with this model. Our growth and development also dictates that we will need more sustainable energy and as such we should be thinking long term. In the past year these articles have shown that Botswana is accommodative of alternative energy with the numerous pilot solar projects. There is no doubt that it can work for us, nor is there doubt that there is a need here. Now some arithmetic needs to come into play to look at how we make what serves us better more accessible. These are tough times for policy makers the world over and a there is a great need for innovation around sustainability. The first early weeks of March 2014 have demonstrated that in the energy sphere for South Africa and Botswana. Reports are that the country has ambitions to have 25% of its energy from renewables by 2030.
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BOIDUS FOCUS March 2014
Guest Columnist Page 7
Lifestylenoted by Keshia Mogopa, Interior Designer
“If I had asked people what they wanted, they would have asked for a faster horse.” ~Henry Ford Often cited in topics concerning innovation and the aspect of originality, this quote suggest that an inventor, who listens to customers too closely, without observing customer behavior, will reap tiny improvements at best. Ford looked beyond the idea of “a faster horse” and that is how the Ford Motor Company became a leader in the early auto industry. This does not aim to contradict the economic principle that “the customer is always right” but looks towards a bold move to present something new in the hopes that a better result than intended is achieved. This also reflects on everyday society where aspects such as Interior design, is
often and almost solely aimed at portraying ones tastes as far as beauty and arrangement co-ordination is concerned. As I journey through life as an interior designer and lifestyle blogger, and perhaps understand the complexities of this field, along with significance of many detail, and the way each design element – style, form and function – work hand in hand and can impact individual lives as well as society. I have always felt my challenge is to give the general public an easy way to understand the glimpse of this knowledge. Say “interior designing” and what pops to mind is flat screen TVs, expensive furniture and even eastern design technique
known as Feng Shui. Indeed, beauty is but in the eyes of the beholder, but the question remains, do we design our homes and/or work spaces only for aesthetic appearance. Does interior design have to be associated with highly priced items? Can interior design in general be used to achieve the results we have in our minds, and what about interior designers who provide a much needed service and constantly battle the public perception of their value? My lifestyle and design blog, Lifestylenoted, was created on the belief that indeed interior design is vitally important and affects the quality of life, but also to try offer answers to questions about this field. In reality, interior design is more than furniture arrangement and decorating, but rather, the ability to combine engineering, construction, art and psychology in creating functional and efficient spaces. In an art shell, it’s about problem solving. Human experiences in architectural spaces should be able to give credit to how the spaces work, how they deliver a message, as well as how they provide a deeper satisfaction in life. This is what, I as an interior designers and blogger intend to archive, just like Henry Ford when he thought of ideas beyond “a faster horse” Often after having to explain on why interior design should speak the owner’s language and reflect their mindset and style quotient, I am always rewarded with the phrase “We never knew you could do so much on the inside”. This is the
The game of futurology [Boidus version March 2014] by Jan Wareus / Architect & Town Planner
It’s nice to be back to Boidus Focus – here is what been on my mind for some time: From a philosophy mentor (Lars Gustafsson) I’m quoting the following: “Since Ossip Fletchtheim (in the 50’s) as the first sociologist used the term futurology much has happened. The usual system of institutions, publications, and expensive international conferences, usually characteristic of an independent and active scientific branch, has grown. Futurology has already (in the late 70’s when it was printed) its own schools, its own stars and prestige-systems of its own. Most industrial countries with self-respect have established independent research institutions in futurology….. More or less explicitly, the modern futurology appears claiming to be a scientific activity in its own right, an independent branch of social sciences....as if an “independent science” logically can be independent of other sciences.” The basis for the claim of being autonomous to other sciences is - it’s a science about the future! But, the future is something that doesn’t exists and its substance now, at this time, is impossible to know intimately, thus futurology is principally different from other existing disciplines (apart from theology, maybe).
Consequently, most futurological scenarios are free from “surprises”, a bit astonishing when coming to politics. As Kahn and Wiener state in their book “The Year 2000” (from 1967): “For every decennium there are changes, often many, that are more or less turning points – thus all studies of the distant future are quickly out-ofdate”. And now to the major cognitive errors of futurology as it has being applied in development planning and how it ought to have been applied (e.g. balancing/ analyzing even impossibilities).
To many, it’s astonishing and confusing how we planners handle the future. We see trends and we are extrapolating these statistical trends like they were religious commandments. We don’t make research and investigate the basis for a given “prognosis”. We are hanging on to the tail of the cow and can’t give it the right direction as my father-in-law used to say. We are bad futurologists! I will now be pointing to the plan B’s we need for the future. These plans must be based on balanced trends that are analyzed and tested against a future situation. There are many indications that we have neglected such a dialogue with our clients/users and between ourselves –
key point - the interior experience is also an exciting part of design or any architectural form that directly affects everyday life in so many more ways than people realize.
and for a final judgment and appreciation of our profession, we will certainly need it. A very wise man I remember, my grandfather, once said, coming home from helping is old father on a half year trip to America to see a few of his brothers, on return finding the well he once constructed almost empty: “When you can see the bottom, it’s too late to dig a new well – we will suffer”, he told his wife! I have reason to remember this now here in Botswana where we also see consequences a bit late. We have been through power, meat, construction problems and are now seeing the bottom of the wells! To me we have true planning problems and the planners are ignorant – why? Well, in my opinion, we do not take the true responsibility of planning the future as it becomes clear that it isn’t what it used to be. And we should know – that’s what planning and the education was there for. And here an obscure futurology is coming in! For too long it has only meant reading statistical trends, without any quality and sound judgment of these trends – as they were given by higher authorities as the basis for future life. Totally forgetting that we embarked very lately, a couple of stations before the end terminal, jumped onto the industrial train that had been running for more than 200 years in developed countries and was on the way to the final place for “recycling” at best. Running in periods on steam, oil and electricity and now the scarcity of fossil fuel is rationed (by price). We will not be able, never, to start up a train like that and we must go for a “plan B”.
Yesterdays Trends and the Future Artist: Oscar Reutersvärd - Sweden (Illustration to The Game of Futurology) But instead of advising our clients about the unavoidable future we kept quiet and went on extrapolating trends into 2025, even longer. Very much aware of a changing future, we have been creating an unsustainable situation, functionally and economically based on “wishful thinking” – what’s happening in the world today has been predicted since mid last century and we all had it in our lists for reading (e.g. Hubbert’s theory and curve from 1956 and the finite resources). And since the 90’s Internet has been full of information from leading scientists regarding the final count-down for eternal progress. >>> CONTINUED PAGE 14
Boidus Feature Page 8
BOIDUS FOCUS March 2014
Developing Commercial Malls in Botswana’s Rural and Urban Centres by Keeletsang P. Dipheko / HK Mokwete
cial mall is vital and Time Projects have achieved a significant coup in developing a commercial property integrated to the only public transport interchange in the area. A similarly strategic location can be seen at Rail Pak mall which was developed on prime land next to the Gaborone bus rank by partners BR Properties and Botswana Insurance Fund Management (BIFM).
Mahalapye is already a beehive of activity with local corner shops and existing malls. So for the developers behind it the key factor in building Mahalapye mall in this already thriving environment was its strategic location along the A1, the country’s busiest North-South artery. This way, the mall serves the village but also taps into the travellers who often have nowhere to rest and buy supplies along their journey.
We also look at a privately built mall in Mahalapye to question the viability of private retail projects in rural areas outside of the capital city.
And finally we take a look at one of the earliest malls to emerge during Botswana’s mall boom of the recent past, Game City, and gain insight into
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the behemoth’s strategy to stay one step ahead of its competition. For Game City, the game plan is to remain competitive by rejuvenating their premises and offering existing tenants quality incentives to stay put. As new entrants have entered the fray and crowded the market, Game City is set to un-
leash a P200 million expansion and refurbishment aimed at consolidating their dominant position. The above strategies and much more are needed in the cutthroat world of commercial property development.
Mahalapye Mall– A Test Case for Retail Centres in Rural Areas
A Fresh Model for Mall Development Emerges in Kanye
Mahalapye will soon become home to a P30 million retail centre which is envisioned to become the central shopping complex for Mahalapye villagers. Strategically placed along the A1 highway Mahalapye mall is situated in the ideal position to be used as a stopover for travellers heading up North. The mall is owned by Mr. Tiro Seloma and was developed by Malepa Architects, Ndolo Engineers and Lily Builders. The majority of the retail centres developed during the mall boom in recent times have been developments done by private companies on privately owned land. Meanwhile city and district councils have struggled to manage their land to become profitable assets. Time Projects and the Southern East District council are pioneering a Public Private Partnership (PPP) that sees the private developer building commercial property on publicly owned land. Mongala mall covers 7000sqm of prime land that used to be the Kanye bus rank while the bus rank has been pushed back to accommodate the mall. Construction on the project valued at P65 million began in March last year and the shopping centre is expected to open on the 27th of this month. “The mall is at the bus rank and obviously we got the feet there already, then we did the study of the village of Kanye and found the population is about 50 000 excluding other villages,” says Time Projects Project Manager Mr. Heinrich Malan. “This means that the population can go up to 100 000 if we include other villages like Moshupa, Thamaga and also towards Lobatse side. The mall is not only for Kanye villagers.” Malan highlights that the mall’s strategic position along the Kanye main road which is also the main road connecting Botswana to Namibia means that Mongala will be a convenient outlet for both the villagers and the many people who pass through the area en route to other destinations. Though he does concede that the mall has limited parking space he doesn’t see this as a potential problem: “We are of the opinion that most of the people who will be coming there will be for the buses but we have also made some provision for people to park.” The anchor tenant of the mall is South African supermarket giant ‘Spar’ which is supported by strong clothing stores, franchise fast food outlets and smaller shops such as Boutiques. ‘Tops’ bottle store which is the liquor store wing of ‘Spar’ will also be there as well as
furniture stores such as ‘Furnmart’. Malan is optimistic about Time Projects’ joint venture with the Southern District council. He believes that PPPs can promote development, and aren’t as prevalent as they could be because local authorities drag their feet in creating these partnerships explaining that such ventures cannot work if only one side commits their resources; it has to be a relationship between two sides, not from the government or private sector alone, he stressed. “The councils own properties in those villages so for private companies it’s better to engage with them than to buy from the locals because you might settle for a second hand piece of land which is not in a prime position. The important thing is for them to come to the party; the council should be open to more deals of this kind.” Asked what effect Mongala mall will have on the threat of urbanization and decentralization of the rural central retail and business district, Malan says it will improve the situation because people from Kanye will go back to Kanye: “They would love to go there on weekends for proper shops and not to have to travel to Gaborone. The mall is exploring a new market therefore it will be among the attractive features of Kanye as a village and also bring quality lives to the villagers, and it is good for villages to have their own shopping centres.” “We also have bus/taxi association on board, the fellows are very keen to move back and the council is working well with them so we have got the right people on our side, the rank will not relocate and if we have the council on our side they have the power to move it.” In conclusion Malan said that the reason big malls favour anchor tenants is that these tenants pay much higher rentals than the smaller shops. Moreover the mall allows for blue oceans where shops don’t have to compete fiercely over the same consumers.
According to the Director of Malepa Architects Mr. Mmusi Kalayakgosi the volume of people travelling through the A1 was taken into special consideration during their viability assessment with regards to where the mall should be placed. Mahalapye has many shops catering to a variety of needs such as furniture stores, restaurants, filling stations and banks amongst others but the problem was that all these outlets are scattered over a wide area. All that was needed was for someone to seize upon the opportunity to build a shopping precinct which could bring all of these different services under one roof. The Shell filling station along the A1 in Mahalapye had previously served as the only main stop through the village for travellers but it has problems of limited parking and variety which the new mall boasting 22 different shops seeks
to address. The mall is scheduled to open on the 28th of March and has already attracted retailers like Nandos to complement Cresta which already existed in the vicinity. Kalayakgosi adds that an open space next to the mall will be developed into a public park which will serve as an amenity for families. The park is planned to include a children’s playing area, a swimming pool, an outdoor performance stage, barbecue areas with built-in barbecue stands, park shelters, gazebos and a parking lot. Asked about the potential effect of the mall to the existing village general dealers and small shops, Mmusi opined that the general dealers will soon become obsolete if they cannot meet the needs of the customers. “Those (shops) that are within the village far from the centre will not be affected by the rise in new developments including Mahalapye mall,” he concluded. Nonetheless it remains to be seen whether the risk of building a retail centre in the sparsely populated village will pay off. The investors behind it are counting on the heavy flow of travellers to consume the services offered by shops in the mall but only time will tell if the flow can sustain a retail outlet of its size.
BOIDUS FOCUS Classifieds 2014 CALENDAR EVENTS
2014 Calendar Events | Professional Registration| March 2014
PROFESSIONAL REGISTRATION
AFRICAN CONSTRUCTION EXPO - MAY 2014
27-28 May 2014 Seminar day: 26 May 2014 Site visits: 29 May 2014 African Construction Week: 26-29 May 2014
Sandton Convention Centre Johannesburg, South Africa The African Construction Expo and Conference is the only forum that brings together construction professionals from the entire African continent. The event hosts a conference that addresses strategic issues around large scale construction and infrastructure projects.
An interactive exhibition showcases the latest products and solutions that help deliver projects on time and on budget. A free-to-attend workshop programme provides educational content and encourages a change towards a more sustainable approach to construction.
The event is designed for the industry’s senior level management, investors, government representatives as well as construction professionals of all trades. MUST-ATTEND event will connect buyers, suppliers, manufacturers and service providers, providing a platform to: • Stay on the cutting edge with the latest in new products and equipment • Find everything your company needs in one place with experts on hand to answer questions • See products in action and other live demonstrations • Gain access to experts in education, training and other professional services
EAST AFRICA PROPERTY INVESTMENT SUMMIT
STATUTORY REGISTRATION OF PROFESSIONAL ENGINEERS WITH THE ENGINEERS REGISTRATION BOARD IS A LEGAL REQUIREMENT. »» Registration with the Board is the Licence for practising engineering in Botswana. »» Registration also ensures quality services to clients and promotes public safety. »» Why, Who, How and the Benefits
The Engineers Registration Board (ERB) is a statutory body established by an Act of Parliament CAP 61:06 of 1998 as amended in 2008 and 2013, and is mandated under section 3(1) to “have responsibility for regulating the activities and conduct of registered engineers in accordance with the functions and powers conferred upon it by this Act.” ERB falls under the Ministry of Infrastructure, Science & Technology (MIST) which is responsible for administering the Engineers Registration Act. The enactment of this legislation is a clear testimony of the Botswana Government’s unwavering commitment to the development, upgrading and promotion of professional engineering practice in the country. It is pertinent to note that:a. the promulgation of this Act is a welcome development as it will ensure that provision of professional engineering services in Botswana accords with international best practice. b. mandatory registration of professional engineers has long been a benchmark of international best practice in many developed and developing economies; and has been adopted in the majority of SADC countries. c. Sadly Botswana has lagged behind and remains at the bottom of the pile when compared with other professions in our country and in other jurisdictions, e.g. Medicine, Law, and Accountancy where professionals in those disciplines are regulated by their own statutes respectively. Therefore we have some “catching up” to do with respect to the engineering profession in Botswana. OBJECTIVES AND FUNCTIONS OF ERB Objectives: The objectives of the Board are set out under section 4A (1) of the Act as: a. Promote the highest standards of engineering practice in Botswana, and b. Protect the welfare and interest of the public in the engineering practice Functions: The functions of the Regulatory Body are set out under section 4A (2) of the Act and include: a. Assess applications made to it under this Act; b. Register professional engineers and issue practicing certificates; c. Monitor standards of engineering practice and ethics; d. Conduct or authorise enquiries regarding any alleged professional misconduct of any registered engineer; and e. Prescribe the eligibility requirements for persons applying to be registered under this Act to practise professional engineering. OFFICIAL LAUNCH OF THE ERB AND INAUGURATION OF COMMENCEMENT OF STATUTORY REGISTRATION OF PROFESSIONAL ENGNEERS
“The outlook for the sector is encouraging and there are a lot of unique and attractive opportunities in the East African Market.” Michael Turner - Managing Director Actis East Africa Attend the most noteworthy platform for learning about real estate development in East Africa with an agenda packed full of quality content and expert speakers. The East Africa Property Investment Summit will deliver a fresh and unique approach to the challenges and opportunities present in the region.
Kenya • • • • •
Uganda • • • • •
Annual GDP growth : 5.7% Average Annual Growth Rate: 5.76% 46.4 Billion GDP FDI Inflow $792.3 Population: 34.7 Million
• • •
Annual GDP growth : 8.5% The second Largest Population in Africa One of the fastest growing economies in the world Average Annual Growth Rate: 5.1% Population 94.9 Million
South Sudan •
Average Annual Growth Rate: 11.4%
Burundi • • •
Annual GDP Growth: 4% Average Annual Growth Rate: 2.6% FDI Inflows at $1.7 Million
COMMENCEMENT OF REGISTRATION Subsequently on 5th September, 2013 Minister Swartz inaugurated the commencement of statutory registration of Professional Engineers in Botswana. Other categories will follow in due course. In this regard: »» All prospective registrants are strongly urged to register with the Board in the appropriate categories and disciplines of engineering, and will be so registered after satisfying the eligibility requirements and paying the prescribed fees. »» Upon registration, engineers resident in Botswana will be issued with a Registration Certificate and a Practicing Certificate. Nonresident engineers who wish to practise engineering in Botswana for a period not exceeding twelve months, will be issued with a Temporary Practising Certificate.
FREQUENTLY ASKED QUESTIONS ABOUT STATUTORY REGISTRATION OF ENGINEERS There are four questions that are frequently asked by non-engineers and some unregistered engineers which are: • Why register? • Who is eligible to register? • Why employ registered engineers only? and • What are the benefits of registration?
Ethiopia • •
LAUNCH OF ERB ERB was officially launched by Hon. J. Swartz, the Minister of Infrastructure, Science and Technology on 11th August, 2011, and in his address to the nation, the Minister highlighted the following as one of the principal reasons that prompted Government to enact the Engineers Registration Act -“...more often than not engineering firms are commissioned to undertake projects for which the principals do not have the necessary experience or professional qualifications to “sign off” the proposals. In this regard statutory registration of engineers would go a long way to protect clients and the public from unsafe engineering products and services.”
TRANSITIONAL PERIOD In order to facilitate the registration process and minimise disruption particularly to ongoing projects, a 12 months “Transitional Period” up to 31st August, 2014, has been announced by the Board to allow for smooth migration of prospective registrants from the current “unregulated environment” to a “regulated environment”. After the expiration of the “Transitional Period” on 31st August, 2014, only those engineers registered with ERB will be allowed to practice engineering in Botswana {ref; section 19(1) of the Act}.
Annual GDP growth: 4.3% FDI Inflows forecasted to average US 1.3 Bn p.a Average Annual Growth Rate: 4.81% Projected Growth Rate of 5.2% in 2014 Population: 44 Million
Tanzania • • • • •
Annual GDP Growth 7.5% One of the fastest growing economies in Africa and the world Average Annual Growth Rate: 7% GDP: 13.7 Billion Population: 48.2 Million
Rwanda • • • •
Annual GDP Growth : 5.7 % Amongst the fasted reforming countries in the world Dubbed “Africa’s new Singapore” Average Annual Growth Rate: 8.0%
(3) referees; • Pass a professional interview conducted by a Board Committee. Whilst engineering activity is essential and beneficial to society and the economy, and the effect of engineering work permeates all facets of our lives, there is a recognition that substantial potential risks to health, public safety and the environment accompany engineering activities which must be managed by qualified, experienced and competent professionals; hence the establishment of ERB as a regulatory body for the engineering profession.
ESTABLISHMENT & MANDATE OF ERB
ERB provides the following responses to the above questions: »» Registration of engineers wishing to practise their profession in Botswana is a legal requirement as is the case in many countries in the world. »» To be eligible for registration as a “Professional Engineer”, applicants should meet some or all of the requirements listed below: • Be a member of an institution of engineering recognised by the Board; • Be a holder of an engineering degree, diploma or license of a university or school of engineering which is recognized by the Board • Have four (4) years post-qualification experience; • Have good character and reputation as testified by three
»»
BENEFITS Benefits deriving from registration of professional engineers have two broad categories:i. Benefits to Individual Engineers, and ii. Benefits to Employers and the Nation. i. Benefits of Registration to Individual Engineers a. It signifies that the engineer has the competence, knowledge and experience necessary to perform engineering duties to professionally acceptable standards. b. Enhances marketability of the registered engineer as well as eligibility for membership to engineering professional societies in other jurisdictions. c. Facilitates access to services offered or promoted by the Board for the purposes of enhancing professional development. d. Instils confidence in the minds of the public that the registered engineer meets minimum levels of competence in the engineering profession. e. Entitlement to the exclusive use of the title “Engineer” before his/ her name or such contraction as the Board may approve. ii. Benefits of Registration to the Employer and the Nation a. Enhanced professional credibility and corporate marketability of the organisation resulting from improvement in the standards and quality of engineering professionalism on the part of engineers working in the organisation. b. Regional and international recognition of the professional competence of engineers in Botswana, thus promoting enhanced status of engineers and the engineering profile in the society. c. Registration is a strong safeguard against unethical practices and professional incompetence and mediocrity. Registered engineers will always strive to practice engineering to high standards in order to guard against removal of their names from the register and subsequent loss of professional career. Concurrently “bogus engineers” are weeded out and corrupt practices in engineering eliminated. d. High standards of professionalism and professional excellence in engineering practice are promoted and maintained. e. Contribution of the engineering profession to the socio-economic development agenda and well-being of the nation is assured. f. Public safety, protection of property and the environment are assured whilst quality of life is improved and sustained. PENALTIES FOR NON-COMPLIANCE Section 19(1) of the Act prohibits any person from practising as an engineer in any year unless he/she is in possession of a practising certificate for that year issued by the Board. Section 19(7) prescribes that any person who practices engineering in Botswana without a valid practising certificate shall be guilty of an offence and shall be liable to a fine not exceeding P15 000.00. Thus registration with the Board is a LICENCE FOR PRACTICING ENGINEERING IN BOTSWANA. Failure to comply with the legal requirements on the part of any engineer will attract penalties as set out in sections 17, 18 & 19 of the Act. »»
A fine not exceeding P25 000.00 or a term of imprisonment not exceeding three years shall be levied against individuals found to be posing as Registered Engineers or falsely claiming to be registered in one category whereas they are registered in another. Furthermore, individuals found to have made fraudulent claims in order for himself or any other person to be registered will also have the same penalties levied against them.
Hence all prospective registrants are urged to come forward and register with the Board to avoid any transgressions which will attract penalties for non-compliance. “Professional Engineers” who apply to the Board will be required to pay the following fees:
Item
Type of Fee
Amount (BWP)
Professional Engineer Category 1
Application Fee / Processing Fee
2,500.00
2
First time Registration Fee
1,500.00
3
Annual Practising Certificate Fee
5,000.00
4
Annual Temporary Registration Fee
20,000.00
5
Reinstatement to the Register Fee
2,500.00
The Board has extended discounts to those who submit their applications before 30th April 2014 as follows: • 25% discount on total fees for applications received by 31st December 2013; and • 10% discount on total fees for applications received between 1st January and 30th April 2014. In the same vein, employers of professional engineers (e.g. companies and firms) are encouraged to favourably consider assuming the responsibility to pay the requisite fees for the professional engineers they employ in order to ensure that they comply fully with the law, thereby avoiding any adverse consequences that might negatively impact on their businesses due to non-compliance. In order to facilitate implementation of the Act, all stakeholders including prospective registrants and employers of professional engineers are strongly exhorted to give ERB their full support and cooperation for a successful outcome of this noble national initiative for the benefit of all stakeholders concerned, the Government, the engineering fraternity and industry as well as the Nation at large.
BOIDUS FOCUS Classifieds March 2014 | Home Improvement Ideas
DIY Projects - How To Set Fence Posts In Concrete
Sponsored by
Source: channel4.com/4homes/how-to/diy [Illustrations: Ed Roberts]
Step 1: Dig the holes
Step 3: Pour In the Concrete Mix
Step 5: Work Along The Fence Line
Pour in the concrete mix, following the manufacturer’s instructions if you’re using a readymade mix. (Usually, the mix is poured on top of water, which should half-fill the hole). The concrete should be just above ground level and it sets in a few minutes, so work quickly and use a spirit level to check the fence post is vertical on two adjacent sides.
Making sure that the posts are aligned with each other, as well as upright, finish off your line of posts, allowing the concrete to harden before attaching the rails and panels.
Budget:
Depends on size of garden.
Step 4: Smooth & Prop Up The Post
Step 2: Secure The Posts
Time:
Depends on size of garden but allow at least a day for fitting the posts.
Skill:
Low, but it’ll pay to have two of you doing the job.
Tips:
S
HASKINS
DELIVERING THE GOODS
SINCE 1897
pplies
So that rainwater runs away from the fence post, smooth the surface with a trowel, sloping it away from the post. To support the post while the concrete sets, support it with a couple of timber battens, propped either side of it.
Put the posts in place, holding them in place with broken brick or stone hardcore, which you’ll need to push down into the hole at the base of the post.
Dig holes for each post according to the readymix pack instructions (usually at least 600mm deep and three times as wide as the post). Use a string line to mark out the position of the other holes, then dig these, too. If the going is tough, you can hire a post-hole borer.
• Don’t buy panels that have a large number of knots or splits • It’s easy to make a panel slightly smaller to fit an awkward gap just cut through each part of the trellis with a handsaw and refix the edge piece along the cut edge
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BOIDUS FOCUS Classifieds
DIY | March 2014
The Courage to Screw Up: Why DIY Is Good for You by Mark Frauenfelder / Source: www.huffingtonpost.com
cal gizmos that provide our food, water, clothing, comfort, transportation, education, well-being, and amusement. But you can make your world a little less confounding by sewing your own clothes, raising chickens, growing vegetables, teaching your children, and doing other activities that put you in touch with the processes of life. In addition, the things you make reflect your personality and have a special meaning. You share a connection with them every time you use them, and you appreciate them in a different way than you do store-bought things. This is why gifts of hand-made preserves, blankets, and furniture are so cherished. You are sharing a part of yourself with the recipient of your gift; they will value the time and effort you put into making something for them with your own hands far more than what it would have took to pick up a gift card at the mall.
As the editor-in-chief of the do-it-yourself magazine Make, I've met scores of dedicated makers. They come from all walks of life -- rich, poor, young, old, male, female, religious, atheist, liberal, conservative. They're as varied as the things they make: kites with cameras, homebrew biodiesel, treehouses with ziplines, cigar box guitars, remote-control lawnmowers, automatic cat-feeders, highaltitude water rockets, robotic blimps, worm composting systems, stylish plywood furniture, pinhole cameras, experimental surfboards, solar water heaters, portable drive-in movie projectors -- there's no limit to their aspirations. And while no two DIYers are alike, in general they're an upbeat and friendly group that shares a special trait: the courage to screw up.
Being able to accept, even embrace, your mistakes is far from easy. In school, we learn that mistakes translate into bad grades. This unfortunate lesson gets burned into our brains, and we go through life shunning challenges that might end in failure. But DIYers not only accept the inevitability of mistakes, they welcome them, because they know that mistakes are a source of inspiration and the most effective way to learn. The latest research in neuroscience supports this idea. Through my own DIY efforts, which I chronicle in my new book, Made By Hand: Searching for Meaning in a Throwaway World (Portfolio), I've gotten better at facing my own fear of mistakes. For the past couple of years, I've spent time with my favorite "Alpha makers" to learn how they do what they do. I've never been very handy myself, but since making the decision to take a more active role in the world around me, I've begun raising chickens (in a coop I built myself ), keeping bees (lured out of the attic of my new house and into a full-scale hive), and growing vegetables (where my lawn used to be). I've hacked my espresso maker for the perfect brew, built musical instruments for impromptu home concerts, erected a treehouse for my daughters, and tutored them in the sorts of hands-on skills our schools desperately need to teach, but don't.
Along the way, I've made an astronomical number of blunders. But the broken tools, barked knuckles, wasted materials, and countless trips to the hardware store have been a small price to pay for the fun and fulfillment my family and I have experienced. From my own DIY experiences and from researching the lives of other DIYers, I've discovered five benefits you gain from having the courage to screw up:
A deeper connection to the things that keep us alive and well. The human-made world is mostly beyond our comprehension. Our daily survival depends on seemingly magi-
An appreciation for the things you have and the systems that make it possible.The flip side to enjoying the things you make yourself is discovering how challenging and time-consuming it can be to make them. It takes me hours to whittle one cooking spoon, and while it's enjoyable, I can't imagine making all of our family's cooking implements this way. Now, I pay more attention to the things I buy, and I appreciate them more than before. Because I've become an active participant in the human-made world, I'm more observant of it. I care more about how things are made, paying close attention to each object for lessons in craftsmanship I can apply to my own projects.
An opportunity to use your hands and your brain. Human beings evolved opposable thumbs for a reason. The sense of reward you get from making something with your hands can't be earned any other way. It's obvious that people learn faster from "hands-on" experience than they do watching someone else do something. (No wonder kids ask, "Can I try?" when they see their parents using a tool or appliance.) And when people engage in DIY activities like knitting, their heart rate and blood pressure go down. We are tool-using animals and our bodies feel better when we've got tools in our hands.
A connection to other people. When I started making cigar box guitars, I stumbled onto a group of DIYers at a website called Cigar Box Nation. These amateur luthiers log in
from around the world to share plans, photos, and videos of their home-made stringed instruments. They are happy to share ideas and advice about building guitars, banjoes, and ukuleles with newcomers. I've found this same spirit of generosity at other online hangouts devoted to building electric vehicles, autonomous aerial vehicles, and raising chickens. Even though time is our most precious resource, I've discovered that DIYers are happy to give their own time to people who seek their knowledge. (At Make, we are exploring this admirable quality of DIYers as a way to rethink traditional educational systems.)
A path to freedom. A number of DIYers I've met have succeeded in turning their passion for making things from a hobby into a business. In this era of economic uncertainty, DIYers have learned not to rely as much on governments and corporations to take care of them. They seek a more direct way to support themselves by becoming producers of high-quality, short-run products. For instance, Limor Fried transformed her passion for electronics into a fulltime business called Ada Fruit that sells mail-order kits to hobbyists. Mitch Altman made a little remote control that could turn off any TV set, and it was so popular he started a company that sells electronic gadgets. Sites like Etsy.com and the Makers Market give DIYers a place to sell their handmade creations, ranging from hollow "spy coins" to silkscreened posters to revolving bookcases to chaotic pendulums. Even if you have no desire to become a fulltime maker, DIY can provide a certain degree of freedom from depending on others for everything you need. The DIY movement is growing every year, with no signs of slowing down. In May, Make held its fifth annual Maker Faire in San Mateo, California, where 95,000 people came to celebrate the unique rewards of DIY. This year, Maker Faire is also coming to Detroit and New York. I hope you can come and participate in the transformative power of DIY.
Mark Frauenfelder is the editor-in-chief of Make magazine, and the founder of the popular Boing Boing blog. He was an editor at Wired from 1993-1998, and is the author of six books. His latest book is Made By Hand: Searching for Meaning in a Throwaway World.
EARTHSHIP GREEN HOMES; Incorporating systems for managing water, electricity, temperature, sewage, and even food production
The name ‘Earthship’ may sound like something out of a sci-fi book, but it refers to a style of home construction designed to be self-sufficient and off-grid. Earthships are designed to use solar power and other sustainable technology, and to minimize waste during construction and throughout their use. The concept was pioneered by architect Michael Reynolds, who has been developing his green home building designs since the early 1970s. Earthships make use of recycled materials, such as old tires and bottles, to reduce waste and keep garbage out of landfills. Tires are packed with dirt to form load bearing walls with high thermal mass. Long sun facing exposures with windowed surfaces capture solar heat, which is stored in the walls and released when surrounding temperatures drop. Interior and nonload bearing walls often incorporate plastic and glass bottles arranged in artistic fashion, which allow light to pass and enhance the beauty of the designs.
BOIDUS FOCUS Classifieds March 2014 | Property
Value Created in Buying Property (5 year period) by Boidus Admin Purchase Price = P600,000
Interest = 9.5%
You expect to live here = 5 years
Monthly Rent - P3,500
Deposit = 10%
Term of Loan = 25 years
Rent Rate Increate = 10%
Expected House Price Inflation = 5.5%
MORTGAGE INFO Deposit: P60, 000
Mortgage amount after deposit: P54, 000
Monthly Payment: P4, 718 (Capital and Interest)
Over the length of time you indicated (5 years), you would have spent P283, 075.40 on mortgage pay-
ments. This includes Capital & Interest. You will pay P249,223.50 in total interest over the 5 years that
you live here. Using a 5.5% average house inflation rate over 5 years, your house will increase in value to P784, 169.73.
RENTAL INFO The monthly rent would start at: P3,500 for the first year. Rate of increase is also a factor commonly
used to determine an estimated increase of rent every year. We will use an average of 10% yearly increase. Over the length of time you indicated (5 years), you would have spent P278, 361.70.
Renting
Buying
Rental Payment at the end of 5 years: P5,122.36
Mortgage Payment at the end of 5 years: P4,717.97
Debt paid off: P0
Debt paid off: P33, 851.90
Total Payments: P278,361.70 Profit on leaving: P0
Total Spent: P278, 361.70
Total Payments: P283,075.40 over 5 years Profit on Sale: P184, 174.54 * Total Spent: P65, 049.12
It seems that Buying a home would save you about P213, 312.58 over renting in the course of 5 years. * Total Spent includes total mortgage paid - (Capital & Interest). Disclaimer: There computations are estimates only. There is no warranty for the accuracy of the results or the relationship to your financial situation. Please seek assistance with you mortgage financier.
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BOIDUS FOCUS March 2014
Boidus Feature Page 13
Developing Commercial Malls in Botswana’s Rural and Urban Centres by Keeletsang P. Dipheko / HK Mokwete
CONTINUED FROM THE FRONT PAGE
Game City: staying ahead of competition through strategic expansion
Game City Phase 4
artist impression - centre court
When Game City first opened its doors in 2002 the only mall of similar size and significance in Gaborone was Riverwalk. Since then a host of other shopping complexes have emerged across the capital city, including Airport Junction, a sprawling retail outlet opened in 2011 which seems to pose a direct challenge to Botswana’s biggest shopping complex. And there are still more at advanced stages of development. It’s no wonder then that Turnstar Holdings, the developers and owners of Game City, have released plans for the next expansion of this mega mall. The Phase 4 development which has been planned since the initial stage of construction will break ground in July kick starting a P 200 million addition to the already bustling regional shopping destination. In an exclusive interview with Boidus Focus Turnstar Holdings Asset Manager Marilyn Mosha explained that the expansion plans include the addition of three components, which are a food Court, a fashion precinct and a parkade. It is expected that the fashion precinct will bring new international brands to the area and more luxury shopping options. The food court will draw from local cuisine and also bring a mix of regional flavours. Ms. Mosha notes that although they are aware of concerns about uncompetitive practices levelled at commercial malls due to the influence of anchor tenants, they try to reserve shop spaces for local traders. She points to the number of local retailers dealing in fashion they have as an example and adds that they will be bringing in a local restaurant in the new courtyard. The exciting additions will include digitalisation of the cinemas of which two will be converted to 3D screens and the upstairs already boasts a 6D cinema which is the first of its kind in Botswana. A family area will also be incorporated to provide family spaces, a kids play area and a multi-functional activity area which comprises of cyber soccer, outdoor movies, cultural activities and exhibition spaces amongst other features.
There are also expansions earmarked for Mlimani City complex, a shopping mall similar in design to Game City that Turnstar Holdings owns in Dar es Salaam, Tanzania. Interestingly while businesses have adopted cautionary stance to office development here in Botswana in the face of oversupply fears, Turnstar have taken an aggressive stance in developing quality office accommodation of approximately 5000sqm, to capitalise on the high demand for office space in Tanzania’s largest city. Mlimani City will be extended to comprise of an approximate additional 10, 000sqm retail space with basement parking space of approximately 343 bays.
our services to both the tenant and visitors. We always share our challenges moreover there is currently no charge for marketing but as time goes on charges for marketing might be introduced”. The development will be done within 18 months and is expected to be open by December 2015 to allow for festive shopping.
additions expansions alterations existing
Mezzanine floor plan
Choppies
There will also be expansions to the Mlimani Conference Centre and the introduction of a Botanical Garden, the first of its kind in Dar es Salaam. Mlimani City is fortunate to have access to a significant land bank to meet its tenancy demand.
Game Store New parkage
Asked why they saw it necessary to embark on the expansion exercise of Game City, Mosha emphasized the need to stay ahead of the competition. The arrival of competing malls such as Airport Junction forced their hand, even though the phase 4 expansions had always been on the cards.
Cinema Shoprite
Edgars
These expansions will also come at a cost to mall users especially in parking provision. The planned parkade will bring with it the introduction of paid parking in the secure areas. The parking is expected to increase by up to 500 spaces. They are also embarking on improving the mall’s access road to the A1 by means of lobbying for a new entrance which will properly cater for Game city clients.
New dropoff & entrance
All these improvements will be topped off with an overall mall facelift externally and internally which Mosha explains is aimed at bringing in smooth touches and uplifting the ambiance of the overall mall, noting that the current finishes are dull and lack vibrancy at night. She further explained that Game city has recently improved the CCTV equipment to a state of the art level that is equipped with face recognition software and is capable of providing more data than what is required for security purposes.
Ground floor plan
When asked how they have managed to maintain their clients in the face of stiff competition, Mosha said they have achieved this by maintaining a close relationship with their tenants and charging fair rent. They have also allowed for reductions in rental fees in some cases where escalation has forced high rental charges and have also planned several strategic incentives during those times when they renovate. She adds, “We are also trying to improve the quality of Game City Phase 4
artist impression - restaurant interior
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Education Page 14
BOIDUS FOCUS March 2014
The game of futurology by Jan Wareus / Architect & Town Planner CONTINUED FROM PAGE 07
The early days of futurology was mostly statistical “trendsetting” and now we all know this kind of illusive “art”. Let me give you a kind of metaphor from a book of an old philosopher (but I don’t understand fully why he called his friend -Jan). However, it tells us something about trends and its validity: “If my friend Jan is doubling his alcohol consumption from Monday to Friday during a week, this is a tendency, a statistical trend. It’s completely rational to say that if this tendency is ongoing, Jan’s alcohol consumption will soon be more than five liters a day, if the tendency is right.
But this is a very bad prognosis as Jan since long (by economical and health reasons) must have discontinued this development. If not, he had long ago died from acute alcohol poisoning. Jan’s alcohol consumption is an example of a tendency that simply cannot continue. A prognosis cannot be based on a tendency by a mechanical extrapolation into the future. It is thus reasonable to make a prognosis on basis that it cannot be extrapolated.” Consequently (according to the author), the realistic forecast that Jan’s alcohol consumption sooner or later will result in a catastrophe or crisis, and thus an interruption of the tendency, is simply telling us that as much as we understand - we need a kind of adjustment and balance between different prevailing facts at hand.
Tendencies must be balanced against our collective knowledge of the world, as isolated they are not good basis for any prognosis at all. But this is not how we have been planning until now. The tendencies we see, e.g. for population growth, state of markets, growth of GDP etc. must be balanced against our knowledge of limits – physical and biological limits, limits for resources, as well as political, psychological and anthropological limits – it’s delusive if we base it on eternal GDP growth!
er words, population growth will not continue as the tendency as per today. The same for energy and resource consumption – can’t go on forever when the cheap energy (fossil fuel) is finite and has become many times more expensive than ten years ago.
We are now in times when we have to consider what is not possible in the future and then we are into so called “negative prognoses” not at all popular among various politicians as most of them promise “positive prognoses” to voters.
The real futurology is nothing like meteorology (a set of known weathers) – what can happen is a completely open question and we have to realize this fact.
For example – a negative prognosis is that there is in no ways plausible that the growth of world population will result in only standing room available for human beings – in oth-
However, a negative prognosis must be discussed among the planners as the question regarding what is possible in a close or distant future is “open”.
We are in a situation that is similar to a driver of a potent car, approaching a sharp bend and we must reduce the speed to stay on the road. But negative prognoses, contrary to the affirmatives that we so far used, are possible if we keep open concepts about futurology, I understand, and recommend to us all. What I’ve seen so far from congresses and publications and presented as results from futurological research is nothing but the impact of political and economical interests, extrapolated into the future, more or less camouflaged as a “rational” science. Futurology as “negative inventory” will not result in the same theoretical ambiguity as it from the start is free from being fixed to a limited choice of future scenarios. To go on with my friend’s essay I’m reading (see reference below), I must convey a fine observation that he has: We know that certain psychodrugs taken with rather innocent proteins, like the ones in cheese, might become a killing poison. So, a society might have a number of components as uncontroversial as cheese and appreciated for what it is and how it make the digestion work well. But the same components might change radically in the effects if a new element is added – technically, politically or economically – that in combination with the well known stuff will change the working among the components.
The innocent and hardly known mixture can become a sufficient condition for a radical change, even with catastrophically shaped effects. There are many such events to study from history. For example – petroleum was something in small bottles good for liniments, massage and wonder remedy in the 1800 hundred in USA. But became a mighty primary product when the combustion engine was invented and industrialization started on “autopilot”. Consequently we have to look for combinations instead of extrapolating trends and the future for us is in the combination of many considerations and sustainability over time becomes a planning priority. I think we must leave the “development control” to technicians and use our broad educational and working experience creatively for the future. The only method to see the future is to create it! Anything else is hypocrisy and we are reducing our profession to simple fashion sewing for ignorant clients. The trends that most development plans are based on, amounts to bad jokes at society’s expense! Jan Wareus janwareus@yahoo.com Lars Gustafsson – Filosofier (Philosophies) from 1979 refers
BOIDUS FOCUS March 2014
Education Page 15
University of Botswana, School of Architecture Student-Tsamaase Wins Black Crake Books Award. by Keeletsang P. Dipheko
Literature Review award in 2011, however it was supposed to be published in 2012 but up to now the Pentagon have not published it, 2013 she won University of Botswana Culture ,Arts Award for 2013 Design Architecture. Tsamaase noted that as an architecture student she noted that there are many issues that need to be addressed in the build environment in Botswana. The local publisher, Black Crake Books Awards has recently announced the winner of the first annual Black Crake Book. This year Tlotlo Tsamaase, a final year architecture student at the University of Botswana became the winner of the First Prize. “The award that I have won is the Black Crake book award, basically you win P2 500 the first price winner, then you win a publication bill, the book is supposed to be published at the end of the year. It will be held in August this year, and the book has to be more than 65 000 words,” said Tsamaase. She says what she wrote was Science Fiction, Fantasy for young adult and the originality of the idea made her to be on top of the others in the competition of almost 30 entries, because that’s what the publisher also mentioned. Before attaining the Black Crake Books Award Tsamaase managed to clinch other awards. The first award was Bessie Head
Train Station Project
“I feel it lacks a bit of culture. I once went to Cape Town and when you see other places and their articulation of space to create an intimate experience between people and building you find that our buildings and space are just contained environments not connected to the rest of the city. You feel yourself disconnected from them. When you go to other cities and you find how spaces have been articulated to be enlightening so as to add to the experience of person you realize how dull ours are. Also they don’t host a variety of activities so often you wonder at night what can you do when almost everything is closed or where can you go that is different.” She says she prefers the fun of design before the hassle of detailing or fussy clients who don’t care for the values of space, or submitting projects which come with its issue, but her experience interning at Pinagare Architects is developing her into the architect she wants to be.
“I would like to just be excited and see what the future holds but I hope to be snatched by the BIG publishers. I love baking, I wish I had time for Do It Yourself (D.I.Y) projects. I love doing yoga in my spare time, hanging out with friends and obviously reading, reading novels. After school I will be working and writing on the side. ”
here in Botswana find it hard to publish. The competition will be in August this year again.
Tlotlo Tsamaase Portfolio • 2011: Bessie Head Literature Awards (First Category: Novella Unlettered Skies of the Sublime) • 2013: University of Botswana Creative Arts and Culture Awards 2013 Design The Black Crake Books publishing company Architecture started in 2012 by Nick Green, and the com• 2014: First Prize of Black Crake Book pany basically is looking forward to unearthAwards ing and publishing more talented writers, • 2014: Short story to be published in The which really benefit writers because Fog Horn Magazine Today marks an important chapter writers in our effort to transform the concept of ‘office’ or ‘work’ in our city. It’s a journey that started 12 months ago with a bit of travel to TLOTLO’S ARCHITECTURE DESIGN PORTFOLIO more developed cities to benchmark and ensure that our product isCentre to international Cultural Projectstandard. We are a coworking office space. The question then is what is coworking and why do we believe our city is ready for it? Coworking is an innovative office solution tailored for freelancers, small businesses and startups, to form a community of professionals that work from the same place with shared facilities. Their key objectives are to establish professional relationships, cut operating costs and broaden general business knowledge and skills. The result is a kind of work environment that is inspiring, collaborative with potential to grow one’s professional development. I have been a freelancer for the past twelve years. I know the advantages and disadvantages of being an independent professional. The fact that you don’t have a proper professional structure means you lose out on ever growing corporate trends. Icowork will therefore fill that gap as you continue to work for yourself but not by yourself.
One of our services is that we will have monthly business talks where we network in a casual setting and discuss various core issues that affect small business such as tax, financial planning, and business development. The world is collaborating more than ever before. America, Europe, and Asia are big on coworking spaces. Africa has been slow but there has been an upsurge in recent years in South Africa, East and North African countries. This is due to the increasing complexity of city economies and the recent economic downturn which led to more innovation and creativity to remain relevant. The knowledge economy and smart cities that we all wish to attain do not just come about because of fancy buildings and infrastructure, but rather by creative and innovative city residents who choose to push boundaries and solve the ever complex challenges of the city. Management of Icowork has decided to go where the world is going and we believe our city is ready given the good
21st Century Civic Centre Project
Editorial Page 16
BOIDUS FOCUS March 2014
Tender or bid bond; Guarantee your Contract Terms and Get Payment on Non Performance
by Boidus Admin
How can it help me? Providing a tender bond can help you to meet the tender requirements of a prospective procuring entity/employer so that you can compete for a contract. What is it? A tender bond—also called a bid bond or a tender guarantee—is an undertaking by a bond issuer to pay a sum of money to your prospective employer/procuring entity if you win a tender for a contract but then fail to enter into the contract. How does it work? When bidding for a works contract, your prospective employer may require you to provide a tender bond with your tender submission.
If you win the tender but don’t formalise the works contract, or don’t issue additional guarantees to the employer when required as per the bid requirements (such as a performance bond), then the procuring entity can call the tender bond (that is, request payment of the bond amount from the bond issuer) to reduce their losses, which include costs incurred in adjudicating or calling for a re-bid. The amount of a tender bond is usually stated as a percentage of the estimated contract value, or a fixed amount at the discretion of the procuring entity. The procuring entity/employer is called the beneficiary of the bond. BECI as an insurance company (bond issuer) can issue a tender bond to your prospective employer on your behalf. The bond issuer normally
assesses your commitment and ability to undertake the contract before issuing the bond. Typically, we will also require security from you in case your prospective employer calls the bond. A tender bond is usually issued when you lodge your tender. It remains in force for the term required by the procuring entity tender process, usually ranging from 90 days to 155 days. If your tender is unsuccessful, your prospective employer returns the bond. If you win the tender, your employer returns the bond when you formalise the main contract. In some instances, the contract may require that you convert the tender bond into a performance bond or an advance payment bond. A tender bond can be:
• conditional—the beneficiary can only call the bond when certain conditions are met, or • Unconditional—the beneficiary can call the bond at any time without giving a reason. The diagram below shows the main steps in issuing a tender bond. Exporter
1.Tender for Export
Buyer
3.security 2.Tender for bond
BECI /Bond
Notes to diagram 1. The tender requirements for your works contract with a potential employer include the provision of a tender bond to the buyer. Your insurer agrees to issue the bond and you provide security to the insurance company if required. 2. BECI issues the tender bond to the potential employer/ procuring entity. 3. You submit the tender to the procuring entity. What costs are involved?
Fees and charges depend on the term of the bond, the bond issuer’s risk assessment and the security you provide to the bond issuer. Come and speak to our experts advices and get your bespoke bond. Other Guarantees from BECI, include; Performance bond, advance payment bond and retention bond.
BOIDUS FOCUS March 2014
Editor’s Note / Guest Opinion Page 17
Editors Note: The Failures of Morupule B makes a Strong Case for Commission of Inquiry on Botswana’s Construction Industry. by H. Killion Mokwete, RIBA Chartered Architect The current country’s power outages are a shock to the system in many ways, but especially to the business sector of the country. The complete failure of the country to meet its energy demands due to incomplete construction of the Morupule B power station is the epitome of problems that have besieged our construction industry for years. This unfortunate turn of events reflects on this country’s ability to plan, coordinate and implement construction projects. This problem cuts across projects of all scales and size which further highlights the issue. To date, many public projects ranging from schools, hospitals, stadiums, airports and other lie incomplete or in a start of disrepair. The scale of failures in project implementation is so systemic and deeply entrenched that it is no wonder that we HAD to fail when failure was not an option. The countries infrastructure plan has over the years depended on external guidance and help from other countries which has also created a dependency syndrome on foreign professionals, rather than investment in local professionals. With such rapid infrastructure development, Botswana to this day has not developed any pool of experienced, competitive large scale contractors to undertake any meaningful project. In fact strides that were made during the days of Tswana Construction and others local contractors has since seen a complete reversal to almost no local presence in our construction industry.
BOIDUS TEAM
The only way forward to rescue the country from future similar catastrophic failures must start with a introspection and assessment of how we got it all so wrong in the industry. How is it that after years of money spent training thousands of Batswana both through the Debswana scholarships schemes and government’s external training programme, we still cannot complete any public project properly? How is it that regardless of continued failures to deliver countless public projects there seems to be no accountability and even worse no intelligible remedy to such problems? And the only clinical and transparent manner such a process can be done is through a commission of inquiry. The inquiry should be tasked with looking into all the affairs of the construction industry, relevant procuring ministries and most importantly be independent of influence from government. This being done, we can be able to have a clear state of affairs and move forward with a knowledge what really happened.
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H. Killion Mokwete
Tebogo Sekwenyane Thabo Sarona
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Is Gaborone being Malled to death?
by Professor Roman Grynberg / Originally published in Boidus Focus Vol 2, Issue 6 [July 2012]
Ten years ago when Game City was being built many said the city could not support two large malls- ie Game and Riverwalk. It did and while things were a wobbly for a while both malls survived and have until recently prospered. But that was a better time. In the 1990’s economic growth rates were very high, now the economy has slowed and growth was 3.9% between 2002 and 2010. But the consequence for the older open malls was pretty terrible- they went into terminal decline with falling rents and tenants that were not ‘branded’. Tenants, like cattle are of little value unless they are branded, and the more branded tenants a mall has the greater the value of the property to the owner when he comes to sell. When one sees a large number of small independent ‘no-name’ shops entering a mall as is the case with Main Mall, African and Fairgrounds Mall you know that it is the end of the life cycle of the property. Either they are ‘reinvented’ by massive investment or go into terminal decline and eventually become no-go areas that are often considered too dangerous. Now in the space of a year three new malls have opened up in Gaborone Sebele, Airport Junction and Railpark. Those who believe we are not heading for structural over-supply of retail property in the city look back at the experience of a decade ago and say that the market can bare the expansion. The problem is that because
businessmen are often not fully aware of what is happening in the market they become overly exuberant and make costly mistakes. Bankruptcy is the markets way of dealing with mistakes and there can be no doubt there will be some but it may not necessarily be the new malls but rather the ones who own and run properties in the older malls as more and more customers are attracted to the newer malls. All commercial real estate has a natural life cycle whether it is a mall complex or a large commercial or residential property complex. The life cycle is simple enough – new properties are built they are immediately fashion-
able and often very profitable. The owners often just sit there collecting rents but other investors see an option, enter the market and compete away tenants form the old established malls. Sometimes where the mall owner is astute enough they pour good money into to maintain the state of their mall and hence retain their tenants. But eventually the temptation of new investors is too much they enter the market and try to capture. When I spoke to at least a dozen shop owners in both Game and Riverwalk most were in suffering commercial distress. The ones coping the best are the down-market supermarkets and even those would only admit to having maintained sales at current levels over the last year. But increasingly it is the shops at the middle of the market that are really suffering. As food and petrol prices rise and salaries have more or less remained stagnant for four years there is a decreasing amount left over for discretionary spending. Just as incomes are rising consumers are faced with an increasing number of possible venues for their shopping. All this has the whiff of bankruptcy and it would not be too unreasonable to expect a large number of shops to close. Perhaps the investment that made the least obvious commercials sense is Railpark Mall. If Botswana railway ever gets a commuter rail system functioning there may be more demand
there but those currently making use of the mall are generally those who take combies and use the area as a transit point into the CBD. These are by definition not consumers who tend to have a large disposable income so the choice of the mall as a location for shops like Food Lovers and Woolworths which deal with the top end of the market is unclear. In the end, unless there is dramatic turn around in the fortunes of the economy the type of shops that will be naturally attracted to Railpark are at the bottom end of the market. For Choppies Railpark made sense, for Food lovers- well, they will eventually relocate as the current choice of location makes little sense
given the market they are targeting. The majority of businesses operating out of all the malls are the same, that is they are the same branded shops that you see everywhere. This begs the question of why the big owners of these shops would undertake an expansion of a new shop into a Mall that does not make obvious commercial sense ie. it just drives customers from one branch to another. The reason is simply that you never really know. No doubt those owners of up-market shops know that their exit costs are not that high and they normally sign leases that let them out after several months notice. If the branch is not making money then they can get out at relatively little cost. For these largely South African branded chains deciding not to establish a shop at a new mall creates a market opening for potential competitors in Botswana’s still lucrative retail market. For this reason it is better for most to open and wait and see rather than leave an opening for a new competitor. The new Airport Junction mall is set to be Gaborone’s new up-market shopping area. It is a far more obvious investment than either Railpark or Sebele because it provides what Riverwalk and Game provided to consumers who live in Phakalane. They will no longer need to commute to the southern half of the city to shop. The only thing that is not obvious about Airport Junction is why, given in the incomes in Block 8, Phakalane, Oodi and Mochudi someone did not build it earlier. Food Lovers is intending to open a second shop as the Airport Junction mall expands. The construction of new malls is by
no means over and as the new CBD expands there is talk of yet another mall. Whether Gaborone can digest all these malls or will simply be ‘malled’ to death is to be seen. But what the new malls do is provide a greater geographic balance for the retail sector and given that they are much the same it will save the citizens of Gaborone a lot of travelling. The great unknown is whether each areas has enough consumers and income to sustain so many malls? These are the views of Professor Roman Grynberg and not necessarily those of the Botswana Institute Development Policy Analysis where he is employed.
Professional Practice Page 18
BOIDUS FOCUS March 2014
First Aid for Contractors: Prevention is Cheaper than Cure by Euan Massey, director MDA Abdulla Consulting
relationship (if either still exist). There are, therefore, three fundamental characteristics of adjudication: * the process is contractual in nature; * the procedure to be followed is for the Adjudicator to decide in each case – it may be inquisitorial, adversarial, investigatory or a mixture of all three – above all it is speedy; and * although binding on the parties, the Adjudicator’s decision is provisional, i.e. it can be challenged through litigation or arbitration.
Today marks an important chapter in our effort to transform the concept of ‘office’ or ‘work’ in our city. It’s a journey that started 12 months ago with a bit of travel to more developed cities to benchmark and ensure that our product is to international standard.
In Practice Guideline Number 3: Adjudication (March 2004: Edition 1 of CIDB document 1011) the CIDB has detailed a set of principles, which underpin the adjudication process².
number of qualified independent professionals and small businesses who wish to to providing work at the(at best location in town. In addition least in relation to public sector
vide written summaries of their cases limited to four pages in length. The remaining referral and response documents were considerably more extensive. Each party served numerous witness statements, expert reports and supporting documentation which in all amounted to some 29 lever arch files. The Adjudicator found substantially in favour of Carillion and ordered an immediate payment to Carillion of a sum in excess of £10 million. Devonport declined to pay Carillion the sum due under the Adjudicator’s decision. In order to justify their respective positions, both parties commenced proceedings in the Technology and Construction Court, Carillion claiming an order enforcing the Adjudicator’s decision and summary judgment on its claim and Devonport claiming declarations that the Adjudicator’s decision be regarded as invalid.
mendations his investigation into theskills. stateThe of the UK tion Court recently clarified four basic principles that a Court and broaden following general business knowledge and Construction Industry. Latham recommended, among other should apply in deciding application for the enforcement The capacity of our space is twenty any stations. We are curresult is a kind of work environment that is inspiring, colthings, that “… a system of adjudication should be introduced (or challenge) of an adjudicator’s decision. rently half full and processing the other batch of applicalaborative with potential to grow one’s professional dewithin all standard forms of contract (except if comparable artions. We do not have a website running yet but we can velopment. rangements already existed for mediation or conciliation) and Devonport Royal Dockyard refits and refuels warships and be contacted at our facebook page or Icowork 72114393. that should be underpinned by legislation …”.¹
The Honourable Mr. Justice Jackson carefully reviewed recent British case law on the question of enforcement of (and challenge to) Adjudicators’ decisions and went on to clarify four principles that a Court should apply in considering any action for the enforcement (or challenge) of an Adjudicator’s decision: 1. The adjudication procedure does not involve the final determination of anybody’s rights, unless all parties specifically agree; 2. The British Court of Appeal has repeatedly emphasised that an Adjudicator’s decisions must be enforced, even if the decision results from errors of procedure, whether in fact or in law; 3. Where an adjudicator has acted in excess of his jurisdiction or in serious breach of the rules of natural justice, the Court will not enforce his decision; and 4. The Court must astutely examine technical defences with a degree of scepticism consonant with the policy of the HGCRA (particularly relevant in the UK context). Errors of law, fact or procedure by an Adjudicator must be examined critically before the Court accepts that such errors constitute excess of jurisdiction or serious breaches of the rules of natural justice.
“Ayou party to construction contract to refer a as continue to work for yourselfhas butthe notright by yourself.
On an application of these four principles Mr. Justice Jackson found that the fact that the adjudicator’s approach to the assessment of the target cost might have embodied certain errors of fact and law was, on its own, not an excess of jurisdiction or a serious breach of the rules of natural justice.
construction contracts) that “… adjudication shall be applied
tothe all categories of it construction contracts,loca(viz., engineerWe chose CBD because offers a convenient ing and construction works, and supplies) at both tion for professional consultancy firms.services We also reject the Eighth Edition – August 2010 prime and subcontract and beministries a mandatory requiretrend where CBD is dominated bylevel, government GENERAL: Adjudication (Part 1) ment for the settlement of disputes before the completion of and big corporations. We should balance the tenancy We are a coworking office space. The question then is the contract …” the CIBD implies (in relation to private sector mix of the CBD to avoid class segregation and elitist imwhat is coworking and why do we believe our city is In the UK the concept of adjudication dates at least to the construction contracts) that provision should be made within pressions. Small business can be creative and run their ready forInit?response to a widespread problem of labour con1970’s. the contractual framework for dispute resolution by adjudicaandofnot bepractice intimidated by it. The contracts. tractors not making proper and timeous pa ment to subcon-businesses tionfrom as ahere matter best in construction freelance professional who cycles to work or walks to Coworking is an innovative office solution tailored for tractors, the industry itself introduced provision for adjudication work with a backpack should know that Icowork gives freelancers, small businesses and startups, to form a for some limited purposes into certain building subcontracts. Enforcing (or challenging) an Adjudicator’s decision … him an office at the best location in town and he doesn’t community of professionals that work from the same In the with report entitled “Constructing theobjectives Team” (produced July to change In Carillion Ltd That’s vs Devonport whoConstruction he is to belong. how we Royal will Dockyard place shared facilities. Their key are to in have 1994) Sirprofessional Michael Latham reported cut his findings and recom-attain the(TCC British and Construcbest 26 vibeApril and 2005) energy the of the CBDTechnology streets. establish relationships, operating costs
nuclear submarines for the Royal Navy. In early 1997, the
I have been a freelancer for the past twelve years. I know dockyard was privatized and at the time it was decided that BUILT IT facilities should be upgraded and new facilities the advantages and disadvantages of being in anthe indepenLatham’s recommendation was adopted UK throughHOW WEthe existing dent professional. The fact that you don’t have a proper section 108 (1) of the Housing Grant, Constrution and Regenprovided. Part of the purpose of these works was to enable eration Act structure 1996 (themeans HGCRA) provides: We started an honest premise: werecent had classes of professional you which lose out on ever growthe from dockyard to refitand andclear refuel the most submarines employed by the Royal Navy. The Ministry of a tight budget, therefore our implementation path had ing corporate trends. Icowork will therefore fill that gap
Defence engaged Devonport to carry out and these works under to rely on other people pitching in money, labour dispute arising under the contract for adjudication under skills to make a costit reimbursable with aoftarget cost mechanism. a reality. I havecontract a background creativity a procedure complying with the section. For this purpose and DIY in building projects therefore I was at the foreOne of our services is that we will have monthly business “disputes” includes any difference.” Devonport in turn engaged Carillion as subcontractor to front from design, project planning and construction. We talks where we network in a casual setting and discuss carry out the upgrading of one of the docks, which included could not afford professional designers or contractors, so various core issues that affect small business such as tax, The effect is quite simply that parties to a written construction replacing the dock walls and base and constructing four it was always myself and an assistant or a technician from financial business development. contractplanning, in the UKand have no escape and are obliged to submit new buildings. One of the new buildings was a decontamito construction. We did not get any funding disputes to adjudication. Furthermore, the Woolf reforms conception nation building, which would contain apparatus for removfrom a bank so initial capital was from family and friends The world is collaborating more than ever before. Amerintroduced into the UK judicial system in the late 1900’s made ing nuclear contamination. and over time, potential members advanced their memica, Europe, and Asia are big step on coworking spaces. Africa adjudication a mandatory to litigation in certain instances. Similar introduced in Australia bership fees order tobetween make theDevonport project a reality. has beenstatutory slow butobligtions there hashave beenbeen an upsurge in recent The in contract and Carillion included an and New Zealand through similarly legislation. Pres“Alliance Agreement” which supplemented the provisions of years in South Africa, East and Northworded African countries. entlyisthe South African construction environment is not regu-Coworking theissubcontract in order to sharing, promotedesk partnering different from office shar- and harmoniThis due to the increasing complexity of city econolatedand by similar legislation. Referral of disputes adjudication relationstemporary between office the parties executing ing or anous executive suitesinsolution. It the Project. mies the recent economic downturn whichtoled to is not (by application of such legislation) mandatory. Alliance included a built dispute resolution proceis about The people doingAgreement it for themselves. It is from more innovation and creativity to remain relevant. dure, which provided that disputes would first be referred to the bottom up. I knew that I had skills in design but had Initiatives have been implemented by the Construction Inthe “Alliance Board” and then to the incongruously named limitations in IT solutions and marketing. Therefore the The knowledge economy and smart cities that we all dustry Development Board (the CIDB) to introduce adjudica“Star Chamber”. (The original Star Chamber was an English approach was that we will build the infrastructural framewish to attain do not just comefor about because of fancy tion as an alternative method resolving disputes into the court of law active in the Tudor and early Stuart periods, work andwhich have was faithabolished that we get who will 1600’s, fill buildings and infrastructure, but rather by creative and broader South African construction environment. bymembers parliament in the by which other gaps. The result is exactly as we imagined it and the innovative city residents who choose to push boundaries time its name had become synonymous with secret and irgroup is responsible getting better evenproceedings). before our official opening. and the nature ever complex challenges of the city. Man-by Mr. The solve general of adjudication was summarized court Justice Diyason (as has he was then)toingo thewhere landmark British case agement of Icowork decided the world Macob Engineering Limited vs Morris Construction Agreement, the Alliance Board The otherPlainly, critical neither thing is the thatAlliance the design seems complete isofgoing andCivil we believe our city is ready given the good Limited [1999] BLR 93, TCC, at page 97: nor the an Star Chambercanvas, provedwaiting up to the of maintaining but it is actually incomplete for task memharmonious relations between the parties. The target cost, “…The intention of Parliament in enacting the Act was plain. which was initially set at £56 million, rose by a series of steps It was to introduce a speedy mechanism for settling disputes contained in amendments to the contract to approximately in construction contracts on a provisional interim basis and £96 million. This was well below the figure of £114 million requiring the decision of the adjudicators to be enforced that Carillion was arguing for. pending the final determination of disputes by arbitration, litigation or agreement: see Section 108(3) of the act and In addition, disputes existed concerning the reimbursable paragraph 23(2) of part 1 of the Scheme …” costs due under the contract, including claims for defective works presented in a sum upwards of some £21 million. With The practical aims of Adjudication (as an Alternative Dispute nowhere left to turn under the terms of the Alliance AgreeResolution process) are quite simple. A dispute, which may ment, Carillion served on Devonport a notice of adjudication affect the relationships between the parties, is quickly rein respect of these disputes. solved (in real time relative to execution of the Project) in such a manner that the parties are forced to put it behind them Faced with the unenviable task of adjudicating the disputes and get on with the contract or with the remainder of the within 42 days, the Adjudicator directed the parties to pro-
The evidence showed that the Adjudicator had not simply carried out a judgment of Solomon, but had reviewed the material put forward by both parties in a manner that was perfectly appropriate considering the time constraints under which he was operating and the sheer volume of evidence and intricate submissions which were thrust upon him. Ultimately Mr. Justice Jackson was satisfied that the Adjudicator had properly considered and addressed Devonport’s claims for defects and, whether he was right or wrong in his decision, it could not be said that he had exceeded his jurisdiction or acted in serious disregard of the rules of natural justice. In conclusion, Carillion obtained judgment in respect of the entirety of the Adjudicator’s decision, which enabled Carillion to enforce the Adjudicator’s decision against Devonport. Adjudication in the UK is generally regarded as having kicked off to a good start. Parties to adjudication proceedings are increasingly accepting adjudication decisions as a blue print for, if not the final resolution of, their disputes. It remains to be seen whether adjudication (which is not a mandatory process in the South African construction environment) will produce the benefits it aspires to yield, only time will tell.
¹ Sir Michael Latham, Constructing the Team, dated July 1994, see note 1, page 91, paragraph 9.14 ² See Practice Guideline Number 3: Adjudication (March 2004: Edition 1 of CIDB document 1011) at page 2
Disclaimer: The contents of this newsletter does not constitute legal advice. If you have a specific problem please contact MDA on 011 648 9500, at our Durban office on 031 764 0811 or by e-mail on info@mdaconsulting.co.za
BOIDUS FOCUS March 2014
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BOIDUS FOCUS March 2014
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