Construction World January 2019

JANUARY 2019

COVERING THE WORLD OF CONSTRUCTION

WORLD

CR O WN

P U B L I C A T I O N S

JET DEMOLITION wins again at World Demolition Awards

QUALITY ENGINEERING DESIGN FOR N11 UPGRADE

Rejuvenating JOHANNESBURG’S inner city

Roads and Bridges feature

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CONTENTS

04 Celebrating the beauty of concrete The three winners of AfriSam’s ConCreativity photographic awards.

22 Sustainable architecture on renovation project The renovation and rehabilitation of an existing building is often the greenest solution. 24 Hard Rock Hotel The construction of the world’s first-ever guitar-shaped building in the USA. 25 Role in inner city rejuvenation Paragon Architects South Africa has played an important part in the conversion of Shell House in Johannesburg’s inner city. 26 New retail hub for eastern Free State The town of Phuthaditjhaba in the eastern Free State is set to become the region’s retail hub. 28 Finishing Roscommon House The demand for student accommodation is assisted with the completion of this project in Cape Town. 30 Stitching Cornubia into uMhlanga The Cornubia Bridge is a key component of eThekwini’s GO!Durban IRPTN nework 39 Iconic interchange officially opened Five years after the first pile was driven, the iconic Mount Edgecombe Interchange was opened in October.

06 OEM open R985-million campus in Johannesburg Komatsu recently opened one of the biggest industrial hubs in the country. 08 Continued late payments got you down? Kelly Stannard, Associate at MDA Attorneys delves into late and non-payments. 09 Conquering the challenges of being a global player An exclusive interview with Thierry Bernard, President and CEO of The Chryso Group. 14 Best mixed-use development in SA Waterfall, north of Johannesburg was recently honoured with an international award.

18 Upgrade on N11 Section 10 fromMiddelburg to Loskopdam Engineering innovation was necessary of this 54 km stretch of road.

REGULARS

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Marketplace

Environment & Sustainability

Property

ON THE COVER

Project Profile

Jet Demolition won its second consecutive award at the annual World Demolition Awards 2018 at the Aviva Stadium in Dublin on 8 November. The premium event of its kind, the awards are hosted by Demolition & Recycling International, published by the KHL Group, in conjunction with the European Demolition Association. The awards are accompanied by an industry-leading World Demolition Summit. Read the article on pages 16 and 17

Projects & Contracts

Equipment

Products & Services

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COMMENT

The IMF’s ‘World Economic Outlook’ report of July 2018 states that the outlook for the global economy is on track to grow by 3,9% in both 2018 and 2019. This figure includes those advanced economies that are growing at a healthy pace (e.g. the USA) and those economies (e.g. the Euro area and Japan) that are growing at a slower rate.

In emerging economies the situation is slowly but surely worsening and growth expectations often have to be restated quarter on quarter. This is because the risk factors for such economies are volatile and seem to be increasing. Higher oil prices and the dollar’s appreciation (the USA is on track to meet growth predictions) are at the heart of the less than ideal growth. In addition, aspects such as geopolitical conflict and increasing trade tensions are adversely affecting these sometimes fragile economies. Despite these challenges, the report states that emerging economies will grow by 4,9% in 2018 and 5,1% in 2019. Half the international prediction In contrast to this, South Africa’s growth is not on par with other emerging economies. In 2018 growth was worse than predicted by economists. In the second quarter the economy contracted by 0,7% and therefore the country entered a technical recession (two consecutive quarters of negative growth). Although South Africa’s overall growth rate is in positive terrain, it is nowhere near the IMF’s prediction for 2018 and will most likely not come close to 2019’s prediction. This contraction was mainly caused by significant contractions in the agricultural, wholesale and retail trade, transport and communication sectors. In the second quarter, the construction sector unexpectedly showed some growth (2,3%) – the first growth in six quarters. The South African Forum for Civil Engineering Contractors (SAFCEC) said that this was primarily due to the private sector and not

the civils sector. The latter is in survival mode and the bit of growth that there was can be attributed to the unblocking of the backlog for renewable energy projects. This, SAFCEC said, was not sustainable. Third quarter growth and decline In the third quarter the South African economy grew 2,2% which means that the country’s economy has now exited the recession. Even though the shrinking of the economy had slowed, agriculture, transport and trade had weighed down the country’s ability to bounce back. The economic rebound was on the

higher end of what economists had predicted, with the main growth drivers being secondary industries (trade, transport, finance, government and personal services). SAFCEC’s words were true: The construction sector shrank by 2,7%, however. The worst is that South Africa had better growth under a more corrupt Jacob Zuma administration than under that of Cyril

Ramaphosa. This is something, no matter how you view it, that is extremely disheartening.

Wilhelm du Plessis Editor

@ConstWorldSA

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EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & GRAPHIC ARTIST Katlego Montsho CIRCULATION Karen Smith

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MARKETPLACE

CELEBRATING THE BEAUTY of concrete

AfriSam announced the winners of its inaugural ConCreativity challenge at a prestigious awards ceremony held at Zeitz MOCAA, the largest museum of contemporary African art in the world, on 26 October 2018.

C elebrating the various forms and potential of concrete, ConCreativity invited South Africans to capture the beauty of concrete through the lens of a camera. “At AfriSam we believe it is not what concrete makes, but rather what concrete makes possible. ConCreativity provided us with the opportunity to showcase the splendour of concrete, as captured by others”, says Ebeth van den Berg, AfriSam Group Marketing Manager. From May to July 2018, entrants could submit their images according to the three monthly themes of existing spaces, abstraction and architecture. With more than 1 000 beautiful entries received, the judges had the difficult task of selecting 18 finalists (six per month) and from these, the final three winners. The photos of all 18 finalists are currently on display until 24 December 2018 as part of the ConCreativity exhibition at Zeitz MOCAA – a once in a lifetime opportunity. Congratulations and well done to the following winners who captured the possibilities that concrete represents. WINNER: ‘Iris’ by Lesedi Goulanka (Category – Abstraction) “Taking pictures broadens my perspective of life and changes the way I view things. I find comfort and joy through a camera lens. The sun doesn’t set without me taking a picture.” Lesedi Goulanka is a 17-year-old aspiring photographer and entrepreneur who lives in Soweto. As a child, he would use his mother’s phone to take pictures and edit them to a professional level, an activity that helped him realise his passion for photography. ‘Iris’ depicts a staircase viewed through multiple circles carved out of concrete walls. He states that the stairs represent his goals and ambitions, whereas the circles are the obstacles that he needs to overcome in order to reach them. Much like a work of art, concrete and the entities that it forms may be interpreted in countless different ways. Thus portraying the medium as both highly functional, and infinitely beautiful.

2 nd PLACE: 'Under Pressure' by Unathi Mamane (Category – Architecture) “Photography is the universal language of our era.” Unathi Mamane is a busy, vibrant and goal-orientated young woman who recently qualified as a professional accountant. Over the past few years she has developed an immense passion for photography, which she uses as an outlet to express her imperfections, fears and quirks. “The photos I take every day teach people to look again, look harder and truly see through their eyes”, she says. Her image, titled ‘Under Pressure’, depicts concrete slabs that effortlessly balance and support the weight of a building. These slabs inspired her; she knew that they were more than the physical representation of mathematics – they revealed the true poetry of architectural concepts. Mamane was mesmerised

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by the way that the concrete slabs create an architectural masterpiece that is both functional as well as purposeful. 3 rd PLACE: ‘Urban Treasures’ by Stephan van Wyk (Category – Existing Spaces) Stephan van Wyk inherited his 35 mm camera, which is the root of his passion for photography, from his father when he was in high school. It took many years of exploring photographic techniques and tinkering for Stephan to reach this level of mastery, but it was made possible through sheer hard work and his eagerness to accept new challenges. His captured image titled ’Urban Treasures’ showcases the iconic Afrikaans Language Monument in Paarl. The intricate play of line, shape and texture of the structure played central roles in making this photograph so significant. He states, “I am most content viewing life through a lens and I always try to tell a story or capture an emotion in time. There is so much beauty around us – we only need to take the time to see it.” In addition to having their winning photos featured as part of the ConCreativity exhibition at Zeitz MOCAA, the three winners each walked away with their share of professional photographic equipment. “We are extremely proud of ConCreativity and the manner in which it has highlighted the important role concrete plays in our everyday lives. Each entry we received not only demonstrated the functional value of concrete, but beautifully depicted how concrete has positively impacted the world around us. It perfectly echoes AfriSam’s philosophy that there is so much more to concrete than cement, stone and water. It truly does create possibilities. We look forward to hosting another round of ConCreativity in 2019”, concludes Van den Berg .  T his project was also presented with the 2018 SAICE Durban Branch Award for the ‘Most Outstanding Civil Engineering Achievement’ in the category of community based projects, earlier this year. Bosch Projects was one of four design consultants to provide professional engineering and construction supervision services to the eThekwini Municipality, for the delivery of communal ablution facilities to informal settlements in the region. “The Bosch Projects team worked closely with the eThekwini Municipality in this project, to secure the supply of potable water and basic sanitation services, to some of the poorest communities in the KwaZulu-Natal province,” says Jason Holder, divisional manager, Wastewater (KZN), Bosch Projects – a member of the Bosch Holdings group of multidisciplinary consulting engineering companies. “Through this project, more than 118 000 people living in 34 informal settlements across the city, are benefitting from the provision of 300 communal ablution facilities. “It was a privilege for the Bosch Projects team to be part of such a meaningful project, which is improving the quality of life and restoring the dignity of so many people. These prestigious awards are a great honour for Bosch Projects.” Bosch Projects has sub-consulted with two eThekwini

ABOUT CONCREATIVITY From May to July 2018, AfriSam invited South Africans to share how they view the beauty of concrete through the lens of a camera. Entrants could share their photographic interpretations of specific themes related to concrete, and stood a chance of winning great prizes. Captured images were shared on Instagram with the handle @afrisam_sa and #ConcretePossibilities, with a description of how the photo addressed the monthly theme.

UPLIFTING THE COMMUNITY

The eThekwini Municipality’s ‘Provision of Water and Sanitation to Informal Settlements Project’ has received an award, in the ‘Community Upliftment and Job Creation’ category, at the IMESA/CESA Biennial Excellence Awards function, held in Port Elizabeth recently.

development design consultants – Lwazi Project Management and Masithu Consulting and Project Managers - in a mentorship role, with emphasis on skills development, to accelerate training and knowledge. Bosch Projects consulted in the areas of business development, project management, design and construction supervision across the project life cycle, while teams collectively implemented the project .  The Bosch Projects team worked closely with the eThekwini Municipality in this project, to secure the supply of potable water and a basic sanitation service to some of the poorest communities in the KwaZulu-Natal province.

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MARKETPLACE

OEM OPENS R985-MILLION CAMPUS IN JOHANNESBURG KOMATSU African Holdings, the Southern African division of global capital equipment player KOMATSU LTD, has unveiled a new industrial hub built at a cost of R985-million in Sunnyrock x 11, Tunney, Germiston, east of Johannesburg.

T he 300 000 m 2 development is one of the largest industrial campuses in the country and will serve as the central hub from which the company will manage its widespread operational footprint across South and southern Africa. The venture brings together multiple previously geographically dispersed operations in a single, convenient complex that has been purpose-designed to streamline existing operations and enable the business to capitalise on future market resurgence opportunities. “This development clearly reflects our confidence in South Africa and its future and serves as a launching pad to meet our objective of growth through innovation. It will also enable us to render support in the much-needed expansion of the local economy through the seamless supply of equipment to the mining, construction and utilities markets,” said managing director Mike Blom. The campus comprises the company’s head office operations, Gauteng branch and state-of-art training centre, equipment workshop and parts distribution centre. Construction on a technically advanced component remanufacturing facility will begin in 2019 and is set for completion the following year. Safe, pleasant and modern Blom highlighted the main drivers behind the development: the creation of a safe, pleasant and modern working environment for employees and the delivery of enhanced operational efficiencies. PARTS DISTRIBUTION CENTRE • 21 000 m 2 in size and 23% larger than the previous facility • Inventory of around 40 000 line items valued at R885-million • Distributes around 12 000 pieces to more than 40 destinations every day • Features semi-automated turret trucks enabling safe, accurate access to the highest racking areas • Stock processing undertaken using KOMATSU Warehouse Management System and SAP interface • Features best practices in warehouse design and operations from Japan, Europe and Australia • ‘Supermarket’ techniques are employed to keep fast-moving items at eye level to optimise picking cycle times

‘Gemba’ is the Japanese word for ‘the real place’ or ‘the place where work gets done’.

TRAINING CENTRE • The learning hub features a technical, health and safety, and operator training dojo focused on meeting employee and customer skills requirements • Features revolutionary virtual reality technologies with realistic machine controls for simulated operator training and testing • Over the past five years, more than 130 apprentices have gone through the Komatsu apprenticeship programme • The centre currently offers 36 courses and has provided training for more than 2,300 people over the past three years The investment comes as Komatsu prepares to mark its centenary year in 2021 and the promoting of its mid-range management plan – ‘Together We Innovate GEMBA Worldwide: Growth Toward our 100 th Anniversary and Beyond’ is based on innovation and structural reform to accelerate growth. ‘Gemba’ is the Japanese word for ‘the real place’ or ‘the place where work gets done’ .  These will have a positive impact on the levels of service and support provided to customers through improved logistics, workflow and communication. “Africa, and South Africa in particular, have become an integral part of our global business,” said CEO and president of KOMATSU LTD Tetsuji Ohashi. He added that the country is not only the company’s biggest market on the continent but the base from which operations in nine separate countries across the region are driven. “What we are doing today is sowing the seeds for future growth,” he said.

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Informing industry across Africa P U B L I C A T I O N S

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CONTINUED LATE PAYMENTS got you down?

It is common for contractors to be faced with their employers not paying them on time or, even worse, not paying them at all. Yet a number of contractors continue working for free, potentially putting themselves at risk of over-indebtedness or even closing their businesses. W hy is this? Because in most cases, their contracts do not offer them any relief for late payments.

At MDA Attorneys, we deal with construction contracts daily and we are increasingly seeing more of our clients entering into contracts with completely unfair terms, simply to ensure that they secure the work. The issue of late payment can be avoided, or at least mitigated, if you ensure that the contract includes the appropriate remedies. It is a great pity that many employers seem to be getting away with deleting these remedies from contracts. To protect yourself, don’t wait until it’s too late and you are forced to face continued late payment. Instead, before you enter into a contract, know what appropriate clauses should be included for your protection. Standard forms of contract contain several remedies to assist contractors in the event of late payment. Check that these clauses are not manipulated or deleted by your employer. The FIDIC Red Book, for example, has several clauses that offer relief. Pay particular attention to any amendments to or deletions of these clauses. Suspension (Sub-clause 16.1) In terms of this clause, contractors are entitled to suspend the works should their employer fail to make timeous payment. This is especially effective when employers (or contractors if you are a subcontractor) have their own deadlines to meet under threat of penalties. In these circumstances, they will often speedily make payment upon any word of suspension. Meanwhile, as a contractor, you are able to mitigate costs and claim any costs incurred as a result of the suspension via a contractor’s claim (sub-clause 20.1). We often see employers deleting this clause from contracts or extending the notification period so far that it renders this remedy futile, which is a less obvious way to avoid this clause. Look out for this in the particular conditions of your contract. Employer’s financial arrangements clause (Sub- clause 2.4) In terms of this clause, contractors can request reasonable evidence from employers that financial arrangements have been made to ensure that the contract price can be paid. At first glance, this may seem like a wasteful exercise. It is not. The contractor is entitled to terminate the contract if an employer fails to provide reasonable evidence. Essentially, it allows contractors to terminate the contract if they suspect that the employer may not be able to pay, rather than having to wait until the employer actually doesn’t. Employers often delete this clause. If you can, insist on its inclusion. Termination (Sub-clause 16.2) In terms of this clause, contractors are entitled to terminate the contract in the event of non-payment. Thereafter, contractors are entitled to payment in terms of sub-clause 16.4, which includes

By Kelly Stannard, Associate at MDA Attorneys

an entitlement to loss of profit or other loss or damage. It is common for employers to delete clauses detailing a contractor’s right to terminate in the event of non-payment. As with suspension, ensure that your employer has not used the tactic of extending the notification time periods so far that this relief is no longer effective. In addition, make sure that your employer does not indirectly make this relief worthless by deleting your right to receive payment upon termination. Not only do you need to be able to terminate, but you need to be able to claim payment to recover your losses. Also, never terminate a contract without legal assistance. Not only must specific procedures be followed, there are some legal intricacies that have a significant influence on whether the termination is legally valid. If a contract is incorrectly terminated, you could be accused of repudiating the contract and damages may be sought from you. Interest (Sub-clause 14.8) Contractors can claim interest in the event of late payment. While this doesn’t solve a payment problem, it can mitigate costs somewhat. Ensure that this clause is not deleted, that the interest rate is not reduced and that a claim for interest is included in monthly applications for payment so that the employer knows you mean business. These are just some of the ways in which you can protect yourself from late or non-payment. The standard forms of contract, left as is, are generally fair to both parties and provide contractors with the protection they need. Should your employer use a bespoke contract, be especially alert as you may not be as familiar with the terms. It is worth investing in having a professional review unfamiliar terms. In the long run, it will be much more cost effective to do so than dealing with a situation where you are not getting paid and you have no contractual relief to come to your aid . 

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CONQUERING THE CHALLENGES OF BEING A GLOBAL PLAYER Thierry Bernard, Paris-based president and CEO of The Chryso Group, recently visited the Chryso Southern Africa. In a busy schedule, he found time to brief Construction World on Chryso successes, challenges and future strategy.

How did The Chryso Group fare globally in 2018? It has been a satisfying year for us, with significant organic growth, several new acquisitions, and meaningful expansion of our product range. But it has not been easy in many ways – the past three years, in fact, have never been plain sailing business-wise. What were the major challenges in 2018? Chryso faced strong headwinds when it came to profit margins for a variety of reasons – and these, sadly, are obstacles that will almost certainly still have to be overcome in 2019. In the first place, raw material costs are constantly rising along with the soaring oil price and stronger US dollar. Then, for a Group operating in several emerging markets, the volatility of the various local currencies has been exceptionally difficult to cope with. What has helped counteract these problems? Improving customer experience is of paramount importance. Chryso has had to focus on product innovation as well as our service offering to customers and create new and loyal customers by providing support not readily available on local markets. The South African Centre of Excellence at the Jet Park head office, for example, offers research and development as well as testing and advisory services that customers of an admixture supplier has never been able to find at the supplier’s home base in South Africa. The performance of the South African Centre of Excellence has been most impressive and a major success. It operates identically to similar research and development facilities Chryso has established in Istanbul, Mumbai and at our head office in Paris. Even in the toughest of times, successful companies cannot afford to cut back on investments in research and development. Capital expansion programmes continue to focus on enhancing those elements. Despite operational obstacles, Chryso continues to acquire new operations all over the world. How do you select candidates when it comes to take-overs? Over the past four years, our Group has significantly expanded its presence in many corners of the globe by acquiring local businesses with strong potential. Since 2014, we have taken over new companies in areas such as Sri Lanka, Algeria, Kenya, Sweden, Qatar, the Philippines, Italy, Ireland and Portugal. We have even expanded our presence in our country of origin, France. In selecting new subsidiaries, Chryso looks at businesses with ‘healthy drivers’, leaders with construction dynamics and appetites for innovative solutions. On the ‘soft side’, we also look for companies where the owners have created market-leading relationships with customers: as at Chryso, the new subsidiary’s management must have the philosophy that ‘the customer comes first’. Apart from these shared values, we also assess compatibility and general synergy when it comes to quality consciousness.

Thierry Bernard, Paris-based president and CEO of The Chryso Group.

Are there plans for further acquisitions? We are always looking at creating more subsidiaries in areas where our representation can be improved and where we can support our global customers. As far as Africa is concerned, both the East African and Algerian operations have proved successful and our African distribution network keeps expanding. We are likely to invest in more production operations in Africa in West Africa in 2019 not only because there is scope for increased Chryso involvement there but also because of the synergy created by the area’s strong French-speaking profile. When it comes to new products, what is in the pipeline in 2019? Our new products will to a large extent focus on concrete – from basic to decorative. The development of new products that the market has been waiting for is one way of surviving in the worst of times. In South Africa, for example, the poor quality of local aggregates has been a persistent problem for the concrete industry. In this regard, we are planning to embrace the concept of QUAD and CLEAR technologies. Chryso is also going to concentrate much more on the decorative concrete market in future. Since we acquired Moderne Méthode’s decorative product offering, as well as its Béton Academy training facility in France, new market opportunities have opened for us world-wide. We have already created a Moderne Méthode department at Chryso here in South Africa and we intend to extensively grow the range of decorative products stocked locally in future. Finally, are you proud of what has been achieved by Chryso in Southern Africa? Immensely happy and proud. It is without any doubt one of the Group’s most successful subsidiaries, thanks to astute leadership and quality of staff – just the spirit of the Group here is striking. It is, for me, always a joy to visit our South African operations. Chryso Southern Africa ticks all the boxes I mentioned in the criteria for selecting subsidiaries and we see a tremendous future for the company here . 

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Tertiary institutions URGED TO EMBRACE TIMBER CONSTRUCTION The Institute for Timber Construction South Africa (ITC-SA), SAQA-accredited professional body for the engineered timber construction industry, has noted a decline in familiarity with timber as a building material among graduates of local tertiary level engineering programmes, which has serious implications for the timber industry. W e are missing a golden opportunity by skipping out on timber altogether, to build these structures more

time I was introduced to timber as a building material was also the first introduction to limit-states design and our first exposure to information on how to design. Both concepts were introduced in the same subject with a focus on how to design using the SANS codes with limited reference to implementing these in the timber industry.” While it is not uncommon for new graduates to experience a temporary ‘gap’ or lag between skills learned at university and their application in the working environment, upon entering the timber construction sector, Smal experienced an amplified break between the theoretical learnings from her studies and applying these at work: “It was difficult when I started working; I had a gap between what I had learned and how to apply this,” she says. Timber and the built environment “The world is developing at a rapid pace and we need more building options to support this growth. With prolific urbanisation afoot, many developers are targeting height as an answer to density and most often will use steel and concrete to build these structures. We are missing a golden opportunity by skipping out on timber altogether, to build these structures more sustainably with a natural and renewable resource, because timber is often not part of the engineering graduate’s toolkit,” she says, noting, “A more sophisticated grasp of the benefits and limitations of all materials, timber included, could help to create a built environment in which timber is not pushed to the sidelines, but is harnessed alongside other industries, used for primary construction and stepping in to complement other trades, for a better construction sector overall.” Bridging gaps Early on, working for an ITC-SA System Supplier, Smal realised that there was an opportunity to broaden her knowledge and practical skillset in the timber construction field. She was led to the ITC-SA, whose mandate it is to oversee the training and development of its members. “I was delighted to find the courses on offer at the ITC-SA. I have learned a great deal from participating in these courses and they have helped me bridge the gap between my studies and the practical application thereof so that I can carry out my profession with confidence,” she says. “As part of the ITC-SA’s directive to boost skills development and bridge gaps in the timber construction sector, the Institute offers a number of online courses and regularly hosts Engineering Council of South Africa (ECSA) approved CPD-accredited training courses for continuous professional development. These include, among others, timber information conferences and workshops at various trade shows and institutions like Local Authorities, Public Works, Banking Institutions and Banking Valuators,” Obbes remarks. According to Obbes, “Exposing professionals and industry specifiers to timber construction on equal footing with other construction materials during their studies and beyond is critical, trades to be able to work in complement with one another for

sustainably with a natural and renewable resource, because timber is often not part of the engineering graduate’s toolkit As such, the Institute urges training providers in this field to review their curricula for a more holistic offering that embraces timber as a standard construction material. While timber frame construction makes up a small, but growing, percentage of new builds in South Africa, timber is widely used for roof trusses, from domestic to commercial applications across the country. “With the high-volume usage of timber in roof trusses for a range of roofing applications, it is essential that all participants in the value chain are well equipped to ensure that timber roof trusses adhere to regulations, from design to certification,” says Amanda Obbes, ITC-SA General Manager, remarking. “The engineer has a pivotal role to play in ensuring the safety of the occupants of a structure, not just during the design, fabrication and erection of the roof trusses, but they essentially have the final say on whether or not a structure is fit for habitation. This makes it essential for the engineer to have proper exposure to timber and its design capabilities as a construction material and is the reason the ITC-SA is calling on universities and colleges to extend to timber its due in their engineering courses and degree programmes.” A graduate’s perspective Thea Smal, Civil Engineer at Unilam Pressings, has experienced this phenomenon as a university graduate. “At university, our exposure to timber construction was only in a third-year semester subject, namely Timber Design. We were offered much more in-depth learning for the other structural industries like concrete and steel, with two full semesters dedicated to these, as well as a measure of practical experience in the field. The first

Thea Smal, Engineer at Unilam Pressings and engineering graduate, has taken advantage of the courses on offer at the ITC-SA to help bridge the gap between her studies and the practical application thereof in her current profession.

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the best possible outcome. Without the necessary skills in the timber sector, this vision has little chance of being fully realised. This is why the Institute has implemented a host of courses that can boost the professional’s knowledge of timber, not only for personal development, but for the value that this brings to their workplace and the industry at large.” “Timber has unrivalled potential as a building material to answer the global call for more sustainable buildings that serve the people who live, work and play in them and environmental imperatives that will continue to underpin our drive for a greener built environment; it is critical that we support this vision through education, training and learning,” she concludes . 

A LEADERSHIP RESET IN CONSTRUCTION FOR FOURTH INDUSTRIAL REVOLUTION A recent Balfour Beatty survey envisions a construction industry with dramatic digital capability by 2050. The construction industry both in South Africa and the rest of the world has been known to be slow to adapt to change, but the fourth industrial revolution (4IR) is here to stay, calling for a new approach to leadership in the industry. W ith long-standing resistance to change and low productivity, the construction industry also needs to urgently embrace new technologies. With stiff price competition in the industry, embracing digitisation could have acquiring new technologies as the most important strategy for managing disruptions faced by their companies in general. The key attributes of a digitisation-ready leader in the construction industry will include: • A focus on talent development – automation will move the industry towards more knowledge intensive jobs rather than physical labour. New jobs will require creative intelligence and the ability to leverage artificial intelligence.

substantial economic impact. The South African government cut infrastructure spending by 12% this year and construction companies are struggling to stay in business; for example, Esor Construction, Liviero Group and Basil Read Holdings have all gone into business rescue this year. The Boston Consulting Group estimates that within 10 years, full-scale digitisation

• Leaders need to look for ways to upskill their existing workforce for jobs such as drone operators, robot resource managers and augmented reality trainers, to name a few. • Agility – this is important especially for established organisations who will need to quickly respond to change or risk losing forward-thinking employees to new industry players with fresh thinking. As it is, the industry is struggling to attract younger workers who are looking for industries that have a future. • Prepared for disruption – closely linked to agility is the ability to embrace disruption. Recognise when disruption is happening and put in place a strategy for multiple futures. • The right combination for future disruption is likely to be a combination of longstanding and new offerings. • Make small changes and acknowledge that the incremental changes will have a great impact on your organisation. Respond to the changes by seeing the bigger picture and adjusting your business accordingly. • A collaborative approach – the fourth industrial revolution is new territory for the world, and it is key that construction leaders collaborate with their employees, academia and other industry players for mutual learning and to redefine the industry. Ed McCord, General Manager of heavy machinery manufacturer Caterpillar said that, “In this world of rapid, powerful change, the world belongs to those who can redefine it and today’s pioneers are tomorrow’s winners.” How effectively South African construction leaders can adapt will determine the industry’s future. 

By Théo Gaultier, Senior Consultant at Odgers Berndtson sub-Saharan Africa.

could help the global industry save an estimated USD1,7-trillion annually. The benefits of a digitized construction industry are obviously significant; however, it will take a different approach to leadership in the industry to ring in the necessary move into the digital era. Globally, the construction industry is estimated to employ more than 100 million people, while it is South Africa’s most labour- intensive sector in terms of labour/capital ratios. It is also a highly- unionised sector and thus likely to be met with high resistance to change in order to protect jobs. CEOs need to better understand the macro-economic context of the industry. Most often they have worked in an executive role for decades and have not necessarily been directly involved in the latest technological evolution, resulting in an organisational disconnect. A PricewaterhouseCoopers survey on disruption revealed that 80% of CEOs surveyed think the production technologies their companies use will change in the next five years, and 75% cite investing in or

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ENVIRONMENT & SUSTAINABILITY

WIND INDUSTRY ADOPTS CHARTER TO ADDRESS IMPACT AND SA DEVELOPMENT A Commitment Statement drafted by members of the Wind energy industry has been adopted at an Annual General Meeting of the South African Wind Energy Association (SAWEA). The statement sets out a vision for optimising the industry’s long-term investment in the physical, social, environmental and economic development of the country – beyond compliance. “I t has been rewarding to coordinate the drafting of the Industry support the goals of the NDP and local development plans. With several rounds of accepted bids behind them, key members of SAWEA have had some years of experience in implementing the requirements engineered into the contracts.

commitment to South Africa and in the process to consider what we are able to contribute to socio-economic transformation over a 20-year time horizon,” says Brenda Martin, CEO of SAWEA. Traditionally, Industry charters are made with hindsight by mature industries. Recognising the opportunity to set a vision early on that can serve as a touchstone for the maturing Industry, the relatively young SA Wind Industry makes this commitment at a vital moment in its growth. “Being aware of the fears experienced by those affected by the energy transition underway in South Africa, we are articulating our ability to making meaningful contributions to employment creation and socio-economic transformation,” she says. The Commitment Statement notes some distinct industry features, which can be leveraged: • The REIPPPP has a built-in demand for local procurement, which not only offers business opportunities to local companies, it also incentivises the Industry to identify emerging entrepreneurs, especially in rural areas, and assist them to achieve high performance goals. • The industry is able to use its own clout to assist emerging entrepreneurs in accessing finance. • Contract terms demand that wind industry players seek opportunities to make contributions to local social and economic development within each operator’s catchment area (a radius of 50 kilometres). This has evolved; companies now able to voluntarily extend their activities while meeting their contractual obligations, with the aim of making long-term impacts beyond compliance. • The industry sees opportunities to sculpt a management and employment profile which reflects a fair and ethical culture that enables skills development and advancement for the young, the disadvantaged and for women; and to grow a people and ownership profile reflective of the demographics of our country. “Our aim over time is to transform and indigenize leadership at all levels in the South African Renewable Energy sector,” says the Commitment Statement. Transformation of industries and communities through localisation, skills development and socio-economic interventions

With the Commitment Statement for the industry, they are crystallising what they have learnt, and taking the opportunity to express an important outgrowth of the terms under which they operate: a unique further commitment to the country and to the people. “This is the springboard upon which this young industry can grow,” says Martin. “It captures what we’ve learnt thus far and crafts that insight into a foundation for creating a flourishing future; a foundation that is solid but also flexible, capable of adapting to evolving socio-economic transformation needs.” Collaboration is key One of the task team members involved in shaping the Commitment Statement is Toni Beukes, Country Manager for Vestas Southern Africa and Chairperson of SAWEA’S Wind for Communities Working Group. The commitment for this young industry has a very different time horizon than charters and other similar documents which aim to reverse-engineer conditions in other mature industries, says Beukes. “Most of our businesses represent long-term investments in the physical, social, environmental and economic fabric of this country,” and that is an industry strength, the Commitment Statement notes. The arc of impact for socio-economic interventions takes us 20 years into the future, Beukes says. Over that period, significant funding will be generated – the first three rounds of bidding alone have produced over R1-billion for local community development. The potential inherent in ample time and ample funding has drawn industry players into collaboration. “Funds and effort will have more impact if we work together,” says Beukes. “Our reach into communities often overlaps geographically, so we have begun to look for the best ways to collaborate to support socio-economic change locally.” This sense of collaboration at a broad level, of growing together into a united, fully-fledged industry with deep connections to local suppliers and people, is reflected as a key strength in the Commitment Statement.

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CONSTRUCTION WORLD JANUARY 2019

G lobally, the infrastructure delivery company is one of the biggest licensed user of major software providers such as Bentley and Autodesk. The addition of VR and AR is complementary to AECOM’s use of Building Information Modelling (BIM), in which multiple design teams produce integrated 3D models. Now both the design teams and clients can ‘walk through’ VR scenes of an actual project, whether an industrial process plant such as a brewery or an automotive assembly plant, as well as commercial projects, Craig Howie, Digital Project Delivery Lead, Buildings + Places, explains. “Our aim was to show it is not really all that complicated. We are all very excited about what technology is allowing us to achieve on our projects,” Howie stresses. The VR system adopted by AECOM uses industry-standard software. An important element of this is that AECOM can visit a client and show a VR scene at their place of choice, as the technology is fully portable, whether for a client presentation or event for training purposes. AECOM now has both BIM and VR capability in its Durban, Cape Town, and Centurion offices. “Until now, we have been using a 3D model displayed on a computer screen to boost our clients’ understanding of a project. VR takes this a natural step further, as it places you literally within the ‘as built’ project,” Howie explains.“ AECOM now offers 3D models as a standard across all of its projects, even though this is not yet mandated in the local construction industry. Commenting on the adoption of BIM and immersive technologies by the South African construction industry in general, Howie points out that, while the digital revolution is being driven largely by the engineering, design, and consulting fraternity, AECOM is working closely with a number of construction companies that have expressed interest in such latest innovations.  A living document For Lukhanyo Ndube, CEO of Kouga Wind Farm, the Commitment Statement is “not a list of items to be achieved to the T – it’s a conversation document, bringing us all together in discussion as an industry.” Everyone who has worked on this document as part of the industry team has a history, he says: during their working career, they’ve seen many missed opportunities to make a difference while making profits, and they bring these individual experiences and passions to this new industry. They hope to make the most of it: “The Commitment Statement is an expression of what we think we can do, and as the conversation unfolds, the document will improve.” According to Hein Reyneke, CEO of Mainstream Renewable Power South Africa, the drive to achieve the goals set out for successful bidders had two wellsprings: “Everyone in the industry recognises that we have a responsibility to the country.” On the other hand, there’s also a sense of self-preservation: “If we don’t take up the challenge to meet the demands of the NDP, if we don’t do this properly, then we won’t be able to do what we really want to do – which is produce power. From the outset, we’ve known that this was non-negotiable.” Like most in this fundamentally people-oriented industry, Reyneke spends a fair bit of time in deep rural areas to which wind

installations are bringing opportunity. The poverty trap, he says is very evident. “It’s there, it’s undeniable, it’s in your face.” Seeing this “creates quite a fundamental shift in how you think.” He muses on the difference between the children of this community and his own children: those born into poverty will be unfairly disadvantaged. The wind industry is infused with an urgency to assist with righting this social inequality and injustice. “The Commitment Statement lays the foundations for the culture of the industry,” he says. “It’s a solid guide based on real-life experience, which can be used in the next phase to make pragmatic choices, to find ways to hold each other accountable, and to set tangible, measurable goals.”  “The Commitment Statement is an expression of what we think we can do, and as the conversation unfolds, the document will improve.”

CONSTRUCTION INDUSTRY'S digital future The potential of Virtual Reality (VR), Augmented Reality (AR), and Building Information Modelling (BIM) in the construction and consulting engineering space was showcased at an event entitled ‘The Digital Future’ at AECOM’s Sandton office on 1 November.

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CONSTRUCTION WORLD JANUARY 2019

PROPERTY

BEST MIXED-USE DEVELOPMENT IN SA At a lavish ceremony held at the exclusive Waldorf Astoria Dubai Palm Jumeirah hotel in October 2018, Waterfall Management Company was honoured with the Best Mixed-use Development in South Africa

2018/2019 award for the Waterfall development. B esides scooping this prestigious award for the fifth year in a row, Waterfall was also nominated for Best Mixed-use Development in Africa by the International Property Awards – Africa and Arabia chapter. Now in their 26th year, the International Property Awards celebrate the very best projects and professionals in the industry worldwide, covering the regions of Asia Pacific, Africa and Arabia, Europe, USA and the Americas, as well as the UK. Judging focuses on design, quality, service, innovation, originality, and commitment to sustainability. The highest scoring, five-star winners from each category in Africa will be automatically put forward for re-judging against the five-star winners in the other regions of the world. Following this re-assessment, the 2018 International winners in each category will be identified as the ‘World’s Best’. These winners will be announced at the grand gala presentation dinner to be held at the Savoy Hotel in London on 3 December 2018. Last year, Waterfall not only won Best Mixed-use Development in Africa for the fourth year running, but also walked off with the top honors for the first time, when named Best International Mixed-use Development 2017/2018. Willie Vos, CEO of Waterfall Management Company, said: “Waterfall made history last year as the first South African company to ever win the Best International Mixed-use Development award. We can only hope that we can achieve the same feat in 2018. We are thrilled to have once again won Best in South Africa. Fingers crossed for Best in Africa and then the world.” Waterfall Management Company is the Property and Asset

Management Company of the Waterfall land. Since 2004, Waterfall Management Company has been working with developers and investors to create the largest mixed-use development in Africa. This 2 200-hectare leasehold development in the heart of Gauteng, offers integrated, fibre-ready live-work-play environments that provide unsurpassed quality of life in a vibrant urban environment. In addition, Balwin Properties won the Best Leisure Interior South Africa award for the Lifestyle Centre at The Polofields, Waterfall, designed by LYT Architects. 

Tertia du Toit, Communications Manager of Waterfall Management Company and Willie Vos, CEO of Waterfall Management Company.

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CONSTRUCTION WORLD JANUARY 2019