It may be 20 degrees hotter but the problems of South Africa's construction industry mirror those of the UK, reckons Denis Lillie in his latest report from Cape Town
Some years ago the ANC, in a brave and commendable initiative, promised to provide squatter camps with power and running water. This meant each dwelling would be provided with at least a single power socket and water tap. This is being rolled out. The increased demand for power alongside the hot weather and fires on the highlands has created an interesting problem for Eskom, the main provider of power to South Africa: it seems to be in denial.
The general view here is that for various political and commercial reasons, there will not be enough power to feed an ever-hungry nation. Admittedly one of the nuclear plants in the Western Cape is down due to a maintenance error that caused the original outage, but there are no spare parts and Cape Town's citizens can now look forward to a winter of power cuts to save energy.
The reaction here to this news is fascinating. Shops have sold out of generators, gas lamps, stoves and paraffin. Both a siege mentality and an interest in gas appliances have developed. Interestingly, the gas providers have hiked up prices by up to 30%.
The effect this is having on industry in general is sad, but more so for the construction industry, which can ground to a halt on power cut days. Production has slowed and is likely to continue to do so throughout the winter.
This has created an interesting dilemma: Are the 100,000 South Africans whose application to return to the country still as keen to return with the worries of power cuts.
The Sunday Times, the national Sunday newspaper over here, this week featured in its employment section no fewer than 10 sizeable adverts for firms looking to recruit South African QSs, engineers, PMs, architects and construction specialists. All of these adverts were paid for by overseas firms looking to entice people to work in Australia, Dubai, the US and Europe. Bechtel, Nuttals and Pierse Contracting are among numerous UK companies looking to recruit for positions in the UK. Noticeably many of the positions being advertised were from medium size UK QS firms looking to fill roles.
So, how does this work? There must be a secret to unlocking this puzzle. I am aware that the HR director of South Africa's largest contractor is currently in London looking to recruit South Africans and others to return home. Should HR directors network with each other? It would save much travel and recruitment costs and think of the savings on work permit and visa applications.
All of the above throws a shadow on the host nation of the 2010 World Cup. I'm currently in talks with Durban and Cape Town on their stadia and infrastructure requirements. They are behind on the programme, tenders are not expected out until the end of 2006 with a completion and handover by the end of 2008 to allow the real preparations for hosting to be put in place. There is a visible stiffening of necks when Wembley and Multiplex are mentioned. The Brits are here in various consortia. Rumours of HOK Sport, Arup, Davis Langdon, Hyder abound the market place.
There is a visible stiffening of necks when Wembley and Multiplex are mentioned
A further spanner in the works was announced recently by Sentech, which is the signal carrier for broadcasting the event. It is, of course, holding the government to ransom, saying it is unable to provide high definition or digital signals in time for 2010 unless the government provides funds of R3.6bn (£327.16m).
So, where does this leave us? Power cuts, no TV and a professional services meltdown?
Let me tell you something about South Africans. They are resilient, determined and above all thrive on initiative and youth.
I have small examples. I have been managing a project involving the refurbishment of a luxury residence for an overseas investor. The use of material and recycling has astounded me.
Many of the workers travel in from Kyalitshsa, which is an informal settlement close to the airport. Many of you will recognise the type of dwellings as they form part of what is now recognised as a shack - or in your understanding an old, leaky, garden shed. The basic construction of the shack is recycled timber and packing crates. They are built with less than one metre between them. Cooking is normally done over a propane or paraffin stove. Some estimated 350,000 people live in this settlement in this manner.
A fire broke out during Christmas 2005, some people lost their lives and many lost their homes and possessions. There is no insurance, rebuilding is not to be expected by the government. It was New Orleans on a smaller scale.
The workers on my site took to total recycling. The old garage roof was due to be replaced, so it was dismantled with care, taken away and reassembled as a home. Packing crates were taken as walls, beds or chairs while cardboard boxes were taken flat packed to be used as insulation for the walls or even as flooring or bedding. I have never seen such a clean building site. Even empty plastic bottles were also taken as they could hold precious water.
I am not suggesting that iconic stadiums for Durban or Cape Town will resemble garden sheds, but you will find that South Africans make a plan and they will succeed in overcoming difficulty. There is great pride in the eco-friendly and recycled materials used in the new BP African HQ here in Cape Town. They recognise the importance of The World Cup and their homegrown talent. I see fight and great drive to succeed looming.
Source
QS News
Postscript
Denis Lillie is managing partner at DLP Advisory and Management Services
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