HOUSING JULY 2013in Southern Africa

Settlements

Infrastructure

www.crown.co.za

FLEURHOF– gets top marks

GOVAN MBEKI 2013 AWARDS- the country’s best

PROTEA GLEN- mixed use development

MINISTER OF PUBLIC WORKS - on infrastructure

12NEWS Trustees in Arrears With Levies – Be Warned!

Emerging Talent

KZN Tops in Housing Delivery

Competition Commission Fine Major Players R1,46 billion

HOUSING The Country’s Best – Govan Mbeki Awards 2013

NASHO’s 10th Birthday – Tour of Social Housing Projects

Switched On – 5,6 millionth House Electrified

Top Marks – for Fleurhof Integrated Settlement

GPF Entrepreneur Fund

MIXED USE Protea Glen – A Thriving Mini-tropolis

SAARDA Resuscitated

CEMENT & CONCRETE Services & Contracts

Concrete Thoughts – Minister Thulas Nxesi

PPC’s Mobile Application for the Building Industry

BRICKS & PAVING Award Winning Products

New Innovative Range from Bosun

Claybrick Efficiency – 9 Star Energy Efficiency Rating

INFRASTRUCTURE Coega’s Construction Boom

The Bell Tolls for SANRAL

R131 million Underspent on Energy

INDUSTRY BUZZ, EVENTS & PRODUCTS Solid facts

Creating More Jobs – Clem Sunter

HOUSINGin Southern Africa

July 2013

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THE TEAM

ED’S NOTES

AVERAGE CIRCULATION(THIRD QUARTER 2012)

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HOUSINGin Southern Africa

Carol Dalglish • Editor

EDITORCarol Dalglish housing@crown.co.za

PUBLISHERJenny Warwick

ADVERTISINGBrenda Grossmann brendag@crown.co.za

DESIGNLesley Testa

CIRCULATIONKaren Pearson

READER ENQUIRIESRadha Naidoo

SUBSCRIPTIONSWendy Charles

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Disclaimer: Crown Publications can-not be held responsible for any errors or omissions whatsoever.

July 2013

A recent visit to Fleurhof, Calgro M3’s multi billion rand integrat-ed development on Main Reef

Road, south of Johannesburg, has changed quite a lot since my last visit. At that time the roads were blocked off and residents had access to their respective housing areas only. Since then, all the roads have been opened throughout the development making it more cohesive.

Social housing provider Madulam-moho Housing Association won the Govan Mbeki Awards 2013 for its Fleurhof View Project. The 286 social rental housing units offers safe, af-fordable housing for householders earning between R2 000 and R7 500 per month. The units have been fully occupied since the project’s comple-tion in April 2012. Madulammoho use biometric fingerprint access control and there is 24 hour security. Energy saving heat pumps make the rentals ever more affordable.

The school at Fleurhof overlooks the dam and there is talk of cellular network provider MTN making a sub-stantial donation to develop social recreation around the water site. Read more about it on page 14.

Another impressive development is on the Western tip of Soweto at Pro-tea Glen. After spending a day in the suburb, meeting the police, council-ors, some residents and chatting with school kids, I was even tempted to try the open air park sports equipment – but thought better of it! There is such a lot going on in and around Johan-nesburg and irrespective of where you are travelling, there is a sense of freedom and common community spirit in most of these developments.

When I stopped to take pictures, residents were really keen to open their doors and allowed me to view their homes. We chatted about what had been added and what they still want to do but more importantly, the immediate pride, friendship and openness was humbling. How many of us have that attitude?! More on Protea Glen on page 20.

As usual magazine deadlines seem

The great thing about site visits is the opportunity to meet the developers, project managers, realtors, social housing operators and a few of the residents in these integrated settlements

to come around too quickly and I almost cancelled my plans to go around Johannesburg’s inner city and Hillbrow with the National Associa-tion of Social Housing Organisations, who were celebrating their 10th birth-day. The event was memorable as we travelled through Hillbrow emerging from the dark and dingy side, to the well managed, safe and secure eKhaya Neighbourhood. A number of social housing providers and proper-ty owners have been instrumental in cleaning up Hillbrow block by block. Josie Adler, sister-in-law to Taffy Adler, CEO of the Housing Develop-ment Agency, have both championed social housing and the upgrading of Hillbrow for more than a decade. In Johannesburg’s inner city, Rory Gal-locher of the Johannesburg Social Housing Company took academics, government officials and other so-cial housing providers through the R40 million conversion of AA House. The building previously belonged to the Automobile Association. It now offers a mix of affordable social hous-ing apartments in the heart of the inner city and within easy distance to the largest transport hub on the continent. Read more on page 12.

It’s always exciting to see the changes ...

Sites for sore eyes

July 2013

News

She explains that one of the new sectional title regula-tions specifies that a sectional

title owner who is in arrears with levies may not serve as a trustee. “This is an issue we have been lob-bying for, and it is heartening to see that it has finally been addressed. It will ensure that trustees can now be relied on to hand over the debtors of the complex for legal action. In the past, a trustee who himself was in arrears, would be loath to initiate legal action, as he would also be implicated.”

The amendment - to Annexure 8, Rule 7 - states the nomination or appointment of a trustee cannot be made if that trustee is in arrears with any contributions payable by him in respect of his section and his undi-vided share in common property. In addition, there can be no nomina-tion or appointment if the individual has persisted in breaching conduct rules, despite a written warning by the trustees or managing agents.

“This will get especially interest-ing when an individual who has been nominated disputes that he is in arrears, or that he is in breach of conduct rules. We suspect that

many lively annual general meetings lie ahead,” she adds.

“The latest amendment says that if a current trustee is in arrears with levies or contributions pay-able, for more than 60 days, and fails to rectify the situation within seven days, then the trustee is no longer permitted to hold office.

Constas explains that she believes this amendment is way overdue.

Another regulation relates to a rule which catered for the temporary increase in the levy between the financial year end and the annual general meeting, by allowing an es-calation of 10%.

Constas elaborates: “Since this rule was deleted, there was a ques-tion mark hanging over what would replace it. The answer may lie in the insertion of Rule 31(4B) - which says that ‘the trustees may, from time to time, when necessary, make special levies upon the owners or call upon them to make special con-tributions in respect of all such expenses as are not included in the budget’.

An amendment has also been made to the regulation of the Deeds Registries Act which is relevant to sectional title, Constas reports. “Effective from May 2nd 2013, it stipu-lates that a fee of R500 will apply when any per-son seeks to re-solve a dispute by applying to the Chief Registrar for an arbitrator.”

Trustees in arrears with leviesFeathers are set to f ly in sectional t it le complexes around South Africa, following amendments to regulations, says Marina Constas, Director of BBM Attorneys and co-author of Demistifying Sectional Title.

The next change in the pipeline for sectional title role players will be the passing of the Sectional Title Schemes Management Act and Ombudsman Act, which Constas believes should become effective within this year.

“We are aware that a board has been constituted, and once the Ombudsman’s office has been set up, the Acts will be passed into law. Exciting times lie ahead, but only time will tell how the sectional title industry will be impacted,” concludes Constas.

For further information contact Marina Constas at BBM Attorneys on 011 622 3622 or email: MCon-stas@bbmlaw.co.za ■

Bradley Murray, Rawson Property Group’s franchise principal says that a very high percentage of cur-rent sales are coming mostly from young 25 to 35

year old couples, who appreciate the benefits of gaining a foothold on the property ladder.

PE demands affordable housingA surprise on the Eastern Cape property scene this year has been the demand for low cost housing in suburbs such as Gelvandale, Cleary Park and Bethelsdorp and the continued steady sales.

Murray says that the demand has not pushed up prices. “The vast majority of the homes we sell here are in the R200,000 to R800,000 bracket and are freestanding homes, with two or three bedrooms.”

He goes on to explain that there are relatively few sec-tional title units in this area.

Any correctly priced home in the northern suburbs, says Murray, will usually sell within five to six weeks.

Over 80% of the Rawson Property Group’s buyers have qualified for 100% bonds. This, he said, is due to a careful three week pre-qualifying exercise with buyers, which enables Rawson’s to weed out those with poor credit or employment records. ■

July 2013

News

Jacques du Toit, Property Ana-lyst Absa Home Loans, says that this is consistent with

a continued improvement in the Bureau for Economic Research’s building confidence index in the second quarter of 2013, which rose to its highest level since the fourth quarter of 2008.

The real value of plans approved for new residential buildings was up by 21,2% year-on-year (y/y), or R1,74 billion to R9,95 billion in the first four months of 2013 from R8,21 billion a year ago. The real value of residential buildings reported as completed was up by 12,6% y/y, or R808,15 million, compared to R7,2 billion in the period January to April from R6,39 billion in the corresponding period last year. These real values of residential building activity are calculated at

KwaZulu-Natal MEC for Human Settlements and Public Works, Ravigasen Ranganathan Pillay,

says the province delivered the high-est number of units in the country. “We were among the best and better than Gauteng or the Western Cape.”

The MEC was delivering the R3,6 billion housing budget for 2013/2014. He said in respect of houses delivered

in the past 18 months, beyond rou-tine snag lists, “We have not had any significant complaints about shoddy workmanship or general quality is-sues. The additional controls that we have instituted are bearing fruit.In the past five years KwaZulu-Natal has delivered 115 000 houses." Pillay mentioned the Human Settlements Department has been successful in its fight against fraud and corruption in the low-income housing programme.

During the past four years, he said the department joined forces with the Special Investigations Unit, the Anti-Corruption Unit, the South African Police Service and Provincial Treasury in a collective effort to fight fraud and corruption within the Hu-man Settlements ambit.

The MEC said that 566 fraud cases valued at R6,6 million were lodged with the SAPS and there were 449 successful prosecutions. In pursing these investigations a further 1 585 acknowledgements of debts totaling R18,2 million were signed with non-qualifying housing beneficiaries. The department recovered R10,6 million from government employees related to housing subsidy fraud.

Arising from other completed investigations, the department has finalised disciplinary cases against eight senior officials with various sanctions, including four dismissals.

The MEC said his department was committed to ending Informal Settle-ments through the upgrade subsidy geared for the eradication of slums.

The 2011 Census revealed that there are 635 informal settlements in KwaZulu-Natal. Of these, 494 in-formal settlements are in eThekwini, representing 149 289 households.

He mentioned that a total of 240 projects in the Informal Settlements Upgrade Programme were approved and are being implemented at vari-ous stages of the housing project cycle. The People’s Housing Process, which provides for community/beneficiary involvement, in the con-struction of their houses, will result in the construction of 1 518 houses in 2013/14 with the budget allocation of R101,3 million.

Housing for rural areas continues to be a key programme, “In the past four years we have built approxi-mately 44 000 units. An additional 8 481 housing units has been projected for the 2013/14 financial year.” ■

Residential building activity improvesThe number and value of housing units for which building plans were approved and value of housing units completed improved in April 2013.

constant 2010 prices. The number of building plans approved for new housing recorded growth of 43,5% y/y in April, largely driven by the segment for flats and town-houses. This strong growth in April contributed to growth of 14,7% y/y in plans approved in the first four months of the year.

The construction phase of new housing saw growth of 16,4% y/y in the first four months of the year, in-fluenced by growth of 35,1% y/y in the month of April. The segments of small and larger-sized houses were mainly responsible for the strong growth in April.

Residential building activity will continue to reflect conditions with regard to the economy, household finances, consumer confidence and factors impacting the market for new and existing units. ■

KZN tops in housing deliveryDuring 2012/13 the KwaZulu-Natal Department of Human Settlements and Public Works delivered 25 940 housing units, and have increased it to 27 382 units for the 2013/14 financial year.

July 2013

News

The settlements were reached in terms of the Construction Fast Track Settlement Process,

launched in February 2011. The fast-track process incentivised firms to

make full and truthful disclosure of bid rigging, in return for lower penalities than what the Commission would seek if

it had prosecuted these cases.Twenty one companies accepted

the Commission’s offer of a fast-track

settlement. There were over 300 instances of bid rigging which were revealed through this initiative. The settlements were reached only with respect to projects that were con-cluded after September 2006, prior to that date transgressions were be-yond the prosecutorial reach of the Competition Act.

The responses to the Construction Fast Track Settlement offer revealed various ways in which firms histori-cally determined, maintained and monitored collusive agreements. These included meetings to divide markets and agree on margins. Firms colluded to create the illusion of com-petition by submitting sham tenders

‘cover pricing’ to enable a fellow conspirator to win

a tender. In other in-stances, firms agreed

that whoever won a tender would pay the losing bidders a ‘loser’s fee’ to cover their costs of bidding. Sub-contracting was also used to compensate losing bidders.

Three firms did not accept the Commission’s settlement offer in terms of the fast track process - Group 5, Construction ID and Power Construction.

Construction firms that have not used the opportunity to disclose or settle contraventions will be in-vestigated. With evidence gathered during this process, the Commission will investigate and prosecute firms that have not disclosed any projects but are implicated by others or those that have elected to settle only some of the projects that they are impli-cated in.

Competition Commissioner, Shan Ramburuth, was pleased with par-ticipation in the fast track settlement.

He emphasised that in reveal-ing the extent of collusion in the construction industry, the Commis-sion’s fast track settlement broke up existing cartels and created aware-ness of collusive practices in the

industry. “Embedding a competi-tive culture will be

critical to

MAJOR PLAYERS FINEDThe Competition Commission has reached a settlement with 15 construction firms for collusion tendering and contravening the Competition Act. The Construction firms have agreed to penalties totalling R1,46 billion.

July 2013

AvengBasil ReadEsorfrankiG LivieroGiuricichHaw & InglisHochtiefMurray & RobertsNorvo RaubexRumdel Stefanutti TubularVlaming WBHO

Total

News

306 576 14394 936 248

155 8502 011 0783 552 568

45 314 0411 315 719

309 046 455714 897

58 826 62617 127 465

306 892 6642 634 6673 421 662

311 288 311

1 463 814 392

RRRRRRRRRRRRRRR R

bringing down the costs of future infrastructure investments and will incentivise firms toward innovation and efficiency in future projects”.

The background: The Commission launched the Construction Fast-track Settlement Process on February 1st 2011, by inviting firms in the con-struction industry to disclose proj-ects and tenders that were subject to bid-rigging conduct, for the purposes of settlement. The closing date for this invitation was April 15th 2011.

This process ran concurrently with the Commission’s Corporate Leni-ency Policy in that the first firm to disclose a rigged project would earn conditional immunity from prosecu-tion for that project.

Applicants were required to pro-vide the Commission with truthful and timely disclosure of information and documents relating to the pro-hibited practices and to provide full and expeditious co-operation to the Commission concerning the prohib-ited practices.

The Commission received applica-tions from 21 firms in the construc-tion industry, including the top six construction firms, covering 300 proj-ects worth an estimated R47 billion. From these 300 projects, 160 projects are prescribed while 140 were prior to the prescribed prosecution time frame.

From the 21 firms that ap-plied for settlement, 18 firms are liable to settle and the balance

of 3 firms are not liable to settle as they were first to apply (qualify for conditional immunity) for all the projects they disclosed and are not

implicated in any other project. The applications from firms were inves-tigated from April 2011 to November 2012, when settlement discussions with implicated firms commenced.

The initial complaints to the Com-mission involved alleged prohib-

ited practices relating to collu-sive conduct in the construc-

tion of the stadiums for the 2010 FIFA Soccer

World Cup against

Murray & Roberts, Grinaker-LTA, the construction operating business unit of Aveng (Africa), Group Five, Basil Read, WBHO Construction, Interbeton Abu Dhabi nv llc and Bouygues Construction SA.

On receipt of applications for im-munity, the Commission initiated a wider complaint into prohibited practices relating to collusion in the construction industry. The complaint concerned alleged contraventions regarding collusive tendering, price fixing and market allocation in re-spect to tenders.

The investigation was initiated against the following firms: Murray & Roberts, Grinaker, Aveng (Africa), Ste-fanutti Stocks Holdings, Group Five, Concor, G. Liviero & Son, Giuricich Coastal Projects, Hochtief Construc-tion AG, Dura Soletanche-Bachy, Nishimatsu Construction, Esorfranki, VNA Pilings CC, Rodio Geotechnics, Diabor Gauteng Piling, Fairbrother

Fined

Geotechnical CC, Geomechanics CC, Wilson Bayly Holmes-Ovcon and other construction firms, including joint ventures.

The methodology for calculating penalties is that the penalty imposed

on a firm is calculated for a basket of the rigged projects. Penalties are imposed on projects on which

the firm was not granted im-munity, in other words,

The Commission fac-tored in the penalty cal-

culation for each firm to include: the number of con-

traventions in each construction sub sector; whether profit margins

were fixed; whether projects were allocated directly; the number of projects awarded; the payment of a loser’s fee; the level of coopera-tion provided by the firm during the course of the investigation and whether the firm had settled any claim for damages that may arise as a result of the prohibited practices.

The Competition Act makes provision for victims of anti- competitive conduct to lodge claims for damages suffered as a result of

such conduct. ■

July 2013

News

Research by Catalyst showed that companies with more women board directors out-

performed companies with fewer women directors by 66% return on invested capital, 53% return on equity and 42% return on sales.

It is also generally acknowledged that investment in women has posi-tive, long term, socio-economic ripple effects, as women tend to invest their income in the health and education of their families. This enables their children to start off on a stronger foot-ing and higher socio-economic level.

La Pietra Coalition, which includes companies such as Ernst & Young, Coca Cola, Accenture and Harvard University, identified women as the emerging market with the greatest potential for growth over the next decade.

Non Profit Company, Khuthaza, has identified the incredible poten-tial for women in the construction industry and facilitates career and

enterprise development for women, as well as capacity building in the industry.

In late 2010, Khuthaza assisted Tiber Bonvec Construction to iden-tify young women for their bursary programme, one of whom was No-masonto Tshehla. At the time, she was finishing her BSc in Construc-tion Management at Wits University. Subsequently employed by Tiber as a Junior Engineer, Tshehla soon began to make her mark and her potential was brought to the attention of Tiber’s MD, Fernando Cardoso. She was offered the exciting opportunity to specialise in Green Building and assist the company to gain exper-tise in the field. It was a significant responsibility as she had to gain the knowledge, develop the systems and set up the department within Tiber.

The company invested in her training through the Green Building Council of South Africa and she was also fortunate to find an excellent

Emerging talentThe potential impact of women’s development on the global economy is becoming clear. Research by companies such as Goldman Sachs, Booz & Company and Catalyst point to both current impact and the significant potential of women’s increasing impact on the economy.

mentor. Tiber was involved in a Joint Venture with WBHO and a Green Star Accredited Professional from WBHO, Gideon van den Berg, took her under his wing. The 26-year-old is now a Green Star Accredited Professional. “We’re very proud of Nomasonto,” says Tiber’s Cardoso. “By supporting her education and providing oppor-tunities to develop her career, we recognise that she adds significant value to our company.”

She had the opportunity to work on various Green Star rated projects such as Sandton’s 115 West Street and 15 Alice Lane, Superpark (Isan-do), focussing on waste management and working with Aurecon, who were the Sustainability Consultants on 8 Melville Road (Illovo).

“We are proud to be associated with Tiber, they are a great company to work with and we are so pleased that they are supporting the develop-ment of women in the industry,” says Elizabeth O’Leary, Executive Director of Khuthaza.

As South Africa looks for oppor-tunities for both economic growth and socio-economic transformation, investing in women and harnessing their potential is an excellent invest-ment in the future. ■

Nomasonto Tshehla on site.

July 2013

News

This success is attributed to the growing interest in the auction platform currently gaining momentum in the residential property sector. “The steady re-

covery in both the residential and commercial property markets was mirrored in the auction. Properties remain solid investments due to the low interest rates," says Lance Chalwin-Milton, joint Managing Director of High Street Auction Company. "There is a definite increase in potential bidders, perhaps due to the independent valuation of the properties prior to the auction. Property prices are increasing year-on-year, which means keen investors are snapping up good value properties."

He says that three massive residential complexes with 266 fully let units, in a key location in Tembisa recently fetched R60 million.

Discerning investors look for desirable properties such as a student residence in Glen Austin, Midrand, with a massive debt order annual income. The property has several self-contained brick structures with an en-tertainment area and communal swimming pools and sold for R5,5 million.

A Bustling double storey retail plaza strategically situated in the Rustenburg CBD, on a main road out to Sun City, with a waiting list of potential tenants, fetched an impressive R28 million. An office and residential

block in Germiston’s CBD went under the hammer for R7,25 million.

The Edenburg Office Park in Rivonia fetched R5,9 million. “At each auction we see new faces and an un-questionably greater interest in the auction platform as a viable tool for bidders and sellers. It’s a fast-paced en-vironment combined with superb properties, a mixture of bidders and sellers across all demographics and the High Street Auctions unique auction venue, located at Sandton’s prestigious Summer Place, is re-building the industry,” says Joff Van Reenen, Lead Auctioneer.

For further information contact Nick Pretorius on nick@highst.co.za or 082 669 7738 or visit www.high-streetauctions.com

Under the hammerIn mid June, the High Street Auction Company raised R140 million for 14 properties.

Lot 12 - Ndlovu, Tembisa.

July 2013

Housing

Sexwale remembered fondly that Govan Mbeki was an educator, organiser and exemplary leader.

“I stayed with him for 13 years on Robben Island and there was nobody there, who was a stickler for detail, like Oom Gov. He wrote a number of books and was a meticulous editor, with both language and punctuation. He also played an important role in editing former President Nelson Mandela’s book, ‘Long Walk to Freedom’. He was known among his peers as someone who pursued excellence—and since these awards are about excellence and achievements - these are things that are very close to my heart.”

The Govan Mbeki Awards 2013 showcases all the best projects, con-tractors, settlements, subsidy and non subsidy projects, emerging ris-ing stars, social, community and fast tracked housing projects, metros and provinces nationwide.

“Our government was elected into

power on the basis of its policies that are designed to take care of people, especially the majority of the poor. My responsibility is to make sure that I take care of the people of this country and the places where they live.”

“We do not build informal settle-ments but strive to build sustainable human settlements where people will have proper sanitation, health and education facilities. It is a huge challenge, as there are at least 2 700 informal settlements in South Africa. But we are trying our best and to date government has provided about 3,3 million housing units and opportu-nities. Let us build quality housing instead of chasing housing figures and delivering or erecting deficient houses across the country.” Sexwale says that government built subsidised houses must be of the same quality as his large Sandhurst home, in Sandton’s multi millionaire suburb.

He went on to explain that in 1994

The country’s best …Announcing the prestigious Govan Mbeki Awards 2013, named after the iconic ANC leader, the Department of Human Settlements, Minister Tokyo Sexwale shared some insights about Oom Gov.

a subsidised house cost R12 000 and today it averages R89 000 per unit.

Sexwale says that government’s innovative Financed Linked Individ-ual Subsidy Programme, for income earners in the Gap market, will assist teachers, police, nurses, fireman and others to qualify for a housing subsidy through the commercial banks.

He also referred to corruption as endemic in our society and to combat it, he says that the Department of Human Settlement’s had even con-sidered establishing a government construction company.

He has made this threat a number of times, probably in the hope that it would bring the built environment industry into line. Naturally, while discussing corruption, the topic of ce-ment price fixing was another problem that he highlighted. “We spend our time acting like policemen,” add-ing that government are constantly pursuing corrupt builders, suppliers, contractors and government officials. Nepotism, favouritism and manipula-tion of housing beneficiary waiting lists are some of the challenges that we have to deal with.” ■

July 2013

July 2013

WINNERSBest Woman Contractor: L & R Welding & Tools Suppliers, North West won R100 000

Best Youth Contractor: Retlaphala Construction Primary Cooperation, Free State, received R100 000

Best Non-Subsidy Project: Postdene 720 in the Northern Cape collected R100 000

Best Enhanced People’s Housing Process: Ditsobotla Development Facilitated PHP won R100 000

Best Informal Settlement Project: Winner Addo Nomathamsanoa in the Eastern Cape walked off with R100 000 prize money

Best Social Housing Project:Fleurhof Views, Main Reef Road, Johannesburg collected a cheque for R100 000

Best Community Residential Unit:Masimong 4 Community Residential Units, in the Free State won R100 000

Pictures by Thulani Hlophe.

Best Priority Project:Klarinet Integrated Human Settle-ments, Mpumalanga won a cool R1 million

Best Metropolitan Municipality:The winner, eThekwini Metro Municipality, KwaZulu-Natal, won R1 million

Best Province of the Year:North West Province collected a staggering R2 million

Best Accredited Municipality – Level 1:Steve Tshwete Local Municipality, Mpumalanga

Best Accredited Municipality – Level 2:Newcastle Local Municipality, KwaZulu-Natal

Best Finance-Linked Individual Subsidy Programme:Walmer Link - The Home Market, Eastern Cape

Best Rural Project:Rirothe Construction, Limpopo

Minister’s Merit Awards:Best Student of the Year – University:Whelan Kriben Naidoo (University of Pretoria)

Best Student of the Year – University of Technology:Abongile Mbube (Cape Peninsula University)

July 2013

July 2013

is well used by the neighbourhood children. There is a church, after care, four recreation halls and a crèche. Located in Smit Street, the social housing facility is within walking distance of the Bus Rapid Transit, Hillbrow Clinic and Fontana Spar. The company owns and provides rental accommodation in well located sites and it is one of the most sought after housing buildings in the area. Almost every unit faces the open parking, has a satellite dish, and the amenities and football pitch ensure that the children can play in a secure environment and off the street.

Josie Adler pointed out the clean lanes in between buildings in the eKhaya Neighbourhood. So far over R200 million has been invested in upgrading residential buildings by the private sector and almost R42 million has been invested to upgrade the infrastructure by the City of Johannesburg. After five years, 50% of the buildings are ac-tive members and contributing to eKhaya, which bodes extremely well for Hillbrow’s future. Adler refers to Louis Botha Avenue as the Berlin Wall, between the slum areas of Hillbrow and the affluent Houghton suburb, home of the country’s iconic leader, Nelson Mandela and a number of cabinet ministers.

The Hillbrow property owners have made a difference in that they have reclaimed public space. Taffy Adler, board member of Makhulong a Matala, Johannesburg Housing Company’s, inititative offers tenants something than no other institution can – a sense of community and a sense of improving the quality of their lives.

The organisation aims to represent the interests of its members through representation, advocacy, informa-tion and support. ■

Housing

To celebrate the occasion, hous-ing specialists, members and government officials were

taken on an open air city bus trip to visit various Johannesburg inner city social housing buildings and commu-nity projects.

Malcolm McCarthy from NASHO hosted the event and Rory Gallocher, CEO of JOSHCO and the doyenne of Hillbrow’s eKhaya Neighbourhood, Josie Adler, were on hand to offer

valuable insights into pockets of the city and its history. Among the proj-ects that Housing in Southern Africa visited was AA House – in the heart of the city and located next to the big-gest transport hub in Africa, the R40 million conversion was undertaken by Stefanutti. The former commercial building was acquired by JOSHCO in 2009 and Gallocher says that the con-struction wasn’t cheap. “We are for-tunate that we had a large portfolio and surplus on the income statement which was available.” Rent collection at AA House is efficiently managed and the installation of biometric ac-cess has contributed to 100% rental collection. He told tour delegates that rentals for bachelor units are R1 200 per month while the larger 2 bedroom costs R4 200 per month. Madulam-moho Housing Association’s largest project, BG Alexander in Hillbrow, is a joint venture with JOSHCO. The for-mer home of mining magnate, Barney Barnato, which became a residence for nurses, has been transformed into social housing rental units. There are 376 communal units, 6 bachelor apartments, 15 one bedroom, 12 two bedroom and 81 emergency shelter beds. The residential development has a five a side soccer pitch, which

A COMMUNITY CELEBRATIONThe National Association of Social Housing Organisations (NASHO) recently celebrated its 10th birthday. The membership based federation represents 16 key social housing institutions, who either own or manage 23 044 units throughout the country.

July 2013

Housing

The 5,6 millionth recipient of government’s programme to electrify rural and urban

households was Ikhutseng house-holder, Nina Letebele.

The event took place in the Magareng Municipality in the North-ern Cape. Letebele had her electric-ity switched on by the Minister of Energy, Dipuo Peters in June.The Minister told media and the community at the historic switch-on at Warrenton in the Magareng Municipality, “Government is com-mitted and determined to ensure that all homes have services.”She said government aim to provide electricity to 150 000 households per year. So far 85% have access to electricity and the outstanding 15% was being addressed by the

Switched on - 5,6m houses electrified

Minister of Energy, Dipuo Peters.

Household Electrification Strategy, a grid and non-grid programme. So far 1 200 households in Ikutseng have been electrified. ■

FNB Household and Consumer Sector Strategist, John Loos points out that the 5,8% year-

on-year growth is up from April’s 5,4%. But, says Loos, will this con-tinue in view of a weak economic environment? The average home transacted at R885 773.

“In real terms, adjusting house prices for general inflation in the economy, using the CPI, we were still seeing very slight year-on-year decline to the tune of -0,4%, with con-sumer price inflation at 5,86% year-on-year in that month still slightly higher than house price inflation.”

Evaluating longer term perfor-mance of the FNB House Price Index, in real terms the index is -19.2% down on last decade’s real price peak reached in November 2007, while in nominal terms it is 14.9% higher.

However compared to May 2003, 10 years ago, the index is up 49,8%

in real terms and 151,9% in nominal terms, suggesting that the price effects of last decade’s residential demand boom have far from worn off, despite a significant downward real correction since late 2007.

Turning to the FNB Valuers’ Market Strength Index, they have indicated that recent relative market strength has been the result of the combina-tion of positive residential demand growth as well as a little more con-strained supply of residential stock on the market.

Since early 2012, the FNB Valuers’ Market Strength Rating Index has shown gradual positive year-on-year growth after a 2011 decline. The broadly improved period of domestic house price growth since late 2011 and early 2012 is not totally out of kilter with economic and housing market developments,

“Despite recent improvement, the housing outlook may still be medio-cre with data pointing to an economy under significant pressure and this will have a bearing on residential buyer purchasing power growth.”

Estimated total employee remu-neration growth slowed in nominal

terms to 7,4%. This is the lowest nominal wage bill growth rate since the final quarter of 2001, and is now well down on the post 2008/9 reces-sion ‘Relief Recovery’ peak of 13,3% reached in early 2010.

This suggests still further slow-down on disposable income growth early in 2013, which probably largely explains the recent steady deteriora-tion in Consumer Confidence.

The other key event that took place in May, and which relates strongly to residential property demand, was the Reserve Bank decision to leave inter-est rates unchanged with its Repo rate at 5% and prime rate at 8.5%. This offered no additional demand stimulus since the third quarter of last year. The combined impact of no interest rate cutting as of late and slowing wage bill growth, could have negative implications in terms of growth in residential demand in the near term, with many economic agencies recently revising economic growth forecasts downward, and growth below 2% for 2013.

Certainly the SARB Governor em-phasised that growth forecasts risks were very much to the ‘downside’, and CPI inflation forecast risks to the ‘upside’, with bad labour rela-tions and high wage demands posing threats to both growth and inflation. The current level of interest rates set by the Reserve Bank is at a multi-decade low and indeed the stability of interest rates at these low levels has helped to gradually strengthen residential demand.

Loos says that it is questionable as to whether this residential demand strengthening can continue at a time of such economic weakness, and where we have already seen a steady slowing in growth in the area of real consumer demand as a result.

“Granted, a still-slow rate of growth in residential buildings com-pleted keeps supply growing at a slow pace. But a weak economy and resultant weakened disposable income growth leads to the ongoing expectation that house price growth will continue to remain largely in single-digit territory in the near term.

This is due to potential pressure on demand, not far outpacing con-sumer price inflation of near to 6%,” concludes Loos. ■

House prices show growthHouse price growth showed further acceleration during May, according to the First National Bank House Price Index.

July 2013July 2013

Housing

top marks – for Fleurhof

Fleurhof has all the attributes that we keep hearing about for an integrated human settlement – well located, close proximity to amenities such as transport nodes, job opportunities and within 13km of the Johannesburg City Centre - it ticks all the important boxes. The R2,82 billion integrated housing development is a private public partnership between land owners Calgro M3 and the City of Johannesburg. First National Bank provided the finance for the land purchase and has also provided most of the end user mortgage bond finance at Fleurhof.

July 2013

Housing

This integrated housing develop-ment is located on the mining belt that stretches from Carl-

tonville in the west to Springs in the east. The mining belt was previously used to segregate communities and also deny communities located to the south of it, the social and economic opportunities that was located to the north.

Fleurhof is located south of Main Reef Road between the neighbour-hoods of Florida and Soweto’s Mead-owlands suburb and is 13km west of the Johannesburg CBD. The develop-

ment will provide 9 600 housing op-portunities on the 440 ha site.

Calgro M3’s Chairperson, Pumla Fundiswa Radebe says that Fleurhof has been recognised as a prime exam-ple of the positive social impact that successful collaboration between public private partnerships can make, while simultaneously attracting the international investment community.

The smart and unassuming CEO of Calgro M3, Ben Pierre Malher-be and his team aim to become the residential developer of choice for government, financial institu-

tions and funding partners. He says, “We commit to research, develop and implement alternative energy sources and to engage in initiatives that aim to conserve natural non renewable resources where possible. With Fleurhof now functioning as a community rather than merely a construction project, the principle of integrated developments is now firmly established and demonstrat-ing benefits to stakeholders. We are proud of the accolades that Fleurhof has been receiving.”

July 2013

Continued on page 16 ►

July 2013

Housing

The most recent is the Govan Mbeki Awards 2013, which recognises the country’s top projects Fleurhof won the Best Social Housing Project for Fleurhof Views and the social housing provider, Madulammoho Housing Association, collected a cheque for R100 000.

Malherbe acknowledges the num-ber of key stakeholders who came on board to provide social, partially and fully subsidised housing, sectional title apartments, fully bonded units as well as rental stock. Global equity funders, International Housing Solu-tions funded sectional title blocks, social housing provider, the Johan-nesburg Housing Company and the Madulammoho Housing Association.

As part of the Fleurhof Housing Development, a new major regional access route will be constructed to link the two formerly segregated areas. Fleurhof Drive will form a new access point into Soweto by link-ing Westlake Drive in the North to Odendaal Road in the South. The link is conveniently located in the middle of the existing Dobsonville Road in the West and New Canada Drive in the East. Fleurhof Drive will unlock economic opportunities for the resi-dents of Florida and Meadowlands by creating direct access to both areas.

The overall development is di-vided into six phases, comprising 9 600 residential opportunities of which one third is earmarked for the fully subsidised RDP market, a third for partially sub-sidised units and social housing and the remaining one third for the Gap market between R280 000 and R500 000.

The development makes pro-vision for social and economic amenities within each phase.

A total of three school sites, seven preschool or crèche sites, one com-munity centre, five places of worship, between 20 -30 parks, an erf for recy-cling, an erf for municipal uses and four commercial business centres will be developed. Of the 292 ha be-ing developed, a total of 118 ha has been allocated for open public space within the development.

Currently the project team is in-vestigating various potential green initiatives to assess the viability of certain energy saving technologies such as solar water heaters, heat pumps, improved insulation, etc for the various types of housing units.

Residential recycling projects, food gardening and urban greening initiatives are also being looked at. Besides the green component, the added benefit of these measures will also reduce electricity demand by the development and make the township socially and visually more attractive.

A new water reservoir is being constructed and Fleurhof will obtain electricity from the shared sub-station, which was implemented for Calgro’s Pennyville project.

The progress roll out to date in-cludes:

Phase One - All civil and electrical services installed. Constructed 1 375 housing units, comprising of 133 RDP,

286 social, 162 rental stock, 44 FLISP subsidised units and 750 Gap market. Under construction are 295 units and of these, there are 63 RDP and 232 social housing units. 271 units comprising of 53 social/rental/FLISP and 218 Gap market units are still to be constructed.

Phase Two - Under construction are 1 173 units. There are 454 RDP, 168 social, 304 FLISP and 247 Gap market units. To be constructed are 608 units comprising 263 RDP and 345

units made up of social, rental and FLISP.

Phases Three & Four – The civil infrastructure is currently being installed for 2 164 resi-dential opportunities. The electrical infrastructure will start during July 2013 and will be completed in sub-phases. The housing comprises of 510 RDP, 752 Gap market units and

July 2013

► continued from page 15 ...

July 2013

Housing

902 social, rental and FLISP units.Phases 5 & 6 - Infrastructure instal-

lation will start during 2014 and will be completed by the end of 2016. A further 3 672 units will be built.

A number of industry stakehold-ers have provided funding for the integrated development including the Gauteng Partnership Fund who provided R23,345 million for the con-struction of Fleurhof Views in 2011.

The Fund also provided finance for the Johannesburg Social Housing Company’s 400 rental units, as well as partially funding 162 sectional title units. The project value, excluding land, is R77,817 million.

The development’s winning for-mula can be attributed to great prod-ucts and service providers.

These include cement from PPC, bricks and paving from Bosun, con-crete slabs from Echo Prestress and paint supplier, Plascon.

The thriving community spirit is reflected in how the residents manage and maintain their own properties. Housing in Southern Africa really love the restaura-teur who created an interesting pavement café complete with a fabric art shelter and well maintained vegetation to entice passers by to stop a while and dine. Calgro M3, a South African based black empowerment residen-tial provider, has a track record in residential and community develop-ments spanning 17 years.

Originally the brainchild of Derek Steyn and and his brothers Deon and Douw, they filled a prominent gap in the affordable housing market. In 2001, the Malherbe brothers, Ben Pierre and Brand (M3 Developments), both quantity surveyors, joined forces with the Steyn brothers whilst ten-dering on a residential development called Clearwater Estates on the East Rand and Calgro M3 Developments was born.

Calgro M3 Developments complet-ed the first 1 000 houses by 2002. The company diversified into the mid to high income residential market and successfully launched and developed the first of many cluster type of devel-opments, Firenza in Randpark Ridge.

On 16 November 2007 Calgro M3 was listed on the Altx board of the JSE and embarked on its venture of developing its first integrated residential project, Pennyville Ext 1, consisting of 2 800 units, comprising of RDP fully subisidised units, social housing, subsidised rental units and open market rental units.

Calgro M3 started the R2,65 billion Fleurhof Integrated project in 2009 and it’s proving that they have found a winning formula! ■

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Housing

The Fund launched the EEPF in 2010 to pro-vide funding for black

entrepreneurs who faced funding challenges in the affordable housing sec-tor, through lack of skills,

equity or insufficient cash flow.

Despite the improve-ment in the quality of l ife for many South Africans since democ-

racy, finding a quality, af-fordable place to live is still

a challenge. There are many house-

holders caught in the gap mar-ket - not poor enough to qualify

for fully subsidised government housing and yet not eligible for

bank mortgages.The Gauteng Partnership Fund

has never taken a narrow view of

its mandate. It was established by the Gauteng Department of Housing to facilitate funding assistance to companies in the affordable rental property market and to help speed up housing delivery.The housing backlog in the province has been pegged at 2,1 million units, which represents 12,5 million people. Aligned with the provincial govern-ment objective of delivering 20 000 rental residential units by 2014, the GPF aims to facilitate funding for 6 000 of these units by this date.

“The EEPF incubator fund is aimed at entry-level black entrepreneurs and companies, which are 100% owned by historically disadvantaged individuals who provide rental or delayed ownership schemes for households with monthly incomes of less than R15 000. Participating companies or entrepreneurs must demonstrate that they have the

technical resource capacity to suc-cessfully complete the project, as well as efficiently manage the property,” explains Vinolia Mashiane, Invest-ment Officer at GPF.

The types of projects funded are typically inner city residential refur-bishments, office space to residential and greenfield developments for so-cial housing. How the process works is that the GPF fund the total cost of the acquisition up to R7,5 million and co-finance renovations with other financial institutions.

Last year the GPF achieved a critical milestone with the EEPF; it partnered with the National Housing Finance Corporation in a co-funding agreement for the programme. “This agreement gave us greater capacity to assist with project funding and companies should feel encouraged to apply, whether potential applicants or future co-funders,” says Mashiane.

Every year, the GPF extends an open invitation to prospective partici-pants to apply. To qualify candidates must be a 100% BEE (Black Economic Empowerment) registered company; have a valid tax clearance certificate

GPF entrepreneur fundThe Gauteng Partnership Fund’s (GPF) Entrepreneur Empowerment Property Fund (EEPF) aims to nurture a new generation of previously

disadvantaged property entrepreneurs.

July 2013

Housing

and the company and shareholders must have clean credit records.

“These applicants are expected to submit a project business plan which is based on the framework available on the GPF website. The plan must outline the potential of the property, the zoning rights and the preliminary costs.

"After a rigorous selection pro-cess, successful applicants enter into the incubation programme and are backed by three mentoring companies, who assist with funding and putting together a professional team,” says Mashiane.

Worth noting is that potential projects must be in areas identified by municipalities for development, must have good access to amenities including transport, contain a mini-mum of 15 residential units and cater for people earning between R3 500 to R15 000 per month.

Mashiane stresses that the GPF do not provide grants but facilitate loans up to 100% of the project cost. “What makes this programme attractive to prospective entrepreneurs is that funding is cheaper and conditions

are a lot more flexible than funding through the private sector.

The GPF can provide up to 30% of the funding and the NHFC up to 70%. There is no baseline for personal eq-uity, as this percentage is determined by cash flow and project feasibility.” She goes on to explain that breaking ground is a lengthy process and it can take up to five years before entrepre-neurs start seeing a return on their investment.”

So far 13 projects have been ap-proved. The first to break ground was a 32 residential unit complex

in Jeppestown. A further 20 partici-pants bring the total to over 30 since inception.

“The main aim of this project is to create property developers out of entrepreneurs, not contractors. Women can do this job. As a property developer, you have a team of profes-sionals as well as a head contractor. You’re not the one mixing cement,” Mashiane concludes.

For more information on the EEPF Programme, contact Vinolia Mashiane on 011 685 6600 or email: vinoliam@gpf.org.za ■

July 2013

Mixed Use

The flourishing 2 500 ha town-ship developed by Dr Alf Levin and his partner at Township

Realtors (SA) includes 30 000 resi-dential stands with 20 000 houses having already been built. A further 2 200 stands are currently being serviced, 400 sectional title units are under construction as well as schools, shopping centres, clinics, commercial and retail businesses and a hospital.

An additional 600 ha commercial and industrial site alongside the N12 national road to Kimberley and Potchefstroom will be developed in the near future and will bring work opportunities to both Soweto and Lenasia residents.

Township Realtors formed a public private partnership agreement with the Gauteng Provincial Government, City of Johannesburg and national energy supplier, Eskom, to provide

bulk services to Protea Glen and the extensions.

Housing in Southern Africa toured the area with Protea Glen’s charis-matic realtor Dr Alf Levin. The affable businessman has almost celebrity status throughout the sprawling area. We visited the clinic, police station, met local councilors and were wel-comed into residential homes - all unplanned and unscheduled stops. Residents are actively involved in their wards and approached Levin about numerous community issues from requiring land for another police station to questions about the devel-opment on the corner site, amongst many others.

The Protea Glen Shopping Cen-tre is a R380 million retail centre, which spans 35 000m². The car park is full and KFC’s fast food outlet is doing a brisk trade. The centre was

Protea Glen– a thriving mini-tropolis

developed by Masingita Proper-ties and the company is currently planning to build a 130 bed private hospital with the Clinix Group. The license has already been granted and building will commence on the R200 million facility this year.

Township Realtors donated the land for a new R30 million daycare centre for the aged and orphans and this will be completed by the Depart-ment of Social Welfare. Another two shopping centres have been planned, one in Protea Glen and the other on the N12 in the Protea Glen Industrial Park. Traffic on that route has been estimated at 74 000 vehicles per day.

The Rea Vaya Bus Rapid Transit system already services Protea Glen up to Extension 11 and this will be extended to other areas next year. Two bridges, built by the developer, connect Protea Glen to Protea North

July 2013

July 2013

Mixed Use

Protea Glen, on the western outskirts of Soweto, has a vibrant buzz and the residents are friendly and welcoming. Some school children meandering home stop off at the open park with sports facilities and equipment that well established city parks don’t offer.

and the Naledi Train Station. A sports centre for rugby and soccer has been built and a new cricket centre with two ovals is currently under construc-tion by the Gauteng Cricket Board.

We passed the notorious spot where Soweto musician, Molemo ‘Jub Jub’ Maarohanye, had his car accident that claimed the lives of Soweto scholars - the road cost R1,5 million to develop almost 14 years ago. The Head of Housing in the Protea Glen Ward says that they assist householders with financial problems and mediate with the banks or other creditors to try and avoid evictions, as it has a destabilizing ef-fect on the local community.

He says that the best thing about living in Protea Glen is the fact that it is constantly developing and they are still building facilities for social developments with Township

Realtors, who donated the land.Affordable housing developers,

RBA, Cosmopolitan Projects and Kiron all have a stake in the area and the township has been carved ac-cordingly. It took almost three years and R40 million in a public private partnership with Kiron and First Na-tional Bank to bring sewerage lines into the area.

The local authorities are vigilant in maintaining the right environment and any illegal structure built onto an existing structure without plans and approval is immediately dismantled, as it contravenes the regulations.

The police in Protea Glen are proud of the fact that they haven’t had any serious crimes committed in the area such as hijacking and stolen vehicles in almost 22 years. Crime prevention most definitely seems to be working in this area.

But it is Levin’s close relationship with stakeholders, public private partnerships and the developers such as RBA, Cosmopolitan Projects and Kiron that has made Protea Glen such a success.

The Protea Industrial Park located alongside the N12 Potchefstroom Kimberley Road has been planned and will be developed. A further 15 000 residential units will be built in that area. Almost 65 000 vehicles and a further 9 000 heavy load vehicles use the route daily.

Protea Glen is a new city in the making, near Lufhereng low cost housing in the extreme west of Soweto, there are a number of fur-ther projects which will roll out once everything is signed off between the City of Johannesburg and the West-ern Area council. The total project value is approximately R20 billion. ■

July 2013

July 2013

Mixed Use

The SAARDA members an-nually deliver a substantial number of houses, primarily

in the entry level affordable mar-ket. With an estimated hous-

ing shortage of at least 400 000 units in Gauteng alone, the association believes its members can play a strate-gic role in the larger social development programme, by providing quality housing

to willing buyers and govern-ment programme recipients.

The association aims to address issues of concern on a

collective basis. According to Harry Gey van Pittius, Chairman of SAA-RDA, it must be borne in mind that residential development companies contribute in a variety of ways to the economy and the country. Housing projects create a large number of jobs, it also broadens the rate payer’s basis for local authorities, it expands and assists in improving the services infrastructure of the country and it contributes to the social welfare and stability of the population.

Van Pittius says that the severe housing shortage is being hampered by inefficiency and excessive regula-tions that lead to extended project timelines. The result is an increase in costs to the developer and long delays in product delivery.

At a national level government is actively propagating the importance of housing, but, it is really at a pro-vincial and local authority level that bureaucracy, undue time consuming

After years of being inactive, the South African Affordable Residential Developers Association, has been resuscitated by a group of prominent

residential developers.

July 2013

procedures and worryingly, a lack of infrastructural delivery capacity, es-pecially energy supply, that seriously impacts on SAARDA member’s ability to deliver on its projects.

Although SAARDA members con-tribute significantly to the housing shortage in the country,SAARDA’s sole aim is to engage with role play-ers at all levels across the industry to see if it can play a meaningful role in bridging existing gaps experienced in the daily operational areas of resi-dential developments. All this in the hope of improving service delivery, reducing timelines and promoting efficient billing and invoicing. The banking industry forms part of this stakeholders’ group, not only from providing development funding but very importantly as suppliers of bonds to end users. The commercial banks play a critical role and SAARDA says that a greater understanding of the scoring ability for individuals in the affordable market by the banks needs to be addressed.

“We believe SAARDA, along with all other stakeholders, can make a difference” stresses Gey van Pittius. “At SAARDA we are all responsible developers, we are in this industry for life and believe in the goodwill this industry brings to peoples’ lives.”

The vast majority of established and new members emanates from Gauteng. He does however point out that SAARDA is not geographic-ally exclusive and has a firm strategy to expand its member base across the country. ■

July 2013

Cement & Concrete

The Quarter, a small 2 400m² shopping centre with parking for 112 vehicles, is the newest development in Ballito’s suburban paradise on KwaZulu-Natal’s north coast, within 10 minutes drive from the King Shaka International Airport.

The project developed by the owner/contractor, JNM Construction, designed the retail shopping centre to include offices, a showroom and food

quarter. The simple uncluttered concrete architectural lifestyle complex aims to offer a quick and pleasant local shopping experience.

JNM Construction has in the past developed a number of buildings in the area ranging from commercial, light industrial to a Church. The contractor has worked with tilt-up construction for a number of years, as a highly efficient and cost effective methodology compared to standard construction methods in South Africa. As a member of the Engineering Council of South Africa, Head of JNM Construction, Brent Youens sought to improve the quality and finishes in this specialised area of concrete construction.

Planning was extremely important as there was no available space off-site to prepare the concrete panels. An intricate plan was developed with the engineer to cast the walls panels on the ground and then hoist them into place with cranes. Approximately 150 panels were lifted over two stages spanning five days. The entire project was completed within six months. The shopping centre was an ideal property for this type of construction given the relatively flat open site and design considerations. By utilising tilt-up construction the project was com-pleted timeously and achieved substantial savings in operational costs. ■

The Quarter

Master Builder membership offers a wide range of important services such as contractual, legal, labour, health and safety, training and other similar issues says Wesley Soutter, Commercial and Legal Director of Master Builders Association North.

Services & contracts

Soutter says members can draw on a pool of industry expertise and networking opportunities with fellow members of the association. In addition, MBA North

members have access to industry-related committees and forums on various issues as well as access to CETA, CIDB and NHBRC on industry matters. Members are also represented on a national level through MBA North’s membership of Master Builders South Africa and can purchase industry-related contracts and other essential documentation.

“Finally, members are listed on the MBA website and in the annual members’ directory. They can participate in a host of important networking events such as our annual dinner, MBSA congress and other meet-and-greet oppor-tunities. The MBA North slogan ‘Is your Builder, a Master Builder?’ is aimed at promoting the benefits of using the services of a qualified, competent member company to provide appropriate, quality and cost-effective building solutions. Our Code of Ethics ensures that this standard is maintained so the public has learnt to trust – and select - MBA members when selecting a contractor in the building field,” says Soutter. ■

Wesley Soutter.

July 2013

Cement & Concrete

July 2013

Seasoned politicians like Human Settlements Min-ister, Tokyo Sexwale, are

great at delivering off-the-cuff one liners and as the hous-ing portfolio has expanded to include infrastructure, energy and integrated settlements, our coverage is broader. When the Minister shares what’s happen-ing in public works, we sit up and listen!

The heavyweight panel of industry stalwarts from all the major cement manufacturers dealt with the fact that govern-ment felt ripped off with the cost of cement for the World Cup soccer stadiums. Since then, government has been wary of the industry and more reluctant to spend its considerable budget. PPC’s CEO Ketso Gordhan addressed this fact saying that there needs to be a straight talking session to clear the air and get the infrastructure and public works projects rolling out.

Nxesi praised the organisers, Hypernica, for their sterling work in bringing a world class exhibition and key stakeholders and industry giants together to network and show inno-vations, trends and more importantly fill order books. The TotallyCon-crete programme went beyond the

technical and commercial consider-ations and dealt with skills develop-ment, health and safety as well as empowering women in construction.

He said that for most people ce-ment is something that comes in those heavy 50 kg bags – mixed with sand and water. “Clearly cement has come a long way – in terms of com-plexity, variety and sophistication – and that fact is amply reflected in the Expo. It is a crucial component in the roll out of infrastructure plans – and, as such, plays an important role in driving economic and social development.”

It is no secret that the construc-

CONCRETE thoughtstion industry was hard hit in the global recession but the good news is that in South Africa and the rest of the continent, infra-structure roll out is increasingly seen as the key to stimulating economic revival and develop-ment. Nexsi said, “I believe that this conference is taking place at a crucial time for the built envi-ronment sector in our country and the continent. There is now a common understanding that infrastructure development has to drive economic and social de-velopment in the coming years,” adding that “It is at the heart of the New Growth Path and Na-tional Development Plan.”

He referred to developing linkages with the rest of the region and the continent through energy, road, mining, water, port, rail and air links. Africa is the fastest growing region in the world and at the core of that growth is infrastructure. In order for Africa to grow and develop at the rate that many analysts are predicting, there needs to be very strong regional economic and social ties both within the public and the private sectors. Un-der the auspices of the African Union this is already happening.

But Minister of Trade and Indus-try, Rob Davies, warns that massive

July 2013

Cement & Concrete

July 2013

infrastructure deficits – if not ad-dressed – will prevent African coun-tries from taking advantage of investment opportunities.

Infrastructure investment is cru-cially important to connect markets across the continent, as well as to generate enough electricity to sup-port the development of manufactur-ing and other sectors. The US$1,2 bil-lion Tripartite North-South Corridor Investment Programme funded by the African Development Bank and the Development Bank of Southern Africa is now being fast-tracked. This project supports some of Africa’s busiest trade routes: linking the port of Dar es Salaam in Tanzania to the copper belt in Zambia and into Lubumbashi in the DRC, and then down through Zimbabwe and Botswana to Africa’s largest port, Durban.

“We cannot ignore the massive impact that the infrastructure roll-out will have on the built environment sector. Let me explain, as the state we need to rebuild capacity to man-age relations with contractors and service providers – along the entire infrastructure cycle - from design right through implementation to maintenance and disposal. The Department of Public Works has al-located a budget to recruit and train

additional built environment profes-sionals in the coming years. We have to tackle the issues of procurement, over-pricing and even fraud and cor-ruption. We will fail if we don’t get on top of this challenge.”

Collusion between some Depart-ment of Public Works officials and sections of the construction industry has increased and the Department had commissioned forensic investi-gations. “This resulted in successful disciplinary actions, the suspension of six officials and the dismissal of

three, including one Deputy Director General. We have instituted court actions to recover these misappro-priated fraudulent payments. We are also awaiting the finalisation of disciplinary hearings involving two other senior officials.”

He also referred to government getting its house in order in relation to late payments to suppliers and contractors and this was also some-thing promised by his predecessors.

‘We cannot ignore the massive impact that the infrastructure roll-out will have on the built environment sector…’

Continued on page 26 ►

Thulas Nexsi engaging with an Expo convenor.

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Cement & Concrete

July 2013

‘If we can get an efficient infrastructure roll-out - which goes hand in hand with empowerment and the transformation – we have the ultimate win-win situation.’

“The President made it clear that we will be held to account on this matter and National Treasury also requires that suppliers are paid for their ser-vices within 30 days. My Department is addressing backlogs and imple-menting new and improved systems. I am also meeting with contractors to address these problems.”

Massive state investment will fundamentally change the market conditions. “But we have to learn from the challenges we experienced around the 2010 World Cup stadiums – in relation to over-pricing; short-ages; poor labour relations and the lack of long-term empowerment and transformation.”

He pointed out, “We have to be clear that we are not simply build-ing infrastructure but that this is also a strategy for driving economic growth and social development. This includes job creation, skills develop-ment and empowerment of emerging and female contractors and profes-sionals. If we can get an efficient infrastructure roll-out, which goes hand in hand with empowerment, and the transformation of the built environment, we have the ultimate win-win situation.”

He stressed that government aims to make it mandatory for all tenders and contracts to adhere to the provi-sion for every employer to ensure that health and safety regulations are implemented and enforced. ■

‘We have to tackle the issues of procurement, over-pricing and even fraud and corruption. We will fail if we don’t get on top of this challenge.’

► continued from page 25 ...

July 2013

The product was launched at the 2013 TotallyConcrete Expo and according to PPC’s Gen-

eral Manager of Marketing Services, Sibongile Mooko, it is set to revolutio-nise the construction sector.

“As a leader in the cement indus-try, we believe that it is essential for every builder to have all the latest tools available at their disposal. This will enable them to work more ef-ficiently and save money.”

The easy to use application pro-vides many practical functions for professionals in the industry and includes the quantity calculator which enables the user to accurately determine the amount of cement required, based on the project dimen-sions. The application also includes a Weather Watch tool, based on weather condition to calculate the

optimum time of day to lay concrete or build. The Weather Watch tool also allows the professional master builder to list several locations and monitor weather conditions on site to determine priorities to be managed or completed.

Other functions include: product overview, store locator, Google en-abled maps and directions and FAQ. Yaron Assabi, CEO and Founder of Digital Solutions Group says, “One of our specialities is finding the most appropriate mobile solution to assist a client to mobilise their business, products or services and enhance the customer experience. The application allows customers to engage with the brand in an immersive experience, whilst still offering them access to useful information and tools.

Mooko added that the launch

PPC goes mobilePPC Cement, the leading South African supplier of cement, has partnered with Digital Solutions Group to deliver a mobile application designed and customised for those in the building and construction sector.

phase of the application will be available on IOS, Android and Black-Berry operating 6+. “We have started planning exciting new additions and integrations for the next phase. The PPC App is available for download on Google Play, the Apple AppStore as well as the BlackBerry App store. ■

Cement & Concrete

July 2013

Bricks & Paving

Bosun’s Large and XXXL Urban pavers have proved extremely successful in integrated hu-

man settlements, commercial and retail precincts and the new plant ma-chinery will produce paving finishes such as exposed aggregate, ground concrete and shot-blast concrete.According to David Wertheim Aymes, CEO of the Bosun group, the new range will also be offered on selected interlocking pavers to create unique

New paving finishesLeading manufacturer of concrete paving products, Bosun, will soon add to their innovative range at the new custom build plant in Midrand, which will be operational at the end of July 2013.

textures on interlocking paving prod-ucts for parking areas and roadways, walkways and boulevards.The Press Technology plant will pro-duce pavers with a unique, smooth topping layer, which could also be finished in the same way as the urban and interlocking pavers, or in an ultra-smooth polished option in various thicknesses, with certain kerb shapes available to match road edging or contrast driveways.

The wall for the Oasis Retirement Centre, Century City, designed for Project Manager, Harris Projects, consisted of a concrete designed wavy sound barri-

er to shield residents from noise along Ratanga Road. The steep road-facing wall was designed with three curved terraces to reduce the overall footprint of the 500m nar-row edge and to improve overall noise absorption.

The retaining wall consists of 8 000 Terraforce L12 Rock Face blocks with a concrete foundation for each terrace. The installation by Decorton Retaining Systems provided a subsoil drainage system located behind the bottom row of blocks, while the earth backfill was reinforced with Polytex 115 geo fabric every third row of blocks. The terrace walls each reach a maximum height of 1,8m to create terraces of different widths.

Seven years later, the wall is almost completely

Enduring wallsCape Town based, award-winning concrete block manufacturer, Terraforce, recently showcased two projects that used the same retaining block to extend their long standing retaining walls.

covered by indigenous plants that also prevents wind erosion on the gently sloping embankments. Harries Projects approved an extension of the noise barrier and a further 13 000 blocks were installed by Decorton Retain-ing Systems late last year.

In 2003, the prestigious Tygerberg Office Park in Cape Town required retaining walls due to the steep building site excavations in 2003, of a 5m high x 95m long embank-ment and 30° slope and Terraforce supplied a composite wall with 4% cement stabilised and geo-fabric reinforced backfill with a subsoil drainage system. Existing walls include 2 x 6m high retaining walls stabilising a 12m high fill platform and small walls such as a rock face weir and low toe walls.

Terraforce approved contractor, Dassenberg Retaining installed 24 000 Terraforce Standard round face blocks which were planted with hardy indigenous species. Al-most 10 years later the project required another retaining wall. Natalie du Preez, Property Asset Manager at Acucap and consulting engineer, Erik Raymond said, “Steep sections of the embankments had to be protected with flexible earth retaining block walls to reduce the erosion of the excavated face, prevent excessive ingress of water and to make it more acceptable from an aesthetical point of view.”

Acucap approved the design of the new Terraforce retaining walls, based on the successful application of the product during earlier phases of the project. The sheer height and depth of some of the walls left no space for geo-grid reinforced backfill and a double layer of blocks with reinforced concrete (Y12 re-bar) had to be used to infill in sections.

Géorg Brand of Dassenberg Retaining said, “Another challenge was a buried underground 11 kVA cable, the wall footing of the retaining wall needed to start below the level of the cable to prevent exposure of the cable.” An interesting aspect was the use of Terraforce L11 and 4 x 4 step blocks around a sheltered pit that houses various utility devices that serve the buildings on site. ■

Wertheim Aymes says that Bosun’s range of large pavers, almost 27 times the size of a standard paving brick, will now be available in a calibrated option. This process of diamond cutting the product to the exact thick-ness required will ensure complete dimensional accuracy. It will make the installation quicker, easier and yield an aesthetically pleasing flat surface. ■

July 2013

Bricks & Paving

Claybrick efficiency

Right Homes in partnership with Jade Projects and Think Brick incorporates Greensmart prin-

ciples, water conservation, energy efficiency, waste recycling, water-wise gardens, recyclable building materials with the best thermal mass qualities and quality energy efficient appliances and fittings throughout, adding cost saving benefits for future occupants

The link between clay brick con-struction for housing and superior quality of living is supported by a number of attributes specific to clay brick. It meets all the necessary re-quirements for healthy living, and its natural capacity to manage heating and cooling conditions. Clay brick offers advantages over alternative lightweight building systems such as Light Steel Frame Building (LSFB).

This is well highlighted in the comparative energy ratings of ten show houses built in Perth Western Australia, using different construc-tion methodologies to demonstrate

their environmental compliance with Australian standards.

The one and only double skin clay brick house designed and built ac-cording to passive solar design princi-ples (for example with due attention to orientation, correct shading for the different seasons, ventilation and use of insulation for the particular climate) achieved an Energy Rating of 8 Stars in terms of the Building En-ergy Rating System. Of the other nine show houses, seven were steel frame construction with various forms of insulated lightweight walling com-posites. These lightweight walled houses achieved between 5 and 6 Star Energy Ratings, not withstanding that some of these light steel frame houses were also designed and built along passive solar design principles.

Double skin clay brick construc-tion without insulation applied between the brick skins is fully com-pliant with SANS 10400-XA National Building Regulation. The route to even greater thermal comfort and lower energy usage for heating and

cooling for houses in South Africa’s unique climate is through SANS 204 ‘Deemed to Satisfy’ Energy Standards for masonry buildings. The SANS 204 ‘Deemed to Satisfy’ Standard (voluntary) for masonry houses de-fines the required CR Product values (combinations of thermal capacity ‘C’ and resistance ‘R’) for walls in South Africa’s different climatic zones.

Taking passive solar design prin-ciples in the context of macro and micro climates of the specific region is the way to go.

This process provides the op-portunity for achieving a significant energy efficient specification and end product taking full advantage of the high thermal mass clay brick walls, while incorporating lowest possible R-value insulation materials in the building envelope.

Demonstrating how easy it is to achieve superior energy efficiency and a low carbon future is the 9 Star Energy Rated Brick House (go www.righthomes.com.au/sustainable and reference Jade 909). ■

A n A u s t r a l i a n h o u s i n g report boasts a 9 star energy efficiency rating and a carbon neutral footprint. The Right Homes project has picked up numerous Australian awards for an affordable e n e r g y e f f i c i e n t h o u s e using claybrick.

July 2013

tectural finesse. He said that Eastern Cape Architects, Studio d’Arc, wanted to make a statement with the Chinese automotive giants’ building. Studio d’Arc’s unique office and reception design using concrete is set to be the highlight of the building.”

A g n i S t e e l s ’ R 4 0 0 m i l l i o n plant will operate in a high tech smelting facility to produce mild steel billets from scrap metal. The plant will use 10 000 tons of scrap metal in Phase 1 and 20 000 tons in Phase 2. DCD Group is also in the early phases of its R300 million wind tower manufacturing facility, which will produce between 110 and 120 wind towers annually and employ 168 staff.

“Coega is boldly delivering on our jobs promise through the attraction of investments,” says Vilakazi. ■

Infrastructure

There are six major projects currently underway in the Industrial Development Zone

including the erection of Chinese car and truck manufacturer First Auto-mobile Works’ (FAW) plant; Famous Brands’ cold storage plant; DCD Group’s wind tower manufacturing plant; Coega Cheese and Dairy facili-ties; Agni Steels’ R400 million smelter and Rehau’s extension in the Nelson Mandela Bay Logistics Park.

Industrial gas company, Air Prod-ucts South Africa, is due to begin construction of its R300 million state-of-the-art air separation unit in July, bringing the total number of projects being built to seven.

“The global economic climate is still unstable, yet investment con-tinues to flow into the Coega IDZ and is literally taking root in the con-struction projects underway,” said Ayanda Vilakazi, Coega Development Corporation Head of Marketing and Communications. So far a total of 27 companies have invested in the economic node.

Vilakazi said the activity meant major spinoffs not only for lead con-tractors, but also sub-contractors, suppliers and the whole built environ-ment supply chain: “At a time when

there is industry malaise at a national level, the Coega IDZ is experiencing a construction boom.”

Vilakazi, added that it was through these major investments that Coega was delivering on its mandate to create jobs.

Famous Brands, owners of Steers and Debonairs was given access to the warehouse portion in the first week of May allowing its service provider to start with racking on the warehouse floor. The warehouse is operational and Famous Brands moved its stock into the cold storage unit during June.

A partnership between Famous Brands and Coega Dairy has also seen the dairy expanding its operations to supply Coega Cheese products to the group with a joint valued invest-ment of R45 million pouring into the Coega IDZ.

In addition, the construction of the R200 million FAW project has to date created 304 construction jobs and the total number of jobs in the year long project will increase to 2 000.

According to Arnie van Jaarsveldt, WBHO Construction Eastern Cape Managing Director and Lead Contrac-tor on the FAW project, the highlight of the construction will be its archi-

COEGA'S Construction boomConstruction booms at Coega as projects under production amount to R1,2 billion and have created over 2 500 jobs in the past six months.

July 2013

Infrastructure

With almost three million households without electricity, Jacques Smalle, Deputy Shadow Minister of Energy for the Democratic Alliance,

says that this is unacceptable. This includes over R63 million under expenditure on funds intended to pro-vide power to households that previously never had electricity.

According to the Chief Financial Officer for the Depart-ment of Energy, Yvonne Chetty, the Department under-spent R21 million for the Municipal Energy Efficiency Demand Side Management programme; R47 million for the Integrated National Electrification Programme and failed to spend R63 million allocated for non-grid electrification, to connect households to electricity that were never connected in the past.

Smalle says he will request the Chairperson of the Portfolio Committee on Energy, James Njikelana to

He says that the national roads agency, (SANRAL) announced that it received the ‘2013 Toll

Excellence Award’ from the Interna-tional Bridge, Tunnel and Turnpike Association (IBTTA).

“However, they failed to mention several key points including that this award can only be granted to members of IBTTA, and that annual membership is up to R110 000 (US$11 580). This is money which must have been paid with public funds. IBTTA is a small group of toll road endorsing companies, which openly encourage the building of toll-roads. The whole point of their existence is to praise toll roads and not to find alternative solutions which help poor people.”

“SANRAL also nominated them-selves, after joining and using public money to become members, in order to try and legitimate their building of e-tolls in South Africa.”

Ollis says that this award will be used as support for the building of

toll roads. “It is nothing more than a pathetic attempt to try and find good reasons for toll-roads in South Africa when none exist. If anything, it has completely backfired on SANRAL be-cause receiving an award for e-tolling from a group whose major aim is to promote e-tolls is laughable at best.”

His parliamentary questions to Minister of Transport, Ben Martins aims to uncover how many mem-berships to bodies and associations his Department, and entities report-ing to it, are subscribed to; how memberships to each was decided; the cost for each membership and the benefits.

“SANRAL’s IBTTA membership does not appear to serve any public interest. All IBTTA offers are discounts to workshops and exhibitions, as well as access to a monthly letter from the Executive Director and a bi-annually published journal.” IBTTA also pro-vides positive public relations sup-port to countries struggling to gain

The bell tolls for SANRALThe South African National Roads Agency SOC Limited’s award for e-tolling is a pathetic attempt to gain legitimacy according to Democratic Alliance Shadow Minister of Transport, Ian Ollis.

public support for tolls. Part of IBTTA’s 2013 goals includes: providing its members with support to strengthen the powerful and positive messag-ing about tolling; enhance outreach to key policymakers and work with industry allies to advance public poli-cies that support tolling; and create a favourable political environment to tolling as well as expanding business opportunities for companies that serve tolling.

“It is in this light that the ‘2013 Toll Excellence Award’ must be viewed as a means to dupe the public into thinking that toll roads are a good thing. There is nothing good about government’s plan to build toll roads. All they will do is undermine economic growth, hurt the poor and ultimately result in job losses. The best toll is no toll!” ■

R131m underspent on energyThe Department of Energy told the parliamentary Portfolio Committee that it had underspent R131 million on electrification programmes in the 2012/13 tax year.

summons the Minister of Energy, Dipuo Peters, to explain how her Department plans to achieve the goal to supply power to all houses without electricity by 2025.

In light of comments made by the Deputy Director General, Dr Wolsey Barnard, the current electrification rate of 200 000 households a year, merely covers new built and does not reduce the electrification backlog.

“Any under expenditure on electrification cannot be tolerated. Millions of South Africans are still strug-gling without access to electricity for lighting, heating and cooking. Their struggle for a quality life should be the daily inspiration for the De-partment of Energy to en-sure effective service delivery,” says Smalle. ■

July 2013

Infrastructure

The department has decided to replace the inlet pipe that transfers water from

the main line to the Jerome Drive Reservoir in Kloof, KwaZulu-Natal.

Andrew Copley from EWS said that instead of costly repairs to the existing pipeline, a decision was taken to install a new one. He ex-plained that the new pipe – which is 300mm in diameter and covers a stretch measuring 1,5km – will cross the M13 from Old Main Rd and exit in front of Standard Bank in Village Road and then continue down St Mary’s Road past the St Mary’s Girls School. It will then go through Edgecliff Road and through a servitude into Jerome Place and finally into the Jerome Drive Reservoir.

Construction started in June and will be complete by the end of De-cember 2013. Copley added that EWS is aware of the fact that this is a busy thoroughfare used by up to 1 000 cars a day. He said that EWS will do everything in its power to en-sure that inconvenience to parents, pupils and staff at St Mary’s Girls School will be kept to a minimum.

To assist the school, no work on the new pipeline will be carried out before 8am and detours throughout the day will be provided to ensure that traffic flows continually. The contractor will at the end of each day close all open trenches in the roadway or in the event that he is unable to achieve this, a 24hr manned stop-and-go system will be implemented. ■

The joint venture between the Gauteng Province, Ekurhuleni, Tshwane and Johannesburg

Metros, under the guidance of the South African Roads Agency (SAN-RAL), was geared to provide an effec-tive transport network. The project received the 2013 Fulton Awards Commendation in the ‘Sustainable Concrete’ category from the Concrete Society of Southern Africa.

Gauteng, the economic heartland of South Africa, generates nearly 38% of the total value of South Africa’s economic activities.

It was evident that the provision

of road infrastructure had not kept pace with increased traffic demand, resulting in a road and freeway net-work that was over capacity. The first phase, comprising the upgrade of 185km of the most congested free-ways in the region, was divided into a total of 15 work packages.

Group Five, as lead contractor for the Siyavaya Joint Venture, with consulting engineers UWP/Nyeleti Joint Venture and KAS Joint Venture, was awarded Package E, which in turn was divided into two sections - Packages E1 and E2. The 36 month project started in July 2008 and was substantially complete by July 2011, and this included a one month delay in mid-2010 for the Soccer World Cup event.

Package E comprised of a substan-tial upgrade to three interchanges,

upgrading two busy intersections, widening the highway to five lanes and the construction of three bridges using the incremental launching method, a 70m long new bridge over the Natalspruit River at the N12/N17 intersection and a cut and cover tunnel. The longest of the incrementally launched bridg-es was a 420m long switch ramp. The incremental launching method has been successfully used by Group Five on long spanned bridges and in this case, minimised traffic interrup-tions on the adjacent freeways. The new bridge was constructed using a conventional precast concrete I-beam construction method.

SANRAL’s requirement was that all structures should be functional and aesthetically pleasing. Particular attention was paid by the consulting engineers to the design and by Group Five and the Siyavaya Joint Venture to produce fine quality off-shutter concrete throughout the project.

Package E1 comprised of a 12km section of the N3 to the southeast of Gauteng, between the Old Barn (Hei-delberg) and Geldenhuys (M2) Inter-changes. This included widening the N3 on both sides and upgrading the Elands interchange and also included the construction of the switch ramp connecting the N3 to the N12.

Package E2 comprised of a 4km section of the N12 between the Reading (R59) and Elands (N3) In-terchanges. This section included the construction of two bridges over the N17 and Natalspruit River and another comprising of a cut and cover tunnel at the Reading Interchange.

The entire project involved the construction of 37 concrete struc-tures, which as well as the above, in-cluded moving a 2,2m diameter Rand Water pipeline to accommodate the new ramp at the Elands Interchange and the construction of two new loops at Grey Avenue in Alberton, to eliminate a right-turn against oncom-ing traffic. ■

Gauteng’s freewaysThe launch of the Gauteng F r e e w a y I m p r o v e m e n t Project (GFIP) signalled an exciting multi-billion rand commitment to upgrading and developing more than 500km of freeway within the province.

Jerome Drive ReservoireThekwini Water and Sanitation (EWS) is going all out to minimise leaks and conserve the city’s precious water resources.

July 2013

Industry Buzz, Events & Products

Diamond Products, a leading specialist in the manufacture, assembly and sale of diamond

tools and equipment for industrial applications, has introduced the technologically advanced Titan high frequency wall saw. The product can be diagnostically tested and even repaired using mobile phone technol-ogy, says Diamond Products Director, Darryl Gray.

"In the event of failure, Diamond Products is able to log directly into the Titan control unit by means of the telediagnostic service and tele-maintenance system via mobile radio communication, in order to detect and address the cause of failure."

This technologically advanced system allows for parameters to be modified for special applications, and also allows for the latest pro-gramme versions of the automatic control system to be transmitted to any control unit, regardless of time or location. "What's more, the remote system also has tracking capabilities, thereby reducing losses related to theft," adds Gray.

Director Brian Clark highlights the fact that the Austrian-manufactured Titan wall saws boast a greater life expectancy than their competitor, thanks to its unique low motor speed design. "The motor speed is just 6 500 rpm, compared to the industry standard of 30 000 rpm, thereby ensuring a significant reduction in maintenance and service costs."

With high torque and lower speeds, the Titan high frequency wall saw can accommodate blades of up to 2000 mm in diameter, with high performance and precision. Clark notes that the Titan wall saws operate at maximum precision using ARIX G2X Diamond blades, in which diamonds are aligned in an almost grid-like system to allow for consistent drilling and sawing speeds.

"In industry standard tools, dia-monds are mixed randomly through-out the surface, which results in wear-and-tear, owing to the fact that different areas of the surface carry inconsistent workloads. With the alignment of diamonds in separate rows, ARIX technology ensures that each diamond carries precisely the same workload, allowing for quicker and more accurate cutting," he adds.

Gray explains that another unique

aspect of the Titan high frequency wall saw is that it can accommodate a drive pulley for wire sawing appli-cations through a specialised pulley and storage attachments, which eliminates the need for large and costly machines.

"This attachment essentially makes the Titan high frequency wall saw a two-in-one machine, and allows the user to select a cut-ting method appropriate to a spe-cific application. The ARIX razor wire is compatible with the saw, and delivers an optimal cutting speed, while providing the contractor with an ideal cutting solution in the

Diamonds are a man's best friendProfessional contractors that specialise in large scale precision cutting and refurbishment projects can benef it f rom the new range of Titan high frequency wall saws.

toughest applications," he states. According to Clark, the blade and

the feed operations are electrically driven by a range of 11KW-22kw mo-tors, which eliminates the need for costly and bulky hydraulic power packs onsite. "The Titan high fre-quency wall saw units are lightweight and compact, without compromising on power and durability. This en-sures greater ease of transportation, improved utilisation of space and eliminates environmentally damag-ing leaks that are common in many in-dustry standard hydraulic wall saws."

Clark believes that the Titan high frequency range of wall saws will gain measurable market share across Africa in the short term. "Investment in infrastructural development is con-tinuing to increase at an exponential rate. With this in mind, I am confident that the Titan high frequency wall saw will be seen as a viable solution to specialist sawing and cutting con-tractors that service the construction and infrastructure sectors." ■

July 2013

July 2013

Industry Buzz, Events & Products

According to Elaine Van Rooyen, Marketing Manager at Andrew Mentis, a leading engineering

and manufacturing company, the company first manufactured expand-ed metal more than sixty years ago, and is today considered the leading supplier of quality expanded metal in a variety of sizes and materials.

A myriad of applications are served by expanded metal because of its inherent structural integrity which is not compromised during the manufacturing process.

Expanded metal has found appli-cations in construction and it is used for screens, grates, shelving, racks, protection guards, internal parti-tioning, burglar proofing, fencing, reinforcement, walkways, platforms and stairs and scaffolding.

“During the manufacturing process no material is lost, and in fact the original sheet of metal can be ex-panded into anything up to ten times its original size. The result is a mesh which is considerably lighter than the equivalent area of the original piece of metal expanded,” says Van Rooyen.

The expanding process creates a network of rigid strands which add strength, while allowing free passage of light and air.

As the metal is expanded to an area longer than its original length it is lighter than the original equiva-lent mass used prior to expanding. The raised mesh, Mentex, can be put through an additional process in which the raised meshes are flattened into the same plane as the sheet of metal expanded and is referred to as Flatex.

With extensive experience in the various applications of expanded metal, Andrew Mentis manufactures both the raised and flattened meshes, and according to Van Rooyen the correct selection of the appropriate mesh depends on the application.

Typically, both Mentex and Flatex expanded metal are manufactured from high quality local mild steel, but can be manufactured from any other ductile metal. The product is

Few products can claim to be as versatile as expanded metal, largely as a result of the reliability, d u r a b i l i t y a n d e c o n o m y represented by the simple idea of slitting and expanding a solid sheet of metal into a lattice of diamond-shaped meshes.

normally supplied unpainted, but readily lends itself to any of the normal finishing processes such as painting, stove enamelling, plating and galvanising.

Mentex and Flatex expanded metal is available in a comprehen-sive range of sizes, mesh sizes and thicknesses and the fabrication of the expanded metal in any form is done with ease.

The mesh can be bent, shaped to radii, angled or notched while maintaining its inherent rigidity. It is also available in various mesh sizes, from mini meshes with small openings of 1.4 mm by 2 mm, and with a thickness of 0,4 millimetres, to larger meshes with 115 mm x 300 mm openings, and a thickness of 6 mm.

“In an industry where qual-ity pays in the long-term, a great variety of customers are bound to benefit from the extensive experi-ence and expertise within Andrew Mentis, especially when it comes to the application of expanded metal. The uses of expanded metal are many and varied and are limited only by the vision, creativity and imagination of the designer. Its versatility is endless,” Van Rooyen concludes. ■

Structural integrity

July 2013

Industry Buzz, Events & Products

Sunter was delivering his key-note address at the recent Coatings for Africa 2013 sym-

posium, jointly presented by the SA Paint Manufacturing Association and the Oil and Colour Chemists’ Association of the UK, at Gallagher Estate in Midrand.

Sunter says that the South Af-rican industry could not afford to wait for strong leadership from government to reduce unemploy-ment but had to take the lead in this regard. “Industry must encour-age entrepreneurship. We are too ambivalent in this regard – there’s far too much red tape. Banks are re-luctant to finance new enterprises

Bryan Perrie, Managing Direc-tor of The Concrete Institute, and the now defunct C&CI,

says, “The C&CI was a completely independent and unbiased organisa-tion and recognised as such by the construction industry. Its mandate and articles empowered it to provide services to the concrete construc-tion industry on behalf of its funding members. Previously known as The South African Cement Producers Association, before closing down in 1996, was responsible for providing its members with a range of services. This was replaced by the Association of Cementitious Material Producers (ACMP), which focussed primarily on environmental, health and safety issues.

“The decision to close the C&CI laboratory a number of years ago was unanimously agreed to by all four of the cement producer members of the C&CI. The closure of the C&CI was pre-cipitated by the withdrawal of fund-ing and the resignation from the C&CI by PPC, following which the other funders, AfriSam, Lafarge and NPC-Cimpor were compelled to resign, as PPC’s withdrawal left a significant void in the structure and funding of the non-profit organisation.”

Perrie added that this led to the regrettable and contentious closure of the C&CI. As a result of the sub-sequent strong reaction from the construction industry in response to a potential loss of services, The Con-crete Institute was formed. The initial funders of The Concrete Institute are AfriSam, Lafarge and Sephaku.

“The Concrete Institute has been created in order to continue providing independent, unbiased information and publications, as well as accred-ited and internationally recognised training on concrete technology to the construction industry.

The Institute is mandated to con-tinue offering the vital services previ-ously offered by the C&CI including internationally-recognised courses, which include Introduction to Con-crete; Making Concrete Bricks and Blocks; Mortars, Plasters, Screeds and

Masonry; Concrete Practice; Concrete Technology; Concrete Structures: Analysis & Design; Properties of Concrete for the Structural Designer and Constructor and the highly ac-claimed Advanced Concrete Technol-ogy course.

A comprehensive Information Centre – inherited from the Cement & Concrete Institute - is one of the largest and most respected sources of

The Concrete Institute says a number of articles have appeared in the media containing misleading and incorrect information regarding the newly-formed Concrete Institute and also the demise of the Cement & Concrete Institute.

information on concrete. It is widely used by the industry and students as a valuable reference source for technical information.

For information contact Bryan Per-rie on 011 315 0300, or email bryanp@theconcreteinstitute.org.za ■

Bryan Perrie .

Solid facts

Creating more jobsThe coatings sector carries the responsibility for creating more jobs; a vital factor to safeguard the economic future of South Africa; says renowned author and strategic planner, Clem Sunter.

and bigger companies often make smaller, new businesses wait up to 180 days before payment is made. By creating more new businesses, South Africa could create more jobs. The established industry players are not going to play a meaningful role in reducing unemployment.”

He stressed the need for an eco-nomic CODESA, “We are inclined to tolerate mediocrity and not recog-nise, nor encourage, the efforts of young entrepreneurs. There are far too many big businesses dominat-ing industry and commerce at the moment.”

He told delegates that their in-dustry had to expand its footprint into other countries, particularly in African states, to stimulate growth and employment.

“If the young are denied the chance of finding work, we face anarchy in the workforce such as we have never seen before. Already inter-union rivalry has become a ma-jor threat and this has the potential of exploding even further.”

Sunter also warned that industry and the government had to realise that production had become a high-ly competitive game. “We have to produce goods that are in demand globally for future survival.” ■Clem Sunter.

July 2013

Window of opportunity

Industry Buzz, Events & Products

Features: Plumbing • Bathrooms & Kitchens • Transport • Roofing, Ceilings, Insulation & Cladding.

To advertise contact Brenda Grossmann on 011 622 4770 or

email brendag@crown.co.za

Our Next Issue

HOUSINGin Southern Africa

The most notable include the Empangeni Hospital and the Emmaus Hospital in Grey-

town. The company manufactured special door frames of 1,6mm gal-vanised steel with non-standard hinges to accommodate the wheel-ing of beds into wards of both hospitals. Duro also fitted the spe-cially manufactured door frames with non-standard hinges to suit overhead door closers and floor springs to the Laverna Hospital in Newcastle.

Brian Hardie, Regional Contracts Sales Manager for Duro says that the company has also supplied steel windows to various early childhood

The industry has introduced new product innovations, sustainable business strategies and green building material for the future. Pelelani Ngcuka, President

of ClayBrick.org paid tribute to this significant milestone in the history of the Association. "Reaching this anniversary is testament to its endurance. The strength of the industry is defined by its ability to adapt to ever-changing market trends, sustained by a demand for quality claybrick prod-ucts that never go out of fashion.”

He acknowledged that some of their members have reported that their order books are looking more positive and that going forward they hope to see a turn-around in building activity in the oncoming months for all their members.

"As manufacturers of the most reliable and time-tested building products, we have a responsibility to ensure the supply of superior materials that offer the same levels of optimal comfort and living conditions today and in 30 to 50 years’ time. I am pleased to report that the low cost hous-ing sector now has access to a quality clay brick product that is not only lighter in weight, but is also environmen-tally friendly and performs to the same standards as those for the upper end of the market."

Introducing the team that will lead the Association in the year ahead, Ngcuka commended At Coetzee, Executive

50th anniversaryThe Clay Brick Association of South Africa (ClayBrick.org) celebrated its 50th anniversary last month.

Celebrating 50 years of the Clay Brick Association.

Director and fellow Board members for their exceptional leadership and steadfast support.

The theme of the 50th Clay Brick AGM & Conference, 'Greening the Future with Clay Brick' emanated out of the various research projects undertaken by ClayBrick.org to prove the sustainability and the long term performance values of its products.

The Clay Brick Life Cycle Assessment, spearheaded by the University of Pretoria, is intended to measure the environmental impacts of a clay brick building and will be published as internationally recognised academic research. As part of a second phase, the ClayBrick Socio-Economic Impact Review will look at the social impact of the industry as an employer and the economic multiplier impacts, in terms of wealth creation within the bricklay-ing sector and associated trades. This methodology is exclusive to ClayBrick.org and will set the benchmark for both local and internationally accepted standards, and is likely to be developed into a SABS standard. ■

Duro, leading manufacturer of steel, aluminium and building products, have supplied many government projects with windows and doors in KwaZulu-Natal.

development and high schools all over the KZN region. Umsilinga High School in Pietermaritzburg, which houses over 400 children, was fitted with industrial galvanised windows with burglar bars, as well as schools in Mkambeni and Lugonqozo.

Hardie says, “The advantages of using steel are vast. It requires lower maintenance, it does not crack or bow, it is less expensive, energy ef-ficient and secure, which makes it one of the most durable and sustainable building materials. To add to this, us-ing steel will also reduce our carbon footprint by saving on forestry and timber use. One of the major advan-tages of steel is that it is very strong and flexible, making it ideal for build-ing houses in windy, unfavourable weather areas.”

With the majority of Duro’s busi-ness in the affordable housing sec-tor, he says that the company prides itself on supplying quality affordable products.

“Our slogan is ‘Building With Pride’

and we want that slogan to encom-pass all that we do,” says Hardie.

For more information contact Duro on 010 590 9060. ■