Building Prospects: 2nd Quarter 2002
We are happy to report that the MFA Leading Indicator for the SA Building Industry has shown a further improvement during the second quarter of 2002. The index has risen from 42 to 45, with the neutrality level of BER respondents pegged at 50. The composite MFA Indicator is based on 24 business survey variables, extracted from BER Building and Construction Vol 17, No 2. It covers the workloads of building contractors and sub-contractors, their degree of competition in tendering, materials and labour shortages, employment, profitability, their current business confidence levels, as well as changes in business conditions.
Do you believe conditions have improved? Visit the ASAQS website by clicking on the above link and cast your vote in the poll associated with this article in the General discussion forum
(©www.asaqs.co.za)

Interest rates, costs put a damper on building
RECENT interest rate hikes and the sharp increase in building costs since the beginning of the year are taking their toll on the building industry, a survey by the Bureau for Economic Research has shown.The bureau, which is based at Stellenbosch University, found that overall building activity had slowed down. Its finding confirms economists' view that the recent interest rate increases will stunt economic growth.
(©www.bday.co.za)

Lyons profits from changed view of fixed property
A SHIFT in view on the nature of fixed property in the SA investment community is proving to be good business for property asset management company Lyons Financial Solutions. The shift, which reveals property as an investment asset class in itself requiring specialist asset management, has seen Lyons grow assets under its management 44% to R6,5bn in the financial year ended May. The group improved headline earnings a share 15% to 3,4c in revenue or fee income of R32,4m.
(©www.bday.co.za)

Pretoria flats record 27% rental growth, says report
PRETORIA flats have recorded rental growth of 27,1% to an average of R1684 in the one year period ended March, outclassing cities across the country, says a report by property services company Rode. Cape Town takes second spot with growth of 17,5% to an average of R1864. Johannesburg shows a low growth of 5,6% to R1742, and Bloemfontein recorded growth of 8,2% to R1101.
(©www.bday.co.za)

Disagreement over office property scene
OLD Mutual Properties MD Ian Watt has criticised property services company Rode for what he says is an over-optimistic view on the prospects of the office property market in its first quarter property market report. He says vacancies are generally at an all-time high.
(©www.bday.co.za)

A sweet spot for some
The JSE's property sector is headed for broad capital growth now that Reserve Bank governor Tito Mboweni expects to hit his inflation sweet spot of 3%-6% by the end of 2003.
(©www.fm.co.za)

Encouraging forecast for global steel
THE global steel industry is expected to be largely unaffected by the wave of protectionism triggered by a US decision this year to impose tariffs of up to 30% on imports from a number of European, Asian and South American producers, according to a report by British steel analysts Meps.
(©www.bday.co.za)

Iscor slammed for price rise
Johannesburg - The decision by South Africa's largest steel manufacturer, Iscor, to increase the price of hot-rolled coil steel by 15 percent from September would send ripples through the economy and push up inflation rates, economists warned yesterday.
(©www.busrep.co.za)

Onus of proof on taxpayer
THE onus of proof on whether the receipt or accrual of an asset is of a capital nature rests with the taxpayer. Usually the courts will consider those facts and circumstances that establish the intention of the taxpayer in acquiring, holding and disposing of the asset in question.
The Southeastern Cape Court had occasion (in ITC 1719) to consider whether the profits generated by the sale of three sectional title units fell within the taxpayer's gross income.
(©www.bday.co.za)

Samrand feels pinch after long, tough year
PROPERTY development company Samrand is not yet out of the woods and has reported a drop in headline earnings a share to 0,8c from 10,6c in the year to March. The group, owned by Malaysian investor Samsudin Abu Hassan, posted revenue of R51,8m from R18m in a tough year for property investment firms.
(©www.bday.co.za)

Samrand stays mum on recent acquisition
THE JSE Securities Exchange SA is demanding an explanation from property development company Samrand on why it withheld price sensitive information for about eight months. The information in question relates to a R2m transaction in which Samrand acquired 50% of property company Samstocks to become 100% owner of the business.
(©www.bday.co.za)

Mintek set to gain billions from projects
SA MINERALS research agency Mintek is promoting a number of hi-tech projects, which it says could secure billions of rand in investment in SA and include the construction of a ferro-nickel plant in the Eastern Cape. "If we already had such a plant, I believe there would have been an investment in a stainless steel plant on the coast," said Mintek CE Paul Jourdan. He said ferro-nickel was a major input for stainless steel, and Mintek has developed cutting edge technology for its production.
(©www.bday.co.za)

Prudence may pay off for Reits
After logging gains of 12 per cent last year and more than 13 per cent from January to the end of June, property stocks have fallen sharply in the past few weeks. Investors - who plowed 627bn into mutual funds dedicated to real estate investment trusts (Reits) just last month - seem to be pocketing some profits.But, even as Reits fall from four-year highs, market watchers do not see a bursting bubble. In fact, the dip in share prices comes at a time when the industry's fundamentals can only improve.
(©www.compuspace.co.za)

Plan to bring science to masses
OLD Mutual Properties, in partnership with cellular network operator MTN, is working on a plan to introduce science centres in its major shopping malls across SA. An Old Mutual science centre a facility mainly targeted at school children will be launched at Gateway Theatre of Shopping in Umhlanga, KwaZulu-Natal, this month. The centre is being established on the lines of a popular science centre set up in a partnership between MTN and the Cape Town shopping centre, Canal Walk, about two years ago. The Canal Walk facility has attracted 120000 visitors a year.
(©www.compuspace.co.za)

Little progress for small black businesses
AN INDEPENDENT assessment on targeted procurement in SA has revealed that little progress is being made in public-sector procurement despite there being many pieces of legislation that seek to achieve this objective. The research, by independent consultants for the public works department, the International Labour Organisation and the Development Bank of Southern Africa (DBSA), is aimed at formulating one law and set of policy guidelines on procurement. Their report shows that there are too many documents used in SA's construction industry and across each tier of government.
(©www.bday.co.za)

BHP Billiton to award 25 small tenders to locals
Durban - BHP Billiton would award at least 25 contracts from its $442 million Hillside Aluminium expansion project to local small and medium enterprises (SMEs), creating about 4 800 jobs through the multiplier effect, project manager Louis Smidt said yesterday.
(©www.busrep.co.za)

Leak closes new Foskor acid plant
Durban - A gas leak at Foskor's new sulphuric acid plant at Richards Bay on Monday, which affected 229 people, has led to the local municipality ordering a halt to operations.
(©www.busrep.co.za)

Business helps with education of engineers
A LEADING local industrialist says business has to support the education of SA engineers to reverse effects of a brain drain of academics which could rob the country of vital skills.The CE of Circuit Breaker Industries (CBI) Helmuth Fischer told a ceremony at Wits University that SA industry would not be able to compete internationally if the "government's education policy favouring equalisation is done at the expense of allowing engineering education to suffer.
(©www.bday.co.za)

SA firms in E Guinea hydro-power refurb
Pretoria-based company ARQ Consulting Engineers is spearheading a $1-million hydroelectric refurbishment project in Musola, Luba on the Bioko Island of Equatorial Guinea.
(©www.engineeringnews.co.za)

Industrial agency meets Tinseltown
The Industrial Development Corporation (IDC) is intent on creating a local film industry with adequate supporting functions.
(©www.engineeringnews.co.za)

Diet drug wakes appetite for more
South Africa’s anticipated success in delivering the P57 obesity-drug – derived from the Hoodia plant – to the international market, could soon be duplicated.
(©www.engineeringnews.co.za)

Preparing to redraft South Africa's successful auto strategy
The Motor Industry Development Programme (MIDP) should have come to an end this year, according to the original blueprint of the scheme, but has again received an extension, adding to the earlier one allowing the programme to run until 2007.
(©www.engineeringnews.co.za)

Now Jumbos can also fly to Kruger Park airport
YOU will soon be able to climb on a jumbo when travelling to see the jumbos in the Kruger Park, with the advent of the new R350m Kruger Mpumalanga International Airport near Nelspruit.
(©www.bday.co.za)

SAFCEC NEWS

SAFCEC CONVENTION 2002
Important notice to all members! The 9th SAFCEC National Convention will take place on 6 – 7 October 2002 at Spier Estate, situated 25 minutes from Cape Town. This exceptional venue is perfectly suited to the SAFCEC convention and offers a variety of exciting activities; indeed, delegates would be well advised to take an extra day to experience the various leisure aspects of the resort.
The convention programme has been finalized, with various prominent speakers lined up to examine issues of concern to the industry. The convention will provide a stimulating forum to explore likely future scenarios, exchange ideas and renew acquaintances. A very special ladies’ programme is also in place, and, as always, we strongly encourage delegates to invite their partners to this prestigious annual event.
Please ensure that you diarise the details and book early to secure your place! Click here for more details on programme and registration.

CONTRACTS CLAIMS COURSE
SAFCEC will present a one-day course on Contract Claims on Wednesday, 28th August 2002, in Construction Centre, 12 Skeen Boulevard, Bedfordview, commencing at 08:30.
The course is targeted at Site Agents and Contract Managers and is designed to sensitise this level of management to the possibility of claims and how to deal with them.

SAFCEC WEB PAGE ON OCCUPATIONAL HEALTH AND SAFETY
The SAFCEC Safety Committee is proud to announce that it has launched its own OH&S Web Page, which can be accessed through the SAFCEC web page. This page contains information on OH & S training and services, links to other useful web pages, audit criteria, toolbox talks etc.
Any feedback would be appreciated.

NEW ROAD GEOMETRIC DESIGN GUIDELINE
Mr Nazir Alli, CEO of SANRA has asked SAFCEC to draw its members’ attention to a new Geometric Design Guideline.
This document can be downloaded from the CSIR website http://geometricdesign.csir.co.za
It represents a major departure from previous geometric design manuals. In previous manuals, standards were based on the limitations of vehicles whereas, in this document, the emphasis has shifted to a human factor approach to the derivation of guideline values. In consequence, some of the design parameters have undergone a dramatic change.
Mr Alli believes it important that SAFCEC members should download the document and provide comment on it prior to its finalisation. The website listed above makes provision for the submission of comment and he would appreciate it if SAFCEC members would avail themselves of this opportunity.
(©www.safcec.org.za)

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Primegro posts lower earnings
PROPERTY loan stock firm Primegro posted fully diluted earnings a linked unit of 38,1c in the six months ended April, down from 121c in the previous comparable period. These results came out of a period in which Primegro was engaged in a process of integrating interests acquired from the purchase of the Richway Retail portfolio last year for about R1bn.
(©www.bday.co.za)

Old Mutual tells Gateway tenants to pay arrears
Durban - Old Mutual Properties, the owner of the R1.4 billion Gateway shopping complex in Durban, had given tenants until the end of this month to pay their rent arrears, Mike Rodel, the general manager, said this week. This follows a daylong closure of shops on Tuesday by more than 60 tenants who belong to the Gateway Tenants' Forum in protest over Old Mutual's refusal to enter into mediation.
(©www.busrep.co.za)

Retail opportunities and challenges outlined at Mexico City meeting
Speakers at ICSC's first Mexico and Central America Business Forum pinpoint region's potentials - and pitfalls.
(©www.icsc.org)

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Fire leaves 150 homeless
A hundred and fifty Alexandra residents were being housed in temporary shelters after being turned into the Highveld's freezing cold by a fire that destroyed 70 shacks in the tightly packed suburb.
(©www.bday.co.za)

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Zimbabwe faces worst economic crisis UN
ADDIS ABABA The forcible occupation of white-owned farms in Zimbabwe had contributed to the deepest economic crisis in the country's history, one which is set to worsen, the United Nations (UN) warned yesterday in a damning report.
"Zimbabwe is currently a crumbling economy facing a grave crisis," the UN Economic Commission for Africa said in its annual overview of the economic health of states on the continent.
(©www.bday.co.za)

War-torn Hilton is imploded
LEBANON The Beirut Hilton, built 27 years ago but inhabited only by militiamen fighting Lebanon's civil war, was destroyed in a controlled explosion yesterday morning to make room for a new hotel.
(©www.bday.co.za)

Alarm at mounting threat to the world's biodiversity
ONE of the hot issues up for discussion at the World Summit on Sustainable Development, starting next month in Johannesburg, is that of biodiversity the number of different species on earth. A report on the biodiversity of SA, released by The Green Trust and the Endangered Wildlife Trust yesterday, points to the urgency of the issue for SA. According to The Biodiversity of SA, the country in its use of natural resources is on an unsustainable development path because it is using up resources beyond its ecological capacity.
(©www.bday.co.za)

Africa's future depends on private sector input
LESS government and more business is probably the most sensible way to go about resolving Africa's myriad conflicts. Economic growth and wealth creation are key pillars in the prevention of conflict but this cannot happen effectively unless the business sector, and its relationship with governments, is strengthened.
(©www.bday.co.za)

Farmers' union seeks audience with Mugabe
IN A dramatic change of direction, Zimbabwe's white commercial farmers are frantically seeking an audience with President Robert Mugabe to stop continuing land seizures and evictions from their properties next month.
(©www.bday.co.za)

African economies grew faster in 2001 - UN report
Addis Ababa - African economies grew faster than expected last year, spurred on by better management, good farm output and a cessation of conflicts in several countries, a United Nations report said on Tuesday.
(©www.busrep.co.za)

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World's top mining shares rise on expectations of economic recovery
London - BHP Billiton, Anglo American and Rio Tinto shares rose yesterday as investors expected an economic recovery would boost demand for commodities, increasing profit at the world's top three mining companies.
(©www.busrep.co.za)

Shares rise as investors take a shine to biggest miners' movement
Johannesburg - Shares rose yesterday, led by Anglo American and other mining companies, on optimism a rebounding global economy would boost demand for commodities, increasing profit at the world's biggest miners.
(©www.busrep.co.za)

Progress on SA-linked Oz iron-ore project
The Hope Downs Iron Ore project, 75 kilometres north-west of Newman in Western Australia’s Pilbara region – in which South Africa’s Kumba Resources is involved – has cleared another major hurdle in its path to development with the announcement yesterday of the delivery of a technical report on the feasibility study.
(©www.engineeringnews.co.za)

State agency backs 33 mining ventures
While it is expected of the new Minerals and Petroleum Resources Development Bill to create a more representative mining industry in South Africa, the Industrial Development Corporation (IDC) Entrepreneurial Mining and Beneficiation unit is quietly achieving precisely this.
(©www.miningweekly.co.za)

Technical study progresses for Balfour gold prospect
A new gold-mine could be developed in the next few years near the town of Balfour, in Mpumalanga province, if current investigations by one of South Africa’s newer gold-exploration firms, Southgold, come to fruition.
(©www.miningweekly.co.za)

Comrade executive seeks new empowerment mode
After having served as a non-executive director at the largest South African gold-mining company for four years, James Motlatsi became the public face of the AngloGold when he was appointed the deputy chairperson in May.
(©www.miningweekly.co.za)

PGM boom town
Platinum was long the Cinderella of the mining world, the unappreciated princess of precious metals.
(©www.miningweekly.co.za)

Zambia probes mine purchase irregularities
ZAMBIA – The Zambian government has ordered an investigation into the disappearance of $ 75-million which is part of the payment made by the Binani group of companies for the purchase of Roan Antelope Mine in Luanshya.
(©www.engineeringnews.co.za)

Minerals beneficiation push in E Cape
An agreement has been signed between the Eastern Cape Development Corporation (ECDC) and State metallurgical research group, Mintek, in a bid to boost the prospects for minerals development in the Eastern Cape.
Both agencies have agreed to facilitate economic development and wealth creation in the Eastern Cape with the view to job creation.
(©www.engineeringnews.co.za)

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Spotlight on: The City Bowl
Growing demand and shortage of homes for sale are pushing up prices in Cape Town's trendy City Bowl area, which includes suburbs such as Vredehoek, Higgovale, Oranjezicht and Tamberskloof.
(©www.property24.co.za)

More sellers want online listings
The demand among home sellers to have their properties listed on the Internet is growing fast - and prompting more agents to make use of online technologies.
(©www.property24.co.za)

Inner city 'vision' pays off
Early investors at Sovereign Parks - the first residential estate to be developed within Johannesburg's inner city zone - are beginning to reap the rewards of their foresight as the value of stands in the development continues to climb.
(©www.property24.co.za)

Protection for body corporate funds
Sectional Title bodies corporate that employ registered managing agents and use the agents' trust accounts for the receipt and disbursement of body corporate money enjoy the best financial protection.
(©www.property24.co.za)

Yellow Button backs ST advice service
The Sectional Title Helpline - which offers free, professional advice and assistance to flat and townhouse owners - is now backed by Yellow Button, the property management company in the Jigsaw Holdings group.
(©www.property24.co.za)

Wheel turning for buyers
Homebuyers have to be increasingly well-prepared to address sellers' concerns about their financial capabilities. Now sellers need to be ready to divulge information about themselves and why their property is on the market.
(©www.property24.co.za)

Don't let additions haunt you
Buyers purchasing a property with additions such as a granny-flat, carport or tool shed should first check the house plans with their local authority to ensure that the structure has been approved.
(©www.property24.co.za)

Home buyers turn to cash
Banks battling it out for new home loan business should take note: agents are reporting an increase in the number of homes being bought for cash since interest rates started to rise in late January, and a rise in the average cash deposit percentage.
(©www.property24.co.za)

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The performance improvement challenge for contractors
Contractors, among other industry stakeholders, are faced with the challenge of having to significantly improve their performance and become more competitive in delivering quality products within agreed budgets and schedules. Further challenges for contractors demands strict compliance to safety and environmental regulations while maintaining good profit margins.
(©www.csir.co.za)

Calculation and Recovery of Home/Head Office Overhead
(2002 Runnerup - Melbourne, Victoria, Australia).
Please note: This paper from the ICEC International Congress is published in PDF format.
When construction is delayed by owner-caused actions, contractors request compensable delay. It is difficult to reach agreement on causes and extent of delay and even tougher to agree on the cost of delay. This is due, in part, to the lack of a single, accepted method of calculating home office overhead. This paper explores nine methods of calculating such damages and shows the results of each. It also discusses the new rules developed by Federal Courts and Boards of Contract Appeals concerning the recovery of “unabsorbed overhead”.
(©www.icoste.org)

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IMF: Rand is undervalued
The International Monetary Fund says the rand is undervalued at current levels and the sharp depreciation of the currency does not reflect South Africa's sound economy.
(©www.news24.com)

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CPIX inflation up to 9,8 percent
Pretoria - Year-on-year inflation excluding mortgage bond rates (CPIX) rose to 9,8 percent last month from 9,2 percent in May, Statistics SA reported on Tuesday. It ascribed the latest figure mainly to annual increases in the cost of food, housing, transport, medical care and health expenses.
(©www.busrep.co.za)

Interest rate hike unlikely, says economist
Pretoria - The latest inflation figures heightened the risk of another increase in prime interest rates but such a move was unlikely, Absa economist John Loos said on Tuesday. He predicted the inflationary environment would be significantly different when the monetary policy committee (MPC) of the SA Reserve Bank meets again in September.
(©www.busrep.co.za)

Construction Time Prediction: The Forgotten Service
by R. G. Pearl, Professor, School of Civil Engineering, Surveying and Construction, University of Natal
and
P. A. Bowen, Professor, Department of Construction Economics and Management, University of Capetown, Republic of South Africa
The effective management of construction project cost, quality and time is intrinsically important to the attainment of client objectives. Whilst consultant's roles with regard to cost (price) and quality issues are well recognised, less importance is paid to the equally important aspect of construction time assessment. This article describes an experiment conducted with South African contractors and consultants to determine the manner by which they forecast project construction time, within the constraints of a preferred procurement model.
Note: Please be patient while the graphics associated with this article load.
(©www.icoste.org)

Roelof Delport writes on the General discussion forum:
I can in some way understand the governments reasoning in pushing the legislation governing the NHBRC through, but I feel that for developments were a full professional team is appointed, this should be wavered, or at least 99% of it. I do not believe that the NHBRC can add any value to project were the professional team is not already governed by an Act on Professionals. Surely this protects the consumer against the “sharks” out there.
I believe that in a situation were you have an architect, quantity surveyor and a structural engineer employed for the full duration of the project, there is no value an inspector from the NBRC can add to the development. To ensure that all the requirements of the NHBRC are met, the professional team can submit prescribed certificates to the NHBRC for their records. To compensate for their administrative work a fixed levy of max R1 000-00 can be charged, but certainly not 1%. This comes directly off the the return of a potential investment of our clients.
Should ASAQS take this further? Vote in the poll associated with this posting

Forums (Topics) on the ASAQS website
We experienced some difficulties with our forums last week. The matter has been put right and all old postings have been removed. To use the forums please do the following:
1. Click on the link above whilst connected to the Internet
2. Click on the register button at the top of the page and complete your details
3. Click on the FAQ button to find out more about using the forums
4. Vote on one of the topics or post a message of your own.

Seen on Classifieds
Short-term freelance QS's
An international QS firm is looking for experienced freelance staff for a college project in Qatar (Arabian Gulf). Accommodation, flights, visas, etc provided start end Aug. Approx 3 to 4 months duration. No chancers. Dis 'n lekker plek hierdie. Please e-mail brief CV (No large attachments please)
Quantity Surveyor
EASTERN CAPE DEVELOPMENT CORPORATION:
The ECDC's Fundisa Unit requires the services of a qualified Quantity Surveyor with appropriate experience in professional quantity surveying practice.
Practical project management experience gained with emerging building contractors will be an advantage. Closes 19th July 2002.
R250-R300K pa

Remember: Visit the ASAQS website for new updates!

IEC Auction site
It is brought to our members notice that the IEC has opened an e-procurement site at https://votaquotes.elections.org.za/Main.asp. Members who wish to provide services to the IEC should visit the site in late August.

New members to the CUG

Yusuf Cassim
Peter Mather-Pike
Robert Palmer

Please note that your registration to the CUG will remain in force as long as you remain a member of ASAQS and there is no need to register every year. If you have not received an e-mail confirming your registration contact ASAQS.

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