 “In the wake of the July incidences of looting and destruction, we need to rethink the role property development can play in addressing a variety of socio-economic issues in South Africa,” says Mosha Senyolo, newly elected Vice-President of the Association of South African Quantity Surveyors (ASAQS). “Before we can talk about feasible solutions, we must first understand the unique South African problem that we actually need to solve.”
“Saying that no one would want to invest in South Africa due to socio-economic instability isn’t likely to inspire those in need of help to make different choices,” says Senyolo. “We should rather have conversations about how we are going to get people to understand how infrastructure and property developments coming from outside their community benefit them.” “In addition to this, social responsibility should be at the forefront when rethinking how the sector approaches property development, for example,” says Larry Feinberg, Executive Director of the ASAQS. “To sustainably address the unique South African challenges, the property sector will be required to take on social responsibility that goes beyond just – for example – skills development.” This proposed focus on increased social responsibility aligns to the ESG trend where investors consider not only the financial return, but also the environmental, social and governance aspects of projects and companies they invest in. “There are opportunities to assist people to start businesses and allow them to thrive without the usual capital constraints that goes with running a business that requires a physical location.” “For example, an office space developer could allocate a small rent-free portion to a business that just needs a physical location at a great address to give them an edge,” explains Feinberg. Similarly, a retail developer could allocate a small rent-free portion to spaza-type shops, allowing the shop owners to benefit from the foot traffic of the established brands located in the mall.” “Collaboration between the public and private sector will be key to bringing these important changes about,” says Senyolo. Keith Skinner, newly elected ASAQS President, agrees with Senyolo. “Going forward, social responsibility and local community inclusivity are key to new property developments providing good returns in respect of benefits to the community, planet and being profitable investments.” “We can’t wait for some undefined point in the future; we need to rethink our approach to the inclusion of local communities in the new property developments process now!” According to Skinner, Quantity Surveyors can support the inclusion of local community involvement in the construction phases of a project without it necessarily being a financial burden to the project. The education, training and knowledge base required of Professional Quantity Surveyors (PrQS) equips them to implement clearly defined – and well documented – procurement processes. “Quantity Surveyors are well placed to effect and manage financial governance and reporting processes on projects,” explains Skinner. “Thorough financial control minimises opportunities for fruitless expenditure and corrupt activities, thus ensuring that funds are utilised efficiently, and to the maximum benefit of both investors and communities.” ENDS MEDIA CONTACT: Stephné du Toit, stephne@thatpoint.co.za, 084 587 9933, www.atthatpoint.co.za For more information on ASAQS please visit: Website: www.asaqs.co.za Facebook: facebook.com/asaqsza Linkedin: linkedin.com/company/asaqs
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 The list of companies that were awarded contracts by government for the supply of goods and services related to the Covid-19 pandemic include details on personal protective equipment (PPE) contracts. Provincial expenditure disclosure reports however indicate that as much as – or even more – has been spent on infrastructure projects but very little detail is provided to compare these costs to industry norms.
From April to July 2020 Gauteng spent R2,112bn on PPE and R2,977bn on infrastructure. As at 27 July 2020 the reported expenditure for KwaZulu Natal amounts to R800mil on PPE and R1,139bn on infrastructure. The Western Cape report provides information on PPE expenditure only and not on infrastructure projects. These projects included upgrades and alterations to health facilities and education facilities as well as the establishment of field hospitals, quarantine and isolation facilities. The expenditure reports provide detailed information on the unit of measure, price per unit and quantity required on the procurement of PPE for contracts from as little as R1000. The reports however include very little detail on the specifications for the infrastructure projects and how they were procured. These details are used by those that assign tenders to benchmark quoted costs against prevailing market prices and Treasury norms. This comparison helps to identify inflated prices and related irregularities. However, on the infrastructure projects, only a single amount together with a very brief description of the work is provided. This lack of detail does not allow for a basis to benchmark these costs against market norms. It is therefore extremely difficult to determine whether government obtained the expected value from the infrastructure expenditure. Lack of understanding causes lack of outrage The skewed focus on the reported irregular expenditure on PPE is most likely due to a general lack of understanding of how detailed infrastructure procurement management and project delivery really is. It is for this reason that the Quantity Surveying profession is seeking responses to key questions that will expose any irregularities if applicable. According to the Association of South African Quantity Surveyors (ASAQS), a Quantity Surveyor is the member of the professional consultant team responsible for managing all financial aspects on construction projects from start to finish. In the public sector they are also responsible for preparing procurement documentation on behalf of organs of state. Quantity Surveyors ensure that tenders are awarded to building contractors at market related prices which are benchmarked against industry rates. They also verify that the work done by the contractors is based on actual performance before payment is released to the contractor. Government must caution against writing blank cheques for infrastructure projects In the Gauteng expenditure report 15 health infrastructure projects are listed without any names of contractors or of the core professional consultant team consisting of quantity surveyors, architects, engineers and project managers. In the KwaZulu-Natal Report infrastructure expenditure refers to contractors only. With no indication of the involvement of professionals in the documents available in the public domain it could easily be assumed that none were appointed. If this is indeed the case, then it is highly possible that the procurement and management of these projects lacked the required independent and professional oversight. This is especially concerning when expenditure on Covid-19 infrastructure exceeds that of total PPE procurement – without the same amount of public outrage. It is of utmost importance to the South African economy to ensure that Covid-19 infrastructure projects were awarded and completed in a fair, equitable, transparent, competitive and cost-effective manner even though emergency procurement was necessary at the time. Departments responsible for infrastructure projects should ask several questions to establish whether due process was followed in awarding Covid-19 infrastructure tenders. The answers provided to these questions should be reviewed by competent, registered built-environment professionals in order to determine “fit for purpose” decision-making and to identify any irregularities or non-compliance. The ASAQS, through its members and provincial chapters, is ready to assist investigative agencies to identify and quantify any fraud and corruption on Covid-19 infrastructure projects. ENDS EDITOR’S NOTE: For the sake of brevity we have excluded from the main body of this media release the list of questions departments responsible for infrastructure projects should ask to establish whether due process was followed in awarding Covid-19 infrastructure tenders. We include these questions below for your convenience:
MEDIA CONTACT: Stephne du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za  Property developers, construction owners, Quantity Surveyors, and contractors face many challenges as they navigate through mostly uncharted territory with their projects experiencing mounting risks from the effects of COVID-19. Dr Hendrik Prinsloo, former Senior Lecturer at the Engineering, Built Environment and Information Technology of the University of Pretoria, recently published his book entitled Construction Delay Analysis Simplified: A Step-by-Step Guide for the Analysis and Formulation of Delay Claims. Christelle Bown, President of the Association of South African Quantity Surveyors, says the book provides the much-needed guidance the industry is looking for to make sure that delay claim-assessment processes are managed in a way that is fair and transparent to employers and contractors.
“Across the globe, construction projects are impacted by the pandemic in myriad ways including reduced or compromised the availability of materials, slow-downs in production rates, non-availability of specialist resources, site closures where the number of infections is high, and a reduction in the availability of labour due to compromised health workers, among other challenges. Dr Prinsloo’s new book succeeds in simplifying the many complexities associated with the delay claim-assessment process at a time when we need it most,” says Bown. Localising international best practices for delay claims Dr Prinsloo, who now resides in San Diego, conducted intensive research on delay claims over many years, and this research produced a groundbreaking New Delay Analysis and formation method. The method, which is covered in the book, has been presented at numerous international conferences and is being in several countries. The ASAQS, who has worked closely with Dr Prinsloo over the years, is co-publishing a South African version of the book. “The book gives guidance on how disputes can be minimised, and it is written in such a way that it can be used for an in-depth study into delays or as a quick reference guide for the assessment or formulation of delay claims. Dr Prinsloo was a panellist on a recent ASAQS webinar about the contractual consequences of COVID-19 and attendees – including myself – were impressed by his knowledge on this topic. We are excited to launch the co-published version of his book to the local built environment,” says Bown, who was invited to write a foreword for the book. Formulating delay claims for JBCC and FIDIC contracts Professor Tinus Maritz, CEO of the Joint Building Contracts Committee (JBCC), who also wrote a foreword for the book, says the book is particularly helpful in how it gives guidance on how delay claims analysis is formulated using the JBCC and FIDIC standard forms of contract. “Dr Prinsloo’s book ensures that the delays experienced on construction projects, which in most cases might be excusable delays, are dealt with and analysed fairly and transparently. It provides a better understanding of the administration and good practice in this particular area of contracting, and it will undoubtedly be used by many practitioners, clients, contractors, and subcontractors throughout South Africa and its neighbouring countries,” says Maritz. An industry-wide invitation is open to all, to attend for free, a webinar presented by Dr Hendrik Prinsloo on Construction Delay Analysis from 2:00-5:00 pm on Wednesday the 12th August and repeated on Tuesday the 22nd September 2020. To register for these webinars, please click HERE. To order your copy, contact Gwen Mlondobozi at the ASAQS on edutech-admin@asaqs.co.za ENDS MEDIA CONTACT: Stephne du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on ASAQS please visit: Website: www.asaqs.co.za Facebook: The Association of South African Quantity Surveyors  Initiated at a meeting held in the offices of the International Monetary Fund in Washington in 2015, the International Construction Measurement Standards (ICMS) presents the opportunity to make a meaningful comparative analysis of construction costs between countries on a global scale, not least by international organisations such as the World Bank Group, the International Monetary Fund, and various other funding institutions, government and non-government organisations and the United Nations.
Given the interest by international funding intuitions for global consistency in construction cost reporting, as advocated by the ICMS, Karl Trusler, EduTech Director at the Association of South African Quantity Surveyors (ASAQS), says the government’s planned infrastructure roll-out makes it necessary for Quantity Surveyors to be open to expanding some of their cost reporting methods. “With President Cyril Ramaphosa receiving a “firm commitment” amounting to billions of rands for the 55 bankable infrastructure projects, it is essential to know what reporting standards the big lenders will accept when reviewing project proposals. South African Quantity Surveyors who want to do work across borders or overseas will also benefit from familiarising themselves with the ICMS, as global consistency in construction cost benchmarking is becoming increasingly sought-after among critical stakeholders in the international built environment,” says Trusler. What is the ICMS? The ICMS is an international standard that aims to provide greater global consistency in classifying, defining, measuring, analysing and presenting construction costs at a project, regional, state, national, or international level. It isn’t a detailed method of measuring construction works. Instead, it is a high-level benchmarking and reporting framework for international cost classification, reporting, and comparison. “Project developers and financiers want to be able to compare apples with apples when reviewing project costs across the globe. The data bank of crucial information provided by the ICMS enables informed decision-making. Although not mandatory, the ICMS is likely to become an increasingly valuable requirement for South African Quantity Surveyors who are involved on large infrastructure projects that are funded by foreign investors,” Trusler says. The first ICMS was launched in 2015 and it was a guideline for reporting on the capital investment costs of a project. Last year, the ICMS Coalition – which consists of 45 organisations from around the world and 27 Standards Setting Committee members - published the second edition of the ICMS. A benchmark for international lifecycle cost reporting “The new ICMS provides a lifecycle cost reporting guideline so that developers and infrastructure owners know how their investments will perform once they are operational. This type of information is crucial for both private and public-sector role-players who are more motivated than ever before to invest in the development of world-class infrastructure,” says Trusler. Among the 55 projects that government has earmarked for development is an aviation park near Upington, a smart city in Lanseria, a R3.1-billion Space Infrastructure Hub, a 516-hectare citrus farm in the Eastern Cape, and a water project that includes some 160km of pipe, and pump stations to get water to Eskom’s large power stations, Medupi and Matimba, among other projects. There is sufficient overlap between the current cost reporting methods that Professional Quantity Surveyors use and the ICMS, so we are working towards delivering a solution that enables the ICMS report to be generated in parallel with the way we currently do cost reporting in South Africa. I look forward to helping members embrace and benefit from this solution,” concludes Trusler. An industry-wide invitation is open to all, to attend for free, a 1-hour live international panel discussion on the ICMS from 4:00 – 5:00 pm on Tuesday the 1st September 2020. The panel will comprise of Justin Sullivan (ICMS Coalition Chair) Ken Creighton (ICMS Coalition Past Chair) Gerry O’Sullivan (Standards Setting Committee Vice-Chair) and Julia Dela Cruz (ICMS Coalition Trustee) and will be hosted by the ASAQS. To gain more insight into the ICMS, please register for the webinar by clicking HERE. ENDS MEDIA CONTACT: Stephne du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on ASAQS please visit: Website: www.asaqs.co.za Facebook: The Association of South African Quantity Surveyors  EduTech, the educational arm of the Association of South African Quantity Surveyors (ASAQS), has been offering free webinars since May and will continue to do so for the rest of the year. Karl Trusler, Director of EduTech, says the webinars are widely attended, and the value offering has challenged the perceived costs involved in obtaining Continuous Professional Development. The webinars have essentially created a platform for Quantity Surveyors to participate, contribute, and network in surprising and enterprising ways.
“We have been extremely encouraged by the response to the webinars, with an average of more than two hundred persons attending each event. Compared to the 15-25 persons who attended the pre-COVID workshops and webinars, this indicates a dramatic shift in our members’ sentiment towards their continuous professional development. The webinars have become a place where people are informed and engage in highly topical matters, where they can brainstorm with their peers, and become a part of the greater problem-solving community which the built environment needs right now,” says Trusler. He says that the webinars have created a platform for the members to connect and engage with one another on a national level. “Members are getting to know each other and are sharing knowledge with each other. By making use of the “Chat” and “Q&A” functions available on the webinar platform, people ask the necessary questions, make constructive comments, engage in insightful conversations, and brainstorm potential solutions. There is a growing sense of goodwill and camaraderie, and people are raising their hands to be part of the critical discussions taking place online, says Trusler. The success of the webinars can undoubtedly be attributed to the generosity of the ASAQS Board who made the decision to offer free CPD events to our members for the remainder of 2020 as a gesture of kindness in the face of the COVID-19 crisis. Giving Quantity Surveyors more, for less Obtaining CPD points is often associated with high costs. Webinars cost less than live workshops because of the savings on venue hire, catering, travel, accommodation, etc. These costs are recouped through the registration fees paid by attendees. Being able to offer free CPD training while maintaining the content standard, results in a remarkable value proposition to members. Value innovation takes place where value is increased, and at the same time, costs are reduced. The decision to offer free webinars – which is substantially increased value at no cost - has achieved this overnight. “Essentially, our members have been offered 83 free CPD hours via webinar, which in monetary terms, is worth approximately nine times the value of their annual membership fees. Live workshops would have at least doubled these statistics. Our team of CPD presenters is the best we have ever had, and they continue to deliver world-class webinars,” says Trusler. The ASAQS has had the privilege of hosting topical webinars in response to the industry’s needs such as, “The Contractual Consequences of COVID-19” and “The Implications of COVID-19 on Construction Health and Safety”. Both of these topics resulted in follow-up webinars to further discuss and close the robust conversations that the webinars incited. Some of the feedback from the webinars also resulted in the production of practical guidelines. The webinars are so popular that the ASAQS is planning additional webinars to accommodate registrations in excess of the current Zoom limit of 500 persons. The schedule for upcoming webinars can be found on the ASAQS website where you can register online. The webinar line-up includes topics such as an Overview and Technical Analysis of NEC 4, Professional Client-Consultant Services Agreements published by PROCSA®, Construction Delay Analysis, and Marketing your Consultancy, among others. ENDS MEDIA CONTACT: Stephne du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on ASAQS please visit: Website: www.asaqs.co.za Facebook: The Association of South African Quantity Surveyors  During his third State of the Nation Address, President Cyril Ramaphosa announced economic transformation and job creation as the first of seven key priorities to get South Africa back on track. Since then, Government has continued to put pressure on industry bodies, and statutory professional councils such as the SACQSP (SA Council for the Quantity Surveying Profession), to speed up transformation within the quantity surveying profession or face harsh consequences.
Patience More, Registrar at the SACQSP, which oversees the Professional Registration of quantity surveyors (QSs), says many of the daily calls she receives are from frustrated candidate QSs that are employed by the Government. The main complaint lodged by these candidate QSs are that they are unable to register as Professional QSs because no registered professional quantity surveyor (PrQS) mentors are assigned to them. This is immensely problematic for any candidate QS aspiring to become professionally registered, as it is a statutory requirement prescribed in the quantity surveying professions act that every candidate QS is obliged to work under the supervision of a PrQS in order to gain Professional Registration with the council. “In order to become Professionally Registered as a QS, a candidate will need to demonstrate that he/she has the same or equal competence and accountability that is required from a registered professional QS’s that are involved in the oversight and management of large, public-funded construction projects. In some cases, the candidate QSs have been working for Government for over five years without being assigned to complex projects,” More states, adding that these candidate QSs are left to do administrative work, while the more complex and demanding Quantity Surveying work is placed out on government tender and effectively outsourced. “If Government wants to see meaningful and sustained transformative change in the quantity surveying profession, they as the largest employer in the nation cannot afford to continue to place the onus for training candidate quantity surveyors predominantly on the private sector. Instead they must lead by example and create an appropriate environment that enables candidate QSs to gain the required experience, professional training and mentorship so that they can become Professionally Registered as per their route to registration. The only realistic way to achieve this goal is if government departments, municipalities and state-owned enterprises employ properly qualified professional quantity surveyors to assist in developing and training these candidates,” More urges. SA needs more qualified QSs More says that Quantity Surveyors are desperately needed within Government departments to deal with everything from cost overruns and inefficiencies to corruption. “There are not enough Quantity Surveyors to have oversight on all of the construction projects that Government is funding. The few Quantity Surveyors that are employed by Government are saddled with so many projects that they are simply unable to accurately keep track of the intricacies and complexities involved in cost control project financial management. On projects where a team of Quantity Surveyors would realistically be required, Government departments are lucky if just one Professional Quantity Surveyor has a moderate level of oversight on a project.” Why isn’t Government employing QSs? Only a handful of QSs are employed by the Department of Public Works, and these few and far between QSs oversee construction projects to the value of tens of billions of Rands. Larry Feinberg, Executive Director of the Association of Quantity Surveyors (ASAQS), this is an unmanageable workload for a QS. “The handful of Professional QSs employed by Government have too much on their plates to responsibly manage cost control. The annual salary that government would pay for employing a registered professional QS is minuscule to the amount of construction project corruption and misspending they would almost assuredly be able to prevent. Why isn’t Government – the largest employer in the country – not employing skilled and experienced QSs to work on their construction projects and root out corrupt procurement practices and shady project expenditure? This problem runs much deeper than transformation.” ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za For more information on ASAQS please visit: Website: www.asaqs.co.za Facebook: The Association of South African Quantity Surveyors  Late last year, the Auditor General reported that unauthorised expenditure in South Africa had increased by 38% to R2.1-billion, with the Department of Public Works and Infrastructure being one of the departments that received the poorest audit results. While the Department is mandated to be the custodian and portfolio manager of the national government’s immovable assets, there are virtually no Quantity Surveyors within many government departments.
Zandile Makhathini, Chairperson of the Built Environment Matters Committee on the Council for the Built Environment (CBE), has worked in various roles within government departments for the past twenty years. In 2012, she became the head of an infrastructure programme at the Department of Public Works and in 2015 she was able to appoint a Quantity Surveyor for the first time. “Before 2015, there weren’t formally appointed Quantity Surveyors at the Department of Public Works. After requesting a special dispensation from HR to appoint a Quantity Surveyor for my projects, I was able to appoint one at an uncompetitive salary. The lack of competitive salaries for Quantity Surveyors is one of the biggest reasons for the lack of professional expertise within the Department. There is currently only one Quantity Surveyor and three candidate Quantity Surveyors who manage the projects that make up the R12-billion budget of the Department,” says Makhathini. Engineers and construction managers aren’t quantity surveyors Quantity surveyors are the built environment professionals equipped and trained to manage the complete contractual and financial aspects of construction projects. They provide key oversight and management that helps to ensure that a construction project is completed within its projected budget by pricing/forecasting as well as measuring the value of the work done on-site. Makhathini says that these skills are in short supply within the Department and that built environment professionals who haven’t been trained in cost estimating manage the financials of projects. “Government departments are at a critical point where they need to recognise that a Quantity Surveyor’s skills are specialised and greatly needed on our projects. Engineers and construction managers do not have the same skills as professional Quantity Surveyors. As a construction manager, I’m fully aware of my limitations, which is why I’ve appointed a Quantity Surveyor as part of my project team. Instead of expecting engineers and construction managers to excel in cost estimating and cost control, we need to entrust this responsibility to people who have mastered these areas of expertise. Government departments need to make roles for Quantity Surveyors available at competitive salaries so that they can control costs and help us derive value from our building projects and assets,” says Makhathini. Maphefo Mogodi, Acting Chairperson of the Council for the Built Environment (CBE), says Quantity Surveyors are trained experts that provide an accuracy of estimates that other professionals simply aren’t trained to provide. “Consultants involved in a project often tell the client that they can do the bill of quantities and they include this task in their fees. Quantity Surveyors are the ones with the nuanced expertise to provide a level of transparency and clarity to the costs that other professions aren’t equipped to offer,” says Mogodi. Makhathini says that having a Quantity Surveyor on her projects has led to financial and project management benefits. “Quantity Surveyors can foresee problems before they arise and do cost exercises to advise me on how I can achieve my goal while remaining within budget. During the design phase, they work with the design team and they focus on containing costs throughout the construction phase up until delivery to ensure we get value for money. Without a Quantity Surveyor, it becomes difficult to manage design changes and project costs,” says Makhathini. Quantity Surveyors can help root out corruption In September 2019, Minister of Public Works and Infrastructure Patricia de Lille called for an overhaul of the department’s register after more corruption revelations were uncovered. Despite the department being custodians of over 30 000 pieces of land and more than 81 000 buildings, the values and status of properties are mostly unknown. While these numbers relate to completed projects, Makhathini says the number of unsubstantiated variation orders on government projects is a symptom of the poor cost control that happens on a project planning and construction level. “Each and every bill of quantities should be properly accounted for and substantiated. Without costing specialists, government departments will continue to lack control over the numbers, and they will continue to be subjected to abuse by dishonest contractors and consulting companies. When we have Quantity Surveyors working alongside our construction managers, engineers and accountants, we will be able to pinpoint wastage across the entire value chain and root out corruption,” says Makhathini. Solving bottlenecks, managing contracts and providing legal input Quantity Surveyors on projects can help solve bottlenecks on-site and improve project delivery, says Mogodi. “As most professionals in the built environment know, the government is often a slow payer and this lack of adequate cash flow often leads to delays on construction projects. A Quantity Surveyor is in the position to work with contractors on site, work out what money needs to be paid for the value of the progress that has been made, and move projects forward in a systematic and cost-effective way. Having a Quantity Surveyor keep their pulse on project costs and ironing out issues with the contractor on site can drastically improve project delivery,” says Mogodi. Besides managing progress on-site and working with contractors, Quantity Surveyors can also assist with contract management before projects go to site and provide the construction expertise that is needed if and when a project ends up in court, adds Makhathini. “Many times, corporate lawyers are hired to represent government departments during the litigation process, but in some instances these lawyers don’t have experience with the JBCC, FIDIC, or other contracts that government uses for construction projects. These frequent disputes erode profit margins and ultimately affect project delivery. If a Quantity Surveyor is involved in the project since inception, they can ensure that the contract management was handled correctly and provide input to the legal teams who have been appointed for the litigation process. A Quantity Surveyor’s expertise can therefore assist in minimising costs related to project delays and litigation,” says Makhathini. Minimising waste When asked how government departments can be convinced of the value that Quantity Surveyors can bring to a project, Mogodi says that the result of a Quantity Surveyor on a project easy to see and quantify: there is no waste. “Quantity Surveyors are there to assist the contractor in making sure the client gets value for money and that there isn’t wastage on projects. If you don’t employ a Quantity Surveyor on your project, you are losing out. The projects with cost overruns are often the ones where no Quantity Surveyor has been appointed,” says Mogodi. Larry Feinberg, Executive Director of the Association of South African Quantity Surveyors, says it is incumbent on the government to recognise the deficiencies in project cost management and that appointing Quantity Surveyors will go a long way in alleviating corruption. “When Quantity Surveyors are appointed at municipalities and within government structures across South Africa, the mismanagement of funds will be substantially curtailed. While engineers, architects and other built environment professionals can do contract administration bills of quantities, they will never come close to being as meticulous and as accurate as trained Quantity Surveyors. When Quantity Surveyors oversee contractual and accounting budgets, government will be able to get clear cut answers as to why there are cost overruns on projects, which will reflect a better fiscus for our country, and provide government with stringent budget oversight mechanisms and ultimate accountability,” comments Feinberg. ENDS MEDIA CONTACT: Stephne du Toit, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on ASAQS please visit: Website: www.asaqs.co.za Facebook: The Association of South African Quantity Surveyors   The Sandton skyline-defining skyscraper, the Leonardo, is the tallest building in Africa. The R3-billion project, developed by 75 on Maude, a Legacy Group and Nedbank partnership, has already surpassed the former stand-out in Sandton, The Michelangelo. At 233m with 55 floors it also beats the 201m architectural height of the Carlton’s Centre, previously the tallest building in South Africa.
Coined as the pinnacle of luxury living in Africa’s richest square mile the Leonardo is intended to symbolise a beacon of hope in a trying economic climate in South Africa. Only local contractors and labour was employed on the project with each individual leaving their own uniquely South African stamp on the building. According to Jamie Hendry, Director at Legacy Development Management, this allows the Leonardo to radiate its own soul. Each visitor will therefore have a unique emotional journey during their time at the Leonardo. “Whether you’re walking through the art-filled public spaces, absorbing the ultimate lifestyle experience on level seven or the magnificent unobstructed views with a drink at the sky bar, the Leonardo will create unforgettable memories for many generations of South Africans.” The Legacy Group is known for its proud South African heritage and its investments in the country’s construction sector during times when others weren’t willing or able to take the same risks. Cost control for a skyline defining project “Estimating and controlling the cost of developing tall buildings is no easy feat,” says South African Association of Quantity Surveyors (ASAQS) member, Steven Schneid from S.M. Schneid Quantity Surveyors. “The initial capital cost estimate – which is vital in calculating the viability of the project at an early stage – could not be calculated based on data and information gathered from smaller projects. The nature of the development demanded detailed measurement on each specific floor. All calculations had to be done manually with more detail, fact-checking and number crunching than the team had ever encountered before.” The Quantity Surveying work started in 2015 with a number of amendments to the initial estimate. “We started by preparing mini bills of quantities for each aspect of work and sent these out for quotes,” says Schneid. “This enabled the team to remain agile in finalising a cost estimate that met the viability requirements of the project.” “The client made it clear at the outset that he wanted a world-class building design that was flexible enough to accommodate future changes. The tendering and negotiation phase demanded a coming together of the project team, contractors and sub-contractors to ensure that the client received the best value for money during a tough time in the South African construction sector,” says Schneid. “Understanding what is important to a client allows a QS to scrutinise costs and replace specified products for equivalent options that are more cost-effective while not sacrificing on quality and standards,” says Schneid. “Steven has been outstanding in all cost control aspects of the project. He has given a huge effort to the project and we have developed a relationship built on mutual trust. We truly value his dedication and effort throughout the project,” says Hendry. Hendry, who is also a Quantity Surveyor, says that Quantity Surveyors and the ASAQS – an organisation dedicated to upholding and elevating the status of Quantity Surveyors – will continue to play an increasingly important role. “Poor economic conditions, combined with all the changes and challenges in the local built environment, means that developers are looking for credible figures, accountability and reliable cost management. Experienced Quantity Surveyors are well-versed to manage this function,” comments Hendry. ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za, www.atthatpoint.co.za For more information on ASAQS please visit: Website: www.asaqs.co.za Facebook: The Association of South African Quantity Surveyors The ASAQS addresses late- and non-payment by national, provincial and municipal government19/9/2019  Photo: Christelle Bown, President of the ASAQS
A recent survey by the Association of South African Quantity Surveyors (ASAQS) shows that the majority of Quantity Surveyors experience late- or non-payment of contractors on national, provincial and municipal projects. ASAQS President Christelle Bown presented the survey findings during a panel discussion at the 2019 Master Builders Annual Congress, which was held on 9 September in Johannesburg. “Over 140 ASAQS members participated in the survey, with the majority of respondents saying they experience late and non-payment on government projects. The Minister of Public Works and Infrastructure, Patricia de Lille, recently said that her department had paid R106-million in outstanding invoices. While this is a step in the right direction, it is still only a drop in the ocean of the R6-billion of government debt, that needs to be paid to contractors and professionals in the built environment,” says Bown. The survey also highlighted that the Eastern Cape and Gauteng were the provinces where their members experience the most payment-related problems from government entities. “The Department of Public Works and Infrastructure isn’t responsible for the entire R6-billion in outstanding payments. Finding the sources of all the outstanding debt and addressing it with the appropriate departments and implementing agents will require a collaborative approach from built environment stakeholders,” says Bown. Accounting for violence and disruption on projects Another issue that was addressed during the panel discussion was how Quantity Surveyors should account for the community facilitation and safety measures that are needed to combat the ongoing violence and intimidation that has plagued many infrastructure projects in the country. There is a provision for a Community Liaison Officer in the bill of quantities for government projects. A possible solution could be the addition of a Social and Community Facilitator consulting role, which would be an additional cost to the client but could potentially minimise the cost of delays and damages from the construction mafia and other illegal activities on project sites,” says Bown. Closer collaboration needed On 1 August, the ASAQS and MBSA signed a Memorandum of Understanding (MoU) to work more closely together to address challenges in the local construction sector. The recently held Congress cemented this sentiment, with members of the ASAQS and the MBSA committing to working more closely together in future. “It is vitally important that the many stakeholders in the built environment continue with their current attitude of sincere and meaningful collaboration. These engagements create a platform that allows us to address the diverse and multi-faceted issues that our industry faces from a position of commonality. By keeping each other informed these stakeholder engagements can prioritise the central issues that are common to us all and simultaneously create action plans that deliver viable and sustainable solutions,” says Bown. She concludes by encouraging ASAQS members to participate in upcoming surveys and she compels other built environment professionals to do the same. “Input from different role players can help shed light on the backlog of outstanding payments for government projects. The ASAQS will continue to contribute to meaningful dialogue surrounding these issues. We endeavour to make a change for the better.” ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za For more information on ASAQS please visit: Website: www.asaqs.co.za Facebook: The Association of South African Quantity Surveyors  Photo caption: Signing of MoU between ASAQS and MBSA Back left: Roy Mnisi - Executive Director of MBSA, Mohau Mphomela Executive Director of MBSA North, Larry Feinberg - Executive Director of the ASAQS, Christelle Bown – New President of the ASAQS Front left: John Matthews - President of MBSA, Yunus Bayat – Outgoing President of the ASAQS
The annual Association of South African Quantity Surveyors (ASAQS) Conference was held on 1 August at the Century City Conference Centre in Cape Town. This year’s theme was ‘Shift towards opportunity’ and among the over three hundred delegates was the President of the Master Builders South Africa, John Matthews, President of the South African Institute of Architects, Dr Luyanda Mpahlwa, Stakeholder Director from the MEC office, Boingotlo Nthebe, as well as the Chief Director of Construction Sector Regulation at the National Department of Public Works and Infrastructure, Devon Pillay, among other esteemed guests. In his opening address, ASAQS Executive Director, Larry Feinberg, said that in an ever-shifting world where work is scarce and competition is fierce, the economies that thrive are the ones who continue to adapt and learn, as well as share their knowledge with others. “During my many conversations with Quantity Surveyors, skills development and training is consistently cited as one of the biggest challenges our industry faces. The Association will place sustained emphasis on delivering technical programs that strengthen our profession through education, training and upskilling. The way we do business is changing and the ASAQS continues to work towards ensuring that South African Quantity Surveyors remain world-class by staying ahead of changes in the industry,” said Feinberg. Green buildings outperform the rest Phil Barttram, MSCI Executive Director, gave a presentation on the ROI of green buildings. “Over the past three years, the Total Return for Green Star Certified Prime and A-Grade buildings has been higher than for non-certified offices driven by consistently better capital growth. This shows that there is perceived lower risk in the future income stream of certified offices.” According to Barttram, Green Star Certified buildings are more popular with tenants and building occupants. “Green buildings have more natural light and are generally more attractive for tenants. These buildings are resilient to increasing vacancies and the reduced perception of risk is underpinned by the lower vacancies and higher net income growth,” said Barttram. Strategically planning the next steps Deshun Deysel, one of South Africa’s leading female high-altitude mountaineers, gave an inspiring keynote presentation at the event. Deysel told attendees that although we can't always control what happens in our external environments, humans have full control over your thoughts. “Your thoughts become your reality, which is why you need to set your mind on the things you can control. In the same way that mountaineers regroup during an expedition, businesses should always go back to basecamp to regroup and strategically plan how they are going to move forward. South Africa is experiencing a basecamp moment. It’s time to regroup, rethink, and strategize the next move,” said Deysel. Dr Luyanda Mpahlwa gave a presentation on the importance of socially inclusive development. “Collaboration between the private and sectors are needed to avoid working in silos. Through collaboration, we will empower ourselves, inspire confidence and be able to contribute to a better future,” said Mpahlwa. During the event, a Memorandum of Understanding was signed between the ASAQS Outgoing President Yunus Bayat and MBSA President John Matthews. The ASAQS looks forward to continuing its partnership with the MBSA. ENDS MEDIA CONTACT: Stephné du Toit, 084 587 9933, stephne@thatpoint.co.za For more information on ASAQS please visit: Website: www.asaqs.co.za Facebook: The Association of South African Quantity Surveyors |
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