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21/11/2018

R104m debt halts building at 37 Eastern Cape schools.............

21-11-2018

Between May and November builders have walked off the sites of 37 Eastern Cape schools under construction, due to national government's nonpayment of a staggering R104m. A further R9m is owed to consultants for the projects.

This was revealed by public works MEC Pemmy Majodina in a report to the provincial legislature last week. She was responding to a question by DA MPL Vicky Knoetze.

TimesLIVE's sister publication DispatchLIVE reported that according to Majodina's report, her department of public works was still waiting for payment from the education department and will pay the builders and consultants only once it has received the funds.

Public works spokesperson Vuyokazi Mbanjwa said the service level agreement between the two departments was that public works paid contractors on behalf of education and education would reimburse them. Mbanjwa said they stopped paying the contractors after the education department failed to pay them more than R84m.

On Monday, both parties confirmed that the outstanding amount had now been paid and that public works had started making payments to the contractors.

"The department of public works has begun a process of paying outstanding invoices. The processing is done based on provincial treasury confirmation of budget availability," said Mbanjwa.

The chair for the Eastern Cape Black Contractors' Association, Sakhela Skenjana, said some of the contractors had been paid but most were still waiting.

"I cannot give the exact number, but many of them are waiting for payments," he said.

According to a list tabling the details of each of the projects, the 37 schools are in OR Tambo, Chris Hani, Sarah Baartman, Amathole, Alfred Nzo and Joe Gqabi districts.

They include Asherville Primary in Graaff-Reinet, where construction was suspended on August 17 due to an outstanding amount of R2.5m.

On the new Grens Laerskool in East London, contractors were said to be owed just over R11m.

Skenjana said the amount owed to contractors last year was three times higher.

"Last year contractors were owed more than R300m. This is very painful. The government is helping to kill the local construction business."

Skenjana said the amount was reduced after a bailout from the National Treasury. "After receiving no joy from education, we approached the ANC and the provincial treasury. Treasury then made available R400m to clean out the debt."

Education spokesperson Loyiso Pulumani said the payment delays were because of "interdepartmental reporting" challenges but gave no further details.

Mbanjwa said after numerous meetings with the National Treasury and the education department, a decision was taken by National Treasury that all money owed to contractors must be paid by public works, and that the Treasury would facilitate the reimbursement.

The head of research at NGO Equal Education, Hopolang Selebalo, said in the Eastern Cape it could take months for contractors to receive payment. "During this time, contractors pay for building material and they pay employees out of their own pockets," Selebalo said.

"Prices of materials usually also increase over this time due to inflation."

12/11/2018

"6 THINGS ABOUT INSURANCE YOU ARE TOO AFRAID TO ASK."

INSURANCE -: -

I know in the world we live in, things change on a daily basis and I am sure everyone is aware that so does your insurance.
Do you really know what you are covered for? Are you paying too much for your Insurance? And my ultimate favourite are you over or under covered -?

When searching for affordable insurance you need to ask the most important questions that you might be too afraid to ask as you may think that it is not relevant or the insurer is on top of it.

Let’s have a look at the top questions that you should be asking when looking for insurance or even query with your current insurer so you are not left in the dark when you need it the most.

"WHAT TYPE OF INSURANCE DO I NEED TO COVER ME" - ??

When sitting with your financial advisor it is always important to dive into as many questions as possible in order to get the satisfied outcome you desire.

You need to know exactly what insurance will be best for your company and will allow for you to have peace of mind that all your assets/labour are covered in any event.
Not getting the right policy might put you in a position where you will have to personally cover an accident/theft.
Present all your assets/labour to your financial advisor so they are aware of exactly what you need and let them draw up a policy that will be best suited for you.

DO NOT TAKE ANY INSURANCE OUT ON A WHIM" - !!

Do you know the Insurance Company you are buying from?
It is always good to know the insurance company’s competitors within the industry so you know the type of quality you will get from them.
Find out a bit more from the insurance company, small things might make your decision a bit easier or deter you from the company completely.
Know how they will treat you, you do not want to find out about your insurance company after it is too late and you have already spent unnecessary costs on cover with a company that did not meet your expectations.

"AFTER SALE SERVICE" - ??

Always find out from your financial advisor if they have after sales service and what they do to keep a customer happy. After sale service is very important and can help you become a long standing client and remain happy with the Insurance Company you are with. You as a customer need to know who your contact person is and if you come across any issues they will be handled professionally and on time.

Bad service = unhappy client (You do not want to get yourself in that position)

"FINE PRINT AND THE COST" - ?

Of course this will also be the breaking point for you as a potential client. You need to ensure you know all costs involved in taking out your insurance, you do not want to sign and give the go ahead and when payment is made it is not what you expected. Ending up paying for “Hidden Costs” will not help if you as a company have a certain budget and thought you were paying a certain amount but in reality that is not the case.
Always read your Ts & Cs!!

What does your financial advisor gain from you taking out insurance -?

This question is one that people stay away from mostly, you do not want to ask a personal question to your financial advisor about what he takes home from your deal. But it is something you as a client can find out, paying too much can be a result of how much your financial advisor is making it is always great to have that open communication as you are in this together.

"NEGOTIATION IS THE KEY TO SEAL THE DEAL" - !!

"OVER INSURED" - ?

You as a potential client do not want to end up paying for insurance that you do not need. It does not necessarily mean you will never need it, but right now do you need to be over covered - ?

This is why the policy needs to suit your current position and focus on important things that you need assistance with.
Ensure you ask your financial advisor or insurance company to send you a breakdown of exactly what you are covered for so you are able to tweak what you need to ensure you know you are paying for exactly what you need.

14/10/2018

Green building and sustainability are words that remain at the forefront of conversations for many South Africans and is a trend that has seen continuous growth within the building and construction industry.

Recent attention around green building has been spurred on by public awareness around environmental issues. Global warming and recent local climatic events, such as the Cape drought have highlighted the need to limit energy consumption and the waste of natural resources.

According to research done on low-carbon development in sub-Saharan Africa, the construction sector is accountable for 56% of energy consumption and a yearly 3.9 tonnes of CO₂ greenhouse gas emissions per capita and as such, it is incumbent upon this category to play a key role in transitioning into a more sustainable society. Added pressure to increase environmental awareness, continuously rising electricity prices and the introduction of energy efficiency regulations has further driven the development of more energy-efficient buildings in South Africa.

Move towards greater transparency

The industry has already seen a number of trends developing in relation to the growing need for greener building techniques. This is evident in the need for companies to be more transparent in terms of the impact that their products have on the environment and people. Customers want to make more informed decisions when it comes to building and construction and to enable this, Saint-Gobain Gyproc assists clients by providing environmental performance data in the form of externally validated environmental product declarations and life cycle assessments.

Another key trend is the increasing adoption of drywall building technology’s. Due to its light weight and ease of installation, drywall presents several environmental benefits compared to brick or block wall systems. A third-party lifecycle assessment comparison between plasterboard systems and traditional materials in South Africa has revealed that using drywall systems instead of brick systems on 1m² of partition walls has significant savings potentials: up to 70% in global warming potential, 62% in primary energy use, 86% in wall system weight and 67% in fresh water usage.

More than just energy consumption

But it’s also important to realise that green relates more to just the energy consumption in the traditional sense. On the construction site, the lightweight properties of our solutions (10 times lighter in the case of plasterboard partitions vs. traditional brick) helps to reduce transportation, crane activity and even the depth and material involved in the foundation design. Waste to landfill is reduced by bespoke board sizes to minimise cut-offs and during the design stage, specification teams work with architects and consultants on the building design to minimise waste.

Green building is making strides within the building and construction industry, but there is still significant potential to reduce the gap as we move towards a society that fully embraces green development. With a combination of buy-in from big companies, an increase in the use of sustainable interior construction products, more transparency on the environmental impact of products and a drive to reduce construction waste and carbon footprints, things are moving in the right direction.

09/10/2018

Common Causes of Construction Delays.

Did You Know - ?

What is a construction delay - ? -

In construction projects, as well in other projects where a schedule is being used to plan work, delays happen all the time. It is what is being delayed that determines if a project, or some other deadline such as a milestone, will be completed late.

Construction delays can be very costly and can reduce your company’s turnover, in a worst case scenario your firm could be ruined by liquidated damages. Liquidated damages is a sum of money (agreed-to and written into a contract) specified as the total amount of compensation an aggrieved party should get, if the other party breaches certain part(s) of the contract in this case if a work delay cost your client money. It also gives your company a bad image showing you are disorganized and unprofessional, and the client could even give your company a bad reference and word of mouth travels very fast ruining your company’s name which you definitely do not want.

Your company can try to avoid some type of construction delays by recognizing their most common causes and working to mitigate those factors before they take effect.
Planning is crucial so you better have a good project manager, you’ll also need to depend on analytics and close oversight to determine when things are falling behind and make the right decisions to keep your project on track.

Here are the 5 most common causes of construction delays.

Poor Weather

Oh yes mother nature, the weather is something we can predict but it’s not so predictable if you get what I mean. Yes we have a weather forecast to assist with the planning of our projects but it can change at any time.
Unfortunately you won’t be able to use the weather as an excuse if you are busy with indoor renovations and running behind on schedule.
For outdoor projects, however, poor weather like rain or snow can leave you way behind schedule, threatening your already-slim profit margins with each passing day.
Any one want to take a dip -?….. In a mud hole that is -!! - If you’re busy with an excavation project and there’s some rain a freshly dug hole can turn into a mud pit ready to swallow an excavator or any other machine you drive into it. Hungry much - ?
And no high rise construction or roof is going to get done with high winds. Good luck to you if mother nature is very angry, because there’s no end to the delays that can result from flooding, or worse, a Tornado or Hurricane.

You’ll have to build allowances for natural disasters into your contracts to ensure that you don’t end up paying liquidated damages because of a storm. Rescheduling activities like concrete pours in accordance with the weather schedule is also a good idea, and you should always keep water pumps at a job site so you can dispose of any water that accumulates and gets in the way.

Budget and Resource Shortages

No more funds available…..eeeeek
Running out of money is a very bad scenario for a construction firm that’s in the middle of a project, especially when the client has already paid and you’re digging into your own pockets to get the job done.

It is important that construction project managers have access to costing software that will not under cost projects and put a company in the red. One must be well informed about updates on the firm’s financial health in order to ensure that projects don’t eat up the budget.
Banks can also be flexible with providing loans, especially if you’re an established firm with collateral to offer. This last resort works well if you need your hands on some cash to purchase the last materials for a project, pay workers, and avoid a costly delay.

Overbooked Crews

Check your diary- ! - Over booking projects and firms taking on more than they can chew can end up with projects falling behind as their exhausted employees drive around from job to job each day trying to get everything done.
It’s great to be ambitious about your goals, but everyone has limits, and you may find that hiring more crews lightens the load for everyone, avoids delays, and keeps morale higher throughout your firm.

Unreliable Subcontractors

Time is money.

Workers that waste time on the job are a plague not only in the construction business but any industry.
One may not always be to blame as they may lack the tools, training or experience that’s needed to get the job done efficiently, but on the other, they may spend too much time chatting, on a coffee break or even better a chocolate break and lose focus on the importance of timeliness on the job.

It’s important to invest in full-time employees making sure they know the processes and what’s expected of them, and hold them accountable for producing results on a daily basis. If you set high standards and don’t allow excuses, you’ll see how quickly production increases. You will surely reap what you sow.
Having the right equipment is very important as well, this being said the maintenance of these plant and machinery is imperative.

Unexpected Changes

Unexpected changes are always going to be a part of the construction business. Sometimes a requirement for the project emerges that was different from what was expected, and sometimes the customer asks for something extra and it isn’t possible to say no.

Managing expectations is the crucial skill when it comes to building unexpected changes into your schedule. Let the client know about the change, why it’s needed, and what kind of delay it will cause. If the client requested the change, let them know that a deadline extension will be required in order to make it happen, or suggest a bonus for incorporating the change into the existing work schedule.

04/10/2018

Thanks to all that have liked my posts to date - !! - Nothing Political - Purely business related -

Professional Registered Quantity Surveyors

04/10/2018

Good Morning All -

A CFMH Blog for you - !! --  

Yet another job summit is about to commence. If they don’t address the elephant in the room, they may as well stay home and avoid all the hot air. Unless “BEE” or “BBBEE”, in whatever derivation is scrapped in the private sector, there will be no solution to our unemployment problem and endemic corruption disease. For the two are inexorably intertwined each poisoning the other.

The basic building block of any economy, whether it is in India, China, Italy or Argentina, is the family business. These micro-enterprises are what employ the most people in any economy. Mess with this “atomic unit” and you undo the whole structure of the economy. This is what has occurred in South Africa. Communist ministers, though well meaning, but with no understanding of business, have tried to engineer social and economic change in society. It is difficult enough to start a business and just as difficult to sustain one, and the family provides the most resolute foundation structure. Even families have differences, how much more so two or more partners thrown together to meet an arbitrary and external racial quota criteria.

Basing a tender system on any criteria other than the best price for the same quality, immediately opens the system up to abuse. It is difficult enough to adjudicate technical tenders, but when BBBEE scorecards form part of the equation it is well neigh impossible. So a class of middlemen have been produced, who help meet the BBBEE criteria but at a substantial cost. It has been proven that most state-owned enterprises have paid twice if not thrice the true value of the product or service. So a few well positioned ‘tenderpreneurs” benefit at the expense of the fiscus and all taxpayers are the losers.

South African has in the past produced world class entrepreneurs, amongst others, retail geniuses, industrial geniuses and medical innovators. Has any government official wondered why this font has dried up -?- Well simply stated, why start up here, invest and struggle only to lose control at some future point -? - Well, entrepreneurs are still being produced, but are relocating elsewhere, where they are recognized for their talents and rewarded commensurably. They are going to places where they don’t have to undergo bureaucratic gymnastics to include representative samples of the population in their enterprises.

It is a sad denouement of our transformation from “Apartheid” to a society still obsessed with race. Scarcely a political speech whether by the President or by the EFF fails to drag race into the rhetoric. Race has polarized our society more than at any stage since 1994. The ANC is like a headless chicken running around on its last legs. Never has a political party, that enjoyed such support, close to a two thirds majority, squandered such opportunity to transform the well - being of its people.

The well - being of all the people is what it should all be about. Now the ANC and EFF only offer populist and simplistic solutions, that are only going to lead us further into the wilderness and more aptly, the ‘abyss’. So toxic has the rhetoric become, that certain standpoints are taboo. Ann Berstein made mention of “Spineless Businessmen have going AWOL” - well do you blame them -? - No one wants to be labeled a “racist”, counter revolutionary”, a “colonialist” or a ‘reactionary’. On certain topics, and BBBEE is probably one of them, there simply is no middle ground or space for nuance.

The solution to unemployment and turning this economy around, is less government interference and fewer policies. Less unionization, as the unions have only protected those fortunate enough to have employment, and the laws that we have protecting workers are serving to make the work force less productive and added to our losing our competitive edge against other countries.

Regards

Carlos F.M. Herckenrath

03/10/2018

Western Cape construction industry remains optimistic

03-10-2018

The revelations tumbling out of the Parktown Pandora's Box opened by the Zondo commission will certainly mean that, due to the previous nine years of looting public coffers, public spending on long-awaited infrastructure projects will simply not happen in the near future.

If the lack of government spending was not a big enough blow to our industry, the talk of land expropriation, a declining rand and, closer to home, drought, continued destruction of Metrorail train carriages and ongoing service delivery protests, would seem enough reason to knock the lights out of any private building initiatives as well.

Whilst the construction industry has managed to put food on my family’s table for more than three generations, this last year has been a tough one for all of us. However, we need to be patient given the very poor hand that our new President Cyril Ramaphosa was dealt. Despite the emotional concerns around land reform, to-date he has been doing the right things to get the country back on track.

Rays of hope

After many years of mismanagement and a very poor economy, there are rays of hope that will hopefully transform into improved economic growth in the next six to 12 months. Successful recent talks with China and the UK all bode well for a cash injection into our distressed economy, which will hopefully pave the path to recovery.

Even though we will have to wait for these investments to bear fruit, there is still construction activity in the Western Cape – a good sign during this dark spell. You only need to take a short drive along the Atlantic Seaboard to notice the amount of developments that are going up. Any astute private developer surely knows that there are quality builders, subcontractors and suppliers who will provide their services for a reduced cost in these times. The number of these developments are also a testament to how sought after the Western Cape actually is.

Despite current tough times, it is important that we work together and be prepared for the inevitable upturn.

08/09/2018

“AFTER LOFTY PLANS, SITE LIES UNUSED” - !!

This month will mark 8 years since the Athlone Power Station’s “Two Ladies” were demolished to make way for a highly publicised mixed-use development, but it could be another 5 years before any breaking of ground is seen on the site.

This is thanks to years of legal wrangling between the COCT and a global Engineering Company.

Years of court applications and counter applications to reverse the City’s decision to award Aurecon SA (Pty) Ltd, the tender to provide Professional Services in the decommissioning of the Station followed, even though the Company was involved in the pre-feasibility study of the project.

The Company was officially appointed in May, mayoral committee member for informal settlements , water and waste water services and energy Xanthea Limberg confirmed last month.

This follows a Constitutional Court decision which dismissed the City Council’s application for leave to appeal a Supreme Court of Appeal decision in favour of the Company last year.

The court found that the appointment was valid. The COCT has abided by the court’s decision , and Aurecon was appointed in May this year.

Before the legal wrangling the COCT council made several announcements of its plans to have the Approx. 36 Ha piece of land between Pinelands and Langa along the N2 redeveloped into residential property , business space, as well as an Arts Corridor for tourism and locals.

Currently the Power Station’s Main Boiler Building is cordoned off and stands idle with some of the office buildings being used by the COCT’s Electricians Dept.

No sign of Development could be seen on the premises last month or this month.

According to the Limberg, of the COCT , development on the site could only start once the decommissioning had been completed. The decommissioning will take approximately 5 years - &@&@!! -

The COCT was engaged with the planning and associated investigations to test the viability for the mixed-use development on the site as set out in the pre-feasibility study that was concluded in 2010 - ??? - Unbelievable to say the least - Why did they then demolish the Towers in the first place, if the are now again questioning the feasibilities - ? - Or have positions in the COCT changed somewhat - ?

Problems started when the COCT’s head of Electricity Generation , John Davidson,told the Joint Venture’s Project Manager, Jonathan Webb , during a discussion of the scope of work that as long as Aurecon did not provide any input concerning the structure of preference and was not represented on the City’s bid valuation or bid adjudication committee, there would not be a conflict of interest which would prevent it from tendering for the decommissioning of the Power Station , the court had said .

Aurecon SA then made its Tender Submission in June 2011, proposing to provide services for R 11 Million. the COCT awarded the Company the Contract for R 9 Million.

After the award , the contract was discussed at a council meeting where some councillors raised concerns about Aurecon being unfairly advantaged and alleging irregularities. - ??

The COCT appointed Ernst & Young to investigate,and the result was that there were irregularities in the awarding of the contract ..

8 YEARS ON , AND WE STILL HAVE THIS KIND OF NONSENSE GOING ON - ?? /

THIS DEVELOPMENT COULD HAVE BEEN COMPLETED YEARS AGO - !! -

IT JUST PROVES THE INEPTNESS OF THIS BUNCH OF USELESS MORONS - !! - AND IT CONTINUES IN ALL OTHER FIELDS , NOT ONLY DEVELOPMENTS - !!