Infrastructure Projects - CRSA

CONSTRUCTION SA MAGAZINE

Mar/Apr 2023

www.constructionrsa.co.za

CONSTRUCTION S A M AG A Z I N E

Building South Africa Economy through partnerships

Vo l 1 / I s s u e 6

THE MAGAZINE FOR EXECUTIVES AND MANAGERS ISSUE 6

March 2023

CRSA

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INSIGHT 4

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MINMEC Introducing new housing developments in KwaZulu Natal.

Minister and MECs

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WaterFall LifeStyle Launch Launch of Munyaka waterfall lifestyle appartment in Midrand.

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Thato Mokhothu Women in Construction Celebrating International Women’s Month

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Builders Launch Pro Benefit programme for businesses in the built in space, property and construction.

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RAL(Road Agency Limpopo Development of new roads in Limpopo. Reviving older road, fixing potholes for motor use provincially.

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RAL sign MoU

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MoU signed with 8 Municipalities cross the province for better road management.

Cosentino launches dekton TA Leader in producing and distributing innovatiove and sustainable surfaces in the property management.

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Property Investment Trends and analyses that evolves through the market

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Gqeberha Beneficiaries Building and providing new build houses for people in the Eastern Cape

Construction SA Magazine• March 2023

Construction SA Magazine All your construction & infrastructure related projects for executives and managers Publisher: TIT COMMUNICATIONS TITCOMS Information Technologies 245 Basden Avenue, 137 Valencia, Lyttleton, Die Hoewel www.constructionrsa.co.za Managing Editor Paul Mabusa Paul@construc�onrsa.co.za 0835675037

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Backrooms rentals Economic impact of township backrooms that is recently booming

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SA Library Week One recently developed library that embodies Paterson and Recreation facility implemented.

Pic n Pay

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FNB Comm. Property Commercial property brought to you by First National bank

Logistics warehouse As economy grows so is the need for more logistics warehouses across the country.

Operational Excelllence Why operational excellence is frowned upon.

Build a new distribution centre.

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News Editor Ruth Jackson editor@construc�onrsa.co.za

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OR Tambo International

Contributors Government Departnments Private Sector Individual Journalists Marketing Tshepang Mokoena marke�ng@construc�onrsa.co.za Graphic Design TITCOMS Events / Bookings / Sales Paul Mabusa Bookings@construc�onrsa.co.za Contacts Office 0823082832 construc�onSAmag@gmail.com

Special economic Zone

TITC MS Information Technology

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Infrastructure Development Program

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Construction SA Magazine• March 2023

MINISTER KUBAYI AND MECS DELIBERATE ON A PLAN TO INTRODUCE NEW AND IMPROVED FULLY SUBSIDIZED GOVERNMENT HOUSES

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lans are under way to introdu ce new and im proved govern ment-subsidis ed homes with enhanced features including roo�op solar panels, bugler proofs for vulnerable groups, and water and sanita�on systems that respond to water shortages affec�ng the country.

There is also a discussion that the size of BNG house needs to be reviewed from 40 square meters to 45 square meters.

These were some of the key items discussed at a mee�ng recently convened in Durban by the Minister of Human Se�lements Mmamoloko Kubayi, together with Deputy Minister Pam Tshwete and a�ended by Members of the Execu�ve Commi�ees, Mayoral Commi�ees and responsible for Human Se�lements, as well as representa�ves of the South African Local Government Associa�on, amongst others.

Construction SA Magazine• March 202

The revised specifica�ons of a fully subsidized government house are aimed at improving the quality of household life, while contribu�ng to the economy. In his State of the Na�on Address, President Cyril Ramaphosa pronounced that the government was forging ahead with the rollout of solar panels to address load shedding. It is therefore expected that the new elements such as solar panels for BNG houses will result in economic opportuni�es, job crea�on, and skills transfer par�cularly, for youth, women, people with disabili�es and military veterans.

Thus, MINMEC directed officials to work with all affected structures including the Department of Mineral Resources and Energy (DMRE), par�cularly on solar panels, to finalise specifica�ons including detailed financial implica�ons of the proposed changes. This will enable the implementa�on of the improved housing units as soon as possible.

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Quality Housing Projects - KZN

MINMEC also received progress reports on grants performance for the third quarter of the current financial year and considered the overall performance of the sector, with a commitment to urgently make necessary interven�ons that would ensure all targets are met and on �me. This included a focus on “missing middle interven�ons to enable affordable first-�me home ownership, alongside emergency housing interven�ons for affected provinces namely, KwaZulu Natal, Eastern Cape, Gauteng, Western Cape, North West, Mpumalanga, and Limpopo.

Prior to the MINMEC mee�ng Minister and MECs visited several sites that are being used to accommodate flood vic�ms. They were informed that KwaZulu-Natal Province has assisted all 2022 flood vic�ms through the construc�on of 1755 Temporary Housing Units and the implementa�on of the Rental Assistance Scheme and Transi�onal Emergency Housing.

The province is also well underway to find a permanent housing solu�on for the affected vic�ms. The housing project to accommodate flood vic�ms is expected to commence in June 2023.

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“Since last year, we have learned many lessons and we are seeing progress. We have accommodated affected households from dehumanizing halls to be�er accommoda�on facili�es. Families now enjoy privacy. We have since started focusing on long-term interven�ons”, said Minister Kubayi.

Minister Kubayi emphasised the importance of all spheres of government and all affected stakeholders to con�nuously work as a team to accelerate the delivery of sustainable human se�lements. She however raised concerns about the resources which are o�en diverted to provide security as opposed to building houses.

“I want to appeal to communi�es to understand that these projects belong to them and are meant to respond to their housing needs.

Invasion of projects and stopping them does not help. This delays progress and ul�mately prolongs the �me of people living in temporary shelters”, said Minister Kubayi.

Construction SA Magazine • March 2023

Housing Projects - kzn

Construction SA Magazine • March 2023

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Quality housing projects - KZN

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Construction SA Magazine• March 2023

Housing Projects - kzn

In her interview, the minister said, people were moved interms of 2010 world cup building of the stadiums, part of the issues that were raised when she came to the po�olio was that there has been people sea�ng in Lindela transit capms having waited for years for their alloca�on and to be moved accordingly.

We started having an engagement with the province to push for the fast-tracking of the implementa�on and resolu�on so that those people can move out of those transit camps.

I think its good to show case what we are doing as human se�lement, because many people see that and raise concesus about lack of progress and slow pace and this is one of the areas where start to push interms of interest.

I just want to appeal to South Africans to understand that the work that we do is not for us, its for them. Now invaision of projects and stoping them doesn't help south Africans, taking over a project or a unit that does not belong to you, does not help us.

But the last point, we don't want to hear people selling this units, we don't want them to come here rent out here or we are going to demolish were they are, both municipality and the province have commi�ed, we don't want to see people double deeping course thats part of some of the problems we've have.

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Construction SA Magazine• March 2023

Housing Projects in KZN

Part of the what we agreed as MINMEC is that we going to visit provinces and see what is happening in therms of various work.

Our a�en�on in KZN is on disaster as you know that last year we had huge disaster and a lot of work. So there are lot of work and there lessons learned out of the process. An part of being here today is that one year down the line, people will ask what have you done as government - this is what we have done.

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Construction SA Magazine • March 2023

Msikaba River Bridge - Heading for comple�on in 2024 Construction SA Magazine • March 2023

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Construction SA Magazine • March 2023

Monyaka Lifestyle

Balwin Proper�es, SA’s specialist residen�al property developer, launched Munyaka, a R10bn lifestyle estate development at Waterfall City precinct in Midrand on Wednesday to meet demand for lock-up-and-go and secure living.

The company invested more than R100m in infrastructure in the node, including the upgrade of Mia Road.

Announced in 2020, Munyaka, comprising more than 5,000 apartments, will be completed in 2028. It is Balwin’s third development in Waterfall City.

President Cyril Ramaphosa at the Launch of MUNYAKA WATERFALL - Balwin Proper�es

Construction SA Magazine• March 2023

Woman in Construction

Thato Mokhothu

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Construction SA Magazine • March 2023

Woman in Construction

Women in Construc�on Thato Mokhothu What makes you choose the career in construc�on seeing that its a male dominant industry.

I love taking the lead in breaking into industries known to be male dominated. The fact that the environment is not ideal for women ignites a certain passion in me to find and/or create pla�orms for women. I believe in se�ng an example by first going out there to do the actual work, so that when I go on to inspire others or lead others I do so from lived experience and proven value to my work. I also believe that male dominated industries present the perfect opportunity for women to join and find a sweet spot for themselves. I believe my experience is meant to carve a way for women and youth to also tap into the industries.

What this month of March means to you and to other women who are in business.

The month of March brings us Interna�onal Women's day celebra�ons, which I believe present a perfect opportunity for women to collec�vely stand together and work together just a li�le harder to meet the #genderequity theme set by the United Na�ons. I believe every woman should look into ac�vely playing a posi�ve role or

contribu�on towards the en�re movement to posi�on women in key posi�ons - key posi�ons that see women’s par�cipa�on in South Africa’s mainstream economy. It also means a �me where women in privileged posi�ons or leadership, are meant to take an ac�ve step towards puling up more women, ac�vely li� up other women.

Young women need older women who are in the forefront to fight for themselves firstly, in order to pave an easier way for incoming genera�ons.

Yes, a good star�ng point is for women to ac�vely work together and to implement a strategy that will monitor the State’s compliance with the President’s 40% procurement alloca�on that is meant to reach women and to give them access to economic opportuni�es. I personally have not seen the 40%, I look forward to working with other women on ac�vely finding our 40% shares in all projects.

Construction SA Magazine• March 2023

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Self Awareness

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Self Awareness

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Builders Pro

Builders launches Builders PRO benefits programme to boost tradespeople's businesses

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ore South Africans are feeling the pinch of the rising cost of living, including the country’s small and medium-sized businesses. According to Business partners’ SME Index, unfavourable economic

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condi�ons, exacerbated by loadshedding, petrol price hikes, and COVID-19's lingering effects, contribute to low business confidence among the country’s SMEs. To help address these challenges, Builders, the leading home improvement, DIY, and building materials retailer, has

introduced the Builders PRO benefits programme to help tradespeople (plumbers, electricians, carpenters etc.) navigate the country’s increasingly challenging economic condi�ons.

Construction SA Magazine • March 2023

Construction Projects - Tools

The programme offers tradespeople savings-related benefits such as incredible deals, and personalised offers on DIY products and services, from construc�on to gardening and even maintenance projects, tailored to their businesses and, most importantly, their customers’ needs.

Builders PRO customers will be the first to know about new launches, have the op�on of a virtual or physical card and most importantly, get money back as a rebate on all cash purchases allowing them to save while ge�ng more work done.

• Stock category 2: Sand, stone, cement, concrete, steel and wooden trusses and truss covering, all non-stock buyouts, promo�on, services and deliveries paid for. Category 2 rebates will be 2% against the amount spent over 12 months.

These benefits will help more of the country’s small and mediumsized businesses overcome challenges such as cash flow, access to quality building and DIY solu�ons, and help tradesmen establish sustainable small businesses that can weather economic storms.

stretch their pockets and make the most out of their everyday purchases. We want to ensure that our essen�al tradespeople also benefit from these rewards as small businesses are responsible for the country's economic growth by contribu�ng to job crea�on that sustains many South African households."

The popularity of rewards programmes remains high among South Africans, who turn to them to help them navigate this challenging economic period and stretch their pockets.

The Builders Pro card en�tles cash trade customers to a rebate a�er spending R50 000 or more in cash excluding VAT, within a specified 12-month period determined upon signup. For example, if the period is 26 December 2022 to 31 December 2023, the rebate will be paid into the customer’s Builders Pro profile at the end of February 2023.

Tradesmen who spend over R50 000 within 12 months through the Builders PRO programme will qualify to have their rebates aligned to the stock category they purchased during the period. Stock categories qualifying for the rebates include: • Stock category 1: All stock purchases excluding category 2 purchases receive rebates from 3-5% based on the amount spent over 12 months.

Construction SA Magazine• March 2023

Marke�ng Head at Builders Janet Booysen says, “We realise that loyalty programmes are more crucial than ever to South Africans, as many consumers turn to them when they need to

The 2022 Truth and BrandMapp Loyalty Whitepaper highlights this dependence, revealing that 73% of South Africans use loyalty programmes consistently.

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Building Formular

Builders says its PRO programme will allow SMEs to also reap the rewards of a benefits programme that can alleviate some of the difficul�es their businesses face.

“The country’s tradespeople have unlimited poten�al to alleviate South Africa’s challenges, including the job crisis, which is why we’re so invested in this sector’s survival and recovery following the impact of the pandemic. In addi�on to the benefits our

sector will encourage more South Africans to pursue a career in this field and plug into the skills gap in the market,” adds Booysen..

programme will offer these customers, we also hope that finding new ways to support this

According to South Africa’s Department of Higher Educa�on and Training’s recently

published list of high-demand occupa�ons, the country con�nues to experience a scarcity of individuals trained and qualified to meet the demand for crucial ar�sanal jobs such as plumbers, electricians, and builders.

The list highlights how these ar�san-based businesses, which serve homeowners, have different development needs to other industries and require increased focus to enable this segment’s growth.

Builders PRO customers can use their card at any store and link it to their online profile to track the rebate.

Road Agency Limpopo To g e t h e r f o r b e t � e r r o a d s

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Construction SA Magazine• March 2023

Construction SA Magazine• March 2022

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Infrastructure Projects

RAL Project - Road P134/1 (One of the 18 Completed Road Projects)

It took 6 months to rehabilitate road P134/1 in this financial year. This road connects farms, businesses, and mining areas to the town of Mookgophong, thereby contribu�ng to the economic development of the province.

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The rehabilita�on of road P134/1 included the recycling and stabilising the exis�ng base and subbase, reconstruc�on of exis�ng pavement layers and cleaning of exis�ng culverts.

The rehabilita�on of road P134/1 benefited community members in numerous ways such as provision of a dust-free road, improved access for communi�es and lower vehicle opera�ng costs.

Construction SA Magazine• March 2023

Construction SA Magazine• March 2022

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Road Infrastructure

Road Agency Limpopo ac�vates the Memorandum of Agreement

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Construction SA Magazine • March 2023

RAL sign MoU With eight (8) Municipali�es

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n the 17 March 2023, RAL, conducted a briefing session with contractors following the signing of a Memorandum of Agreement (MoA) by RAL, in partnership with local municipali�es, for fixing dilapidated roads in the eight municipali�es party to the MoA. Road infrastructure development in these municipali�es will never be the same again!

The session included the Limpopo Department of Public Works, Roads and Infrastructure Heads of Districts, and Roads Agency Limpopo (RAL) Senior Managers who met with 21 appointed contractors to do rou�ne road maintenance and re-gravelling across the province.

RAL is targe�ng to patch about 160 000 square metres of potholes and to re-gravel roads at an es�mated budget of R260 million.

The RAL-Municipality ini�a�ve comes at a point where the recent rains have le� roads in various Municipality jurisdic�ons in a dire state.

Construction SA Magazine • March 2023

The partnership will help these municipali�es to address the damage caused and will thus enable mobility of residents.

Commen�ng on the ini�a�ve, Hon. MEC for Limpopo Department of Public Works, Roads and Infrastructure, Mme Nkakareng Rakgoale said “This ini�a�ve will bring relief to road users, because these contractors will extend their pothole patching execu�on to city centres, townships of local municipali�es, and iden�fied gravel roads leading to villages to enable smooth access for traffic and pedestrians.”

RAL General Manager: Opera�ons, Mr Mar�n Ramaboea, during the presenta�on of the RALMunicipal road infrastructure rou�ne maintenance session, remarked that communi�es are in need of improved roads for ease of mobility and access, “hence we need this programme to be fast-tracked”.

In his ac�on plan, Mr Ramaboea shared that RAL Project Managers, Contractors and Municipal officials will jointly iden�fy areas of priority which will benefit from this interven�on.

Speaking on quality, Mr Ramaboea maintained that RAL will be strict and will not allow poor workmanship to spoil the poten�al benefits of the ini�a�ve. He said as part of enforcing this, contractors will be given a one-year defects liability period where a por�on of their money will be retained, in case of any defects.

The session included experts in patching potholes who presented on their exper�se and services and how they will ensure quality execu�on in all the projects they are involved in. Mr Dhiren Mehta, from Jetpatcher highlighted that they use the state-of-the-art equipment that has a record speed in pothole patching.

Mr Mutshutshu Nxumalo also presented from Pro-Phalt where a similar method to Jetpatcher is used. They made an undertaking that although highend technology is deployed in their methods, they do offer African centred solu�ons that seek to also train locals on the required skills, to work with them.

The eight municipali�es include: Ba-Phalaborwa, Fetakgomo-Tubatse, Collins Chabane, Elias Motsoaledi, Bela-Bela, Polokwane, Musina, and Makhado Local Municipali�es as part of the District Development Model

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Cosentino - Design

Cosentino launches Dekton® Pietra Kode, designed by Daniel Germani Inspired by Italian architecture with an eye to the future, the collec�on reimagines classic stones in contemporary beauty with the high performance of Dekton®

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he Cosen�no Group, the global leader in producing and distribu�ng innova�ve and sustainable surfaces for architecture and design, introduces a new highperformance,

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ultra-compact stone collec�on: Dekton® Pietra Kode, the vision of renowned designer and architect Daniel Germani.

Pietra Kode reinterprets the �meless beauty of three classic Italian stones: Vicenza,

Traver�ne and Ceppo di Gré.

Each of these an�que natural stones is decoded and then recoded within three Dekton® concrete series, enhancing their proper�es and the many possibili�es for their use in architecture and design.

Construction SA Magazine • March 2023

Consentino - Construction

Women in ConstructionAwards

Each colour breathes contemporary elegance into the design, with the rich shades and textures crea�ng a sensory experience beyond what the eye can see. The carbon-neutral Dekton® surface allows the collec�on to be used for a virtually limitless range of indoor and outdoor applica�ons.

Pietra Kode marks the third collec�on developed by Dekton® with designer and architect Daniel Germani. While Germani’s previous Industrial and Chromica collec�ons for the brand have o�en had an industrial bent, the seven hues that make up Pietra Kode channel the influence of Vicenza, Traver�ne and the iconic Ceppo di Gré stone on Italian architecture over the centuries.

‘For this collec�on, I spent a lot of �me decoding each stone’s history in Italian architecture, and reimagined them in a contemporary design with all the benefits of Dekton,’ says Germani. ‘Pietra Kode is a collec�on that showcases luxury in the small, understated details.

It’s designed with the future in mind and complements any space in a way that won’t go out of style.’

THE VICENZA KODE SERIES consists of four warm and versa�le colours that reinterpret the code of classic Vicenza stone. With neutral tones reminiscent of the earth and

rich design that flows to the edges, all coexist in perfect harmony and complement cream, wood and taupe pale�es.

VK04 Grafite combines a mix of black and grey interspersed with whi�sh and reddish cloud-like patches, channelling the texture of dark, fine-grained limestone.

VK01 Nebbia is inspired by the texture of Grigio Alpi, with a fine-grained creamy white base do�ed with warm taupe hues.

THE TRAVERTINE KODE SERIES recodes the stone out of which Rome was built, into a new technological vision of the material that made classical art shine and inspired Renaissance architecture. Two elegant designs are full of nuances reminiscent of the quiet majesty of classic style.

VK02 Avorio features a light beige shade in an extremely natural finish inspired by the eponymous Avorio stone, an Italian material characterised by the presence of fossil shells.

VK03 Grigio boasts a grey colour scheme and warm nuances.

Drawing its inspira�on from Grigio Alpi, made popular by the Renaissance architect Andrea Palladio in his villas and palaces in the Veneto region, it blends perfectly with creams, woods and taupe colours.

Construction SA Magazine • March 2023

TK05 Sabbia reinterprets Italian Traver�ne, cut with a vein in its thread that flows through the pieces in a haphazard and colourful way, making it perfect for rus�c or natural environments.

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Cosentino - Design

TK06 Marmorio takes its cue from Traver�no Navona, the quintessen�al Roman stone. Its porous striped structure gives an elegant, bright and lightweight look to any design.

design spaces that inspire and connect with nature. Like Vicenza Kode, Ceppo Kode features design along the edges, making it ideal for revealing applica�ons.

THE CEPPO KODE SERIES reinterprets the beauty of the Ceppo di Gré stone, o�en used in architecture in Milan, to .

CK07 Ceppo The dis�nc�ve blue-grey mul�form structure of the Ceppo di Gré stone inspires this unique colour. The pebbled

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pa�ern, ideal for both indoors and outdoors, is a �meless design that makes it a perfect choice for a classic or modern look.

Construction SA Magazine• March 2023

Building Better for the Future

PROPERTY INVESTMENT TRENDS & ANALYSES A COMPREHENSIVE OVERVIEW FOR 2023 5 FACTORS IMPACTING THE CURRENT PROPERTY MARKET RIGHT NOW

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he property investment world is constantly evolving, and staying on top of the latest trends and analyses is essen�al if you want to succeed in this highly compe��ve market.

In this ar�cle, we explore 5 of the most important trends and analyses to consider if you want to make informed decisions and stay ahead of the property investment game.

1. GROSS DOMESTIC PRODUCT (GDP) The real GDP growth in South Africa (SA) was 2.6% in 2022, and the IMF projects it to be 1.2% and 1.3% in 2023 and 2024, respec�vely.

2. INFLATION Sta�s�cs SA shows that the annual consumer price infla�on in SA declined for the third consecu�ve month to 6.9% in January 2023 compared to 7.2% in December 2022. The current prime interest rate in SA is 10.75%. Many economists believe that interest rates are nearing the top before they will begin to stabilise.

3. PROPERTY PRICE GROWTH According to Lightstone's Residen�al Property Index (end of December 2022), property prices' current annual capital growth is 2.7%. Paul-Roux De Kock (Chief Analy�cs Officer at Lightstone) said these three scenarios suggested that House Price Infla�on (HPI) in SA for 2023 would likely come in between 0.9% (low) to 2.3% (mid) or 3.7% (high).

Interes�ngly, Lightstone also says that coastal proper�es have performed be�er than noncoastal proper�es and that proper�es valued at less than R250 000 and secondly proper�es valued between R250 000 and R700 000 have outperformed the other value bands.

The Lightstone Area Value Bands Index below reviews infla�onary rates for property based on the following values:

According to the TPN Rental Monitor Residen�al Sector Q2 2022 Report, residen�al tenants in good standing have recovered to 82.2%, which is at prepandemic levels. The upper to mid-level brackets recorded their best good standing ever!

In our previous ar�cle, 5 Ways to Manage your Rental Property Por�olio Be�er, we discuss how you can beat the averages of collec�ons and good standing.

5. RENTAL ESCALATIONS According to the PayProp Rental Index Q4 2022 Report, growth has rebounded impressively over the last five quarters since Q3 2021, when we recorded Year-on-Year growth of just 0.2%. Currently, rental escala�ons are si�ng at 3.4%. It has now recovered to prepandemic levels.

Luxury: > R1.5mil; High Value: R700k to R1.5mil; Mid Value: R250k to R700k; Low Value: <R250k 4. COLLECTIONS AND GOOD STANDING

Construction SA Magazine • March 2023

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Property Development

KEY TAKEAWAYS FOR PROPERTY INVESTORS As property investors, we must understand how certain trends and economic factors impact our investments. Here's my take on the current property forecast and economic outlook and what it means for your property investments.

Your ungeared return on property is your capital growth and net rental yield, which is currently a very decent return.

Right now, your average property price growth is ±3%, and your average net rental yield can be 6% to 8%.

Our ar�cle, Build a Significant Property Por�olio With Ac�onable Goals, also discusses how to build your property por�olio consistently through economic cycles.

Despite uncertain�es in the property investment sector, I s�ll believe in the power and poten�al of property investment. There are endless opportuni�es for growth and success, and I, for one, intend to make the most of them!

Property price growth is also con�nuing to rise, and I believe it could be significantly higher in the future. Here are my three reasons why: Average property price growth since 2000 is 9.5%, which is significantly higher than the 2.7% we are currently experiencing. Higher property price growth is in our future!

Property's input costs, including construc�on materials (such as concrete, bricks, steel, etc.), construc�on worker labour costs, and land prices, have increased faster over the last decade than property prices increased, which can also lead to higher future property price growth.

Rental escala�ons, which determine your rental yields on property, are also higher than property price growth in SA. This could also lead to higher property price growth in future.

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Construction SA Magazine • March 2023

Building Better Houses

Construction Sa Magazine• March 2023

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Building Better Houses

GQEBERHA BENEFICIARIES GOVERNMENT SUBSIDISED HOMES

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he Minister of Human Se�lements, Mmamoloko Kubayi and Deputy Minister Pam Tshwete were on Thursday the 16th March 2023 handed over newly built fully subsidized government homes to qualifying beneficiaries, including the elderly and women at the

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Nelson Mandela Bay Metropolitan Municipality in Gqeberha. Over 270 houses will be handed over at Polar Park, KwaLanga Township in Uithenhage, and Qaqawuli in New Brighton respec�vely.

Government seeks to transform household life of those living in informal se�lements through

Upgrading Programme (ISUP. This financial year ending March 2023, government set aside R4 billion for the upgrading of informal se�lements. In the new financial year 2023/2024, the Nelson Mandela Bay Metro will be allocated R300 million to improve the living condi�ons of households in informal se�lements.

Construction SA Magazine • March 2023

The housing units that will be handed over are a result of the interven�on by the Na�onal Department of Human Se�lements War Room announced by Minister Kubayi in her 2022/2023 Budget Vote Speech. Since its establishment, the team has helped to unblock numerous projects in different Provinces.

Minister Kubayi and Deputy Minister Tshwete were joined by the Member of the Mayoral Commi�ee for Human Se�lements in Nelson Mandela bay Metro, Cllr Tukela Zumani.

Construction SA Magazine • March 2023

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Social Services

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Construction SA Magazine • March 2023

Building Better for the Future

Economic Impact of Backrooms

In the townships Though backrooms aren’t a new phenomenon in SA, usage has changed from mainly being a family member to paying tenants, enabling owners to supplement their income as demand outstrips supply in some loca�ons.

With growing urbanisa�on and people moving to ci�es to find employment, backrooms remain, for many, the most accessible and affordable accommoda�on. Such space in areas like Soweto and Cosmo City that are near economic hubs and public transport are highly sought a�er.

growing demand for affordable accommoda�on, property owners are seeing poten�al to earn income from rooms tradi�onally meant for family use,” Teko Motlhabi, founder and CEO of Roomsta Backyard Rentals told Business Day.

“Generally old townships and especially where there is economic ac�vity there are backrooms, and with

Construction SA Magazine • March 2023

Pick n Pay Distribu�on Centre ick n Pay and partner Fortress REIT Limited are developing a new distribu�on centre, Eastport, in Gauteng to consolidate the JSElisted retailer’s Longmeadow distribu�on centre and three smaller facili�es The distribu�on centre, scheduled for comple�on in 2023, will cost about R2bn, including land and construc�on, with Pick n Pay’s 60% share es�mated at about R1.2bn.

Pick n Pay has secured longterm funding at a compe��ve interest rate to fund the purchase, it said.

“The company have successfully achieved centralisa�on for the most part in SA, but the Longmeadow distribu�on centre is reaching its capacity,” said the CEO Pieter Boone.

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Building Better for the Future

Logis�cs - Warehouse Facili�es Progress amid commercial decline Demand for logis�cs and warehousing facili�es, as well as vacant industrial land has remained high in SA in the past two years.

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Vacancies are at a record low with rental growth reported in some instances, according to commercial property services company, Gale� Corporate Real Estate.

“Rising demand and low supply of logis�cs and warehousing facili�es will con�nue, par�cularly in sought-a�er areas like the Western Cape,” said Gale� CEO John Jack

Construction SA Magazine • March 2023

Awareness Authen�city Ac�on

Opera�onal Excellence is a Strategic Impera�ve Today

Antony Page - Leadership & Change Specialist (Mind IP)

executed by the workers.

Managers were rewarded for focusing on the present, not the future.

Ironically, this principle operated under a disciplined, hierarchical structure of manager and worker, similar to the officer–troop rela�onship

aving been privileged enough to spend many years at a “strategic” level in the corporate world –mostly focusing on business improvement and turnarounds – I’ve heard a lot about “strategy”: what it is and what it isn’t.

seen in military structures.

Now, as I sit upon my tractor, I am reminded that strategy evolved from military warfare to be adopted by the corporate world as a means of countering the inward focus on efficiency, promoted by the principles of scien�fic management.

The how, a�er all, was firmly under control using the principles of scien�fic management. Strategic thinking was rewarded. Leaders required a strategic approach painted by innova�on and crea�vity.

This focus, with its roots in the industrial revolu�on, rewarded managers or leaders for establishing standardised processes and procedures that were to be

Competency tests iden�fied the strategists in the organisa�on with scores of 5 out of 5, and opera�onal thinkers 1 out of 5.

Construction SA Magazine• March 2023

Why Opera�onal Excellence is Frowned Upon Leaders soon worked out that, to stay ahead of the compe��on, a shi� towards a more forward-looking approach was required – one that focused on what and when something should be achieved, but not how.

The strategic thinkers where promoted, trained and nurtured; the opera�onal thinkers were le� to get on with it. Employees who focused on opera�ons or believed in approaching opera�ons in a different way were branded “opera�onal”.

Indeed, some corporates insisted that strategic direc�on, as they defined it, had to be developed at the corporate head office, while the opera�ons were to be managed at the opera�ng division or business unit level. This led not only to opera�ons methodology becoming stagnant and archaic, but also to the percep�on that opera�onal training and development was a poor area to spend money on. Combined with the ever-increasing disjoint between the strategic division and the opera�ng unit, this could have disastrous effects – as I’ve personally observed.

We Are Becoming More Inefficient!

Here upon my tractor, I can’t help but no�ce how opera�ons are becoming more and more inefficient.

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Awareness Authen�city Ac�on

I just have to men�on the Medupi and Kuseli Power Sta�ons, load shedding as a result of poor maintenance, and the poor, inefficient service from banks and mobile communica�ons companies.

Even Apple is unable to manufacture its own phone, having to outsource its manufacturing, and not for cheap either.

Strategy – Create a Produc�ve and Profitable Enterprise Andrea Ovans, in his ar�cle “What is Strategy, Again?” said “At a fundamental level, all strategies for Porter boil down to two very broad op�ons: Do what everyone else is doing (but spend less money doing it), or do something no one else can do.”

He went on to suggest “One could perhaps usefully divide the vast universe of subsequent strategy ideas into those that focus on: • Doing something new.

• Building on what you already do.

• Reac�ng opportunis�cally to emerging possibili�es.” changing technologies, globaliza�on, and the inexorably accelera�ng pace of change, there remain endlessly clever new ways to make money, beat the compe��on, and nudge Adam Smith’s invisible hand toward truly produc�ve and profitable enterprises.”

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A Cultural Change Is Required It becomes clear that a business opera�ng in a mature sector needs to build on what they have, doing what everyone else is doing but spending less money doing it, making their business truly produc�ve and profitable. These sectors such as Airlines, Construc�on, Tourism and dare I say it, Banking, to name but a few, need to focus on Opera�onal Excellence, Con�nuous Improvement, Business Improvement, call it what you will. This they will achieve by developing and implemen�ng a strategy that drives a cultural change across the business on its way to becoming the best operator.

A View from My Tractor shares my opinion on certain issues with the hopes of us be�er understanding and addressing the source of the problems present in our turbulent environment.

It is �me that improving the efficiency of opera�ons receives the strategic focus it deserves.

To be able to do what you do well.

Construction SA Magazine • March 2023

Public Environment Upgrade

SA LIBRARY WEEK FOCUS: PATERSON PARK LIBRARY

T

he 20th of March marked the start of South African Library Week, a celebra�on of our a celebra�on of our intellectual and literary heritage.Ioperator.

The theme for this year is “Libraries: telling powerful stories.”

Libraries use this annual event to market services to the users, the broader community, civil society, and decision-makers.

The City of Johannesburg public library aims to provide worldclass library and informa�on services that will play a vital role in the lives of all the residents of the City of Johannesburg.

Construction SA Magazine • March 2023

One recently developed library that embodies this vision is the Paterson Park Sports and Recrea�on facility implemented by the Johannesburg Development Agency (JDA) on behalf of the City of Johannesburg.

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A MODERN WAY OF FACILITATING LEARNING The Paterson Park Sports and Recrea�on facility offers learning facilita�on through a state-of-the-art library and a cra� centre to facilitate ar�s�c expression and growth. The community uses the theatre for community shows, presenta�ons and recitals.

The library aligns with the city’s priority of an ac�ve and engaged ci�zenry and showcases new digital technologies and services. The library offers various services lending services (print and online), reference service and research support, and study space and support.

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It also facilitates programme implementa�on such as reading development programmes, (homework assistance, story hours, holiday programmes), and eLearning programmes (digital literacy ac�vi�es) for all age groups.

A selec�on policy for the public libraries of the City is of basic importance to the library services, both for present services and future poten�al.

The Paterson Park Library fulfils various community-centered roles: Lending/use of books and other library materials as well as to provide informa�on packages for school projects.

Provision of space and sea�ng for study purposes in rela�on to the available space in the library.

The library aligns with the city’s priority of an ac�ve and engaged ci�zenry and showcases new digital technologies and services. The library offers various services lending services (print and online), reference service and research support, and study space and support.

Remote access to a number of electronic resources such as eBooks.

Construction SA Magazine • March 2023

Building Better for the Future

The introduc�on of the eLearning programme is the key driver in bridging the digital divide among the ci�zens of the City. Digital literacy training affords library users the ability to use digital informa�on sources confidently and cri�cally, communica�on tools and networks for learning, collabora�on, and crea�on.

Provision of informa�on in response to enquiries (reference and study services - also with the assistance of the Internet that is accessible to the librarian).

Informa�on Literacy Training to improve informa�on literacy skills of library users to recognize when and why they need informa�on and to be able to locate, evaluate and use the needed informa�on.

Advice, assistance, and reader guidance in rela�on to resources and their usefulness.

Arranging, facilita�ng, and presen�ng talks, lectures, exhibi�ons, and other informa�onal ac�vi�es.

Children services to promote reading and the fun of libraries, such as storytelling.

Programmes that promote commemora�ve events, library week, holiday programmes, World Book Day, Literacy Day. A MASSIVE, DYNAMIC IMPLEMENTATION PROCESS BY JDA Paterson Park Sports and Recrea�on facility is an example of how the JDA has been

instrumental in implemen�ng infrastructure for the city, crea�ng safe spaces for young people, allowing youth development, and providing an alterna�ve to the toxic environments they may encounter.

From a development perspec�ve, the Paterson Park project allowed people to have input into the development of their community. The planning phase of the projects started in 2015 and con�nued into 2016.

Public consulta�on for the facility took place in 2016.

five-a-side fields, two tennis courts, a mul�-court, and a basketball court, with a pavilion, offering a range of new programmes and ac�vi�es. In addi�on, the park offers an enclosed mul�-func�onal sports hall with a fully equipped gym.

A security house, and generator, to ensure op�mal func�onality and the crea�on of adequate, safe, and accessible adjacent parking. Construc�on works reached prac�cal comple�on in September 2020.

The JDA appointed the contractor – GVK Siya Zama, in May 2019 to build the Paterson Park Sports and Recrea�on Centre. In addi�on to the new state-of-theart library, the scope of works included a new mul�purpose sports centre and administra�on building.

The mul�purpose sports centre element of the facility includes a full-size soccer field, two smaller

Construction SA Magazine • March 2023

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FNB Commercial Property finance property January 2023 Residential Building Statistics –Building plans growth declining sharply as rising interest rates and recessionary economic conditions hit.

January residential building statistics showed sharp year-on-year decline in new planning activity, as rising interest rates and

Residential building plans passed The StatsSA January 2023 release of residen�al building plans passed showed a year-on-year decline in the number of units’ plans passed, to the tune of 65.38%, a�er a prior month’s decline of -33.27%.

18000 15000

Number of Units

recessionary economic conditions take effect.

Residential Plans Completed vs Passed (Number of Units) 16 937 15 151

13 767

12000

10 344

9000

8 577

6000

6 467

3000

3 477

0 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23

Number of units of Residential Space Completed - 3-m moving total Number of units of Residential Plans Passed - 3-month moving total

Monthly data can be vola�le, however, so we use a 3Residential buildings completed month moving average for smoothing purposes. For the 3-months to January 2023, the year-on-year rate of More recently, residen�al building comple�ons have decline, too, was severe at -41.1%, following on the also begun to decline,falling year-on-year by -30.06% -22.16%decline for the 3 months to December. for the 3 months to January2023.

Number of Units of residential building plans passed vs completions

Plans passed by size category

85 65 45 25

%

5 -15

Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23

-35

-30.06

-55 -75

-41.10

-95 No. of units of res. building completions (3-m moving avg.) - y/y % change No. of units of res. building plans passed (3-m moving average) - y/y % change

A�er a post-2020 lockdown “mini-recovery”. we had been expec�ng a slowdown in residen�al building ac�vity due to interest rate hiking that commenced late in 2021 along with a slowing economy impacted by rate hiking, load shedding and slowing global growth.

And, indeed, this slowdown has been materializing of late. Residen�al building plans passed reached a postlockdown high around mid-2022, and began to fall therea�er.

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When breaking the number of units’ plans passed up into the 3 building categories provided by StatsSA,we see that for the 3 months to January it was the “Dwelling Houses smaller than 80 square metres” categorythat showedthe fastest rate of decline to the tune of -59.2%year-on-year. Thesecondfastest rate of decline waswitnessedin the lats and Townhouses” category to the tune of -46.9%year-on-year.

Theslowest rate of year-on-year decline wasrecorded in the “Dwelling HousesLargerthan 80 squaremetres” categoryto the tune of -16.2%. The breakdown suggests that weakness is now more severe in the affordable housing segment than the more affluent markets, with much of the “Dwelling Houses smaller than 80 square metres” segment believedto be in the Affordable Housing segment.

Construction SA Magazine • March 2023

Commercial - Property

But it is the other 2 segments combined, (Flats and Townhouses, and free-standing homes larger than 80 sq.m) that are typically more cyclical, and actually say something about the businesscycle of the country. So effec�ve are these segments as a leading business cycle indicator that they are included by the SARBinits Composite Leading Business Cycle Indicator.

Composition of Building Plans Passed (Data source: StatsSA)

100%

11% 26%

30% 80% 41%

21%

47%

60%

31%

42% 36% 40%

33%

69% 43%

20% 28% 23% 0% 1993

20% 1997

2001

2005

2009

2013

2017

2021

Flats and Townhouses Dwelling houses greater than 80 square metres Dwelling houses less than 80 square metres

And growth in plans passed in these 2 segments combined, i.e., building plans passed excluding free-standing homes smaller than 80 square metres, has slowedinto nega�veterritory to the tune of an extreme -67.78%year-on-year for January,while alsorecording a significant nega�verate of 36.08%for the 3 months to Januaryyear-on-year,which is an accelerated rate of decline from prior months.

Outlook Recently, Residen�al Building Plans Passed have declined sharply.

Webelievethis dip hasmuch to do with the cooling off of housing demand due to interest rate hiking, along with slower household income growth as a result of a slowereconomic growth rate.

In the final quarter of 2022, quarter-on-quarter GDP (Gross Domes�c Product) growth had already turned nega�ve, as it faced numerous headwinds. These included the rising interest rates, along with a slower global economy and recent sharp increase in the level of electricity load shedding.

Residential Building Plans Passed - Flats, Townhouses and Houses > 80 sq. metres 100 80 60

We know that two of the 3 building categories’ plans passed data are useful leading business cycle indicators, so this decline in plans passed comes as li�le surprise.

40 %

20 0 Jan-15 -20

Jan-17

Jan-19

Jan-21

-40 -60

Jan-23 -12.92

-36.08 -67.78

-80 3-Month moving avg. - y/y % change

No. of Plans Passed for Flats, Townhouses and units larger than 80 square metres - y/y % change

This suggests that the more cyclical part of the Residen�al Building Sector responded significantly to cyclical forces such as interest rate movements and recessionaryeconomic condi�ons.

FNB’s economic forecasts include onefurther 25 basis point interest rate hike next week,before rates start to movesidewaysfor the remainderof the year,alongwith a slower 0.4% GDPgrowth rate for 2023, which is significantly slowerthan the 2%recorded for 2022.

Suchan economic environment is expected to lead to a significantly slower residen�al building yearin 2023, comparedto 2022,and declining building planspassed in recent months point strongly in that weakening direc�on.

The Flats and Townhouses category s�ll looks set to remain the largest new building category by a significant margin in 2023, having increased its share of the market massively over the years from 26% in 2010 to 47%in 2022.

Construction SA Magazine • March 2023

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RAL Project Summary - Road P51/3 (One of the 18 Completed Road Projects) Road P51/3 from Groblersdal to Sto�erg in the Sekhukhune District was in a dire state with defects that included, amongst others, potholes, edge breaks, seal cracks, base failures, erosion, vegeta�on growth on the shoulders and loose stones.

This had rendered the road unsafe and uneconomical to use.

Some of the benefits that members of the community realised as a result of the rehabilita�on of Road P51/3, is having shortened travel �me, employment opportuni�es created and improved access to government ameni�es.

The P51/3 road construc�on project also empowered local SMMEs through sub-contrac�ng opportuni�es and business skills development. The SMME target was set to be 10% of the overall contract amount.

.

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Construction SA Magazine • March 2023

Woman in Construction

MEC Motara - site inspec�on

O.R. Tambo Interna�onal Airport Special Economic Zone

Construction SA Magazine • March 2023

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Quality Projects - OR Tambo

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Construction SA Magazine • March 2023

MEC Motara conducted a site inspec�on to the O.R. Tambo Interna�onal Airport Special Economic Zone. It is part of the Gauteng Industrial Development Zone located in Ekurhuleni.

This is a cataly�c project under the auspices of the Department of Economic Development. The precinct currently houses 7 tenants and will have 22 at the end of the construc�on period.

The construc�on started slow but there has been great improvement. We are preparing for a special visit of one of the tenants in the coming days. .

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Construction SA Magazine • March 2023

Improve Housing Projects

Construction SA Magazine • March 2023

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