OIDUS FOCUS Registered at GPO as a Newspaper | P8.00 (Including VAT)
BOTSWANA’S BUILT ENVIRONMENT NEWSPAPER
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| Volume 4, Issue 8 | SEPTEMBER 2014
A Perfor22 Understating 08 Lifestylenoted: Man Cave Design mance Bond, Its Purposes
F/town City Can 07 How Exploit PPPs for Infra-
structure Development
Therapy
And Implications?
BOIDUS FEATURE >
China or Local - Where to buy your building materials
BOIDUS EXCLUSIVE >
by Keeletsang Dipheko & Kibo Ngowi
Can Botswana Grow its Glass Production Industry? A P120 million market with the potential to rise through exports by Kibo Ngowi Glass production has been identified as an untapped market that Botswana has the potential to exploit. In an exclusive interview with Boidus Focus a Director of the leading
glass supplier in Botswana shares his insight on the country’s glass market and its prospects for the future. CONTINUED PAGES 04, 17
The Drive to Position Francistown as a Centre of Investment In recent years Botswana has seen a growing trend of local consumers turning east for their building material needs to Chinese suppliers and this development has not been without controversy. Boidus Focus speaks to suppliers and regulators in an effort to find out what buyers need to keep in mind when choosing between local or Chinese materials. CONTINUED PAGES 03, 16
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OIDUS FOCUS
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OIDUS FOCUS Registered at GPO as a Newspaper | Volume 3, Issue #2
Botswana’s Architecture Design and Urban Landscape Newspaper | S E P T 2 0 1 3
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NEWS | page 02
EDITORIAL | page 05
PROF PRACTICE | pages 16
Global Design Giant, AECOM Completes Takeover of DAVIS
Are Property Valuers influenced by Borrowers and Lenders?
It’s Time to Envision A Better Barclays Bond Switching Built Detroit. Are Architects Campaign: Boidus Speaks to Ready? BarclaysArchitecture Home Loans Manager Botswana’s design
NEWS | page 02
EDITORIAL | page 04
Letlole Larona Breaks Ground at the Kromberg and Schubert Botswana (Pty) Plant
Government to Promote IntroHow ready is Botswana for duction of Residential DevelopInevitable BOIDUS EXCLUSIVE the FEATURE > Change towards ment into the CBD Global Decarbonisation targets?
SUSTAINABILITY | page 06
FINANCING | page 18
NEWS | page 02
EDUCATION | pages 15
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Guide to School Programmes: 2013 Built Environment Careers Guide
Botswana’s Property Outper-
BOIDUS EXCLUSIVE >
& Urban Landscape Newspaper | M A R C H 2 0 1 3
BUILDINGS | page 06
HOUSING | page 16
PRACTICE | pages 14, 18
The Idea of Eco Cities: Need for harmony between policy and green initiatives
Buy or Build a new Home: The Pros and Cons
Disentangling the Web – A Look at Infrastructure Project Management
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A Luta Continua on the Land Question Airport Roof Gone with the Wind
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Event Feature: State of our Citiesforms Equity (DCI), Bonds CBD Executive Seminar Event(BBI) - IPD 2012
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BOIDUS EXCLUSIVE >
Bringing together key CBD stakeholders such as landowners and developers to engage on issues that affect their developments and investment The IPD
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BDC FAIRSCAPE PRECINCT, The Realm of Splendor - Live, Work & Play With Breath taking Views Kazungula Bridge - The Gateway To African Mainland
BOIDUS EXCLUSIVE >
Botswana Property Consultative Index 2012 Indicates “Public Piazza, Mixed Use Podium and Sky gardens coming to Gaborone” Decline in Total Returns by Kibo Ngowi & HK Mokwete
by Kibo Ngowi & HK Mokwete
by HK Mokwete
Boidus (Pty) Ltd.
P. O. Box 50097, Gaborone Plot 2930, Ext. 10, Gaborone t +267 3182209 m +267 73805898 e mail@boidus.co.bw w www.boidus.co.bw
MEDIA EVENTS
Registered at GPO as a Newspaper | Volume 3, Issue #6
OIDUS FOCUS Langdon Botswana’s Architecture Design and Urban Landscape Newspaper | J UBotswana NE 2013
The final piece of the ‘trans-Kalahari’ corridor
Red East Construction: Award Winning Chinese Contractor
by Boidus Admin
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
company apart from its counterparts and defied the perception of poor construction workmanship as a uniquely Chinese problem. >>> CONTINUED PAGE 07
Underlying all of the engineering ingenuity, bridges play a critical role in bringing trade hubs, communities and other trade benefits to communities. In
the mighty Chobe River’s 400m width will soon be an issue of the past. The new proposed bridge will not only connect communities on both side of the
Kazungula, the Ferry, which used to play the mobile bridging element, might be seeing the last of its heroic days. Plagued with problems such as delays of up to days especially in rainy season, accidents and others, the bridging of
Chobe and Botswana and Zambia but also open a corridor of trade and goods services to the heart of Africa. The bridge will complete the missing part in the so called ‘trans-Kalahari’ corridor.
Birds-eye view
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 PresentationOthata by Jobe Ofetotse, DTRP Batsetswe: FinMark
Stan Garrun: Executive Director & Head of South Africa, IPD
Dr Keith Jefferis: EConsult Botswana
by Boidus Admin
Botswanafailings of the CBD concept SouthbutAfrica Introduction more Thank you to the organizers for inviting challenging to come up with solutions important identified. 17.9% where problems have been10.4% That is what we hope the seminar will concentrate upon.
Total Return DTRP to contribute to this % 12 months and highly topical seminar.
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)
2,850.2 Capital In organizing it, BOIDUS have directly (BWP million) All Property responded to our concern that it is easy From
>>> CONTINUED PAGES 08, 13, 18
to be critical and identify perceived
Botswana’s Property Index for year
204,844
(ZARmillion) a DTRP standpoint, the forum 1BWP :PAGE 1.18ZAR >>> CONTINUED 04
Australia 6.2% 7,164.8 (€m) 1BWP : 7.75€
in Africa region (South Africa) in col-
IPD produces more than 120 indices,
2012 released by IPD indicate a slight lating of a Property Index P500 by IPD, the (FOR BOTH DAYS) June 21-22 leading provider of worldwide critical University of Botswana healthy 17.9% The figures is a fall from business intelligence, including analast year’s return of 20.9%. Botswana lytical services, indices and market inP300 IDEAS EXPO BOTSWANA is an event designed to combine the best ofjoined creativity, business and technology recently the only other country formation, to the real estate industry. *PRICE PER DAY FOR INDIVIDUALS OR PAY in which participants are invited to give talks, do demonstrations, and show their work. P500 FOR BOTH DAYS.
as well as almost 600 portfolio benchmarks, across 32 countries enabling real estate market transparency and performance comparisons. >>> CONTINUED PAGE 04
FIND CREATIVE
TO COMMERCIAL fall in total return but still returned a
ANSWERS QUESTIONS. 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.
student price for both days
FOR INDIVIDUAL AND CORPORATE TICKETS CONTACT +267 72 49 51 71
FNB’s CBD HQ – Intelligent Corporate Architecture by Kibo Ngowi
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
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
>>> CONTINUED PAGE 07
Government & Private Sector Sorting Out Construction
MIST, BOCCIM & Industry Professional Task Force
Public Piazza
With stakes high in Botswana ofreality in one area. views from across the City. Boidus ficeby market, was recently given exclusive tour of KiboBotswana Ngowi Development Corporation’s Fairscape Precinct is The Iconic tower which has been the construction site to experience set After to raise the bar what reports quality and slowly the skylinesuch of asfirst hand this exciting project as it more thanof four nu-emerging sionaloff Associations AAB, ABCON, office space attempts is by delivering an AFairgrounds is setting unmissable becomes reality. merous by international conBIDP, BIE, TBBA, and other stakeholders grade mixed use development which view of a gleaming honey comb sultants to formulate and implement are laying out the foundation to what will will see work, play and live become lattice structure with unparalleled >>> CONTINUED PAGES 08, 13
regulatory standards for our ailing construction industry over the space of 20 years, the drive to put real action into solving the industry’s underlying prob-
be Botswana’s CI Regulator. The all powerful body will have authority and overreaching powers over all that is construction across both government and private
lems be gaining momentum. A task force headed by MIST, through Deputy PSP, Ulf Sodderstrom, BOCCIM, Profes-
construction activities.
Office of the President
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
Last month the City of Francistown hosted the Francistown Investment Forum as part of its bid to position Botswana’s ‘Capital of the North’ as the lead economic hub in Southern Africa by 2022. Boidus Focus presents highlights of this first of its kind
Boidus PLATFORMS
PUBLICATION
MEDIA
by Kibo Ngowi
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
FNBB ROUNDTABLE DISCUSSION - DECEMBER 2013 AFFORDABLE HOUSING MARKET OPPORTUNITIES BREAKFAST FORUM SERIES - SEPTEMBER 2013 BOTSWANA PROPERTY MARKET STATE OF OUR CITIES - MAY 2013 CBD EXECUTIVE SEMINAR STATE OF OUR CITIES - APRIL 2012 DESIGNER’S FORUM
>>> CONTINUED PAGES 08,13
BREAKFAST SEMINAR SERIES - MARCH 2012 HOUSING AFFORDABILITY IN BOTSWANA
conference and an insight from Economist Othata Batsetswe [see page 07] on the potential models Francistown can adopt to access funding for the important matter of infrastructure funding. CONTINUED PAGE 18
Boidus PLATFORMS
SOCIAL MEDIA
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Professionals Information Seekers Students Organization Affiliations Visit us on our website:
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BOIDUS FOCUS September 2014
Turnstar, RDC warn of intensifying commercial property competition
News Briefs CONSTRUCTION SECTOR MEN MOST VULNERABLE TO WORKPLACE INJURIES
by Keeletsang P. Dipheko
The Ministry of Labour and Home Affairs has revealed that most workplace injuries take place in the building and construction sector and that the majority of those applying for Workman’s Compensation are men. According to the figures, 1,173 work related injuries were recorded in 2011, 1,251 in 2012 and 1, 127 in 2013 and statistics indicate that male employees are injured far more often than their female counterparts.
BIH HOSTS INAUGURAL NATIONAL INNOVATION AWARDS Botswana Innovation Hub (BIH) in collaboration with the Southern African Innovation Support (SAiS) Programme hosted the inaugural National Innovation Award (NIA) ceremony recently. The awards were split into two categories. The grand prize of P5, 000 in the Engineering and Mining Design Competition went to Aubrey Ramakoba and Tshepo Gaogane for designing a mechanism to produce synthetic gypsum. The grand prize of P50, 000 in the National Biotech and Cleantech Competition went to Reuben Kerobale who created a fast burning waterproof bio capsule that makes a fast cooker for all conditions.
The Botswana Stock Exchange listed property companies, Turnstar Holdings and RDC Properties Limited, have both indicated there are ‘hardening investment’ yields as the market is becoming increasingly ‘competitive.’ An RDC statement noted that the property market in Botswana is becoming more competitive especially within Gaborone as a result of the increased supply of available office and retail space. The other top property player, Turnstar, warned in its report that there is already evidence of declining base rentals and hardening investment yields due to an oversupply of office space and shopping centres around the city.
GE TO INVEST $2 BILLION TO BOOST AFRICAN ENERGY, INFRASTRUCTURE
At the centre of the concerns is the new Central Business District (CBD) in Gaborone which has, in recent years, experienced rapid development with dozens of companies constructing property in the area. Unfortunately, this rapid growth has been driven more by government policy than by market demand.
General Electric Co (GE.N) has pledged to invest $2 billion in Africa by 2018 to boost infrastructure, worker skills and access to energy. U.S. companies still have opportunities to catch up to China, Europe and Japan, who have made bigger strides in investing in the fast-growing continent, GE Chief Executive Officer Jeffrey Immelt said. GE’s investments include deals to work on increased electric grid reliability during peak power demands in Algeria and to generate uninterrupted power for the Nigerian National Petroleum Corp’s state oil refinery. (Reuters)
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The CBD Master Plan envisioned a phasing strategy that would allow the CBD to grow incrementally through three phases and over 20 years. The original pragmatism has since been replaced by a directive requiring all plots in the new CBD to be developed within two years of land award. Commenting on this approach, then Director of Knight Frank Stephen Wyatt was quoted as saying, “In practice it cannot possibly work. If everyone started construction as they should the market will crash.”
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Compiled by Keeletsang P. Dipheko
BIC - SURE! ACQUISITION Press Release [01 September 2014] In a previous statement released by Botswana Insurance Company Limited (BIC), dated 9 May 2014, the company stated that it was in the process of discussing a potential acquisition. BIC is pleased to announce that it has purchased the general lines insurance book of BIHL Insurance Company Limited. Regulatory approvals for the transaction have been obtained and all legal documentation pertaining to the acquisition has been finalized. The transition has brought on board additional skills from BIHL Insurance Company Limited to the BIC head office. Stakeholders can rest assured that the highest standards with regards to continued service delivery and product quality will be maintained through BIC’s robust service delivery model. Clients with queries should contact BIC head office.
CONSTRUCTION PITSO RESOLUTIONS LEAD TO UNBUNDLING OF MEGA PROJECTS The Ministry of Infrastructure, Science and Technology held a construction Pitso (conference) recently and during the Pitso the Acting Director of the Department of Building Engineering Services Mr. Ketsile Kutoro indicated that the process of unbundling mega projects has begun. The projects include Shakawe primary hospital, two police projects and maintenance for 23 senior secondary schools. MIST included three other ministries: Local government and rural development; Works and Transport; and Minerals, Energy and Water Resources, to allocate the unbundling of mega projects.
BOIDUS FOCUS September 2014
Boidus Main Feature Page 3
China or Local Where to buy your building materials by Keeletsang Dipheko & Kibo Ngowi
CONTINUED FROM THE FRONT PAGE
sung and because it is a well-known brand name there is less difference on the price range from other countries:
quality as they are capable of manufacturing their own materials. However, Bannerman cautions that sometimes people buy materials from China and then rebrand in their own name. In conclusion, she advises people to do research before going to China and to see the value of finding somebody knowledgeable to guide them: “For them to leave Botswana without somebody to show them quality goods means they would obviously end up buying low quality stuff. Countries are different so going there
“You will find that a Samsung fridge that you purchase at Game shop with P10 000 you will buy at P7000 from China because it’s a brand name for the whole world. People go to China and expect to buy it at P2000 but it is not possible.” Although most of the materials in Botswana are from China some are from South Africa which also has a good industry with good
without somebody to help you means you’ll end up meeting someone on the street who will drive you to buy poor materials.”
Innovation is Mabel Bannerman is an agent who plies her trade by assisting homeowners to acquire building materials from China. Her venture into the world of importing goods began in 2008 when she was building her own house in Block 8 and decided to go China to buy materials. Unfortunately the service she received was unsatisfactory as she was not made aware of the extra charges that come with purchasing and shipping materials. While reeling from the poor service she received Bannerman learned that there were many other Batswana buying materials from China and experiencing the same problems she encountered. She saw this as an opportunity to create a business that would assist Batswana homeowners to buy Chinese materials. She has now been helping people to acquire building materials from China for the past five years and while she was operating informally for the first year she now has a registered company. Bannerman says she does everything for her clients, including finding out what they want, applying for Visas and booking flights. She has two employees in China who guide her custom-
ers. When the customers arrive in China, Bannerman’s employees collect them from the airport, get them checked into hotels, and then take them to specific shops to find the materials they want to buy. “Every month I help about five people to buy materials from China and the response is good because people come to me knowing that they will get materials in China for a fair price,” says Bannerman. Asked what influences people to abandon local materials in favour of shopping abroad, especially in China, Bannerman explained that though most materials sold locally are imported from the same place, people still go to China themselves for the variety:
“China has got the best quality and variety of materials but it also depends on the budget of the customer. Obviously if your budget is not that much you will get low quality materials but we don’t offer people low quality because there is no point in someone leaving Botswana for low quality material.” Bannerman explains that it is a misperception that everything in China is cheap. Most people leave Botswana thinking that they are going to buy materials at a cheap price, “but cheap stuff also has its own effect; price determines the quality,” says Bannerman. She adds that the cheap materials look the same as the best quality ones but prices differ which shows that other materials are more valuable than others. Bannerman explains that the challenge they face is that some products in China have a brand name known worldwide like Sam-
happening here... come and join us.
PROPOSED BOTSWANA INNOVATION HUB CENTRAL BUILDING PLOT 69184, BLOCK 8, GABORONE
ELECTRICAL CONTRACTORS - ADVERTISEMENT Suitably qualified contractors are invited to submit tenders for the electrical installation for Botswana Innovation Hub Icon Building development on Plot 69184, Block 8, Gaborone.
THE PROJECT COMPRISES THE FOLLOWING WORKS AS BRIEFLY DESCRIBED BELOW: Approximately 22,000m2 office development comprising of 2 office blocks ranging from 2 to 4 storeys in height to be constructed by others on Plot 69184, Block 8, Gaborone. Tender Documents can, with effect from the 1st September 2014, be obtained from:-
The Chief Executive Office Botswana Innovation Hub Plot No. 50654 Machel Drive Bag 00265 Gaborone Botswana Telephone: +267 391 3328 Facsimile: +267 391 3289 All relevant information regarding the tender, as well as the specific requirements are set out in the tender documents. The following is provided to assist prospective tenderers:1. A non-refundable cash fee of BWP1500.00 shall be payable upon collection of the documents. 2. Prospective tenderers are advised that submissions will only be accepted from contractors registered with PPADB who can produce proof that they are registered for electrical works in PPADB CODE 02 Electrical, Sub Codes 01 04, 06, & 07 Grades E “Unlimited” or equal for contractors not registered in Botswana. 3. Prospective tenderers must include valid Tax
Clearance Certificate or Exemption Certificate in their technical submissions. 4. The tender will take the form of a ‘two envelope’ process, whereby the technical part of the submission (capacity, capability and experience) will be adjudicated before the opening of the financial part of the submission. Financial submissions will only be considered from tenderers who attain 70% or more in the technical submission. 5. No expenses in respect of the preparation and/or submission of the tenders will be reimbursed. 6. Tenders shall be delivered to First Floor, Botswana Innovation Hub Offices, Maranyane House, Plot 69184, Machel Drive, Gaborone, not later than 10.00am on 29th of September 2014. 7. Any faxed or emailed proposals, or those received after the stipulated closing time will not be eligible for consideration. 8. Tenderers are encouraged to attend a pre-tender meeting to be held on site on the 9th September 2014, starting at 11:30am. The meeting is to give the bidders a chance to seek any clarification regarding requirements. Enquiries may be addressed to Mr Mothusi George at AMA Projects (PTY), LTD, P. O Box 1127, Mogoditshane; Fax No. +267 3951668 Email Address: mothusi@amaprojects.co.bw and copied to Mr Alex Monchusi at monchusi@systems.co.bw and Mr S. Campar at campar@zhengtai.co.bw
Boidus Feature Page 4
BOIDUS FOCUS September 2014
Can Botswana Grow its Glass Production Industry? by Kibo Ngowi
locally. However, he does say the magnitude of the proposed glass project in Palapye was potentially unsustainable: “From press releases we understand the plant was capable of producing around 450 tonnes of glass per day and that’s probably Botswana’s total monthly consumption... South Africa has just two huge float plants which currently service the SADC countries and in fact the output of the two float plants has been reduced.” Thomson believes the key to establishing a glass production industry within Botswana lies in selling outside the country’s borders as there is potential to export large volumes of glass, especially up North in countries such as Zambia, Malawi and Tanzania. Some of these countries currently import from Egypt and it would be cheaper for them to buy from Botswana if that were possible.
CONTINUED FROM THE FRONT PAGE
“I would say current glass sales in Botswana amount to around P120 million annually but with many contractors bringing in their own glass from abroad it’s difficult to determine the exact quantities involved,” says Mr. Jeff Thomson. Thomson is one of two partner Directors of Delta Glass & Aluminium, one of Botswana’s foremost suppliers of specialised glass products and architectural aluminium applications. Thomson is in charge of the glass division of the company while his partner Grant Stacy oversees aluminium. “Five years ago when the government was putting up infrastructure all over the place it was almost double what it is now.” Thomson explains that when government was still active in the construction industry it actually encouraged local procurement of materials so many local suppliers did well out of the arrangement. Now the situation is quite different because the rapid growth in private development
has been accompanied by a trend of architects and main contractors becoming increasingly selective in their procuring methods. Price is the
decisive factor now so most of them prefer to import materials from China and South Africa where companies can afford to sell their products at far cheaper prices than local suppliers. As a result, local companies in glass and other building aspects have benefitted very little from the recent growth of major urban precincts such as the new CBD and Fairgrounds Office Park. Botswana has been judged by some to have sand of a good quality to produce high-grade glass. In fact in 2011 it emerged that Botswana Development Corporation (BDC) had partnered with China based Shanghai Glass Manufacturing Company to build a major glass production plant in Palapye at a cost of over P500 million but problems between the two partners led the project to collapse. When posed with the question of Botswana’s potential to create a robust glass production industry Thomson responds with a mixture of scepticism and optimism. Firstly he indicates
that huge deposits of alluvial silica are known to be available in Palapye and Mahalapye and that another key ingredient soda ash is also available
ROADFREIGHT 8-36 tons Bulk transport (tiper) Contract distribution services Refrigerated trucks Deliveries of sand, gravel & aggregates
Consolidations from Johannesburg Crane trucks Truck and from-end loader hire
Behind kgale quarries/private bag B06 We also have offices in Johannesburg
automatic cutting tables with a very small staff complement but with us it’s very labour-intensive and we’ve kept it like that for the last 10 years and our guys have been with us since we first started the business.” Exploring frontiers for growth outside the country’s borders is something Thomson believes is a necessity for his own company as well: “Botswana is pretty much saturated at the moment. We’ve actually reached a point now where unless the government carries on with development, we’re not going to grow much more. We actually supply projects up in Zambia at the moment because a lot of our customers have actually been awarded contracts up there. Just this year, seven of our regular customers have actually opened up their own branches in Zambia and they’re buying all their glass from Delta.” While there may be no room for growth there
“The establishment of foreign markets to handle the vast quantities produced would be fundamental to the project’s long-term survival and this would need to be secured from the onset,” says Thomson. “The local market could pick up the value added benefits in the laminating process creating safety and tinted performance glass with the possibility of the establishment of coating facilities.” Delta Glass & Aluminium was established in 2003 and in 2010 PG Africa bought a majority stake in the company though it still operates more autonomously than the 26 PG Africa branches spread across the continent. Delta employs sixteen personnel in the glass division and four in the aluminium and Thomson is proud of the fact that they have been able to resist the temptation to automate their operations which would lead to a reduction in the staff complement. “Instead of going the automated machinery route we’ve remained one of the few relatively large operations still cutting and processing glass by hand,” says Thomson. “We’ve got three cutting teams in our warehouse and it’s amazing what they produce. In fact foreign experts and other suppliers from South Africa have come to look at our operation and they can’t believe that we still process glass by hand. Most operations in South Africa have overhead cranes and
is still a domestic demand for glass and Thomson has noted an increased focus on the use of energy efficient performance products in an effort to reduce energy costs in buildings. “We have noticed more residential developments including solar products in their construction. The focus now is energy savings. In South Africa legislation has been passed to
include performance glass in all buildings and this trend will eventually filter through to Botswana as our architects and specifiers begin to understand the long-term benefits of these products.” Delta Glass & Aluminium has been responsible for a number of high-profile projects including the Sir Seretse Khama and Francistown Airports; the Square, Prime Plaza, and the Industrial Court, all in the CBD; as well as the Diamond Trading Company facility and Debswana Headquarters.
BOIDUS FOCUS September 2014
PART
1
Consumer Education Page 5
Essay 1
PRACTICAL ADVICE GUIDE
September 2014
Steps to follow when applying for a mortgage loan
This educational column focuses on the documents required when one applies for a mortgage at Botswana Building Society
Botswana Building Society (BBS) regularly receives inquiries from potential customers about the process of applying for a mortgage loan, types of loans, requirements and the turnaround time from submitting a loan application to approval. In an attempt to address the latter, this issue will focus on the documents required from individuals when they apply for a mortgage loan for the first time.
• Payslip - A pay slip will prove whether you are in a steady financial position or not. Thus a payslip plays a decisive role in acquiring a loan. BBS must be certain that the person will be able to give regular installments and the loan will not become bad credit. Payslips clearly establish the financial credential of a person. • Three months bank statement - BBS also requires a bank statement reflecting salary. These statements include information on debits and credits on the bank account. It is one of the only sure ways that an individual’s cash flow can be determined. In other words, how is he/she spending income and how much income is the individual actually receiving? • Certified copy of your National Identification Card (Omang) or Passport for non Batswana for identification. • Copy of Marriage Certificate or Decree Absolute where applicable. • Letter confirming employment. • Structural Survey Report - The report opens your eyes to all of the potential or actual problems in your new home. The surveyor identifies problems and correspondingly advises on what needs to be done to rectify them. It is suitable for any property, old or new. It is particularly useful if the property is older or has been extended or altered or perhaps been kept in a poor state of repair. This means that your decision about which house to make an offer for is more informed from the start. • Valuation report - A valuation is a property inspection carried out with the sole purpose of estimating the value of the property. This value will also be used to assess how much money you qualify for. A valuation is, therefore, not a survey. It is a very limited inspection compared to a survey. That is why it cannot not be used as the only indication of whether to buy a property. • Copy Of The Title Deed - A deed is a signed legal instrument which is used to grant a right. It is executed and acknowledged under the seal and in the presence of an attorney evidencing the right of ownership to a property described therein. • Offer letter - An offer letter should come from a seller stating the property in question, have an address, a price and any other terms you would have discussed. It should be signed by both you (the buyer) and the seller.
cannot afford. Being satisfied with the plan designed, you will now submit it to the city/town council for assessment. The plan can either be approved or returned to you with alterations. In the event that your plan is rejected, patiently work on the amendments and submit it again or make a new one all together. However, the second option might be costly. Nonetheless, have the plan finalised and approved. • Three quotations from construction companies (Labour & material inclusive) - Engage three contractors who will assess the plan and work on estimates of how much the structure is likely to cost. The estimates will be inclusive of both labour and building materials. You then have to ensure that a tender evaluation report, with regard to these quotations is done. • Tender evaluation report - A tender evaluation is an assessment of all vendor proposals you acquired. It ensures that specifications and pricing are correctly done and in line with your requirements. It helps to identify tender deficiencies and missing information. A detailed tender evaluation report will also enable you to negotiate the best terms and conditions for your project. All the requirements stated above are necessary to either acquiring a building loan or buying a house. Therefore, applicants are advised to ensure that they have all the required documents to avoid unnecessary delays. Please also note the following At BBS the turnaround time for processing a mortgage loan application is 48 (forty-eight) hours. It is also important for you to be aware of any credit reports about your financial history before you apply for a mortgage loan because the reports play an important role in the mortgage approval process and in determining the interest rate and other loan terms that BBS will offer you. If you have not looked at your credit report, you might later be surprised by its contents which might include errors. Finally… Buying a home or building one is not as difficult as you might think. Even if you are short on funds the process will be a lot smoother if you familiarise yourself with your real estate market and narrow down your wants and needs before you start viewing houses.
In addition to documents discussed above, the following will apply if you are in need of a building loan.
You might also encounter issues during your application process, some specific to your location and your transaction, that can best be explained and handled by your local real estate agent, your lender, your attorney, your closing agent (a person who coordinates the closing of loan documents and disbursing of funds), or others who are helping you complete the home buying transaction. More importantly, never hesitate to ask questions. Ask as many questions as necessary to understand the entire home buying process. This is because you are making a long term commitment and spending a major amount of money. You will feel much better about the transaction if you stay informed and understand what is happening every step of the way.
• Approved plan – Consult an architect of your choice who will then design a plan for you. Be sure to make them aware of how much you qualify for, lest they exceed your budget by designing something you
BBS has Sales Consultants who are well informed, trained and always ready to assist you. You may reach them at 3971396 or visit any of our branches country wide for assistance.
In the next installment, which shall be next month, we will discuss types of mortgages. It will range from purchasing an already built house, building a house and purchasing land across the country.
Sustainability Page 6
BOIDUS FOCUS September 2014
SUSTAINABILITY TODAY
Brands addressing sustainability for the consumer - The Africa Solution
Drought tolerant landscapes & the concept of xeriscaping Xeriscaping focuses on plant choices suited to the native climate, through the use of water conservation methods such as mulch, and calls for homeowners to minimize water-guzzling lawns by using the natural terrain as part of the garden design. As you will see from the following photos, many natural elements such as stone and wood blend seamlessly to form elegant minimalist landscapes; these landscapes are easy to care for and provide a modern counterpoint to many home styles. Landscape design using the seven principles of xeriscape gardening makes sense, especially in Botswana and other areas typically hit by droughts. Use of natural plants and stones adds beautiful shades of gray and green to the garden without costly watering.
Xeriscape gardens incorporate appropriate plant material, such as this ornamental grass, that thrives under harsh conditions. Mulching remains a core principle of xeriscaping. A 5-10 cm layer of mulch retains moisture and provides optimal soil conditions in the garden.
where “youNolive,matter designing a
garden to use minimal water makes sense. Many plants such as succulents thrive in desert environments.
“
This backyard oasis contains many xeriscaping elements. The use of wide stone floored spaces and rocks as decorative elements, adds dramatic flourishes without plants that drink a lot of water.
Zen-like charm creates an overall feel of simplicity and serenity in this drought tolerant landscape. Bamboo is a tough plant that thrives in most any condition. Rocks add a great protective layer, allowing moisture to penetrate the soil but decreasing the amount of evaporation.
A clean, modern look exemplifies this border. Drought resistant plants like these use less water than other plants, and the thick mulch at their base prevents water evaporation and loss. Dramatic lights along the concrete path highlight the plants and create stunning shadows at night.
Visit us: Gaborone Dam site Machell Drive www.sanitas.co.bw Call us: +267 393 1358
by Phenyo Motlhagodi The challenge for Africa in addressing the sustainability shortcomings in consumer products is that countries other than South Africa (and I’m thinking Botswana here) do not manufacture themselves. They therefore lack the ability to change lifestyles in a suitable manner to their regions or live up to the expectations of their consumer tastes. With the manufacture of top quality products from Zimbabwe having come to a halt, we depend almost entirely on South Africa and its standards; so great is the country’s influence that its consumer needs are imposed on the rest of the region. What the brands in SA prescribe forms the perceptions of what brands are capable of providing and seemingly what we the general consumer deserves, and there lies the challenge. Brands in the past have easily formed perceptions about what we deserve. This however is slowly changing in manufacturing countries (and that leaves us, Botswana, out) where consumers with the advent of social media are more literate and can directly engage with brands. As consumers in a country like Botswana, what it seems we can almost control and dictate is service (and even that’s a hard act) but the products are out of reach, especially imported (SABS approved) quality products.
Back to my challenge: sustainability, and in this case, sustainable brands (products) are essential not only as a question of logic backed by the argument for sustainability, but also for the bottom line; the cost saving in the future and sometimes immediately. There’s lots of debate about the role of brands in helping people to live more sustainable lives. Bold sustainability ambitions are pushing the boundaries of sustainable business and innovation. The issue is really around how companies can use their brand power to shift us onto a more sustainable path and create brand value as they do it? The bigger issue for us (Botswana) is how can we even have a say in this process when the brands (manufacturers) almost seem not to consider our opinion when we are so far removed from the process (think South African retailers and how they treat us as compared to the consumers in their home territory)? This has gotten me thinking and exploring opportunities for collaboration between manufacturing and consuming countries or markets. Africa, for most of who will read this publication, is not one big country, but one could borrow for Africa from one big country like America that has its separate states functioning almost like different countries (for instance an architect practising in one state of
America would not necessarily be able to do so in another state as a result of different laws which to some extent are informed by market/consumer expectations). America, in creating a connection between brands, sustainability and the end user, has set up an interesting non-profit organisation, Forum For The Future. According to their website and other reference points, it was formed to bring together a group of leading brands to explore the challenge of achieving sustainability. Since 2012 they have run a series of roundtables and workshops for sustainability and marketing practitioners. The Sustainability and Brands Roundtable is a forum for over 20 brands to swap experiences, know-how and propose solutions in a confidential, noncompetitive space. Household names like B&Q, Innocent, John Lewis and Burberry have explored how to engage their marketing team on sustainability, created compelling campaigns designed to resonate with mainstream consumers, and delved into case studies showing how brands are activating sustainability now. Think of this in an Africa sense; dominant brands from South Africa, Zimbabwe, Kenya and Nigeria actively sitting together with advertising men and
women from all of Africa (particularly the big consumers such as Botswana), merchants, and consumer behaviour analysts, all looking at addressing sustainability in the way we build. Forum For The Future designs sessions to support brand marketers and their sustainability colleagues to progress on their individual challenges. They then harness the power of the brands around the table to give them new insights and strategies to take forward in their organisations. The companies that take part are clear on the opportunity that sustainability offers brands and consumers. Through diagnosing and then working on their individual challenges, the roundtable members have forged much closer working relationships between sustainability and marketing teams and, as a result, opened up conversations in their organisations that would have previously been off limits. They have discovered how to use their brand personality to really connect with people on issues that can seem technical or abstract if not communicated right, which without argument we will agree is a reality with building materials. On this forum, brands have been inspired through case studies and expert speakers that have given them the confidence and the tools to start activating sustainability through their own brand. And they have forged a strong network of leading brands that have led the consumer on sustainability in 2014.
Forum for the Future is an established leader in thought and actions. They operate at the cutting-edge of sustainable development, working with key decision makers on sustainability strategies and multi-stakeholder projects to transform entire systems. They’ve changed hearts and minds through their work and have been instrumental in shifting the way leading companies and commercial sectors operate. In the public arena they have assisted governments, cities and public service providers in developing and delivering services which offer a better way of life to the people they serve. The retail sector has a huge influence on the behaviour of both suppliers and customers; and it has shown real leadership over recent years with Forum for the Future playing a key role in many progressive initiatives. Public sector organisations spend vast amounts of money every year and with that spending come the ability to deliver sustainable outcomes through purchasing more sustainable products and services. Forum For The Future has worked with many public sector organisations to provide training, advice on policies and develop practical tools to help them put sustainable public procurement into practice. It’s not just in the USA. In the UK, the Forum-led Community Energy Coalition is creating a powerful collaboration of more than 30 influential civil society organisations and energy practitioners to motivate and empower communities into owning, generating and saving energy together. Similarly, Tomorrow Makers (previously known as ‘Engineers of the 21st Century’) was established with the support of government and the participation of 14 leading companies to work with younger engineers and their employers to raise awareness of the key role they could play in tackling sustainability problems. There is some food for thought for the region, but it has to start with informed consumers and professionals who work with these products, country by country to look at forming synergies with others in the region and delivering on sustainability. That is how organisations like Forum For The Future have been set up, and that seems to be one solution to sustainability for a huge continent like Africa.
Phenyo Motlhagodi is a seasoned Radio Personality and a St Louis Top 40 under 40 finalist Facebook: Phenyo Motlhagodi Twitter: PhenyoOnRadio
BOIDUS FOCUS September 2014
Guest Columnist Page 7
How Francistown City Can Exploit PPPs for Infrastructure Development by Othata Batsetswe / Financial Inclusion Specialist & Project Coordinator / Principal Finance Administrator
The Francistown Investment Forum has made it clear that the people responsible for Francistown’s development have a vision that seeks to position the city as an investment hub, a gate way to the north of Botswana and even to the north of the Southern African region. Much like any other city, Francistown has had its challenges and in my opinion the biggest has been population. That’s the first thing you get to appreciate as soon as you hit the mall business area;there are very few parking spaces, too many people, hooters everywhere and people scurrying all over the place. Though the above can be considered as a constraint, the business eye sees purchasing power, opportunity and prospects for growth. Francistown has the potential to grow beyond what we see today if the right partnerships are struck for its infrastructure development.
debt and deficit in the long term given the target level of indebtedness and projections for tax revenues and expenditure.
up-front financing for the infrastructure, and has then received payment from the public sector for providing it with a stream of services.
In a bid to overcome these difficulties, governments are seeking private investment in infrastructure from ‘novel’ sources (including sovereign wealth funds, pension funds, and other investors) and governance models. The most recent within the African region takes the form of Public Private Partnerships, which have involved long-term contracting between the public and private sector. Under these contracts, the private sector party has been required to provide the
Public Private Partnerships aim to provide a means by which synergy between the two sectors may be achieved in reality. Despite popularity around the world, a unanimous definition of PPPs is yet to be agreed upon. Indeed, there have been almost as many attempts to define PPPs as there have been PPP projects, and there are widespread differences in what the term is taken to encapsulate. The OECD has provided a definition that distinguishes PPPs from more tradi-
The city has not always enjoyed the blessing of land, in contrast to the other emerging urban centres. However, the Francistown Investment Unit Project Coordinator Mr. Sylvester Toteng believes that the contentious issue of land is simply a misconception as the city has plenty of available land for development, contrary to popular belief. It is therefore paramount that this land be availed to kickoff the required infrastructure development for Francistown. Infrastructure investments are generally associated with significant economic benefits which can be increases in short-term output or long-term growth. The vast majority of estimated relationships with GDP are found to be positive and to show a return to infrastructure investment over
and above that of investment in the capital stock more generally. This is not surprising given that firm activities are almost always built on underlying infrastructure such as water, electricity, gas and transport; Francistown City happens to be blessed with all the above. Shashe dam has always ensured a safe and consistent water supply and if Shashe fails, Ntimbale and Letsibogo dams are not far off so electricity concerns are now a thing of the past. Most of the internal roads have recently been refurbished and the railroad passes through the city. With that rosy picture drawn, Francistown still requires a lot of infrastructure to address some of the social service requirements like sewage reticulation, modernisation of the buildings, clean and safe spaces for recreation, parking lots and other aspects. There is also the requirement arising from the need to maintain, upgrade and replace existing infrastructure related assets. The wider economic benefits of infrastructure can be realised only if projects are approved and receive sufficient financing. This requires that the government is able to issue debt. However, the following constraints on the provision of capital by the public sector might suggest that this is not possible. Investor demand—the cost of credit and ability of government to place certain amounts of debt in the market, given investors’ demand for government debt; Cost of debt, the cost of credit, default risk and the credit rating of the government debt; and Supranational limits— for example, limits on debt and deficit introduced by the SADC under the Finance & Investment Protocol for ease of monitoring and controlling macroeconomic related challenges like long term fiscal policy requirement for sustainable levels of
Consistent benefits pave way for a stable life Understanding that you want to live comfortably today and still have a bright future is how we help you prosper. Lock your investment away with a good interest rate for long-term and also receive a monthly interest payment to supplement your monthly expenses. From the bank that’s here to help you prosper. For more information visit our website barclays.co.bw or call 315 9575 or SMS “Fixed Deposit” to 13555 and we will call you back.
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tional procurement methods on the basis of the amount of risk transferred to the private sector. One can define a Public Private Partnership as an agreement between the government and one or more private partners ... according to which the private partners deliver the service in such a manner that the service delivery objectives of the government are aligned with the profit objectives of the private partners and where the effectiveness of the alignment depends on a sufficient transfer of risk to the private partners. The major difference between PPPs and traditional public procurement models is that the public sector does not purchase an asset in a PPP; rather it purchases a stream of services under specified terms and conditions. In other words, the private sector finances and builds the infrastructure, and it retains ownership of the asset at least until the end of the contract. Most contracts are structured to a period of up to thirty years. Different models fit within the broad PPP concept CONTINUED PAGE 20
Guest Columnist Page 8
BOIDUS FOCUS September 2014
Lifestylenoted: Man Cave Design Therapy by Tshepiso Motlogelwa, Interior Designer
Men have a terrible reputation when it comes to décor. It is assumed that they are either indifferent, sluggish or simply tasteless. Guys generally buy things that they actually intend to use - an otherwise good habit, except when it comes to furnishing your home. Sure, you need somewhere to sit, and a place to set your coffee mug, but your home will look incomplete without a few completely functionless, decorative objects. Incorporating small, sculptural items like wooden tribal figurines, perhaps a globe, and even an animal skull will go a long way in transforming your man cave into a home.
An accent chair in the room provides a gentlemen’s feel without being too cheesy.
A roughed look for the industrial guy.
A man’s home should feel collected not decorated. If you want to avoid making your home look somewhat too feminine and overly decorated, combine items from different times and places, like an antique chesterfield sofa alongside a modern accent chair. For the urban man, style is no longer simply pairing your tie with your blazer. Its the food you cook, the drinks you drink, the books you read, and well, the kind of space you live in.
We manufacture, supply, and fit to meet your demands on all types of Joinery and Aluminium products.
Mismatching is perfectly fine. For a man’s home, it is actually encouraged.
Hand crafted wooden doors and panels
Our high tech computerized machines enables us to manufacture locally [moulding machine, cutting machine, wrap oven, drilling machine]
Specialists in:
Adding pops of colour in the form of artwork & accessories will give the room some character.
• prefabricated housing, office, classroom & tuck shop • dry-wall partition • aluminium products • wooden products • hardware store • shop-fittings • garage doors
Fireplaces, Kitchen cabinetry, Wardrobes
Counters, Aluminium (I.H.S. Molepolole)
Wall art in a room provides an additional focal point.
Prefab cabins built on site
APPRECIATIONS FROM TWINCO ENTERPRISES
A gray focal wall provides a masculine touch.
BHC, Lobatse Geography Bureau, Lobatse Mental Hospital, Lobatse Sports Stadium, SSKIA, F/town Airport, University of Botswana, I.H.S. Molepolole, Mogoditshane BDF, Glenn Valley BDF, Rakhuna BDF Camp, Gumare Primary School, Lobatse/Kanye City Council, Ministry of Trade, Kasane Muwana Lodge & many other clients.
MAIN BRANCH (Gaborone)
Tel: 3933154/164 Fax: 3933167 Cell: 71598499, 75665656 Plot 20596 Block 3 (next to Sefalana)
www.masterjoinerybw.com
BOIDUS FOCUS September 2014
Advertising Page 9
Home Improvement Page 10
BOIDUS FOCUS September 2014
DIY Projects - Bathroom How-To Projects HOW TO REFINISH A BATHTUB
In just a few hours, you can change the look of your bathtub by refinishing it. [Source: diynetwork.com]
Step 1: Prepare the Tub
Remove any anti-slip strips with a cleaner and degreaser. Wash the tub with an abrasive cleanser. Scrub the tub with an abrasive pad and LimeA-Way.
its self-leveling properties will eliminate the bubbles. • Brush in one direction only. • Brush on a couple of smooth, thin coats. • Feather the edges as you paint to avoid a hard line between painted areas. • Apply two light coats one hour apart.
Step 2: Sand the Tub
Sand the tub with 400-600 grit wet sandpaper. There are a couple of reasons for this: • First, when you sand the surface you’ll be removing any grime or gloss that’s left over from the cleaning. • Second, when you rough up the surface, it will give you good adhesion for the coating. Tip: When you’re sanding, it’s best to use wet sandpaper so the grit can be rinsed away while you’re working.
Step 3: Apply the Paint
Mix the epoxy and paint it on with a brush and roller. Note: Small bubbles will appear on the surface as you paint, but as it dries
Step 4: Caulk the Corners
Sponsoredby by Sponsored
HOW TO REPLACE A BATHROOM FAUCET
You can save a great deal of money and spiff up your bathroom’s appearance by installing a new faucet yourself. [Source: diynetwork.com] the lock nut holding the drain to the sink. Unscrew the drain and the drain flange.
Step 3: Secure the Faucet to the Sink
Step 1: Remove the Existing Fixture
Turn off the water supply at the valves under the sink or at the main watersupply valve. Loosen the supply tubes at the hot and cold valves. Use the basin wrench to loosen and remove the compression nut at the faucet stem. Remove the nut holding the faucet to the sink, and remove the faucet.
Caulk around the tub, corners of the tile walls and around the corner shelves. Tip: You can use denatured alcohol for cleanup when caulking.
Place Teflon paste or tape on the faucet stems. If your faucet has a rubber gasket, install it on the base of the faucet before inserting the faucet stems in the appropriate holes in the sink. If your faucet doesn’t include a gasket, run a line of caulk under the faucet before installing it.
Secure the nuts holding the faucet to the sink. Tighten the nuts by hand then give them another quarter-turn with the basin wrench. Connect the supply tubes to the faucet stems. Apply Teflon paste to the shutoff valve threads, and tighten the coupling nuts to the faucet-supply stems. Do not over tighten.
Step 4: Attach the Drain Housing to the Flange
Step 2: Remove the Existing Pop-Up Drain
Remove the nut above the P-trap, and loosen the nut attached to the Ptrap. Remove the P-trap. Remove the pop-up lever from the drain. Loosen
Apply caulk to the underside of the drain flange, and press it into the drain hole. Place the lock nut on the drain housing, then place the metal washer and the gasket on the housing. Screw the drain housing tightly to the flange. If the flange begins to rotate, hold it steady by inserting the plastic handle of your pliers
Step 5: Place the Pop-Up Drain
Drop the pop-up drain into place, keeping the hole for the control pin toward the rear of the sink. Place the bail lever in the side hole of the drain assembly so the control pin fits through the appropriate hole in the pop-up drain. Set the drain rod into the hole in the faucet, and attach the connecting link to the faucet rod by tightening the attached screw. Make sure the pop-up is up and the drain rod is down, then attach the bail lever to the connection link, using the V-clip. The pop-up should go down when the lever is pulled up.
Step 6: Clean the Supply Tubes and Check for Leaks
Attach the new drain extension to the P-trap. Clean the supply tubes by removing the aerator from the faucet and turning on the water. While the water is running, check for leaks. Shut the water off after you’re certain there are no leaks and replace the aerator.
1st ANNUAL AIRPORT JUNCTION BUILDER`S EXPO Botswana`s biggest convergence at building supplies & services
18-21 september 2014
boidus expo special
WHY YOU SHOULD ATTEND BUILDERS EXPO 2014
On the 18th to the 21st of September 2014 Botswana’s biggest convergence of building supplies and services will take place at the 1st Annual Airport Junction Builder’s Expo & PPC Construction Summit. 120 exhibitors representing all the various profiles within the local construction industry are expected to be present at this first of its kind event which will mainly consist of private entities and include minor representation from government departments and parastatals. Event organiser Mr. Christian Maisva says the idea to host this event was born out of the desire to provide a platform that could offer a comprehensive profile of Botswana`s construction industry to local consumers while simultaneously offering industry players an opportunity to meet, network and exchange ideas for the benefit of the industry as a whole. The event’s main objective is to allow exhibitors to influence domestic consumer trends within Botswana’s construction industry by raising awareness about locally available products and services.
»» FOR THE EXHIBITOR:
The Airport Junction Builder`s Expo is designed to improve brand exposure for all industry brands represented by allowing all exhibitors to have a more interactive engagement with their costumers.
mhlh
»» FOR THE CONSUMER:
This Builder`s Expo provides an opportunity to experience, appreciate, compare and buy into the products and services offered at the show.
Airport Junction would like to invite to all Batswana to come and join us at the 1st Annual Airport Junction Builder`s Expo & PPC Construction Summit. Entrance is only P10 on the public days and those who would like to attend the VIP Business days can call +267 74242809. Tickets are available from Airport Junction Centre management or from any PPC-Cement retailers in Botswana where if you buy 10 bags of PPC Cement you get a free a ticket which will not only allow you entry into the Expo but also give you a chance to win fantastic prizes from PPC.
tic P 10kets only.00
Airport-Junction-Builders-Expo www.airportjunctionevents.com
Bookings Call: [+267] 74 242 809
SUMMIT
The vast majority of the exhibitors will be local entities with roughly 10% being manufacturers and suppliers from South Africa, most of which are companies that have local distributors or have products they are looking to launch into the Botswana market.
Botswana's Biggest Convergence of Building Supplies and Services
The event is powered by PPC-Cement which is the platinum sponsor and as such will also be hosting the PPC Construction Summit on the 19th of September 2014. This exclusive conference will bring together key stakeholders in an effort to address some of the major concerns of the domestic construction industry and positively influence its development.
18-19 September 2014
There will be two business days, the 18th and the 19th of September 2014, and two public days, the 20th and 21st of September 2014. On the first two days the activities will mainly be focused on VIP business networking and the PPC Construction Summit. On the public days there will be product launches, raffles, discount shopping on building materials and services, entertainment and good clean family fun. The official opening will be conducted by The Honourable Minister of Infrastructure, Science and Technology Johnie K. Swartz.
Business Days:
Public Days:
20-21 September 2014
Powered by:
mhlh
1st ANNUAL AIRPORT JUNCTION BUILDER`S EXPO Botswana`s biggest convergence at building supplies & services
18-21 september 2014
exhibitor`s profiles
CATERING AND REFRIGERATION
FOR ALL YOUR NEEDS IN:
Exclusive Upmarket Kitchens: Wooden & Painted Kitchen doors, Wardrobes, Walk-in Closets, & Counter Tops, Specialised Granite Counters, Processed and Manufactured In-House Suspended Ceilings & Specialised Partitioning.
shaila@lumbercitywoodguys.com PALAPYE BRANCH TEL: (+267) 4922336
news flash
Minimum Thickness Needed Blown in Thickness
Settled Thickness
R-Value
Reduced Summer Heat Flow %
Reduced Winter Heat Flow %
50mm
50mm
1.31
76%
61%
75mm
75mm
1.97
81%
86%
100mm
100mm
2.63
87%
89%
125mm
125mm
3.29
91%
93%
BOIDUS FEATURES
visit our stand between 18-21 September at the
SPRING CLEARANCE
GABORONE
If you have an event coming up, let us build a feature for you or help you manage it. Drop me a line and lets meet and talk.
600x600 Ceramic & Porcelain Tiles from
P144-99m2
500x500 Ceramic Tiles from
P77-99m2
Ceramic tile adhesive
michelle@boidus.co.bw 3182209/75628493 www.boidus.co.bw
VAAL Hibiscus top flush including mechanism & seat
P999-99
P33-99
Various 400x400 Ceramic Tiles from
P67-99m2
Various 330x330 Ceramic Tiles from
P57-99m2
Porcelain tile adhesive
P69-99 Also available: Full range Adhesives & Grout Tools & trims THE PROFESSIONAL CHOICE
Gaborone West Industrial, New Lobatse Road, Gaborone (old CA Sales building) | T: +267 318 5316/21 - E: gaborone@tileafrica.co.za while stocks last - E&OE
1st ANNUAL AIRPORT JUNCTION BUILDER`S EXPO Botswana`s biggest convergence at building supplies & services
mhlh 18-21 september 2014
exhibitor`s profiles
For all your Home Improvement and Building Material needs
INNOVATIVE INVESTMENT INSPIRING AFRICA
A new and exciting way of funding your real-estate development. If you want to take advantage of being a real-estate investor, this is the place to be. Erik Van Eeten CO-FOUNDER & CFO
tel: +31-646201063 tel: +27-110835861
skype: erick.van.eeten www.realtyafrica.com
email: erick.van.eeten@realtyafrica.com www.realtyafrica.com youtu.be/aF8zFLRf64U
Get to Builders Warehouse. Get it done! BUILDERS WAREHOUSE BOTSWANA: GABORONE: Airport Junction Shopping Centre, Plot No. 70665, A1 Road, Tel: 393 0533 FRANCISTOWN: Plot Number 31247, Mowana Park, Somerset West Industrial, Along A1 Road, Tel: 242 5200 MONDAY TO FRIDAY: 7AM - 6PM; SATURDAY: 7AM - 4PM; SUNDAY AND PUBLIC HOLIDAYS: 8AM - 2PM
CERTIFICATES IN CONSTRUCTION MANAGEMENT We offer six accredited modules (course content):
Protea Survey Instruments is a supplier of Surveying and Construction Material Testing Equipment including Soil, Asphalt and concrete testing equipment. We are SANAS accredited in Force which includes calibration of concrete testing machines.
We supply Sokkia GPS, Totalstations, Auto levels, Concrete testing machines (Cube Press) cube moulds, slump cones, Schimidt test hammers and Humboldt Nuclear Density Gauges.
SATIB
AFRICA B O T S W A N A Co. Reg No. CO. 2005/5899
Insurance Solutions for Africa
SÉAMUS O’NEILL
PROJECT MANAGEMENT (PLANNING) ENTREPRENEURIAL SKILLS CONSTRUCTION CONTRACTS CONTRACTS MANAGEMENT SITE MANAGEMENT – MAINTENANCE MANAGEMENT TENDERING & ESTIMATING
Each module is delivered in three certificates’ levels: foundation, intermediate and advanced.
ALUMINIUM & GLASS CENTER
Managing Director
Cell: +267 72100514 Tel : +267-3170574 Fax: +267-3170576 e-mail: seamus@satib.co.bw
P.O. Box AB 129 ABC, Postnet Phakalane, Gaborone, Botswana
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BOIDUS FOCUS September 2014
Advertising Page 15
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Boidus Feature Page 2
Boidus Feature Page 16
China or Local - Where to buy your building materials by Keeletsang Dipheko & Kibo Ngowi
CONTINUED FROM THE FRONT PAGE
BOIDUS FOCUS September 2014
Advertorial Advertorial
APACHE APACHE ROOF TILES ROOF TILES
The premier premier supplier supplier and and local local The manufacturer of concrete roof tiles in Botswana
INTERVIEW WITH HASKINS Operating in Botswana since 1897, Haskins is one of the oldest and most recognisable building material suppliers in the country, with four branches spread across the country in Gaborone, Francistown, Palapye and Kasane. Boidus Focus spoke to Chief Manager Mr. Andrew Field to learn from his experience on the do’s and don’ts of buying Chinese building materials. How do you source your materials? Over time we have established strong relationships with strong international brands relative to our industry (Honda, Cobra, Dulux, Gedore, Geberit and Bosch to name a few). Quality is the main criteria in our purchasing strategy for new or alternative products. Once our technical manager, who is a qualified engineer, is satisfied with a product, we then negotiate a competitive price. Why don’t you source any materials from China? We do source certain materials from China, but we are very particular about who we deal with. There are many manufacturers in China producing quality goods but the challenge is finding them. We have invested an enormous amount of time and money into understanding the Chinese manufacturing environment and we have developed a network of reliable and knowledgeable people in China to assist us. New suppliers are carefully vetted, new products are extensively tested and each shipment is checked before despatch. An increasing number of Batswana are going over to China to buy building materials and fittings. Why do you think this is happening? The lure of cheap materials is tempting when individuals are trying to make best use of their budget. The perception is that you
can source quality materials at a fraction of the cost. What would you advise consumers to take into consideration when choosing between buying local or sourcing in China? Be careful. There is a saying: “you only get what you pay for…..” If there is a saving of more than 20% on what appears to be an equivalent product then it is probably inferior quality. Having been to China, we have experienced dealing with middlemen and the owners of factories. The danger of dealing with middlemen is that they are able to purchase the same product from different factories so the sample quality may differ greatly from the delivered quality. Lack of backup can also create maintenance problems and expenses. The initial cost is low, but you pay significantly more in the medium to long term. Consider plumbing fittings and taps for example. The taps may look no different from Cobra, but the quality of the brass and internal components could be inferior, and with the hard water in Botswana, will start corroding within 2 years. There is unlikely to be after sales support from the Chinese supplier and you will end up having to replace the taps at a far greater cost than the initial saving. Do you think that Batswana sourcing their materials in China will negatively impact Haskins? No, we do not. It is easy to source materials in China but it is difficult to get it right. Our business and our strategy are to source quality goods and our long history in Botswana is testament to that. We have experience in testing materials, assessing suppliers and knowledge of the local market. Some consumers will always source for themselves but most will rely on Haskins to provide quality goods with after sales backup.
INTERVIEW WITH BOTSWANA BUREAU OF STANDARDS (BOBS) The Botswana Bureau of Standards (BOBS) is the official body responsible for all issues related to standardisation and quality assurance at the national level. Boidus Focus contacted the organisation to find out more about their role in ensuring the quality of building materials sold within the country. Do building material suppliers have to undergo any quality inspections for their products? Suppliers of building materials do not undergo quality inspections unless the products they supply are covered by mandatory standards and/or are covered under the Standards Certification Scheme. Most of the standards for building materials are voluntary, which means they are not enforced by BOBS. However, government regulators such as the Building Regulations Board can enforce building standards through the national building regulations. Outside mandatory standards and the certification scheme, the role of BOBS is to make relevant standards available for the building industry professionals to use to verify quality of materials used in projects.
Are building materials coming from outside the country inspected for quality? Not all building materials imported are inspected for quality. It is only those listed in the Standards (Import Inspection) Regulations (SIIR) that are inspected for quality and compliance with the specified mandatory standards by Botswana Bureau of Standards. What actions can consumers within the country take if they discover they have been sold defective materials? Consumers can report such issues to the Department of Trade and Consumer Affairs. Does this apply to both materials bought within and outside the country? Department of Trade and Consumer Affairs would be in a better position to respond. What would you advise consumers to consider in ensuring that the building materials they purchase are of a satisfactory level of quality? Consumers should insist on materials that have been certified by Certification bodies such as BOBS, SABS, and others.
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TILES TILES DoubleRoman Roman Double
Tuscan Tuscan
Shingle Shingle
FITTINGS&&SUNDRIES SUNDRIES FITTINGS RakeVerge Verge Hip V-Ridge GableRoll RollRake V-Ridge Gable HipStater Stater/V-Hip /V-HipStater Stater
COLOURRANGE RANGE COLOUR Terracotta Red Red Terracotta
Charcoal Charcoal
Brown Brown
Tan Tan
ROOFINGISISNO NOLONGER LONGERAANIGHTMARE, NIGHTMARE, ROOFING FORWHICH WHICHONE ONEHAS HASTO TOTHINK THINKBEYOND BEYONDBORDERS. BORDERS. FOR email: email: apache@bbi.com apache@bbi.com website: website: www.apacherooftiles.com www.apacherooftiles.com Daniel Jansen VanVan Rensburg Daniel Jansen Rensburg Managing Director Managing Director +267 74474291 +267 74474291 +267 3902306 +267 3902306 +267 3902354 (FAX) +267 3902354 (FAX)
Plot Plot1126 1126Nkoyaphiri NkoyaphiriMogoditshane Mogoditshane Gaborone GaboroneBotswana Botswana POBox BoxAD AD PO 671ADD ADD 671 Gaborone, Botswana Gaborone Botswana
BOIDUS FOCUS September 2014
Boidus Feature Page 17
Can Botswana Grow its Glass Production Industry? by Kibo Ngowi
CONTINUED FROM THE FRONT PAGE
INTERVIEW WITH GLASS EXPERT ANNEMARIE FEATHERSTONE specifications to be passed by legislation in order to assist the building industry. Most recently, a regulation on energy efficiency was passed in South Africa and in Featherstone’s words, “it actually puts the onus onto the architect to be the person to do a sign-off on any commercial or residential dwelling. In other words they are the responsible person that whatever is specified has to go into that building.”
Annemarie Featherstone is a glass and aluminium expert with 32 years worth of industry experience behind her. “Glass is my passion,” she says. “It’s what I do best and I always enjoy designing and being creative on that aspect of any building.” She’s employed by PG Group as part of the GSA (Glass South Africa) Project Team and in her role as a project manager she assists professionals and consumers with the correct glass specifications “fit for purpose” for each project. GSA is a corporate member of the Association of Architectural Aluminium Manufacturers of South Africa (AAAMSA), a non-profit organisation which acts as the ‘watch dog’ of the South African building industry. Featherstone is currently the Chairperson of AAAMSA and part of the organisation’s mandate is to assist the South African Bureau of Standards (SABS) to write
The regulation is SANS 10400 PART XA and the working document is SANS 204 (SANS stands for South African National Standards). The architect works from the SANS guidelines when drawing plans, making sure that the plans comply before they are submitted at Council. Once they are approved the architect hands them over to the contractor but the architect is still responsible to sign off that whatever is built is in accordance with the plans originally proposed at the Council. The legislation deals specifically with how the glass used affects the energy efficiency of a building.
She advises consumers to consult with the architect and the mechanical engineer responsible for their building to give them the correct criteria of what is required for the energy efficiency of that particular building. Featherstone adds that glass is just one of many energy efficiency factors that need to be considered: “It doesn’t help to just do the glass and the aluminium compliance; all your other things need to comply as well. So it is not only a standalone; it is actually a combination of the whole building sector to get the proper solution for the building.” Delta glass is part of Featherstone’s employer the PG group and as a project manager she was tasked with looking after the Botswana area so she recently visited the country to conduct some training on glass, energy efficiency and technical issues. Based on her general observations Featherstone says that the state of glass and buildings in the country is a mixed bag: “My observation
“Glass has a huge effect on a building’s energy efficiency,” says Featherstone. “In the long run it can actually save you quite a bit of money, especially if you have the right configurations in double glazing. You can reduce your energy bill by at least two thirds of your monthly consumption if you use it in the way that it’s designed to be used.”
in Botswana is that there are some really good materials out here and there are also some really bad materials. I have for instance seen a building in town where the glass is glazed the wrong side around and that is not going to be energy sufficient for the building at all because the product is used incorrectly. Part of my portfolio is not only to specify the right product but also to educate the installer as to how to use the product.” She does believe that it would go a long way for the Botswana Bureau of standards (BOBS) to adopt similar legislation to that of SABS, adding that the challenge for any country is for the legislation to keep up with the constantly evolving technology and that both South Africa and Botswana could improve in this regard. Featherstone intends to arrange a conference for architects and quantity surveyors in Botswana during which she will do a presentation on issues such as product knowledge and energy efficiency. “Our focus is to enrich people and to enrich the architect on what is the latest technology out there, and there are so many wonderful products to use as long as you use them in the right configurations,” says Featherstone. “So that is my focus for next year. It’s to come and do a conference for the architects, quantity surveyors, installers and anybody else that’s interested.”
www.cnonline.co.bw
LETS TALK ROOFING……
Timber trusses: Past, present & the future. Timber is probably the most versatile material known to man. Its many useful properties make it suitable for use in the manufacture of many industrial and household products as well as for structural applications.
Reliance Office Supplies We are Botswana’s leading corporate furniture supplier and have been in operation since 1989. We hold the exclusive Botswana franchise for CN Business Furniture, the prestigious South African company with 9 branches in South Africa.
and operator desking and seating; reception furniture; soft seating; boardroom furniture; screens and partitions; training and educational furniture; restaurant, cafe and canteen furniture and storage and filing systems.
Having worked for years with interior designers, corporate layout specialists and on large corporate projects, we have now rebranded and redesigned our own space here in Gaborone. Whilst in the past we relied on catalogues and design software to display our furniture to customers, we now have a dedicated showroom to display our ranges in all their full-size glory.
Our furniture is of the highest quality, with most products holding a 5 year warranty. We showcase ranges for all budgets including pieces designed and imported from Italy. We provide delivery and installation, so that you can order in the knowledge that your furniture will be set-up in your office to your exacting specifications.
Please allow us the opportunity to welcome you into our working haven and to introduce you to our ranges of: executive
We understand that you spend an average of 264 days at work each year. Let us help you spend those days surrounded by the beautiful office furniture you deserve.
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Timber is a renewable resource- it is grown in forests which, if managed properly, the trees can be harvested and replanted or re-grown. It is also a durable product –timber joinery can last for an average of 35 years. It is easy to reuse, recycle or breakdown into compost after use. It is also highly efficient in use and is an excellent insulator. And last but certainly not least, timber adds a timeless, rich and beautiful organic aesthetic finish to any building it graces. By strategically harvesting individual trees, managed forests remain a natural eco-system capable of sequestrating massive amounts of carbon, whilst maintaining the valuable biodiversity balance of our planet. Trusses can be described as a number of timber members joined together in a triangular pattern to form a sturdy frame to carry the roof covering and all others loads on the roof. Fabricators are responsible for timber quality control, design knowledge, manufacturing quality procedures, site documentation and inspection of the installed trusses to check adherence to drawings and erection details.
It is therefore crucial to ensure that for every building to be roofed with trusses properly to acceptable safe standards, a roof truss design is acquired for the building.
Boidus Feature Page 18
Boidus Feature September 2014
The Drive to Position Francistown as a Centre of Investment by Kibo Ngowi
CONTINUED FROM THE FRONT PAGE
Key decision makers from the private and public sectors descended upon Francistown between the 19th and 21st of August for the Francistown Investment Forum, a conference aimed at facilitating discussions to position the city as the lead economic hub in Southern Africa by 2022. These were some of the key presentations delivered at the conference:
Welcome Address – His Worship the Mayor of the City of Francistown Hon. James Kgalajwe.
FIF14 Marketing Director Mr. Gadzanani Makopola
Official Opening – His Honour the Vice President of the Republic of Botswana Dr. Ponatshego H.K Kedikilwe.
Rep-Ministry of Trade and Industry Mr. Mphethe
Botswana Investment and Trade Centre (BITC) CEO Mr. Letsebe Sejoe
Mr. Boyce Sebetela
Botswana Housing Corporation CEO Mr. Reginald Motswaiso
P.O. Box 1047, Mogoditshane Gaborone Tel: (267) 397 4907
Plot 23 & 24 Mogoditshane Industrial Fax: (267) 390 1748
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BOIDUS FOCUS September 2014
Advertising Page 19
Professional Practice Page 20
BOIDUS FOCUS September 2014
JBCC Principal Agents and Agents
At the outset (sub-clause 5.1), the employer warrants that the principal agent, as stated in the contract data, has full
by Euan Massey and Natalie Reyneke In this edition of Boidus Focus, we will be looking at the sixth edition amendments to the appointment and authority of principal agents and agents, as well as the effects for both the employer and the contractor in the case of the principal agent or the agent not performing in terms of the contract. The definition of “principal agent” has not changed much from the fifth edition of the JBCC (edition 5.0 July 2007) to the sixth edition (edition 6.1 March 2014). The definition of “agent” in the fifth edition is: “A party named in the contract data and/or appointed by the employer to deal with specific aspects of the works.” The sixth edition defines an “agent” as: “An entity appointed by the employer to deal with specific aspects of the works.”
In the fifth edition, clause 5.0 sets out the terms and conditions surrounding the employer’s agents. Clause 6.0 does so in the sixth edition. We have prepared a table setting out the comparison between the fifth edition and sixth edition processes for ease of reference. The motivation behind the changes made between the fifth and sixth editions, arose from an inherent discontent expressed by contractors, with regards to principal agents that fail to execute their duties in terms of the contract. This resulted in contractors not knowing where they stand when, for example, claims for extensions of time have been submitted and the principal agent fails to determine such claim. The fifth edition contained no express provisions which entitle a contractor to refer a matter to adjudication or arbitration when a principal agent failed to act in terms of the contract.
authority and the obligation to act in terms of the agreement. In comparison, sub-clause 6.1 of the sixth edition includes that the principal agents has authority “to bind” the employer. The reason for the addition of the words “to bind” the employer by the drafting committee was based on the fact that principal agents were often not aware of the effect that their actions had on the employer. By setting it out clearly in sub-clause 6.1, the committee hopes to drive the point home that the actions of the principal agent bind the employer. The addition, in clause 6.1, of the sentence “the principal agent has no authority to amend this agreement” has been included. This is simply to bring the sixth edition in line with other standard form contracts, which set out, for example, that the engineer has no authority to amend the agreement. Sub-clause 6.2 of the sixth edition empowers the employer to appoint agents, which agents are listed in the contract data. The fifth edition allows the employer to appoint further agents with the contractor being informed
Clause
5th Edition – process
Clause
6th Edition – process
5.1
Employer warrants that principal agent has full authority to act in terms of the agreement.
6.1
Employer warrants that principal agent has full authority to act and bind the employer in terms of the agreement.
Employer shall appoint agents as stated in the contract data and may appoint further agents with the contractor being informed thereof.
Employer may appoint agents to deal with specific aspects of the works. [CD]
Principal agent only party having authority to bind the employer, except where agents issue contract instruction under delegated authority [5.3.2].
Principal agent has full authority to act and bind the employer in terms of the agreement.
Principal agent only party empowered to [5.3]: • Issue contract instructions (except as provided for in [5.3.2]); • Delegate to other agents authority to issue contract instructions and perform such duties as may be required for specific aspects of the works, provided that the contractor is given notice of such delegation • Receive notices on behalf of employer
Principal agent to notify contractor where such authority to issue contract instructions and perform duties for specific aspects of the works is delegated to agents.
Should principal agent or any agent be unable to act or cease to be an agent, the employer shall inform the contractor of the new principal agent or agent to be appointed.
Where any agent fails to act in terms of the delegated authority, the contractor shall give notice to the principal agent to rectify such default… where such default has not been rectified the contractor may give notice to suspend the works.
thereof. This does not seem to be allowed under the sixth edition. However, after clarifying this point with a member of the drafting committee, it was not the intention of the drafting committee that all agents to be appointed under the contract are required to be listed in the contract data. In the sixth edition, the employer may appoint agents, as long as notice of such is given by the employer to the contractor. The principal agent is to specifically give notice to the contractor where authority to issue contract instructions and perform duties for specific aspects of the works is delegated to agents.
tor’s concerns regarding the principal agent’s failure to act in accordance with the contract, the drafting committee have included the words “fails to act” in numerous additional clauses of the sixth edition. Clause 6.5 is the first of such clauses. The most significant of the changes to the fifth edition, with regard to the principal agent’s failure to act, are the changes to the dispute resolution clause.
Clauses 5.3.1 – 5.3.3 of the fifth edition have been removed in the sixth edition. The reason behind this removal was, firstly, based on the efforts of the drafting committee to shorten the contract, and secondly, resulting from the fact that the duties of the principal agent form part of his professional appointment and such duties are already set out in various clauses of the contract. When the principal agent delegates any of these duties, he notifies the contract under clause 6.2.
In the fifth edition, contractors believed that a contractor could only refer a “disagreement” to the dispute resolution process. By the inclusion of the phrase “the action or inaction of the employer (or principal agent or agent)” into clause 30.1, contractors could immediately refer a failure by the principal agent to act (which may ultimately result in, for example, a claim for an extension of time being deemed refused) to the dispute resolution process. Ultimately, contractors would have preferred to change the words “deemed refused” to “deemed accepted” but the drafters felt that this would place too large of a burden on employers.
Clause 6.5 of the sixth edition intimates that where an agent fails to act or is unable to act, the employer is required to appoint another agent. On initial reading of clause 6.5, it appeared to the writer that the use of the word “agent” in the clause excluded principal agents from the clause’s operation. This does not however seem to be the intention of the drafting committee, and it was intended for the word “agent” to include reference to a “principal agent” as well. The writer is not convinced that this intention has been clearly set out, taking the definitions of “agent” and
Conclusion At the end of the day, contractors were frustrated with principal agents not acting in terms of the contract. They believed that they had no recourse, and were left hanging to figure it all out at the end of the contract. As a result, the drafting committee have used words which make contractors aware of the fact that they can act against the employer as a result of the principal agent’s inaction. Hopefully, the clarity provided to contractors in the sixth edition, will result in contractors confidently enforcing their contractual
“principal agent” into account.
To deal specifically with contrac-
rights, and employers ensuring that they appoint competent and punctual principal agents and agents.
Where any agent fails to act, is unable to act or ceases to be an agent, in terms of this agreement, the employer shall appoint another agent within 5 (five) working days of the date of such notice from the contractor. Sanction for failure by the employer to appoint a principal agent / agents [5.1-2.4] is termination [38.1.2].
Sanction for failure by the employer to appoint another principal agent / agents [6.5] is suspension and termination [28.1.5] and [29.14.6].
How F/town City Can Exploit PPPs for Infrastructure Development by Othata Batsetswe / Financial Inclusion Specialist & Project Coordinator / Principal Finance Administrator CONTINUED FROM PAGE 07
but, in line with the definition given above, the operation of the asset is always the responsibility of the private sector party. Each of these models allocates different levels of risk to the private sector party. Depending on the needs of Francistown City these three models can be considered: Build–Develop–Operate: The private sector party buys or leases an existing asset from a public agency, invests capital to enhance and develop the infrastructure, and then operates it according
to the terms of a contract with a public agency. Build–Own–Operate: The public agency awards a single contract which bundles the construction and operation of the infrastructure to a private entity. The public agency is responsible for specifying the design of the project, but ownership of the asset remains with the private agency once it is built. Build–Operate–Transfer: The private entity is responsible for the construction of the infrastructure according to the design specifications agreed to by the public agency and subsequently operates the infrastructure for a specified period
of time under a contract or franchise agreement with the agency. At the conclusion of the contract, ownership and operation of the infrastructure is transferred to the public agency. There is need for keenness on the part of the city managers to ensure that the greatest benefit is to the customers through efficiency gains from such partnerships while costs remain affordable. The signing of these deals should also conform to the rules and regulations governing infrastructure developments at a national level. At the end of the day, town councils may have to corporatize (Corporatisation is changing the structure of
a government or semi-government body so that it operates on business lines, with a mandate to trade profitably and an obligation to account to the government for its financial performance) to maximise the benefits from these noble ventures. Corporatisation will ensure that councils continue to enjoy the credit ratings assigned to the government which will make them even more creditworthy and attractive for joint partnerships. Corporatisation also provides a better model to privatisation. Corporatisation and privatisation provides the opportunity to do it right. The writer writes in his personal capacity
BOIDUS FOCUS September 2014
Editor’s Note / Guest Columnist Page 21
Editor’s Note: Something must be done to assure Quality in Building Materials Supplies
CONSUMER RIGHTS CONCERNING DEFECTIVE PRODUCTS by Reuben Lekorwe* by means of investigation, prohibition and control of unfair business practice; to disseminate consumer related information and to provide for matters connected with and incidental thereto.
by H. Killion Mokwete, RIBA Chartered Architect
Building materials are literally the building blocks of any construction project. Whether one is building a small oneroomed project or a grand development, a trip to the building material outlet will set you back at least a few thousand Pula. As Botswana turns 48, the history of our building materials remains divided between indigenous materials used predominantly in vernacular construction and modern building materials dominated by foreign imports from various countries across the world.
rial imports has spiked the waters. Seeds of suspicion regarding quality have been sown and building consumers with direct access to cheap materials from Chinese suppliers are beginning to ask questions as they discover that their buildings are deteriorating faster than expected; the biggest test that the Chinese material imports face is to prove their quality. The deterioration of the majority of public projects constructed by Chinese contractors is not helping the situation. The arrival of BOBS and the development of material quality standards is a welcome improvement, but the pace of setting out these standards is too slow. During the years that BOBS has been operational, a lot of unscrupulous suppliers looking to make a quick buck have cropped up and defrauded unsuspecting consumers. A quick way forward in arresting the situation needs to be put in place and this should involve the introduction of standards with effective monitoring tools. Over and above this, the local building material suppliers need to come together to protect the industry from the invasion of poor quality products. A building materials suppliers association with the interest of the industry and consumers at heart needs to be established.
These imports have served us well over the years, even before the Botswana Bureau of Standards (BOBS) came into existence, when there was a lack of local quality standards. A sort of unwritten law for selling and trading of quality imports existed across the old material dealers who set up depots, general dealers and cooperatives across the country. Botswana’s development landscape has therefore largely taken care of itself over the years without an organized building materials dealers association. However, the status quo has recently been shaken by the arrival of new material dealers on the scene.
BOIDUS TEAM
The arrival of Chinese building contractors and subsequently the Chinese mate-
MANAGING EDITOR
ART DIRECTOR
DISTRIBUTION
H. Killion Mokwete
Bridget T. MacKean
Martha Rooi
DEPUTY EDITOR
GRAPHICS ASSISTANT
GUEST COLUMNISTS
Kibo Ngowi
Taelo Maphorisa
STAFF WRITER
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Keeletsang P. Dipheko
Tara Michelle Theron Tebogo Sekwenyane Thabo Sarona
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Ngwewabo Mokwete
Euan Massey & Natalie Reyneke Othata Batsetswe Phenyo Motlhagodi Reuben Lekorwe Tshepiso Motlogelwa
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KILLION [GABORONE] t +267 75505291 e killion@boidus.co.bw WADA [FRANCISTOWN] t +267 71480679 e mail@boidus.co.bw Visit our website:
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According to E Khan, contract of purchase and sale is a mutual agreement that imposes reciprocal obligations on the parties – the buyer and the seller. The essence of the contract is that there will be an agreement on the identity of the thing sold and the price to be paid for it and the parties are at liberty to agree on other terms though not obliged to do so. Each party to the contract will be bound by those obligations which he or she has expressly or impliedly undertaken or those that are imposed by statute or the common law. The primary obligations of the seller are to take due care of the subject matter of sale until it is handed over to the purchaser; to make it available to the purchaser; and to transfer ownership if he has it or can procure it. In appropriate circumstances the seller is obliged to warrant that the item sold is fit for the purpose for which it is sold; that it is of reasonable quality and that it is free from latent defects. A latent defect constitutes an impairment of the usefulness of the thing sold and is not discoverable upon reasonable inspection by an ordinary person (not an expert). This latter obligation on the part of the seller, however, arises by operation of the law, regardless of the intention of the parties at the time of contracting although it may be excluded by agreement. In cases where the warranty has not been excluded, the seller has a duty to disclose and to assume responsibility for all the latent defects that render the item sold either wholly or partially unfit for the purpose for which it was bought.
Imported Materials There have been news stories released almost on a daily basis relating to the safety and the quality of Chinese products. Despite this, many Batswana, particularly in this era where construction activity is growing, continue to import building materials from China. We have now accepted that global trade in manufactured goods has become a fact of life but Botswana citizens must have basic information that will empower them to make informed decisions about potential risks and how to manage and mitigate them. Enforcing the agreements of sale and availing oneself of the remedies discussed above in the case where the parties are in Botswana, the contract is concluded in Botswana and the item sold is also in Botswana, may not present any difficulties. However it’s a different ball game when one is dealing with foreign suppliers or manufacturers. The Consumer Protection Act has no extra territorial application. With foreign suppliers who do not have assets in Botswana, courts normally do not have jurisdiction to adjudicate on the issues that may arise between the parties to the contract thus making it difficult to enforce such contracts in general and even harder to deal with issues that are not explicitly set forth in the contract.
The usual remedies available to the purchaser in the event of breach of the seller’s duty to warrant against latent defects are the actioredhibitoria, an action for cancellation of the contract and restoration of each party to his or her original position as far as possible and actioquantiminoris, an action for the reduction of the purchase price. In the latter case the purchaser chooses the option to keep the defective item. The purchaser will therefore be entitled to the difference between the purchase price and the value of the item in its damaged or defective state. Apart from the above, compensatory damages may also be claimed by the purchaser in appropriate circumstances.
Consumers should therefore have more detailed contracts and specification when dealing with foreign suppliers. Some of the issues that could be included in such agreements are the remedies and damage provisions acceptable to the consumer. For example, a consumer may not want a supplier to disclaim consequential damages or any damages at all or that the only remedy available is replacement. In case you are a retailer, you require indemnity from the supplier or manufacturer to hold you harmless in the event of a product liability claim or law suit. Do you want to personally defend the case or do you want to make it clear you control the defence? Furthermore, one needs to think about how he/ she is going to enforce the agreement if necessary; will you have to sue in China? If so, do you possess the funds to do so? Are the laws there written in English or mandarin or any other language? Will they agree to submit to jurisdiction in Botswana? If they submit, which law should be applied by our courts? These are some of the questions a consumer needs to ask in order to make an informed purchasing decision.
There is also the Consumer Protection Act, administered under the Ministry of Trade and Industry. It establishes the Consumer Protection office to provide for protection of the interests of consumers
* Reuben Lekorwe is a partner at Baoleki Attorneys, a firm of attorneys that specializes in commercial, corporate law and compliance and Regulation.
Professional Practice Page 22
BOIDUS FOCUS September 2014
Understating A Performance Bond, Its Purposes And Implications? by Boidus Admin
Bonds are provided as useful means of creating financial security for the Employer for the Contractor’s failure to perform his contractual obligations. Generally, a bond is an arrangement under which the performance of one party (A) to another party (B) is backed up by a third party (C). What happens is that C promises to pay B a sum of money if A fails to fulfil the relevant duties. In this context A is commonly known as the principal debtor or simply principal; B is called the beneficiary; and C is called the bondsman, surety or guarantor. In the construction context, such back-up is likely to come from one of the two sources below: (a) Parent Company Guarantee – the contractual performance of one company within a corporate group is underwritten by other members of the group; or (b) Bonds – normally provided (at a price) by a financial institution such as an insurance company or a bank.
The obligations most commonly guaranteed by bonds or guarantees are as follows: • Payment: For example, the Employer’s duty to pay the Contractor or the Contractor’s duty to pay a Sub- Contractor. A Contractor may also provide a bond in favour of the Employer, in return for an early release of retention money or, indeed, completely replacing the retention provisions. If defects are then found in the building, the Employer can call on the bond, rather than the retention money, to finance the necessary remedial work. • Specific Obligations: Such as a promise by a Sub-Contractor not to withdraw a tender. This may be of practical importance where, say, a main Contractor tenders on the basis of bids received from domestic subcontractors. If the main Contractor, having been awarded the job, finds that a Sub-Contractor’s bid is no longer open for acceptance, the main Contractor may then have
to pay a significantly higher price to another sub-contractor for that part of the work. • Performance of the contract in general: This is the most common type of bond, in which every aspect of the Contractor’s performance is guaranteed. The contract frequently requires a bond, normally to a level up to 10% of the contract sum. The usual form of bond used in Botswana is a Performance Bond which guarantees the Contractor’s performance of the contract with an undertaking to be bound in a specified sum until (and unless) such performance is achieved. Upon the Contractor’s failure to perform in full, the Employer is entitled to call on the surety (or bondholder) to make good the loss, up to the maximum amount of the bond. Since a bond is a contract of guarantee, it requires to be evidenced in writing. Further, since the Employer gives no consideration (save that the Contractor must include the cost of the bond in his price for the works) the bond must be made by deed. The construction contract and the bond are inter-related, since the bond is a tripartite transaction involving the parties to the construction contract and the bond.
ATTENTION CONTRACTORS
LET US TAKE YOUR RISK BECI is the only credit insurer in Botswana, set up in 1996. The primary function of BECI is the granting and development of credit insurance. The company has evolved through time into issuance of other related products, such as Construction Guarantees and related guarantees. BECI has been instrumental in the development of credit discipline in the country.
Nonetheless the bond is a separate and wholly independent legal document enjoying autonomy from the construction contract. In that sense the bond is independent of the construction contract. Performance bonds are traditionally categorized as being of two types. The first type is the ‘conditional’ bond, where the surety agrees to pay if and when certain specified conditions are satisfied. The most likely condition would be any default (i.e. breach of contract) by the Contractor. The principal characteristics of this type of bond are namely: • It is a contract of guarantee whereby the surety (guarantor, i.e. the Insurance Company / Bank) accepts ‘joint and several’ responsibility for the performance of the Contractor’s obligations under the engineering and construction contract (i.e. the principal contract); and • The surety only becomes liable upon the operation of the ‘trigger clause’, i.e. proof of a default/breach of the terms of the principal contract, and the Employer (beneficiary) sustaining loss as a result of such default/breach. The second type of bond is the ‘unconditional’ bond which entitles the beneficiary to call upon the surety for payment whether or not there has been default under the principal contract, provided only that the call is not fraudulent. These bonds exhibit the following characteristics: • It is a pledge by the surety (guarantor, i.e. the Insurance Company / Bank) to indemnify the beneficiary (i.e. the Employer) merely when demand is made upon him by the latter; • It entitles the beneficiary to call upon the surety for payment whether or not there has been default under the principal contract provided only that the call is not fraudulent The duration of a guarantee depends upon the terms in which it is given. If no specific time limit is mentioned, then a surety for the Contractor’s performance is not released by completion or even by
With construction insurance from BECI, you can get on with your contract works without having to worry about the risks that often come with a project.
BUILD WITH CONFIDENCE
BECI provides guarantees to ensure that your contract will be performed according to its terms. In the event that the contract is not performed, BECI will pay damages if the contractor cannot. BECI surety bonds, or guarantees, include: • Bid/tender bond • Performance bond • Advance payment bond • Retention bond • Letters of intent
LOSS, DAMAGE AND INJURY BECI also provides insurance cover for: • Contractor’s All Risk, and • Worker’s Compensation For over 15 years, BECI has been helping entrepreneurs in Botswana to minimise credit risks, improve cash flow and focus on what really matters: growing their businesses.
Tel: +267 31 88015 Plot 142, Unit 1 Kgale Mews [Opposite Game City, next to ē voice]
www.beci.co.bw BECI is a subsidiary of Botswana Development Corporation
the final certificate but remains liable, as does the Contractor, for any breach of contract which comes to light within the relevant limitation period.
Generally, as a rule, a performance bond remains in force until the stated discharge date which is usually either after practical completion of the works or after making good any defects. However, should the practical completion or making good of defects occur earlier than the bond date, the bond cannot be recalled or withdrawn unless the client agrees to an earlier release date. Furthermore, a performance bond is not an insurance policy which normally is a contract of indemnity under which the insured is indemnified in the event of loss, subject to the adequacy of the sum insured. Moreover, there are three parties under a performance bond (i.e. the Contractor, the client and the surety company) as opposed to two under an insurance policy (i.e. the insurer and the insured). Once a bond is issued, it cannot be cancelled until the stated discharge date or until the subject matter of the indemnity has been completed satisfactorily, however, an insurance policy can be cancelled before its expiry date. The financial limits of liability are invariably expressed in the contract of guarantee. It should be made clear, in order to avoid disputes, whether interest on money due, and legal costs, are included in the overall limit. It is also worth noting that some bonds provide for the entire sum guaranteed to become payable on any breach by the principal, regardless of how serious or trivial that may be. If this is the case, the provision is likely to be struck down as a ‘penalty’ and the beneficiary will be entitled only to so much of the sum as will compensate for the actual loss which has been suffered.
BOIDUS FOCUS September 2014
Advertising Page 23
COMPANY PROFILE Scotch Macdonald (Pty) Ltd. Trading as Delta Glass & Aluminium has developed a wealth of experience over the years in Botswana Architectural Glass and Aluminium supply market. Delta Glass & Alu minium is Botswana’s foremost supplier of Suppliers of: an enormous variety of specialised glass PO Box AD 214 ADD Gaborone products and Architectural aluminium Architectural Aluminium & Botswana applications such as Shop front systems, Tel: (+267) 3925395 Glass, Curtain Wallings, Shower Curtain Wall, windows and doors, shower Fax: (+267)3925350 and Patio Doors cubicles, skylight and Louvers and numer ous other products that complement the Fenestration Industry. Plot 53609, Unit 7 Gaborone West Industrial As an active member of the Botswana BuCompany Profile Gaborone, Botswana reau of Standards technical advisory com mittee we at Delta Glass & Aluminium Scotch Macdonald (Pty) Ltd. Trading as Delta Glass & Aluminium has developed a wealth of Tel: (+267) 3925384 / 95 combine the technical expertise of the experience over the years in Botswana Architectural Glass and Aluminium supply market. Delta Fax: (+267) 3925350 most experienced glass and aluminium Glass & Aluminium is Botswana’s foremost supplier of an enormous variety of specialised glass Cell: (+267) 71321032 products and Architectural aluminium applications such as Shop front systems, Curtain Wall, designers and engineers in Southern AfriEmail: grantstacydelta@gmail.com windows and doors, shower cubicles, skylight and Louvers and numerous other products that complement the Fenestration Industry. As an active member of the Botswana Bureau of Standards technical advisory committee we at Delta Glass & Aluminium combine the technical expertise of the most experienced glass and aluminium designers and engineers in Southern Africa to render expert opinion on all aspects of aluminium and glass fenestration, we help determine the best solutions, both technically and economically, with systems and products that have been carefully engineered and thoroughly tested to comply with the most stringent performance specifications. Operating from our 1600 square metre warehouse in Gaborone west industrial, Delta has a most comprehensive distribution network in place to service local and northern businesses with our fleet of purpose built vehicles. Most importantly, Delta boasts a team of highly experienced technical, production and management personnel focused on maintaining the high level of service and quality standards for which we are renowned.
ca to render expert opinion on all aspects of aluminium and glass fenestration, we help determine the best solutions, both technically and economically, with systems and products that have been carefully engineered and thoroughly tested to comply with the most stringent performance specifications. Operating from our 1600 square metre warehouse in Gaborone west industrial, Delta has a most comprehensive distribution network in place to service local and northern businesses with our fleet of purpose built vehicles. Most importantly, Delta boasts a team of highly experienced technical, production and management personnel focused on maintaining the high level of service and quality standards for which we are renowned.
Advertising Page 24
BOIDUS FOCUS September 2014
BHC PROMOTES HOME OWNERSHIP AT THE CONSUMER FAIR
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Captions 1. Balomeletsi Bafedile, Marketing Officer and Phenyo Mpolokang, Estates Officer answering questions from customers at the stall 2. Children having fun at the BHC stall 3. Rachobo Tlhoolebe, Senior Estates Officer assisting customers at the stall 4. Stall visitors filling in the crossword puzzle for a chance to win 5. Boitumelo Muzanywa, Marketing intern and Thebeitsile Nkhutlelang, Research Officer, explaining BHC products and services to stall visitor
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4 As most Batswana are facing the challenge of accommodation, Botswana Housing Corporation (BHC) is currently encouraging its tenants to purchase their rented houses through its “Selling to Sitting Tenants Campaign”. During the exhibition at the 2014 Consumer Fair, BHC informed visitors that their mandate is to provide accommodation to Batswana and this campaign empowers Batswana to unlock their net worth through home ownership. BHC Marketing Manager, Ms. Pinkie Tau said BHC gives people the chance to own property in prime land. Tau explained that the campaign was bearing fruits since people are now seeing the value of buying their houses. “Buying is more than shelter; rental provides occupational benefit only, but
5 buying a house gives equity for realization of future aspirations while rented property cannot be used for such,” said Tau. She said most people have been renting their property for ages and since the commencement of the campaign some are beginning to purchase the houses they are occupying. The one year campaign which is expected to come to an end in March 2015 is available to anyone who has been renting the BHC houses anywhere in Botswana. As part of the encouragement, BHC has a value proposition which includes a discount on the valuation price, a P7 500 renovation voucher and zero administration fees. The Corporation is also raising awareness about the interest rate, which is at its lowest in years, making this an opportune
time to purchase a house. The company has partnered with banks such as First National Bank, Stanbic Bank, Banc ABC, Standard Chartered Bank and National Development Bank to facilitate acquisition of property to Batswana through favourable loan arrangements. The following were cited as some of the reasons to purchase a house from BHC: Tried and tested: Old Stock of BHC houses have been tried and tested and since you have or are living in one, you know exactly what you are getting. Buying into a Community: BHC houses exist within a community and therefore you are able to buy into the character of a community you like. Proven Market Appreciation of BHC Houses: Because BHC houses are built on prime areas and adequately serviced; their property values have been proven to appreciate rapidly over time.