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Construction
The business magazine for the construction industry APRIL 2014
WORLD
www.crown.co.za
Waterfall – Africa’s
FASTEST-GROWING URBAN NODE
SAFCEC
CHANGES ITS NAME
Massive water
TRANSFER SCHEME IN BOTSWANA
> CONTENTS
Key to grow the economy
04 Sustaining consulting engineering is key
says CESA president.
Resilient performance Despite
6 difficulties, the Aveng Group is solid.
Setting the standard Standard
12 Bank’s Rosebank offices sets benchmark
for green building.
COVER STORY
environmental considerations The geotechnical division
18 The balance between projects and the 12 of Stefanutti Stocks, based
integrity of environments. in Gauteng, offers the
design and construction
of various types of
Driving Africa’s fastest-growing piles, geotechnical
20 urban node Waterfall City has
investigations and
recently been launched to market.
reports, lateral support,
rock anchoring,
Island View Berth 2 upgrade This shot-crete, void fill/
22 forms part of the ongoing Port of Durban compaction grounding
upgrade. and specialist grouting.
Botswana’s massive water scheme 1
28 Scheme to ensure water for industry
growth.
22
centraliSING to a new world-
30 class facility Atlas Copco invests
further in Africa with new head quarters.
triple bottom line sustainability
34 The Bivane dam has had a remarkable
impact on the community.
REGULARS
36
Pomona challenge Piling for a new 4 Marketplace
warehouse in Kempton Park.
36 12 Environment
Precast ingenuity at Impumelelo
38 Innovative method could well herald a
18 Property
new era for large structures.
22 Project Profile
Efficient delivery The Jeffreys Bay
44 Wind Farm is a fast tracked project.
26 Projects & Contracts
Machine health and location: 49 Equipment
52 it pays to know The Barloworld
Equipment Monitoring Bureau.
54 Products & Services
44 60 Diary & Appointments
CONSTRUCTION WORLD APRIL 2014
COMMENT
The Green Building Council of South
> Africa (GBCSA) recently certified its
50th building. This an indication of the
growth in green building in South Africa
and also a compliment to the GBSCA
which (after just six years) has activated
widespread support for such buildings in
the commercial sector.
The GBSCA customised a rating system for is leading by example and
local use that is based on the Australian accelerating sustainability in
Green Star rating system. It uses this to set the built environment. From
standards for green buildings and provides 2012, nine government build-
clear guidelines as to what ‘green building’ is. ings have achieved Green Star
In South Africa it is a voluntary rating SA status.
system that allows the commercial property Organisations within the
sector to have their developments inde- financial sector are increasingly
pendently rated and certified. The tool for recognising the long term
new developments obviously encourage benefits of green building:
2
developers to minimise the future environ- increased rental rates, asset
mental impacts of developments. value, reduced risk of depre-
These include buildings with lower ciation, and higher tenant attraction and Green building is increasingly being supported by
energy and water consumption and lower retention rates. Banks are increasingly building government, business and financial institutions.
operating costs. green – Nedbank, Old Mutual, Standard Bank From top to bottom: The Department of
Environmental Affairs, Portside and the Deloitte
In 2013’s survey by McGraw and Hill called and Firstrand Bank are leading the way.
Building.
‘World Green Building Survey’, it is stated that In addition various businesses are also
51% of South African companies will build going the green route because of the obvious
green by 2015. This will most notably be in benefits. This is partly due to the fact that Green building has three big advantages:
the commercial markets and implies that developers are now keeping increasing utility for developers it holds bottom-line benefits,
outside investors, developers and owners costs, potential carbon taxes and stricter regu- it has clear environmental advantages and for
will have an increasingly important role to lations in mind. In addition most developers users of such buildings it has obvious advan-
play in the growing green building industry. have realised that green building can more tages – from an operational and a health and
As the built environment is responsible for easily retain tenants for longer than conven- productivity point of view.
about one third of all carbon emissions an tional buildings.
increased focus on green building becomes South African tenants now require
more important for government, developers buildings that provide healthier and more
Wilhelm du Plessis
and the general public. In South Africa it is productive environments while build-
encouraging to see that government, by far ings must be such that they can reduce EDITOR
the largest land owner and operator of land, energy resources. Twitter: @ConstWorldSA
EDITOR PUBLISHER PAID CIRCULATION:
Wilhelm du Plessis constr@crown.co.za Jenny Warwick (Fourth Quarter ’13)
46
ADVERTISING MANAGER PUBLISHED MONTHLY BY
Eugene Botha eugeneb@crown.co.za Crown Publications cc FREE CIRCULATION:
P O Box 140 (Fourth Quarter ’13)
LAYOUT & DESIGN
Lesley Testa
BEDFORDVIEW, 2008 4 645
Tel: 27 11-622-4770 • Fax: 27 11-615-6108
CIRCULATION TOTAL CIRCULATION:
Karen Smith PRINTED BY (Fourth Quarter ’13)
Tandym Cape 4 691
The views expressed in this publication are not necessarily those of the editor or the publisher.
CONSTRUCTION WORLD APRIL 2014
3 CONSTRUCTION WORLD APRIL 2014
> MARKETPLACE
KEY
GROW
to
the economy Consulting Engineers South Africa’s newly appointed President, Abe Thela and its
CEO, Lefadi Makibinyane.
Consulting Engineers Pipeline key cycle into account should be implemented
when procuring consulting engineering
South Africa’s (CESA) newly CESA is pleased that Government has services. Consulting engineers need to go
prioritised infrastructure development as
appointed President, Abe a key component of accelerated economic
back to their very important role of being
trusted advisers to the client providing
Thela, recently presented development. In his 2013 medium term advice on planning and design and its
budget policy statement Minister Pravin
his presidential message Gordhan allocated R827-billion to infra-
impact on construction operating and main-
tenance costs.
and theme for the year structure for the three year period ending
2015/16. They welcome this announcement
As an interim measure CESA calls on
at a function held in but are concerned government has not yet
Government to reintroduce quality as part
of the total procurement points calcula-
Johannesburg. With the revealed the project pipeline going forward.
The industry needs this information to
tion alongside price and BBBEE points.
theme of ‘Sustaining commit to long term planning and invest-
At the same time they challenge Govern-
ment to conduct a comprehensive research
4
Consulting Engineering ment in more resources. Although there
were delays in implementation since the
and review of the current procurement
system to determine its impact on the
is Key to Growing the NDP which was adopted at the end of 2012,
consulting engineering industry and infra-
the organisation is looking forward to an
Economy’ Thela stated that acceleration of this programme in 2014.
structure development in the country.
the National Development With Government’s plan to grow the Access to opportunities
economy and triple GDP by 2030 the
Plan (NDP) was created consulting engineering Industry has a There is a strong outcry from emerging
in order to develop South significant role to play in achieving this and small consulting engineering firms,
particularly those who are not specialist,
growth through infrastructure develop-
Africa’s economy. ment. Thela stated, “The consulting engi- over the lack of access to large projects from
neering industry is facing a number of government and public entities. These firms
challenges but by far the most challeng- provide an important vehicle for empow-
ing is how consulting engineering erment within, and transformation of, the
services are currently procured, as it is industry. CESA believes that the participa-
stifling the industry”. tion of emerging and small firms in large
overnment, through the
projects can be best facilitated by using
NDP, has identified infra-
structure development Quality key for targeted procurement procedures by either
specifying minimum participation goals as a
as key to the socio
economic development
procurement percentage of the contract amount or spec-
While CESA does not oppose competitive ifying portions of services which must be
of the country. Thela
bidding, which is a constitutional impera- subcontracted to targeted enterprises.
believes that the NDP and
its objectives will never tive, they do not believe that price should
come to fruition unless there is involvement be the determining basis. Infrastructure investment
of consulting engineers at the forefront of The organisation believes that it should KPMG estimated an infrastructure spending
this development. be based on quality taking into account the gap of R6,5-million between the planned
Consulting Engineering, although a bidder’s qualifications, experience, capa- MTEF and PICC infrastructure spending
relatively small sector, has a large multiplier bility and innovation. and the infrastructure spending based on
effect on the development of infrastructure The bulk of infrastructure cost lies in the NDP target of 10% of GDP. Part of this
as consulting engineers are the designers construction and maintenance with the spending gap will have to be funded by
that create the large scale infrastructure cost of consulting engineering only being the private sector. The NDP also intends to
projects that employ large numbers of 1 - 2% of the project lifecycle cost. So it raise the private sector infrastructure contri-
people during the construction, operation makes perfect sense that a procurement bution from 10% to 20% of GDP to drive
and maintenance phases of infrastructure. system that takes the entire project life the intended growth. CESA states that a
CONSTRUCTION WORLD APRIL 2014
MARKETPLACE >
Forward with CIVILUTION The 2014 SAICE Civilution
Congress
This congress will be held at Emperors Palace
The South African Institution of Civil Engineering (SAICE) from 6 to 8 April 2014 and will address many of the
inaugurated its 112th president, Stanford Mkhacane, at the SAICE issues facing engineering, including those raised
Presidential Inauguration and gala dinner recently. in Mkhacane’s address. Civilution is a new era for
engineering professionals motivating engineers
of all disciplines to conduct business differently.
Attending the event, various high-pro- infrastructure provision, especially when a six
> file guests, including champions of the year old child dies in one of the pit latrines still
It is also where engineers play the role of history
makers bringing about transformation, diversity,
infrastructure industry, government used in 11 450 of the 26 000 schools across leadership and evolution in our local and global
officials, engineering clients from both the the country? In the eyes of society civil engi- society for its betterment and of the quality of
private and public sectors, as well as SAICE neering may be seen to be failing.” life, with collaboration between communities and
members were challenged by the global As a civil engineering practitioner, born government. It aims to highlight the important
figures of 780 million people living without and bred in Mhinga in Limpopo Province, role that engineers can play in this sphere. Engi-
access to safe water and the 2,5 billion who he shares his views on what it would require neers are innovators and through innovation
lack adequate sanitation. Diseases caused from the civil engineering fraternity to ensure economic competitiveness arises. Civilution will
by unsafe water, inadequate sanitation and that learners in the remote and marginalised direct engineers along this path of intellectual
accompanying lack of hygiene kill more than areas within urban municipalities receive revolution where they have the power to impact
5 000 people each day. the necessary career guidance for making communities and create awareness of the need
In his address titled Taking Civil Engi- decisions on following civil engineering as a for our pivotal engineering skills.
neering to the remote and marginalised career. He suggests that individuals or groups
areas of South Africa and beyond – forward
with Civilution, which was motivated by his of professionals should infiltrate schools
background, Mkhacane discussed the seven by adopting them and then spending time
‘crocodiles’ hindering the delivery of services. influencing learners’ early subject choices
These include diminishing technical capacity towards engineering.
specifically in state institutions, quality of Mkhacane concluded his thought-pro-
engineering education, corruption in the voking address, “I am calling upon all civil
engineering profession, engineers’ effective engineering professionals – from Limpopo to
participation in the National Development the Western Cape, from Mpumalanga to North
Plan, technical leadership and learned society, West, from the Eastern Cape to the Northern
awareness of what engineering professionals Cape, from KwaZulu-Natal to the Free State
actually do, and career guidance schools. and Gauteng. Let us together embrace the 5
Mkhacane challenged all engineering spirit of Nelson Mandela; let us intone the
practitioners, “These days it is a common thing spirit of Mahatma Gandhi; let us emulate
to see communities toy-toying to register the spirit of Beyers Naude; let us follow
unhappiness with poor service delivery. the courage of FW de Klerk; let us put our
You may ask, what are we doing wrong? The South African Institution of Civil thoughts and energies together and take civil
I say we because as civil engineering profes- Engineering (SAICE) recently inaugurated engineering to all the corners of our country
sionals, how can we dissociate ourselves from its 112th president, Stanford Mkhacane. and beyond – forward with CIVILUTION.”
clearer project pipeline, more standardisa- a consolidated/joint BBBEE scorecard for service to receive preference over interna-
tion of deal structures, policy stability and joint ventures discourages the formation tional companies, who do not have a pres-
better information about the performance of joint ventures which are crucial for skills ence in South Africa, when bidding for work.
of projects at their various stages would transfer between large and small firms, Infrastructure needs a cadre of engi-
all encourage infrastructure debt invest- international and local firms as well as for neers focused not only on planning, design,
ment. SA business has further identified creating critical mass between smaller firms tender specification, evaluation and adju-
regulatory uncertainty, inclusive growth, to enable them to handle larger projects. dication but also on maintenance and
education and skills and labour relations as CESA proposes that a formula be devel- operation – localisation needs to be looked
affecting investor confidence. oped to enable calculation of consolidated at carefully as you cannot create employ-
CESA is committed to working with BBBEE scorecards of two or more entities ment and address inequality unless South
Government to address these constraints forming a JV. African companies are utilised to their
where they affect the consulting engi- With projects getting bigger and some maximum capacity.
neering sector. The potential of PPPs to taking more than three years to implement
entice private sector investors into infra- from design to construction completion, Lack of technical capacity
structure development is not fully appreci- CESA urges Government to review and align An added challenge is the serious lack of
ated in SA. Government must address regu- the Municipal Finance Management Act and technical capacity within Government.
latory constraints to unlock this potential. Municipal Systems Act. This will sort out In order for tender documents to be effective
the issue when appointments are made for they need to be prepared, and subsequently
Call for changes consulting services for a fixed three year tenders need to be evaluated, by competent
CESA supports BBBEE as necessary to term and the project runs over this period. engineers in Government or a consulting
transform business and contribute to the CESA is also lobbying to have consulting engineering consultant with input from
eradication of inequality – a NDP objec- engineering alongside other built envi-
tive. However, the current requirement for ronment professions designated as a local Continued on page 6
CONSTRUCTION WORLD APRIL 2014
> MARKETPLACE
RESILIENTPERFORMANCE
The Aveng Group interim results for the six months ended
31 December 2013 were released recently.
Aveng Group CEO, Kobus Verster.
>
Commenting on the results Aveng Despite Aveng Grinaker-LTA having an oper-
Group CEO, Kobus Verster said, ationally disappointing year in 2013, the
“The second half of 2013 was as operating group increased revenue by 10% to Key features
challenging as the first, with no R3,8-billion from R3,4-billion in the compara- • Revenue improved by 11% to
material improvement in infrastructure tive period. However the execution of current R27,6-billion (2012: R24,9-billion).
spending in South Africa and Australia. projects at lower margins, together with the
Market conditions, particularly in South still high level of fixed costs resulted in a net • Net operating earnings down by 8%
Africa, remain difficult but optimisation operating loss. Various initiatives have been to R503-million
programmes have delivered pleasing cost implemented to improve the performance of (2012: R544-million).
benefits across the Group.” Aveng Grinaker-LTA, including strengthening • Headline earnings per share down
Notwithstanding the challenges expe- of management capabilities. 21% to 82,1 cents compared with
rienced, a significant improvement was The segmental revenue from Aveng Mool- 104,5 cents in 2012,reflecting a
achieved in the performance of the Construc- mans and Aveng Mining Shafts & Underground substantial improvement against
tion & Engineering: South Africa and Rest of decreased 9% to R3,5-billion, while net oper- the immediate preceding six
Africa segment when compared with the ating earnings were 24% lower at R295-mil- months ended 30 June 2013.
immediately preceding six month’s result lion. Aveng Mining Shafts & Underground
ending 30 June 2013. performed below expectations largely due • Net cash position remained stable
to a combination of margin slippage at some at R2,4-billion.
Operating performance South African projects and problems experi- • Mining and Construction &
enced on a mining contract in Chile. This was Engineering: South Africa and Rest
The trading conditions experienced by the marginally offset by continued strong results
South African and Australian Construction of Africa operating segments’ order
at Aveng Moolmans, although it did not reach books increased by 18% and 22%
& Engineering businesses remained chal- the levels of the comparative period due to
6 lenging, with the Group’s performance respectively from June 2013.
the loss of a contract in Zambia.
adversely impacted by labour disruptions
contract execution and claim challenges in
the first half of the year.
Order book and prospects
started to lay the foundation from which the
The Manufacturing & Processing part of The order book is marginally down compared Group can strengthen its focus and optimise
the business performed well in a relatively to June 2013, at a still-strong R36,7-billion its performance. We nevertheless still have a
soft market, which was also affected by (June 2013: R37,4-billion). way to go to drive delivery of the full poten-
labour disruptions. The Group anticipates improved trading tial of our diverse business. The Aveng Group
Construction & Engineering: Africa and conditions in the second half of the year strives to ensure that the companies within
Rest of Africa saw revenue increased by 11% against its comparative period. its portfolio become leaders in the industry
to R4,2-billion. This improvement is mainly Kobus Verster said, “The past six months based on market share and profitability. The
due to the start of major contracts at Aveng have been characterised by consolidation focus in 2014 will remain on further strength-
Grinaker-LTA and increased activity on renew- and repositioning of the Aveng Group. ening our capabilities within the Construc-
able energy projects at Aveng Engineering. Through various interventions we have tion and Engineering operating groups.”
Government’s supply chain. Minister of on their performance of technical work. achievers by paying salaries comparable to
Finance, Pravin Gordhan, acknowledged those of other professions. When looking at
that consulting engineers are key, and the Eradication of corruption investment in a country the level of skills
exception, to Government’s ban on the use CESA is committed to fighting corruption in that the country has to offer is one of the
of consultants. Government does not have procurement processes and has increased many factors considered.
the capacity and this is particularly poor at its capacity and ability to do so by recently
Provincial and Local Government level. creating a litigation fund and also forming CESA ready to assist
CESA has made a number of proposals partnerships with other corruption fighting CESA fully supports the NDP but imple-
to partner with Government to assist with organisations. mentation is key and this is where Govern-
capacity. CESA member firms have the skills ment falls short and CESA and its member
and the capacity to assist Government in Basic education key firms are able to assist. CESA is ready to
unlocking infrastructure development. Education is another challenge facing engage and partner with Government to
The biggest issue is that the working the industry. Basic education is key to the address these challenges. The organisa-
environment for engineers in Government development of mathematics and science tion has been lobbying Government for
needs to be improved. Properly qualified capabilities within the country forming the years on these issues and more recently
and experienced individuals need to be foundation required for the development with National Treasury who are reviewing
appointed to critical Government technical of engineers. Teaching must be made to procurement regulations following CESA’s
posts and their contracts need to be based be a career of choice and attractive to top interaction with them.
CONSTRUCTION WORLD APRIL 2014
7 CONSTRUCTION WORLD APRIL 2014
> MARKETPLACE
Beyond 2014
In his recent State of the Nation Address, president Jacob Zuma
said, “In 2012 we unveiled the National Infrastructure Plan, led by
the President through the Presidential Infrastructure Coordinating
Commission. We have subsequently invested one trillion rand in
public infrastructure over the past five years. Many of the projects
are completed or are nearing completion.”
name
change
He declined to present the the much-improved matric pass rate and
> programme of action for the interventions aimed at bettering maths SAFCEC has announced that an
current financial year, stating “that and science. We also applaud their efforts
programme will be presented by the new to make further education more accessible
aspect of its name has changed.
government after the elections. both through the National Student Finan- It is now registered as the South
“While the construction industry is cial Aid Scheme and the construction of African Forum of Civil Engineering
grateful for the contribution the govern- additional FET Colleges,” says Johnson.
ment has made, it is disappointed that “We will continue to support govern-
Contractors (SAFCEC).
there are no plans, as yet, for it to continue ment’s efforts through our artisan, skills
SAFCEC goes back to 1939 when it
in this vein,” says Rob Johnson, executive
director of the Master Builders Association
and bursary programmes. However, these
can never be on the scale required to > was founded as the South African
of the Western Cape (MBAWC), a registered service the industry as a whole,” adds the Federation of Civil Engineering
trade association for employers in the executive director. Contractors, supporting established and
building industry. “It is our hope that the party elected on emerging contractors, irrespective of their
“The industry is still recovering from the 7 May 2014 will continue to build on the company’s size.
effects of the global recession and needs foundations laid by the current govern- Times have changed, and it has grown
to have some measure of reassurance that ment,” concludes Johnson. leaps and bounds. Forum now better
the government, regardless of whether describes its way of business – SAFCEC
it remains in the hands of the ANC or is presents a united voice on issues affecting
About the Master Builders the civil engineering contracting industry.
taken over by another party, will continue
to support it. Government is in the best Association (MBA) This name change could not have come at
8 a better time. In 2013 SAFCEC was presented
position to deliver a consistent workload
The Master Builders and Allied Trades'
to the construction sector and thereby with am opportunity to strengthen the
Association of the Western Cape is a
reduce the effects of economic cycles. Our organisation through restructuring to ensure
registered trade association for employers
industry has the capacity to absorb large it is well placed to improve service delivery
in the building industry. Its membership
numbers of unemployed people, and thus to members and to enhance transformation
comprises some 400 companies in
enable the development of skills, if a steady efforts internally as well as in the civil engi-
the Western Cape, most of whom are
workflow can come from government,” neering contracting industry. It sees the name
either builders, building subcontractors,
he continues. change as a significant symbol to illustrate all
building merchants or manufacturers
“In terms of training and skills devel- the changes and achievements to date as it
of building products. The Association
opment, we commend the government’s celebrates its 75th anniversary.
was founded in 1891 and is the oldest
achievements, particularly the increase in
organisation of its kind in South Africa. It
the number of enrolments at tertiary level,
is affiliated to MBSA, the Master About SAFCEC
Builders South Africa, but is
totally autonomous. SAFCEC is the leading voluntary employ-
er’s organisation for the Civil Engineering
The MBAWC's primary objec-
Contracting industry in South Africa
tive is to ensure that the repu-
registered under the Labour Relations Act.
tation of members in this area
Although the industry is united by profes-
remains high and that invest-
sionalism and the desire to collaborate,
ment in building is therefore
SAFCEC offers its members different areas
attracted to it. It does this by
of expertise and outlook.
insisting that Members work to
SAFCEC acknowledges that its members
the highest possible standards,
are diverse. It supports them by meeting
aesthetically, technically and
their individual needs for training, trans-
ethically – in short, that they formation, SHERQ, HR and labour rela-
conduct their business in a thor- tions, economic affairs and contractual
oughly professional manner at advice, irrespective of their size, so that
all times. Membership of the they can stay informed and operative in an
MBAWC is on a voluntary basis. ever changing demanding environment.
Its members handle some 70% SAFCEC finds that its members stay and
of all the building work in Cape flourish in an environment that allows them
Town and employ a similar to be their very best. SAFCEC enables its
percentage of the total building members to deliver a professional construc-
industry workforce. tion service by assisting them in taking care
MBAWC executive director, Rob Johnson.
of their employees’ safety and welfare, the
environment and the community so that
they can provide a foundation for our
CONSTRUCTION WORLD APRIL 2014 country’s development.MARKETPLACE >
ENHANCING ITS OFFERING
Binnington Copeland & Assoc- Richter went on to say that the poor
economic climate worldwide places
iates has been officially launched
greater pressure on contractors to
as a Hill International company. ensure that they are equipped with
the highest levels of expertise and
knowledge. “Some African companies
New York Stock Exchange listed Hill
> International, which is the global
have withdrawn from international
markets or are being more selective
leader in managing construction, in the projects they undertake due to
mining and general industry risk, last year the reduced margins and increasing
acquired local company, Binnington Cope- competition and this in turn results
land & Associates which provides commer- in greater competition for local work.
cial and contractual and training services. This scenario often results in an increase in the company can offer its clients local
At the launch in Sandton, Hill Interna- disputes as companies cannot absorb even knowledge and international expertise to
tional chairman, Irv Richter said the slow- minor losses. There is therefore an advantage effectively manage their risk.”Similarly BCA
down in industry is resulting in an increase in consulting Hill International through its staff will have an opportunity of gaining
in disputes as margins become so tight that subsidiary Binnington Copeland before such international exposure by being seconded
contractors find it difficult to absorb even problems arise.” to other Hill offices around the world.”
minor losses which the may have absorbed Although Binnington Copeland has BCA specialist company, BCA Training
in the more buoyant conditions of the past. assisted clients for over 25 years the compa- will also benefit from the transaction by
“The acquisition of Binnington Copeland ny’s acquisition by Hill will enhance the gaining access to an enlarged group of
coincides with an increase in demand for local company ‘s ability to find experts in trainers and resources thereby offering
our traditional services such as construction any discipline and extend its service to local clients’ staff training in local and
claims support and all forms of alternative clients wherever in the world they may be international contract issues. In keeping
dispute resolution including adjudication working. Chris Binnington, who will remain with Hill’s international policy of retaining
and arbitration as well as commercial and managing director of Binnington Copeland, local expertise and personnel and adding
contractual advisory services in sub Saharan says that with Hill’s over 3 800 professionals to these as required the local board will be
Africa where we have not previously oper- in more than 100 offices around the world retained with the addition of Irv Richter and
ated,” said Richter. Hill’s unmatched global footprint means that Dave Richter from Hill.
9
CONSTRUCTIONWORLD
CONSTRUCTION APRIL 2014
WORLD MARCH> MARKETPLACE
Solid results
despite challenging markets
In a year that mark’s Group and fully diluted HEPS (FDHEPS) of 201 cents
per share an increase of 39,6%, compared to
Five’s 40th year as a listed group, restated HEPS and FDHEPS of 145 cents per
earnings demonstrate an share and 144 cents per share respectively for
the comparable reporting period.
improved performance over the
comparable reporting period Operational overview
and were delivered following the The group’s underlying businesses – outside
of the Civil Engineering segment – performed
corrective action taken in the last in line with management expectations and Group Five CEO, Mike Upton.
two years, specifically with regard in accordance with the market guidance
provided in November 2013. The Civil Engi-
to the Construction Materials neering segment was affected by a decrease
cluster and the group’s Middle in profit recognition following management’s R2,2-billion (98% local). The segment repor-
more cautious view on the estimated final ted a 57,6% increase in core operating profit
East operations. completion margin on two contracts, one of from R30,3 million to R47,8 million.
which will be completed during F2014.
Civil Engineering
Investments and Concessions – Civil Engineering reported a 40,7% increase
Commenting on the results, Group
> Five CEO Mike Upton said, “The
5,4% of group revenue in revenue from R1,5-billion (61% local) to
R2,1-billion (54% local)
sentiment in our markets is gradu- Investments and Concessions consists
of transport concessions and property Civil Engineering experienced record
ally improving, with South African revenues, with the underlying business
demand still comparatively weak and the developments.
generating margins as guided in the group’s
timing of a recovery remaining uncertain. • Investments and Concessions delivered
10 November 2013 update to stakeholders.
The rest of Africa and Eastern Europe are another strong performance despite
However, margins have been impacted by
demonstrating more visible opportunity. weak concessions markets
management’s more cautious view on the
In terms of the Competition Commis- • Revenue, which consists primarily of fees estimated final completion margin on two
sion findings of anti-competitive behaviour for the operation and maintenance of toll contracts
in the construction sector, Upton said, “As roads, increased by 27,5% from R334,7-
previously communicated, the group secured million to R426,7-million Projects
conditional leniency from the Commission in Revenue increased by 16,8% from R872,7-
terms of the Commission’s Corporate Leni- Engineering & Construction –
million (19% local) to R1-billion (28% local)
ency Policy in return for full disclosure of all 20,2% of group revenue The secured one-year order book stands
matters that the group was able to uncover The E+C business was established to deliver at R1,2 billion. The full secured order book
during its internal investigation process. technology-based EPC, multi-disciplinary stands at R1,5 billion.
In late June 2013, it came to the group’s project management and construction, as
attention that the Commission is seeking well as operations and services solutions to
a proposed administrative penalty on four selected growth sectors such as power, oil
projects in which the group was implicated and gas and water. It continues to expand • Order book: maintained despite
and for which no leniency was granted. The rapidly off a burgeoning order book in power weak markets
group did not have sufficient evidence of its and oil and gas. ∗ good sector spread
collusive involvement upon which to admit
liability and could thus not responsibly Manufacturing – 6,8% of group ∗ geographically diverse, but
accede to the penalties and chose not to still value weighted to
revenue South Africa
settle hastily.
Manufacturing consists of fibre cement
Looking forward, Mr Upton said, “The ∗ significant African traction
building products business, Everite, as well
group’s total secured contracting order expected in H2 in power,
as steel fabrication businesses BRI and Group
book, which represents the Construction and mining and transport
Five Pipe.
Engineering & Construction order book,
• Revenue: growth achieved in
stands at R14-billion. Construction – 67,5% of group
target sectors
Financial overview revenue
• Profitability: in line with
Construction continued to be the largest
Group revenue from continuing operations expectations, excluding Civil
cluster in the group and its revenue increased
increased by 55,7% from R4,9-billion to by 37,4% from R3,9-billion to R5,3-billion.
Engineering
R7,7-billion, as a result of increased activity • Cash: pleasing retention of cash
in all of the group’s businesses. Building and Housing balance in tough market
Headline earnings (HEPS) of 204 cents Building and Housing revenue increased
per share represents an increase of 40,7% by 46,1% from R1,5-billion (91% local) to
• BBBEE certification: reaffirmed
as Level 2 contributor at 89,5%
CONSTRUCTION WORLD APRIL 201411 CONSTRUCTION WORLD APRIL 2014
ENVIRONMENT
SETTING THE
A new landmark has ome 4 000 parking bays
have been provided in a
provide the structural stability required in
the two office blocks.
emerged at the edge of basement consisting of
five underground levels. Pioneering green technology
Rosebank’s urban district. A one hectare land-
Pioneering technology such as floor to
scaped piazza provides
WBHO commenced a pleasant approach to the entrance and a
ceiling triple glazed façades has been
provided to project natural light into the
construction of Standard green breakaway environment for the staff.
deep space using clear glass. A ‘responsive’
The project has been awarded a 5 Star unitised façade was developed in collabo-
Bank’s new Rosebank GBCSA rating for sustainability. ration with German experts to control heat,
offices in June 2010 Structural phase
glare and sunlight. A single outer skin and a
double glazed inner skin envelops a sealed
and achieved Practical The structural phase of the project air-conditioned cavity.
comprised a combination of 185 000 m2 of Motorised, custom designed, alumin-
Completion in May 2013. suspended, normally reinforced concrete ium blinds within the cavity serve to
The 65 000 m2 of offices flat and coffer slabs on a column grid of
8,4 m and a further 25 000 m2 of surface bed.
harvest light by reflecting it into the space
while protecting it from direct sunlight.
now houses a workforce The below street level parking slabs were The blinds respond automatically to the
generally flat slabs while the office floor external illumination and climatic condi-
of 5 000 in two buildings levels incorporated an off-shutter exposed tions via sensors that track the sun.
raking slab edge that was used to make up
of nine and 11 floors the depth of the raised access floor void
The building generates a portion of its
own electricity from an Egoli gas main adja-
12
that are connected by a and coffer slabs on the atrium bridge links. cent to the site via a ‘Tri-generation’ plant
The walls of the fire escape stair shafts were in the basement. Also known as a CCHP
central glass atrium. constructed of in-situ concrete and these (combined cooling, heating and power
CONSTRUCTION WORLD APRIL 2014ENVIRONMENT
ABOVE LEFT: A set of five Dynamic/Rotary UPSs
have been installed to provide for the client’s
as normal standby generators and largely Saving water
replace the need for a static UPS system
requirement of three days autonomous full Various water saving measures reduce
electrical supply. and thereby obviate the need to replace and
dispose of the batteries at the end of their the building’s water dependency by up to
life cycle. There is also no requirement for 50%. A large underground tank collects
power factor correction equipment. water harvested from the basement
generation), this plant produces heating,
Other energy saving devices used subsoil drainage system as well as rain-
cooling and electrical energy simultane-
include a DALI or digitally addressable water harvested from the buildings atrium
ously from a single source, by using the
lighting system for the automated switching glass roofs. This water is used for irrigation
rejected heat to warm and cool the building
and dimming of lights. (The the quantity and non-potable applications. All sanitary
thereby providing a further saving on the
of natural light demands a much lower fittings were selected to meet the highest
use of electricity from the grid. Natural
degree of artificial lighting for most of the water efficiency criteria. Drip irrigation has
gas has the advantage of significantly
lowering carbon emissions and the heat day resulting in a lighting power density of been installed throughout the landscaped
that is rejected in the process is captured below 2,5 W/m2 per 100 Lux.) piazza to keep the 400 trees moist with
by an absorption chiller which converts the Escalators are designed to be power minimal evaporation.
energy into air-conditioning. saving by slowing to a crawl when not in A building management system moni-
The plant’s current 1 MW capacity covers use, while air-conditioning that incorpo- tors consumption via multiple water and
the buildings basic needs as it cannot be rates 50% more fresh air than conventional electricity meters and the like allowing
switched off at night but the capacity can systems, and uses a combination of 40% for the quick detection of faults in the
be expanded to potentially supply surplus air-cooled and 60% water-cooled chillers to system, manages the operating efficiency
power back into the national grid in future. provide the best balance between efficiency of multiple systems as well as managing the
A set of five Dynamic/Rotary UPSs have and water dependency. operational integration of these systems.
been installed to provide for the client’s Automated fabric roller blinds provide In line with the GBCSA rating require- 13
requirement of three days autonomous full protection from direct sun in the three ments, extensive use has been made of
electrical supply. These Dynamic UPSs act multi- level atriums. Continued on page 14
CONSTRUCTION WORLD APRIL 2014ENVIRONMENT
green and recycled materials. Over 85%
of all site generated waste and rubble has
been recycled, thereby reducing the impact
on landfill sites.
Minimising its impact
Prior to commencement of construction,
Standard Bank appointed an independent
consultant to develop an Environmental
Management Plan for the project. This plan
was implemented and monitored inde-
pendently by an Environmental Control
Officer throughout the project duration.
The project team undertook a pre-com-
mencement noise and dust survey to assess
the possible construction impact on local
residents and businesses. Noise and dust
levels were monitored and controlled over
the duration of construction. Vehicle traffic,
particularly trucks delivering materials to
and leaving site, were restricted to the main
routes and were not permitted to travel
through residential areas. churches in the Tembisa and Delmore areas rials and management time was provided
There was an existing filling station on to be used to provide cooking and heating from the site to assist with the construction
a portion of the site, prior to demolition, facilities at their premises. Bricks were of the Simunye Safe Haven, a safe haven
that had caused a considerable amount of donated to a church in Mpumalanga that for abused women and children, in West-
contamination of the area around the fuel was in the process of undertaking reme- onaria. The facility was officially opened in
tanks. This contaminated material was dial work to their buildings. Various mate- November 2012.
removed to a hazardous waste site and the
area rehabilitated.
Corporate Social Investment
14
The numerous site activities commencing
CommerCIally operational
with the construction of the concrete
structure through to the basic wet trades,
the services and finishes installation
and through to the highly technical final
building commissioning and integration
created in excess in 8 000 jobs on site. Satis-
fying both Greenstar and CSI opportunities,
waste and offcuts of timber used during the
construction phase was donated to four The Directors and Shareholders of the Metrowind Van Stadens
(MWVS) wind farm, announce that on 2 February 2014 the facility
completion milestone was achieved and the 27 MW wind farm has
Project information commenced commercial operations.
• Name of project: Standard Bank
• Project start date: June 2010 > The facility has been supplying
electrical power to the regional grid
Community Trust which was established
by the project developers as a vehicle to
• Project end date: May 2013 since late November 2013. MWVS deliver their Corporate Social Investment
wind farm will sell renewable energy to (CSI) programme. In addition to the divi-
• Client: The Standard Bank of
ESKOM for the next 20 years in accordance dends payable to the community trust, 2,1%
South Africa with the terms of the Power Purchase of the facilities annual revenue is being
• Main contractor: WBHO Agreement concluded between the parties channelled into socio-economic develop-
Construction in November 2012. ment and enterprise development within
The 27 MW wind farm is situated in the the community.
• Architect: Grosskopf Lombart
Nelson Mandela Bay Municipality in the MWVS wind farm has been under
Huyberechts & Associates Eastern Cape Province. Nelson Mandela development since 2006. It was selected
• Prinicpal agent: Grosskopf Lombart Bay is renowned for its excellent wind preferred bidder in terms of the Department
Huyberechts & Associates resource and is home to South Africa’s of Energy’s Renewable Energy Independent
‘windy city’, Port Elizabeth. Power Producer Procurement Programme
• Quantity surveyor: Norval Wentzel
MWVS wind farm is 100% South Afri- (REIPPPP). Construction of the R550-million
Steinberg
can-owned, with 35% attributed to Black project started in November 2012 and is
• Consulting engineer: Pure Economic Empowerment (BEE). A portion the first commercial wind farm operating
Consulting of the project is owned by the Metrowind under REIPPPP.
CONSTRUCTION WORLD APRIL 2014ENVIRONMENT
New Rest, Dunoon, Cape Town. (Photo: David Harrison)
Call for sustainable There are three entry
16
solutions categories:
Structural home Innovative prod-
ucts and materials to construct safe,
sustainable homes. This could include
components and systems for new,
Home improvement solutions for the low income housing self-built homes, or systems that add
bulk to an existing footprint in an
market, that are innovative, affordable and use green affordable way. Fire-proofing, sanita-
technology, could soon be available locally. This follows tion and flooding are key challenges
that could be addressed.
the call for entries to the Better Living Challenge (BLC) Comfortable home Products used to
competition that opened in February. create enjoyable interiors. These could
be affordable modular and space-
saving furniture ranges; products that
projects selected for the Cape Town World enhance temperature control and
>
The BLC is part of the Western
Cape Government’s 110% Green Design Capital 2014 (WDC2014) programme. light, energy and water efficiencies;
initiative, which encourages organ- CCDI executive director Erica Elk said, and systems offering privacy within
isations to commit to the Green “Millions of South Africans live in dire condi- multi-purpose spaces.
Economy. The competition is intended to tions in informal settlements, backyard Connected home This category calls
take powerful ideas to market and to provide shacks and RDP houses. The need is much for products and services that connect
a platform for consumers to experience and greater than the capacity and resources of a home to its surroundings and beyond,
interact with innovative solutions. government to deliver. digitally or physically. They could
Designers and innovators, inventors and “We need to find solutions for home include food production and waste
creators, students and professionals, manu- improvements that are affordable, result water systems, for example.
facturers and retailers (local and beyond SA’s in better living conditions and quality of Jenny Cargill, who leads 110% Green,
borders) are all encouraged to enter. life, and provide people with the choices said, “The challenge differs from the
Three winners will each receive support and resources to help themselves at their usual design contests. It encompasses
worth R500 000 to commercialise their own pace. There are many needs and also innovative marketing to test consumer
home improvement solutions. Students will many opportunities.” acceptance of the designs and products
compete for a R40 000 cash prize. Entries of new or existing prototypes and on show, hopes to encourage financial
The rollout will be project managed by products can be submitted from 1 March - 31 institutions to provide new financial
the Cape Craft & Design Institute (CCDI), an May (www.betterlivingchallenge.co.za). products to support self-improve-
organisation established in 2001 to promote Winners will be announced in November ment, and follow-up business support
and grow the economic sustainability of the 2014 and will receive tailored business to award winning manufacturers and
Western Cape craft and design sector. This and product support, starting the following designers in the subsequent year.”
competition (WDC#204) is one of seven CCDI year (2015).
MARCH 2014
CONSTRUCTION WORLD APRIL 201417 CONSTRUCTION WORLD APRIL 2014
ENVIRONMENT
Managing
ENVIRONMENTAL
considerations
The fine balancing act between developing
major public and private projects in
a manner that does not significantly
jeopardise the integrity of the environment
is a key focus for environmental scientists.
>
There have been significant developments in the way envi-
ronmental considerations have been managed over the
past 20 years, however, implementing environmental legal
frameworks within complex political, economic and social
contexts remains a challenge.
According to GIBB’s environmental licensing unit manager, Suken- transparency, accountability and responsibility to resolve potential or
drie Paras, environmental concerns need to be properly considered existing conflicts is equally important,” she continued.
from the beginning of any infrastructure development strategy. Of further importance to managing successful projects is stake-
With 10 years of experience in the industry, Paras specialises in holder engagement. When executing projects outside the country,
strategic environmental management and manages all environmental GIBB makes use of local social specialists to assist with communi-
licensing work secured by GIBB. Her expertise specifically lies in under- cation to raise a better understanding of the project and to ensure
taking all legislated environmental authorisation processes including compliance with the relevant environmental regulations.
18 EIA’s, water use licenses, waste management licenses and air emis- “In South Africa and Africa as a whole, community buy-in can
sions licenses. either make or break a project. Participation by the public is crucial
“We have seen the implementation of an array of impressive envi- to the EIA process, and we therefore need to be aware of the various
ronmental legislation throughout major African counties, not only social and cultural differences that exist within a particular country,”
aimed at conserving natural resources but also to ensure sustain- said Paras.
able economic growth. The challenge that exists however is not in “GIBB has poised itself with key local partnerships to break into
the formation of legislation, but in the thorough implementation and the African market and ensure that development projects are
enforcement thereof,” said Paras. assessed in an environmentally sustainable manner. Our aim is to
Executing an EIA in countries with a broad range of cultures and deliver projects that are not only compliant to all minimum environ-
political systems requires a skilful and systematic approach. Paras has mental legislative requirements, but that also meet environmental
completed many projects on the African continent including coun- best practice standards.”
tries such as, Nigeria, Lesotho, Zambia
and Botswana, where she has gained
extensive experience in overcoming the
various obstacles that hinder effective Gold standard in CORPORATE
environmental conflict resolution.
Paras stresses that the key to
managing successful projects is in
sustainability
the development of strong client
relationships. Johnson Controls, a global multi-industrial company with established core
“The most efficient projects are businesses in the automotive, building, and energy storage industries, has
those where there is a meeting of minds announced that Corporate Knights has again put the company on its 2014
between the client and the Environ- Global 100 Most Sustainable Corporations Index.
mental Assessment Practitioner (EAP).
While environmental constraints exist,
“Our selection is due to the hard work of our
>
it is important to consider the devel- The Global 100 is an annual
project and inclusion on the list 170 000 employees around the globe who
opment context in Africa, and instead
is limited to a select group of the recognise the importance of sustainability in
of hampering potential developers’
top 100 large-cap companies in the world. their work,” said Alex Molinaroli, chairman and
(public and private) goals, EAPs must
The Global 100 is recognised as the chief executive officer of Johnson Controls.
be resourceful enough to apply relevant
gold standard in corporate sustainability “Sustainability is at the heart of what we do
best practice methods and solutions
analysis and ranking. Companies named to for our customers and the communities we
to achieve both the client’s goals and
the Global 100 are the top overall sustain- serve.”Johnson Controls has been added to
mitigation of deleterious environmental
ability performers in their respective indus- this elite list four times since inception
impacts,” explained Paras.
trial sectors. in 2005.
“Good governance – information,
CONSTRUCTION WORLD APRIL 201419 CONSTRUCTION WORLD APRIL 2014
PROPERTY
(ABOVE) Morne Wilken, CEO of Attacq.
Atterbury Property Developments MD, James Ehlers.
Driving Africa’s
fastest-growing urban node
Atterbury Property Development and Attacq recently Novartis has concluded a deal for new corpo-
rate offices at Waterfall City spanning some
launched the mixed-use Waterfall City to market, 7 000 m2, for occupation in April 2015. From
December 2014, Covidien will operate its
marking the next wave of its ambitious commercial distribution centre of 11 000 m2 at Waterfall
development at the landmark Waterfall Business Estate. City. Atterbury began construction on both
premises in February.
It has already commenced work on
offices of 4 700 m2 for Dräger, 4 500 m2 for
>
The Waterfall mixed-use precinct Under construction at the nucleus of Water- Angle Shack, 7 500 m2 for Westcon and
is the largest urban concept fall City is the super-regional Mall of Africa. 4 000 m2 for Premier Foods.
20 development in South Africa – a At 120 000 m2, this is South Africa’s largest And, so far, four large projects have been
city superbly situated between Johannes- single-phase shopping mall development to completed in Waterfall Business Estate:
burg and Pretoria. Atterbury is driving the date. The R3,5-billion, two-level mall is set to the 44 200 m Cell C Campus, the 26 286 m2
commercial development elements across commence trading in April 2016. premises for MBT Technologies, the
the entire node. Waterfall City Netcare Hospital is already 23 139 m2 head office for Group Five and the
Waterfall City is at the heart of Water- fully operational. And, in November 2014, 6 198 m2 head office for Golder and Associ-
fall Business Estate, Atterbury’s staggering a 4 100 m2, 150-bed City Lodge Hotel will ates. In addition, Mall of Africa is attracting
1,6 million square metre mixed-use commer- welcome guests to the city. Atterbury has top international, national and bespoke
cial development. The exciting 800 000 m2 the rights to develop 1 200 urban residential retailers to Waterfall City.
mixed-use Waterfall City comprises around units in Waterfall City and Waterfall’s resi- Besides having everything needed for
60% of the entire Waterfall Business Estate. dential developer, Century will build on this safe, quality everyday living right within
Leading JSE-listed capital growth prop- in the future. walking distance, Waterfall City is linked to
erty company Attacq is the major investor in In addition to premium-grade corporate public transport both within and around the
Waterfall Business Estate, including Waterfall offices, Waterfall City will also accommo- precinct. It also enjoys easy access to major
City, with an 80% stake. date tenant-driven low-density office devel- routes and benefits from detailed planning
“This ground-breaking development is opments, including Maxwell Office Park, as for effective traffic flows stop.
a highlight in our portfolio. The continued well as motor dealerships and other busi- Waterfall City also connects seamlessly
roll-out of Waterfall Business Estate supports nesses hand-picked to benefit those who with the outdoors, featuring refreshing green
Attacq’s sustainable growth and perfor- come to Waterfall City to work, live, shop, spaces and parks. And the design also takes
mance. It has gained excellent market trac- stay and play in the fastest growing urban cognizance of the environment, making it
tion and is making pleasing progress,” says node in Africa. both green and efficient.
Morne Wilken, CEO of Attacq. “Waterfall city is a unique proposition. “Waterfall strives to promote an inte-
The tailor-made 330 ha new Waterfall Not only does it offer a vibrant mixed-use grated, eco-friendly environment which
City will feature everything expected from a environment and convenient contemporary provides good quality of life. Waterfall City
vibrant modern city. It embraces integrated, lifestyle, but it also has a great location and will embody this,” says Ehlers.
new urban living to the fullest with retail, its more affordable than other main nodes, With all this, it is no surprise that Waterfall
offices, homes, hotels, a hospital, parks, such as Sandton and Rosebank,” says Ehlers. is poised to become one of the strongest and
dining, entertainment and more. For business, Waterfall City – like the most successful nodes within the Gauteng
“Waterfall City is the whole package. rest of Waterfall Business Estate – offers market and in South Africa, with positive and
It is more than a city, it is a truly connected, the flexibility to respond to specific tenant far-reaching socio-economic benefits.
fully-integrated lifestyle,” says Atterbury Pro- requirements, creating efficient, tailor- “This vibrant city, with a modern new
perty Developments MD James Ehlers. made premises. urban framework, is growing to become
“Its design is inspired by the principles The list of leading companies to recognise an exciting contemporary landmark at
of walkable, energised, mixed-use environ- the impressive benefits of offices in Waterfall the forefront of development and lifestyle,”
ments to create a truly trailblazing city.” City is already impressive, and growing. says Ehlers.
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