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Bobtons Construction
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The high-value end of the South African housing development market has proven surprisingly robust through the recent economic uncertainty, thanks in part to smart planning and green investment. Jason Truscott of Bobtons Construction and Developments explains how his company is thriving in the current environment.
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obtons Construction and Developments is one of a number of firms dealing in high-value, high-tech construction and development in South Africa. The company trades in advanced green home improvements and accessories, with Director and MD Jason Truscott saying they are “right at the forefront” of the field of green technology.
Green revolution
“The green business is very well positioned,” he adds. “The turnover of investment is about five years, and it’s definitely something people are moving more and more towards.” Jason’s
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wife Katie Truscott is a partner in a green business called Green Leaf Alternative Solutions. Green Leaf works closely with Bobtons, and assists with providing their clients with photovoltaic solar panels and grey water systems, as well as other high-tech green amenities. For many clients these are not luxuries but essentials – South Africa’s historic problems with power generation and supply mean that these systems can be vital for keeping the lights on. Unsurprisingly, interest has been high despite steep unit prices. Truscott expects the price to fall fairly rapidly for these products, “and once it does they’ll fly”.
Business building
Bobtons’ services are split between construction and development. Bobtons’ construction specialism is in
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one-off, high end homes and properties, with the occasional commercial contract, with current projects including a church complex that will seat 2,500 people. On the development side of things, Bobtons provides turnkey solutions to property developers, with pricing designed to address currency fluctuations. In highvalue transactions like these, tracking the relationship between the rand and the dollar is vital. Bobtons gets around this problem in several ways, including sourcing and using local materials where possible and using a two-step pricing system. “We would build a 2000m2 house, that’s 22,000ft2, which can take two years,” Truscott says. “If the rand moves from 12 per dollar to 14 per dollar, with inflation on top of that, it becomes a lot
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“The green business is very well positioned… the turnover of investment is about five years, and it’s definitely something people are moving more and more towards
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more expensive for the person building.” To get around this problem, Bobtons offers pricing split into structural costs and provisional costs. Structural costing pays for the house itself and the construction, both of which are easy to price in a stable
“It’s something that will change the way the world builds. It will revolutionise green worldwide manner. Provisional costing covers internals and extra items such as kitchen fittings and internationallysourced technology and fixtures. As such Bobtons can secure a price for the longer parts of the construction process and modify their costs when adding the final touches.
Self-sufficient homes
Bobtons demonstrates the opportunities inherent in construction in Africa, such as the continent’s new demand for high-value housing due to the growth of an affl uent middle class. One ongoing project is a set of 306 ‘walkup’ fl ats being built by a real estate developer in South Africa. The development is planned to be a high-density residential area and designed around self-sufficiency. The fl ats feature automatic lighting and systems to conserve power, and are nearly entirely self-sufficient, relying on the local council for only a few services. “That’s what the people want,” Truscott explains.
Building a future
Despite varying economic conditions, Truscott’s company has continued to grow, reporting
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100% growth year on year for the last eight years. In the past nine months, however, he has noticed a downturn in the luxury homes market, in part driven by the global economic downturn and the commodities crash in China, and exacerbated by the recent issues faced by South Africa’s finance minister Pravin Gordhan. In response, Truscott has begun making efforts to establish a constant pipeline of work, rather than the single projects his company has previously undertaken. ‘No matter what’s happening in the country, we’ve learned to roll with the punches.’ He says. Going forward, Bobtons has some exciting projects lined up, including a partnership due to be announced early next year, focusing on person-centred green home improvements. “It’s something that will change the way the world builds. It will revolutionise green worldwide,” Truscott says. A new site, Queen’s Development, is also on the cards, and is planned to include 20 freestanding homes. World-changing projects aside, Bobtons looks set for continued growth into 2017.
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