Namibia's Construction and Mining magazine September 2018

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September 2018 | Vol. 3 / No.5

NAMIBIAN CONTRACTORS ON EDGE

Construction & Mining Namibia, September 2018

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Construction & Mining Namibia, September 2018


With concerted efforts, we will survive the drought

T

he shortage of water in Namibia due to the ravaging drought currently being experienced is a cause for concern to the construction industries. Surely the sector is in panic mode, while government moots a raft of ways to preserve the little that remains.

which serves as the only mouthpiece for the construction sector. While discussions continue on the construction of a second reclamation plant, there is need for people to change their mindset on the use of water. What is key to note is that these sources are far and any of these interventions should cost a fortune. These solutions however override the costs associated as they bring about permanent solutions to a problem which has existed for decades.

The sector is adamant that solutions should just be sustainable and permanent. Droughts are nothing new in a country which receives very minimal rainfall year in year out. It is therefore pertinent to call for permanent solutions to ensure that the problems associated with this precious liquid are solved once and for all.

The need to preserve water remains a key priority to the construction sector. Calls have been made to this effect and we look forward to the successful implementation of recommendations made to ensure that the sector survives through this difficult period.

The discourse on construction cannot be complete if the current water crises remains out of this medium

As always, send us your valued opinion piece to editor@ constructionnam.com for publishing. Keep reading.

Roxy Silta Tjarukua | info@constructionnam.com Cell: +264 81 432 8467

Credits & Contacts Marketing Caryn Chanengeta marketing@constructionnam.com +264 81 296 7087

Printers John Meinert Printers Physical address 24 Mozart Street Windhoek West, Windhoek, Namibia

Design and Layout Keith M. Tuwelo tk.keith@outlook.com +264 85 639 6024

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Work For Namibian Contractors - Pie In The Sky?

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MOME Modular Homes - a solution to informal settlements

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Developing Namibia’s State Of Logistics Report

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The Evolution Of The Walvis Bay Corridor Group...

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BDN - Bright prospects for solar power finance

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AfriTin remains focused on Uis development

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FNB and SME Compete make business dreams come true

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Paint it black - What is behind the worldwide trend to paint buildings black?

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Windhoek building plans continue to decline

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MOME Policy - Licenses, Rights and Permit Applications Guidelines and Assessment Procedures

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The ‘enabling framework’ – a possible way forward to kick start the building industry by spreading the load

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Strategies to Build a Strong Construction Team

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Construction & Mining Namibia, September 2018

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CONTSTRUCTION

WORK FOR NAMIBIAN CONTRACTORSPIE IN THE SKY?

2017/2018 Members of the CIF Executive Committee From left to right: George Hainana, Achim Lueck, Elmo Kaiyamo, Magreth Kazondunge, Gavin Fuller, Steffen Rechholtz, Nico Badenhorst (President), Panashe Daringo (Vice-President), Baerbel Kirchner (Consulting General Manager), Mario Teichmann, Gordon Goeieman, Luther Rukira and Leonhard Eins.

T

he Construction Industries Federation of Namibia (CIF) launched its fifth edition of its Annual CIF Directory this week to facilitate access to information about the organisation’s respective members and the services they provide. This is to ensure that, if in doubt, all buyers of construction services, especially all Namibian government authorities, are aware of the extent of capacities of the Namibian construction industry.

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The launch of the directory comes at a time when the Namibian industry is vying for business and continues to compete with foreign contractors. Austerity measures to curb public spending, meant that many businesses in the Namibian construction sector have either downsized drastically or closed down, or indeed filed for bankruptcy. Consequently, many jobs were lost in the industry, and layoffs continue unabated until such time when the industry stabilises. As spending cuts had slowed down the economy, the Namibian government embarked on securing financing from multi-lateral institutions such as the African Development Bank as well as from the Republic of China, as a result of bilateral negotiations, which principally should lead to opportunity for the 301 members listed in the CIF Annual Directory and ensure the revival of the construction sector.

Construction & Mining Namibia, September 2018

However, if procurement and tender requirements remain as they are now, it is highly unlikely that the approved loan from the African Development Bank, as well as the proposed grants and loans from China to largely finance infrastructure developments with the intention to stimulate the economy, can achieve that optimally. On the contrary, as it stands now, it appears that the local industry is being technically excluded from lucrative tenders. The tender requirements (historical financial performance and financial resources, average annual construction turnover) are of such a nature that they automatically preclude all Namibian contractors. This becomes very apparent in the recent African Development Bank/Roads Authority Invitation for Prequalification (No. RA/DC-CR/06-2014/2A) for the Construction of Trunk Road 9/1 from Windhoek to Hosea Kutako International Airport to Dual-Carriage Freeway


CONTSTRUCTION

Standards: Phase 2A – Sam Nujoma Interchange to Dordabis Interchange (19.5km) that was issued on 3 September 2018. Similarly, the recent Ministry of Works and Transport Invitation for Prequalification (No. MWT-DRIM/2018-03, ICB No. MWTDRIMTIIP2018/A1.2) for the Construction of Earthworks, Structures and Plate Laying for the Upgrade of the Railway Line between Walvis Bay and Kranzberg Railway that was issued on 29 August 2018. The same applies to the financing arrangements with the Republic of China. The industry is concerned that once again the conditions of grants and loans are of such a nature that it precludes the local industry due to stipulations determined by the Chinese government. It begs the question of whether the approach of technically excluding Namibian contractors, is aligned with

Namibia’s national development plans and if indeed it is in the interest of addressing unemployment and tackling poverty in Namibia. It is unlikely to lead to Namibia’s sustainable economic development. Bärbel Kirchner, consulting general manager of the CIF comments: “Government might have secured favourable financial arrangements with China, however, the question is, what

“Government must be aware of the opportunity costs, and also stop working in silos. How can we hope to achieve tackling poverty and create jobs, and then come up with such deals that exclude our industry, which not only would have created employment opportunities, but also would have stimulated other sectors of our economy? To avoid the tragedy of even more closures, the CIF demands that the tender

are the trade-offs? We should consider the overall costs involved – the loss of Namibia’s own capacity, further retrenchments, even the potential collapse of our entire industry.

for pre-qualification will be retracted immediately, and that the authorities engage the Namibian construction industry and revisit the tendering requirements.

It is generally known that labour, products, and services are being imported. Cash is taken out of the country. We also need to better understand the arrangements with regard to taxation and contributions to our Receiver of Revenue.

Kirchner says: “Frankly, considering the current situation of our industry and the economy at large, we need to recognise the opportunity and collaborate to find the best solution for all. Our industry must be engaged in such multilateral and bilateral negotiations”.

Construction & Mining Namibia, September 2018

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INNOVATION

MOME modular homes a solution to informal settlements

Bright Design CC’s architect and building systems engineer from the Netherlands, Roel Rutgers, has joined ventures with LIC Pool Centre CC, the biggest Namibian swimming pool company, to develop flexible modular homes. This affordable housing system addresses the country’s housing problem, and is a step well in line with Namibia’s Vision 2030 goals.

R

utgers recently revealed in an exclusive interview that he wants to improve the housing and sanitation conditions in informal settlements. The collaboration with LIC Pool is a result of a mutual vision between the two parties.

The modular home concept is designed as a modular system which can be constructed room by room. Thereby the house can be expanded over time within

the needs and budget of its owner. The design includes a prefabricated sanitary unit, solar energy, veranda or carport as built in options.

“Housing backlog is a real issue and it will not be solved overnight. Our product comes to address this backlog. It is a step in the right direction towards dealing with this challenge,” he says. Observing that informal settlements have been in existence for many years in Namibia, as an architect he is convinced that corrugated steel used for housing in a country with extreme temperatures is definitely not the best technology that mankind can come up with.

Construction & Mining Namibia, September 2018

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INNOVATION

“We use durable isolated panels produced in the LIC Pool Fiberglass factory. These panels are made of fireproof insulation material cladded with fiberglass on both sides, painted both inside and outside. The insulation keeps the house cool during the day and warm overnight. The house also allows the use of standard window and door frames, burglar bars for the windows and security doors to increase security levels,” Rutgers says. These partners are also working closely with Omuramba Impact Investment CC to employ the Enviro Loo technology, a South African manufactured water friendly sanitation solution, as a way of improving sanitation in the informal settlements along with these modular homes. There are a number of advantages that are coupled with MOME modular homes technology. The homes are easy and quick to build. He says, “We have done a one-bedroom house with a solar geyser, tiling on the floor, painted inside and out, and it took 5 days to complete.” The standardized system allows for easy planning and extension. The lightweight panels are easy to transport. The units can be moved if necessary. And the use of water for construction is reduced by 80% as it is only used for floors.

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Since this initiative is still in its development, Rutgers is extensively involved in market research. He is meeting a lot of people from informal settlements around Windhoek, so he can get a good insight into the needs of the shack dwellers. Designs are then made to best suit these needs. He describes the market response as very positive so far. “Shack dwellers are always on the lookout for opportunities to improve their quality of living and they see our system as a very feasible way to achieve this.” Bright Design CC engages commercial banks, the municipality and other relevant stakeholders to recognize the MOME technology and introduce bank financing for those that want to acquire these homes. Rutgers says a set of rules for both permanent and temporary buildings exists in Europe. The absence of the same scenario in Namibia makes it hard for the market to create solutions for those living on leased or occupied land. Setting up relevant rules and regulations to govern temporary structures will help formalize informal settlements and this will be an important step going forward. “We would like to investigate with the Namibian government how we can create an alternative strategy for temporary housing as a bridging solution.”

Construction & Mining Namibia, September 2018

Besides informal settlements, the MOME housing solution also targets construction sites, mines and farmlands, where building with bricks is considered too expensive due to the temporary nature of the structures at these respective areas. A brick structure cannot be moved, while the MOME house can have a second or even third life in a different location. The technology is being developed as a Namibian product with current focus on Windhoek. That said, and while starting small, Rutgers is ambitious and hopes to take this technology to other regions of the country. The SADC will also be pursued. “I want to build everyone a decent house by 2030, that will be my contribution to the Harambee Prosperity Plan,” Rutgers says. Rutgers is also challenging other companies to come up with solutions to help alleviate the housing problem. *Roel Rutgers has worked as an architect in the Netherlands for 9 years in a firm that specializes in sustainable architecture. He has been working on this innovative project for more than a year now. For more information about MOME modular homes, go to www.momehousing.com *


ARCHITECTURE

Construction & Mining Namibia, September 2018

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LOGISTICS

DEVELOPING NAMIBIA’S STATE OF LOGISTICS REPORT

improved, exploring the opportunities that currently exist to improve performance measurement across supply chain processes, as well as analysing how data is shared across organisational boundaries. There is a growing interest globally in measuring and tracking logistics performance.

Logan Fransman, Director: NGCL (front row, second left) and Golbert Boois, Manager: Walvis Bay Corridor Group (front row, third from right), pictured with various stakeholders and NUST staff.

T

he Namibian-German Cantre for Logistics (NGCL) is in the process of developing a State of Logistics Report (SoLR) for Namibia. To this end, the NGCL held a meeting with various stakeholders to discuss the performance measurement of the logistics and supply chain system in the country.

Through an agreement between NUST and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), NGCL was tasked to roll-out SoLR for Namibia, which is a review of the country’s state of logistics. It focuses on facilities, transportation, inventory, materials, order fulfilment,

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communications, service providers, and information management that potentially captures, as accurately as possible, the logistics and supply chain performance. The meeting took a World Café Methodology approach, to encourage discussion and the emergence of focusdriven solutions. The method entails a structured conversational process in which groups of people discuss a topic at different tables, with individuals switching tables periodically to gain a holistic sense of the different topics. Some of the main issues explored in the conversations included the quality of existing data and how it can be

Construction & Mining Namibia, September 2018

Some antecedents include the Annual Sate of Logistics Report (USA), published by the Council of Supply Chain Management Professionals since 1988, and The Logistics Barometer South Africa, (formerly the State of Logistics Surveys for South Africa), published since 2004, amongst others. Namibia’s SoLR follows in the footsteps of this tradition and it cannot be overemphasized that logistics and supply chain performance measurement is a critical tool for purposes of informing macro-economic policy and investment decisions. The meeting brought together decisionmakers and experts from the Walvis Bay Corridor Group (WBCG), GIZ, Gesellschaft mit beschränkter Haftung (GmbH), the Japanese International Development Cooperation, and NUST staff.


LOGISTICS

THE EVOLUTION OF THE WALVIS BAY CORRIDOR GROUP

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fter Independence, the Port of Walvis Bay was converted from a fishing port to a commercial port. Cargo moving from the port along the corridors started from a zero base, as all the goods destined for Namibia was transported on road via South Africa. Founding members, Namport and TransNamib established the Walvis Bay Corridor Group as a promotion and business development arm to assist with creating awareness of the new route in the regional and global logistics arena. Developing corridor business Starting out, the Walvis Bay Corridor Group focused on marketing and promotion activities, it however soon became clear that continuous engagement in our neighbouring countries was needed to secure cargo to and from these markets. This led to the gradual introduction of the business development offices in four key markets. Although the cargo volumes were growing on the route, challenges experienced on the corridor were hindering repeat business. There arose a need to manage the identification of corridor constraints that were hindering the efficient movement of traffic and the implementation of agreed measures to address the constraints. It is this need that saw the Walvis Bay Corridor Group emerge as a Corridor Management Institution (CMI), whose purpose it is to promote and coordinate efficient corridor development and operations.

SINCE INCEPTION, THE ROLE OF THE WALVIS BAY CORRIDOR GROUP HAS BEEN TO GROW THE CARGO VOLUMES ON THE WALVIS BAY CORRIDORS. OVER THE PAST 18 YEARS, THE STRATEGY TO ACHIEVE THAT OBJECTIVE HAS EVOLVED TO ACCOMMODATE THE VARIOUS NEEDS THAT HAVE ARISEN. Assessments and studies were done to identify solutions and funding needed to be sourced to commence various projects that can address the concerns. This is when the WBCG moved into the sphere of Project Management to ensure the projects were carried out successfully.

together for a common objective and to the mutual benefit of the industry to ensure the development and maintenance of quality infrastructure and services along the corridor. Over time, more members from both the Public and Private sectors were added to ensure this objective was achieved.

Projects managed by the group include the wellness of the truckers and communities along the route as well as the development of industry and services on the corridors.

The Namibia Logistics Hub Initiative came about when the WBCG advocated for the development of the Logistics sector on behalf of industry to Government and saw the sector prioritised as a National Development goal, which was added to NDP4.

Cross border Harmonization Being transit corridors which link into two or more countries, the WBCG advocated for the establishment of trans-boundary Corridor Management Secretariats whose core function it is to regulate and oversee of the development and implementation of seamless cross-border trade, transport and passenger facilitation measures. These regional Corridor Facilitation Committees are established with the signing of Memoradum Of Understanding (MOU) between the involved countries. The first successful secretaiat established was the Trans Kalahari Corridor Secretariat (TKCS) in 2007. The WBCG is currently working on the establishment of the Walvis Bay-Ndola-Lubumbashi Development Corridor’s (WBNLDC) secretariat and the African Corridor Management Alliance’s (ACMA) secretariat. These secretariats have the end goal of reducing transport costs and transit times along the regional and continental transport corridors respectively. The triple Pin action Realising that a bigger challenge existed, the whole industry in Namibia needed to develop quickly in order to compete with the more established corridors in the region. The WBCG focused on getting stakeholders with varied and diverse interests to work

Technical assistance and funding was sourced to do studies and develop infrastructure and the capacity within the industry. This Project is managed by the Walvis Bay Corridor Group, proudly driven by the Namibian Private and Public stakeholders, with the support of regional, continental and international bodies. Moving forward Created as a service and facilitation centre to promote imports and exports via the Port of Walvis Bay for the SADC region, the WBCG has grown from strength to strength. Throughout the evolution of the WBCG the core mandate has remained the same – to grow the cargo volumes on the corridors. The Institution has had to readjust and add functions over the years to ensure that this core function can be successfully realised. Supporting this notion, WBCG’s Acting CEO, Mr. Clive Smith points out that the Transport and Logistics Industry poses multiple opportunities. “As we are about to conclude the second decade of facilitating and promoting transport and trade along our secure and reliable corridors, our quest to ultimately achieve a robust and lucrative economy continues.”

Construction & Mining Namibia, September 2018

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ENERGY

Bright prospects for solar power finance

D

evelopment Bank of Namibia Head of Marketing and Corporate Communication, Jerome Mutumba, on solar power finance for enterprise Privately owned renewable energy generation facilities can secure and enhance Namibian enterprise activity, says Development Bank of Namibia (DBN) Head of Marketing and Corporate Communications, Jerome Mutumba. Currently, Namibia has a deficit in electricity generation capacity. In order to address the shortfall, new capacity is being developed, however until local generation is sufficient, Namibia will have to import electricity from other regional sources. Imports place Namibia at a disadvantage, as the country is dependent on pricing offered by exporters of power. Costs are subsequently passed on to users of electricity. In the case of enterprises, this drives up the cost of productivity. At the same time, if elements of exporters’ generation capacity fail, Namibia may become subject to load shedding.

Mutumba says that as the Southern African sub-continent industrialises, there will be a greater requirement for electricity. Although gas generation is being developed, it is not yet clear if the combined capacity of institutional generators of various forms of electricity will match demand. There may be lags in installing of capacity, delays in implementation of cross-border distribution agreements and, if the objectives of socio-economic development prove fruitful, further gaps in generation capacity may emerge, he cautions. Privately owned renewable sources of electricity, says Mutumba, offer enterprises cost control as well as a buffer against shortfalls. Mutumba points to the Bank’s finance for SunEQ as a good example of privately owned electricity generation supporting industry. Financed by DBN, the 5MW solar plant was established by a consortium of private companies to provide power to Ohorongo Cement, a major user of electricity. Based on sustainability of Ohorongo, and its power requirements, the Development Bank was able to provide

the majority of finance for SunEQ with the knowledge that the solar plant will be viable. The new source of power gives both Ohorongo Cement and SunEQ greater control of costs in terms of the agreement signed between the two companies, and Ohorongo Cement has a greater measure of security in sustainability of its production. Predictable costing, and associated cost containment, make the beneficiaries of solar energy more competitive and efficient, he adds. Mutumba goes on to say that the vision of privately owned solar generation is not restricted to heavy industrial users. A significant number of commercial properties and private entities, including retail facilities, are increasing their use of solar power. An enterprise that operates offices from a purpose built office or a residence converted to an office can also improve its cost efficiency with solar panels. Asked about DBN finance for smaller enterprises, Mutumba says it is well within the mandate of the Bank to provide finance, even for SMEs. Enterprise finance typically measures profitability on the basis of revenues generated from business activities, however DBN considers cost efficiency as an important contributor to the bottom line. Subject to the value of savings on electricity, as well as the financial sustainability of the enterprise, the Bank has the ability to provide finance for solar power to all sizes of enterprises, ranging from SMEs to heavy industrial users such as mines and manufacturers. The same, he says, holds true for parastatals and government users. Solar power, Mutumba says, is a resource which is beginning to make an impact in Namibia, however it is still nascent and has yet to come of age. DBN will light the way.

A sunny disposition for solar finance. Development Bank of Namibia Head of Marketing and Corporate Communication, Jerome Mutumba, says that the Bank will consider finance for solar power for enterprises ranging from SMEs to heavy industrial users of electricity.

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Construction & Mining Namibia, September 2018

He urges enterprises to contact the Bank with applications for finance and concludes by saying that applicants will find that the Bank has a sunny disposition in this regard.


MINING

Finance for affordable land and housing Development Bank of Namibia provides a comprehensive range of flexible, tailored financing products for the construction industry and local authorities. Term loans Installment sales agreements Property development finance Contract (tender) based finance PPP financing arrangements Performance guarantees Visit www.dbn.com.na or call 061 290 8000 for more information. We’re waiting to hear from you.

Expect more.

AfriTin remains focused on Uis development

A

im-listed AfriTin Mining remains focused on producing the first tin concentrate at its Uis mine in the second half of this year.

The directors believe the cash flows and testwork conducted over the course of this development will allow the company to construct a significant knowledge base to advance towards a bankable feasibility study.

CEO Anthony Viljoen noted in a statement that there are many initiatives the company plans to complete at the mine in the short to medium term.

“From there, we will look to expand the plant production of up to 5 000 t/y of tin concentrate.

“We will continue the upgrading of the current pilot plant operation into a producer of 65 t/m of tin concentrate.

“In addition to this, once initial production at the Uis pilot plant commences, the

board’s intention is to gain a more detailed understanding of the Uis orebody through a detailed exploration programme and thereafter map out a long-term mine plan,” he added. AfriTin’s board believes the Uis mine has the resources to be a long-life operation.

Source: Mining Weekly

Construction & Mining Namibia, September 2018

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FINANCING

FNB and SME Compete make business dreams come true

E

rastus Amenya, based in Rosh Pinah, is one of numerous entrepreneurs who have routinely received business growth support from SMEs Compete and the FirstRand Namibia Foundation Trust. From humble beginnings as a vehicle washing business, Amenya has grown his firm, Ondje Trading Enterprises cc, into a significant employer in that southern mining town and today has a staff complement of 24 employees. Over the past decade, Amenya has diversified his operations. Not only does he clean vehicles and mining equipment, including conveyor belts on-site at Skorpion Zinc Mine, but also operates a laundry, provides transport service, manages waste water, runs a car wash facility in the town’s centre, a fish shop in the high-density suburb of Tutungeni, develops and manages property and even has a farming operation in the northern town of Omuthiya. Erastus says: “None of this would have been possible without the unwavering support of my banker. FNB Namibia has stood by me through thick and thin, and the routine mentorship and guidance I regularly receive from SMEs Compete has also helped.” Asked about his management style, Amenya says he emulates his role model, Namibian

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business icon, Aupa Frans Indongo. “When it comes to growth and diversification, I work alongside my staff, keep my eye on the ball at all times, and maintain a solid working relationship with my bank and suppliers,” he adds: “When I don’t know, I ask, and I listen to the advice of SMEs Compete, as they just like FNB, are always there for me.” FNB Namibia established an SME Business Unit in 2005 to specifically service the needs of budding and novice entrepreneurs and added tailored products and services over the years to meet the needs of Namibia’s small and medium enterprise sector. The bank, through its FirstRand Namibia Foundation Trust, further decided to support SME sector development programmes of many organisations, tertiary educational institutions, governmental departments and non-governmental organisations (NGOs) that nurture entrepreneurship and foster an enterprise culture among young Namibians. One of the organisations the FirstRand Namibia Foundation Trust works with is SMEs Compete. Founded by Claudine Mouton, Collin Gaochab Kakuva and Danny Meyer under a partnership arrangement, FirstRand Namibia Foundation Trust and the German Development Service DED now part of

Construction & Mining Namibia, September 2018

GIZ, SMEs Compete provides an array of business growth support services to SMEs across Namibia. This includes mentorship, skills development, book-keeping and administration system development and implementation, status regularisation and compliance assistance, as well as marketing support among others. “Although other corporate firms and development institutions fund business and job creation programmes of SMEs Compete, the FirstRand Namibia Foundation Trust remains a key supporter,” says SMEs Compete’s Claudine Mouton.

adds Mouton, referring to the bank’s SME Special Fund. With FirstRand Namibia Foundation Trust’s backing, SMEs Compete supports hundreds of other entrepreneurs like Erastus Amenya across the country. The number of SMEs helped with the FirstRand Namibia Foundation Trust over the past decade tops the 2 000 mark.


PAINTS & FINISHES

PAINT IT BLACK

like ours? The striking effect of a black building could be visually pleasing, but if it does not trigger something in the viewer he or she can relate to on a positive level, something is very wrong and not in harmony with human nature.

“I want to see it painted, painted black Black as night, black as coal I want to see the sun blotted out from the sky I want to see it painted, painted, painted, painted black ...” KEITH RICHARDS and MICK JAGGER of THE ROLLING STONES

W

hat is behind the worldwide trend to paint buildings black? The colour black has been used in arts and architecture from the earliest times. Since the establishment of Modernism, Bauhaus and De Stijl during the 1920’s, the use of black became quite popular in architecture. Black was used to accompany white surfaces of building walls on smaller elements like window frames, balustrades and structural beams. The significance of black in architecture increased again during the 1980’s (High-Tech Style), through the 1990’s (use of achromatic colours to portray minimalism), and has become the colour of the current era (creation, power, money). The only difference is that nowadays black has taken the place of white as the main colour, covering large surfaces of Avant-garde Architecture on its own. In using black, architects can achieve the effect of a sculpture-like appearance for their buildings. The reason for this is that black, like no other colour, intensifies the graphic effect a building has. Its darkness creates a perception of weight and seriousness, giving it visual strength. For it to be a success, the architecture needs to be of a simple, striking form without much detail, and with the focus on the functionality of the building. This results in a pure and elegant building with dignity and authority, drawing all attention to it. Not melting into its environment, it would thus isolate and distance itself from it, proclaiming: “Here I am, take a look at me - take me or leave me.” In this manner, it could even give the impression of inaccessibility. Absorbing all energies around it, uncompromising black can become very powerful and its intense energy quite intimidating, even making it unapproachable.

The answer to the question, why this controversial ‘colour’ is trending at all, is that black is the favourite element to use during periods of extreme change and trauma. In the scientific world black, white and grey are called “non-colours”, because they do not contain any colour pigments as such, therefore representing the extreme. With terrorism and the refugee crisis not being under control, with the huge gap between rich and poor all over the world, there are major social issues and unrest at present, like in the 1970s. People are forced to deal with their insecurities, but still want to live a peaceful life while having fun; they want to express themselves in a bold and daring manner to counterbalance the stress. This clash between extreme opposites, a sure sign of our times, is a huge aesthetic preference in the design- and architectural world, and will continue for the years to come. It manifests itself in the use of contrasting materials and colours, especially dark and light, with the biggest possible contrast reached in the combination of black (absorption of all light) and white (reflection of all light). In sticking to a black and white colour scheme, one emphasizes the crisis situation the world is in, reminding viewers of it all the time. However, that is only one side of life. Life actually happens within all the colour nuances of the rainbow between black (the end) and white (the beginning). In adding a bit of colour, even if the contrast between light and dark is still used, one can obtain a shift in the thought pattern and general wellbeing of people. In this manner it would aid the process of dealing with the current situation and finding a way out of it faster. Especially in Namibia we should consider that natural colours blend in more with the African landscape, making a building more userfriendly and acceptable to the public. One should ask yourself, whether it is at all wise to follow the trend towards black in a country

As the absence of all light, and therefore the absence of all colour, black is darkness at its maximum level. The resulting effect black has can be funereal, reminding people on a sub-conscious level of certain unwanted situations, like death, depression, darkness, etc. On a physical level one should take into consideration that black colours absorb 70% to 90% of the radiant energy from the sun that strikes the surface, because it does not reflect any infrared rays. A dark building therefore heats up much more than one kept in light colours, requiring more precious, expensive energy to keep it cool inside. In overseas countries they have developed special paint products with metal oxides in them for dark colours. The metal oxides reflect most of the infrared rays from the sun, resulting in a cooler building atmosphere. Especially in a warm country like Namibia, such products would help in making black ‘green’, should the use of darker colours on buildings continue. Black is a controversial colour with many, often ambivalent meanings (too many to name here). That it has a strong effect on people, whether positive or negative, is certain. However, the final effect any colour has will always depend on the intensity of the colour, the size of the surface it is used on, the surrounding reflections and the function it is to portray. The context a colour is used in is the main factor, determining whether the use of a certain colour and/or colour combination is a success on both a physical and psychological level. Although architects, designers, as a matter of fact all of us, are prisoners of the Zeitgeist on a sub-conscious level, we should be very conscious when designing with black. Especially where the public is involved, more of the trending colours could be used in combination with black to soften its effect and make it more agreeable with human nature. Perhaps then, black magic can do its thing!

Construction & Mining Namibia, September 2018

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ARCHITECTURE

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Construction & Mining Namibia, September 2018


INFRASTRUCTURE

Windhoek building plans continue to decline

A total of 269 building plans were approved by the City of Windhoek in August, decreasing by 2.5% m/m but increasing by 56.4% y/y. In value terms, however, approvals increased by N$208.8 million to N$423.5 million, a 264.4% m/m and 97.3% y/y increase. A total of 269 completions to the value of N$94.9 million were recorded in August, a 3.5% y/y increase in number and 21.7% up y/y in value. The year-to-date value of approved building plans reached N$1.43 billion, 16.5% lower than the comparative period a year ago. On a twelve-month cumulative basis, 2,212 building plans were approved worth approximately N$1.91 billion, 16.4% lower in value terms than approvals as at the end of August 2017.

T

he majority of the number of building plan approvals were made up of additions to properties. For the month of August, 213 additions were approved worth N$83.2 million, 14.1% less in value terms than in July, although the number of additions approved increased by 46.9% m/m and 43.9% y/y. Year-to-date, 1,128 additions have been approved, which is 120 more than in the corresponding period last year. In value terms, $704.3 million worth of additions have been approved year-to-date, a decrease of 6.0% y/y. New residential units were the second largest contributor to building plans approved, accounting for 47 of the total 269 approvals registered in August. Yearto-date, 364 new residential units have been approved, 168 more than during the corresponding period in 2017.

N$148 million. Year-to-date, 28 plans for commercial and industrial purposes have been approved which is one more than in the corresponding period in 2017. However, the year-to-date value of commercial and industrial approvals at N$290.7 million is 54.7% lower than in the corresponding period last year. This highlights the lack of commercial and industrial development in the first half of 2018. From a 12-month cumulative perspective, 2,212 total building plans have been approved by August, an increase of 19.5% y/y. In value terms however, approvals are down 16.4% y/y over the same period. The latest private sector credit extension data showed slowing growth in credit extended to corporates and individuals in July.

Mortgage loans extended to corporates contracted by 1.9% m/m in July, but rose by 1.0% m/m for individuals. Commercial banks currently enjoy a healthy monthly average liquidity position of N$4.8 billion, providing sufficient levels of loanable funds. Banks are, however, currently weary of the construction industry as the balance sheets of many of the companies are stretched. Low consumer and business confidence, coupled with an increasing likelihood of interest rate hikes over the next 24 months, means that the credit appetite of both individuals and corporates is currently low and that no significant improvement in the approvals and completions numbers are expected in the short term.

In monetary terms, N$435.4 million worth of residential plans have been approved year-to-date, an expansion of 34.8% when compared to the corresponding period last year. Commercial and industrial building plans approved amounted to 9 units, worth N$247.8 million for August. The largest single commercial building plan approval of the month amounted to Construction & Mining Namibia, September 2018

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POLICY

Ministry of Mines and energy Licenses, Rights and Permit Applications Guidelines and Assessment Procedures

1. Petroleum Licenses 1.1. Petroleum Upstream Licenses 1.1.1. Why should you apply for an upstream petroleum license? Application for upstream Licenses enables one to be granted petroleum exploration and production rights. Companies who are granted these Licenses can be able to explore for oil and gas both onshore and offshore Namibia, therefore having chances of making a commercial discovering over Namibia’s highly potential sedimentary basins. 1.1.2. Types of Petroleum upstream license (a) Reconnaissance Licenses A reconnaissance license authorizes the holder of such license to carry on reconnaissance operations subject to terms and conditions as stipulated under Section 22-28 of the Petroleum Exploration and Production Act, 1991. A reconnaissance license is non-exclusive. (b) Exploration License An exploration license authorizes the holder of such license to carry on exploration operations exclusively in the block(s) to which it relates subject to the terms and conditions and in the block(s) as may be specified in such license as stipulated under Section 29-38 of the Petroleum (Exploration and Production) Act, 1991. (c) Production License A production license authorizes the holder of such License to exclusively: • Carry on production operations on the block(s) to which that License relates; sell or dispose of petroleum recovered within such block(s) and any other activities as stipulated under subsections 3943 of the Petroleum (Exploration and Production) Act, 1991. 1.1.3. How to apply for Petroleum Upstream Licenses There are no prescribed application forms to be completed when applying for petroleum upstream licenses. The applications are to be compiled in accordance with the following guidelines: (a) Applications for a reconnaissance license An application for a reconnaissance license shall in accordance with the stipulation of the Petroleum (Exploration and Production) Act, 1991 Section 24 (b) Applications for an exploration license An application for an exploration License shall be in accordance with the stipulations of the Petroleum (Exploration and Production) Act, 199 Section 38. (c) Application for a production license A production license shall be applied for in accordance with stipulation the Petroleum Exploration and Production Act, 1991 Section 46 1.1.4. What happens to the application once lodged? Once submitted, the applications undergo the evaluation process as described below. Evaluation of Applications (a) An Inter-Ministerial Government Negotiating Team (GNT), chaired by the Ministry of Mines and Energy, will evaluate each application, taking mainly into consideration the following aspects: • The technical and financial capabilities of the applicant for ensuring sate exploration and production of petroleum in Namibia. • The applicant’s willingness to perform a complete evaluation of and the cost-effective petroleum potential in the license area within an agreed time frame. This would include the proposed minimum work programme and expenditure; • the economic terms offered in accordance with the bid requirements b) After having evaluated the applications received, GNT will invite selected applicants to Windhoek. The invited applicants will then

18

Construction & Mining Namibia, September 2018

have the opportunity to present their application to the GNT, and negotiation of terms of the bid will be invited. (c) The Ministry of Mines and Energy reserves the right to accept or reject any application without any obligation to give any reasons or to otherwise justify its decision. More information can be found in petroleum Exploration and Production Act, 1991 (Act 2of 1991) Note: The Namibian Government uses Open Licensing System 1.1.5, When do I expect to receive feedback on my application? The Ministry will respond to your application within 3 months of receipt. 1.1.6, Fees payable in respect of application for, and renewal of, licenses, and for inspection of, or obtaining of copies of entries in, the register (Sections 11, 15 and 77) Nature of application Amount fee Application for reconnaissance license N$ 15000 Application for renewal of reconnaissance license N$ 3 000 Application for exploration license N$ 30 000 Application for renewal of exploration license N$ 15 000 Application for production license N$ 30 000 Application for renewal of production license N$ 15 000 Application for transfer of reconnaissance license N$30 000 Application for transfer of exploration license N$ 30 000 Application for transfer of production license N$ 30 000 Inspection of register N$ 300 Obtaining copy of entry in register, per copy N$ 150 1.1.7. What can I do if my application has been unsuccessful? The applicant may submit an appeal to the Minister, to reconsider the decision, provided that they have met the evaluation criteria and have submitted all the necessary documentation. 1.2. Downstream Petroleum Licenses 1.2.1. Why should you apply for a downstream petroleum license? A downstream petroleum license permits a person to conduct activities and business in the industry of petroleum products. Companies and individuals who are granted these licenses can be able to import, distribute, store, sell or export petroleum products, depending on the type of license. 1.2.2. Types of Downstream Licenses [A] Wholesale license A wholesale sale is the sale of petrol or diesel in bulk quantities and a bulk quantity is a single quantity of 200 liters or more. A wholesale license allows a person to import, distribute or export petrol or diesel in bulk quantities. Please note: An import permit is issued by the Ministry of Trade and Industry to wholesale license holders. However, it is only where the Ministry of Mines and Energy approves the import. For more details, refer to Sections 11-15 of the Petroleum Products Regulations of 2000. (b) Retail License In terms of the Petroleum Products Regulations, 2000, nobody may operate a retail outlet unless such person has a retail license. A retail outlet is a place from where petrol or diesel is sold or is offered for sale to consumer the public for purposes of use or consumption. For more details, refer Sections 4-10 of the Petroleum Products regulations of 2000. (c) Consumer Installation Certificate A person to have in possession more than 200 liters of petrol or diesel an urban area or more than 600 liters of petrol or diesel in a rural area shall apply for Consumer Installation Certificate. A consumer installation is a petrol or diesel installation (above ground


POLICY or underground), including any pump, storage tank and piping used in relation thereto, for the purpose of dispensing fuel into own or hired petrol or diesel consuming equipment. You are required to apply for the consumer installation certificate for any of the following activities 1. A commercial or industrial undertaking (For example a transport business, a construction business, or any other business which relates to business or commerce 2. A farm where you are a legitimate farmer; and 3. A mining business. For more details, refer to Sections 16-24 of the Petroleum Products regulations of 2000 1.2.3. How to apply for a wholesale license, retail license and consumer Installation certificate (a) Wholesale license An application is lodged by submitting a completed PP/3 application form. A wholesale license shall be applied for in accordance with stipulation of the Petroleum Products Regulation, 2000 Section 11-15. (b) Retail license An application is lodged by submitting a completed PP/1 application form. A retail license shall be applied for in accordance with stipulation of the Petroleum Products Regulation, 2000 Section 4-10. (c) Consumer installation An application is lodged by submitting a completed PP/5 application form. A wholesale license shall be applied for in accordance with stipulation of the Petroleum Products Regulation, 2000 Section 16-24 1.2.4. What happens to the downstream petroleum License applications once lodged? Once submitted, the applications undergo the evaluation process as described below (a) Each application is circulated and evaluated individually by Petroleum Inspectors for technical compliance and completeness. (b) A license evaluation committee will then table and evaluate each application, taking mainly into consideration, amongst others, the following aspects: • the technical and environmental compliance to the minimum industry standards and environmental laws • the issue of vertical integration • economic viability in terms of retail licenses • the suitability of any storage facilities proposed in terms of minimum standards • the shareholding of the applicant company and nationality of its directors • any other matter relevant to the orderly provision of petroleum products in Namibia 1.2.5. Specific criteria for evaluation of downstream license applications Wholesale License Retail license An application wills an application Be awarded in will be Accordance to the awarded in Stipulations accordance to Petroleum Products the stipulations Regulation, 2000 Petroleum Section 13 Products Regulations 2000 Section 6

Consumer Installation an application will be awarded in accordance to the stipulations Petroleum Products Regulation, 2000 Section 20

1.2.6. When do I expect to receive feedback on my application? The Ministry will respond to your application within 1 month of receipt of the application 1.2.7. Information to be given to the minister on a yearly basis (by 8 February) for the purpose of forecasting, statistical analysis and policymaking. [15:49, 9/25/2018]

WHOLESALE LICENCE 1. The total quantity petroleum products imported and exported 2. In the case of petroleum product imports, the source from where those products were obtained (the name of the seller), and in the case of petroleum product exports, the name of the export customer and the country of destination 3. All ports of entry into and exit out of Namibia 4, the cost, insurance and freight (CIIF) price of petroleum products 5. A list of all storage facilities used, 6. Retail outlets and consumer installations which you supplied 7. Any other person than a person mentioned above to whom any petroleum product wars supplied 8. Any change of the information required when you applied a license RETAIL LICENCE (a) Confirmation that the retail outlet is still in operation and that for no continuous period of more than three months in the preceding year or portion of a year the business of retail sales from the licensed premises was not conducted; (b) Any change of the information requested in terms of regulation 4 and Form PP/1 as set out in Annexure B, with regard to which change it is not necessary to apply for an amendment of the retail license; and (c) The total throughput of petroleum products (specified by product) CONSUMER INSTALLATION (a) Any information the Minister may request regarding a dangerous situation and remedial measures taken in respect thereof; (b) Any information the Minister may request regarding the site where a consumer installation is being operated by the certificateholder; (e) Any information the Minister may request in order to enable the Minister effectively exercise his or her powers under these Regulations; (d ) Confirmation that the consumer installation concerned is still in operation and, in the case of a petrol consumer installation, that for no continuous period of more than three months in the preceding year was the throughput less than 10 000 liters a month. 1.2.8. Application for a license can be disqualified based on the following conditions. A license will not be issued to a new applicant, nor may a new applicant hold a license, if such an applicant: (a) Has during the five years preceding the application for the license been convicted of an offence under the Act, or is so convicted during the currency of the license (B) is not a Namibian citizen or is not lawfully resident in Namibia, or loses Namibian citizenship or the right to be lawfully resident in Namibia; (C) is a body corporate, and is not registered in Namibia or if its registration in Namibia has been cancelled; (d) Is or becomes an un-rehabilitated insolvent (e) Is or becomes subject to an order of competent court declaring such a person to be mentally ill or disordered (mad). 1.2.9. Fees Wholesale Retail license Consumer Installation Application fee N$100 Application fee N$100 Application fee N$100 Collection fee N$250 Collection fee N$250 Collection fee N$250 1.2.10. What can I do if my application has been unsuccessful? The application may submit an appeal to the Minister, to reconsider the decision, provided that met the evaluation criteria, and have submitted all the necessary documentation.

Construction & Mining Namibia, September 2018

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ARCHITECTURE ARCHITECTURE

The ‘enabling framework’ – a possible way forward to kick start the building industry by spreading the load

B

y now it is quite clear to everyone that we are currently locked in an extreme economic crisis and there is still no light at the end of the tunnel. We need to cope with high levels of poverty, youth unemployment, inequality and housing shortages, with the building industry suffering the most.

other building components or extended at a later stage. Below is a practical example in comparison with the current solution as propagated by government and dictated by current

Ambitious proposals such as the Harambee Prosperity Plan, NEEEF, standard housing provision and other initiatives are but sand castles on the beach near the waves. Discussed here is a possible solution towards alleviating some of the issues at hand, by believing in the abilities of the population to help itself if only it were given an ‘enabling framework’ in which it can do so, instead of relying on government to solve the problem.

3.

4.

5.

This would not only make the biggest impact on the wellbeing of the population but also the building industry at large as now more people would build more houses for themselves to their own specifications, needs and abilities than a building industry that delivers standardized products to but a few at a high cost. Much of this proposal relies heavily on current townplanning rules and regulations being adjusted to modern internationally approved townplanning practice. Essential components or criteria for an enabling framework are: 1.

A changeable and adaptable house plan and erf size that can cater for the growing family. I.e. the house should be built in such a manner that rooms can be added or uses changed as the family grows, or when the kids have grown up and left the nest. The property and building should allow and facilitate an added income creation. I.e. mixed use development. Reduction of dependence on formal employment elsewhere, but rather work and employment creation at home Safe environment in which families can develop and grow. Affordability through wealth creation instead of single use restriction such as residential zoning. Healthy and conducive environment. Availability and affordability of standardized structural building components that can be added onto with

2. 3. 4. 5. 6. 7.

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Construction Namibia June - July 2017

2.

townplanning schemes.

Current situation: One possible solution:

In the above drawing, the same 300m2 area street corner plot is used and subdivided into 3 equal erven of 100m2 each. Below shows the distribution of further areas. 1.

Each 100m2 area receives a rear building line of 4m or 3m, mainly for ventilation purposes. Building footprint area on

Construction & Mining Namibia, September 2018

Ground Floor = 68m2 The second floor of each house extends over the pavement area to create on the one hand a covered walkway for pedestrians, i.e. the public, and on the other hand increased the usable area to 100m2. This area could be rented out as office space or as a flat. The third floor could be the own 2-bedroom dwelling and would also be 100m2. Both floors can receive various sized balcony areas. The corner unit could utilize the corner options to its maximum potential, e.g. corner shop, side windows, smaller rear boundary lines, corner tower features, etc. The roof could be a flat concrete roof surface that can be utilized for recreational


ARCHITECTURE ARCHITECTURE purposes or a garden area for vegetable planting etc. In terms of constructing these units, the idea is that the individual is able to purchase standardized prefabricated structural grid related components such as concrete or steel columns, lightweight slabs, foundations and stairs, to fit together like a LEGO set.

• •

garden. Automatic densification including all the environmental benefits – shorter service routs per erf, more land available for more people, less urban sprawl, a safer urban environment, less roads. No negative stigma of having to live in a flat as there is ownership of the entire property from the ground floor up. No levies on sectional title.

Obvious preconditions for this proposal to become a real success are: • • •

• These could be extended and filled in as the individual can afford it and at his/ her own time. International examples in countries such as Vietnam, South America and Mexico have proven that people are happier and get far more innovative in developing their own living spaces than if prescribed to in completed housing settlements. The single most important concern usually raised is about its affordability for the urban poor who earn between N$2000.00 and N$5000.00 per month. Well, the same concern could be raised about how that person is going to afford the NHE house on a 300m2 plot. The difference is the following:

• •

NHE / 300m2 erf: • •

• • • • • •

Land cost: +N$300 000.0 + House: +N$500 000.00 = +N$ 800 000,00 + other costs Zoned for residential purpose only – unless rezoned to business, no additional income is permitted here as seen in latest report on shacks being added to new housing in Keetmanshoop (New Era, 28 June 2017, Shacks proliferate among Keetmanshoop mass houses) Mortgage repayment over 25 years and possible still not full ownership of the property. Additional expenses for taxi/ bus fares, high boundary walls and additional security measures, etc. Repayment of mortgage depends on job security – job loss equals property loss. Children grow up without their parents as they are at work, struggling to make a living and meet the mortgage repayments. No additional employment creation on the property. More land required for less people, more roads and longer service lines.- larger burdon on local authority coffers

There must be title-deed ownership on the property otherwise the bank will not finance it. Banks need to be willing to buy in on the idea, i.e. be open to the business plans of the owners. The minimum erf size of 300m2 must be revised. The proposal also works for 150m2 or 200m2 and anywhere inbetween, but not less than 100m2. Townplanning regulations such as building lines, coverage, bulk, required parking spaces per m2 and zoning need to be revised New regulations needed on polluting, noxious, noise and undesirable activities needed to replace single use zoning laws. This idea can only work in specific areas and mainly along activity routes. It is in any case more desirable to have a healthy user mix, i.e. high and low density residential erven mixed in-between the mixed-use areas. The buyers of these properties should be young and entrepreneurs. They need to want to earn their own living and be enthusiastic in what they are doing. A comprehensive and overall urban design plan is needed that includes public open spaces, movement route planning for bicycles and pedestrians and urban green areas. It should direct and facilitate instead of restrict from top-down control and regulation.

Proposed solution: • • • • • • • • • • •

Land cost: + N$100 000.00 + House: +N$ 1 000 000.00 = +N$ 1 100 000.00 + other costs (investment over time as means allow) Zoned ‘mixed use’ (no such zoning category exists in this country yet) Mortgage repayment within 15 years = faster repayment = property continues to make a profit even after mortgage is paid off= wealth creation Income tax benefits and investment write-offs, possible SME financing models for portions of the building e.g. Ground and first floor, housing subsidy on third floor and roof. Job security because property owner is his own boss Owner can conduct his own business or rent out the business premises and still go about his fixed job elsewhere = double income. Covered walkway/ pavement = added comfort to the public = protection from sun and rain Safety and security = living above the street, no high security walls or dark side allies to hide criminals. Children come home after school to meet their parents at work at home. Possibility of employment creation on the premises to assist in the work. Still enjoy the benefits of safe open spaces for children to play in back yard or on the roof

Winfried Holze Architect and Urban Designer

Construction Namibia June - July 2017

Construction & Mining Namibia, September 2018

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21


CONSTRUCTION

Strategies to Build a Strong Construction Team

B

uilding a high performing construction team takes careful thought and strategizing. In addition to hiring talented construction professionals, you need to train each team member to have the right combination of skills so that they are performing at their best.

When stress is not managed properly, team members will be more likely to make risky mistakes.

This includes developing their ability to collaborate, concentrate, and manage their stress. You also need systems in place to reinforce trust, productivity and efficiency.

There are online training programs out there, such as the one recently launched by Building Site to Boardroom, that educates construction workers on how their emotional well-being affects their work performance. They will be able to follow directions better and stay in the moment - greatly improving your team’s safety.

Safety: Stress Management and Mindfulness Construction work is often mentally and physically stressful. Not only will your team have to deal with safety and health concerns not found in most other careers, but construction workers can have little control over their schedule. The work itself is also physically demanding. When building a strong construction team, stress management needs to be one of the focuses of your strategy.

More construction firms are focusing their training on mindfulness. Usually when accidents or mistakes happen, the person’s mind is distracted.You want your team to be able to stay focused on the task at hand for maximum safety and productivity.

Productivity: Collaboration and Teamwork Building a team that works well together begins in the hiring phase. You want to consider a candidate’s interpersonal skills before hiring them. If they come across as arrogant, distant or stubborn, these are red flags. Instead, look for candidates who are eager to work in a team environment.

Team-building exercises are also helpful. Such exercises help to establish trust within the team, while also demonstrating what a successful team dynamic actually looks like. You want the team to be able to learn from each other, lean on each other, and bounce ideas off each other. Because the work can be hazardous, trust is also extremely important. The talent needs to feel confident that their team members have their back. Skills: Continued Education and Training The technology and skills used in construction work are constantly evolving. This is why continual training is important. The more skills and knowledge that your team members have, the smarter and more efficiently they will be able to work. You must first understand what your business needs are, so you can choose training resources that will accomplish your objectives. Once you have this understanding, you will be able to choose the combination of compliance training and non-compliance training strategies that will optimize your team. eLearning makes training a lot easier. Rather than devoting a day to training and interrupting the work flow, it can be better to train on the job. For example, you can stream a demonstration and then have your team immediately apply the skills they learned on the job. Keep in mind that training only works if you have a way to measure its effectiveness. You want each team member to be able to see what skills they have mastered and what skills they still need to improve. The best way to build a strong, competent team is to have systems set in place to train new members while allowing veteran team members to continually develop their skills. You also need systems in place to reinforce safety, trust, and cooperation. The better your team can work together, the more productive they will be.

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Construction & Mining Namibia, September 2018


ARCHITECTURE

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Construction & Mining Namibia, September 2018


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