Green Construction Journal: SACA 2016 Special Edition

SACA AWARDS 2017 THE COUNTDOWN HAS BEGUN TO THE TH

10 ANNUAL SACA AWARDS The SACA Awards are widely recognized as South Africa’s key infrastructure awards function – an event where you will rub shoulders with some of the biggest movers and shakers in South African business and construction industry. Now in it’s 10th year, the SACA Awards has earned a reputation not only for honoring top construction achievers but also as a must see event on the construction calendar. If you are not there, you have missed out – big time. This standout event will also be live-streamed on Jozi Media’s 24/7 TV channel, JMTV. This ground-breaking initiative will bring the event to a far wider audience.

In 2017 the event will be addressed by not one but three Cabinet ministers

Minister of Public Works, Thulas Nxesi

Minister of Human Settlements,

Lindiwe Sisulu

Minister of Small Business, Lindiwe Zulu

Date: Friday 6 October 2017 Time: 6.30pm | Dress: Black tie To book your table, please contact Mpho 011 036 2977 or send email to: mpho@jozi-media.co.za For exclusive sponsorship opportunities, contact Fundiswa on 011 036 2977 or email to: fundiswa@jozi-media.co.za

Venue: Sun City, North West

Visit www.saconstructionawards.org.za for more info.

Celebrating Excellence in Construction

Vehicle Sponsor

Speech by Minister of PublicWorks,

Mr.Thulas Nxesi Programme Director Founder and CEO of the South African Construction Awards, Mr. Loyiso Ngavu The representative of the host city Representatives of the construction sector Most importantly the 2016 SACA awards finalists present Ladies and gentlemen It is with great pleasure for me to be here at the 7th Annual SA Construction Industry Awards 2014 event and to have this opportunity to share some success stories and experiences. This is a multi-faceted and very complex Field to operate in, it requires a professional and dedicated people to make it work – that’s you.

But it also needs strong, clear and determined support from all the stakeholders.

I also want to welcome the participants from industry and client organisations that are here today, many of whom have participated in the development of these awards. This marks a milestone in the industry's participation in the development of these awards developed in partnership with state – owned - entities.

National Infrastructure Plan The President of the country and Cabinet have allocated over R1 trillion over the next five years to investment in infrastructure - reaffirming that the creation and maintenance of infrastructure is central to driving the economic growth of the country and job creation.

The National Infrastructure Plan for the country – led by the President - speaks to the following: the need to develop a comprehensive plan which would address the legacy of apartheid spatial planning by integrating those parts of the country – rural areas in particular – which had been historically excluded from economic development.

The need to use infrastructure development as a lead sector in developing the necessary economic linkages to drive inclusive economic growth and development; and the need for infrastructure development to lead the struggle against the triple evils of poverty, unemployment and inequality.

Eighteen major long-term Strategic Integrated Projects (SIPs) have been developed to promote regional economies and job creation.

Examples include: SIP1: (coordinated by the Minister of Public Works) aims to unlock SA’s northern mineral belt centred in Limpopo through key infrastructure provision in Waterberg and Steelpoort districts, initiate new energy and industrial development, develop a new city around Lephalale, shift coal transport from road to rail in Mpumalanga and increase rail capacity to Richards Bay whilst supporting regional integration.

SIP6: Integrated Municipal Infrastructure Project – to assist the least resourced districts to address all infrastructure, maintenance and basic services backlogs.

This infrastructure delivery plan needs to be delivered – by the construction sector - in a manner that provides value to the country – and this value depends on appropriate planning of the infrastructure, and also value delivered by contractors through the construction process. This infrastructure must be delivered to the right standard and quality, and on time.

However, all too often we have seen examples of poor quality construction, contractors failing to deliver, excessive price escalations, and dare I say it -collusion. This has cost the country many millions of Rands – even billions. The cost of poor quality has been estimated by the cidb to be around R4 billion per year.

Combatting collusion In relation to the issue of collusion, I just need to flag that the findings of the Competition Commission and subsequent processes – I believe - mark a major milestone - and hopefully a turning point in the evolution of the construction sector in this country.

Of course the findings leave us with a dilemma: Wrong-doers need to be held to account – no matter how big they are.

But we are also dependent on what is a vital sector of the economy as a lead driver of economic development and job creation.

My own view is that we have to strategies on how best to use this moment in the life of the construction industry to promote transformation and development of the sector. This is something we can start to think about and discuss for the future.

However, I encourage clients, and public sector clients in particular, to adopt these standards now, and incorporate them into our conditions of contract. In this regard I am pleased that the Standard for Skills Development will shortly be incorporated into the 18 SIPs. Ladies and gentlemen, I now want to turn to something that is very close to my heart - the announcements of the 7th South African Construction Awards 2014 here tonight. Infrastructure is not only about cement, stone, steel and other building materials.

Infrastructure is also about the people who create and maintain the infrastructure, and the skills they bring to bear on the construction process. It is about the human potential, it is about the designers, the managers, the foremen, the supervisors, professionals, artisans and general workers.

Each of you is being recognised for excellence in relation to your outstanding performance in the project that benefits our community.

You are being acknowledged for your hard work, your commitment and your creativity. Without you there would be no new improved infrastructure like roads, bridges and stadiums which we pride ourselves with and clearly benefiting in making life easier for our residents. You make a difference.

This is the ultimate win-win situation and it affords us the opportunity to forge partnerships to eradicate poverty in our country. You are empowered to deliver services such as roads, houses, stadiums, schools etc – to your people, and in the process you also create work opportunities and incomes for unemployed families. And when you do this well, you give our country hope for a better Future for all. To Mr. Loyiso Ngavu I salute you for making this biggest construction event in South Africa.

I congratulate the winners on their accomplishment and I express my thanks to the construction industry and to the Jozi Media team on this initiative. This serves as an example of how infrastructure delivered by the state is also delivering skills, and employment opportunities.

Thank you

CHAIRMAN'S FOREWORD As the industry seeks to improve enterprise-level outcomes, and policy-makers to build our national prosperity, Construction Journal’s vision is for a building and construction industry that maximises its potential by being both fair and productive.

OUR APPROACH

transition to Construction Journal.

The building and construction industry is, by nature and long tradition, collaborative. It takes sophisticated co-operation to build a road, a skyscraper or a mine. Construction Journal will join forces with industry to make sure the same high-level collaboration that happens on the job also happens with respect to workplace laws and workplace culture.

Above all, we seek to be visible. A publication that only springs into action at certain flashpoints cannot hope to create lasting change. Increasing information channels to and building partnerships with our industry is critical to our success, and we will continue to pursue meaningful, respectful engagement with all parts of the building and construction sector.

Construction Journal is focussed on integrating the way we deliver services. We are working with other agencies, industry and key stakeholders to ensure that we make the strongest contribution to getting workplace relations settings right.

Our approach is hands-on. We are visible on work sites and we listen hard to the industry at all levels – from the tools through to key industry events.

We will regulate from the front – in a proactive, pre-emptive way, rather than waiting for contraventions to occur before we act.

We seek to be agents of positive impact in our industry, not just to prosecute malfeasance after the event.

OUR WORK PROGRAM Construction Journal investigates across the full range of civil penalty breaches in the FW Act. Over the coming year, our content will focus on six key areas: • unprotected industrial action • freedom of association • coercion • right of entry • wage and entitlements • sham contracting We approach each of these harms with a range of tools from along the whole regulatory spectrum, from voluntary resolution through to enforcement strategies including civil penalty action.

We retain from the former regulator the power to intervene in court matters brought by other industry participants, and we exercise that power when we judge that it is in taxpayers’ interests to do so.

Employers can also expect that Construction Journal will focus on breaches that were not a strong feature of the former regulator’s approach, including breaches of modern awards, discrimination, adverse action and failure to comply with notices or record-keeping obligations.

As well as pursuing our regulatory interventions in the industry, I am committed to finding ways to build the industry’s capacity to – and willingness to – fashion its own solutions. Where elements of the industry evince a commitment to better dispute management, Construction Journal will provide advice and guidance.

At the same time, it should be absolutely clear to all industry participants that Construction Journal will be a vigourous and effective litigant in the public interest. This commitment to ensure that the rule of law is upheld is undiminished, despite the confused rhetoric of those sceptical about the successful

NEW WAYS TO CREATE VALUE There is currently a thriving – though not always accurate – national conversation about productivity and about the workplace relations settings appropriate to ensuring and enhancing it. Construction Journal intends to contribute to that conversation in a way that is agnostic of politics and focused instead only on well-supported evidence.

There is a large and growing body of scholarship suggesting that employee engagement is a key driver of enterprise-level productivity, as well as a reliable predictor of shareholder value and return on equity.

It makes business sense to treat employees fairly, and it makes sense for individual employees to take an active role in increasing their productivity in their workplace.

Construction Journal’s object to encourage harmonious practices obliges us to support industry participants in finding common ground with employers, employees and their representatives in workplace issues, as well as to undertake the hard compliance for which the former regulator was well known.

It is through taking this ‘long-view’ approach to compliance that Construction Journal will contribute to industry in a lasting way, beyond the band-aid approach of a regulator focused entirely on the ‘now’.

Our industry can be a leader for the new productivity frontier.

I consider it Construction Journal’s priority to both address the productivity challenge in construction, and by doing so, create markers for other industries about how they can best bring the pieces of the puzzle together. The construction industry can provide positive examples, and positive direction.

If we address inefficiencies in construction, other industries – in particular those industries that need infrastructure to be productive, like mining, transport and the services sector – are enabled to follow suit.

Construction Journal does not just expect industry participants to be cooperative, harmonious and productive. But through patient, diligent and ethical work, I am confident that we can make a lasting difference in this industry, for the benefit of all South Africans.

Loyiso Ngavu Chief Executive South African Construction Awards Board

Publishing Editor Mike Dyson mike@jozi-media.co.za Chief Executive Officer Loyiso Ngavu ceo@jozi-media.co.za SACA Judges Loyiso Ngavu: Chairman South African Construction Awards™ Marie-AnnNickelsons: Senior Vice President, Construction Journal Cindy Zuma,- Head of Strategic Procurement Lend Lease Tony Nickelsons: Senior Vice President Construction Journal Mandla Sibeko: Project Director Network Rail Agency Tracy Dick: Director BIM Strategy and Development Peter Kruger: CEO Waterfall Engineering SA Jan Du Toit: Head of BIM BIM Task Group and Cape Contractors Willy Bassson: Technical Manager Construction Products Association

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Publisher

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Tel: 011 036 2977 | Fax: 0866106053 Email: info@jozimedia.com Web: www.jozi-media.co.za

Special Thanks to: Ministry of Public Works, NHBRC, Malvern Guarantees, SEDA Incubator, Corobrik, Asite, Jeep SA, SABC Head of Corporate Mr. Hlaudi Motsoeneng, Kuntwela Ezansi Venture, Southern Sun Hotel and Jozi Media Staff.

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2016 Š Jozi Media Empire (Pty) Limited GREEN CONSTRUCTION JOURNAL is copyright under Jozi Media Empire. In terms of copyright Act 98 of 1978 no part of this magazine may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without permission in writing from the Publisher.

DISCLAIMER Green Construction Journal does not warrant or assume any legal liability or responsibility for the quality, accuracy, completeness, legality, reliability or usefulness of any information, product or service represented within our magazine or web site. The information provided is for educational or entertainment purposes only.

Anyone using the information provided by Green Construction Journal, whether medical, legal, business or other, does so at their own risk, and by using such information agrees to indemnify Green Construction Journal from any and all liability, loss, injury, damages, costs and expenses (including legal fees and expenses) arising from such use.

NO IMPLIED ENDORSEMENT Green Construction Journal does not endorse or recommend any article, product, service or information found within said articles.

The views and opinions of the authors who have submitted articles to Green Construction Journal belong to them alone and do not necessarily reflect the views of Green Construction Journal or its staff.

Links to other web sites from Green Construction Journal or its website are provided for convenience only. Green Construction Journal is not responsible for the content or availability of any external or 3rd party sites and does not warrant or guarantee the products, services, or information found on these sites.

CONTENTS 10 Incubator grows over 400 contractors 12 NHBRC hosts a youth in construction seminar at Buffalo City Metro 14 Cape Town grows as international destination with three new Marriott hotels 16 Moloto Road 'of death' to recieve R4.5 billion

BUSINESS ELITE CEO OF THE YEAR 20

18 Corobrik provides quality bricks and training for Pretoria’s Thembelihle Village 25 Eskom signs agreement with China Development Bank 26 Murray & Roberts to sell construction concerns 28 Minister Thulas Nxesi cannot be blamed for Nkandla 29 South Africa’s Cornubia Shopping Mall to open 2017 32 ArcelorMittal paves way for R2.3bn BEE deal in SA 34 Construction giants reach transformative agreement with government 35 Lack of competition in SA enables cartel conduct 38 Innovation firm Crystal Lagoons triggers real estate revolution in Africa

SOUTH AFRICA BETS BIG ON URBAN SOLAR FARMS 36

50 Green Construction updates 58 Construction products review 64 Personality pf the year

EMPOWERING THE NATION

Incubator grows over 400 contractors Started in Durban in 2006 with the aim of developing emerging contractors, the Small Enterprise Development Agency’s (Seda) Construction Incubator has since spread to two other provinces and aims to open up branches across the country.

Small Business Connect spoke to marketing manager Thandeka Mtshali to learn more about the incubator.

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What is the name of your incubator and the meaning behind it?

How many businesses have been incubated with your support?

The name of our incubator is Small Enterprise Development Agency’s (Seda) Construction Incubator, or SCI in short.

We have supported more than 400 incubators since we opened our doors nine years ago, with 200 contractors graduating so far.

How would you describe your focus?

We mainly focus on incubating emerging construction companies. We provide the contractors with business and technical mentorship support.

Where are you based and from which areas do you recruit new incubatees?

Our incubator has nine branches across three provinces.

In KwaZulu-Natal (eThekwini, Dundee and KwaMashu), Gauteng (Ekurhuleni, Atteridgeville and Mogale City) and in the Eastern Cape (Mthatha, Port Elizabeth and East London).

We recruit contractors in the branches’ surrounding areas.

How does one apply?

To apply, candidates need to contact the nearest branch and speak either to the branch manager or business development officer. The client completes the application form and submits all the necessary documentation and goes through a skills assessment.

Which businesses are best suited to join?

An emerging small or medium construction company that meets the entry requirements such as showing potential to overcome the industry challenges.

How long do businesses stay in your programmes?

The incubator has two programmes that run concurrently.

The duration of the mainstream programme is three years.

How long have you been going for?

The incubator was first established in 2006 in eThekwini as eThekwini Construction Incubator. In order to expand the organisation and offer its services all over the country, the name was changed to the Seda Construction Incubator.

What are the two key elements of your support that sets you apart from other incubators?

The two most important elements that set this incubator apart is the on-site technical mentorship provided for the contractors with a professional engineer to assist and guide where need be during the project. The second element is the office at the incubator which provides contractors with a space where they are able to run their businesses in a professional manner. The contractor has access to the boardroom for meetings, resource centre and a receptionist at a SCI branch.

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How many incubatees are simultaneously in your programmes?

The incubator currently has 1045 companies in our portfolios across all our incubation centres.

What are your fees?

There are no joining fees. However, there are instances where contractors have to pay for certain workshops.

What commitments do incubatees make before they enter your programme? And what commitment do you make to them?

Contractors make the commitment to participate in the programme for three years, attend our training and workshops as well as to make use of the resources that are provided to them.

What is the best thing you heard someone say about your incubator?

The best thing we have heard is that we played an integral part in growing their business.

And the worst?

The worst thing is that we do not have enough incubators, especially in areas where contractors are based far away from the incubator centres.

What was your biggest success thus far?

We have had many successes to date, but we consider every time a contractor graduates a success, especially when we see business owners continue to grow their businesses long after they have graduated from the programme.

Why are you involved in supporting new businesses?

We want to help the economy grow. Small businesses create employment for a lot of people.

What is your biggest wish for improving the support to entrepreneurs in South Africa right now?

We want to partner with private sector companies to provide small and medium businesses with projects that enhance the training offered by the incubator. We want to form partnerships with financial institutions to make access to finance easier for small businesses who are part of our programme. We would also like to increase our footprint across the country.

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ADVERTORIAL

NHBRC hosts a youth in construction seminar at Buffalo City Metro The National Home Builders Registration Council (NHBRC) in partnership with Buffalo City Metropolitan Municipality is hosted a youth in construction seminar at Cambridge Town Hall in East London on 12 October 2016.

The purpose of the seminar is to empower young entrepreneurs and unemployed youth with information on various opportunities that are available in construction industry and home building sector specifically.

The theme of the seminar is – cconstruction industry – creating space and opportunities for young people.

To date, the NHBRC in partnership with the Department of Human Settlements and the National Youth Development Agency trained 198 young people in various construction skills as part of the Youth Brigade Programme in the Nelson Mandela Bay, Buffalo City Metro and Joe Gqabi District Municipality.

As part of youth development, the NHBRC supported 22 young people who recently completed their three-year Artisan Development Programme in King Sabatha Dalidyebo

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FET College in collaboration with the Department of Human Settlements.

A number of stakeholders, such as Provincial Department of Human Settlements, Buffalo City Metro Human Settlements Division, Transnet Business Incubation, SEDA Construction Incubator, Construction Industry Development Board and the Provincial Roads and Public Works presented various opportunities available to the youth.

In 2015, the NHBRC Council adopted a social transformation programme aimed at capacitating youth, women, military veterans and people with disabilities with technical skills so that they can actively participate in the home building industry.

For more information, please contact Molebogeng Taunyane on 011 317 0070 or molebot@nhbrc.org.za

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Cape Town grows as international destination with three new Marriott hotels Marriott International has announced the construction of three new hotel properties in Cape Town, in partnership with the Amdec Group.

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These will be three new hotels in the city: one under the company’s signature brand, Marriott Hotels, which will be the first Marriott Hotel in Cape Town; the second under the upscale extended stay brand, Residence Inn by Marriott, the first for South Africa; and the third the upper-moderate tier lifestyle brand, AC Hotels by Marriott, which is the first hotel under this brand for the Middle East and Africa (MEA) region.

AC Hotel Cape Town Waterfront These three planned developments will add over 500 rooms to Cape Town’s hotel accommodation offering. Bringing 189 additional rooms to Cape Town, the AC Hotel Cape Town Waterfront will be located at The Yacht Club in the Roggebaai precinct at the gateway to Cape Town’s waterfront. Harbour Arch (the current Culemborg node), currently the location of several major construction projects, will be the site of the 200-room Cape Town Marriott Hotel Foreshore and the 150room Residence Inn by Marriott Cape Town Foreshore.

Marriott's Joburg footprint This announcement is an extension of Marriott’s existing partnership with the Amdec Group, initiated in 2015 with the announcement of the development of the first two Marriottbranded hotels in South Africa. These two properties, situated in the popular upmarket Melrose Arch Precinct in Johannesburg, are scheduled to open in 2018 and are the Johannesburg Marriott Hotel Melrose Arch and the Marriott Executive Apartments Johannesburg Melrose Arch.

Johannesburg Marriott Hotel Melrose Arch Amdec’s total investment in these Cape Town and Johannesburg developments amounts to over R3 billion between the two cities which will have positive economic spinoffs and a massive impact on job creation.

The new developments bolster Marriott International’s robust growth strategy across the MEA region, which is geared to expand the global group as a leading travel company both within the region and internationally.

According to Arne Sorenson, president and chief executive officer, Marriott International, “Africa is particularly important to Marriott International's expansion strategy because of the continent's rapid economic growth, expanding middle-class and youth population, as well as the increase of international flights into the continent. With over 850 million people in Sub-Saharan Africa alone, there are enormous opportunities."

Growth plans for the continent Marriott International’s growth plans for the continent are

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impressive: by 2025 the company aims to expand its current presence in Africa to 27 countries, with over 200 hotels, and around 37,000 rooms.

As for South Africa, Alex Kyriakidis, president and managing director, Middle East and Africa for Marriott International, comments that “The significance of this announcement for both the city of Cape Town and for South Africa cannot be underestimated. The developments in both Cape Town and Johannesburg confirm the country’s importance to the international travel market – for both the business and leisure traveler. From the perspective of tourism, the addition of three hotels in Cape Town, catering for different market segments among both international and domestic visitors, will strengthen the position of the city as one of the world’s top destinations, and we are confident that Cape Town will gain huge benefits from the likely increase in visitor numbers expected in the future.”

James Wilson, chief executive officer of the Amdec Group, says: “Marriott’s new hotels will become landmarks in South Africa and appeal to travellers from all over the country, the continent, and the world. We are proud to develop world-class properties in both Cape Town and in Johannesburg. Melrose Arch in Johannesburg is well established as a magnificent multi-faceted New Urban quarter focussed on creating an unforgettable experience with a vibrant atmosphere in a secure environment where people can work, shop, relax and stay.

Amdec is thrilled to continue our growing partnership with Marriott International in Cape Town where The Yacht Club will offer an exclusive urban experience in an energised precinct on a working harbour superbly connected to all the buzz of city living in a location steeped in history. In addition, we are delighted to be constructing two new hotels at Harbour Arch (on the current Culemborg node) where we hope to replicate the magical atmosphere experienced at Melrose Arch. Melrose Arch, The Yacht Club, and Harbour Arch are all perfect locations for Marriott’s first hotel properties in South Africa.”

It is anticipated that, during the construction phase, approximately 8,000 construction-related jobs will be created.

Once the hotels are completed, over 700 new hospitality jobs will be created - 470 in the three new Cape Town hotels and 320 in Johannesburg.

Cape Town’s importance in the world tourist market has been confirmed in recent years with the ever-increasing visitor numbers to the city. The addition of further accommodation to meet the growing demand will place the city in an even stronger position as a top global destination.

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NATION BUILDING

Moloto Road 'of death' to receive R4.5 billion

Minister of Transport, Dipuo Peters, says the Moloto Road, dubbed one of South Africa’s roads of death, is to be transformed into a ‘road of hope’. Minister Peters said the full upgrade will take five years to complete, totaling approximately R4.5 billion. The 160km stretch of road runs through Gauteng,Mpumalanga and Limpopo.

“The Moloto Road has become synonymous with crashes, bus accidents, injuries and death. It has robbed communities of breadwinners and beloved mothers. Parents have had to stand at the open gravesides of their children,” said Minister Peters on Thursday.

The road has not been upgraded for many years, and has had to cope with increasing traffic in recent years.

Statistics taken from a January 2012 to May 2014 show that there were 489 crashes on the Moloto Road, resulting in 158 fatalities and 594 serious injuries.

was a high priority initiative because of the various passenger public transport challenges.

“This intervention is intended to alleviate these challenges by exploring various solutions in addressing, amongst others, limited economic development in the area, limited access to work opportunities, excessive commuting distances from home to work and poor levels of service on substandard local roads.”

She said the full upgrade will take five years to complete, totaling approximately R4.5 billion.

The modernisation of this road forms part of the Moloto Road Development Corridor, which will include the muchneeded investment in passenger rail to offer commuters a safer, faster and more accessible connection between Mpumalanga and Gauteng.

The project spells job opportunities for locals from within the districts and municipalities in the area. People will be trained in various aspects of engineering, so they can look for other job opportunities once the project has been completed.

Passenger Rail Agency of South Africa (PRASA) and the China Communication Construction Company Limited have entered into a Memorandum of Understanding to explore areas of possible cooperation on the planning and implementation of the Moloto Rail Corridor Initiative.

Minister Peters said the Moloto Road project will create about 5 500 jobs.

Minister Peters said the Moloto Rail Corridor Development ConstructionJournal

In addition, significant portions of the contracts will be packaged to enable small and medium enterprises to perform the work and gain experience.

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Corobrik provides quality bricks and training for Pretoria’s Thembelihle Village

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More than 700 deserving families are set to receive secure housing in the regenerated Pretoria Central Business District with the completion of the R265m Thembelihle Village next year.

Corobrik’s Montana Light Travertine face bricks were selected for the construction of this social housing development, situated at the intersection of Johannes Ramokhoase and Sophie de Bruyn Streets. In addition, one of Corobrik’s experienced training co-ordinators provided invaluable bricklaying training on site, ensuring a high standard of work and increasing job potential for participants later on.

“The first phase of this social housing project will be finalised in June this year providing 241 affordable, quality affordable rental apartments,” explained Jaco Enslin, Contracts Director for WF KROON Projects.

“The developer, Yeast City Housing NPC, has established apartments for rent,” he explained “A further 492 units are set for completion in April 2017 with the development financing supplied by the government departments.

Thembelihle Village is a mixed-income residential development which will consist of studio units, as well as one, two and three-bedroom units. It will include an after-care facility, gym, swimming pool, mini soccer field, vegetable garden as well as a job and training centre. Developers have also incorporated cutting edge green technology throughout to ease the economic and environmental burden. Biometric access control, CCTV cameras and 24-hour security will also ensure the safety of all residents.

ASA Architectural Design team head, Anca Szalavicz, said that, as with most of their designs for social housing projects, her team sought the most efficient unit design, as every square inch counts.

“This applies to the block design as well in trying to minimise the extent of common areas,” said Szalavicz.

“With every project we strive to allow for as much green space as possible, detached from cars and street, creating a green haven with playgrounds and meeting places within the core of the city centre”.

“As this project occupies most of the city block, particular attention was paid to the treatment of buildings and enhancement of street corners. We also focused on pedestrians, with the creation of covered arcades, for an interactive, safe, public realm.

“Thembelihle will really make a positive contribution to its somewhat depressed surroundings and will reflect the special character of the inner city of Tshwane of high-rise and high density mix of uses,” she explained.

The 733 units will be clustered around a green lane within a four-storey walk-up, as well as 10 and 11-storey high rise blocks situated along Johannes Ramokhoase Street. There is vehicle and pedestrian access from Struben Street with additional pedestrian access from Sophie De Bruyn Street.

Szalavicz explained that Sophie de Bruyn Street has been identified as a major pedestrian thoroughfare and as such several shops and food outlets are proposed along it, further enhancing convenience for the residents and the area’s vibrancy.

“The blocks within the development are designed to engage with, and activate, the streets to the north and east, with retail planned for the ground floor,” said Szalavicz. “The towers situated on the south side are positioned so as not to shade the rest of the site, rather they are stepped back from the street edge, to gain the visual perspective desired for ConstructionJournal

high-rise buildings. This also allows for the parking to be detached from the inner green lane.”

One constant struggle when developing quality, social housing is keeping the costs down while ensuring residents receive the best possible product which will provide a sense of pride in the home.

Scalavicz said this was one of the reasons they selected Corobrik’s Montana Light Travertine range of face bricks, which are both affordable and provide low maintenance.

Musa Shangase, Corobrik’s commercial director, reiterated this point, saying their range was the best option for social housing developments in the long run.

“Our quality face brick is both affordable and durable, ensuring any building constructed using our materials remains for years to come,” he explained.

Shangase also explained the lack of maintenance needed in the form of plastering and painting, both at construction phase and later on, means ongoing cost savings for everyone involved.

“The bricks have incredible thermal insulation which means no need for artificial heating and cooling within the buildings, further saving on costs, as well as sound insulation that creates a habitable living environment for all residents in close proximity,” said Shangase.

In addition to this, Corobrik provided essential on-site bricklaying training for subcontractors involved in construction.

Our training co-ordinator, Alex Phatudi, from the Lawley 2 Factory, trained about 20 bricklayers at the Thembelihle Village construction site from November 2015 to January 2016,” said Shangase. “These individuals who underwent the six-week course received a CETA-accredited certification in bricklaying, which provides them with real potential for future job opportunities.”

Corobrik offers training courses at its various building raining centres, as well as on-site training, to the general public, not for profit but so as to provide skills to previously unskilled members

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CONSTRUCTION ACHIEVER

Business Elite CEO of the Year South African Construction Awards Board would like to congratulate Asite CEO - Tony Ryan Founded in 2001 and headquartered in London, Asite helps people share information and build knowledge in a secure cloud environment. Asite’s cloud technology gives everyone involved in projects access to key information online in a secure environment. It allows for increased collaboration, fewer mistakes, reduced rework, giving huge time and cost savings. In an interview with the firm’s CEO - Tony Ryan, he reveals that he was honoured to be awarded the Business Elite CEO of the Year 2016, and sheds light on the firm’s Asite’s cloud technology.

The CEO at Asite since 2006, Tony turned the business around to produce consecutive quarterly growth and led Asite to its current position as a leading corporate collaborative cloud solution provider. Prior to Asite, Tony held a number of senior roles with companies including Renaissance Worldwide, Group Bull and Cara Information Technology. He has over 27 years’ experience in the IT services arena, with extensive knowledge of corporate collaboration technologies. When he can find the time, he enjoys nothing more than playing (albeit badly) a game of golf or two.

First of all, can you elaborate on what the firm does?

Asite’s cloud technology gives everyone involved in construction projects access to key information online. It allows for increased collaboration, fewer mistakes, reduced rework, giving demonstrable time and cost savings.

Asite’s Adoddle platform allows teams to store and manage all project data in one central and secure repository, integrating with existing solutions for big data capabilities.

It also enables customers to fully customize the structure of their content with highly controlled access and rich configurable workflows to allow for improved project controls.

The Adoddle platform is used by leading architecture, engineering and construction firms, as well as property owners world-wide to manage their largest and most demanding capital investment programs.

Can you go into detail about the areas your company specialises in?

Adoddle helps global organisations manage their projects and supply chains collaboratively, accessing the information they need, when and where they need it. It enables AECO companies to measure and track capital projects and asset operations.

Can you tell us how the business is going and the challenges you face at the helm of it?

I have steered the company through some very tough conditions in a market that suffered the hardest since the

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downturn in 2008. I could not have done it without the incredible team that I have had the honour of working for - the Ateam.

What experience do you have in the IT services arena and also in corporate collaboration technologies?

I am the CEO of a business that helped start the wave of cloud collaboration services. I have over 27 years of experience working within the IT industry and have enjoyed every minute of it. Asite’s position as a global leader of corporate collaborative technology or cocial as we call it around here, will only continue to grow.

What kind of clients do you serve and how do you approach them?

Historically, Asite managed the entire asset lifecycle for the AEC community, from concept through to completion.

We now take care of the beyond by offering our Cloud based services to the owner operators and FM firms. Through the firm’s award winning collaborative Building Information Modelling (cBIM) technology, we cover the entire spectrum.

However, the firm is increasingly being asked to look at every aspect of technology within these businesses from CRM, Digital Media through to Finance.

Do you have any plans for 2016 and beyond that you would like to share?

The next three years will see exponential growth for Asite, particularly in the infrastructure and ever increasing manufacturing sector. BIM is a key focus for our clients in the AEC community. The firm are the leading provider of cloud based model servers and we will continue to lead in this area.

What challenges lie ahead in 2016 for you as a CEO and for your company in 2016?

UK’s exit of Europe and Donald Trump’s hair. But seriously, the main challenge is keeping up with our clients’ expectations and ensuring that Asite delivers the best service for their needs. I love a challenge but I prefer solutions - and the Ateam always deliver, we have a very exciting future ahead of us.

Are there any specific industry based challenges you are facing now and in the future?

My Golf handicap, helping government’s around the world and globally shaping the future of BIM.

Do you have any further remarks to make?

Asite’s company ethos is to make a difference and enable clients to Get to IT!

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AGREEMENT

Eskom signs agreement with China Development Bank

Eskom and the China Development Bank (CBD) have signed an inaugural $500m (R7bn) credit facility agreement that will go towards the parastatal's capital expenditure programme.

“The successful execution of this credit facility increases the funding secured for financial year 2016/17 to R51bn, meaning we have secured 75% of our R69bn funding requirement,” said Eskom’s group chief executive Brian Molefe.

Speaking at the signing ceremony on Monday, 3 October, Molefe said the power utility is pleased to see the conclusion of the first agreement with CBD as this will lay the platform for future co-operation between the two parties.

“The conclusion of this agreement continues to demonstrate investor confidence in Eskom and South Africa; notwithstanding the recent volatility experienced in the local debt capital markets. We are confident that the agreement will cement Eskom’s relationship with the Bank.

This loan will also aide us in ensuring that we complete the current capital expansion programme and further stabilise Eskom’s liquidity position,” said Molefe.

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With the signing of the loan facility, Eskom can continue to focus on empowering its people through build site projects such as Medupi and Kusile power stations.

“All of our projects focus on the long term benefits for communities in and around areas where Eskom operates as well as the rest of the nation. Kusile will continue to change lives in the Nkangala district community [in the Mpumalanga province] and Medupi will continue to make a difference in the lives of the people in the Limpopo province,” he said.

Molefe said the partnership with the bank is a direct catalyst for growth.

“It allows us to meet the growing demands of our nation as it is expected that electricity demand will increase by about 1% every year.”

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CRISIS MANAGEMENT

Murray & Roberts to sell construction concerns MURRAY & Roberts is exiting infrastructure and building markets in SA as years of stagnation take their toll. It will also dispose of its steel and engineering services group, as it focuses on global underground mining, oil and gas, and power and water.

It is fairly easy to pin down the reasons for the company’s change of tack.

Government spending on major infrastructure projects has been almost nonexistent since the holding of the 2010 Soccer World Cup. There has also been concern over Chinese construction companies potentially garnering billions of rands of infrastructure work in SA — the Moloto rail development corridor between Gauteng and Mpumalanga is one such project — at the expense of local firms.

The decision to exit these sectors follows announcements by Murray & Roberts of its "new strategic future".

"By 2020, we aim to be a leading diversified international project engineering, procurement and construction group in selected natural resources sectors and supporting infrastructure," the group says.

This comes amid crises in the domestic and global mining and steel industries. SA’s construction sector takes up about 50% of local steel production. But the closure of the country’s second-largest steel maker, Evraz Highveld Steel and Vanadium, and recent record losses at SA’s largest steel group, ArcelorMittal SA, are testimony to hard times.

"We are not exiting the South African market — it is about exiting a sector," says Murray & Roberts CEO Henry Laas.

The exit by Murray & Roberts from infrastructure and building markets comes as diluted continuing headline earnings per share fell 10%, according to the group’s provisional report for the year to June. Attributable earnings in the period dived 15% to R753m from R881m a year earlier.

The poor state of the political economy has added to woes caused by the aftermath of the global financial crisis. Fifteen construction companies are paying a collective R1.5bn in fines to competition authorities for alleged industry ConstructionJournal

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collusion. Not all companies have acknowledged charges.

But amid perceptions by the government that it got taken for a ride during the World Cup build, the construction industry has been put through a grinder.

Along with plunging market capitalisations and bad blood with the state, the construction industry is pressured over empowerment, including through state procurement legislation. Meanwhile, in recent years there have been serial occurrences of violent strikes in mining, metals, and at Eskom’s new power stations.

At the same time, the government has exempted the use of imported steel for building large infrastructure, while not designating local steel for this task.

The proposed disposals in the sector have opened up opportunities for black economic empowerment in largescale infrastructure development.

But this comes as the latest results from four of SA’s largest listed construction groups — Aveng, Group Five, Murray & Roberts and Wilson Bayly Holmes-Ovcon (WBHO) — show that offshore income is critical to core sustainability.

WBHO’s building divisions in SA and Australia offset lower activity levels in mining and other civil engineering sectors.

This helped push headline earnings per share up 11% in the year to June. Revenues rose 6.3% to R30.7bn. CEO Louwtjie Nel says he sees an uptick in state spend on larger-scale infrastructure projects in SA. But he also says the group’s civils work in SA is down 40% year on year, while road-building fell 18% in the period.

Aveng, the country’s largest construction group by turnover, says domestic building and engineering work will contribute 37% of pipeline projects for the next two years, compared to 56% in 2015. The company saw revenue plunge 23% in the year to June, showing a headline loss of R299m from a R578m headline loss in June 2015.

The group says Australia and Southeast Asia will play an increasingly important role in future. The region now accounts for 60% of its two-year order book, up from 40% previously.

In the past financial year, it has struck 8,500 workers from its payroll, including about 2,000 permanent staff.

Group Five, meanwhile, more than doubled core operating profit in the year to June. But this was almost entirely as a result of its toll road concessions in Eastern Europe.

CEO Eric Vemer says government spend on infrastructure projects is the key to a recovery in heavy construction in SA.

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POLITICS UPDATE

Minister Thulas Nxesi cannot be blamed for Nkandla Deputy Minister of Public Works Jeremy Cronin has leapt to the defence of his boss, Thulas Nxesi, saying he should not be reprimanded by President Jacob Zuma over the Nkandla mess.

Nxesi, on the other hand, refused to take responsibility for the mess, saying it did not happen under his watch.

of what we said at the time. We see so many malpractices,” he said.

Minister of Public Works Thulas Nxesi and his deputy Jeremy Cronin addressed the media in Cape Town on Wednesday. Picture: Elmond Jiyane. Credit: GCIS

He said Nxesi came back in January 2012 and reported on remedial action arising from the task team report.

Cronin told Parliament, during the debate on the budget of the Department of Public Works, that both the Constitutional Court and Public Protector Thuli Madonsela had called for Zuma to reprimand former public works minister Geoff Doidge.

He said that nowhere in the Constitutional Court judgment or the public protector's report was there reference to Nxesi, but there was to his predecessor, Doidge.

In his defence against attacks from opposition MPs in the National Assembly, Nxesi said he could not be faulted for Nkandla.

“As minister of public works I took responsibility for Nkandla when I came in and not the blame for the irregularities, as they did not happen under my watch,” he told the House.

Cronin quoted a section from Madonsela’s report that Doidge and former police minister Nathi Mthethwa should be reprimanded.

Doidge is now South Africa’s high commissioner to Sri Lanka, after he was fired by Zuma in 2010. He was succeeded by the former House chairwoman in the National Assembly, Gwen Mahlangu-Nkabinde.

Cronin said that when Nxesi took over the job from Mahlangu-Nkabinde, the Nkandla project was in full swing.

“Let us remind ourselves that Minister Nxesi was appointed in October 2011, long after the tenders had gone out,” said Cronin.

“The minister established a ministerial task team because

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Cronin said they were the first to call for remedial action against those involved in the Nkandla scandal. They were and continued to be opposed to the inflation of prices.

He said 12 officials were undergoing a disciplinary hearing.

They had shared their report with the public protector.

“The minister did not await the public protector's report; we proceeded with remedial action,” he said.

“The public protector's report, which many people talk about but very few have read it, quotes extensively on the ministerial task team report,” said Cronin.

They were waiting for the court decision on May 22 on whether to allow media access to the disciplinary hearing of the officials charged over the Nkandla corruption.

Cronin said they were working to recover all the money from architect Minenhle Makhanya.

Makhanya was slapped with a R155 million lawsuit by the Special Investigating Unit.

Nxesi said there were many lessons they had learnt from the Nkandla scandal.

“One of the lessons learnt was that a project of this magnitude should not have been delegated to a regional structure,” he said.

The KwaZulu-Natal regional office of the department is at the centre of the procurement process in the Nkandla corruption scandal.

Nxesi said they had to tighten supply chain management procedures to prevent corruption of such a grand scale.

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SHOPPING MALL

South Africa’s Cornubia Shopping Mall to open 2017

The Cornubia Shopping Mall which is currently being developed by Investec Property on the north coastal development corridor of Durban sits on 85,000m2 space and is rising from the old cane fields alongside the M41 at Flanders Road.

“Boasting an innovative design by Bentel Associates, the shopping mall is currently 80% let with major national brands as anchor tenants,” says Darryl Mayers, joint head of Investec Property.

Some of the major food retailers include; Checkers, Pick ‘n Pay and Woolworths who will have a presence in the centre.

Key clothing retailers including Edgars and Truworths. For fitness lovers, the mall will also feature a Virgin Active Gym, a Cycle Lab mega-store and trampoline park BOUNCE. Other tenants who have secured for space at the mall are Nu Metro, Outdoor Warehouse, Dis-Chem, Clicks and Bakos Brothers.

Most of the building will comprise of residential space with 25,000 housing units ultimately being developed and roughly half the size of the Gateway Theatre of Shopping with differentiated products in terms of tenant mix and design with two supermarkets, a 1,630 on-grade parking bays and 1,608 basement bays.

“This forms part of a holistic spatial development,” explains Karen Petersen, development director of Tongaat Hulett ConstructionJournal

Developments, which has made the land available for the project.

The shopping centre is one of the key amenities that will be provided to the 1,200 hectare mixed-use development which stretches from Umhlanga towards the King Shaka Airport.

Construction which began in March 2016 with only six cranes in action has already moved to the second level.

The mall is located near the Umhlanga or Mount Edgecombe interchange and is adjacent to the Cornubia Town Centre where a few stands are still available.

Investec Property (Pty) Ltd which is a division of Investec Limited is one of South Africa’s best renowned property developers, investors and fund managers. It has now expanded internationally and has businesses based in both the United Kingdom and Australia.

Recent reports by Accelerate Property Fund have indicated that construction of malls in South Africa has plummeted, but a booming business elsewhere in Africa. In Kenya for instance 2 rivers Mall is set to open doors, while Nigeria is constructing one of the largest malls in the country.

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BLACK ECONOMIC EMPOWERMENT

ArcelorMittal paves way for R2.3bn BEE deal in SA Global steel giant ArcelorMittal has relinquished more than 15% ownership of its South African subsidiary, ArcelorMittal SA, to pave the way for a long-overdue black economic empowerment (BEE) transaction.

The deal will ensure its recently improved relations with the government are further strengthened after years of acrimony. This also comes as the state-owned Industrial Development Corporation appears to be cooling on its earlier plans to build a $5bn steel mill, which would have competed with ArcelorMittal SA, as reported in the Financial Mail on Thursday, 29 September.

The proposed R2.3bn BEE deal announced on Wednesday with empowerment partner Likamva Resources will see the Luxembourg-based steel maker's stake in ArcelorMittal SA reduced to about 53.72% from 69% once the transaction is concluded. The deal is expected to take effect on November 16 after the local steel producer's annual general meeting, at which shareholders will vote on the proposed issuance of new ordinary shares for the empowerment transaction.

ArcelorMittal SA CEO Wim de Klerk said on Wednesday that the group had already received irrevocable support from 70% of shareholders to vote in favour of the deal.

The BEE deal is the latest concession SA's largest steel maker has made to improve its historically poor relations with the government. It follows ArcelorMittal SA's agreement in August to drop import parity pricing for local flat steel products, pay a record R1.5bn penalty for its involvement in the historical steel cartel and invest an additional R4.6bn in capital expenditure over the next five years.

The government, meanwhile, has approved ArcelorMittal SA's application for a 10% bound rate on all imported steel products and agreed to the designation of local steel products for state procurement and infrastructure projects.

For the purpose of the transaction, ArcelorMittal SA will create a special purpose vehicle where the 17% stake to be issued to Likamva will be held. Likamva will acquire the stake, valued at R1.75bn, through a loan funded by ArcelorMittal SA. The shares will be subject to a 10-year lock-in period and will not be tradeable in that time.

The wholly owned black consortium, whose founders include a broad spectrum of business leaders, will then, ConstructionJournal

within two years, issue 5% of its holding in the local steel maker to a community trust as part of the consortium's own commitments to transformation. Beneficiaries of the community trust will come from areas where ArcelorMittal SA has major operations, such as Vanderbijlpark and Vereeniging.

"This is not just about ArcelorMittal SA but about the transformation and revitalisation of the entire steel industry," said Leslie Maasdorp, vicepresident of Brics's New Development Bank.

Maasdorp is a founding partner in the black consortium.

Another prominent member is Jabu Moleketi, chairman of investment group Brait and the Development Bank of Southern Africa.

Maasdorp said Likamva would play an active role in creating value in the local steel maker, pursuing opportunities in new markets, expanding current operations on the continent and engaging in supplier development.

ArcelorMittal SA chairman Mpho Makwana said that together with its BEE partners the group planned to map out where and how growth would be pursued to add value for shareholders.

"We are working on an Africa growth strategy. I am certain there are other opportunities we are missing in the rest of southern Africa," he said.

The local unit sells the bulk of its steel products in SA and exports the remainder to the rest of Africa and countries in the Middle East.

The empowerment deal will also include an employee scheme for the 9,081 permanent employees of ArcelorMittal SA. The employee empowerment share trust will allocate a 5.1% stake in ArcelorMittal SA to workers of all colours, including management. But 60% of the trust would go to historically disadvantaged black employees.

The employee shares will be locked in for a 10-year period, during which time they will not be able to be traded.

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TRANSFORMATION

Construction giants reach transformative agreement with government A historic and far-reaching agreement between the South African government might give the struggling listed construction sector a new lease on life, close the book on its shameful and collusive past and bring a step-change in transforming the industry. Major contractors and the government of South Africa have agreed a plan designed to transform the country’s construction industry through changes in ownership, greater integrity in business practice and larger contributions to development projects.

The agreement, which follows investigations into the industry, provides a framework for the settlement of claims by the industry regulator, the Construction Industry Development Board, as well as civil claims arising from the competition commission's probes.

The South African Forum of Civil Engineering Contractors (SAFCEC) and the government have announced that seven listed construction companies have agreed a programme of initiatives to accelerate transformation. A seventh company will advise shortly whether it will join the agreement.

The agreement was reached with WBHO, Aveng, Murray & Roberts, Group Five, Basil Read, Raubex and Stefanutti Stocks, which have a combined annual construction revenue of approximately R45bn (£2.6bn). Six of the seven companies have signed the agreement this week the seventh company will advise within the next week.

The agreement has three elements, including one that concerns financial contributions for development projects.

The seven companies will collectively contribute R1.5 billion over 12 years to a fund that will be established for socio-economic development. This voluntary contribution is in addition to a R1.4bn penalty imposed by the competition authorities on companies in the sector in 2013. Initiatives to be supported by the fund will include financial support for young trainee artisans and engineers from disadvantaged backgrounds, support for the teaching of maths and science education at public schools, funding for social infrastructure and the development and promotion of construction companies owned and managed by black people.

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Another element concerns transformational commitments in the sector. In addition to existing enterprise development programmes, each of the companies will undertake further transformation initiatives. The companies are to become fully transformed, with at least 40% of equity in the hands of black South Africans – ‘the equity model’; or secondly, they are to commit to initiatives that will result in each of the construction companies mentoring up to three emerging black-owned enterprises.

The third element concerns an integrity commitment by CEOs. This involves the seven companies committing to business practices that are based on integrity, transparency and fair competition. As part of the agreement, each company has signed a declaration to promote ethical and legal operations, free of collusion or corruption and to confirm that they will expose, confront and eradicate any sign of wrong-doing in the industry.

SAFCEC CEO, Webster Mfebe said: “As an industry we are committed to strengthen our partnership with government for the benefit of all, and especially to encourage and support economic growth through the development of the economic assets of our country. This arrangement also demonstrates the commitment to a transformed, transparent and ethical industry, which has a major role to play in delivering much needed infrastructure to the economy of South Africa. We believe this partnership will reinforce the framework for a more sustainable and competitive industry and is set to advance the social and economic welfare of all South Africans.”

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Lack of competition in SA enables cartel conduct

THE highly concentrated nature of the South African economy means that even when cartels are broken up this often has no material effect on prices, says Competition Commission acting deputy commissioner Hardin Ratshisusu.

The public did not see much change because the dominant players remained and there was still no competition in the market.

Ratshisusu and commissioner Thembinkosi Bonakele briefed the media on the commission’s work on the sidelines of the annual competition law, economics and policy conference focusing on competition policy and economic growth.

Economic Development Minister Ebrahim Patel will address delegates on Thursday, with speakers and panelists from the US, Brazil, Russia, Australia, the UK and Europe.

Representatives from the World Bank will also be attending.

Bonakele said cartels in SA were particularly damaging.

They imposed price premiums much higher than the world average of about 10%, starting at their lowest point of about 15% and sometimes reaching as high as 100%. This was particularly the case in infrastructure-related industries, such as cement and metals.

Bonakele said the commission’s priority sectors were food and agroprocessing, private healthcare, infrastructure and construction, industrial inputs such as steel and chemicals, telecommunications and finance, including banking and insurance. Numerous investigations in these sectors were under way.

The commission was also investigating port charges as well as Transnet’s rail services.

Bonakele said abuse of dominance by state-owned companies could be just as damaging as that of private ones, citing the devastating effect SAA’s behaviour had on the now defunct ConstructionJournal

rival Nationwide. SAA was fined more than R100m.

Bonakele said a steady increase in the size of imposed fines by the Competition Tribunal, from about R10m that prevailed about 12 years ago to R1.5bn recently imposed on steel producer ArcelorMittalSA. If companies persisted with cartel behaviour, abuse of dominance or excessive pricing, the commission would call for heavier penalties. The tribunal can currently impose up to 10% of annual turnover.

Cartel conduct was criminalised through recent amendments to the Competition Act but no one has yet been prosecuted with this.

Bonakele said it was a "hugely complex" exercise to investigate and prosecute such cases, and he did not expect any quick wins. The commission was in discussion with the National Prosecuting Authority on how to proceed with these matters.

The absence of class action legislation in SA made it very difficult for the victims of cartel behaviour to sue for damages.

Ratshisusu said provisions offering leniency to market players who provided information about cartels had proved effective as the incentives to come clean were high.

Most cartels investigated by the commission had been exposed on the basis of such information.

More difficult to unravel were cartels that operated by signalling prices to each other without reaching a formal agreement to fix them.

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SOLAR ENERGY

South Africa bets big on Urban Solar Farms

SolarReserve South Africa Limited has been awarded the grant to advance its “Urban Solar Farms� initiative in South Africa. This is a research concerning large metropolitan municipalities and geared at providing a framework for large industrial and commercial electricity consumers with significant renewable electricity power requirements.

The grant will be used to develop up to 200MW of solar farms ranging in size from 5 to 30MW. The projects will be owned and operated by private individuals and will supply power to end users either directly or through wheeling arrangements with municipal distribution companies.

Most of the projects are ground-mounted systems, meant to address the problem of restricted roof space. The systems will be put up in place with a high demand for daily energy consumption. In addition, Urban Solar Farms will use the integration of solar power with energy storage to offer energy during demand seasons in addition to ensuring grid stability and help defer utility substation and network upgrades.

It is hoped that urban solar farms have the ability to fill an energy supply gap in South Africa for small generation projects that will guarantee a reliable, clean supply of energy

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for customers with big energy needs.

SolarReserve is specializes in development of energy projects and so developed a total of 246MW of solar capacity in South Africa. The company was selected by the U.S. firm Mott MacDonald, Inc., a global management, engineering and development consultancy with presence in over 140 countries, to carry out a critical research that will support SolarReserve with various technical, economic, financial, legal, regulatory, permitting and commercial inputs in order for SolarReserve to finish its strategic analysis and to progress financing and begin implementing the projects.

The agreement was signed during the US-Africa Business Forum that was held in New York City, which is focused on strengthening trade and financial ties between the United States and Africa.

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SOLAR ENERGY

Innovation firm Crystal Lagoons triggers real estate revolution in Africa Multinational innovation company Crystal Lagoons has recently announced its involvement in real estate projects worldwide that will represent $10 billion in investment over the next 10 years. The company is in discussion with property developers for a number of projects across South Africa and the wider continent, two of which have a total value of R3 billion and will be situated in prime real estate in Johannesburg.

These developments will bring the unlimited size bodies of crystal clear water to urban areas, adding an idyllic beach lifestyle to the world’s major cities and enabling a wide variety of water sports, including swimming, kayaking and paddle boarding.

“Crystal Lagoons’ award winning technology, which is patented in 160 countries, has revolutionized the real estate market in every country it has entered. When it comes to building a Crystal Lagoon, location need not dictate what is possible.” says Alastair Sinclair, Crystal Lagoons’ Regional Director for Africa.

“We have the opportunity to bring this game-changing concept to South Africa’s inland metropolitan areas, as a Crystal Lagoon can be constructed in the middle of cities miles away from the coast, at very low construction and maintenance costs. The addition of “The World’s Top Amenity” has resulted in unprecedented increases in sales rates and prices of properties,” he added.

Crystal Lagoons boasts 400 projects in 60 countries, and it’s the patented sustainable technology used that makes it particularly appealing for developers needing a water and energy efficient amenity to enhance their projects.

Pricewaterhouse Coopers’ (PwC) “Real Estate 2020: Building the Future” identifies that global megatrends such as rapid urbanization, technology and sustainability will drive growth in the real estate industry across Africa over the next four years. In South Africa specifically, it is estimated that 71% of South Africans will live in urban areas by 2030, with more people moving to major cities such as Cape Town and Johannesburg each year.

“Sustainability is a key factor driving all new developments in Africa, and as a company, Crystal Lagoons places enormous emphasis on solving some of the world’s greatest challenges such as water and energy scarcity. Crystal Lagoons can use any type of water – fresh, salt, or brackish (which has no alternative use), providing a sustainable solution for the efficient use of water resources,“ adds Sinclair.

The technology requires 100 times less additives and half the energy of conventional swimming pools. When a Crystal Lagoon is filled with fresh water, it uses 30 times less fresh water than a golf course of the same size and half the fresh ConstructionJournal

water of a park of the same size. Property developers in urban areas are now able to offer a lifestyle comparable to that of a beach resort, paired with an energy and water efficient technology which makes it a more sustainable amenity than a golf course or park.

Additionally, Crystal Lagoons technology is effective in lowering the carbon footprint of real estate developments, as the lagoons can be incorporated into the heating and air-conditioning systems of surrounding buildings and can generate a reduction in electricity consumption by up to 50%.

“We look forward to bringing Crystal Lagoons to the people of Johannesburg, and to other big cities needing a recreational amenity that improves the urban lifestyle of South Africans, and increases the value of the properties around it,” says Sinclair.

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2016 South African Construction Awards winners announced On Friday night, 07 October 2016, the winners of the 9th annual South African Construction Awards were announced. The event took place at the Southern Sun OR Tambo and was hosted by the Malvern Guarantees and Jozi Media,with 15 prestigious gold certificates presented to the very worthy winners of the South African Construction Industry Awards 2016. The South African Construction Awards™ is the 'Oscars' of the South African construction industry.

Over 200 guests from the South African and UK construction industry applauded the finalists and celebrated the various winners.

Awards winners: Contractor of the Year Inkanyeni Group CEO of the year Lindiwe Mazibuko Employer of the Year Gamount Housing Project Management Company of the Year Triviron Project Management Construction Site Security of the Year FBI Control and CCTV

Public Sector Excellence of the Year Hydraform Training Initiative CETA IT Company of the Year Standardbank Bizconnect Portal Best Property Developer of the Year Percy Lethabong Development Best Construction Supplier of the Year AJ Mining & Industrial Supplies Tomorrow company of the Year Ratehang Projects Woman in Construction Noluthando Molao Engineering Consultancy of the Year DSM Construction and Supplier Green Construction Journal’s Personality of the Year Phenyo Mathopa Lifetime Achievement Award DR Richard Maponya

The event was a huge success and we like to thank our title sponsor Marlvern Guarantees, our categories sponsor ASITE, SEDA incubators, Public Works, NHBRC ,Corobrik, KUNTWELA ENZANSI VENTURES and Jeep .

We are inviting everyone to the 10th anniversary for the SACA at Sun City www.saconstructionawards.org.za | Email: info@saconstructionawards.org.za

“The South African Construction Awards is a super event and a chance to network whilst celebrating the best of what construction and engineering does� SABC Group Executive of Corporate Affairs, Hlaudi Motsoenen

Dr Richard Maponya family from Maponya group thanks everyone for observing the outstanding work that Dr Maponya has don by building first Mall in the township of Soweto

Noluthando Molao, Associate Director at Turner & Townsend said she was very honoured to receive the 2017 Women in Construction award

T he President of the SA Construction Awards Mr Uloyiso Ngavu said to all delegates Winning nationally is an outstanding accomplishment and is a testament to "merit the SA building & construction sector" and the companies who choose to build that way

ENERGY INDUSTRY

Energy sector gets two-handed boost SA’s first two privately owned coal-fired power stations, which were given the go-ahead by Energy Minister Tina Joemat-Pettersson on Monday, will produce electricity at prices well below what it is expected it will cost Eskom to produce electricity at its new mega-power stations, Medupi and Kusile. The announcement of the winning bidders for the first two coal independent power producers (IPPs) follows closely on an equally significant announcement a week ago, calling for the construction of two liquefied natural gas to power plants by IPPs at Richards Bay and Coega.

Together, the news will restore market confidence that the IPP programme is back on track, after doubts were cast on it by Eskom, which said it was reluctant to sign new private sector off-take agreements.

The preferred bidders selected for the coal IPP were Thabametsi — comprising Japanese firm Marubeni and a black economic empowerment consortium including Royal Bafokeng Holdings — and Khanyisa, comprising Saudi energy giant Acwa and a black economic empowerment consortium of which Thebe Energy is the largest partner.

Joemat-Pettersson said at a media briefing to announce the preferred coal bidders that both companies had submitted prices well below the stipulated qualification price of 82c/ Kwh, which would escalate with the consumer price index.

Khanyisa came in at 80c and Thabametsi at 79c.

While Eskom insists that it will cost 77c to generate electricity at Medupi, independent analysts estimate the price is upwards of R1,05, given escalating capital costs and delays.

Foreign investment of about R4.9bn is expected for the two R40bn coal power projects that will be constructed in Limpopo and Mpumalanga over the next five years and will produce 863MW of electricity.

University of Cape Town professor Anton Eberhard said the significance of the new coal IPPs "was that the prices have come in very competitively with Medupi and Kusile".

"The private sector has committed to a cost that is fixed and can increase only by inflation, while Eskom’s costs can increase far more than that."

The two proposed gas IPPs — with investments amounting to R52bn — were also of importance to the development of

ConstructionJournal

the power sector, because gas-to-power plants could readily be used "to fill in the troughs" that renewables leave when the wind is not blowing or the sun not shining, he said.

Meanwhile, Bloomberg reported that Siemens was considering participating in the gas-to-power projects.

Siemens SA CEO Sabine Dall’Omo told the news agency that the company had had "significant discussions" with potential partners about bidding for the contracts.

She emphasised, however, that Siemens would require "certain clarity" with regard to the role that Eskom would play in the gas-to-power programme.

At Monday’s briefing Joemat-Pettersson again emphasised the government’s support for the IPP programme. JoematPettersson also said that the long-awaited Integrated Energy Plan (IEP) and Integrated Resource Plan, which will set the framework for SA’s energy plans for decades to come, would be released for public comment shortly.

The plans are to be discussed at a Cabinet committee meeting on Wednesday and submitted to the full Cabinet next week.

Critically, the plans will indicate government thinking on the share of nuclear energy in the total energy mix.

Energy analyst Chris Yelland said the new Integrated Energy Plan would send an important signal to industry as to how it should deploy its capital to meet the objectives of the plan. The lack of a plan had resulted in "energy planning chaos".

With greater amounts of independently produced power coming on stream as well as Medupi and Kusile, Eberhard cautioned that SA needed to beware of building excess capacity.

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COMING SOON STAY TUNED

Listen Live on www.mybizradio.co.za The Biz Breakfast Show (06:00 - 09:00) Positivity and empowerment are the heart of The Biz Breakfast.

Entrepreneurial values inform all of the content; delivered by a team whose diversity allows them to own the cherished space where doses of heavyweight intellectualism alternate with the fun and the frivolous.

The StartUp (09:00 - 12:00) Having big dreams -- like running your own business or turning your idea into a company that can change the world -- is pretty ambitious. And it's only possible if you build your startup on top of a solid business model.

This Woman’s Work (12:00 - 15:00) We believe women are a powerful economic force, we seek to capture the entrepreneurial experience of women-owned businesses, highlighting the obstacles as well as the accomplishments.

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The Hustlers (18:00 – 20:00) This programme is to support, celebrate and showcase the small business owners and entrepreneurs of SA. Through it, we reaffirm our commitment to ensuring that our young people play a robust and active role in the development of our country’s economy.

My Biz Radio is the uncluttered medium Contact us: Jozi Media House, 1 Bekker Avenue, Waterfall Business Park, Midrand, South Africa Phone: 0861 000754 | Fax: 08660 6052 | Email: info@MyBizRadio.co.za

an initiative by

Ms Gift Mpho Mogodi Managing Director

ConstructionJournal

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Please tell us a bit about Ratehang and its origins.

What is your core business, who owns the company, when was it founded, etc.

Ratehang Projects is an independent, black female owned South African Professional Civil Engineering business that provides clients with expertise and innovative solutions in Civil & Structural Engineering, Engineering Project Management, Building Construction, Refurbishments, Property development and Plant Hire.

The company was established in 2004 and it started trading since 2007, the business has 8 years of experience in the construction industry. Ratehang’s Managing Director Gift Mpho Mogodi is a qualified Civil Engineer with over 14 years’ experience in the industry.

How unusual is it to find a black, female-owned professional civil engineering business in SA today and what does this signify to women thinking about a career in this field?

You need to bold enough to tap into this male dominated industry. One must know before choosing this career that the lives of people are in our hands because you will be building different infrastructures which need to be sound and which are to be of superior quality. We need professionals who don’t construct buildings which are collapsing and roads which don’t reach their lifespan due to lack of knowledge and inferior quality. Women who want to be on this field they really need to have passion and eager to learn every day and be hands on.

What do you specialize in?

Civil Engineering, Structural Engineering, Construction and Project Management

including

Refurbishments Plant hire and Property development

Who are some of your major clients?

Department of Infrastructure Development, Department of Health, PRASA, GROUP FIVE,WBHO, EDWIN.

You say the company is actively contributing to building a better South Africa. In what ways are you achieving this?

As Ratehang Projects we do our share to assist in the eradication of poverty by the creation of decent employment in our sector for our beautiful country.

We are transforming the image of our public institutions to have similar images like our private institutions.

We provide training opportunities to engineering students and graduates in order to build broader participation in a field with a scarcity of young black talent.

Please tell us about your own qualifications and background with the company?

Academic Qualifications: National Diploma in Civil Engineering (Technikon Northern Gauteng) (1998) B-Tech in Construction Management (University of Johannesburg) (2003) B-Tech in Transportation Planning (University of Johannesburg) (2003) Diploma in Advanced Project Management (Damelin) 2005 BSc(Honours) MOT – University of Pretoria 2016 ConstructionJournal

Membership: Member for ECSA, SAICE and IPET Candidate Member for SACPCMP Ratehang’s Managing Director Gift Mpho Mogodi is a qualified Civil Engineer with over 13 years’ experience in the industry and is hands on in the business on daily basis.

Ms. Gift MphoMogodi is very active on Ratehang Projects and her role is of being a Project Manager to all the projects.

What is the essence of your Corporate Purpose?

Being passionate about People, Quality and the Environment.

Ratehang Projects cc delivers superior professionally managed projects through excellent service delivery and the highest quality products provided.

Ratehang Projects cc delivers all projects on time and within budget to ensure maximum financial return, ensuring long term growth and stability, which will maximise stakeholder value.

We aim at all times to improve the quality of our employees through impartial employment, equal opportunities and continual development.

You say that at the heart of “Ratehang”, a Sotho word meaning “to be loveable”, is shared success and quality in all you do. In what ways are you actively contributing to improving the quality of industry skills and making a lasting impact?

As a black women Engineer however I have had to overcome many difficulties and stereotypes. I am therefore especially committed to the development of engineering talent in young women who have had to overcome hardship, or have had limited access to opportunity. This includes women from rural areas and the disabled. We want to advance knowledge and skill by hands-on learning. Embedded in this is our drive to deliver quality outcomes, often sorely lacking.

What is Ratehang’s vision?

Ratehang Projects cc vision is to excel in the construction industry and become an even greater force to be reckoned with. We strive to be one of the preferred construction companies in the country. Long term growth and stability is our future vision for Ratehang Projects cc and this will be achieved through satisfied customers and committed personnel working in a value added partnership of shared objectives and values.

What long-term growth strategy do you have in place?

The long term plan is to have qualified engineers that will ensure that Ratehang Projects has the capacity to provide comprehensive construction services for the efficient development and implementation of any project within the construction industry.

Our fundamental value is to build positive, longterm relationships with our customers; relationships characterised by mutual respect, by courtesy and integrity, by a helpful, effective response to customer needs and concerns, and by a strong commitment to providing products and services of the highest quality, value and usefulness.

To anticipate our customers' needs and exceed their expectations and understand and solve our customers' problems.

Ratehang Projects is proud of our reputation for being trustworthy with a proven track record of delivering

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Ratehang Projects is reliable, even at short notice and in emergency situations and we will continue serving our clients with pride and dignity.

We will continue to offer experienced advise that is always in the clients best interest, offering alternatives that will assist to resolve issues We have good and healthy financial indicators and reputation around a reliable business with a proven track record.

The construction market has grown substantially in the past few years, and is set to expand with more infrastructure on the way. Ratehang Projects prefer to concentrate on their core businesses. This is where Ratehang has seen an opportunity and we believe we can deliver beyond expectations.

• Stacking, storage, stockpiling • Fauna & flora - conservation • Noise - pollution • Social & heritage – graves & archaeology

What plan is in place to ensure Ratehang adheres to the highest standards of environmental protection throughout all phases of construction?

By following the steps below: Management System Standard ISO 14001(Environmental) - Implementation

Please tell us about your BBBEE Profile & Training schemes.

THE BEE shareholding is 100% Black Woman Owned, level 3 BBBEE rating.

Ratehang Projects cc is aware of the need to advance the knowledge and skills of the previously disadvantaged South Africans. Therefore this firm undertakes to provide training opportunities to students and graduates for the purpose of narrowing the engineering gaps in South Africa and we undertake to advance the knowledge and skills of the previously disadvantaged South Africans.

How comprehensive is your environmental policy?

What does it entail?

Ratehang Projects Construction believe in the constitutional right of all employees, clients and communities to exist and work in an environment conducive to sustainable development and is committed to the highest standards of environmental protection throughout all phases of construction by upholding the basic principles of environmental management.

As such, Ratehang Projects Construction fully acknowledge a moral and legal responsibility for the safeguarding of the environment and the well being of all those affected by the Company’s construction activities.

Ratehang Projects Construction recognizes that: • A project exists within a physical and socio-economic environment which must be respected.

• All environmental impacts of a project should be addressed and managed responsibly.

You refer to greening your projects after completion.

Please provide a few examples of how this is achieved.

By planting trees, grass and flowers for our community after completion of our projects. It is all about appreciation and giving back to the community at large.

What separates Ratehang from its competitors in an environment that is plagued by fly-by-nights and shoddy delivery standards?

We believe what sets us apart are the following: Our Managing Director is a qualified Professional Engineer with expertise of more than 13 years within the construction industry.

• All interested and affected parties have the right to information relating to the environmental impacts of a project.

Competing on the basis of my intellectual capital (rather than size), which will be embodied in my team of highly skilled and innovative business, engineering and management professionals

• The broader community should, if possible, enjoy sustainable benefit from a project.

Delivering excellence and superior quality in all what the company will be doing

• Community support is essential for the successful completion and subsequent operation of a project.

Cultivating and maintaining long-term relationships with the clients at all levels

Key issues of Environmental Law pertaining to construction

Focusing on the chosen lines of business to provide the highest degree of expertise and continuous innovation.

We have the expertise in project management, Civil Engineering, construction and plant hire.

• Surface water – erosion & pollution • Ground water – management & pollution • Hydrology – protection of natural drainage lines • Air quality – dust & CO2 emissions • Soil – erosion & pollution • Waste management – hydro carbons

ConstructionJournal

These guiding principles will form the foundation of my ambitions, decisions and actions.

The above will also differentiate my company from the rest and as it will create, add enduring value because this is at the core of everything the company will be doing.

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GREEN CONSTRUCTION

SA leading the way in ‘green building’

South Africans are increasingly opting for green property solutions in both their residential and commercial investments. “Although greening a building - whether building new or retrofitting - can be expensive, the savings in future operational costs invariably make the initial investment worthwhile,” says Gray.

Richard Gray, Harcourts Africa Chief Executive Officer, says this is excellent news for property values in the future, and is increasingly setting the standard for planning and construction.

According to a recent study of industry stakeholders by USbased construction think-tank Dodge Data and Analytics, Gray says “green building”, that is, designing buildings to limit their environmental impact - is making strong headway in South Africa.

“It estimated that around 41% of the country’s construction activity in 2015 was green. This was the highest of the 13 countries surveyed,” says Gray.

“The countries surveyed include both mature markets for green solutions, such as Germany and the UK, and emerging markets such as India and Colombia. The average level of green construction activity across all 13 was 24%.”

Moreover, he says South African firms report high expectations of green work in future. Some 61% expect green building to account for more than 60% of their operations by 2018.

“Green buildings are rapidly becoming the big story of the real estate industry,” says Gray.“Conventional buildings make a significant contribution to greenhouse gas emissions, and consume large volumes of water.”

ConstructionJournal

From the perspective of environmental protection, Gray says green buildings make sense. It’s particularly encouraging to note that the Dodge study found that going green in South Africa was driven by a sense of it being ‘the right thing to do’, and by the requirements of clients.

“This shows that environmental concerns are increasingly integrated into the property market,” he says.

For South African property owners, the experience of power outages and escalating electricity tariffs make green solutions such as solar power a practical consideration.

“Although greening a building - whether building new or retrofitting - can be expensive, the savings in future operational costs invariably make the initial investment worthwhile,” says Gray.

“Green buildings are about comfortable and productive living that takes into account the realities of our environmental stresses.”

He says they are also an excellent investment - green features can add to the value of a property and make it vastly more attractive to buyers. And they are also the future - what is considered distinctly green today, will be standard in years to come.

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Small South African airport runs entirely on solar power A small town on South Africa’s southern coast just finished construction of the country’s first “green” airport. From its control towers to its escalators, the regional airport in George, South Africa, will run exclusively on power supplied by 2,000 solar panels.

The panels have the capacity to supply up to 750kW each day, nearly twice the required 400kW. Any excess energy will be transferred to the municipal power grid, with a running clock inside the airport tallying the number of households powered by the system.

With 700,000 annual passengers, George Airport has a small fraction of the traffic at the country’s busiest, O.R. Tambo International Airport in Johannesburg. But since its construction in 1977, George Airport has established itself as a shipment hub and through point for golfers heading to the region’s many courses.

The South African airport is the newest but not the first solar-powered complex of its kind. In 2013, the Cochin International Airport in the southern Indian state of Kerala began supplying part of its demand with green energy generated by solar panels located on top of its terminals.

ConstructionJournal

By August 2015, the airport had erected more than 46,000 solar panels on a 45-acre plot on site. That same month, the airport claimed to be generating at least as much energy as it consumed.

Honorable as its sustainable effort seems at first glance, George Airport’s decision to rely on the solar power in a region with somewhat unpredictable weather may raise eyebrows. However, despite sporadic clouds, the airport says it manages to produce energy even on overcast days.

More importantly, the airport considers itself an example for similar projects around the region.

“The thinking was if we put (the solar system) in the worst unpredictable weather, it will absolutely work in any other airport in the country,” George Airport’s maintenance director Marclen Stallenberg told AFP

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It Doesn’t Cost to Build Green, says Study Building green costs on average only 5% more than conventional building, according to the Green Building Council South Africa (GBCSA).

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Despite the growing recognition of sustainable practices and green buildings, concern within the facilities industry continues due to lack of accurate quantifiable information regarding the financial cost and economic impacts of highperformance buildings.

A new report published this month by industry associations has revealed that the average cost premium of building green over and above the cost of conventional construction – or green cost premium – is a mere 5.0% and can be as low as 1.1%.

The study compiled by the Green Building Council South Africa (Gbcsa), the Association of SA Quantity Surveyors (Asaqs) and the University of Pretoria (UP), includes cost data on a total of 54 Green Star SA office buildings certified through the GBCSA Office v1 tool up to the end of 2014; 33 of which are in Gauteng, 11 are in the Western Cape and 9 in KZN. Manfred Braune, chief technical officer of the GBCSA says that the study was undertaken to analyse the actual cost premium of building green in South Africa, and challenge the belief that green buildings cost much more than conventional building. “South Africa has seen exponential growth in certified green buildings, from the first Green Star SA building in 2009 to the 165th in June 2016. Despite this, there are many more buildings that could be going green but are not.

One of the barriers has been the apparent green premium that many developers or building owners have thought going green would cost them. In the early 2000s, globally and locally a myth was perpetuated that green buildings cost 20-50% more than conventional buildings. Several international studies were done a few years later that dispelled this myth, but South African data had not yet been collected or reported on, so was not included in the studies.

The findings of this study for the first time show that green buildings can be built for a negligible premium – between one and 10% – and that this premium is declining.”

Pursuing Green Star SA certification was found to result in an average green design penetration of 42.7% of the total project budget. Green design penetration indicates the extent to which the Green Star SA Office v1 Rating Tool has introduced green design into elements of a project, expressed as a percentage of the total project cost.

The study analysed the green design premium and green cost penetration in terms of location; construction area; base building cost; tenant mix; vertical façade to construction area ratio; Green Star SA rating levels (4, 5 or 6 Star); rating type (Design or As Built) and certification date; and rating tool categories, of which there are nine, totalling 69 credits.

As would be expected, the green cost premium increases as the Green Star SA rating increases, with an average premium for a 4 Star Green Star SA rated building being 4,5%, 6.6% for a 5 Star Green Star SA rating and 10.9% for a 6 Star Green Star SA rated building.

Interestingly, there was a slight difference in average costs in the three major economic hubs, and a correlation between the cost premium and penetration. Penetration was found to be slightly higher in the Western Cape (46%) versus Gauteng

ConstructionJournal

(41.8%) and KZN (40.4%), while the average cost premium in the Western Cape was 6.9%, 6.0% in Gauteng and 4.5% in KZN. It was also found that construction area had a significant impact on green building costs, with costs dropping from 9.3% for a building under 5000m² to 2.6% for buildings over 50 000m².

Danie Hoffman, programme leader for Quantity Surveying at the University of Pretoria says that contracts for larger buildings often benefit from more competitive tenders due to higher levels of productivity. “Economies of scale also result in larger developments having higher efficiency levels (and lower building costs per square metre) of installations such as lifts, escalators or air conditioning systems. So a large office development of say 28,000m² with a substantial budget of R350 million will therefore often be able to afford green building initiatives more easily compared to a building with the same specification level but 1,000m² in size and costing R14 million. Larger projects will also offer design teams more green design options/scope which all support lower green cost premiums.”

There were some interesting findings in the analysis of tenant mix. Firstly, from 2009-2011 only 20% of green buildings were developed for generic clients, or multi-tenanted buildings.

This escalated to 40% during 2012-2014. In addition, it was found that a building developed for a single tenant showed a significantly higher premium (8.1%) than a multi-tenanted building at 3.4%.

Hoffman says that this is because single corporate tenants often set more demanding specification levels and may also strive for a higher Green Star SA rating as part of corporate marketing and public image. “Such tenants will in most cases also provide design teams with more substantial budgets that can allow for more expensive, state-of-the-art green design solutions,” he adds.

Other noteworthy findings of the study include: • The green cost premium appears to progressively diminish over time, largely as a result of the growing maturity in the green industry; • Green cost premiums have been declining since 2011, indicating that the SA green industry is maturing; a higher vertical façade to construction area ratio yields a higher premium; • Two categories of the Office v1 tool (Energy and Indoor Environment Quality) received 58% of the allocation of the total green cost premium. This is because they carry a combined weighting of 40% and many of the credits of these two categories have a direct impact on the operating cost of buildings and on the quality of life experienced by the inhabitants of buildings. These credits are therefore often pursued by design teams.

Karl Trusler, ASAQS EduTech Director says of the Quantity Surveying firms who provided professional services on these buildings, “Their skills were ideally suited to providing the sophisticated data required to arrive at the findings, and determine the trends of this study.”

The findings in this report are very encouraging and, together with the findings from the joint MSCI/GBCSA Sustainability Index that shows that in South Africa green buildings yield a higher return on investment, they make a very strong business case for green buildings to developers, property owners and corporates,” concludes Braune.

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Green homes: The next frontier in sustainable building After South Africa’s rapid adoption of green building in the commercial sector, the focus shifts to the housing market. It has been ten years since South Africa’s rapid adoption of the green building movement – with eco-friendly buildings now being recognised as the standard for quality real estate.

Although terms like “environmentally-sustainable buildings”, “rain harvesting” and “off-the-grid innovations” have been bandied about for years in greenie or hipster circles, they have gained more credibility since green building initially took off in 2007 in South Africa.

Supporting this view is the number of certified buildings by the Green Building Council of South Africa (GBCSA), which has risen to 200 buildings from one certified building in 2009.

Going green has largely been in the office property market.

However, the next phase of sustainable building is expanding into the affordable housing market.

The certification of eco-friendly residential homes has been in the making since 2014 through the GBCSA’s rating tool called the Excellence in Design for Greater Efficiencies (or EDGE) for new houses being designed and built.

Since piloting the EDGE tool two years ago, the GBCSA is in the process of registering and certifying 5 300 residential homes. It is also targeting for 8 000 homes to be certified by the end of the year.

Speaking at the International Housing Solutions Affordable Housing Conference on Thursday, the EDGE managing executive at GBCSA Graham Cruickshanks said it’s targeting 52 000 green certified homes in the next seven years.

“We are hoping for green certification and green homes to be a norm in South Africa and to be business as usual for developers,” said Cruickshanks.

He said by 2020 the demand for electricity will rise by 46% globally, making the case for going the environmentally sustainable route strong.

The focus for greening homes is mostly for large residential developments –with the roll out free-standing homes, for certification, and less so apartment buildings and single home owner builders. To achieve an EDGE rating, housing units must demonstrate a 20% minimum energy, water and embodied energy savings.

The adoption of sustainable building in the commercial property sector in South Africa has been widely lauded by the international community. A recently published World

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Green Building Trends 2016 report, compiled by construction group Dodge Data & Analytics, indicates that South Africa has emerged as a leader in green building based on the level of commitments of green projects.

After South Africa’s rapid adoption of green building in the commercial sector, focus shifts to the housing market.

The country has the highest green building share, trumping countries such as the UK and the US, China, Singapore, Germany, and the historical green building market leader Australia.

The World Green Building Trends report expects more growth in residential projects in the green building market.

Private residential developers are already getting in green building act. Private equity firm International Housing Solutions (IHS) is forging ahead with its affordable housing development Ravenswood in Kempton Park, Gauteng – which is the first residential project in South Africa to achieve an EDGE design certification by the GBCSA. The development, which will boast 188 two-bedroom green homes, has demonstrated a projected total savings of 250 000 kilowatt-hours of electricity and more than 10 000 kilolitres of water annually, in its design. This translates into a saving of almost R600 000 a year or R3 200 in utility costs for each unit by applying EDGE-certified energy efficiency measures.

IHS owns over 8 000 units in the affordable housing market and has a mandate of investing in housing developments that are valued from R400 000 to R700 000.

IHS’ managing director Rob Wesselo said in all its affordable housing projects, the mandate is to make them 20% more efficient from an electricity, water and materials point of view. He stresses going green doesn’t have to be expensive, as simple measures such as using windows that allow for natural light, installing shower heads that conserve water and using clay instead of cement bricks can cut development costs.

Green features at Ravenswood will include the use of solar hot water collectors, efficient water usage through the installation of smart meters, roof insulation to ensure optimal energy efficiency, and more.

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CONSTRUCTION PRODUCTS REVIEW

proudly sponsored by

Hiab launches new tail lifts truck-mounted forklift Hiab, Cargotec subsidiary has launched its new truck-mounted forklift and new tail lifts during the IAA exhibition in Hannover, Germany.

According to Michael O’Reilly, Truck Mounted Forklifts Project Manager, the first of the new products, the Moffett M4NX, is the latest generation of the M4 range which has been made even better with a focus of added safety, easier servicing and more comfort to the operator.

“By making the M4NX as light as possible without affecting our reputation for having durable quality products, we ensure that the operators benefit by getting maximum payload on their vehicle, said O’Reilly. “The M4NX can effectively carry more than its own unladen weight – like an ant – thus ensuring maximum performance and maximum payload,” he added.

Additionally, some of the improvements include a seat presence indicator, which aims to ensure starting and operating the machine is safe and efficient, and an updated remote ground mount system, which now features a keyfob.

Nevertheless, the forklift can dismount from a truck in

under a minute and is well-suited to a variety of work environments. Such that, the M4NX in its design can negotiate very tight areas in terms of width and height, making it a very versatile piece of equipment. The new M4NX is available in a number of configurations in varying widths down to 1.9m.

Hiab has also unveiled three new tail lifts: the Zepro Z3N, the Zepro SZN 2000 and the Del FC500. Launching the new models, Hiab senior vice president of tail lifts Johan Sandberg says “each of these new tail lifts reflects our proven technology and pioneering spirit”. “They are reliable, easy to install and use, and allow more payload and speed for our customers,” he added.

The Zepro Z3N model is by far the lightest 750kg lift on the market, giving the opportunity to have more payload on your truck. Built with Swedish DOMEX steel and powder coated, the tail lift has an opening speed of 10 degrees per second and double acting tilt cylinders. It also has a narrow lift arm width and exterior fixed controls.

The second model from Zepro, the SZN 2000, features new shafts, longer lubrication intervals, and a ‘one size fits all’ concept to ease installation. According to Johan Sandberg, the new construction and standard with frame-built profile gives ZEPRO SZN 2000 stability while it’s mounted on the vehicle. The low profile improves also the ground clearance.

However, the final launch is the Del FC500, a one-piece full closure lift that will typically save100kg in payload compared to a conventional column lift arrangement. The new Del features an anodised aluminium finish and safety fence options, and includes a rear frame, top door and tail lift.

Floor Grinding and Polishing for concrete and stone LAVINA® floor grinding and polishing machines, manufactured by Superabrasive, have provided contractors with superior performance for over 10 years, and the latest LAVINA® X series is the most efficient, versatile and easy to use LAVINA® line ever.

New features include: chain-driven forced planetary drive (25” and up), updated heads design, metered water flow for more efficient wet grinding, improved handle locking technology for better stability, and a maintenance access window on the machine base for a ConstructionJournal

quick and easy belt maintenance (25” and up).

Superabrasive’s most popular grinder, the 30-inch propane L30G-X, offers some of the highest productivity rates and literally zero time to set up on the jobsite, with no electrical wiring needed. It features a low-profile base for reaching under cabinets and shelving, three large 13.5” heads, and now a FX600V Kawasaki engine.

The LAVINA® line also offers two Self-Propelled grinders in 25” and 32” models (not remote-controlled!). L32M-X-HV is ideal for big commercial jobs, and features a large 32-inch foot print, with six 9-inch heads, a powerful 25 hp motor, and up to 1000lbs grinding pressure.

The self-propelled drive guarantees a constant grinding speed and consistent scratch pattern. This minimizes the operator’s fatigue as well as the risk of mistakes going too fast or too slow, and improves productivity.

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KOBELCO USA Introduces New SK300LC-10 Excavator

KOBELCO Construction Machinery USA is announcing the launch of its SK300LC-10 excavator in North America.

As part of the KOBELCO Generation 10, the SK300LC establishes new standards in value, productivity and durability. This robust 68,100-lb model is powered by a 252hp Tier IV Final HINO engine, enabling it to easily tackle heavy-duty applications and remain as one of the most powerful and fuel efficient excavators in its class.

The SK300LC’s engine incorporates a Selective Catalytic Reduction system with Diesel Particulate Filters, which converts NOx into harmless nitrogen and water emissions; the dual system ultimately minimizes Diesel Exhaust Fluid and decreases NOx emissions by 88%, while providing the lowest possible operation costs.

The KOBELCO SK300LC delivers a dynamic bucket digging force of 37,300-lbf to achieve leading-class work volume, even while minimizing fuel consumption. Much of this boost in efficiency comes from a new hydraulic regeneration system, which aids the arm by reusing force generated by the boom, to further minimize energy loss and ensure outstanding performance.

Transferring all that power into the job required an enhanced attachment structure for the durable SK300LC. The new unit provides ample power to lift the heaviest of loads and the rugged construction to stay safe while you follow through. A higher boom foot cross-section, thicker arm-foot base plate and stronger foot bases are provided for added reinforcement. Additionally, a redesigned boss shape and boom foot improve overall stability while evenly distributing digging forces for optimum durability.

The SK300LC’s new travel motor increases traction force by 10%, enabling it to deliver a drawbar pulling force more powerful than competitive models – without sacrificing travel speed. The SK300LC is also equipped with independent travel, a KOBELCO exclusive feature that allows the machine to move, lift and swing simultaneously

ConstructionJournal

without experiencing loss of power. Furthermore, automatic swing priority instantly delivers full swing power during combined operations without switching modes.

Maintenance on the Generation 10 SK300LC is easy and cost efficient. Remote diagnostic and preventive maintenance systems utilize the latest IT innovations to virtually improve operating product lifecycle costs. Easy access to maintenance data from the operation management system greatly improves ease of maintenance scheduling and ensures a long service life. Operators can expect extended service intervals when it comes to engine oil, hydraulic oil, filter changes and greasing.

Operators can also look forward to staying comfortable in the new KOBELCO SK300LC, regardless of the work at hand.

A 25% reduction in pilot control operator force further lessens operator fatigue during long hours of operation.

The expanded cab provides wide access doors for ease of entry and exit, while windows on all sides offer excellent visibility, ensuring safe operation. Increased air conditioner capacity and additional ventilation outlets improve climate control and direct airflow. Furthermore, the adjustable suspension seat, AM/FM radio with USB, Bluetooth and auxiliary capabilities, large cup holder and ample leg room give operators a pleasant work environment on even the toughest of work days.

KOBELCO Construction Machinery USA offers industryleading crawler excavators in the 3,000 lb. to 245,000 lb. classes including zero tail swing, compact, standard, longreach, mass excavation, and demolition models. Well-known as the excavator authority, KOBELCO is committed to producing quality machines with advanced productivityboosting features and innovative technologies.

With premier capabilities such as no time limit power boost and exclusive independent travel, KOBELCO machines ensure superior performance and efficiency for the toughest worksite challenges.

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Larsen Products Adds New Nigerian Distributor to Strengthen Its Global Dealer Network Larsen Products Corp. welcomes its newest distributor Concrete Logistics Limited, based in Lagos Nigeria. The company’s newest authorized distributor will service Nigeria and other West African countries with Larsen’s line of concrete and plaster bonding agents.

“We hope by forming a strategic partnership with a world-leading manufacturer of innovative concrete and construction solutions, such as Larsen Products, will allow us to acquire knowledge, technology and productive resources to meet our clients’ needs and deliver excellent customer service,” states Koye Rhodes, MD/CEO of Concrete Logistics Limited.

Currently, Nigeria has the largest economy in Africa with petroleum as its leading export. The country has large deposits of minerals and has a huge service sector supporting the oil and gas chain with a significant market and population for goods and services providing significant growth opportunity for manufactures worldwide.

Continuing to expand its global footprint, the partnership with Concrete Logistics Limited will avail Larsen’s concrete and plaster bonding agents across Nigeria and other West African countries.

We are excited to bring our brand to another continent and partnering with Concrete Logistics- with its esteemed reputation for excellence and service- is quite an honor for us,” states Jeff Larsen, president of Larsen Products.

“We are looking forward not only to the potential growth opportunity for our company, but to be part of the continued economic globalization that is transforming Nigeria into a power economy.”

Samsung Electronics South Africa launches Digital Variable Multi (DVM S) Eco 14 HP Samsung Electronics South Africa has launch the Digital Variable Multi (DVM S) Eco 14 HP, a new side discharge variable refrigerant flow (VRF) air conditioner that is engineered to deliver a single outdoor unit solution for apartments and office buildings.

The improved performance of the Samsung DVM S Eco 14 HP ensures that it meets the increasing market need for a specialised single outdoor unit to reduce the cost of previous multiple loading and sub-duct installation in multi-room buildings.

The innovative design of the DVM S Eco 14 HP features a robust Inverter Scroll Compressor and corrugate fin, which improves heating performance by 20 percent and increases air flow by 10 percent compared to standard side discharge VRF units.

“Research and development (R&D), as well as design, play key roles in how we develop our products as we’re always focused on delivering cutting-edge technology and ensuring the products we deliver are highly efficient,” said Michael McKechnie, Director Digital Appliances Group at Samsung Electronics SA. “The DVM S Eco 14 HP delivers unbeatable performance among the side discharge VRF units and does so with the greatest energy efficiency, as well as the best use of space, with its unique compact design.”

Single Solution for Multi-room Buildings ConstructionJournal

The increased horse power of the DVM S Eco (maximum 14 HP) means that only one single outdoor unit is needed to manage the air conditioning requirements for an apartment or office building, in place of multiple costly units. All areas of the building are covered as the new unit also provides an extended piping length of up to 160 meters and an installation height of up to 50 meters. The width of the new DVM S Eco 14 HP is less than one meter (940 mm), maximising capacity and using space more efficiently, while the four-way piping enables convenient installation.

Greater Energy Efficiency The design of the Inverter Scroll Compressor in the DVM S Eco 14 HP has improved displacement and velocity due to its asymmetric design that reduces loss of friction. The use of robust materials means the unit is reliable even at a high speed of operation and ensures optimal oil supply and control. These key factors also contribute to the device’s efficiency.

Operating Temperature Range The unit also has the advantage of new Flash Injection Technology which increases refrigerant flow by 32 percent under cold ambient temperature and extends the heating operation range to -25 °C. In addition, the cooling range of the unit is widened to 52 °C. “Samsung continues to provide customers with superior products using our ground-breaking technology and leading innovations. We believe our new range of air conditioning solutions will greatly benefit them and increase their comfort levels through offering an ideal temperature both in the home or workplace,” concludes McKechnie.

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Shell Rotella introduces API CK-4, FA-4 Portfolio of Diesel Engine Oils Shell Lubricants has introduced a new portfolio of Shell Rotella heavy-duty diesel engine oils.

Shell Lubricants has introduced a new portfolio of Shell Rotella heavy-duty diesel engine oils.

Shell says its Rotella T4 Triple Protection 15W-40 and 10W30, along with Shell Rotella T5 Synthetic Blend 10W-30, are formulated to meet the specification criteria for the new API CK-4 service category for diesel engine oil. (Rotella API FA-4 oils will be available later this year.)

The new API CK-4 and FA-4 categories are driven by changes in engine technology to meet emissions, renewable fuel and fuel economy standards for reduced CO2 and other greenhouse gas emissions. In addition, the new specification refreshes test limits in response to changes in engine hardware and operating condition.

The last heavy-duty engine oil category, CJ-4, was introduced in 2006, and since that time, several engine tests need upgrading and older test hardware has become unavailable.

Shell recommendations for Rotella product selection: If the truck or piece of equipment was built prior to 2016, whether it is on- or off-highway, choose CK-4 oil, which directly replaces CJ-4 oils. For a 2017 on-highway vehicle, check with

the manufacturer before changing the oil for the first time, and if they allow an FA-4 oil, choose Shell Rotella T5 Ultra 10W-30.

Shell will also be introducing a Shell Rotella T6 Multi-Vehicle 5W-30, which will meet API CK-4 and API SN standards, allowing its use in both diesel and gasoline engines.

Carlson CP75 II Paver Upgraded to T4-Final

The Carlson CP75 II paver has a Tier 4-Final Deutz 2.9 L4 engine the produces 192 lb.-ft. of torque at 1,600 rpm, 10 percent more than its predecessor. Fuel economy is upped by 10 percent and horsepower by 20 percent at the low end.

The operator station has screed-mounted controls kept relative at all times to the operator and direct connect cable steering. The hood has been lowered by 4 inches, providing more operator visibility and overall safety around the machine.

ConstructionJournal

Hopper capacity is 8 tons, and the paver has horizontal sliding damper doors, a design that keeps obstructions such as utility boxes from damaging them while open. Ground clearance is 10 inches below the auger box while allowing for narrow width paving from zero to 4 feet by closing the damper doors.

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The Inkanyeli Group is a multi-dimensional and dynamic Built Environment Group of Companies that offers a turnkey solution for a range of services: Property Development, Property Investment.

Project Management, Construction and Management, Infrastructure Management South Africa faces major challenges in eradicating and delivering housing and although infrastructure is first world, there is a backlog of infrastructure development that has to take place.

The Group was established in 2004 to answer to these needs and over the last 12 years it has evolved into a multidimensional and dynamic group.

Our strength lies in our talented people a team full of energy, enthusiasm and ideas, with 60 years of extensive property, construction and project management experience amongst the senior staff partners.

The team has learned and gained supervisory and managerial competence and experience in large and small commercial, residential and industrial property developments as well as clear appreciation of challenges facing the established and emerging sectors of the industry in a fiercely competitive, transforming and increasingly globalized market and project conditions.

What is your company’s vision and mission?

Vision: To be the best preferred homegrown Built Environment partner.

Mission: To build a strong, credible, viable and sustainable Built Environment Group through expertise, experience and industry exposure.

What is the project hove you completed?

Novamoda Warehouse and Betty Street Precinct

Where was the recent project held?

Novamoda Warehouse is situated in Centurion Betty Street Precinct is situated in Jeppes’ Town Johannesburg.

What was the value of the recent projects?

Novamoda contract value R 17 020 597 Betty Street contract value R 29 520 000

What was the uniqueness of the project?

Honesty is the yardstick of any organization and Inkanyeli prides itself by adopting honesty as one of its core value and a principle it stands by amongst themselves and their clients.

Our team is committed to building sound relationships and trust with our clients and partners. The ability to deliver products and services according to a tested methodology it reflects groups’ ethos of meeting challenges with innovative solution.

Was a refurbishment of a Warehouse and Office Space.

Inkanyeli Group has a team that is reliable and dependable.

Clients are sure to get the best of both in their engagements with us, and projects are executed effectively and on time.

Clients can rely on our services and expertise and depend on our ability to make their project a success.

Was each project a lead project?

ConstructionJournal

Converting of office building to residential units.

When was the start and completion date of each project?

Project duration for Novamoda - 2015 – 2016 Project duration for Betty Street – 2014 – 2016 Ans: Yes

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For more info, visit www.inkanyeli.co.za

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GREEN Construction Journal PERSONALITY OF THE YEAR Full Name: Phenyo Mogoletsi Mathopa

Philosophy of life: Work hard, play hard

Position: Managing Director

Biggest Ever Opportunity: Starting Triviron Project Management

Date and Place of Birth: 22 September 1976 in the Free State Education: Bachelor of Science in Building with Honours; Post Graduate Diploma in Property Economics First Job: Assistant Site Agent for Grinaker LTA

Biggest Ever Disappointment: None, everything happens for a reason Hope for the Future: To have equitable access to business opportunities

Size of First Pay Packet: R50 000 per annum

Favourite Reading: Shantarama by Gregory David Roberts

Number of People under your Leadership: 20

Favourite TV Programme:

Company turnover per annum: R21 million

Dragons Den and The Amazing Race

Major clients: Regiments, Liberty, Stanlib, Telkom, City of Tshwane Metropolitan Municipality, Ekurhuleni Metropolitan Municipality, Independent Development Trust, PPC

Favourite Food: Salmon

Person who has had the biggest influence on your Life: My Mother

Hobbies: Mountain Biking; Motorcycling; Camping; Swimming

Person who has had the biggest influence in your Career: Craig Staveley

Car: BMW M4 Competition Package

Person you would Most Like to Meet:

Favourite Music: Lounge Favourite Sport: Triathlon

Pets: None

The Minister of Human Settlements - Honourable Minister Lindiwe Sisulu

Miscellaneous Dislikes: Lies and Deceit

Businessperson who has impressed you most:

SACPCMP; SAPOA; PMSA; GBCSA

Organisation membership:

Mr. Sisa Ngebulana

ConstructionJournal

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