Construction and Property Corner ::: 04 August 2023

Fri Aug 4 14:45:41 CAT 2023

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Construction and Property  Corner ::: 04 August 2023 

 <https://www.hyundai.co.zw/> 

ü  Zimbabwe experiences increased demand for properties   

ü  Procurement clarity and prosecutions key to tackling construction site
disruptions

ü  Artemis returns to full construction at Blackwater

ü  Climate targets lie in the dust unless construction can tap young talent

ü  CNY construction industry prepares for Micron, new economy

ü  Bulawayo to become an investment city of choice   

ü  Construction begins for downtown Elon plaza

ü  Zimbabwe experiences increased demand for properties 

ü  Signature Hwange Units 7 and 8 add spark to Zim-China relations

ü  NIGERIA: Lafarge launches “Eco Label”, a low-carbon cement for
eco-construction

ü  La Campagne commences construction of African Tourism Free Trade Zone in
Antigua and Barbuda

 <https://www.willdale.co.zw/> Zimbabwe experiences increased demand for
properties   

ZIMBABWE’S property market is experiencing increased demand for properties
due to a growing population as well as out-dated stock a development that
offer significant growth opportunities. property company Tigere Real Estate
Investment Trust (REIT) has said.

The firm says tenant demand within most sub-sectors remains strong due to
the shortage of quality stock.

In its abridged financial statements for the half year ended 30 June 2023,
the property firm said the property market continues to see transactional
growth with sale of existing stock and numerous developments taking place
across the country.

“Steps to improve the regulatory environment for the property market are
being taken by industry and Government, which will make it easier for all
investors to participate.

“Increased demand for properties due to a growing population as well as
out-dated stock has also provided significant growth opportunities. Tenant
demand within most sub-sectors remains strong due to shortage of quality
stock.”

The country’s commercial and residential property market has weathered many
odds as evidenced by the ever-presence of ongoing construction projects
across the country.

This positive development comes at a time when the construction sector is
projected to continue growing largely due to demand for offices, industrial
and retail buildings as well as houses across the country.

The real estate sector in the country is offering a great investment
opportunity for both corporates and individuals.

The ongoing housing reform agenda also provides opportunities for the
private sector to participate in infrastructural development projects.

Key reforms have been designed to achieve macroeconomic stability, improve
the business operating environment and ensure the structures of local
industries are internationally competitive.

The long-term benefits of all the policies are invaluable to sustainable
economic growth and a higher quality of life that leaves no one and no place
behind.

Housing development, which is largely supported by the informal sector and
the diaspora community, is expected to continue on a growth trajectory.

Meanwhile, the firm has declared its second quarter dividend of US$ 255 202
made up of US$218 087 as well as an additional ZWL167 651 585 in respect of
the period ended 30 June 2023.

The firm noted the rental revenue was US$790,523, net property income was
US$861,949 and the total income was US$862,636

Tigere also said the total operating expenses were US$244,448, total
comprehensive income was US$567,392, and net asset value was
US$22,53m.-chronicle

Procurement clarity and prosecutions key to tackling construction site
disruptions

Public Works and Infrastructure Minister Sihle Zikalala has emphasised the
importance of unity in condemning and addressing construction site
disruption and extortion affecting the industry.

“It is important that we act together to root out these illegal practices,
which are driving away investment in the local construction and property
sector. We’re grappling with a challenge that we characterise as a lack of
social protection, which permeates and gives rise to criminality,” stated
Zikalala.

The Minister spoke during Construction Alliance South Africa’s recent
webinar hosted by Creamer Media, focusing on the theme of navigating
construction site disruptions that are plaguing South Africa.

Many of these construction site disruptions have been in KwaZulu-Natal, with
the accumulated cost of these disruptions estimated at R68-billion.

Cause and Effect

The Minister highlighted several possible reasons for the disruptions,
including a sense among some previously disadvantaged South Africans that
they remain marginalised and excluded from economic opportunities.

That said, he also stressed the need to arrest those involved in
construction site disruptions, and reported that about 605 cases have been
opened.

Despite these arrests, however, he admitted that there has been a lack of
prosecution and sentencing.

Law firm MDA Attorneys director Euan Massey highlighted that criminal
elements were taking advantage of uncertainty regarding the 2017
Preferential Procurement Regulations, which outline a goal for setting aside
30% of a project for local participation.

“There is a misunderstanding regarding the word ‘local’. Is local South
African? Is it provincial? Is it municipal or is it related to the area
adjacent to sites where the work has been performed? This has allowed
mafia-like organisations to extort money from contractors and disrupt
projects.”

Massey also argued that when these regulations were first enacted, employers
passed down these procurement responsibilities to contractors, who were left
to their own devices to implement the 30% requirement.

Only recently has it been acknowledged that commitment is required from all
role- players, including State-owned entities, to achieve the requirement.

“We can’t have projects where we have a blanket 30% requirement, where the
work that’s being executed just doesn’t accommodate that requirement.

“We need to identify the target enterprises to which the 30% will be
awarded, how it will be awarded and how the target will be achieved. This
will ensure that money is awarded to people and entities who create new
businesses and grow the economy,” Massey added.

South African Women in Plumbing and Trades representative Kile Mteto
stressed the negative impact site disruptions were having on increasing
business costs for small, medium-sized and microenterprises (SMMEs),
particularly women-owned entities.

She also noted that site disruptions prevent skills development
opportunities for SMMEs.

Black Business Council VP Gregory Mofokeng reiterated the direct impact that
construction site disruptions are having on economic growth and job
creation, even for people not employed in the industry.

The construction industry is actively cooperating with the South African
Police Service (SAPS), but the situation has worsened.

“Contractors have had to secure court interdicts. Beyond the policy
inactivity, as contractors, we have also tried other means of bringing about
law and order to our sites.

“We have to rely on police to make sure interdicts are enforced. What we’re
not seeing from law enforcement is increased activity in making sure that
these criminals are arrested so that they can be duly sentenced,” Mofokeng
added.

Massey also argued during the webinar that interdicts are a reactive
measure, with limited success. While they can be successful against
individuals, construction-mafia organisations replace such individuals,
enabling disruptions to continue.

Mofokeng also noted that government representatives have been co-opted by
these organisations, particularly at the local level, as criminals involved
in extortion travel to construction sites to talk to the main contractors
with a government councillor.

“Some councillors are involved in encouraging people to stop projects simply
because certain individuals and the community are not directly benefiting.”

Meanwhile, Mofokeng added that the Black Business Council is hopeful that
the training of more police officers can contribute to addressing site
disruptions, and that they are deployed into areas where construction
projects are implemented as a deterrent.

“We are considering amending industry contracts to protect the interests of
contractors and mitigate financial risks. There is an increase in threats to
our staff, so we’ll have to devise strategies to see how do we secure the
safety of our personnel on and off site,” Massey said.

Although four standard form contracts are used in the construction industry,
only one – a locally produced general conditions of contract for civil
engineering contracts – deals with local procurement.

“What we’ve seen is that organisations like the South African National Roads
Agency have amended the International Federation of Consulting Engineers
international form of contract.

“They’ve amended their contract to allow for a lead-in period to promote
local participation, which allows for dealing with site disruption when it
does occur,” he added.

Capacity Decline

Institute for Security Studies head of the justice and violence prevention
programme Gareth Newham highlighted a deterioration in the past decade of
State intelligence and law enforcement capabilities, partly as a result of
State capture.

“This began with the shutting down of the Scorpions unit in 2008, which was
good at tackling corruption and dealing with complex and organised crime
networks.

“Attempts to neutralise security agencies continuing from 2009 until around
2018 depleted the capabilities of State security agencies. Between 2012 and
2020, the ability of the SAPS to solve murder dockets dropped by 55%,
despite its budget growing by 86% in this period.

“Currently, we have over 180 000 people in the SAPS, with a current yearly
budget of over R108-billion. However, only 14.5% of murder dockets are
solved.”

The construction sector was also likely targeted, owing to the perception
that construction projects are associated with large budgets.

“The most important intervention will have to be improving our law
enforcement and intelligence capabilities to deal with these syndicates.

“Until there is a very real chance of the State making sure that these
syndicates are held accountable, it is unlikely that other interventions
will do much to adequately and sustainably reduce this challenge.”

Despite a number of arrests already being made, Newham stressed the
importance of arresting criminals “higher up the value chain”.

There must also be dedicated components of the National Prosecuting
Authority guiding and working with investigators so that instigators can be
brought before the courts urgently, he added.

Backbone of the Economy

Zikalala stressed that construction is “the backbone of the economy and
social development”.

The Department of Public Works is coordinating the “unleashing” of
infrastructure development through Infrastructure South Africa to expedite
and implement projects.

“We’re expediting this through the construction unit in our department, but
various other departments also are engaged in unleashing infrastructure.

“Large companies must support SMMEs. We must address collusion amongst large
companies, as collusion leads to higher project costs for government and the
project client.”

He also stressed the need for larger companies to remain committed to the
transformation of South Africa and the built environment industry, and, in
general, supporting SMMEs, young workers, women and disabled people.

This comes in addition to ensuring that the policy commitment of
localisation is preserved.

“When we say that 30% must be allocated to local companies if the contract
is above R30-million, this must be done by all. We must continue to work
together to meet the targets agreed upon in the transformation charter of
the built environment.

“We must then ensure that, if projects are executed, those projects are
consulted in a way that ensures that stakeholders, such as municipalities,
are briefed.”

The Department of Public Works will, therefore, strengthen a social
facilitation unit in the department.

Zikalala added that, if large companies are conducting construction work,
they should make an effort to subcontract portions of the work to SMMEs.

“This is why we’re engaging with the Construction Industry Development Board
(CIDB) to train companies that are in the CIDB and provide relevant skills
to them.”

Government has implemented an organised crime investigation services unit,
as a result of an intervention by President Cyril Ramaphosa.

The Department of Public Works is also implementing a social facilitation
unit that will be able to intervene and ensure community participation.

This unit will assist with stakeholder involvement in construction projects,
and with effective implementation of project management. Once the department
receives the necessary reports, it will also be able to take disciplinary
action against councillors involved in site disruptions.

“We need a platform where we coordinate together in each area, and that’s
why we need to use the District Development Model as an anchor for the
coordination, so that we’re able to intervene timeously and avoid any
disruption or delay.

“The Public Procurement Bill is in consultation, and the Minister of
Finance, Enoch Godongwana, will release it soon for public comment.”

Zikalala added that construction has multiple effects and supports many
sectors, and that it makes it easier to attract investment.

“We must ensure that those who are found to be on the opposite side of this
framework are dealt with according to the law.

“We want to support all associations that represent stakeholders or
companies in the construction industry, who also want to continue engaging,
and tap from their understanding and practical experience. Let’s turn South
Africa into a giant construction site, and make this industry work for all
and leave no one behind,” he concluded. 

Artemis returns to full construction at Blackwater

TSX-V-listed Artemis Gold has restarted all site activities at its
Blackwater mine, following the recent wildfires.

“Site management has implemented its return to full construction in a
disciplined manner with the safety of our employees and contractors as our
top priority,” says president and COO Jeremy Langford.

He says Artemis acknowledges that the wildfire period in British Columbia is
not yet over.

“We are in daily communication with the local and regional authorities on
situational updates as and when they arise." 

Climate targets lie in the dust unless construction can tap young talent

We’ll send you a myFT Daily Digest email rounding up the latest Environment
news every morning.

This article is an on-site version of our Inside Politics newsletter. Sign
up here to get the newsletter sent straight to your inbox every weekday

Good morning. Rows over climate policy keep on coming. MPs from all parties
and peers are urging Grant Shapps to block drilling at Rosebank, the UK’s
largest undeveloped oilfield. Meanwhile, a government-commissioned report
today warns that the UK’s existing energy policies are “badly out of date”.

While Stephen is in Cornwall, I’m here to dive into another climate
challenge. As economics and science tell us, we need to retrofit our
buildings — which account for a quarter of the UK’s carbon emissions — to be
greener and healthier. Once we get to the specifics though, things get
complicated. Some thoughts on that and the routes forward.

Inside Politics is edited by Adrian Salmon today. Follow Georgina on Twitter
@georginaquach and Stephen on Twitter @stephenkb and please send gossip,
thoughts and feedback to insidepolitics at ft.com

One home every minute

Sheffield-based reader Martin had been struggling to find tradespeople to
insulate a room in his Victorian terrace house when he emailed me in May.
“The work should be fairly straightforward but we can’t get a quote.” He
found getting the costs and necessary information a source of headache.
“Then there is no guarantee as to how this would change the Energy
Performance Certificate.”

To me, a young renter, these sorts of decisions feel financially far away.
But it did get me thinking about just how ready the UK is for a retrofit
movement. One lesser-covered aspect of that is the struggle of the rapidly
ageing, Brexit-bruised construction industry to recruit fresh blood —
meaning it may soon be scrambling to raise the army of specially skilled
workers required to install energy efficiency measures.

That task is enormous; if we were to meet emissions targets by 2050, we
would need to retrofit two homes every minute, the UK Green Building Council
estimate. Just looking at heat pumps — the green alternative to gas-fired
boilers — the UK has about 412 per 100,000 people, compared with a European
average of 3,068. The government is targeting 600,000 yearly heat pump
installations by 2028; we are currently hitting only one-ninth of that.

Bar chart of Share of jobs impacted by the transition in UK economy, by
sector (%) showing More skilled construction workers needed to achieve net
zero 

One industry estimate says 87,000 new recruits will be needed to meet this
rollout target (there were 3,000 heat pump engineers in Britain last year).
Today more than half of heating system installers are over 55 years old.
Very few are willing to retrain.

“There is a dire need to bring young people into the industry,” says Linda
Clarke, professor of European Industrial Relations at Westminster Business
School, who thinks construction training infrastructure needs to be
completely overhauled given the scale of reskilling needed. The workforce is
made up of mostly small firms. Half are self-employed, often ill-equipped to
provide for apprenticeship training. Many talk about the “administrative
burden” involved. Given tradespeople are overwhelmingly male and white,
there is a huge talent pool yet to be fully explored.

Column chart of Construction firms on whether they will recruit apprentices
in next 12 months (%) showing Most employers say it's unlikely they'll hire
an apprentice 

Knocked by an exodus of EU-born workers, in general the UK construction
industry needs to plug a skills gap of 937,000 over the next decade to “meet
demand”, according to the 2023 Trade Skills Index. Of those, 244,000 need to
be qualified apprentices — the equivalent of 24,400 completing training
every year. But the figures for England (light blue bars) suggest we are far
off. 

“If you don’t create a pipeline from a young age — and inspire that
generation — then you’ll have a bigger problem in later years,” says Check A
Trade’s Melanie Waters, who will launch the company’s campaign “Get In”
wooing 16-25 year-olds later this month. She wants ministers to reintroduce
apprenticeship incentives and ease the hiring admin.

According to Clarke, aside from apprenticeships, training levels are at a
historic low, and UK standards are behind most European neighbours. Most
construction trainees in further education colleges qualify to level 2,
whereas retrofit work requires level 3 (retrofit assessors, who visit your
house and prescribe systematic fixes for energy loss, are at least a level
5), she adds. Getting the necessary on-site experience is also difficult.

Low energy construction is not mainstream in FE courses yet. Clarke says
colleges are increasingly equipping themselves with the necessary
facilities, such as heat pumps and mock houses to demonstrate air tightness.
But the domestic electrician qualification (level 3), which features
environmental elements, is only just coming on board and there is still no
clear occupational standard for insulation.

Another general problem is the fact retrofit sounds dull to people, says
engineer Ele George, who is planning a reality-show-style programme that
follows a household through the retrofit process. “We need a Love Island but
for retrofit,” she says.

There’s not much sexier than the guarantee of stable, well-paid work
following training. One solution to that could be through councils
partnering with FE colleges, readying trainees to be directly employed by
council building departments, known as Direct Labour Organisations (DLOs).
The in-house team can then retrofit council property on a large scale.

Here’s a success story: City Building Glasgow is a non-profit organisation,
jointly owned by Glasgow City Council and the Wheatley Group Housing
Association, and formed in 2006 from the DLO of Glasgow City Council. The
four-year Scottish Vocational Qualifications Level 3 apprenticeship scheme,
delivered at its own Queenslie Training Centre, arms learners with the
energy literacy needed to upgrade social housing. The completion rate of its
diverse annual intake of 250 trainees and 60 apprentices is 94 per cent. The
vast majority stay on as permanent employees to work on projects including
the 350-home Hillpark Drive estate, where the UK’s largest heat pump was
fitted to replace inefficient electric storage heaters and curb fuel
poverty.

What about private firms? In Manchester, construction firm B4Box trains
workers from the local area — many of whom were long-term unemployed or
excluded youngsters — in multiple trades, with the guarantee of employment
afterwards. Since launching in 2008, it has refurbished thousands of council
homes across the north and recently won a low carbon skills award.

Lack of incentives for Britons to retrofit has caged demand/investment in
these jobs, creating a decarbonisation skills gap that could hamper action
at a time of urgent need.

Rishi Sunak — who yesterday watched from California climate protesters
scaling his house — appears unlikely to champion retrofit soon, and the
government is backsliding on energy efficiency standards for landlords. But
with polling this week on the government’s environmental efforts hitting a
record low, a cool political draught heading his way could urge a rethink.

CNY construction industry prepares for Micron, new economy

New York is getting ready for construction to begin on the Micron plant in
Clay, Onondaga County. It's expected to start, pending approval of the
environmental review process, which could take place near the end of next
year.

With an increasing number of manufacturing projects across the state,
construction companies must familiarize themselves with new building systems
and needs. Cleanrooms, used in the pharmaceutical industry as well as in the
manufacturing of computer chips, require specialized systems to protect the
process.

“Today, we’re here to talk about cleanrooms to help train the workforce and
expose them to pieces and parts,” said Roger Zaccour, a cleanroom specialist
for StarkTech.

Zaccour knows what it takes to keep a clean room, well, clean. He’s an
expert in engendered solutions like specialized wall panels.

“If you wanted to turn that dirty piece of plywood into a clean room, you
could put this on and screw the panel down," he explained. "The next panel
comes in and now you have a clean surface instead of a piece of plywood.”

Zaccour visits companies like LaChase Construction in Syracuse, where he
taught employees about different products, from wall panels to HVAC systems.

In the semiconductor world, facilities like Micron's yet-to-be-built plant
in the town of Clay need to keep particles out, because even one can damage
highly sensitive silicon wafers.

“You are going to find as you do jobs, that is the hardest thing to do, to
create a sealed, negative pressure Plenum up above the room in which you
have no leakage,” Zaccour said.

LaChase leadership says the training will expand their expertise.

“We see these training opportunities as a way to increase the knowledge base
for not only our employees, but for our employees to be able to go talk to
clients about what’s possible out there,” said Lee Sommerman, senior vice
president at LaChase Construction.

There’s good reason for it.

Wolfspeed recently opened a chip fab plant in Oneida County, and Micron is
gearing up for their facility and has expressed their intention to do the
job with local companies.

“We certainly are interested and at this point, time will tell," Sommerman
said. "But we will continue to remain interested, and we’ve been doing our
homework now for a couple years.”

Zaccour said it’s his job to help Central New York companies do their
homework.

“In the semiconductor, pharmaceutical, optics, geospatial, all of the
different arenas, Central New York is very rich with opportunity, so my goal
is to increase that opportunity and execute it and help my teammates,” he
said.

Bulawayo to become an investment city of choice   

Government has said it is stepping up efforts to revive Bulawayo companies
as it works toensure the city regains its status of being the country’s
industrial hub. The city used to be the home of big textile, engineering,
shoe manufacturing, beef processing, transport, iron and steel as well as
food manufacturing companies.

Some of the companies closed while others relocated to Harare and other
towns mainly due to the city’s perennial water shortages.

In a bid to conserve the city’s limited water supplies, council subjected
companies and residents to water rationing and as such companies were made
to pay hefty fines for exceeding their monthly allocations and this forced
some of them to relocate to other cities and towns to avoid paying more for
water.

It was a common joke in the past that in Bulawayo companies pay more for
water compared to water they pay for fuel. Since the coming in of the Second
Republic, measures have been taken to improve the city’s water supplies and
these include the drilling of boreholes at Nyamandlovu Aquifer.

The long term solution is the construction of Lake Gwayi-Shangani and the
pipeline that will bring the water to Bulawayo. The construction of the Lake
is about 70 percent complete and work on the pipeline is at an advanced
stage.

Construction of Lake Gwayi-Shangani is among the flagship infrastructure
projects being undertaken by the Second Republic led by President Mnangagwa
(File picture)

President Mnangagwa told Bulawayo residents on Wednesday that Government is
stepping up efforts to revive Bulawayo companies and a number of programmes
are already being implemented to assist companies to retool.

Addressing thousands of residents at the ruling party’s star rally in
Cowdray Park suburb, President Mnangagwa said Government was working on
ensuring the city regains its status of being the country’s industrial hub.
He said the strategies being worked on include ensuring that the city has
adequate water supplies as well as electricity.

Government reported early this year that a total of 13 companies across the
country were back in production taking advantage of the improved ease of
doing business environment and some of these companies are in Bulawayo.
Companies such as Zambezi Tanners and Ref Air that are in the City of Kings,
have retooled and are back in full production thereby reviving the city’s
hopes to reclaim its status as the country’s industrial hub.

The ongoing programme to revive distressed companies and Government’s
initiatives to attract new investors has seen 80 percent of the products on
retail shelves being produced locally. The new investors that are setting up
businesses across the country since the coming in of the Second Republic,
have confirmed that indeed Zimbabwe is Open for Business.

The country is in fact fast becoming an investment destination of choice in
the region and beyond as evidenced by the many new companies that are
investing millions of dollars in sectors such as mining.

We want to appeal to companies that relocated to other towns due to water
shortages in Bulawayo to return to the city as they are now guaranteed
adequate water supplies for many years to come.-chronicle

Construction begins for downtown Elon plaza

After announcing plans to create a permanent outdoor structure in downtown
Elon two years ago, construction for the project began Aug. 3.

Currently, construction is supposed to finish around the end of November,
according to town manager Rich Roedner. 

“We're happy that it's finally underway, we've been talking about this for a
while now and so it's good to see some progress being made,” Roedner said.
“With a little bit of patience from everybody, we'll get through this and
we'll have some really nice down there by the time it's all said and done.”

Bill Boone, owner of the construction company working on the space, B&H
Grading, has worked on multiple construction projects in Elon previously —
including work on the Elon Community Church. 

Boone said even with the rainy weather, construction was able to continue as
normal, and they began with removing the curbs on the road. 

“It’s a good demo day,” Boone said. “Rainy days are good demo days.”

Zimbabwe experiences increased demand for properties   