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Cummins breaks ground to build state-of-the-art premises at Waterfall Logistics Precinct

Cummins Southern Africa is pleased to announce the relocation of their Southern Africa Distribution Business to Waterfall Logistics Precinct - Gauteng’s new innovative work, live and play destination in Waterfall. The new premises will form part of the Waterfall connected hub which offers a fully integrated lifestyle that embraces the ultimate work-life balance. Waterfall Logistics Precinct is fast shaping up to become a new CBD, linking Sandton to Waterfall.

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Construction prices forecast to rise

MMQSMace, a leading South African cost consultancy business, and Stellenbosch University’s Bureau for Economic Research (BER) have forecast a South African construction tender price growth of 7,4% in 2017, including 5,3% inflation, and an 8,8% increase in 2018, including 5,1% inflation.

Analysis shows that the construction sector in South Africa is suffering amid the country’s wider economic turmoil.

The data has shown a sharp rise in construction prices of 9.5% in the first quarter of 2017 – good news for construction companies but likely to be balanced out with a restrained performance across the rest of the year.

The strong increase in early 2017 has been driven by high national inflation pressure and a marked increase in input costs. Optimism in the sector is low, with industry respondents reporting negative confidence levels not seen since the 2008/9 economic downturn.

Business plan permissions – a measure of the value of planning permissions granted in South Africa – fell significantly across all construction sectors in March by 16,3% and then more radically in April by 41,2%. Overall, the value of building plan permissions was down by 21,9% year-on-year compared to the same period in 2016.

The economic turmoil has had a particularly serious impact on non-residential construction, which has seen a significant drop in both building plan permissions (down by 67,2%) and completions (down by 62,5%) year-on-year compared to 2016.

This is balanced out by a more positive outlook in the residential sector, which saw a significant upswing (52%) in year-onyear completion value compared to 2016. However, the fall in the construction pipeline is beginning to bite here as well, meaning the sector cannot be relied upon to provide a steady stream of construction work.

Overall, the sector is likely to be looking forward to December, when there are hopes that the appointment of a new leader by the ANC will bring some political and economic stability.

Mandla Mlangeni, Director of MMQSMace Cost Consultancy, said, “We’re seeing a strong rise in tender prices in South Africa in 2017 driven by significant input price growth and general inflation here compared to other markets. A lack of business confidence and an uncertain political and economic outlook has led to a stagnation in investment across both the commercial office and residential sectors this year, with increasing reliance on the planned infrastructure pipeline for our forecast of an improved outlook in 2018."

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Think outside the BIM box

Building Information Modelling (BIM) is the new backbone to digitised construction. BIM increases productivity and improves the quality of work across the construction ecosystem from design, through construction and into operation.

Although BIM is gradually integrating into contracts and processes, South African uptake and confidence among contractors remains low. This can be attributed to a limited knowledge of BIM processes and too much emphasis been placed on design software in the past. We recently witnessed one of South Africa’s largest contractors sending out request for proposal (RFP) invitations for vendor software application partners to facilitate its BIM adoption strategy, sparking renewed interest among other contractors to follow a similar strategy.

BIM is not software

Many people mistakenly think that BIM is software, when it is actually a process of working. Software tools are the technological core of BIM, but this makes up only 10% of the system. The remaining 90% centres around the sociological and collaborative practices that the software enables.

BIM allows all stakeholders to collaborate on a single model to design, construct and operate a building. The technological base of BIM consists of 3D design, intelligent models and information management; social components include synchronous collaboration, coordinated work practices and a cultural or institutional framework in which BIM is incorporated in a company’s processes — workflow, for example — and business plan.

The design stage includes conceptual design, detailed technical design and analysis (including energy analysis), working closely with the Professional Quantity Surveyor(PQS) to provide detailed estimates and pricing documents based on design information provided in the 3D model. In the build stage, contractors can re-model the Bill of Quantities for resource levelling, accurate cash flow projection purposes using quantification from the models provided, including automatic updated quantification provided by the PQS. The contractor can also use this information for fabrication, planning and simulation purposes. Once the facility is built, the contractor and owner can use the model to manage defects and operate and maintain the building, as well as renovate and finally demolish, if necessary, far into the future.

Understand the basics

Traditional design, bid and build (architects, engineers, contractors, subcontractors and clients) delivery project processes still work in silos. Modelling and coordination is handled in the design offices and only the 2D drawings and information is sent to the contractor. Requests for information pass from the site to the design office and revisions get sent back. Quite often, the information is still on paper or in electronic pdf format — not in the cloud — and is duplicated many times.

In the traditional coordination process, communication between stakeholders peaks in the construction documentation phase, affecting progress onsite.

BIM alters workflows, so communication peaks in the design and design development phases. At this stage, changes are easier to make without slowing or halting construction. Costs are easier to control and litigation (due to cost and schedule overruns) is reduced or eliminated. Under this new approach, contributors cannot work in silos. Instead, all parties collaborate as the model develops, working together to eliminate clashes.

Solving coordination issues virtually in the design phase is more efficient and cost effective. It also improves safety and reduces labour onsite. With the client, design team and professionals involved from the outset, knowledge and awareness increases through each phase of a project — there is minimal loss of knowledge between phases.

Step up to the plate

The BIM Institute has worked with commercial streams and software vendor experts over the past three years to define South Africa’s BIM awareness. Now for the first time giving the industry a National BIM guide and enabling it to use its BIM skills to produce a better outcome. The BIM Institute currently also engages with various large contractors (locally and across Africa) on best practice.

It’s now your responsibility – as a contractor – to demonstrate your “BIM-readiness.”

This involves detailing your proposed processes to meet with the project’s BIM requirements. This does not only require refining your in-house software systems, but rather aligning internal processes with BIM and then identifying and addressing any software gaps.

Get started:

If you are just becoming familiar with BIM, theNational BIM Guide is an essential tool for you to understand:

  • Data information
  • Guide to global standards
  • The practicalities of BIM
  • The processes required
  • Keep up with the industry – register as a BIM Institute member.
  • Upskill – through the BIM Institute’s accredited courses or contact the Institute for an independent review.
  • Expert advice – The Institute has a definitive listing of vendor experts on its BIM Vendor Directory.
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Sixty-four years in the steel business

Since 1953 Schipper Steel has been supplying a wide range of enclosures, fabrication, sheet metal work and through its service center also offer nonstructural, bespoke architectural steel solutions for the commercial, estate, residential and industrial construction and for upgrading projects.

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Drones improve your security

The rapidly-growing global drone market presents a plethora of opportunities for companies to enhance their operations, or for new businesses to emerge, says Airborne Drones. With analysts putting the global market opportunities around drones at anywhere between $11 billion and $13 billion by 2020, organisations across all verticals stand to gain by harnessing the new capabilities unmanned aerial vehicles (UAVs) deliver.

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