The Green Building Council of South Africa (GBCSA), the Association of South African Quantity Surveyors (ASAQS), and the University of Pretoria’s (UP) Faculty of Engineering, Built Environment and Information Technology recently launched the 2019 edition of Green Building in South Africa: Guide to Costs & Trends. It is the second publication following the 1st edition that was issued in 2016. The document provides interesting trends and valuable insights about the influence of green design and construction on both capital and operational costs.
 
“The guide is available in electronic format and it will be of great benefit to the built environment. The thorough, peer-reviewed research and presentation of the results makes it a one-of-a-kind publication on an international level,” says Karl Trusler, Edutech Director at the ASAQS.
 
Challenging the notion of the ‘green cost premium’
With increased awareness and education in the built environment regarding the green building movement, a perception that green building attracts a significant cost premium when compared to conventional construction emerged.  To address this concern, The Cost of Green Building Study Committee was established in 2014. The 2019 edition includes the Committee’s convincing results regarding the business case for green building.
 
“The green cost premium appears to be progressively diminishing over time, largely because of growing maturity in the industry,” says Danie Hoffman, Senior Lecturer at the University of Pretoria’s Department of Construction Economics who is the lead researcher on the project.
 
Size and location matters
The report also confirmed the 2016 finding of a strong negative correlation between green cost premium and construction size. The larger projects managed to achieve a Green Star certification at a much lower average green cost premium when compared to smaller projects.
 
The data however also confirmed that the cost premium for buildings smaller than 5,000m2 has reduced significantly from 9,3% (2009/14 data) to 4,6% (2015/18 data).
 
“Office buildings that were developed for single corporate tenants had initially attracted much higher green cost premiums compared to buildings developed for a multi-tenant mix. Since 2015, this gap has been closed,” says Hoffman.
 
He adds that the business case for a comprehensive investment decision should include both the cost premium of constructing the building and the financial performance of the building in operation.
 
MSCI data confirmed that Green Star certified prime and A-grade offices produced a total return of 11,6% in 2017 versus 8,0% for non-green certified prime and A-grade offices. Better work environments and a lower impact on the environment have led many developers to achieve a significant return on their green building investments. “We hope the report will help guide future real estate decision making towards more sustainable, future-ready buildings in South Africa,” concludes Hoffman.
 
ENDS
 
MEDIA CONTACT: Stephne du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za  
 
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Widespread concern has spread like wildfire across the built environment due to the construction mafia and gang-related activities on project sites. Yunus Bayat from the Association of South African Quantity Surveyors (ASAQS) says that a major intervention is needed to protect infrastructure projects, investor confidence, and the safety of professionals in the built environment who are working on project sites.
 
“The Delangokubona Business Forum continues to intimidate foremen, project managers and construction bosses by going onto project sites and demanding a stake in their projects. As professionals working on these projects, we cannot protect ourselves from this type of violent intimidation and we are no match for the AK-47 automatic weapons that they bring with them,” says Bayat.
 
Construction projects worth R25,5bn+ are being violently disrupted and halted
 
On 18 March 2019, the South African Forum of Civil Engineering Contractors (SAFCEC) issued an urgent plea for action to the Minister of Finance, Tito Mboweni. In the letter, the SAFCEC said that it is gravely concerned that construction projects worth a minimum of R25,5bn are being violently disrupted and halted in South Africa.
 
“Armed gangs demanded to be part of the R1,65bn SANRAL Bridge Project in the Eastern Cape. These illegal site disruptions caused AVENG and the European-based Strabag International to pull out of the project, which forms part of the N2 Wild Coast Road Construction project,” says Bayat.
 
While the gang activities were reported to the police and interdicts were obtained, the disruptors were released shortly thereafter. On Wednesday, 13 March 2019, a R2.4bn German oil storage investment project that is being constructed by WBHO in Saldanha, Western Cape, was halted after armed gangs arrived on site.
 
“The project site pictures look like a war zone”
“The gangs demanded to be part of the project and burned the properties to the ground. The pictures of the scene look like footage from a war zone. Again, police were called, but they only arrived hours later and said that the issue had to be handed over to the Paarl police station. Contractors, female engineers, and other staff had to run for their lives into the veld. The response from the South African Police Force simply isn’t good enough anymore,” says Bayat.
 
On Monday, 18 February, the Black Business Council In the Built Environment (BBCBE) issued a letter to Minister General Bheki Cele from the Ministry of Police to request an appointment to discuss the illegal stoppages of construction projects across the country. In the letter, the BBCBE says that their members who are engaged in construction activity are subjected to victimization and work stoppages on a daily basis due to local business forums demanding participation in projects.
 
“The ASAQS is calling on the National Prosecuting Authority and local police services to address the situation. A strong and solid intervention is needed, and it should be seen as a top priority for everyone in the built environment and government,” concludes Bayat.
 
ENDS

MEDIA CONTACT: Stephne du Toit, 084 5879933, stephne@thatpoint.co.za, www.atthatpoint.co.za 
 
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The Association of South African Quantity Surveyors was recently awarded Associate Member Status of the Pacific Association of Quantity Surveyors. The PAQS is an international association whose members are fully fledged associations that fall within the Asia Pacific area or border the Pacific Ocean, all of whom represent the Quantity Surveying profession in the Asia and Western Pacific region.
 
Chairman for PAQS, Francis Leung, extended a warm welcome and congratulations to the ASAQS on joining PAQS as an associate member. “PAQS had the privilege of welcoming ASAQS as our Associate Member last November, but our bonding with ASAQS started much earlier.  It had indeed been a progressive, interactive process,” said Leung.
 
Special recognition leads to the amendment of the PAQS constitution
The ASAQS has attended the PAQS Board meetings since its inception 22 years ago with the status of a non-voting Observer Organisation due to South Africa not being a country that falls within the Asia Pacific Area or shares a border with the Pacific Ocean.  At the PAQS Board Meeting of November 2018, member countries unanimously recognised that the ASAQS had steadfastly contributed to the development of PAQS over the years and that special recognition was needed despite South Africa not falling within the geographical region of the PAQS.
 
“With some amendments to the constitution, the PAQS formally welcomed the ASAQS to PAQS, which now has the membership of 15 countries collectively pursuing the interests of over 40,000 professionals and practitioners. ASAQS has been instrumental in introducing PAQS country members to the African practices and markets,” says Leung.
 
Some of the responsibilities that go along with being an Associate Member include uplifting the industry, extending help to other members, and active participation in the various committees and activities on Research, Education and Accreditation, Sustainability, BIM, and International and External Affairs.
 
“The objective of quantity surveying is to optimize value for money for the planning, procurement, delivery and operation of construction and facilities. There is a lot we can do to excel our services and to collaborate with other stakeholders for improving and sustaining the built environment. At an industry level, we are witnessing rapid changes brought about by advancement of technology, sharing economy and the move towards collaborative contracting and early contractors’ involvement,” says Leung.
 
What the change in membership status means for local Quantity Surveyors
Larry Feinberg, Executive Director of the ASAQS, says that while Associate Members carry no voting rights, the change in membership status will allow the ASAQS to be appointed to any of the PAQS working committees and have all rights to PAQS research and documents.
 
“The ASAQS is deeply honoured to be recognised and accepted as the PAQS’s first and only Associate Member. This recognition elevates the status of South African Quantity Surveyors among an internationally recognised group of professionals. The ASAQS will continue to cooperate with strategic partners outside of South Africa’s borders so that our members and our profession will have a strong voice and continue to be considered as key role players on the global playing field, despite South Africa’s remote location,” concludes Feinberg.
 
ENDS

MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za 
 
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The Association of South African Quantity Surveyors recently released their annual salary survey results for 2018. Over 100 quantity surveying practices, some of which operate in more than one province, participated in this year’s survey, with the salaries of 506 Quantity Surveyors having been analysed.

Are the salaries of QS's declining, or are they leaving the country?
One of the most significant results from this year’s survey is that the number of practising salaried Quantity Surveyors with more than 10 years experience seems to have declined from 28,2% to 21,4%. A knee-jerk reaction could be to attribute this drop in remuneration to the number of experienced Quantity Surveyors leaving the country, but this hypothesis is difficult to prove for a number of reasons.

Tracking emigration rate in South Africa is complex without running a monthly headcount, but a report from Pew Research estimated that at least 900,000 people born in South Africa were living abroad in 2017. By the time of the next national census in 2021, this could easily be over one million people based on current rates.  The exact number of educated and experienced Quantity Surveyors who have left the country over the past year, however, remains unknown. The Quantity Surveying profession has been challenged by a number of changes in the macro environment over the past two years, and this year’s drop in remuneration doesn’t necessarily signify the beginning of a downward trend.

With last year’s annual salary survey, the ASAQS saw a sharp drop in the remuneration of quantity surveyors qualified at university and with more than 10 years experience. That seems to have been corrected in this year's survey.

Salary comparisons by province
According to the median provincial comparison of Quantity Surveyors with 11 – 20 years experience, Quantity Surveyors in the Western Cape receive the highest remuneration (R971,000 per annum), followed by Gauteng (R868,485 per annum) and Limpopo (R769,374 per annum). 

The survey was conducted in March and the remuneration packages of the principles, partners, members of close corporations and directors were excluded from the results. The ASAQS also warns that one should be cautious when comparing figures from one year to the next. The survey suggests trends over longer periods of time and if one compares the 2018 percentage to the 22,0% recorded in 2013 then the balance in experience seems to have remained fairly constant.

Older salary surveys can be downloaded here.

ENDS

MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za  

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“During 2018 we lobbied for the regulated appointment of quantity surveyors to infrastructure projects,” says Larry Feinberg, Executive Director of the Association of South African Quantity Surveyors (ASAQS).

The impact of this was evident in the Mid-term Budget Policy Statement by Finance Minister Mboweni where he included quantity surveyors in the execution unit that will be formed to assist with the problem of poor infrastructure project preparation.

In Minister Tito Mboweni’s words: “Too often‚ government spends money on infrastructure when it could be better and more effectively done by the private sector. The Development Bank of Southern Africa‚ the Government Technical Advisory Centre and the Presidential Infrastructure Coordinating Commission will receive R625-million to strengthen project preparation.” 

“Government will establish an execution unit made up of engineers, quantity surveyors, architects and other professionals to ensure that challenges in the Vaal River System and with the Giyani Water project are resolved. The execution unit will also advise government on new delivery and financing models to provide basic services to communities.”

The regulated appointment of a registered Quantity Surveyor is essential for the reduction of irregular and wasteful expenditure. This is turn will help to ensure that public infrastructure spend is applied to the benefit of the greater South African public.

“While we advocate for this change, Quantity Surveyors also have to keep an eye on remaining relevant and offering valuable services in a changing world,” says Feinberg.

Product changes
Self-healing concrete, air-cleaning materials, transparent wood, and graphene are just some of the innovative products that are rapidly moving from being labelled alternative building materials to more mainstream.

While South Africa has not yet adopted many of these materials, no construction professional should wait for someone else to be the first to learn how to work with these materials.

Process changes
Similarly, new techniques in the construction process like additive manufacturing – for example the 3D printing of buildings – also need to be factored into the sustainability and growth strategies of firms and professionals in the South African built environment.

All traditional methodologies must be reviewed with a focus on to the relevancy to the future of designing, constructing, and maintaining infrastructure and buildings.

“Those that can adapt without being forced to do so will have a distinct advantage over those that wait until proof of concept,” warns Feinberg.

Role changes
Changes to existing methodologies don’t need to be at the extreme edge of technological innovation. Even experimenting in small ways with readily available processes – like Building Information modelling (BIM) – can give construction professionals an edge.

“By rethinking and redefining their traditional roles, professionals in the built environment can help create a secure future for themselves,” says Feinberg. “This security will be built less on the work they’ve already done, and more on how relevant they can remain to their clients’ needs.”

A Quantity Surveyor (QS) is a financial expert trained specifically in the complexities of construction sector finance, procurement and contract administration. The QS is responsible for ensuring that a client receives value for their money during the viability stage, the construction phase and the entire lifecycle of the building, road, bridge, dam, etc.

This is done by verifying – at various points during the planning and construction phase – that the actual expenditure and project delivery aligns with specified material, approved budgets, and agreed timelines.

Feinberg says that Quantity Surveyors would however do well to think of themselves not just as experts in procurement, building contracts and cost control enabled by meticulous measuring and calculations, but also as governance experts and ethics advisors.

Quantity Surveyors are ideal business advisors, even if the historical foundation of the profession is “number crunching”.

“During 2018 the ASAQS has made solid strides towards enabling QS’s to make additional valuable services available to clients,” says Feinberg. “Courses and standardised documentation on life cycle costing, value management towards savings and operational efficiency, and advice on sustainable building practices, methodologies and materials are just some of the many additions we’ve made to our stable of Continuing Professional Development offering.”

ENDS 

MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za  

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The International Construction Measurement Standards (ICMS) is a new, high level international standard that aims to provide greater global consistency in classifying, defining, measuring, analysing and presenting construction costs. The Association of South African Quantity Surveyors (ASAQS) is working with a growing group of professional and not-for-profit organisations from around the world to develop and implement these standards for benchmarking, measuring and reporting construction project costs.

ASAQS EduTech Director, Karl Trusler, is representing the ASAQS in the ICMS coalition. He says that a global standard in cost reporting will benefit South African Quantity Surveyors, developers, and other professionals in the built environment in a number of ways.

Levelling the playing field for built environment professionals
“When there is global consistency in how the construction costs of a project are represented, investors and clients are able to compare apples with apples,” explains Trusler. “Through the introduction of a standardised cost reporting template, the ICMS is succeeding in creating a common language for the global built environment.”

“Regardless of where they are based, clients can use the ICMS as a guideline to determine where in the world they should develop their projects to achieve the best returns thanks to the consistency and benchmarking it provides. It has the potential to level the playing field globally,” says Trusler.

The way that construction project cost reporting has been presented to clients, developers and investors in the past can vary from country to country and even within countries. Adoption of the ICMS means that construction costs will be presented in the same way whether at a project, regional, state, national or international level.

“The stand-out benefit is that real comparisons of construction projects can be made, and these comparisons will guide more informed decision making. An increasing number of local Quantity Surveyors are becoming involved in projects across our borders into the rest of Africa and beyond. To become and remain globally relevant, they should seek to do their reporting in an internationally standardised way. The ICMS speaks to this need,” says Trusler.

Encouraging widespread adoption of a globally consistent standard
As the ASAQS representative to the coalition, Trusler is tasked with staying informed and connected on global developments related to the ICMS and providing feedback and suggestions from members to the coalition. When asked how widely the ICMS has been adopted in South Africa, Trusler explains that it is still very new and has not yet become the status quo.

“Like any initiative in the built environment, there are early adopters, but the majority of South African professionals in the built environment are waiting to see what the uptake will be. While the larger multidisciplinary practices may adopt the ICMS quicker, the majority of smaller practices in South Africa would be more cautious. Basically, all practices make use of some form of a cost reporting system so to become ICMS compliant, they would need to align their reports to the ICMS cost reporting template.”

The ASAQS plans to encourage the adoption of the ICMS through education.

“When people are informed and grasp the value of a concept, they become motivated, and before long through their own initiatives the concept gains momentum. Across the globe, the ICMS is beginning to gain momentum through the efforts of local organisations. Lobbying at government level is a priority because government adoption will go a long way towards cementing the ICMS as the national standard within countries,” concludes Trusler.

ENDS

MEDIA CONTACT: Juanita Vorster, 079 523 8374, juanita@thatpoint.co.za, www.atthatpoint.co.za  

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There is a growing need among both public and private sector building owners and property developers to gain greater insight into what their buildings will actually cost them over their lifespan. The Association of South African Quantity Surveyors (ASAQS) is set to launch a new document that will guide professionals in the built environment on the importance of calculating the Life Cycle Cost of a building and how to calculate these costs.

“The production of this document is part of the ASAQS mandate to provide value back to our members by equipping them with resources that will enhance their service offering back to their clients,” explains Larry Feinberg, ASAQS Executive Director.

Life Cycle Costing (LCC) is the total costs of an asset over its entire operating life, including initial acquisition costs, and subsequent running costs. ASAQS EduTech Director, Karl Trusler, says that traditionally, the most important factor taken into account when considering the development of a project are the initial capital costs.

The running costs of a building over the long term, however, far outweigh the initial capital costs, which means that everyone from quantity surveyors and other professionals to building owners and developers should reconsider their approach to the materials and equipment they choose and the design decisions and construction methods they opt for.

A long-term approach to property assets
“Even though buildings are capable to remaining operational for 100 years and longer, service components and certain finishes and fittings within a building generally have a much shorter life span. Therefore, for the purpose of LCC calculations, a time period of 30 to 40 years for the design life of a building is recommended as there are few advantages in going beyond 40 years.”

“The initial capital investment is only the tip of the iceberg when considering the Total Life Cycle Cost of a project. It’s the part we all see, but what we do not always see is the much larger portion of the costs that will be spent on maintaining the building over its lifespan,” says Trusler. “Instead of presenting clients with a cost report indicating the initial cost of erecting a building only, what is needed is a way to show clients what type of costs they are likely to incur to maintain a building over an extended period of time. The new LCC document will equip people with the ‘why’ and ‘how’ to go about doing this.”

The document, which will be launched during the gala evening of the 10th South African Council for the Quantity Surveying Professions International Research Conference on 1 October 2018, is the product of years of research and work. The three main contributors of the document are Dr Hoffie Cruywagen of the University of Pretoria's Department of Construction Economics, Dr Deen Letchmiah, Chairperson of the Board of Directors of LDM Consulting and President of the SACQSP, and Danie Hoffman, a Board Member of the ASAQS.

“The first half of the document provides background and insights on what LCC is. It offers an academically-researched build-up to the second part of the document, which looks at LCC exercises and practical examples on how to go about providing clients with LCC analysis,” says Trusler.

Lifecycle costing to become the norm
Internationally, LCC is being seen as a means to promote green and sustainable infrastructure procurement for the public sector, and for good reason.

“When you consider the long-term use of public buildings and infrastructure, it makes sense for a complete Life Cycle Cost analysis to be undertaken on proposed developments. This information provides the means to make decisions that will ensure sustainable public sector procurement. In the private sector, developers with a long-term view for their property investments should be interested in these figures for similar reasons. The new LCC document will guide professionals on best practices and the practical application of LCC,” concludes Trusler.

The new ASAQS Guide to Life Cycle Costing 2018 document is available at https://www.asaqs.co.za/store/ViewProduct.aspx?ID=12341793

ENDS

MEDIA CONTACT: Juanita Vorster, 079 523 8374, juanita@thatpoint.co.za, www.atthatpoint.co.za  

For more information on ASAQS please visit:
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Quantity Surveyors are aiming to play a crucial role in getting “frozen” infrastructure development projects back on track. “Municipal managers and classically trained accountants are currently expected to deliver complex projects,” says Larry Feinberg, Executive Director of the Association of South African Quantity Surveyors (ASAQS). “Not only is this expectation unfair on them without them having received the proper training; it’s also part of the reason why some large infrastructure development projects have been suspended or have ground to a halt.”

According to Feinberg the ASAQS has been in talks with senior government officials and other industry bodies to create solutions that can assist with training and professional support to those charged with delivering these projects.

“Training on the use of standards documentation is but one of the areas where Professional Quantity Surveyors can be of assistance,” explains Feinberg. “Deploying Professional Quantity Surveyors to upper echelons in government is one of the mechanisms that can be used to good effect to educate officials on good governance in procurement, bidding and tendering processes, and the complex process of managing the construction process from a cost control point of view.”

The “Send Me” call made by President Ramaphosa during his State of the Nation address earlier this year has resonated with many and sparked collaborative action across many economic sectors. Feinberg hopes that this call can be used as a basis for professionals in the built environment to bridge focus areas that traditionally operate in and create solutions that serve the best interest of the public and the fiscus.

“Our interactions on several discussion platforms are focused on how to bridge the gap between what Thuma Mina means for the public sector and how our members can assist,” says Feinberg. The ASAQS has consistently promoted the role of a Quantity Surveyors as one that plays a significant part in curbing instances of fraud and wasteful expenditure.

“The time for behaviours that – intentionally or unintentionally – resist collaboration is over,” says Feinberg. “It is now time for all of us to share knowledge and expertise, so we can collectively respond to the President’s call.”

The report of irregular expenditure on the on Winnie Madikizela-Mandela Brandfort is concerning, but commonplace. The Association of South African Quantity Surveyors (ASAQS) says this will only change if the right mix of professionals are appointed at the tender phase of infrastructure projects.

The report by News24 states that “the quantity surveyor's report found fruitless expenditure of R593 622 "with regard to the Winnie Mandela House Project".”

“The appointment of a Quantity Surveyor to calculate and oversee projects should not be an afterthought when budget allows,” warns Larry Feinberg, Executive Director of the ASAQS. “We strongly recommend that the appointment of a Professional Quantity Surveyor becomes part of the legislated tender process.”

A Quantity Surveyor (QS) is best placed to identify deviations from original tenders in terms of both scope and pricing. As such, they act as the client’s watchdog. In the case of public projects, the client is ultimately the taxpayer.

One of the key issues in any public project is to ensure that the tender is awarded to the right contractor at the right price. The training undertaken by Quantity Surveyors allows them to manage the financial and legal processes of a project.

“Professional QSs are also bound by a code of conduct,” explains Feinberg. “If they are found to have contravened the code, they will lose their licence to practice as a QS.”

ENDS

MEDIA CONTACT: Juanita Vorster, 079 523 8374, juanita@thatpoint.co.za, www.atthatpoint.co.za  

For more information on ASAQS please visit:
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