SA's latest statistics on the value of recorded building plans passed for the private sector may indicate an economic shift to the south of the country, according to Bert van den Heever, past president of the Association of SA Quantity Surveyors (ASAQS).

The reality is that economic growth in the Western Cape could be driven more by semigration (people relocating from other provinces) than by real new economic growth, according to Deon van Zyl, chair of the Western Cape Property Development Forum.

"What is desperately needed is investment that will lead to job creation. Property development remains a bellwether industry, reflecting the economy at a point in time. Investment is a direct response to confidence,” commented Van Zyl.

The draft regulations have just been published (1 December 2017) and interested parties have 30 days to submit written comments.

In brief, the regulation provides for a Best Practice Fee of 0,2% of the total value on the date of award of that project on Grades 7 to 9 (i.e. currently on projects exceeding R13 million) To read the discussion document on the regulation please click here.

Reports* of construction sector confidence plummeting to a 17-year low should not be the reason for investors and developers to lose complete faith in the industry, according to the Building and Property Economics Committee of ASAQS.

“Low confidence in the construction sector is a cause for concern due to the impact on investment and risk,” says James Hanley, chairman of the committee. “The built environment is however known for being cyclical, and these cycles last approximately three years.”

While sensible business planning and building up reserves in their practices are the standard recommendation during times of high confidence and investment, built environment professionals tend to be at the mercy of the market.

What is needed to smooth out the cycles, are better governmental planning and longer-term infrastructure  commitments that enable the sector to respond and build capacity. “If the past is anything to go by, the industry will start to improve soon,” says Hanley. “The construction industry normally lags the general industry by about six months, so improving conditions in the general economy tend to influence the cycle accordingly.”

The committee also warns against aggressive fee discounting that adds additional pressure to professionals such as quantity surveyors. This practice not only threatens the livelihood of individuals, but undercuts the reputation of an entire sector as a severe reduction in fees can easily create a perception that is disproportionate to the real value of a service.

“Fee discounting is at best a poor business decision, and at worst anticompetitive,” warns Hanley. Professionals who portray low confidence in their own skills through a willingness to undercut standard industry fees are doing more damage to the sector than macroenvironmental factors.”

To read the full article please click here

* FNB Bureau of Economic Research Civil Confidence Index (indicating the percentage of civil engineering contractors who are satisfied with prevailing business conditions).

Dear ASAQS member,

In a membership organisation as large as the ASAQS, with our thousands of members globally involved in a wide and diverse range of projects and commercial activities no one –not even the ASAQS – can ever hope to see the entirety of where quantity surveyors leave their indelible mark on our world.

Whether we like it or not, our profession – and each one involved in our profession – is interdependent and all our lives are quite interestingly, for one reason or another, intertwined and directly involved in the QS profession. Our thoughts can no longer afford to be just of ourselves and our own well-being.

What we as the ASAQS can say with certainty, is that there has never been a more significant time in the history of our profession where the demand for a diversified skill set amongst our professionals has been so desirable. In the ever-increasing competitive environments that our professionals are finding themselves, our association is witnessing a growing and pleasing trend towards our QS firms being able to deliver a far bigger suite of services to their clientele than ever before.

Further technological developments will continue to force QS’s to evaluate how to cost-effectively separate themselves from their competitors, and in so doing, provide their enterprise with a competitive edge. Viability studies, property evaluation, life cycle costing, BIM and sustainability costings are just a few of the many services now being routinely offered.

In uncertain and fast developing nexus points in the commerce and business timeline, we often turn our attention towards leaders and leadership to cut through the background noise, get to the heart of the matter and provide a strategic solution or at the very least a strategic direction that brings about guidance, comfort and confidence.

In this instance, I cannot but encourage all of our professional QS’s to take as much time as necessary to place themselves ahead of the curve when looking towards the future technologies that our firms and indeed the built environment will be leaning on more and more heavily in the coming years. BIM is here and it aims to revolutionise our understanding of how professional teams interact. Where will you be in 5 years time? Where will you be in 10 years time? Playing catch-up or confidently providing services that your very competitors will sure to be employing?

When reflecting on the membership activities of our association I am especially proud by what has been achieved by the ASAQS team this year. Building on the solid CPD and training foundation that has been built by our EduTech division, our association has now provided over 100 CPD courses nationally. Our annual conference has continued to deliver on uncompromising quality versus cost and has now grown to include a gala dinner. I look forward to bringing our annual flagship event to our Mother City during 2018 and with help from our local Cape Town Chapter, the ASAQS will for the first time be delivering our annual conference in the Western Cape.

We have released numerous crucial technical documents for our profession and will continue during 2018 to provide even more. Year on year we are incrementally reviewing, updating and releasing a huge part of the technical body of knowledge of our profession. Every single person involved either directly or indirectly in the quantity surveying profession stands to benefit by this massive investment of ASAQS resources.

Our association is once again showing very pleasing membership results with 92% of all members having already paid their annual membership subscription fees. This is a continuing trend from 2016 that also saw a final collection percentage in the 90’s.

Marketing the QS profession has seen a profusion of quantity surveying articles and opinions being published in trade magazines and newspapers. Strategic marketing investment during 2018 will be directed towards students and younger members, without losing sight of the gains already made over the last few years in publicising and giving a voice to our profession.

I would be remiss to not also address the challenges that we see our members and the built environment face on a daily basis, and share some insights on where we see the market moving in short term future. 2018 will be the year that Quantity Surveyors – and other professions in the built environment – create and adopt solutions that secure their relevance and is to the long-term benefit of the entire country.

With economic pressure that is not forecasted to lift anytime soon, built environment professionals will have to settle on a method that embraces the calculation of fees based on time spent and value offered, rather than offering ever-increasing discounts from a scale of fees that has become irrelevant.

The ASAQS continues to advocate for the appointment of a professional team – regulated by relevant Professional Bodies – to all public infrastructure projects that are awarded through tender. This will help a great deal in ensuring that public infrastructure spend is applied to the benefit of the greater South African public.

The basket of services that a registered professional Quantity Surveyor should be offering clients must change. As important as Bills of Quantities are, it should not be viewed at the be all and end all of services offered by a Quantity Surveyor. I encourage you to make 2018 the year in which you and your firm start offering – or become better at – some of the many additional valuable services that should be available to clients.

I would like to extend a heartfelt thanks to each staff member, volunteer, sponsor, advertiser, partner, and supporter that continue to provide value for our members. Thank you also to every ASAQS member for your continued support and faith in us.

On behalf of the ASAQS team I wish you a peaceful end of the year with lots of time for relaxation and recharging to make the best of the opportunities that lie ahead in 2018.

Yours sincerely,

Larry Feinberg

The Gazette Notice will be published by the Government Printing Works and available to the public on Friday the 08 December 2017. It is important to note that there is no TRANSITIONAL PERIOD provided for in the ACSC. This therefore means that the ACSC will be applicable immediately on gazette.

The Construction Sector Charter Council has issued a statement in this regard, which is also linked in for your attention.

Fortunately, the ACSC does not introduce any substantial changes and/or differences from the version that was published for public comments for 60 (sixty) days in October 2016, except that a number of changes in the measurement, verification and monitoring principles have been introduced.

We urge you to read the above linked attachments to see how the new charter will effect you.

The reasons are as follows:-

• The board has previously decided to schedule 3 board meetings per year. They have already met twice and if the board were to convene on the 15^th of November (for the third and final time) the next board meeting would then need to be scheduled in June 2018, when during this meeting the next ASAQS president is elected.
• Although of enormous benefit for our board and association, the 2 day strategy session at the beginning of the year has placed much pressure on the budgets allocated towards board meetings for the current financial year. There were large expenses associated with this board / strategy meeting.
• As decided by the board, Head Office is currently developing a board induction “booklet” that describe in detail the requirements to serve as an ASAQS board member. We are also detailing and mapping all board governance policies and requirements. At the end of this complex project the consultant will need to meet with the board and present the policy documents for final input by the board. This will be done during the next third and final board meeting now scheduled to occur in the first quarter of 2018. The exact date of the meeting will be confirmed next year.

Both the President and the Executive Director apologise if any inconvenience is caused by the lateness of this cancellation notification. Should you have any concerns or would like to clarify any further aspects, you are welcome to call either the President or ED.

Less than half of the salaried personnel (45.2%) surveyed amongst the participating firms had less than 5 years’ experience, while 66.7% had a university qualification.

The survey is available here.

The latest Building Surveying Journal December 2017 – January 2018is available from the RICS website.

Barney Hatt, the editor says: " In this issue, RICS Global Building Standards Director Gary Strong reviews our own policy initiatives since the (Grenfell Tower) fire, including plans to develop an international standard on fire safety and a government-backed national register of fire risk assessors with other organisations.

Elsewhere in the edition, we take up the theme of dilapidations, with Paul Spaven reporting on the RICS Dilapidations Forum Conference, Jon Rowling clarifying the meaning of supersession and Vivien King looking at RICS’ dilapidations disputes resolution scheme.

In other pieces, William Glassey and James Morris consider the RICS Conflicts of interest global professional statement, encouraging members and regulated firms to have appropriate procedures in place by 1 January, James McAllister and Stuart Frame unpick the complicated context in which surveyors operate when they offer legal advice, Trevor Rushton scrutinises the performance of cladding systems, and Laurence Cobb weighs up the pros and cons of insurance-backed guarantees."

It was a wonderful day filled with top class golf, good times and great networking, by all. The ASAQS KZN Chapter, along with all who participated, really made an exceptional investment in an day filled with purpose and prosperity.

As this was not only a day of golf and networking, but a way to give back, we invited a group of learners from one of the disadvantaged special needs school- who are some of the beneficiaries of the day- to display their extraordinary musical talent and treated the guests to an astonishing xylophone performance.

The prize giving dinner went off with a bang and Durban Solid Waste (DSW) graciously performed a skit at the prize giving dinner, enlightening the organisers and guests on the importance of water preservation, and keeping communities clean. Smiling faces and proud champions surrounded the room.

An astronomic THANK YOU goes out to all participants and sponsors, the day would not have been possible without you! Our gracious sponsors consisted of: Grinaker, Knittex, Pro Group, Magubane Plant , Yimpie Projects, Corobrik and Malnormags and Makhathini Projects, Sewja Construction. Branding was done by Big Eye Branding and catering by Bleu Berri.

The ASAQS KZN Chapter, again, would like to thank everyone who supported and made the awareness and fundraising possible. We hope for an even bigger and better one next year.

Why do you think there were no Mulligans in the KZN ASAQS Golf Day : forward your responses to The Organisers (by clicking here) together with your name and a contact number and find out next week who the two winners and what the mystery prizes are.

See you next year!

DO YOU SPOT YOURSELF IN ONE OF THE PHOTOGRAPHS?

We hope to see you all again next year!

Want to experience what it will be like to push a button and get a flight with uberAIR? Keep watching. pic.twitter.com/rRnj68Vs9j

A global leading provider of software solutions for project-driven companies is available in South Africa but let’s take a look at who’s behind the software and the importance of embracing technology.

Kiewit is known as one of the world’s top construction firms. What is less well known is that they’ve diversified into software development.

InEight is the company’s wholly owned subsidiary and offers HD Suite a group of software programs covering the gamut of back office and field solutions for all sizes of companies in the building, infrastructure, mining, oil and gas, and utility industries.

So why would a $9-billion, global construction company diversify from dirt and diesel into digits?

“We did an internal study and looked at the top 500 construction companies from 1965 and compared that list to the top 500 companies in 2015,” says Chris Dill, vice president of Kiewit Technology Group.

“What we found was startling – 450 of 500 who were on the list in 1965 were gone in 2015,” Dill says. “Not off the list…gone.” Dill made his remarks as the closing keynote speaker at this year’s Trimble Dimensions conference, and in a follow up interview with Equipment World.

Kiewit dug into the details and found three primary causes for the demise of 90 percent of the country’s top construction companies.

• Change. They failed to recognize what was going on around them quickly enough to address it and mitigate the challenge.

• Innovation. They failed to adopt and use technology.

• Risk. They took on projects that went drastically over budget.

But Kiewit is also keeping its eye on the challenges of the future, Dill says, including:

• A global population of 10 billion by 2050. The construction market needed to serve this population will grow to $15 trillion a year – a great opportunity, but only for those companies with the systems, efficiency and technology to support exponential growth. 

• Construction’s lack of productivity growth. “Construction is disjointed and geographically dispersed,” Dill says. “Communication and connectivity across the construction supply chain is a real challenge – and it’s only becoming more complex for our industry.”

• Public-Private-Partnerships (P3s) and the changing relationship with project owners. In the past, construction companies built the project, cashed the check and moved on. Financing, engineering, operations and maintenance were done by somebody else. Today, those lines are increasingly blurred, especially with P3s, where the contractor may finance or partially finance the project, design and engineer the structure, and then perform the maintenance and upkeep for up to five decades.

Pushing out paper

Well before the creation of its software subsidiary InEight, Kiewit was an industry leader in the adoption of technology. In the past few years the company moved aggressively to eliminate as much paper as possible from their processes.

“In 2010, we did over two-million visual equipment inspections on paper and processed one-million time cards,” Dill says. “We had trailers full of people processing that paper.” Kiewit realized its business could not evolve with the market as long as it relied on inefficient paper systems.

In 2011, the company launched a massive initiative to modernize its processes and eliminate paper. “Now what you see on our jobsites is a lot of supervisors and foremen walking around with iPads in their hands,” says Dill. Communication between the office and the field becomes instantaneous and actionable at any level, helping everybody make good decisions without delays.

A single source of truth

Kiewit had also been an early adopter of third-party process management and back office software. “We had great solutions that did an excellent job,” says Dill. “The problem was they were largely single point solutions. They were used within a discipline, and those disciplines got value from them; but that information was not used in any larger context where we could paint a broader, more complete picture of what’s going on across a complete job or the entire portfolio.”

Looking for a more holistic approach to information, Kiewit began building its own software solutions to create what Dill calls “a single source of truth” that would link the all the office functions to all the field functions. And with multiple subcontractors to coordinate, the company also shared the software with its partners. Out of this endeavor, the InEight subsidiary was born.

By contractors for contractors

Originally created for internal use, the software developed into a suite of products to cover the full scope of Kiewit’s operations. And rather than keep it to themselves, Kiewit created InEight to sell this same software to the construction market at large, billing it as construction software built by a construction company.

“Everything InEight produces is field tested by Kiewit,” says Dill. “It is cloud based and completely separate from Kiewit in every way.”

The InEight project portfolio gives you the systems you need to run a capital intensive project from inception to decommission, says Dill.  Everything from forecasting, estimating and budgeting to vendor and subcontractor coordination, equipment management, project management and turnover on the back end. It works with mobile devices for daily work planning and time capture. And it can be configured to integrate with your existing ERP and back office programs. The newest component of the InEight project portfolio is a model data manager that enables you to integrate 3D BIM models with project schedules, procurement, cost and other data.

The expandable portfolio is geared to support the sophisticated needs of large companies, but the role-based subscription pricing is aimed at the local contractor, Dill says. “On the small-to-medium end of the market we see consumption of individual solutions. On the large end we see more consumption of the entire portfolio,” he says. Pricing depends on the number modules you choose and the number of users you license. For more information on the software go to www.pcmpartner.com

One of our members in the Eastern Cape, Matthew Hofart, tried to use the simulator on a project that started in 2016 and got unexpected results. This was because the simulator was set to only calculate leap years from 2020 onwards.

The bug has been fixed and the version 2.01 simulator can now be used on projects with start dates after 2012.

Download the latest version and use it to enhance your cost-reporting. The simulator compares the current expenditure on a project with theoretical expenditure based on a standard s-curve and then predicts the completion date based on a linear regression of the expenditure to date.

Why use an s-curve? It's an important project management tool that allows the progress of a project to be tracked visually over time. To find out more uses of the s-curve watch the video on this page. By watching the video you will also learn about more sophisticated uses of the s-curve such as "banana" curves based on the early- and late dates of the schedule and how this is used to keep tabs on project progress.

The new Cash Flow Simulator 2017 version 2.01 is a basic tool which is especially useful in circumstances where the contractor cannot produce a proper schedule indicating the critical path of the project. It is available from the Sundries section of the Members Only CUG. Members can use it freely and firms are allowed to co-brand it by inserting their logo's along with that of the ASAQS on the simulation page.

Please note that the simulator may not function as intended on older versions of Excel. The Excel workbook was zipped in order to load the .xlsm file into the file library and members will have to unzip the file before use. We also strongly recommend that you read the instructions before inputting your own data into the simulator.

We look forward to hearing from you after using the simulator and will be guided by your suggestions in future enhancements and improvements to the simulator.

IOL reports that the murder of Absa Bank regional manager and former Shimlas rugby captain, Pieter Verster, has sent shock waves through Stellenbosch hot on the heels of the protests over the murder of a farmer in nearby Klapmuts. Verster was overpowered in his home in Brandwacht, Stellenbosch, while his son was stabbed in an apparent home invasion.

We carry the Verster family in our thoughts and prayers during their time of mourning.

The value of recorded building plans passed for the private sector (at current prices) decreased by 2,4% (-R1 759,1 million) during January to August 2017 compared with January to August 2016.

Non-residential buildings fell by 14,3% (-R2 769,5 million) and additions and alterations rose by 7,4% (R1 294,4 million).

Although Gauteng remains the biggest contributor with 37,5% of the total value of building plans passed compared to the Western Cape's 25,1%, Gauteng also showed the largest negative swing when compared to last year's figures, with the value of plans passed decreasing by a whopping -R3 438,5 million!

The graphic above (which is not to scale), illustrates how the Western- and Eastern Cape helped to set off this dismal performance in Gauteng by showing major increases in the value of projects at planning stage. The value of plans passed in the Western Cape rose by +R1 746 077 million from +R18 061 495 million to +R19 807 572 million a growth of 9,7% compared to a year ago.

Chris Steffen, ASAQS board member and director of Talani Quantity Surveyors in Cape Town says that although the migration to the Western Cape and shortage of housing has been driving growth, there are other factors such as the DAMS IT platform that could have played a role in the value of plans passed.

The DAMS (Development Application and Management System) IT platform, where plans submission and processing is online, has created greater efficiency as has the recent change in a bylaw where officials are held accountable and kept to timelines for plans approvals.

Chris says that spatial development frameworks have been introduced to encourage and fast track development.

Deon van Zyl, chairman of the Western Cape Property Development Forum, cautions; "The reality is that our economic growth in the Western Cape is perhaps being driven more by semigration than by real new economic growth. At a medium and long term perspective I am concerned about the slow pace of new EIA applications at a Provincial level.  EIA applications tend to identify the larger developments (> 5ha triggering the National Environmental Management Act) that are in the pipeline.  We are not seeing a growth in new applications"

Van Zyl continues; "What is desperately needed is investment that will lead to job creation.  Property development remains a bell weather industry reflecting the economy at a point in time.  Investment is a direct response to confidence.  The Provincial and local governments’ attempts to practice and reflect clean governance do assist in generating confidence in the Western Cape.  What we desperately need is confidence in the country."

The Eastern Cape's figures are surprisingly high and built environment professionals in that province should be smiling as the value of plans passed increased by a staggering 53,5% compared to those recorded a year ago. The value increased by +R1 509 465 million from +R2 821 451- to +R4 330 916 million.

Will this increased growth in the Eastern Cape be sustainable in the long run? Only time will tell.

Other provinces showed decreases in real terms. In fact, the real value of recorded building plans passed in South Africa (at constant 2015 prices) decreased by 7,9% (-R5 402,4 million) year-on-year during January to August 2017. The largest percentage decrease was recorded for non-residential buildings (-19,5% or -R3 607,6 million), followed by residential buildings (-6,2% or -R2 061,9 million)

The table below sums up what has happened over the past 8 months:

It's normal that people try to mitigate their risk during trying- and uncertain economic times by rather spending money on fixing up existing property than splashing out on a new-builds. The latest figures support that view by reflecting a +7,4% rise in alterations and additions compared to a -14,3% dip in non-residential buildings.

But all is not doom and gloom as the seasonally adjusted real value of recorded building plans passed increased by 20,2% in the three months ended August 2017 compared with the previous three months. Increases were recorded for non-residential buildings (67,3%), additions and alterations (9,1%) and residential buildings (8,9%). Building plans passed are a strong indicator of the future health of the construction industry as a whole. And the latest figures indicate that we could be coming out of the doldrums. Let us hope that political upheavals don't capsize the boat between now and the coming new year.

The information above was garnered from Statistical Release P5041.1, selected building statistics of the private sector as reported by local government institutions (preliminary).

Report compiled by Bert van den Heever

To download P5041.1 click here.

Speaking about his R125 000 win, Punwasi who works for the Western Cape Provincial Government’s Department of Health in security management explains; “I am not an engineer, my wife is the engineer and she gets monthly magazines that I often read. I saw the competition announced in the Civil Engineering SAICE magazine and decided to enter myself for the fun of it and to see how easy the app was to use…which it was!” Amrish and his wife have been to Paris before on short trips but are both really looking forward to seeing the Eiffel Tower again with their newly gained insight into its true structural costs.

Runner up Marichen van der Westhuizen was really surprised to win a premium Chad-o-Chef stainless steel gas braai in the Sassda LCC competition. Marichen is a senior faculty member at the Huguenot College in Wellington and has a PHD is in social study research. She is married to Wynand van der Westhuizen, an engineer at a sassda member company, HG Molenaar, in Paarl. Marichen learned about the app from her nephew and completed it with Wynand’s assistance. She says she really enjoyed the prize giving event without any thought of winning, until her name was called out. As she likes cooking and experimenting with food, but not making fires, this prize comes as an exciting new addition to her kitchen.

Net Benefits of Sustainable Construction

Congratulating all the competition entrants, sassda Executive Director, John Tarboton said; “We developed the app specifically because the calculation of the long-term cost benefits is a complicated process - influenced by several complex factors such as the cost of capital, net present value and discounted cash flows. “While engineers do consider these costs, they are not accountants and it became clear that a tool was needed to simplify the process and allow for accurate material cost comparisons over the entire life-cycle of a project. We are delighted that our app is accessible and can be used by ‘non-engineers’, such as our winner Amrish Punwasi!”

The app is freely available from the Google Playstore and the Apple App Store and Tarboton highlights that it can be used to compare the life-cycle costs of a variety of construction materials, making it applicable across the consulting engineering and quantity surveying industries, as well as potentially in other sectors such as aluminum. Due to the success of the app’s capabilities, sassda is considering holding a life-cycle costing competition, every two years to continue proving the value of stainless steel over the long term and strengthen demand for the material in architectural and structural applications.

The requests for quotation carefully specifies the valves, solar geysers, equipment, etc. required by the "department" and if you Google the item you will find that it's available on two or more websites hosting classified adverts such as Gumtree, Locanto, ADZA, etc.

So how does the scam work?

You contact he company or person who has the item you are looking for and get a price, add your mark-up and submit your tender. Soon after the tender closing date you are awarded the supply contract and when you contact the "supplier" they usually have a truck that is going to wherever the goods have to be delivered and will include delivery for you at no charge. The only proviso is that you have to pay them pronto.

You do a bank transfer of the R250,000.00 or more that the goods cost and from that point on things start going pear-shaped, especially when you start following up about delivery so that you can invoice the "department". You soon realise that something is seriously wrong. Addresses are fraudulent, telephones are no longer answered and suddenly everything goes up in smoke, leaving you with a huge dent in your bank balance.

The only reason I am receiving so many of these e-mails is that the scam must be working and that honest people are being defrauded daily... please do not be one of them!

To all the scamsters out there: I wish that James Veitch catches up with you!

Watch this Youtube video to see what I mean: This is what happens when you reply to spam email | James Veitch

Posted by : Bert van den Heever

The UJ Centre for Cyber Security have a website well worth visiting.

This page hosts a list of security related software and articles that could aid with providing a safer computer usage experience. Some of the software packages discussed here, offer free editions, in most cases the link to the free version will also be available from this website.

He said that the CSCC and the industry as a whole was encouraged to read in the press recently that the Minister of Public Works supported gazetting the Construction Sector Codes and committed the department in driving the transformation of the industry further.

He went on to say :"Following many months of alignment negotiations of the amended construction sector code, the CSCC then submitted the draft construction sector codes for gazette in terms of Section 9(5) of the BBBEE Act for 60 days public comments and inputs. Subsequently, the DTI indicated that they were satisfied that the revised construction sector code was substantially and procedurally aligned to the principles of the revised BBBEE Codes of Good Practice as prescribed by the Minister of Trade and Industry. Once concluded, the finalized construction sector code was submitted for final gazette in May this year. Despite various assurances from the DTI team, we are yet to receive the precise date of gazette."

Minister Nhleko, on receipt of the request, wrote to the Hon. Rob Davies, Minister of Trade and Industries on the 17th October 2017, asking him for an update.

We will inform you of the DTI's response as soon as we receive it.

To read the request sent to the Minister of Public Works please click here.

To read the letter that the Minister then sent to the Minister of Trade and Industry please click here.

Enhance your cost-reporting with our new cash flow simulator. It compares the current expenditure on a project with theoretical expenditure based on a standard s-curve.

It was designed by Mr Ian van Zyl, winner of our competition to find someone who could do magic with Excel.

We believe that the 2017 cash flow simulator will find wide use on government- and other projects as a simple tool that graphically indicates actual- against projected cash flows and also uses linear regression analysis to predicts the actual completion date based on current progress.

Max Wideman defines an s-curve as: "...a display of cumulative costs, labour hours or other quantities plotted against time. The name derives from the S-like shape of the curve, flatter at the beginning and end and steeper in the middle, which is typical of most projects. The beginning represents a slow, deliberate but accelerating start, while the end represents a deceleration as the work runs out."

Why use an s-curve? It's an important project management tool that allows the progress of a project to be tracked visually over time. To find out more uses of the s-curve watch the video on this page. By watching the video you will also learn about more sophisticated uses of the s-curve such as "banana" curves based on the early- and late dates of the schedule and how this is used to keep tabs on project progress.

The new Cash Flow Simulator 2017 edition is a basic tool which is especially useful in circumstances where the contractor cannot produce a proper schedule indicating the critical path of the project. It is available from the Sundries section of the Members Only CUG. Members can use it freely and firms are allowed to co-brand it by inserting their logo's along with that of the ASAQS on the simulation page.

Please note that the simulator may not function as intended on older versions of Excel. The Excel workbook was zipped in order to load the .xlsm file into the file library and members will have to unzip the file before use. We also strongly recommend that you read the instructions before inputting your own data into the simulator.

We look forward to hearing from you after using the simulator and will be guided by your suggestions in future enhancements and improvements to the simulator.

Increasingly, it is also becoming a norm for construction projects to cost 30-40% more than the original contract target price due to ‘risk pricing’.  This inevitably leads to parties arguing over the overall cost escalation instead of the successful delivery of their project. When such disagreements arise, it is better to address them early to prevent them turning into a full-blown dispute.

At this year’s Cityscape event held in Dubai, Yasmine Nashawati discussed how disputes are caused, and how best they can be resolved without spending exponentially.

Click here to read on

(© www.rics.org)

Do you wish you had a check list that enables you to ask the right questions from the architect and engineer?

Look no further than the sundries section of the Members Only CUG.

On the 15th September 2017, seventeen years later, almost to the day, we launched a competition to find an Excel magician.

Today we are happy to announce that we have found such a person in his Excellency Mr Ian van Zyl.

Ian is a 34 year old Capetonian who studied Bcom Financial Management Sciences at the University of Pretoria and who is about to finish his CIMA  qualification (Charted Institute of Management Accountants).

Ian is the Financial Manager at Innes Projects (a high-end residential construction company) and loves stand-up paddle boarding.

When asked how he became a proficient Excel user, Ian answered: "..over the past 7 years I have taught myself the ins-and-outs of Excel. I was always fascinated with Excel and saw the potential it has to build financial models to help assist with strategic and financial business decisions. I have used Excel in many areas of a business to consolidate large amounts of data to build useful and meaningful dashboards. I have an absolute passion for building Excel models and take great pride in presenting them to people."

We believe that the 2017 cash flow simulator showcases what can be done with Excel and that it will find wide use on government- and other projects as a simple tool that graphically indicates actual- against projected cash flows and also uses linear regression analysis to predicts the actual completion date based on current progress.

The new Cash Flow Simulator 2017 edition is available from the Sundries section of the Members Only CUG. Members can use it freely and firms are allowed to co-brand it by inserting their logo's along with that of the ASAQS on the simulation page.

Please note that the simulator may not function as intended on older versions of Excel. The Excel workbook was zipped in order to load the .xlsm file into the file library and members will have to unzip the file before use. We also strongly recommend that you read the instructions before inputting your own data into the simulator.

We look forward to hearing from you after using the simulator and will be guided by your suggestions in future enhancements and improvements to the simulator.

At the start of their careers, few construction site managers realise that they will need to be part magician, part musical conduction and part superhero. Effective construction site management requires a broad range of skills, from technical expertise to leadership, negotiation, team building, communication, and everything in between – but few construction site managers are equipped with these skills when they arrive on site.

Deon van Heerden, Alusani® Course Leader, says that empowering yourself with the required tools, knowledge and skillset can help overcome a number of challenges that are typically experienced on construction sites. Some of these challenges include improper risk management systems, poor communication, dealing with tight deadlines and lack of engagement from all stakeholders.

“Risk tolerance, for example, is a desirable trait for a construction site manager because projects rarely go exactly as planned. Having the right skills to manage quality, cost, scheduling, disinterest from certain stakeholders or vendors, and dealing with declining morale thanks to impossible deadlines can not only boost your risk tolerance, but it will help you develop contingency plans to deal with problems if and when they arise. Many construction site managers simply haven’t been exposed to adequate cost control, quality control and materials management systems, which are crucial to successfully completing a project in time,” says van Heerden.

Another important skill that is often lacking in the sector is proper site planning and layout. If this isn’t done properly, then everything from material delivery to site access for all the workers can quickly become a problem that will fall into the construction site manager’s sphere of responsibility.

“Construction site managers, site supervisors and team leaders can gain priceless insights from attending a course on construction site management. Besides learning new ideas and approaches to making their projects more effective and efficient, they also benefit from networking with other people in similar roles within the South African built environment. It will also help them prevent expensive time and cost implications by learning how to control the three biggest factors that impact their performance, namely manpower, materials and equipment,” says van Heerden.In the course that van Heerden presents on construction site planning, some of the topics that are covered include how to go about establishing a construction site, manage construction site teams, resolve conflict on site, why planning and scheduling is important (and how to do this effectively), document and drawing control, material management, and construction quality control systems, among other vital topics.

“One of the not-to-be-missed discussion topics that will greatly benefit construction site managers is a portion that we dedicate to health and safety regulations. There are so many different types of regulations and laws, and this course will give clear guidelines on the ones that you need to focus on specifically,” concludes van Heerden.

Van Heerden will be facilitating the Alusani® CPD-accredited Construction Site Management on 23 & 24 November 2017 at Melrose Place Guest Lodge in Johannesburg. A number of Alusani® CPD accredited courses that are held throughout the year. For more information, visit http://www.alusani.co.za/.

Case studies show that 95% of treated water leaks occur in the small diameter service pipes connecting the distribution pipes to the users’ water meters. Currently, approximately 40% of Johannesburg’s treated water supply is nonrevenue water (NRW), equating to a loss of R1.1 billion per year, of this 73.3% is lost due to pipe leakage.

Sassda Western Cape Manager Michel Basson says this is because water pipes are currently made from, or replaced with, High Density Polyethylene (HDPE), with a lifespan of 20 years, as opposed to stainless steel applications of at least 60 years. “In light of this, we currently have a test installation underway in a residential unit in Paarl where we are evaluating the installation of corrugated stainless steel tubes connected to the bulk supply line, which have been installed and covered in such a way that they can be easily removed for inspection.”

This pilot project is the initial stage of a planned joint undertaking with Drakenstein Municipality, which has been involved in large upgrades to infrastructure of water supply, sewage and roads with the current expansion of luxury estate homes along the Berg River. The initial stage has seen both dummy pipes and 316 stainless steel pipes, manufactured by INOX Systems, installed at Honey Dew Country Estate.

The potential for stainless steel water supply installations in the municipal area is potentially huge since it covers a large geographic area of populated land. Current infrastructure upgrades include the Berg River Boulevard extension which will act as an additional link for residential development from Helderberg and Stellenbosch to the N1 Paarl, Mbekweni and Wellington.

At this stage, INOX Systems is the main local manufacturer of the South African requirement of 0.3mm thick continuously corrugated piping which ensures the pipeline is strong enough to withstand both weight and road surface vibration., However, prominent members in the automotive exhaust systems industry also have the ability and capacity to produce big volumes of the tubes.

Sassda Executive Director John Tarboton comments; “Water loss on the scale we are experiencing, especially with the current water crises being experienced, has major economic and environmental implications for South Africa and other countries around the world. This year at the ISSF’s (International Stainless Steel Forum) annual meetings, the forum launched an initiative to promote the use of stainless steel water pipes. It presented an analysis of three case studies where stainless steel has been used for water pipes, drawing conclusive evidence that stainless steel is the best material of choice when considering environmental and economic considerations.”

The forum also revealed that as early as the 1970s, Tokyo started investigating a solution to its dwindling water supply. From 1980 to 2012 it replaced all service pipes with stainless steel pipes. In 1980, water losses stood at 17% and by 2012, this had been reduced to 2%. Seoul and Taipei soon followed Tokyo’s example and have since dramatically reduced their water losses with the use of corrugated stainless steel pipes.”

Tarboton continues; “Sassda is very much a part of these market developments in line with the strategy of the global ISSF projects where we have access to new applications and development-changing technology. We recently hosted a visit from international collaborators, including the International Molybdenum Association and the Nickel Institute, and together with current evaluations, we can offer solid South African evidence of the advantages of stainless steel durability and longevity over that of HDPE pipes, which are currently cracking and leaking.

“We are also working with Sasfin to look at ways of providing financing options for the installations of stainless steel service pipes funded by the savings made from the municipality through non-revenue water savings.”

Improvements in the construction process as well as the function of a building can be achieved through a highly underrated process called value management.

The value management process is ideal to improve a project’s function, streamline the construction process, highlight potential future problems and reduce capital costs as well as operational expenses in all spheres of construction: civil, industrial, mining, and energy projects, to name a few.

“Value management is a broader view of the better-known term value engineering,” explains Chris de Wet, Value Management Advisor at the Association of Quantity Surveyors of South Africa (ASAQS).“It is a process that can determine whether a different way of designing, constructing, procuring and thinking is needed.”

The process includes a complete value analysis of all components as well as the consideration of alternative material and process selection. It should ultimately result in savings and operational efficiency that ensures the client derives the most financial value from a project.

Although it is not their exclusive domain, experienced and registered professional quantity surveyors are ideally suited to facilitate the value management process.

“During the facilitation process each professional team member should be given an opportunity to present their project objectives, design ideas, and assumptions,” says De Wet. “Active participation from all attendees – team members, stakeholders, outside specialists, and the client – is crucial to the success of the process.”

The person in the facilitating role should encourage collaboration by giving everyone time to question the objectives and assumptions that have been proposed, as well as to investigate the purpose and function of various building elements and alternatives.

Each proposal can be prioritised and then evaluated based on a number of variables, such as its performance enhancing capabilities, operational efficiency, material and labour costs, and so forth, without compromising on the performance or integrity of the building.

Value management principles are not being applied as often as they should due to tight deadlines and fast-tracked construction schedules, among others. A value management approach requires that a professionals commit extra time for the strategy and integrated analysis.

“When professionals in a project team can join forces, flesh out assumptions, propose alternatives and evaluate options based on different areas of expertise, the results can be very rewarding for the entire project and ultimately the client,” says De Wet.

“When implemented effectively, value management can not only save time and money, but also identify and resolve potential future problems before they arise. It also has the ability to create closer team work, better communication, co-ordination and delivery amongst the professional team.”

For more information on ASAQS please visit:

Website: www.asaqs.co.za

Facebook: The Association of South African Quantity Surveyors