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BOTSWANA’S BUILT ENVIRONMENT NEWSPAPER | Vol. 5, Issue 4 | april /may 2015
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HOME IMPROVEMENT
DIY Special: How to replace
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PROFESSIONAL PRACTICE
INTERNATIONAL NEWS
p9
African retail/office property offers
‘significant opportunities’ p3
What to be aware of when
buying surety bonds
p16
MAIN FEATURE
RDC Targets Residential
Investment & Foreign Expansion for Growth
• The biggest challenge that most property investors and owners would experience right now is the fact that people don’t have liquidity. • There’s less money in circulation and disposable income is reduced so some tenants are having difficulty in paying their rentals. • “So going forward you have to look and ask: What is the real potential of this market?” says Giachetti. By Kibo Ngowi
Tenant Eviction
Process in Botswana The Tenuous Relationship Between Landlord and Tenant
By Itumeleng Tebagano and Ajit Williams One of the most common disputes that a legal professional is tasked with litigating over is that between landlord and tenant. The relationship between landlord and tenant is one that requires a great deal of idealism; the proposition is that one
takes his valuable property and allows a third party to live in it in exchange for a monthly fee. From the outset, one can see the plethora of problems that could potentially arise from such an arrangement and indeed these problems often do. p8
Built Environment Career Guide 2015 By Arnold Tombo
With a property portfolio valued at close to P1 billion, RDC is best known for its Masa Centre development in Gaborone’s new CBD but the ambitions of this listed property company extend far beyond the Capital City and past Botswana’s borders. In an exclusive wide-ranging interview with Boi-
dus Focus RDC Executive Chairman Mr. G.R. Giachetti shares his thoughts on how the company has managed to achieve the stellar growth it has recorded despite operating under challenging market conditions and how they plan to sustain growth going forward. p3,4
Botswana’s tertiary education providers are becoming increasingly aware of the knowledge and skills needs of the country’s building and construction industry. Thus there is a growing variety
Botswana Insurance Company:
The Real Estate Advantage:
Design pad:
Construction insurance Some Clauses & Extensions
p7
Derive the Full Benefit of Your Property
p9
Office Interior Design Matters
of options available for both prospective and active built environment professionals. Boidus Focus breaks down the options for you in our built environment career guide. p7,10,11
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LOCAL NEWS P2
BOIDUS FOCUS APRIL 2015
News Briefs April 2015
Compiled by Keeletsang P. Dipheko
New Marriage Property Act Tested in Court
VISION
Lobatse high court’s Justice Leatile Dambe has granted an order directing that the matrimonial property regime of a couple which sought to vary their property regime be changed from out of community of property to in-community of property. He also ordered that the couple be authorised to enter into a notarial deed by which their property is to be regulated. The couple was challenging the decision of a marriage officer who rejected their wish to marry in-community of property in 2002 when they got married in Gaborone on the basis that the husband is a foreigner.
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Molatlhegi Worried By Expatriates Buying Land in Botswana Member of Parliament for Gaborone South Kagiso Molatlhegi said an alarming rate of foreigners buying land from Batswana was disheartening as they in turn rent the facilities and residence at exorbitant prices to the very persons who sold the land and plots in the first place. “The land policy should be clear about the foreigners, said Molatlhegi. “They should hire and rent not to own homes as a requirement. They have their land and homes in their original countries.” Molatlhegi said Batswana no longer own land at Block 8 as it is bought by Nigerians and Indians.
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Platjan Bridge Construction Delayed The construction of the Platjan Border Bridge which is estimated to cost P100 million will be delayed. The construction of the bridge, which connects Botswana and South Africa’s Limpopo Province over Limpopo River, should have started this month and would have taken 18 months to complete. The Minister of Defence, Justice and Security Shaw Kgathi urged for the construction of the bridge to be expedited to ease movement between the two countries. Kgathi said once the bridge is complete it will reduce congestion at borders like Martin’s Drift and increase traffic through the SPEDU area.
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The Minister of Lands and Housing said the long term plan of government has always been to develop government-owned offices and the decision on whether to rent or build is based on assessing opportunity costs and priorities at any given time. While it may be cheaper for government to construct its own offices, the budgetary constraints have prevented such efforts. However, over the past 10 years a total sum of roughly P602, 742, 922 has been spent on rent for 86 properties being rented by ministries and government departments in Gaborone locations in Botswana, within eight months, between April and December 2015.
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GTM Consultants, Profusion Sensitise Planners Through Workshop GTM Consultants in conjunction with Profusion (Town Planning Firm) has this past week held a Town Planning Workshop. The workshop, themed “Unearthing Economic Opportunities through Town Planning,” intended to bring together partners and different stakeholders to explore how Town Planning can contribute and facilitate the stimulation of local economies. The workshop also discussed ways of translating Town Planning solutions into economic solutions. It was the start of a process that will provide a platform to strengthen communication between stakeholders to improve management and increase efficiency in the town planning practice at both national and local level. Find these stories and more at:
www.boidus.co.bw
BOIDUS FOCUS APRIL 2015
BOIDUS FEATURE P3
African retail and office
property offers ‘significant opportunities’ for investors
Rapid urbanisation and growing consumer wealth on the African continent is providing numerous opportunities for investors wanting to gain exposure to retail and office property developments north of South Africa. Investors often make the mistake of thinking of Africa as a uniform landscape whereas it’s critical to identify the countries and sectors that offer the best opportunities and match them with their own expertise. In addition, investors also need to find the right local partners to help them navigate the risks and complexities of doing business on the continent. The demand for quality property assets on the continent is especially
evident in countries where natural resource discoveries have recently been made. This increase in wealth coupled with foreign companies establishing operations is driving this demand.
RDC Targets Residential
Investment & Foreign Expansion for Growth By Kibo Ngowi
Although commodity prices have dropped, and in particular oil, resulting in economic growth forecasts being revised downwards in many jurisdictions, there is still demand for quality real estate assets due to the enormous undersupply. Rapid urbanisation in response to sustained population growth and economic growth is also boosting consumer spending in these countries, which is further driving demand for quality real estate assets. (Africa Property News)
Giachetti however brushes off fears that the market might be reaching a point of saturation: “The market is always going up and down. The lack of liquidity and the lack of tenants would be a challenge if we had to do the same project (Masa Centre) today. We had enough difficulties in finding funding when the market was doing better. Banks had a lot of money and there were tenants around.” The RDC boss sees the fact that his company was one of the first to move into the CBD, with their flagship Masa Centre development, as a great advantage for them, along with the fact that it is a ‘lifestyle’ development including a hotel. RDC Executive Chairman Mr. G.R. Giachetti
Continued from the FRONT PAGE RDC recently released its financial results for the year ended 31st December 2014 and the indicators were positive. Profit was up by 22% and the investment and property portfolio grew 11% to P950.3 million. Reflecting on these results in an exclusive interview with Boidus Focus RDC Executive Chairman Mr. G.R. Giachetti tellingly says that in circumstances that are not the easiest on the market, the results can be considered as being very positive.
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While he’s confident of RDC’s continued viability and the strength of its property portfolio Giachetti is quick to highlight that the Botswana property market is currently experiencing challenges related to liquidity. “The biggest challenge that most property investors and owners would experience right now is the fact that people don’t have liquidity,” he told me. “There’s less money in circulation and disposable income is reduced so some tenants are having difficulty in paying their rentals.” Another challenge is the lack of clarity on how the market will develop going forward. Giachetti points to the abundance of on-going projects in the CBD as a factor which will apply continued pressure on the office market. At the same time many shopping centres have been built so there is also continued pressure on the retail sector as the spending power of the current consumer base cannot sustain all of them. “So going forward you have to look and ask: What is the real potential of this market?” says Giachetti. “The potential of the market is limited because it’s not the market of a big city which has a large demand. So we have to be careful and that is why looking outside of the country and trying to develop new strategies is important.”
RDC’s property portfolio rise was mainly driven by the two properties Masa Centre and Chobe Marina Lodge, which each increased by P28 million in value in line with their growth in rental income. When questioned on how the company has been able to achieve this growth Giachetti points to the uniqueness of both properties. “Chobe Marina Lodge is a unique property in the North and it is doing very well. It has rented well and the rental we receive is related to the income generated by bed occupancies so the more tourists come into the area the more we get as rental. Therefore it reflects in the value of the property.” RDC had acquired the property at a fair discount to its commercial value and this increase is part of the fact that the company has re-valued the property this year. Meanwhile, the increase of P28 million at Masa Centre is on a value of P450 million which Giachetti notes is relatively small at only around 6%: “It looks big as a number but in terms of the value, the fact that the property is getting close to fully let and the fact that the hotel is running at 100% occupancy during the weeks bodes well for the future of that development. That development is a unique property in the middle of town. That’s why the increase of the property value.” As unique as the Masa Centre property might be, it is not without its challenges, as evidenced by the fact that RDC has plans to convert at least 2,000 square metres of office space into apartments. The plans have already been approved by DTRP and the aim is to create 30 new suites that will be managed by the hotel.
Indeed RDC is aiming to grow its residential portfolio through various strategies including construction and acquisition. The company currently has its eye on the ICC Continues PAGE 4
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PUBLIC NOTICE Foodbank Botswana is a non– profit organization (NGO) duly registered as a trust, under registration no: MA453/2014 of deeds registry. Foodbank is the largest food relieve nonprofit making organization worldwide. Foodbank is an independent charity organization that aims to deliver nutrition, healthy food. Foodbank prevents food waste and protect the environment. As a cautionary measure, members of the public are informed that Foodbank Botswana is not licensed financial institution. However, exceptional retrospective approval was granted by Bank Of Botswana in accordance with section 3(2) of the Banking Act (Cap 46:04) to use the word “BANK” as part of our trade name. For further information please contact 3105821 or 76253655.
BOIDUS FEATURE P4
BOIDUS FOCUS APRIL 2015
RDC Targets Residential
New Letlole La Rona MD Paul
Investment & Foreign Expansion for Growth
More Opens Up
Continued from PAGE 3
“It’s important to realise that the market in Botswana is relatively limited. There has been a flurry of listed vehicles and I think the battleground for the future will be the opportunities abroad or consolidations in the market place. That is why you see more and more investments outside Botswana by companies across sectors, not just in property. So I think the growth of the market will be abroad and obviously we will capitalise on our presence in other emerging African countries.” flats off Nyerere Drive in central Gaborone, just a stone’s throw away from the CBD. Giachetti says they feel very positive about this acquisition because it is in a prime location and there is potential to add an additional 45 flats. Meanwhile, the company is also awaiting consolidation approval to begin construction on a housing estate in Tlokweng. The land is owned by ICC (RDC’s sister company) and the envisioned arrangement is structured such that RDC would sell 50% of the property and retain 50% for the company. “That property would be a little more subject to the market at this stage because having 50% up for sale requires us to see how much liquidity there is on the market and how much appetite there is for those units before we go ahead with them,” says Giachetti. RDC is also building 14 mini-factory units in Gaborone West which Giachetti says are 5 months away from completion but this addition to the industrial properties represents only one and a half percent of the company’s overall portfolio. When I spoke to Giachetti around the same time last year he told me that he sees the Botswana market increasingly expanding into Africa in the future: Giachetti is still eager to explore opportunities outside of Botswana. Currently, the only international development RDC has is the four-star rated hospitality development Isalo Rock Lodge in Madagascar. Unfortunately the lodge has not performed up to expectations due to the political instability in that country and even now that the political climate has markedly improved the market is still lagging behind. “The situation in Madagascar is politically stable but nothing much has really changed,” says Giachetti. “The President mentioned during his campaign and the first few months of taking office that tourism would be the engine of growth but the facts have not really materialised.” Giachetti highlights the limited number of flights
into Madagascar as the main reason for the failure of the tourism sector to pick up. There was also an alleged outbreak of the plague that, even though it was in a very limited place, created a “negative vibe” on the market: “So the lodge is performing slightly better but nothing like where we were expecting it to go. I’m sure that once the market stabilises it will be very sought after because we are one of the few that has actually grown last year because the demand for our product is good. The problem is that the general number of tourists visiting Madagascar has not really grown.” Giachetti says the company is moving into discussions about other countries in the region. While they did propose some investments in Kenya at some point, they have not pursued this, essentially because of the tensions related to terrorism that are there right now. The case is the same with Nigeria with the political tensions, the activity of Boko Haram and the petroleum price having gone down, all making RDC very reluctant to go in for now, even though the company does have some operations there through its parent company. The parent group, not necessarily RDC, has decided to start an engineering and project management firm in Mozambique and that will have the scope of finding the right projects for them in that country for the next few years. “Unlike South Africa or Namibia or other countries in the region where you can actually monitor your investments at a distance, in Mozambique we believe you need to have a presence to find the right partners and opportunities and that is what we have started doing as the group,” says Giachetti. As a parting note Giachetti says, “I think we are at a very interesting time as RDC because we are going to bring in the residential portfolio and that will give us the possibility of reducing our dependency on the other sectors. It rebalances our property portfolio even further and we believe this varied portfolio will allow us to cover the market very well. We also have some good international prospects and we are looking at them closely so the road ahead is looking promising for us as a company.”
on your company’s recent financial results.
property sectors and geographic areas. True, there are one or two sectors that might be considered to be on the verge of becoming saturated in the market, especially in the capital city. However, opportunities for growth and performance will be vigorously pursued, even if that means investing off the country’s shores, especially in developing economies in Africa which continue to exhibit reasonable economic growth.
PM:
BF: What are the major challenges your
Fresh off the release of Letlole La Rona’s financial results for the year ended 31 December 2014, the company’s new Managing Director Paul More met with Boidus Focus for an exclusive interview to share his thoughts on the company’s performance and the prospects for this listed vehicle going forward.
BF: Please share your general thoughts
Letlole La Rona (LLR) has performed well. As you would probably have noticed in the Press Announcement, profit before fair value adjustment went up by 25%. In view of the fact that performance of property investments in the market has not been very favourable, this represents good performance. Also, in the last 6 months, LLR’s property portfolio value grew by a reasonable rate. Income received from rentals also increased as a direct consequence of retaining tenants of a competitive covenant strength and application of annual compound escalations. The yields have also been impressive and competitive and we believe that this should generate value and boost investor confidence in our company. We continue to live to our brand promise; that of creating wealth for our shareholders.
BF:
Letlole La Rona has a diversified portfolio of developments covering Industrial, Leisure as well as Commercial and Retail. What has been the Letlole La Rona strategy regarding property investment within Botswana?
PM: Our strategy has largely focused on
acquisition of developed property. Most of our investments are located in Gaborone, these being hotel space, commercial, industrial and retail property. We also have a hotel space and some industrial space in Francistown. Another investment worthy of mention is space occupied by a leading hotel in Selibe-Phikwe. The said hotel sits on a space that offers tremendous development potential enhanced by its location right at the heart of the town’s Central Business District.
BF: In which property class will Letlole La
Rona be looking to expand your portfolio going forward?
PM:
The company is not looking at locking itself into investing in any specific property class. The major driver for investment decisions is creation of value for our shareholders. What is crucially important is that we continue to cherry pick properties that will not only assure us of rental growth, but also capital value appreciation. This is critical in view of the fact that while investors in property are happy to receive annual dividends, they are not necessarily short term driven in their approach to investment. So LLR will continue to find ways of diversifying its investment base across different
company has faced in the past year?
PM: The major one was the burning of
some of our factory space. It took time to go through the process of restoring affected properties. In the interim, we lost our tenants and had to remarket the property. However, the good news is that interest has been expressed in occupying our space, new leases have been signed and the situation is getting back to normal. BF: Letlole La Rona profit before fair value adjustment was up by 25% for the year ending 31st December 2014. How confident are you that your company can maintain this positive trend in profit?
PM: I must say that this growth is not
a consequence of a fluke or unexpected windfall in the economy. It largely reflects a sound broad based strategy that focused on reducing voids in the property portfolio, being financially prudent in maintaining the company’s portfolio while judiciously containing cost and maintaining the value of receivable income in real terms through consistent application of rental escalations. I must say that an unwhinging deep sense of duty of care to our shareholders has largely permeated our investment strategy and will continue to do so. Of course the value of a sound governance structure as meaningfully portrayed by LLR’s Board of Directors cannot be underplayed. Also deserving of credit is the management team and my predecessors all of whom have done a sterling job in effectively managing the company’s assets.
BF:
Previous Letlole La Rona Acting CEO Sethebe Manake mentioned to us in an interview we conducted with her last year that retail and office are the sectors in which the board feel they do not have sufficient exposure. Are there any investments in these sectors LLR are considering pursuing?
PM:
Our exposure to retail and commercial office space has been rather on the lower side, and perhaps this is an opportune time to consider revving up investment in these sectors particularly in prime areas with effective demand. As already pointed out, the company will continue to seek ways and means of expanding and diversifying its portfolio. This is part of the risk management strategy Continues PAGE 5
Guest editorial 5
BOIDUS FOCUS APRIL 2015
On Alchemy, Economics & Infrastructure By Jan Wareus
cu-Roegan, Herman E Daly, Aurelio Pecci and Thorkil Kristensen. My own favourite is Keynes, who put the few “welfare states” in order.
More Opens Up Continued from PAGE 4
which will be employed going forward. This will ensure a healthy balance in the ratios of our investments in various property sectors, the over-arching objective being to reduce over-exposure in any particular property investment class. However, this does not necessarily mean that we will hit the brake pedals on resilient property investment sectors that have been known to perform over the years. We want to assure our shareholders that diversifying into other sectors will never be hunch driven, but will continue to be duly informed by rigorous investment appraisals and objective risk profiling.
BF:
This time last year LLR’s key development was a warehouse extension at plot 32084 in the Old Naledi Industrial area of Gaborone in which you were building an additional plus or minus 10,000sqm to the estimated cost of P 41 Million and predicted that this extension would increase LLR revenue by at least 26%. At what stage of completion is this project? Has it performed to your expectations? What is the key development LLR is currently pursuing? The project has been completed. Naturally, the effect of completion is increased rental revenue and that has had a positive impact on performance yields, the balance sheet and the bottom line. Currently, LLR is considering veering into retail investment and utilising a portion of its undeveloped land in Selibe-Phikwe for this purpose. This piece of land enjoys a prime location, as it is centrally located, easily accessible and will even benefit from foot traffic owing to its proximity to the taxi rank. This presents an awesome opportunity for a reasonably sized regional shopping centre billed to offer comfort, diversity and convenience to the wide catchment area extending beyond Selibe-Phikwe into neighbouring villages. At the moment, the project is at conceptual stage, but once the concept is approved, it is set to move through the rest of the stages swiftly.
BF: Feel free to add anything more you
feel would be of interest to our readers.
PM:
With a market capitalisation of over P600 million, sustained growth in share price over the years and consistency in bi-annual distribution of dividends, our investors have all the reasons to be super-confident about their choice of investment. The Management and the Board appreciate that the company has to sustain momentum through judicious investment decisions. Hence, all investments will continue to be carefully picked, costs will continue to be contained while conscious of the need to maintain our investments in a reasonable state of repair and the Management Team will find innovative and winning ways of leading in property investment without compromising shareholder value.
“Frederik Soddy and Nicholas GeorgiescoRoegan introduced the concept of entropy into economics. They visualized economy as the digestive system of society. It “eats” resources and derives from them the strength to drive the machinery of society. Later, it excretes the resources in a degraded form. Obviously this is not a circular process, since the degraded resources cannot simply be “eaten” again. For example, fossil fuels, once burned, cannot be burned again. Since only cyclic processes are sustainable, only renewable energy is sustainable. Furthermore, cyclic processes can only use materials that are renewable, like natural fibres. Today those ideas are very ably advocated by GeorgiescuRoegans’ student Prof. Herman E Daly.” Oil times are changing, and not in a good way. (Photo by AZRainman/Flickr). This photo is a very dramatic metaphor of what might happen when we run out of oil. Of course, it’s an exaggeration. We might not need many oil-tankers but we will certainly not be back to the Silky Road with camel caravans. Veteran Architect Jan Wareus, who was involved in the initial planning of Gaborone, disusses how the free market ideologies ushered in by economists of the 80’s and sponsored wholesale by the governments of Ronald Reagan in the USA and Margaret Thatcher in the UK are having profound effects on the developing countries on whom these principles were forced during their establishment as newly independent states and how Botswana needs to realise that these out-dated ideas lead to a dead end. Oil times are changing, and not in a good way. (Photo by AZRainman/Flickr). This photo is a very dramatic metaphor of what might happen when we run out of oil. Of course, it’s an exaggeration. We might not need many oil-tankers but we will certainly not be back to the Silky Road with camel caravans. Modern economists are now at risk of sharing our silly jokes about lawyers. Serious writers are referring to them as “so called economists”, even in our local newspapers (Thank you Roman Grynberg). And they have only themselves to blame for taking the Reagan-Thatcher road some decades back and becoming modern alchemists, making wealth out of junk bonds and sub-prime loans, amongst other illusions, recommending overseas investment rather than investing profits in the mother country (and forcing governments to look for alien investors). However, there are clever economists and, not surprisingly, of an older school of economy. The most influential was John Maynard Keynes of the Bloomsbury Society. By the early 1920’s he had already realised what outrageous conditions the WWI treaty would create for Germany; Something similar to what the West is today imposing on Libya, Iraq, Iran, Syria and, why not,
Russia. His general ideas about how to keep a working class in production with decent earnings (to secure sales) were widely accepted by so-called “welfare” countries and were obviously an inspiration to the late Sir Seretse Khama. Neo-liberalism (dogma mostly from the Chicago School of Economics and seconded by a Nobel Prize to Milton Freedman) stopped that with the help of Reagan and Thatcher. We got “reaganomics” in its place – free trade, free markets, no economic or custom hindrances as well as restrictions on government spending and so called economic globalisation. Remarkably, globalisation had been tried by many former empires and never worked! (Though the historians like to refer to these failed attempts as imperialism they were effectively the same as globalisation). But we know that economists of today are or at least were not interested in history, for sure! There is high anxiety in the world, pondering about externalities, and time to get the economic balance books in proper Italian double order. Important here is to try and see what must happen when extrapolating a modest 3-4% rate of industrial growth for the distant future. After four centuries, the economy will have grown by a factor of 136, 424 and consequently a hundred thousand times as much energy will have to be generated. The impossibility of endless growth is even clearer if it should go on for eight centuries – the growth factor is then 186 million at a modest 3% growth a year! When heaping insults on modern “so called economists”, we also have to mention a few exceptions. Prof. John Scales Avery (former advisor to WHO and once leader of the Pugwash Group that received the Nobel Peace Prize in 1995) has pointed out Frederik Soddy, Nicholas Georgies-
The late 60’s and early 70’s had a lot of careful, cautious and intelligent economists, probably as they had earlier been part of western countries’ industrial development and experienced a few economic bursts. They saw the risks with what we now call “externalities” and became what we now call “whistle-blowers”. They were political economists, food researchers or agriculturalists, geologists, physiologists and other professionals. They certainly warned about on-going predatory exploitation of finite resources including oil, gas, coal, water, unsustainable lifestyles as well as uncontrolled air and water pollution. But the new, modern so called economists didn’t listen and, worse, neither did elected leaders (with Finance Ministries filled up with gratis Chicago Boys). During my last university year in 1965, we students of architecture (town planning was a voluntary side-line then) were recommended “Limits for our Existence” by Georg Borgström, later professor at Michigan State University, by our history professor. We read his book (years before Club of Rome, actually) and listened to his lectures but already then it was too late for us “modern” students. The “eternal progress train” had started and to earn money we had be on to be on the train, sad to say. Consequently, I cannot but understand the situation that most developing countries are in today. There was hardly any coherent alternative to the massive neo-liberal economic concept from western development institutions and charitable donors for newly independent developing countries then. The “hidden” conditions were just as important as the job was for new architects and town planners. But there were serious consequences when the developing countries applied this kind of out-dated, high cost, western, technology (an inheritance from the colonial powers, I insist),
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Continues PAGE 6
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Today: 06 Sustainability Starting blocks with
Botswana’s Architecture Design and Urban Landscape Newspaperclimate | J U Nchange E 2013 www.boidus.co.bw
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 Developthe Inevitable Change towards BOIDUS FEATURE > Decarbonisation targets? ment into the CBD Global
SUSTAINABILITY | page 06
| Volume 4, Issue 7 | AUGUST 2014
Feature: to Consider 18 Factors 15 Education Botho University Builds When Establishing Francistown Campus
Sector Regulation
EDUCATION | pages 15
www.boidus.co.bw
Guide to School Programmes: 2013 Built Environment Careers Guide
BOIDUS EXCLUSIVE >
by Kibo Ngowi Bringing together key CBD stakeholders such as landowners and developers to engage on issues that affect their developments and investment
BR Properties - Botswana’s first Parastatal Property Investment Subsidiary by Kibo Ngowi
BR Properties is a pioneer organi-
sation as it is the first example of a company established to commercially exploit the real estate assets of a Botswana Government enterprise.
company apart from its counterparts and defied the perception of poor construction workmanship as a uniquely Chinese problem. >>> CONTINUED PAGE 07
The performance of this company will serve as a test case for many other
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
“I would say that as an engineer, especially in the construction field, experience is crucial, which is why firms tend to only hire engineers with a high amount of experience for senior project roles. And that’s understandable to me, because as much as you can go to school and read books, there’s no substitute for actually being involved in a project...” - Matlhodi Keaikitse
Government to Promote Introduction of Residential Development into the CBD
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
“In this line of work you need to put yourself in a position where you have interest and ownership Extract Seminar Paper Presentation by Jobe Ofetotse, DTRP of the projects you’re dealing with because structural engineering by Boidus Admin is a sensitive field in that we are dealing Introduction failings of the CBD concept but more with peoples’ safety. We are putting up Thank you to the organizers for inviting challenging to come up with solutions which are going to house lives DTRP to contribute to this important where problems havestructures been identified. A Successful CBD represents among other things; and highly topical seminar. That is what we hopeso theyou seminar will approach this profession can’t • A success CBD Image of the city and the country Felix Chavaphi Portfolio concentrate upon. as simply a job. You have to see it as a • Generation of the country’s prosperity of Botswana Library at a cost of P54 • Successful partnership between the Government & PVT[TOP] sector University In organizing it, BOIDUS have directly responsibility and a privilege.” Dimitri Kokinos: Portfolio Structuring Manager (Stanlib) million with Murray & Roberts responded to our concern that it is easy From a DTRP standpoint, the forum [BOTTOM] Gaborone - Tapa Moseki to be criticalTaxi and Rank identifyShopping perceived Complex >>> CONTINUED PAGES 08, 13, 18 >>> CONTINUED PAGE 04 Plot 7 at a cost of P2million with Murray & Roberts
>>> CONTINUED PAGES 03, 04, & 06
Renowned experts in branding, business and marketing.
KASANE tel:6250124 fax:6250528
departments with ambitions of creat-
ing similar entities. Boidus Focus met with BR Properties Managing Director Oarabile Zhikhwa to explore the brief history and long-term ambitions of her organisation.
>>> CONTINUED PAGE 05
LEFT: Felix Chavaphi, MIDDLE: Tapa Moseki, RIGHT: Matlhodi Keaikitse
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
TO COMMERCIAL
ANSWERS QUESTIONS.
PALAPYE tel:4920300 fax:4920721
HOUSING | page 16
PRACTICE | pages 14, 18
Buy or Build a new Home: The Pros and Cons
Disentangling the Web – A Look at Infrastructure Project Management
P8.00 (Including VAT) BOIDUS EXCLUSIVE >
by Kibo Ngowi & HK Mokwete
FIND CREATIVE
FRANCISTOWN tel:2412301 fax:2412308
The Idea of Eco Cities: Need for harmony between policy and green initiatives
“Public Piazza, Mixed Use Podium and Sky gardens coming to Gaborone”
by Kibo Ngowi & HK Mokwete
IDEAS EXPO BOTSWANA is an event designed to combine the best of creativity, business and technology in which participants are invited to give talks, do demonstrations, and show their work.
GABORONE tel:3951001 fax:3951003
BUILDINGS | page 06
Chavaphi, founder of Norcon Group; Tapa Moseki, partner at Engineering CBD Executive Seminar Event Felix Partners International; Matlhodi Keaikitse, partner at Ezra’s Contracting Services Realm of Splendor - Live, Work & Play With Breath taking Views
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
QUALITY PRODUCTS AND SERVICE FOR OVER 116 YEARS
NEWS | page 02 A Luta Continua on the Land Question Airport Roof Gone with the Wind
BOIDUS EXCLUSIVE FEATURE >
by Kibo Ngowi / H. Killion Mokwete
suppliers of building materials, hardware, industrial supplies & machinery
Registered at GPO as a Newspaper | Volume 3, Issue #2
Botswana’s Architecture design & Urban Landscape Newspaper | M A R C H 2 0 1 3
P8.00 (Including VAT)
BOIDUS EXCLUSIVE >
Red East Construction: Award Winning Chinese Contractor
win
OIDUS FOCUS
Meet three of Botswana’s best Event Feature: State of our CitiesBDC FAIRSCAPE PRECINCT, The rising engineers BOIDUS EXCLUSIVE FEATURE >
Interactive session for learning and networks.
Exhibition with the latest innovation.
Certification of attendance.
Latest trends and technology.
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
Birds-eye view
A Fresh Approach to Buiding a Home - Inside House Agolen II
by Leago Public Piazza
Sebina
As stakes an architect, opportunity to inopposed viewed, With high in the Botswana ofreality one area. to the way it is usually views from across the City. Boidus building offers, not only the as being static. There is no other ficedesign market,a Botswana Development was buildrecently given exclusive tour of Corporation’s is ofThe which been such the construction site to experience creation of aFairscape physical Precinct expression the Iconic ing tower typology thathas embodies a nosetbuilding to raise the barbut of also what the quality slowly emerging off the skyline first hand itself, possibility tion of architecture thanofthe house, the this exciting project as it office space is by delivering an AFairgrounds is setting unmissable becomes reality. for architecture to mould the life and most basic and primal form of shelter view of a gleaming honey comb grade mixed use development which memories of its inhabitants. Therefor human beings. will see work, play and live become lattice structure with unparalleled >>> CONTINUED PAGES 08, 13 fore, one could argue that architecture should be thought of as being alive as
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
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
>>> CONTINUED PAGE 14
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GUEST COLUMNIST P6
BOIDUS FOCUS APRIL 2015
The Real Estate Advantage:
Derive the Full Benefit of Your By Sethebe Manake
Property
Real Estate is a long term investment. I sincerely believe that as Batswana we understand the value of real estate in that it can neither be lost nor stolen; it is our children’s heritage. In our investment culture we understand the power of capital cumulative growth. We understand it very well from our historical culture of cattle rearing. With cattle it is simple – you start with a few heifers and then you rent a good bull until you are able to either purchase or grow your own bull. Then you just take care of your herd and watch the numbers grow exponentially year after year. The reason we kept cattle was simple; it served as our insurance to educate our children, to build our homes and communities, to marry our children and to provide for a need in our household. Every Motswana understands this very well. A cow was as such a valued property to accumulate. We have taken the principle as it is and transferred it to our approach to real estate. Since real estate does not reproduce we resort to the principle of accumulation, where we accumulate land, even when we have no means or plans to derive value from it. “I will sell it at some point and its value will be higher.” Fundamentally this principle is not flawed. However, it is not the best approach with real estate. Real Estate investment offers two opportunities of gains: income and capital growth. This is what makes real estate one of the best investments in the world; therefore, limiting yourself to one opportunity that is highly sensitive to external factors is definitely not the way to benefit from this asset class. Income growth from real estate is the one aspect of your investment you are in control of that is measurable and predictable. This comes from the income earning capability of your real estate.
That is, to evaluate an investment that you want to acquire, ask yourself the following questions: How much income can this property produce on a monthly basis? Who do I expect to be interested in occupying this property? How much can they afford to pay? How much rent have they been paying in similar properties? What makes my property better than the other properties? It is of utmost importance for us to be realistic in this assessment and not make a determination of how much we would like to charge but rather how much is practically achievable. Once you are in ownership you have the ability to derive the highest possible income by applying value adding, generating principles to running your estate. Reviving it, structuring your rental in a way that best positions the property, monitoring the expenses and conducting proactive maintenance are a few of the things that provide you with great income growth. When growing your portfolio, it is important to determine the impact of this new property on your existing portfolio. Will it increase the overall returns? Will it dampen them? Or will it just keep them constant? We must always look to improve the overall performance of a portfolio such that even when the cycle dips our investment continues to retain growth. Capital growth under this approach is the icing on the cake; some years it grows faster than anticipated and others it is slower due to economic growth factors. When the time comes for you to realise your capital growth, whether it is through sale or leveraging facilities, make sure you have fully benefited from the income your property is able to deliver.
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On Alchemy, Economics & Infrastructure Continued from PAGE 5
mostly concerning infrastructure and utility services that we more or less copied from the west. Obviously, not considering the problems developed countries faced with aging infrastructure networks and service delivery as well as the end cost for it when energy was eventually depleted, became expensive. By the late 60’s it was obvious that the infrastructure sector was falling apart in the west – maintenance was neglected and the cost of delivery escalated quickly, especially after the first oil bubble burst in the early 70’s. There were huge external costs never assumed and environmentalists started their whistle-blowing. For some economists the writing was on the wall. For example, E.F. Schumacher (with his famous book “Less is Beautiful”) advised that developing countries must find “an appropriate technology approach and localised production and delivery of service.” But the “appropriate” development authorities were handcuffed by their former colonial masters. And the western infrastructure warehouses were full of stuff to send to new “independent” countries, often almost gratis. The production of out-dated, conventional stuff could go on and support the workers at home. And developing countries were ever so grateful until they had to pay the full price. I know this game; when I was young the people on welfare received water and power almost gratis, especially pensioners like my grandmother (even a flushing toilet). But 25 to 30 years later the situation changed and people started to pay real costs, possible in countries of full employment and alert unions. Thus, we have out-dated (and inappropriate) infrastructure and service delivery systems in Africa and elsewhere among developing countries. More than a century old infrastructure models
from densely populated European countries are employed even in sparsely populated areas in Africa. When I arrived to Gaborone in early 1979, the town had its own electricity plant and there is no economy flight for 300MV from Morupule to Gaborone. The delivery system lost a third of its energy on the way here and another third was lost in imperfect western wiring in the consumer’s home. And now we must pay for it! We also discover that there is no quality in delivered coal burners for Morupule B – actually, we didn’t know that our low quality coal was never meant to be used in modern steamers (according to many engineers). Most of Chobe River will be needed to clean and upgrade the coal we now have to produce to export quality. And most of the world is moving away from burning coal as externalities are too expensive. It’s a sad story of jumping onto the wrong train, indeed. When we experience power and water cuts and blocked sewers we must not put all the blame on our utilities and its staff. The technology was wrong from the start, leading me to realise that the physical planning was also very wrong. But on this I remember that Gaborone was never meant to accommodate more than 25 to 30, 000 people. And then more “Gaborones” needed to be built and connected with communication. To me, that had been appropriate planning! In short, we jumped onto the wrong train and only a few stops from the end of the tracks. There is an immense task for planners and utilities in the near future but moving to Palapye on the same conditions we have now is not a solution. That’s an ostrich reaction. De-industrialization is on-going and we have an important discussion ahead!
Education P7
BOIDUS FOCUS APRIL 2015
Built Environment Career Guide 2015 By Arnold Tombo
Continued from the FRONT PAGE
UNIVERSITY OF BOTSWANA FACULTY OF ENGINEERING & TECHNOLOGY (FET) The Faculty of Engineering and Technology (FET) is dedicated to producing high quality engineering graduates who can adapt to the work environment and discharge their duties to the satisfaction of their employers and be responsive to the needs of the industry in all sectors of the Botswana economy. This will be accomplished mainly by providing study programmes designed to meet the need for highly trained manpower in required areas of technology and the environment. FET also aims: to respond to the needs of industry through research, consultancy, advisory and related services; to maintain a continuous dialogue with industry and other relevant bodies to determine and fulfil any needs which may be raised by industry from time to time; to provide access, with proper theoretical and practical backing, to recent developments in the technology sector and to prepare graduates for professional responsibilities; and to prepare FET graduates to pursue further studies in their relevant Engineering and Technology disciplines. COURSE ENTRY REQUIREMENTS For engineering programmes, students enter the programmes at Level 200, having completed Level
100 of BSc General (Mathematics, Physics, Chemistry and/or Biology) at the Faculty of Science. The general entry requirements for engineering programmes are at least a grade C in Mathematics and Physics, plus a pass in any other Science subject. For all other programmes, students enter at Level 100, having completed Botswana General Certificate of Secondary Education (BGCSE) or its equivalent. Specific details of the requirements for admission into the various programmes are outlined under each relevant Department.
Bachelor of Real Estate Duration: 4 years (10 semesters)
Bachelor of Land Management Applicants with an appropriate Diploma in land management, land administration, estate management, Geomatics, land surveying, cartography, GIS or equivalent and have a GPA of at least 3.0 or its equivalent may be admitted directly into level 200. Duration: 4 years (8 semesters)
B.Eng. (Construction and Engineering Management)
Bachelor of Science/Master of Arts Professional Degree in Urban and Regional Planning
Duration: 5 years (10 semesters)
Duration: 5 years (10 semesters)
Bachelor of Architecture
Bachelor of Geomatics
Applicants with credits towards a degree from other post-secondary educational institutions are eligible to apply and may receive advanced credit for their prior studies in comparable courses. A minimum of Grade C in Art or Design and Technology is required. All selected applicants are required to attend an interview with Department of Architect And Planning. Duration: 5 years (10 semesters)
BGCSE/equivalent with a minimum of grade C in both English language and Mathematics Duration: 4 years (8 semesters) The Faculty of Engineering and Technology offers MPhil/PhD programmes which are interdisciplinary. The Faculty also offers undergraduate programmes as follows: The Departments of Civil Engineering, Electrical Engineering and Mechanical
Engineering offer Bachelor of Engineering Degree programmes in Civil Engineering, Construction Engineering and Management, Geomatics, Land Management, Mining Engineering, Electrical and Electronic Engineering, Mechanical Engineering and Industrial Engineering. The Department of Industrial Design and Technology offers Bachelor of Design Degree programmes in Industrial Design and Design and Technology Education. The Department of Architecture offers a Bachelor of Architecture Degree programme in Architecture, a BSc/MA professional degree in Urban and Regional Planning and a BSc in Real Estate. Details of the requirements for admission into the various programmes are outlined under each relevant Department. CONTACT DETAILS: University Of Botswana Admissions, 4475 Notwane road Private Bag UB 0022 Gaborone, Botswana Tel: + 267 355 0000 Continues PAGES 10,11
Construction Insurance – Some Clauses & Extensions By Christopher Burton
section excludes property in the contractor’s custody and control and hence the need for the extension. Imagine a contractor having to put a window into a solid brick wall. The wall collapses as the hole is made. The surrounding property around the window is not part of the contract works (only the hole is). Nor is the surrounding property considered third party property so this damage would not be claimable under the works damage or liability sections of the policy. The damage would be claimable under this extension. In this article we will look at some of the clauses and extensions that may be required in a works damage policy. Principal’s Property or Surrounding Property Provides indemnity to the insured against loss or damage to property not being permanent or temporary works covered in terms of the main works damage section of the policy and which is in the custody or control of or being worked on by the contractor. Cover under the liability
Road Reserve & Servitude Indemnity This provides indemnity to the insured contractor in respect of his legal liability arising from any contractual obligation or responsibility to make good physical damage to any road reserve or any pipeline/electrical cable servitude directly attributable to a peril indemnifiable in terms of the works damage section of the policy. Remember, with an open trench for example, the insured contract works is only the U-shaped hole in the ground and not the surrounding soil.
When flooding removes the surrounding soil the contractor will be contractually obligated to restore the site to its original condition. This clause will pay for these associated costs. Work Away/Manufacturing Premises Under this clause the contract works cover is extended to indemnify the insured against physical loss of or damage to any of the permanent and temporary works whilst it is situated at any manufacturing or repairer’s premises provided there is financial interest in the property insured by virtue of ownership, pre payment or contractual responsibility to make payment. Marine Contribution Clause If after a marine transit and investigation it is not possible to ascertain whether the cause of such loss or damage happened prior to the termination of the marine venture, insurers will contribute 50% of the properly adjusted claim less 50% of the applicable marine deductible. Property Taken Over/Beneficial Occupation If the property insured under a contract works policy is taken over by the employer prior to final
completion of the project then such part will no longer be covered except as required in terms of the defects liability requirements of the conditions of contract. This is often very inconvenient from an employer’s perspective and it may even be impossible, for example, to insure part of a building. This extension therefore continues to insure the transferred property until the employer takes over the project as a whole. Employers Maintenance Where work is undertaken by the employer the insurers will indemnify the employer under the contract works section of the policy against loss of or damage to the property insured which arises within 12 months from the time the works are taken into commercial use but from a cause occurring prior to such taking into commercial use. It should be noted that these are but some of the additional clauses available in a works damage policy. Christopher Burton is an Underwriting Manager at BIC.
fEATURE P8
BOIDUS FOCUS APRIL 2015
Eviction Process in Botswana Continued from the FRONT PAGE
LEASE A lease is an agreement, written or oral, that regulates the relationship between the landlord and the tenant. This agreement should always contain at least four clauses: the parties to the agreement; the description of the property to be leased; the term of the lease; and the rental that is to be paid by the tenant and terms thereof. RIGHTS AND OBLIGATIONS OF THE LANDLORD VERSUS THE TENANT Common place is the tenant who does not pay his rental but varying are the reasons that the tenants tender as their defence for non-payment or late payment, ranging from the seemingly legitimate to the ridiculous. Examples to illustrate the above are that one tenant may feel entitled to withhold the rental because there has been no electricity in the premises for a large amount of time by virtue of the landlord’s failure to repair the electrical system in the premises; on the other hand a tenant may lose their ability to pay, loss of income and still remain on the premises because they have nowhere to go. In a myriad of situations that arise between landlord and tenant, tempers often flare and actions are taken, which may or may not be legal. The question that arises is: what are the rights and obligations of both parties concerned and what is the law on lease and eviction process? NOTICE OF EVICTION Often an irate landlord will go to his premises and without notice to the tenant, change the locks on the property thus hopefully forcing the tenant to come to the table and the dispute to be resolved. Fortunately or unfortunately, depending on which side of the coin you are at the time of the dispute, that action is illegal and in fact could land the landlord in a lot of legal turmoil.
involved in evicting a tenant in this country can
take up to a year to be finalised in some cases. Further, if the parties do not settle the matter, a trial has to be held; the legal costs that are paid by the Landlord in the process are often massive and the process tedious and thus encourages people to take the law into their own hands. The reason that the courts prefer to deal with matters of eviction cautiously is that they are hesitant to make someone homeless and wish to probe into whether or not the landlord has acquired the right to evict. Paramount is that the terms of the Lease Agreement between parties are followed and that PROPER notice is given to the tenant. WRIT OF SUMMONS Proceeding by way of action allows the court to fully deal with the issues, the main prayer being for the eviction of the tenant and collection of the arrear rentals and the ancillary matters being utilities, damages, levies etc. The matter can be fully ventilated and the truth of what is due to the Landlord
determined. The process is thorough and allows for every issue to be dealt with but the downside is that it takes too long. This was said in the case of MONU BUILDERS (PTY) LTD v DABO PROPERTIES (PTY) LTD AND ANOTHER 2007 (3) BLR 581 (HC) APPLICATION (MOTION PROCEEDINGS) Proceeding by way of application is a much quicker solution but it is limited if it is to be used by the Landlord who wishes to evict the tenant as soon as possible. An application is when a matter is argued primarily on the papers, on issues of fact. The applicant submits an affidavit and same is used to motivate the court to grant what the Landlord wants. It becomes that much harder for the tenant to argue with the facts that, for one, he/she is in arrears and that he/she has been given an opportunity to remedy and failed and that finally he/she has received proper notice to vacate. Often with eviction done by way of application, tenants rely on picking on issues of outstanding rentals and or other charges to delay the matter by defending on the basis that the Landlord is claiming more than the tenant owes. A
way to circumvent that may be to file an application for eviction separately; after successfully evicting the tenant, then one can proceed to institute a Writ of Summons to claim all other damages. The risks associated with this process are that because one is going by way of two different processes then the legal costs will be high. In terms of instituting process for your arrear rentals and other damages, the process will once again be long. The benefit is that one can evict quicker and put in a new tenant and have the property earn him money once again. Both a landlord and a tenant should find themselves to be responsible for fostering a workable relationship as theirs is one that cannot be easily severed, despite what they may feel once issues arise. The above is meant only as a brief introduction to theLandlord and Tenant relationship in Botswana. The information given is general and is not intended as legal advice. Itumeleng Tebagano and Ajit Williams are attorneys at Akheel Jinabhai & Associates.
Our precision simply comes standard..
This issue was canvassed in the case of SHIMBO MULTIPRINTS (PTY) LTD V PHETO 1998 BLR 234 (HC) and the position of the law is that individuals should not take the law into their own hands. A tenant who is living in the property owned by the landlord should be given a notice of eviction; most written leases stipulate how much notice should be given. In the event the Landlord does not issue out the notice the dispossession would be declared unlawful and the tenant would be entitled to restoration to the premises. Even in the event where there is no such clause the courts recognise what they deem “reasonable notice,” same is determined as one month for a residential lease and three months for a commercial lease. However, the above “reasonable notice” is merely a starting point and every lease’s “reasonable notice period” will be determined in accordance with the particular lease and a reading of the contract in total. Before one evicts they should always serve the tenant with a “notice of eviction.” In the event the tenant does not vacate by the end of the notice period then the landlord can proceed with legal action. Note: once the matter is before the court, the notice given to the tenant will be scrutinised to see if it is in conformity with the parties’ agreement and the law. EVICTION BY WAY OF APPLICATION OVER WRIT OF SUMMONS The general issue that landlords often haveoccurs when a tenant has been in breach for a long-term period but still the landlord has to go through a rigorous court process to evict them. Meanwhile, the rentals outstanding are mounting. The process
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For example, a slighted tenant may sue to be restored back into the premises as the lease has not been terminated legally or worse claim that s/he has suffered loss and/or damage to their property during the process of locking them out which the landlord would be liable for.
HOME IMPROVEMENT P9
BOIDUS FOCUS APRIL 2015
DIY Projects - How to Replace Ceiling Tiles with Drywall
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The ends of the drywall panels are flat, and will require a little more skill when “mudding.”
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Orient the panels with staggered end-seams to help achieve a smooth finish for the drywall ceiling. Continue working in this manner until the last drywall panel is put into place
1. REMOVE THE CEILING TILES Start by determining the dimensions you want Investigate how the ceiling tiles are attached. If they’re glued directly on, it will take some extra effort to remove them. If they were attached to furring strips, the job will be easier. Use a utility knife to score the tiles, then a putty knife to loosen and pull loose a tile for inspection (Image 1). Fortunately, the tiles in this home were attached using furring strips.
Use a pair of pliers to pull the old staples from the furring strips. Make sure the strips are left smooth. Anything left on them could create a bump in the drywall when it’s installed. Reinforce the furring strips by driving screws through them, and into the ceiling joists.
2. CUT THE DRYWALL
Take measurements to determine how much drywall is needed. The objective with accurate
4. CONCEAL THE SEAMS
To install the drywall, one person helps hold the board against the ceiling while two others drive in drywall screws 8” to 12” apart (Image 1). Use a cordless drill or screw gun.
It’s important to line up the long-side edges. The side-edges are tapered for smoother joints.
Once you have all the joints covered (Image 1), allow the compound to cure overnight.
For the second coat, spread the lightweight joint compound using a 10” knife. Also use the joint compound to conceal the screw-heads. For the third and final coat (Image 2), the process is the same. Feather the joint, and put a final coat over the screw-heads. Allow it to cure overnight.
To cut the drywall to fit, mark the length using a drywall square as a guide, score the line with a utility knife. Next, walk behind the drywall and snap it to break the core along the scored line. Remember to trim the paper.
3. INSTALL THE DRYWALL
6. Apply a Second & Third Coat of Mud
Again, let the compound cure for 24 hours.
measurements is to use as few boards as possible, and to make sure the ends of each drywall board are attached to the furring strips.
Begin removing the tiles. First, remove the old crown molding, then use a pry bar or clawhammer to pull the old tiles loose. This goes faster with two people or more, working on ladders from various points of the room.
Then center the tape in the mud and cover it with another thin layer of joint compound.
The most complex part of finishing the drywall installation is hiding the joints where the panels meet. Make sure you have plenty of drywall compound and drywall tape. Also make certain that you have both 6” and 10” joint-compound finishing knives (Image 1). Use the 6” knife to apply a coat of all-purpose joint compound (“mud”) to the joint (Image 2).
MAIN FEATURE P10
BOIDUS FOCUS APRIL 2015
Built Environment Career Guide 2015 Continued from the FRONT PAGE
SUCCULENT POTTED GARDENS Growing succulent plants in a container garden is easy and immensely satisfying. Succulent plants come in an amazing array of colours and leaf textures and combining them is fun and interesting. Colours and textures that you wouldn’t think would go together can be put into a beautiful arrangement. Perhaps more than with any other container garden, when using succulent plants, pot choice is key. Because the roots of succulent plants are relatively shallow, a bowl or dish can look great. Just make sure that your pot has good drainage or that you can put holes in it. There are hundreds, if not thousands of succulent plants to choose from and many have varying light and care requirements. It’s best to check the plant tag for specifics and make sure that plants in the same pot have similar needs. That said, contrary to popular belief, most succulents do best if they are in direct sunlight for only a few hours a day. Many need protection from getting scorched in the mid-day sun but almost all need some bright, indirect light. Succulents can actually suffer from sunburn so be careful when you first buy them to give them an adjustment period, during which they can get acclimatised, also called “hardening off”.
NEW ERA COLLEGE FACULTY OF ENGINEERING Generally, the ‘Built Environment’ refers to whatever nonnatural structure is constructed or erected within our Natural Environment, with specific reference to the global Construction Industry. At New Era College we offer Advanced Diploma Level programmes in our Construction Industry Department.
Advanced Diploma in Our Construction Industry Duration: 3 years The construction industry is one of the largest employers nationally and globally. The industry has a broad base of rewarding career opportunities available. The Construction Industry programme is very practical in its nature, giving you the necessary skills to achieve success. With an Advanced Diploma in Construction Industry the graduate will be able to: • Understand International standards in the construction industry • Have a keen understanding of the industry from all aspects • Evolve, evaluate, reason and make rational decisions and informed choices • With practical training and internship be marketable in the global industry Career opportunities in this field include: Site Supervisors/ Agents, Building Inspectors, Building Research, Quantity Surveying, Site Surveying to name a few.
Advanced Diploma in Electrical &
Electronics Engineering Duration: 3 years Engineers are in great demand the world over. The programme at NEC is designed to reflect international standards and is structured to have the opportunity to achieve remarkable success in the graduate’s career. With an Advanced Diploma in Electrical and Electronic Engineering the graduate will: • Understand International standards • Have a keen understanding of the industry from all aspects • Evolve, evaluate, reason and make rational decisions and informed choices • With practical training and internship, be marketable in the global industry Career opportunities in this field include Mining, Building Services, Power Stations, Transmitting and Distribution to name a few. In August 2015 we will be introducing the programme: B.Eng. Degree in Electrical & Electronics Engineering CONTACT DETAILS Plot 36158, Block 8, Gaborone, Botswana P.O Box 402134 Gaborone, Botswana Tel: +267 3933533/584 Fax: +267 3933541 Cell: +267 73933533/71374587 www.neweracollege.ac.bw info@neweracollge.ac.bw
TECHNICAL COLLEGES There are technical colleges which are available across the country in places such as Maun, Palapye, Selibe Phikwe and Jwaneng. They offer full-time academic programmes that are selectively designed and developed to meet set standards of prospective students and accommodate further studies. COURSES OFFERED: • Foundation in Electrical and Mechanical Engineering • Foundation in Visual Arts (sculpture, drawings and graphic design) • Foundation in Building Construction ENTRY REQUIREMENTS: • Both Government sponsored and private candidates should have credit in Mathematics and English
CONSTRUCTION INDUSTRY TRUST FUND The purpose of the Fund was to Finance a crash training programme to facilitate training, as a matter of urgency, for Batswana to be artisans and craftsmen, such as Bricklayers, Carpenters, Painters and it is aimed at meeting the needs of the building and construction industry without having to rely on imported skills. Gaborone is the main training Centre where potential trainees are screened and trained. The Centre caters for the building and construction industry, including Government departments and unemployed individuals mainly composed of school leavers.
Visit us for all your gardening requirements Gaborone Dam site, Machel Drive Call us: +267 393 1358 www.sanitas.co.bw
NAME OF THE COURSE: Courses include Bricklaying, Plastering, Carpentry, Plumbing and Pipe Fitting, Electrical Installation, Tiling, Painting and Decorating, Welding and Fabrication, Civil Engineering Construction; Site Surveying, Shuttering/Formwork, Steel Fixing, Scaffolding Erector, Concrete Hand, Heavy Plant Operator, Safety and Health, Supervision and Site Management, Estimation and Tendering. Other new trades are Rigging, Coded Welding, Project Management, Business/Key Skills and Grass Roof Thatching.
MOBILE TRAINING UNIT (MTU) The MTU is a section of CITF training department charged with the responsibility of skills training to the contractors onsite or closer to the site on a temporary basis until the manpower needs of the contractors are met. The unit will then relocate to other parts of the country where the needs have been identified for such skills training. CRITERIA FOR ESTABLISHING OF MTU The main criteria for establishing MTU is that there firstly should be a major building and construction project planned and approved for the area and an apparent shortage of building skills in the locality where the project is carried out has to be evidenced. Currently there is one MTU in Kazungula in the Chobe District. Other MTUs were located in Nata, Shakawe, Francistown, Mahalapye and Palapye.
COURSE ENTRY REQUIREMENTS: No specific qualifications are required to enrol at CITF, except that Batswana men and women need to be aged 16 or over and should be able to read and write. CITF gives priority to the building and construction industry. However, government employees and individual Batswana interested in the building and construction sector are encouraged to apply in order to acquire the skills necessary to assist in obtaining building and construction employment.
The main objective is to train un-employed school leavers (Youth) and re-tool those adults who were retrenched for the upcoming Kazungula Bridge project which links Botswana with Zambia and other projects in the Chobe District. The Kazungula MTU is currently offering skills training in: Bricklaying and Plastering, Construction Carpentry, Civil Construction, Wall and Floor Tiling, Paving and Scaffolding Erectors and Inspectors. These courses will each run for a period of 4 to 6 months.
LEVEL OF STUDY: All graduates are given a task success certificate which is listed with all successfully completed tasks that have been achieved by the trainee. After completion of CITF skills training, trainees are encouraged to go for testing at Madirelo Training and Testing Centre (MTTC) for NCC and Trade Test C, so as to get a National Certificate.
CONTACT DETAILS Construction Industry Trust Fund Private Bag BO 122, Gaborone Tel: +267 3911362 Fax: +267 3906380 Email: administrator@citf.co.bw Plot 18006, Samora Machel Drive Gaborone, Botswana
BOIDUS FOCUS APRIL 2015
Education P11
Built Environment Career Guide 2015 Continued from the FRONT PAGE
BA ISAGO UNIV. COLLEGE FACULTY OF THE BUILT ENVIRONMENT ARTS & SCIENCES The aim of the Faculty is to emphasise the application of theory to the real world of industry, commerce and research. This is done through rigorous curricula, led by experts in their respective fields, highly acclaimed academics and industry based specialists, providing opportunities for students to excel academically and professionally. The broad range of programmes provides unique research, teaching and learning opportunities tailored to undergraduates in an environment which enables intellectual choice, ensuring that graduates excel in the industry, teaching, research and innovative practice.
B.Com Real Estate Real Estate is increasingly becoming an established discipline in Botswana and the region as infrastructural development progressively becomes a national priority. However, training in Real Estate has not had the attention it deserves to match the skills requirements of developments in the sector. Since independence, for example, Botswana has not had any formal real estate academic programme offered locally. This programme is designed to fill this gap and will provide an opportunity to undertake complementary modules that are relevant in every work related environment, along with studies in real estate, making the graduate highly flexible in terms of job placement. ENTRY REQUIREMENTS: Candidates must have obtained at least five (5) Credits at BGCSE (or equivalent) and at least a pass in English language OR Candidates must have completed a relevant Diploma in Real Estate or its equivalent OR Special Entry: Candidates who do not have the minimum academic qualifications stated above but have a minimum of three years relevant work experience will be considered upon satisfying the requirements of the Academic Affairs Board. PROGRAMME DURATION: 48 months (4 years) for full-time learners and sixty months (5 years) for part-time learners (eight semesters in forty eight-months, consisting of six months each). CAREER OPPORTUNITIES: • Property Valuers • Property Developers • Facilities Managers • Property Managers • Real Estate Consultants
B.Sc. Quantity Surveying Quantity Surveyors operate in all sectors of the Built Environment and primarily focus on the financial management of construction projects. This Quantity Surveying qualification curriculum is designed to cover a whole range of skills and knowledge that modern Quantity Surveyors require to perform their work efficiently and effectively. All the basic skills of the Quantity Surveyor in commercial management of construction, quantification & costing of construction works, procurement & tendering, construction technology, contract administration & practice and project final control and reporting are dealt with in sufficient detail to meet the required competency levels of students and ensure they are employable graduates. ENTRY REQUIREMENTS Candidates must have obtained at least five (5) Credits at BGCSE (or equivalent) including mathematics and physics plus a pass in English language OR Candidates must have completed a relevant Diploma in Quantity Surveying or its equivalent OR Special Entry: Candidates who do not have the minimum academic qualifications stated above but have a minimum of three years relevant work experience will be considered upon satisfying the requirements of the Academic Affairs Board. PROGRAMME DURATION: 48 months (4 years) for full-time learners and sixty
months (5 years) for part-time learners (eight semesters in forty eight-months, consisting of six months each). CAREER OPPORTUNITIES: • Building and Engineering • Construction cost Modelling • Quantity Surveying • Project Management • Property Development
Diploma in Real Estate The programme is designed to enhance the competencies and upgrade the knowledge of Property managers, owners, consultants and practitioners. Changes in the socioeconomic and political environment make it essential for Real Estate Practitioners to stay abreast with developments in the property industry, specifically relating to marketing, laws, social dynamics planning and development, property management, financing and investments. At the end of this programme, participants will have an extensive overview of the real estate industry and be knowledgeable in real estate laws and regulations.
CONTACT DETAILS: GABORONE CAMPUS Plot 54831, Block 7, Corner of Western Bypass (Motsete Road and Mogoditshane Road), Gaborone Tel.: (+267) 3957744 • Fax: (+267) 3957709 • Email: gaborone.campus@baisago.co.bw MAUN CAMPUS Plot 394, Mabudutsana Ward, corner of Moremi 3 Road and Mogalakwe Road, Maun Tel.: (+267) 6867021 • Fax: (+267) 6867021 • Email: maun.campus@baisago.co.bw FRANCISTOWN CAMPUS Haskins Building, Plot 1602/3, Off Sam Nujoma Road, Light Industrial Site, Francistown Tel.: (+267) 2418780 • Fax: (+267) 2418778 • Email: francistown.campus@baisago.co.bw
ALUMINIUM & GLASS CENTER
ENTRY REQUIREMENTS: Candidates must have obtained at least four (4) Credits at BGCSE (or equivalent) including a pass in English language OR Candidates must have completed a relevant 12 months Botswana Training Authority (BOTA) recognised and accredited Certificate Programme in Accounting OR Special Entry: Candidates who do not have minimum academic qualifications stated above but have a minimum of three years relevant work experience will be considered. Recognition of Prior Learning (RPL) may be used as an instrument for further assessment of matureage entry candidates. [Note: All pre-service applicants must successfully complete the BA ISAGO six month Foundation/Access/Bridging Courses] PROGRAMME DURATION: The Diploma programmes will run for a duration of thirty months (2 years & 6 months) for full-time learners and thirty months for part-time learners (four semesters in twenty four months, consisting of six months each.) CAREER OPPORTUNITIES • Real Estate Agency • Auctioneering • Facilities Management • Estates Management
Certificate in Real Estate Certificate in Real Estate is designed for pre-service and in-service candidates who are keen to acquire knowledge and skills in order to acquire formal qualifications. Practicing individuals, from both the private and public sectors, will merge the practical knowledge they have gathered with up-to-date global trends in the Real Estate Industry. ENTRY REQUIREMENTS: Candidates must have obtained their BGCSE qualification and have achieved at least three credits and a pass in English Language OR Special Entry: Candidates who do not have the minimum academic qualifications, as stated above, but have a minimum of two years uninterrupted industrial experience in real estate will be considered. In such cases candidates will have to undergo interviews for in-depth assessment and meet the Academic Affairs Board requirements.
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Full range of Domestic, Industrial and Commercial Glazing, Aluminium Windows and Doors as well as Sliding Folding, Sliding Stacking, Frame-less Doors and Partitioning, Flush Glazing, Spider Glazing, Curtain Walling, Aluminium Cladding, Granite Cladding, Euro profile Doors & Windows (tilt & turn)
ONE STOP FOR ALL YOUR ALUMINIUM & GLASS REQUIREMENTS
PROGRAMME DURATION: 12 months. CAREER OPPORTUNITIES • Property Valuers • Facilities Managers • Property Managers • Real Estate Agents
POSTAL P O Box 402772 Gaborone Botswana
TEL (+267) 3938452 (+267) 3939264 (+267) 3939228
FAX (+267) 3938453
PROFESSIONAL PRACTICE P12
BOIDUS FOCUS APRIL 2015
Contractors, Subcontractors & Automatic Extensions
by Natalie Reyneke
In this edition’s column we will explore a contractor’s perspective on the implications of automatic extensions of time for subcontractors when the subcontract sets the time for completion “in accordance with the contractor’s programme”. Where a JBCC n/s subcontract agreement sets the time for completion “in accordance with the contractor’s programme”, does the subcontractor automatically get an extension of time when the contractor is granted an extension to the time for completion of the Works and changes his programme accordingly? Time for Completion and the JBCC – Generally: “Time for completion” in the JBCC Series 2000 Principal Building Agreement (Edition 4.1) (“PBA”) refers to the date for practical completion, where after the Contractor will be required to remedy any defects identified. The Contract Data [41.2.8] of the PBA refers to an “intended practical completion date” and records penalties per day for not achieving practical completion by such date. On the other hand, the Contract Data for the JBCC Series 2000 N/S Subcontract Agreement Edition 4.1 (“N/S Subcontract”) refers to “intended dates of completion” and provides for “interim completion” and for “practical completion” [41.2.8]. For the purposes of this article, it is assumed that the Contract Data for the N/S Subcontract does not provide a specified date for intended and/ or practical completion but provides that such dates are “in accordance with the contractor’s programme”, as happens in practice all too often. The Programme: The programming clauses in both the PBA and the N/S Subcontract do not specifically state that the parties must adhere to any programme. The
purpose of the programme is to demonstrate how the parties intend to execute and complete the works and to enable a principal agent to monitor the progress of the works. There are obligations on both the contractor and the subcontractor to modify the programme. However, the modification of the programme in itself does not change the contractual dates for completion. So if the contractor and the subcontractor have a discussion regarding revisions to the programme, is this discussion and subsequent revision to the programme enough to entitle the subcontractor to any extension to the time for completion that he may require as a result of such revision? The N/S Subcontract has very specific conditions (found in Clause 29) regarding revisions to the interim date for completion. Clauses 29.1 and 29.2 set out the circumstances where the subcontractor is entitled to a revision of the date for interim completion, either where the N/S contract value shall not be adjusted, or the N/S contract value shall be adjusted. Should there be any requirements for the subcontractor to extend the interim completion date, he has to follow the process contained in Clause 29. It is not an option. This is confirmed by the provisions of Clause 29.4.3, which requires a claim for revision to the interim completion date to be submitted. If the claim is not submitted timeously, such claim lapses and there shall be no revision to the interim date for completion. As soon as the subcontractor becomes aware of an event that in his opinion will cause a delay to interim completion, he has to comply with Clause 29.4. This means that once it is established that any programme revisions will require a revision to the date for interim completion, the subcontractor has to submit his notice of intention to claim, within the time frames in Clause 29.4.3. This flies in the face of a presumed automatic extension of time. No
amount of discussion, consultation or agreement on a programme can revise the subcontractor’s date for interim completion. In fact, Clause 29.2.3 provides that delays to interim completion caused by “contractor’s instructions not occasioned by the default of the subcontractor” entitle the subcontractor to a revision to the date for interim completion AND revision of the N/S contract value. Any revisions to the Subcontract programme can be read to be an instruction from the Contractor. A Clause 29.4.3 claim must be submitted by the Subcontractor within 15 working days from the date upon which the Subcontractor became aware or ought reasonably to have become aware of the potential delay caused to its interim completion date as a result of such instruction. What exactly would the date of interim completion be if the date in the Contract Data is recorded as being “in accordance with the contractor’s programme”? The first accepted programme usually represents a “baseline” against which the progress of the works and events of delay may be measured. This baseline programme represents the date for interim completion and it is this date that should be revised, under the auspices of Clause 29. So now that we have clarified that the programme and the date for interim completion and revisions thereof are two separate concepts under the JBCC and are administered very differently, can a subcontractor surprise the contractor with additional costs when he acts in accordance with the contractor’s “extended” programme but fails to contractually revise the date for interim completion? No, he may try, but the wording of clause 29.4.3 is clear: If no claim is submitted timeously in terms of Clause 29.4.3, the claim lapses. This clause may refer to a claim for a revision to the date for interim completion but ultimately how would a
subcontractor justify any adjustment to the Contract Value if no revision to the interim date for completion has been granted? With regards to expense and loss of the Subcontractor (for example for scaffolding erected that may have to remain erected for a longer period), this has to be claimed under Clause 32.5. This, at least, puts the contractor in the position that he will be aware of the additional costs as they happen and may have the opportunity to mitigate such additional costs before they escalate out of control. No surprises for the contractor after the end of the project at least! If, during the execution of the n/s works, the subcontractor suffers a delay and requires an extension to the time for completion in accordance with the contractor’s programme, what then? In this scenario, the time for completion of the subcontract works does not automatically extend. The N/S Subcontract contains specific procedures for a revision to the date for interim completion. Upon submission of a successful claim, the contractor will be forced to shift the time for completion of its programme to cater for the time for completion required by the subcontractor. Conclusion: In conclusion, when the interim completion date of a N/S Subcontract is “in accordance with the contractor’s programme” it is a common misconception that the time for completion of the subcontract works shall automatically shift in accordance with such programme, as and when amended by the contractor. However, this is not the correct interpretation. The programming clause and the clause regarding revision of the date of interim completion are two separate and distinct clauses, each having their own administrative function. Any revisions to the date for interim completion by the subcontractor have to be processed in accordance with clause 29. If an extension is granted in accordance with Clause 29.2 the tractor is entitled to Preliminaries in accordance with the option that he has chosen in accordance with clause 32.12. If he incurs unexpected Loss and Expense he has to comply with clause 32.6 and can claim in accordance with Clause 32.5.
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GUEST COLUMNIST P13
BOIDUS FOCUS APRIL 2015
No Business Like Show Business By Zanele Tumelo
to distribution. Once released in the market, the public response is monitored and evaluated for further development and creative opportunities. In most cases, artists end up using the limited resources and connections they have, multi-task and compromise their own personal budget, time and energy. Artists that grasp and put in the work required often go on to produce art that not only brings a spotlight to their investors and themselves but also to their country as they present their works around the world. The creative industry doesn’t just bring national fame but also has the ability to contribute to
a country’s GDP and national development. Through creating employment opportunities, it plays a positive role in employment creation and poverty reduction. In fact, this industry has an economic ripple effect. Take festivals as an example. It is not only the artists that benefit. Those in travel, accommodation, catering, tourism, culture and cultural exchange, to name a few, also tap into the commercial and social value of art. It also provides a platform for cultural exchange and avenues for diplomatic relations. It can further be used as a tool to teach, influence and incite behaviour change, and is therefore able to address various social and health problems. It is an industry with flexibility that allows it to stay relevant re-
gardless of time and carries a powerful ability to touch people on an individual and personal level. Like other sectors, the creative industry also needs the right framework, policies, economic systems, mind-sets, effective business structures and practice in order to thrive. It’s ironic how we hardly ask for a discount or free service when making a doctor's appointment or when we apply for school or eat at a restaurant but are quick to do so in certain industries, even when the value is worth the pay. The artistic aspect in creative trades often upstages the commercial element of the industry. The artists’ vision is not just a painting, photograph, theatre, dance or music. It's a potential catalyst for economic and social well-being in a variety of ways on an individual and mass scale. The creative industry doesn't just glitter; it is truly gold. The industry is a mine filled with opportunity.
That moment when you are so moved and full of emotion you can't help but rise to your feet and applaud. Jubilance echoes throughout the hall as spirited cheers and the sound of whistling fills the room. The colourful lights flash as the artists take their final bow and applaud you for going on a journey with them. In this journey they made you smile, laugh, cry, dance and you even sang along. The artists also surprised you and sometimes shocked you, stirred a bit of nostalgia, lifted your mood, caused you to think and reflect. They stimulated your mind, body and emotions. Their work has the potential to even go as far as changing your life. This is art. Let's go back in time some hours, days, weeks, months and even years, to the birth of creative works. Ideas continuously flow and sometimes avalanche within the artist’s mind. You may have even seen it happen before your very eyes. On occasion the artist will pause in mid-action in true statuesque form lost in deep thought. Sometimes they'll stop mid-sentence in frantic pursuit of a pen, something, anything that they can use to note their artistic eureka. And just as they've turned off the television to go to bed, it can even keep them up all night or wake them from sleep. For when inspiration calls one can't help but answer. Now the artist has their big idea and scrutinises it repetitively until they’re satisfied. They tell their friend or colleague about it, who then laughs and tells them that their idea is impossible or would just never work. Others are unable to fully grasp the artist’s vision or see the potential value it can instil. Undeterred, the artist pursues it anyway. They knock on countless doors, entering each with the hope someone will connect with their vision and help make it a reality. Some do and even get more excited about it than the artist but ultimately choose not to contribute because who has ever heard of investing in art? However, there is good reason for the name show business. The applause for any art form goes beyond a synergy of talent, concept and artistic design. The final product you see, like any product or service in industry, also went through a business model and commercial process. Much preparation and research is involved before the product finally reaches the market. A concept is developed, scrutinized and tested, redeveloped and further scrutinised and tested. Most often than not, the production process involves a team of artists with various specialised skills, each contracted to play a crucial role in the development of the product. In addition to skill, there are rental, resource, travel, administration and various other costs incurred during the development of an artwork. Every detail of its design, function and process is thought through and formed with purpose. A communication strategy to promote the product is implemented prior
INVITATION FOR EXPRESSION OF INTEREST (EOI) TO RENT SPACE FOR PROVISION OF SHARED AMENITIES SERVICES WITHIN THE BOTSWANA INNOVATION HUB (BIH) ICON BUILDING Applications are invited for “Expression of Interest” – EOI from reputable operators and management companies to provide services for restaurants, coffee shops, gyms or wellness centres, postal services, Banking and ATM services, and many other complementary services that can provide a ‘work, live, and play environment’ within a Science and Technology Park. The building is currently under construction and will be completed in 2016. BIH is seeking to engage operators for the above mentioned services. The appointment of the operators will entail a prequalification process. The preferred operators will be required to rent the available spaces.
THE ICON BUILDING The building design concept is a GREEN building that will generate the right environment for its customers and provide modern high quality premises that are easily adaptable. The Icon Building entails a multi-use development with shared amenities within a garden Hub concept and an International Ampi-Theatre meant to host significant International events. The Icon Building is within a gated environment located in close proximity to the Diamond Trading Centre, Sir Seretse Khama International Airport (SSKA), and the
Maranyane House Plot 50654, Machel Drive Private Bag 00265 Gaborone, Botswana
Special Economic Zone (SEZ) development node of Botswana. The entire building measures approximately 23000 square metres of commercial development and will accommodate investors/tenants within sectors of Biotechnology, Information Communication Technology (ICT), Energy and Environment, and Mining Technology sectors, as well as an Entrepreneur Development Centre commonly known as an Incubation Centre. The perspectives of the building can be viewed on www.bih.co.bw
SUBMISSION OF EXPRESSION OF INTEREST Submissions of Expression of Interest shall be delivered to: First Floor, Botswana Innovation Hub Offices, Maranyane House, Plot 50654,Machel Drive, Fairgrounds, Gaborone not later than 10:00am on th Monday 13 May 2015 or email the documents to marketing @bih.co.bw. For enquiries call +267 3913328 or email info@bih.co.bw General enquiries or queries regarding any part of the EOI may be addressed in writing to: Ms Boipelo Magakwa and Nkagelang Mothanka, Fax Number +267 391 3289, Botswana Innovation Hub Offices, Maranyane House, Plot 50654, Machel Drive, Gaborone or email boipelo.magakwa@bih.co.bw or nkagelang.motlhanka@bih.co.bw
Tel: +267 391 3328 Fax: +267 391 3289 Email: info@bih.co.bw www.bih.co.bw
GUEST COLUMNIST P14
BOIDUS FOCUS APRIL 2015
Design Pad:
Office Interior Design Matters By Tshepiso Motlogelwa, interior designer- tsmotlogelwa@gmail.com
Discussing The Importance of Office Interior Design Monica Lai, an Interior Design professional and the Director of interior design firm Workspace,
How do you use design to communicate the brand of a space occupied by a corporate entity?
employee wants to be and association with it is graded at earning a salary only. The office space design therefore influences the employees professional beheviour and how they present themselves; their minds are not fully incorporated into the space because it does not match their potential work capacity.
ML: Designers should know that branding is vital to the success of a business – branding is what a business represents and the image which is displayed to the public; it is about what the business stands for.
Do your clients generally understand the importance of using supportive furniture, such as an ergonomic chair with proper back and head support, to help increase productivity and efficiency?
Design will help to express the brand and the business values of a client, the product or service a business is selling and how these elements are perceived by customers and clients so this exercise is increasingly vital. Therefore, the capacity of good and efficient office design to communicate messages of this nature has become critically important. A brand has two roles: persuading outsiders to buy and insiders to believe.
ML: In general, clients do need to be informed and educated about all aspects of design. Once this task is achieved, it is usually easier for clients to embrace the importance of good design and space ergonomics. Space ergonomics are not only confined to furniture, but, indeed it is a concept which needs to be developed throughout the entire workplace space arrangement and staff attitude (See sidebar on The Ergonomic Aspects of an Office Space).
Good design allows projects to rise above the general market. It grants trademark value and it heightens an owner or tenant’s market status. It positively shapes public perceptions and it helps anchor, safeguard and even increase business values through enhanced performance, amenity and image. It is about adding value to the business. Companies investing in quality design recognise that there are benefits to such investment, not only in the overall image of the business, but in the productivity and well-being of its employees.
Therefore, ergonomics remains one of the most important aspects in design development; it involves adapting jobs and workspaces to the worker. By applying ergonomic principles, the employer can improve its workplace and positively affect the employees, both physically and psychologically.
explores the importance of a well designed office space in an interview with Boidus Focus.
What effect do you think the overall look and feel of an office space has on the employee? ML: Office design can have an impact on business performance. Factors of business performance within a well-designed office space can influence productivity, motivation and preservation, knowledge and skills of staff, innovation and creativity in the workplace, responsiveness to business or technological change, customer attraction and retention; design will also help optimisation of total occupancy cost. The space that an organisation occupies sends a message not only to staff but also to external parties, regardless of whether this message is recognised and managed by the organisation. External expression embraces both communication and branding. The relationship between the office design and the employees’ productivity is influenced by a number of factors, which are upon the designer to incorporate. A space influences humans mental status, actions, abilities and performance; therefore better outcomes or results are assumed to be influenced by a better workplace environment. A well-designed workplace can nurture creativity and boost employees output. Different organisations have different office designs; every office has unique furniture and special arrangments, lighting and heating quality and acustic response. A space that promotes solo concentration and collaboration requires good balance and proportion; therefore office space design has to promote an ideal work environment. Productivity may improve when workers are in an environment that matches what they do. An untidy and chaotic office is the last place an
The reception area is the first access point for both employees and clients when they enter a company’s premises. What is the importance of a reception area’s design in terms of both customer perceptions and employee productivity? ML: In today’s competitive environment, employee productivity is an essential element of a company’s success. Employee productivity can be significantly hindered by high levels of stress experienced in the work environment. In addition, poor indoor air quality contributes to deterioration of employee health and well-being, which further reduces productivity. The objective is to explore interior design techniques that may reduce employee stress and enhance productivity while using environmentally responsible materials and furnishings. Space Planning of an office environment, for example, is important and creates the good foundations of all ergonomic design aspects which will improve and stimulate the well-being and productivity of the employees. An office reception area is like a business card; it is the first impression you will give to any potential client or investor. You need your visitors to feel welcomed and relaxed. You might consider investing in a television set and keeping it on interesting stations such as Travel Channel or National Geographic, something to keep a client’s mind engaged in relaxing images. Consider hiring a designer to challenge the look of your reception area; the task is to decorate the walls with relaxing colours or images that reflect your Company Trademark; let the visitors’ chairs be comfortable, spacious and steady, upholstered with soft-touch fabrics and stimulating colours. Consider removing the overhead flourescent lights and using low-voltage downlighters or lamps instead; lay out magazines on the side tables such as Travel and Leisure, Golf and others. Make an effort to attact clients to come back often. Create an ambience which refelects your company brand
Why Office Interior Design Matters Not only can a well designed office impress clients and give your business credibility, it is also critical to the productivity and efficiency of your employees. Good office interior design brings together form and function to make your office inviting, aesthetically appealing and also comfortable, all at the same time. The lighting, the furniture, the colours, the finishing accessories and how it’s all positioned matter; everything needs to work in unison. Human Resource Specialist Tumisang Sono believes that a safe and comfortable work environment is important for improving employee morale along with a clear job description, a good team fit and a supportive work structure. Sono says, “Office space has a significant bearing on the psychological identification and engagement of the employee.” “The look and feel of the office communicates to employees what managers often struggle to communicate; it connects employees to the gaps and assumptions in the company’s code of conduct.” “The office must project the values, vision and overall brand of a company as this will enable employees to extend behavior towards customers and other stakeholders that upholds the brand; as we know, behavior builds culture which really defines the service offering of the organisation,” concludes Sono. and boosts confidence in your staff working in this particular area; a warm and appealing set-up will make the receptionist feel comfortable and confident in receiving visitors and in presenting her professional abilities. Do your clients always understand the value of interior design in a corporate space beyond its value as a mere cosmetic accessory? ML: First, I think we should contemplate the difference between an Interior Designer and an Interior Decorator. The Interior Designer is a trained professional who creates and designs interior spaces which are mainly functional and aesthetically attractive. An Interior Decorator views interior design with a largely cosmetic approach using decorative elements to merely rearrange existing spaces. Therefore, when planning a new office space or renovating an existing one, the investment involved in the exercise is considerable. Wrong decisions could leave Clients with expensive mistakes long after the project is completed. Consulting with a skilled professional with the requisite quali-
fications, resources and expertise will ensure that the work is done right, within budget and that the client’s expectations are delivered on time. A good design approach will provide clients with a wide variety of choices throughout the design process, ensuring that the new space will reflect the client’s unique personality and create elements of unpredictability, adding subtle details that spark interest, make you and your employees want to be there, raise spirits and help boost productivity. In conclusion, a successful interior design project is a cooperative effort between the Client, the Designer and other professionals; it is a sharing of ideas and a consensus of minds. Clients understand their needs, their desires and their corporate climate better than anyone else does. The Interior Designer will understand how to give life to those visions. Each project must be focused and unique, a journey with a balance of aesthetics, functionality, ergonomics and economics to suit people’s corporate culture and personal perception. Continues PAGE 15
(monthly publication, 3 copies /issue. P540 /year (exvat)
GUEST COLUMNIST P15
BOIDUS FOCUS APRIL 2015
Design Pad:
Office Interior Design Matters Continued from PAGE 14
The Ergonomic Aspects of an
Office Space Info and image courteousy of Workspace
The Importance of
Colours in an Office Environment
The use of Colour in different areas is an important aspect of office design. Colours provide a dependable, predictable and economical approach for employers to deal with stress. Here are a few different colours and the psychological effects they tend to have when used in office settings. Violet is considered to be the most restful colour since it causes a decrease in blood pressure. However, it is not viewed favourably by most people as a wall colour so an employer might use it as an accent colour to reduce employee stress. Blue is the best colour for break areas since it promotes relaxation and it is also a favourite colour of most people. A blue environment can also help reduce headaches and hypertension. Green is considered to be in the middle of the spectrum of stress reduction colours. One of the
problems with green, however, is that it is used frequently in hospitals, schools and government buildings, which hold unpleasant associations for many people. Yellow when used on walls and floors might increase overall frustration. It tends to conflict with peoples’ natural inclination for earthy tones and more relaxed forest tones. Orange and Red can increase the heart rate. Therefore, these colours should not be used in break rooms and relaxation areas.
for the employees. Currently, blues are taking on a sea glass-type hue that is very calm and cooling. Skin tones, much like colours that can be viewed on a make-up counter, are being used in varying combinations to create soothing warmth. It is also important to remember that no single colour stands alone in an overall stress management programme. Colours must be mixed, blended and matched. Most importantly, colour combinations must be kept simple since too many colours can be overwhelming and may actually increase the stress levels.
Accents of Red in a conference room might increase the “good stress” since it will increase the heart rate and the energy level that is required for a productive meeting. Colour influences attitude and comfort level
Image courteousy of Workspace
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Ergonomics reduces strains such as physical discomfort, fatigue, and tension. Promoting good posture, for example, can play an important role in reducing worker fatigue and improving productivity. Poor posture, stress on the muscles, unnatural setting of hands and arms, static loading of the neck, and pressure on the upper back and lower body all contribute to pain and illness. Ergonomic designs that alleviate such effects are adjustable chairs, appropriate wall colours and work area design and all these elements can lead to stress reduction. It has been recognised that ergonomic chairs continue to be in demand due to reduction in employees’ stress and injury as well as enhanced comfort and good posture, which can significantly impact a company’s productivity. Some suggestions we should consider when seeking to improve the ergonomic aspects of our work space include: »» Provide chairs with range of motion. These include vertical, horizontal and back adjustments. Unquestionably, one of the most comfortable office chairs still remains the Herman Miller Aeron, described as “an extension of the human anatomy” echoing the body’s movements and anticipating its needs. »» Give employees options in furniture shapes, sizes, and arrangements, based on their height and the task that they will be required to do, such as lifting, filing, word-processing, talking on the phone, and so on. »» Be aware of environmentally suitable products for workplaces and human uses. »» Encourage moderate exercise during the entire work day. »» For computer users, consider buying large monitors, footrests, ergonomic keyboards, and wrist support devices. »» For heavy phone users, provide headsets for hands-free talking. »» Install high-performance acoustical ceiling systems. The materials in the ceiling should be able to absorb sounds coming from other adjacent areas. »» Place carpeting or other sound-damping flooring. »» Include designated “quiet rooms” within the office space where employees can work quietly if they need to concentrate.
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PROFESSIONAL PRACTICE P16
BOIDUS FOCUS APRIL 2015
What Project Owners should be aware of
when buying their surety bonds Based on the essay“Construction surety bonds: buyers beware” by Scott W. Davis, Bricker & Eckler LLP.
If you’re in the market for construction surety bonds, let this article serve as a cautionary tale. Not all surety bonds are the same. Some types of surety bonds offer only limited protection, while others may impose strict limitations on when and how an owner may file a claim against the bond. Generally, a surety bond is an obligation by which one party (the surety) agrees to guarantee performance by another (the principal or, in our case, the contractor) of a specified obligation for the benefit of a third person (the obligee or owner). There are three general types of surety bonds and their names are indicative of their functions: (1) bid bonds, (2) payment bonds and (3) performance bonds. Bid bonds guarantee that a contractor will honour its bid, commonly up to a certain percentage of the bid or a prescribed
amount by the procuring entity depending on the value or size of the bid. Payment bonds guarantee the contractor’s payment of its obligations to subcontractors, labourers and suppliers. Lastly, performance bonds provide financial assurance that the contractor will perform its obligations to the owner under the construction contract. When evaluating the type of surety bond to be used on your next project, construction owners should always evaluate three key provisions of the surety bond: (1) notice of claims, (2) time limit on claims and (3) surety takeover obligations. The obligation of a surety to investigate a claim typically kicks in upon the default of the contractor. It only makes sense that an owner would have to tell the surety if the contractor is in default.
Some forms of surety bonds, however, impose strict notice requirements on how the surety is to be notified of contractor defaults. For example, one commonly used surety bond requires the owner to first send a letter to the contractor and surety informing the contractor that the owner is considering declaring the contractor in default and then arranging a meeting between the owner and contractor within a certain number of days of the letter being sent. Next, the owner must formally declare the contractor in default in writing and terminate the contractor’s right to complete the project. Lastly, the owner must agree to pay the balance of the contract price to the surety. Only then will the surety investigate and possibly pay on the claim.Although such a procedure may seem draconian, courts will strictly enforce these notice requirements.
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.
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
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BECI is a subsidiary of Botswana Development Corporation
Example case 1: In Safety Signs, LLC v. Niles-Wiese Construction Company, a contractor working
on the construction of an airport runway had a payment bond that required its surety to pay its subcontractors if the contractor did not. One subcontractor sent a notice of payment bond claim to the contractor’s primary business address rather than the address listed on the payment bond, as required by the applicable statute. Even though the surety agreed that the subcontractor had completed its work and had not been paid in full, the subcontractor could not recover payment from the surety because it did not strictly comply with the notice requirement in the statute and this defect could not be waived. Another key issue to consider is the time period during which claims can be made on the surety bond. Some Performance Bonds, for example, require that legal proceedings under the bond be instituted no later than two years after the contractor stopped working on the project. While other Payment Bonds require that legal proceedings occur no later than one year after the contractor finishes work on the project. When a contractor is found to be in default by the surety, the surety typically has three different options under the terms of most performance bonds: (1) pay the owner for its damages in an amount up to the penal sum of the bond, (2) tender a completion contractor to the owner or (3) finance the defaulting contractor to complete the project. If an owner has gone through the process of declaring the contractor to be in default and terminating its contract, the third option (i.e., letting the defaulting contractor finish the job) may not be that appealing to an owner. Depending on the language of the bond, however, an owner may be stuck with such an outcome. Example case 2: In St. Paul Fire & Marine Insurance Co. v. VDE Corp, the owner of a construction project declared the principal contractor in default after the contractor refused to complete its obligations in the contract, did not work at a reasonable pace, abandoned work on the project and insisted on collecting payments that were not yet due. The owner then requested that the contractor’s surety perform its obligations under the bond by completing the work. The owner also informed the surety that it was opposed to having the defaulting contractor complete the job. The surety argued that the owner was therefore in breach of the bond terms and the surety would no longer have any obligations under the bond. The court agreed, holding that the owner’s refusal to allow the defaulting contractor to complete the work was a material breach of the bond because the language of the bond placed no restrictions on which contractor the surety could use to complete the project. Construction owners may avoid this result not only by selecting a form of bond that does not contain limiting language, but also with properly worded construction contracts. This is because performance bonds will commonly incorporate the language of the underlying construction agreement between the owner and contractor. Construction owners are thus advised to specify duties of the surety in their contractor agreements, including time frames for investigation of a claim and limitations, if any, that the owner may want to impose on possible takeover contractors tendered by the surety. For private construction owners, there are many different options available for bonding. Owners are warned to closely read the language of the bond before agreeing to use a certain type of bond for their construction project. Carefully crafted contract provisions will also allow owners to shift the risk of loss to the surety.
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BOIDUS FOCUS APRIL 2015
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EDITOR’S NOTE P18
BOIDUS FOCUS APRIL 2015
Property Development Property Acquisition Property Sales Property Lettings
EDITORS NOTE
No More Room for Growth; So What Next for Botswana’s Property Market? By H. Killion Mokwete, RIBA Chartered Architect
At the top end of the property market sectors such as retail, office and residential, the jury is already in that the limit is within reach. The fast paced development of the newCBD has meant that the office space has been maxed out with A grade offices becoming available in that area, as well as in the Fairscape Precinct and Kgale Mews; and now low end offices becoming available in inner city locations as the blue chip tenants continue to migrate to those new high-end spaces. We have recently seen the likes of Barclays, FNB and BDC vacate old properties for spaces at the CBD and the Fairscape Precinct. On the other hand, high-end residential property has been pushed to the limit with the developments of gated communities in areas such as Phakalane, Mokolodi and others. The demand for high-end residential property faces limited growth, especially as banks’ appetite for financing property has recently seen a drastic decline. The question therefore is: with all the property sectors nearing peak, where is the room for growth? Part of the biggest challenge and in fact the biggest Achilles heel of Botswana’s property market is the
lack of quantifiable data to aid investment decision-making. Investors are faced with serious challenges in speculating on which way to put their money, especially when signs of market stress are evident. Therefore, based on the available facts including: lack of access to mortgage financing for the majority of income earners (over 60%, FinMark); high property rental prices, especially in Gaborone; and low provision for affordable housing units, it is safe to speculate that the only current feasible area of growth in the Botswana property market is residential development, especially in the affordable housing segment. The Managing Director of listed entity RDC, interviewed in this edition of Boidus Focus, also points to his company’s strategic shift to this sector. However, for this sector to be seriously exploited, key issues need to be resolved, such as government’s role in both facilitating and pursuing development. Costs associated with servicing and financing potential affordable property need to be addressed. The demand for affordable housing will remain high as long as the cost of developing affordable housing units remains unsustainably high.
BOIDUS TEAM April 2015 MANAGING EDITOR
H. Killion Mokwete
Taelo Maphorisa
STAFF WRITER
SALES
Keeletsang Dipheko ACCOUNTS
Ngwewabo Mokwete
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BOIDUS FOCUS APRIL 2015
ADVERTISING P19
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ADVERTISING P20
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