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The Weekend Property and Construction Newsletter

Saturday 27 April 2002
Circulation : exceeds 1,000 subscribers


Property and Construction related articles featured on the Internet for the past week brought to you by www.asaqs.co.za .
News specific to the quantity surveying profession is reflected at the bottom of this newsletter. Click on the blue headline if you wish to read the full article on the Internet.
Past issues of this newsletter can be found at http://www.asaqs.co.za/news/

CONSTRUCTION AND DEVELOPMENT NEWS

Many dangers in focus on price
The emphasis on price in the procurement of professional engineering services could compromise quality, says SA Association of Consulting Engineers president Peter Silbernagl.
(©www.bday.co.za)

Public Works spends its full R3,25bn budget
Government departments are often criticised for not successfully dispensing of all the funds allocated to them in a given fiscal year.
(©www.engineeringnews.co.za)

Building collapses have industry in shock
The South African Institution of Civil Engineering, the Association of Consulting Engineers, the Engineering Council of South Africa (Ecsa), the Institute for Timber Construction and the Institute for Municipal Engineers are preparing to lobby for stricter compliance with building regulations.
(©www.engineeringnews.co.za)

Industrial sector has growth potential, says Old Mutual Properties
Johannesburg - The industrial property sector offers growth potential, Ian Watt, managing director of Old Mutual Properties, said on Wednesday. He said bigger users were looking for premises better equipped than what were on offer in the market. "This is leading to select developments, notably for owner-users, and increasing opportunities for redevelopment in older, industrial areas."
(©www.busrep.co.za)

R53,3m for municipal development projects
Mpumalanga has budgeted more than R35,3-million for development projects in Kungwini municipality near Bronkhorstspruit. Of this, R18,2-million will be spent on the construction of 1 138 houses in sections G and H of Ekangala once the land has been transferred, said spokesperson for Premier Ndaweni Mahlangu, George Mohlamonyane.
(©www.engineeringnews.co.za)

Jo'burg targets city buildings for renewal
A new report on inner-city housing in Johannesburg has identified 75 buildings for possible conversion into family housing units. The report, commissioned by the Inner City Housing Upgrading Trust and carried out by Dhlamini Quantity Surveyors Consortium, is part of the council's continuing efforts to revitalise the city centre.
(©www.iol.co.za)

Dodgy deals uncovered in KZN municipalities
Several municipalities in KwaZulu-Natal could lose as much as R60-million after their officials used council money to invest in get-rich-quick schemes. At least two investments, with a total value of R32,5-million, involved Pieter Johan (Joe) Verster, the notorious former head of the Civil Co-operation Bureau.
(©www.iol.co.za)

State infrastructure to boost SA construction
South Africa’s construction industry is expected to get a boost in the next three years from government plans to raise infrastructure spending, the Bureau for Economic Research (BER) said.
(©www.engineeringnews.co.za)

Second phase of village launched ahead of schedule
The second phase of the R80m residential village Gowrie, at Nottingham Road in the KwaZulu-Natal midlands, has been launched three months ahead of schedule because of unexpected interest in the first phase, says developer Guy Smith.
(©www.bday.co.za)

Crescent challenges Gateway Theatre
JT ROSS & Son, Pangbourne Properties and BoE Corporate have commissioned a new retail development in Umhlanga, KwaZulu-Natal. The Crescent, to be anchored by Pick 'n Pay, will be built next to Old Mutual Property's R1,4bn Gateway Theatre of Shopping.
(©www.bday.co.za)

Durban vies for a petrochemicals hub
A Multibillion rand petrochemicals hub in Durban, linked to the city's existing oil refineries, is one of the main projects that a new investment agency for KwaZulu-Natal is working hard to make a reality
(©www.bday.co.za)

(Air)field of dreams
The concept of building an international airport at La Mercy, north of Durban, has been doing the rounds for so long, many believed it to be dead in the water
(©www.bday.co.za)

Rail upgrade plans scupper development of Umgeni Business Park
Durban - Phase two of the Umgeni Business Park, on a prime chunk of the city's commercial and light industrial land, was unlikely to go ahead because of plans for massive rail upgrades in about 2045. This was the word last week from Intersite, the property management arm of the SA Railway Commuter Corporation (SARCC), which owns the estimated 70ha piece of land.
(©www.busrep.co.za)

Plant closure blow to Mooi River
Mooi River does not live up to its name. It is neither a pretty town nor an attractive investment destination, despite the best efforts of KwaZulu-Natal economic development and tourism MEC Mike Mabuyakhulu and Mooi River mayor Mncdise Mthethwa.
(©www.bday.co.za)

Eastern Cape to get R900m sugar beet boost
The poverty stricken Eastern Cape province is hoping to get a R900m cash economic injection through a sugar beet growing and processing project backed by the Industrial Development Corporation (IDC), the Land Bank and private parties, possibly including construction giant Murray and Roberts, officials said earlier this week.
(©www.bday.co.za)

Cell C puts smile on the face of Bakos Brothers
New cellular phone network operator Cell C has proved a boon for Bakos Brothers Properties, filling its R80m Esher Place office park development in Sandhurst, north of Johannesburg.
(©www.bday.co.za)

Nepad faces big-five test
President Thabo Mbeki and his co-architects of the New Partnership for Africa's Development (Nepad) have achieved the unthinkable in less than two years since The Economist labelled Africa "The Hopeless Continent".
(©www.bday.co.za)

First investment by SA biotech fund
South Africa’s first biotechnology venture capital fund, Bioventures, has made its first investment in a company involved in the development of novel drug delivery systems.
(©www.engineeringnews.co.za)

SA defence parastatal to restructure by June
South Africa hopes to conclude separate strategic partnerships between its Denel Aerospace Group, Britain’s BAE Systems and Turbomeca of France by the end of June, officials told legislators.
(©www.engineeringnews.co.za)

R65m rail wagon export to Mauritania
A division of Johannesburg-based Dorbyl, RSD, will start work shortly on a R65-million contract signed with SNIM, of Mauritania, for the design, manufacture and commissioning of 150 iron-ore wagon bodies.
(©www.engineeringnews.co.za)

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HOUSING NEWS AND LAND ISSUES
 
ON
SUSTAINABLE DEVELOPMENT

1-3 May 2002
Sandton, South Africa

The convention is a joint initiative organised by the:
Association of SA Quantity Surveyors (ASAQS),
SA Association of Consulting Engineers (SAACE),
SA Black Technical Allied & Careers Organisation (SABTACO),
SA Institute of Architects (SAIA) and
SA Institute of Civil Engineering (SAICE).

Click here to register


Can you help to STEEL THE SHOW?
Hannelie Coetzee, Photographer, has invited Architects working with re-used steel to contact her to assist her to take part in a photographic competition. Her approach is to capture the ingenuity of re-used steel in architecture with an innovative eye. The competition "Steel the Show" aims to show that the re-use of steel is environmentally wise. Steel lends itself to being used more than once before eventually re-melting. (Re-use of steel does not refer to the re-melting of steel). The photographs will be exhibited by the South African Institute of Steel Construction (SAISC) at the time of the Earth Summit on Sustainable Development later this year. For more information please contact Hannelie on 082 810 1835 or hannelie@greatstock.co.za
National Architectural Competition Freedom Square, Kliptown, Soweto
The Johannesburg Development Agency (JDA) invited architects, other professionals in the building environment and any persons who believe they have ideas to contribute to enter the national competition for the development of Freedom Square. Freedom Square was where the Congress of the People met in 1955 to discuss the terms of the Freedom Charter. The SA constitution owes much to the concepts expressed in the Charter. The meeting in 1955, on an open piece of land in Kliptown, is therefore of profound importance. Registrations take place between 22 April and 13 May 2002, submission of entries by 18 June 2002, and the announcement of the winner takes place on 26 June 2002. First prize = R 300 000.00 second prize = R 200 000.00 third prize = R 100 000.00. Requests for registration and other details must be faxed or e-mailed to : the Competition Administrator, (011) 646-9643 e-mail hprins@accessweb.co.za
Concrete Manufacturers Association
invites entries for the 2002 Awards for Excellence competition. The purpose of the awards is to recognise excellence in the aesthetic and creative use of masonry, block paving, roof tiles, retaining blocks and floor slabs and to honour those involved in the design and construction. Closing date for entries is 31st May 2002. Further information available on (011) 805-6742 or e-mail cma@cis.co.za
International Design Competition:
Get inspired and design the 1st Art Case Piano of the 21st Century. The winning creative vision/design will be created in the workshops of Maximiliaan’s House of Grand Pianos and unveiled as a signature art piece during a month long celebration of design and architecture at DCOTA, the world’s largest design centre campus. Deadlines for submission is 15 May 2002. See www.dcota.com for entry form. For inspiration go to www.pianomax/com
Thanks to PIA for the information

Land rights draft bill draws concern from some quarters
Government is planning to have the controversial Communal Land Rights draft bill ready for publication in the Government Gazette in June, but some organisations remain concerned that "fundamental issues" are not being resolved.
(©www.bday.co.za)

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NEWS FROM AFRICA
 

Concerns raised about Chad-Cameroon oil project
The construction of a proposed $3,5-billion Chad-Cameroon oil development project has hit a major setback as a US Congress subcommittee on Africa met last week to discuss the effects of the project on both the environment and the people of the world’s poorest continent.
(©www.engineeringnews.co.za)

Land resettlement in Namibia is too slow'
The Namibian government's land resettlement programme is poorly planned and being implemented too slowly, says an independent study on land reform in the country.
(©www.bday.co.za)

Mugabe's cronies snatch prize white farms
President Robert Mugabe's cronies are moving in the wake of the marauding veterans to grab prime commercial farms for themselves, giving the lie to Mugabe's claim that he is dispossessing white farmers for peasant resettlement.
(©www.iol.co.za)

Zimbabwe cheers block of rights probe
Zimbabwe has welcomed an African-led vote that blocked a European Union (EU) call for United Nations (UN) human rights investigations into the southern African country.
(©www.bday.co.za)

Zimbabwean militants target Indian property
Government-backed militants have threatened to seize property owned by members of Zimbabwe's Indian community, who they have accused of being "economic looters", unless they hand it over to blacks.
(©www.bday.co.za)

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MINING NEWS

A practical example of how willing partners get it right
Working on equal terms with each other prevents dependency. Tension was running high three years ago between locals and Placer Dome, a Canadian mining company, over its joint venture to mine gold at Las Cristinas in Venezuela's Bolivar state.
(©www.bday.co.za)

Sibiya wants Harmony to set record straight
Gordon Sibiya, a former nonexecutive director of Harmony Gold, has lambasted the gold mining company for its "indecent" handling of his removal from the company's board.
(©www.bday.co.za)

Gauteng gold miner plans $14m capex
In an effort to boost gold production, Gauteng miner Durban Roodepoot Deep (DRD) plans to raise capital expenditure to $14-million next year, chairperson and CE Mark Wellesley-Wood reported yesterday.
(©www.miningweekly.co.za)

Investors applaud gold hedge cutting
Gold miners are getting a pat on the back from investors for a nice piece of housekeeping – trimming their hedges, analysts said. ‘Hedge cutting’ has been hailed as good husbandry and has helped sparked the gold price close to its highest level in more than two years and led to a surge in gold equity stocks.
(©www.miningweekly.co.za)

China zinc output curtailed by concentrate squeeze
China’s monthly zinc output will likely stay at a low 150 000 tons through the second quarter due to a concentrate squeeze and dismal treatment charges, industry officials and analysts said.
(©www.miningweekly.co.za)

Mine water project comes to a standstill
The rising water table poses one of the biggest threats to the mines on the Rand, with an ever-increasing risk of flooding and the potential impact of decant water on the environment.
(©www.miningweekly.co.za)

Gauteng zinc refinery looks to the DRC for concentrate
One of the lowest-cost zinc producers in the world, Zincor, of the East Rand, is investigating the possibility that the Kipushi zinc-copper mine, in the Katanga province of the Democratic Republic of Congo (DRC), will be a future source of the local refinery's zinc concentrate.
(©www.miningweekly.co.za)

African projects aplenty for UK shaftsinker
Wholly-owned by AMCO Investments, a UK-based company, Shaft Sinkers is thought to be Africa's most experienced international contractor in shaftsinking, mining contracting, construction, large underground excavations and tunnelling, MD Peet Nel tells Mining Weekly.
(©www.miningweekly.co.za)

Mines take delivery of drilling equipment
A specialist in providing cost-effective solutions to the mining industry, Hydro Power Equipment (HPE), is delivering new drilling equipment to two of its clients this month, director André Swart reports.
(©www.miningweekly.co.za)

SA platinum giant approves Canada exploration
Canadian miner Pacific North West Capital (PFN) has announced that Anglo Platinum approved a $1,25-million dollar budget for the 2002 exploration programme on the Agnew Lake property.
(©www.miningweekly.co.za)

Zambia copper mine in ownership rejig
Canada’s First Quantum Minerals said it had cut its stake in Zambia’s Mopani Copper Mines to 16,9% from 44% but would remain active on the rich Zambian copperbelt.
(©www.miningweekly.co.za)

Free State JV could become model
IT is too early to say whether or not the arrangement between Free Gold JV partners African Rainbow Minerals (ARM) and Harmony Gold over new opportunities will continue beyond October.
(©www.miningweekly.co.za)

Marula platinum project, Limpopo
Impala Platinum in a joint-venture with Mmakau Mining and a consortium representing Limpopo Province communities is developing a platinum-mine which will produce 100 000 oz/y of platinum during the initial phase.
(©www.miningweekly.co.za)

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NEWS FOR ESTATE AGENTS AND HOME OWNERS
 

Rich rewards in rental homes
Many in the residential property industry are starting to bemoan the effects of rising inflation and higher interest rates, but those who are invested in rental units are reaping rich rewards.
(©www.property24.co.za)

Spotlight on: Port Elizabeth
Port Elizabeth has had a sizzling summer, according to estate agents around the city, who say the heat in the local property market has been turned up by an influx of investors and holiday-home buyers.
(©www.property24.co.za)

More care needed in pricing now
Two interest rate increases since the start of the year have apparently done little to dent the demand for homes, but they have definitely affected affordability.
(©www.property24.co.za)

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Visit our new online Webshop for some incredible bargains.
Limited quantities of selected software reduced by 50% and more!
The Webshop also stocks all JBCC documentation.

Are we heading for a buyers’ market?
Since early January, estate agents around the country have been complaining of a severe shortage of stock as the demand for homes continued to outstrip supply and listing times shortened dramatically in a typical sellers’ market.
(©www.property24.co.za)

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PROPERTY LINKS
Gauteng property price index ABSA housing review - 3 : 2001
Building statistics Home loan market share
Income and expenditure of households Tourism and migration
Calculators Transfer costs
House Hunting Tips: What to look out for
 
SPECIAL REPORTS
 

Tight Squeeze
Lenders often overlook retail properties, preferring to channel funds to the more popular office, apartment and industrial sectors. More
Also take a look at:
LEASE LANGUAGE: Lease cheat-sheet for rookies
What a novice small-shop developer needs to know from an experienced retail broker.
Architects should read:
RETAIL DESIGN TRENDS: Real simple
(©www.industryclick.com)

What does the law say?
Contractors are sometimes handed a reduced payment amount for works executed, such payment being issued under the term "full and final settlement of your account". What are the consequences if the contractor accepts such payment? (Note: click on the link and scroll down the linked page to find the article)
(©www.projectpro.co.za)

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ECONOMIC INDICATORS
 
The indicators as on
April 27 2002 at 12:55AM
This week
21/04/02
Rand/$
10.5700
11.0800
Rand/£
15.3973
16.0328
Rand/€
9.5289
9.8745
R150
12.010%
12.350%
Gold/oz
$311.10
$301.90
Gold index
3091.9
2946.4
JSE All Share
11159.6
11418.4

Closing prices:
BUILDING, CONSTRUCTION AND ENGINEERING

Back to Index

Petrol might go up by 30c
Another shock lies in store for motorists on the first day of next month, when the petrol price is expected to increase by just under 30c a litre.
(©www.news24.co.za)

Rand firms further to 10.57/$
The rand strengthened further on Friday evening after breaking through key levels earlier in the day. By 23:00 the currency traded at 10.57 to the US dollar.
(©www.news24.co.za)

More payments from Saambou
Saambou's curator John Louw says he will release a further portion of interest on frozen accounts to the bank's customers. Conditions apply to the withdrawals.
(©www.news24.co.za)

   
ASAQS NEWS
   

The South African Building Professions : Survival of the fittest
Talk presented by Dr C P de Leeuw at the prize giving function of the Department of Construction Economics of the University of Pretoria.
(©www.delqs.co.za)

Conditions in the building industry at a glance
The above table was produced by Industry Insight. To read the full report click here.
(©www.industryinsight.co.za)

Moving on
Neville Hallett has dropped a note to let us know that he will be moving on to Doha, Qatar, on 1 May. His e-mail address remains the same. We wish him and Louise the best of luck.

Large number of workshops added
A large number of project-related workshops and training opportunities have been added to the Calendar during the past week. To view them browse to the ASAQS Calendar.


New members to the ASAQS CUG
A warm word of welcome to the following members who have joined us in the CUG during the past week:


Names to be announced next week

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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Did you hear?

A self-made man?...

A young man asked an old rich man how he made his money.

The old guy fingered his worsted wool vest and said, "Well, son, it was 1932.
The depth of the Great Depression. I was down to my last nickel.

I invested that nickel in an apple. I spent the entire day polishing the apple and,
at the end of the day, I sold the apple for ten cents.

The next morning, I invested those ten cents in two apples. I spent the entire day polishing them and sold them at 5:00 pm for 20 cents. I continued this system for a month, by the end of which I'd accumulated a fortune of $1.37.

Then my wife's father died and left us two million dollars."



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