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Skills on Site Feb 20111
http://www.arcelormittal.co.za/

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2 Skills on Site Feb 2011

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February 2011

CopyrightAll rights reserved. No editorial matter published in Skills On Site may be reproduced in any form or language without written permission

of the publishers. While every effort is made to ensure accurate reproduction, the editor, authors, publishers and their employees or agents

shall not be responsible or in any way liable for any errors, omissions or inaccuracies in the publication - whether arising from negligence or

otherwise or for any consequences arising therefrom. The inclusion or exclusion of any product does not mean that the publisher or editorial

board advocates or rejects its use either generally or in any particular eld or elds.

COVER STORY

4 Stee Frae Structures the Way to go

POWER TOOlS

7 Usng a Te Saw

TimbER PROdUCTS

10 Varnshng Woo doors

COnCRETE and CEmEnT

15 Get Reay-xe Concrete

18 bung bock Project

JOininG

19 How to Reove dry Gue

Promech Publishing has a BEE

rating of 97.2%

Proprietor and Publisher:

PROMECH PUBLISHING

Tel: (011) 781-1401

Fax: (011) 781-1403

E-mail: [email protected]

Website: www.promech.co.za

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The Skills On Site team - Top: Susan Custers, publisher; Zinobia Docrat, production;

Raymond Campling, editor. Seated: Candis Allen, advertising sales; Catherine Macdiva,administration; Jackie Nene, subscriptions/circulation.

AcknowledgementsIn order to bring you the most up-to-date infor-

mation from around the globe, we make use of

Internet websites that are current and provide

information that is relevant to local builders.

Information from the following sites has been

included in this issue: WikiHow www.wikihow.

com, Stock.Xchange www.sxc.hu

ElECTRiCal

22 How to insta a Surface-mounte

Eectrca Outet

29lEadinG inFO

FindinG FinanCE

30 Speak to Your bank for

deveopent Fnance

SUCCESS STORY

34 beng Response for Your Own lfe

36 in TOUCH

22

1910 15

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ArcelorMittal is the largest steel producer inSouthern Africa and is at the forefront of pro-ducing material suitable for manufacturinginto steel sections to be utilised during the

building of steel framed houses. This building principleis exactly the same as that used for several years dur-

ing the construction of shopping centres and industrialbuildings, although on a smaller scale.

COVER STORY

Steel Frame Structures

the Way to goThe construction of houses using the steel frame concept is one of the ways that South Africa can address the

housing backlog facing all sectors of the market.

The construction of a Steel frame building commenceswith the basic steel frame design and from this a planis formulated to include the walls, doors, windows andauxiliary services like plumbing and electricity.

Cost lessThe cost of the Steel Frame building is slightly less

than the traditional brick and concrete type house,but the most signicant savings relates to the speed

of construction as well as material transport to andfrom the building site.

In fact there are so many advantages to using the

Alterations and extensions are relatively quick

and easy

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COVER STORY

steel frame concept for the building industry, thatthere is little wonder the market in other countries withsimilar weather conditions as South Africa, utilise thistechnique when building new houses.

Can withstand anythingArcelorMittal is the leading local supplier of steel to beused for the manufacture of metal framed houses in

this country and the quality of their product speaks foritself. The structural strength offered by their productsensures that houses built with their system are strongenough to withstand any force that nature can throwat it. Furthermore, the steel used inside the buildingenvelope is guaranteed for 50 years, so home own-ers can be sure that the house that they buy or buildtoday will last for 50 years.

For contractors the most important points to rememberwhen considering steel frame construction are:

Materials are more cost effective

Reduced transportation costs for building materials

Houses can be completed in half the time it takesfor a brick and concrete house

Easy to build straight and level rst time round

Services run inside frame so plug and plumbingpoints simply need to be measured and put in no wall chasing is required

Same building methods can be used no mat-ter what soil conditions are prevalent ie. Sandy,clay etc

Alterations and extensions are relatively quick andeasy so houses can be sold with plans for addi-tions already marked on. With the plans alreadyin place, homeowners are able to contact the

contractor at a later date whenever they decideto extend their house.

Quick and easyHome owners will nd that steel frame houses offerthem the following benets:

Quicker and easier to erect

Steel frame houses are very well insulated so thatheating or cooling costs will be lower.

Steel frame houses are built straight and levelso tting cupboards etc. is easier and more ac-curate

Additions and renovations are quick, easy andless expensive

Easier to heat or cool in severe climates

The time has come for government, developers andcontractors to look at steel frame construction asan alternative to conventional building practices.ArcelorMittal is one of the founding members of theSouth African Steel Frame Association (SASFA). To nd

out more about steel frame house construction visitwww.sasfa.co.za

ArcelorMittal South Africa, Hannes Basson, Tel: (016) 889 4046, Web:

www.arcelormittalsa.com

Strong enough to withstand any force that

nature can throw at it

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Diamond Products sup-plies saws to the in-dustry and has puttogether a guide

on how to use a tile saw ef-fectively:

Getting started Place your marked tile you wishto cut and place it aside for amoment

Fill the tank with water

Plug the pumps power cord into power unit. Makesure the pump power cord is placed so it will remainin a dry area once the machine is in use

When it is safe to do so, plug the power cord intothe outlet

Put on proper eye protection.

Flip the power switch located on the front of themotor to the on position

Before operating the tile saw, let the motor run forabout one minute and make sure the blade is turningat full speed and there are no unusual noises. If youfeel the units is not operating properly, do not use thistool

Cutting:1. Place your marked tile on the table and brace itagainst the upturned edge (fence) on the back ofthe table. Line-up the cut mark with the blade

2. Once the tile saw has been turned on, allow theblade to spin up to full speed. Watch to be sure thatthe pump is supplying a continuous ow of water to

the blade3. Keeping your hands clear of the blade, move thetable and the tile underneath the blade. Feed thetile underneath the blade very slowly. Do not forceit. If the rotational feed of the blade slows down sig-nicantly, then you are forcing the tile. No spectators

should be allowed in the working area

4. While cutting, watch to be sure that the bladestays wet. If it runs dry, check the action of the pumpand the water level of the tub.

5. If the motor stops suddenly, ip the power switch

to the off position. Wait about 15 minutes, remove

Using a Tile SawIn order to cut tiles properly

with a tile saw it is important

that you stick to a few ba-

sics. In this way your equip-

ment will last longer and you

will work more quickly and

effectively.

POWER TOOLS

the circuit breaker cap and push the reset button.

Using the parallel guide:If you have to cut a number of tiles to the same di-mension, using the Parallel Guide may save

you time.

Mark the rst tile to the right dimensions, allowingspace for grout

With the motor turned off, place the marked tileon the table against the fence. Line-up the cut markwith the blade

Loosen the locking knob on the parallel guide. Placethe hooked portion of the guide over the upturnededge of the table, on the side of the cutting groovewhere you have placed the part of the marked tilethat you want to keep and use after cutting. Theguide will be parallel to the tile and at a 90 angleto the fence.

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Here are FIVE solid reasons why you

should use a Cemcrete product in your

next construction project:

View www.cemcrete.co.za for the full range or visit

the Ideas Centres in Johannesburg (10 Telford Road,Industria) and Cape Town (1 Franschhoek Crescent,

Panorama) for loads of inspiration...

Cemcrete the cement innovation company.

cement innovation

1.Cemcrete boasts a product range of over 60 products:ranging from beautiful swimming pool plasters, internal

and external wall and oornishes, cement- and

acrylic-based waterproong systems, adhesives,

grouts, mortars; and more - well help you nd the

perfect product for your construction or renovation

project.

All Cemcrete products are made t-for-purpose,

bragging desirable qualities such as being UV-stable,

waterproof, durable, easy to maintain, hard-wearing,

and more, giving you peace of mind...

Cemcretes dedicated national sales and technical

teams are just a phone call, email or site visit away for

all your product and application queries.

Cemcrete offers you hands-on product training courses

at the Head Ofce in Industria, Johannesburg; fully

equipped to provide attendees sufcient backgroundand hands-on experience needed to tackle projects

with absolute condence.

Cemcrete is all about innovation - if you have a specic

problem youre not sure how to solve, well use our 37

years of experience to advise you on how one of our

products can solve your problem.

2.

5.

4.

3.

Cemcrete (Pty) Ltd www.cemcrete.co.za [email protected] Tel. (011) 474 2415

New Ideas Centre Opening 31 March 2011: 227 Jan Smuts Avenue, Johannesburg

the cement innovation company

swimming pool plasters

wall coatings

oor coatings
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Slide the parallel guide along the fence until itmeets the tile, keeping sure that the mark on yourtile remains in line with the blade.

Tighten the locking knob on the parallel guide

When you are satised that the tile is aligned with

the blade, and the guide is in place, and it is safe todo so, turn on the power switch and cut

Check to be sure that the tile has been cut toproper dimensions before using the parallel guideto cut your other tiles. From time to time test the t

of each tile as you continue cutting, to be sure theparallel guide has not moved.

Using the Angle Guide:Use the angle guide for cutting angled edges onyour tiles.

Attach the angle guide to the fence as you didthe parallel guide, using the two locking knobs to holdthe guide in place.

Use the cutting groove in the middle of the tableto brace the edge of your tile as you slide the tile andthe table underneath the blade.

Diamond Products, Tel: (011) 552 8310, Fax: (011) 552 8312, Email:

[email protected], Web: www.diamondpc.co.za

POWER TOOLS

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Door 1Bare wood doors

Previously unpainted timber doors should initially besanded smooth. Fill any cracks with wood ller andsand this down to nish ush with the timber surface.

If knots in the timber are sticky or show signs of excessresin rst remove this by wiping over the area with

White Spirits to remove the resin.

Then coat the area with Cedar Knotting Compoundto seal the knot. Loose knots are best removed andthe resulting holes lled or they should be glued back

in place. Use an exteriorgrade of wood ller or

wood glue if the wood isdestined for outside.

Door 2Previously painted

doors

Wash painted timberthoroughly with waterto which Cedar SugarSoap has been added.This serves not only toclean the surface butalso to remove someof the gloss. A gentlesanding down with ane grade sandpaper

will have the same ef-fect. New paints do

not apply well to glossysurfaces and will chipoff easily.

After cleaning andsanding the surface,inspect it closely for anysigns of defects such ashairline cracks or surfacebubbling. Pay specialattention to joints whichare normally the rst

place to suffer from the

Varnishing Wood DoorsContractors need to make sure that the entrance to

the property they have just built shows the quality

of the building project and cant afford to do a bad

job of painting or varnishing the doors. Cedar Paints

Shane Weeden ex-plains to Skills On

Site readers how

to do it properly:

effects of deteriorating paint lms.

Small areas showing signs of slight deterioration maybe repaired without having to strip the entire door.Sand the affected area on the door to remove alldefective paint leaving only paint in good condition.If bare wood is exposed, prime the area with CedarWood Primer and when dry, sand to blend the primerin with the old paint lm.

Door 3

Previously painted timber doors in poor conditionIn virtually all cases where old paint lms, particularly

those outdoors, have broken down allowing the timberbelow to become exposed to moisture penetration,the only answer is to strip off the old paint from thedoor, make good and start from scratch.

Stripping off oil based paints from doors can beachieved in one of three ways:

1. Physically sanding off

2. Removing with Cedar Strip-It

3. Removing using a hot air stripperPreviously unpainted timber doors

should initially be sanded smooth

Wash painted timber thoroughly with water to which Cedar Sugar

Soap has been added

TIMBER PRODUCTS

10

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Option 1Removing paint with chemical stripper

Suitable for use on oil based paints only, these chemi-cal strippers are brushed onto the paint surface, leftfor a while to soften the paint, and then the remainingstriper and softened paint are scraped off.

Galvanised nails that are visible and even rusted mustbe treated before being painted. Countersink thenail heads and cover them with an acrylic or silicon-ized ller. Each nail head should be spot primed with

Cedar Waterbased Metal Primer then applied witheither a Cedar paint or wood care product.

Option 2Removing paint with a hot air stripper

This is probably the quickest and easiest method of

removing paint. It works by blowing air across an hotelectric element through a narrow nozzle at about 300to 600 C, so great care must be taken with using.

Remember air at this temperature will crack glass, meltPVC window frames etc. If held in place long enough,will set paint and inammable surfaces alight, so be

careful. Wear suitable gloves, eye protection andlong sleeves. Test on an old piece of painted timber

to establish time and distance required so as not toburn the wood. For areas near glass, either sand oruse a paint stripper near anything made from PVC.

Option 3Refurbishing old stripped timber

The removal of layers of paint will undoubtedly uncoversurface imperfections in the door and there may beareas of rotten wood which must be treated before

TIMBER PRODUCTS

11
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TIMBER PRODUCTS

Removing paint with hot air is probably the quickest

any new paint is applied. Rot is most likely to havedeveloped around door frame joints so always inspectthese areas most carefully. Use a penknife blade or ascrewdriver to test the hardness of the timber in such

areas and if the blade penetrates easily you can besure the door is rotten. Treatment usually means cuttingaway the affected wood, treating what is left with apreservative, and then lling in the gaps. Large pieces

of timber can be replaced with new treated timbercut to shape and bedded in the ller. If the rot has

spread over a wide area you may have to considerreplacing the door or frame.

If bare wood stripped timber is not properly treated,with all the defects repaired, the new paint will notapply properly and its useful life will be greatly re-duced.

Finish itOnce all the preparation work is complete you arenow in a position to choose your preferred Cedar Paintor Wood Care product to beautify your door.

Remember when choosing paint or wood care prod-ucts for a specic job or application it is important

to consider the quality of paint to make sure the

characteristics of thepaint are suitable forthe work required.Cedar Paint has a

full range of productsto meet any needs.

Cedar Paints, Shane Weeden, Tel (012) 804 2130, Fax (012) 804

8517, Email: [email protected]
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ch o i

ce

The

A P P R O V E D

EBConlyavailableinthegreaterGaute

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As a professional builder I always

choose the star performer - A1 All

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down.

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The Concrete and Cement Institute (CNCI) highly

recommend that contractors obtain their ready-mix concrete from members of the SouthernAfrican Readymix Association to ensure quality

and service. Here the CNCI gives a few good reasons

to use readymix:

The readymix supplier has the resources and thetechnical expertise to provide a range of mixes,

matching the right mix design to the application.

The quality of the concrete is guaranteed. Sitebatching tends to have a higher risk of strengthvariability due to the lack of sophistication of smallbatching plants.

CONCRETE AND CEMENT

Get Ready-mixed ConcreteWhen working on big building projects there are many benefits to ordering concrete from a reputable

readymix supplier, especially when speed, quality and large volumes of work are being carried out.

Concrete can be ordered to t in

with the total construction programme,and delivery times can be changed atreasonably short notice, eg. to avoidplacing in bad weather.

One load of ready-mixed concrete

can be discharged directly to severalpositions on site, saving time and labourmoving concrete in wheelbarrows.

Discharge from a readymix truck isfaster than from wheelbarrows

Site batching in residential areasraises concerns about noise levels andduration, messing of frontages/vergesand potential contamination of stormwater drains

No storage of materials on site means

When

calcu-

l a t i n grelative

costs, take

into account

the total cost

of the materials

delivered to site

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When youre building a home, you need strength you can rely on. For over 100 years, the

consistent and reliable strength of PPC Cement has helped engineers, concrete product

manufacturers and builders just like you to do exactly that. From renovations around the

house to walls and extensions, if you can think it, you can build it with PPC.

For more information call our toll-free line on 0800 023 470 or visit www.ppc.co.za

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less theft, and no environmental concerns and noclean-up operations after construction.

5 Things to remember1. Most readymix suppliers also offer apumping service. Where access is difcult,

pumping moves concrete quickly acrossdistances and heights that wouldotherwise be a problem. Ready-mixed concrete offers a speedy,cost-effective alternative tosite batching.

2. When calculatingrelative costs, take intoaccount the total cost ofthe materials delivered tosite, storage, wastage and

theft, the hiring or purchasingand operating costs of the nec-essary plant, as well as the cost oflabour and supervision.

3. When you ask for a quotation for ready-mixed concrete, you need to specify concretestrength and workability (slump), as well as thesite address. You will be given a price per m de-

livered to site.

4. When you accept the quote, you place theorder for the total amount of concrete required

and give details regarding project start date,amount of time between trucks, etc. Atthis point, you will be given payment

options and conditions.

5. Choose a reputablereadymix supplier. The South

African Readymix Associa-tion (SARMA) is a national

body that sets standardsand guidelines for en-

vironmental, safety andquality issues. All members

must abide by these and are

audited to ensure that they meetthe necessary requirements.

Concrete and Cement Institute, Hanlie Turner,

Tel: (011) 315 0300, Fax: (011) 315 0584, Email:

[email protected], Web: www.cnci.org.za.

South African Readymix Association, Mary-Ann Sutton,

Tel: (011) 791-3327, Email: [email protected], Web: www.

sarma.co.za

CONCRETE AND CEMENT
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CONCRETE AND CEMENT

Adle de Lange,Concrete andCement Institute(CNCI) Technical

Marketing Consultant: Hu-man Settlements, recentlyvisited the site of the newproject, which involvesCouncil for Scientic and

Industrial Research (CSIR)input and is being devel-oped by M5 DevelopmentsCape.

CSIRs design aim is to useconventional building ma-terials innovatively and tomaximise the use of en-ergy- and water-efcient

principles.

De Lange says the dimen-sions of the houses adhere

Building Block ProjectAn innovative new housing pilot project at Kleinmond, in the Western Cape, is exploring the potential to im-

prove the sustainability of low-income housing within the budget of government subsidies.

Cost efcienct, no wastage is achieved through the use of modular blockwork

at the new Kleinmond housing development.

to the modular dimensions of the concrete masonry

blocks with window and door openings positionedto match the modules of the blocks. This modularapproach reduces the need for cutting blocks onsite which cuts down on time, waste and transportcosts.

She says roof overhangs, as well as window and dooropenings, are designed to enhance the heating andcooling qualities of the houses. The overall design alsoallows for later extensions to the houses with minimalimpact on the original structures.

Solar water geysers and solar panels are tted to the

dwellings with large water storage tanks installed for

rainwater harvesting. The unique shower features adeeper shower tray than usual to allow for bathingof children and the washing of clothes without usingtoo much water.

The CSIR will return to the project a year after comple-tion to monitor performance of the units and evaluatethe long-term benets. The potential exists to include

these innovations on a larger scale in future subsidisedprojects, de Lange adds.

Concrete and Cement Institute, Hanlie Turner, Tel (011) 315 0300,

Fax: (011) 315 0584, Email: [email protected], Web: www.

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JOINING

With the right tools and technique it is not as dif-cult as you might think. Here is how:Steps

Decide on an adhesive remover to use. There aremany types of removers that you can choose.

Apply the adhesive remover to the adhesive witha brush or trowel. Allow the adhesive remover to

sit for as long as the package directions recom-mend.

Test the surface by scraping a small area to seeif it is ready. If the adhesive does not come upeasily, allow the remover to sit a little longer.

Scrape the entire surface with a scraper, puttyknife or a trowel with a at edge and remove as

much of the adhesive as possible.

Apply another coat of remover if needed. Repeatuntil you have removed all the adhesive.

Wipe up all the excess adhesive and rinse the areathoroughly with water. Wipe it clean with rags.

Allow the surface to dry thoroughly before painting,staining or applying new carpet, wood ooring

or tile to the concrete.

Tips You may nd that it is easier to remove the adhesive

by working in small sections at a time. This will preventwasted adhesive remover as you work.

Read the label directions before using the adhesiveremover to check the average drying time. This willensure that you do not let the product sit too long ornot long enough. Also, be sure to note any warnings

on the label. You may want to try using the adhesive remover ina test area to get a feel for how the remover works.This will also tell you whether you need a strongersolvent-based remover.

What you need Adhesive remover

1.

2.

3.

4.

5.

6.

7.

How to Remove Dry

GlueIf you are laying tiles or carpets and get some of the adhesives (glue) on concrete that is to be painted or cov-ered you need to remove it before you carry on.

Brush or trowel

Scraper, putty knife or at-edged trowel

Water

Rags

Remove adhesives from bare concrete before grouting tiles

Once the adhesive has been removed wash the concrete down with water

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ELECTRICAL

Step one:Positioning and mounting. Once you have a basicidea as to where you want the new electrical outletsituated, mark the screw holes with a pencil. You mayhave to take the plug off the mounting box to getaccurate xing points.

Installing an additional electrical outlet may seem rather simple, but it is by no means something that a nov-

ice can do. You must have the adequate qualifications and know what you are doing. An incorrectly wired

socket can cause serious damage and may even result in death. Building contractors can use these guidelines

to supervise on site electricians.

D r i l lholes into the wall,however be verycareful that there are no

wires or plumbing pipes directly behindwhere you are drilling.

Fix the mounting box to the wall by screwingit in.

Step two:Running the electrical cable from an existingwall socket to your new one.

Locate your nearest live electrical outlet or light tting

that you are able to draw power from. Carefully runthe cable from this point to the new one. Fasten it tothe wall by using cable clips or a suitable glue.

Smoking hair and a dazed look on your face are the least of your worries.

mess around with electricity you can be seriously hurt, can set the site on

even kill yourself

How to Install a Surface-

Mounted Electrical Outlet

What you need:Before you can begin, you need to take a trip toyour hardware store and buy a plug box that fastensto the wall. The box will also house the electricalcables and is also what you will screw the actualplug to.

You will also need a suitable amount of high-voltageelectrical cable that will carry the electricity froman existing plug to the one you are installing.

Tools needed include an appropriate screwdriver,drill and drill-bits wire-strippers and side-cutters.Silicone or other sealing materials will be neededif you are installing the outlet outside.

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Step three:Connecting the new cable to the power source.

Before you begin anything, SWITCH OFF ALL THEELECTRICITY. It doesnt help to switch the plug socketoff at the wall or to switch the light off as there is stillelectricity owing trough the circuit. You need to nd

the correct circuit breaker in the fuse box and switchthat one off. If you are unsure which circuit breakercontrols which circuit, be safe and switch and turnthe main circuit breaker off. This will stop the ow of

electricity to the entirehouse or site.

Test to make sure thatthe electricity is off. Youcan do this by using avoltmeter or even byplugging a drill into thesocket to see if it works.If it doesnt, you are safeto start tapping into yourpower source.

Remove the cover plate

and electrical socket orin the instance of a lighttting, remove the cable

housing. Bare the endsof both the new and oldcables and then connectthe live to the live, neutralto neutral and earth toearth. Make sure theyare properly connectedby tightening porcelainwire caps to the joins.Then insulate them with

Make double sure you have turned off the power supply to the electrical

source you plan on tapping into

electrical insulation tape.

Replace all ttings and/or covers, being very careful

to make sure no screws come into contact with thewires or no wires get kinked.

Step four:Threading and connecting the newly laid wire intoyour new plug.

Screw a cable coupler into the cable housing mountedto the wall and thread the cable through. Tighten thisas much as possible until it forms a waterproof sealaround the cable. Bare the ends of the wire and con-nect them to your new electrical outlet. Follow theinstructions on the back of the plug if you are unsurewhich wire goes where.

Screw the plug back onto the housing, once again,being careful not to kink any of the wires.ways test to make sure there are no live wires

efore you begin making connections

Where needed, use porcelain caps com-

bined with electrical insulating wire to

make sure your connections are strong

and waterproof

Remove the cover plate and electrical socket from its tting

in order to fasten your new wire to the existing plug

ELECTRICAL

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ELECTRICAL

Strip the ends of the wires, but just

enough to create a solid connection with

the other wires. Too much copper will

result in an electrical arc. Too little, and

your connection may come undone

Follow the instructions on the back of the plug if youare unsure which wire goes where.

Screw the plug back onto the housing, once again,being careful not to kink any of the wires.

Step five:Turn the electricity back on at the switchboard andtest your newly installed electrical outlet.

Important things to remember:ALWAYS MAKE SURE ALL ELECTRICITY IS OFF

Always ensure the circuit you are installing new

plug on has the available capacity to handlethem and any appliances that may be operatedfrom them.

When installing a plug out doors, try and install itin a place where it is protected from the sun andrain. Water and electricity dont mix well together.If your newly installed outlet will get wet, makesure you buy a waterproof housing, make sure itis properly sealed at all times and always makesure it is dry before using it.

Leave it to the professionals. DO NOT attempt

this if you are not a trained electrician. These are

merely guidelines for building contractors to followwhen supervising on site electricians.

In many cases, simply buying an extension cordand running it to where you need power is safer,more convenient and cheaper. It also allows moreexibility as you can move it around afterwards.
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LEADING INFO

These statistics are provided exclusively for Skills on Site readers by Databuild, the leading provider of construction related information in

South Africa. Databuild has been providing information for thir ty five years and tracks projects from planning through to awarded stages.

Each month Databuild will provide statistics reflecting trends in the industr y.

For more information about Databuild please contact us on (011) 259-4500 or visit us at w ww.databuild.co.za

Value of awarded projetcs by province in Rbillions

Province Value in Rbillions

Eastern Cape 4.69

Free State 3.04

Gauteng 18.16

KwaZulu Natal 7.96

Limpopo 5.41

Mpumalanga 3.06

North West 1.26

Northern Cape 1.98

Western Cape 10.34

Grand Total 55.90

CIDB

GRADING

CIDB

Grade 1

Value in

Rmillion

CIDB

Grade 2

Value in

Rmillion

CIDB

Grade 3

Value in

Rmillion

CIDB

Grade 4

Value in

Rmillion

CIDB

Grade 5

Value in

Rmillion

CIDB

Grade 6

Value in

Rmillion

Eastern Cape 3 1.00 18 9.02 85 107.24 80 254.80 57 283.98 61 550.73

Free State 8 6.20 13 15.93 15 39.73 20 64.23 20 226.68

Gauteng 13 12.25 35 75.55 29 133.55 28 280.64 38 635.97

KwaZulu Natal 9 170.99 35 26.83 119 294.29 89 230.46 55 321.72 67 638.44

Limpopo 4 5.70 50 104.32 71 267.52 75 593.83 39 505.60

Mpumalanga 5 9.61 11 7.72 40 62.26 55 175.11 19 94.35 12 115.20

North West 1 5.30 5 2.60 15 19.38 17 39.00 14 68.39 12 144.82

Northern Cape 1 0.60 11 11.80 24 33.29 14 59.25 7 34.70 11 142.66

Western Cape 6 1.80 135 59.49 140 196.26 87 219.60 39 197.04 46 473.48

Total value per

grading in Rmillions25 89.29 240 141.60 521 908.50 457 1419.02 314 1938.88 306 3433.58

2
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FINDING FINANCE

Carollize Laing, head of First National Bank

Affordable Housing Division gives Skills OnSite readers that are interested in developingproperty a head start in getting the nance

needed.

Dealing with banks is a daunting task for most of us, and as a property developer you may be battling with

questions such as: who do I need to speak to at the Bank, how do I get the Bank to believe in the project,

what will they require of me?

Carollize Laing

Who to approach in the BankAll the commercial banks in SA haveproperty nance units which you can

approach directly. Their contactdetails would be available on theirwebsites, or alternatively you canapproach your closest branch and

they will refer you to the correctpeople.

Preparing for your meeting

with the BankYou need to create a professionalimage with the Bank, therefore beprepared for the meeting with theproperty consultant. Give the personyou are meeting a accurate and to-the-point overview of the project ie.where (location), what (no of units /stands), how (feasibility of the proj-

ect, and sales plan), and who (yourhistory / track record in the propertyindustry and contractor and profes-sional team details).

How would the Bank typically

assess development finance?As the potential prot is important for

you as developer, the Bank needsto prove to its shareholders thatmoney lent to customers were doneso responsibly and that the Bank alsomade the required prots on these

funds to pay its investors.

Any bank would consider the following:a) track record as a developer in similar type andsize projects

b) the nancial strength of the developer

c) the location of the proposed project and thedemand for the product at the suggested price

d) the equity contribution offered and the loan re-quired

e) zoning / property rights

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f) the professional team and contractor(s) em-ployed

The Bank would typically prefer to see that you havedeveloped similar type projects in terms of size andproject value. If not, it is suggested that you partnerwith an established developer who can offer therequired track record.

While this may need that you share the potential

prots, an established developer will satisfy the Bankin terms of delivery risk, in other words, making surethat the project can be delivered on time and withinbudget. Over time you will build credibility and a trackrecord with the Bank and can look forward to doingprojects on your own in future.

The nancial strength of the developing company

and its shareholders will be assessed. The Bank needsto satisfy itself that the nancial standing of the com-pany and its shareholders is good enough to coverany cost overruns or cash ow shortfalls which may

come about during the development period.

Also, the shareholders of the company borrowing willbe needed to sign surety for the loan, and while theproperty remains the primary security, the Bank needsto be comfortable that any shortfalls on the loan canbe recovered from the sureties. This is especially truewhere the project fails and the property may haveto be sold on auction.

The Bank will compare the proposed product offeringto what the market in that location demands andthe price it can afford. It is critical that the product iscomparable, since the repayment of the develop-ment loan will ultimately rest with the sales generatedfrom the project.

The Bank will also insist that a number of stands / unitsbe sold off-plan to test demand before any moniesare disbursed from the development loan. The Bankwill normally involve their home loan divisions to testthe product and its price and decide to lend to end-users in the project. It is important that the developerapproaches all the major banks to test if they willgive bonds.

A Bank would not want to fund 100% of the develop-ment costs since this would imply that the Bank carriesall the risk and that the developer has very little tolose when the project fails. For that reason, it standsto reason that the Bank will require the developer toinject a certain amount of cash before any funds aremade available from the development loan.

It is important to understand that once these fundsare spent by the developer, it will only be recoveredfrom sales income AFTER the Bank has been repaid

FINDING FINANCE

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ie. the cash contribution by the developer will stay inthe project until repayment of debt, and will not berefunded via progress draws on construction.

In addition, the developer will be required to nance

the VAT component of the monthly draws, since it canbe claimed from the South African Revenue Service(SARS) as input VAT immediately. Similarly, the devel-oper will have to pay VAT on the sales price of eachunit / stand across to SARS on date of transfer of theindividual properties to the end-users.

It is important that the applicable rights have beensecured by the developer before any funds underthe development loan will be disbursed. In otherwords, the Bank needs to be satised that the de-velopment undertaken is legal in terms of approvedzoning, and that nothing can prohibit the Councilfrom issuing occupancy and clearance certicates

upon completion.

These are critical steps in the process of letting end-users move into their properties, and ultimately effect

transfer which will result in the ow of funds to repay

the development loan.

As with the developers track record, the professionalteam will be assessed in terms of their experience insimilar size developments. The Bank will need to seeeach member of the professional teams companyprole and PI (professional indemnity) cover from a

recognised insurance company.

As far as the contractor is concerned, the same expe-rience test will apply. In addition, the Bank will insiston adequate contractors all risk insurance, whichwill cover the building works during the constructionperiod. Should any damage occur to building worksduring the construction period, the developer canclaim under the all risk insurance policy.

Where the construction of sectional title units or free-

hold top structures are concerned, you need to ensurethat the contractor is registered with the NHBRC as

an approved builder. The registration certicate will

indicate the validity period and the number of unitswhich the contractor has been approved by theNHBRC to build during a single calendar year.

It will also be required that the contractor enrols eachunit with the NHBRC which will effectively give theend-user the right to claim from the NHBRC shouldany structural defects occur in the rst 5 years after

construction.

While it may look like a daunting task, a good relation-ship with your bank is important to ensure the successof your development. The project values are simplytoo big for many of the developers to fund from cashresources. Development nance from a commercial

bank is often the best solution.

It requires you to look at the project from the Bankspoint of view, but will ultimately prompt you to thinkabout all the risk factors and mitigate them adequatelyto ensure the success of your development.

First National Bank, Tel: 087 575 9404

FINDING FINANCE

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SUCCESS STORY

Morongwe Mathabathe has only been in theindustry for a few years, but has alreadyrisen to a junior management position withinTaupride Projects, a leading construction

project management company. The reason that shewas chosen as a successful personality is the factthat she is making headway in a career that is oftendominated by men and that is not very glamorous.

Also, she has chosen to follow her dream career in

construction even against the wishes of her closestcircle of friends, who would have preferred that shework in an ofce environment with all the luxuries that

go with that career.

Construction managementMorongwe has been with Taupride for almost a yearand already she is amazed by how much shehas learnt. Although Morongwe believed thatshe would be suitable for a job in constructionmanagement she nds that her role in project

management encompasses a much broaderscope of work and is very satisfying. She jokesthat while she nds managing time and resources

challenging, her job is more about managingpersonalities. It is clear that the last year forMorongwe has been a time of tremendouspersonal growth.

Some of the biggest challenges Morongwe hashad to overcome in getting to this point includecriticism regarding her choice of profession andnding her place in the industry. Morongwe has

always known how to prioritise work and play; asa result she matriculated with good results.

Her initial interest in construction stemmed fromvisiting construction sites with her father who has

In past issues we have looked at successful people in the industry and people that have reached the top oftheir career despite the odds. In this issue we take a different approach and focus on a young person that is

on a path to success.

been in the business for many years. After high schoolMorongwe studied Building at the Durban Universityof Technology, she then went on to do her in-servicetraining with Taupride before registering for her B-techin Construction Management.

Early interestIn the early days when Morongwe was asked whatshe was studying she received some strange reactionsto the news that she was in fact studying building.

Some of the strangest remarks include being askedwhy she didnt capitalise on her good looks and be-come a model whilst others suggested she becomean accountant. But it was not to be. Morongwe wasdetermined that this was the eld she would enter.

Morongwe Mathabathe

Building and construction is often a male dominated career

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Looking back, she smiles at the memory of herrst day of Tech when her lecturer informed

the class that no-one graduates from thiscourse in the recommended three years.

Today she is very proud of the fact that shedid in fact graduate within three years andwith good results.

Morongwe stresses that she wants peopleout there to understand that construction isan incredibly broad eld and that it includesmany sub-elds or trades. It takes people with

diverse skills and abilities to see a projectimplemented successfully.

Project managementIt takes designers, managers and all kinds

of doers, she says. As an example of the

preconceptions which exist she tells me thatshe was once asked how she would push awheel barrow. It turns out that pushing wheelbarrows has not been required of Morongwealthough she divides her time between theofce and the various construction sites.

It was only in Morongwes fourth year of studythat she began to really feel a level of com-fort with her decision to study Building andConstruction. It was through her involvementwith Khuthaza that this was achieved. Moron-gwe was part of a pilot student programmewhich for her served as an introduction to

the industry.

It was during these Saturday workshops thatshe began to get an understanding of thevarious construction related elds. In addi-tion she also beneted tremendously from

the expert advice on related topics such asnance and personal branding.

Personal developmentMorongwe is clearly very passionate abouther own life. She is self motivated and alwaysnds inspiration through the successes ofothers. Morongwe is the rst female in her

family to achieve a tertiary qualication andwhilst she is quite cognisant of the fact thatshe is a role model for others she does notfeel burdened by this.

She believes in setting goals and visualisinga future state until it becomes a reality. Heradvice to others is simple, she says show up,pay attention and ask questions.

Taupride, Morongwe Mathabathe, Tel: (011) 465 1530,

Fax: (011) 465 3358. Khuthaza: Tel: (011) 275 0268,

Fax: 086 648 6379, Web: www.khuthaza.org.za, Email:

[email protected]

Building is not glamorous and despite Morongwe's good looks she is prepared to get he

hands dirty on site

This smart lady obtained her B-Tech in Construction Management

Morongwe's career is set to reach the sky

SUCCESS STORY

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In TouchHelping small businessesA mentorship program has been introduced oneThekwinis R400million rand Water and SanitationProject, to supply drinking water and toilet facilitiesto more than 300 informal settlements throughoutthe municipality.

The project started in January 2009 and is using thesmall business development model, which was suc-cessfully run by the citys award winning AsbestosCement (AC) Pipe Replacement Project.

Our aim is to develop skills from within the community,so that large municipal projects serve as an effectivetraining ground for small business development, says

eThekwini project executive Alan Kee.Already 142 ablution blocks on 71 sites have beenhanded over in 34 informal settlements locatedthroughout eThekwini. A further 392 containers will behanded over to various communities early in 2011.

Aurecons lead project manager Evan Smith statesthat the sub-contractor development programmewill be independently assessed based on agreedoutcome targets.

Each of the eight local sub-contractors works with oneof the main contractors on the project. In addition,mentoring is provided by professional mentorship

consultants, Lwazi Projects.Mentorship expert, Willie Rossouw of Lwazi Projects,has developed a scorecard which monitors theprogress made in key areas by each sub-contractor.The scorecard gives instant feedback on key resultareas such as site costing, construction programmingand stafng.

In addition, fortnightly workshops are held by thementors, to help sub contractors come to grips with

these and other important concepts in constructionwork.

I am learning a great deal about managing anddeveloping a successful business, says Busi Ndlovu

a site agent with Royal Africa Trading, one of thesubcontractors on the mentorship programme. Oneof the keys to success is to identify and train key staffusing the workshops conducted by the mentors.

Community buy-in is an important part of the project.Locally recruited community liaison ofcers are on

hand to educate communities, so that the healthbenets related to having access to clean water and

sewage facilities are clearly understood.

The project is creating employment within the com-munity by using local workers.When complete, caretakersare selected for the ablution

blocks from within the informalsettlement.

We are delighted with theservice delivery goals whichare being achieved by theproject. The provision of ba-sic sanitation is an importantpart of eThekwinis on-goingstrategy, says Alan.

Aurecon and eThekwini Water and

Sanitation, Evan Smith, Tel: (031)

714 2554

Precious Chiliza and Gugu Xaba of Nomangisi Construction work with

mentor Willie Rossouw during a training session which took place in

Durban recently. Workshops are held on a regular basis as part of the

projects mentoring programme

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In TouchBuilding women in ColignyFirst National Bank (FNB) in partnership with the National Department of Human Settlement (NDoHS) hostedthe Womens Build Initiative in the North West Province recently as part of its commitment to creating a market

for quality affordable housing. The bank also announced a R50 000 sponsorship to the local community.

The initiative is an annual event which relies heavily on donations and partnerships with the local community,local government and private sector. With FNBs commitment to support government in the provision of housing

solutions of the highest quality and contribute to the housing needs of the country the challenge was to build54 houses in the Coligny community in total. This year FNB Housing Finance, Public Sector Banking and FNBs

volunteers gave their time and skills to the community and were active in the building of the 54 homes.

Our contribution to the Coligny community forms part of an ongoing commitment from FNB, as part of a

community-based response, to provide human support and make a real difference to the families residingin their newly constructed homes. We are proud of our ongoing support of the Womens Build Initiative andmore so proud to be given the opportunity to contribute positively to addressing the housing need in South

Africa, says Marius Marais, CEO of FNB Housing FinanceHome ownership is more than justproviding shelter. For a lot of women,property ownership begins a processof dignity and nancial freedom.

We are proud as a bank to havebeen able to make a contributionto create access to the nancial

services market for women, addsElizabeth Mushonga, CEO PublicSector Banking.

First National Bank, Busi Mngome-

zulu, Tel: (011) 371 9124, Email:

[email protected]

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In TouchPPC digs in to make a differencePretoria Portland Cement (PPC) recently planted170 trees in Extension 9 of Alexandra, one of SouthAfricas oldest townships. Run in partnership with Foodand Trees for Africa (FTFA), the initiative is aimed atinstilling local residents with a sense of pride in theirsurroundings.

The land, originally designated for road construction,has been rezoned for residential development andis now home to 14 000 previously disadvantagedfamilies living in free-standing and double-storeyRDP houses.

PPC is extremely proud to be part of the FTFA project.

The allocation of houses continues to be one of themost challenging and emotive issues across SouthAfrica. By planting trees in areas such as Alexandra,PPC is able to assist the community in putting downroots and making the area feel like home, said Fran-cie Shonhiwa, PPC CSI manager.

While that initiative improves the area aestheticallyit also creates awareness around the importance ofenvironmental conservation andenhancement. At PPC we arededicated to giving back to thecommunities we operate in. Throughinitiatives such as these we are

assisting in creating a sustainableenvironment for future generations,said Shonhiwa.

PPC Cement, Nomzamo Basson, Cell: 082 870

4235, [email protected]

developers to increase the number of stands offeredfrom 445 to 835. Thorntree View East Extension 6 is being

nanced by Nedbank Corporate Property FinancesAffordable Housing division and is 100% complete.

This increase in the number of stands has also resultedin the provision of smaller stands in phases threeand four, which willprovide buyers witha more varied prod-uct range to choosefrom. This is ideal for anarea such as Soshan-guve, where marketresearch and buyingpatterns indicate that

the affordable hous-ing consumer prefersto live in the samearea, upgrading tobigger houses as theyprogress in terms ofearning power.

Manie Annandale,

head of Nedbank Corporate

Property Finances AffordableHousing Unit says that the bankneeds to be responsive in itsfunding approach to ensure thedeveloper has the support of itsbank to move with the marketand provide the variation of standsizes and prices products that themarket demands, and applaudsSafrich for its exible approach.

Package prices range from R199000 and monthly repayments start-

ing at R1999. The cost of eachindividual unit includes transferfees, plans, NHBRC costs, municipal

connections and building costs.11 different house plans are avail-able ranging in size from 40m to90m. All units on offer have aminimum of two bedrooms andone bathroom.

Nedbank, Corporate Property Finance

Affordable Housing, Manie Annandale,

Tel: (011) 295 6647, Email: maniea@

nedbank.co.zaEdwin Makushu of Food and Trees planting a PPC

donated tree in Alexandra Extension 9

Manie Annandale

Affordable housingdemand

The Thorntree View Affordable Hous-ing development in SoshanguveEast, which is being developed bythe Safrich Group of Companies, hasbeen upgraded to almost doublethe number of stands.

85% of the development was soldout after six months, prompting the

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http://www.buildit.co.za/http://www.buildit.co.za/http://www.buildit.co.za/

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http://www.fnb.co.za/

sos: feb 2011

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