5
CONSTRUCTION WORLD
NOVEMBER
2016
Delivered between June 2014 and August 2015, the complex gas
pipeline and facilities project, spanning a distance of 300 km, was
completed in a challenging, densely populated environment,
ahead of a demanding one-year schedule and with zero lost time injuries.
On accepting the award, project director Rod Blackwell thanked
customer PTT Public Company Limited, construction partner CCC and
his project team and said: “The collaborative relationship formed between
McConnell Dowell and PTT was the foundation for the success of the
project. It allowed us to align our objectives, present as a seamless team
to the local community, and address every challenge encountered quickly
and effectively.”
He added: “Our project team was outstanding. Along with our partner
CCC, we successfully managed a peak workforce of over 2 800 people
spread over more than 50 concurrent worksites to deliver the project safely
and at the highest quality standards. The results showcase the skill, commit-
ment and dedication of all involved. Thank you to everyone on the team.”
McConnell Dowell, in a joint venture with CCC, also received the
runner-up prize for the 520 km long Australia Pacific LNG pipeline project,
showcasing the company’s broad geographic footprint and resource
capacity for delivering major, cross-country pipeline projects.
The current level of the index indicates
that slightly more than half of respon-
dents are satisfied with prevailing busi-
ness conditions.
The higher confidence was well supported by
the underlying data, especially tendering price
competition. “The less keen tendering competi-
tion lifted profitability somewhat. However, it is
important to note that tendering competition can
ease due to an increase in the number of tenders
or a fall in the number of firms tendering or a
combination of the two”, remarked Jason Muscat,
senior industry analyst at FNB.
Confidence was higher despite soft growth
Over the next few months, the executive committee will evolve
and the next generation of leaders will step forward in order to take
the organisation into the future. Tommy Strydom, who has been
appointed as the Group’s new operations director, says the organisation’s
strategic imperative is to build stronger relations within the markets where it
operates and enter new markets. “Emerging trends are changing the face of
the construction industry on the African continent more than anywhere else.
Therefore, we are repositioning the company with re-engineered thinking
for the long-term growth trajectory expected for the continent.” he said.
John Hamilton, previously the Group’s chief operating officer will fulfil
the role of group managing director.
“With these new appointments, the organisation is set to become one
of Africa’s preferred construction partners,” said Frans Pienaar, chairman of
the group. To achieve this, the organisation will focus on employee devel-
opment through their training and wellness programmes and continue the
uncompromising application of their motto QCD, Quality – Do it right the
first time, Control – control every last little detail to ensure we do it right the
first time and Discipline – the discipline to continuously do this every time.
in construction activity. According to Statistics
South Africa (Stats SA), growth in the real value of
construction works slowed to 0,2% year-on-year
in 2016Q2, from 4,6% in 2016Q1. On a quarterly
basis, construction work was up 8%. “The annual
result was somewhat weaker than what last
quarter’s survey results suggested. Nonetheless,
growth may continue in 2016Q3. However, a
robust quarterly recovery as seen in 2016Q2 is
unlikely,’ said Muscat. Pressure on public sector
capital expenditure due to fiscal concerns as well
as mining companies’ reluctance to embark on
costly capacity expansion projects will weigh
on construction activity over the medium term.
While growth in construction activity remained
under pressure, respondents noted that the lack
of demand for new work is becoming less of a
business constraint. “This possibly reflects some
work coming through, likely from the renewable
energy sector. However, this may not be enough
to support the entire industry”, added Muscat.
In conclusion: While less keen tendering
price competition lifted confidence in 3Q2016,
INTERNATIONAL AWARD
FOR MCCONNELL DOWELL
>
CONSTRUCTION CONFIDENCE ABOVE 50
The FNB/BER Civil Confidence
Index gained 11 points to register
a level of 52 in 3Q2016. This means
that confidence has gained 24
points in total since 1Q2016.
the subdued growth in
construction activity re-
mains a concern. A marked
slowdown was registered
in the growth in construc-
tion works in 2Q2016.
The survey suggests that
similar low growth can be
expected for 3Q2016.
Jason Muscat, senior in-
dustry analyst at FNB.
McConnell Dowell, a subsidiary of Aveng Limited,
was awarded top honours for Excellence in Project
Execution at the International Pipe Line & Offshore
Contractors Association (IPLOCA) Awards on
16 September 2016 in Paris, France. McConnell
Dowell’s Fourth Transmission Pipeline Phase II
project in Thailand beat outstanding projects from
around the world to secure this award.
SUCCESSION PLANNING
AND TRANSFORMATION
Inyatsi Construction Group Holdings last week
announced its succession planning strategy and
plans to target bigger markets and increase turnover
from the current R1,5-billion to more than double in
the next two to three years.
Frans Pienaar (chairman, Inyatsi Construction Group Holdings) and Tom-
my Strydom (group operations Director, Inyatsi Construction) shaking
hands to new growth.
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About the survey
The FNB/BER civil confidence index can vary between a
maximum of 100 (which indicates that all respondents
were satisfied with prevailing business conditions) and
a minimum of zero (indicating that all respondents were
dissatisfied). A level of 50 indicates that the respondents
are equally divided between those satisfied and dissatisfied.
The fieldwork of the second quarter survey was
conducted between 25 July and 29 August 2016. In a circle
(or a design element that stands out)
• After increasing by 13 points in 2Q2016, the FNB/BER
Civil Confidence Index rose by a further 11 points to
52 in 3Q2016.
• Confidence was lifted by a notable improvement
in overall profitability due to less keen tendering
price competition and continued growth in
construction activity.
• Looking ahead, construction activity is set to remain
under pressure although order books have improved.