On the Department of Higher Education list of approved ... · University of Reading – U.K. Prof Nicola Costantino Polytechnico di Bari – Italy Dr David Edwards Birmingham City

ISSN 1994 - 7402

July 2013

On the Department of Higher Education list of approved journals

ADVISORY BOARD

Prof AddulRashis bin Abdul AzizUniversitiSains – Malaysia

DrAyodejiAiyetanFederal University of Technology – Nigeria

Dr Nina BakerUniversity of Strathclyde – Scotland

Prof Pauloa Jorge da Silva BartolaPolytechnic Institute of Leria– Portugal

Prof David BoydBirmingham City University – U.K.

Prof Chris CloeteUniversity of Pretoria – South Africa

Dr Daniel ChanHong Kong Polytechnic University – Hong Kong China

Dr Nicholas ChilesheUniversity of South Australia – Australia

Prof Derek Clements-CroomeUniversity of Reading – U.K.

Prof Nicola CostantinoPolytechnico di Bari – Italy

Dr David EdwardsBirmingham City University – U.K.

Prof Charles EgbuGlasgow Caledonian University – U.K.

Prof Stephen EmmittTechnical University of Denmark – Denmark

Dr Jane EnglishUniversity of Cape Town – South Africa

Dr Peter ErkelensEindhoven University of Technology – Netherlands

Dr Vicente GonzalezUniversity of Auckland – New Zealand

Dr Mohammad HassanainKing Fahd University of Petroleum and Minerals – Saudi Arabia

Prof Theo C HauptPinnacle Research and Development Solutions – South Africa

Dr Benedict IlozorEast Michigan University – U.S.A.

Dr Mohamed IssaUniversity of Manitoba – Canada

DrZulhabri IsmailUniversitiTeknologi MARA – Malaysia

Dr Dean KashiwagiArizona State University – U.S.A.

Dr Geraldine KikwasiArdhi University – Tanzania

Dr Robert KongNanyang Technological University– Singapore

Dr Helen LingardRoyal Melbourne Institute of Technology – Australia

Prof Kerry LondonUniversity of Newcastle – Australia

Dr Peter LoveEdith Cowan University – Australia

Prof Tinus MaritzUniversity of Pretoria – South Africa

Prof MartonMarosszekyUniversity of New South Wales– Australia

DrHendrik MarxUniversity of the Free State – South Africa

Dr Sylvester MashambaNational Council of Construction– Zambia

Dr Rodney MilfordConstruction Industry Development Board – South Africa

Dr Chris MonsonMississippi State University – U.S.A.

Prof RonieNavonNational Building Research Institute – Israel

DrAyman Ahmed Ezzat OthmanBritish University in Egypt – Egypt

Prof Ravi SrinathPereraNorthumbria University – U.K.

Prof Low Sui PhengNational University of Singapore – Singapore

Prof Stephen OgunlanaAsian Institute of Technology – Thailand

Dr Rufus Ogunsemixxxx – Nigeria

Dr Adebayo OladapoUniversity of Central Lancashire – U.K.

Dr Rahul RalegaonkarVNIT – India

Prof Begum SertyesilisikIstanbul Technical University – Turkey

Prof Martin SextonUniversity of Salford – U.K.

Prof Winston ShakantuNelson Mandela Metropolitan University – South Africa

Dr Willy SherUniversity of Newcastle – Australia

Dr Gary SmithNorth Dakota State University – U.S.A.

Dr Ai Lin TeoNational University of Singapore – Singapore

Dr WilcoTijhuisUniversity of Twente – Netherlands

Dr John TookeyAuckland University of Technology – New Zealand

Prof Cristina TroisUniversity of KwaZulu-Natal – South Africa

Dr SenthilkumarVentatachalamUniversity of Witwatersrand – South Africa

Journal of Construction

FROM THE PRESIDENT’S PEN


This issue of the Journal of Construction Volume 6 Issue 1 is the first of 2013. As President of the Association of Schools of Construction South-ern Africa (ASOCSA) it is my honour to address you once again.

By all reports, 2013 will be a better year for our sector although the margins are still very tight. Since the debacle of the American Sub-prime though, the sector is looking up as far as volume of work is concerned.

Our new partnership with PPC has given us a breath of fresh air as we send you this PPC sponsored issue free of charge once again.

ASOCSA held a successful Education Workshop in March 2013 at Belmont Square in Cape Town. This workshop focused on alternative methodologies in construction education and was attended by a range of educators including the Universities of Witwatersrand, KwaZulu-Natal, Cape Town, Pretoria and Johannesburg.

Our 7th Built Environment Conference (BEC) to be held at Belmont Square the Head Quarters of the Master Builders Association Western Cape is upon us. This 7th BEC is proudly brought to you by ASOCSA with PPC being our main sponsor. ASOCSA is also very proud to announce that PPC has joined with ASOCSA in bringing Universities around the country into a partnership to offer Cement and Concrete Courses.

As stated by the Editor, the range of papers that are included should be of interest to you the reader and we hope will have practical application as well.

I am grateful to Prof. T C Haupt who has taken over the fulltime position as Editor of JoC. Prof. Haupt has been an ASOCSA stalwart since our founding eight years ago. I also wish to thank another stalwart Prof. Hendrik Marx from the University of the Free State for his stellar work as Honorary Treasurer of ASOCSA for all these years. Prof. Marx has stepped down as he has accepted a position to start a new programme in Agricultural and Environmental Engineering at the UFS. All at ASOCSA wish him God Speed in this new venture.

Ferdi

F C FesterPresidentASOCSAJohannesburgJuly 2013

1Journal of Construction

Journal of ConstruCtion

Contents

2.

5.

10.

18.

Volume 6 number 1

editorial

Rob johnson and colin de kock honouRed foR theiR contRibution to the industRy

non-Value addinG actiVities in constRuction: the case of south afRican Dr Fidelis Emuze, Department of Built Environment, Central University of Technology, Free State

eValuation of office sPace utilisation in south afRican MuniciPalitiesHoffman DJ and Viljoen T, Department of Construction Economics, University of Pretoria

fundinG the iMPleMentation of solaR WateR heatinG in loW-incoMe housinG in south afRica thRouGh the clean deVeloPMent MechanisMProf Chrisna du Plessis and Thomas Arnoldus Petrus du PlessisDepartment of Construction Economics, University of Pretoria

Since ASOCSA is a registered Section 21 Company all donations are fully tax deductable.

editorial

The first issue of Volume 6 of the Journal of Construction (JOC) coincides with the 7th PPC Cement/ASOCSA Built Environment Conference held in association with the International Council for Research and Innovation in Building and Construction (CIB). In addition to an interesting array of topical papers that should interest both academics and industry practitio-ners in the Southern African region, we have included profiles of two stalwarts of the South African construction industry. Colin de Kock and Rob Johnson are the latest recipients of the ASOCSA Lifetime Achievement Awards in recognition of their immense contributions to the industry over most of their lifetimes.

The papers in this issue focus on poor project performance as a result of non-value adding activities (Emuze), implementation of solar water heating in low-income housing (Du Plessis and du Plessis), and the utilisation of office space in municipalities (Hoffmann and Viljoen)We hope you enjoy reading these papers as well as the profiles of Colin and Rob. As always, we invite comments on the papers and profiles in this issue as well as JoC or ASOCSA in general. Send these to [email protected] or [email protected].

Should you wish to advertise in JoC, each issue of which is distributed at no charge to about 5 000 professionals and practitioners in the Southern African region, contact us at [email protected] or [email protected] for rates.

Special thanks to each of the contributing authors and reviewers for their contributions to the papers in this issue of the Journal of Construction. Theo C Haupt (Editor)Cape Town, South AfricaJuly 2013

2 Journal of Construction

Rob’s career in the industry started when he worked as an apprentice carpenter while completing a National Diploma in Construction Supervision.

“During my apprenticeship I worked on many projects from housing schemes to the construction of blocks of flats. After my apprenticeship, I was engaged by my employer to look after its small works division.”

Rob says that during this period he learnt more about the industry than he has ever learnt – to date.

“Having to deal directly with clients as well as being respon-sible for the full building process taught me that it was not just a matter of bricks and mortar. I was subsequently promoted to contracts manager and, after 16 years, I spent a year and a half with a housing development company before forming my own company, Rob Johnson Construction, in 1983.”

In 1995 he was elected to the executive committee of the Master Builders Association Western Cape and was elected president of the association in 1999.

In 2000, he joined the MBA Western Cape as a full-time staff member and was appointed as the executive director. He also closed down trading operations on his own business.

“This was a difficult time for me but I was extremely fortunate to have ensured that my workforce enjoyed full social benefits during the years of business operation as the entire workforce was able to draw on their benefits after being laid off once trading operations ceased.”

Rob is currently still the executive director of the MBA Western Cape and serves as the managing trustee for the commercial arm of the Belmont Square Trust. He also serves as a board member of the Master Builders Association of South Africa and is the cur-rent chairman of the Occupational Health and Safety committee.

His focus as executive director of the MBA Western Cape is ensuring services to members such as OH&S, contractual and legal, education and training, insurance, labour matters as well as industry matters. “My primary focus is to ensure the constitution of the MBA is upheld, which ensures that our members act in the best interest of the industry at all times. My position has been to encourage skills development and we are fortunate to have our own skills levy, which our members contribute to through the Building Industry Bargaining Council benefit scheme. Delivery of skills and quality of workmanship are passions of mine and I spend a considerable amount of time promoting contractor competency and contractor development for those persons who require knowledge in this regard.”

He also served for many years on the Construction SETA council and resigned after “my efforts towards skills training were

constantly frustrated by persons with agendas that had nothing to do with the advancement of skills in the industry”.

One of his major challenges has been to get companies from previously disadvantaged backgrounds to become members of the MBA. He says, “Many of them do not want to formalise their business activities as they will then be subject to the statutory regulatory rules and regulations that govern the industry. A huge challenge is to urge those contractors to be part of the formal industry and grow their businesses.”

In terms of his own interest in his field of work, Rob cannot pinpoint a single aspect. “I am involved in every facet of the industry from practical advice to client and contractor administra-tion requirements.”

He encourages young entrants to the industry to keep learning as much as they possibly can. “There is much to learn and one can never know too much. Just being part of the industry is a daily learning experience, which makes one feel very fortunate. My advice to people is to conduct their business affairs in a just and ethical manner and ensure that the future of the industry remains in the hands of fully trained and competent persons.”

Rob believes that the building industry is a tough one, but there have been people who have experienced the good with the bad and have triumphed – “this makes them a special calibre of person”.

But Rob isn’t all work. He took piano classes as child and dur-ing his adult years started a group that played “mainly 60s and oldie favourites, purely for social pleasure”. He also does a lot of woodwork as he enjoys working with his hands and is currently the chairman of the Cape Town Woodworkers club.

As a youth he enjoyed sailing. However, these days he prefers sailing radio controlled yachts “I partake in the annual RC Laser championships, but have not achieved anything of note in this regard – I am working hard at this one,” he says.

Rob has been married to Margie for 43 years and they have two children.

His feelings about being honoured by ASOCSA are “pure delight and appreciation”.

“I am delighted and extremely honoured to be given this award and am grateful that, in my absence, my wife, Margie, is able to accept it on my behalf.”

Rob is in Australia to investigate alternate sustainable building methods that could be used in the production of mass housing.

rob Johnson

Through his ongoing interest in the development of the construction industry as a career of choice, the Association of Schools of Construction of South Africa is honouring Rob Johnson with its Lifetime Achievement Award at a gala dinner on July 29 during the 7th PPC Cement/ASOCSA Built Environment Conference held at the Belmont Square Conference Centre in Rondebosch, Cape Town. Rob joins Rodney Milford and Colin De Kock as a recipient of this special award.


Colin grew up in Sandringham, a suburb north east of Jo-hannesburg that was built for ex soldiers, which Colin’s father was. He completed his primary and high schooling

and then joined the army, where he drove armoured cars. Later, he went on to obtain an engineering technician diploma and for a while worked as a Safmarine engineer sailing on boats that transported fruit to Europe.

He subsequently started working as a computer operator before his interest in motor racing transported him onto a new track as a mechanic for Dave Charlton, South African Formula One champion for a number of years.

Colin then moved to Pretoria and started work as a civil engi-neering technician. His plan was to study civil engineering, but changed his mind and, at 25, married Jeannie.

In 1975 he applied to study a five-year degree (two years full-time and the remainder a combination of study and internship) in ‘Boubestuur’ at the University of Pretoria.

Says Colin, “After work hours and out of class hours, I did engineering drafting on a freelance basis to earn money to live off. In the beginning of 1976, a classmate’s father offered me a student job in his construction company and I worked with him for about five months.”

In 1976, while still studying fulltime, Colin started working at Alexander Grant Construction. He worked hard to support his family while studying, having to juggle classes with his new job.

In spite of having to manage work and his studies he became the contracts manager at Alexander Grant Construction and later contracts director and a shareholder of the company. He stayed with the company until 1991 and did all the project management on site for 15 years.

Colin’s expertise, however, did not only apply to on-site du-ties. In 1990 and 1991, he was elected president of the Pretoria Master Builders Association and on July 1, 1991, he was ap-pointed as the executive director of the Pretoria Master Builders Association. His contract was for two years, but lasted 20 and he retired on June 30 2011.

During his time as executive director he faced many challenges. “One thing we did just after I became director was change the name from Pretoria Master Builders Association to the Building Industries Association Transvaal North. In the 1980s, black unions sprang up, some of whom wanted to get into formal bargaining issues and some of whom did not. As a result, there was some politicised resistance to master builder associations; they were old style white organisations. The master had an evil connotation, so one of the bigger things we did in that period was to move away from the MBA, an elitist organisation that had been in existence for just short of 100 years. At more or less the same time, as a

result of national politics, the guys in Johannesburg also wanted to change their name. After the political change they changed to Master Builders Association Gauteng.

“In 1995, the two MBAs merged and the legal process that followed resulted in one of the MBAs being absorbed into the other: BIA Transvaal North disappeared. I changed the name from Master Builders Association Gauteng to Gauteng Master Builders Association.”

Colin retained the position of executive director of the newly merged organisation. Besides spending a lot of time running the issues of the MBA, he was also doing significant amount of work for the Master Builders Association of South Africa.

He became disillusioned with the industry. In 2009 he be-came a Business Unity South Africa (BUSA) representative on the National Skills Authority. “My focus was the building industry and the insufficient training that was taking place, particularly among artisans. Training was dwindling to the point where there was none and the lack of skills was getting worse and worse.”

Colin added that 95% of those who were skilled were 50 years and older with few young skilled people entering the industry. He was severely disillusioned.

Between 2001 and 2002 he became deputy chairperson of Construction Education and Training (CETA). However, he said that they battled to get processes going for training and that in his time there he noticed too much talk and no real action taking place. “Learnerships and apprenticeships were not being created.”

He was also a BUSA representative at Nedlac. Of this he says, “Many issues came up, but mainly issues around labour laws.”

These were just some of the issues Colin dealt with in the industry.

Other than work, he has a keen interest in birding and since retiring and moving to Britannia Bay on the West Coast has done a fair amount of bird watching and bird ringing. He is the chair-man of the West Coast Birding Association and is involved in the local tourism association. “It keeps us occupied.”

Colin and Jeannie have four children and one grandchild.

In reaction to the ASOCSA Lifetime Achievement Award, Colin says he feels honoured that his work in the industry is being acknowledged and happy that there are people who acknowl-edge that there are people who are working hard to improve the industry.

“Nothing I did was for personal gain. I am pleased that some-body recognises our endeavours,” says Colin.

Colin de KoCK

His passion, determination and desire to move the construction industry towards a positive change is what prompted the Association of Schools of Construction of South Africa (ASOCSA) to honour Colin de Kock with its Lifetime Achievement Award at a gala dinner on July 29 during the 7th PPC Cement/ASOCSA Built Environment Conference held at the Belmont Square Conference Centre in Rondebosch, Cape Town. Colin joins Rodney Milford and Rob Johnson as a recipient of this special award.

5334 UP EBIT Construction Economics Ad July13.indd 1 10/07/2013 11:47

5Journal of ConstructionJournal of Construction 5

abstRactPurpose: The investigation examined issues poor project perfor-mance through the identification of non-value adding activities (NVAAs) and their causes in South African construction.

Methodology: With the use of a self-administered semi-structured questionnaire, a survey was conducted among public sector clients, consulting engineers, and general contractors involved in civil engineering construction projects in South Africa.

findings: Observations from the field work show that the respon-dents perceive that NVAAs in the form of lack of required compe-tencies, inadequate supervision, and waiting for critical tasks to be finished contribute significantly to poor project performance in South Africa. The respondents were also of the opinion that causes such as lack of appropriately skilled workers, repetitive revisions and changes, and delay in design approval have major impact on the occurrence of NVAAs in South Africa.

limitations: The empirical data are limited to the views of project stakeholders in the South African infrastructure sector only.

originality/value: The paper infers that since NVAAs contribute to poor project performance, it is vital to limit their occurrence in the construction process.

keyWoRdsConstruction, non-value adding activities, project performance, South Africa

intRoductionThe performance of construction projects in South Africa is often made visible through the annual Construction Industry Develop-ment Board (cidb) report. The report, which is based on a survey that assesses the industry performance in the form of construction industry indicators has consistently advocated for performance improvement in the industry. A range of project performance gaps have been identified through the report. For instance, indicators relative to a completed project in the year 2007, which were derived from 282 clients and 1 204 contractors from all the nine provinces of South Africa, emphasised the need to raise the performance of the industry as a whole, and most especially, performance related to client satisfaction; contractor satisfaction; profitability and payment delays; procurement indicators, and health and safety (H&S) [5].

However, the aforementioned problems are not peculiar to South African construction when documented findings in the

international construction management literature are taken into consideration. As a case in point, the Indian construction sector is reportedly besieged with project procurement and execution prob-lems ranging from inadequate and/or incomplete site investigation, non-receipt of drawings and instructions on site, non-availability of materials and equipment as per schedule, delay in payments of the completed work due to paucity of funds, to inadequate escalation clauses leading to the occurrence of disputes, and a nagging lack of mechanisms for seeking redress [12]. In essence, these problems may be responsible for the prevalence of cost and time overruns on infrastructure projects identified by the Indian Ministry of Statistics and programme implementation [12].The widely publicised problems that accompanied the construction works met for the 2010 Commonwealth Games hosted by India support this argument.

a synoPsis of the effects of nVaas in constRuction Due to the report that an average of 49.6% of operational efforts are devoted to NVAAs [10], which can be defined as wasted efforts that consume time and/resources but do not result in the achieve-ment of goals stated in the contract data [8], it is imperative to scrutinise the construction process for performance improvement purposes. It has been observed that only conversion activities add value while flow activities do not add value in a construction production process [13]. Production improvement can be enacted when flow activities are minimal any time a conversion activity is underway [13]. NVAAs are associated with waste materials in the construction process, and other activities that include rework, waiting time, and delays [3]. These issues contribute to poor productivity, and increased poor performance in construction [3]. Such findings support the argument that poor performance relative to construction project seems to be the norm rather than the exception with both clients and contractors calling for a major shift in project delivery systems.

For that reason, the smooth realisation of projects has been largely marginalised by NVAAs [8] and other diverse irregularity such as the lack of effective project team integration between clients, the supplier team and the supply chain [16]. This obvi-ously supports the contention that large infrastructure projects in developing countries do not perform as promised as risk as well as uncertainties related to cost of transport projects are deemed to be substantially high [6]. Documented research findings also assert that NVAAs are the major reason behind schedule delays, cost overruns, and poor construction productivity [1, 4, 8, 9, 10]. Even within the South African construction, the prevalence of NVAAs is reported increasing the amount of variations/claims recorded in projects [15]. The need to address these NVAAs is therefore important in South African construction that is reportedly contending with performance related problems.

non-Value addinG aCtiVities in ConstruCtion: the Case of south afriCan infrastruCture seCtor

Dr Fidelis Emuze

Department of Built Environment,Central University of Technology, Free State, South Africa

Email: [email protected]


ReseaRch MethodoloGyDue to the need to recognise NVAAs that are propagating poor project performance, a mixed-mode quantitative survey was conducted among major project stakeholders in the South African infrastructure sector. The survey method was considered appro-priate as one of the heuristic principles of lean construction is that NVAAs can be reduced by identification, measurement and redesign [7]. The survey used NVAAs and their causes identified through the literature as the basis for the empirical survey. Past NVAAs related publications [2, 4, 8, 11, 13, 17] provided the theoretical basis for the study. In other words, the questions that were asked through the questionnaire were derived from the re-viewed NVAAs related literature. A total number of 122 clients, 117 consulting engineers that are members of Consulting Engi-neers South Africa (CESA), and 108 civil engineering contractors that are members of South African Federation of Civil Engineering Contractors (SAFCEC) that were surveyed constitute the sample size for the study. The 3-month survey period was devoted to sending the questionnaire to identified respondents through the postal service and the principal investigator’s email. However, despite series of reminder emails, only 88 valid responses were received, which equates to a 25.4% response rate.

Furthermore, because this paper presents findings that form part of a larger research project, the use of mean comparisons is considered appropriate for presenting the results. In this sense, the likert-scale type questions are discussed based upon mean score (MS) comparison as indicated in Table 1. The ranges in Table 1 are computed based on the fact that all the likert-scale type questions used in the research were to a five-point likert-scale. Therefore, the difference between the upper and lower ends of the used scale is 4.0 since there are five points. Hence, each range can be equated to 0.80 because the extent of the range is

determined by a division between 4.00 and 5.00 (4/5).

Table 1: Terms used to discuss mean score comparison.

Mean score range Meaning

> 4.20 ≤ 5.00 Near major extent to major extent

> 3.40 ≤ 4.20 Some extent to near major extent

> 2.60 ≤ 3.40 Near minor extent to some extent

> 1.80 ≤ 2.60 Minor to near minor extent

> 1.00 ≤ 1.80 Less than minor to a minor extent

the Results Table 2 presents the overall ranking of NVAAs recorded in the survey. The tabulated data are particularly important because of the need to create awareness related to NVAAs in the sector. Table 2 indicates the respondents’ perceptions of the extent to which NVAAs contribute to poor performance in South African construction in terms of percentage responses to a scale of 1 (minor) to 5 (major), and a MS ranging between 1.00 and 5.00. It is notable that twenty three (23) of the forty (40) MSs are above the midpoint score of 3.00, which indicate that in general the respondents can be deemed to perceive that the twenty three NVAAs contribute more of a major than a minor extent to poor project performance.

In Table 2, out of the nine NVAAs above 3.40, lack of required competencies is ranked 1st. The finding corroborates previous publications that have addressed issues relative to skills shortages.

Table 2: Extent to which NVAAs contribute to poor performance in South African construction.

nVaasResponse %

Ms Rankunsure Minor………….…………………Major

1 2 3 4 5

Lack of required competencies 0.0 2.3 8.0 18.4 31.0 40.2 3.99 1

Inadequate supervision 0.0 0.0 10.3 21.8 32.2 35.6 3.93 2

Waiting for critical tasks to be finished 1.1 6.8 13.6 19.3 26.1 33.0 3.66 3

Non-conformance of materials to specification 1.1 3.4 15.9 17.0 38.6 23.9 3.64 4

Waiting for materials 0.0 3.4 19.3 19.3 29.5 28.4 3.60 5

Waiting for instruction / information 0.0 6.8 17.0 20.5 21.6 34.1 3.59 6

Rework relative to design 1.1 13.6 11.4 15.9 23.9 34.1 3.54 7

Human error / mistake 3.4 4.6 16.1 26.4 29.9 19.5 3.45 8

Poor coordination of resources 2.3 5.7 15.9 25.0 33.0 18.2 3.43 9

Rework relative to foundation works 5.7 8.0 21.6 18.2 18.2 28.4 3.40 10

Poor sequencing of tasks 4.5 4.5 19.3 26.1 27.3 18.2 3.37 11

Ignorance 1.1 6.9 20.7 21.8 28.7 20.7 3.36 12

Rework relative to structural works 8.0 10.2 12.5 26.1 21.6 21.6 3.35 13

Rework relative to finishing works 9.2 9.2 14.9 24.1 21.8 20.7 3.33 14

Strikes 3.5 16.3 18.6 15.1 15.1 31.4 3.28 15

Waiting for equipment 2.3 5.7 27.3 21.6 23.9 19.3 3.24 16

Low employee morale 1.1 11.5 10.3 35.6 27.6 13.8 3.22 17

Unreliable / defective equipment 1.1 11.4 19.3 26.1 26.1 15.9 3.16 18

Waiting for specialist to arrive 3.4 13.8 17.2 27.6 17.2 20.7 3.14 19

Defective materials on site 3.4 11.4 21.6 25.0 19.3 19.3 3.14 20

Idleness on site 2.3 9.2 21.8 31.0 19.5 16.1 3.12 21

Unnecessary work 4.6 4.6 27.6 27.6 24.1 11.5 3.11 22

Inappropriate positioning of cranes 20.7 17.2 6.9 21.8 23.0 10.3 3.03 23

This NVAA is closely related to the other eight NVAAs that are above 3.40. For instance, a measure of competence is required for adequacy of supervision, avoidance of rework, reduction of human error / mistake, and the coordination of resources. Similarly, the twenty eight NVAAs that fall within the range > 2.60 ≤ 3.40 are equally deserving of required attention as they can potential derail the smooth progress of projects. For example, defective materials on site or unreliable equipment on site may slow down the execution of critical tasks on site and in turn affect the overall project schedule with the attendant cost implications.

Similarly, rework in any form poses significant challenges in terms of quality and H&S that often lead to unforeseen conse-quences. These twenty eight NVAAs should thus be given the attention they deserve in order to avoid poor project performance in South African construction. In specific terms, the MSs that fall within the range > 3.40 ≤ 4.20 indicate that nine NVAAs can be deemed to contribute between some extent to a near major extent; while MSs that fall within the range > 2.60 ≤ 3.40 indicate that twenty eight NVAAs can be deemed to contribute between a near minor extent to some extent / some extent to poor performance in South African construction.

In Table 3, it is notable that thirty one of the 40 MSs are above the midpoint score of 3.00, which indicates that in general more that 70% of the respondents can be deemed to perceive that the causes of NVAAs contribute majorly to NVAAs in South African construction. The MSs that fall within the range > 3.40 ≤ 4.20 indicate that fifteen causes can be deemed to contribute between some extents to a near major extent. Out of these fifteen causes, five are related to causes of NVAAs with respect to designers, three are related to causes of NVAAs with respect to human resources, five are related to causes of NVAAs with respect to information and documentation, and two are related to causes of NVAAs

with respect to site operations. Looking at the results this way, it can be assumed that issues pertaining to human resources, information, and documentation could lead to NVAAs in South African construction.

Furthermore, of the fifteen causes of NVAAs > 3.40, lack of appropriately skilled workers is ranked 1st. The obvious implica-tion for this particular finding is that availability of skills may be closely related to the NVAA, lack of required competencies that is ranked 1st in Table 2. Repetitive revisions and changes, poor interaction, incomplete drawings / designs, error in material specifications, unclear design / details, slow response to RFI, late dissemination of information, and inadequate design information are also causes of NVAAs with severe cost and schedule implica-tions that are predominately under the influence of consultants.

While delay in design approval and bureaucracy may be at-tributed to client related lapses, poor planning of construction, lack of leadership abilities, poor decision-making abilities, and unrealistic project execution plan are causes of NVAAs directly attributed to deficiencies in contractors’ site operations. So, the causes of NVAA ranked 1st to 15th in Table 3 are associated with the responsibilities of clients, consultants and contractors. This suggests that the reduction / elimination of NVAAs depend on the entire construction supply chain as against a single firm in the construction process.

The twenty three causes of NVAAs that fall within the range > 2.60 ≤ 3.40 equally deserve consideration as their existence exposes a project to poor performance. For instance, unsuitable construction methods may lead to rework, and then affect the morale of workers through fatigue and stress, which in turn, may propagate poor performance in the construction process. The same analogy applies to the other 22 causes of NVAAs in various forms. The table further shows that the MSs that falls within the


Waiting for labour to arrive 3.4 13.6 25.0 20.5 23.9 13.6 2.99 24

Waiting for work space / platform 6.8 12.5 21.6 27.3 19.3 12.5 2.98 25

Poor ergonomics and injuries 15.9 15.9 15.9 19.3 21.6 11.4 2.96 26

Rework relative to formwork 9.1 11.4 25.0 26.1 13.6 14.8 2.95 27

Loss of materials on site 1.1 9.1 28.4 33.0 19.3 9.1 2.91 28

Waiting for inspections 1.1 10.2 30.7 29.5 14.8 13.6 2.91 29

Poor equipment movement 5.7 12.6 20.7 31.0 24.1 5.7 2.89 30

Rework relative to electrical works e.g conduit 17.2 10.3 25.3 24.1 12.6 10.3 2.85 31

Rework relative to services e.g plumbing works 10.3 9.2 27.6 32.2 10.3 10.3 2.83 32

Rework relative to mechanical works e.g a/c 17.2 8.0 26.4 29.9 9.2 9.2 2.82 33

Poor vehicle / truck movement 8.0 10.2 22.7 35.2 21.6 2.3 2.81 34

Unnecessary material handling 4.5 14.8 25.0 34.1 15.9 5.7 2.71 35

Unnecessary repetitive handling of tools 18.2 12.5 20.5 34.1 12.5 2.3 2.65 36

Waste of raw materials on site 2.3 19.3 27.3 30.7 11.4 9.1 2.63 37

Deterioration of materials on site 3.4 22.7 21.6 33.0 13.6 5.7 2.56 38

Excess materials on site 4.5 14.8 47.7 23.9 5.7 3.4 2.32 39

Excessive inspection of materials 8.0 34.1 15.9 25.0 14.8 2.3 2.30 40

Table 3: Extent to which causes contribute NVAAs in South African construction.

causes of nVaasResponse %

Ms Rankunsure Minor……………………Major

1 2 3 4 5

Lack of appropriately skilled workers 1.2 4.7 9.3 19.8 27.9 37.2 3.85 1

Repetitive revisions and changes 1.2 5.8 14.0 14.0 25.6 39.5 3.80 2

Delay in design approval 1.2 8.1 11.6 15.1 27.9 36.0 3.73 3

Poor planning of construction 1.1 4.5 12.5 21.6 33.0 27.3 3.67 4

Late dissemination of information 1.1 5.7 11.5 19.5 40.2 21.8 3.62 5


products of poor project management.

• Non-value adding activities should be listed and publicised in order to inform construction industry to be aware of such activities in order to avoid or eliminate them.

• Non-value adding activities can be detrimental to any project if not managed properly.

conclusions and RecoMMendationsThe inference of the findings of this study for the management of projects is centred on the ‘competence’ of key project stakehold-ers in the infrastructure sector. The public sector client should endeavour to promote the assignment of construction project management responsibilities to appropriately skilled internal experts in order to forestall clients induced NVAAs. At the same time, it can be suggested that consultants should avoid the use of graduates without the necessary ‘know-how’ to sign-off work on project sites as their inputs may have unintended effects on project performance. Even contractors should place key emphasis on professional development of their existing employees, and

range > 2.60 ≤ 3.40 indicate that twenty three causes can be deemed to contribute between a near minor extent to some extents to the occurrence of NVAAs in South African construction. Out of these twenty three causes, five are related human resources, three are related designers, three are related to information and documentation, six are related to materials / equipment, and six is related to construction site operations. Nevertheless, Table 2 and Table 3 clearly amplify the need to address NVAAs and their propagation with the use of forty variables related to NVAAs, and forty variables related to the causes of NVAAs in this study.

The results of the structured questions were also supported by the general comments made by some of the respondents. Such commentary argued that:

• Non-value adding activities should be minimised to ensure project success.

• It is imperative that a module be established to eliminate non-value adding activities as much as necessary so as to reduce unscheduled spending and ensure the production of attractive and efficient products.

• Non-value adding activities in South African construction are

Poor interaction 2.3 3.5 17.4 20.9 29.1 26.7 3.60 6

Incomplete drawings / designs 0.0 9.2 13.8 17.2 29.9 29.9 3.57 7

Bureaucracy 2.3 8.0 17.2 18.4 25.3 28.7 3.51 8

Lack of leadership abilities 0.0 2.3 14.9 29.9 35.6 17.2 3.51 9

Error in material specifications 1.1 11.5 14.9 14.9 28.7 28.7 3.49 10

Unclear design / details 1.1 6.9 13.8 24.1 34.5 19.5 3.47 11

Slow response to RFI 15.3 9.4 7.1 23.5 24.7 20.0 3.46 12

Poor decision-making abilities 0.0 4.6 13.8 34.5 26.4 20.7 3.45 13

Inadequate design information 1.1 9.1 14.8 23.9 25.0 26.1 3.45 14

Unrealistic project execution plan 1.2 10.5 12.8 23.3 26.7 25.6 3.45 15

Inappropriate construction methods 1.1 4.5 17.0 30.7 27.3 19.3 3.40 16

Contradictions in design documents 2.3 12.6 12.6 20.7 29.9 21.8 3.36 17

Scarcity of materials 10.2 8.0 15.9 27.3 22.7 15.9 3.25 18

Accidents due to poor H&S 2.3 12.5 20.5 20.5 21.6 22.7 3.22 19

External influence on operations 13.6 5.7 15.9 33.0 18.2 13.6 3.21 20

Design revisions 1.1 8.0 18.4 32.2 25.3 14.9 3.21 21

Error in material specifications 6.9 11.5 14.9 23.0 32.2 11.5 3.19 22

Poor document control system 2.3 9.2 17.2 34.5 24.1 12.6 3.14 23

Inadequate materials control 2.3 6.8 18.2 33.0 34.1 5.7 3.14 24

Poor site layout 5.7 6.9 20.7 33.3 26.4 6.9 3.06 25

Lack of cooperation among workers 3.4 8.0 22.7 33.0 21.6 11.4 3.06 26

Scarcity of workers 2.3 12.5 19.3 31.8 18.2 15.9 3.06 27

Poor team spirit among workers 3.4 9.1 21.6 30.7 28.4 6.8 3.02 28

Inadequate staging areas / platforms 11.4 8.0 20.5 29.5 23.9 6.8 3.01 29

Delays in material transportation 4.5 12.5 22.7 23.9 25.0 11.4 3.00 30

Design not requested by client 13.8 10.3 23.0 26.4 9.2 17.2 3.00 31

Scarcity of equipment 6.8 13.6 19.3 27.3 20.5 12.5 2.99 32

Low morale among workers 2.3 11.5 21.8 33.3 20.7 10.3 2.96 33

Over / Under ordering materials 5.7 10.2 23.9 29.5 22.7 8.0 2.94 34

Over design 3.4 12.6 27.6 26.4 17.2 12.6 2.89 35

Inappropriate use of equipment 5.7 12.5 25.0 31.8 18.2 6.8 2.81 36

Lack of empowerment 4.5 14.8 28.4 29.5 18.2 4.5 2.68 37

Excessive control & inspection 2.3 20.7 21.8 34.5 12.6 8.0 2.65 38

Poor waste management practices 9.1 18.2 27.3 30.7 11.4 3.4 2.50 39

Removal of unspecified material 10.2 19.3 26.1 31.8 6.8 5.7 2.48 40


also ensure that new recruits are armed with appropriate built environment qualifications so that they sure of their suitability for challenging roles in the industry, especially the ability to identify and root out NVAAs in the process.

These suggestions are derivable based on the empirical evi-dence that the lack of appropriate artisan and site management skills could increase the amount of NVAAs, which in turn, add to poor performances recorded in South African construction as illustrated in Figure 1. However, it is arguable that the dynamics that have hindered project performance improvement in South African construction is as illustrated in Figure 2. Figure 2 pro-pose that either the increase in skills of project stakeholders can potentially reduce the amount of NVAAs, and promote improved project performance in South Africa or the lack of skills can also potentially increase the amount of NVAAs, which in turn promote poor performance (reduce improved performance) in South Africa. These illustrations provide plausible explanations for the dynamics that can be deemed responsible for and / or contribute to poor performance in construction.

Figure 1: Dynamics of poor project performance in South African

construction.

Figure 2: Dynamics of NVAAs propagation in South African con-

struction.

RefeRences[1] Abdel-Razek, R. H., Abd Elshakour M, H. & Abdel-Hamid,

M. (2007) “Labour productivity: Benchmarking and vari-ability in Egyptian projects”, International Journal of Project Management, Vol. 25 No. 2, pp. 189-197.

[2] Alancon, L.F. (1997) Tools for the identification and re-duction of waste in construction projects. In L. Alarcon, ed. Lean construction. Rotterdam: Balkema. pp.365-77.

[3] Alwi, S., Hampson, K. & Mohamed, S.C. (2002) Non value-adding activities: a comparative study of Indonesian and Australian construction projects. In 10th annual con-ference of the International Group for Lean Construction proceedings. Granmado, August 2002. International Group for Lean Construction.

[4] Alwi, S., Hampson, K. & Mohamed, S.C. (2002). Factors influencing contractor performance in Indonesia: A study of non-value adding activities. In International Conference on Advancement in Design, Construction, Construction Management, and Maintenance of Building Structure. Bali, March 2002. Advancement in Design, Construction, Construction Management, and Maintenance of Building Structure.

[5] Construction Industry Development Board (2008) The cidb construction industry indicators summary results: 2007. Pretoria: cidb.

[6] Flyvbjerg, B., Holm, M.K.S. & Buhl, S.L. (2003) How common and how large are cost overruns in transport in-frastructure projects. Transport Reviews, 23(1), pp.71-88.

[7] Forbes, L.H & Ahmed, S.M. (2011) Modern construction: lean project delivery and integrated practices, CRC Press, Boca Raton.

[8] Han, S., Lee, S., Fard, M.G. & Pena-Mora, F. (2007) Mod-elling and representation of non-value adding activities due to errors and changes in design and construction projects. In 40th annual Winter Simulation Conference proceedings. Washington D C, 2007. IEEE.

[9] Hanna, A.S., Taylor, C.S. & Sullivan, K.T. (2005) “Impact of extended overtime on construction labour productivity”, Journal of Construction Engineering and Management, Vol. 131 No. 6, pp. 734-739.

[10] Horman, M.J. & Kenley, R. (2005) Quantifying levels of wasted time in construction with meta-analysis. Journal of Construction Engineering and Management, 131(1), pp.52-61.

[11] Hwang, B., Thomas, S.R., Haas, C.T. & Caldas, C.H. (2009) Measuring the impact of rework on construction cost performance. Journal of Construction Engineering and Management, 135(3), pp.187-98.

[12] Kalidindi, S.N. & Thomas, A.V. (2002) Identification of critical risks in Indian road projects through BOT procure-ment approach. In T.M. Lewis, ed. Procurement systems & technology transfer. St Augustine: The University of the West Indies. pp.339-54.

[13] Koskela, L. (1992) Application of the new production philosophy to construction. Technical Report No. 72, Center for Integrated Facility Engineering (CIFE). Stanford University.

[14] Koskenvesa, A., Koskela, L., Tolonen, T. & Sahlstedt, S. (2010) Waste and labour productivity in production plan-ning: case Finnish construction industry. In 18th annual conference of the International Group for Lean Construction proceedings. Haifa, 2010. International Group for Lean Construction.

[15] Ndihokubwayo, R. & Haupt, T.C. (2008) Uncovering the origins of variations orders. In: 5th cidb Post Graduate Conference proceedings, Bloemfontein, 16-18 March 2008. Pretoria: cidb, pp. 88-96.

[16] Office of Government Commerce (2007) Continual Service Improvement. London: The Stationery Office (TSO).

[17] Polat, G. & Ballard, G. (2004) Waste in Turkish construc-tion: need for lean construction techniques. In: 12th annual conference of the International Group for Lean Construction proceedings. Copenhagen, 2004. Interna-tional Group for Lean Construction.


abstRactPurpose: Office space planning requires design skills and space planning norms to ensure space efficient office areas allowing occupants to perform optimally. No specific space norms exist for South African municipalities. Municipal facilities are unique and fulfil many functions, challenging the application of space norms. This study was part of work commissioned by the Development Bank of South Africa (DBSA) to understand municipal office space use in preparing a guideline for future municipal office building funding applications. The study evaluated current South African municipal office space allocation, compared it to office space planning norms for South African organs of state and identified possible challenges to applying the said space planning norms to municipal office space planning.

design: The study was based on data from fieldwork surveys by professional quantity surveyors and valuators on municipal office space utilisation. Time and cost constraints restricted the survey to non-metropolitan municipalities in four provinces. The study ad-opted qualitative and quantitative methods to reach the findings.

findings: The study revealed significant comparisons and devia-tions from South African and international space planning norms and identified challenges for municipalities to apply space plan-ning norms.

Value: This study provides insight into the current state and efficiency of municipal office space utilisation. By identifying challenges for applying space planning norms to municipalities the study suggests where future action should be focused to ad-dress the problem.

keyWoRdsMunicipalities, office space, South Africa, space allocation, space norms,

intRoduction“The reality of a building consists not in the walls and the roof, but in the space within,” (Lao-Tse, philosopher). Buildings, specifically functional buildings such as auditoriums or shopping centres are designed for a specific use. The internal layout of office buildings may differ significantly from a call centre with large open plan area and a few offices for management to a medical practice with private offices and an open plan waiting area. Industry reference data [1] confirmed that the organisation of office work will affect the requirements for office space. The internal layout of office space will also be affected by the organisation’s organogram (organisation structure). Management may command more gen-erous office and supplementary space with open plan or cellular office space typically being provided for operational functions [2].

Municipal facilities are unique as they fulfill a wide variety of

eValuation of offiCe sPaCe utilisation in south afriCan muniCiPalities

Hoffman DJ and Viljoen T1

1Department of Construction Economics, University of Pretoria, South Africa

D J Hoffman, Department of Construction Economics, University of Pretoria, South Africa, tel: +27124202551, fax: +274203598, email: [email protected]

functions such as offices, council chambers, city halls, public service areas, technical support facilities, etc. Evaluation of space allocation in municipal buildings therefore presents challenges and cannot necessarily be compared to other buildings. This study, however, focused only on municipal office facilities and the dif-ferences found within the internal layout of municipal offices and the related space norms.

The Local Government: Municipal Systems Act 32 of 2000 Vol. 425 [3] defines municipalities as organs of state with a separate legal entity within the local sphere of government exercising leg-islative and executive authority within a determined area.

The South African Department of Public Works (DPW) issued a space planning norm guideline document called the Space Planning norms and standards (SPNS) for office accommodation used by organs of state [4]. This study investigates if the current office space utilisation in South African municipalities indicates an efficient use of space, as required by the Department of Public Works Space planning norms. The study also evaluates if deficien-cies or challenges are experienced by municipalities in applying the abovementioned office space guidelines.

Importance of the studyThe study forms part of work commissioned by the DBSA to better understand municipal office space use in preparing a guideline for future municipal office building funding applications. The study evaluates the current state of office space utilisation in South African municipalities against norms in office space planning and if specific challenges exist to applying the SPNS to municipal office space planning.

This study provides insight into the current state of office ac-commodation in municipalities and also reveals significant com-parisons with and deviations from South African space planning norms as well as those of international norms. The study assists in identifying problems faced by municipalities attempting to apply the SPNS, highlighting suggestions for further study.

ReseaRch desiGnThe DBSA fieldwork survey required careful selection of the sample of municipalities to be included as well as the information to be gathered from each municipality. This involved a process of elimination that considered classification and sizes of municipali-ties, selection of provinces, selection of towns and municipalities and definition of work categories. The Gaffney Group’s Local Yearbook for 2007 – 2008, [5] on local government in South Africa categorised municipalities into small municipalities (less than 50 000 people being serviced), medium (50 000 to 150 000 people being serviced) and large (more than 150 000 people being serviced). To avoid distortion of the findings, the DBSA decided to exclude the large metropolitan municipalities as well as their provinces from the research sample. Due to time and budget constraints it was decided to only include four provinces


i.e. Free State, North West, Mpumalanga and Eastern Cape in the research. Within each province a range of one large, two medium and two small municipalities were selected to serve as sample for the DBSA fieldwork survey.

To prevent distortion by the richest or poorest municipalities a wealth factor was calculated for each municipality by dividing the municipal operating budget by the number of households being serviced. Municipalities at the highest and lowest ends of the wealth factor range were excluded from the sample. The annual wealth factor calculated for all municipalities in the four provinces varied between R2 290.00 and R12 065.00 per household. The 46 municipalities selected for the sample had annual wealth fac-tors varying between R4 000.00 and R7 000.00.

The different categories of municipal office spaces to be measured by the fieldwork survey teams were also carefully considered. Detailed and objective findings required a structured gathering of data of the different disciplines of office spaces typical found in municipal offices. The credibility of the findings required apples-with-apples comparison of the data. The gathering of data was structured to allow for separate measurements of council chambers, mayoral parlour, municipal manager administration, treasury, engineering, parking and roads, community service and others (porte-cochere, covered walkways, sheds, etc.). The SPNS was used as reference against which the survey measurements were compared and the survey measurements therefore had to accommodate the different work categories of the SPNS. The SPNS allows for: administrative offices (6 – 8 m²), technical & management (8 – 16 m²), senior management (16 – 20 m²) and executive management (20 – 25 m²). Specific office space types such as large entrance foyers, open plan cashier halls and town halls were omitted to prevent distortion of the findings

The fieldwork survey was conducted by four teams equipped with steel tape measures, lasers and digital cameras. To ensure consistency in measurement a pilot survey conducted by a team consisting by one person of each team was undertaken prior to the start of the fieldwork survey to serve as a training session and create a sound basis for all the following surveys.

Prior to the fieldwork surveys, the relevant municipalities were contacted to inform them of the survey and to obtain permission and co-operation. Each municipality was also requested to provide an organogram of their office organisation providing information on the structure of the organisation.

Data measuring toolThe study required the average size of office to be calculated per category, size municipality, province, etc. Severe or substantial deviances from the averages, such as completely open plan areas or extremely large or small office spaces were removed from the data to prevent distortion. The calculated average size of catego-ries of offices in small, medium and large sized municipalities in each province was regarded as a ‘fieldwork survey space norm’. For ease of comparison, the average office sizes calculated were rounded to the nearest m2. . The data range for, e.g., administra-tion offices measured as 16.73m2 (small), 19.84m2 (medium) and 21.13m2 (large) would be reported as 17 – 21 m².

The calculated fieldwork survey norms were compared to the SPNS and an allowable deviance therefore had to be set. It was decided that both the lowest and highest end of the fieldwork survey data range should be within 10% from that of the SPNS range. If the fieldwork data range fell within the allowable devi-ance range the space allocation was regarded as within acceptable norms. If the lower end of the fieldwork data range fell within the allowable deviance range, but the higher end was higher than the allowable deviance, space allocation was regarded as acceptable but higher than the acceptable norms. If the lower end of the fieldwork data range was also higher than the higher end of the allowable deviance range, the space allocation was regarded as to be excessive.

If the higher end of the fieldwork data range fell within the al-lowable deviance, but the lower end was lower than the allowable deviance, space allocation was regarded as acceptable but lower

than the acceptable norms. If the higher end of the fieldwork data range was lower than the lowest end of the allowable deviance range, the space allocation was deemed as excessively low.

Measuring of challengesThe study also investigated if any significant challenges were discovered to applying space norms to municipal offices. Evalu-ation of the above was based on the identification of problems with one or more of the following steps required to successfully apply the SPNS:

1. Obtain organisational information

2. Develop and area schedule

3. Determine support space to each organisational grouping

4. Determine core function space of the building

5. Allow for structural elements

ReVieW of Related liteRatuReDefinition of space planning and space normsInterior design is about creating interiors with spatial qualities that are habitable for people of all levels of experience: aesthetically, functionally, psychologically and economically aimed to achieve comfort and efficiency [6]. Space planning consists of creating functional, productive, efficient and flexible working areas through optimal use of space within a building and within the design constraints thereof [7].

Space norms are instruments to measure and evaluate effi-ciency of space planning and allocation. This was confirmed by a study [8] on building-norm system for medium-security prisons in South Africa. Mathews also argued that that space norms should be used as a planning instrument and will affect the design team and other construction consultants, such as quantity surveyor and project manager.

The Department of Community Development (DCD) issued the space and cost norms for office buildings, funded wholly or partially by the state in 1983 [4], that defined space norms as the total assignable area for the staff, office functions, and office equipment.

In defining space planning and space norms, it is also neces-sary to understand ergonomics and facilities management which both affect space planning and the office environment. The International Facilities management association (IFMA) defined ergonomics as the study of people’s efficiency in their working environment, the science of designing the job, equipment and workplace to fit the worker [9]. The IFMA also defined facilities management as a profession that encompasses multiple disci-plines to ensure functionality of the built environment by integrat-ing people, place, process and technology [9].

According to well-known and recognised industry norms, [1] space norm is more than merely allocating an average amount of space to a person. Psychology in the work environment is affected by space allocation and refers to productivity and efficiency of people in the workspace and how they experience it. A more recent study [7] supports the concept that a person’s work environment directly influences psychology and morale. Individual productivity is tied to performance of the person in the environment. Perfor-mance and productivity in the workplace is supported by physical comfort, psychological comfort and functional comfort.

Evolution of office spaceOffice buildings and the design of office space have evolved over time. According to well-known industry norms [1], the layout of office space has changed dramatically since the 1950s. Work has become more streamlined and automated, requiring less space. Smaller and portable computers, electronic filing and hot desks where a number of employees share a single workstation decrease the requirement of space. A more recent industry review [10] agrees that an evolution in architecture and in office occupants’


requirements has allowed for more modern and efficient ways of executing work.

Determining floor area requirements Often used industry norms [1] accept that office requirements are calculated in two parts: people space and non-people space (machine rooms and circulation areas). More recent opinions [11] refer to non-people spaces as “We” space and people space as “I” space. People space (“I” space) consists of standard individual space and an allowance for immediate ancillary needs and a factor for primary circulation.

The internal space planning of offices is influenced by structural members such as columns, beams and brick walls as well as vari-ous shapes and configuration of buildings [1]. The SAMCO report [3] in discussing office layout and design said that offices should be north facing (towards the sun) with service cores located on the south face and that office efficiencies of between 75% and 90% should be aimed for. Other researchers are of opinion that designers should approach space planning by understanding and optimising the ‘language bridge’ of business and technol-ogy, buildings and design with people and culture [11]. He also links the close correlation between organisational structures and office layouts.

History of space normsEarly studies confirmed that [12] office planning started as early as the late 1950s when the workplace was still regarded as a united whole with many complex interactions. Later work [13] supported the early opinion, saying that between 1950 and 1960 an office building boom was created due to the expansion of businesses. The development of space planning was a response of corporate growth - a response to the needs of that time.

The application of space planning norms can be found in various industries for various types of building. Work done on the application of norms in South Africa [8] confirms that space planning norms can be applied to health services, educational facilities and public office buildings, correctional facilities, hotels & motels and airports.

The SANS National building regulations (NBR) [14] provides basic allowances of the minimum allowable space and forms a logical starting point for any design. The NBR, however, does not assist in space planning. According to the SANS NBR, the minimum allowable floor area for any liveable room is 6 m² and the minimum floor space per person in an office building is 15 m².

Space norms in municipalitiesThe Department of Community Development (DCD) [15] devel-oped a guide in 1983: Space and cost norms for office buildings funded wholly or partially by the state to establish standards and create a convenient way of estimating the area requirements and cost of office buildings. This study focused on South African municipalities or the third level of government, the DCD space and cost norms guide was deemed to be applicable

The Department of Public Works SPNS for office accommoda-tion used by organs of state [4] is a space planning tool that has evolved over time and allows for space planning trends having moved from purely cellular offices to a mixture of cellular and open plan offices.

Application of space norms The steps of how space norms should be applied during the space planning of office buildings according to SPNA and are supported by developed guidelines [16] are: Obtain organisational informa-tion; develop an area schedule; determine support space to each organisational grouping; determine core function space of building and allow for structural elements.

eValuation of dataThe fieldwork data was processed and summarised in order to be compared to the work category descriptions found in the SPNS. The result of the processed data is summarised in Table 1 to indicate average space ranges for each work category, for each size municipality in the four provinces.

The calculation of the total office area for a category consists of the totals of each province, divided by the total number of offices. The averages of the different sizes of municipalities indicate that in 75% of the cases the large sized municipalities are providing on average the largest office space allocation. Comparing the different provinces did not provide any clear trends of over or under allocation of space. No other trends or specific deviations were identified

The information summarised in Table 1 was used to create an office space data range. This space data range has a space norm range that is neither too wide nor too narrow and could be tested against other norms ranges.

The fieldwork survey space norm was then compared against the SPNS. This is the most recent space norm which is applicable to municipal facilities. Table 2 compares the fieldwork survey norm range with the SPNS: Column A indicates the norms pro-vided in the SPNS. Column B provides the allowable deviance from the SPNS norms. Column C provides the Fieldwork data range derived from the average totals. Column D comments on the measurements of the fieldwork data range compared to the allowable deviance, which is based on the SPNS norms. The categories measure as follows:

Administrative: the lower end of the fieldwork data range is higher than the higher end of the allowable deviance range, therefore the space allocation is deemed to be excessive.

Technical and management: the lower end of the fieldwork data range falls within the allowable deviance range, but the higher end falls outside of the allowable deviance, therefore the space allocation is acceptable but tends to be higher than the accept-able norms.

Senior management: same result as technical and management, therefore the space allocation is acceptable but tends to be higher than the acceptable norms.

Executive management: same result as senior management and technical and management, therefore the space allocation is acceptable but tends to be higher than the acceptable norms.

Other available office space norms such as Space and cost norms [15], the space norms stated by Dovey [3] for South African offices in general and Neufert & Neufert’s [1] space norms for general offices within the UK. Table 3 compares the fieldwork results with the other available space norms:

Table 3 indicates that the fieldwork norm range is generous compared to most other office space norms. It may be concluded that the current office space in South African municipalities is being underutilised or that municipalities typically provide larger office sizes than what is needed. This could imply a few things:

• Municipalities could accommodate more employees within the buildings currently occupied.

• Municipalities could rather occupy smaller offices.

• The facilities may have been sufficient at some point in time, but has now become underutilised.

• Municipalities are occupying buildings that are available (even though they may be too big), and not buildings that are neces-sarily addressing their space requirements.

It should be noted that most municipal facilities are hosted in older buildings, some dating back to the early 1920s. These older buildings have internal brick walls and often do not lend themselves to open plan offices. Office sizes are therefore mostly fixed. The SPNS are more recently developed norms and is based on allowance for open-plan offices.


Discussion on fieldwork constraints

The literature review confirmed the importance of an organogram for space planning. However not one of the municipalities visited could provide an organogram. This proved to be the single most important constraint to the fieldwork. A properly developed or-

ganogram would have guided and assisted the fieldwork survey. The SPNS guideline on the application of norms requires organ-isational information to be obtained, such as size and structure of human resources, strategic objectives, activities, internal and

smallMunicipalities

MediumMunicipalities

largeMunicipalities

data range

Average area (m2) Average area (m2) Average area (m2)

administration:average total 17.03 19.84 21.13 17 - 21 m2

Free State 21.13 18.31 22.12

North West 14.38 21.87 22.84

Eastern Cape 17.41 16.62 13.12

Mpumalanga 14.05 19.05 19.97

technical & Management:average total 18.17 19.42 18.06 18 - 19 m2

Free State 19.02 19.35 21.19

North West 20.05 21.68 15.60

Eastern Cape 16.44 15.63 15.94

Mpumalanga 17.55 16.72 19.75

senior Management:average total 20.20 22.84 25.23 20 - 25 m2

Free State 20.11 25.44 27.41

North West 14.93 19.10 21.48

Eastern Cape 24.38 21.00 21.00

Mpumalanga 21.73 22.94 30.19

executive Management:average total 24.10 29.47 31.29 24 - 31 m2

Free State 21.58 32.65 33.81

North West 22.48 31.29 32.80

Eastern Cape 26.81 15.56 22.78

Mpumalanga 25.02 35.16 48.00

Table 1: Fieldwork data range.

Table 2: Measuring fieldwork norm against the SPNS.

Table 3: Comparing fieldwork data to other space norms.

sPns norms allowable deviance in range

fieldwork data range testing fieldwork data to allowable deviance

a b c d

Administrative 6 - 8 m2 5 - 9 m2 17 - 21 m2 excessive

Technical & management 8 - 16 m2 7 - 18 m2 18 - 19 m2 acceptable but high

Senior management 16 - 20 m2 14 - 22 m2 20 - 25 m2 acceptable but high

Executive management 20 - 25 m2 18 - 28 m2 24 - 31 m2 acceptable but high

fieldwork data range

sPns norms space and cost norms (1983)

dovey (1997) neufert & neufert (2000)

Administrative 17 - 21 m2 6 - 8 m2 10 - 12 m2 9 m2 6.70 m2

Technical & management 18 - 19 m2 8 - 16 m2 12 - 16 m2 10 - 12 m2 9.30 m2

Senior management 20 - 25 m2 16 - 20 m2 20 - 24 m2 20 m2 13.40 m2

Executive management 24 - 31 m2 20 - 25 m2 32 - 52 m2 20 - 30 m2 28.00 m2


external relationships, culture and work processes. Municipalities should develop organisational structures or organograms to assist their space allocation.

acknoWledGeMentsFull acknowledgement is given to:

The DBSA for their kind permission to use data from their survey in the study and in the writing of this report.

Davis Langdon Abakali Abalaing JV for using data from the report compiled for DBSA.

conclusions

Space norms and office space planning affect most working environments. This research evaluated space allocation against existing space norms. Space planning norms can be applied to many organisations with efficient results terms of efficiency, staff morale and space use.

The research indicated that most South African municipalities allocate too much office space to their occupants raising the option of using smaller office facilities with the associated cost saving. It may however also raise the question if office efficiency would be improved or negatively affected by using smaller office facilities.

The research highlighted the importance of the space planning process and provided a clear step-by-step process of applying space planning to office facilities. The research has proven that South African municipalities fail to provide sufficient organisational information to apply the space planning process. This highlights topics for further research.

In conclusion, the research findings make it easy to see why proper planning for office space planning is necessary and that the application of norms, whether for municipal offices, or any type of office accommodation can be useful.

RecoMMendationsThe research identified many topics for further study, which would contribute to the overall picture of space norms and office space planning, with special reference to South African Municipalities:

1. To repeat the survey on office space utilisation but for the remaining five provinces.

2. To evaluate the space planning in large metropolitan munici-palities.

3. How does current government spending on office accom-modation compare to the expenditure requirements provided in space and cost norms for office buildings funded wholly or partially by the state (1983)?

4. What is the implication of municipalities not having organo-grams readily available for reference or use?

RefeRences [1] Neufert, E and Neufert, P (Edited by Baiche, B and Wal-

liman, B), 2000. Architect’s Data third edition. Oxford, Blackwell Science.

[2] South Africa, 2000. Local government: Municipal systems Act No.32 0F 2000. Government Gazette Cape Town Vol. 425 No. 21776.

[3] Dovey, J, 1997. Industrial and office planning: Chapter 7 in Prince, R.C (ed.) 1997. The SAMCO report Johan-nesburg 1997. Sandton: South Africa Mapping Company.

[4] South Africa, 2005. Department of Public Works: Space planning norms and standards for office accommodation used by organs of state. Government Gazette Pretoria Vol. 483 No. 27985.

[5] Gaffney Group, 2008. Local Government in South Africa 2007 – 2008: Official Yearbook. In association with SALGA.

[6] Konigk, R., 2010. Interior design as architecture’s ‘Other’. Thesis, Master of Interior Architecture. University of Pretoria.

[7] Vischer, J., 2008. Towards a psychology of the work environment: Comfort, satisfaction and performance. In: Grech.C & Walter. D, (eds). Future office. Design, practice and applied research. Oxon, UK. Taylor & Francis, 25 – 31.

[8] Mathews, G.G., 1992. ‘n Twee-dimensionele gebounorm-stelsel vir mediumsekuriteitgevangenisse in die Republiek van Suid Afrika. Tesis, Magister in Bourekenkunde. Uni-versiteit van Pretoria.

[9] International Facilities Management Association, from: http://www.ifma.org/resources/what-is-fm/fm-definitions.htm (Accessed 20 January 2011).

[10] Kohn, E., 2008. Form, function and aesthetics in the design of tall buildings. In: Grech. C & Walter. D, (eds). Future office. Design, practice and applied research. Oxon, UK. Taylor & Francis, 95 – 103.

[11] Tanis, J., Duffy, F., Kuttner, P., Kampschroer, K., Heer-wagen, J., 2008. Organisational change. In: Grech.C & Walter. D, (eds). Future office. Design, practice and applied research. Oxon, UK. Taylor & Francis, 9 – 18.

[12] Duffy. F, 1969. A new approach to office planning. In: Duffy.F, & Wankum. A, Office landscaping. 2nd Edition. London. Anbar publications. 4 – 21.

[13] Shoshkes. L, 1976. Space planning. Designing the office environment. New York, McGraw Hill.

[14] South African National Standard, 2010. South African National Standard. The application of the National building regulations. Part C: Dimensions, SANS 10400-C:2010, Third edition. South African Buro for Standards, Pretoria.

[15] South Africa, 1983. Department of Community Develop-ment: Space and cost norms for office buildings funded wholly or partially by the state. Department of Community Development, Pretoria.

[16] Saphier. M, 1968. Office planning and design. USA, McGraw Hill

aPPendicesAppendix A - Letter to DBSA requesting consent to use ap-praisal study information for the research.

Appendix B - DBSA letter of consent to use appraisal study information for the treatise.

Please contact D J Hoffman, Department of Construction Eco-nomics, University of Pretoria, South Africa by telephone on +27124202551 or by email at [email protected] should you require copies of the above letters.



abstRactPurpose: This study investigated whether the Clean Development Mechanism (CDM) could assist with the funding of low-pressure solar water heaters in low-cost housing in South Africa. It aimed to identify the minimum requirements for the CDM to succesfully act as a funding mechanism.

Methodology: In this mixed-method study, qualitative methods, including a literature review, interview and case study, were used to inform the quantitative part of the study by identifying the key variables that had to be considered in developing a financial model that allowed the identification of the parameters that would make the CDM a viable funding mechanism.

findings: It was found that the Clean Development Mechanism by itself cannot fund the installation of 110l LP-SWH in low-cost housing in South Africa. For a CDM programme to be financially viable the CER prices should be at levels above R80 each and the price per LP-SWH should be less than R3 388.

limitations: In determining the feasibility parameters the study only considered two variables: the CER price and the capital costs of a LP-SWH unit.

Value of the paper: The paper offers policy makers and financial institutions an indication of the feasibility of the CDM as a financ-ing mechanism for LP-SWH in low-income housing.

keyWoRdsLow cost housing, Kyoto protocol, clean development mechanism, funding, low cost housing, low-pressure solar water heaters

intRoductionThe installation of solar water heaters in low-income housing in South Africa is driven by three factors: government policy on reducing greenhouse gas emissions through renewable energy, demand-side management initatives by power producer Eskom, and a government commitment to sustainable human settlement. These three drivers are also opening up different funding avenues for the installation of solar water heating. One of the avenues that are being explored is the Clean Development Mechanism (CDM) instituted under the Kyoto Protocol to encourage developed coun-tries to invest in projects that have the ability to reduce carbon emissions in developing countries. The CDM has the potential of creating a revenue stream by creating and selling carbon credits on the international carbon exchanges. In essence, the revenue stream created by the selling of carbon credits allows the investor to capitalise the future revenue stream to obtain project finance to develop carbon-reducing project in developing countries.

This study investigated whether the Clean Development

fundinG the imPlementation of solar Water heatinG in loW-inCome housinG in south afriCa throuGh the

Clean deVeloPment meChanism

Prof Chrisna du Plessis1; Thomas Arnoldus Petrus du Plessis2

1 [email protected]; 2 [email protected]

Corresponding author:Prof. Chrisna du Plessis; Department of Construction Economics, University of Pretoria, South Africa, Tel: 012 4203384,

fax: 012 420 3598, email:[email protected]

Mechanism could assist with the funding of low-pressure solar water heaters in low-cost housing in South Africa. Its aim was to identify the minimum requirements for the CDM to succesfully act as such a funding mechanism.

backGRoundSouth Africa’s energy supply is dominated by coal, with 96%

of electricity generated by fossil-fuel based power stations, which makes South Africa one of the 20 top greenhouse gas (GHG) emitters in the world [1]. South Africa committed at the fifteenth meeting of the Conference of the Parties (COP) to the United Na-tions Framework Convention on the Climate Change (UNFCCC) in Copenhagen to reduce its Greenhouse Gas emissions by 34% by 2020 and a further 8% by 2025 [2]. This commitment was restated at the COP17 meeting in Durban in 2011. Further pres-sure to encourage the use of renewable energy came in the shape of the national electricity crisis of 2008 and Eskom’s continued struggles to meet peak demand, let alone generate excess capacity [3]. As household consumption accounts for approximately 35% of peak demand, with hot water production constituting 40% of that demand [4], solar hot water heating offered a quick win to both the demand management pressures experienced by Eskom and the government’s GHG commitments.

In response, the National Solar Water Heating Programme (NSWHP) was established in 2008, an initiative that aimed to install 1 million domestic solar water heating (SWH) systems by 2014. The programme consisted of a subsidy scheme for low pressure SWH (LP-SWH) systems for low income households and a high pressure rebate scheme for low income households. To date over 350 000 solar geysers have been installed under this programme, the bulk of which were in low income housing projects [5]. To achieve a target of one million SWH installations by March 2015, approximately 25,000 installations per month will be required between January 2013 and March 2015 [6]. The Department of Energy has allocated a further R 4.7 billion over the next three years towards this target. Given that the govern-ment subsidy programme has since 1994 provided 3.3 million low cost housing units in the country, and there is an estimated backlog of a further 2.1 million [7], the NSWHP can only provide for a small fraction of the possible market for LP-SWH. Finding alternative funding for further expansion in this market is a critical consideration both for government’s GHG targets and Eskom’s need to manage peak demand.

A number of grant-funded programmes aimed at improving the energy efficiency of low-income housing have been imple-mented, however upscaling these have not proven viable in the open market. One of these, the Kuyasa project in Khayelitsha, did hold out some hope for an alternative funding mechanism. It was the first registered CDM project in South Africa, as well as the world’s first Gold Standard Project, and the first such project to harness the combined energy savings achieved through improved thermal efficiency in a large low-cost housing scheme to establish


supressed demand as a valid CDM methodology[8]. Part of this project included the installation of LP-SWH systems on more than 2 000 low income houses. The success of Kuyasa has prompted the registration of two other CDM PoA’s specifically for LP-SWH. The first of these was registered by the Solar Academy of Sub-Saharan Africa in 2010, and between July 2010 and May 2012 the project succeeded in rolling out over 80 000 units, aiming to achieve the installation of 229 000 units within three years. The programme uses the subsidy supplied under the NSWHP to cover the unit costs and installation, while the Carbon Emmission Reduction (CER) revenue is intended to cover maintenance for 10 years and ensure profitablity for SASSA. The second project has been registered by the Standard Bank of South Africa. This second project will be used as a case study to answer the main research question underpinning this paper: whether the Clean Development Mechanism could provide a viable funding source for the implementation of low-pressure solar water heaters in low-cost housing in South Africa.

MethodoloGyThe study set out to identify the minimum requirements for the CDM to act as a viable funding source for the installation and maintenance of LP-SWH systems. To obtain and test the data required a combination of qualitative and quantitative research methodologies.

A detailed literature review provided a thorough understanding of the Clean Development Mechanism, the registration require-ments and process, and its suitability for the funding, in its entirety or partially, of low-pressure solar water heaters in the low-cost housing sector in South Africa. This information was supplemented by an interview with a market authority in the specific area of the registration of a CDM programme for the financing of LP-SWHs for low-cost housing in South Africa to determine the specific financial aspects relating to the capital and operational costs of participating in a CDM programme. The purpose of the interview was to obtain financial information and operational processes that are not available in the public domain. The interview and literature identified the key variables that had to be considered. These included the minimum required carbon credit prices, the optimum capital costs for the installation of the LP-SWHs, and the balance required between these two factors to create a financially viable funding model. The third component of the qualitative part of the study consisted of a case study of a CDM programme that focuses solely on the installation and maintenance of LP-SWHs in the low-cost housing segment in South Africa. The purpose of the case study investigation was to extract relevant information pertaining to the funding of low-pressure solar water heaters in low-cost housing. The data obtained from the literature review, the interview and case study was used to create a financial model, which constituted the quantitative part of the study. The financial model was used to manipulate two variables (the initial capital costs and carbon credit prices) to identify the parameters within which a CDM programme would provide a viable funding avenue for the installation and maintenance of low-pressure solar water heaters in low-cost housing in South Africa. The research methodology is illustrated in Figure 1 below.

Figure 1: Research methodology.

undeRstandinG the clean deVeloPMent MechanisMIn 1992, at the Earth Summit in Rio de Janeiro, Brazil, the United Nations created the United Nations Framework Convention on Cli-mate Change (UNFCCC). The UNFCCC established a non-binding goal of stabilising greenhouse gas emissions at the 1990 levels by 2000. The UNFCCC came into effect in 1994. Countries that formed part of the UNFCCC were divided into two categories based on their respective rights and obligations under the Treaty. Annex I countries consist of industrialised countries that have committed to take the lead in reducing greenhouse gas emissions, in the light of their responsibility for past emissions. The Annex I parties are further divided into either an Annex II party or an Economy in Transition (EIT). Annex II countries include parties and members of the Organisation for Cooperation and Development (OECD) as of 1992, including European nations and the European Union (EU), Canada, the US, Japan, Australia, New Zealand and Tur-key, whilst EIT includes industrialised countries mainly from the former Soviet Union, and from Central and Eastern Europe [9] . Non-Annex I countries are subject to lighter obligations, which reflect their less advanced industrial development and their lower greenhouse gas emissions to date.

By 1995, both Annex I and Non-Annex I parties commenced negotiations to establish a more binding agreement, resulting in the 1997 Kyoto Protocol. The Protocol required the various nations that are party to the UNFCCC to agree to a collective reduction in the amount of greenhouse gas emissions by Annex I countries. The affected countries (Annex I) each committed to different targets, based on their economic positions and ability to reduce GHG emissions without severely damaging their economies. The Kyoto Protocol came into effect on 16 February 2005 [10].

The Kyoto Protocol created three flexible mechanisms to allow Annex I countries to reduce their GHG emissions. These mecha-nisms provided Annex I countries with the option of either reducing GHG emissions at home, or in Non-Annex I countries, should it be cheaper to do so. The mechanisms provided are International Emissions Trading (IET), the Joint Implementation Mechanism (JI) and the Clean Development Mechanism (CDM). Ormel et al [11] explains the flexible mechanisms as follows: International Emissions Trading allows Annex I countries to transfer parts of their allowed emissions (assigned-amount units) to another Annex I country. The Joint Implementation mechanism allows Annex I countries to claim credit for emission reductions that arise from an investment in other Annex I countries. The Clean Development Mechanism allows Annex I countries to implement emission-reduction projects in Non-Annex I countries to achieve sustainable development and to generate certified emission reductions (CERs) for use by the investing country or company.

Figure 2: Kyoto Protocol flexible mechanisms [11].

From Figure 2 it is clear that the main difference between CDM and the other two Kyoto flexible mechanisms is that the CDM is the only mechanism wherein the host nation is not an Annex I country. This factor makes the CDM the only mechanism that is available to South Africa as a developing country to employ so as

case study(Qualitative research)

case study(Qualitative:

Descriptive survey-interview)

data analysis inform of financial

model(Qualitative:

Non-experimental)

id key variables required for cdM to act as financing

method for lP-sWhs

host: annex l host: non-annex l

cleandevelopmental

Mechanism

joint implementation

kyoto Mechanisms

domesticreduction

emissiontrading


CDM projects have the ability to produce carbon credits (CERs) that could assist the developers of low-cost housing projects by selling the CERs to create an additional stream of income. The selling of the carbon credits combined with possible governmen-tal subsidies could potentially finance the installation of green technologies without adding unnecessary costs to the developer or the end users.

caRbon tRadinGDeveloped nations see carbon as a new commodity form and an asset class in its own right [14]. The term carbon income/trad-ing is, in essence, derived from the trading of Carbon Emission Reductions credits (CERs). Carbon as an asset class is regulated through emission trading systems whereby the trading is market driven and governed by supply and demand forces. The following is a hypothetical example offered by the European Union in the brochure EU Action against Climate Change, showing how differ-ences between companies’ marginal abatement costs provide the stimulus for the creation of a market in emission reduction credits.

“Two companies, A & B, each emit 100 000 metric tons of CO2 per year and each has been allocated allowances of 95 000 metric tons under their respective National Allocation Plans. Therefore, each will be 5 000 metric tons short unless some action is taken, either to make the reduction to fit the cap or to buy credits on the market, currently trading at around €3 per metric ton. For company A, the cost to cut 10 000 metric tons is €5 per metric ton, and it therefore decides to make that reduction. For company B, the marginal abatement cost is €15 per metric ton, and it is therefore cheaper for the company to buy on the market. The net result of these decisions is that company A receives €50 000 for the sale of its 5 000 metric ton surplus emission cuts and therefore fully recovers the cost of its reduction. For company B, with the much higher marginal abatement costs, the cap has been met at a cost of €50 000, instead of the €75 000 it would have cost to make the required reduction in-house.” [15]

CDM regulations stipulate that a real right can be acquired for a CER and they are transferable. The result is that once a CDM project is registered, the resultant CERs can be traded, transferred or delivered even before a CDM project begins [14]. The legal basis for the trading of CERs are Emission Reduction Purchase Agreements (ERPA).

The current economic conditions in Europe are unfavourable for the trading of CERs. The lack of economic activity and more specifically industrial production in Europe has severely lowered the demand for CERs as can be seen in Figure 5, which illustrates the volume of CERs traded over the last four years. Indications are that the current low demand for CERs is likely to continue for the next two years due to the depressed economic recovery forecasts in Europe.

Figure 5: CER volume traded (tonne) [16].

CER prices are a direct result of supply and demand factors of mainly European countries. The lack of demand and the current oversupply of CERs in the market resulted in the average price of CERs being lowered by approximately 70% since mid-2011. Figure 6 illustrates the current, historical and forecast data for CERs [17]. From the data is is clear that the current low price levels are likely to continue until 2012.

to obtain alternative finance from the trading of carbon credits.

The Clean Development Mechanism (CDM) allows Non-Annex I countries to participate in “emissions trading” using a project-based approach on projects wherever it is the cheapest globally. The emission reductions generated from a project activity can be quantified, certified and traded. The rules and modalities of the CDM are contained in the Marrakesh Accords. CDM projects need to promote sustainable development in the host countries (developing nations) and it must lead to emission reductions that are quantifiable, measureable and will reduce carbon emissions in the long term. The flow of funds from the developed countries towards the developing countries and subsequently the flow of carbon emission reduction credits (CERs) back to the developed countries is depicted in Figure 3 below.

Figure 3: CDM flow of funds [12].

The Clean Development Mechanism was designed to aid the financing of certified project activities, which includes imple-menting green technologies in low-cost housing with the aim of reducing the residential units’ carbon footprint by employing green technologies like low pressure solar geysers, compact fluorescent light bulbs (CFLs) and ceiling insulation.

According to the Department of Energy [12], of the 316 CDM projects submitted to the Designated National Authority, 228 are classified as Project Idea Notes (PINs) and 88 Project Design Documents (PDDs). Of the 88 PDDs, only 21 have been registered with the CDM Executive Board as CDM Projects and only eight projects are applicable to the low-cost housing sector. Of the eight CDM projects only two, the Kuyasa Low-Cost Urban Housing Energy Project and the SASSA Low-Pressure Solar Water Heating Programme, have been or are currently being implemented. The Standard Bank Low-Pressure Solar Water Heater Programme for South Africa has been approved in the second quarter of 2012 and Standard Bank in conjunction with International Carbon is currently investigating a few projects across South Africa in which to implement the CDM programme [13]. The eight low-cost housing CDM programmes make use of either energy-efficient or renewable energy technologies. The technologies employed by the eight projects are either a mixture between the various technologies or employ one of the following technologies: low-pressure solar geysers, CFL or LED lighting. The split between the abovementioned technologies are summarised in Figure 4 below:

Figure 4: Technologies used in current CDM projects in South Africa [12]

emissions

certified emissions

investments/Payments

developedcountry(Annex l)

developingcountry

(Non-Annex l)

Quota


Figure 6: Average CER prices per tonne [17].

case study: standaRd bank loW-PRessuRe solaR WateR heateR PRoGRaMMe foR south afRica

backGRound infoRMationThe Standard Bank South Africa (SBSA) programme will install SABS-approved non-pressure solar water heating systems to low-income households free of charge or at a minimal cost. The programme will make use of a combination of Eskom rebates and carbon finance. The CDM programme works as follows: SBSA is the legal owner of the Programme of Activities (PoA) with the rights to implement the programme in any part of South Africa as long as the project makes use of low-pressure SWH and caters for the low-income housing sector. International Carbon manages the PoA on behalf of SBSA in terms of the qualifications of the projects as well as the packing and implementation thereof.

Depending on the location of a specific project, a data-capturing company is appointed to monitor the project during the full life cycle of the project. The data captured by this company is used by SBSA to trade CERs on an annual basis. Depending on the location of the project and the developer of the specific low-cost development, a supplier meeting the requirements as per the PoA will be appointed to install, maintain and monitor the low-pressure SWH to ensure compliance with the life cycle of the PoA. The supplier enters into a CDM Programme Activity (CPA) agreement with SBSA. The supplier applies for an SWH subsidy from Eskom for the total number of units to be installed in the project. To be able to do this, the installer has to first enter into an agreement with the households/beneficiaries of the low-cost housing units to be fitted with the SWH. Finally, SBSA enters into an agreement with the respective households to claim the carbon rights generated by the SWH to be installed. This provides SBSA with the legal right to claim the generated CERs without facing potential future financial claims from the households. Figure 7 below illustrates the implementation framework to be followed under the Standard Bank LP-SWHs CDM programme:

Figure 7: SBSA implementation framework [13].

All SWH’s installed in this programme must be passive (no pump to circulate the water or transfer water or heat transfer fluid between the collector and the storage tank) low-pressure systems [13]. This includes vacuum tube collectors and flat plate systems. Both direct and indirect systems can be installed with this programme. With the direct system, water from the main household water supply is circulated between the collector and storage tank, and the water is heated directly without transfer fluids, whereas the indirect system uses non-toxic antifreeze in the collector. All low-pressure SWHs done under the SBSA PoA must comply with the SABS Standard Specifications for SWH systems SANS 6211-1:2003, SANS 151-2009 and SANS 1307: 2003.

financial fundaMentals deRiVed fRoM cdM PRoGRaMMe (case study)The amounts and calculations are based on confidential informa-tion obtained from Standard Bank South Africa and Tasol. The figures have been derived from actual projects that have been or are currently being implemented in South Africa. For purposes of this study a sample size of 3 500 units was used, based on information obtained from Sinclair [17]. CERs are predominantly traded in Europe. For purposes of this study all amounts will be given in South African Rand. The currency exchange rate used was quoted on Tuesday, 6 November 2012 and is therefore subject to change depending on the date. The exchange rate (ZAR/EUR) used was 11.16 [18]. The Rand Euro exchange rate will have an effect on the financial viability of the CDM programmes due to its changing value. This will have either a positive or a negative effect on the financial viability of the CDM programme. The project duration as indicated in the CPA was pegged at 10 years. The 10 years is based on the average lifespan of an SABS-approved 110l low-pressure solar water heater [13].

The capital costs involved in the implementation of a CPA are the registration of the PoA and the purchasing of the 100l LP-SWH. The cost of registering a Programme of Activities (PoA) is approximately R1 674 000 [17]. It is estimated that this spe-cific PoA would be used on at least 15 projects in South Africa. The result is that proportionally each of the 15 PoAs will incur a registration cost of R111 600. The capital cost required to purchase and install the 110l low-pressure solar water heaters are in the order of R3 987.

Due to the ten-year project lifespan a number of operational costs are incurred. The main costs are United Nations insurance charges, annual verification fees, annual monitoring costs, and annual CME (Carbon Market Europe) fees are set out in Table 1.

Table 1: CDM operational costs [17].

no. cost description annual allowance (year 1)

1 UN insurance charges (price per CER)

R0.11

2 Annual verification fees R7 440

3 Annual monitoring costs R131 600

4 Annual CME fees R111 600

Certified Emission Reduction Credits (CERs) are 100% determined by supply and demand factors. Standard Bank PLC [13] indicated that an average 1.3041 t-CO2 would be saved per annum per LP-SWH, resulting in 1.4041 CERs per LP-SWH per year for a period of ten years. Eskom’s current rebate for a SABS-approved 110l LP-SWH is R4 240 [13].The CER values used in this financial model are derived from forecasts received from Standard Bank South Africa [17] as set out in Table 2..

standaRd bankCoordinating

Entity

inteRnational caRbonCDM qualification

eskoM

MuniciPalityhouseholds

data caPtuRinG coMPanyData capturing and monitoring

suPPlieRsInstallation, maintenance

and monitoring

Carbonrights

CPAagreement

Subsidy

Subsidyrights


Table 2: CER price forecasts [17].

year ceR estimated price (€)

ceR estimated price (R)

2012 €3,58 R39,94

2013 €2,23 R24,89

2014 €2,35 R26,23

2015 €2,45 R27,34

2016 to 2020 €3,05 R34,04

The finance costs are dependent on the origin of the finance. For the purpose of this research proposal, no finance costs were included in the financial calculations. This is because Standard Bank South Africa and SASSA, as the sole owners in South Africa with a registered CDM programme for the installation of LP-SWH on low-cost houses, are supplying the funding and operation of the CDM programmes through shareholder equity and potential surplus funds derived from the respective CDM programmes. The supposed profits derived from the CDM programmes provide SBSA and SASSA with a return on their equity.

Furthermore, allowance must be made for replacement costs of broken units. It was estimated that 10% of all units will have to be replaced on an annual basis, at a capital costs for a 110l LP-SWH of R3 987. All abovementioned costs are current and need to be adjusted annually to compensate for inflation. Due to the future uncertainties, our current inflation rate of 5.5% [19] was used across the financial model. For the purpose of this model, a discount rate equal to the current prime interest rate of 8.5% was used.

The final model includes as costs the initial costs (CPA registra-tion and installation of LP-SWH), the operational costs (insurance charges, verification and monitoring costs, CME costs, and unit replacement costs) and as project income the subsidy available per unit under the NSWHP and the income from trading of CERs.

Figure 8: Case study cash flow and summary.

From the figures illustrated in Figure 8 it is clear that in the cur-rent depressed carbon market the CDM is unable to fund both the capital and operational costs required for the installation and maintenance of low-pressure solar water heaters in the low-cost housing market of South Africa. With the current low CER prices, it would not be possible to implement a financially viable CPA unless the programme developer is also the manufacturer of the LP-SWH and is able to manufacture it at significantly lower prices than used in this financial model.

To determine a set of conditions that would support the imple-mentation of a viable CDM programme, a number of alternative scenarios were considered based on variability in the main factors influencing the financial viability of the CDM programme. These factors are:

• CER prices as determined by international market conditions and the prevailing exchange rates at the time of trading cost per LP-SWH unit; and

• The capital cost of low pressure SWH.

To create scenarios in which the minimum conditions can be determined for a financially viable CDM programme, a set of financial viability requirements must first be set. Cloete [20] suggests that investors prefer the Profitability Index (PI) in some instances so as to compare similar investments. The Profitability Index is calculated by dividing the present value of cash flow by the initial investment cost. Due to the nature of the financial model (cash flow) the PI will be used to determine the set of the minimum required conditions. For the purpose of this study a minimum PI of 1.15 has been set to determine the minimum conditions for a financially viable CDM programme. A PI of 1.0 merely provides the investor with a return that is equal to his initial investment. All ratios below 1.0 provide a negative return. In the first scenario, all costs and inputs remain the same as illustrated in the above except for the CER inputs, which were spread across a range from R50 to R150. The purpose of the exercise was to determine the minimum price per CER to provide a PI of 1.15. Figure 9 illustrates the adjusted cash flow and summary.

Figure 9: Scenario 1 cash flow and summary.

Based on the above calculations a minimum price of R150 per CER is required to produce a Profitability Index of 1.15. This figure is highly unlikely in light of historical CER prices, which peaked at approximately R140 (with the current exchange rate) per CER in mid-2010 [17]. In the next scenario only the purchase price for a 100l LP-SWH was adjusted. The other inputs remained the same as per the original case study. Four variations were tested to obtain a Profitability Index of 1.15 or higher. The results are described in Figure 10.

description totals 2012 2013 - 2017 2018 - 2022

estimated Project costs

Initial Costs - R 14,066,100 - R 14,066,100 R 0 R 0

Operational Costs & Finance Cost

- R 5,558,146 - R 251,149 - R 2,300,429 - R 3,006,568

total estimated costs per annum

- R 19,624,246 - R 14,317,249 - R 2,300,429 - R 3,006,568

total estimatedincome per annum

R 16,468,005 R 15,022,323 R 113,597 R 119,709

cash flow per annum - R 3,156,241 R 705,073 - R 2,186,832 - R 2,886,859

accumulated cash flow

- R 3,156,241 R 705,073 - R 1,481,759 - R 4,368,617




Operational Costs & Finance Cost

- R 5,558,146 - R 251,149 - R 2,300,429 - R 3,006,568

total estimated costs per annum

- R 19,624,246 - R 14,317,249 - R 2,300,429 - R 3,006,568

total estimatedincome per annum

R 22,371,481 R 15,524,680 R 684,680 R 684,680

cash flow per annum R 2,747,235 R 1,207,431 - R 1,615,748 - R 2,321,888


R 2,747,235 R 1,207,431 - R 408,318 - R 2,730,206

summary forecast prices

Estimated Project Costs

Estimated Project Income

Project Profit / (Loss)

NPV

PI

- R 19,624,246

R 16,468,005

- R 3,156,241

- R 3,467,924

0.76

summary forecast prices ceR @ R 50 ceR @ R 100 ceR @ R 150




NPV

PI

- R 19,624,246

R 16,468,005

- R 3,156,241

- R 1,592,336

0.76

- R 19,624,246

R 17,350,494

- R 2,273,752

- R 1,023,972

0.93

- R 19,624,246

R 19,860,987

R 236,741

R 566,536

1.04

- R 19,624,246

R 22,371,481

R 2,747,235

R 2,157,045

1.15


Figure 10: Scenario 2 cash flow and summary.

Based on the above-illustrated cash flow a discount rate of 25% would be required to obtain a PI that is equal or better than the minimum of 1.15. Neither of the two scenarios illustrated above is in itself a viable option. A combination of the two scenarios should deliver the required Profitability Index. Four scenarios were tested to determine whether an acceptable combination could be formed to deliver the required PI. These are described in Table 3.

Table 3: Summary of scenarios.

discount on lP-sWh 5% 10% 15% 15%

ceR price R50 R50 R50 R80

The outcome of the four combinations are summarised in Figure 11. From this illustrated cash flow it is clear that only the fourth combination, 15% discount on the LP-SWH (@ R3 389 each) and CER price of R80, could deliver the required Profitability Index of 1.15.

Figure 11: Cash flow and summary of four scenarios.

suMMaRy and conclusionThis study set out to determine whether the Clean Development Mechanism could either fund in its entirety or assist with the funding of sustainable green technologies in the low-cost housing market of South Africa. It investigated two CDM programmes, namely the SASSA Low-Pressure Solar Water Heating Programme and the Standard Bank Low-Pressure Solar Water Heating Pro-gramme for South Africa. Currently it is believed that the Clean Development Mechanism, as one of the Kyoto Protocol’s flexible three mechanisms, cannot fund the installation of 110l LP-SWH in low-cost housing in South Africa. The current low CER prices do not a create sufficient revenue stream to fund the installation and operation of a CDM project. For a CDM programme to be financially viable the CER prices should be at levels above R80 each and the price per LP-SWH should be less than R3 388.

The CDM has the potential to assist with the funding of LP-SWH for low-cost housing in South Africa and so assist with the provision of a basic service such as safe hot water without placing an unnecessary burden on the environment by producing greenhouse gases. It is highly unlikely that the CDM will ever be in a position to fund LP-SWH in its entirety, but its supportive role to subsidies such as the ESKOM rebate system is undeniable. Other options to increase the fundability of LP-SWH is to either increase the value of the ESKOM rebates, or to attempt to obtain the LP-SWH at a lower price and finally, attempt to implement a system whereby the beneficiary should pay a monthly service levy to the holder of the CDM programme.

RefeRences[1] Winkler, H., Davidson,O, Kenny, A, Prasad, G., Nkomo, J.,

Sparks,D., Howells, M. and Alfstad, T. (2006). Energy poli-cies for sustainable development in South Africa. Energy Research Centre. University of Cape Town, South Africa.

[2] Tait, L & Winkler, H. (2012). Estimating greenhouse gas emissions associated with achieving universal access to electricity in South Africa. Energy Research Centre, Uni-versity of Cape Town.




Operational Costs & Fi-nance Cost

- R 5,273,820 - R 251,149 - R 2,177,181 - R 2,845,489

total esti-mated costs per annum

- R 17,246,745 - R 12,224,074 - R 2,177,181 - R 2,845,489

total esti-matedincome per annum

R 18,673,950 R 15,022,323 R 365,163 R 365,163

cash flow per annum

R 1,427,205 R 2,798,248 - R 1,812,019 - R 2,480,326


R 1,427,205 R 2,798,248 R 986,230 - R 1,494,097




Operational Costs & Finance Cost - R 5,084,269 - R 251,149 - R 2,095,017 - R 2,738,103

total estimated costs per annum - R 15,661,744 - R 10,828,624 - R 2,095,017 - R 2,738,103

total estimated income per annum R 16,468,005 R 15,022,323 R 668,845 R 776,838

cash flow per annum R 806,262 R 4,193,698 - R 1,426,172 - R 1,961,265

accumulated cash flow R 808,262 R 4,193,698 R 2,767,526 R 806,262

summary forecast prices lP-sWh @ 5% discount

lP-sWh @ 10% dis-count

lP-sWh @ 15% discount



Price per PL-SWH R 3,987 R 3,788 R 3,588 R 3,389 R 3,190 R 2,990




NPV

PI

- R 19,624,246

R 16,468,005

- R 3,156,241

- R 1,592,336

0.89

- R 18,831,746

R 16,468,005

- R 2,363,740

- R 893,977

0.92

- R 18,039,245

R 16,468,005

- R 1,571,240

- R 195,617

0.98

- R 17,246,745

R 16,468,005

- R 778,739

R 502,743

1.05

- R 16,454,244

R 16,468,005

R 13,761

R 1,201,102

1.11

- R 15,661,744

R 16,468,005

R 806,262

R 1,899,462

1.18

summary forecast prices lP-sWh @ 5% discount + ceR @ R50

lP-sWh @ 10% discount + ceR @ R50

lP-sWh @ 15% discount + ceR @ R50

lP-sWh @ 15% discount+ ceR @ R80

Price per PL-SWH R 3,987 R 3,788 R 3,588 R 3,389 R 3,389

Estimated Project CostsEstimated Project IncomeProject Profit / (Loss)NPVPI

- R 19,624,246R 16,468,005- R 3,156,241- R 1,592,336

0.89

- R 18,831,746R 17,304,590- R 1,527,156- R 367,920

0.97

- R 18,039,245R 17,304,590- R 734,656R 330,440

1.03

- R 17,246,745R 17,304,590

R 57,845R 1,028,799

1.08

- R 17,246,745R 18,673,950R 1,427,205R 1,856,896

1.15


[3] Chang, K., Lin, W., Ross, G. and Chung, K. (2011). “Dis-semination of solar water heaters in South Africa.” Journal of Energy in Southern Africa, Vol. 22 No.3: 2-7.

[4] Lumba. P. and Sebitosi, A.B. (2010). “Evaluating the impact of consumer behaviour on the performance of domestic solar water heating systems in South Africa.” Journal of Energy in Southern Africa, Vol.2 No. 1: 25-34.

[5] South Africa Department of Energy. (2013). Depart-ment of Energy 2013/14 Budget Vote Speech. Accessed 08/07/2013 from http://www.info.gov.za

[6] ESI Africa (2013) “Has the demand for solar water heat-ers in South Africa gone cold?” 26 April 2013. ESI-Africa.com. Accessed 08/07/2013 from http://www.esi-africa.com/node/16243

[7] South Africa Department of Human Settlements. (2013) Minister of Human Settlements 2013/14 Budget Speech. Accessed 08/07/2013 from http://www.info.gov.za

[8] http://www.kuyasacdm.co.za/index.php

[9] International Energy Agency. (2001). International Emis-sions Trading: From Concept to Reality. Paris: OECD.

[10] Winkler, H. (2005). Renewable energy policy in South Africa: Policy options for renewable electricity. Energy Policy, Vol 33: 27-38.

[11] Ormel, F., Sijm, J., Martens, J., & Vooght, M. (2000). Kyo-to Mechanisms. European Centre for Nature Conservation.

[12] South Africa Department of Energy (n.d.) Clean Develop-ment Mechanism. Retrieved 20/06/2012 from. http://www.energy.gov.za

[13] Standard Bank PLC. (2012). Clean Development Mecha-nism: Small Scale Programme of Activities Design Docu-ment Form. London: UNFCC.

[14] Tucker, C. and Gore, S. (2008, July 8). The future of carbon trading in South Africa. Retrieved July 22, 2012, from http://www.bowman.co.za/News-Blog/Blog/The-future-of-carbon-trading-in-South-Africa-by-Claire-Tucker-Sandra-Gore

[15] Labatt, S., & White, R. (2007). Carbon Finance: The Financial Implications of Climate Change. New Yersey, United States of America: Wiley.

[16] Chesteney, N. (2012). POLL- Analyst cut U.N carbon price forecast for H2. Pointcarbon.com. Retrieved 04/09/2012 from http://www.pointcarbon.com.

[17] Sinclair, G. (2012, September 27).Head of Carbon Sale and Trading: Standard Bank. (Personal Interview T. d. Plessis, Interviewer)

[18] Fin24. (2012). Fin 24 Markets. Retrieved 11/6/2012, from http://www.fin24.com/markets/

[19] Liberta. (2012). Liberta Inflation Rate in South Africa. Re-trieved November 6, 2012, from http://liberta.co.za/blog/cpi-inflation-rate-in-south-africa-current-and-historical/

[20] Cloete, C. (2005). Property Finance in South Africa. Pre-toria: South African Property Education Trust.

ADVISORY BOARD

Prof AddulRashis bin Abdul AzizUniversitiSains – Malaysia

DrAyodejiAiyetanFederal University of Technology – Nigeria

Dr Nina BakerUniversity of Strathclyde – Scotland

Prof Pauloa Jorge da Silva BartolaPolytechnic Institute of Leria– Portugal

Prof David BoydBirmingham City University – U.K.

Prof Chris CloeteUniversity of Pretoria – South Africa

Dr Daniel ChanHong Kong Polytechnic University – Hong Kong China

Dr Nicholas ChilesheUniversity of South Australia – Australia

Prof Derek Clements-CroomeUniversity of Reading – U.K.

Prof Nicola CostantinoPolytechnico di Bari – Italy

Dr David EdwardsBirmingham City University – U.K.

Prof Charles EgbuGlasgow Caledonian University – U.K.

Prof Stephen EmmittTechnical University of Denmark – Denmark

Dr Jane EnglishUniversity of Cape Town – South Africa

Dr Peter ErkelensEindhoven University of Technology – Netherlands

Dr Vicente GonzalezUniversity of Auckland – New Zealand

Dr Mohammad HassanainKing Fahd University of Petroleum and Minerals – Saudi Arabia

Prof Theo C HauptPinnacle Research and Development Solutions – South Africa

Dr Benedict IlozorEast Michigan University – U.S.A.

Dr Mohamed IssaUniversity of Manitoba – Canada

DrZulhabri IsmailUniversitiTeknologi MARA – Malaysia

Dr Dean KashiwagiArizona State University – U.S.A.

Dr Geraldine KikwasiArdhi University – Tanzania

Dr Robert KongNanyang Technological University– Singapore

Dr Helen LingardRoyal Melbourne Institute of Technology – Australia

Prof Kerry LondonUniversity of Newcastle – Australia

Dr Peter LoveEdith Cowan University – Australia

Prof Tinus MaritzUniversity of Pretoria – South Africa

Prof MartonMarosszekyUniversity of New South Wales– Australia

DrHendrik MarxUniversity of the Free State – South Africa

Dr Sylvester MashambaNational Council of Construction– Zambia

Dr Rodney MilfordConstruction Industry Development Board – South Africa

Dr Chris MonsonMississippi State University – U.S.A.

Prof RonieNavonNational Building Research Institute – Israel

DrAyman Ahmed Ezzat OthmanBritish University in Egypt – Egypt

Prof Ravi SrinathPereraNorthumbria University – U.K.

Prof Low Sui PhengNational University of Singapore – Singapore

Prof Stephen OgunlanaAsian Institute of Technology – Thailand

Dr Rufus Ogunsemixxxx – Nigeria

Dr Adebayo OladapoUniversity of Central Lancashire – U.K.

Dr Rahul RalegaonkarVNIT – India

Prof Begum SertyesilisikIstanbul Technical University – Turkey

Prof Martin SextonUniversity of Salford – U.K.

Prof Winston ShakantuNelson Mandela Metropolitan University – South Africa

Dr Willy SherUniversity of Newcastle – Australia

Dr Gary SmithNorth Dakota State University – U.S.A.

Dr Ai Lin TeoNational University of Singapore – Singapore

Dr WilcoTijhuisUniversity of Twente – Netherlands

Dr John TookeyAuckland University of Technology – New Zealand

Prof Cristina TroisUniversity of KwaZulu-Natal – South Africa

Dr SenthilkumarVentatachalamUniversity of Witwatersrand – South Africa


FROM THE PRESIDENT’S PEN


This issue of the Journal of Construction Volume 6 Issue 1 is the first of 2013. As President of the Association of Schools of Construction South-ern Africa (ASOCSA) it is my honour to address you once again.

By all reports, 2013 will be a better year for our sector although the margins are still very tight. Since the debacle of the American Sub-prime though, the sector is looking up as far as volume of work is concerned.

Our new partnership with PPC has given us a breath of fresh air as we send you this PPC sponsored issue free of charge once again.

ASOCSA held a successful Education Workshop in March 2013 at Belmont Square in Cape Town. This workshop focused on alternative methodologies in construction education and was attended by a range of educators including the Universities of Witwatersrand, KwaZulu-Natal, Cape Town, Pretoria and Johannesburg.

Our 7th Built Environment Conference (BEC) to be held at Belmont Square the Head Quarters of the Master Builders Association Western Cape is upon us. This 7th BEC is proudly brought to you by ASOCSA with PPC being our main sponsor. ASOCSA is also very proud to announce that PPC has joined with ASOCSA in bringing Universities around the country into a partnership to offer Cement and Concrete Courses.

As stated by the Editor, the range of papers that are included should be of interest to you the reader and we hope will have practical application as well.

I am grateful to Prof. T C Haupt who has taken over the fulltime position as Editor of JoC. Prof. Haupt has been an ASOCSA stalwart since our founding eight years ago. I also wish to thank another stalwart Prof. Hendrik Marx from the University of the Free State for his stellar work as Honorary Treasurer of ASOCSA for all these years. Prof. Marx has stepped down as he has accepted a position to start a new programme in Agricultural and Environmental Engineering at the UFS. All at ASOCSA wish him God Speed in this new venture.

Ferdi

F C FesterPresidentASOCSAJohannesburgJuly 2013

ISSN 1994 - 7402

July 2013

On the Department of Higher Education list of approved journals