`

5th POST GRADUATE CONFERENCE ON CONSTRUCTION INDUSTRY DEVELOPMENT

Bloemfontein, South Africa 16 18 March 2008

Copyright 2006 by Construction Industry Development Board, PO Box 2107, Brooklyn Square, Pretoria, 0075, South Africa. All rights reserved. This publication, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any other information storage and retrieval systems now or to be invented, without permission from the copyright owners, the Construction Industry Development Board (cidb). Permission is granted to quote from the PROCEEDINGS OF THE 5th POST GRADUATE CONFERENCE ON CONSTRUCTION INDUSTRY DEVELOPMENT with the customary acknowledgement of the source. Disclaimer While every effort is made to ensure accuracy in this publication, the publishers and the editors make no representation, express or implied, with regard to the accuracy of the information contained in these proceedings and cannot accept any legal responsibility or liability in whole or in part for errors or omissions that may be made. The views expressed in this publication are not necessarily those of the publishers and editors, neither do they endorse or guarantee any claims made by the authors of the papers in these proceedings. The reader should therefore verify the applicability of the information or particular situations and check the reference prior to any reliance thereupon. Published by the Construction Industry Development Board (cidb), PO Box 2107, Brooklyn Square, 0075, South Africa. www.cidb.org.za

ISBN No. 0-86886-758-6 - (CD ROM) Proceedings of the 5th Post Graduate cidb Conference, Bloemfontein 16-18 March 2008.

PREFACE
This cidb Post Graduate Conference series is now recognized as an important event in South Africa, encouraging active debate amongst researchers, students and industry. South Africa has entered a period of sustained growth in infrastructure delivery, driven by increasing public and private sector investment. South Africas accelerated and shared growth initiative (ASGISA) recognizes the central role of infrastructure to our growing economy and a better life for all South Africans. The theme of this years conference construction as a cornerstone for economic growth and development is therefore particularly relevant. Hosted by the Construction Industry Development Board (cidb) and the University of the Free State, this 5th cidb Post Graduate Conference brings together representatives from a large number of tertiary institutions in South Africa. The papers presented at this conference cover a wide range of topics which are relevant to the development of our construction industry. Active conference debate on research findings is important to the development of our industry. So too are the opportunities for the development of the researchers and other participants at this conference. such as these play an important role in the professional development of the our industry. growth and growth and Conferences skills base in

It is hoped that participants and delegates will leave the conference invigorated and further inspired to contribute to the body of knowledge as well as to create a research culture and network that will help to transform the construction industry in its pivotal role of socio-economic development in South Africa and on the continent. These proceedings expand the body of knowledge and provide valuable reference material for academics, researchers, students and practitioners. They also provide pointers towards future research for construction industry development. The conference owes much to the hard work and commitment of the organising committee and I thank Prof Basie Verster, Dr Hendrik Marx, Mrs Elza van der Walt and Mrs Carol Winder of the University of the Free State. Thanks also go to Mr Pumelele Qongqo and Mr Sihle Dlungwana of the cidb. Gratitude is extended to the conference sponsor, Wiehahn (Pty) Ltd, for their valuable support. We gratefully acknowledge as well the important role played by both international and national members of the Scientific and Technical Committee without whose voluntary assistance in reviewing the papers we would not have had a conference.

Ronnie Khoza CEO, cidb Pretoria, March 2008

PEER REVIEW PROCESS

In order to maintain and ensure the highest quality in these proceedings, a two-stage review process was followed. In terms of this process, each abstract received was considered in terms of: relevance to the conference theme and objectives; originality of material; academic rigour; contribution to knowledge; and research methodology.

Authors whose abstracts were accepted were invited to submit their full papers, with initial proposals for improvement of papers. These papers were blind reviewed by not less than two acknowledged experts at least in terms of: relevance to the conference them and objectives; originality of material; academic rigour; contribution to knowledge; research methodology; empirical research findings; and critical current literature review.

There were 11 international and 23 local referees involved. Authors whose papers were accepted after review were provided with anonymous reviewers comments and requested to submit their revised papers. The editors of the proceedings finally reviewed these papers. Of the 66 original abstracts, 38 papers were finally accepted for presentation at the conference and inclusion in these proceedings.

Scientific and Technical Committee

Prof A Akintoye, Glasgow-Caledonian University, UK Mr S Brown, Royal Institute of Chartered Surveyors, UK D Dr N Chileshe, Sheffield Hallam University, UK P Chynoweth, University of Salford, UK Dr OJ Ebohon, De Montfort University, Leicester, UK Prof M Hoxley, Nottingham Trent University, UK Mr A Kerin, ZPM Slovenian Project Management Association, Slovenia Dr J Mbachu, Massey University, Wellington, New Zealand Prof G Ofori, National University of Singapore, Singapore M Oladapo, Murty International Ltd, Nigeria Dr E A L Teo, National University of Singapore, Singapore P Prof Y Ballim, University of the Witwatersrand, SA Prof F Buys, Nelson Mandela Metropolitan University, SA Dr MM Campbell, University of the Free State, SA Prof K S Cattell, University of Cape Town, SA Prof C Cloete, University of Pretoria, SA Dr A Geertsema, Tshwane University of Technology, SA Dr R Haldenwang, Cape Peninsula University of Technology, SA Dr T Haupt, Cape Peninsula University of Technology, SA Prof A Hauptfleisch, University of the Free State, SA Prof M Huchzermeyer, University of Witwatersrand, SA Dr A Karam, University of the Witwatersrand, SA Dr HJ Marx, University of the Free State, SA Dr R Milford, Construction Industry Development Board, SA Dr J Ndambuki, Vaal University of Technology, SA Dr D Root, University of Cape Town, SA Pr Dr W Shakantu, University of Cape Town, SA Prof P Slatter, Cape Peninsula University of Technology, SA Prof JJ Sten, University of the Free State, SA

Prof G van Zijl, University of Stellenbosch, SA Prof JE van Zyl, University of Johannesburg, SA Prof JJP Verster, University of the Free State, SA Prof F Viruly, University of the Witwatersrand, SA Prof J A Wium, University of Stellenbosch, SA

The Construction Industry Development Board

Mandate The Construction Industry Development Board is a Schedule3a public entity. It is committed to the development objectives defined in the CIDB Act (Act 38 of 2000) The cidb is a knowledge based organisation with a mandate to: * Provide strategic leadership to construction industry stake holders and develop effective partnerships for growth, reform and improvement of the construction sector; * Promote sustainable growth of the construction industry and the sustainable participation of the emerging sector in the industry; * Promote improved performance and best practice of public and private sector clients, contractors and other participants in the construction delivery process; * Promote procurement and delivery management, the uniform application of policy throughout all spheres of government, uniform and ethical standards including a code of conduct; * Establish the registration of projects and contractors and other suppliers, to systematically regulate and monitor the performance of the industry and its stake holders for sustainable growth, delivery and empowerment and for improved performance and capability. CIDB Act 38 of 2000: The act mandates the Board to ....promote appropriate research... and to develop, promote and update a construction industry research agenda that defines national development priorities

For further information on the cidb visit the website on www.cidb.org.za, telephone 012 482 7200 or email cidb@cidb.org.za

Contents
Health Safety and Environment
The Economic And Social Impacts Of Site Accidents On The South African Society Mthalane D, Othman AAE and Pearl, RG.. Client Commitment And Attitude To Construction Health And Safety In Botswana Musonda I. and Smallwood J. Improving Site Management Process Through ICT Ozumba AOU and Shakantu WM .... A Literature Review On The Application Of Titanium Dioxide Reactive Surfaces On Urban Infrastructure For Depolluting And Self-Cleaning Applications Osburn, L .. The Impact Of HIV/AIDS On Skills Availability In South African Coal Mines Kyereh KT and Hoffman DJ ...

1-10

11-21 22-31

32-42

43-52

Empowerment and Emerging Contractors

The Role Of Total Quality Management As A Key Intervention In Small Construction Contractor Capacity Building In South Africa Hauptfleisch, A. C.. Critical Success Factors For Small And Medium Sized Contractors In North West Province, South Africa Makgati Jacky Phaladi and Wellington Didibhuku Thwala .... Unfinished Business: Current Challenges And Problems Facing Small And Medium Size Contractors In Swaziland Mpendulo Mvubu and Wellington Didibhuku Thwala . Financial Needs Of Small And Medium Scale Contractors In South Africa Sithembiso Ndlovu and Wellington Didibhuku Thwala .. Uncovering The Origins Of Variation Orders Ndihokubwayo R and Haupt TC ..

53-63

64-71

72-79

80- 87 88- 96

Best Practice, Quality and Productivity Quality Management In Construction Project Design And Management Conradie D.C.U and Roux E ... 97- 107 Defects In The Construction Industry-Then And Now Zietsman R .. Construction Industry Standardisation And Effective Communication Kotz BG, Verster JJP and Berry FH . How Can Information And Communication Technology Reduce Inefficiencies In The Construction Industry? Zietsman E .. Effectiveness Of Project Debriefing Procedures : A Case Study Of The KZN Region Of South Africa Mpanza, N, Mututo, J G and Pearl, R G Construction Project Management Motivation As A Tool To Improve Productivity On The Construction Site Wellington Didibhuku Thwala and Lydia Nthabiseng Monese..

108-114

115-124

125-128

129-138

139-145

Investigating The Contractors Risk Sources Associated With The Principal Building Agreement In South Africa Harinarain N, Othman AAE and Pearl, RG .... 146-157 The Benefits Of Using Constructablity During The Design Process Motsa N, Oladapo AA and Othman AAE ..

158-167

Effective And Efficient Project Management On Government Projects Samuel R . 168-179 Delay Analysis And Its Potential To Reduce Situations Resulting In Claims And Losses Marais D and Martin L ... Human Resources, Decision Masking and Risk The Viability Of Corridor Development Between Bloemfontein And Welkom Campbell MM and Meades EE . A Need For A Transformation Strategy For Facilities Management In The Public Sector Tonono E and Buys F ...

180-188

189-198

199-208

A Practical Approach To Calculate Acceleration Costs On Construction Projects In South Africa Maritz MJ and Schutte AP Criteria For Outsourcing Of Facilities Management Functions By The United Nations Charles, KA and Cloete, CE ...

209-221

222-230

Investigating A Tool For Modelling The Supply side Profile Of South Africas Built Environment Professionals (BEPs) Matyila N.A and Malete G .. 231-248 Procurement Strategies South African Public Private Partnership (PPP) Projects: A Systemic Model For Planning And Implementation Nyagwachi JN and Smallwood JJ ... 249-260 Partnering Within The Design Team Van der Merwe FJ and Basson GAJ .. Factors Constraining The Implementation Of Public Private Partnerships In The Electricity Sector In Uganda Akampurira, E., Root, D. and Shakantu, S. Assessing Supply And Demand For Emerging Contractor Development Programmes P.N. Qongqo and R.V. Milford .. Education and Training Influential Elements Of Curriculum Development For Masters Real Estate Education In South Africa: A Literature Research Chikafalimani SHP and Cloete CE ..... An Investigation Into Informal Craft Skilling In The Kenyan And South African Construction Sectors Wachira N, Root D, Bowen PA and Olima W ... Guideline For Improved Relationship Between Learner Contractor And Site Supervisors In The Expanded Public Works Programmes Contractor Learnership Programme Egbeonu E and McCutcheon RT A Model Towards An Enhanced Tertiary Built Environment Education Manthe, M.F. and Smallwood, J.J. . 261-270

271-280

281-290

291-299

300-308

309-316

317-326

Affordable Housing and Sustainable Construction Open Standard Building In South Africa: New Concepts, Strategies And Technologies Van Wyk LV1 . 327-336 Assessing The Sustainability Performance Of The 2010 Fifa World Cup Stadia Using The Sustainable Building Assessment Tool (SBAT) For Stadia Sebake TN and Gibberd JT ..... 337-346 The Peoples Housing Process (PHP) Scheme In Gauteng Province Of South Africa- Lessons Learnt Ogunfiditimi O and Thwala WD ........ The Process Of Testing Communitys Acceptability Of High Quality Earth Constructed Building Methods As A Means To Support Local Economic Development Steyn, JJ .. ...

347-353

354-361

THE ECONOMIC AND SOCIAL IMPACTS OF SITE ACCIDENTS ON THE SOUTH AFRICAN SOCIETY
Mthalane D 1, Othman AAE 2 and Pearl, RG 3
School of Civil Engineering, Surveying and Construction, Faculty of Engineering, University of KwaZulu-Natal, Durban, South Africa, 1 203516840@ukzn.ac.za, 2 Othman@ukzn.ac.za and 3 Pearl@ukzn.ac.za Tel. No. 01326022687.

ABSTRACT Purpose of this paper - This paper aims to identify and quantify the economic and social impacts of site accidents on the South African society. Methodology/Scope Literature review is used to identify the different types and causes of site accidents as well as their economic and social impacts. Survey Questionnaire, is used to confirm the identified impacts, add new ones that reflect the South African context and quantify the social and economical impacts of site accidents on the construction company. Interviews carried out with affected families to identify the social and economical impacts of site accidents on their life and activities. Findings - 40% of the causes of site accidents are resulted from falling of people due to their negligence or not adhering to health and safety regulations. The decrease in standard of living and the loss of productivity represent the highest economic impacts on the affected families and construction companies respectively. The loss/injury of the family provider and the depression of employees and work fellows represent the highest social impacts on the families and construction companies respectively. Practical implications - The government should enforce the current H&S procedures and take active actions to ensure the applications of H&S procedures on site. Construction firms have to follow the H&S procedures, train all their employees, be stricter to individuals who violate H&S rules, appoint safety representatives to make safety a major priority in the construction site. Employees have to adhere and respect all H&S rules placed on site, practice safe construction measures, wear required personal protective equipment, be aware of their surroundings and report any unsafe activities to management. Value - Although the area of H&S is well researched, little attention has been paid to study the economic and social impacts of site accidents on the South African Society. It provides a real contribution to the original body of knowledge through filling the gap in this area of research. The research presents a set of recommendations for the government, construction companies and employees as an approach to improve the image of H&S in the South African construction industry. Keywords: economic and social impacts, site accidents, South African society, health and safety procedures. 1 INTRODUCTION The construction industry is an important player in the economy of South Africa. It contributes 35% of the total gross domestic fixed investment and employs approximately 240,000 employees. The South African government is the single biggest construction client, making up between 40-50 % of the entire construction expenditure (Department of Public Works, 2000). Despite its pivotal role in social and
1

economic development, the construction industry is considered a risky business and poses more dangers than any other industry (Brace and Gibb, 2005). While Health and Safety (H&S) are the responsibility of every one at work (Davies and Tomasin, 1990), construction companies have to be aware that they are responsible for managing and improving issues related to H&S on construction sites. This is because construction, to a large extent, is a labour intensive industry and depends on the availability and wellbeing of workers to complete current and future projects (Haupt, 2003, Massyn et al., 2005). Literature review showed that the topic of H&S has been covered from different perspectives. For instance, Hubbard (1986) focused on the relevance of construction safety professions in the construction industry and what these professionals can do to reduce site accidents. In addition, Abdelhamid and Everett (1998), Everret and Pathan (1998) and Hinze, et al., (1998) identified the root causes of construction accidents and injuries. Furthermore, Bowen and Hindle (1999) investigated the problem of site accidents and its causes as well as how these accidents can best be controlled. Haupt, Smallwood and others studied many aspects of construction workers' health and safety including: the influence of design on health and safety during construction (Smallwood, 2004), performance approach to safety management (Haupt, 2003), workers compensation premium fraud, safety and health interventions, impacts of diseases such as tuberculosis and HIV/AIDS on construction workers (Haupt and Smallwood, 2003 a & b), the plight of aging construction workers (Smallwood and Haupt, 2003) as well as the occupational health and appropriate health interventions such as medical surveillance (Geminiani et al., 2005). In spite of the valuable contribution of these studies, the topic of the economic and social impacts of site accidents on the South African society has received little attention in construction literature. In an endeavour to overcome the limitation of research in this important area and to provide valuable input to the original body of knowledge, this paper aims to identify and quantify the economic and social impacts of site accidents on the South African society. 2 RESEARCH METHODOLOGY AND SAMPLING A research methodology, consisted of literature review, interviews and questionnaires, is designed to achieve the abovementioned aim. Firstly, literature review is used to identify the different types and causes of site accidents as well as their economic and social impacts. Secondly, in order to investigate the perspective of construction companies, survey questionnaires were developed and sent to directors of construction companies to confirm the identified impacts, add new ones that reflect the South African context and quantify the social and economical impact of site accidents on the construction companies. Finally, as the most concerned part, interviews were conducted with families of the affected worker to identify the social and economical impacts of site accidents on their life and activities. The aim of sampling was get a representative and non-biased sample to increase the validity and reliability of collected data. The South African online yellow pages (SA Yellow Pages, 2007) were accessed to get a list of Durban based construction companies. The result was a list of 50 companies ranging from small, medium to large enterprises. This helped get a clear and well represented sample. Out of 50 questionnaires sent to construction companies, 20 were completed and returned. Because of the sensitivity and nature of this research as certain sectors of the society (i.e. affected employees and their families) have to be interviewed, the companies that replied to the questionnaires, were contacted to get information about the affected workers or his/her family. This information was collected from the records of site accidents kept in construction companies. Out of 87 affected families contacted, 20 families agreed to be interviewed. 3 DATA ANALYSIS A two-stage approach was adopted for data analysis. The first stage was simply to measure the central tendency of the interviews and questionnaires responses. The measure of central tendency was used to
2

get an overview of the typical value for each variable by calculating the mean, median and mode (Bernard, 2000). Analysis of the collected data showed close values of these measures which confirmed the quality and the homogeneity of the collected data. Secondly, since not all site accidents have the same impact on families and construction companies, a relative importance index was used to differentiate between impacts of site accidents using the formula of: RII = W / AN, Where W=weighting given to each driver by the respondents and range from 1 to 5, A= highest weight (5 in our case); and N= total number of sample (Kometa and Olomolaiye, 1997; Olomolaiye et al., 1987; Shash, 1993). The data was analysed with the aid of Microsoft Excel spreadsheet. Since there were no quantification without qualification and no statistical analysis without interpretation (Bauer and Gaskell, 2000) during the course of this research both approaches of quantitative and qualitative data analysis were employed 4 TYPES OF SITE ACCIDENTS 4.1 Minor accidents These are accidents, which yield less severe injuries. The absence from work due to this type of injury would usually be 3 days or less. Most accidents fall into this category includes stepping or striking against small objects, tools, sprains or strains. Major accidents These are injuries which result in amputations or fractures. Usually injured person who falls under this category would be absent from work for about 30 days. Major accidents include slips, trips, falling from heights, machinery and transport accidents and / or electricity accidents (Nichols, 1997). Fatalities These are deaths resulting from work injuries on site (Wikipedia, 2007).

4.2

4.3

5 CAUSES OF SITE ACCIDENTS IN CONSTRUCTION In order to investigate the economic and social impacts of site accidents on the society it is essential to identify the causes of site accidents in construction sites. The main causes of accidents are: 5.1 Falls from above Falls from above can occur from scaffolds, walkways or stairs and into shafts (from the edge of the shafts) excavations, or floor openings. This type of accident occurs because stairs were not provided with railings or scaffolds were not provided with guard rails. 5.2 Falls on the same level A fall on the same level can be caused by slipping because of poor traction of footgear on the floor. Adhesive friction is a positive grip due to the penetration of one surface into the other- usually the smaller is the sole surface, the greater is the risk of slipping. 5.3 Struck against objects Being stuck against can occur from stationary or moving objects and from falling or flying objects. The force of impact is a key factor in this type of accident as the greater the impact, there is also a greater pain felt by the person. Also most of these injuries are totally unexpected and employees have no chance to defend themselves.
3

5.4 Lifting and carrying (over-exertion) Over-exertion can result from lifting objects that are too heavy to handle without machine assistance or awkward enough to cause loss of balance. The resulting damage is most often a back injury. Overexertion can also happen from pulling, carrying or pushing objects that are too heavy (Gloss & Wardle, 1984) 5.5 Machinery Machinery accidents can occur if the equipment fails, for instance other portions of the equipment could fail such that the person becomes electrocuted. Some other machinery accidents occur where the person operating the equipment failed to follow the necessary procedures of operation. 5.6 Electricity Contact with electric current is a serious and frequent cause of workplace accidents. This could involve a broken or energized power line falling. The employee unknowingly grasps something connected to it or becomes the path to the ground and thus be electrocuted. Similarly faults in electrical equipment, especially portable tools can cause the housing to be energized. The appliance may have broken the connective or internal wiring which touches the tool. When the device is turned on, the user receives a shock, thus later resulting in an electric accident (Hammer, 1976). 5.7 Transport Non collusion accidents can occur on construction sites which could result in an accident which could be affecting the employees that were around the scene at the time. These involve vehicle overturns or if the vehicle goes out of control or if the vehicle starts or stops abruptly. Transport accidents on construction sites are often minimal as usually the speeds are often too low, for speeding to occur, which could cause an accident. 5.8 Fires and explosions There are three types of fires and explosions that could probably occur on construction sites. These are small fires, large fires and blowouts. The probability is that small fires are least dangerous and blowouts being the most severe (Gloss & Wardle, 1984). By far the largest category is falls, which include people falling or objects and material falling (this includes structure or part of a structure collapsing). Each year about 70-80% of all fatalities and 35-40% of all injuries may be attributable to falls due to negligence or not obeying health and safety rules. About 25% of all accidents that result in workers being unable to carry out their normal duties for at least 3 days are due to the incorrect manual lifting and carrying, generally of too heavy loads, which results in strain and sprain injuries. A further 10% are due to stepping on or striking against objects (i.e. stepping on protruding nails) (Davies & Tomasin, 1990). 6 IDENTIFICATION AND QUANTIFICATION OF THE ECONOMIC IMPACTS OF SITE ACCIDENTS The official statistics of site accidents do not only represent terrible human tragedies but also substantial social and economic impacts on society. The social impact of site accidents could be defined as the effect that touches the human side of the society, where the economic impact could be defined as the effect that relates to the financial aspects of the society. All society members such as employees, families, employers, economy and resources will be affected somehow by the occurrence of a site accident.

6.1 Economic impacts of site accidents on the affected family Interviews with affected families resulted in identifying the following economic impacts: (1) decrease in family income, (2) decrease in the standard of living, (3) education and schooling expenses affected, (4) increase in debts and (5) difficulty to pay bills/policies bond. Analysis of interviews showed that decrease in standard of living is ranked the highest economic impact of site accidents with (mean of 4.6, median of 4.5 and mode of 4.8 out 5 and RII of 0.85). This could be attributed the sever situation which the family faces when the provider of the family get affected. In such cases, families have to give up some of the facilities or goods they used to consume in order to cope with these situations. Decrease in family income is ranked the second economic impact with (mean of 4, median of 3.8, mode 3.9 of out of 5 and RII of 0.71) as the affected person either has to leave the job or be transferred to another place in the organisation which is normally less paid. The increase in debt was ranked the third economic impact with (mean of 3.6, median of 3.5 and mode 3.4 out of 5 and RII of 0.69). Affected families mentioned that they have to borrow money from banks in order to cover the life expenses which result in increasing debts. The other economic impacts of site accidents on families are difficulty to pay bills/policies bond and education and schooling expenses affected were ranked fourth and fifth with (mean of 3.2, median of 3 and mode of 3.1 out 5 and RII of 0.60) and (mean of 2.6, median of 2.5 and mode of 2.7 out 5 and RII of 0.57) respectively. Some of the families mentioned that they were forced to move their children to cheaper schools, where the level of education and offered facilities are less, as a way to reduce their expenditure to cope with the situation of site accidents of their breadwinner, see figure (1).

Decrease in standard of living

Decrease in family income

Increase in debts

Difficult to pay bills/ policies/ bond Education and schooling expenses affected 0 1 2 3 4 5

Figure (1) economic impacts on affected families 6.2 Economic impacts of site accidents on the construction company At the start of the 21st century, unsafe and unhealthy working conditions still take a heavy economic toll. From a business standpoint, accidents affect the bottom line or profitability of a project. Economic impacts of site accidents could have direct and indirect costs. A direct cost is defined as those costs covered by the workers compensation insurance. These may include medical costs, premiums for workers, compensation insurance, liability and property losses (Kapp et al., 2003). Indirect costs are those costs attributed to loss of productivity of the injured worker and the crew, transportation costs to the nearest medical treatment facilities and time expanded to complete various forms related to the injury (Hinze & Appelgate, 1991). Literature review and interviews identified the economic impacts of site accidents on the construction company as follows: (1) damages to plant, equipment and completed
5

work, (2) payments for settlements of injury or death claims, (3) Legal fees for defense against claims, (4) costs of rescue operations and equipment, (5) expenditures on emergency equipment, (6) loss of function and operations income, (7) slowdowns in operations while accident causes are determined and corrective action taken, (8) corrective actions to prevent re-occurrence of accident, (9) degradation of efficiency of operations because of loss of experienced and trained personnel, (10) training costs for replacements, (11) increased insurance costs, (12) loss of productivity, (13) disruptions while investigations are being carried out by the company safety department and insurers (Hammer, 1976; Davies & Tomasin, 1990), (14) medical payments (Hammer, 1976), (15) insurance premiums (Nichols, 1997; Gloss & Wardle, 1984) and (16) costs of workmans compensation insurance (Kapp et al., 2003; Gloss & Wardle, 1984; Rauner et al., 2005). Analysis of the questionnaires showed that out of all the economic impacts of site accidents on the construction company, the loss of productivity was ranked as the highest economic impact with (mean of 4.5, median of 4.4 and mode of 4.6 out 5 and RII of 0.82). 90% of the companies consider the accident as a hindrance to the performance of its employees, thus resulting in a decrease in productivity. The disruption of current work was ranked the second economic impact of site accident on constriction companies with (mean of 4.3, median of 4.2 and mode of 4.4 out 5 and RII of 0.79). The least ranked economic impact was increasing insurance costs with (mean of 2.2, median of 2.4 and mode of 2.3 out 5 and RII of 0.42). Complete list of the economic impacts is shown in table (1) and figure (2). Economic site accident Impact on construction companies Loss of productivity Disruption of current work Training costs for replacements Damages to plant, equipment, completed work Corrective actions to prevent re-occurrence of accident Degradation of efficiency Expenditures on emergency equipment Slowdowns in operations while accident causes are determined Costs of workmans compensation insurance Medical payments Insurance premiums Costs of rescue operations and equipment Loss of function and operations income Payments for settlements of injury or death claims Legal fees for defense against claims Increased insurance costs Table (1) Mean 4.5 4.3 4 3.9 3.9 3.9 3.7 3.7 3.7 3.5 3.5 3.2 3 2.6 2.4 2.2 Media n 4.4 4.2 4 4 4 3.8 3.6 3.6 3.6 3.5 3.5 3.3 3.1 2.7 2.5 2.4 Mode 4.6 4.5 4.1 4 4 3.8 3.7 3.7 3.7 3.6 3.6 3.5 3.2 2.8 2.5 2.3 RII .85 .79 .77 .76 .76 .75 .72 .70 .65 .60 .55 .53 .49 .46 .44 .42

The central tendency measures and RII for the economic impact of site accidents on the construction companies

5 4 3 2 1 0
L Tr Dis o ss ru ai of n p Da ing tion pro m cos of d u a ct c t Co ges s fo ur r ivit en y r rre to pl r ep t w ct l a ac or ive n k ac t, e em qu e t Ex i n o D pe e g n s ipm ts to e nd ra d p n Sl itur atio re t... ve ow e s n n co do w on of e t .. e f st fic . ns m s in erg ien of wo op en cy c e rk m ra ti y .. . an o s n s M co wh Co ed m i. . p ic st I n al en s s s ur p a .. Lo of ss r es anc ym . Pa of c ue e p e nt re s ym fu n o ct p e miu e i ra Le nt o m ga s fo n a tion s n lf ee r s e d o s a pe .. ttl s e f in o r d me ra tio cr ea efe nts .. se ns of e d ag i... in su a ra ins nc t.. . e co st s

Figure (2) economic impacts on construction companies 7 IDENTIFICATION AND QUANTIFICATION OF THE SOCIAL IMPACTS OF SITE ACCIDENTS Site accidents have social impacts on the worker, his/her family, employer and community as a whole. Serious accident has the potential to induce a crisis within an organization since it will initiate investigations accompanied by the possibility of criminal proceedings and ultimately project closures. The employees go through a state of shock, people feeling overwhelmed with emotions of sympathy, loss and regret and in some instances guilt, and in essence the whole organisation is thrown into chaos socially due to this accident (Nichols, 1997). During this period, psychological stress and tension grow and there is a danger organisation managers that the organisation will become consumed with accusation and blame and that the energies may be diverted away from the construction tasks at hand. There is also a danger that the organization is thrown back into the defensive retreat phase. It is here that costs arise and social impacts which are intangible in the form of damaged interpersonal relations (Loosemore, 1999). When accidents in the construction industry occur, many of the hardworking laboures can feel betrayed, frustrated and often at times overwhelmed by the lack of legal options they are presented with (Withers, 1988). 7.1 Social Impacts of site accidents on the affected family Interviews carried out with affected families identified the following social impacts of site accidents:: (1) loss/injury of family provider, (2) family depression, (3) loss of social welfare, (4) loss of worker to the community, (5) loss of the quality of life for individual workers and families. Analysis of responses showed that the loss/injury of the family provider was ranked the highest impact with (mean of 4.8, median of 4.7 and mode 4.8 out 5 and RII 0.80), where the loss of worker to the community was ranked the least social impact on the family with (mean of 1.8, median of 1.6 and mode 1.7 of out of 5 and RII of .6), see figure (3) and table (2).

Loss/ injury of family provider Loss of the quality of life Family depression Loss of social welfare Loss of worker to the community 0 1 2 3 4 5

Figure (3) social impacts on affected families

loss/injury of family provider 4.8 4.7 4.8 .80 Family depression 4.2 4.3 4.4 .75 loss of social welfares 3.6 3.5 3.4 .68 2.4 2.2 2.3 .63 loss of the quality of life for individual workers and families loss of worker to the 1.8 1.6 1.7 .60 community Table (2) the central tendency measures and RII for the social impacts of site accidents on the families

7.2 Social Impacts on the construction company Analysis of survey questionnaire showed that the social impacts on the construction company are: (1) depression of employees and work fellows, (2) loss of public confidence, (3) loss of company image, (4) loss of customer satisfaction and (5) degradation of morale. The depression of employees and work fellows was ranked the highest social impact with (mean of 4.6, median of 4.4, mode of 4.5 out of 5 and RII of 0.78). Degradation of morals was ranked the lease social impact with (mean of 2.5, median of 2.3, mode of 2.4 out of 5 and RII of 0.46).
Depression of employees and work fellows Loss of public confidence Lose of customer satisfaction

depression of employees and 4.6 4.4 4.5 .78 work fellows Loss of company image loss of public confidence 4.1 1.3 4.2 .69 Lose of customer satisfaction 3.5 3.4 3.6 .61 Degradation of morale loss of company image 2.9 2.7 2.8 .55 0 1 2 3 4 5 degradation of morale 2.5 2.3 2.4 .46 Figure (4) social impacts on construction Table (3) the central tendency measures and RII for companies the social impacts of site accidents on construction companies
8 CONCLUSIONS AND RECOMMENDATIONS Having reviewed the different types and causes of site accidents, the economic and social impacts of site accidents on the affected families and construction companies, the research may reach the following conclusions and recommendations to government, employers and employees: The construction industry has one of the highest accident rates if compared with other industries. Although there are many causes of site accidents, about 40% of the causes of site accidents are caused by falls, either by falling of people from above or falling of people from the same level. The main cause to people falling being either it is through their negligence or due to the fact

Median

Mode

Mean

Social Impacts on Construction Company

Median

Mode

Mean

Social Impacts on affected family

RII

RII

that they do not obey the correct health and safety rules like wearing the appropriate personal protective equipment at all times when working on heights. Site accidents have influential impacts on affected families and construction companies. The decrease in standard of living and the loss of productivity represent the highest ranked economic impact on the affected families and construction companies respectively. The loss/injury of the family provider and the depression of employees and work fellows represent the highest social impact on the families and construction companies respectively. The government should enforce the current health and safety procedures legislated and take active plans to ensure that all construction companies follow the health and safety procedures properly. Construction companies have to adhere to the health and safety procedures as well as train and educate their employees about health and safety procedures on site. Employers have to be much stricter to individuals who violate safety rules. Construction firms have to appoint health and safety officers to make safety a major priority in the construction site. Sub-contactors who do not have good record of health and safety should not be considered during the process of selecting sub-contractors. Employees have to adhere and respect all safety rules placed on site. All employees have to practice safe construction measures, wear required personal protective equipment on site and be aware of their surroundings. In addition, they have to report any unsafe activities to management. REFERENCES Abdelhamid, T. S. and Everett, J.G. 1998. Identifying root cause of construction accidents, Construction engineering and Management, Vol. 126, No. 1, pp. 52-60. Bauer, M. and Gaskell, G. 2000. Qualitative researching with text, image and sound. London: Sage. Bernard, H. R. 2000. Social Research Methods: Qualitative and Quantitative Approaches. London: SAGE Publications Ltd. Bowen and Hindle 1999. Customer Satisfaction: A Focus for Research and Practice in Construction. Dept of Construction economics and management, Cape Town, South Africa Brace, C.L. and Gibb, A. G.F. 2005. A health management process for the construction industry. In: Haupt, T and Smallwood, J. (Eds.) Rethinking and revitalising Construction safety, health and quality. Port Elizabeth, South Africa. Davies, V.J. and Tomasin, K. 1990. Construction safety handbook, Thomas Telford, London Department of Public works. 2000. [On line] available from: www.publicworks.gov. Everret and Pathan 1998. Ergonomics, health, and safety in construction. Journal of Construction Engineering and Management, vol. 150, no. 3, pp. 19-26, Geminiani, F.L., Smallwood, J.J. and Van Wyk, J.J. 2005. A review of the effectiveness and appropriateness of the occupational health and safety inspectorate in South Africa. In: Haupt, T and Smallwood, J. (Eds.) Rethinking and revitalising Construction safety, health and quality. Port Elizabeth, South Africa. Gloss, D.S. and Wardle, M.G. 1984. Introduction to safety engineering, John Wiley and Sons, USA. Hammer, W. 1976. Occupational safety management and engineering, Prentice Hall, New Jersey. Haupt, T.C. 2003. A study of management attitudes to a performance approach to construction worker safety. Journal of construction research, Vol. 4, no. 2, pp. 87-100. Journal of Engineering, Design and Technology, Vol. 1, no. 1, pp. 42-53.
9

Haupt, T.C. and Smallwood, J.J. 2003a. HIV/AIDS in construction: are older workers aware?. Journal of Engineering, Design and Technology, Vol. 1, no. 1, pp. 42-53. Haupt, T.C. and Smallwood, J.J. 2003b. HIV/AIDS in construction: are older workers aware?. Construction Information Quarterly, Vol. 5, no. 3, pp. 3-6. Hinze, J., Pedersen, C. and Fredley, J. 1998. Identifying root causes of construction injuries Construction Engineering and Management, Vol. 124, No. 1, pp.67-71. Hinze, J. & Appelgate, L.L. 1991. Costs of construction injuries, Journal of Construction Engineering and Management, Vol. 117, no. 3, pp. 537-550. Hubbard, R. K. B. 1986. Major-minor accident ratios in the construction industry. Journal of occupational accidents, Vol. 7, no. 4, pp. 225-237. Kapp, A., Smith, M.J., Loushine, T.W. and Hoonakker, P. 2003. Safety and quality management systems in construction: Some insight from contractors. Journal of Management and Engineering, Vol. 13, no. 5, pp. 70-75. Kometa, S. T. and Olomolaiye, P. O. 1997. Evaluation of Factors Influencing Construction Clients Decision to Build. Journal of Management in Engineering, Vol. 13, no. 2, 77-86. Loosemore, M. 1999. The behavioural aftermath of accidents. International Journal of Project Management, vol. 16, no. 2, pp. 115-121. Massyn M., Steenkamp, V. and Smallwood, J. 2005. Managing health issues on construction sites: a Soutj African Perspective. In: Haupt, T and Smallwood, J. (Eds.) Rethinking and revitalising Construction safety, health and quality. Port Elizabeth, South Africa. Nichols, T. 1997 The sociology of industrial injury, Mansell, London. Olomolaiye, P. O., Price, A. D. F., and Wahab, K. A. 1987. Problems Influencing Craftsmens Productivity in Nigeria. Build Environment, Vol. 22, no. 4, pp.317-323. Rauner, M. S., Brailsford, S.C. and Flessa, S. 2005. Use of discrete-event simulation to evaluate strategies for the prevention of mother-to-child transmission of HIV in developing countries. Journal of the Operational Research Society, v 56, n 2, February, 2005,p 222 -233. SA Yellow Pages, 2007. South Africa Local Business Finder, Available from: http://www.yellowpages.co.za, [Accessed 25 February 2008]. Shash, A. A. 1993. Factors Considered in Tendering Decisions by Top UK Contractors. Construction Management and Economics, Vol. 11, no. 2, pp.111-118. Smallwood, J.J. and Haupt, C.T., 2003. Older workers in South African construction: General contractor (GC) perceptions, In: Proverbs (Eds.) proceedings of the RISC Foundation Construction and Building Research conference. University of Wolverhampton, Telford, 1-2 September. Smallwood, J. J. 2004. the influence of engineering design on health and safety during construction. Journal of the South African Institute of Civil Engineering, Vol. 46, no. 1, pp.2-8. Wikipedia. 2007. [Online]. Available from: www.wikipedia.com [Accessed 2nd August 2007]. Withers, J. 1988, Major industrial hazards, Gower Technical Press, England. Yellow Pages, 2007.

10

CLIENT COMMITMENT AND ATTITUDE TO CONSTRUCTION HEALTH AND SAFETY IN BOTSWANA

Musonda I. 1, Smallwood J. 2
1 2 Department of Construction Management, University of Johannesburg, Johannesburg, innocentmusonda@yahoo.co.uk, Tel: +27(0)11 406 2911 Department of Construction Management, Nelson Mandela Metropolitan University, john.smallwood@nmmu.ac.za, Tel: +27 (0) 41 504 2790, Fax: + 27 (0)41 504 2345

ABSTRACT Purpose of the paper The purpose of this paper is to present findings of a preliminary survey on the extent to which clients are involved in construction health and safety (H&S) implementation in Botswana. Methodology A questionnaire survey was conducted on construction projects to establish the extent to which clients are involved in construction H&S. Physical observations were also conducted on construction sites in order to relate questionnaire responses to what was actually obtained on sites. Findings Findings from the survey include: clients do not perceive H&S to be very important on construction projects, most clients do not address H&S adequately in contract documentation and H&S is rarely a major agenda item in progress meetings. Findings were also that clients are not fully committed to H&S implementation. Literature informs that the above are some of the important areas in which clients could show commitment and influence H&S performance. Value The importance of the client to H&S implementation and performance improvement has been recognised by various researchers. This paper however provides an insight on the extent to which the client is involved and committed to construction H&S in Botswana. Keywords: Botswana, client, commitment, construction, health and safety 1.0 INTRODUCTION Research conducted by the authors in Botswana revealed that the level of H&S awareness in the construction industry is low, H&S legislation is not complied with, the management of contractors is not committed to H&S implementation, there is a lack of H&S management systems, procedures and protocol and designers do not adequately participate in the implementation of H&S (Musonda & Smallwood 2005: 116). A similar study conducted by Ooteghem (2006: 43) revealed that occupational accidents and fatalities continue to be recorded in Botswana. Between the period 2000 and 2003, a total of 251 occupational fatalities were registered with the workmens compensation authority

11

from all sectors (Ooteghem 2006: 43). 96 Accidents in the construction sector alone were registered with the workmens compensation during the same period. It is estimated that about 4% of the gross domestic product world wide, is lost due to work related accidents and disease. A study conducted in Europe recently, showed that accident costs as a percentage of GDP ranged between 2.5 % and 6% excluding Great Britain and Norway which was determined to be 1% and 10% respectively (www.oit.org/public/english/protection/safework/papers/ecoanal/ecoview.htm). Research also shows that the construction industrys injury rate is still 50% higher than that of all industries (Huang & Hinze, 2006). The injury rate is also almost twice more than other industries such as manufacturing. Although quite a lot has been done to address H&S performance improvement including change to regulations in most parts of the World, research still shows that accidents still occur and the construction industry is still one of the most dangerous industries. Sawacha, Naoum & Fong records that in construction the risk of a fatality is five times more likely than a manufacturing based industry, whilst the risk of a major injury is two and half time higher (1999). Despite much having been done on H&S, the focus of most studies on construction H&S has been on contractors management and design & build firms (Hinze & Gambetese 2001: 159). Studies such as one by Jaselkis, Anderson & Russell (1996), Toole (2002) and Huang & Hinze (2006) on H&S performance have focused more on factors that do not significantly address clients role, involvement and attitude on H&S in the construction industry. This research will therefore build on what has already been done on the subject and explore more on client commitment and attitude in H&S management. This research is very important and contributes to the body of knowledge on H&S because very little work has explored the attitude and commitment of clients to H&S. Yet most scholars have recognised and affirm that clients can influence H&S. In order to improve H&S performance, attention has to be paid to client role. Huang and Hinze (2006: 164) in their paper on clients role on H&S argue that the involvement of clients (owners) is an essential requirement for the zero injuries objective. Other researchers have also recognised the importance of the client in the management of H&S. Suraji et al (2006: 55) and Smallwood (1998: 188) maintain that construction H&S can be successfully influenced by clients. Clients have a positive role to play in lowering injury rates 2.0 LITERATURE REVIEW

2.1 CLIENT ROLE IN CONSTRUCTION H&S Striving for enhanced H&S performance will remain elusive if the client is not actively involved especially in Southern Africa. Huang and Hinze (2006a: 164) rightly argue that the involvement of clients or owners is an essential requirement for the achievement of the zero injuries objective. Other researchers have also recognised the importance of the

12

client in the management of H&S. Suraji, Sulaiman, Mahyuddin, and Mohamed (2006: 55) and Smallwood (1998: 188) noted that construction H&S can be successfully influenced by clients. Clients have a positive role to play in lowering injury rates (Smallwood, 1998: 188) To emphasise the point that clients are very important in the management of H&S, Suraji, Duff and Peckitt (2001: 338) argue in their paper on accident causation that construction accidents are caused by inappropriate responses to certain constraints and the environment. They observed for example that the client responses are the actions or failure to act in response to constraints that emerge during the development of the project scope. According to them, these include reducing the project budget, adding new project criteria, changing project objectives and accelerating the design or construction efforts of the project. All of which are factors that impact on H&S and are directly influenced by clients. 2.2 CLIENT INVOLVEMENT A proactive management of H&S as argued by Hinze, requires that a safety approach be adopted that is not dependent on the monitoring of injuries after they occur (lagging indicators of performance) (2005: 1). Rather than basing safety actions on measures of failure a shift in thinking is needed whereby the focus is on those actions that can lead to good safety performance (leading indicators of performance) ( Hinze, 2005: 1). Leading indicators and management of these is what will contribute greatly to H&S performance improvement. This function is better performed by the client. Huang et al breaks down the above function into a list of activities which are essentially broad areas in which clients can and should exert influence on H&S as being: setting H&S objectives; selecting suitable contractors in terms of H&S and participating in H&S management (2006: 174). Smallwood goes even further and breaks down the broad areas and argue that clients should: provide financial support; include H&S as a prequalification criteria; schedule H&S requirements prior to bidding process; issue contract documentation that is structured to allow for H&S and, Conduct audits in H&S (1998: 182). Considering clients influence and potential to effectively manage leading indicators, clients should therefore input adequate resources into construction H&S instead of relying on contractors to improve H&S in the construction industry (Huang et al 2006: 180). Clients have not been significantly involved in H&S. As argued by Smallwood, the major agencies of client influence have been prescriptive, regulatory or coercive measures as opposed to upstream proactive measures such as ones identified above including design, detail and specification and more importantly prioritisation (1998: 185). Clients do not spend enough resources in addressing H&S in the preliminary stages rather would like to address the problem following accidents or incidents.

13

2.3 H&S LEADERSHIP H&S performance improvement also depends on the extent to which construction-project clients provide leadership on H&S matters. Loosemore, Lingard, Walker, and Mackenzie (1999: 884) also identified the importance of this and recommends that the lead must come from clients themselves. Without this, they argue, the construction industry has a long way to go in changing attitudes towards H&S. Levitt and Samuelson (1993: 215) also argue that monitoring, which is one of the activities in providing leadership, makes a difference, and that excellent H&S performance can be obtained with the active participation of clients, even from average contractors. If the clients are taking the lead, they must know exactly what is required to develop a detailed comprehensive brief for the design team and to issue H&S specifications. Further, as suggested by Suraji et al (2006: 49) the client must take responsibility for preventing accidents. The client should carefully consider H&S control in ordering works, exercising supervision, and providing instructions. Huang et al (2006a: 181) also asserts that clients set the H&S culture for a project. 3.0 RESEARCH METHODOLOOGY The study was quantitative and was aimed at determining the level of client commitment to H&S on construction projects. Therefore, the survey instrument needed to be designed so as to capture clients actions or lack thereof, and the perceptions of contractors as they are the direct implementers of project goals. Because of the type of data that was required, the survey of supervisory staff on construction sites using questionnaires, coupled with physical observations was deemed to constitute the best method to conduct the research. Questionnaires were preferred to face-to-face interviews because the researchers are of the view that respondents find it easier to answer questionnaires in privacy and their spare time. On the negative side, the response rate is usually lower with questionnaires that have to be returned. Questionnaires are also a good way of obtaining information because it is cheap and less time consuming. A pilot study was conducted in the preliminary stages. From the questionnaires that were sent out at this stage, the response rate was determined as being between 50% and 70% as slightly more than 60% responded. The questionnaire was designed to address, inter alia, the clients level of participation or commitment to H&S on construction projects. Both open and closed ended types of questions were used. Care was also taken to avoid bias by providing for alternative responses by related and preceding closed questions. Respondents were asked to state or specify. Closed questions were posed before open-ended questions. Rating scales were also used for respondents to mark the level of importance, frequency, or severity. On the clients level of commitment, the evaluation was conducted through the following questions: Evidence of active participation, as seen in the client project meetings, by establishing whether H&S was a major agenda item; Respondents view on how clients and designers regarded H&S in relation to other factors on a construction project;

14

The purpose of the third question was to identify the respondents opinion on how H&S could best be improved; client and designer participation is also included to assess whether respondents deemed it important, and The extent to which clients and designers address H&S in contract documents.

3.1 ANALYSIS OF DATA The Primary data that was obtained through questionnaires and physical observations that was obtained by using checklists was analysed and interpreted relative to the literature review. From the above, inferences were drawn regarding the larger and general practice relative to client commitment to H&S. Percentages and scores were calculated for various responses and observations. The calculation of scores was done to establish the order of importance or severity. This was done on a five point scale and a score was allocated to each factor as shown in Table 1. Scores for each factor was arrived at by adding up multiples of the opinion and the number of respondents that were of the particular opinion. Table 1: Opinion marks on the level of importance. Opinion Mark 25 Very important 20 Important 15 Fairly important 10 Slightly important 5 Not important 3.2 THE POPULATION The selection of the sample stratum was based on the following: The number of registered building contractors that were currently undertaking projects in Gaborone, Botswana; Limitations of time and financial resources, and Anticipated response rate.

A pilot survey conducted before the study revealed that there were about 47 building construction sites in and around Gaborone. For such small populations of less than 100 there is little point in sampling (Leady and Ormrod 2001: 221). As the result the entire population was surveyed. The study excluded private homebuilders and civil engineering contractors. The justification for this delimitation was the time limit, resources, and the difficulty in obtaining information, especially from private homebuilders. For the sample to be representative, it was necessary that all categories be represented in the study. The Public Procurement and Asset Disposal Board (PPADB) categorisation is

15

based upon five categories: for projects worth up to P0.5 Million, between P0.5 Million and P1 Million, between P1 Million and P4 Million, and more than P10 Million. A sample of 40 contractors was arrived at. Each category contributed 8 contractors. The only exception was the lowest category because there were only 5 building construction sites at the time. 3 more construction sites were randomly selected for the survey. Although some building contractors were working on more than 1 construction site, only 1 site was selected for each building contractor. As there were at least 47 active construction sites within Gaborone during the research period, this meant that all the contractors were surveyed. Table 2 tabulates the summary of the sample stratum. Questionnaires were addressed to site managers, site engineers, and site agents as they are at operational level and are able to relate what actually transpires on projects. This group was viewed as being of sufficient knowledge and impartial relative to top management and the actual practice on sites and their perception of the client. Site observations were conducted for all 40 contractors that had been interviewed. Checklists were used to record or tick off the observed elements on sites. 3.3 RESPONSE RATES In total, 40 questionnaires were distributed to building contractors. 25 questionnaires were completed and collected by the researcher, which equates to a response rate of 62.5%. Response rates for all categories are as tabulated below in Table 3. Category B is the only category that recorded a 100% response rate and the lowest category recorded only 20%. The poor response rate from the lower categories was possibly the result of the owners of organisations managing most sites. The problem could have been that they were too busy, or that they may have been concerned regarding the potential to exposure of any shortcomings. Table 2: Sample stratum Category Value (P) < 500 000 OC > 500 000 < 1 000 000 A > 1 000 000 < 4 000 000 B > 4 000 000 < 10 000 000 C >10 000 000 D&E Total

Sites 5 11 10 8 13 47

Surveys 5 8 8 8 11 40

Observations 5 8 8 8 11 40

16

Table 3: Questionnaire response rates Category Value (P) < 500 000 OC > 500 000 < 1 000 000 A >1 000 000 < 4 000 000 B > 4 000 000 < 10 000 000 C > 10 000 000 D&E Total

Response (No.) 1 3 8 6 7 25

Response rate (%) 20.0 37.5 100.0 75.0 63.6 62.5

4.0 FINDINGS Respondents were required to indicate how frequently H&S audits and inspections were conducted by clients and other key stakeholders. With respect to clients commitment to H&S, 56% of the respondents indicated that clients had never conducted H&S audits and inspections, and 28% rarely (Table 4). These findings can be compared to 40% of the respondents who indicated that contractors top management never conducted H&S audits and inspections, 36% rarely, and 20% often. This indicates slightly more commitment by contractors than clients. Only 8% of the respondents indicated that clients often conducted audits and inspections. None of the respondents indicated that clients always conducted audits and inspections. The clients leadership in H&S and thus commitment is even more questionable as over 50% of the respondents indicated that neither the supervising consultants nor the Government Factories Inspector conducted H&S audits and inspections. Supervising consultants are directly answerable to clients. The above may probably confirm the respondents perception that clients consider cost, time and quality to be more important than H&S (Table 7). Table 4: Frequency of audits and inspections by all stakeholders Response (%) Entity Never Rarely Sometimes 0.0 36.0 40.0 Contractor top management 8.0 28.0 56.0 Client 16.0 20.0 52.0 Supervising consultants 8.0 32.0 56.0 Factories Inspector 8.0 4.0 84.0 Civil organisations

Often 20.0 8.0 12.0 4.0 4.0

Always 4.0 0.0 0.0 0.0 0.0

Apart from inspections, site project meetings are important events where all issues regarding H&S can be raised and discussed. To indicate the extent of participation by clients and designers or supervising consultants, the position that they accord to H&S on the agenda of project site meetings would be used for measurement. This is all the more true because they mostly visit the sites at the time of these meetings. Question 2, therefore, sought to determine whether H&S was a major agenda item during client progress meetings. 28% of respondents indicated that H&S was a major item on the agenda and 72% that it was not (Table 6).

17

Table 6: Status of H&S in progress meetings Response (%) 28.0 Yes 72.0 No 0.0 Unsure 100.0 Total It was deemed that contractors would best describe clients attitudes towards H&S. This would, in turn, explain the level of commitment by clients and designers. Therefore, contractors were asked to rate the importance of various aspects to clients on projects. Remaining within budget was the most important, followed by contract period. Quality and avoiding litigation were ranked third and fourth, whilst H&S was identified as the least important (Table 7). Table 7: Perceived importance of H&S according to clients Aspect Score 590 Remaining within budget 565 Contract period 555 Quality 515 Avoiding litigation 270 H&S In an endeavour to further establish the extent to which clients participate in H&S, respondents were asked whether, in their opinion, contract documents always addressed H&S implementation. The reasoning behind this question was that one way in which clients would definitely participate in H&S implementation is through allowing and addressing it in the contract documents. 71% of the respondents indicated that H&S was addressed and 29% that it was not addressed. A follow-up question to check the validity of these responses was posed. The responses ranged between not being addressed and being fairly addressed. Only 4.2% and 8.3% of the respondents, respectively, indicated that H&S was addressed and fully addressed in the contract documents (Table 8). Table 8: Extent to which H&S is addressed in contract documents Scale Extent Response (%) Not addressed 1 25.0 Slightly addressed 2 29.2 Fairly addressed 3 25.0 Addressed 4 4.2 Fully addressed 5 8.3 No response 8.3

Total

100.0

18

One of the other areas believed to be at least where clients should show commitment and leadership on H&S is in insisting and ensuring that contractors have H&S programs in place. Therefore, respondents were asked whether they had H&S policy, procedures, programs, meetings, representatives, and documented work procedures on their projects (Table 9). More than 50% of respondents indicated that they never had any of the above. Between 20% and 30% of respondents indicated that they had, whilst less than 10% of respondents were not sure. Table 9: Existence of H&S programme elements Response (%) Element Yes No 64.0 20.0 H&S policy 60.0 28.0 H&S procedures 64.0 4.0 H&S programs 64.0 20.0 H&S meeting 68.0 12.0 H&S representatives 56.0 Documented work procedures 32.0

Unsure 4.0 0.0 8.0 0.0 4.0 0.0

No response 12.0 12.0 24.0 16.0 16.0 12.0

Specifically, 64% of respondents responded in the negative relative to having the required elements of a management system. 5.0 DISCUSSION Given the aforementioned, it can be concluded that the contribution by non-contractor stakeholders, specifically clients and their agents, designers, is virtually non-existent. Such stakeholder input and commitment is cardinal and essential to H&S performance improvement. The respondents ratings of the perceived importance of H&S to clients reveal the extent to which the client is committed to H&S. Relative to cost, time, quality, and avoiding litigation, clients view H&S to be the least important aspect on a construction project. The attitude seems to be wrong here and it can be argued that this influences H&S performance in construction. Based upon clients attitudes and actions, respondents perceived that they considered H&S to be not important. Responses relative to whether H&S was a major agenda item on the agenda of client progress meetings validates the perception rating - almost 71% of the respondents said that H&S was not a major agenda item. Client progress meetings are an important event during a project as all stakeholders are required to attend such meetings on site. It is also a forum where progress is evaluated and problems on site are discussed. If clients are committed to H&S it will be an agenda item. Standard contract documentation also does not reflect commitment by clients to H&S. Although 70% of the respondents said that H&S was addressed in contracts, only 8% indicated that it was extensively addressed. On average, 26% said it was not, slightly, or fairly addressed. 6.0 CONCLUSIONS It can be concluded that participation and commitment by clients to H&S is low because of the following; Clients and even designers never or rarely conduct H&S audits and inspections;

19

H&S is not regarded as a major agenda item in clients progress meetings; 72 % of the respondents indicated thus, and only 28% indicated that H&S was regarded as a major agenda item, and According to contractors, it was found that clients and their agents, designers, regarded H&S to be the least important aspect on a construction project. It follows that, if the clients perceive the importance of H&S to be low, their commitment would be low as well. In fact, avoiding litigation and quality was rated higher than H&S.

7.0 REFERENCES Hinze, J. 2005. A paradigm shift: leading to safety. In: Haupt, T.C and Smallwood, J.J. Eds. Rethinking and Revitalising Construction Health Safety, Environment and Quality, Port Elizabeth, 17-20 May. Walmer: CREATE. Huang, X. and Hinze, J. 2006a. Owners role in construction Safety. Journal of construction engineering and management 132(2), p.164-173. Huang, X. and Hinze, J. 2006b. Owners role in construction Safety. Journal of construction engineering and management 132(2), p.174-181 Leady, P. D., and Ormrod, J. E., 2001. Practical research: Planning and design. 7th ed. New Jersey, Prentice Hall. Levitt, R.E. and Samuelson, N.M. 1993. Construction Safety Management. 2nd ed. New York: John Wiley & Sons. Loosemore, M., Lingard, H., Walker, D.H.T., and Mackenzie, J. 1999. Benchmarking safety management systems in contracting organisations against best practice in other Industries. In: Singh, A., Hinze, J.H. and Coble, R.J. Eds. Implementation of Safety and Health on Construction Sites. Honolulu, 24-27 March. Rotterdam: A.A. Balkema. Musonda, I. and Smallwood, J.J. 2005. Construction health and safety awareness and implementation in Botswanas construction industry. In: Haupt T.C. and Smallwood J.J. Eds. Rethinking and Revitalising Construction Health Safety, Environment and Quality, Port Elizabeth, 17-20 May. Walmer: CREATE. Ooteghem, P.V. 2006. Work related injuries and illnesses in Botswana. International Journal of Occupational and Environmental Health 12(1), p.42-51. Smallwood, J.J., 1998. Client Influence on contractor health and safety in South Africa. Building Research & Information, 26(3), p.181-189. Suraji, A., Duff, R.A., and Peckitt, J.S., 2001. Development of causal model of construction accident causation. Journal of Construction Engineering and Management, 127(4), p. 344-344.

20

Suraji, A., Sulaiman, K., Mahyuddin, N, and Mohamed, O. 2006. Rethinking construction safety: an introduction to total safety management. Journal of Construction Research, 7(1&2), p. 49-63. www.oit.org/public/english/protection/safework/papers/ecoanal/ecoview.htm

21

IMPROVING SITE MANAGEMENT PROCESS THROUGH ICT

Ozumba AOU1, Shakantu WM2
Doctoral Researcher, Construction Management Department, Faculty of The Built Environment and Information Technology, Nelson Mandela Metropolitan University, Port Elizabeth, obinnaozumba@yahoo.com, Tel No. 0839510505 2 Associate Professor, Construction Management Department, Faculty of Engineering, Built Environment and Information Technology, Nelson Mandela Metropolitan University, Port Elizabeth, winston.shakantu@nmmu.ac.za
1

ABSTRACT Purpose of this paper To identify innovations in information and communication technology (ICT) that have potential benefits for the construction industry. The paper also shows how these innovations, if taken advantage of, can enhance the site management process Methodology/Scope The paper uses a purposive sample of specially informative journal and conference published literature on ICT such as 4D CAD and simulation / visualization, Auto IDs, GPS, RFID, Embedded technology, etc. These data sources in conjunction with postulations of uses of mobile communication technology and mobile computing with intranets and extranets in construction, form the basis of extrapolations that could benefit site management. Findings Though these are currently propositions, the paper suggests that there is potential for use of ICT in enhancing intra and extra site communications and benefits such as preventative disclosures and nipping-in-the-bud of WMDs, accident causative work processes, enhanced data and materials management in essence enhanced site management process. Practical implications The study is still in developmental stage of a PhD process. Value The postulations outlined here show potential to reduce cost of accidents, WMDs and improvement in site management. Keywords: Site Management Process, ICT potentials, Management ICT tools. INTRODUCTION In the past twenty-five years, construction technology has advanced deeper into the gamut of Information and Communication Technology (ICT), with innovations and developments that have far reaching implications for the construction industry. Information and communication technology has continued to develop rapidly ubiquitous applications. The global construction industry boom has fostered research interest in ICT for construction industry. Especially from the dawn of the new millennium construction industry has been accelerated, growing globally and locally with close margins. Volume and value of construction has become a major statistical yardstick for measuring economic activity in any economy. Contribution of construction to Gross National Product (GNP), in different countries at various levels of development reflects appreciable growth. The new construction environment so created is increasingly more complex and sophisticated, needing more advanced technologies to meet the organisational and operational demands of the day. There is increase in volume and diversity of people on construction sites, with varying levels of literacy and competence. Coupled with these, there has been an influx of new materials and methods, new modes of communication, economic and social changes. This is especially true in
22

emerging economies of Africa, Asia and South America. This new construction landscape, increased scale and funding of projects, and technological advancement in other areas, among other factors has driven further research effort in construction ICT. Hence appreciable effort has been put into developing ICT systems for construction activities and adapting innovations from other areas. Some of the technologies that have benefited construction include: Mobile Computing, Mobile Communications, Artificial Intelligence (AI), Automation and Robotics, Global satellite Positioning System (GPS), Geographic Information System (GIS), Embedded Technology, Barcode Technology, Automatic-Identification systems (Auto-ID), Radio Frequency Identification systems (RFID), Four Dimensional-Computer Aided Design (4D-CAD) and graphics, Virtual Reality (VR), Augmented Reality (AR), Extranets and Intranets, etc (Mair, 1999; Retik et al, 1999;Retik and Shapira, 1999; National Institute of Standards U.S., 1998; Flanagan et al, 2000; Jang and Skibniewski, 2007; RFID Centre, 2005; Wang et al, 2007; Stone, undated). Recently there have been efforts put into integrating the technologies, to achieve better overall performance, in fieldwork. In this regard the following have been investigated: Integrating virtual reality and telepresence, augmented reality with global satellite positioning system (GPS) and mobile communications, embedding barcode and geographic information systems, integrating visualisation with automation and robotics, integrating GPS with smart sensors and wireless networks, virtual reality with surveillance and security applications. These developments in ICT provide potential benefits for the construction industry, construction activities and management of construction activities. It would be logical therefore to expect the construction industry to keep abreast with ICT advancement, and adapting emerging technologies expeditiously, with a view to enhancing communication, visualisation and site management. However, construction industry has been slow in adopting ICT fully, adapting the technologies and properly implementing it. Conservative and non-collaborative tendencies, fear of irrelevancy and loss of jobs, information security and insistence on traditional methods are among the major reasons for this slow response. Where embraced, construction ICT has been targeted more at specific tasks within the set of construction activities, especially operational tasks. In the area of construction management, industry implementation of ICT has been more at policy and strategic management levels. While some technologies have been developed for construction site activities, there is no corresponding level of implementation, and much less is directed at Site Management (SM) and Site Management Process (SMP). There is a need to investigate recent ICT innovations and developments, within the wide spectrum of information and communication technologies, to determine the potential benefits for the management of construction activities that will enhance the site management process. Against this background, this paper investigates ICT innovations and developments that have potential benefits for construction industry. This paper is part of a wider PhD study still in developmental stage. It will relate sources and literature covered so far in the research work. Being an introductory part of the research effort, this paper intends to show preliminary issues. Site management is a complex field. Thus, ultimately the wider PhD research effort will locate its theoretical framework within the intersections of management and computer science / technology. It is possible also for more light to be shed on what management-oriented approach to construction ICT implementation should be. For the purpose of this paper, focus will be on potential and implications of latest ICT developments for site management process. CONCEPTS Wireless Mobile Technology

23

Applications based on this concept are diversified in capacity and functionality. They include ability to perform tasks through information interchanges without physical connection, and to move. Mobile / wireless technology is now applied on enterprise scale and grouped according to various factors such as functionality, operational requirements, service categories, etc (RFID Centre, 2005). Mobility has also made it possible to perform mobile computing, undertake mobile office applications and service management involving real-time scheduling and direct information access. It enables frontline data capturing making it possible to enter data at point of activity, making realtime monitoring and control practical (RFID Centre, 2005). Distributed data collection and centralised management This involves the control centre approach. An ICT that uses data collecting terminals distributed strategically within a site, and a control centre where transmitted data is collected and analysed (Cheng and Chen, 2002). Ubiquitous computing This involves distributing computing power over and around the working environment. This pervasive computing is made possible by wireless mobile communication between embedded systems, handheld mobile devices, stationery devices and bigger terminals, (Flanagan et al, 2001) Motion planning and tracking A method used in robotics to predetermine the precise movement of robot arms in 3D environment (Kang and Miranda, 2006). When imported into a 4D virtual environment and linked to a control system on the robot, the movement can be controlled in real-time, especially with real world video monitoring capacity added. This method can be used conceptually for site management where the movement of resources is determined by site design and controlled in real-time. Real-time computing This deals with the event and system response (RFID Centre,2005; Wing, 2006; Begh and Kagioglou, 2004; Lfgren, 2007). It talks about generating response from the system as the event happens, within natural response time. It means receiving information and alerts from a system immediately an event occurs anywhere within the systems network. Contactless transaction This is enabled by an improvement on smart card technology, where a contactless reader which is able to detect particulars of a smart card without making physical contact, and respond to requests according to access level programmed into the smart card (Card Technology Today, 2007). Telepresence It involves using a set of technologies to give the experience of being in a remote location. The user can also affect that location by communicating through vision and sound, or through visually coordinated physical displacement of remote objects by added robotic capacity. It gives remote control capacity to realworld visualisation, providing 4D visualisation. This has become a major research focus for construction ICT. Research has been done on integrating telepresence, virtual realty and mobile communications for planning and monitoring of engineering projects (Retik et al, 1999; Mair, 1999; Stone undated). TRENDS Development of these concepts discussed above among others has resulted in many ICT innovations with far reaching implications for the site management process. Initially ICT solutions were targeted at product design, with research concentrated on providing tools for the design stage. Computer aided design software and hardware were among the first implemented. CAD enhanced
24

the work of architects and design engineers. This effort was followed by ICT solutions for the planning stage of the construction phase, resulting in digital planning and scheduling tools. The design of these solutions was mainly on project management scale. The shift in ICT research to construction site activities came with advancement in automation and robotics in construction. This was borne out of necessity mainly, as in the case of hazardous materials and sites with health threatening features, deep-water construction, subterranean construction, and mega structures. ICT solutions in this regard are isolated, being targeted at specific tasks within construction site activities. Many of these ideas originated from other industries that admittedly have more stability in their basic day-to-day operations than what is found in any construction set up. Thus the success rate achieved in other industries has not been replicated in the construction industry ICT (Wing, 2006; Mair, 1999; Retik et al, 1999;Retik and Shapira, 1999; National Institute of Standards U.S., 1998; Flanagan et al, 2000; Jang and Skibniewski, 2007; RFID Centre, 2005; Wang et al, 2007; Finch, 1998; Stone, undated). Advancements in mobility, wireless networking, Internet, virtual reality, visualisation, artificial intelligence, embedded systems, and the like have ushered in the present phase of research and development for ICT in construction. Recent developments show an inclination towards integration and the development of hybrid systems with combinations of technologies to perform more tasks or to perform a singular task with more accuracy. Therefore these developments in themselves are still targeted at groups of related tasks and in that sense producing some level of isolation when employed in site management. It seems that requirements of the construction site are not taken into consideration, as much as performing a task in the construction site (Lfgren, 2007). The level of awareness of site staff concerning their ICT requirements is low (Lfgren, 2007). ICT has been applied extensively in pre-construction stage, in product design, production planning and scheduling. Site management as a distinct part of the fieldwork or construction phase seems not be in proper focus. Research focusing on site management has been limited. It can be argued that there is lack of adequate awareness of ICT potential for management of construction site activities. Moreover a proper evaluation of present ICT developments, innovations and infrastructure has not been conducted to any large extent. Management oriented construction ICT research, focused on the site management process is required to identify these ICT potentials. RECENT INNOVATIONS AND DEVELOPMENTS ICT research efforts examined so far fall under the following classifications which are discussed below: Embedded systems Auto-IDs - smart sensor networks Smart card technology Smart cards, which make use of smart electronic labelling for automatic identification, have continued to soar in adoption and demand across other economic sectors. With added capacity of cyber agents, access control can now be centralised through TCP/IP-enabled local IT networks. An Internet based smart card payment and information access system has been highly adopted among New York City taxis for passengers since June of 2007, which makes use of a contactless reader and a Passenger Information Monitor (PIM) (Card Technology Today, 2007). A new smart sensor system is claimed to allow scripting and real-time management of cards in the field. The ANDiS4EMV system by BELL ID (Card Technology Today, 2007), gives enormous access control power in the hands of management, which can be applied to any resource on site. It has potential for mobile machinery such as cranes. BELL ID smart cards can be disabled totally or partially, blocked or unblocked, and all these while the card is mobile in the field (Card Technology Today, 2007). Next generation smart cards are programmable optical memory cards with numerous customisable
25

features. As smart card technology evolves and interoperability improves, the cost of operating these systems is reducing and access is increasing. The RP40multiClass transparent contactless reader from HID Global (Card Technology Today, 2007) is one of such that can read cards using old and new technologies. The ability to customise is increasing with software development kits (SDK) being produced for card manufacturers. So for a project site, certain unique feature can be programmed into cards to be used during the project life cycle. Some of the current research fields in this area are Near Field Communications (NFC) and RFID solutions for mobile handsets. One such breakthrough is in bringing about Mobile TV. MTN South Africa is now offering mobile TV service based third generation mobile technology standard (3G), and Digital Video BroadcastHandheld (DVB-H) technology (Card Technology Today, 2007). The smart card being used for this purpose is the UpTeq mobile TV USIM cards type, which has Conditional Access System (CAS) application built in and is customisable. RFID Radio Frequency identification (RFID) can be viewed as advancement from barcode technology, enabling automation to further increase labour productivity (RFID Centre, 2005). This high impact has given RFID systems wide acceptance in various sectors worldwide, especially in the tracking of goods and assets. RFID lends a high level of practicality to mobility, where it is commonly referred to as contact-less technology and distributed databases. RFID is an advanced Automatic Identification (Auto-ID) system made up of radio tags (transponders) that collect and transmit information through a reader or scanner, by Radio Frequency (RF), to a host computer for processing (RFID Centre, 2005). When integrated in field support systems, RFID terminals can be used to remotely detect and measure temperature, pressure, orientation, identify and geographically position objects. They facilitate batch processing because of the ability of auto-identification and using RF, which eliminates the need for visibility. There are up to three frequencies for RFID transmission that are suited to different applications of the technology. The computational capacity in recent RFID products has increased, making it possible to use ubiquitous computing more. RFID has been adopted extensively in retail business. It can be applied to access control for all kinds of resources and in product security. RFID in other research work has been integrated with other allied technologies with far reaching results. There has been integration of RFID and Geographic Information System (GIS) to monitor construction progress, using the Archsched system (Cheng and Chen, 2002), Combining RFID with Ultrasound, using ZigBee networks, in the AMTRACK system, for tracking and monitoring of construction materials (Jang and Skibniewski, 2007). RFID technology now includes cyber-agents or software components, which make independent decisions and actions in the field, without human intervention possible (Wing, 2006). It is now possible to add Internet connectivity to embedded systems, and programme them while in use. This synergy between electronic labelling, tracking features and Internet connectivity through software component eliminates the need for data collection by human intervention, consequently an information laden embedded system can continue with a resource through its transformation as it is used on site (Finch, 1998). Mobile computing and communications Mobile communications and mobile computing involves three features; mobile device, mobile networks and mobile services (Rebolj, 2002). Mobile devices are intended to experience displacement while maintaining functionality. Therefore, quality of mobile device and wireless application service is vital (RFID Centre, 2005). Mobile devices have developed at a tremendous rate. These devices have increased in style, functionality, capacity, application areas, features, usability etc. The same has been the case with wireless application service. Today there proliferation, and this is creating room for universal systems. Mobile devices range from Laptop computers, Notebooks, Personal Digital Assistants (PDA), Portable Data terminals (PDT), Tablet personal computers, to Smart phones. Integrating these features has accelerated development of
26

various mobile devices. Mobile technology has grown through many standards. First Zero-to-Half Generation (0G - 0.5G), through First Generation (1G), and Second Generation (2G 2.7G). Then Third Generation (3G 3.75G), which can transfer voice and non-voice data simultaneously making features like videophone call a reality. The next frontier is Fourth Generation (4G) mobility technology standard which has global applicability as one of its major research objectives (RFID Centre, 2005). The coming into existence of Internet Protocol (IP) has given tremendous capacity to wireless and mobility technology. IP offers one of the most affordable and versatile communication means for the job site with room for future adaptations (Begh and Kagioglou, 2004). Internet Protocol is an ICT enabling solution. It enables convergence of technologies on its framework. This makes IP a good choice for ICT implementation in construction sites. It comes with different modes of communication like Pc-to-Pc, Pc-to-Phone and Phone-to-Phone. Other concepts have developed on its framework like Voice over Internet Protocol (VoIP), Integrated Sound and Data Network (ISDN) etc (RFID Centre, 2005; Begh and Kagioglou, 2004). Visualisation / Simulation Visualisation has developed rapidly from simple two-dimensional (2D) computer graphics representation (2D CAD), through three-dimensional (3D) computer aided design (CAD) and graphics to four-dimensional CAD (4D CAD). Experience of virtual worlds, and interaction with 3D CAD models in virtual environments, Simulating and visualising passage of time and its implications on cybernetic versions of our real world data in 4D CAD have become regular applications in many fields of work today (Wing, 2006; Mair, 1999; Retik et al, 1999;Retik and Shapira, 1999; National Institute of Standards U.S., 1998; Flanagan et al, 2000; Wang et al, 2007; Finch, 1998; Stone, undated). Research interest areas in visualisation include: Four-Dimensional CAD Adding the element of time to 3D virtual environment had created 4D CAD applications with which time passage in projects are simulated and visualised, enabling more efficient planning scheduling. It also enables updating according to progress of work (Mair, 1999;Retik and Shapira, 1999; Flanagan et al, 2000; Wang et al, 2007). Virtual Reality (VR) This uses Virtual environments (VE) (Retik and Shapira, 1999) offers an immersive and interactive 3D environment to work in. The user is able to interact with a computer-generated environment, which can be created or the modelling of a real world situation (Flanagan et al, 2000; Wang et al, 2007; Stone, undated). Construction scheduling and its effect on work can be simulated thereby giving a virtual experience of the construction process. Understanding of the design concept and a good knowledge of site eventualities are possible. It offers a graphic medium for both process design and progress monitoring. VR is a convergence of knowledge gained from simulation, visualisation and animation (Retik and Shapira, 1999). Virtual environments generated with computer graphics gives the experience of natural situations in virtual space, using virtual objects and related data. Virtual Reality technology engages the visual senses in order to get the most accurate deduction from the experience. Some VR applications now include the sense of sound and some advanced systems simulate touch by applying motion and vibrations (Mair, 1999; Flanagan et al, 2000; Stone, undated). Augmented Reality (AR) Also called Mixed Reality (Graz University, 2007), means taking virtual 3D CAD objects into the real world environments by superimposition. This is opposed to VR, which is simulating real world environments in cyberspace. Augmented reality has different approaches (Retik et al, 1999). It can also be manual or automatic. The real world environment is the base environment while virtual objects are placed in their future real world positions. This is done through a system combining
27

Global Satellite Positioning System (GPS), Tracking system and Video camera. Outdoor AR is especially good for construction because it is non-restrictive, and augments the reality in conformity with the users location, position and orientation (Behzadan and Kamat, 2006). Thus the real situation on site can be augmented with virtual CAD models, to simulate and visualise an augmented reality of non-existent situation on site. The user can determine the fit of the imagined with the real. A handheld version this system exists currently. Telepresence This is made up of combined technologies. In principle it aims at giving the end user the experience of being physically and completely in a remote or virtual environment by engaging the five classical senses. Telepresence (TP) goes beyond VR to putting the end user in the environment and synthetically giving a real world experience. TP can also be of a non-immersive mode, where the users senses are not completely engaged to the point of non-awareness of the immediate environment, however the user is able to view a virtual or remote real site situation through monitors (Retik et al, 1999). The idea of teleoperation developed from the concept of Haptic Feedback, Teleoperators and Remote Manipulators, which had appeared in publications by late 1960s (Stone, undated). It has developed by usage in different areas including aviation and space, nuclear energy industry, manufacturing, military and medical practice. Research effort for Telepresence (TP) in construction has culminated in hybrid systems, convergence of even more of technologies (Retik et al, 1999; Mair, 1999). Advancements in video image compression and decompression, wireless networks and mobility have impacted positively on the development of TP systems. A mobile hybrid VR and TP system integrates three modules namely virtual reality module, real world video module (camera platforms), and communications module (Retik et al, 1999). As reported in (Mair, 1999) the hybrid VR, TP and mobile communications concept had home / office site equipment, and site hardware for the remote site. The remote site hardware had both fixed and mobile types. Stereoscopic cameras were used and the communications relied on Internet Protocol TCP/IP through mobile handsets. Research has continued on incorporating audio, mechatronics aspect of this area, in manufacturing, hazardous sites and overcoming problems of application on construction sites, which are dynamic by nature. DISCUSSION Various issues of interest arise as the study evaluates the wide range of ICTs available for construction currently and in the near future, and the possibilities come to light. For example, it is foreseeable that the future of satellite TV is in handheld mobile communication devices. That singular possibility holds a lot of benefits for SMP. Satellite based construction support systems like SABARECO and COSMOS have been tried successfully. If powerful systems like that were linked seamlessly and automatically to mobile handsets, communication speed would be tremendously improved. Very critical SM situations can take place smoothly, seamlessly and timely. For instance a TV broadcast system integrated into a companys intranet can be used to broadcast critical information to supervisors and foremen on the ground. Site management-coordinated remote directing of critical installations in real-time, by both design and construction teams in teleconference mode, with full operation / subject visualisation is possible. In same way, RFID potential can be applied to site management process. If RFID is integrated with allied technologies, it could give the remote and real-time capabilities. The management of the site, human resource, material / equipment / plant, health and safety etc can all benefit from ICT. Site management functions, especially monitoring, directing and control can be highly improved. Technologies employed in all generations of mobile devices still have potentials for construction management today. For instance the Push-To-Talk (PPT) from OG Technology, regarded as obsolete, can still be exploited today. Global System for Mobile communication (GSM) phones on site can be turned into two-way radios, locked on to site intranet through their read / write sim cards, so that site management can simultaneously monitor
28

and control site activities in real time. Many, if not all existing types of mobile devices are used by construction personnel in one form or the other. They are not utilised to their full potential. Therefore much remains to be done in taking advantage of mobile and wireless application technology for site management process. CONCLUSION Terms such as project management team, construction management team and design team are familiar in construction. Site Management (SM), Site Management Team (SMT) and Site Management Process (SMP) on the other hand seem to be lost in the vastness and strategic nature of project management and construction management. While SM comes under construction management, it plays a pivotal role in the production phase of construction process. SM is a complex field, so there is a wide array of potential benefits in utilising ICTs for process enhancement. SMP involves the major stakeholders in construction at various levels of engagement. Therefore simply innovating ICT based solutions for specific tasks in construction process will create more islands of technology. That will not adequately serve for full realisation of ICT potential benefits in SMP. Implementation of ICT in SMP ought to have a multi-stakeholder approach, which seeks to understand the ICT requirements of various aspects of SM and the appropriate nature of their interfaces. There are appreciable and latent potentials for the enhancement of SM, the SMT and SMP. Even so preventive measures that will nip WMDs in the bud remain an issue. The ideal communications situations on construction sites have not yet been achieved and site management in general is still pressured and stretched over adequate monitoring and control. These potentials should be studied with the backdrop of, what ICT requirements for SM should be and, what ICT toolset and nature of implementation would serve SM best and be inclusive of stakeholders. REFERRENCES Kang, S. and Miranda, E. (2006) Planning and visualization for automated robotic crane erection processes in construction. Automation in Construction [online] 15(4), p.398-414, July. Elsevier B.V. Available from: http://www.elseiver.com/locate/autocon [Accessed 13 December 2007] Flanagan, R, Jewel, C, Larsson, B, and Sfeir, C. (2001) Vision 2020, Building Swedens Future. [online] CMB, Sweden. Available from http://www.std.se/om_std/documents/vision2020article.pdf [Accesses September 2007] Chau, K, Anson, M, and Zhang, J, P. (2003) Implementation of visualization as planning and scheduling tool in construction. Automation in Construction [online] Vol 38 ( 5), p.713-719, May. Elsevier B.V. Available from: http://www.elseiver.com/locate/autocon. [Accessed 30 October 2007] Wang, H, J, Zhang, J, P. Chau, K, W. and Anson, M. (2004) 4D dynamic management for construction planning and resource utilisation. Automation in Construction [online] Vol 13 (5), p. 575-589. September. Available from: http://www.elseiver.com/locate/autocon. [Accessed 30 October 2007] Mair, G. (1999) Transparent Telepresence Research. Industrial Robot [online]Vol 26 (3), p. 209215. MCB University Press. Available from: http://www.emerald-library.com. [Accessed 14 December 2007]

29

Retik, A, Clark, N, Fryer, R, Hardiman, R, Mcgregor, D, Mair, G, Retik, N. and Revie, K. (1999) Mobile hybrid Virtual Reality and Telepresence for planning and monitoring of Engineering Projects [online] Available from: http://www.telepresence.strath.ac.uk/recent_work.htm [Accessed 18 December 2007] Behzadan, A, H. and Kamat, V, R. (2006) ANIMATION OF CONSTRUCTION ACTIVITIES IN OUTDOOR AUGMENTED REALITY [online] Available from: http://www.pathfinder.engin.umich.edu/document.Behzadan&Kamat.ICCCBEXI.2006.pdf [Accessed 14 December 2007] U.S. National Institute of Standards, (1998) Visualization of Structural Steel Product Models, Construction Sites and Equipment, and the Virtual Cybernetic Building Testbed [online] Available from: http://www.cic.nist.gov/vrml/ [Accessed 21 December 2007] Begh, S. and Kagioglou, M. (2004) CONSTRUCTION SITES COMMUNICATION, TOWARDS THE INTEGRATION OF IP TELEPHONY. Itcon [online] Vol 9 (2004), p. 325-344, August. Available from: http://www.itcon.org/2004/23 [Accessed 18 December 2007] Lfgren, A. (2007) Mobility in-site: Implementing mobile computing in a construction enterprise [online] Available from: http://www.marshal.usc.edu/web/CTM.cfm?doc_8453 [Accessed 18 December 2007] Rebolj, D, Magdic, A. and Cu-Babic, N. (2002) Mobile Computing in Construction [online] Available from: http://www.todowebextremudura.com/papers/732.pdf [Accessed 3 October 2007] Card Technology Today, (2007) IN BRIEF.[online] Vol 9 (9), p. 3-7. Elsevier B.V. Available from: http://www.linkinghub.elsevier.com/retrieve/pii/S096525900770124X [Accessed 21 December 2007] Jang, W. and Skibniewski, M, J. (2007) WIRELESS SENSOR TECHNOLOGIES FOR AUTOMATED TRACKING AND MONITORING OF CONSTRUCTION MATERIALS UTILIZING ZIGBEE NETWORKS. ASCE Construction Research Congress: The Global Construction Community, May, 2007 [online] Available from: http://www.pm.umd.edu/econstruction/People/Biography_Jang.pdf [Accessed 19 December 2007] RFID Centre, (2005) Introduction to RFID [online] Available from: http://www.rfidc.com [Accessed 9 October 2007] Wing, R. (2006) RFID APPLICATIONS IN CONSTRUCTION AND FACILITIES MANAGEMENT. Itcon [online] Vol 11 (2006), p. 711-721. Available from; http://www.itcon.org/2006/50 [Accessed 14 December 2007] Cheng, M. and Chen, J. (2002) Integrating barcode and GIS for monitoring construction progress. Automation in Construction [online] Vol 11 (1), p. 23-33, December. Elsevier B.V. Available from: http://www.elsevier.com/locate/autocon [Accessed 14 December 2007] Finch, E. (1998) EMBEDDED INTERNET SYSTEMS APPLICATIONS IN CONSTRUCTION. Proceedings IGLC `98 [online] Available from: http://www.ce.berkeley.edu/~tommelein/IGLC6/Finch.pdf [Accessed 18 December 2007]

30

Stone, R, J. (undated) Haptic Feedback: A Potted History, From Telepresence to Virtual Reality [onoline] Available from: http://www.springerlink.com/index/e2kr2eu6820tx1lg.pdf [Accessed 11 January 2008] Ott, R, Gutierrez, M, Thalmann, D. and Vexo, F. (2004) Advanced Virtual Reality Technologies for surveillance and Security Applications [online] Available from: http://www.vrlab.epfl.ch/Publications/pdf/ott_and_al_VRCIA-06.pdf [Accessed 18 December 2007] VIDENTE, (2007) URBAN 3D MODELS: WHATS HAPPENING BENEATH? HANDHELD AUGMENTED REALITY FOR UNDERGROUND INFRASTRUCTURE VISUALIZATION. UBICOMP 2007 [online] INSBRUCK, GRAZ UNIVERSITY OF TECHNOLOGY & GRINTEC GMBH AUSTRIA. Available from: http://www.authohstream.com/presentation/ [Accessed 14 december 2007] Yang , J, Ahuja, V. and Shankar, R. (2007) Managing Building Projects through Enhanced Communication An ICT Based Strategy for Small and Medium Enterprises. CIB World Building Congress 2007 [online] Available from: http://www.construction-innovation.info/images/pdfs/ [Accessed 30 September 2007] Riaz, Z, Edwards, D, J. and Thorpe, A. (2006) SightSafety: A hybrid information and communication technology system for reducing vehicle / pedestrian collisions. Automation in Construction [online] Vol 15 (6), p. 719-728, November. Elsevier B.V. Available from: http://www.elsevier.com/locate/autocon [Accessed 18 December 2007] Umetani, T, Mae, Y, Arai, T, Kumeno, H, Inoue, K, Takubo, T. and Niho, H. (2007) Automated identification of partially exposed metal object. Automation in Construction [online] Available from: http://www.elsevier.com/locate/autocon [Accessed 21 December 2007] German National Research Center for Information Technology Integrated Publication and Information Systems. (undated) COSMOS COnstruction Sites Mobile Operations Support [online]. Available from: http://www.domstadt.gmd.de/mobile/mobileip/COSMOS/Prolog.html [Accessed 19 October 2007] Stewart, H. (2002) SABARECO, satellite based project reporting for the construction industry. Ist information society technologies: success story [online] Available from: http://www.istworld.org/ProjectDetails.aspx?ProjectId=3639934269054d5f89d37ffbf50cd750. [Accessed 19 October 2007] Sarshar, M. (2004) A survey of ICT use in the Turkish construction industry. Engineering Construction and Architectural management [online] Vol 11 (4), p. 238-247, November. Emerald Group Publishing Limited. Available from: http://www.xtra.emeraldinsight.com/documents/viewContentItem.do?contentType=Article&hdActi on=lnkhtml&contentId=845834 [Accessed 13 September 2007]

31

A LITERATURE REVIEW ON THE APPLICATION OF TITANIUM DIOXIDE REACTIVE SURFACES ON URBAN INFRASTRUCTURE FOR DEPOLLUTING AND SELFCLEANING APPLICATIONS
Osburn, L1
1. Researcher at the Built Environment CSIR, losburn@csir.co.za, Tel No. 012-841 4230

ABSTRACT Purpose of this paper This study was performed in order to understand what work has been completed regarding the application of reactive surfaces primarily for pollution abatement in urban areas. The hope is that these surfaces could then be applied to South African infrastructure for the benefit of the people. Methodology/Scope - Journal articles from peer reviewed journals were studied in order to understand the level of work that has so far been completed. Findings - It was found that a great deal of research is currently underway in this topic globally and that titanium dioxide reactive surfaces show good potential for depolluting and self-cleaning applications. Research limitations - There is a large amount of published work on this topic, consequently not all of the relevant articles and studies could be read for inclusion into the literature review. However it is thought that the important details and findings are included. Practical implications - Titanium dioxide reactive surfaces have been shown to work under real life conditions and have real potential to be used in basic urban infrastructure. Utilisation of such surfaces could become a standard building practise within South Africa. Value - This paper is a collection of the applicable results of studies that have been completed globally. It shows the potential of such surfaces and if utilised could provide real health benefits for people living in urban areas. Economic advantages can also be experienced by the owners of such surfaces due to lower maintenance requirements. Keywords: Coatings, Titanium Dioxide, Depolluting, Self-Cleaning, Photocatalysis

32

1 INTRODUCTION Photocatalysis has attracted extensive attention since the discovery of the Fujishima and Honda phenomenon in the early 1970's. (Fujishima & Honda, 1972) Fujishima and Honda discovered that photolysis of water could occur by using photocatalysts such as titanium dioxide. This discovery suggested a large number of potential applications, including photovoltaic cells, photoinduced superhydrophilicity, organic synthesis, degradation of pollutants and photolysis of water. Since that discovery, photocatalysis has been a subject of serious research and exploration.

2 FUNDAMENTALS OF PHOTOCATALYSIS Although titanium dioxide (TiO2) was the semi-conductor initially used by Fujishima and Honda, many other semi-conductors have been identified and used in experimentation, including CdS, SnO2, WO3, SiO2, ZrO2, ZnO, Nb2O3, Fe2O3, SrTiO3 and TiO2. In catalysed photolysis, light is absorbed by the semi-conductor (catalyst) which causes an electron to become excited and forms an electron-hole pair. Each semi-conductor used as a photocatalyst corresponds to a range of light wavelengths with which electron hole-pairs may be induced. The size of the band gap of the electron hole-pairs, varies between the semi-conductors and the band gap is the amount of energy the semi-conductor requires to absorb in order produce an electron holepair. Photocatalysts are characterised by their ability to absorb and undergo two different reactions simultaneously, one reaction involving the excited electron (e-) and the other involving the electron hole. (h+) (O. Carpe et al, 2004) Photo generated holes that are produced on TiO2 surfaces have strong oxidising power (3.0 eV) and can oxidise almost all toxic organic compounds to CO2. (Ohko & Fujishima, 1998) The photocatalytic reaction is initiated by absorption of UV light, an electron-hole pair is then formed on the titanium dioxide, each of which are then able to react with nearby molecules. (Banerjee1,S et al, 2006) There are a number of reactions which can then lead to the production of hydroxyl radicals or reactive oxygen species. (ROS) The hydroxyl radical or any of the ROS are capable of oxidising pollutants on or near the TiO2. Desoiling agents, such as Rhodamine B or pollutants such as, NOx, VOC (Volatile Organic Carbons) and BTEX (benzene, toluene, ethylbenzene, o-xylene), have all been shown to be oxidised by these agents produced by the photocatalysts. 3 SELECTION OF THE SEMI-CONDUCTOR Of the available semi-conductors which can be used as photocatalysts, TiO2 is generally considered to be the best semiconductor photocatalyst available at present. (Mills et al, 2002) The overwhelming majority of the literature concerning photocatalysis is concerned with identifying the properties, applications and theory of the use of titanium dioxide as a semiconductor. There are indeed good reasons for favouring TiO2 as the semi-conductor of choice, including: Strong oxidising power, at ambient temperature and pressure (3.0 eV) Photo-generated electrons are reducing enough to produce superoxide from dioxygen
33

Anti-bacterial Self-cleaning Depolluting Chemical inertness Physical stability Non-toxic Superhydrophilic Stable in the presence of aqueous electrolyte solutions Cheap and readily available

Titanium dioxide is close to being an ideal photocatalyst, displaying all of the required properties, the only exception being that it does not react well with visible light. (Carp et al, 2004) There are already a number of commercial photocatalytic TiO2 products available on the market and notably, Degussa P25 TiO2, which is in many respects considered a standard and is often used as a comparison in scientific experimentation for determining photocatalytic activity. (Mills et al, 1997) 4. REAL WORLD APPLICATIONS OF THE DEPOLLUTING EFFECT OF TITANIUM DIOXIDE SURFACES 4.1 Applications in Japan It is known that Japan has applied titanium dioxide coatings in many of their cities, such as Osaka, Chiba, Chigasaki, Suitama and Shinatoshin. At least 50 000m2 of surface area in Japan has been coated with such surfaces, and the claim is that the daily removal rate is 0.5 - 1.5 mmol per m2 and that the photocatalytic material can maintain its effectiveness with very little performance deterioration. A titanium dioxide coating was used to coat highway sound barriers Osaka, Japan, 1999, the purpose of which was to reduce NOx pollutants as well as providing a self-cleaning effect.

Figure 1. View of soundproof highway walls coated with titanium oxide photocatalysts for the elimination of NOx. These new walls were constructed in Osaka, April 1999. (Anpo, M, 2000)

34

4.1.1 Highway Case Study Details regarding a specific case study in Tokyo were obtained. Photocatalytic panels were used, which were made of polyvinyl chloride resin. The panels were placed alongside a 6 lane highway running in an east/west direction. The traffic estimation for on highway was 113 000 vehicles a day. Metrological measurements were taken and the UVA intensity at noon was over 0.1mW cm-2, these measurements were taken during winter. Two types of panels were used, an open panel and a windowed panel. The windowed panel had a glass covering and air was pumped into contact with the photocatalytic surface. The average percentage removal of NOx for the windowed panel was between 31-69%. SO2 and non-methane hydrocarbons were removed, 67-79% and 17-20% respectively. The removal percentages for the windowed panels are dependant on the air flow over them. The rate estimated was 3 mmol (NOx) m-2d-1. (Kaneko & Okura, 2002) 4.2 Applications in Europe: PICADA is a research group which is partially funded by the European Union and comprises of companies and universities from England, France, Italy, Denmark and Greece, including CTG Italcementi, GTM Construction, Millennium Chemicals and the Aristotle University of Thessaloniki. They have produced numerous photocatalytically active materials with one in particular even entering into the commercial market, TxActive, produced by Ital Cementi, which is a photocatalytic cement. Some of the results of their work have been published. They compared a 10mm thick mortar rendering (mixture of cement lime and sand) and a 1mm thick mineral paint (mixture of cement and fillers) which were compared with a standard concrete mix, CEN mortar. It is reported that both samples contained the same amount of titanium dioxide, in the anatase form, with an average crystallite size of 20nm. Some of their results are shown below.

Figure 2. Photocatalytic activity of the cement-based materials at 300 ng/LBTEX nominal concentration, PICADA Results. (Vallee, F, et al ,2004)

Another report from the PICADA group also studied the photocatalytic effects of two different photocatalytic paints intended to be used on cementious materials. (Maggos, Th. et al., 2005) The two paints considered were designated, C1 and T1. The first paint, C1 is a commercially available mineral paint (1mm thick) for aesthetic surfaces and contains about 3% wt of titanium dioxide. The second paint, T2 is a translucent paint obtained from

35

Millennium Chemicals Co. It's a water-based product using siloxanes as binders and contains 10% by volume of titanium dioxide. They found that during their macro experiments, in a 30m3 chamber, at 30 Co, 50% humidity and under 2.1 W/m2 that the degradation rates for the mineral and translucent paints were, 0.21g/m2/s and 0.06g/m2/s respectively. 4.2.1 Car Park Case Study A photocatalytic paint that was produced by Picada was tested in a real world scenario, in a closed off car park. A car was used to pollute the air and the ceiling was painted with a photocatalytic paint, which was illuminated by UV lamps. The volume of the car park was 917m3 and the surface area that was covered with paint was 322m2. The paint used contained 10% titanium dioxide and was provided by Millennium Chemicals. The tests recorded the concentration of NO and NO2 in the car park environment, also a blank test was performed, in which the UV lights were not turned on.

Lab scale tests using the same paint and the same irradiance showed complete destruction of NO, however the car park test did not perform as well. This is thought to be due to the fact that the car not only produces NO, but NO2 and other VOC which could have an inhibition effect on the TiO2 paint and the other pollutants will also be degraded by TiO2 and occupy reaction sites which could otherwise be used for NO. Even so the photocatalytic removal of NO and NO2 was about 19% and 20%, respectively, while the corresponding photocatalytic rate (gm-2s-1) ranged between 0.05 and 0.13 and between 0.09 and 0.16 respectively.

36

Figure 5. Percentage of NO removal during laboratory scale experiments. (Maggos et al, 2007)

4.3 Applications in America The Houston Advanced Research Centre is also involved in the study of using titanium dioxide surfaces as a means of degrading NOx and VOC gases. Detailed instructions of how they manufactured the concrete slabs that they tested, the titanium powder that they used and their methodology is all included in their report. (Daniel H, 2007) For the experiments that were run, a constant stream of NO gas was pumped through the reactive chamber and the outlet stream was measured for NO concentration. Consequently the photoreactive concrete only had a limited time in which to degrade the NO gas.

Figure 6. NO and NO2 concentrations versus time, (Daniel H. Chen, 2007)

5 SELF-CLEANING EFFECT OF TITANIUM DIOXIDE SURFACES Titanium dioxide surfaces have been shown to also display self-cleaning properties. It is the same hydroxyl radicals or reactive oxygen species which oxidise pollutants that are able to oxidise material which could dirty the surface, such as organic compounds and other soilants. Rhodamine B is a dye that is most commonly used for testing the self-cleaning properties of such surfaces, the reason being that it is a stubborn pollutant which has a strong a* colourmetric value. Several high profile buildings have been built by such products such as Dives in Misericordia Church, Rome, Italy, shown in the figure below and Cite de la musique, Chambery, France.

37

Colourimetric measurements have been taken of these buildings over a period of over 2 years and the conclusion is that the photocatalytic cement displays a desoiling effect and that the colour of the cement can be preserved. Photocatalytic surfaces are also superhyrdophilic and have contact angles with water of nearly 0o, which causes water to fully wet the surface and aids in the cleaning of the surface of dirt or compounds which cannot be degraded photocatalytically. (Yu et al, 2001)

Figure 7. Dives in Misericordia Church, Rome, Italy. (The active photocatalytic principle)

6 ENCHANING THE PHOTOCATALYTIC PROPERTIES OF TITANIUM DIOXIDE While it has been shown that titanium dioxide surfaces perform while under direct sunlight, it is only a small portion of the visible light spectrum with which the surface reacts. Light of a wavelength of lower than 388nm is required to activate the surface, this corresponds to less than 5% of the visible light spectrum. Considering the potential that such surfaces offer, a great deal of research has been done in order to firstly enhance the effectiveness of TiO2 and secondly to expand the range of light with which it reacts into longer wavelengths. Unfortunately the manner in which such surfaces were produced within the literature varies greatly as well as the pollutants against which they were tested. Consequently comparisons of performance of modifications are difficult to make and justify. (Zainal et al, 2004)

38

Chromium and vanadium doping have been shown to significantly improve the photocatalytic properties of titanium dioxide, as well as many other ions. Much research is currently being done on trying to improve the performance of titanium dioxide surfaces through doping. Recently co-doping, with more than one element has been tried and improvements have been recorded using bromine and chlorine. 7 POTENTIALLY HARMFULL BYPRODUCTS There is significant evidence to suggest that several harmful by products may be formed by the general photocatalysis performed by titanium dioxide. Of considerable concern is the oxidation of NO to form NO2 as well as the formation of ozone and carbon monoxide. (Daniel, H, et al, 2007) However, NO2 can be further oxidized to form nitrate salts which are mostly harmless. Of more concern is the formation of ozone, O3, which is a highly toxic gas. (Gurol, 2006) It has been shown, through the research done by PICADA, that photocatalytic degradation of NO yields NO2 and some ozone. Also, the photocatalytic degradation of NO2 yields O3 and small amounts of NO. (Maggos, 2005) It should be noted that NOx and some VOC's are the main causes of tropospheric ozone and the degradation of such compounds will decrease the concentration of tropospheric ozone. Consequently, despite forming ozone, the net result could be a lower concentration of ozone due to the degradation of NO2, which is a main cause of tropospheric ozone.

39

Figure 10. NO2, O3 production through the degradation of NO. (Maggos, 2005)

Figure 11. O3 production through the degradation of NO2 . (Maggos, 2005)

8 CONCLUSIONS Titanium Dioxide has by far shown itself to be the most practical semi-conductor available for photocatalysis. The amount of literature available on this single semi-conductor is astounding with most authors in the field regarding titanium dioxide as the semi-conductor best suited for commercial applications. Indeed there are already a large number of commercial photocatalytic TiO2 products available. There is a great deal of research currently trying to improve the photocatalytic potential of titanium dioxide, both in effectiveness and in trying to expand the light spectrum with which it reacts into the visible range. The most common technique currently tried is to dope titanium dioxide with another element and more recently two elements, co-doping has been tried. However, many factors, within the preparation process of photocatalytic surfaces can have an impact on its photocatalytic ability. Also, the experiments conducted, often measure the effectiveness of such surfaces against different pollutants or even bacteria, such as, e-coli or to decompose methylene blue, rhodamine, acetaldehyde, NOx, or any number of a multitude of other organic pollutants. Consequently, comparing results from such experiments can be difficult and speculative.

40

However, virtually all studies confirm its photocatalytic potential for pollution abatement, selfcleaning, and anti-bacterial effects, leaving many well known authors very excited about the potential of this semi-conductor. It is expected that research in this field will grow as will the availability of commercial products. 9 REFERENCES Anpo, M. 1997. Photocatalysis on titanium oxide catalysts Approaches in achieving highly efficient reactions and realizing the use of visible light, Catalysis Surveys from Japan, Baltzer Science Publishers BV. Banerjeel, S., Gopal, J., Muraleedharan, P., Tyagi, A, K., and Raj1, B. 2006. Physics and chemistry of photocatalytic titanium dioxide: Visualization of bactericidal activity using atomic force microscopy, Current Science, Vol. 90, No. 10, 25 May. Carp, O., Huisman, C.L and Reller, A. 2004. Photoinduced reactivity of titanium dioxide, Progress in Solid State Chemistry, Vol.32, pgs. 33-177. Daniel H. Chen., Kuyen Li. And Robert Yuan. 2007. Photocatalytic Coating on Road Pavements/Structures for NOx Abatement, Annual Project Report Submitted to Houston Advanced Research Center and Office of Air Quality Planning and Standards U.S. Environmental Protection Agency. Fujishima, A., Hashimoto, K. and Watanabe, T. 1997. TiO2 Photocatalysis, Fundamentals and Applications, BKC, Inc. 4-5-11 Ku-danminami Chiyoda-ku, Tokyo, 102-0074 Japan. Gurol, M, D. 2006. Photo-catalytic construction of materials and reduction in air pollutants. Report from California State University Faculty Research Fellows Program. Kaneko, M., and Okura, I. 2002. Photocatalysis, Science and Technology, Kodansha Ltd., Tokyo, Springer-Verlag Berlin Heidelberg New York. Maggos, T, h. 2005. Investigation of TiO2 containing Construction Materials for the Decomposition of NOx in Environmental Chambers, Urban Air Quality Conference, Valencia, Spain. Maggos, T, h., Bartzis, J, G., Liakou, M., and Gobin, C. 2007. Photocatalytic degradation of NOx gases using TiO2-containing paint: A real scale study, Journal of Hazardous Materials Vol.146, pgs. 668-673. Mills, A., LeHunte, S. 1997. J. Photochem. Photobiol. A: Chem. Vol.108, pg.1. Mills, A., Elliott, N., Parkin, I.P., ONeill, S.A., Clark, R.J. 2002. Novel TiO2 CVD films for semiconductor photocatalysis, Journal of Photochemistry and Photobiology, Vol.151, pgs. 171-179. Ohko, Y., Fujishima, A and Hashimoto, K. 1998. Kinetic Analysis of the Photocatalytic Degradation of Gas-Phase 2-Propanol under Mass Transport-Limited Conditions with a TiO2 Film Photocatalyst, J. Phys. Chem, Vol.102, pgs. 1724.1729. Shah, S, I., Li, W., Huang, C, P., Jung, O., and Ni, C. 2002. Study of Nd3, Pd2, Pt4, and Fe3 dopant effect on photoreactivity of TiO2 nanoparticles, PNAS Vol.99 suppl. 2, pgs 6482-6486.

41

The active photocatalytic principle, Report, Italcementi Group. Yu, J, C., Yu, J., Ho, W. and Zhao, J. 2001. Light-induced super-hydrophilicity and photocatalytic activity of mesoporous TiO2 thin films, Journal of Photochemistry and Photobiology A: Chemistry 148 pgs. 331339. Zainal, Z., Lee, C, Y., Hussein, M, Z., Kassim, A and Nor Azah Yusof. 2004. Electrochemicalassisted photodegradation of dye on TiO2 thin films: investigation on the effect of operational parameters, Journal of Hazardous Materials B118 pgs. 197203.

42

THE IMPACT OF HIV/AIDS ON SKILLS AVAILABILITY IN SOUTH AFRICAN COAL MINES

Kyereh KT1, Hoffman DJ2
1 2

Venn & Milford Incorporated Project Services, kwakukyereh@venn-milford.co.za Tel No. 011-440 0950 Department of Construction Economics, University of Pretoria, danie.hoffman@up.ac.za, Tel No. 012-420 2551

ABSTRACT Purpose of this Paper: South Africa has 5.3 million HIV positive people within the economic active age group of 15 - 49 years. This statistic threatens to significantly deprive the economy of its workforce and its skills base. By 2005 it was believed that a third of all South African mine workers were HIV positive, resulting in absenteeism and loss in productivity. By 2015, it is projected that 8 out of 9 deaths on mines will be due to AIDS-related diseases. The Coal Mining Sector accounted for 1.2% of South Africas GDP in 2005, and directly employed 56 871 people. Therefore, the impact of AIDS on skills within the Coal Mining sector can be very damaging to the economy at large. This paper investigates the general level of skills availability on South African opencast coal mines, and assesses the extent to which this has been affected by HIV/AIDS. Methodology/Scope - The research will be based on data regarding skills, absenteeism, cost of health care and labour turnover at the mines as well as unstructured and semi-structured interviews with mine officials and site contractors. Findings The stated hypothesis to the above investigation is that HIV/AIDS is having a significantly negative effect on the availability of skills within the opencast coal mining sector. However, preliminary findings only indicate a minimal effect. An analysis of the data, as well as some explanations for the findings is provided. Research limitations - The research included only specific coal mines. Suggestions for future research: The effect on labour-intensive gold mines, the efficiency of mines information systems and strategies for addressing the threat to skills in the industry. Practical implications Coal mines have embarked on vigorous educational programmes to inform their employees of the dangers of HIV. However, these education programmes must not only be limited to their employees but must be extended to the community at large as these will be the communities where they are most likely to recruit new staff members Value - Very little industry-specific research has been done. Skill shortages may become critical shortly and this research can stimulate awareness and prompt action. Keywords: HIV, AIDS, coal mines, productivity, skill levels. 1. INTRODUCTION Since the first recognised cases of HIV/AIDS in USA in the early 1980s, AIDS has become one of the most important public sector concerns in contemporary society. According to data released by the Joint United Nations Programme on HIV/AIDS (UNAIDS), there are an estimated 39.5 million people living with HIV globally. However, HIV/AIDS has had its greatest impact in Sub-Saharan Africa; which is home to 24.7 million people living with AIDS. Although the region is home to less
43

than 10% of the world population, it accounts for more than 62% of the global population infected with HIV. The epicentre of the epidemic in Sub-Saharan Africa is in Southern Africa. South Africa had a late outbreak of HIV/AIDS, but has since become one of the hardest hit countries (Pembrey, 2006). According to UNAIDS (2006), the AIDS epidemic in South Africa is growing faster than anywhere else in the world. In terms of numbers, South Africa has one of the world's largest populations of HIV. According to a report published by UNAIDS in December 2006, it was estimated that out of an official population of 47 million: 5.5 million South Africans were HIV- positive in 2005. 5.3 million were in the economically active age group (between the ages of 15-49 years), amounting to an estimated 18.8% of the total adult population. 320 000 AIDS-related deaths had occurred in South Africa in 2005.

According to Bollinger (1999), the two major economic impacts of HIV/AIDS are the reduction in labour supply and the increase in labour cost. Bollinger (1999) further states that South African companies stand to loose revenue due to high absenteeism as a result of illness, time off to attend funerals, time spent in training of new labour, and high labour turn-over. Such a turn of events is likely to affect all labour intensive industries (van Aardt, 2004). The Mining Industry employed 442 911 people in 2005 (Chamber of Mines, 2006). In that year it was believed that a third of South African miners were HIV-positive, resulting in regular absenteeism and loss in productivity. The high infection rates of HIV/AIDS in mine workers together with the related incidence of illness and death means that mines will loose between 5-10% of their workforce each year (Fourie, 2006; Davies et al, 2002). In 2005 the South African coal mining sector alone generated R36 billion in revenue sales. This was the second largest component of the South African mining industry. The coal produced by the coal mining sector is used to generate 93% of South Africas electricity. It is also used to produce approximately 30% of the countrys liquid fuel production. The coal mining sector directly accounted for 1,2% of South Africas Gross Domestic Product (GDP) and directly employed 56 971 people in 2005 (Chamber of Mines, 2006). It is therefore reasonable to assume that, if AIDS has a significant impact on the availability of skills in the coal mining industry, the effect will be very damaging to the industry as a whole (Davies et al, 2002). Mining companies will be required to provide pecuniary resources to cope with mine health. By 2015 it is estimated that for every single normal death on a mine there will be eight mine workers dead or dying from AIDS related diseases (Fourie, 2006: 37). It is estimated that in the next five years South African mines will require about 20% more mine workers to maintain normal production levels and to replace workers in key positions that suddenly become ill and die (Fourie, 2006: 37). This paper investigates the impact of HIV/AIDS on skills availability in South African opencast coal mines in terms of regular absenteeism, increased labour costs (recruitment costs and training costs) and high staff turnover. 2. BACKGROUND The loss of skills along with increased absenteeism, increased staff turnover, loss of tacit knowledge and declining morale as a result of HIV/AIDS will contribute to the declining levels of productivity in an organisation. Transmission of skills becomes more difficult with high levels of staff turnover,
44

and morale can be severely affected by the loss of colleagues. These less visible factors build up over longer time frames and are critical for a more efficient, effective, and ultimately productive workforce (Daly, 2000: 16). HIV/AIDS will also result in increased costs for a company in the form of insurance cover, retirement fund claims, health and safety claims, medical assistance, increased demand for training, recruitment and funeral costs. These will lead to an increase in production costs for the business, which will have a direct impact on current profit margins and future profits by reducing the investment capacity for increasing productivity, expansion, research, development, workforce training and support (Daly, 2000: 16). Although substantial, the direct cost of HIV/AIDS is likely to be dwarfed by the indirect cost thereof; particularly those costs relating to income and productivity (FitzSimons, 1993). According to (ILO, 2005), unauthorised absenteeism due to illness is on the increase in the South African Coal Mining sector and this is affecting production and productivity. Coal Mining involves the removal of large volumes of earth, dressing and treatment of minerals which includes underground as well as opencast mines. The mining of coal remains labour intensive (ILO, 2005). Labour intensive organisations will have a higher risk of lost production as a result of HIV/AIDS. The impact will however also depend on the ease with which skills can be replaced. It therefore follows that a labour intensive industry requiring high levels of skills will find it very costly to retrain replacement staff. However, low skill industries will more easily be able to find replacement employees from the large pool of unemployed labour. Goldmine employees have borne the brunt of the HIV epidemic, but because there is relatively little task specialisation, production has not been significantly affected. If the same were to occur in coal mines, the loss of a few operators could lead to a substantial loss in production, since coal mining employees comprise of a small number of machine operators each performing specialised tasks. AIDS is likely to affect production by reducing the number of people available to do the necessary tasks (Steinberg et al, 2001). The impact of HIV on productivity is difficult to measure accurately and it is even more difficult to estimate the compounding effect of declining productivity over time (Brink, 2003). Absenteeism, delays in finding replacement workers, disruption of teams, loss of experience and skills and adjustment problems will increase the possibility of idle machinery and slow down production, thereby reducing productivity (BER, 2006). 3. SKILLS AVAILABILITY IN SOUTH AFRICA MINING SECTOR
Qualifications of the South African Workforce No Formal Education 6%

Post Matric 15% Matric 26%

Less Than Matric 53%

Figure 1: Qualifications of the South African Workforce (Based on data taken from DOL, 2006) South Africa is a labour surplus country with an estimated workforce of 20.1 million. Although 94% of the workforce has been to school, 53% of the total workforce withdraws from school before
45

matric (see Figure 1). Therefore, although there is a labour surplus, the lack of quality education provided to the general population has created a shortage of skilled labour in the South African workforce. In addition the replacement demand arising from nett migration, movement to other occupations and in-service mortality given the low rate of economic growth in South Africa, coupled with high mortality will result in the replacement demand exceeding the supply of skilled labour (Woolard, Kneebone & Lee, 2003). 3.1. Scarce Skills In the period of 1 April 2006 to 31 March 2007 the mining industry was unable to fill 12 422 vacant positions, of which 1950 positions were from the coal mining sub-sector (MQA, 2007). Most of these vacancies were for technicians and trades workers, professionals, machine operators and drivers. According to the same study, candidates for managerial positions are also usually taken from the post of skilled personnel, thus making the shortages of professionals such as engineers even bigger. Furthermore, legislation requires that the Mining Sector comply with strict health and safety regulations, therefore operations can only be performed by specific personnel who are in possession of specific qualifications. This further limits the pool from which employers can recruit personnel, further contributing to the labour shortage in the sector. The vacancies reported by employers are typically for highly skilled personnel who have gone through a formal education system that takes up to four years (MQA, 2007). 3.2. Impact of HIV/AIDS on Skilled Labour in the Mining Sector There are no reliable estimates of HIV infections per skills category available. It is however believed that HIV prevalence is highest amongst semi-skilled and unskilled workers, and lowest amongst skilled workers (BER, 2006:9). Therefore the impact of HIV/AIDS on the mining industry could be damaging considering that 96% of the entire mining workforce are considered to be semiskilled or unskilled. This is illustrated in Figure 2.
PERCENTAGE COMPOSITION OF SKILLS IN MINING INDUSTRY

Unskilled 7%

Professionals/ Skilled 4%

Semi-Skilled 89%

Figure 2: Percentage composition of skills in the Mining Industry (Source DOL, 2004) 4. RESEARCH METHODOLOGY For the purpose of this study, both qualitative and quantitative approaches were adopted hence incorporating triangulation which is the method of combining qualitative and quantitative approaches. These approaches are explained in the following subsections.

46

4.1. Qualitative and quantitative approaches The rationale behind the choice of this method is that it will enable a more thorough understanding of the influence of HIV / AIDS on skills availability on South African coal mines. The respondents will be unfolding their daily experiences relating to absenteeism, labour turnover, increase in employee cost associated with the declining level of skills due to HIV / AIDS on South African coal mines. Furthermore, qualitative research as an approach will facilitate an understanding of social phenomena from the perspectives of the participants (White, 2005:81). Data is mainly collected through ethnographic and descriptive interviews. A quantitative approach deals with data that is mainly statistical. Descriptive research will be the quantitative method used in the collection of data. 4.2. Population and sample It could be argued that the population for this study consists of all mine workers working in South African opencast coal mines irrespective of their post levels. For the quantitative sample the size of the population is too large, therefore the researcher has opted to choose seven specialist mining contracting companies specialising in bulk earthworks removal, discard management operations, coal washing, coal extraction and coal crushing. The purposive sampling method which is a form of non-probability sampling was used in selecting the qualitative sample of eight management officials from varying collieries within a Coal Mining Group for interviews. Due to the sensitivity of the information, the people and companies interviewed are not named. All the participants were asked the same questions (but different to those interviewed coincidentally) from which the information regarding HIV / AIDS and its impact on skills availability on South African opencast coal mines was to be generated. 4.3. Data Collection The use of different methods of data collection is likely to increase the validity and the reliability of the data. Data was collected from companies operating in the coal mining industry in the form of questionnaires and interviews. The insight gained from the literature study regarding the topic, namely the impact of HIV / AIDS on availability of skilled labour in South African coal mines, was used to develop and design the questionnaire. The researcher consulted primary resources such as circulars, books, the internet and other relevant sources. The unstructured interview as qualitative approach was employed since it has been diversely described as naturalistic, autobiographical, indepth, narrative or non-directive. The semi-structured interview, which is a dual purpose technique was also employed since it can collect factual information and at the same time gain deeper insight into specific aspects through the asking of additional questions. Data collection was conducted on a one-to-one basis and also via emails since the researcher intended to obtain information in a conducive, but yet diplomatic manner leaving room for freedom of expression. Interviews were carried out between August and October 2007. 4.4. Data analysis Comprehensive use of field notes in the form of detailed notes made by hand, tape recordings, and observations, were compiled during qualitative interviewing. In order to analyse the raw field notes, these were processed. This entailed converting the notes into write ups which were then edited for accuracy, commented on and analysed. The researcher also analysed the literature from other theoreticians. Quantitative data analysis came from the descriptive statistics. . A pilot study was initially conducted on four civil contractors excluded from the sample, in order to check the consistency of the items in the questionnaire. Validity within this study was ensured by the researcher using the correct sampling procedures and selecting the correct data-collection instruments. Reliability was ensured by the use of a simple language in the interviews and questionnaires while ambiguous questions and instructions were avoided.
47

5. ANALYSES OF DATA Interviews were conducted with senior officials from an International coal mining group which shall be referred to as Mining Group 1 (MG1). The senior officials consisted of two Mine Managers, a Financial Manager, a Human Resource Manager, a Planning Manager, a HIV/AIDS Coordinator and an Engineering Manager. In addition an interview was conducted with the Senior Vice President of Mining Group 1 who is also a pioneer of the groups HIV initiatives for its employees. Interviews were also conducted with senior management of five specialist mining contracting companies specialising in bulk earthworks removal, discard management operations, coal washing, coal extraction and coal crushing. In addition questionnaires were also issued to seven specialist contractors to ascertain a quantitative basis to the qualitative information obtained from the interviews. In some cases the results of the questionnaires contradicts the answers given in the given by the interviewees. The questionnaires were issued only to directors of the specialist contracting companies as the information required to complete it may not have been at the privy of middle or lower management. Each of the companies agreed that there may be a future problem with the looming HIV/AIDS infection rates in the country, but agreed that this has not had an effect on their overall productivity as a company. The company representatives did however indicate that the effect of HIV/AIDS had been noted amongst some labourers, but acknowledged that the effects were not so significant as to affect their current productivity. 5.1. HIV/AIDS Related Costs According to a Financial Manager at one of the collieries in MG1 it now costs more to produce a ton of coal due to the mine having to provide ART to HIV positive employees. The Financial manager also stressed that the costs of not taking any action against HIV/AIDS will far outweigh the costs of treating all HIV positive workers with anti-retroviral therapy (ART). This argument is supported by the Senior Vice President (SVP) of MG1 who argues that it simply makes business sense to provide ART for employees and the costs they are incurring is worth it. Current cost of treatment over 3 years of the ART programme is estimated at R1001 per patient per month According to a Mine Manager in MG1 the cost of providing ART has been added to the mines operating costs therefore the mine does not see it as a separate cost. He further stated that according to their voluntary counselling and testing (VCT) on the mine only one person on the mine has turned positive who was previously negative in the last year. . The specialist contracting companies stated that they have not had significant increases in the medical costs as a result of HIV. Of the seven contractors included in the questionnaire, six did not provide any form of medical assistance to foremen or operators. In most cases where medical aid is provided it is only provided to the highly skilled personnel; healthcare benefits are generally not provided to semi-skilled and unskilled personnel. One company did note that all doctors consultation is paid for. There is a contradiction with regards to the answers given in the questionnaire and the answers given in the interviews with regards to VCT. In the questionnaire all the companies marked that they do encourage VCT. However, the feedback with regards to the interviews was rather different. Since the majority of the contracting companies do not provide medical assistance to lower level employees they avoid encouraging their staff to participate in VCTs as they do not want to bear

48

responsibility for the employee being positive. They believe that there would be a moral obligation for them to provide ART if they encourage their employees to participate in VCTs. All the contractors reported that they have not had significant increases in their costs resulting from employees claiming their medical benefits. This has been attributed to medical benefits not being provided to the employees, who are most susceptible to HIV/AIDS (those who do the physical work i.e. operate the machines). The contractors however reported that they have incurred other costs due to AIDS. Contractors noted that if a person becomes sick with HIV/AIDS and is unable to perform his/her duties, the employee will be moved to another job where he/she can still be of use to the company. They however admitted that the productivity of the infected person reduces but their salary is held firm for the duration that the employee stays with company. They reported that no employee is dismissed on the basis of their HIV status. Although the contracting companies do not dismiss their employees due to HIV/AIDS, they may not have to bear the wage cost of holding onto the ineffective employee for long as they do not provide medical treatment. One contractor stated that an employee will look fine and work efficiently, but may be dead within two weeks after first showing symptoms of the disease (HIV/AIDS). The contractors therefore experience little additional cost due to loss in productivity. 5.2. Productivity According to the two Mine Managers interviewed AIDS has had little or no impact on productivity at their mine site. They attribute this to the VCT policy working well and the provision of ART for all employees who test positive. There was consensus amongst the contractors that there is a surplus of labour in the country and this makes it easy for them to get new workers into the system. They however stressed that the loss of a good operator will reduce productivity. One contractor stressed that it takes about two weeks training to get a new machine operator up to speed with regards to what is happening on the mine. Another contractor stressed that although AIDS has not significantly affected their productivity, the disease is affecting the company financially in the form of medical costs and the re-training of new staff. He further reiterated that when a new operator starts due to safety reasons the new operator will not work nightshift and will thus only work dayshift leading to a loss in productive time from the new operator. Six of the seven contractors reported that HIV had affected their labour productivity in the past year. It must be noted that the only contractor who did not report an impact on productivity is also the only contractor that provides ART to employees. For those who reported that HIV/AIDS has had an impact on their productivity they also reported that the impact has been marginal or slight. 5.3. Labour Turnover Three officials including the SVP of MG1 stressed that the skills shortage currently being experienced in the coal mining industry is not as a result of HIV, but rather as a result of the rapid expansion of the industry and inadequate training of new personnel during the dormant periods. This opinion was supported by an engineering manager at another Mining Group. Approximately 50% of the contractors reported that they had a high degree of labour turnover. However, of these companies only a small percentage of their labour turnover was attributed to HIV/AIDS.

49

Reasons for Labour Turnover in the Work-Force

HIV/AIDS 5%

Other 11%

Booming Industry 84%

Figure 3: Reasons for the Labour Turnover in the Workforce The companies attributed 84% of their labour turnover to the booming industry, 11% was due to other factors such as resignations and absconding. Only 5% of their labour turnover was attributed to HIV/AIDS, which is illustrated in Figure 3. However, one company reported that as much as 47 employees have absconded from January 2007 to October 2007 out of a staff compliment of 890. All seven companies concurred that HIV/AIDS will increase future labour demand. The seven companies also concurred that they foresee appointing more employees to compensate for the loss in skills due to HIV/AIDS. However, none of the companies have estimates of what the incurred costs will be to their company. 5.4. HIV/AIDS and Absenteeism The officials at MG1 reported that high levels of absenteeism could not always be directly attributed to HIV/AIDS. Officials did however report that when employees first start ART they may need a month off (depending on the patient) for their bodies to adapt to the medication and for them to regain their strength. After this stage, the HIV positive employee may only require one or two days off for regular check-ups. It was however stressed by the AIDS co-ordinator that some patients discontinue medication at the first signs of recovery. This will then lead to the HIV positive employee falling sick again.
ART START
5 .0 0 4 .5 0 4 .0 0

Sick Days Per Month

3 .5 0 3 .0 0 2 .5 0 2 .0 0 1 .5 0 1 .0 0 0 .5 0 -

12

15

18

21

-2

-1

-1

Time (Months) Figure 4: HIV positive employee absenteeism patterns two years before ART treatment and two years after ART treatment (Source: Aurum Institute, 2007)
50

-1

-2

24

-9

-6

-3

When ART is instituted to the HIV positive employee within a two year period, their absenteeism levels are comparable to their absenteeism levels before they started falling ill. This is illustrated in Figure 4. All the contractors answered that they do not have any information with regards to the HIV status of their employees. Whilst contractors reported that they did not have any information with regards to the HIV status of their employees some reported that they may loose as many as 8 people a year due to HIV/AIDS. However, this is less than 1% of the total staff compliment. The researcher estimates that this is a guessed figure as the contractors do not really know and this figure could be significantly more. Five of the seven contractors reported that they have not had high degrees of absenteeism due to HIV and the high absenteeism which they encounter they do not attribute to sickness due to HIV. The companies reported that they usually have a high absenteeism rate typically after pay weekends and due to seasonal illnesses (for example colds and flu). Only one contractor attributed the high absenteeism to HIV/AIDS. 6. CONCLUSION The hypothesis provides that HIV/AIDS will have a significantly negative impact on skills availability in opencast South African coal mines. However, based on the analysis of the interviews and questionnaires it is concluded that AIDS has had minimal or no effect on skills availability in opencast coal mines. MG1 have attributed this to the provision of ART and a proper HIV programme. The specialist contractors have however attributed this to the ease with which skills can be replaced due to the abundance of unemployed labour. REFERENCES 1. 2. Aurum Institute. 2007. HIV/ART Economic Analysis. South Africa. Aurum Institute Bloom ED, Mahal A & River Path Association. 2001. HIV/AIDS and the private sector A literature review. USA. American foundation for AIDS research. Bollinger L, Stover J, 1999. The Economic Impact of AIDS in South Africa. Glastonbury: Futures Group. Brink B. 2003. Response to HIV/Aids in South Africa: A business perspective. Anglo American Corporation of South Africa Limited. Labour Markets and Social Frontiers: Number 4 South African Reserve Bank (pages 9-13). Bureau for Economic Research. 2006. The Macroeconomic Impact of HIV/AIDS under alternative intervention scenarios (with specific reference to ART) on the South African Economy. South Africa. University of Stellenbosh. Chamber of Mines. 2006. Chamber of Mines 2005-2006 Annual Report. South Africa. Chamber of Mines South Africa. Daly K, 2000. The Business Response to HIV/AIDS: Impact of lessons learned. Jointly produced by: The Joint United Nations programmed on HIV/AIDS; The Prince of Wales business leaders forum and the Global business council on HIV & AIDS. Davies J.R, Deysel M, de Bruin D.G, Strydom M. 2002. The South African Industry Enters the HIV War Zone. Rand Africans University. Department of Accounting
51

3.

4.

5.

6.

7.

8.

9.

Department of Labour (DOL). 2004. State of skills in South Africa 2003. South African Government. Department of Labour Department of Labour (DOL). 2006. State of skills in South Africa 2005. South African Government. Department of Labour Department of Labour. 2007. State of skills in South Africa 2006. South African Government. Department of Labour Fourie P. 2006. The Political Management of HIV and AIDS in South Africa; One burden too Many?. New York, Palgrave Macmillan. FitzSimons, D. 1993. The Global Pandemic of AIDS. Cross S & Whiteside A (Eds). Facing up to AIDS. The Socio-Economic Impact in Southern Africa(pp 13-33). Great Britain. The Macmillan Press LTD. Joint United Nations Programme on HIV/AIDS (UNAIDS). 2006. AIDS Epidemic Update. United Nations. International Labour Organisation. 2005. Workshop on developing strategies for implementing HIV/AIDS Policy and Programmes in the Coal Mining Sector in India, 2223 November 2005. Mining Qualification Authority (MQA). 2007. Study of Scarce Skills and Critical Skills Needs in the Mining and Mineral Sector. South Africa. Research Focus. Steinberg M, Kinghorn A, Soderlund N, Schierhout G, Conway S, Abt Associates. 2001. HIV/AIDS facts, figures and the future. van Aardt C.J. 2004. The Projected Impact of HIV/AIDS in South Africa, 2003-2015, University of South Africa. Bureau of Market Research.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19. 20.

White C.J. 2005. Research: A practical guide. Pretoria. Tshwane University of Technology Whiteside A. 2005. The economic impact of AIDS, Karim S.S & Karim Q.A (Eds), HIV/AIDS in South Africa (pp405-422). Cambridge. Cambridge University Press. Woolard I, Kneebone P & Lee D. 2003. Forecasting the demand for scarce labour, 20012006. HRD Review 2003 Chapter 20 Scarce Skills (pp458-475). South Africa. Human Sciences Research Council. Pembrey G. 2006. HIV and AIDS in South http://www.avert.org/hiv&aidsinsouthafrica.htm (Accessed: 23 March 2007). Africa.

21.

22.

52

THE ROLE OF TOTAL QUALITY MANAGEMENT AS A KEY INTERVENTION IN SMALL CONSTRUCTION CONTRACTOR CAPACITY BUILDING IN SOUTH AFRICA
Hauptfleisch, A. C:
1

Department of Quantity Surveying and Construction Management, University of the Free State, ach@ecospan.co.za, Tel No. 012-8083360

ABSTRACT
Purpose of this paper - South Africa experiences consistent economic growth that stimulates construction. But, the industry lacks skills and support structures for entrepreneurial development. Government intervened to create an enabling environment for previously (pre-1994 democracy) disadvantaged persons to enter the construction industry as emerging (small) contractors. Many resulting programmes were unsuccessful. Methodology/Scope - A holistic and fully integrated project management approach was required to address the shortcomings. A Total Quality Management (TQM) strategy was developed as a key component of an Integrated Emerging Contractor Development Model (IECDM). A 24-month IECDM programme was introduced to cover an entire province. Findings - Constant measuring of outcomes provided quantified and qualified data for analysis that dictated managerial interventions. The successful outcomes of the IECDM resulted in a follow-up programme to be launched in 2008. The results are also under consideration as input to the creation of a national best practice model. Value The methodology followed in this research to quantify the development and capacity outcomes regarding emerging contractor development in South Africa is unique and the first of its kind. The measurement tools used were all part of an overall total quality management strategy, ensuring that continuous management of outcomes delivered the required results.

Key words: Capacity building, emerging (small) construction contractors, enabling environment, mentoring, project management, Total Quality Management.

INTRODUCTION Numerous attempts by a variety of agencies were undertaken in South Africa to develop small (emerging) construction contractors (ECs) that were disadvantaged in the pre-democratic era in South Africa before 1994. Accelerated development of ECs generally had little success, mainly due to the fragmented nature of such attempts. An Integrated Emerging Contractor Development Model (IECDM) was created, in conjunction with the author, to address the problems experienced in developing self-sustainable construction contractors for the construction industry. The industry suffers from a lack of capacity, whilst previously disadvantaged persons are in need of support to improve their entrepreneurial development, managerial and technical skills, in order to become self reliant. This model was developed for the Eastern Cape Development Corporation (ECDC) and introduced throughout the Eastern Cape Province, South Africa, as the first holistic approach.

The problem to create an IECDM consisted of three sub problems, being firstly to identify supportive legislation, secondly to identify all the possible role players that could be sourced in
53

support of the holistic IECDM and thirdly to structure the programme, that was introduced, in such a way that the outcomes could be measured and the results acted upon. The methodology applied entailed that all possible role players/agencies that could contribute to the development/empowerment of ECs were identified and their probable contributions assessed. Cognisance was taken of all legislative and other initiatives taken by government in order to create an enabling environment for ECs. The fact that these government directives are generally accepted as roadmaps for the upliftment of people in South Africa, made the introduction of the IECDM acceptable to the identified role players and other stakeholders. The Total Quality Management tool devised for the programme was based on the identification of knowledge areas and application thereof to be mastered by the ECs. These knowledge areas (45) were placed on an assessment schedule, with provision for non-quantified information to be provided. Each of the 45 knowledge areas was assessed monthly, according to a 10-point scale by the relevant mentor for each contractor. Areas of weakness were identified for each contractor and acted upon as described later. The data collected for all contractors was statistically processed and presented diagrammatically for each EC, each region and for the province as a whole. The contributions of each role player/stakeholder in the IECDM are described, following Figure 1, which presents the complete model. Figure 4 is a diagrammatic (overall) example of the quantified data result that was continually obtained as managerial input. A first follow-up assessment regarding role player perspectives on the post-IECDM period has been done and is reported in this paper. The conclusions drawn and recommendations made are thus based on the programme as a whole, including the follow-up investigation done, particularly also discounting the qualitative data provided by mentors. It is therefore broader based than the confined information contained in this paper. The client for this programme, the ECDC, has confirmed their satisfaction with the outcomes of the IECDM and has decided to launch a repeat programme in 2008. The conclusions and recommendations that emanated from the programme reported on in this paper will form part of the follow-up 2008 programme strategies. Enhanced data collection and processing will also be introduced. STRUCTURAL INTERVENTIONS Government, and other organs of state have made the following structural interventions, in order to create an enabling environment for the rapid development of, inter alia, construction contractors (summarised by Hauptfleisch, 2006:2-3). These interventions were assimilated where possible in the development of the IECDM: Creating an enabling environment: Construction Industry Development Board (CIDB) The South African Government has adopted legislation to create an enabling environment, from which inter alia flowed the Construction Industry Development Board Act (Act 38 of 2000). The CIDB mandate that followed from the above legislation is encapsulated in the following abstract in the Construction Industry Development Board: Annual Report (2004/2005:12): Provide strategic direction and develop effective partnerships for growth, reform and improvement of the construction sector; Promote sustainable growth of the construction industry and the sustainable participation of the emerging sector.

54

Broad Based Black Economic Empowerment Government initiatives are further supported by the Broad Based Black Economic Empowerment Act (No 53 of 2003) (BBBEE, 2003:2) that is in the implementation phase, and reads as follows: To establish a legislative framework for the promotion of black economic empowerment; to empower the Minister to issue codes of good practice and to publish transformation charters; to establish the Black Economic Empowerment Advisory Council; and to provide for matters connected therewith. Construction Education and Training Authority The Skills Development Act (Act 97 of 1998) provides for the creation of a Sectoral Education and Training Authority (SETA) for each of the various economic sectors. The Construction Education and Training Authority (CETA) is responsible for the construction industry. A levy, expressed as a % of salaries and wages paid by employers, is placed in a fund that is applied in terms of stated guidelines, to ensure that education and training take place in the industry. STRUCTURING OF AN INTEGRATED EMERGING CONTRACTOR DEVELOPMENT MODEL The enabling environment that has been created, as overviewed above, leaves the construction fraternity with the challenge to create a working model to achieve the stated objectives within the unique demographics of South Africa. The IECDM is a serious attempt to put such a working model to the test (Hauptfleisch, 2006:4-8).
3.1. Project Manager

3.2 Client

3.6. Training Provider

3.4 Mentor

3.5 Ceta

3.3 Emerging Contractor

3.6 Mentor Based/EC Training

3.7 Banks 3.10 Sundry Professional Services

3.7 Khula/EDCD 3.8 CIDB

3.9 Quality Manager

Figure 1: Integrated Emerging Contractor Development Model Source: Hauptfleisch, 2006:5

The results obtained from the first practical introduction of the IECDM are reported in this paper.
55

Figure 1 is a diagrammatic presentation of the (IECDM), depicting the entire identified role players required in order to maximise the development of emerging contractors. SELECTION OF EMERGING CONTRACTORS, MENTORS AND TRAINING SERVICE PROVIDERS Emerging Contractors (ECs) Emerging Contractors for the programme were selected from applicants who responded to a comprehensive advertising campaign in the Eastern Cape. A good response was obtained and the assessment to identify the most suitable candidates was conducted by the Council for Scientific and Industrial Research (CSIR) in terms of the South African Construction Excellence Model (SACEM) guidelines. Approximately 60 candidates were advised of their selection, some of whom did not take up the offer. Further selection was executed and a final group of 54 was taken on board. The programme was then structured and launched from five centres. Mentors Mentors for the programme were selected by inviting applications via a province wide advertising campaign. All those who aspired to become mentors on the programme were subjected to the established Mentorship Accreditation Programme of the University of the Free State. Training Service Providers Three training service providers were selected from the CETA database in conjunction with CETA. Two of these were a source of continuous concern and turned out to be the weakest link in the programme, requiring constant management interventions to rectify. The third provider was excellent and maintained a very high standard. All the training providers however failed to create some key competencies with the contractors. TOTAL QUALITY MANAGEMENT (TQM): METHODOLOGY AND APPLICATION OF OUTCOMES Indabas (meetings) and TQM Visits In order to ensure that the required results were achieved a system of constant communication/contact was put in place. TQM being an important element of the IECDM, dictated that the entire development process of the contractors had to be managed constantly. Two activities were introduced to achieve this. Firstly, Indabas (meetings) were held in every centre, every three months, where all stakeholders were required to be present. Secondly, during the period between Indabas the TQM team visited every mentor, with the contractors assigned to each mentor present, in the offices of the mentor or on a construction project of the contractor, in order to monitor the progress of each contractor, to evaluate the interaction between mentor and contractors, to ensure that actual capacity building was taking place, to agree on corrective measures where deviations from stated objectives occurred and to generally monitor and manage the programme towards achieving the standards set. Manual for Small Construction Contractors The management team obtained permission from the Building Industries Federation South Africa (1990s), now Master Builders South Africa (MBSA), to adapt their Manual for Smaller Builders into a fit for purpose, for the IECDM, Manual for Small Construction Contractors (MSCC).

Quantified Data: Mentors Evaluation of Emerging Contractors and Others The MSCC was positioned to be a reference standard for the level of competency achieved by the contractors. The indexing of the manual was further used as reference for the monthly assessment
56

made by mentors of each contractors development level. Each knowledge area contained in the index as well as some others was taken up into a ten-point assessment scale that was then assessed on a monthly basis by every mentor for every contractor. This provided the management team with a wealth of sensors (45 knowledge areas) relating to every aspect of each contractors individual development. An effective progress measurement tool was thus created. Figure 2 is an example of the typical documentation completed monthly by the mentors. The results obtained were translated into statistical data for each contractor, combined for every region and for the IECDM as a whole. The statistical data was processed further through a computer programme, specifically designed by the CSIR for the IECDM, and presented in easily understandable diagrammatic presentations (see example, Figure 4). Quantified Data: Emerging Contractors Evaluation of Mentors and Others The emerging contractors were also afforded the opportunity to evaluate the mentors and other role players on the programme. Figure 3 reflects a typical example of the documentation completed by the ECs in order to solicit their views. Their feedback, reflecting the actual experience of the beneficiaries of the programme, was very valuable as TQM input and provided very specific insights that were also used to assist with the management of the programme. Management Development Programme After approximately twelve months it became evident from the data obtained from the mentors that the formal training component presented by the training service providers was not going to be sufficient to create self-sustainable contractors. Although the mentors primary task was to assist contractors with their businesses, and business development in general, it became imperative that their terms of reference had to be expanded and that they would have to become involved in assisting to resolve knowledge gaps experienced by the contractors. Having established shortcomings, the management team introduced a further development tool that was named the Management Development Programme (MDP). The MDP was structured in the format of a simple bar chart for the remainder of the IECDM programme. The underlying principle was to place each item contained in the MSCC on the bar chart, where after each contractors proficiency was evaluated by the mentor regarding each specific knowledge area in the MSCC. The mentors were then required to intervene and specifically oversee capacity creation in areas of weakness. This intervention is visually very evident from Figure 4, showing the specific impact of the MDP from June 2006 onwards. CONSTRUCTION EDUCATION AND TRAINING AUTHORITY (CETA) The Role of CETA As the statutory body responsible for training in the construction industry, it was obvious that CETA participation should be sought in the IECDM. It was agreed with CETA that the contractors on the IECDM would be accepted for training in order to earn a qualification, deviating from the normal tripartite agreement involving the contractor, a training provider and an employer. In this instance the ECDC was accepted as fulfilling the role of the employer, supported by the mentorship intervention. The Learnership that was selected for the IECDM is the NQF Level 2, Construction Contractor Learnership.

57

NAME OF EC:_______________________________________________________________ NAME OF MENTOR:_________________________________________________________ REGION:___________________________________________________________________ DESCRIPTION OF PROJECTS:_________________________________________________ DATE OF EVALUATION:______________________________________________________

PROGRESS EVALUATION: NQF LEVEL 2 The progress evaluation is based on a 10-point scale for which minimum standards to be achieved are determined by the Mentor and Emerging Construction Contractor Programme: Setting of Minimum Standards for Quality Assurance of Integrated ECDP. Progress evaluation is also required regarding a number of items not contained in the above programme, i.e. technical advancement (See item 4) The 10-point tick box scale to be utilized as follows (benchmarks only provided, use entire scale for evaluation). 1 = The EC is not capable at all to execute this activity independently 5 = EC is capable to execute this function with assistance 10 = EC is capable to execute this function independently on a sustainable basis ASPECTS TO BE EVALUATED: DEVELOPMENT OF BUSINESS PROCESSES
1 2 3 4 5 6 7 8 9 10

SECTION 1: RUNNING A SMALL BUSINESS

A. ADMINISTRATION: 1. The Business plan: Development achieved

Comments:

____________________________________________________________________ ____________________________________________________________________

Figure 2: Mentors Monthly Evaluation of Emerging Contractor Source: Hauptfleisch, 2006. Training Methodology The training methodology followed consisted of a duel system, having a classroom training component and structured workplace experience, the latter supported by mentors. The classroom training was scheduled to take place over a 24-month period with two full days of training every week

58

EMERGING CONTRACTORS MONTHLY PROGRESS EVALUATION OF MENTORING PROCESS NAME OF EC: ________________________________________________________

NAME OF MENTOR _______________________________________________________ REGION: _______________________________________________________

DESCRIPTION OF PROJECTS:_________________________________________________ DATE OF EVALUATION:_____________________________________________________

PROGRESS EVLUATION: NQF LEVEL 2 The progress evaluation is based on a 10-point scale for which minimum standards to be achieved are set against the Mentor and Emerging Construction Contractor Programme: Setting of Minimum Standards for Quality Assurance of Integrated ECDP. The 10-point tick box scale to be utilized as follows (benchmarks only provided, use entire scale for evaluation). 1 = Poor 5 = Average 10 = Excellent 1. Evaluation of relationship with mentor and quality of support provided to EC
1 2 3 4 5 6 7 8 9 10

Comments: ________________________________________________________________ ______________________________________________________________

Figure 3: Emerging Contractors monthly Progress Evaluation of Mentoring Process Source: Hauptfleisch, 2006. QUANTITATIVE DATA: CSIR DIAGRAMMATIC PRESENTATION AND COMMENTS All the quantitative data generated during the programme (as discussed above) was submitted to the CSIR for processing. This element of the TQM process is unique and the first of its kind applied in order to continuously track, assess and manage programme outcomes when embarking on the accelerated development of beneficiaries in a learn and earn environment.

59

The most important outcome of the CSIR Report is that it conclusively shows that it is possible to set standards for all aspects of a development programme, measure the outcomes, assess deviations and take corrective steps based on the measured outcomes (TQM), during the life of the programme. One example of a diagrammatic presentation is shown below in Figure 4, providing a perspective of the overall ability developed by the contractors during the programme (CSIR CloseOut Report, 2007:1-22). Table 1 provides the scoring and ranking scales, as was determined in order to reflect the contractors' ability to manage a small construction business, termed Running a Small Business-Global Averages. Running a Small Business-Global Averages When viewed across the overall performance for the time under review (see Figure 4), October 2006 represents the highest rating at 59.7% (average, approaching very good performance). When compared to the 24.9% recorded in August 2005, through to June 2006 (being fair), the performance regarding this indicator has increased by almost 35 percentage points since the inception of the programme, mainly during the period June 2006 to October 2006. This represents a substantial increase in the ability of contractors to run a small construction business. This fairly dramatic improvement specifically co-insided with the introduction of the Management Development Programme (MDP), requesting mentors to identify knowledge weaknesses and to take steps to rectify it (TQM), underscoring the mentors contribution in capacity generation.

Introduction of MDP Figure 4: Running a Small Business Global Averages Source: CSIR, 2007. Table 1: Scoring and Ranking Score Performance
0-20% 21-40% 41-60% 61%-80% 81-100% Poor performance (contractor is not capable to execute an activity independently) Fair performance Average/good performance (contractor is capable to execute and activity with assistance) Very good performance Excellent performance (contractor is capable to execute activities independently and in a sustainable manner)

Source: CSIR 2007.

60

FOLLOW-UP SURVEYS Further fairly comprehensive studies were undertaken, following the official completion of the programme November 2006, in order to obtain a final perspective from the participants, dealing with aspects not contained in the CSIR Report. This survey (Close-out Stakeholder Questionnaires) lead to two further reports, firstly reflecting views of mentors and training providers and secondly the views of the ECs. These reports generally commented favourably on the IECDM. Some of the resultant data, based on inputs obtained from the main beneficiaries of the IECDM, the ECs, is reflected in Sections 1 and 2 below (ECDC, IECDM Close-Out Report, 2007: 19-20). Section 1 requested the respondents to rate the overall performance of the model. The scoring system utilised was based on a 1-10 rating with: 1-2 = poor, 3-4 = fair, 5-6 = average/good, 7-8 = very good, 9-10 = excellent Question 1.1: Rate the overall IECDM programme in terms of delivering on the key objective being enterprise development of emerging contractors. The average score was 8, thus falling into the range of very good. Question 1.2: Rate the mentoring programme introduced by the project team in terms of value adding beneficiation of the emerging contractor. The average score was 9.3, thus falling into the range of excellent. Question 1.3: Rate the management of the IECDM by the ECDC appointed project team. The average score was 8.33, thus falling into the range of excellent. Question 1.4: Have you as the emerging contractor noticed significant growth of your enterprise regarding sustainability and viability as a construction enterprise. The average score was 8, thus falling into the range of very good. Question 1.5: Rate the CETA learnership in terms of the value adding beneficiation it has provided for the emerging contractor. The average score was 8.33, thus falling into the range of excellent. The emerging contractors have indicated a high level of satisfaction with the learnership qualification. This in contradiction of the 6.33 scored for the same element by the mentors. Based on the scores received and the comments, it can be said that although the emerging contractors felt they gained from the learnership the mentors questioned the lack of practical application on site of the modules taught on the learnership. Question 1.6: Rate the overall TQM process in terms of the value adding, providing corrective measures and to guide the mentor/emerging contractor /training provider relationship. The average score was 8.67, thus falling into the range of excellent. Question 1.7: Has the introduction of the Manual guideline document (MSCC) created a sound knowledge base for the mentor/contractor relationship: The average score was 9, thus falling into the range of excellent. Section 2 took into account the business development of the emerging contractors; the response was requested as a yes or no to the question put forward: Question 2.1: Asked whether the IECDM had improved the business skills of the emerging contractor to manage their enterprises effectively. 100% responded with yes. 0% responded with no. Question 2.2: Asked whether the emerging contractor was now in a position to execute projects of larger capacity as a result of the knowledge gained through the IECDM. 100% responded with yes. 0% responded with no. Question 2.3: Asked whether the emerging contractor was able to tender and compete more efficiently for construction projects post IECDM than prior to the IECDM. 100% responded with yes. 0% responded with no.
61

Question 2.4: Asked whether the emerging contractor felt the knowledge base regarding the construction industry has been enhanced as a result of their participation in the IECDM. 100% responded with yes. 0% responded with no

GENERAL COMMENTS REGARDING STATISTICAL DATA From a purely methodology perspective, it is important to note that the data contained in all the reports represent the perspectives of mentors and ECs. The data contained was not tri-angulated. However, the feedback from mentors and contractors, over a large geographical area, without personal contact with each other, consistently confirmed the same trends, supporting the reliability of the data. CONCLUSIONS The research conducted during the creation and practical implementation of the IECDM (as a holistic integrated programme in practice) and the ensuing results, conclusively showed that the elements contained in the model are vital to achieve successful outcomes resulting from the creation of an enabling environment for emerging (small) contractor development in South Africa. The programme has to be rigorously managed. This requires that a competent project manager and management team be appointed to manage the programme on a day-to-day basis. All elements of the programme have to be supported by Total Quality Management processes and managed each step of the way so that corrective action may be taken in time. This is done by way of the programme owner (client) receiving regular progress reports and management action plans, based primarily on quantitative data, supported by qualitative data. An important principle underlying the IECDM is recognition that it is a training programme with the objective of creating sustainable construction businesses. Training has a price tag and satisfactory results are achieved more effectively and efficiently when programmes have the necessary financial resources and the full commitment of all stakeholders. Selection criteria should be further developed and applied to identify and select suitable contractors to enter the programme, as well as for training service providers. Minimum standards have to be set and adhered to. Financial packages should be obtained for the ECs from financial institutions that are committed to the programme and the development of contractors. The nature of the programme offers security to a bank that it cannot normally obtain from an emerging contractor operating on his own. The IECDM is mentor-based and the appointment of an accredited mentor (accreditation based on construction knowledge and aptitude) is central to the success of the programme. The University of the Free State has such an accreditation programme. The multitude of tasks fulfilled, the constant business development support and the actual training provided by mentors, are extremely important interventions in small construction contractor capacity building in South Africa. Without it there is virtually no chance of success. However, their is also very little hope of achieving sustainable skills development if the entire programme is not subjected to rigorous TQM in order to identify and act upon deviations from stated objectives as soon as it occurs. If data collection, interpretation and managerial action is not instituted to determine what level of development has been reached by the ECs, the evaluation of proficiency becomes very subjective and thus untrustworthy.

62

RECOMMENDATIONS The IECDM requires that a local, regional or national body, with sufficient muscle, undertake the programme. Economy of scale is achieved by implementing the comprehensive programme across a region such as a province. Integrated programmes are remarkably cost effective when conducted on a fairly big scale. Typically organisations such as government departments (Departments of Public Works or Housing), metros, and development corporations are ideal promoters for the model. Contractors are developed successfully when they have continuous construction work. If possible, contractors on the programme should be provided with term contracts for a minimum period of 24 months. This time scale also synchronises with CETA Learnership requirements. BIBLIOGRAPHY Building Industries Federation South Africa. Undated, during 1990s. Manual for Smaller Builders. Midrand. Construction Industry Development Board. 2004/2005. Annual Report 2004/2005. Pretoria. Eastern Cape Development Corporation (ECDC). 2007. Integrated Emerging Contractor Development Model (IECDM): Close-Out Report. East London. Eastern Cape Development Corporation (ECDC) 2007. Development Model (IECDM). East London. Integrated Emerging Contractor

Hauptfleisch, A.C. 2006. Integrated Emerging Contractor Development Model. University of the Free State. Johannesburg. Republic of South Africa. 2003. Broad Based Black Economic Empowerment Act (No 53 of 2003). Pretoria. Government Printer. Republic of South Africa. 2000. Construction Industry Development Board Act (No 38 of 2000). Pretoria. Government Printer. Republic of South Africa. 2003. Skills Development Act (No 97 of 1998). Pretoria. Government Printer. Council for Scientific and Industrial Research (CSIR). 2007. Close-Out Report: Emerging Contractor Development Model for the Eastern Cape Development Corporation. Pretoria.

63

CRITICAL SUCCESS FACTORS FOR SMALL AND MEDIUM SIZED CONTRACTORS IN NORTH WEST PROVINCE, SOUTH AFRICA
Makgati Jacky Phaladi1, Wellington Didibhuku Thwala2
1 2

Department of Quantity Surveying and Construction Management, University of Johannesburg, Department of Construction Management and Quantity Surveying, University of Johannesburg,, Didibhukut@uj.ac.za, Tel No. 011-5596048

Abstract Purpose: The main purpose of this study was to examine the critical success factors that influence the success of small and medium sized contractors in the North West Province. Furthermore to find out common challenges faced by small and medium sized contractors and how they might be overcome. Methodology/Scope: A comprehensive international and South African literature study was undertaken. A questionnaire was developed for small and medium sized contractors to access the status of their enterprises and also to examine the critical success factors that influence the success of their businesses. Findings: The study also find that lack of effective management, lack of financial management; lack of entrepreneurial skills; lack of proper training; lack of resources; lack of technical skills, lack of contractual and managerial skills; late payment for work done which are common with government contracts; inability to get credit from suppliers; fronting for established contractors; and inability of a contractor to market himself among the industry role players are seen as critical success factors for small and medium sized contractors in the North West Province. Research limitations: The scope of this study will only focused on small and medium sized contractors in the North West Province. Due to limited time thus the study is unable to cover all nine provinces. In addition the study did not focused on large established contractors in South Africa. Practical Implications: The South African construction industry will continue to provide jobs for Historically Disadvantage Individuals (HDI) but without such intervention, small and medium sized contractors will remain unsustainable and their performance unsatisfactory. Value: The paper shows that small and medium size contractors continue to be unsustainable and even with existence of supportive programmes (i.e contractor development programmes and emerging contractor development programmes). Key words: Contractor, construction, Contractor Development Programme, Emerging Contractor Development Programme, North West Province, resources, small and medium size. Introduction The South African government has committed to ensuring that black-owned companies have access to the construction sector. Under its black economic empowerment (BEE) programme, the South African government has set targets for the percentage of each industry to be controlled by black-owned
64

businesses. Large, predominately white-owned corporations have sold assets to achieve this objective, with the first sale occurring in late 2000. From 1995 the democratic government through its various departments has initiated some contractors development programmes by which it awards certain levels of its construction projects to the historically disadvantaged black contractors in order to enable develop competent skills, build viable construction companies, create jobs and redistribute wealth (Department of Public Works (DPW), 1996). A construction companys decision to expand into international markets must be based on a good understanding of the opportunities and threats associated with international business, as well as the development of company strengths relative to international activities (Luger, 1997). The study was done by surveying the executives in charge of international construction of large United States based contractors. The findings indicate that track record, specialist expertise, project management capability are the most important company strengths; loss of key personnel, shortage of financial resources, and inflation and currency fluctuations are the most important threats relative to international markets; and increased long term profitability, the ability to maintain shareholders returns, and the globalization and openness of the markets are the most important opportunities available in international works (Luger, 1997). The vast majority of construction firms are small enterprises that rely on outsourcing personnel as required. This has severely affected skills training and the retention of expertise in the industry as construction workers become highly mobile, walking in and out of the industry, depending on performance in other sectors of the economy. The impact can be seen in the rigid adherence to management techniques and construction practices handed down from colonial times which, as a result of inadequate skills and capacity. Delays with interim and final payments, as well as onerous contract conditions faced by construction firms, can also impose huge constraints on the industry. Many construction firms have suffered financial ruin and bankruptcy because of delays in payment, which are common with government contracts (Luger, 1997). Research methodology The sample consisted of purposively selected 100 small and medium sized contractors from the database of National Department of Public Works (NDPW), Mmabatho Regional Office: Emerging Contractors Development Programme; Local Municipalities: Contractors Development Programmes (CIP), and Construction Industry Development Board (CIDB) contractors register/database. The main instrument used in collecting data was questionnaire which was self-administered by the owners/managers of these companies. The number of questionnaire was distributed to companies that are categorized as SMEs based in North West Province. Also guided interviews were conducted on different contractors compulsory site inspections/briefings around the province with the owners/managers of the companies. The focus of the interview was to probe further on the nature of such innovation and source. The responses from the interview were used to supplement the data supplied in the questionnaire. A secondary source was used for data collection through articles, journals, construction magazines, books and periodicals to obtain historical data and other relevant information. Interviews were conducted on different contractors compulsory site inspections/briefings around the province with the owners/managers of the companies to collect primary data on contractors. Literature Review (Dlungwana and Rwelamila, 2003) states that contractors can be distinguished from each other by variables such as the size of annual turnover, capacity and capability. The challenges facing small and medium-sized contractors can be distinguished between those that affect small-scale contractors and those that affect medium-sized contractors. Some key features of small-scale contractors are that they are largely unregistered, operate in the informal sector of the economy and have very little formal business systems. The small-scale sector comprises the largest percentage of total contractors, although
65

they employ very few permanent staff, usually less than ten employees. The conditions in developing countries present additional challenges, which include, amongst others, the lack of resources for training contractors, such as funds, poor construction procurement systems and lack of management capacity and resources to equip managers to operate their business enterprises effectively and efficiently. Challenges faced by emerging contractors in South Africa The challenges faced by small and medium contractors can be distinguished between those that affect small-scale contractors and those that affect medium-sized contractors. Small and medium contractors are facing increased competition due to the long-term real decline in demand, and many contractors have responded by shedding labour. The larger contractors have also responded by moving into the international market. Small local contractors, in particular, are furthermore subject to volatilities due to the geographic distribution of construction and the peak workloads that characterize construction projects, which has further reduced their ability to build capacity. Emerging contractors are subject to the same market forces described above for small contractors. However, in addition, while emerging contractor development policies were intended for black economic empowerment, small government contracts have in fact been used as a job creation opportunities. This has resulted in an overcrowding of this market, and increased financial failures of emerging contractors. Lack of effective management during their early stages is a major cause of business failure for small and medium sized contractors. Owners tend to manage their businesses themselves as a measure of reducing operational costs. Poor record keeping is also a cause for startup business failure. In most cases, this is not only due to the low priority attached by new and fresh entrepreneurs, but also a lack of the basic business management skills. Most business people, therefore, end up losing track of their daily transactions and cannot account for their expenses and their profits at the end of the month. During the early stages of some business start ups, owners were unable to separate their business and family/domestic situations. Business funds were put to personal use and thus used in settling domestic issues. This has a negative impact on profitability and sustainability. Some owners/managers employ family members simply because of kinship relations. In some cases, these have turned out to be undisciplined and ineffectual, a factor that has led to eventual and sometimes rapid failure of businesses. This relative lack of success facing emerging contractors in South Africa was discussed by (Rwelamila, 2002; Miles, 1980; Croswell and McCutchen, 2001; Mphahlele, 2001 and Ofori, 1991); International Labour Organization ILO- (1987); as follows: Inadequate finance and inability to get credit from suppliers; Inability to employ competent workers; Poor pricing, tendering, and contract documentation skills; Poor mentoring; and fronting for established contractors; Lack of entrepreneurial skills; Lack of proper training; Lack of resources for either large or complex construction work; Lack of technical, financial, contractual, and managerial skills; and late payment for work done. The Department of Public Works (DPW) has since 1995 has been actively involved in conceptualizing and implementing programmes to promote emerging contractors in the built environment. Through these programmes, the DPW has increased participation of previously disadvantaged individuals in the mainstream economy. Moreover, it increased economic activity in an economically depressed environment. Previous contractor development programmes have focused on the under R500 000 range, which has been found not to be a sustainable market given the number of new entrants to the market. This resulted in few of the contractors being sustainable and the cost of contractor development consequently being extremely high compared to the sustainable result.

66

The challenges faced by the emerging contractors include: the co-ordination and management of the many facets of the different programme; maintaining focus on sustainability against pressures to rollout too rapidly; reaching target market with information about the opportunity; sourcing mentors with the requisite skills and experience; the large numbers of contractors targeted requires large numbers of trainers and mentors which are not readily available, and are costly; the available resources to effectively and efficiently monitor, evaluate and facilitate programmes are limited; An integrated development approach requires considerable support from senior management of public sector clients and considerable inputs from officials; programmes lack sustainability; while public sector clients have done a lot for contractor development, particularly in the area of policy, there are still many issues that must be addressed at operational level, such as late payment cycles; procurement policies should encourage longer contract periods and move away from frequent tendering which is both expensive and disruptive; more qualifications need to be developed that are targeted at the specific needs of small and emerging contractors; there is a lack of access to affordable finance; emerging contractors lack demonstrable credit and track records. The following are the major constraints faced by emerging contractors development and growth: Skills related barriers to construction emerging contractors development and growth South Africa is characterized by a systematic under-investment in human capital. This has resulted in a labour force with a skewed distribution of craft skills, career opportunities and work-place experience. While the promulgation of the Skills Development Act of 1997 is commendable, micro enterprises already express concern about the administration costs of recovering levies in the form of grants for training undertaken, the costs of designing a workplace training programme as an alternative to using external training institutions and the relatively high charges by private training institutions after the closure of the former industrial training boards which had been subsidized through levies from industry (Kesper, 2000). Financial barriers to construction emerging contractors development and growth Efforts to promote SMME access to finance might have more impact on development and growth but access is limited and cost of capital is high. While government has made some efforts to increase accessibility to finances, the targeted programmes have had limited success because awareness and usage of existing promotional programmes is very low. In addition to insufficient access, high interest rates also pose a constraint to micro enterprise growth. Moreover, (Gounden, 2000) reports that there are core difficulties seen in terms of discrimination by financial institutions against micro enterprises with little collateral, difficulties in accessing information and lack of market exposure. The inadequacy of external finance at the critical growth/transformation stages of micro enterprises deters the enterprises with growth potential from expanding (Nissanke, 2001). Legal barriers to construction emerging contractors development and growth With regard to legal barriers, a commonly perceived constraint of micro enterprises is the labour laws which are said to raise the cost of employment artificially prolong retrenchments or corrective action and do not allow for adequate flexibility especially in wage settings and the arrangement of working time (Bhorat et al., 2002). As a result enterprises feel a profit squeeze and impact on the willingness to create jobs. Critical success factors for small and medium contractors (Young and Hall, 1991; Abidali and Haris, 1995) suggest that contractors project and financial management ability is a critical success factor. (Kotler, 2002; Cromie, 1991) state that the ability of a contractor is to market himself among the industry role players is a critical success factor. (Yussof, 1995) state that experience and management expertise of the owner is critical success factor. (Rotter,
67

1966; Barkham, 1994; and Jaafer et al, 2004) state that entrepreneurial characteristics in forms of creativity and need for achievement are critical success factor. (Yisa et al., 1996; Day, 1997; Kale, 1999; Winter and Preece, 2000) state that the ability of a contractor to maintain good relationship with clients, suppliers, and other role players is a critical success factor. (Upson, 1987) insists on the ability for financial gathering and management as critical success factor for small, medium and large contractors. (Jaafer and Abdul- Aziz, 2005) surveyed 172 SMEs contractors in Malaysia and concluded from what they call Resource-Based-View that contractor success lies in project and financial management capability, marketing and supply chain relationship; however, they state that educational background and owner-manager characteristics are not necessarily success factors because competent skill can be employed to run the firm. (Miller, 1962) from his 35 year construction experience examines the views of contractors who emphasized that their survival in this competitive industry depends on the understanding of requirements, progressive in estimating, scheduling, purchasing, organizing, controlling project activities, knowing what has been done and how, and being flexible enough to adjust to changing situations, are all important success factors. (Holroyd, 2003) says that success depends on competent skills, adequate resources, proper timing of activity planning and performance, teamwork, effective communication, fair dealing with people, honesty and integrity are essential. Findings from the North West Study The graph below shows that the small and medium size industry in South Africa is still male dominated with 78% male and 22% female owned. The age of the people interviewed ranges from 20 to 59 years old. 98.3% of the people interviewed were Black and 1.7% percent Coloured people. The figure clearly shows that the small and medium size contractors in the North West Province is dominated by Black people. 71.2 % of the people interviewed were managing directors; 6.8% were managing partners; 8.5% were Construction Project Managers and 10.2% were Construction managers.

22%

Male Female 78%

Figure 1: Gender in the North West Province The results also shows that 16.9% of the owners of the contractors had a Grade 11 or lower qualification; 28.8% had Grade 12 qualification; 28.8% had Post-Matric Diploma or Certificate; 8.5% had a Bachelors degree and 11.9% had a post graduate degree. The results also shows that 45.7% of the owners had a qualification that is up to Grade 12. The results shows that 74.6% of the contractors manage between 0-2 projects; 18.6% of the contractors manage between 3-19 projects; 3.4% of the contractors manage between 11-15 projects and 1.7% of the contractors manage above 20 projects at a
68

time. Most of the contractors at the lower grading lack the capacity to manage many projects at one time. The research also find that 27.1% of the owners of the contractors have less than three years experience; 33.9% of the owners have between 3 and 5 years experience; 18.6 % of the owners have between 11 and 15 years and 10.2% have above 15 years experience in the construction sector. The results show that 61% of the owners of contractors have less than 5 years experience in the construction industry. 81.4% of the contractors are based in the urban towns and 18.6% are based in rural towns. The number of people employed by the contractors ranges from 1 and 50. 47.5% of the contractors had participated in the contractor development programme in the past. More than 45.8% have never participated in the contractor development programme. The results shows that contractors lack basic construction skills with only 30.5% construction management; 47.5% business management; 30.5% project management; 30.5% health safety; 37.3% tendering and 27.8% site management. And it is clear that majority of the contractors in the North West Province lack important skills that will enable their contractors to be successful. The results shows that scarce skills in the construction industry its a main challenge, as most of small and medium sized contractors cannot afford to hire qualified artisans and construction professionals due to the high demand of built environment professionals. And it leaves small and medium sized contractors with no option but to outsource their work to the well established contractors. Conclusions and recommendations This paper has shown that after 13 years into new democratic South Africa, the state of small and medium sized contractors continues to be unsustainable and even with existence of supportive programmes (i.e contractor development programme and emerging contractor development programme). The South African construction industry will continue to provide jobs for Historically Disadvantaged Individuals (HDI) but without such intervention, small and medium sized contractors will remain unsustainable and their performance unsatisfactory. The study finds that lack of effective management during their early stages is a major cause of business failure for small and medium sized contractors. Owners tend to manage their businesses themselves as a measure of reducing operational costs. Poor record keeping is also a cause for startup business failure. And lack of financial management; lack of entrepreneurial skills; lack of proper training; lack of resources; lack of technical skills, lack of contractual and managerial skills; late payment for work done which are common with government contracts; inability to get credit from suppliers and fronting for established contractors are also contributing factors for the failure of small and medium sized contractors in the North West Province. The author considers the following points as the main reason for the success of the small and medium sized contractors in the North West Province: Business skills: location of business premises is very important, set specific targets for your business, carrying out market research, employ qualified personnel and put them in position according to their skills, know and understand existing skills needed and attend refresher courses on business management skills. Management skills: financial management should be emphasized, networking with other people with similar businesses and keeping records of workers to help in evaluation of the performance. Access to capital: merge with others that have similar businesses, negotiate favourable credit purchases from the supplier, source affordable loans from financial institutions and negotiate advance payments from the clients. Good record keeping: financial record should be prioritized and establish a record of books of accounts on a daily basis, weekly, monthly and annual basis.
69

Well managed Cash flow: prepare cash flow forecast and budgets, prepare a cost-benefit analysis, lease equipment and other financial assets to improve your cash flow, negotiate outstanding loans through payment procedures and scale down operational costs. Family/domestic situation: separate business activities and family obligations and look for alternatives sources of income to cater for family basic need.

References Cheetam, T. and Mabuntana, L, (2006), Developmental initiative towards accelerate and shared growth initiative of South Africa (ASGISA), Department of Public Works, Pretoria. Construction Industry Development Board (CIDB), (2004), SA Construction Industry Status Report 2004: Synthesis Review on the South African Construction Industry and its Development. Discussion Document, South Africa. CIDB, 2006, In Focus; Newsletter of the Construction Industry Development Board, March. Croswell, J. and McCutcheon, RT. (2001), Small Contractor Development and Employment: A Brief Survey of Sub-Saharan Experiences in relation to Civil Construction. Department of Public Works DPW (1996), Procurement Task Team. Public Sector Procurement Reforms in South Africa: Specification for the Implantation of an Affirmative Procurement. Policy APP2: Joint Venture (general) May 1996. Dlungwana, W.S. and Rwelamila, P.D. (2003), The role of performance assessment tools in improving contractor performance in developing countries, CSIR Boutek: Pretoria. Dlungwana, W.S., Noyana, C., Oloo, V. (2004), The Emerging Contractor Development Model Planning and Implementation Manual. CSIR Boutek: Pretoria. Gounden, S, (2000), The impact of the National Department of Public Works Affrimative procurement policy on the participation and growth of affirmable business enterprises in the construction sector, Unpublished PhD thesis, University of Natal, Durban. Govender, J.N. and Watermeyer, R.B, (2001), Potential procurement strategies for construction industry development in the SADC region, Unpublished paper, Department of Public Works, Pretoria. International Labour Organization (ILO), (2001), The Construction Industry in the Twenty-first Century: Its image, Employment Prospects and Skill Requirements. Geneva. Jaafar, M. and Abdul Aziz A.R. (2005), Resource Based View and Critical Success Factors: A case study of Small and Medium Sized Contracting Enterprise (SMCEs) in Malaysia www.bre.polyu.edu.hk/criocm/ English/journal. Luger, L. (1997), Report on the small and medium enterprise, international study tour: Singapore, Malaysia and Bangladesh. Miller, L (1962), Successful Management for Contractors. McGraw-Hill Book Company, Inc USA. Mphahlele, G (2001), Contractor Development in South Africa. Conference on
70

Developing the Construction Industries in Southern Africa. DPW, April 2001. Rebelo, E. (2005), Small business, SAs biggest test; in Creamer Medias Engineering News; 25 (1); 16-17. Rwelamila, P.D and Dlugwana, D.W (2002), The Role of the Performance Assessment Tools in improving Contractor Performance in Developing Countries. 1st CIB-W107 International conference. Creating a Sustainable Construction Industry in Developing Countries. 11-13 November. Stellenbosch, South Africa. Young B and Hall G (1991), Factors associated with insolvency amongst contractors in the construction industry Building Research and Information, 9(5), 315-318. Yusoff A (1995), Critical Success Factors for Small Business: Perception of South Pacific Enterprises. Journal of Small Business Management, 33(3), 68-73.

71

UNFINISHED BUSINESS: CURRENT CHALLENGES AND PROBLEMS FACING SMALL AND MEDIUM SIZE CONTRACTORS IN SWAZILAND
Mpendulo Mvubu1, Wellington Didibhuku Thwala2
1 2

Department of Quantity Surveying and Construction Management, University of Johannesburg, Department of Construction Management and Quantity Surveying, University of Johannesburg,, Didibhukut@uj.ac.za, Tel No. 011-5596048

Abstract Purpose/objectives: The aim of this paper is to outline the challenges and problems facing Small and Medium Size Contractors in Swaziland. The construction sector in Swaziland is not only a significant source of direct employment but also a sector which contributes, through its wide range of projects and operations. The paper will also look at the current government initiatives that had been put in place to address the challenges and problems in order to ensure that contractors can be successful. Methodology/Scope: Drawing on research on small and medium size contractors, the paper will utilise both secondary and primary literature. 100 questionnaires were distributed to different role players in the construction sector in Swaziland. This included small and medium size contractors owners, banks, consultancy firms, Department of Public Works employees. Findings/Implications: The article attributes the success and failures of small and medium size contractors in South Africa to different factors which must be avoided in future in order for small and medium size contractors to be successful. The article closes with some recommendations and key lesson for the future. Small businesses have been advocated as an important means of generating employment in which South Africa is not an exception. Research limitations/implications: The paper is mainly concentrated on registered small and medium size contractors in Swaziland. The study did not look at the challenges and problems facing small and medium size contractors working in the informal sector. Practical Implications: Success is greatly increased by having relatively stable access to markets and access to capital and that successful enterprises are characterized by entrepreneurs with a basic level of education, essential technical knowledge and previous industry experience with larger enterprise, and ability to learn new skills, innovate and take risks. Keywords: Contractor, Construction, Development, Infrastructure, small and medium size, Swaziland. Introduction In Swaziland and other countries there seem a general consensus that small enterprises are the mainstay of economic growth and prosperity. Small contractors can be powerful instruments of generating job opportunities; small contractors can perform small projects at different and remote geographical locations that might be unattractive to big firms or too costly using the big firms; low overheads enable small contractors to work at more competitive prices; large number of functional small and medium scale black contractors can help to decentralise the construction industry dominated by established large contractors; the relatively low skills and resources required at this
72

scale can easily lower the entry point for the small and medium size owners to begin to participate in the industry; and a large number of functional Swazi owned contractors can develop a platform for growth and redistribution of wealth in Swaziland. At a time when the public sector and big business are shedding jobs, small businesses are maintaining real employment growth. The small contractor development programme falls under the Ministry of Public Works and Transport. The main mandate of the ministry is to ensure the provision and maintenance of a sustainable public infrastructure, an efficient and effective seamless transport system and network, regulation for a vibrant construction and transport industry, management of public service accommodation and the provision of meteorological services. In carrying out its mission, the Ministry is committed to upholding safety and environmental standards for socio-economic development by making the best use of the country's available resources. The following are the responsibilities of the ministry: construction and maintenance of Government buildings; construction and maintenance of public roads; administration of the Road and Outspan Act; planning and Regulation of Road Transport Services; Government Transport Administration; administration of the Road Traffic Act; administration of the Road Safety Act; Road Transportation Act; Government Housing; Royal Swazi National Airways Corporation; Civil Aviation; Meteorological Services; Regulation of Air Transport Services; and Regulation of Rail Transportation Services (Ministry of Public Works and Roads, 2007).

Financial Constraints The high competition among emerging contractors has contributed to increase financial failures of the emerging market, making the market unsustainable. The (CIDB: 2005) states that the large numbers of emerging contractors have moved into higher value public tendering in the 0.5m to 2m market, which is also becoming overly competitive. In a study which looks at the construction industry in South Africa (CIDB, DPW, CETA, 2005). Emerging contractors should not tender for higher contract values until they have gained enough experience and have financial capacity to handle the larger contracts. Statistics South Africa (2005) states that from 1995 to 2005, about 5907 construction companies were formally liquidated. The CIDB (2004) states that much more than 90% of the emerging black contractors survive the first five years. The CIDB further highlight that 1,400 construction companies were liquidated over the past three years. Emerging contractors feel that the banks are reluctant to deal with them unless exorbitant interest rates and through compulsory business management services. Complexity, risks involved in the construction industry have led to enormous failures especially in small contractors and those small emerging contractors harboring the wrong impression that there is quick money to be made are the mostly affected (Ngala, Adegoke and Otiena, 2005). Lack of access to finance both during pre-construction which disqualifies emerging contractors from meeting guarantee and performance bond requirements and during construction which leads to cash-flow problems, incomplete work and even liquidation are financial constraints facing emerging contractors. Relationships between Emerging Contractors and Suppliers Emerging contractors do not have good relationships with their suppliers. In a functioning relationship, the material supplier provides credit to the contractor (30-90 day term), contractor pays on time and the cycle gets repeated. In an emerging supplier relationship, the supplier requires cash upfront and will not deliver the material until payment is made in full. The reason for this is if the supplier provides credit to the emerging contractor, the contractor is often unable to pay on time due to capacity or performance constraints. The reluctance by suppliers in the relationship with emerging contractors is caused by the following risk factors: History of emerging contractors failure to complete projects which is very high
73

Systematic contractor payment processing delays, especially for construction works commissioned by the public sector. The potential for material losses due to theft, lack of appropriate storage and mismanagement by emerging contractor

Late Payment by Clients Emerging contractors run into problems due to late payments by the clients. A problem arises when the local council run into budget difficulties and be unable to pay. The emerging contractor does everything right, his work is of good quality but the local council doesnt pay on time and the contractor ends up owing the bank and defaulting. In one case, the contractor built 400 houses, but the town councilor had used the money for other pressing needs. On a different project, the same contractor built 150 of 300 houses; only to discover that the town council had forgotten to register the houses and this caused a delay in the payment for over a year. The unlucky contractor, failing to repay loans in a timely fashion had his business put into liquidation. International Experience with regard to Small and Medium Enterprise In order to get an overall perspective of the environment and conditions within which we operate, it is imperative that we look at similar situations of small enterprise development in other countries. Bangladesh, Singapore and Malaysia have grappled with similar situations as far back as the post Second World War reconstruction period. These countries in different ways have a longer history and applied experience with regard to the development of a small business strategy. We do however recognise that different circumstances supported their initiatives, despite common experiences of the war devastation. In spite of positive circumstances in the above economies for Small Medium Micro Enterprises (SMMEs) to prosper, the strategies took at least ten years to unfold. This provides us with the opportunity to learn from other countries experiences, both useful and harmful, for Swazilands unfolding small business strategy. All three countries add a different perspective about 'international best practice'. International best practice in these countries suggests that a strong institutional framework displays the following characteristics: a combination of financial and non financial services delivered by separate institutions in close co-operation as part of a national strategy; targeted finance programmes i.e. broad based, industry based and sector based schemes with focused assistance e.g. machinery, factory premises, raw materials, training programmes and technology; a detailed and comprehensive 'economic umbrella plan' with targets i.e. an overall vision and the inputs to be invested with clear detailed outputs within particular time frames; avoidance of ad hoc and disconnected programmes. Programmes are part of the larger strategy or plan (Jaafar and Aziz, 2005). A rapid delivery of programmes and an ability to rapidly shift programme focus and resources; ease of access to user; demand driven support; and a platform for interaction between public and private sectors with a strong emphasis on the planning role of the state. Contractor Accreditation Process in Swaziland A registration of accredited construction enterprises in Swaziland constitutes an essential tool for the industry transformation, for monitoring the performance of enabling environment programmes, and for ensuring compliance with the performance of public-sector projects. All construction enterprises engaged in public sector work, or in receipt of State funding training or support functions, will be required to be registered in a manner that will reflect their capacity and performance. The registration process must address the following: the operation of a preference scheme, or approved public tender list, which would reduce industry and public sector cost associated with an all out open tender process at the same time supporting risk management; performance monitoring to enable the promotion of improved contractors and to ensure compliance where standards are violated; and; the targeting of resources to the emerging contractors which are
74

demonstrating progress and the withdrawal of support from those which have graduated or have failed to progress (Ministry of Public Works and Roads, 2007). Categories Project Category Eligible to tender for Category 1 Locally and internationally funded construction projects above R20 million. Category 2 Local and internationally funded construction projects above R10 million. Category 3 Local and internationally funded construction projects above R5 million. Category 4 Local and internationally funded construction projects above R1million. Category 5 Local and internationally funded construction projects above R500, 000.00 but below E3million. Category 6 Local and internationally funded construction projects below R500, 000.00. Source: Ministry of Public Works and Roads- Swaziland: 2007. Table 1: Contractor Grading in Swaziland Problems Facing Small and Medium Size Contractors in Swaziland The problems facing small contractors are not unique to Swaziland. The vast majority of construction firms are small enterprises that rely on outsourcing personnel as required. This has severely affected skills training and the retention of expertise in the industry as construction workers become highly mobile, walking in and out of the industry, depending on performance in other sectors of the economy. The impact can be seen in the rigid adherence to management techniques and construction practices handed down from colonial times which, as a result of inadequate skills and capacity. Delays with interim and final payments, as well as onerous contract conditions faced by construction firms, can also impose huge constraints on the industry. Many construction firms have suffered financial ruin and bankruptcy because of delays in payment, which are common with government contracts. Contemporary research that was conducted in 2007 by the authors revealed the current reasons for the failure of small and medium size contractors in Swaziland. 87 owners of the small and medium size contractors were interviewed. 68% of the contractors are less than four years; 20% are between 5 and 9 years; and 12 % had operated for more than 10 years. There was no contractor that had operated more than 15 years. 63% of the respondents believe that the four major banks in Swaziland have proper systems in place to support small and medium size contractors once they have secured work. On the other hand 37% of the respondents do not believe that the four major banks in Swaziland have proper systems in place to support small and medium size contractors. 33.4% of the respondents think that the current environment within the construction industry in Swaziland is favourable for small and medium size contractors to be successful. On the other hand 66.6% of the respondents believe that the construction industry environment is not favourable for the success of the small and medium size contractors.

75

5% None at all 35% 41% Very poor poor adequately Very well 17% 2%

Figure 1: Develop Business Skills From the above figure 40% of the respondents are satisfied with business skill development and 60% of the respondents were not satisfied. The figure above shows that the respondents are not satisfied with regard to the development of business skills.

5% 22% 36% None at all Very poor Poor Adequately Very Well

3% 34%

Figure 2: Develop Management Skills From the above figure 27% of the respondents are satisfied with the development of managerial skills. 73% of the respondents are not satisfied with the development of managerial skills. It is clear from the above figure that respondents had not been trained.

76

6% 36% 44% 3% 11% None at all Very poor Poor Adequately Very well

Figure 3: Develop Technical Skills From the above figure 47% of the respondents are satisfied with the development of technical skills. 53% of the respondents are not satisfied with the development of technical skills. From the research conducted it can be concluded that the relative lack of success among the small and medium size contractors in Swaziland is a results of the following problems which must be addressed in order for the contractors to be successful: A lack of resources for either large or complex construction work. An inability to provide securities, raise insurance and obtain professional indemnity. The contracts were inevitably packaged in such a way as to exclude small contractors. Inadequacy in technical and managerial skills required in project implementation. Lack of continuity in relation to type, scale and location of work An inadequate approach and insufficient knowledge, time and experience required for the whole process of finding work, once found, insufficient understanding of the contract documentation and the preparation and submission of tenders. Slow and non-payment by government after completing a government project Lessons and Recommendations The planning processes in Singapore and Malaysia are comprehensive, detailed and act as a guide for different Ministries to set quantitative and qualitative targets for delivery institutions. The planning process involves extensive consultations and input by a broad range of stakeholders, which is then co-ordinated and submitted to cabinet and finally parliament as the Industrial Master Plan. These plans tend to unite society around a common purpose and vision. Integral to economic planning in Singapore and Malaysia is targeted financial assistance for broad based, industry based and sector based schemes with focused assistance programmes e.g. machinery, factory premises, raw materials, training programmes, industrial linkages, technology and research and development. The interest rates for the contractor programmes are generally lower than bank loans. The overall plan identifies certain industries and sectors as crucial to the economic development of the country. Holistic support programmes including financial incentives are introduced for identified sectors and industries. The growth of these industries and sectors act as a catalyst in the development of other sectors. It is seen as an investment by government with spill off effects. The government financial assistance is not ad hoc but part of a broader strategy. None financial support programmes cover a focused and wide range of issues including targeted training, quality circles, research, mentoring, design and product development, skills development,
77

Local Enterprise Upgrading Centre, infrastructure development, export development, technology development and technical assistance. These support programmes are closely linked to the financial packages e.g. the buying of machinery requires, optimal training in the use of such equipment. Support programmes are not seen in isolation to the broader strategy and guides entrepreneurs in fulfilling the targets set. The programmes are able to rapidly shift focus and resources. The Singapore Local Enterprise Upgrading Centre acts as a first stop for SMMEs giving assistance in technical consultancy and financing. It co-ordinates government programmes administered by a range of institutions. The first stop centre avoids bureaucracy for the entrepreneur and increases delivery efficiency. Government procurement is clearly an important mechanism in redistributing resources and opportunities in society. In Malaysia the government has actively used procurement as a means to empower, skill and redirect resources to the Bumiputeras. Conclusion The small and medium size contractors in Swaziland is relatively underdeveloped, mainly constrained by limited access and high cost of capital and weak support programmes from government. There is also lack of skills. The most important deciding factors in the development of small contractors in Swaziland are to address the issue of access to finance, shortage of skills and adequate support from government must be a priority. Survival, growth and expansion of the small business sector are essential for economic growth and job creation in Swaziland. Small businesses represent over 95% of the total number of business organizations in the United States of America (Abdelsamd and Kindling, 1978). Thompson (1991) points out that small businesses employ six out of every ten people and have been responsible for more than half of all the innovations developed during the 20th century. Haswell & Holmes (1989) they attribute small business failures to the following: managerial inadequacy, incompetence, inefficiency and inexperience in running a business venture. REFERENCES Abdelsamad, M. & Kindling, A., 1978, Why small business fail: S.A.M. Advanced Management Journal, Spring 1978. CIDB, DPW, CETA. 2005, Towards a common framework for enterprise growth and sustainability. Sustainable contractor development, National Workshop 2005, Pretoria. CIDB (2004) South African Construction Industry Status Report- Synthesis Review on the South African Construction Industry and its Development: A Discussion Document. CIDB: Pretoria, South Africa. Haswell, S. & Holmes, S., 1989, Estimating the Small Business Failure Rate: A Reappraisal, Journal of Small Busines Management 27 July. Jaafar, M. and Abdul Aziz, 2005. Resource Based View and Critical Success Factors: a Case study of Small and Medium Sized Contracting Enterprise (SMCEs) in Malaysia www.bre.polyu.edu.hk/criocm/english/journal Ministry of Public Works and Roads- Swaziland. 2007, Swaziland Today. www.gov.sz. Accessed: 12th January 2007. Ngala, Adegoke and Otiena. 2005, Evaluating Project Management Techniques in Small, Medium enterprises. Johannesburg.

78

Statistics South Africa 2005. Labour Force Survey for September 2005. Statistics South Africa, Pretoria. Thompson, K., 1991, Facing an uphill battle. B.E. Special Report on Small Business. Black Enterprise, Nov 19, Vol. 22 Issue 4.

79

FINANCIAL NEEDS OF SMALL AND MEDIUM SCALE CONTRACTORS IN SOUTH AFRICA

Sithembiso Ndlovu1, Wellington Didibhuku Thwala2
1 2

Department of Quantity Surveying and Construction Management, University of Johannesburg, Department of Construction Management and Quantity Surveying, University of Johannesburg,, Didibhukut@uj.ac.za, Tel No. 011-5596048

Abstract Purpose: The financing needs of contractors, especially emerging contractors, needs to be explored. In the case of the SMME contracting sector, a type of finance-PLUS arrangement, which sees the lender or an intermediary offer additional support service to emerging enterprises, would be worth exploring. The study then describes the problems and experiences that have been encountered by Small and Medium Contractors with regards to financial access. Methodology: Interviews were conducted and a questionnaire was sent out to different contractors who have been successful in the business for more than five years and also contractors who are currently struggling and trying to maintain themselves. Conclusions will be drawn from the analysis and recommendations will be made for further research. Findings: The research conducted shows that the major factor that impedes the establishment and success of businesses is the lack of capital, which is ascribed to lack of own funds and a lack of assets, especially fixed assets, which could serve as security to obtain loans and bank overdrafts. The study also found that although there are different initiatives that are in place to assist small and medium size contractors but the problems and challenges are still are there. Research limitations: The scope of this study only focused small and medium size contractors in the Built Environment. Value: The paper shows that small and medium size contractors continue to be unsustainable due to lack of access to capital. Previously disadvantaged individuals do not have adequate access to formal financial institutions and, therefore, are forced to seek relatively expensive (and often inadequate) amounts of credit from alternative financial intermediaries, sometimes illegally. Keywords: small and medium enterprise, entrepreneurs, finance, agencies, private sector, investment. Introduction As important as recent political changes in South Africa, is the fundamental restructuring of the economy. Not only is there a need for an economic transformation to support the political changes, but also evenly vital is the fact that the community must feel that it has equal access to the economic mainstream. Throughout the world, one finds that SMME's are playing a critical role in absorbing labour, penetrating new markets and generally expanding economies in creative and innovative ways. Small businesses have a major role to play in the South African economy in terms of employment creation, income generation and output growth. Small, medium and micro enterprises (SMMEs) account for approximately 60% of all employment in the economy and 40% of output. During the first and second year of business, some contractors ought to see themselves heading for financial trouble, 90 % of business owners would say no when they are ask if they are heading for a

80

financial trouble (Business Day, 2001). Many business owners would like to know what signs to watch out for, if his or her business is in trouble financially. For many business owners, the phone call from his or her bank manager is the alarm bell that tells them that their finances are not in good shape. In most cases, entrepreneurs will be watching their bank accounts (often with that sinking feeling that comes with expenditure exceeding revenue) but will not always know what is going wrong. That is why there are other measures that they to employ and these measures need them to have some knowledge about where their businesss money is. All types of businesses need capital before they start operating and even after for expansion. Capital is needed to buy equipment, stock and to pay salaries, water, lights, rent and telephone bills. Building Industry plays, a pivotal role in social development .The contribution of the industry stands the domestic, commercial, industrial and public sectors in a lot of ways which determines the size of the construction industry. It provides housing, infrastructure and utilities. The demands on the industry however have become more complex with growing needs and in more complex social order. In order to meet these demands, the building industry must be innovative so that it can adapt and find solutions to social needs. Most interest groups and policy makers as being of critical importance to South Africas ability to address the serious problems of unemployment acknowledge the growth and development of the small, medium and micro-enterprise (SMME) sector. This problem is even more prevalent mainly in the areas of the previously disadvantaged. After the political transformation of 1994, government adopted the White Paper on the National Strategy for the Development and Promotion of Small Business in South Africa (White paper, 1995). The Integrated Small Enterprise Development Strategy presents the way forward for small enterprise development in South Africa over the next ten years (i.e. 2005 to 2014). It is the result of a thorough process of review (Review of Ten Years of Small-Business Support in South Africa, 2001); consultation, research and refinement and also takes into account the changing economic context. This process has built upon the successes of government in macro-economic development and applies the experiences and lessons of the last ten years relating to small-enterprise promotion, while responding to the concerns raised by stakeholders within government, the private sector, organised labour and civil society. In particular, the strategy aims to address governments special development goals to improve equity in terms of race, gender and geographical location. Types and Sources of Finance for Small and Medium Size Enterprises (SMMEs) The market segmentation of SMMEs provides the basis upon which to assess the adequacy of financial service provision, both in terms of the products available, as well as the geographic spread of service providers. (Provincial and Local Financial News, 1999). The formal financial sector - namely, commercial and merchant banks, factoring houses, leasing finance companies and equity financiers - serves mainly the small and medium enterprises. Some smaller banks, as well as some local branches of large commercial banks, also occasionally serve very small enterprises. Parastatals that retail finance have similarly focused largely on small and medium-sized companies. Thus the survivalist and micro enterprise sectors are largely reached only by NGOs and family-based financing. This is true of both debt and equity finance. (Business Day, 2000). The key objectives can be summarised as follows: To increase the contribution of small contractors to the growth of the South African Construction economy, To create an enabling environment for small contractors with a level playing field between big business and small enterprises, that reduces the disparities between urban and rural contractors and is conducive to entrepreneurship,
81

To create sustainable long-term jobs in the small enterprise construction sector, To ensure equitable access and participation in term of race, gender, disability, age, geographical location and the built environment, To increase the competitiveness of the built environment sector and its enabling environment so that it is better able to take advantage of opportunities emerging in national, African and international markets, To assist political leaders, government officials, SMME finance practitioners and SMMEs themselves in establishing a consensus on creative financing strategies.

Evaluation of Existing Programmes The key constraints faced by formal financial institutions, both debt and equity financiers, in making SMME investments can be summarised in two categories. Factors relating to debt and equity - These factors include high overhead costs in general; the administrative cost of extending small loans to SMMEs; the high risk of business failure; an exaggerated risk perception of SMMEs on the part of bankers and institutional investors; and returns on SMME investments that are considered low relative to the risk and cost of making the investment (Absa News, 2000). Factors relating to debt - These factors include an inability to accurately assess the level of risk inherent in an SMME transaction; the lack of collateral of SMMEs, especially previously disadvantaged entrepreneurs; and the cost of registering and realising collateral (Absa News, 2000).

For alternative financial institutions, there are similar constraints. Factors common to group and individual lending - These factors include the cost of extending loans to SMMEs; returns on SMME investments that are considered low relative to the risk and cost of making the investment; and the cost of establishing new infrastructure. Factors relating to individual lending - These factors include the cost of registering and realising collateral; and the risk of business failure. In recognition of these constraints, Khula Enterprise Finance Limited and Ntsika Enterprise Promotion Agency were established in 1996. The institutions' mandates were to establish programmes that would absorb a portion of the risk and cost of making SMME investments, as well as increase the delivery capacity of alternative financial institutions. The overall aim was to provide private and non-governmental institutions with an opportunity to learn how to make these investments profitably. While significant strides have been made by the implementing agencies in meeting their mandates, more rapid progress is required, especially with respect to appropriate nonfinancial service provision. Other programmes The IDC had previously reorienting its loan programmes to include an increased emphasis on small and medium sized enterprises (SMEs) in the manufacturing sector and announced a cut in interest rates for small and medium-sized manufacturing enterprises. With its experience in industrial financing and the provision of subsidised credit, as well as its significant capital base, the IDC is in many respects an ideal institution for channelling subsidies to SMEs. However, the IDC defines SMEs as enterprises with assets below R60 million. In terms of the National Small Business Act, the enterprises with assets up to R18 million are defined as medium-sized (National Small Business
82

Act, 1996). Thus, effectively, the IDC is still targeting large enterprises. The IDC should thus be encouraged to consider smaller enterprises than are currently served. The Department of Trade and Industry also offers a host of other programmes and incentive schemes. One programme specifically tailored to small and medium sized manufacturing concerns is the Small Medium Manufacturing Development Programme (SMMDP), designed to encourage investment by SMEs. The programme essentially offers a rebate on a portion of the investment incurred over a period. While there has been great interest in the programme, previously disadvantaged entrepreneurs in particular have had difficulty in accessing it, as they have largely been unable to obtain the finance for the initial investment. There is thus a need for greater cooperation between Ntsika, Khula, the IDC and commercial banks with the SMMDP programme, so that an integrated support package can be developed. Expand market opportunities for specific categories of small enterprises Efforts in this sphere have to happen through the governments procurement process and the possible addition of sector-preferential "set-aside" schemes. The dti also proposes the selection of a few products frequently used by government departments, to be manufactured by small-scale manufacturers (NEF, 2003). Seda is to provide a deal brokerage service for the acquisition of machinery and equipment from local and international suppliers further supplemented by Khula, IDC and NEF support programmes and other dti incentives. (The dti, 2002) Localise small-business support through a grid of Seda-co-ordinate information and advice-access points The mandate of Seda is to design and implement a standardised delivery network that reaches all regions of the country and integrates government-funded small-enterprise support across all tiers of government. Co-fund minimum business-infrastructure facilities in local-authority areas across the country Essentially the integrated strategy has to link up closely with current Local Economic Development (LED) efforts in all municipalities, with government prepared to help mobilise core funding. While the strategy stresses that in each area the optimal mix of private-public and public partnerships will be different, it is the integration of the different support clusters. This can, if underpinned by significant resources and strong leadership via the dti, assure a meaningful acceleration of the process of SMME growth. (The DTI, 2005) Improving access to markets Current interventions to promote market access Efforts have in the past concentrated on three broad areas, thus: spreading information about domestic (local, regional, national) market opportunities through business information centres and sector-focused information material, introducing and gradually expanding an elaborate system of affirmative procurement among public-sector enterprises and departments, combining preferential procurement with support services for SMME suppliers and incorporating SME interests and concerns in negotiations and practical steps around export promotion, trade liberalisation and import controls. Towards a New Policy Framework The Role of government and implementing agencies on the Built Environmental Sector National The Khula Credit Guarantee Scheme should be revised and expanded significantly to facilitate greater access to finance for entrepreneurs.
83

Provincial

There should be more non-financial support services, better tailored to the needs of financial intermediaries, so as to facilitate greater access to debt and equity finance for entrepreneurs. A wholesale equity programme should leverage capital for smaller, early stage and start up equity investments. Possible tax incentives for institutional investors should be investigated, to enhance investment in SMMEs through the JSE and equity funds. A model of large-scale delivery of SMME financial services, especially for rural areas, should be established. There should be an investigation into a process for credit rehabilitation for borrowers with bad credit records listed with NCA (National Credit Act) in association with the Department of Justice. Regional business incubation programmes should provide an integrated support package of finance, targeted subsidies, training, counselling, marketing assistance, business premises and technology assistance. The possible role of the IDC in the development of such programmes must be investigated. Specialised capacity building support (training, workshops and conferences) should be provided based on local and international best practice in areas such as individual lending methodologies for alternative and formal financial institutions and small scale and start up equity investments for equity financiers. There should be a review of the impact of interest rates on SMMEs, and their contribution to business failure. There should be a review of the mandates of Provincial Development Corporations, particularly with respect to their pricing policies, the SMME and industry sectors targeted the range of products and their suitability for the local context and provincial development strategies. The role of the SBDC in the respective provinces should be assessed, and regional management should be approached regarding the SBDC's fulfilment of targets. There should be an assessment of geographical areas in each province where there is a lack of SMME service delivery infrastructure as a basis to engage with Khula and Ntsika. Closer relationships with regional bank officials should be established, and provincial accounts placed with banks demonstrating the greatest commitment to SMME sector.

Local

The Peruvian model of municipal banks should be considered as a means of better serving small contractors who are self employed. Information about bank services at the local level should be gathered by means of guidelines and survey questionnaire. Relationships with local bank officials should be established, and municipal accounts placed with banks demonstrating the greatest commitment to the SMME sector. Local SMMEs should be supported through the provision of advisory and information services.

Private Sector Contribution Commercial banks Each financial institution should adopt targets for using the Khula Credit Guarantee Facility. Each institution should introduce a training scheme for staff and management, on SMME lending.
84

Each institution should make financial contributions to non-financial support services such as mentoring and counselling. Each institution should clearly publicize its strategy for expanding financial services to unserved areas and should make full information available about services at branches. Each institution should establish a strategy on how its infrastructure can be shared by alternative financial institutions. Each institution should disclose information on lending to SMMEs, according to race, gender, geography, loan size and purpose.

Alternative financial institutions Alternative financial institutions should adopt Khula industry standards. Alternative institutions should enhance their efficiency and should lend at reasonable interest rate levels, within the constraints dictated by sustainability. There should be research into, and publication of, successful individual loan methodologies, through micro lender associations. A comprehensive data base should be established describing institutions serving the SMME sector and publish information about products, terms and conditions. There should be comprehensive disclosure of information on SMME lending. The alternative financial institutions should help establish their own ombudsman function to investigate and mediate disputes. Alternative financial institutions should consider innovative ways of sharing infrastructure and achieving economies of scale. Equity financiers The major equity financiers, including the JSE and large institutional investors, should improve, and develop new, specialised equity funds for small-scale equity investments. The Venture Capital Association should be revitalised, and should publish literature (in all 11-eleven official languages) on equity products for SMMEs. The equity financiers should initiate an education campaign on how SMMEs can raise capital. The equity financiers should disclose information on SMME investments. The equity financiers should look into the establishment of new JSE vehicles listing SMEs. Monitoring and Evaluation An annual report on small business financing should be jointly produced by the Reserve Bank of South Africa, the Financial Services Board and Ntsika Enterprise Promotion Agency. An annual round table discussion should commence between the Minister of Trade and Industry, the formal financial sector, institutional investors, NGO financiers and representatives of SMME borrowers, this should be done on a yearly base. Local and provincial government should provide ongoing reviews of the implementation of the policy in their respective areas. Private sector investment in socially and economically productive sectors should be monitored by the Department of Trade and Industry. Performance reviews of Khula, Ntsika and the SBDC should occur and be made public. There should be progress reports to MINMEC, Parliament and stakeholders.
85

Current Challenges Overcoming the challenge of access to finance by emerging contractors is the aim of the current and on-going engagement between partners to the National Contractor Development Programme (NCDP) and the banking and financing sector. Business Counseling and Aftercare This Programme should be aimed at the provision of assistance to owners of SMME's on inter alias, General Management, Finance, Productivity, Appropriate Technology, advice, Business Plan Compilation, Book- keeping, Marketing and Personnel Related Matters. Capacity building for infrastructure delivery for the Small Building Sector This Programme should be aimed at enabling the small and emerging building contractors to participate in a meaningful way in the RDP Programme and should include: (a) Skills Transfer (b) Skills Training (c) Consultations/Management Training (d) Productivity Conclusion The government has a crucial role to play in creating the policy framework for development and to bring about a fair distribution of resources; government should not be the main agent for development. Government should rather create conditions conducive to entrepreneurial and private sector development. Given the vast development problems partnerships between the public and private sectors, NGO's (National Government Organisations), labour unions and all organs of civil society are essential. Let us apply our collective ingenuity to address South Africa's development problems and to make our country internationally competitive. This sector represents an important vehicle to address the challenges mentioned. Throughout the world, one finds the SMME's are playing a critical role in absorbing labour, penetrating new markets and generally expanding economies in creative and innovative ways. It is the authors view that with an appropriate enabling environment- SMME's should be seen as part of an integrated strategy to promote a diversified economy and where entrepreneurship flourishes. References African National Congress (ANC) (1994). The Reconstruction and Development Programme; A policy framework. Johannesburg: Umanyano Press. Botha, N. (2004). CIOB Leading the way, Future build. Johannesburg, South Africa. Cairns, J. (2004). Key focuses areas for the precast concrete. Future builds. Johannesburg, South Africa. Diplo, K. (2004). SA toll-road developer secures Hungary concession, Engineering Newspaper. Johannesburg. Mashiya, N S. (1996). The role of commercial banks in financing small, medium and micro enterprises in the Greater Soweto, Johannesburg, South Africa. Grobler, S. (1998). Council of South African Banks (COSAB), Public Hearings on the white paper on land policy. Pretoria, South Africa. Marthin, P. (2004). Engineering Newspaper. Johannesburg, South Africa.
86

Myburg, P. (2004). Beware the shadow line. Construction World Magazine. Johannesburg, South Africa. Maas, Nico (2003). Sustainable growth the issues. SA Builder Bouer. Johannesburg, South Africa.

Prescott, John (2004). Good planning will create sustainable communities, http://www.ciob.org.uk/articles/acttoaff.htm.Accessed on 2005/04/17.

Statistics South Africa (2006). Labour Force Survey 2006. Statistics South Africa, Pretoria. The DTI (2004). Nation Small Business Amendment Act, Act No.29: p 14. No. 27101.

87

UNCOVERING THE ORIGINS OF VARIATION ORDERS

Ndihokubwayo R1, Haupt TC2
1

MTech Research Scholar, Faculty of Engineering, Department of Built Environment, Southern Africa Built Environment Research Center, Cape Peninsula University of Technology, ndihokubwayo2000@yahoo.com, Tel No. +27 21 959 6317/6637, Mobile +27 73 721 5859 Research Coordinator, Southern Africa Built Environment Research Center, Faculty of Engineering, Cape Peninsula University of Technology, Tel No. +27 21 959 6845/6637, Mobile +27 82 492 9680

ABSTRACT Purpose of this paper - This paper attempts to identify the origin of variation orders in order to determine their impact on waste. The study is part of the undergoing research analyzing the impact of variation orders on project performance. Methodology/Scope - Extensive relevant literature review has been provided. A case study was done on two completed apartment complexes in Cape Town. Origin agents of variation orders were identified. Findings - An exploratory study was done on residential and shopping apartment complexes. Both projects incurred delays and time for completion escalated at 33% and 9% over the original completion time on both respective projects A and B. Arguably, numerous changes during the construction stage influenced time overruns. On project A, a contractor incurred a penalty of R923,000 amounting at 3% of the original contract sum R28,315,000. A total number of 75 and 118 variation orders averaging 8% (R2,076,600) and 4% (R 2,032,919) of the contract sum occurred on both projects. On both projects, the client and consultant combined were the predominant origin agents of variation orders. On project A, the client and the consultant combined generated 89% (67 no) of variation orders. In monetary terms these corresponded to 93% (R1,928,741) of the net total sum. On project B, the client and the consultant combined generated variation orders 95% (111 no) of variation orders. In monetary terms these corresponded 92% (R1,865,862) of the net total sum. Research limitations - The study was confined to a limited number of apartment-type construction projects. The predominant origin agent should be further investigated. Practical implications - The findings uncovered the waste associated with variation orders and revealed the predominant source of variation orders as a proactive measure to reduce them. Value - This paper explores the impact of variation orders on project performance. Keywords: Origin agents, Variation Orders, Waste. 1. INTRODUCTION A construction contract is a business agreement that is subject to variability. Contractual clauses relating to changes allow parties involved in the contract to freely initiate variation orders within the ambit of the scope of the works without alteration of the original contract. Variation orders involve additions, omissions, alterations and substitutions in terms of quality, quantity and schedule of works. Without contractual clauses, the building contractor would have to agree to erect without any change the building shown on the drawings and represented in the bills for a contract sum. Ssegawa et al (2002:89) argued that the spirit in which variation orders are permitted allows the
88

contract to proceed without compiling another contract to cater for the changes. Most contracts make provisions for possible variations given the nature of building construction (Finsen 1999:109; Wainwright & Wood 1983:11). A degree of change should be expected since it is difficult for clients to visualize the end product they procure (Love 2002:19). Unforeseen conditions1 may arise which require measures that have not been provided for in the contract (Finsen 1999:109). However, the disadvantage of the variation clause is that architects tend not to crystallize their intentions on paper before the contract is signed because they know the variation clause will permit them to finalise their intentions during the term of the contract (Wainwright & Wood 1983:11). An unfortunate aspect of the variation clause is that it tends to encourage clients to change their minds and embark on building projects without having properly thought through their project requirements (Finsen 1999:109). Traditionally, the client's prima perceived requirements include functionality, durability and optimality. In order to achieve these requirements, clients hire consultant teams to advise them on design and optimum use of resources. On the other hand, contractors concern themselves predominantly with construction costs and their reduction. Little recognition is given to the fact that the clients or their agents may be sources of higher construction costs. Clients and consultants typically forget that issuing numerous variation orders result in higher construction costs. For example, a client who targets a completion date may want works to start on site while the design is still at a sketchy stage. In some cases, the construction works may overlap the design where the contractor will have to wait for the detailed design. As a result, some works are put on hold and others are subject to abortion or demolition. Arguably, the costs for aborted works are wastage of resources and are typically transferred to the client. They contribute to higher construction delivery costs. The construction industry does not grasp that the reduction of the occurrence of variation orders may optimally lower construction delivery costs. Ibbs (1997:308) concluded that the greater the amount of change the greater the negative impact on both productivity and cost. 2. NATURE OF VARIATION ORDERS The nature of a variation order can be determined by referring to both the reasons for their occurrence and subsequent effects. (Arain & Pheng 2005:498) distinguished two types of variation orders, namely: beneficial and detrimental variation orders. 2.1 Beneficial variation orders A beneficial variation order is one issued to improve the quality standard, reduce cost, schedule, or degree of difficulty in a project (Arain & Pheng 2005:498). It is a variation order initiated for value analysis purposes to realize a balance between the cost, functionality and durability aspects of a project to the satisfaction of clients. A beneficial variation order eliminates unnecessary costs from a project; and as a result, it optimizes the client's benefits against the resource input by eliminating unnecessary costs. However, it should be noted that regardless of how beneficial a variation order might be, non value-adding costs are likely to accrue as a result. For example a variation order to solve the discrepancies between contract documents involves the abortion of works that have already been executed. Cost for aborted works should not have been incurred if discrepancies were not found between contract documents. 2.2 Detrimental variation orders A detrimental variation order is one that negatively impacts the client's value or project performance (Arain & Pheng 2005:498). Arguably, a detrimental variation order compromises the
Such as for example adverse ground conditions affecting foundations, which become apparent only during excavation.
1

89

client's value system. A client who is experiencing financial problems may require the substitution of quality standard expensive materials to sub-standard cheap materials. For example, on a construction project situated in a salty environment, steel window frames result in steel oxidation if selected in lieu of timber, aluminium or PVC frames. 3. IMPACT OF VARIATION ORDERS ON PROJECT PERFORMANCE Given a well-structured schedule of works, the maximum project performance would be achieved if the work invariably flows smoothly within time limits and anticipated budget. However, it is rare that projects perform precisely to their original schedule due to various reasons including for example market conditions changes and corrections to design. Arguably, the occurrence of variation orders has an adverse impact on project performance. Thomas et al (2002:144) believed that variability generally impedes project performance. Ibbs (1997:308) concluded that variation orders have tremendous effect on the project performance as they adversely affect the productivity and costs. Arain & Pheng (2005:285) argued that variation orders are unwanted but inevitable reality of any construction project. Hanna et al (2002:57) indicated that projects impacted by variation orders cause the contractor to achieve lower productivity level than planed. The discussion on the adverse impact of variation orders on project performance will cover following areas: cost overruns, time overruns, quality degradation, health and safety issues and professional relations. 3.1 Cost overruns Various studies have revealed that variation orders contribute to construction cost overruns. The study of the effects of variation orders on institutional building projects revealed that variation orders contributed to increase in construction project cost (Arain & Pheng 2005:506). The analysis of variation orders for twelve combined sewer overflow projects revealed the cost escalation of 7% of the original projects cost (Mohamed 2001). The more the variation orders, the more they affect the overall construction delivery cost. In fact, the occurrence of variation orders has direct and indirect cost implications. Direct costs constitute the additional costs incurred to perform the activities of the current variation orders. The direct costs associated with variation orders include the following: o Resources used including labour, material and plant to carry out the actual variation order; o Increase in overheads-related charges and professional fees; o Cost of resources that were used to carry out the aborted or substituted works; o Cost of demolition of aborted or substituted works; o Cost for resources lying idle before the ordered task restarts. Resources include charges for plant hire and paid time for labour loitering around while waiting for instruction. While the direct costs associated with a variation order would be easily calculated, Bower (2000:264) argued that indirect costs of a variation order are difficult to quantify. Indirect costs are those incurred as a result of the occurrence of a variation order, whether they are apparently linked to it or not. These include: o Rework and making good on affected trades other than the actual variation order. It was revealed that the cost of rework caused by variation orders accounted for more than four-fifth of the total costs of rework (Love & Li 2000:483). o Change in cash flow due to effect on inflation and financial charges; o Loss of productivity due to interruption of works where the gang has to familiarise with new working conditions, tools and materials; o Cost for redesign and administration of the variation order. o Litigation-related costs in case disputes arise due to variation order. However, all variation orders do not increase cost of construction. Ssegawa (2002:91) indicated that omissions in most cases reduce costs while additions increase costs.

90

3.2 Time overruns Various authors agree that variation orders could be one of the reasons behind project time overruns (Chan & Yeong 1995:467, Mohamed 2001:1). It is anticipated that a project finished within the shortest time achieves some monetary savings. Unfortunately, each additional day on a project implies additional money. It was revealed that the variation orders issued during various phases of construction projects negatively affected both project's completion time and cost increase (Koushki 2005:292). Hanna et al (2002:63) revealed that the more the variation order occurrence the more significant productivity losses. The productivity is the amount of output over a unit of time. Therefore, the loss productivity implies loss of time and subsequent delays. 3.3 Quality degradation If variation orders are frequent, they may affect the quality of works. Quality may be compromised because contractors tend to compensate for the losses incurred to variation orders. 3.4 Health and Safety The occurrence of variation orders can affect health and safety condition. This is because change in construction methods, materials and equipment may require additional health and safety measures (Arain & Pheng 2005:500). 3.5 Professional relations A construction project is not a mere brick and mortar brought together. Rather, it creates professional relationships between parties to the contract. Each project successfully completed constitutes an added experience to participants and their reputation builds up. But disputes may arise between parties to the contract owing the occurrence of variation orders. Misunderstanding may arise when the contractor is not satisfied with the judgment of the consultant in terms of a fair valuation of a variation order. Bower (2000:264) argued that parties to a contract have been left to argue over the cost, time effects and due compensation of a variation order. Since the contractors are pessimist of the outcome of the negotiations, they usually allow higher value than the really cost incurred. Bower (2000:264) opined that this causes the contention between parties as the contractor continually push the client to settle the claim for additional costs while invariably feeling that the reimbursement has been insufficient. As a consequence, this can be very damaging to relationship between all parties representatives (Bower 2000:264). Charoenngam et al (2003:197) remarked that disputes between the client and the contractor can occur if the variation order undertaking is not managed carefully. Harbans (2003:42) warned that unless a mutually acceptable solution is agreed by the parties, valuation of variation would remain at the forefront of disputes and claims making their way ultimately to arbitral tribunals or the corridors of justice. Ssegawa (2002:92) revealed that more than one-third of disputes occurs pertain to how to ascertain losses arising from variation orders. The excessive occurrence of variation orders due to design errors or omission may undermine the professionalism of the designer. Further more, workers get demoralised when they demolish a portion of work that has already been done. 4. WASTE ASSOCIATED WITH VARIATION ORDERS 4.1 Concept of waste vis--vis variability The paradigm of waste as used in construction has various meanings depending on one's point of view. Very often, waste has been referred to as physical losses of material occurring during the construction process. Formoso et al (1999:327) argued that most studies on waste are based on conversion model in which material losses are considered to be synonymously to waste. According to Formoso et al (1999:328), waste is defined as any inefficiency that results in the use of equipment, materials, labour, or capital in larger quantity than those considered as necessary in the production of the building. However, it should be understood that the contractor recognises allowable waste as the percentage for losses of material allocated to bill rate components by the
91

estimator at tender stage and it varies from one material to another. Unfortunate the existing estimating and contact valuation techniques do not provide a clear breakdown of losses of materials resulting from variation orders. For example cement that hardens into the stores following a variation order to stop works is not allocated to variation orders account. Waste of materials resulting from the occurrence of variation orders may be incurred in following circumstances: o Compensating waste arising when material ordered for one specific purpose is used for another. For example, facing bricks ordered for external wall erection may be used for internal plastered walls when there is a shortage of common bricks. o Waste due to the uneconomic use of plant arising when the plant lies idle on site as a result of a variation order. Saukkoriipi & Josephson (2006:292) estimated the waste for non-productive use of resources at more than 10% of a project's production cost. o Waste of materials due incorrect decision, indecision or inconsistence inspection of works by the project consultant. o Waste of materials after demolition of a portion of work caused by the variation order to change a trade. For example waste for breaking a wall to accommodate a new door. o Waste due to wrong use of material or waste stemming from materials wrongly specified. Some authors defined waste beyond physical losses of materials. Al-Hakim (2005:1) defined waste as anything that adds no value to producing the required services. The value consists of two components: production performance and freedom from defects (Koskela 1992:38). The production of services requires resources and flow of activities over a certain portion of time. According to Koskela (1992:2), the 2new philosophy of production consists of both conversion and flows: since only conversions add value, the improvement of flow activities should primarily be focused on reducing or eliminating them, whereas conversion activities have to be made more efficient. Therefore, waste reduction is enhanced by avoiding flow variability. 4.2 Identification of the origin and cost of variation orders Although none can ensure that variation orders can be avoided completely (Mohamed, 2001) their occurrence and subsequent waste can be prevented if their origin and causes were clearly known. A variation order is a transfer of information from one part to another indicating a needed change. The identification of the root causer consists into the revelation of the initiator of a variation order. Arain & Pheng (2006) identified four origin agents of variation orders. These included "client', "consultant", "contractor" and "others". In addition to knowing the origin agent of a variation order, it is imperative to know what might have been the incident for a variation order to be issued. A classification of categories/types rework (Love & Sohal, 2003) revealed the causes or the circumstances under which variation orders could be initiated as follows: 1. Design change: change that arises from the client/consultant, contractor, occupier and supplier/manufacturer or change initiated for improvement purpose. 2. Design error: errors are mistakes made in the design. 3. Design omission: design omission results when an item or component is omitted from the design. 4. Construction change: a change in method of construction in order to improve constructability or due to site conditions. Change may be made by the client, the consultant or the occupier after some work has been performed on site. Change may be made if the process or product needs` to be altered/rectified or if there is a need to improve quality. 5. Construction error: construction errors are the result of erroneous construction methods procedures. 6. Construction omission: construction omissions are those activities that occur due to omission of some activities during the construction.
New philosophy of production refers to an evolving set of methodologies, techniques and tools, the genesis of which was in the Japanese JIT (Just In Time) and TQC (Total Quality Costs) effort in car manufacturing (Koskela 1992)
2

92

7. Damage: damage may be caused by accident or inclement weather. 5. SCOPE OF THE STUDY The study is undertaken in South Africa, a developing country where the construction industry is booming. While existing infrastructures and buildings are upgraded with newly built ones; the backlog in housing and infrastructure delivery, the deficit of skills, the high construction delivery costs and quality standards related problems are the current challenges faced by the construction industry. While there is a great concern that construction delivery costs are too high; recently, studies have been initiated in Sweden to investigate the existence of non value-adding (waste) activities into all phases of construction phases that give rise to construction costs. Subsequently, similar studies are undertaken in South Africa in order to uncover waste within various activities/practice in construction projects. It is anticipated that the reduction of waste would contribute to reduction of construction delivery costs. 6. METHODOLOGY A comparative analysis of cost variability was done on two completed apartment complexes. Primary data was obtained from a reputable cost consultant company in South Africa. The company kept comprehensive records including short descriptions, monetary values and reasons for cost variability. The contractor and the consultant team involved into the projects were not reachable for interview. Cost variations were recorded in a table according to the four origin agents and seven causes of variations identified from the literature. Namely the origin agents included the "client", the "consultant", the "contractor" and "others". In this context, "client" included the development initiator and occupiers/tenants who financed the projects. "Consultant" included the whole professional team that represented the client. "Contractor" included the main contractor and his subcontractors. "Others" included weather conditions, state regulations or any other conditions beyond control of either party to the contract. Seven causes included design change, design error, design omission, construction change, construction error, construction omission and damage. Additional preliminary and general (P&G) costs were added as an eighth cause of cost variations. The occurrence of variation orders were first grouped by number and secondly by value. 7. FINDINGS AND DISCUSSIONS The tender sum for the residential apartment hereby known as project A was R28,315,000 and the original planned works duration was 9 months. The tender sum for the shopping apartment hereby known as project B was R61,617,996 and the original planned works duration was 11 months. On project A, there were numerous additional works associated with the continuously revised electrical works. The reinforcement for concrete slabs changed from post-tensioned to conventional rebar. As the contractor could not finish on agreed time, the extension of time of 25 days was granted. Unfortunately, due to a further failure to complete works during the revised completion period, the contractor was charged a penalty of R13,000 per day totaling R923,000 in 71 days. Penalty charge amount was 3% of the contract sum and the actual completion period was 12 months with an escalation of 33% above the original time schedule. Arguably, the numerous changes of electrical works contributed to delay. On project B, the contractor was granted an extension of time of 26 days which is a time overrun of 9% over the planned works duration. No penalty was charged to the contractor and the consultant's records did not show in details the reason behind such an extension.
93

Table 1 Origin-Causes of variation order matrix - Project A Cost variation occurrence by number Origin Agent 1 1. Client 2. Consultant 3. Contractor 4. Others Net tot 3 49 3 13 3 7 1 0 1 1 2 44 3 13 4 1 1 2 3 Causes 4 5 6 7 8 1 Tot (no) Percentage

3 64 2 6 75 Tot net amount

4% 85% 3% 8% 100% Percentage

Cost variation occurrence by value Origin Agent 1 1. Client 2. Consultant 3. Contractor 4. Others R89,593 R54,582 R98,327 R1,596,768 R83,360 -R101,208 R79,669 R3,738 ? 2 3 Causes 4 5 6 7 8 R171,825

R270,152 R1,658,589 R3,738 R144,121

13% 80% 0% 7%

Net tot R1,784,634 R83,360 -R101,208 R134,251 R3,738 R0 R0 R171,825 R2,076,600 100% Keys: 1. Design change, 2. Design error, 3. Design omission, 4. Construction change, 5. Construction error, 6. Construction omission, 7. Damage, 8. Preliminary &Generals Table 2 Origin-Causes of variation order matrix - Project B Cost variation occurrence by number Origin Agent 1 1. Clients 2. Consultant 3. Contractor 4. Others Net tot 81 4 13 2 13 28 53 4 2 3 10 3 11 1 2 3 1 2 0 2 Causes 4 5 6 1 7 8 2 41 71 1 5 118 Tot net amount 5 6 R1,640 R290,456 R12,395 R120,000 R34,660 7 590,000 R461,364 R1,404,500 R12,395 R154,660 23% 69% 1% 7% 35% 60% 1% 4% 100% Percentage Tot (no) Percentage

Cost variation occurrence by value Origin Agent 1 1. Clients 2. Consultant 3. Contractor 4. Others R314,385 R1,049,009 R82,135 2 3 -R444,661 -R17,100 Causes 4

Net tot R1,363,394 R82,135 -R461,761 R410,456 R47,055 R1,640 R0 R590,000 R2,032,919 100% Keys: 1. Design change, 2. Design error, 3. Design omission, 4. Construction change, 5. Construction error, 6. Construction omission, 7. Damage, 8. Preliminary &Generals

Table 1 and 2, records the cost of variation orders, grouped by origin agents and causes in respective projects A and B. The consecutive breakdowns of cost variability into the origin agent and causes were done following the listing provided into the literature review. 75 and 118 variation orders occurred in respective projects A and B. On project A, 85% (64 no) variation orders originated from the consultant. Their value corresponded to 80% (R1,658,589) of the net total sum (R2,076,600) of variation orders. Arguably, this origin agent might be overestimated. These in reality originated with the client since the consultant issued instructions on behalf of the client. A discussion with parties that were directly involved into the projects would have revealed the exact origin agent. The client and the consultant combined generated 89% (67 no) of variation orders. In monetary terms these corresponded to 93% (R1,928,741) of the net total sum. On project B, 60% (71 no) variation orders originated from the consultant. Their value corresponded to 69%
94

(R1,404,500) of the net total sum (R2,032,919) of variation orders. As earlier argued, this origin agent might be overestimated. The client and the consultant combined generated 95% (111 no) variation orders. In monetary terms these corresponded to 92% (R1,865,862) of the net total sum. It is evident that on both projects A and B the client and the consultant were the predominant origin agents of variation orders. 8. CONCLUSIONS The extensive literature review uncovered waste associated with variation orders. It was revealed that variation orders cannot be avoided completely since construction works involve complex operations that cannot be accurately determined in advance. It was argued that whenever a variation order is issued, unnecessary costs are likely to occur and these constitute a waste of resources and as a result, they contribute to higher construction delivery cost. The costs of a variation order include direct and indirect cost. An exploratory study was done on residential and shopping apartment complexes. Both projects incurred delays of and time for completion that escalated at 33% and 9% of the original completion time on both respective projects A and B. Arguably, numerous changes during the construction stage influenced time overruns. On project A, a contractor incurred a penalty amounting at 3% of the original contract sum. A total number of 75 (R2,076,600) and 118 (R 2,032,919) variation orders averaging 8% and 4% of the contract sum occurred on respective projects. On both projects, the client and consultant combined were the predominant origin agents of variation orders. On project A, the client and the consultant combined generated 89% (67 no) of variation orders. In monetary terms these corresponded to 93% (R1,928,741) of the net total sum of variation orders. On project B, the client and the consultant combined generated 95% (111 no) variation orders. In monetary terms these corresponded to 92% (R1,865,862) of the net total sum of variation orders. Further studies should focus on what could be done to minimize variation orders by taking particular attention to predominant origin agents including the client and consultant. 9. REFERENCES Al-Hakim, L. 2005. Identification of Waste Zones Associated with Supply Chain Integration, SAPICS 27th Annual Conference and Exhibition, Sun City, South Africa. Retrieved June 29, 2007, from http://eprints.usq.edu.au/archive/00000209/01/042_alhakim4.pdf Arain, F.M. & Pheng, L.S. 2005. The potential effects of variation orders on institutional building projects, Facilities, 23(11/12). p. 496-510 Arain, F.M. & Pheng, L.S. 2006. Developers' views of potential causes of variation orders for institutional buildings in Singapore, Architectural Science Review, 49(1). p. 59-74 Bower, D. 2000. A Systematic Approach to the Evaluation of Indirect Costs of Contract Variations, Construction Management and Economics, 18(3). p. 263-268 Chan, A.P.C. & Yeong, C.M. 1995. A Comparison of Strategies for Reducing Variations, Construction Management and Economics, 13(6). p. 467-473 Charoenngam, C., Coquinco, S.T. & Hadikusumo, B.H.W. 2003. Web-Based Application for Managing Change Orders in Construction Projects, Construction Innovation, 3. p. 197-215

95

Finsen, E. 1999. The Building Contract - A Commentary on the JBCC Agreements, 1st ed., Cape Town: Juta & Co, Ltd. Fomoso, T.C., Isatto, E.L., Hirota, E.H. 1999. Method for Waste Control in the Building Industry, Proceedings, 26-28 July 1999, University of California, Berkeley, CA, USA, p. 325-334 Hanna, A.S.P.E., Calmic, R., Peterson, P.A., Nordheim, E.V. 2002. Quantitative Definition of Projects Impacted by Change Orders, Journal of Construction Engineering and Management, 128(1), p. 57-64 Harbans, S.K.S. 2003. Valuation of Varied Work: A Commentary, In: Buletin Ingenieur, The Board of Engineers Malaysia, 20(3), p. 32-42 Ibbs, C.W. 1997. Quantitative Impacts of Project Change: Size Issies, Journal of Construction Engineering and Management, 123(3). p. 308-311 Koskela, L. 1992. Application of the New Philosophy of Production in Construction, Technical Report #72, Centre for Integrated Faculty Engineering, Stanford University, Finland. Retrieved Nov 24, 2007, from http://www.byggeevaluering.dk/db/files/koskela1992_tr72.pdf Koushki, P.A., Al-Rashid, K. & Kartam, N. 2005. Delays and Cost Increases in the Construction of Private Residential Projects in Kuwait, Construction Management and Economics, 23(3), p. 285294 Love, P.E.D. 2002. Influence of Project Type and Procurement Method on Rework Costs in Building Construction Projects, Journal of Construction Engineering and Management, 128(1), p. 1-29 Love, P.E.D. & Li, H. 2000. Quantifying the Causes and Costs of Rework in Construction, Construction Management and Economics, 18(4), p. 479-490 Love, P.E.D. & Sohal, A.S. 2003. Capturing Rework in Projects, Managerial Auditing Journal, 18(4). p. 329-339 Mohamed, A.A. 2001. Analysis and Management of Change Orders for combined Sewer over flow construction projects, Dissertation, Wayne State University Saukkoriipi, L. & Josephson, P.E. 2006. Waste in Construction Projects: A client Perspective, p. 292-293, In: Pietroforte, R., De Angelis, E. & Polverino, F. 2006. Construction in the XXI Century: Local and Global Chalenges, Joint 2006 CIB W065/W055/W086 Symposium Proceedings, 18-20 October 2006, Rome, Italy. Ssegawa, J.K., Mfolwe, K.M., Makuke, B. & Kutua, B. 2002. Construction Variations: A Scourge or a Necessity?, Proceedings of the First International Conference of CIB W107, 11-13 November 2002, Cape Town, South Africa, p.87-96 Thomas, H.R., Horman, M.J., De Souza, U.E.L., Zavski, I. 2002. Reducing Variability to Improve Performance as a Lean Construction Principle, Journal of Construction Engineering and Management, 128(2) pp. 144-154 Wainwright, W.H. & Wood A.A.B. 1983. Variation and Final Account Procedure, 4th ed. Hutchinson: Nelson Thornes ltd.
96

QUALITY MANAGEMENT IN CONSTRUCTION PROJECT DESIGN AND MANAGEMENT

Conradie D.C.U1, Roux E2
1 2

Built Environment Unit, CSIR. dconradi@csir.co.za Tel. No. 012-8412218 Built Environment Unit, CSIR. eroux@csir.co.za Tel. No. 012-8413007

ABSTRACT Purpose of this paper - The aim of this paper is to propose the use of simulation to improve design quality and to introduce new opportunities to use quality management throughout the various development stages of construction projects. The paper will attempt to identify the opportunities and implications of quality management with specific emphasis on construction project management during the feasibility study, design, construction planning and construction building life cycle phases. The construction industry has been slow to introduce the benefits that can be offered by various advanced predictive simulations. Methodology/Scope The scope of this paper is limited to the exploration of the problems of architectural design with reference to precedent research and to two recent case studies undertaken by means of a recently developed computational simulation tool used to improve the various building life cycle phases. Findings Simulation validates and tests various design assumptions long before construction begins. Better evaluation of design alternatives by means of simulation will contribute positively to construction project design, quality and management. Many lesser known manufacturing techniques can contribute significantly to the improvement of the life cycle phases of a building. Practical implications Improved quality will ensure that the design of buildings is significantly improved leading to less construction waste and to optimum performance of the building operation and management stages. This will lead to significant cost savings both with regards to the project cost and to the cost to the environment. Value - The use of appropriate quality techniques supported by predictive simulation will ensure that the design solution space for a given set of design constraints for a specific building is sufficiently explored. Keywords: simulation, design, quality management, construction project management 1 INTRODUCTION The aim of this paper is to propose the use of simulation to improve design quality and to introduce new opportunities to use quality management throughout the various development stages of construction projects. The authors reason that appropriate simulations might be one of the best ways to evaluate various design solutions. The extensive use of simulation in the recently completed New York Times building and the Federation Tower in Moscow illustrates the point. The main advantage of simulation is that different solutions can be evaluated and design problems can be detected well before construction. This will reduce the cost of design mistakes while at the same time improving quality. Simulation offers a way to evaluate and test new high performance
97

construction materials and finishing techniques. Simulation can advance the use of renewable energy sources and natural materials such as wood. On-line simulation systems such as the Massachusetts Institute of Technology (MIT) Design Advisor are already able to assist designers and contractors with regards to comfort, energy, natural ventilation, day lighting and life cycle cost of energy and CO2 emissions. Simulation will make required quality improvements visible and will also make acceptance decisions easier. Vitruviuss principles of architecture, as originally published in his ten books on architecture (Morgan, 1960) between 80/70 BC 25 BC, are still relevant today. He asserted that the fundamental principles that a structure must exhibit are utilitas (purpose and use), firmitas (material and construction) and venustas (proportion and scale) (Blaser, 1990). The world has changed significantly since then. Modern designers are confronted and have to come to terms with numerous requirements and constraints that should inter alia lead to greener and innovative buildings, sustainable designs, efficient energy use and accessibility/inclusive design. A building is a special artefact or product. The design of buildings is an activity that integrates the bodies of knowledge present in the arts and sciences (Pugh, 1996). However, the balance between art and science for a fossil-fuelled power station, family house, textile fabric, sculpture, painting and textile loom differs significantly. One of the important production tools in the architectural design office is Computer Aided Design (CAD). Unfortunately over the past 35 years commercial CAD systems have had little impact on the early, conceptual stages of design. This is the phase where the maximum benefit over the life cycle can be realised at the minimal cost. This inadequacy is further exacerbated by the pressing need to follow a total life cycle approach to architectural briefing and design. Eastman (1999) indicates how many efforts have been put into developing databases to support architectural design and construction. Except in special cases, these efforts have not been very successful. Since approximately 1990, in an attempt to address the shortcomings of CAD, architectural CAD researchers have been focussing their attention on the cognitive aspects of the architectural design process. They have been constructing models of architectural design knowledge and reasoning. They developed data structures to represent them computationally. Although the models are unique to the discipline of architectural design they were borrowed and adapted from other disciplines such as Artificial Intelligence (AI) and product development. Due to the complexity of design, systems for design have often defined the task with artificial narrowness (Hinrichs, 1991). In the past, progress in AI was made by limiting the universe of discourse or even closing it in an attempt to simplify the enormous complexity of design problems. Kolodner (1993) is of the opinion that engineering and architectural design are almost entirely a process of adapting old solutions to fit a new situation or merging several old solutions to do the same. Carrara et al. (1994) agree with this viewpoint when they characterize design as: 1. Defining a set of functional objectives that ought to be achieved by the design artefact. 2. Constructing design solutions which, in the opinion of the designer, are (or should) be capable of achieving the predetermined objectives. 3. Verifying that these solutions are internally consistent and that they achieve the objectives. Richens (1994) strongly disagrees with this point of view when he claims that architectural objectives usually include functional ones but are dominated by less definable intentions. Flemming (1994) states that attempts to introduce machine innovation and creativity are red herrings. Oksala (1994) expresses the opinion that it is realistic to design machines that work as architectural design assistants and are capable of re-designing work according to given rules.
98

To implement the systems the following four typical approaches were used (Hinrichs, 1991): Selection. Select components to instantiate a skeletal design. Selection problems are typically constraint satisfaction problems in which all variables to be satisfied are known ahead of time. The components are given as if from a catalogue. Configuration. Arrange a given set of components. Configuration is related to selection, however, it concentrates on the relationship between components rather than the components themselves. Parametric. Fix numeric parameters. Parametric problems are similar to selection problems except that the components are quantities and the task is usually to optimise or partially satisfy constraints. Constructive. Build up design from components. Constructive design is analogous to planning in that components take on the role of operators or actions. Typically, the space of components is fixed throughout the design process. In CSIR researchers of the Built Environment unit initially followed abovementioned research and had useful precedents where attempts were made to improve architectural design in projects such as Architectural Evaluation and Design System (AEDES) (Conradie et al, 1999), Architectural General Object System (ARGOS) (Conradie, 2000) and a space norms research system created for the Department of Public Works, ESPACE, (Republic of South Africa, Government Gazette Vol. 483, 2005). Knowledge-age drivers have a significant impact on the product development process. This suggests that the construction industry needs to be improved in general and the architectural briefing and design specifically if it is to remain competitive and appropriate. Although there are similarities between product development and architectural design there are also significant and problematic differences (Conradie, 2000).

99

Figure 1: Ability to influence system characteristics (Based on Sparrius, 1998). The global drivers of the new market place are (Agility Forum, 1997): Ubiquitous availability and distribution of information. Accelerating pace of change in technology. Rapidly expanding technology access. Globalisation of markets and business competition. Global wage and job skills shift. Environmental responsibility and resource limitations. Increasing customer expectations. These challenges imply the need to design and develop families of products by networks of firms on compressed development schedules. The designer of the artefact must have increasingly more knowledge regarding the life cycle costs of a product at the conception of the design problem. At this stage few decisions have been made and little cost has been committed to production. Designers are under pressure to apply state-of-the-art upstream design techniques to improve quality while decreasing downstream costs. Sparrius (1998) postulated that in service problems experienced downstream are symptoms of neglect upstream. Upstream problems can only be solved upstream. The ability to influence a systems characteristics diminishes rapidly as the system proceeds from one phase of its life cycle to the next (Figure 1). Although architectural practitioners have not traditionally been seen as being in the business of manufacturing products, research publications (Pugh, 1996), (Anumba et al., 1997) indicate strong similarities between the construction industry and the manufacturing industry. Both industries design and build physical artefacts/products to satisfy specific client requirements in a specific environment. They also follow similar design-build processes.
100

Hinrichs (1991) stated that architectural design tasks take place in an open world. An open world is a problem-solving situation in which knowledge is incomplete or inconsistent. A designers knowledge can be incomplete in several ways: Open categories. The set of possible solutions for a particular design problem is open. Incomplete domain theories. In architecture the designers theory of his domain is incomplete. He/she may not know or be able to retrieve all the causal relationships and facts relevant to a given problem. Under-specified problems. Design problems that are under-specified have solution criteria that are incomplete. This means that the class of solutions forms an open category. If a problem is under-specified the solution needs to be satisfactory rather than absolutely correct. The ability to determine when a design solution is adequate is critical. The generation of plausible solutions for a given design problem is problematic. The generation of a solution is difficult for the following reasons (Hinrichs, 1991): The design problem spaces are not enumerable. There is no function that permits a designer to generate the next possible design. This implies that application guides, standards and norms will not necessarily lead to quality design but can only attempt to improve design. Design constraints are not constructive. The constraints of a design problem do not directly suggest solutions. Constraints on most design problems rule out an infinite number of possible designs and possibly still permit an infinite number. Categories in the design vocabulary are fuzzy and subjective. Design problems are not described by necessary and sufficient conditions but by experience and perceived client expectations. The design solutions of today are often characterized by designs we have known from the past. Hinrichs (1991), being an artificial intelligence researcher, thought that this indicated that creative designs should be generated from experience such as the use of Case-based Reasoning (CBR) and not deductive rules. Problems may be barely decomposable. It is sometimes possible to break problems down into smaller sub problems. However, these sub problems tend to be highly interconstrained. Researchers in the Artificial Intelligence field of CBR thought that this indicated that new designs should be based on previous proven designs in order to expedite the design process. The reason is that these previous proven designs could be modified when required saving a significant amount of design time. This ignored the creative or art aspect of design mentioned above. Design occurs in multiple problem-spaces. Because it is sometimes necessary to decompose a problem the designer must work at different granularities such as the design of a door or an entire airport. 2 PRECEDENT SYSTEMS Research undertaken at CSIR in 1999 resulted in providing a rudimentary framework for a holistic total life cycle design methodology. CSIR wrote a prototype software system called AEDES (Conradie et al, 1999). In 1999, the results of this research were presented at the Eleventh Symposium on Quality Function Deployment (QFD) in Detroit (Conradie et al., 1999). AEDES was a first attempt to create an Integrated Project Environment that could span the entire life cycle of the facility. The system managed to use aspects of QFD, Systems Engineering and Concurrent Engineering. These are advanced manufacturing/product development techniques. The research team succeeded in creating a system that enables the designer to start with a raw client requirement and progress to the component level. Functional decomposition was used extensively.
101

The most significant shortcomings of the system were: An over emphasis of the functional decomposition (transformational approach) aspects led to a very rigid system that is very prescriptive to the creative people that were supposed to use it. It was difficult to map multiple functions from different main template categories identified in AEDES to physical structural elements. The team never fully achieved the objective of creating starter kits (cases at various levels of specificity) to expedite future designs. This was due to the fact that the benefits that AI could offer and specifically CBR were not known at the time. A starter kit is a simple architectural CAD drawing that contains a complete ideal layout of, for example, a hospital ward and could be used to rapidly design a hospital. This approach is useful in South Africa where there is currently a shortage of skilled designers. Another prototype CBR-enabled intelligent component system, called ARGOS, was developed for a doctoral thesis (Conradie, 2000). This system facilitates the storage of design information in cases that can be used on desktop computers over the total life of the facility. A life cycle information infrastructure based on Extended Mark-up Language (XML) was used as a basis for ARGOS. The storage of CAD drawings by means of the Internet standard, XML, was explored in detail. Due to the generic nature of ARGOS the range of possible applications is potentially large. The relationships of ARGOS to other intelligent data sources were also explored. A detailed parametric ARGOS graphical object was developed with the ability to switch between 2D and 3D modes. Internally the ARGOS design case could contain four main types of design information consisting of both alpha-numeric and graphic information. A short hypothetical runthrough, including empirical response tests, of how the ARGOS system might be used were described (Conradie, 2000). Empirical response tests were also conducted for a blackboard (spreadsheet) with 25, 50 and 100 ARGOS objects on different types of computers. This indicated that the ARGOS blackboard type of systems architecture that uses a spreadsheet is effective. Although exciting breakthroughs with the discovery of an intelligent component that could be used to bridge structured design methodologies and the creative aspects of design were made in this study, there were unfortunately a number of shortcomings such as: At the time of this research XML was not being used as a means to structure design knowledge. Subsequently XML became one of the most important standards to store design knowledge. ARGOS was very orthogonal and made the design of organic free flowing forms difficult. It was impossible to say if designers would accept this new type of blackboard autonomous component in design. 3 METHOD FOLLOWED Due to the generally unsatisfactory solutions offered by all of the abovementioned, the CSIR research team decided to study visual simulation and modelling in depth. This led to the establishment of a generic simulation platform called KRONOS based on a Building Product Model (BPM). KRONOS was the Greek god of time revered at the ancient Greek site of Olympia where the Olympic Games started in 776 BC. BPMs were originally developed to facilitate collaboration between different architectural and engineering design systems such as CAD. The KRONOS platform operates at three distinct levels, i.e. the model level that provides the static virtual world, the steering level that handles the movements of agents and the cognitive level where it is decided what the Belief-Desire-Intention (BDI) of the agents would be and how they are going to react to collisions (Bratman, 1987). Modern thinking in simulation recognizes the importance of
102

understanding complexity, inter-relatedness and correlation between various systems. Simulations in the built environment require both static and dynamic simulations. At the moment many static type of simulations such as energy evaluation, shading simulation, structural design, acoustical simulation and fenestration simulation are widely used in academia and industry. Two different case studies were undertaken to test the platform. The first study simulated people and vehicular movement for a new 7100 seat mega church. This property experienced severe traffic problems due to inadequate vehicular exits. The other case study was very different from the first one because there was no real perceived problem. The opportunity was used to observe first hand the behaviour of members of the public at the Stellenbosch Traffic Department (Figure 2) which is a public service centre with many service counters. The two case studies highlighted many deficiencies, such as inadequate support for complex queues, in the simulation software. Currently more advanced capabilities are being added to KRONOS to support traffic safety assessment simulation. In an attempt to improve the effectiveness of design in new buildings other simulations are currently being researched, for example, the simulation of sun and shade including natural daylight.

Figure 2: A typical 2D simulation of the Stellenbosch Traffic Department 4 SIMULATION 4.1 Introduction One of the most exciting opportunities to improve design quality or even simulate the construction process is the use of modelling and simulation. The full potential of simulation to improve design and construction quality has not yet been realised. Although mathematical modelling has been used for many years we are now alluding to the new generation of visual type of simulations. The recent significant progress in computer hardware, particularly high speed graphic hardware and software, greatly facilitates what can be achieved with this type of simulation. An important advantage of simulation is that it is non-prescriptive and does not force a designer to follow a specific method or rationale. It enables the designer to test what the effect of specific designs will be long before construction. This he can do without following the rigid methods of the transformational approach to design such as in formal systems engineering. In the case of 4 Dimensional (4D), i.e. 3 Dimensional (3D) and real time type of simulations, the different stages of the construction project can be rehearsed before the actual construction work starts. The following main types of visual simulation can be distinguished:
103

Computational Fluid Dynamics (CFD). Energy evaluation. Shading simulation. Structural design. Acoustical analysis. Fenestration analysis (Evaluating fenestration product for zero net energy construction). Miscellaneous multi-purpose simulations. Construction process simulation.

4.2 CSIR research Over the past two years, extensive research has been undertaken at the CSIR to establish a generic Computational Building Simulation (CBS) platform to support the design and evaluation of complex built environments (Conradie et al, 2007). To study or predict building performance requires both advanced static and dynamic capabilities. The CSIR research team created a modelling and simulation environment based on a BPM. Within this environment agents and props were placed to dynamically simulate and predict user behaviour. A KRONOS agent has the following characteristics: Real time free roaming or predefined movement. Reports observed phenomena. Support space-time experiments. Can communicate with each other and props. Programmable characteristics. An agent can be a person, vehicle, animal, pedestrian, in fact any entity that normally moves. A prop has the following characteristics: Physical shape. Mostly static. Observable by agents. Programmable characteristics. Props can be any static entity such as construction elements, furniture, notice boards, traffic signs or even the sun. The latter is an example of a super specialized prop because it moves slowly on a daily and annual basis. Complex mathematic formulas and ephemeris tables are used to calculate its movement. The data from the two case studies mentioned above which used KRONOS indicated that the approach is feasible. In an attempt to reduce the current high fatality rate on the Moloto Road in Mpumalanga, current work being done concentrates on the simulation and prediction of accidents. Other research includes the accurate modelling of the suns movement with a view to generate accurate real time or accelerated real time shadows and solar penetration analysis on various surfaces. This will form the basis of the improved use of daylight in buildings and the design of heliostat fields and the receiver for solar power generation (Figure 3).

104

Figure 3: The accurate simulation of solar diurnal and annual movement and projected shadows in KRONOS. 4.3 Advantages of simulation The following are advantages of simulation: Designs can be validated and explored before construction. 2 Dimensional (2D) documentation will gradually be replaced by integrated information in Building Product Models (BPMs). Design alternatives can be compared. The modelling of multiple physics becomes feasible. The use of photo-realistic real time animated architecture may be used. Immersive environments (virtual reality) can be used for design reviews. Multi-disciplinary BPMs are becoming commonplace such as ISO-STEP, CIMSTEEL, COMBINE on the basis of international standards such as International Association of Interoperability (IAI). Life cycle planning (Athena Institute. Impact Estimator and Eco Calculator) (Athena Institute, Accessed 18 February 2008) may be done. 5 FINDINGS Improvement in quality of the upstream building life cycle phases such as architectural feasibility study, design and construction planning and construction life cycle phases is not a trivial matter. Over the past 35 years, commercial CAD systems have had little impact on the early conceptual stages of design. However, it did improve the quality of production drawings significantly.
105

QFD and Kansei Engineering (KE) can significantly improve the quality of the conceptual stages of design. Teoriya Resheniya Izobretatelskikh Zadatch (TRIZ) (Kaplan, 1996) when combined with simulation can lead to significant improvements of design solutions because the technique is a powerful catalyst for out-of-the-box thinking. 6 CONCLUSION The use of predictive simulation will ensure that the design solution space for a given set of design constraints for a specific project is sufficiently explored. Improved quality will ensure that the design of buildings is significantly improved leading to less construction waste and optimum performance of the building operation and management stages. This will lead to significant cost savings both with regards to the project cost and to the cost to the environment.
BIBLIOGRAPHY

Agility Forum. 1997. Next-generation manufacturing. Bethlehem, PA: Agility Forum. Anumba, C.J., Baron, G. and Evbuomwan, N.F.O. 1997. Communications issues in concurrent lifecycle design and construction, in BT Technology Journal, 15(1), Jan. 1997. Athena Institute. No date. Impact Estimator and Eco Calculator. Available from: <http://www.athenasmi.ca/tools/ImpactEstimator/> [Accessed 18 February 2008]. Blaser, W. 1990. Richard Meier Building for Art. Basel: Birkhuser Verlag. Bratman, M.E. 1987. Intention, Plans, and Practical Reason. Cambridge: Harvard University Press. Carrara, G. and Kalay, Y.E. 1994. Knowledge-based computer-aided architectural design. Amsterdam: Elsevier. Conradie, D.C.U. 2000. The use of Software Systems to Implement Case-Based Reasoning Enabled Intelligent Components for Architectural Briefing and Design, (Pretoria: Ph.D. thesis Faculty of Engineering, the Built Environment and Information Technology), South Africa: University of Pretoria. Conradie, D.C.U., Gibberd, J., Mentz, F and Ras, H. 2007. Towards a Continuum of Computational Building Simulation Tools to Support the Design and Evaluation of Complex Built Environments. In Conference Proceedings of CIB World Building Congress, Construction for Development, Cape Town: 14-17 May 2007. Conradie, D.C.U. and Ksel, K. 1999. The use of QFD for architectural briefing and design, in Transactions from the eleventh symposium on Quality Function Deployment. Novi, Michigan: QFD Institute. Eastman, C.M. 1999. Building product models: computer environments supporting design and construction. New York: CRC Press. Flemming, U. 1994. Artificial Intelligence and Design: A mid-term Review, in Knowledge-based computer-aided architectural design. Amsterdam: Elsevier. Flemming, U. 1994. Case-based design in the SEED system, in Knowledge-based computer-aided architectural design. Amsterdam: Elsevier. Hinrichs, T.R. 1991. Problem Solving In Open Worlds: A Case Study In Design. PhD thesis, Atlanta: Georgia Institute of Technology.
106

Kaplan, S. 1996. An introduction to TRIZ: the Russian theory of inventive problem solving. Michigan: Ideation International, Inc. Kolodner, J. 1993. Case-Based reasoning. San Mateo, California: Morgan Kaufmann Publishers. Mazur, G. 2001. Theory of Inventive Problem Solving (TRIZ). Available from: <http://www.mazur.net/triz/>. [Accessed: 13 November 2007]. Morgan, M.H. 1960. Vitruvius: the ten books on architecture. New York: Dover Publications, Inc. Oksala, T. 1994. KAAD: Evolutionary and cognitive aspects, in Knowledge-based computer-aided architectural design. Amsterdam: Elsevier. Pugh, S. 1996. Creating innovative products using total design. Reading, MA: Addison Wesley. Republic of South Africa. Government Gazette Vol. 483. 2005. Space planning norms and standards for office accommodation used by organs of state. Notice 1665 of 2005. Pretoria: The government printing works. Richens, P. 1994. Does knowledge really help? CAD research at the Martin centre, in Knowledgebased computer-aided architectural design. Amsterdam: Elsevier. Sparrius, A. 1998. Specification Practices, in Course documentation, Ad Sparrius System Engineering and Management (Pty) Ltd. South Africa: Armscor Training Centre.

107

DEFECTS IN THE CONSTRUCTION INDUSTRY-THEN AND NOW

Zietsman R
PhD Student, Department of Quantity Surveying and Construction Management, University of the Free State, zietsmanr@cput.ac.za Tel No 021-4603347

ABSTRACT Purpose of this paper - The purpose of this preliminary research is to determine if progress has been made in the previous decade to alleviate the problems associated with faulty construction. The aim of the research is to determine whether problems identified in a previous study are still applicable currently. Methodology/Scope - The data collection was in the form of site visits where defects were recorded and interviews were held with relevant people in the construction environment. It was assumed that quality assurance procedures have been implemented in the industry to prevent faulty construction. Findings - The main findings of the research were that although quality assurance procedures have been adopted, very little attention were given to the value of construction inspections. Research limitations - The research was limited to the residential construction industry in the Cape Town Metropolitan Area. Value - This paper highlights the importance of construction inspection and students as well as persons responsible for construction-inspections should be made more aware of the value of proper construction-inspection. Keywords: Quality assurance, construction inspection, residential construction

INTRODUCTION Defective building construction not only contributes to the final cost of the product but also to the cost of maintenance, which can be substantial. Defective construction includes activities such as compaction not done to specifications leading to ground subsidence and eventual early deterioration of foundations. This may lead to the complete failure of a structure. Conditions under which building construction takes place are often far from ideal with the focus mainly being on speedy delivery. Defects resulting of inaccurate construction can be avoided by ensuring that proper inspection mechanisms are in place. The mechanism been discussed is in the form of inspection. All the activities taking place in the construction process can be clearly described and each activity can be inspected for accuracy independently. Although the inspection of accuracy forms part of the overall quality assurance techniques, little emphasis is placed on this. The problem of defective construction is been addressed in the construction industry by introducing Quality Assurance (QA) techniques developed in other industries. These techniques are still in the process of being adapted to suit the building construction industry. This paper extends the research reported by Assaf, Al-Hammad, Al-Shihah, (1995).
108

Previous studies Few studies have been conducted to determine the effect of defective construction on total construction cost and the final quality of the product in South Africa. Quality assurance is the concept adopted by most companies but resent research has found that effectively, this did not improve an organizations competitiveness and performance (Terziovski, Samson, Dow,1997). Most of the studies that are available originated in the European countries. The Building Research Establishment in the United Kingdom (UK) conducted a survey of building failure patterns and their implications and determined the most common defects. It was found that 35% of the defects were originated from faulty construction (Assaf, Al-Hammad, Al-Shihah, 1995). DEFECTS IN CONSTRUCTION In order to examine the quality of construction work in progress on a number of low-rise traditional housing schemes the Building Research Establishment mounted a major research project with the National Building Agency in 1993. The results were ranged according to frequency and the 35 most frequent defects was identified and listed (Assaf, Al-Hammad, Al-Shihah, 1995). Listed below are the causes of defects that were identified: Lack of inspection Making use of inexperienced, unqualified inspectors Avoiding and ignoring inspection completely Non implementation of corrective actions during the construction process Inaccurate measurement Making use of defective or damaged formwork Excavations to close to an existing building and exposing the foundations Non-conformance with waterproofing specifications Inability to read and understand/interpret drawings Insufficient concrete cover Improper construction of cold joints Loss in adhesion between materials Stripping formwork too early Unacceptable soil compaction procedures Inadequate curing procedures Lack of communication Non-compliance with specifications Inability to read and understand/interpret drawings Insufficient site supervision Lack of communication between the owner, architect/engineer, project manager Employing unqualified supervisors Speedy completion of certain activities specifically where equipment is on hire Unqualified labor force Multinational construction experience Defects resulting from the wrong selection of materials Using materials unsuitable for the climatic conditions Using cheap materials Making use of expired materials Inadequate storage facilities Misuse of equipment Equipment not performing to specification Lack of the proper equipment Cross referencing and detailed referencing on drawings lacking
109

Conflicting details on drawings Details of sections on drawings lacking

RESEARCH METHODOLOGY This study was done as a pilot project forming part of a PhD study. The first phase involved the determining of factors that had an influence on defects in construction work in the past. Phase two consisted of establishing to what extend these factors still play a role in defective in construction work currently. This was done by gathering data trough site visits, interviews and discussions with contractors, engineers, architects and clients. The results of the data gathered was analyzed and then compared to the list of known factors leading to defective construction. LIMITATIONS AND DELIMITATIONS The scope of this research was limited to the Cape Town Metropolitan Area, Western Cape Province. The residential construction sector in the Cape Town Metropolitan Area, Western Cape was identified as the subject area. Samples in the construction industry, representative of the aforementioned subject area, were taken on projects under construction. The study did not aim to identify new causes leading to defective construction, but rather to determine what progress have been made over the last decade to prevent these factors. DISCUSSION OF THE FINDINGS Lack of inspection. It is known that when construction inspection increases, quality increases. Residential contractors largely ignore this to save in expenditure. The opposite applies in that the lack of inspection leads to defective construction. Making use of inexperienced and unqualified inspectors. The level of qualification and experience of building inspectors at local council level as well as inspectors currently employed by the National Home Builders Registration Council is lacking. Contractors proceed with construction often as a result of time constraints. Condemnation of work is rarely found. This then result in poor construction quality. Avoiding and ignoring inspection completely. Owners avoid inspection deliberately for various reasons. The result is that the contractor performs the construction on his own and is not concerned as to the quality of the final product. Owners also avoid inspection in order to have construction done to their specifications, which does not comply with building regulations. Non implementation of corrective actions during the construction process. Owners insist being part of the communication channel between the inspector and the contractor which may cause delays. The owners should rather ensure that corrective actions, as required by inspectors, are immediately implemented. Inaccurate measurement. This occurs where the contractor under-measure or over-measure the sizes of building elements. An example of this is excessive joints in face-brickwork to accommodate inaccurate surveying. Varying plaster thicknesses to accommodate inaccurate brickwork or the combination of different elements not compatible is often the result of inaccurate measurement during the design stage. Inaccurate measurement also happens when material is to be mixed. The contractor can add more water to the concrete mix or to little cement with the result that the product does not achieve the required strength Making use of defective or damaged formwork. Damaged and defective formwork affects quality by producing honeycombing or surface cracks which allow for moisture penetration and eventual corrosion to the reinforcing
110

Excavations too close to an existing building and exposing the foundations. Contractors do not take the necessary precautions and in the process create unsafe conditions. This is often found where additions are done to residential structures. Vibration created during the backfilling and compaction process can cause continuous cracking along walls. Applying paintwork in unsuitable conditions. Generally paint is the final product applied to surfaces and can become a major activity if for example paintwork is performed under very wet conditions commonly found in the Western Cape region. This might lead to paint peeling and hence remedial work will need to be done. Existing paint will need to be removed and this might lead to further remedial work when painted surfaces are damaged. Non-conformance with waterproofing specifications. Waterproofing and the provision of adequate drainage are two areas where most contractors lack experience. In general contractors do not ensure that waterproofing membranes are suitably protected. The result is that the membranes are damaged and seepage occurs into the structure. Insufficient concrete cover. Contractors in general ensure that reinforcing is covered with the concrete but the specified thickness of the cover is not adhered to. The importance of 25mm or 40mm concrete cover to reinforcing steel is not really understood by contractors. Improper construction of cold joints. Cold joints are formed when new work is joined with old work. Examples in construction work are concrete joints formed when fresh concrete is placed next to concrete previously cast in structural members without ensuring a proper bond. The same applies where fresh plasterwork needs to tie in with excisting plasterwork and no provision is made for proper bonding. Loss in adhesion between materials. Contractors allow employees to use glues without providing instructions regarding usage. The result may be tiles coming lose or materials been damaged by using non-compatible chemicals in the bonding agent. Stripping formwork too early. This can result in deflection of structural components. Cracking because of excessive moisture loss may occur and affect the strength of structural components. Unacceptable soil compaction procedures followed by contractors. In order to save on costs, contractors do not backfill and compact the soil according to specifications. Rather than backfilling and compacting in layers, it is often only the top layer that is properly compacted. The result is that excessive settlement takes place at a later stage. Inadequate curing procedures. Contractors are not willing to spend the time and money to ensure correct curing procedures of concrete components. They do not realize the importance of correct curing and are pressed for time to deliver the final product. Lack of communication. A number of different nationalities are commonly found working together on construction projects. Each one communicates in his or her home language. The English language is mostly used in the construction industry. Difficulties arise when everyone is not fluent in English. These cause communication barriers between members of the project team. Non-compliance with specifications because of miss-reading it. Contractors think that they understand exactly what needs to be done but there might be a special specification which is not common and which is miss-read. The result is that time and effort spent during the design stage is wasted. Inability to read and understand/interpret drawings. Most people are able to easily interpret twodimensional drawings. Three-dimensional interpretations are not so easy and some people interpret them correctly. If the printed language used on the drawings is very technical, and inexperienced people have to gather information from it, mistakes can easily be made. Insufficient site supervision. Having to deal with different nationalities obviously necessitates accommodating various cultures. This may lead to serious problems for the project manager coordinating the employees. Lack of communication between the owner, architect/engineer and project manager. This often results in a frustrated contractor waiting for information and then relying on his own initiative to
111

resolve problems. At worst the contractor may use his own experience to ensure production is kept up. The result may be that the final product does not comply with the specification which may lead to re-work and construction defects. Employing unqualified supervisors. Employers do not have the benefit of validating the experience or qualifications of new employees that apply for positions. Applicants are more inclined to submit inflated information regarding their background than reverting to the reality. They are employed, based on the information provided by them, and the true level of their competency is only later established. Speedy completion of certain activities specifically where equipment is on hire. Contractors tend to focus more those activities in order to return the equipment as soon as possible. Unqualified labor force. There is a lack of experience and in the level of qualification of the general labor force. Contractors do not have the time or the resources to train the general workforce. The result is work been done of a low standard and quality. Multi-national construction experience. Different nationalities gain different construction experience in their respective countries of origin. When a project is undertook, making use of multi-nationals, the work is performed according to past experiences. Defects can result because of the wrong selection of materials. Different materials have different characteristics. Because of this the thermal expansion characteristics for example, will differ which may lead to the separation of materials that were actually meant to bond. Making use of materials that are unsuitable for the climatic conditions. Contractors mistakenly use materials designed for external use, internally. Materials that are designed to withstand outdoor conditions, fail when exposed to very humid conditions such as in bathrooms. Usage of cheap materials should not be encouraged. In general cheap materials are not durable and would last a limited period where-after it needs to be replaced. This leads to defects and higher maintenance cost. Making use of expired materials. Contractors often use material left over from previous projects without taking notice of the expiry dates. This may cause problems because of not conforming to specifications. Inadequate storage facilities. Material that may not be exposed to excessive heat is being left unprotected in the sun. Discoloration is often a result of this. Some materials become brittle and their characteristics changes when exposed to the sun. Misuse of equipment. Employees regularly use the wrong tool for the action required. This result in the wrong quality being achieved. An example is the high usage of angle grinders for work the grinder is not been designed for. Equipment not performing to specification. Equipment is often been neglected or not properly maintained resulting in failure in operation Unavailability of proper equipment. The unavailability of proper equipment may have the effect of causing delays on the program. It may also have the effect of work been done with equipment not suitable for the activity for example compaction been done with lightweight equipment resulting in compaction not achieving the desired density. Cross referencing and detailed referencing lacking. The speed required to prepare the drawings disallows time for proper referencing. This often is accommodated with site instructions. Conflicting details on drawings are very problematic. Mechanical drawings often show details only understood by the mechanical engineer. Conflicting details can also arise where as example the civil engineer and the electrical engineer do not consult or coordinate their respective drawings. The result is that the contractor has to resolve these discrepancies which take up time and leads to the slowing down of the construction process. Details of sections of structural sections, joints, plumbing, drainage and electrical connections are lacking, leaving it to the judgment of the contractor to resolve.

CONCLUSIONS
112

It was found that construction inspection is the factor that, not only ensures accurate building construction but also have an effect on the major portion of the listed causes leading to defects. Construction inspection relating to accuracy has a positive effect on the final quality of the product ensuring minimum defective work. More than 90% of contractors in the Cape Town Metropolitan area, have not allowed for construction inspection as an independent activity in the building program (Zietsman, R. 2004) Architects, Engineers and Contractors ranked construction inspection very high. The neglect of construction inspection was ranked the highest as reason for construction defects. Accuracy of work in process is ranked as highly important. The very nature of the construction process requires that inspection, of work in process, is essential in order to ensure the smooth flow of the construction program. The neglect of construction inspection is still currently the highest rated reason given for defects in building construction. Considering the results of the study published in 1995, one would assume that procedures would have been implemented to ensure construction inspection attracting high priority. It was however determined that very little attention have been given to ensure that proper construction inspection is done on construction projects in the residential market. The importance of construction inspection is still largely ignored. All the factors listed are currently contributing to construction defects and although new controlling regulations have been promulgated by Government, very little is evident in practice. According to P.E.D. Love and H. Li, (2000) inspection carries a cost. They identified two costs namely cost of control and cost of failure. Feigenbaum (1991) divided the cost of control between prevention costs and appraisal costs. Cost of failure is divided between internal failure cost and external failure cost. RECOMMENDATIONS The cost related to construction inspection can be measured and budgeted for in all building construction projects. In order to measure the effectiveness thereof, savings on rework can be determined and the final quality of the product can be recorded. This should be done on every project to enable project managers the opportunity to identify areas which may require more intensive- or less construction inspection. REFERENCES Assaf, S., Al- Hammad, A. and Al-Shihah, M. (1995) The effect of faulty construction on building maintenance. Building research and information, 23,3, 175-181. Feigenbaum, A.V. (1991). Total Quality Control. McGraw-Hill, New York. Love, P.E., Li, H., Irani, Z. and Faniran, O. (2000). Total quality management and the learning organization: a dialogue for change in construction. Journal of Construction Research, 18, 321-331. Terziovski, M., Samson, D. and Dow, D (1997). The business value of quality management systems certification: evidence from Australia and New Zealand. International Journal of Operations Management, 15 (1), 1-18.
113

Zietsman, R., (2004). Quality and productivity in the construction industry-the human factor and errors in setting out. Construction industry development board ,post graduate conference, 104-110.

114

CONSTRUCTION INDUSTRY STANDARDISATION AND EFFECTIVE COMMUNICATION

Kotz BG1, Verster JJP2 and Berry FH3
1. 2. Department of Quantity Surveying and Construction Management, University of the Free State, KotzeBG.sci@ufs.ac.za Tel No 051 4013849 Department of Quantity Surveying and Construction Management, University of the Free State, VersterJ.sci@ufs.ac.za Tel No 051 4012248 Department of Quantity Surveying and Construction Management, University of the Free State, Berryfh.sci@ufs.ac.sa Tel No 051 4012198

3.

ABSTRACT Purpose of this paper - The purpose of the paper is to investigate the role that standardisation of documents play in respect of communication efficiency in the construction industry. Methodology - A literature study on communication planning, -flow, -structure and execution was done to underpin the empirical survey of continuous standardising construction documentation, and the role it may play in effective communication between stakeholders in the construction industry. Findings - The results show that standardisation and standard communication instruments play an important role in effective communication, but also indicate the need for improvements in these standards and the links they established. Value - Based on the analysis of the standard communication instruments and their importance, as indicated by the respondents, a proposal may be made to improve the effectiveness of standard documentation and the links between the various communication instruments.

Key words: Communication instruments, standardisation, standard documents, communication links.

115

1.

INTRODUCTION

There are different communication instruments, such as contracts, specifications, reports, manuals, schedules, calculations, drawings, computer files, disks, print-outs, photographs, agendas and minutes of meetings (Knipe, 2002: 117). The management of documentation and communication used in a project is used by a number of subcontractors, the storage and retrieval thereof for further use. These instruments describe a range of documents and also different versions of those documents as they pass through the lifecycle of the project at each phase. From a standard documents and communication structures, -flow and -planning can be modified as necessary to meet the requirements of each project. 2. STANDARDISATION

Standardisation is the process of developing a uniform practice that people are to follow in doing their jobs (Smit & Cronje, 2002:195). The main purpose of standardisation is to develop a specific level of conformity. This process of standardisation has certain advantages for the management of a project: Less different documents Records are easy to handle Training is simpler and more uniform Communication planning and especially -control is simpler Better utilisation of documents and the compiling thereof Easy to use in one project or another, although these are totally different projects. The only disadvantage of standisation is: Once the standarisation of a process, structure, commnunication instrument or flow of communication are complete, there is a strong indication not to vary it (Adendorff & De Witt, 1999:27). Standardisation contributes to increased productivity because the documents and communication from one project to the next are the same or similar and thereof less confusion is created. 3. COMMUNICATION PLAN

Communication planning pulls the project together. The project manager and project office are at the heart of the projects information and control system. It is the project managers responsibility to develop not only the project organisation structure, but also to

116

develop the projects communication plan and lines of communication. The communication plan should outline: Who (lines of communication sender- and receiver-responsibility and authority) What (scope of communication and format) How (e-mail, document, telephone, meeting, presentation) When (schedule) Feedback (confirm message received and understood document control) Filing (retrieval, storing, disaster recovery) (Burke, 2003: 274) 4. COMMUNICATION FLOW AND INSTUMENTS

4.1 Formal communication Communication flows in four directions: downwards, upwards, horizontally and laterally. These basic communication flows are shown in Figure 1.
Project manager

Downward

Architect

Horizontal

Engineers

Quantity surveyor

Lateral

Upward

Engineering

QS team

team

Figure 1 Communication flows Source: (Adapted from Smit & Cronje, 2002: 372) Downward communication starts at the top and flows down through the project levels to workers. The major purpose of downward communication is to provide subordinates with information on goals, strategies and policies. Downward communication is likely to be filtered, modified, or halted at each level as managers decide what should be passed down to employees. When employees send a message to their superiors, they are using upward communication. The main function of upward communication is to supply information to the upper levels about what is happening at the lower levels.

117

Horizontal communication occurs between people on the same level of the hierarchy and is designed to ensure or improve co-ordination of the work effort. It is formal communication, but does not follow a chain of command. Effective horizontal communication should prevent tunnel vision in the organization. Lateral communication takes place between people at different levels of the hierarchy and is usually designed to provide information, co-ordination or assistance to either or both parties (Smit & Cronje, 2002: 371-372). 4.2 Informal communication Informal communication, commonly called the grapevine, can begin with anyone in the organisation and can flow in any direction. The grapevines prime function is to disseminate information to employees (both managerial and non-managerial) that is relevant to their needs. Grapevine/rumours = information without a factual base. In the construction industry, the following are informal communication methods: Regular contact Mind reading Motivation to speak (Smit & Cronje, 2002: 373). 4.3 Project communication instruments Project communication, as shown in Figure 2, is internal and external communication between members of an organisation at all levels in order to achieve a mutual goal or goals. Project communication

Internal communication

External communication

Figure 2 Project communication Source: (Adopted from Le Roux, 1999: 286) To achieve goals, it is necessary to communicate or interact at various levels of the organisation this is known as internal communication. Members also have to communicate with individuals or groups who are not members of the project. This is referred to as external communication. 4.3.1 Instruments of internal communication Different methods of instruments of internal communication exist:

118

Oral communication occurs in the form of meetings, discussion groups, talks including the grapevine, interviews, announcements and conversations, both face to face and over the telephone Written communication takes place by means of letters, circulars, memoranda, manuals, reports, seminars and minutes of meetings Non-verbal communication can convey powerful messages in the business world by means of gestures, appearance or attitudes Electronic communication. It is possible to send messages all over the world at a very high speed. Messages can be sent and received using computer terminals, electronic mail (e-mail) and fax facilities (Le Roux, 1999: 286-287), (Smit & Cronje, 1992:377-379)

4.3.2. Instruments of external communication Every member of a project is involved in communication with customers, shareholders, the media, the government, labour unions, the community and members of the general public, on a daily basis. The external communication to each, conveys a particular image to the outside world (Le Roux, 1999: 286-287; Smit & Cronje, 1992:377-379). 5. STRUCTURE

Structure defines lines of authority and communication, specifies the mechanism by which tasks and programmes are accomplished. The performance depends on the coordination between the parties involved, the system of communication, the culture of the project, the staff members and the communication structure (Aaker, 1992. 331). Intercultural communication is in many ways far more complicated, e.g. languages, because participants need to be aware of an increased potential of misunderstanding. Project team members are part of different sub-cultures. In a project team there may be communication problems because of these differences and expressions in different professions (Peltoniemi & Jokinen, 2004:3-4). Figure 3 shows the framework for analyzing projects
Communication Strategy

`
People Structure

Systems

Culture

Performance

119

Figure 3 A framework for analysing projects Source: (Adapted from Aaker, 1992: 331) People, systems, culture and structure may be used as communication strategies to ensure the performance of the project. Every sub-project has a different set of people, systems and culture to that of the main project. This strains the project, increases communication problems and makes it less likely to complete a project without incidents (Aaker, 1992: 331-332). 6. COMMUNICATION AND THE INDUSTRY

Research was done by the Department of Quantity Surveying and Construction Management of the University of the Free State. The opinions of relevant parties in the building-, property development- and construction industry on what good communication entails, was determined and interpreted. The effectiveness of professional communication and communication instruments, were established. The survey was conducted to establish the current performance of professional consultants in respect of their communication and communication instruments in the construction industry. Professionals (architects, engineers, project managers and quantity surveyors) were requested to respond to the questionnaire. More than a thousand questionnaires were sent to these professionals in the RSA. The response rate was less than 10%. The following are some of the most important findings: Communication is strategic now more than ever. In an information-driven age, communication is an integral part of the corporate strategy Writing is still the core skill for communication. Verbal, written and contractual communication was rated almost the same in importance Figure 4 shows the respondents ratings for verbal, written and contractual communication skills of Architects, Engineers, Project Managers and Quantity Surveyors.

120

ARCH

ENG

PM

QS

5.5

5.0

4.5

4.0

3.5

3.0

2.5

2.0

Communication skills
1.5

1.0

Verbal

Written

Contractual

0.5

Figure 4. Communication skills Source: (University of the Free State, Department of Quantity Surveying and Construction Management, 2007) The ratings are: 1 = low, 3 = intermediate, 5 = high Figure 5 shows the importance of communication instruments used by professionals.

121

ARCH
5.5

ENG

QS

Filled point: Importance Open point: Clearness

5.0

4.5

4.0

3.5

3.0

2.5

Communication instruments and methods

2.0
Preambles for trades document Contract conditions document Escalation costing presentation Standard system document Payment advice Final accounts Preliminaries document Estimations Cost report Cost plan Drawings

1.5

1.0

0.5

Figure 5. Importance of communication instruments used by professionals Source: (University of the Free State, Department of Quantity Surveying and Construction Management, 2007) (The ratings are: 1= low, 3= intermediate, 5 = high) Results on communication instruments indicate which instruments are high in importance and for which professionals

Effective communication can contribute towards the success of a project. 7. CONCLUSION

For each project, it is important that the project-related information is fully documented to ensure that all the people involved understand what has and is happening.

122

Each project has a great deal of communication and documentation. With many projects using the same communication instruments, over and over again, the running of the project will be much easier and more understandable if communication instruments, -plans, -structure and -flow are a standard process. Standarditasion will provide a system for effective management that is not too complex, and may contribute towards the effective execution and completion of a project.

123

8.

BIBLIOGRAPHY

Aaker, D.A. 1992. Strategic Market Management. 3rd Edition. United States: John Wiley & Sons. Adendorff, S.A. & De Wit, P.W.C. 1999. Production an Operation Management: A South African Perspective. 2nd Edition. :Oxford, New York. Oxford University Press Burke, R. 2003. Project Management Planning and Control Techniques. 4th Edition. Tokai, RSA: Burke Publishing. Knipe, A. (ed.). 2002. Project Management for Success. Sandown: Heinemann Publishers. Le Roux, E.E. (ed.), 1999. Business Management: A practical and interactive approach. 2nd Edition. Sandton: Heinemann Publishers. Peltoniemi, M. & Jokinen, T. 2004. Communication good practices in high technology product development projects: Experiences from a Case Study. Proceedings of the International Cost Engineering Councils 4th World Congress, Cape Town, RSA, p. 3-4. Smit, P.J. & Cronje, G.J. de J. 1992. Management Principles: A Contemporary South African Edition. 1st Edition. Cape Town: Juta & Co., Ltd. Smit, P.J. & Cronje, G.J. de J. 2002. Management Principles: A Contemporary Edition for Africa. 3rd Edition. Cape Town: Juta & Co., Ltd. University of the Free State, Department of Quantity Surveying and Construction Management. 2007. Survey on procurement, communication and dispute resolution. Bloemfontein: University of the Free State.

124

HOW CAN INFORMATION AND COMMUNICATION TECHNOLOGY REDUCE INEFFICIENCIES IN THE CONSTRUCTION INDUSTRY?
Zietsman E1
1

Department of Information Technology, Cape Peninsula University of Technology, zietsmane@cput.ac.za, Tel No. 021-4603486

ABSTRACT Purpose of this paper - This paper is looking at why it is necessary to do research in the area of construction informatics. It discusses future research that will be conducted in the South African construction industry and how information technology can enhance the business processes that are part of a construction project and also a construction company. Methodology/Scope A literature study was done to determine what the current state of the research area is. Findings The use of technology can assist with collaboration among the different participants in a construction project. Value The paper is important as it not only outlines future necessary research but also discusses the trends as seen by other researchers in the field of construction informatics. Keywords: ICT, Construction, Collaboration, Business Processes, Information Technology

BACKGROUND

Some of the reasons for using Information and Communication Technology (ICT) in construction projects are the improvement of how business processes interact with each other, bigger profits, service quality improvements and to gain a competitive advantage (Love et al, 2005:577-578). Mak (2001:258) also gave some suggestions on why and when contractors will invest in information technology. This includes savings in manpower, reduced expenditure and better management of tendering data. According Gyampoh-Vidogah et al (2003:168-170) problems with information management in companies are due to the slow and cumbersome information management processes, the lack of a policy on information management in companies, cultural issues and barriers to the adoption of Information Technology (IT). Zeng at al (2007:36-37) states that organizational structures, individual behaviors and the technical requirements of data in the industry are some of the barriers that hinders the flow of information among the participants in a construction project. The owner, general contractor, subcontractor, engineer and the supplier are some of the participants in a construction project. The successful contractor that is responsible to construct the building is not only responsible for managing the process, but must also ensure that all interested parties are kept up-to-date. During the project operations phase the construction site needs information from designers, engineers, suppliers and sub-contractors in order to complete the construction on time and within budget. Sub-contractors are also often used to complete specialized tasks, such as tiling and electrical installations. The relationship between the two parties is governed not only by the legal contracts that was agreed upon, but also on how and when the work is completed. Tendering,
125

work and schedule changes, invoices and payments are some of the administrative tasks that must be controlled in order to make this relationship successful.

WHY USE ICT?

Collaboration between all role players during construction is not only important but also necessary for the successful completion of a construction project. Within any organization there exist a set of relationships that has an effect on how successful information sharing is among interested parties. With so many interested parties, communication and information sharing among them is vital. Not only must the formal structures and networks be examined to understand the level of information sharing that is happening on a formal basis, but the informal relationships among parties will depend on how and when information is shared and how and when information is flowing (Perreira & Soares, 2007:87). The various roles that participants can play vary with each project. The contractor, for instance, can also be the owner or the architect (Lockey et al, 2002:235). Participants are finding it difficult to share information in the construction industry. Barriers hindering the flow of information include the organizational structures, behavior of individuals involved with information management and the technical characteristics of the information in this industry (Zeng et al, 2007:36-37). Modern companies will use information systems (or software) such as accounting systems (including payroll), project management systems and communication tools such as Internet and email. Many such applications exist already and can be bought as complete solutions. There need to be an alignment between information systems in use and the organization. If not, it can have a detrimental effect on the performance of the organization (Hicks, 2007:234). Information must be able to flow seamlessly between all parts of the organization (Laudon & Laudon, 2003: 209). Sub-contractors need easy access to instructions on what must be done such as architects or engineering specifications, give feedback to the project management office on how the work is progressing, and finally invoicing. Technologies that can assist with the sharing of information can be used very effectively between sub-contractors and the project management team. Turk (2006:198) stated that Construction informatics is a relatively young and immature field of applied science. Buildings and the construction of it is a very old discipline, going back many centuries, yet the industry is lagging behind in the information and communications technology area. This research will help improve the situation by investigation the link between the processes on a construction site, stakeholders in the project and information management. Both Turk (2007:215-218) and Working Commission 78 (W78) of the International Council for Innovation and Construction (CIB) as reported by Amor et al (2002: 245-257) attempted to define future research in the areas of construction informatics. Both studies found that issues associated with technology and re-engineering of processes were common themes in published research. Turk (2007:215-218) also listed collaboration infrastructures, knowledge management, software interoperability, database information retrieval, knowledge intensive applications and human computer interaction as important future research themes. Interesting to note is that collaboration is rated the important in current as well as in future research. Amor et al (2002: 245-257) noted that the majority of papers investigated were from Europe. Contributions from Africa were low, less than 3%. 3 PROPOSED RESEARCH

Given the ineffective way the construction industry utilizes their information, the proposed research will establish ways of how this can be changed. The research will attempt to address the problem of
126

ineffective information sharing among business processes as used in the construction industry. Information technology is seen as a major enabler to release the potential of effective information sharing in the construction of a building. Collaboration among participants is key to the success of any construction project. The research will focus on the different business processes in a construction company, but more importantly, what are the different information pieces that each business process use (input) and/or generate (output) as well as how each information piece is connected. Where and how information is generated and used is often determined on the organizational structures. To introduce change in any environment, a leader is needed to propose and lead the introduction of the change. This will also be true of construction companies. Information is used in companies in a particular context and by particular people. This current organization structures will be established and a proposal of how a changed structure can better information management in this industry be made. The subcontractor is a major role player on any construction site. Sub-contractors are responsible for completing many parts of the new structure that is being built. The investigation into the relationship between the construction company and sub-contractor, and the supply chain on a construction project but will also determine how and what information is flowing between them. The most important question that will be answered by this research is how can an information based technology approach contribute to the objectives of a construction process? 4 CONCLUSION

With the advent of newer technologies (such as wireless communication tools) the industry must start looking at ways on how they can utilize their information better and unlock the potential knowledge benefits that this will give a construction company. This better management of information and the knowledge gained from this will enhance a companys potential to deliver on time with the expected profits. Research into how the construction field can utilize their information and unlock the knowledge contained within their information is necessary.

REFERENCES Amor, R., Betts, M., Coetzee, G. & Sexton, M. 2002. Information technology for construction: recent work and future directions. Journal of Information Technology in Construction, 7: 245-258. [Online]. Available: http://www.itcon.org/cgi-bin/works/Show?2002_16 [12 September 2007] Gyampoh-Vidogah, R., Moreton, R. & Proverbs, D. 2003. Implementing information management in construction: establishing problems, concepts and practice. Construction Innovation, 3(3):157173. Hicks, B.J. 2007. Lean information management: Understanding and eliminating waste. International Journal of Information Management, 27(4):233-249. Laudon K. C., & Laudon J. P. (2003). Essentials of management information systems. 5th ed. Upper Saddle River, NJ: Prentice-Hall Inc. Laudon, K. C. & Laudon, J. P. 2003. Essentials of management information systems. 5th ed. Upper Saddle River, NJ: Prentice-Hall Inc.

127

Lockley, S.R., Watson, R & Shaaban, S. 2002. Management, 9(3):232-240.

Engineering, Construction and Archtecture

Love, P. E. D., Irani, Z. & Edwards, D. J. (2005). Researching the investment of information technology in construction: An examination of evaluation practices. Automation in Construction, 14(4)569-582 Mak, H. (2001). A Model of information management in construction using information technology. Automation in construction, 10 (2): 257-263. Perreira, C.S. & Saores, AL. 2007. Improving the quality of collaboration requirements for information management through social networks analysis. International Journal of Information Management, 27: 86-103. Turk, Z. 2006. Construction informatics: definition and ontology. informatics, 20(2): 187-199. Advanced engineering

Turk, Z. 2007. Construction informatics in European Research: topics and agendas. Journal of computing in civil engineering 21(3): 211-219. Zeng, S.X, Lou, G.X. & Tam, V.W.Y. 2007. Managing information flow for quality improvement of projects. Measuring business excellence, 11(3): 30-40.

128

EFFECTIVENESS OF PROJECT DEBRIEFING PROCEDURES : A CASE STUDY OF THE KZN REGION OF SOUTH AFRICA.
Mpanza, N1, Mututo, J G2 and Pearl, R G3
1

Walters and Simpson, 502 Fedsure House Pietermaritzburg, n.mpanza@wspmb.co.za, Tel No. 0333941271 School of Civil Engineering, Surveying and Construction, University of KwaZulu-Natal, mututo@ukzn.ac.za, Tel No. 031-2603147 School of Civil Engineering, Surveying and Construction, University of KwaZulu-Natal, pearl@ukzn.ac.za, Tel No. 031-2602687

ABSTRACT Purpose of this paper - The last major phase of a construction project's life cycle is the closeout. This is the stage where formal completion of all contractual obligations is confirmed, and documentary requirements are fulfilled. The literature suggests that at this point, successes as well as problems on the project should be identified through a group review exercise. The lessons learned process is said to be a valuable closure mechanism for project team members, regardless of the projects success. This feedback can then be applied during the briefing and planning stages of future projects. However, in practice it is suggested that this is seldom done, problems previously encountered therefore often reoccur. This paper investigates the extent and nature of project debriefing procedures occurring in the KwaZulu-Natal region of South Africa, and compares current practices with international best practice. Methodology/Scope International best practice relating to debriefing processes is determined through a detailed literature review. A two-part survey of 25 local consultant firms and a further 36 individual consultants was used as the basis for establishing current local practice. Findings It was found that local practice is very similar to that described in international literature and that the shortcomings described therein are similarly apparent in the local study. A reasoned argument is presented, indicating that local construction professionals do not undertake debriefing effectively during the closeout stage of projects. Value The study of international best practice as it relates to the linkages between project closeout and preliminary briefing of other projects provides useful insights for possible adoption by local practitioners. Further, it is suggested that the implementation of improved practices will enhance the performance of design consultants, and lead to a consequential improvement in meeting client satisfaction levels. Keywords: briefing, close out, debriefing.

129

1 INTRODUCTION An adequate understanding of client requirements can facilitate the level of trade-offs required with other project requirements which are usually more difficult to alter than client requirements (Kamara et al., 2002). If clients are experiencing problems providing timely and appropriate information for the construction process, then it is incumbent upon those more knowledgeable in the construction industry to identify what help thy need and to provide tailored assistance so that they can act more effectively in the process. This forms the basis of client representation. In order to achieve this, all client types need the greatest assistance in defining requirements and producing their building. Unless specific attention is paid by the professional team to lessons learnt from previous projects, project objectives may not be achievable, and as a result, problems often re-occur in these later construction projects. This paper aims to highlight the link between the briefing process and the closeout stage (as shown in Figure 1) and the role of effective debriefing during the closeout phase in improving the briefing process.

Figure 1 The continuous link between briefing and the closeout stage The case study describes current practice amongst local built environment professionals and compares the findings with best practice as described in the literature. An effective briefing process contributes to the attainment of client objectives with respect to time, cost and quality for construction projects (Bowen et al., 2000). One of the problems experienced with briefing is that on project completion, professionals tend to forget the problems experienced rather than learn from them (Barrett and Stanley, 1999). This

130

comes as a result of the project team not paying enough attention to the activities of the closeout stage, during which a lessons-learned session should be held (Kartam, 1996).

2 METHODOLOGY The selected research approach enabled the authors to collect rich data for understanding the two stages of construction, namely the briefing process and closeout stage; and to investigate whether construction professionals were conducting debriefing according to suggested good practice. A literature review was used to accomplish two of the three objectives of the research. The first of these is constructing a solid background of the briefing process and identifying its limitations. The second objective is to understand the closeout phase of the project and debriefing. To achieve the last objective, a survey questionnaire and semi-structured interviews were used to investigate the processes related to debriefing, and the use of feedback by KwaZulu Natal construction professionals in current practice. The professionals targeted were architects, quantity surveyors and project managers. It was established from membership lists of the professional organizations representing these disciplines that a potential population of 402 construction professionals was resident in the KwaZulu-Natal region. This was based on 175 architectural and 79 quantity surveying firms / offices, together with 148 registered project managers. A sample of 30 architects, 35 quantity surveyors and 35 project managers from assorted firms were then established as the primary sample population for the study. Arising from a pilot study, a decision was made to conduct structured interviews with practitioners with at least 10 years relevant professional experience. Of the 40 practitioners that fell within this sample, representatives of 25 firms agreed to be interviewed. Of these, 10 were representing firms of quantity surveyors, 8 architectural practices, and 7 project management consultancies. In addition, questionnaires, adopting the same questions as were covered in the structured interview process were distributed to the remaining 60 professionals comprising the primary sample population. 3 THE BRIEFING PROCESS Construction briefing can be defined as the process running throughout the construction project, by which means the clients requirements are progressively captured and translated into effect (Barrett and Stanley, 1999). The briefing process is generally accepted to be divided into two major stages i.e. strategic and project briefing. The strategic brief sets out the broad scope and purpose of the project and its key parameters including the overall budget and programme. It should provide an output specification which explains in clear terms what is expected of the project. The project brief converts

131

the strategic brief into construction terms, puts initial sizes and quantities to the elements and gives them an outline budget. It should be maintained in a format which allows alteration and updating (Hamilton, 1997). For the purposes of this research, no distinction was made between strategic and project briefing. Designers speak different languages to the users of the building, yet they must understand the business language of their clients to allow for meaningful communication of needs. In this scenario, briefing can be seen as a communication of instructions about intentions and objectives of the parties. This is considered to be one of the most important stages in the life of a project (Salisbury, 1990; Kamara et al., 2002; OReilly, 1987). According to Luck et al., (2001), within recent years it has been considered that briefing is ongoing throughout the early stages of a project rather than a checklist or a document produced at a single point in time. The current trend is to look upon the briefing process as an integrated part of the entire construction and management process and not just as part of an early stage of the project (Ryd, 2004). Good briefing relies on the client giving clear instructions based on a sound decisionmaking process. A client must regularly and systematically ensure that the relevant options are being evaluated and there are sufficient resources of the right kind assigned for briefing throughout the project (Hamilton, 1997). Even if the consultants have worked on many similar buildings before, they may well overlook a critical piece of information if it is not drawn to their attention. It is, therefore, up to the client to reveal as much information as possible. Bowen et al. (2000) suggest that an effective client briefing process contributes to the attainment of client objectives with respect to time, cost and quality for construction projects. According to Hardcastle and Tookey (1998), if best practice is to be achieved, there are a number of things that it should agree with regarding the briefing process. First, they suggest that the brief should be clear in order to reduce the number of possible interpretations and improve project controllability. Second, there should be an early interface between design, costing and client elements of the project in order to reduce risks associated with those elements. Third, the briefing and construction processes should be very closely integrated moving towards the concept of concurrent design and construction in which all of the requisite expertise is included from the outset of the project. Finally, clients want and expect a high level of involvement in the design phase of construction projects but at the same time each client is different. Hardcastle and Tookey (1998) concluded by saying, that the brief and therefore the overall project is best served from having as few links as possible in the supply chain of the design and construction process. Contrary to this, are ideas by Barrett and Stanley (1999) which suggest that there is no simple cookbook solution to good briefing. They say that thus far briefing best practice advice appears to have had little influence and that parties involved would rather follow practices from their own past experience. This stems from the danger that exists in the construction industry whereby professionals seem to think they have experience.

132

However, in reality it seems that experience can act as a barrier to the acceptance of good practice proposals. Furthermore, they suggested that that much of the best advice provided is based on a purely rational perspective of the construction process. This advice amounts to suggesting that if people were not involved in the briefing process everything would run smoothly. However, people are involved and this is the reality that efforts at better briefing must accept and deal with. Based on this, a conclusion reached by Barrett and Stanley (1999) was to put the emphasis not on how to do good briefing per se but rather to see the way forward to achieving progressively better briefing.

4 THE CLOSEOUT PHASE The last major phase of a construction projects life cycle is the closeout. Projects are considered completed or closed out after the client receives and approves all reports as required by the terms and conditions of the award, and notifies the contractor of its acceptance and closure of the project (Othman and Abouzeid, 2007). A project must take into account both administrative and contractual matters in its closure (Heerkens, 2001). Administrative closure details all activities, interactions and related roles and responsibilities of the consultants and other stakeholders involved in executing the administrative closure of the project. Contractual closure includes all activities and interactions needed to settle and close contract agreements established for the project, as well as defining those activities supporting the formal administrative closure of the project. Reaching project closeout is an important goal which the professional team has from the early stages of the project. According to Heerkens (2001), criteria for completion should be established at the beginning of the project. The project completion criteria focuses on those elements that give reasonable assurance that the project took into account the initial deliverables, the client and the sponsor approval. The closeout stage is also important for documenting the completion of the project and to prevent the project from moving beyond its original scope and budget. The closeout stage of the project should be given as much or more project management attention as any other stage. More than any other project stage, the closeout stage requires a diverse set of technical, organisational and leadership skills. Othman and Abuozeid (2007) mention that as the project nears its closure, the team members may lose interest in the project. Team members scramble to complete the last few tasks, which may not have been included in the original plan. As some of the team members complete their tasks, loss of team functionality may occur and loss of interest in administration and documentation tasks may also occur. Attention may, at this point, be diverted as the team members transition into new projects or other work. In these circumstances, the project manager, therefore, has the difficult task of fighting against the teams loss of interest in the project.

133

It is unlikely that such a situation would arise where stakeholders are associated in a partnering arrangement, which is fundamentally dependant upon mutual long-term benefits for the entire team. Under these conditions, the fragmentation of the team at project conclusion, which is the primary reason for the change of focus amongst participants does not occur. 5 DEBRIEFING WITHIN THE CLOSEOUT STAGE In addition to communicating the closure of a project in writing, it is also advisable to have a mechanism for group review. This process provides official closure to a project. It also provides a forum for team-member recognition and offers an opportunity to discuss ways to improve future processes and procedures. In order to achieve effective debriefing, it is suggested that a lessons learned session should be conducted (Othman and Abouzeid, 2007; Heerkens, 2001; Kartam, 1996). Furthermore, successes as well as problems on the project must be identified and recommendations made on how these successes can be adapted and problems avoided in future endeavours. 5.1 The Lessons Learned process The lessons learned process is said to be a valuable closure mechanism for the project team members, regardless of the projects success. It is most productive when it is being oriented towards identifying problems encountered by the project team, and suggesting ways to avoid similar problems in future. Below are some of the questions which the project team may ask and answer amongst themselves and these can vary from one project to another: Were the success factors achieved? Did the project reach its goals and objectives? Was the project completed on time and budget? Was communication clear, concise and timely throughout the project? Does the client view the project in a positive manner? Was the project well managed?

Kartam (1996) suggests that there should be a focus on a balance of positive and negative experiences and not just failures and incidents. 5.2 The role of effective debriefing in future projects Barrett and Stanley (1999) state that on project completion professionals tend to forget problems, rather than learn from them. This then creates a problem during the briefing and planning stages of future projects as construction professionals are unable to bring any lessons learned from previous projects to prevent similar problems from re-occurring. Kartam (1996) states that in practice expert knowledge and lessons learned in the closeout stage of a project are not effectively incorporated into the design and construction phases of subsequent projects. After the lessons learned report has been submitted, it may then be archived with the rest of the project documents. This historic project information is an important source of

134

information to help improve future projects. According to Kartam (1996), the main function of debriefing is to prevent mistakes from being repeated and to ensure that innovations are promoted in future projects. The feedback obtained is not only useful in the design stages of projects but can also influence the construction phase of the project with respect to duration, efficiency and contractor profit. Kelly et al (1992), state that the concept brief is one of the most critical factors in determining a clients satisfaction with a building project. 6 SURVEY RESULTS The analysis that follows reflects the total sample without differentiation between the various professional groups. It also briefly answers some of the questions from the survey document that was used for both interviews and questionnaires in an attempt to summarize the results of the survey. Occurrence of formal project closure meetings Do you have formal project closure meetings during the last stage (closeout stage) of projects? This question (which required a rating response) sought to determine how frequently professionals were having formal project closure meetings. Results ranging from never to always are given in Figure 1. The expectation was that it would be reasonable to assume that project team members always hold formal project closure meetings. However, the main concern arising from these results is the low priority accorded to such meetings, bearing in mind that it is during these meetings that project closure can be discussed and professionals can give feedback on any issues concerning the project.

80% 60% 40% 20% 0% Never S ometimes Often Always

Figure 2: Frequency of formal project closure meetings Necessity of these meetings. Do you think these meetings are necessary? What are your reasons? 55% of the respondents were of the opinion that these meetings are necessary. These were mainly architects and project managers. The 45% that thought that such meetings were not important, mainly comprised quantity surveyors.
135

The assenting 55% of respondents reasoned that it was a contractual obligation to hold these meetings and they believed it was for the clients best interest. They were also of the opinion that such meetings allowed for the formal discharge of the consultants responsibilities and provided finality on all issues arising from the project. The remaining 45%, who thought project closure meetings were not important, reasoned that there were too many one-off projects. They stressed that all projects are unique and each one had different problems and challenges. Within the local construction environment, the professional team also changes from project to project, making it unnecessary to hold such meetings, as they would be working with a different team on their next projects. Occurrence of formal lessons learned /debriefing sessions During these meetings, do you have a formal lessons learned/debriefing session? If yes, are problems as well as successes encountered discussed? If not, is there another way for the participants to provide feedback? Respondents who previously revealed that they did have lessons learned/debriefing sessions were asked if they always, often, sometimes or never discuss problems as well as successes during these sessions. The overall response was that there was often a discussion of both the problems and the successes of a project but more so the successes. For those who had earlier responded that they did not conduct lessons learnt sessions, an alternative was then given to determine if they had any other way of providing feedback and sharing their experiences on a particular project. Respondents often have other ways of providing feedback. This is done during internal meetings in their various organisations. A general discussion of problems (and not a formal debriefing session per se) was also another way respondents used to provide feedback. Knowledge acquired from the debriefing sessions. Do you learn something new from such sessions? If not, why is that? When asked if they did learn something from the debriefing sessions, the general response was that professionals generally do learn from such sessions. However, they felt that by this time they have lost interest in the project, and are wanting to move on to their next one, hence their learning is minimal. There was also a strong feeling amongst professionals that the sessions were usually not effective enough. Another point raised was that each project usually requires one of each of the various professionals making up the project team. If the lessons to be learned are in an area they do not specialize in, then they do not learn anything. The effect of successful debriefing on future projects. If you do learn from the debriefing session, do you then use this knowledge during the planning stages of future projects? If so, how do you use this knowledge? If not, what are the reasons? Would you say feedback gained from previous projects helps prevent the reoccurrence of problems in future projects? Do you think this is an effective way to decrease problems often experienced with construction projects? Respondents felt strongly that they used knowledge acquired at debriefing during the design and planning stages of future projects. This was generally based on the notion of learning from mistakes. The client and other consultants are then also advised on

136

successes of past experiences and warned of the dangers and problems associated with certain decisions. Debriefing was, to an extent, an effective way of decreasing problems often experienced with construction projects. It was further suggested that the more experienced practitioners had a duty to play in passing on what they had learnt during their years of practice. Respondents felt that they looked at each project as new and unique and expected different challenges from each and, therefore, did not see how information from a totally different project could be useful in a new one that is of its own different nature. CONCLUSION Although much has been said on the potential role of effective debriefing/lessons learned process in improving the construction briefing process, the majority of work in this area has been academic in nature. Construction professionals have not fully adopted the use of this process (Kartam, 1996). Barrett and Stanley (1999) list 20 problem areas related to the briefing process. This study, focused on one of these, which indicates that on project completion, professionals tend to forget problems, rather than learn from them. A common, although unsubstantiated belief that this process is not of great importance, is widespread amongst participants in the construction industry. There is, however, a great potential in effective debriefing to improve the briefing and hence the construction process, these can then also be used to improve future projects and achieve better client satisfaction. This survey has indicated that local construction professionals do not conduct debriefing effectively. This has a potentially negative effect on the development of concept development briefs for future projects with which they are involved. REFERENCES Barrett, P. and Stanley, C. (1999) Better Construction Briefing, Blackwell Science, Oxford. Bowen, P.A., Pearl, R.G. and Edwards, P.J. (2000) Client briefing in South Africa: an effective communication process?, The Civil Engineering & Building Contractor, Vol. 35, No. 1, pp 37-43. Hamilton, A. (1997) Management in Projects: Achieving Success in a Changing World, Thomas Telford, London. Hardcastle, C. and Tookey, J.E. (1998) Re-engineering the Building Procurement Decision Making Process, in: Proceedings of COBRA Conference, The Royal Institution of Chartered Surveyors. Heerkens, G.R. (2001) Project Management, McGraw-Hill Trade, Ohio, USA. Kamara, J.M., Anumba, C.J. and Evbuomwan, N.F.O. (2002) Capturing Client Requirements in Construction Projects, Telford, London.

137

Kartam, N.A. (1996) Making Effective Use of Construction Lessons Learned in Project Life Cycle, Journal of Construction Eng. and Management, Vol. 1, No.122, pp 14 21. Kelly, J., MacPherson, S. and Male, S. (1992) The Briefing Process: A Review and Critique, Royal Institution of Chartered Surveyors, London. Luck, R., Haenlein, H. and Bright, K. (2001) Project briefing for accessible design, Design Studies, Vol. 22, pp 297-315. OReilly, J.J.N. (1987) Better Briefing means Better Buildings, Building Research Establishment, Watford. Othman, A. A. E. and Abouzeid, K. (2007) Delivering Successful Construction Projects through Achieving Professional Projects Closeout, in: Conference Proceedings Association of Schools of Construction of Southern Africa and the Council for the Built Environment, Port Elizabeth, pp. 239 252.

138

MOTIVATION AS A TOOL TO IMPROVE PRODUCTIVITY ON THE CONSTRUCTION SITE

Wellington Didibhuku Thwala1, Lydia Nthabiseng Monese2
1 2

Department of Quantity Surveying and Construction Management, University of Johannesburg, Department of Construction Management and Quantity Surveying, University of Johannesburg,, Didibhukut@uj.ac.za, Tel No. 011-5596048

ABSTRACT Purpose of this paper - Is to identify the factors that promote positive motivational behaviour among construction workers as to improve production in the construction site. Furthermore the study will identify consistencies in the behaviour of motivated, satisfied, committed and loyal employees in the construction field since these are important characteristics in the workplace. Methodology/ Scope - The study is mainly a literature review with a special focus on the human resource management and leadership. A survey will be later conducted. Findings - There are definite differences between different cultures as to how people can be motivated; this also must be taken into consideration. Management should play an active and continuous role in managing on site motivational processes; employees desired outcomes should be tied to performance; and management should focus on eliminating performance obstacles. Research limitations The study will mainly be a literature survey of both South African and international experience. Value - Workers are an asset to the business and it is up to the management to value them. It can not be a solution to hire and fire continuously as has been the common practice, recruiting goes with resources and money; and it is through the management that the companies grows, thus contributing to the economy of the country by developing the workers; thus reducing unemployment. Keywords: Construction workers, human resource management, personnel management, motivation, motivators. INTRODUCTION The construction industry is an important player in the economy of South Africa. Although the industrys current contribution to the gross domestic product has shrunk to approximately 3%, compared to 7% in the 1970s, it remains an important economic sector (International Conference on Construction in the 21st Century, 2002). Statistics South Africa employment figures suggests that in 2006 the construction sector was responsible for 8% of the total national employment; this is an increase from the 2001 contribution of 6%. It is also estimated that the construction sector employs one million people, with some 424 000 individuals employed in the formal sector. Annual employment growth in the period of September 2005 2006 was 9.5%, with employment in the sector increasing by some 390 000 people 2001 2006. In 2006, the construction sector saw a real growth of 14%, compared to 14%, compared to 10% in 2005; this is also reflected in the double digit in the cement sales. In medium term the sector will continue to be underpinned by strong public infrastructural
139

expenditure. Public sector infrastructural expenditure has increased by 15.8% per year between 3003/04 and 2006/07. According to the Department of Public Works (1999), the industry contributed 35% to the total gross domestic fixed investment and employed approximately 230,000 employees. The gross capital formation of the construction (civil engineering) was R53.5 billion (16.7%) of total capital formation in 2006, to this can be added a further R35.8 billion for residential buildings and R33.4 billion for nonresidential buildings. Thus, the total value of the sector was R122 345 billion (38, 2%) of the total Gross capital formation in 2006. South African Government is the single biggest construction client, making up between 40% and 50% of the entire domestic construction expenditure. CONSTRUCTION INDUSTRY IN SOUTH AFRICA Construction industry has a critical role to play in fostering economic and development in the formal and informal sector of the South African economy. The industry, however, faces some serious challenges in its endeavour to deliver infrastructure projects effectively. This is evident from the research that was done by SAPOA. It stated that contractors face many problems when delivering construction projects, as a result poor contractor performance, as characterized by poor work quality and low productivity are common in the industry. The biggest challenge facing South African construction industry is the problem of skills shortage. In a survey that was done in July 2007 (Business Day), the annual international Business Report from Grant Thornton showed that a shortage of skilled workers is the main obstacle to expansion for 58% of medium-to-large business in South Africa. Official data has shown that shortage is already being experienced in the construction industry and is set to double in size over the next six years. Officials estimate that by 2010 the sector will need an additional 11000 engineers and 50000 artisans, including bricklayers, welders, electricians and draughtsmen. On the other hand, the South African Institute of Civil Engineerings (SAICE) executive director Dawie Botha believes that the construction and civil engineering industry may have to import some skills to facilitate implementation capacity. He added that training and education forms a vital part of the industrys success for going forward, but he believes that it is inevitable for certain skills to be imported, such as tunnel experts for Gautrain project. Botha noted that the need for skills is overwhelming, for example, one Gauteng municipality requires 25 engineers, but has only seven on the payroll. REVIEW OF INTERNATIONAL LITERATURE In construction, higher productivity means seeing the final result sooner, which in turn creates satisfaction. Borcherding and Oglesby (1975) reported that job dissatisfaction can be one factor that will increase costs, produce time delays and generally reduce productivity on most types of projects. One way that construction management can influence productivity is by determining how smooth the work will flow and how much work can be accomplished. Another more important way that construction management influences productivity is by how it influence workers attitude, which is a major element in worker motivation and determining how much work will be accomplished. The experience of individuals within social settings is interpreted and given meaning by the actions and communications of the fellow constituents to the social setting. In construction sites, the discourse, language and behaviour of the participants forms a medium through which the organization expresses itself. For individuals within a site setting then, the sense they make of their experience, and importantly, the responses they give to their experiences is influenced by the discourse through which
140

they experience the organization. Meaning comes from adherence to key values, with people left free to make choices over particular actions. (Watson 1994). MOTIVATIONAL THEORIES The literature review has been done based on the research findings that were published on employee's motivation for more than 50 years ago by the works of Maslow in 1954; Herzberg et al in 1959; Alderfer in 1969; McClelland in 1961 and McGregor in 1960. The models used in the construction industry today have been developed from their theories. Their studies focused on motivation, employee needs and incentives in the construction industry. The productivity of construction workers in developed countries has been extensively explored over the past decades. For instance, as reported by Kaming et al (1997), Borcherding (1975) investigated the effective utilization of manpower in construction and again he identified potential factors influencing productivity on large projects; whereas Borcherding and Garner (1981) and Maloney and McFillen (1986, 1987) examined workforce motivation and productivity. Furthermore Thomas (1981) employed activity sampling to investigate labour productivity, while Horner et al (19876) elaborated on the relationship between management control and labour productivity. Allmon et al (2000) went ahead to study the U.S. construction labour productivity trends, 1970 1998. Goodrum and Haas (2001) while closing discussion on the work of Allmon et al brought up arguments to further establish the fact that construction projects are rarely similar and identical undertakings are virtually non-existent. EMPLOYEE MOTIVATION A definition of motivation is the set of processes that determine the choices people make about their behaviours. Motivation is an abstract term. It imparts incentives that require a response on part of someone else to achieve a defined goal. In business, motivation is not synonymous with salaries; money is a means for accommodating the economic needs of workers. Motivation means an inner wholesome desire to exert effort without the external stimulus of money. Motivating is the ability of indoctrinating the personnel with a unity of purpose and maintaining a continuing, harmonious relationship among all people. It is a force which encourages and promotes a willingness of every employee to cooperate with every member of the team. To maintain it is to create and perpetuate the climate which brings harmony and equilibrium into the entire work group for the benefit of all who are involved the company as a whole (Wilbert Scheer 1979). Since the effective motivation comes from within, by motivating others, the manager can do more than create proper conditions that cause people to do their work willingness and enthusiasm. Motivating is the work managers perform to inspire, encourage and impel people to take action (Louis Allen 1986). To motivate the employee, the employee must be reached; to reach him there must be a completed understanding of the complexity his make-up (Louis Allen 1986). Motivation efforts must be directed towards improving company operations. To be effective, however, they must also be designed to show benefits to the employee. In fact, motivation can best be accomplished when workers are able to merge their personal ambitions with those of the company. According to Robin and DeCenzo (1995; 271) motivation is defined thus, the willingness to exert high level of effort to reach organizational goals, conditioned by the efforts ability to satisfy some individual need. Campbell and Pritchard (1976) in defines motivation as a set of independent and dependant relationships that explains the direction, amplitude and persistence of an individuals behaviour holding constant the effects of aptitude, skills, understanding of a task and the constraints operating in the work environment. Schrader (1972) linked construction worker need to motivation, and it was subsequently concluded by
141

Thomas et al. (1990) that there is evidence supporting the existence of a linkage between an employees motivational level and their individual performance. Atkinson (1964) defines it as the contemporary immediate influence on the direction, vigour, and persistence of action. The relationship between the employer and employee must be one of understanding in order for the employee to identify himself with his work and with the business he is working for. Lack of motivation in return affects productivity. A number of symptoms may point to low morale: declining productivity; high employee turnover; increasing number of grievances; higher incidence of absenteeism and tardiness; increasing number of defective products; higher number of accidents or a higher level of waste materials and scrap (William Day 1978). A motivated employee is a loyal employee and to be loyal implies that the employee supports the actions and objectives of the firm. The appearance of the job as a whole has, in fact a bearing on the willingness and quality of an employees performance (Martin Bruce 1962). According to McClelland (1961) individuals tend to develop certain motivational drives on the cultural environment in which they live and these drives affect the way people view their jobs. McClelland suggests that achievement, affiliation, competence and power are four types of motivational drives that are found in individuals that are self-motivated and this may be the case for many construction workers. Motivation plays a part in enhancing construction labour productivity (Smithers and Walker, 2000) and forms the basis for identification of the work environment factors. For example, Laufer and Moore (1983) advocated the use of financial incentive programmes to improve construction labour productivity, reinforcing Maloneys (1982) thesis of driving forces that led to productivity improvements. Autonomy and comradeship (Edwards and Eckblad, 1984) are also found to be important aspects that add to the way construction workers are self-motivated about their work. However, much work in linking motivation and productivity relied on Hertzbergs sample involving mainly white-collar professionals (Mullins, 1996). Furthermore, Hofstede (1980) decried such motivational theories as merely point made about the ad nauseam emphasis on the managerial perspective in the quest to improve productivity. John Borcherding and Clarkson Oglesby (1974) discovered that productive job creates high job satisfaction while non-productive job (one which fall behind schedule) produce dissatisfaction at all levels of the management/worker chain. The relationship is believed to be due to the very nature of construction, thus different from the one found in an office or factory setting which states that high job satisfaction leads to greater productivity. In construction, a worker, through his own efforts produces a highly visible, physical structure in which great satisfaction comes from completion. Therefore, jobs that are well-planned and run smoothly produce great satisfaction while jobs with poor management (with scheduling and planning problems), create dissatisfaction. This illustrates the relationship between job satisfaction and productivity since; well-managed jobs are generally more productive. A close review of all theories of human motivation reveal a common driving principle that people do what they are rewarded for doing. In general, the theories on motivation can be classified as: employee needs motivation through goal-setting, employee reward/incentives and reinforcement. INCENTIVES In order to keep construction workers motivated their needs must be addressed as project goals are reached. Satisfying workers needs can be viewed as distributing incentives when certain objectives are achieved. Employees have needs that they want met and employers have goals that they reach and they can work together as a team to satisfy the wants of both the employees and their employers. Workers
142

who are motivated to help reach the goal of the employer and do so should be recognized with an incentive/reward. When considering what type of incentives to use there are two types to be aware of, extrinsic and intrinsic. Extrinsic rewards are external rewards that occur apart from work, such as money and other material things. On the other hand, intrinsic rewards are internal rewards that a person feels when performing a job, so that there is a direct and immediate connection between work and reward. The power of incentives is immense and pervasive, which is all the more reason they require careful management (McKenzie and Lee 1998). Heap (1987) has summarized a list of these advantages and disadvantages associated with financial incentives. Many construction companies have already considered that there can be advantages and disadvantages of developing an incentive program. A study by Sanders and Thompson (1999) showed that those companies that keep their program simple with the main objective of the program in mind (to benefit the project in reference to cost, schedule, customer service, environment and quality) are also deemed success of any incentive program. Incentives are usually defined as tangible rewards that are given to those who perform at a given level. Such rewards may be available to workers, supervisors, or top managers. Whether the incentive is linked directly to such items as safety, quality or absenteeism, the reward follows successful performance (MaKenzie and Lee 1998). Many companies feel that pocket money is to longer a good motivator. Others contend that small rewards such as toasters and blenders do not motivate. Many companies therefore offer profit sharing plans; or companies have abandoned monetary rewards and instead offer lavish trips to such places as Europe and some Caribbean islands. Because of the expense, these programs require careful monitoring. Some companies merely reward good producers with an extra day off with pay. Other concerns reward top performers with better working conditions. Since incentive programs aim to increase workers performance levels, the measure used to decide if a reward has been earned should be carefully set. The performance level must be attainable or workers wont try to reach the goal. That fact underscores the usefulness of having workers themselves contribute their ideas about what constitutes a reasonable level of performance. An incentive scheme may also fail if the measure of success ignores quality or safety. An obvious problem exists when an incentive is applied to work that is machine paced. Incentives should b e clearly linked to performance, but not all incentives can be clearly tied to objective criteria. Some incentive rewards are issued on the basis of a subjective assessment by a superior on the merit of particular workers. This method, in particular, may cause conflicts between workers, especially those who do not win rewards. PERFORMANCE Despite development in the project management technology workers are still the key players in the projects. They determine the success or the failure of a project; they define project goal, they plan organize, direct, coordinate and monitor project activities. They also meet project goals and objectives by using interpersonal and organizational skills such as communication, delegation, decision-making and negotiation (Yvonne du Plessis 2003). She adds In project environments, people can be viewed as contributing problems and constraints or a providing solution and opportunities, and concludes that human resource management is a vital component of a project. The emphasis is on the workforce and how they can be managed and led to increase their overall efficiency and effectiveness as individuals, as project teams and as the members of the organization. It is important therefore, that the right people enter the project at the right time, which they are organized and motivated as individuals and work as a team to deliver according to the project goals and therefore recognized and rewarded for their achievements. She has the following definition of performance;
143

Commitment: A persons ability to complete a job successfully Caliber: It is a term used to describe the personal qualities and ability a person brings to the job. These are the qualities of skill that enables a person task, and give him the capacity to cope with the demands of the job. A persons level of caliber is associated with their inmates ability and the amount of training and experience they have acquired. Therefore, performance of an individual depends on his wiliness and drive to complete the task, which is his commitment. Unlike caliber, commitment is not a fixed commodity; it may change quite frequently in response, to conditions and situations the individual encounters. Performance = Function (Caliber x Commitment) The manager must use an appropriate style of leadership to control the working environment in such a manner that the workforce will be committed to do the task and so motivate themselves to achieve the objectives of the project. CONCLUSION AND RECOMMENDATIONS Productivity is one of the most important factors affecting the overall performance of any organization, large or small. At the micro-level, improved productivity decreases unit costs and serves as an indicator of project performance. At the macro-level, improved productivity is a vital tool in countering inflationary effects and determining wage policies. Improved productivity is thus always counted among the basic means of solving economic problems. It is increasingly recognized that capital alone is an inadequate means of producing more wealth or for starting a business in developing countries. Improved productivity is also required; if all production inputs are well utilized, capital improvements and enhanced productivity go hand in hand. In other words, increased productivity enhances investments without any burden to governments. In addition to the advantages at this fundamental level, the advantages of productivity improvement can be summarized as follows: Decreased total cost and duration of production Improved quality Growth in market share of product Increased employment and wages without inflationary pressures Enhanced purchasing capacities among employees, employers, and customers. REFERENCES Allardyce, J., McNamara, S., 2005. A Workforce Needs Assessment of the Arizona Construction Trades Industry Basson, G., Garruthers, M., Kruger, D., du Plessis, Y., Visser, K., Steyn, H., Prozesky-Kuschke, B., Van Eck, S., 2003. Project Management A Multi-Disciplinary Approach, FPM Publishing, South Africa Chan, W., Kaka, A., 2007. Productivity improvements: understand the workforce perceptions of productivity first. Vol. 36 (4) pp. 564 584

144

CIDB 2007. Skills for Infrastructure Delivery in South Africa: the challenge of restoring the skill pipeline, Department of Public Works Cox, R., Frey, A., Isaa, R. 2006. Proposed subcontractor-based employee motivational model. 132: (2) 152 Dainty, A., Lingard, H., Loosemore, H. 2002. Human Resource Management in Construction Projects Strategic and Operational approaches, Spoon press, London Dlungwana, S., Noyana, C., Nxumalo, X., Rwelamila, D., Van Huysteen, S.,Xolani H., 2002. Development And Implementation Of The South African Construction Excellence Model (Sacem) Gonzalez, E. 1991. Construction Worker Motivation: The Means to Improving Worker Productivity. Pagination 107 Gruneberg, S.L. 1997. Construction Economics: Palgrave Publishing Limited. New York Harris, F., McCaffer, R. 2001. Modern Construction Management: Blackwell Science Herselman, S. 2001. Performance, motivation among employees of a wholesale company. South African Journal of Ethnology vol. 24 p. 1-10 Hill, C. 2002. Developing A Methodology for the Examination of MotivationKazaz, A., Ulubeyli, S. 2006. Drivers of productivity among construction workers: A study in a developing country, Construction Management Division, Civil Engineering Department, Faculty of Engineering, Akdeniz University, Lampert, H. 1991. Production in the construction industry in the Republic of South Africa A holistic approach to resources utilization

145

INVESTIGATING THE CONTRACTORS RISK SOURCES ASSOCIATED WITH THE PRINCIPAL BUILDING AGREEMENT IN SOUTH AFRICA
Harinarain N 1, Othman AAE 2 , Pearl, RG 3
School of Civil Engineering, Surveying & Construction, Faculty of Engineering, University of KwaZulu-Natal, Durban, South Africa. 1 Harinarain@ukzn.ac.za, 2 Othman@ukzn.ac.za and 3 Pearl@ukzn.ac.za Tel. No. 01326022687.

ABSTRACT Purpose of this paper - This paper aims to identify and quantify the risk sources to the contractor when using the Joint Building Contract Committee Principal Building Agreement Series 2000 JBCC (PBA). Methodology/Scope - In order to achieve the above aim, a research methodology is designed to accomplish three objectives. Firstly, literature review was used to investigate the Joint Building Contracts Committee, fundamental concepts of contracts, parties of the building contact, obligations of the employer and the contractor as well as the principals of risk in construction projects. Secondly, developing the correlation matrix that establishes the relationship between the JBCC (PBA) clauses and project stakeholders. Finally, survey questionnaires and interviews were used to identify and quantify the contractors risk sources associated with the JBCC (PBA). Quantitative and qualitative approaches were adopted for analyzing collected data. Findings - Establishing a correlation matrix between the project stakeholders and the different clauses of the JBCC (PBA) to identify the sources of risk that confront the contractor when using the JBCC (PBA). Quantifying the contractors risk sources in order to enable construction companies pay more attention when dealing with these stakeholders in future projects. Practical implications - The identification and quantification of the contractors risk sources associated with the clauses of the JBCC (PBA) will enable the contractor consider the roles of project stakeholders when developing the risk management plan. Value - In depth literature review showed that the research work presented in this paper and the developed correlation matrix is original and was not done before in the South African Context. Keywords: Identifying and Quantifying Contractors Risk Sources, Project stakeholders, Correlation Matrix, Principal Building Agreement.

1 INTRODUCTION The construction process is governed by complicated contracts and involving complex relationships in several tiers (Abdou, 1996). There are many risks involved in construction projects. These risks could be attributed to a number of reasons. Amongst them the nature of the construction process, the complexity and time-consuming design and construction activities, the involvement of a multitude of people, from different organisations, with different skills and interests. Hence, a great deal of effort is required to co-ordinate the wide range of activities that are undertaken (Chapman and Ward, 1997; Shen, 1999). The building contract is an agreement between two parties, one of whom, the building contractor, agrees to erect a building, and the other, the employer, agrees to pay for it. Personal rights and obligations are created by the agreement, and the right of one party is the obligation of the other. A contract comes into existence on the acceptance of an offer. There is a meeting of minds, a consensus that is an essential element of a contract (Finsen, 1999). Contractual
146

documents are tools for managing risks (Uff, 1981). Flanagan and Norman (1993) state that the purpose of the contract is to establish the rights, duties, obligations, and responsibilities of the various contracting parties in order to allocate risk. A building contract is a trade-off between the contractor's price for undertaking the work and his willingness to accept both controllable and uncontrollable risks. Controllable risks are the ones that emerge within the contractor's organization, where uncontrollable risks are the ones which emerge outside the contractor's organization. Although the two parties of the contract are: the client and the contractor, other project stakeholders are involved in the construction process (i.e. architect, quantity surveyor and supplier). Because of the different culture, interest and organisational structure of each of them, some parties represent a risk source to other parties. Despite the spate of studies aimed to managing risks and contracts in construction projects (for instance, Cooper and Chapman, 1987; Chapman, 1991; Flanagan and Norman, 1993; Edwards, 1995; Shen, 1999; Abdou, 1996; Ranasinghe, 1994 and 1998; Tah and Carr, 2000; Wang et al., 2000; Han et al., 2005; O'Reilly and Mawdesley, 1994) and the research focused on risks that face the client and other project stakeholders (such as Kometa et al., 1996; Kernohan et al., 1992; Fang et al., 2004) little attention has been paid to study the risk sources that confront contractors when using the JBCC (PBA) in South Africa. Smith (1998) highlighted that for years the South African building industry had a very poor reputation in managing construction risks. The research work presented in this paper is part of a successfully completed Master Degree in Construction Project Management, carried out at the School of Civil Engineering, Surveying and Construction, University of KwaZulu-Natal, South Africa, (Harinarain, 2008) aimed to investigate the risks associated with the JBCC (PBA). The purpose of this paper is to identify and quantify the contractors risk sources associated with the JBCC (PBA) in South Africa. 2 RESEARCH METHODOLOGY AND SAMPLING Because of the research nature that entails carrying out thorough literature review and investigating the opinion of South African contractors about the risk sources that they may confront when using the JBCC (PBA), a research methodology, consisted of literature review, questionnaires and interviews, was used to accomplish the three objectives. Firstly, literature review was used to investigate the Joint Building Contracts Committee, fundamental concepts of contracts, parties of the building contact, obligations of the employer and the contractor as well as the principles of risk in construction projects. Secondly, developing the correlation matrix that establishes the relationship between the JBCC (PBA) clauses and project stakeholders. Finally, questionnaires and interviews were conducted with selected sample of Durban based construction companies to identify and quantify the contractors risk sources associated with the JBCC (PBA). The objective of the sampling process was to get a representative and non-biased sample to increase the validity and reliability of collected data. The Master Builder Association website (Master Builder Association, 2008) was accessed to get a list of Durban based construction companies. The result was a list of 62 companies ranging from small, medium to large enterprises. This helped get a clear and well represented sample. All these companies have been contacted telephonically to enquire if they utilise the JBCC (PBA). Out of the 62 companies contacted, 23 stated that they utilise the JBCC (PBA). These companies were contacted and the scope of the study was introduced to them. Only 9 companies agreed to participate in the study. The survey questionnaires were faxed to these companies and respondents were then interviewed to gain in depth insight and feedback. The measure of central tendency was used to get an overview of the typical value for each variable by calculating the mean, median and mode (Bernard, 2000). Analysis of the collected data showed close values of these measures which confirmed the quality and the homogeneity of the collected data. The data was analysed with the aid of Microsoft Excel spreadsheet. Since there were no quantification without qualification and no statistical analysis without interpretation (Bauer and

147

Gaskell, 2000) during the course of this research both approaches of quantitative and qualitative data analysis were employed. 3 OVERVIEW OF THE JBCC BUILDING AGREEMENTS In 1984 the Joint Building Contracts Committee (JBCC) was established, to draft an agreement for the construction industry. In 1991 the committee published the JBCC Principal Building Agreement (PBA) and associated documents. In 1998 the contract was re-examined and re-drafted and a new set of documents, designated JBCC Series 2000, were published (Finsen, 1999). The JBCC is a committee which represents the variety of interests in the South African construction industry. It has six constituent member organisations which are: the Association of South African Quantity Surveyors; the Institute of South African Architects; the South African Association of Consulting Engineers; the South African Property Owners' Association; the Specialist Engineering Contractors Committee, and the Building Industries Federation of South Africa (BIFSA) (Van Deventer, 1993). The JBCC Series 2000 is a suite of documents that comprises the Principal Building Agreement, the Nominated/Selected Subcontract Agreement and the Preliminaries, which together constitute the terms and conditions of the agreement between the parties. In addition, there are sundry documents that do not add to the rights and obligations of the parties but merely facilitate the administration of the contract. These include the Contract Price Adjustment Provisions, the Construction Guarantee, the Payment Guarantee, the Payment Certificate, the Completion Certificate, etc. (Finsen, 1999). 3.1 The Principal Building Agreement This document records the terms of the agreement between the employer and the contractor, in which the employer is represented by a principal agent, on whom nearly all of the employer's rights and obligations devolve. Other agents may be appointed to whom some of the principal agent's duties may be delegated. The document commences with a comprehensive list of definitions. The document concludes with a schedule of variables containing information specific to a particular contract. 4 FUNDAMENTAL CONCEPTS OF CONTRACTS: The contract is an agreement by which the employer and the contractor agree about what should be done, how and when it should be done, and what should happen if it is not done. Agreement is the basis of the contract. Absence of an agreement on any fundamental aspect would be fatal to the contract and would render performance and enforcement impossible (Finsen, 1999). The followings are the fundamentals of contracts: 4.1 Contractual capacity Anyone who has reached the age of 21 has contractual capacity, and therefore has the capacity to enter into a valid contract. Excluded are persons of unsound mind, women who are married in community of property and un-rehabilitated insolvents. A juristic person, such as a company or close corporation can enter into a contract but the act is performed by a natural person duly authorised acting on its behalf (Murdoch, 1996; Flanagan and Norman, 1993; Uff, 1981). 4.2 Variation of the terms of the contract Just as a contract comes about by the consent of the parties, so by consent they can bring it to an end, or vary any aspect of the agreement (Murdoch, 1996; Flanagan and Norman, 1993; Uff, 1981). 4.3 The lawful termination of contracts The contract can be brought to an end by mutual agreement. The most natural way in which a contract may come to an end is by the performance by each party of all his obligations under the contract. When each party still has obligations to discharge, a contract will terminate when the
148

parties mutually agree to bring it to an end. A contract may also come to an end when one of the parties, who no longer wishes to perform his obligations and enjoy his benefits under the contract, finds someone else to step into his shoes who will take over both his rights and obligations. Where this happens, the original contract terminates and a new contract arises, but all the original terms persist unless otherwise decided by the parties (Murdoch, 1996; Flanagan and Norman, 1993; Uff, 1981). 4.4 Breach of contract Contracts impose various obligations on the parties. If one of the parties does not carry out any particular obligation, he or she is said to be in breach of contract. The remedies available to the innocent party prejudiced by such breach may be cancellation of the contract and a claim for damages, or he or she may elect to uphold the contract and claim specific performance together with damages (Murdoch, 1996; Flanagan and Norman, 1993; Uff, 1981). 4.5 Penalties and damages Time is frequently stated in the tender documents as being the essence of the contract. If the building is completed later than the contracted completion date, the employer will have lost the use of it for a while. An employer who suffers financial loss as a consequence of late completion of the works is entitled to the usual contractual remedy of damages (Murdoch, 1996; Flanagan and Norman, 1993; Uff, 1981). 4.6 Extensions of time Most building contracts contain express provisions under which the period allowed for the contractor to undertake and complete the works can be extended. The importance of losing the fixed date is that a contractor who has caused part of the delay is still liable to pay general damages for delay (Murdoch, 1996; Flanagan and Norman, 1993; Uff, 1981). 4.7 Dispute-resolution All parties to a building contract will start off with the best intentions to get the work both completed satisfactorily in the agreed time and at the least expense to the owner. Somewhere between the beginning and the end, disagreements, disputes, disruption and delays arise which can destroy the best of intentions. The reasons for disputes are the fact that the scale of building projects has increased enormously in recent years, and their design and construction has grown in complexity. Such projects require an ever-increasing number of specialist subcontractors. The pressure has been on the construction industry to build more and more in less and less time (Murdoch, 1996; Flanagan, Norman, 1993; Uff, 1981). 5 PARTIES OF THE BUILDING CONTRACT The parties to a building contract are, on the one hand, the person who wishes to have a building built for himself, who is generally referred to in building contracts as the employer, and, on the other hand, the builder who carries out the work, generally referred to as the contractor. Architects, quantity surveyors, engineering consultants, etc. are not parties to a contract in that they do not acquire legal rights or obligations, but they are nevertheless charged with many duties as agents of the employer and have their own contracts with the client (Finsen, 1999). Agency is a broad term describing the relationship between two parties whereby one, the agent, acts on behalf of the other, the principal. An agency may arise under a contract, whereby the agent is appointed by his principal to carry out certain duties (Uff, 1981). Figure (1) shows the parties of the building contract. 5.1 The employer Employers may be divided into two categories: those who erect buildings for their own ownership and use, whether they intend to inhabit and use the buildings themselves or let them to others, and
149

those whose intention is to sell the buildings as soon as they can, possibly even during the construction phase, so that they can recoup their capital, with a profit, and embark on further building projects. This latter type of employer is generally referred to as a property developer. Most of the major employers with large ongoing building programmes are members of the South African Property Owners' Association (SAPOA) which was formed to co-ordinate their views and to provide a representative body for negotiating with other representative bodies in the building industry (Finsen, 1999; Murdoch, 1996; Van Deventer, 1993).

The Employer The Principal Agent The Project Manager The Engineering Consultants
PARTIES OF A BUILDING CONTRACT

The Building Contractor The

Subcontractor

The Architect The Quantity Surveyor

Parties of the building contract

Figure (1)

5.2 The building contractor A building contractor usually undertakes to build the entire project, moving onto a vacant site at the inception of the contract and at its completion, delivering a building that is complete in all respects and ready for occupation and use by the employer. Many building contractors are members of their local Master Builders Association, but membership of such associations is no guarantee of competence or integrity. Contractors are coordinated by the Building Industries Federation South Africa (BIFSA) which is a representative body that negotiates strongly on behalf of its constituent members. At one time building contractors employed most, if not all, of the tradesmen that might be required for any particular project. With the growing complexity of building techniques and installations, however, there has been very rapid growth of the subcontracting industry and there are now numerous subcontractors specialising in various aspects of building construction and installations (Finsen, 1999; Murdoch, 1996; Van Deventer, 1993). 5.3 Subcontractor Essentially the typical standard form subcontract is designed to achieve a mirror image of the main contractual provisions. As the trend towards subcontracting developed, employers saw the opportunity of getting the best of both worlds, and the nominated subcontract was introduced which enabled the employer to have the benefit of a principal contractor to control the entire building operation while yet being able themselves to choose specific subcontractors to undertake specific work (Finsen, 1999; Murdoch, 1996; Van Deventer, 1993).
150

5.4 The architect An architect is a person who designs buildings and superintends their erection. He is both advisor to, and agent of his client. Only persons registered as an architect in terms of the Architects' Act 1970 may hold themselves out as an architect. An architect is required to be familiar with all the statutory or other legal requirements or limitations on the design of his client's building and to ensure that his design complies with them (Finsen, 1999; Murdoch, 1996; Van Deventer, 1993). 5.5 The quantity surveyor The quantity surveyor is a person who calculates the quantity of labour and materials that are required to erect the building and compiles this information in a document known as a bill of quantities, which is used by tenderers as a basis for estimating the cost of the project and formulating their tenders. As an agent of the client, the quantity surveyor prepares preliminary estimates of cost, advises on the value of interim payment certificates, evaluates claims for extras and determines the proper value of the final account. In recent years the quantity surveyor's have been able to advise a client on a projects future running and maintenance costs and the income it may be expected to generate by way of rentals. During the course of the contract, he can predict the employer's cash flow in respect of monthly payments to the contractor and keep the employer continual informed on variations to the contract price caused either by cost fluctuations or changes to the design or specification. The profession of quantity surveying is governed by the South African Council for Quantity Surveyors, a statutory body established in terms of the Quantity Surveyors' Act 1970, which supervises the education of quantity surveyors, administers their registration and deals with infringements of the rules of professional conduct (Finsen, 1999; Murdoch, 1996; Van Deventer, 1993). 5.6 Engineering consultants The structural design of contemporary buildings, and the design of their mechanical and electrical installations, has become so sophisticated and complex that it is beyond the technical knowledge and experience of architects, and is therefore undertaken by engineers trained and experienced in this type of work. Like the other members of the professional team, the engineer is normally engaged by the employer of the building and is liable to his client for any negligence in the execution of his professional duties (Finsen, 1999; Murdoch, 1996; Van Deventer, 1993). 5.7 The project manager A project manager is involved in a number of highly specialised professional disciplines and activities in complex projects where there is a need for someone to co-ordinate these disciplines in order to ensure the timeous and harmonious completion of the project. The prime responsibility of project managers is to see that neither the programme nor the budget is exceeded. In so doing the project manager often becomes the principal agent in the building contract, with the responsibility for the contract administration duties that would otherwise devolve upon the architect (Finsen, 1999; Murdoch, 1996; Van Deventer, 1993). 5.8 The principal agent In the JBCC Series 2000 edition no mention is made either of the architect or of the quantity surveyor or any of the engineers. Instead there is a principal agent who assumes all these roles. He may be an architect or anyone else, even a project manager. He is not expected to fulfill all of these roles as provision is made for the employer to appoint other agents who will continue to play their traditional roles. However, it is only the principal agent who can issue instructions, receive notices on behalf of the employer and bind the employer, although he can delegate certain of his authority to the other agents. The principal agent is not a party to the contract and does not acquire any contractual rights and obligations. He acts on behalf of the employer in respect of a great number of his obligations which, for lack of training and expertise, the employer cannot perform himself. The duties of the principal agent and the other agents to the employer under a construction contract are,
151

first, to carry out their duties with reasonable skill and care, independently exercising reasonable professional judgment, and, secondly, to protect the employer's interests (Finsen, 1999; Murdoch, 1996; Van Deventer, 1993). 6 OBLIGATIONS OF THE EMPLOYER AND THE CONTRACTOR

6.1 Obligations of the employer under the Principal Agreement The prime obligations of the employer under the contract are: (1) Appoint agents The employer surrenders many of his contractual rights to his principal agent: inter alia, the right to approve work, to order additional work, to determine the value of variations, to extend the construction, and to determine the amounts of payments to be made under an interim or final payment certificate. (2) Hand over the site to the contractor At the commencement of the construction period, the site is required to be 'handed over' to the contractor to enable him to carry out the contract. The contractor is put in possession of the site, but ownership of the site remains with the employer. (3) Make payments in accordance with the agreement. (4) Provide a payment guarantee if required. (5) Provide drawings and instructions The contractor has undertaken to carry out the work in accordance with the drawings and instructions issued from time to time by the principal agent. (6) Interim payments Most contractors do not have the financial resources to finance the construction of a project from start to finish, and it has become the invariable custom that the contractor is paid at regular intervals, usually monthly, an amount which represents the value of work done since the previous payment. (7) Final account and final payment The final account, which represents the contract value at the time that the contractor has finally discharged his contractual obligations, is required to be prepared by the principal agent and submitted to the contractor within 90 working days from the date of practical completion. The contractor is required to co-operate and assist in the preparation of the final account by providing all necessary documents and information that may be requested (Finsen, 1999; Edwards, 1995; Van Deventer, 1993). 6.2 (1) Obligations of the contractor under the Principal Building Agreement The obligations of the contractor under the Principal Building Agreement are: Submission of priced bills of quantities or lump-sum document The bills of quantities will be used primarily for valuing variations, but also for valuing work in progress for interim payment certificates. Furnishing of security Clause 14.0 provides for three alternative forms of security for the due performance of the contract to be furnished by the contractor, and the choice rests with the contractor, who is required to indicate his choice in his tender. In the event that the contractor fails to provide a security, the employer may either accept the default form of security provided or cancel the agreement. Furnishing waiver of lien. Where the contractor is required to waive his lien, he shall do so, using the JBCC Waiver of Contractor's Lien form, within seven calendar days of receiving a payment guarantee from the employer. Appoint a site representative Clause 6.0 requires the contractor to have on site at all times a competent representative to administer and control the works.
152

(2)

(3)

(4)

Prepare a construction programme The common-law position is that the contractor, having contracted to carry out certain work within an agreed time, is free to carry it out in whatever manner he wishes. (6) Carry out and complete the work by the agreed date The contractor's first and most obvious obligation is to carry out the agreed work, and to do so by the agreed date. Failure to complete the works by the agreed date renders him liable to penalties for non-completion (7) Materials and workmanship to be satisfactory The contractor is deemed to be an expert in building, and is expected to ensure that the materials that he acquires for the works are not defective. (8) Contractor's obligations to subcontractors The contractor stands in the same relationship to a subcontractor under a Subcontract Agreement as the employer does to him under the Principal Agreement, to give the subcontractor access to the portion of works necessary for the execution of the subcontract, to make payments, to furnish a payment guarantee, and to provide drawings and instructions. (9) Limitation to liability for latent defects The contractor's obligation is to complete the works free of patent defects. Latent defects may become apparent some time after final completion, and if they were due to some breach of the contract, the contractor would be liable for their rectification. In the JBCC Agreements, as a matter of policy, the contractor's liability for latent defects is contractually limited to five years. (10) Liability for design Where the design is prepared by an architect or engineer, the contractor's contractual obligation is to build in strict accordance with that design, and any deviation from it would amount to breach of contract. (11) Suspension of the works The contractor is not entitled to suspend the works for any reason whatsoever. (12) Contract instructions The employer, has the unilateral right to vary the extent and nature of the performance to be rendered by the other party. The other party, the contractor, cannot refuse to carry out the varied obligation, and his only remedies are an adjustment of the price he is entitled to be paid for the performance, and, in appropriate circumstances, an extension of the time in which to make such performance (Finsen, 1999; Edwards, 1995; Van Deventer, 1993). 7 THE PRINCIPALS OF RISK IN CONSTRUCTION PROJECTS Construction projects can best be understood in the context of the whole industry. Technological complexity ranges from the familiar, well-known materials and trades through to highly complex facilities involving multiple interacting sub-systems. Regardless of its technological complexity, any reasonably sized project involves a high level of organisational complexity. This arises because there are many specialised skills and professions with a useful contribution to the process (Murdoch, 1996). The fundamental risks inherent in any construction project are apportioned between the client, the design team, the general contractor, the specialist contractors, and the material and component suppliers within the various contractual relationships (Flanagan and Norman, 1993). The construction industry is fundamentally a people industry where the project is designed by people, built by people and in the majority of cases built to accommodate people (Sawczuk, 1996). Some of the biggest risks taken by contractors are at tender stage when they commit to a price and programme. Many companies now consider risk management to be an essential part of the tendering process (Finsen, 1999). Risk management is concerned with identifying the salient risks, assessing their likelihood and deciding how best to manage the project efficiently in the light of this information. In entering into a contract, parties face a choice about how to deal with the risks inherent in the venture. The emphasis should be on the process of
153

(5)

identifying the nature of the particular risks for a construction project and deciding where these risks should lie within the project team. Different types of building contract will allocate risks in different quarters. In allocating a risk, construction professionals are concerned with the eventual payment and responsibility for the cost of the event, should it eventuate. The main point about contractual risks is that the contract apportions these between the parties. Even if the contract is silent on a particular risk, that risk will still lie with one party or the other. The contract may seek to transfer a risk by making one party financially liable should the eventuality take place. In this way, risks are translated into financial equivalents so that they may be transferred or otherwise dealt with (Murdoch, 1996). 8 IDENTIFICATION OF CONTRACTOR'S RISK SOURCES ASSOCIATED WITH THE PRINCIPAL BUILDING AGREEMENT Risk is defined as any unexpected events that may occur during the process of building procurement, and can cause losses to the client or other interested parties (Shen, 1999). Based on the above definition and the criteria of identifying risks associated with the JBCC (PBA) developed by (Harinarain and Othman, 2007) risk sources to the contractor could be defined as the person, authority or event that either reduce the strength of the company, increase its weakness, reduce its opportunities and increase its threats, which eventually affects the achievement of the project objectives and client satisfaction. In this research, survey questionnaires and interviews were utilized to identify and quantify the contractor's risk sources associated with the JBCC (PBA). Respondents to the questionnaire and interviewees were asked to select the risk source from a list of project stakeholders. They were (1) client, (2) principal agent, (3) architect, (4) quantity surveyor, (5) engineer, (6) supplier, (7) sub-contractor and (8) government authority. The outcome of the questionnaires and the interviews is described below. The Client as a Source Risk to the Contractor Data analysis showed that clients are the risk source to the contractor in 72.5% of the JBCC (PBA) clauses. All respondents stated that the client is the main risk source to the contractor in clauses 3,9,10,11,12,19,31,37,38 & 39. The client represents an immense risk source because he makes the decision to build, specify the design requirements, states the ultimate budget, commencement and completion dates and if there are to be any variations. Clients are risk sources to the contractor with varying degrees with regard to other clauses, see table (1). The Principal Agent as a Source Risk to the Contractor Analysis of responses showed that principal agent represents the risk source to the contractor in 25% of the JBCC (PBA) clauses with varying degrees. Lack of the leadership and experience of the principal agent to issue instructions to project teams, receive notices on behalf of the employer or represent him may cause many decisions to be suspended which in turn affect the daily work of the project and affect the contractor progress. The Architect as a Source Risk to the Contractor Data analysis showed that architects are the risk source to the contractor in 25% of the JBCC (PBA) clauses with varying degrees. Design errors, uncoordinated tender documents, design changes due to (for instance, incomplete project brief, lack of understanding client requirements, lack of design experience) are risks the contractor confront during the construction process. The Quantity Surveyor as a Source Risk to the Contractor Respondents mentioned that quantity surveyors are the risk source to the contractor in 32.5% of the JBCC (PBA) clauses. 50% of the respondents mentioned that incorrect and late completion of the contract account (clauses 33 and 34) delays the
154

contractor's cash flow and hinder him from starting new projects. Other risks that the quantity surveyors can cause to the contractor are adjustment to the contract value, delaying payment and dispute settlement, see table (1). The Engineer as a Source Risk to the Contractor Respondents mentioned that in 10 out of 40 clauses of the JBCC (PBA) the engineer is considered the risk source to the contractor. Complexity of building design, lack of expertise, design error, missing information, uncoordinated documents and resolving disputes represent risk sources to the contractor. Engineers are risk sources to contractors with varying degrees in other clauses, see table (1). The Supplier as a Source Risk to the Contractor In 3 out of 40 clauses of the JBCC (PBA) suppliers represent risk to the contractors. Lack of access of the supplier to the work, revising the completion date and dispute settlement will hinder the supplier from delivering requirements materials and equipment on time which delays the contractor and prevents him from meeting the project requirements. The Sub-contractor as a Source Risk to the Contractor In 37.5% of the JBCC (PBA) clauses, sub-contractors represent the risk sources to the contractor. 22.2% of the respondents stated that in clause 21 and 23, subcontractors were the main source of risk to contactor. This is because any delay caused by the subcontractor due to incompletion of his job will hinder the contractor to meet the project deadline and could cause penalties and client dissatisfaction. Sub-contractors are risk sources to contractors with varying degrees in other clauses, see table (1). The Government Authority as a Source Risk to the Contractor In 12.5% of the JBCC (PBA) clauses, Government authorities represent the risk sources to the contractor. 83% of the respondents stated that changing government regulations during the construction process is considered a risk that affects the contractors progress on site. Government authorities are risk sources to contractors with varying degrees in other clauses, see table (1). It worth to mention that 21% of the clauses are not applicable because they either do not contain any words or they are explaining various aspects of the contact. 9 QUANTIFICATION OF CONTRACTOR'S RISK SOURCES ASSOCIATED WITH THE PRINCIPAL BUILDING AGREEMENT Data analysis showed that clients are ranked the highest risk source that faces contractors when using the JBCC (PBA) with (mean 4.8, median 4.7 and mode 4.8 out of 5). Sub-contractors were ranked the second risk source to the contractor with (mean 4.5, median 4.4 and mode of 4.3 out of 5). Suppliers were ranked the least risk source to the contractor with (mean of 2.7, median 2.6 and mode 2.5 out of 5). Figure (2) and Table (2) show the quantification of the contractors risk sources. 10 CONCLUSIONS AND RECOMMENDATIONS

Construction is high-risk venture. Each project is unique and has its own specific design to be constructed on a particular site within a definite timeframe, cost, materials, equipment and labour. Successful construction requires flawless functioning of the project stakeholders comprising the client, the design team, the construction team, and various trades, manufacturers, suppliers in a professional and timely manner. In spite of the client and the contractor as the contract parties, other project players are involved in the construction process. Due to the different culture, interest and organisational structure of each of them, some parties represent a risk source to other parties. This paper identified the contractors risk sources associated with the JBCC (PBA) in South Africa.
155

Results of the study showed that the risk sources to the contractors ranked from the highest to the least order are: client, sub-contractor, quantity surveyor, principal agent, architect, engineer, government authorities and supplier. Contractors have to consider the effect of each risk source when developing their risk management plan.
Sources of Risk to the Contractor
c o n tra c to r Clauses C lie n t G o v e rn m e n t 83% 11.11% 17% 8% 18.89% 17.78% 17.78% 17.78% 17.78% 12.50% 12.50% 12.50% 42% 18.89% 17.78% 17.78% 17.78% 17.78% 12.50% 12.50% 12.50% 18.89% 17.78% 11.11% 11.11% 11.11% 12.50% 12.50% 12.50% 44.44% 44.44% 33% 50% 42% 18.89% 17.78% 17.78% 17.78% 17.78% 12.50% 12.50% 12.50% 12.50% 12.50% 12.50% 5.56% 11.11% 17.78% 17.78% 17.78% 12.50% 12.50% 12.50% 12.50% 12.50% 12.50% 11.11% 17% 17% A u th o rity S u rv e y o r A rc h ite c t E n g in e e r P rin c ip a l Q u a n tity S u p p lie r

A g e n t

DOCUMENTS INDEMNITIES WORKS INSURANCES LIABILITY INSURANCES 12.0 EFFECTING INSURANCES 19.0 ASSIGNMENT 31.0 INTERIM PAYMENT 3.0 9.0 10.0 11.0 37.0 CANCELLATION BY EMPLOYER. LOSS AND DAMAGE 38.0 CANCELLATION BY CONTRACTOR - EMPLOYER'S DEFAULT 39.0 CANCELLATION-CESSATION OF WORKS 21.0 SELECTED SUBCONTRACTORS 23.0 DOMESTIC SUBCONTRACTORS 22.0 DIRECT CONTRACTORS 27.0 LATENT DEFECTS 20.0 NOMINATED SUBCONTRACTORS 33.0 RECOVERY OF EXPENSE AND LOSS 34.0 FINAL ACCOUNT AND FINAL PAYMENT 7.0 REGULATIONS 32.0 ADJUSTMENT TO THE CONTRACT VALUE 15.0 WORKS EXECUTION 35.0 PAYMENT TO OTHER PARTIES 18.0 SETTING OUT OF THE WORKS 4.0 DESIGN RESPONSIBILITY 17.0 5.0 24.0 25.0 26.0 CONTRACT INSTRUCTIONS EMPLOYER'S AGENTS PRACTICAL COMPLETION WORKS COMPLETION FINAL COMPLETION

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 67% 67% 50% 50% 50% 17% 44.44% 44.44% 33% 33% 8% 18.89% 17.78% 17.78% 17.78% 17.78% 12.50% 12.50% 12.50% 50% 50% 33% 33% 50%

16.0 ACCESS TO THE WORKS 29.0 REVISION OF DATE FOR PRACTICAL COMPLETION 40.0 DISPUTE SETTLEMENT 1.0 2.0 6.0 8.0 13.0 14.0 30.0 DEFINITIONS

OFFER, ACCEPTANCE AND PERFORMANCE SITE REPRESENTATIVE WORKS RISK NO CLAUSE SECURITY PENALTY 36.0 CANCELLATION - CONTRACTOR'S DEFAULT

N/A N/A N/A N/A N/A N/A N/A N/A

Client Principal Agent Architect Quanitity Suyveyor Engineer Supplier Sub-contractor Government Authority
0

Risk Sources to the Contractor

10 10 13 10 3 15 5
5 10 15 20 25 30 35 40

JBCC (PBA) Clauses Affected By Risk Source

Figure (2) Risk sources to contractor using the JBCC (PBA)

Client 4.8 4.7 4.8 Sub4.5 4.4 4.3 contractor Quantity 4.3 4.2 4.2 Surveyor Principal 4 3.9 3.8 Agent Architect 3.7 3.4 3.5 Engineer 3.2 3.2 3 Government 2.9 2.8 2.8 Authorities Supplier 2.7 2.6 2.5 Table (2) the central tendency measures of the risk sources to the contractor

REFERENCES Abdou, O. 1996. Managing construction contracts. Journal of Architectural Management, 2 (1), p. 3-10.
156

Median

Mode

Mean

Table (1) Correlation Matrix of Risk Sources to the contractor Project 29 Stakeholder

S u b -

Bauer, M. and Gaskell, G. 2000. Qualitative researching with text, image and sound: a practical handbook. London: SAGE Publications Ltd. Bernard, H. R. 2000. Social research methods: qualitative and quantitative qpproaches. London: SAGE Publications Ltd. Chapman, C. B. 1991. Risk in investment, procurement and performance in construction. London: E & FN SPON. Chapman, C. B. and Ward, S. C. 1997. Project risk management: processes, techniques and insights. Chichester: John Wiley and Sons. Cooper, D.F. and Chapman, C.B. 1987. Risk analysis for large projects. John Wiley, Chichester. Edwards, L. 1995. Practical risk management in the construction industry. Telford Publishers. Fang, D. Li, M. Fong, P. S.-w. Shen, L. 2004. Risks in Chinese c0onstruction market-contractors' perspective. Journal of Construction Engineering and Management. 130 (6), p. 853-861 Finsen, E. 1999. The building contract: a commentary on the JBCC agreements. Juta & Co. Ltd. Flanagan, R and Norman, G. 1993. Risk management and construction. London: Blackwell Scientific Publications. Han, S. H., Diekmann, J. and Ock, J. 2005. Contractor's risk attitude in selection of international projects. Journal of Construction Engineering and Management, 131 (3), p. 283292. Harinarain, N. 2008. Identification, quantification and classification of risks pertaining to building contractors in the JBCC (Principal Building Agreement). Unpublished M.Sc. Dissertation, School of Civil Engineering, surveying and Construction, University of KwaZuluNatal, Durban, South Africa. Harinarain, N., and Othman, A.A.E. 2007. A Framework for identifying, quantifying and classifying risks associated with the Principal Building Agreement in South Africa. Proceedings of the 2nd Built Environment Conference, Port Elizabeth, South Africa, 17 - 19 June 2007, p.138-151. Kernohan, D., Gray, J., Daish, and Joiner, D. 1992 User participation in building design and management: a generic approach to building Evaluation. Oxford: Butterworth-Heinemann Ltd. Kometa, S. T., Olomolaiye, P.O. and Harris, F. C. 1996. Validation of the model for evaluating client generated risk by project consultant. Construction Management and Economics, 14 (2), p. 131-145. Master Builder Association. 2008. [Online] Available from: www.masterbuild.co.za. (Accessed 25 February 2008). Murdoch, J. (1996). Construction contracts: law and management. Spon. O'Reilly, M. P. and Mawdesley, M. J. 1994. The Evaluation of construction disputes: a risk approach. Engineering, Construction and Architectural Management, 1 (2), p. 103-114. Ranasinghe, M. 1994. contingency allocation and management for building projects. Construction Management and Economics, 12 (3), p. 233-243. Ranasinghe, M. 1998. Risk management in the insurance: insights for the engineering construction industry, Construction Management and Economics, 16 (1), p. 31-39. Sawczuk, B. 1996. Risk avoidance for the building team. London: Routledge, UK Shen, L. Y. 1999. Risk management. In: Best, R. and Valence, G. D. Building in Value: Pre-Design Issues. New York: John Wiley & Sons Inc. Smith, N. J. 1998. Managing risks in construction projects. Blackwell Scientific Publication,UK. Tah, J. H. M. and Carr, V. (2000) Information modelling for a construction project risk management system. Engineering, Construction and Architectural Management, 7 (2), 107-119. Uff, J. (1981). Construction law: an outline of law and practice relating to the construction industry. Sweet & Maxwell. Van Deventer, R. (1993). The law of construction contracts. Chancery.Wang, S. Q., Tiong, R.L.K. and Ting, S.K. 2000. Evaluation and management of political risks in China's BOT projects. Journal of Construction Engineering and Management, 126 (3), p. 242-249.

157

THE BENEFITS OF USING CONSTRUCTABLITY DURING THE DESIGN PROCESS.

Motsa N1, Oladapo AA2, Othman AAE3
School of Civil Engineering, Surveying & Construction, University of KwaZulu-Natal, Durban, South Africa. 1 204504234@ukzn.ac.za, Tel. No. +27 31 2602687 2 Oladapo@ukzn.ac.za, Tel. No. +27 31 2601183 3 Othman@ukzn.ac.za, Tel. No. +27 31 2602821

ABSTRACT Purpose of this paper-The construction industry is known for its lack of integration of design and construction which hinders constructability and the delivery of projects in the most cost effective manner. It is against this background that this study examined the integration of design and construction in the construction industry in KwaZulu-Natal to evaluate designers perception and implementation of constructability in their designs. Methodology/Scope-A questionnaire survey of 100 designers was conducted to investigate their perception of constructability and the extent of its implementation in their designs. Data were analysed using percentile and mean score methods. Findings-The results showed that most designers require contractors experience (76%) and consider constructability (84%) in their designs. However, only 48% of them indicated that contractors often contribute to their designs. Designers lack of construction knowledge was found to be the most critical obstacle to the implementation of constructability in design. Research limitations-This study covered KwaZulu-Natal only and the results may not be generalized beyond the province. Practical implications-Although most designers indicated that they required contractors experience in their designs only 48% were often involved with contractors in the design process. To optimize the constructability of their designs, designers need more feedback from the site which only contractors can provide. This calls for a total dismantling of the traditional compartmentalization of design and construction by more widespread use of non-conventional procurement methods which give contractors a greater role in design. Value-The results should guide the efforts of construction stakeholders to optimize cost through the implementation of constructability during designs. Keywords: constructability, designers, contractors, project costs, construction knowledge and experience. 1. INTRODUCTION Reducing building cost is a primary concern for clients, designers, contractors and other stakeholders in the construction industry. According to McCullouch (1996), the input of construction knowledge during the design phase is especially necessary to achieve this goal. The Construction Industry Institute (CII) (1987) defines constructability as the optimum use of construction knowledge and contractor experience in the conceptual planning, design, procurement and field operation of a project to achieve overall project objectives in the best possible time and
158

accuracy at the most cost effective levels (Construction Industry Institute, 1986). Constructability therefore is a tool for enhancing project performance (McCullouch, 1996). The traditional procurement approach commonly used in the construction industry tends to create a division between contractors and designers, separating design from construction. This division prevents contractors from delivering their comments and feedback to designers and hinders the application of the concept of constructability which involves the integration of construction knowledge and contractors experience into the design process. This ultimately prevents the delivery of projects in the most cost effective manner. It is against this background that this paper investigated the level implementation of the concept of constructability and designers perception of its usefulness in the design process.. 2. THE LINK BETWEEN CONSTRUCTABILITY AND BUILDING COST-A REVIEW OF THE LITERATURE. Constructability also known as buildability has been defined by Nima et al. (1999) as the optimum use of construction knowledge and experience by the owner, engineer, contractor and construction manager in the conceptual planning, detailed engineering, procurement and field operations phases to achieve overall project objectives. The concept denotes the ease with which the raw materials of the construction process (labour, production equipment and tools, and materials and installed equipment) can be brought together by a builder to complete a project in a timely and economic manner (Glavinich, 1995). According to Low (2001), the concept first emerged in the United Kingdom and United State of America in the late 1970s following studies into how efficiency, productivity, cost effectiveness and quality could be achieved in the construction industry. The studies showed that the lack of integration of construction knowledge into the design process hindered the ability to construct and this was cited as one reason for projects exceeding budgets and schedule deadlines (Trigunarsyah, 2004). Constructability links the construction and the design phases and has an important role to play in the success of a project. Many of the decisions made early in the design process affect the construction of the project and so construction expertise need to be incorporated in the process to improve the design. Thus, according to the Construction Industry Institute (1993) and as shown in Figure 1, maximum benefits occur when individuals with construction knowledge and experience become involved in the early stages of a project life cycle. Constructability should be applied at the early stage and considered as an important objective in all the stages of the construction process. This is because of its ability to influence project cost and add better value for money.

Figure.1: Ability to influence final cost over project life (Source: Construction Industry Institute, 1993) Based on their construction knowledge and experience, contractors can play a major role in enhancing constructability (Nima et al, 2001). Constructability is most effective if it is included as
159

an integral part of the project execution plan and project procedures (Construction Industry Institute, 1993). Griffith and Sidwell (1995) state that in any building or engineering project, improvement could be achieved through careful consideration of procurement, design, construction techniques and management approach. The separation of design and construction within the construction process is responsible for the lack of consideration given to the necessary coordination and integration between project phases. According to Griffith and Sidwell (1995), many of the problems of inadequate design and production methods within both traditional and non-traditional construction contracts were caused by unclear or missing project information, inadequacies in the quality of information provided or lack of complete information, and general lack of co-ordination of design with construction Effective utilisation of the concept of constructability to overcome these problems depends on the availability of the right information at the appropriate level of detail (Pulaski & Horman, 2005). This requires that designers and contractors improve the quality of information passed between stages, using the right people and doing so at the right time. 2.1 Constructability Concepts Nima et al. (2001) have formulated 23 constructability concepts applied to the conceptual planning, design and procurement, and field operation phases of the project cycle. The conceptual planning phase has 7 concepts, the design and procurement phase 8 concepts and the field operations phase 8 concepts. These concepts are construction principles that should be applied during the project delivery process to stimulate thinking about constructability and how to make it work (Trigunarsyah, 2004). To assist in applying the constructability concepts, the Constructability Implementation Task Force of the Construction Industry Institute developed application matrices. The matrices are useful tools that link constructability concepts to specific activities within each phase when developing a project execution plan (Construction Industry Institute, 1993). A road map was used to incorporate the matrices as follows as shown in Figure 2.

Figure 2: Constructability Implementation Roadmap (Source: Construction Industry Institute, 1993)

160

2.2 .Factors that enhance constructability According to Griffith and Sidwell (1995), many of the factors that influence the implementation of constructability are related to the type of project. This is confirmed by Arditi et al (2002) in their study of design firms. They found out that project complexity, design practices and philosophy, and project delivery (procurement) systems were the most significant factors that enhanced constructability while project location and design standards were the least significant. 2.3 Factors that impede constructability OConnor and Miller (1994) identified barriers to constructability as significant inhibitors that prevent effective implementation of a constructability programme. According to OConnor & Miller (1994), barriers to implementing constructability still exist and must be identified during the project. The Construction Industry Institute (1993) has classified the barriers into general, owner, designer and contractor barriers detailed as follows: 2.3.1 General barriers Complacency with status quo "This is just another programme" "Right people" are not available Discontinuity of key project team personnel No documentation of lessons learned Failure to search out problems and opportunities 2.3.2 Owner barriers Lack of awareness of benefits, concepts, etc Perception that constructability delays project schedule Reluctance to invest additional money and/or effort in early project stages Lack of genuine commitment Distinctly separate design management and construction management operations Lack of construction experience Lack of team-building or partnering Disregard of constructability in selecting contractors and consultants Contracting difficulties in defining constructability scope Misdirected design objectives and performance measures Lack of financial incentive for designer Gold-plated standard specifications Limitations of lump-sum competitive contracting Unreceptive to contractor innovation 2.3.3 Designer barriers Perception that they have considered it Lack of awareness of benefits, concepts, etc. Lack of construction experience/qualified personnel Setting company goals over project goals Lack of awareness of construction technologies Lack of mutual respect between designers and constructors Perception of increased designer liability Construction input is requested too late to be of value

161

2.3.4 Contractor barriers Reluctance of field personnel to offer preconstruction advice Poor timeliness of input Poor communication skills Lack of involvement in tool and equipment development In their study of design firms, Arditi et al. (2002) reported that faulty, ambiguous, or defective working drawings, incomplete specifications, and adversarial relationships were found to be the three major factors that impede constructability. Budgetary limitations, resistance of the owner to formal constructability programmes, and non-standardisation of design were found to be the least influential constraints that hinder constructability. This finding challenges the common misconception that clients are a barrier to formal constructability programmes because constructability programmes constitute extra project cost. According to Arditi et al (2002), this suggests that there is no tendency on the part of project owners to prevent constructability programmes, probably because of their proven cost savings. 2.4 Benefits of implementing constructability

Although, according to Arditi et al. (2002), a constructability programme introduces a cost that is usually added to the design fee and might harm the competitiveness of the firm, there are some benefits to the design firms in return for their investment in more buildable designs. Thus constructability leads to important direct and indirect benefit, which according to Griffith and Sidwell (1995), are measurable not only in cost and time but also in terms of the physiological and psychological gains for the people involved in the construction process. Construction clients demand a high quality of service and value for money by expecting their projects to be completed on time, within the anticipated budget and as specified, trouble-free and relatively inexpensive to use and maintain. The clients requirement can be achieved through the implementation of constructability. Constructability also enhances the reputation of the designer and contractor, minimises the waste of resources and produces a finished product with better quality and less defects (Griffith and Sidwell, 1995). The implementation of constructability programmess helps to develop better relationships with clients and contractors, being involved in fewer lawsuits, and building a good reputation that can reduce antagonism and disputes between designer and contractor (Gambatese and McManus, 1999, Arditi et al., 2002). 3 RESEARCH METHODOLOGY A questionnaire survey of designers was conducted to investigate their perception of constructability and the extent of its implementation in their designs. Out of the 100 copies of the questionnaire distributed 40 were returned by the respondents. The first part of the questionnaire sought general information on the respondent firms and their practices while the second part asked the respondents to rank the impact of relevant factors on a 5-point Likert scale ranging from 1=Very unimportant/insignificant to 5=Very important/significant. The data were analysed using the percentile method and mean score analysis. The mean score is determined as follows (Akintoye, 2000; Odeyinka, 2003): 5n 5 + 4n 4 + 3n 3 + 2n 2 + 1n 1 Mean Score= (1) (n 1 + n 2 + n 3 + n 4 + n 5 ) where n1 = number of respondents who answered very unimportant/insignificant n2 = number of respondents who answered unimportant/insignificant n3 = number of respondents who answered average n4 = number of respondents who answered important/significant n5 = number of respondents who answered very important/significant
162

4. DATA ANALYSIS AND RESULTS Of the 40 questionnaires returned only 38 were found to be properly answered and suitable for analysis. This represents a response rate of 38% which, according Elhag & Boussabaine (1999) and Idrus & Newman (2002), is good enough for construction research. 4.1
Level of awareness and use of constructability concept by design firms

As shown in Figure 3, most of the firms were aware of the concept of constructability, with 84% indicating that they had used it before in the design process.

No 16%

Yes
No

Yes 84%

Figure 3: The awareness and use of constructability concept by design firms

Also, 76% of the respondents indicated that they required contractors experience in their designs (Figure 4). The reasons given for this included the contractor would know better about

availability of materials and time delays associated with obtaining them and help in the use of appropriate technology which affects design and cost. The reasons why some firms did not require contractors experience included if there are any changes to be made in the design, a variation will be issued to the contractor, therefore there is no need for the contractor to be part of the design team and they have the experience necessary for the type of work they do.

No 24%

Yes No

Yes 76%

Figure 4: The use of contractors experience during design

Table 1 shows that most of the firms (58%) who claimed to be using the concept of constructability indicated that they implemented the concept at the outline proposal stage while only a few (13.2%) implemented it at the tender stage
163

Table 1: Stage at which constructability is implemented Stage of implementation No. of respondent Strategic briefing 13 Outline proposal 22 Detailed proposal 19 Final proposal 13 Production information 13 Tender documentation 12 Tender action 5

% response 34.2 58.0 50.0 34.2 34.2 31.6 13.2

4.2

The procurement systems commonly used and the professionals involved in the design process

The design firms were asked to indicate the professionals they usually involve in their design processes. Their responses in Table 2 indicate that structural engineers (100%) were most commonly involved while specialist subcontractors (17%) were least commonly involved. Table 3 shows that the conventional (traditional) procurement method which is generally considered a barrier to constructability is used by a majority of the respondents (94.7%) while only a few use the non-conventional methods of design and build (2.6%), turnkey (5.3%) and develop and construct (7.9%) which enhance constructability.
Table 2: Professionals commonly involved in the design process
Professionals Quantity surveyors Main Contractors Subcontractors Specialist subcontractors Structural engineers Electrical engineers Mechanical Engineers Land surveyors No. of respondent 36 18 18 17 38 33 33 28 % Response 94.7 47.4 47.4 44.7 100 86.8 86.8 73.7

Table 3: Procurement methods the designers are commonly involved in

Procurement methods Traditional method Design and build Construction management Turnkey Develop and construct Design and manage Management contracting No. of respondent 32 1 7 2 3 14 1 % response 84.2 2.6 18.4 5.3 7.9 36.8 2.6

4.3

Factors considered in implementing constructability during design

The firms that had used the concept before were asked to rank in importance (ranging from 1 = very unimportant to 5 = very important) the factors they considered in pursuing constructability in their designs. Using the mean score formula in Equation 1, the factors are ranked in Table 4, which shows that client satisfaction is the most important and ease of construction the least. This tends to suggest that designers do not consider ease of construction as high priority in their designs.

164

Table 4: Factors considered in implementing constructability

Factor Clients brief Reducing costs Functionality Aesthetics Ease of construction Environmental impact Adding value for money Client satisfaction Ranking/no. of responses 1 2 3 4 5 0 0 0 2 29 0 2 8 11 9 0 0 0 8 23 0 0 1 6 24 0 1 14 9 5 0 4 8 9 10 0 0 8 8 15 0 0 0 0 30 Mean score 4.94 3.90 4.74 4.74 3.62 3.81 4.23 5.00 Rank 2 6 4 3 8 7 5 1

4.4

Benefits of constructability

The respondents perceptions of some of the benefits of implementing constructability in design are shown in Table 5. It is not surprising that the fact that constructability gives better design is ranked 1 as a better design no doubt produces all the other benefits.
Table 5: Benefits of implementing constructability
Benefits of constructability Enhances project quality Reduces project duration Reduces project cost Enhances partnering and trust among project team Increases owner satisfaction Minimizes contract variation orders and disputes Better design More effective construction planning Increased project performance Fewer delays and disruptions Better communication Improved site management Efficient management of problems Earlier client occupation Provision of feedback for future projects Increased job satisfaction Ranking/ No. of responses 1 2 3 4 2 0 0 3 2 0 1 2 2 0 2 0 0 2 1 1 3 6 2 1 2 3 0 1 1 4 1 2 2 1 2 2 2 7 9 11 12 6 4 4 5 7 8 13 7 10 6 7 8 8 10 8 3 14 6 9 9 6 8 11 11 15 13 5 5 16 10 10 8 12 9 20 14 11 13 10 8 11 5 5 12 Mean score 4.06 3.71 3.90 3.55 3.67 3.91 4.42 4.07 3.93 3.93 3.79 4.12 4.00 3.61 3.70 3.93 Rank 4 10 8 14 12 7 1 3 6 6 9 2 5 13 11 6

4.5

Barriers to the implementation of constructability

While constructability, no doubt, improves project delivery, there are barriers preventing its wholesale adoption and use by design firms. In Table 6 the respondents indicated that design
teams lack of adequate construction experience is the most significant barrier and the perceived high cost of the system the least.

165

Table 6: Barriers to the implementation of constructability in design

Barriers to constructability Traditional project delivery methods Contract type Not enough resources Design teams lack of adequate construction experience Reluctance to adopt a new system High cost of system Prolongation of the project period Inconsistent terminologies Lack of open communication between designers and contractors Difficulty in coordinating different disciplines Lack of awareness of benefits Poor timeliness of contractor input Ranking/ No. of responses 1 2 3 4 5 7 2 7 12 7 10 2 7 9 9 4 0 8 11 15 1 1 9 11 15 4 6 4 6 4 4 7 5 3 4 4 6 10 2 2 0 10 15 18 9 4 8 9 9 8 3 6 9 5 10 12 10 10 8 5 8 12 12 7 11 Mean score 3.29 3.14 3.87 4.03 3.49 3.08 3.12 3.18 3.31 3.67 3.27 3.63 Rank 7 10 2 1 5 12 11 9 6 3 8 4

5. CONCLUSION The study has shown that there is a high level of awareness of the concept of constructability among design firms, which believe that it improves designs and leads to other benefits. However, the widespread use of the concept is hindered by many factors, the most significant of which is designers lack of construction knowledge. It is concluded that although most designers indicated that they required contractors experience in their designs, only 48% were often involved with contractors in the design process. To gain more construction knowledge to improve the constructability of their designs, designers need more feedback from the site which only contractors can provide. This calls for a total dismantling of the traditional compartmentalization of design and construction by more widespread use of non-conventional procurement methods which give contractors a greater role in design.
REFERENCES

Akintoye, A. 2000. Analysis of factors influencing project cost estimating practice, Construction Management and Economics, 18(1), p 77-89 Arditi, D., Elhassan, A. & Toklu, Y.C. 2002. Constructability analysis in the design firm, Journal of Construction Engineering & Management, 128(2), p 117-126 Construction Industry Institute 1987. Constructability concept file, Austin, Construction Industry Institute Construction Industry Institute, 1993. Preview of constructability implementation, Publication 34-2, Austin, The University of Texas Elhag, T.M.S. & Boussabaine, A.H. 1999. Evaluation of construction costs and time attributes. Proc. Of the 15th ARCOM Conference, Liverpool John Moores University, 15-17 September, Vol. 2, p 473-480 Gambatese, J. A., and McManus, J. F.1999. Discussion of the constructability review process: a constructors perspective, by Roy Mendelsohn, Journal of Management in Engineering, 15(1) p 9394.
166

Glavinich, T.E. 1995. Improving constructability during design phase, Journal of Architectural Engineering, 1(2), p 73-76 Griffith, A. & Sidwell, A.C. 1995. Constructability in building and engineering projects. London, Macmillan Press Ltd. Idrus, AB. & Newman, J.B. 2002. Construction related factors influencing choice of concrete floor systems. Construction Management and Economics, 20(1), p 13-19 Low, S.P. 2001. Quantifying the relationship between buildability, structural quality and productivity in construction, Structural Survey, 19(2), p106-112 McCullouch, B.G. 1996. A decision tool for incorporating construction knowledge during design. In Langford, D.A. & Retik, A. ed. The organisation and management of construction: shaping theory and practice, London, E&FN Spon, 2. p509-518 Nima, M.A., Abdul-Kadir, M.R., & Jaafar, M.S. 1999. Evaluation of the engineers personnels role in enhancing the project constructability. Facilities, 17(11), p423-430, November Nima, M.A., Abdul-Kadir, M.R., & Jaafar, M.S. 2001. Evaluation of the role of the contractors personnel in enhancing project constructability, Structural Survey, 19(4), p193-200 OConnor, T.J. & Miller, S.J. 1994. Barriers to constructability implementation, Journal of Performance of Constructed Facilities, 8(2), p 110-129 Odeyinka, H.A. 2003. The development and validation of models for assessing risk impacts on construction cash flow forecasts, PhD. Thesis, School of the Built and Natural Environment, Glasgow Caledonian University. Pulaski, M.H. & Horman, M.J. 2005. Organising constructability knowledge for design. Journal of Construction Engineering & Management, 131(8), p911-919 Trigunarsyah, B. 2004. A review of current practice in constructability improvement case studies on construction projects in Indonesia, Construction Management & Economics, 22(6), p 567-580

167

EFFECTIVE AND EFFICIENT PROJECT MANAGEMENT ON GOVERNMENT PROJECTS

Samuel R
Department of Quantity Surveying and Construction Management, University of the Free State, Bloemfontein, South Africa, National Department of Public Works, South Africa Private Bag X20605, Bloemfontein, 9300, rachard.samuel@dpw.gov.za, Tel No: 051-400 8702

ABSTRACT: Purpose of the paper- One of the major challenges facing government today is the delivery of all construction and maintenance projects on time, within budget and in accordance with the desired scope. The purpose of the paper therefore is to critically assess the application of project management on government projects and to make recommendations in order to improve service delivery. Methodology/Scope- In order to get to the root of the problems experienced in the delivery of government infrastructure, it is necessary to conduct research on projects, processes and operating behaviours of subjects. Case studies into the application of project scope, cost and time management on six projects that have failed have therefore been selected to illustrate challenges facing government. NB. The method used was for illustrative purposes as no comparison could be made against the total population since such information was unobtainable. In addition to this the various project failures identified in the study of the six projects were further analysed the all projects executed by the department of public works. This was easily obtainable through the project management business system and a study conducted by a management consulting company, Lesele. Findings- The empirical research results reported in this paper are derived from an analytical study of various project failures and since many of the professionals and contractors are new players in the industry, it is concluded that basic project management principles/skills is lacking. The paper will therefore report on the findings regarding the application of project management on government construction projects and will make recommendations to redress inefficiencies. Research limitations- The research and case study used in this paper is limited to the execution of infrastructure related projects under the control on the National Department of Public Works. It is recommended that future research covers the execution of projects across all three spheres of government. Practical implications- The intended outcome of this paper is to ensure that best practice project management is implemented on all government construction projects. Value- The value proposition made in this paper is that of improved service delivery, contribution to accelerated economic growth, as well as the eradication of poverty and unemployment. Keywords: programme management, project management, improved service delivery, economic growth, job creation.

1.

INTRODUCTION

Among the many challenges facing governments infrastructure service delivery programme, the most critical and hence the basis of the problem statement discussed herein are the following:

168

 Infrastructure backlog constrains economic growth. Under expenditure on infrastructure budgets. Poor application of project management. South Africas economy continues to exceed the expectations of economists and with this growth comes a bullish market and greater demands on the construction industry. Continued growth of any economy requires a well developed infrastructure that is capable of expanding in order to meet ever increasing demand across all sectors of a countrys output. It is therefore crucial for Government and its private sector partners, namely, the built environment professionals and construction companies to address the challenges outlined in this paper. It should also be recognised that Government needs to apply a much broader form of project management. An interesting comment was made at a project management seminar held at the University of the Free State in 2005 where the presenter made a statement in favour of the much broader form of project management, namely, programme management. A construction project should never be called a construction project since the term project is limited to that phase of a much bigger programme (Gareis, 2005: Project Management seminar). Gareis further explained that project managers should investigate the objective of the facility being constructed, e.g. a hotel where the project manager should in addition to completing the project successfully also be concerned about the sales and marketing of the rooms during the first six months of operation of the hotel. 2. ANALYSIS OF THIS PROBLEM

In order to get to the root of the problems experienced in the delivery of government infrastructure, it was necessary to do research on real life projects, processes and operating behaviours of subjects. The discussion that follows evaluates and analyses project failures and operational deficiencies. 2.1 Illustration of selected project failures (Source: van der Walt, 2006) Project Location Project Description Failure Causes Contractor failed to complete Non viability of Polokwane Prison Upgrading of Civil project on time and within Infrastructure, Wet tendered rates. budget. Services & Fencing Poor project time management. Poor project quality management. Baviaanspoort Prison Repairs & waterproofing to roofing. R9 510 980, 10 Project Winchester: Construction of Taxiway. Project completed 15 months Poor project time late. Heavy penalties management. imposed. Project completed 3 months late. Penalties imposed. Cost overrun. Poor project cost management. Poor project scope management. Poor project time management. Time overrun resulting from Poor project time
169

Makhado Air Force Base

Sandton: Leeukop Prison

Repair of medium A

Cape Town: Pollsmoor Prison.

Helderstroom Prison

insufficient resources. Heavy management. kitchen, cells, civil infrastructure and wet penalties imposed. works Site abandoned by contractor. General upgrading of Contractor over committed Poor project cost buildings. and eventually liquidated. management. Poor project time management. Poor project integration management. Upgrading of water Contract documentation not Poor project & sewerage works scope aligned to scope definition. management. Work specified was not in accordance with clients brief and contract could therefore no be completed on time. Client also provided poor scope definition.

2.2 Analysis of project failure. 2.2.1 Poor project cost management. Contractors failed to apply effective project cost management from the outset, that is, from the time the tender price was prepared and while the contract was executed. Project cost management includes the process required to ensure that the project is completed within the approved budget, and includes the following: Resource planning-determining what resources (people, equipment, materials) and what quantities of each should be used to perform project activities. Cost estimating-developing and approximation (estimate) of the costs of the resources needed to complete project activities. Cost budgeting-allocating the overall costs estimate to individual work activities. Cost control-controlling changes to the project budget (Project Management Institute, 2000: 83). According to Clements and Gido (2003: 254-255), Cost planning starts with the proposal for the project. It is during the development of the proposal by the contractor or project team that project costs are estimated. In some cases, the proposal will indicate only the total bottom-line cost for the proposed project. In other cases the customer may request a detailed breakdown of various costs. Cost management is not an event, it is a process that must be performed on a monthly basis. According to Clements and Gido (2003: 270) The key to effective cost control is to analyze cost performance on a regular and timely basis and it is crucial that cost variances and inefficiencies be identified early so that corrective action can be taken before the situation gets worse. Once project costs get out of control, it may be very difficult to complete the project within budget. Further research as illustrated in figure 1, indicates that the latter is not applied effectively since an average of only 60% of projects are completed within budget against the desired level of 95%. The main reason for this can be attributed to poor scope definition by the client as well as poor
170

project conceptualisation and design. This situation results in an extremely high percentage of variation orders which places tremendous strain on project budgets.

Analysis of Project Cost Management in the Department of Public Works 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

D ES IR ED LEV EL OF P ER F O R M A N C E: 9 5 %

Actual Performance

Bloemfontein

Re gions

(Source: Lesele, 2006)

Figure 1

2.2.2 Poor project time management. Poor planning, a lack of a consistently updated project plan and the failure to apply critical path analysis techniques, invariably affect the other project management knowledge areas as is evident from the above project failures. According to Steyn et al (2003: 91) Project scheduling is necessary to determine when work must be done and to communicate the information to determine what resources (manpower, equipment, facilities and funds) should be available at any specific time. Unless scheduling is done properly, one could expect delays. The most common and arguably the most effective way of designing a project plan is by using a Gantt chart which is developed from a precedence (network) diagram clearly indicating the critical path of the project. Gantt charts are the simplest and most common way of presenting project plans (Steyn et al., 2003:93). A project network diagram does not only show dependencies but also indicates the duration or time that it would take the specific person to perform the work. The longest path from the beginning of the project to the end gives the expected project duration. This is called the critical path (Steyn et al., 2003: 97 & 100). Knipe et al (2002: 155), agree with the latter and describes network/ precedence diagrams or programme evaluation review technique (PERT) as a flow chart that shows diagrammatically the relationship between the tasks that are necessary to complete a project and their order. PERT is described by (Burke, 2003: 131) as a graphical presentation of the projects activities showing the planned sequence of work. Notwithstanding the current performance of regions who according to figure 2 below, deliver between 78 85% of their projects on time, the desired level of 95% across the country has not been realised mainly due to poor project time management.

171

Port Elizabeth

Polokwane

Kimberley

Cape Town

Durban

Nelspruit

Pretoria

Analysis of Project Time Management in the Department of Public Works 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
D ES IR ED LEV EL OF P ER F O R M A N C E: 9 5 %

Actual Performance

Kimberley

Bloemfontein

Cape Town

Re gions

(Source: Lesele, 2006)

Polokwane

Figure 2

2.2.3 Poor project quality management. Too often, contractors take on too much work, become over extended, and become constrained due to a lack of resources resulting in poor project quality management. This is exactly what has happened on the Polokwane prison project referred to above. According to Orwig and Brennan (2000: 354), Quality is an important outcome of a project. It is a widely accepted view that, at a minimum, performance measures of a project are based on time, cost and quality. Implicit in this view is the idea that if the project delivered a quality product on time and in budget, then the process of managing the project must be good enough. The quality of construction projects has been on the decline over the past five years. The main reasons for this are: The lack of good contractors vis--vis the demands of a booming construction industry. Increased emergence of new contractors with no or little mentoring and support. Dilution of core skills (artisans) over the past 10 years. Lack of proper supervision.

Figure 3 below illustrates that on average, approximately 50% of projects are completed within the quality standards required by the department and its clients. It is not surprising that clients expect value for money on all projects delivered to them, hence the desired level has been set at 100%. It is all about satisfying the customers needs and according to Goetsch & Davis (1997: 293) Customer focus means basing decisions and actions on the needs of customers. The Project manager has the ultimate responsibility for quality management on the project. Quality management has equal priority with cost and schedule management (Kerzner, 2001: 10551058). To achieve this, two key imperatives will have to be addressed, namely the compliance with Construction Industry Development Board (CIDB), in particular the appointment of contractors relative to their grading, and compliance with the South African Council for Project and Construction Management Professions (SACPCMP) with respect to the appointment of departmental project managers.

172

Port Elizabeth

Nelspruit

Durban

Pretoria

Analysis of Project Quality Management in the Department of Public Works 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
D ES IR ED LEV EL OF P ER F O R M A N C E: 10 0 %

Actual Performance

Cape Town

Bloemfontein

Pretoria

Re gions

(Source: Lesele, 2006)

Figure 3

2.2.4 Poor project scope management. The Makhado air force base and Baviaanspoort prison projects were clearly constrained by poor scope direction given by the client which resulted in poor scope development by the consultant and ultimately in project failure. According to Flemming and Koppleman (1996:31) it always helps to know what makes up the project, the whole project, and particularly the outer limits of the project. Secondly, you need to know the difference between agreed to work and new work requests. The client must have a well documented concept (scope statement) of what he wants, which must be articulated to the professional team in very clear terms and late variations to the scope should be avoided. The latter forms the basis for good project scope management. The scope statement forms the basis for an agreement between the project team and the customer by identifying the project objectives and the major project deliverables. It entails the identification and definition (with appropriate documentation) of the project objectives and goals provided by the project sponsor or the client requiring the end product of the project (Oosthuizen, Kster & De La Rey, 1998:47). Research on the application of project scope management by the department of public works have revealed that current performance is at a level (average across all regions) of 60% compared to the desired performance of 85%. Similarly to the discussion on poor cost management, poor scope management has an adverse effect on the clients budget due to the issuing of variation orders. The result of this research is illustrated in figure 4 below.

173

Port Elizabeth

Kimberley

Polokwane

Nelspruit

Durban

Analysis of Project Scope Management in the Department of Public Works 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

D ES IR ED LEV EL OF P ER F O R M A N C E: 8 5 %

Actual Performance

Kimberley

Bloemfontein

Re gions

(Source: Lesele, 2006) 2.2.5

Polokwane

Figure 4

Project human resources management As stated in the abstract of this paper the department of public works has redefined its relationship with the private sector to be one of partnership as opposed to a competitive one. To this end the department performs a programme management role on all construction projects and outsources design, documentation and execution to the private sector. Research has shown that the department of public works is not in full compliance with the SACPCMP regulations since many officials who are appointed as project managers are not professionally registered and/or are struggling to graduate from being candidate level of project manager. In addition to this, the appointment of the professional team together with their supervisory site staff by the department takes too long. A third shortcoming is that the human resources required by the contractor to execute the work is not adequately managed and that little or no resource planning is done. According to the Project Management Institute (1996: 93) the three important processes are organisational planning, staff acquisition and team development, however many contractors ignore these important aspects and prefer to chase their short-term goals of maximising profit as opposed to the long term goals of industry development. With respect to managing client specific issues it was discovered that Key Account Manager (KAM), who is the person accountable to the client spends most of his day supervising staff and doing administrative work, instead of been involved in strategic planning, project conceptualisation and project evaluation. Figure 5 below illustrates the results of day in the life studies undertaken for key account managers which indicates that these officials spend more time on administration and travelling than on servicing clients

174

Port Elizabeth

Cape Town

Nelspruit

Durban

Pretoria

Day in the Life of KAM How they are spending their day

Average
DILO 12 DILO 11 DILO 10 DILO 9 DILO 8 DILO 7 DILO 6 DILO 5 DILO 4 DILO 3 DILO 2 DILO 1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Servicing clients

Project management

Visit preparation

Administration

Travelling

Lost Time

Figure 5 Another significant challenge as illustrated in figure 6 below is that departmental project managers spend a lot of time on administration duties and travelling which may indicate either that they are based too far away from their projects, or that they are over committed in terms of projects assigned to them.
Day in the Life of Project Managers How they are spending their day
Average
DILO 12 DILO 11 DILO 10 DILO 9 DILO 8 DILO 7 DILO 6 DILO 5 DILO 4 DILO 3 DILO 2 DILO 1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Site Inspection

Technical

Administration

Travelling

Lost time

Figure 6 The overall performance across all regions for areas related to project human resource management is well below the desired level of 85%. The results of the research are illustrated in figure 7 below.

175

Analysis of Project Human Resources Management in the Department of Public Works 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

D ES IR ED LEV EL OF P ER F O R M A N C E: 8 5 %

Actual Performance

Polokwane

Bloemfontein

Kimberley

Re gions

(Source: Lesele, 2006)

Figure 7

3.

CONCLUSIONS AND RECOMMENDATION

3.1 The construction industry is extremely complex which is exacerbated by continued price increases in building material and labour problems. Even the slightest mistake in a tender estimate may cause a project to fail which may in turn have extreme consequences for the contractor. This aspect is taken so seriously by the large construction companies that they employ highly paid estimators and quantity surveyors to prepare their tenders. Smaller contractors however, can not afford the same resources employed by the captains of industry. It should be noted that project failure resulting from a low contract price is not only the fault of the contractor. The client, in this case government should be careful not to make tender awards where the price of the recommended tender is below the professional quantity surveyors pre tender estimate. This pre tender estimate must be accurately prepared so as to serve as a baseline on which to evaluate and adjudicate tenders. It is further recommended that the grading system as prescribed by the Construction Industry Development Board (CIDB) be strictly adhered to. 3.2 It is evident from the failures of the subject projects, that project time management was not a key priority for the contractors concerned. These contractors appear to be ignorant of the methodology of using precedence diagrams and Gantt charts as well as the calculation of the critical path in the project planning process. In addition contractors generally ignore the legal requirement to employ project managers who are registered with the South African Council for Project and Construction Management Professions (SACPCMP). It is recommended that the appointment of a registered project manager (with the SACPCMP) be made a condition of tender, and should the contractor fail to meet this condition, his tender would be automatically disqualified. The CIDB should review it regulations to enforce construction companies to have registered project managers in their employment regardless of the project category. 3.3 With respect to the subject projects that have failed as a result of poor project quality management it should be noted that clients and the general public deserve to get value for money and each project which fails as a result of poor workmanship and materials represents fruitless expenditure
176

Port Elizabeth

Nelspruit

Durban

Cape Town

Pretoria

and ultimately unnecessary costs to the tax payer. It is crucial for government to take a strategic view on quality management and minimum standards based on a zero tolerance policy. This can only be achieved through the collective effort of all role players, programme managers, project managers, professional consultants, contractors and suppliers. According to Vinzant and Vinzant, cited in Price (2003: 285) the two approaches of quality management and strategic management are highly complementary. Quality management should not be practiced in isolation from other initiatives but form an integrated part of an organizations strategy. 3.4 Project failures caused by poor project scope management can be attributed firstly to poor scope definition by government, and secondly to the poor translation of the scope into design and documentation by the professional team. The Department of Public Works and its clients must improve on the quality of scope statements and must ensure that it is complete before issuing same to the professional team. Consultants must play their role as professionals and in accordance with the standards laid down by their councils by translating the scope statement issued by the client into quality design and tender documents. 3.5 It is clear from the aforementioned that the programme manager is the person appointed by government who takes the single point responsibility of a cluster of projects assigned to him. The project manager is the consultants/contractors representative who takes on the single point responsibility for an individual project. During the evaluation of the subject projects, it was discovered that the roles and responsibilities of the programme manager and of the project manager have become confused. This confusion has resulted in a conflict of accountability which ultimately ends in project failure. The roles, responsibilities and accountability of the Professional team vis--vis that of the contractor should therefore be clarified up front and recorded in conditions of contract with the departmental project manager assuming overall accountability for successful project delivery.

.
177

BIBLIOGRAPHY Burke, R. 2003. Project Management: Planning & Control Techniques. 4th ed. Cape Town: Burke Publishing. Clements, J.P. & Gido, J. 2003. Successful Project Management. 2nd ed. Ohio: Thomson Learning.

Flemming, Q.W. & Koppelman, J.M. 1996. Earned Value Project Management. Pennsylvania: Project Management Institute

Gareis, R. 2005. Presentation delivered at Project Management Seminar: University of the Orange Free State. Goetsch, D.L. & Davis, S.B. 1997. Introduction to Total Quality. 2nd ed. New Jersey: Prentice Hall

Kerzner, H. 2001. Project Management: A Systems Approach to Planning, Scheduling and Controlling. 7th ed. New York: John Wiley & Sons Inc. Knipe, A., van der Waldt, G., van Niekerk, D., Burger, D. & Nell, K. 2002. Project Management for Success. Cape Town: Clysons. Lesele Sanders, R . 2006. Telephonic interview with the Programme Manager: Lesele Consulting on 2 October 2006. Pretoria Oosthuizen, P., Kster, M. & De La Rey, P. 1998. Goodbye MBA: A Paradigm Shift Towards Project Management. Johannesburg: International Thomson Publishing Southern Africa (Pty) Ltd Orwig, A. & Brennan, L.L. 2000. An integrated view of project and quality management for projectbased organisations. International Journal of Quality & Reliability Management, 17(4/5), p. 351-363, spring edition. Price, A.D.F. 2003. The strategy process within large construction organisations. Engineering, Construction and Architectural Management, 10(4), p.283-296 Project Management Institute, 1996. A Guide to the Project Management Body of Knowledge. USA: PMI Standards Committee. Project Management Institute, 2000. A Guide to the Project Management Body of Knowledge. USA: PMI Standards Committee

178

Steyn, H., Basson, G., Carruthers, M., du Plessis, Y., Kruger, D., Prozesky-Kuschke, B., van Eck S. & Visser, K. 2003. Project Management: A Multi-Disciplinary Approach. 2nd ed. Pretoria: FPM Publishing van der Walt, S. 2006. Telephonic interview with the Director: Project Management services-Africon International on 4 October 2006. Pretoria

179

DELAY ANALYSIS AND ITS POTENTIAL TO REDUCE SITUATIONS RESULTING IN CLAIMS AND LOSSES
Marais D1, Martin L2
1

Department of the Built Environment, Cape Peninsula University of Technology, PO Box 652, Cape Town 8000, divanmarais@yahoo.com Department of the Built Environment, Cape Peninsula University of Technology, , PO Box 652, Cape Town 8000, martinl@cput.ac.za, Tel No 021 460 3033

ABSTRACT Purpose of this paper Delays within construction projects are common. Delays due to inclement weather conditions are usually planned for. However not sufficient allowance is made for the extent (progress and cost related) of such delays. The research is aimed at improving the understanding and the usage of programming methods dealing with anticipated weather delays. Methodology/Scope By means of a literature review various delay analysis methods and the state of the art of programming methods, incorporating unknown events, have been identified. Subsequently interviews with a small sample of industry role players, based in the Western Cape, were held. These were aimed at determining the preferred method of programming and approaches taken to allow for delays due to predicted inclement weather conditions. Findings Although many theoretical approaches to allow and plan for anticipated delays exist, contractors do not make use of these methods. An improved method for programming construction projects, considering possible delays due to inclement weather, has to be developed. Research limitations A pilot study to determine the existing usage of programming methods was done. The sample taken was based in the Western Cape with an emphasis on the Joint Building Contracts Committees (JBCC) agreement. An extrapolation from this explorative pilot study to the wider South African construction industry, and climatic regions, would have to be underpinned by further research. Practical implications In order to allow contractors to make more accurate assumptions for the input data regarding inclement weather, a standardization of contract documentation has to be considered. This would reduce the number of unsatisfying situations resulting in claims. Improved, simplified methods and rules have to be developed in conjunction with the role players, clients and contractors alike. Value Enabling a better understanding of delays will allow the construction industry to reduce the number of unsatisfactory claims. An approved and modified approach to programming for inclement weather, such as the presented approach, will result in increased planning certainty amongst contractual parties. Keywords: Delay analysis, program planning, claims, inclement weather 1 INTRODUCTION

Delays in construction projects are common occurrences accompanied by increased costs for projects (Alkass et al 1995). Weather is classified as a problem source as adverse weather conditions result in construction time delays and budget overruns (Moselhi & El-Rayes 2002).
180

McDonald (2000) categorized weather as an excusable non-compensable delay. Generally delays falling within this category allow contractors to claim for extensions of time, however not for financial compensation for the cost impact thereof (Kartam 1999). The main construction contracts used within the South African building industry are following the same principal. An attempt to minimize the delaying effects of weather on building sites is the most common means of compensating for not being able to control weather. The main construction contracts used within South Africa require contractors to make allowance for normally expected weather conditions in their contract programme. This is done by means of weather contingencies built into the programme. The question of what are normally expected weather conditions? arises. Currently no structured or formal method to judge weather conditions and its effects on construction programmes exists. Contractors in the Cape Peninsula appear to make time related weather contingencies based on perceived risks. Chan & Au (2006) established that contractors seldom make provisions, in terms of cost, for the effects of inclement weather. The provisions made will rather depend on the contactors estimate of the anticipated risk on the project. Good client-contractor relationships are important to both parties for the success of a project and anticipated future work. Semple et al. (1994) found that making provisions in a construction programme for events such as weather delays reduces disputes. Cost and time claims, especially those which are difficult to quantify, regularly result in disputes between the contractual parties. Weather contingencies are very seldom adequate, in terms of progress and cost, due to the use of heterogeneous methods used in the industry for weather contingency calculations. This results in adverse client-contractor relationships. This research endeavour is aimed at improving the understanding and the usage of programming methods in dealing with anticipated weather delays, both progress and cost related. An improved method, which could be further developed for an uniform industry wide usage, can then be developed. 2 PROGRAMMING, SCHEDULING, DELAY ANALYSIS & WEATHER ALLOWANCES

2.1 Programming and scheduling Construction programmes are of utmost importance for a successful timely delivery of buildings or infrastructure projects. Accompanying these programmes the required resources have to be identified and managed accordingly. Various methods for scheduling projects are used. Yamin & Harmelink (2001) identified four planning techniques currently in use in the world wide construction industry, namely: Bar charts, Activity on arrow, Activity on node, and Line of balance (linear scheduling). The Activity on arrow and Activity on node techniques are also known as network scheduling techniques. The bar chart was developed in the 1900s by Mr Henry L. Gantt and is the simplest of all scheduling techniques (Eggleston 1997). The bar chart consists of a horizontal (time) and a vertical (activity) axis. Each activity within a project is represented by a horizontal bar with its duration represented by the length of the bar. The logical sequence of the work, as decided by the planner, is indicated by lines linking the activity bars. The main advantage of the bar chart is its simple visualisation of a project and its activities. Yet in order to derive such visualisation the sole use of the bar chart technique tends to be unsuitable. Here the bar chart can be combined with network scheduling. This technique allows a better planning of interconnected and inter-depending activities. Stevens (1990) defined network scheduling as:
181

... a method of scheduling activities by joining them in a series of interconnected links which reflect relationships of activities as assigned by the planner A critical path can be established by both of the above mentioned network scheduling techniques. The critical path determines the shortest time in which the construction work can be completed (Carnell 2000). Activities on the critical path have no float whereas activities not on the critical path have float. Float is the amount of time by which an activity can be delayed without delaying the anticipated end date of the project (Cormican 1985). The biggest shortfall of the bar chart is thus overcome by creating a bar chart through network scheduling, producing a visually strong programme with a critical path and floats determined by the interconnected links/relationships between activities. 2.2 Delay analysis techniques Delay analysis is merely applying the planning techniques used to plan the project all over again. There are various delay analysis techniques used. These include: the Global Impact Method, the Asplanned Method, the As-planned vs. as-built Schedule Analysis, the Modified as-built Method, the Impact as-planned Method, and the Collapsed as-built Method. These methods adopt a variety of different approaches to analyze the effect a delay has on the contract completion date. The most inaccurate method is the Global impact method. Here the sum of all the delay durations is regarded as the total project delay, irrespective if floats were used or not. The other techniques highlight many interesting, important and useful facts about a project. The critical path of a project continuously changes as the project proceeds. As the Critical path has no floats within the activities, a delay to an activity on the critical path causes a project delay. Some techniques do however ignore the critical path and/or the changing nature thereof. With the Asplanned method and the impact as-planned method delays are incorporated into the base programme in the form of events with durations (Gothand 2003) which is particularly suitable for weather delays and its consequential delays. The as-planned vs. as-built technique makes use of contract documents at project completion to identify and analyze delays on the project. The modified as-built method analyzes delays in pre-determined windows (time periods) with each delay being allocated to a responsible party (contractor, owner etc.) making it a useful tool for claim adjudication. 2.3 Weather allowances Although there are currently various techniques by which the delaying effects of weather can be allowed for in a contract programme, anecdotal evidence suggests that these techniques deliver unsatisfactory results. According to McDonald (2000) the location of the project, the type of work, and the time of the year in which the work is to be executed plays an important role in quantifying the allowance to be made for weather in contract programmes. The latter is certainly the case for the Cape Peninsula with its varying weather conditions, with heavy rains in winter and dry windy summers. Harris (1978) cites Moder & Phillips (1970) who suggest two methods for including weather allowances in a contract programme. The first is to add one weather activity at the end of the project programme. The second is to predict which activities will be affected by weather and to increase their durations. These suggested methods however purely rely on the planners attitude towards and understanding of weather delays. Another method suggested by McDonald (2000) is to create a weather sensitive calendar which is incorporated into a scheduling software programme and linked to all weather sensitive activities.
182

This method however ignores the weather sensitivity of each activity and the varying weather across a country, making it difficult to implement uniformly on a bigger scale. 3 CONTRACT LAW AND INCLEMENT WEATHER CLAIMS

The four main construction contracts, as also recommended by the Construction Industry Development Board (CIDB 2004), used in the South African construction industry are the JBCC Principal building agreement, International Federation of Consulting Engineers (FIDIC), New Engineering Contract (NEC) and General Conditions of Contract for Works of Civil Engineering Construction (GCC). While the JBCC agreement makes no provision for the contractor having to prepare a contract programme, the GCC, FIDIC and NEC clearly state in clause 12.2, 8.3 and 31.1 respectively that the contractor is obligated to provide a realistic contract programme in line with the planning and scheduling techniques discussed earlier. The FIDIC document further requires the contractor to inform the engineer of future events, such as weather, which could affect the works. The NEC gives the engineer the authority to reject a programme should he/she feel it is unrealistic. With regards to claiming for weather delays, the JBCC allows for an extension of time for a delay caused by inclement weather but does not allow for a financial compensation, such as Preliminaries & General (P&G) claims. The GCC makes provision for a reasonable time extension for delays due to abnormal climatic conditions plus financial compensation for time-related general items (P&G). FIDIC allows for an extension of time but no financial compensation for exceptional adverse climatic conditions. The NEC makes provision for an extension of time for certain compensation events. Here inclement weather occurring less than once every 10 years qualifies for being such a compensation event. It is evident that the four main contracts require the contractor to make reasonable allowance for weather delays in contract programmes, as extensions of time are usually only granted for abnormal weather conditions. Financial compensation for weather related delays is only granted when using the GCC form of contract. 4 RESEARCH METHODOLOGY

A desktop research and literature review were conducted. The aim was to identify the state of the art in programming and scheduling techniques, delay analysis techniques and methods of incorporating unknown events in contract programmes as also discussed above. This formed the base for a later investigation of current practices within the industry by means of a pilot study like set-up. The small pilot study was conducted by means of interviews, combined with site visits, with a small sample of industry role players representing the bigger contractors within the Cape Peninsula. For the pilot study three of the major contractors were approached. An emphasis was placed on the building sector and the JBCC agreement as opposed to the engineering, civil sector of the industry. The interviews aimed to determine the preferred method of programming and delay analysis in the industry. Further the approaches taken for the prediction of inclement weather conditions and of their effects on differing building sites were explored. The interviews were semi-structured in nature. A broad outline of the interview and questions were e-mailed or faxed to the interviewees in advance. The interviews were recorded, transcribed, and thereafter analyzed and cross-checked with each other. Based on the review and the fieldwork some suggestions for an improved method for drawing up transparent contract programmes, taking inclement weather delays into account, are made.
183

SUMMARY OF FIELDWORK AND FINDINGS

5.1 Effects of weather on building construction sites Commonly mentioned by the interviewees, the critical path of a project would usually run through the earthworks, structure, wet trades and internal finishes. The magnitude of the delaying effect of weather largely depends on the intensity of the weather occurrence, the characteristics of the site (surrounding buildings, drainage characteristics etc.), and the type of construction operation. For example, a certain amount of rainfall will result in a greater delay during earthworks (with consequential delays) than with internal finishes. Likewise, wind of 40km/h will have a greater delaying effect on crane dependent operations than on operations not dependent on crane time. Weather conditions also affect the productivity of equipment and labour. It determines which building activities can take place and usually also impacts on safety measures to be taken at the time. The consent of the interviewees was that each site must be viewed as an individual entity based on the unique characteristics of the structure to be erected, its location, its surroundings and the expected weather conditions in that area. This is in accordance with findings of McDonald (2000). The loss in equipment and labour productivity and more stringent safety requirements have to be taken into account. 5.2 Contract review The JBCC principal building agreement is used on the majority of the building projects tendered on in Cape Peninsula. The results of the interviews reflect the findings from the literature review with regards to weather related delays in terms of the JBCC (i.e. extension of time but no financial compensation). In most cases reported on, the wording of the standard weather clause of the JBCC agreement (Clause 29.1.1) is changed from inclement weather to exceptional inclement weather forcing the contractor to make some allowance for normally anticipated weather related delays. With this change in wording the professional quantity surveyors usually state, as part of the Bill of Quantities, the allowance a contractor must make in his programme in terms of weather delay days. This retains the competitive nature of the tendering process with predetermined risks to be considered. In practice this allowance is however not always found to be accurate and the contractor mostly has the option of qualifying his tender on the original contract wording or any alternative wording. Yet, the freedom to change this contract clause wording, and the qualifying of tenders were identified as contributors to the inaccuracy of weather contingencies in contract programmes with its potential for disputes. 5.3 Programming and scheduling Many contractors make use of the Site plan module of the CCS (Construction Computer Software) Candy and MS Project software programmes which are based on the bar chart and network analysis techniques. During the pilot study it emerged that the most important factor planners focus on during the planning of a project, is to ensure that the logic sequences within the project is correct and sound; and secondly that the durations of the activities are as accurate and realistic as possible. According to planners, the most risk lies in the logic of the programme rather than in inaccurate activity durations. Many assumptions are made during tender planning. This is due to limited information provided creating some degree of uncertainty in activity durations. Evidence of the problem of uncertainty in activity durations were also found in the literature (e.g. Hendrickson 2003). Based mostly on their experience, contract planners have developed numerous ways in overcoming this uncertainty. The two main factors thus contributing to the accuracy of any programme are therefore the programming knowledge of planners and the extent of the information provided at tender stage.
184

5.4 Delay analysis According to the interviewed industry professionals (senior planners), an accurate and realistic contract programme in itself is the best delay analysis tool. The focus tends to be on the critical path activities during such delay analysis. It is generally assumed that any delay to a critical activity results in a delay to the contract completion equalling in duration to the initial delay experienced. This view expressed by the interviewees ignores the possibility of a delay changing a non-critical activity into a critical activity once all float has been consumed. It also might indicate the level of understanding of construction professionals of the process of the delay analysis per se. Focusing on delays to critical activities is the preferred approach by the interviewees, as opposed to extending the duration of all affected activities. It must however be noted that the latter is a time consuming and expensive process. 5.5 Incorporating unknown events (weather) into contract programmes Contractors generally act in accordance with the tender documentation with regards to weather contingencies. However varying points of view and interpretations on this matter exist amongst contractors, clients and quantity surveyors. The provision of contingencies for weather depends on the state of the industry (availability of work), the weather allowance stated in the Bill of Quantities and/or the timing and quantity of weather delays experienced on previous contracts. Even though guides are given in contract documents, contractors often qualify their tenders on their own weather contingency. Often no contingency at all are qualified in which case all delays over and above the stipulated allowance warrants an extension of time. This is also reflected in findings from Chan & Au (2007) derived from a survey amongst Hong Kong contractors. A similar approach for claims due to consequential weather delays is adopted. However, a fair assessment of this kind of delays is crucial in order to settle such claims; an undertaking with its inbred difficulties. Historical records are available from which valuable information can be obtained for the calculation of the timing and quantity of any weather contingencies. This method is however uneconomical for contractors as it requires technical and time consuming calculations when accommodating these weather events in the contract programmes. Contractors currently use four methods of allowing for weather delays in contract programmes: Adding a weather activity at the end of the programme, as also suggested by Moder & Philips (1970); Adding non working days into the calendar of the software programme, similar to McDonalds (2000) approach; Lengthen the duration of critical activities; and Crash and Re-analyze critical activities after the contract has been awarded to shorten the actual contract duration. Even with all these methods of creating weather contingencies in programmes, the ultimate decision on the contract duration lies with senior management using a base programme, which is indicative at best. 6 DEVELOPMENT OF AN IMPROVED METHOD

Based on the desktop research and the findings from the fieldwork a first step towards an improved method of dealing with weather delays in a more transparent manner is taken. The improved method consists of two elements. The first being the accurate calculation of input data (timing and quantity of anticipated weather related delays) and the other being the method whereby the input data is transparently incorporated into the contract programme. In order to achieve a high acceptance within industry an improved method should be based on the preferred software programme (CCS linked bar chart), should be visually clear, easy to understand and interpret, and show logical links between activities.
185

Guidelines with regards to input data should be developed. These should be specific, clear and unambiguous. It should guide the contractor in a precise manner in determining how wind, rain and safety as a result of weather could delay each activity of a project. Due to the technical nature of the subject, expertise and time involved in converting historical site and weather data into such input data, and also the need for uniformity required for each contract, such guidelines for calculating the input data should be developed by the JBCC. This body represents the important industry role players and such guideline should be made part of the JBCC series, thus getting the commitment of contractual parties to use such guidelines. The overall guidelines, affecting not only programming but also contract law, will have to be underpinned by further comprehensive research. An improved method should treat each activity on its own merit and should take the following activities and characteristic of the site into consideration: Timing of the activity (time of the year) Geographic and physical location of the site Position of the site relative to the surrounding buildings and areas Soil characteristic of the site and the accompanied drainage characteristics of the site Stage of construction Changes in the productivity of labour and equipment as a result of weather Intensity of the weather anticipated Effect of weather events experienced simultaneously (wind and rain at the same time), and the State of the industry. An improved method of incorporating the calculated input data into the contract programme could be based on the principals of the as-planned schedule analysis technique whereby delays are represented by activities with durations. Each activity in the work breakdown structure of the project should be represented by a minimum of one bar chart bar and a maximum of four bar chart bars. The minimum of one bar is the estimated duration of the activity itself. The other three bars would be successors of the duration bar with finish to start relationships and would include any of the following (see also Figure 1): Wind delay bar represents the expected extent to which wind will delay the activity Rain delay bar ditto but with regards to rain Safety delay bar ditto but with regards to wind and rain induced safety delays

Figure 1: Visual image of concept for improved method

Only the weather delays expected to affect the specific activity should be considered in such guidelines. The delay bars mentioned above should include re-work delays and consequential delays. Should the updated contract programme show a contract duration longer than that stipulated in the tender documents, resources on the critical path should be adjusted to shorten their durations. Unused weather contingencies will create weather float which is for exclusive use for weather
186

delays. Here both the client and the contractor could agree on something else if such float becomes available. For the improved method to be successful, the client should not have the power to change the wording of the weather clause(s) of the chosen contract form. The contractor may not qualify his tender with his own weather conditions. The wording of the weather related contract clauses should thus be revised and drafted in line with the input data guidelines and the improved method, reducing weather related claims. However it must be said that this could impede on the contractual freedom enjoyed by contract parties. 7 CONCLUSION

Construction contracts make provision for contractors to claim for an extension of time for abnormal weather conditions. Yet no financial compensation is granted for cost due to such delays. The financial risk thus rests with the contractor. Most standard contract documents require contractors to produce a programme of the works. The programme is an important tool for contractors to monitor the progress and plan for known and unknown events thereby reducing his overall risk. In order to make sufficient allowance in contract programmes for weather related delays, accurate input data is required. The method of incorporating this input data into the programme is also crucial for a risk conscious approach to weather delays and the control thereof. Many techniques exist in which the input data is calculated. Yet all these often produce unsatisfactory results. To add to the problem, clients can change the standard wording of contract clauses and contractors are at liberty to manipulate the programme and qualify tenders. Giving guidelines on input data to contractors, as part of the tender documents, would ensure uniformity in tender programmes. Due to the complicated nature of weather events, the accuracy desired from programmes resulting in better management of weather are difficult to achieve. The use of historic data could be a good approach to schedule for unknown events. This needs to be combined with a consideration of the unique characteristics of a particular contract, which in return requires a highly technical and time consuming analysis of projects. The preferred method for planning building work in the Cape Peninsula is the bar chart created from a network analysis. A characteristic of this programming method is the determination of the critical path of the project. It is important to note that the critical path will continuously changed during project execution and all activities must therefore be treated as critical when making provision for weather delays in contract programmes. Incorporating the calculated input data into contract programmes is similar to applying delay analysis methods at tender stage. Although many techniques exist, the best results are obtained from techniques based on the linked bar chart where delays are represented by bars (activities) with durations. A guideline for dealing with the allowance for weather delays should be developed. Such improved method should be promoted throughout the industry in order to become an industry norm. An improved method should consider all activities of a project. A clear allocation of expected and allowed delays should be made. The allocation of these allowances, by means of additional activity related delay bars, will make programmes more transparent. An improved method would thus reduce risks on projects, improve project monitoring and control, reduce conflict and disputes due to claims regarding weather delays on building construction projects, and promote planning certainty amongst all contractual parties.

187

REFERENCES

Alkass, S., Mazerolle., Tribaldos, E., and Harris, F. 1995. Computer aided construction delay analysis and claims preperations. Journal of Construction Management and Economics, 13(4), 335-352. Carnell, N. J. 2000. Causation and delay in construction disputes. Oxford: Blackwell science Ltd. Chan,E.H.W., and Au, M.C.Y. 2006. Building contractors behavioural pattern in pricing weather risk. International Journal of Project Management, 25(6), 615-626, January. CIDB, 2004. Best Practice Guide #C2 Choosing an appropriate form of contract for engineering and construction works. Pretoria, CIDB, March. Cormican, D. 1985. Construction Management: Planning & Finance. New York: Longman Inc. Eggleston, B. 1997. Liquidated damages & extensions of time in construction contracts. Tokyo: Blackwell Science Ltd. Gothand, K.D. 2003. Schedule delay analysis: modified windows approach. Cost Engineering, 45(9) 18-23, September. Harris, R.B. 1978. Precedence & arrow networking techniques for construction. Canada: John Wiley & sons Inc. Hendrickson. C. 2003. Project management for construction. Carnegie Mellon University. http://www.ce.cmu.edu/pmbook/09_Construction_Planning.html [19 Nov 2007]. Kartam, S. 1999. Generic methodology for analyzing delay claims. Journal of Construction Engineering and Management, 125 (6), 409-419, November/December. McDonald, F.D. 2000. Weather delays and impacts. Cost Engineering, 42(5), 34-39, May. Moder, J.J. and Phillips, C.R. 1970. Project management with CPM and PERT. 2nd ed. New York: Van Nostrand Reinhold Co. Moselhi, O. & El-Rayes, K. 2002. Analysing weather-related construction claims. Cost Engineering, 44(8), 12-19, August. Semple, C., Harman, T.T. & Jergeas, G. 1994. Construction claims and disputes: Causes and cost/time overruns. Journal of Construction Engineering and Management, 120(4), 785-795, December. Stevens, J.D. 1990. Techniques for construction network schedules. USA: McGraw-Hill Inc. Yamin, R.A. & Harmelink, D.J. 2001. Comparison of linear scheduling model (LSM) and critical path method (CPM). Journal of Construction Engineering and Management, 127(5), 374-381, September/October.

188

THE VIABILITY OF CORRIDOR DEVELOPMENT BETWEEN BLOEMFONTEIN AND WELKOM

Campbell MM1, Meades EE2
1

Department of Urban and Regional Planning, University of the Free State, campbemm.sci@ufs.ac.za, Tel No. 0514012486 (Study-leader) Department of Urban and Regional Planning, University of the Free State, meadese@fshealth.gov.za, Tel No. 0514013575 (Researcher)

ABSTRACT Purpose of this paper - From a South African point of view, and more generally an African point of view corridor development is current and very important for future socio-economic growth as seen in the fact that South African Developing Community (SADC) is interested enough in the possible positive outcomes of corridor development. The objectives of this study included the following a literature study determining international/local trends regarding development corridors and regional planning in order to determine its viability (if any) as a development corridor and an analysis and assessment of the regions existing development profile (the status quo), including trends and development patterns; Methodology/Scope In order to determine the economic interaction the industrial areas of the region were investigated more closely. Enterprises that could stimulate export were selected. Findings - A entire region must take part in the process and that for a development axis the two development centres must be linked by means of a communication axis, there must be mutual dependency between the centres, the interaction must have the potential for further development and the axis must grow both economically and physically. Research limitations - The fact that the study area extends over three municipalities and two districts considerably hampered the collection of data. Practical implications As nodal points are important to development of a corridor and provides economic activities, employment opportunities that stimulates growth and spatial interaction within the corridor, one can now make recommendation on what is possibly needed and what can be looked into from a economic, social and environmental point of view as to realize the sustainability of such a development. Value - During interviews with individuals concerned with the possibility of a development corridor of the R30 and especially with the economic possibilities of revival of Welkom, an action plan took shape. (Regional road) Keywords: regional development, development corridor, development nodes 1 INTRODUCTION The objective of a regional planning intervention should be to integrate economic, spatial, social, institutional, environmental, cultural and fiscal strategies in a participatory manner. This supports the optimal allocation of scarce resources, such as public investment, in a region between sectors and geographical areas, as well as across the population, in a manner that would ensure appropriate sustainable development, growth, equity and empowerment of a poor and marginalised area. From a
189

South African point of view, and more generally an African point of view corridor development is current and very important for future socio-economic growth as seen in the fact that SADC is interested enough in the possible positive outcomes of corridor development. The SADC Secretariat intends to undertake a study to develop the Corridor/SDI program as a development strategy to accelerate regional economic integration and development. The success of this development is dependent on the cooperation and political commitment of Member States on the Corridor/SDI Program (SADC News. Online 05/06/2007) 2 DELIMITATION OF STUDY The zone along the R30 Provincial Road in the Free State Province, which links Bloemfontein and Welkom, is regarded as the study area. The relationship between Bloemfontein, centrally situated in the Free State and capital of the province, and Welkom, a mining town situated in the northwestern part of the province, is investigated in this study. The study area extends over about 150 km, and also includes the two rural towns of Brandfort and Theunissen situated along this route. This area is situated within two District Municipalities (Lejweleputswa and Motheo) and covers three Local Authorities (Mangaung, Masilonyana and Matjhabeng)(Please refer to figure 1).

Figure 1: Study area with regard to the District and Local Municipalities (Source: Own diagram adjusted from Demarcation Board 2002: Online) 3. HYPOTHESIS AND METHODOLOGY The following hypothesis was formulated: The viablilty of the area along the R30 road between Bloemfontein and Welkom as a potential development corridor. The methodology comprised of qualitative as well as quantitative research methods. The qualitative method applied for information collection is the nominal group technique. A workshop was held at Theunissen where the following role players made contributions: The Municipalities of Masilonyana and Mangaung; Provincial Government Departments and Non Governmental Organisations such as National African Chambers of Commerce (NAFCOC), as well as professionals and representatives from political parties. As supported by Khanya (2000:30), this meeting endeavoured to collect information on the role players livelihood outcomes and aspirations; the vulnerability of rural people; existing and future institutional structures and processes; and livelihood strategies for sustainable rural livelihoods. During the quantitative data collection stage economic interaction between Bloemfontein and Welkom was determined. In order to determine this, the industrial areas of the region were investigated more closely. This investigation comprised fieldwork, during which researchers visited the industrial areas of Bloemfontein, Botshabelo, Brandfort, Theunissen and
190

Welkom and listed all the industries. Enterprises that could stimulate export were selected from these lists. Only enterprises that manufactured export goods, as established by the researchers during the preliminary fieldwork, were selected for further research. In Bloemfontein 119, Bochabelo 67, Welkom 71, Brandfort 6 and in Theunissen 6 enterprises were found. As a next phase a questionnaire was submitted and completed by the following number of respondents: Bloemfontein 73, Botshabelo 24, Brandfort 5, Theunissen 4 and Welkom 31. This was done based on the assumption that these industries would be able to expand the basic economy of the region, since this is preceded by an interaction between economies, which ultimately leading to economic growth. All the selected enterprises were approached by means of personal or telephonic interviews to complete a questionnaire. This information was processed in order to determine the economic interaction between the areas. 4. THEORETICAL ASPECTS OF CORRIDORS AND AXIS Since terminology can be interpreted differently, for the purpose of this paper the terms development corridor, transport corridor and transport axis have the following meanings: 4.1 Development Corridor A Development Corridor may be seen as a concept to elevate an area to a certain level of development. The area must have the potential to develop, on the condition that the entire area must take part in the process (Infrastructure Development Corridor, 2004). As development takes place within a corridor it implies that we are referring to a specific spatial area in this regard. The delimitation of such an area depends on the type of development planned. However, certain conditions apply, since the development of a corridor is aimed firstly at developing the region from the inside, and then making contact and developing further extensions with adjoining regions from there. A Development Corridor is therefore a multi-dimensional strategy that further strengthens and supports the chosen areas internal development networks (Infrastructure Development Corridor, 2004, Millenium Link, 2004). According to Friedmann (1966), a Development Corridor consists of a narrow zone along important connecting routes between different cores. Economic activities within such regions are less concentrated, but have the capacity to expand. The main points of such a corridor must be developed to such an extent that they can propel the development, but must not be situated too far apart (Please refer to Figure 2).

Figure 2: Schematic representation of a Development Corridor

191

(Source: Infrastructure Development Corridor, 2004). 4.2 Development Axis According to Geyer (1988:120), a Development Axis must meet the following four requirements: two communication centres must be linked by means of a communication axis; the centres must be mutually dependent; the interaction must offer the potential for further development and the axis must grow economically and physically. A Development Axis is therefore established if the interaction between two centres along a communication axis offers the potential for further economic development. 4.3 Transport Corridor According to Smith (Zucula, 2004), a Transport Corridor is defined as a multinodal corridor that connects two points of economic activity with one another. It must be as reliable and cost-effective as possible. Hesse and Rodrigue (2006) sees Transport Corridors as a link between a location offering accessibility to a large system of circulation of freight, passengers and/or information and the interior. As land corridors (road and rail) emerge between major hub centres, they reflect the territorial structure of a region. For the purpose of this study, the Transport Corridor indicates an area where the transportation of goods serves as the economic driving force of an area (Sten & Barnard, 1991:134). This interaction between two points leads to further economic development and growth. 5 THE AXIS OR CORRIDOR IN SOUTH AFRICAN PLANNING

The National Physical Development Plan (RSA, 1975:17) of 1975 refers to various existing and future development axes. The idea was to link existing metropolitan areas with identified or future growth poles by means of development axes. Geyer (1986:163) found that some of these axes were not supported by secondary development centres or were stretching over too long distances to make development realistically viable. The greater the distances between centres, the stronger these secondary centres must be as a propelling force. In some cases these so-called axes were not axes at all but rather a finger development with no equilibrant pole at the other end. The development of a good road network which provides better interaction with the hinterland in many cases led to the decline of economic activities in small towns as the threshold time to bigger centres was changed. An understanding of economic forces is vital to any development planning as people and businesses will only locate in areas where it is economical viable. 6. CASE STUDIES Several case studies were examined to get the feel of corridor development on different continents as well as different economic environments e.g. developing and developed countries. 6.1 Europe Corridor development is seen throughout Europe on a much bigger scale and is referred to as megacorridors. Studies are done on different European megacorridors by a study group namely the research CORRIDESIGN (De Vries & Priemus 2003:225-233) focusing specifically on spatial governance.

192

Figure 3: Seven most important mecacorridors in North West Europe (Source: Priemus &Zonneveld 2003 :171). 1.Randstad-Flemish Diamond, 2.Randstad-Rhein-Ruhr, 3.Rhein-Ruhr-Flemish Diamond, 4.Flemish Diamond Lille, 5.Lille-Paris, 6.Lille-London, 7.London-West Midlands The Randstad-Flemish Diamond Corridor links Belgium and the Netherlands and thus leads to cross-border rail infrastructure that interconnects the metropolitan agglomeration of Randstad and the Flemish Diamond of Belgium which leads to multi-level governance. (Romein,Trip & de Vries 2003:205-213). These corridors operate on transnational and bilateral levels, national level as well as regional and local levels. 6.2 Englands Midlands The study of this corridor is also a CORRIDESIGN project that focused on the linkage between Englandss West Midlands and London. Concepts of Myrdal associated with corridor development are looked into in an article published in the Journal of Transport Geography (Chapman et al.:179191) namely spread, backwash and armature while studying this particular corridor development. 6.3 North America and Canada Corridors based on different reasons for existence can be studied in the United States of America and Canada. The Route 58 Corridor is 680 miles long and was started in 1989 to enhance the economic development potential across the largely rural state of Virginia in the USA. In Canada the Northwest Corridor is one of Canadas leading economic regions. It spans four provinces and consists of a well connected network of highways, railways, airports and a marine port. It provides important connections to producer as well as consumer markets throughout the world. (Northwest Corridor Development Corporation online 6/02/2007). 6.4 Asia In an attempt to revitalize the economy of the Northeastern region of China, the government announced in 2005 the construction the Harbin,- Daqing -Qiqihar Industrial Corridor linking these cities. Each of these cities having its own strength, be it location, transport, manpower or specific industries. In the 300 km stretch, two smaller cities are incorporated giving way to a robust industrial route with strong technical talents and rich land resources. Rejuvenating an old industrial base is a formidable task that requires upgrading existing industries, transforming from a planned to a market economy as well as adjusting the industrial structure. It cannot be accomplished without
193

exploring new areas of growth (Li Zhanshu as quoted by in China Today December 2006:74). The Chinese government planned to focus on the private economy and industrial development. The project is based on five principles: 1. Overall planning and phase-by-phase construction 2. Market rules govern spending of funds allocated for infrastructure construction 3. Interested enterprises wanting to operate any type of business are welcome as long as it fits into the governments overall plans for the corridor. 4. The corridor acts as a perfect location for enterprises currently based in the city wishing to relocate to the outskirts. 5. The corridor must as a whole forge a reputation that would attract investment and encourage business. 6.5 Africa 6.5.1 The Nacala Corridor. This corridor is based on the railway line connecting Zambia and Malawi to the port of Nacala in Mozambique. The corridor consists of three components namely the Nacala Port, the Nacala Railway and Malawi Railways (Nacala Development Corridor s.a.: online). The main objectives of this corridor are: The development of an adequate cost effective reliable efficient transport, communications and energy systems so that the corridor may be a competitive investment area; to foster economic growth; to create increased economic activity through the promotion of trade and to ensuring sustainable development of the corridor (Nacala Development Corridor s.a.: online). 6.5.2 Bas-Congo Corridor According to Engineering online (25/08/2005) a feasibility study was being done to determine the possibility to develop the Bas-Congo Corridor. It is likely that a trimodal corridor, making use of road, rail and waterborne transport will be developed as a huge potential in terms of mineral and energy possibilities exists. Political stability will be crucial for successful development. In studying corridor development throughout the world, the existence of certain elements is recognised namely: Transportation systems are in place usually more than one mode of transport; Economic viability exists; Focus is on governance while recognizing the problems of local, regional and national governance as political stability is crucial; Private initiatives for investment exists; urban growth is necessary and the corridors are sustainable. 7 GOVERNMENT INITIATIVES: SPATIAL DEVELOPMENT INITIATIVES (SDIs) AND SOUTH AFRICAN CASE STUDIES The regional SDIs are projects identified on the basis of their inherent unutilised economic potential. Their developmental objective is to create sustainable jobs in these areas by identifying and facilitating new investment. The mechanism by which this is achieved is focused, co-ordinated action at all levels of government and by all relevant line functions within the spatially defined area, in order to remove blockages to investment. The SDIs are part of the GEAR macro-economic strategy, and therefore fit into a broader macro-level strategy of simultaneously expanding the economy, stabilising conditions for sustained growth and opening up economic opportunity and employment prospects for previously disadvantaged sectors of our society (Jourdan, 1998:717). The SDI programme consists of 11 local SDIs . They are the following: Maputo Development Corridor; Lubombo SDI; Richards Bay SDI, including the Durban and Pietermaritzburg nodes; Wild Coast SDI; Fish River SDI; West Coast Investment Initiative; Platinum SDI; Phalaborwa SDI; and Coast 2 Coast Corridor. The SDIs of the South African Government, conceived in 1995 by the Cabinet is an attempt to improve investment in those areas where the greatest potential for growth exists (Jourdan, 1998:717). No mention is made of the Development Axis or Growth Centres as part of the planning methodology but looking into the physical development of these SDIs they all conform to the
194

theory of development from one or between two centres. In one case the Maputo Development Corridor between Gauteng and Maputo is a typical axis development between two big centres but taking economics into consideration, as Maputo is the closest harbour to Gauteng and in the 1970s 40% of the export from Gauteng went through this port (Jourdan, 1998:720). 8 LESSONS FOR THE BLOEMFONTEIN-WELKOM CORRIDOR

Although no specific reference to the maximum distance separating two centres on an axis was found in the theory, it was mentioned that the size or vitality, plus the mutual interdependence of the centres, would play an important role. Bloemfontein as the provincial capital is providing administrative services to Welkom but an interdependence based on economic grounds has to be proven. The two small centres in between, namely Brandfort and Theunissen, is so small and so far apart that their contribution to make a 150-kilometre Development Corridor viable has to be proven. The problem with all these centres is that their economic contribution is not in relation to their population size. They are all relatively poor cities and towns with no industrial export base but are focused either on agriculture, raw materials or service functions. All these centres have to cope with a large unemployment rate and with low skills levels. No leading industry or propulsive firms exist in the study area other than the gold mines, but due to their specialization they do not generate growth for the wider region (Glasson, 1978:174-175). The location of Welkom, about 140 kilometres from Klerksdorp and 250 kilometres from Johannesburg, which are both gold-mining centres, and with the latter also being part of the largest metropolitan area in South Africa, means that these places have more in common with Welkom than Bloemfontein, which is only an administrative centre. Proof of services and goods moving between Bloemfontein and Welkom will have to substantiate the existence and future development of a Development Corridor between them. 9 INVESTIGATION INTO INDUSTRIES The purpose of this investigation was to determine whether an interaction and a flow of goods is taking place between Bloemfontein and Welkom. The industries were classified into two groups, namely export-orientated industries and local service industries such as panel-beaters, building companies and garages. All industries in the export-oriented group were approached for information and requested to respond telephonically to a questionnaire. The assistance and knowledge of local experts were obtained to verify that leading export industries were included in the responding data. In Bloemfontein the response was good enough to be representative, while in Botshabelo and Welkom the response was not so good. However as a 100% survey was done this is the best possible result and 100% of the leading export industries are included. Therefore these results may be used as an indication of the present situation. The reasons for this poor participation especially in Botshabelo and Welkom include the following: the information requested was regarded as confidential; to busy and did not have the time to complete the questionnaires; enterprises had nothing to gain from the research and a large number of the contact persons, especially in Botshabelo, are not fluent in English or Afrikaans. As indicated below, the best participation in this study was obtained from the enterprises in Bloemfontein, Brandfort and Theunissen (Table 1). As mentioned above participation in Welkom and Botshabelo were very poor. This tendency can be ascribed to the factors as mentioned in the limitations.
195

Table 1 Enterprises subjected to questionnaires BLOEMFONTEIN BOTSHABELO Subjected to 119 questionnaire Questionnaires completed (N) Enterprises Questionnaire not completed 73 67

BRANDFORT 6

THEUNISSEN WELKOM 6 71

24

31

46

43

40

In the following table, it will be looked at the marketing of goods in Bloemfontein, the Free State and right across the country, in order to determine whether there is an interaction of goods distribution between Welkom and Bloemfontein. It is evident from the table below that enterprises situated in Bloemfontein are focused on the markets and marketing of goods in Bloemfontein itself, the Free State and right across the country, but not on Welkom. (Please refer to table 2). Another observation that was be made is that most cities and towns only conduct business within their own areas, but that distribution also takes place from the large cities to other areas such as Gauteng.

Table 2 Markets and marketing Marketing BLOEMFONTEIN BOTSHABELO Bloemfontein 17 3 Free State 21 0 Right across the country 19 8

BRANDFORT THEUNISSEN WELKOM 1 2 1 0 0 2 0 3 2

The distance between enterprises and markets fulfils an important function in determining over what distances goods are transported, thereby identifying markets (Please refer to Table 3). Most of the enterprises in the Region make use of a market within a radius of 0 to 25 km for selling and distributing their products and goods. Consequently, enterprises in the Region basically focus on their immediate environment for distribution. Markets situated more than 200 km away are generally used by large cities requiring a larger market. From the above it seems as if no marketing of goods is undertaken from Bloemfontein in Welkom, and vice versa. Table 3 Distances from enterprises to markets Markets 0 - 25 26 - 50 50 - 99 100 - 199 km km km km BLOEMFONTEIN 38 4 6 5 BOTSHABELO 7 8 2 1 BRANDFORT 2 1 1 0 THEUNISSEN 2 0 0 2 WELKOM 8 5 6 0
196

200 km + 19 6 0 0 12

No idea Equal 1 1

(N) 73 24 5 4 31

It is evident from the above-mentioned that the distribution of goods between Bloemfontein and Welkom does not take place sufficiently enough for the R30 to function as a corridor. Most of the enterprises only serve the markets in their immediate vicinity, and it seems that the cities focus more on other, larger cities for distribution. The central location of Bloemfontein can be regarded as the main reason for enterprises establishing themselves there, while the enterprises in Welkom are driven by the mining industry and historical events. Bloemfonteins main advantage for its enterprises is a central location, while Welkoms enterprises indicated their markets, virtually no competition and a stable labour force. Most enterprises in Bloemfontein indicated that they did do not experience any disadvantages regarding the city, whereas Welkoms enterprises regarded the declining markets as their main disadvantage. 10 CONCLUSIONS AND RECOMMENDATIONS It can be concluded that the economic connection between Bloemfontein and Welkom is not adequately developed to function as a Development Corridor or Axis. The area functions more effectively as a Transportation Corridor, with Bloemfontein and Welkom as the main nodes. The location of Brandfort and Theunissen on the Transportation Corridor offers further development opportunities. As a result of the decline in mining activities, the Region is deteriorating rapidly. Job opportunities are becoming increasingly scarce. The area is well provided in terms of infrastructure, but attention needs to be paid to the present infrastructure to ensure its development. The economic growth of areas such as Welkom shows a decline, while Theunissen is experiencing a relative degree of growth due to the towns position as the capital town of Masilonyana. Job creation is one of the most important economic issues that must be addressed. This should receive attention at both local and national level. Both the public and the private sector must address this issue. Economic activities in the Region must also be diversified so that a dependence on one industry does not have a negative effect on the economy. The economic activities in particular must be developed and extended so that they are no longer so strongly mining-focused. Development at regional level in a relatively poor region with limited natural resources is dependent on political support. As such, it is necessary for the government to agree, both at a national and a local level, to the importance and priority of developing this area. References Chapman, P, Pratt, D, Larkam, P & Dickins, I. 2003. Concepts and Definitions of corridors:Evidence from Englands Midlands. Journal of Transportation Geography. (11) 179-191. Demarcation Board. 2002. Sa explorer Free State Municipal Boundaries [online] Available from www.demarcation.org.za Downloaded on 30 September 2008 Hesse, M. & Rodrigue, J.-P. 2006. Global production networks and the role of logistics and transportation. Growth and Change. Vol 37 No 4 December. Pp 499-509. Geyer, H.S. 1988. The terminology, definition and classification of development axis. Geographer, September 1988, Vol. 16 (1/2), pp. 113-129. SA

Glasson, J. 1978. An introduction to Regional Planning: Concepts, Theory. Second edition. London: UCL Press Limited. Engineering News Online. 2005. Feasibility study underway for Bas-Congo Corridor Development.
www.tralac.org/scripts/content.php Retrieved on 19 November 2007.

197

Friedman, J. 1966. Regional development policy: a case study of Venezuela. London: The MIT Press Infrastructure Development Corridor. 2004. http://www.schillerinstitute.org/economy/maps/maps2.html. Retrieved on 17 Oktober 2004 Jourdan, P. 1998. Spatial Development Initiatives (SDIs) the official view. Development Southern Africa, Vol. 15 No. 5 Summer 1998, pp. 717-725). Khanya. 2000.Comments on the Green paper on Development and Planning: Spatial Development Framework in Rural Areas in the context of Integrated Development Planning. 19 January. Bloemfontein: Khanya. Millennium Link, Canal Network. 2004. http://www.falkirk-wheel.com/heel/information/ corridor.htm, Retrieved on 15 Oktober 2004. Nacala Development CorridorAfrica. s.a. The business case for the Nacala Development Corridor. http://www.nacalacorridor.com/ Retrieved on 19 November 2007. Northwest Corridor Development Corporation. 2007. www.nwcorridor.com/North-West%20Territories Retrieved 20 November 2007. Priemus, H. & Zonneveld, J. 2003. Megacorridors in North-west Europe: Issues for transnational spatial governance. Journal of Transportation Geography. (11)225-233. Romein, A., J.J. Trip & J. de Vries (2003): ): The multi-scalar complexity of infrastructure planning: evidence from the Dutch-Flemish eurocorridor. Journal of Transport Geography, 11(3), 205-213. Republic of South Africa, (RSA). 1975. Nasionale Fisiese Ontwikkelingsplan (Translated as: National Physical Development Plan-NPDP. Government Printer: Pretoria. SADC-News. 2007. www.sadc.int/news/news. Retrieved on 05/06/2007 Sten, J.N. & Barnard, W.S. 1991. Ruimtelike ordening: n ekonomies-geografiese perspektief. Pretoria: J.L. van Schaik. Xu Ying Dec 2006. An industrial corridor breathes life back into an old industrial base .China Today. 74-77 Zucula, P.F. 2004. http://www.africansdi.com/members/iii/sdi, - 15 Oktober 2004.

198

A NEED FOR A TRANSFORMATION STRATEGY FOR FACILITIES MANAGEMENT IN THE PUBLIC SECTOR
Tonono E1, Buys F2
1

Mpumalanga Economic Growth Agency, erol.tonono@mega.gov.za, Tel No. 013-9333421 Department of Building and Quantity Surveying, Nelson Mandela Metropolitan University, fanie.buys@nmmu.ac.za, Tel No. 041-5042023

ABSTRACT Purpose of this paper - The paper was written to establish the need for a transformation strategy for facilities management in The Public Sector. This was encouraged by the notion that the National Department of Public Works (NDPW) is the largest custodian of state properties in the southern hemisphere. This amounts to huge financial investment which needs to be managed properly to retain its investment values by observations. The management of these state assets leaves much to be desired, hence a study of this nature was conducted. Methodology/Scope - The research adopted the principles of applied research. Due to the nature of the study, a quantitative research methodology was used. Questionnaires became the suitable research tool to obtain the data about facilities management in The Public Sector. Findings - The facilities managers are fairly knowledgeable about facilities management (FM) but half of them have less than five years experience. Information management systems are not used extensively in the sector. Lack of funding should not be seen as the only cause for the poor condition of state properties; other causes may be due to the lack properly trained FM managers and no senior management appointed to steer the discipline in the sector. Research limitations - Limiting the study to only in the NDPW could not be the determinant for the performance of the sector, although NDPW is the largest custodian of state properties. A larger sample of the sector would have given a better understanding of FM knowledge, understanding and the performance of the sector. Practical implications - This paper was based on the application of the findings hence applied research was adopted. Value - It was alarming to note that the facilities management systems in NDPW are not extensively used while they play a major role in the management of the portfolio. The inferential statistics indicates insignificant proportion of respondents performing FM activities. These short comings indicate the importance of the transformation strategy for facilities management in The Public Sector, particularly the National Public Works as a property leader. Keywords: facilities management, transformation, strategy public sector.

199

1. INTRODUCTION The Public Sector has the largest property portfolio in South Africa. Sigcawu (2000) argues that the National Department of Public Works (NDPW) has the largest property portfolio in its custodianship in this sector in the southern hemisphere. She further argues that it constitutes approximately 243 000 properties at the value of R120 billion and its running costs amount to R4 billion per annum. It is estimated that the deferred maintenance is in the region of R13 billion (Bici, 2006). This is a huge challenge facing the NDPW as well as facilities managers in this sector. Smith (1995) states that maintenance is a cost that management does not understand well. The result is that it becomes an orphan at the budget table. This result in most of the decisionmakers in an organization failing to understand that maintenance is also an investment, an essential expense that ensures the long-term reliability and availability of operating equipment and infrastructure. Buys (2004) concludes that having a sound maintenance management system (policy), is one of the most important criteria in any facilities management department. Such a policy should ensure that sufficient funds are provided for maintenance. Dunn (1990: 19) is of the opinion that if funding for facility maintenance does not become a regular budgeted item, organizations will soon find themselves mired in the same situation despite todays fix-up campaign. Inappropriate maintenance budget methodology and unstructured facilities management (FM) in the public sector have resulted in inadequate allocation of funds and a substantial decline in the condition of buildings over a number of years. Hence, this sector now has a huge cost of deferred maintenance. It could be argued that a lack of understanding and the misinterpretation of FM placed it in the basement for too long. The result is that its growth is forcing its place into the boardroom from a hidden function entrusted to the sleepy, slow, and steady management to one performed by increasingly bright-eyed and dynamic facilities managers (Becker, 1990). Buys (2004) concurs by stating that it is vital that top management should be made more aware of the importance of maintenance and the consequences of neglecting maintenance/facilities management. The paper reports on attitudes and perceptions regarding FM in the public sector to establish whether there is a need for a transformation strategy for facilities management in this sector. 2. FACILITIES MANAGEMENT Best, Langston and De Valence (2003) define facilities management as the practice of integrating the management of people and the business process of an organization with the physical infrastructure to enhance corporate performance. Atkin and Brooks (2005) state that facilities management covers a broad spectrum of real-estate management, financial management, change management, human resources management, health and safety and contract management, as well as building and engineering services, domestic services and other utilities supplies FM is a wide field, which encompasses models that tend to differ considerably from one organization to another. Atkin and Brooks (2005) also agree with this statement by defining FM as a profession that encompasses multiple disciplines to ensure the functionality of the built environment by integrating people, place, process, and technology. The modern facilities manager has adopted the principles and concept of continuous improvement. Best, et al (2003), in support of this notion, emphasized that any organization should strive for improvement in its operations whether it is customer satisfaction, increased productivity, better quality of output, better environmental performance, or any other performance indicator. FM emanates from the premise that buildings are never perfect (Cloete, 2002:11).

200

It is important that professions involved in property development and occupiers of buildings start to acknowledge mistakes that come with the building and learn to manage them in order that organizational objectives can be achieved and programmatic dysfunction reduced (Ibid). These are the factors that made FM grow at a very fast rate in the modern business environment. It is this state of affairs that prompted this research project on FM in the public sector. FM is assumed to be the driving force of the future in the management of buildings and its related services; it could also rescue government from the stated dilemma. 3. RESEARCH METHOD The primary objective of the research was to determine the perceptions and attitudes of people dealing with FM in the public sector and thereby determine whether there is a need for a transformation strategy. Leedy and Ormrod (2005:1) state, in virtually every subject area, our knowledge is incomplete and problems are waiting to be solved. We can address the holes in our knowledge and those unresolved problems by asking relevant questions and then seek answers through systematic research. Leedy (1993) continues by stating that facts are needed to solve any research problem. A quantitative method of data gathering was used to generate important information from the target population. Mouton and Prozesky (2001) agree that, more often than not, data collection methods that are more quantitative in nature are used in action research. Primary data was obtained through questionnaires completed by facilities managers, regional managers and property managers of the National Department of Public Works. The secondary data was obtained through a literature review of relevant publications and information sourced from libraries and the Internet. The secondary data played a major role in the establishment of the criteria and theories against which the empirical research was to be measured and in the compilation of the questionnaire for the survey. 4. TARGET POPULATION The National Department of Public Works has eleven regional offices, each headed by a regional manager and supported by heads of divisions who are supported by line managers. The target population consisted of 33 managers comprising regional managers (11), property managers (11) and facilities managers (11) selected by being involved in facilities management one-way or another. Gay and Airasian (cited in Leedy and Ormrod, 2005) have the following guidelines for the identification of a sufficient sample: For a small population less than 100 people there is no need for sampling; If the population size is around 500, 50% of the population should be sampled; If the population size is around 1500, 20% of the population should be sampled; and Beyond a certain point (at about 5000 units or more), a sample of 400 people is adequate. Based on the above information, the target population for this survey did not require sampling. Every effort to eliminate the likelihood of biased data has been made. 5. RESULTS OF SURVEY Data gathered to achieve results, data analysis, and interpretation was analyzed using descriptive and inferential statistics with the help of the Department of Statistics at the Nelson Mandela Metropolitan University. Chi-square () tests were used to determine how well the obtained sample proportions fit the population proportions or relationships specified in the null hypothesis.
201

5.1 Target population and respondents The first table illustrates the composition of the target population and the respondents. The three functional groups form part of the existing organogram of the public sector and was used for categorisation. Table1: Target Population and Respondents
Function Regional Managers Property Managers Facilities Managers Position Chief Directors/Directors Directors/Deputy Directors Deputy & Assistant Directors Total Target population Number 11 11 11 33 Percentage 33.3 33.3 33.4 100 Respondents Number 4 2 11 17 Percentage 36.4 18.2 100 51.5 Response group Percentage 23.5 11.8 64.7 100

A response rate of 51.5% was achieved and this formed the basis for the analysis and the subsequent conclusions. All Facilities Managers responded, but only 36.4% of Regional Managers and 18.2% of Property Managers responded. Although Regional and Property Managers play major roles in the formulation of the policies and programmes in the organization, the high percentage (64.7%) of the Facilities Managers group, should give a true and accurate reflection of the state of FM in the public sector. The high response from regional and property managers would have given a strong indication of how they perceive FM in the sector. 5.2 Experience in facilities management in the public sector As experience plays a major role in any field it was important to establish how much experience respondents had in FM. Experience is linked to tacit knowledge. Tacit knowledge forms one kind of knowledge, which is sometimes difficult to articulate when using formal language. Nonaka and Tekeuchi (1995) state that tacit knowledge is personal knowledge embedded in individual experience and involves intangible factors such as personal beliefs, perspectives, and value systems. Table 2: Experience in facilities management
Years Less than 1 year 1 - 5 years 6 - 9 years 10 years and more Total Number of respondents 3 6 3 5 17 Percentage 17.6 35.3 17.6 29.5 100 Cumulative Percentage 17.6 52.9 70.5 100

Most of the respondents (35.3%) had between 1 and 5 year experience while 17.6% had less than 1 year experience in FM. The table also indicates that more than half of the respondents (52.9%) had less than 5 years of experience in FM. This is not a satisfactory state of affairs taking into account the huge property portfolio of the public sector. 5.3 Education and Training in facilities management Explicit knowledge is one of the knowledge that is acquired through education. It forms the key in the development of the human nature. Nonaka and Tekeuchi (1995) define explicit knowledge as knowledge that can be articulated in a formal education.

202

Table 3: Training in facilities management

Training None N. Diploma B. Degree M. Degree D. Degree Other Trainings Total Number of respondents 10 1 0 2 0 4 17 Percentage 59 6 0 12 0 23 100 Cumulative Percentage 59 65 65 77 77 100

The table 3 indicates that 59% of the respondents had no training in FM, 23% had other forms trainings, 12% had a Masters degree and 6% a National Diploma. This reveals serious situation facing the sector in terms of the skill shortage in the discipline. Lack of education cannot be compromised if the sector has to succeed. 5.4 Definition of FM Table 3 shows the respondents ratings of the definition of FM, measured by using a five-point Likert scale, namely 1 = strongly disagree (SD), 2 = disagree (D), 3 = neutral (N), 4 = agree (A) and 5 = strongly agree (SA). Respondents were not requested to rank the statements but merely to rate each statement on the 5-point scale. Table 4: Statements describing facilities management (n=17)
Description of Facilities Management SD D N A SA M P V Ra nk 1

It is the management of buildings and their related services Practice of integrating people, business process and physical infrastructure Management of specific physical entities to enable the business to carry out its functions Management of only cleaning and gardening services Total management of all services that support core-business

0 12% 0 0 18% 1 24% 3 35%

9 6 88% 8 76% 7 70% 6 4 58% 5 3 47% 5 5

4.11

9.94

.002

.076

0 3

4 24% 2 12% 3 18% 3 18%

4.05 3.8

4.76 7.12

.029 .008

.53 .65

2 3

3 3

3.5 3.1

4.76 1.47

.029 .225

.53 n.a.

4 5

Average

12

7.12

.008

0.65

The results from the table above show that the respondents have a fairly good idea of the scope of FM. This is also confirmed by inferential statistics which indicates significant proportion of respondents in support of top four statements describing FM, 2(1, n=17)=9.94, p<.002, v>0.76; (1, n=17)=4.76, p<.029, v>.53; (1, n=17)=7.12, p<.008, v>.65; (1, n=17)=4.76, p<.029, v>.53. However, the definition of Management of cleaning and gardening services was rated unexpectantly high as FM entails much more than just that. Although the last statement is also describing FM in the literature reviewed the statistical results indicate insignificant proportion of respondents in support of the statement, (1, n=17)=1.47, p>.225. This could reflect poor understanding of the subject by the respondents. 5.5 Factors stimulating growth of FM Table 4 illustrates respondents perceptions on the factors that have stimulated the growth of the FM discipline. Respondents rated all five factors higher than 3 (thus Agree) and this correspondents with the opinion of Becker (1990) who states that the five factors that stimulate the growth FM is global competition, information technology, the high cost of space, employee expectations, and the cost of mistakes.
203

Table 5: Factors Stimulating the Growth of Facilities Management (n=17)

Factors stimulating growth FM SD D N A SA M P V Ran k 1 2 3 4 5

Global competition Information technology High cost of space Employee expectations Cost of mistakes

0 1 6% 1 6% 1

0 0 0 1

12% 2 29% 3

1 9 7 6% 94% 0 11 5 94% 5 5 6 29% 65% 8 2 5 47% 41% 4 5 3 24% 47%

4.4 4.1 3.9 3.5 3.2

13.24 13.24 13.24 9.94 2.88

<.0005 <.0005 <.0005 .002 .090

.88 .88 .88 .76 n.a.

Average

12

9.94

.002

0.76

Although the public sector does not compete globally with other organizations, it is affected to a large extent by the other factors and therefore plays a major role in the management of its facilities. The statistical results indicate that although significant proportion of respondents in support of the top four factors, (1, n=17)=13.24, p<.0005, v>.88; (1, n=17)=13.24, p<.0005, v>.88; (1, n=17)=13.24, p<.0005, v>.88; (1, n=17)=9.94, p<.002, v>.76, the last factor was not support, (1, n=17)=2.88, p>.090. This creates uncertainty about the knowledge of the respondents in this field because, cost of mistakes forms part these factors (Bekker, 1990). 5.6 Perceptions of FM Table 6: Perception of Facilities Management (n=17)
Statements about FM Lack of knowledge of facilities management results in poor performance of state properties A building needs to be nurtured, understood, and developed to its full potential Senior level people should be appointed to interpret the policy in terms of facilities management to fulfil the role of an intelligent client. The public sector is far advanced in facilities management Property management, facilities management and asset management are the same. Funding availability is the only cause of state properties decay SD 0 6% 0 2 12% 0 1 6% D 1 N 1 6% 1 6% 4 23% A SA M 4.4 4.3 4.0 13.24 9.94 13.24 P <.0005 .002 <.0005 V .88 .76 .88 Rank 1 2 3 6 9 88% 4 10 82% 6 6 71%

10 59% 4 4 47% 4 7 65%

1 6% 3 18% 1 6%

1 5 35% 5 1 35% 1 4 29%

3.1 2.7 2.4

0.53 0.06 1.47

.467 .808 .225

n.a. n.a. n.a.

4 5 6

Average

5.5

1.83

9.67

2.12

.147

na

It can be noted from the results in Table 6 that respondents agree that a lack of knowledge of FM results in the poor performance of state properties and statistical results support the statement, (1, n=17)=13.24, p<.0005, v>.88; whilst they also agree that buildings need to be nurtured, understood, and developed to its full potential; statistical results support the findings, (1, n=17)=9.94, p<.002, v>.76. Respondents also agree that senior-level people should be appointed to interpret the FM policy to fulfill the role of an intelligent client; thereby agreeing with Cloete (2002:38). The statistical results significantly support the findings, (1, n=17)=13.24, p<.0005, v>.88. Sievert (1992) is further of the opinion that the quality of decisions made by facilities managers is directly related to the quality of information available to them. Buys (2004: 185) supports this viewpoint by stating: Maintenance/Facilities managers have to make important decisions regarding maintenance work to be carried out such as whether the work must be carried out immediately or whether it can be deferred, to redirect or re-allocate resources for maintenance work to be done and determine whether an item should be repaired or replaced. To make these decisions, he/she must have all the relevant information available such as cost implications of the various alternatives and minimum acceptable standards.

204

Although the previous results indicate that the respondents are knowledgeable about the scope of FM, there appears to be a need for the appointment of properly trained facilities managers in the public sector. This view is further augmented by the respondents views that the public sector is not really advanced in FM and statistical results support the findings, (1, n=17)=0.53, p>.457. A lack of funding is usually given as the main reason why there is decay in the condition of buildings; Buys (2004: 10) states that there is evidence that inadequate finance is one of the biggest problems facing maintenance managers as maintenance budgets seem to be the easiest to cut in times of financial stringency. The limited funds are rather used for new buildings than the upkeep of existing buildings with the result that the maintenance manager is faced with a growing portfolio of responsibilities but diminishing resources. It is noted from the above results that respondents generally disagree (rating 2.4) that the availability of funding is the only cause of the decay or poor condition of state properties. Statistical results indicate insignificant relationship with the statement, (1, n=17)=1.47, p>.225. 5.7 Information management systems The use of Information management systems can be very beneficial to any organization as computer software makes it possible to store and retrieve maintenance data making it easier to obtain the required information in order to make the right decisions. Magee (1988) maintains that the computer, because of its ability to store and manipulate large amounts of data, can be a valuable asset to the facilities manager. Corti (2001) states that it is vital to have a system which can respond rapidly to inquiries from senior management with accurate and detailed information. Buys (2004) concludes that it is vital for organisations to use computerised maintenance management systems to enhance data and information communication throughout the building life cycle and to assist maintenance managers to record, monitor and predict the maintenance costs associated with the building elements, components or parts. Table 7 shows the extent to which Information management systems are used in the NDPW. Table 7: Information management systems in use (n 17)
FM systems Property Management Information System (PMIS) Computerised Maintenance Management System (CMMS) Computer-Aided Facilities Management System (CAFMS) Average Never Always 7 0 4 5 41% 1 59% 11 2 3 1 76% 0 24% 14 1 0 2 88% 0 12% 12 5 M 2.4 1.6 1.4 1.8 0.53 4.76 9.94 2.88 P .467 .029 .002 .090 V n.a. .53 .76 na Rank 1 2 3

The mean rating of 1.8 clearly indicates that Information management systems are not used extensively in the NDPW. Although the highest mean rating (2.4) is for using a Property Management Information management system, statistical results indicate insignificant relationship in the use of the system, (1, n=17)=0.53, p>.467. Furthermore, statistical results show significant proportion of respondents not using both CMMS and CAFMS respectively, (1, n=17)=4.76, p<.029, v>.53; (1, n=17)=9.94, p<.002, v>.76. The effect of this phenomenon could result in major setbacks for the organization such as client dissatisfaction, non-competitiveness, and the poor performance of the portfolio. Smith (1995) states that the maintenance management system develops benchmark information from operating
205

data and it helps the maintenance manager to determine where changes for improvement are needed. Final, statistical results show insignificant proportion of respondents utilizing information management information systems, (1, n=17)=2.88, p>.090 therefore, the use of these systems is rejected. 5.8 FM activities FM covers a wide range of activities and a list of these activities was included in the questionnaire to ascertain which activities are included in the portfolio of the respondent and to what degree respondents rate its importance. These are generic facilities management activities which form the core of this discipline. The following table tabulates the activities, the percentage of respondents who are responsible for these activities, and respondents views on their importance. The literature review formed the basis for identifying the activities. Table 8: Performed FM activities
FM activities Respondent Performing activity No Yes 12% 88% 2 15 12% 88% 2 15 12% 88% 15% 85% Importance of activity 1=Not important 5=Very important Not Extremely 0 0 1 0 0 1 0 0 0 0.25 1 1 M P V Rank

Health and Safety Statutory compliance Safety environment Real Estate/Property Management Planned maintenance Condition assessment survey Unplanned maintenance Building maintenance plan Financial Management Budget preparation Budget reviews Operating cost analysis Security Security management Security risk management Security systems Work Place / Space Planning Post-occupancy evaluations IT distribution Energy conservation

4 4 4 3.25

10 10 10 10

4.600 4.60 4.60 4.583

9.94 9.94 9.94 7.12

.002 .002 .002 .008

0.76 0.76 0.76 0.65

4 24% 1 6% 1 6% 4 24% 25% 3 18% 5 29% 5 29% 35% 4 24% 8 47% 6 35% 76% 12 71% 13 76% 14 82% 5

13 76% 16 94% 16 94% 13 76% 75% 14 82% 12 71% 12 71% 65% 13 76 9 53% 11 65% 24%

0 0 0 0 0 0 0 0

0 0 1 0 0 0 0 0

0 1 0 3 0 0 0 0

3 3 4 3 5.33 6 6 4

10 12 11 7 7.33 8 6 8

4.77 4.69 4.56 4.31 4.580 4.57 4.50 4.67

4.76 13.24 13.24 4.76 4.76 7.12 2.88 2.88

.029 .002 .002 .029 .029 .008 .090 .090

0.53 0.76 0.76 0.53 0.53 0.65 n.a. n.a. 3

2 2 2

0 0 0

0.67 0 0

3.67 6 3

4.67 5 4

3.810 3.92 3.78

1.47 4.76 0.06

.225 .029 .808

na 0.53 n.a.

2 0.33 0 0 0 1

0 0

2 0.67 0 3 2 0

2 2 2 2 1

5 1

3.73 3.743 4.40

1.47 4.76 2.88 4.76 4.76

.225 .029 .090 .029 .008

n.a. 0.53 n.a. 0.53 0.65 5

29% 4 24% 3 18%

0 0

0 1

3.50 3.33

Average

6 35%

11 65%

1.47

.225

na

206

The table shows that, with the exception of two FM category (Work Place / Space Planning and Security), more than half of respondents are performing the activities listed. Statistical results indicate significant proportion of respondents perform these categories (Health and Safety, Real Estate/Property Management and Financial Management) respectively, (1, n=17)=9.94, p<0.002, v>0.76; (1, n=17)=7.12, p<0.008, v>0.65; (1, n=17)=4.76, p<0.029, v>0.53. It is also noticed that the statistical results indicate insignificant proportion of the respondents performing security, (1, n=17)=1.47, p>.225, while also indicate significant proportion of respondents do not perform work place / space planning, (1, n=17)=4.76, p<.029, v>0.53. Health and Safety, Real Estate/Property Management and Financial Management were rated as the three most important FM activities. Although Security and Work Place/Space Planning were ranked in the 4 and 5 position on the importance scale, it still had average ratings of 3.81 and 3.74 respectively. None of the individual FM activities had an average importance rating of less than 3 (Neutral). This indicates that although some of the FM activities do not fall within the scope of the respondents portfolio, they are all rated as important. The final statistical results indicate insignificant proportion of respondents performing these activities, (1, n=17)=1.47, p>.225. This indicates that although 65% of the activities are performed by respondents, statistically this is insignificant which means the performing of these activities by respondents is rejected. 6 CONCLUSION The results of the survey have indicated that although the facilities managers are fairly knowledgeable about FM and that almost 70% of the respondents are responsible for all FM activities, more than half of them have less than five years experience in FM. This is not satisfactory, taking into account the huge property portfolio of the NDPW and the important decisions they have to make regarding managing its facilities. Information management systems are not used extensively in the NDPW and the introduction of such systems could greatly assist facilities managers in managing FM. A lack of funding should not be seen as the only cause of the decay or poor condition of state properties; other causes may be the lack of properly trained facilities managers and a need for a transformation strategy which should include the appointment of properly trained facilities managers. The support for appointment of senior management to set the necessary policies and framework is an indication that the FM discipline is trailing behind in this sector. Although 65% of the respondents performed the FM activities, the statistical results from the survey indicate that an insignificant proportion of the respondents perform these activities. This concludes to a need for transformation strategy of FM in this sector. The research also recommends that tertiary institutions should be encouraged to offer more programmes in FM to satisfy this need. References Atkin, B. and Brooks, A. (2005). Total Facilities Management, 2nd edition. Oxford: Blackwell Publishing.

207

Barrett, P. (1995). Facilities management towards best practice. Oxford: Blackwell Science. Becker, F. (1990). The Total Workplace: Facilities Management and Elastic Organisation, New York, Van Nostrand Reinhold. Best, R., Langston, C. and De Valence, G. (2003). Workplace Strategies and Facilities Management, Oxford, Butterworth-Heinemann. Bici, L. (2006). Billion-rand Opportunities for Women In Construction, The Herald 20/4/2006. Buys, N.S. (2004). Building Maintenance Management Systems In South African Tertiary Institutions, Unpublished Ph.D. Thesis, University of Port Elizabeth Cloete, C.E. (2002). Introduction to Facilities Management, Pretoria, The South African Education Trust. Corti, P. (2001). Empowering employees and the organisation by implementing and evolving a maintenance management system. Conference Proceedings No. 23, Ninth Maintenance Management Conference, Juneau, Alaska, July 16-20, 2000. Washington D.C.: National Academy Press. Dunn, J.A. (1990). Overview of Tufts Universitys experience in financing capital maintenance. In Meyerson, J.W. and Mitchell, P.M. Financing capital maintenance. Washington: National Association of College and University Business Officers. Gravetter, F.J. and Wallnau, L.B. (2005). Essentials of Statistics for the Behavioral Science, 5th edition, United States of America, Thomson Learning Inc. Leedy, P.D. (1993). Practical Research, Planning and Design. 4th edition, New York: MacMillan Publishing Company. Leedy, P.D. and Ormrod, J.E. (2005). Practical Research Planning and Design, 8th edition, Upper Saddle River, Pearson Prentice-Hall. Magee, G.H. (1988). Facilities maintenance management. United States of America: R.S. Means Company Ltd. Mouton, E. B. J. and Prozesky, P.V.B. (2001). The Practice of Social Research, Cape Town, Oxford University Press, Southern Africa. Price, A. (1997). Human Resource Management in a Business Context, North Yorkshire, Thompson Publishing Inc. Sievert, R. (1992). Asset Management: Facilities as Strategic Resources [Online]. Available: http//www.p2pays.org/ref/24/23728 pdf. [Accessed 15 August 2006] Sigcawu, S. (2000). Briefing by The Minister of Public Works on Behalf of the Employment and Investment cluster [Online]. Available: http/www.pmg.org.za/briefings/000208employmentcluster.htm [Accessed 15 August 2005]. Smith, B.D., Jr. (1995). Benchmarking and Maintenance Management Systems [Online]. Available: http//www.nemionline.org/download/tabb-talk-oct-06.pdf [Accessed 15 August 2006]

208

A PRACTICAL APPROACH TO CALCULATE ACCELERATION COSTS ON CONSTRUCTION PROJECTS IN SOUTH AFRICA

Maritz MJ1, Schutte AP2
1

Department of Construction Economics, University of Pretoria, tinus.maritz@up.ac.za, Tel No. 012-4202581 (Study-leader) Department of Construction Economics, University of Pretoria, andriess@rsv.co.za, Tel No. 011-4986240 (Researcher)

ABSTRACT Purpose of this paper The purpose of the treatise is to set out a simple procedure which can be used for calculating the amount of compensation due to a contractor as a result of acceleration that has occurred on a construction project. The research report will help contractors to choose the right claim procedure. The study will also create a better understanding of the complex nature of acceleration on projects as there is very often a lack of understanding between contractors, client organisations, consultants and lawyers as what could, and could not, be included in an acceleration claim. They will also gain new insights about claim procedures and the substantiation of acceleration costs. Matters of principle that should apply to acceleration claims regardless of the form of contract are examined. Methodology/Scope - The research is about acquiring information by means of questionnaires from three groups of respondents namely contractors, consultants and employers concerning their opinions and previous experiences on project acceleration. The impacts or delays which have the biggest influence on construction projects are ranked according to how often it occurs. These impacts or delays generally cause acceleration and/or extension of time on projects. Significant differences in opinion are pointed out as it indicates a lack of knowledge and/or understanding of matters concerning acceleration amongst the major stakeholders on construction projects. Findings - Most acceleration claims are the consequence of significant project scope increase. There are significant differences in opinion regarding various issues relating to acceleration claims. One such issue is a statement that contractors can generally accommodate contract variations and scope increase up to the value of 15% of the contract amount without claiming additional costs for preliminaries or acceleration. Research limitations It was not the purpose of the research to recommend either the use of FIDIC, JBCC or NEC. One definition is given to acceleration regardless the form of contract. Practical implications The continuous professional development of construction professionals such as engineers and quantity surveyors is essential. The standard and quality of education at tertiary institutions in South Africa must be maintained at all costs. Consultants should refrain from preparing contract documents where the scope of work is not clearly defined. Alternatively a party must be identified to carry the risk associated with an ill defined project scope. Value The research report sets out a practical format for claiming damages where acceleration was caused by a significant scope increase. It is foreseen that contractors, consultants, employers and other stakeholders in the construction industry will benefit from the findings and recommendations in this research report. Keywords: Construction, acceleration, claims, scope increase
209

1. 1.1

BACKGROUND Acceleration - Defined The conditions of contract frequently used in South Africa like the NEC, FIDIC, JBCC and GCC all have different definitions for the term Acceleration. The meaning of acceleration in terms of the NEC is bringing the completion date forward. This differs from usage in FIDIC and JBCC where acceleration means speeding up the work to ensure that the completion date is achieved. For the purpose of the study acceleration is defined as the execution of outstanding contract works within a shorter time than originally planned to mitigate the extension of time that the contractor would have otherwise been entitled to. Increase in the scope of work It is almost predictable that the original scope of work as at tender stage will not remain unchanged throughout the execution phase of the project. Contractors will most often be required to do more or less work than originally included for in the contract documents. According to McKenzie (1988:122-123) the work done by a contractor on a building project may fall into one of three categories: Work expressly or impliedly included in the contract, Extras, and Work that falls right outside the contract. Mckenzie (1988:124) also states that an increase in the quantity as measured or estimated does not constitute extra work. This is further demonstrated in the case of Imprefed (Pty) Ltd v National Transport Commission 1993 (3) SA 94 (A).

1.2

1.3

Contractors obligation to execute the whole work The construction contract is known to the common law as the contract locatio conductio operis, the letting and hiring of a work. It is also known and described as an entire contract (Finsen, 1999:16). The contractor firstly has one indivisible obligation to execute the work and secondly an obligation to complete the work. The state of affairs for contractors in South Africa is that they cant make any claim under common law for payment until they have completed the whole project. However most construction contracts used in South Africa provide for interim payments. If the contractor tries to sue the employer for payment before he has completed the whole project the employer may raise the exceptio (in South African law) or the ready, willing and able principle (in English law), and effectively defeat any claim by the contractor indefinitely until the contractor completes the whole of the project. Project risk identification Davison (2003:10-21) points out that the cause of many claims and disputes over additional payments under construction contracts is the failure to place risk plainly on one party or the other and the failure to record and detail the consequences of risks when they do arise. The employer or project sponsor is the best equipped to undertake a comprehensive risk analysis as the contractors risk assessment will be limited to consideration of the risks within their own scope of work and contractual arrangements. Bad planning where limited attention is given to the project scope management processes and unseemingly haste in starting work which has not been properly planned can cause variations, cost overruns, delay and disputes. A poorly defined scope of work must therefore be identified as a project risk in the very early stages of the project lifecycle.

1.4

210

1.5

Delay classification Sanders and Eagles (2001:3) define a delay as an event that causes extended time to complete all or part of a project. Halvorson (1995:C&C.1.1) points out that the contractors right to recover increased performance costs, as a result of acceleration, depends on the type of delay that reduces the performance period. He classifies delays as follows: Nonexcusable delay, Excusable delay, Compensable delay, suspension and disruption, Imposed milestone, and Concurrent delay.

1.6

Float ownership Float utilised efficiently by the employer and contractor can reduce the negative impact that acceleration or extension of time (EoT) may have on a project considerably. In the critical path method of scheduling, the time difference between the earliest finish and the latest finish of an activity is called total float. Employers in the construction industry are inclined to believe that all float exclusively belong to the party who is defined as the employer to the particular contract. Contractors on the other hand are normally of the opinion that all float belongs to them as they have prepared the detailed programme and have allowed extra time and/or float for activities where high risks are involved (De Leon, 1986:12). A possible solution is that float should belong to the project and not a specific party to the contract. Float will then be used on a first come first serve basis. However, this solution is biased towards the employer as he absorbs float that he has not had an influence over and has not earned. Another favourable solution is that all float in the programme should belong to the contractor. Float is therefore seen as a saleable resource belonging to the contractor.

1.7

Constructive acceleration Constructive acceleration occurs in the absence of owner directed acceleration. The employers refusal to grant an EoT for excusable delay will result in an acceleration effort by the contractor in order to complete the project on the contractual completion date. The USA construction industry has become accustomed to the concept of a constructive acceleration order. Davison (2003) points out that the refusal to grant EoT for excusable delay in the USA is normally converted into an implied instruction to accelerate. However, this is not the case in South Africa.

1.8

Claims for acceleration costs under English law The approach under English law as pointed out by OReilly (2007) is that if there is no express authority in the contract to accelerate, then no entitlement arises to claim extra costs for acceleration. The argument adopted by many contractors in South Africa namely that a rejection to an EoT request which the contractor believes is correct amounts to an instruction to accelerate and finish on time is simply incorrect. OReilly states that the only exclusion is where the certifier is expressly empowered under the contract to order acceleration on the employers behalf. Therefore the refusal to grant an EoT cant amount to a deemed instruction to accelerate. A claim for constructive acceleration under English law must be based on the ordinary principles for breach of contract and damages.

211

1.9

Project records required for acceleration claims There are many different forms of contract that can be adopted by the parties to a construction contract depending upon, among other matters, the nature of the enterprises concerned and the nature and size of the project. Every standard form of contract has its own detailed requirements regarding record keeping, document control, notices, etc. The prime source of information for any claim between the parties is the contract and the specific requirements contained therein. The process of keeping project records should begin with the tender. Tender documents are often used in litigation to help substantiate the costs that a contractor expects to incur on the project. Other project records such as job cost reports, daily logs and progress reports, daily payroll records, variation orders and related support, minutes of meetings, job correspondence, documentation of design changes, photographs, etc will be vital to substantiate an acceleration claim.

1.10

Methods to calculate acceleration costs Loots (1995:777) states that there is no hard and fast formula for calculating acceleration costs. He emphasizes that one ought to look at each situation individually and establish what costs were sustained in the attempt of buying back time. Davison (2003) points out that the method or combination of methods which can be used to calculate acceleration costs are: The global or total cost approach, The modified total cost approach, The time impact methodology, The measured mile approach, and Formula approaches. Layout and presentation of acceleration claims The most effective way to win a dispute is to avoid the dispute. This means that the contractor is rather planning ahead in order to avoid the necessity of claiming, especially if the claim may go to court. Claims are very often the result of the lack of a good control system. If there is no control system that could effectively register every change that occurred during the project execution, a dispute will emerge. Disputes may also emerge if the responsibilities of customers and suppliers are not clearly defined. The contents of a claim can be checked against Sotelo and del Mercados (1993:G.5.6) content checklist. The checklist is set out as follows: A summary of items and amounts to be claimed, Documents that support the claim, A detailed analysis of how the amounts were calculated, and Legal and contractual support.

1.11

2.

REASONS FOR THE STUDY The study attempts to define the views, opinions and understandings of employers, consultants and contractors in the construction industry regarding procedures and methods to calculate and substantiate acceleration costs on projects. The study is undertaken for the following reasons: To point out that most acceleration claims is the consequence of significant project scope increase, To set out a procedure or template for the calculation of acceleration costs where a significant scope increase occurred,
212

To create a better understanding of the complex nature of acceleration claims, and To point out differences in opinion amongst consultants, contractors and employers regarding acceleration claims.

3.

RESEARCH METHODOLOGY The study was fundamentally descriptive quantitative research. Data collection was done by means of questionnaires which were completed by a selected group of 60 individuals. The questionnaires tested respondents views and knowledge regarding issues relating to acceleration claims on construction projects in South Africa. Research population and sampling The research population consisted of clients, consultants and contractors operating in the building, construction and mining industries in South Africa. The three categories represent the following parties: Employers Clients undertaking and responsible for the funding of projects (party engaging in contract with contractor), Consultants Project specialists such as project managers, engineers and quantity surveyors registered at a governing body in terms of South African legislation and providing specific services to a client as prescribed by the particular contract, and Contractors Building and engineering (mechanical, electrical, civil and mining) contractors. The research was restricted to individuals who are based at their respective organisations head offices in Johannesburg, Gauteng. Purposive sampling was used to select a representative group. A group of 60 individuals was selected (20 employers, 20 consultants and 20 contractors) as they represent the diverse opinions on acceleration matters and are typical of all clients, consultants and contractors in the project environment in South Africa. Respondents were requested to answer questions related to projects where the following were applicable: Contracts with bills of quantities (BoQ) and detailed programme, Contracts based on either NEC, FIDIC or JBCC terms and conditions, Work remeasured to determine the final value, and A main contractor, main consultant and employer were involved.

3.1

3.2

Data collection procedure A questionnaire containing eight main areas (Section A H) of questioning was used to collect the primary data. The department of Statistics at the University of Pretoria evaluated the questionnaire to establish whether meaningful conclusions could be derived from it. Appointments were made with the selected group of participants and the content and purpose of the questionnaire was explained to them. The researcher hand delivered all questionnaires to the relevant participants. The participants were requested to complete the questionnaires before 23 September 2007. A pilot study was conducted where questionnaires were handed out to four respondents in order to establish whether it contained weak spots. This resulted in minor changes to two sections of the questionnaire.

3.3

Validation of method and data selected The research is about acquiring information from three groups of people (contractor, consultant and employer/developer) concerning their opinions and previous experiences on project acceleration.
213

Leedy and Ormrod (2005: 183) define survey research as follows: The researcher poses a series of questions to willing participants, Summarizes the participants responses with percentages, frequency counts or more sophisticated statistical indexes, and Draws inferences about a particular population from the responses of the sample. The purpose of the descriptive research is to solve the research problems through the interpretation of the data that have been gathered. Eventually the hypothesis will be proofed either right or wrong. The study has sufficient controls to ensure that the conclusions drawn from it are truly warranted by the data. Section A indicates which impacts or delays have the biggest influence on construction projects. These impacts or delays generally cause acceleration and/or extension of time on projects. The impact or delay which occurs most frequently will determine the method to calculate acceleration costs. Section H indicates which method the respondents have opted for when certain impacts or delays have occurred. Six scenarios are illustrated in section H which relate to the impacts and delays described in section A. Section B shows how successful contractors acceleration claims are. The results from this section give an indication of how well claims are prepared and substantiated. The results from sections C to G give an indication on the respondents knowledge relating to acceleration matters in general. The observations in this study can be applied to acceleration efforts on contractual work of all types of construction projects in South Africa. 4. RESULTS AND RECOMMENDATIONS The results from the data in the displays, graphs, charts and tables are analysed and interpreted in order to find answers to the research problems. The numbers are summarized and interpreted by using statistics. The statistics provide a means through which numerical data can be made more meaningful. An analysis of the summarized research results is done in order to make meaningful conclusions and recommendations. Section A Delays or impacts causing delays on construction projects

Impact or delay
Substantial increase in the scope of w ork Late information from the employer Numerous variation orders Late delivery of client provided material, equipment, plant, manpow er, etc Failure by the employer to provide unimpeded or w ell-timed access to the site Unforeseeable shortages in material, labour or other resources Mismanagement and/or poor site organisation by the contractor himself Errors in contract documents Labour unrest and labour disputes Exceptionally adverse w eather conditions 0% 20% 40% 60% 80% 100%

Rated frequently & often

Figure 1:

Delays and impacts on construction projects

214

The delay or impact which occurs most frequently or often on construction projects is: A substantial increase in the scope of the work.

Section B How often contractors receive certain levels of compensation for claims

Level of compensation
50 - 74% of the acceleration claim Less than 50 % of the acceleration claim 75 - 99% of the acceleration claim 100% of the acceleration claim 0% 23% 20% 40% 60% 80% 100% 50% 40% 78%

Rated frequently & often

Figure 2:

Compensation received by contractors for acceleration claims submitted

Section C Views regarding the origin of acceleration claims

60 Number of respondents 50 40 30 20 10 0 C.1 C.2 C.3 C.4 C.5 C.6 C.7 C.8 Section Agree Neutral Disagree

Figure 3:

Views regarding the origin of acceleration claims

The following conclusions are drawn from results portrayed in figure 3: Respondents agreed that employers should allow more time and funds for the study phases of projects (C.1), Most acceleration claims are the result of an increase in the scope of work (C.2), A poorly defined project scope is usually the reason for the high number of variation orders and claims on projects (C.3),
215

There is a significant difference in opinion amongst contractors, consultants and employers/developers where it is stated that contractors regularly fail to identify and to bring to the attention of the client project risks such as an ill defined scope in the early stages (tender clarification meetings) of a project (C.5) There is a significant difference in opinion amongst contractors, consultants and employers/developers where it is stated that contractors can generally accommodate contract variations and scope increase up to the value of 15% of the contract amount without claiming additional costs for preliminaries or acceleration (C.6) There is a significant difference in opinion amongst contractors, consultants and employers/developers where it is stated that preliminaries (costs for plant, equipment, etc) can be added to variation orders at any stage even if a contractual clause states that additional preliminaries can only be claimed after variations and scope changes exceed 15% of the contract amount in total (C.7), and Scope changes can be identified in the early stages of a project by the contractor's quantity surveyor where he first remeasures work according to the issued construction drawings and specifications and then immediately starts to measure as-built drawings as the work proceed (C.8).

Based on the results from section C the following recommendations can be made: The employer must carry the risk where the scope of work is poorly defined, It must be pointed out to the parties to the contract that no variation order is required where there is a normal increase in quantities based on a quantity surveyors remeasurements, Contractors must not be forced into a situation by employers where they have to accept contract conditions that prescribes an obligation to accommodate contract variations to a value of 15% of the contract amount without claiming additional preliminaries if it is not viable, and Scope changes must be identified through the employers scope management processes. Section D Views regarding the impact of delays and float on the programme

60 Number of respondents 50 40 30 20 10 0 D.1 D.2 D.3 D.4 Section D.5 D.6 D.7
Agree Neutral Disagree

Figure 4:

Views regarding the impact of delays and float on the programme

The following conclusions are drawn from results portrayed in figure 4: Respondents agreed that delays or impacts which cause extension of time and/or acceleration is a frequent occurrence (D.1),
216

Float in the programme (baseline) as submitted by the contractor within the period as required in terms of the particular contract (FIDIC, NEC or JBCC), belongs to the contractor and can be used at his discretion (D.2), Float does not belong to the project but to a specific party to the contract. Float cant be used on a first come first serve basis (D.3), A possible solution to the dilemma of float ownership is to include a clause in the contract that states the following: "Extension of time shall be based solely upon the effect of delays to the work as a wholeTime extensions shall not be granted for delays to parts of the work, whether or not changed by any variation order, that are not on the critical path of the official schedule. Further, time extensions shall not be granted until all float time available for parts of the work involved is used (D.4), If the employer intends to gain the most advantage from the programme (optimisation), the schedule should be prepared jointly by the contractor and consultant and be accepted as the baseline programme (D.5), and There is a significant difference in opinion amongst contractors, consultants and employers/developers where it is stated that the project manager or principal agent in terms of the particular contract (FIDIC, NEC or JBCC) can reduce the time for completion of the contract where work is omitted (D.7).

Based on the results from section D the following recommendations can be made: It must be pointed out to the parties to the contract that the project manager or principal agent in terms of the particular contract (FIDIC, NEC or JBCC) cant reduce the time for completion of the contract where work is omitted. Finsen (1999:152) supports this recommendation where he states the following regarding time where work is omitted: Authorities such as McKenzie, Quail and Malherbe & Lipshitz, relying on the judgement in Kelly and Hingle, conclude that the principal agent does not have the power to reduce time where work is omitted. The employer will gain the most advantage from the programme (optimisation) if the schedule is prepared jointly by the contractor and consultant. Section E Views regarding constructive and directed acceleration

40 Number of respondents 35 30 25 20 15 10 5 0 E.1 E.2 Section E.3

Agree Neutral Disagree

Figure 5:

Views regarding constructive and directed acceleration

217

The following conclusions are drawn from results portrayed in figure 5: There is a significant difference in opinion amongst contractors, consultants and employers/developers where it is stated that the refusal of the certifier in terms of the particular contract (FIDIC, NEC or JBCC) to grant extension of time to a contractor for an excusable delay, can be seen as an implied instruction to accelerate (E.1), A warning by the project manager or principal agent in terms of the particular contract (FIDIC, NEC or JBCC) which states that a contractor is behind the agreed schedule (due to owner caused delay), cant be seen as an implied instruction to accelerate (E.2), and There is a significant difference in opinion amongst contractors, consultants and employers/developers where it is stated that the certifier (consultant) seldom instruct the contractor to accelerate even when its evident that an owner caused delay made acceleration or EoT inevitable (E.3). Based on the results from section E the following recommendation can be made: It must be pointed out to the parties to the contract that the refusal of the certifier in terms of the particular contract (FIDIC, NEC or JBCC) to grant EoT to a contractor for an excusable delay, cant be seen as an implied instruction to accelerate. OReilly (2007) supports this recommendation where he states that the refusal to grant an EoT cant amount to a deemed instruction to accelerate. A claim for constructive acceleration under English law must be based on the ordinary principles for breach of contract and damages. Section F Quality of contractors acceleration claims

30 Number of respondents 25 20 15 10
Agree

5 0 F.1 F.2 Section F.3 F.4

Neutral Disagree

Figure 6:

Views regarding the preparation of acceleration claims

The following conclusions are drawn from results portrayed in figure 6: Respondents agreed that contractors acceleration claims frequently fail to clearly point out all the instances of contract breach (F.1), There is a significant difference in opinion amongst contractors, consultants and employers/developers where it is stated that contractors frequently can't submit proper substantiated acceleration claims due to the bad quality or absence of project records such as job cost reports, daily logs and progress reports, daily payroll records, variation orders, minutes of meetings, job correspondence, etc (F.2),
218

There is a significant difference in opinion amongst contractors, consultants and employers/developers where it is stated that contractors are reluctant to include a wide variety of project records in their acceleration claims (F.3), and There is a significant difference in opinion amongst contractors, consultants and employers/developers where it is stated that contractors frequently neglect document control on construction sites (F.4).

Based on the results from section F the following recommendations can be made: It must be pointed out to the parties to the contract that contractors acceleration claims must clearly point out all the instances of contract breach in order to be successful. It must be pointed out to the parties to the contract that contractors must adhere to certain quality standards regarding contract administration and document control. Section G The most suitable person to prepare an acceleration claim

60 Number of respondents 50 40 30 20
Good

10 0
Planner Quantity surveyor Construction manager Site manager

Neutral Limited

Contractors personnel

Figure 7:

Views regarding the best equipped or skilled person employed by the contractor to prepare an acceleration claim

The following conclusion can be drawn from results portrayed in figure 7: The contractors quantity surveyor is the best equipped or have the necessary skills to prepare an acceleration claim.

219

Section H The best method to use for calculating acceleration costs

60
Total cost approach

Number of respondents

50 40 30 20 10 0 H.1 H.2 H.3 H.4 H.5 H.6 Section

Modified total cost approach Time impact analysis

Measured mile approach Eichleay formula

Figure 8:

Methods to calculate acceleration costs

The following conclusions are drawn from results portrayed in figure 8: Contractors prefer the time impact approach to calculate the acceleration costs on projects (H.1, H.3 H.6), and The modified total cost approach is the preferred method for calculating acceleration costs where the remeasured quantities in all areas of a piping and mechanical installation contract increased with 30% (H.2). 5. A PRACTICAL APPROACH TO CALCULATE ACCELERATION COSTS ON CONSTRUCTION PROJECTS IN SOUTH AFRICA Based on the results from section H and matters relating to claim methods discussed in the literature study the following conclusions can be made: Although the preferred method for calculating acceleration costs by the respondents is the time impact approach, other methods can also be utilized under certain conditions as pointed out under scenario H.2. Results from the research report indicate that a significant increase in quantities is a regular occurrence on construction projects. Therefore the only method suitable to calculate the acceleration costs on a project where there are various matters of claim or complaint, and where it is impractical or impossible to provide a breakdown or sub-division of the sum claimed between those matters, is the modified total cost approach. With this approach the detailed project as-planned and asbuilt activity schedules are analysed to identify the time frame of specific delays, disruptions, changes, acceleration, etc. The equation for establishing acceleration costs is as follows: Acceleration costs = Total actual expenditure - Contract amount - Contract amendments non-compensable cost elements Areas relating to acceleration claims where differences in opinion exist amongst contractors, client organisations and consultants can be eliminated by implementing the necessary project management principles and by improving all stakeholders knowledge on commercial and legal issues on construction projects through continuous professional development.
220

6.

REFERENCES Davison, P R. 2003. Evaluating Contract Claims. Oxford : Blackwell De Leon, G P Dr. 1986. Float ownership: Specs treatment. Cost Engineering, October 1986, 28(10), p.12-14 FIDIC. 1999. Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer. Switzerland : FIDIC Finsen, E. 1999. The Building Contract. A commentary on the JBCC Agreements. Johannesburg : Juta Halvorson, G C. 1995. Proving and Pricing Constructive Acceleration Claims. AACE International Transactions, 1995, C&C.1.1-4 JBCC Inc. 2004. Principal Building Agreement. 4th ed. Code 2101. Pretoria : JBCC Leedy, P D & Ormrod, J E. 2005. Practical Research: Planning and Design. 8th ed. Upper Saddle River : Pearson Education Loots, P C. 1995. Construction Law and Related Issues. RSA : Juta and Cole Ltd McKenzie, H S & McKenzie, S D. 1977. The law of Building and Engineering Contracts and Arbitration. 5th ed. Johannesburg : Juta The Institution of Civil Engineers. 1995. The Engineering and Construction Contract B: Priced contract with bill of quantities. 2nd ed. London : Thomas Telford OReilly, M. 2007. Dispute resolution. Available from: http://www.rics.org/publications [Accessed 18 March 2007] Sanders, D & Eagles, W D. 2001. Delay, Disruption and Acceleration Claims. Borden Ladner Gervais LLP, May 2001, p.3 Sotelo, R C and Del Mercado, R V. 1993. Claims What and When to Claim. AACE International Transactions, 1993, G.5.1-6

221

CRITERIA FOR OUTSOURCING OF FACILITIES MANAGEMENT FUNCTIONS BY THE UNITED NATIONS

Charles, KA, Cloete, CE1
1

Department of Construction Economics, University of Pretoria, chris.cloete@up.ac.za Tel. 012-4204545

ABSTRACT Purpose of this paper Outsourcing of non-core functions is a viable business strategy for any company, including international public-sector organisations like the United Nations. Such organisations, however, typically have non-profit objectives and therefore have limited experience in and use for outsourcing criteria developed for commercial enterprises. The UNs experience in outsourcing, for example, is mainly limited to peacekeeping. The purpose of the paper is to develop outsourcing criteria for facilities management that would be suitable for use by international publicsector organisations like the UN. Methodology/Scope Forty national and international organisations were surveyed: fifteen Third Party Logistics Service providers; fifteen private sector manufacturing forms and ten UN peacekeeping missions. The survey was carried out through on-site personal interviews, telephone interviews and structured electronic and written questionnaires. Findings - Risks, the establishment of goals and objectives, barriers to outsourcing, the use of experts, benchmarks and the evaluation of a service providers performance are indicated as important criteria for developing an outsourcing relationship, as is the establishment of appropriate policies and procedures. The research further indicates that service provider selection is influenced by criteria such as operational excellence and reputation, strategic direction and compatibility, financial stability, costs and political considerations. Lastly, it was ascertained that although the cost of a provider is important, cost should be considered in the light of satisfaction of the criteria outlined earlier as well as on efficiency and effectiveness. Practical implications - The criteria identified by the research may serve as the basis for development of a decision-making scorecard. Value - The paper presents the first large-scale survey of outsourcing criteria applicable to the UN and should be useful to similar international organisations. Keywords: Outsourcing, decision-making criteria, service provider selection, international organisations 1.0 INTRODUCTION

Global economic stagnation has had a rippling effect on nations ability to provide resources for their people and international organisations that depended on funding from these nations have to look elsewhere and/or identify solutions to maximize available resources. In addition, increased competition among international organisations for donations has led them to react positively and seek alternative solutions to continue operating efficiently and effectively. By outsourcing as many non-core functions and activities as possible they would be able to reduce costs of operations and create funds for vital, but non-funded activities. However, international organisations like the United Nations typically have non-profit objectives and therefore have limited experience in and use for outsourcing criteria developed for commercial enterprises. The UNs experience in
222

outsourcing, for example, is mainly limited to peacekeeping. The purpose of the paper is to develop outsourcing decision-making criteria suitable for use by international public-sector organisations like the UN. The decision to outsource non-core activities should be arrived at by answering a number of important questions about the organisations core competencies and policy goals, coupled with the availability of service providers, contract negotiations, and other considerations. Decisions regarding outsourcing by international organisations have in the past, been handed down from headquarters and head offices. Therefore, to ensure that outsourcing engagements are achievable, decisions should have local input and the local political dispensation should be taken into consideration. The reason is that when decisions are made far from where they would be implemented there is always the tendency that such decisions would not be sensitive to the local environment. For example, decisions on outsourcing made at the local level would tend to encourage outsourcing to local service providers, while headquarters level made decisions would agree on contracting larger and international service providers. Outsourcing decision-making should include identifying an organisations needs, strategic interests and goals, in addition to computing all costs associated with the outsourcing process. The extensive experience and practices of the private sector should be compared with the political, legal and economic considerations that must be made when applying these lessons to international public sector organisations. Thereafter, appropriate criteria should be employed in all decision-making to ensure that planned objectives are achieved. 1.1. Decision-making Criteria Generally, economic reasons are vital criteria for outsourcing since they save costs to organisations. However, financial gains (profit) are not regarded as criteria for outsourcing by international (nonprofit making) organisations, although, low priced providers are considered if other selection criteria are met. Therefore, for international organisations, the decision to outsource is not completely dependent on economic reasons. Political and strategic reasons are some of the criteria that may have to be considered. Other criteria include risks, establishment of goals and objectives, barriers to outsourcing, the use of experts, benchmarks and the evaluation of a service providers performance. Additionally, establishing appropriate policies and procedures may also be considered. Efficiency and effectiveness are also very important criteria. In addition, qualitative criteria such as time, staffing and business value may also be considered. For example, the time available to complete a project is an essential factor in the decision on what type of resources to employ as well as the availability of skilled labour. In essence, criteria used to reach a decision invariably determine the selection of service providers. Therefore, the decision-making criteria should be flexible, realistic and applied on a case by case basis. The application of appropriate decision-making criteria enables organisations to assess the capabilities of potential outsourcing partners. This is because organisations have recognised that selecting the right outsourcing partner is a key to maximising the effectiveness and value of the relationship, hence outsourcing success. Proper decision-making criteria assist in prioritizing and developing successful outsourcing projects. Decision-making criteria are essential elements that have to be considered before a decision to outsource non-core functions is reached and constitute a basis for developing an outsourcing relationship and thus an outsourcing decision-making scorecard. Lastly, the criteria identified by the research form the basis for development of a decision-making scorecard. Additionally, the research established that successful outsourcing could provide international organisations with a number of benefits, most of which result from improved efficiency and savings in costs.

223

1.2 Statement of the Problem The paper identifies appropriate outsourcing decision-making criteria for international public sector organisations, which forms the basis for the development of an outsourcing scorecard. 1.3 Delimitations The outsourcing decision-making criteria and outsourcing scorecard are limited to international organisations outsourcing requirements and other public-sector organisations. 1.4 The Importance of the Paper The paper derives appropriate outsourcing decision-making criteria which form the basis of a scorecard for identifying services that can be outsourced successfully. The outsourcing criteria are applicable to the UN and should be useful to similar international organisations. 2.0 LITERATURE REVIEW

The paper develops an outsourcing decision-making scorecard for international public sector organisations through the application of appropriate outsourcing criteria derived from the research. Being non-profit making, international organisations use outsourcing as a tool to maximise efficiency and create funds for vital, but non-funded activities (Goolsby, 2002b). However, this strategy requires that top management possess a variety of negotiation and relationship management skills, as well as strategic planning expertise and the ability to identify and apply suitable decisionmaking criteria. In identifying criteria that guide organisations in outsourcing decision-making it is necessary to first recognise whether or not outsourcing is appropriate. To achieve this, an organisation would be required to go through a proper decision-making process (Goolsby, 2003) since applying the right decision criteria determines the success or failure of a project. Therefore, before embarking on an outsourcing engagement several criteria must be addressed as part of the decision-making process. These various criteria, derived from several sources and commonalities, provide important indicators, categories, attributes, and standards for the development of an outsourcing decision-making scorecard (Eger et al, 2002). 2.1 The Decision to Outsource Making the right decision should come from a basic understanding of an organisations aims, objectives and requirements as well as their vision. Therefore achieving lower cost is of little significance if the principal goals are not attained. In stressing the importance of decision-making Barrett & Baldy (2003) stated that the effectiveness of decisions is determined predominantly by the quality of the decision-making process used to generate it and it is usually best for top management to define the decision-making model to be adopted. Outsourcing or in-sourcing decision should be based on a solid business case analysis of alternatives. When deciding whether to outsource, Bendor-Samuel (2001b) recommended that organisations should first assess the value outsourcing can generate, while Alexander (1996) indicated that getting value through the application of incentives, quality management through partnership outsourcing should be the main goal. Swindon (1998) and M2 presswire, (2003) cautioned against overzealous adoption of private-sector practices in public management. Osborne & Gaebler (1993) further suggested that solutions that work for the private sector may not necessarily work for non-profit making organisations. Cloete (2002) was of the view that an outsourcing decision is driven by the benefits and risks of outsourcing, therefore proper care must be taken to ensure that the right decision is reached. Bragg (2006) added that certain risks must be taken into consideration and mitigated. While Patterson (2005) mentioned that the application of formalized risk management will reduce the risk exposure. Hence, risk identification is essential in outsourcing decision-making.
224

2.2 Outsourcing Criteria In identifying outsourcing criteria, it is necessary to recognize whether or not outsourcing is appropriate. To achieve this, several background questions must be answered. For example, once it has been determined that the use of external resources may be an option that would meet business needs, thereafter a thorough cost-benefit analysis should be conducted because it considers specific cost-benefit criteria (Hamer, 1988 & Longworth, 2005). It is also important to provide a simple criteria template for an outsourcing versus in-sourcing cost-benefit analysis. In doing this, criteria, priorities and weights must be determined for each project depending on its individual circumstances. It is also vital to recognize the full costs of external service providers because on many occasions costs are not explicitly seen, but are accounted for in fees charged by a service provider. The recognition of these embedded costs is necessary in order to make a consistent comparison between options (Eger et al, 2002). In the past, though a provider with the lowest cost was usually a justifiable choice, however, presently that notion has changed. Instead, organisations have recognised that selecting the right outsourcing partner is a key to maximising the effectiveness and value of a relationship, hence outsourcing success. Although, non-profit making organisations do not usually consider financial gains as criteria for outsourcing, however, low priced providers are considered on condition that other selection criteria are met. Additionally, political factors should be considered in a decisionmaking by international public sector organisations. A political factor for example can involve outsourcing to less qualified local service providers to empower the local populace and encourage capacity building. In essence, criteria used to reach a decision invariably determine service providers selection. Examples include performance, measurements, incentives, policies and procedures. These are crucial to the success of an outsourcing project because they analyze strengths and weaknesses and evaluate alternative options for making changes and usually form the basis for a decision-making scorecard (Eger et al, 2002). Qualitative criteria such as time, staffing and business value should also be considered. Since the success or failure of a project depends on the choice of decision made, therefore, before embarking on an outsourcing engagement, several criteria must be addressed because proper decision criteria aid in prioritizing and developing successful programmes and projects (Deuser, 1996). These various criteria, derived from several sources and commonalities provide important indicators, categories, attributes, and standards for the development of an outsourcing decisionmaking scorecard (Eger et al, 2002). The derived scorecard will consist of questions that are intended to assist decision makers in determining if a potential for relationship-building exists. Most importantly, decision-making criteria should be flexible, realistic and applied on a case by case basis. While the challenge is to integrate such diverse criteria to arrive at the best decision (Reid & Christensen, 1994). In conclusion, the criteria identified in this research form the basis for development of a decision-making scorecard. 3.0 DATA COLLECTION AND METHODOLOGY In order to attain the objective of this research, it is necessary to review some decision-making criteria utilized by the groups and to determine whether a correlation exists between them and the scope of these relationships. These important criteria include risks, establishment of goals and objective, barriers to outsourcing, the use of experts, provider selection, benchmarks, establishment of appropriate policies and procedures and the evaluation of a service providers performance. Fifteen service providers, fifteen private-sector manufacturing firms and ten international organisations were surveyed and interviewed. The international organisations, represented by 10 United Nations peacekeeping operations cover the major geographic areas (Middle East, Africa and Europe).
225

The sample size for the manufacturing firms and service providers covers the target groups and all the main areas of service provision that is small, medium, and large and therefore form a good representative sample of the groups. The survey was carried out through personal interviews, telephone interviews and questionnaires. Purposive sampling, a non-probability sampling method, was used to ensure equal representation. 4.0 PRESENTATION AND INTERPRETATION OF DATA

Outsourcing decision-making criteria are derived from the evaluation of data abstracted from the survey and interview findings of 10 international organisations, 15 service providers and 15 manufacturing firms. Outsourcing trends, associations and relationships between the groups are analysed and the section concludes with identification of outsourcing criteria from the evaluation of the survey findings. The result of the survey indicated that factors that may influence an outsourcing decision are quality, reputation, and operational excellence. The groups indicated that financial stability, operational excellence, cost, and quality as equivocally the second most important factors in selecting a provider (Figure 1). Other essential criteria include institutional background, goal and objectives, outsourcing barriers, risks, provider evaluation, measurements, establishing proper policies and procedures. These are vital aspects of an outsourcing arrangement and are essential criteria in the development of an outsourcing scorecard.

Figure 1:

Outsourcing criteria - Provider selection (Source: Data collected)

Strong correlations exist between the groups regarding cost reduction which is considered as being a vital criterion for outsourcing decision-making (Figure 2). Though the international organisations are non-profit making, cost reduction is necessary because of the need to maximise limited funds. Furthermore, an association was found across the three groups regarding their goals and objectives for outsourcing signifying that there was no difference in the outsourcing motive, regardless of whether the organisations are profit or non-profit making. However, capacity building and performance improvement rather than profit is of major concern to international organisations.
226

Figure 2:

Outsourcing criteria - Goals and objectives (Source: Data collected)

Furthermore, there is similarity in outsourced services across the groups. However, services outsourced by international organisations are marginal and limited to specialised maintenance. The probable reason for this may be because they do not have a need for such services or because they are not aware of the value it will bring to their organisations. For example, it may be cheaper to rent than to buy in the short term. Additionally, participation of local providers and host government is essential in humanitarian and relief operations because it encourages sustainability, builds capacity and empowers the local population. Therefore, outsourcing of services to local providers as a peace-building measure is vital and highlights the extent to which international organisations support nation building. Hence barriers impeding the outsourcing of such services should be eliminated. Fear of failure, inflexibility and insufficient research/data (Figure 3) are the major risks encountered by international organisations, thus indication a relationship with the groups in the limited use of experts in the decision to outsource. Since benchmarks evaluate providers efficiency as well as the outsourcing organisations customer-service performance, the international organisations tend to use benchmarks and models that are non-profit driven, while the rest of the groups use those conducive to the profit making organisations. To ensure more effective outsourcing decision-making, benchmarks conducive to profit-making should be used. In addition, the general use of existing policies among the group is a clear indication of the value of institutional history to the group while the application of unique policies and procedures for some projects is an indication that each outsourcing project has different requirements. A further criterion that is crucial to the success of an outsourcing project is measurement. Associations were identified between the measurement styles of manufacturing firms and service providers because of the project dependent nature of their measurements. There were also indications that barriers such as political considerations and labour issue have a positive side in that they may lead to the selection of local providers (Figure 4). These positive barriers should not be eliminated but strengthened to support nation building, though it may impact on quality of output. Therefore, it is important to weigh what best fulfils an outsourcing objective in deciding which barriers to eliminate or manage.

227

Figure 3:

Outsourcing criteria - Risks (Source:

Data collected)

Figure 4:

Outsourcing criteria - Barriers (Source: Data collected )

The outsourcing decision-making criteria outlined above are essential elements that have to be considered before a decision to outsource can be made. The criteria identified are the institutional background of an organisation, outsourcing barriers, risks, goals and objectives as well as criteria relevant to provider selection, evaluation, and peace-building. Efficiency and effectiveness are also very important criteria identified. This effort supplements and ensures completeness of the outsourcing decision-making criteria for the purpose of developing a decision-making scorecard for international public sector organisations. The scorecard serves as a benchmark for objective
228

measurement of performance for both providers and outsourcing organisations and determines if a potential for relationship-building exists. If this potential does not exist, the service under consideration should probably not be outsourced. However, if a potential for relationship-building does exist, the remainder of the scorecard guides a decision maker in identifying specific issues that might need to be addressed before outsourcing begins or that may prove to be barriers affecting the success of outsourcing a service. The scorecard is derived from a general set of decision-making criteria and supports the research hypothesis. 5.0 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS A survey of outsourcing practices of manufacturing firms, service providers and international public sector organisation was conducted and outsourcing decision-making criteria identified which encompass requirements for non-profit making and peace-building international organisations. This was attained by considering essential outsourcing criteria applied by the private sector firms as well as factors influencing outsourcing decision-making by international organisations. In addition, the institutional backgrounds of the organisations, outsourcing barriers, risks, goals and objectives, provider selection and evaluation as well as peace-building criteria were also considered. This effort supplements and ensures completeness of outsourcing decision-making criteria which should be flexible, realistic and applied on a case by case basis. The research established that risks, establishment of goals and objectives, barriers to outsourcing, the use of experts, benchmarks, policies and procedures and the evaluation of a service providers performance are important criteria that constitute a basis for developing an outsourcing relationship and scorecard. The result of the survey further indicated that in the case of non-profit-making international organisations, service provider selection is influenced by different criteria such as operational excellence and reputation, strategic direction and compatibility, financial stability and costs as well as political considerations. Finally, an all inclusive, general set of measurable criteria that can be used as a decision-making tool and an aid in prioritizing and developing successful outsourcing projects for international organisations was identified. The following recommendations are made: Establish and analyse quantitative and qualitative criteria because it indicates which decision is most effective and state the reasoning used in reaching that decision; Use risks, costs, schedule, quality, scope, change management and qualitative criteria such as time, risks, staffing criteria to ensure successful project delivery; Analyse, resource limitations, in-house skill sets and knowledge, and expected performance and outcome measures because they are important factors in making the outsourcing decision; Ensure that the outsourcing relationship begins with a set of measurable objective criteria because the goals and objectives of outsourcing are vital in any outsourcing decisionmaking; Synthesize various decision criteria and the relative value of each alternative assessed; Integrate diverse criteria to arrive at the best decision; and Ensure that decision-making criteria are flexible, realistic and applicable on a case by case basis;

229

REFERENCES Alexander, K. 1996. Facilities Management: Theory and Practice. London & New York: Taylor & Francis Group. Barrett, P. & Baldry, D. 2003. Total Facilities Management. Oxford: Blackwell Science Limited. Bendor-Samuel, P. 2001b. How to evaluate which business function to outsource. BPO Outsourcing Journal, September. 6 pp. Bragg, S. 2006. Outsourcing: Selecting the correct business unit, negotiating the contract and maintaining control of the process. 2nd Edition. New Jersey: John Wiley & Sons, Inc. Cloete, C. 2002. Introduction to Facilities Management. Sandton: South Africa Property Education Trust. Deuser, C. 1996. Decision Criteria for Developing Saltcedar Management Programmes. Saltcedar Management Workshop, June 12, 1996, http://www.invasivespecies. gov/ education/workshopjune96/Thesis11.html (Access: 01/07/2005). Eger, R, Knudson, D, Marlowe J & Orgard, L. 2002. Evaluation of Transportation Organisation Outsourcing: Decision-making Criteria for Outsourcing Opportunities. Midwestern Regional University Transportation Center, College of Engineering, Department of Civil and Environmental Engineering, University of Wisconsin, Madison, Project 01 03, October 2002. Goolsby, K. 2002b. The real value of outsourcing to achieve process improvement. OutsourcingJournal.com, July. 4 pp. Goolsby, K. 2003. Troublesome findings from Outsourcing Centres study on decision-making process. OutsourcingJournal.com, October. 8 pp. Hamer, J. 1988. Facilities Management Systems. New York: Van Nostrand Reinhold. Longworth, S. 2005. Outsourcing: A Decision of Trust. Executive Technology Club. Master of Information Technology Program. http://technologyexecutivesclub. com/Articles/outsourcingA/outsourcingADecisionofTrust.htm (Access: 04/03/2006). M2 Presswire, 2003. UN Fifth Committee reviews proposals to increase profitability of revenueproducing activities by United Nations; Non-payment of assessed dues also considered; Exemptions suggested for 10 member states said to face financial hardships. M2 Communication Ltd. 9 pp. New York: United Nations. Osborne D & Gaebler T, 1993. Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public-sector. New York: Penguin Books. Patterson, D. 2005. Improving Project Decision-making through Risk Management, White Paper, Risk Management. p. 472. Swindon G, 1998. Outsourcing decision-making. Civic.com. March 16, 1998.

230

INVESTIGATING A TOOL FOR MODELLING THE SUPPLYSIDE PROFILE OF SOUTH AFRICAS BUILT ENVIRONMENT PROFESSIONALS (BEPs)
Matyila N.A and Malete G.
Built Environment Construction Competency Area, NMatyila@csir.co.za 0128414259 Quantity Surveying and Construction Management, NMMU T Logistics and Quantitative Methods, GMalete@csir.co.za 012 841 4316 Computer Science, UP

Purpose of this paper - This paper seeks to investigate the supply-side of Built Environment Professionals (BEP) in South Africa and proposes a model for capturing BEP supply-side data. Methodology - A desktop study was carried out to review the status of the supply-side pipeline of the BEPs. In this regard, statistical data on mathematics and science pass-rates; tertiary enrolment and graduation trends of built environment (BE) courses; registration; and graduate output data was requested from the Department of Education (DoE), the Higher Education Institutions(HEI), and the six statutory BE councils, and also retrieved from the Labour Force Survey (LFS). The data, covering a period of five years, was analysed on the basis of race, gender, age, province, profession, qualification type and category of registration to model the entire supply-chain of the BEPs (i.e. from secondary school to the job market). Findings - The study reveals several gaps/conflicting information with regards to the nature of data, namely: The statutory councils are inconsistent in capturing time-series and demographic data and also fail to capture data on international and national migration; There seems to be little correlation between graduation data provided by the HEI and the numbers of registrations in the candidate categories of each of the statutory councils; and The LFS does not explicitly capture data on all six BE professions. This paper argues that the above- listed problems could be minimised if all data sources were to use the same format to capture quantitative data on South Africas BEPs. Value - The implementation of the proposed data-capturing model could: Help create a database which could be continuously monitored and updated, as well as provide a supply-side profile of each BE profession which may be utilized by stakeholders for a variety of purposes including strategic planning; and Provide policy-makers with a better tool to monitor and evaluate the impact of policy interventions in the professions. Keywords: Data capturing, built environment professions, supply-side profile, South Africa.

231

1. BACKGROUND SUMMARY The construction and infrastructure sector are generally recognised as the main role players in the South African economy. For example, the deputy-president of South Africa, and head of Joint Initiative on Priority Skills Acquisition (JIPSA,2006) task team, Mrs Phumzile Mlambo-Ngcuka, recently argued that the massive infrastructure programs of about R400 billion necessitate the use of appropriate skills in order to create jobs and end poverty in South Africa. In other words, adequate skills are required for the successful implementation of high-end technology projects. The JIPSA joint task team further notes that: industry is experiencing skills shortage with regard to managerial, professional, technological and technical fields. Because of this, the JIPSA-joint task team has set a target of 1000 additional graduates to a total of 2400 of professional engineers per year for the next four years, the majority of these being electrical, mechanical and chemical engineers. The JIPSA task team also suggest an increase of 35% of architects and 65% quantity Surveyors to keep pace with the expected long term construction phase (JIPSA,March 2006). The public release from Council of the Built Environment (CBE, 2006) on 8 June 2007 also confirms the need to increase Gross Domestic Product (GDP) by 6% role of BE profession in meeting SA economic development needs for the targeted period 2004-2009. The construction industry therefore is obliged to promote, increase professional skills that can deliver high technology projects and meet the targets set out by Accelerative Shared Growth Initiative for South Africa (ASGISA). The need to determine current professional skills trends is required to indicate any progress made to meet the target set for 2009 . The Centre for Development and Enterprise (CDE), when informing the South African policy in regards to proceedings of the workshop in addressing skills; has highlighted that Government programme of action in an attempt to address capacity constraints. The Governance and Administration Cluster in the cabinet has initiated four major sub-programmes aimed at assessing the skills shortage in the public sector piloted by Department of Public Service Administration (DPSA), Department of Justice (DOJ) and Department of Trade and Industry to be implemented through the rest of Government(Amanda Jisting, skills revolution 2007).This background forms the basis for narrowing the focus of the study with the aim to review and develop a comprehensive capturing tool that will assist in analysing correlation between HEI and Industry data base of professional skills development output in South Africa. 2. INTRODUCTION

The emphasis on the shortage of BEPs in South Africa requires an understanding how data is captured to quantify and qualify perceived skills shortages. The need to verify whether data capturing methods are accurate, and implementation to develop strategies aimed to improve methods of data capturing. A strategic approach to investigate the professional skills within sources that capture information relating to BEPs was engaged for this paper. The data collection and assessments approach from official sources is expected to determine any shortage and appropriate interventions. This study mainly focuses on the collection of enrolment information from official sources, such as DoE, HEI and BE Statutory Professional Councils. It has been considered that unregistered BEPs are not captured in the statutory councils data base. However if not registered in terms of the relevant Built Environment Professions Act 43 of 2000 might not perform any kind of work identified for any category of registered persons, but persons are allowed to perform identified work if such work is performed in the service of, or by order of and under the direction, control,
232

supervision of or in association with a registered peer entitled to perform the work identified and who must assume responsibility for any work so performed. To ascertain people practising within the sector but not registered with statutory BE councils, review of Statistic SA Labour Force Survey data to investigate on occupation and industry classification. The BEPs are mandated by law to register within BE statutory professional council to promote legal and competent practise to the public. BE sector in this respect requires to establish a pool for both of registered and unregistered professionals. Reviewing establishment and trends in the BE sector. The establishment of CBE sector governed by Act No 43 of 2000 in November, reflecting six statutory professional councils, namely: 1. South African Council for the Architectural Profession (SACAP), established by the Architectural Profession Act 44, 2000; 2. South African Council for the Project and Construction Management Professions (SACPCMP), established by the Project and Construction Management Professions Act 48, 2000; 3. Engineering Council of South Africa (ECSA), established by the Engineering Profession Act 46, 2000; 4. South African Council for the Landscape Architectural Profession (SALCAP), established by the Landscape Architectural Profession Act 45, 2000; 5. (South African Council for the Property Values Profession (SACPVP), established by the Property Values Profession Act 47, 2000; and 6. South African Council for the Quantity Surveying Profession(SACQSP), established by the Quantity Surveying Profession Act 49, 2000; All six statutory councils are mandated by law (Act 19, 27 Gov Gazette) to administer professional registration and promote codes of conducts within the profession in order to assist stakeholders with any concerns or constrains arising within the industry particular to skills shortage and transformation equity issues. The councils data base, therefore, should determine the possibility of meeting targeted ratios and government transformation plans. All data obtained should describe the supply-side of BE professional skills in South Africa by determining the quantity and capacity of professional skills by demographics and migration patterns. A prediction for future skills requirements should be determined by using indicators from data obtained in previous years. When designing the data base for capturing professionals, consideration should be taken in regards to supply, available in the data base and out side the data base. The primarily focus in investigating the tool for modelling the supply-side was to discover the initial establishment growth potential from secondary schools level using metric results outputs for learners who passed maths and science with at least symbol C. The focus in these particular two subjects was influenced by their requirements in setting-out the criterion for entering University in the Engineering and BE faculties. An assessment to matriculates who did not obtain exemption but passed who may enrol in career preparation programs with HEI was also reviewed from DoE data. The data base for tertiary institution level from first year of enrolment to the graduation output level was reviewed. This assessment will assist in identifying the number of students who enrol in the BE faculty in each year and the use of graduate out put ratio in each year will reveal any drop outs that occurs in each year. The graduates out put enrolments will assist in determining numbers of graduates who enters the sector or who do not register with statutory council annually.

233

Data assessment proceeded with statutory BEP councils, investigating the existing capacity and quantity of professionals by demographics and categories of registering. Investigation of professional categories was to determine skills capacity at different levels. Data assessments also review academic registration requirements to investigate any constraints and impediments that may result in graduates not to register with professional councils. Further attempt to map the BEPs movements nationally and internationally was reviewed. The unobtainable data from official sources on unregistered professionals within the sector was reviewed using bi-annual LFS obtained from Statistics SA reviewing: BE Occupational Classification. BE Industry classification. High quality emphasis were implemented for consistency of information, accuracy and expertise of codes of conduct in obtaining the correct information were exercised. Data collection at initial attempt was stimulant and challenging in regards to hypothesis of relevancy for the study requirements as the sources capture their information in their manor. The diverse administrative irrelevance resulted in highlighting the specific data required for this paper. 3. DATA REQUEST FROM THE SOURCES 1.BE Professional Council data requirements: Annual data for each year 2002-2007 Registration category Registration requirement per category Race break down Gender break down Province break down Age break down 2.Higher Education Institution data requirements First year enrolment data broken by: Annual data for each years 2002-2007 Institution name Faculty name Number of first year enrolments broken by Built Environment profession Built Environment qualification Gender breakdown Race breakdown Graduates enrolments broken by: Built Environment profession Built Environment qualification Gender breakdown Race breakdown 3. Secondary Schools Data: Annual Data for each year 2002-2007 Gender Breakdown Race Breakdown Provincial Breakdown Subjects Wrote Number of Passed

234

There were irregularities and mismatch on data received from some sources therefore a template was design to illustrate the capturing format for the research requirements as to prevent any imperfect match and irregularities that disabled the assessments to review BEP skills pipeline . The templates issued to the courses are shown in tables 1, 2 and 3 below:

235

Template For matriculates in Mathematics and Science from: Year 2002 -2007
EXAMINATION DATE PROVINCE RACE GENDER NO ENTERED EXAMS ACTUALY WROTE PASS WITH ENDORSEMENT TOTAL PASS PASS PERCENT

Table 1: Template for Data requested from DOE Template for Higher Education Institution enrolment and graduate out put from :2002-2007
PROFESION Quantity Surveying Gender: Male Female Race: Black White Coloured Asian Architect Gender: Male Female Race: Black White Coloured Asian Landscape N.DIP B.TECH M.TECH BACH.DEG HONOURS MASTERD DOCTRATE OTHERS TOTAL

236

Architect Gender: Male Female

Table 2: Template for Statutory Built Environment Councils:2002-2007

Registration Category CANDIDATE: Candidate Arch Technologist Male Female Candidate Snr Arch Technologist Male Female NON PRACTISING: Male Female PROFESSIONA L: Pr Arch Technologist Male Female Pr Arch Draughtperson Male Female Pr Snr Arch Technologist Male Black White Coloured Asian Other GAU KZN EC FS MPM NC WC NP NW Oth er To tal

237

Female Professional Architect

Table 3: Template from Statutory as applied to: SACAP 2002

238

4.

KEY FINDINGS OF PROGRESS ACTION ON BEPS DATA ASSESSMENTS

4.1 DOE data base The first attempts on data obtained contained numerical, administrative errors and some sources never forwarded their data. A second attempt was engaged; requesting official sources to submit their data for the study requirements. Data was received and assessments done to all information highlighted from data requirement. There were constrains discovered that might have prevented graduates to register with professional councils. First instance is the diversity criteria in accreditation of degrees by the Higher Education Qualification Council (HEQC) and BE statutory councils evaluated before 2000 in universities and universities of technology by SAQA act of 1995. This means there are courses provided by HEI but do not promote professional development in the sector or either lead to register with professional councils. Second instance assessments on data received from DoE on Secondary Schools do not specify the names of the subjects wrote by learners. The interest in reviewing maths and science output ratios and trends could not be achieved. Data only identify the matriculates: who failed, pass with endorsements and pass without endorsement. The data received do not have the gender and race break-down to assists analysis of transformation trends. The data provided from DoE for HEI do not have number of students but ratios where the derivatives are not described and determined because of the absence of key legend. Data contains distinctive names for courses not classified according to faculties and therefore impact to match these courses under BE faculties could not be reached. The alternative attempt was to assess and analyse data from the Human Science Research Council (HSRC) to investigating the supply side. HSRC accessible data do not meet all the requirements of the study, data from 2003 to 2007 is not accessible. The data is classified by historical disadvantaged and historically advantaged institution and is not explicitly defined in terms of faculty names only state engineering faculty which might not fall under BE sector. These constrains therefore lead to the collection of data direct from all HEI that offer BE courses and Engineering courses. 4.2 HEI data collection and assessment The requisition letter accompanied by designed template was provided to all HEI with BE faculty. There were delays in obtaining data; some HEI never forwarded their data. The data received from most sources meet requirements and other data have gaps meaning there is out standing information from data submitted. The assessment on data collection is as follows: Assessment summary of data obtained on both HEI and Professional Councils Data Key Legend Green means data meet all requirements.

Blue means data means some requirements. Red means data does not meet requirements/ Data was not received.

239

Assessment summary of data obtained from HEI: Race/Gender Years Qualification Enroll /Grad BEP discipline

Notes

Tertiary Institutions data received University of Pretoria University of Cape Town

Data meets requirements.

Data meets requirements. Data meets requirements.

University of Kwazulu Natal Cape Peninsula University of Technology Vaal University Technology Central University Technology. of of

Data meets requirements. Data meets the requirements Data meets the requirements. B-Tech is not offered in this institution. No further follow up. Data received is from 2004-2007. No further follow up. Data received is for Enrolments and Building studies only. Awaiting for Graduation and Architecture data. Discussed data request again on 06/11/2007. Awaiting data. Awaiting data. Following up with the institution.

Walter Sisulu University of Technology.

University of Free State

Tshwane University Technology

of

University of North West

University of South Africa

Table 4 HEI data

240

4.3 BE statutory councils data collection and assessment The data collection and assessment for current available professional skills from statutory councils registrations candidate and professional categories was reviewed. This approach describes the quantity and capacity of professional skills revolution trends in each year. The data focuses in the collection of information with regards to study requirements referred to statutory council data requirements. A narrow focus to analyse predominant aging of skills to assist reviewing mentorship programme implemented by DPW in replacing aging and transfer of skills. Professional councils could not provide age information hence identity numbers are captured when registering. The attempt to review programmes set to overcome skills shortage such as internship programmes, mentorship programmes could not be reach. Below is the assessment summary report for data received from Statutory BE professional Councils: Category Race/Gen der Qualificati on Year Province Professional Councils received data Notes No data 2002 2004; 2005/6 is combined (Snapshoot). No race and gender interaction. No provincial breakdown. Following up done with the council Data not available at council: Data dot not break 2002 -2006 data. No race and gender interaction. No provincial breakdown. 2007/8 is combined. No further follow up. Data not captured for provincial breakdown. No further follow up. Data meets all our requirement. No further follow up. Data meets all our requirement. No further follow up. Data not captured for provincial breakdown. Data not captured for race and gender Interaction at council. No further follow up.

Architects

Quantity Surveyors

Property Valuers Project construction managers Landscape architects Engineering

Table 5 Council's data

and

SACPCMP: No indication on qualification requirement in the registration form. Registration requirements indicate different registration criterions that one may register under. http://www.sacpcmp.co.za/registration. SACQSP: The council has qualification requirements criteria and has highlighted institutions that are legible to register with the council (http://www.sacqsp.org.za/registration/education). ECSA: Qualification requirements and registration criteria is identified in the data base. (http://www.ecsa.co.za/ registration/legal/ requirements).
241

SACLAP: There is not much information in the accessible data base. The qualification requirements and registration requirements are not assessable; therefore request to clarify with the availability of such information was submitted to the registerer highlighting required data (http:// www.ilasa.co.za). SACAP: The qualification requirement is provided in the registration form and the registration requirements are highlighted (www.sacapsa.com/registration,conditions).. SACPV: The qualification requirement criteria are set and registration requirements are highlighted (http://www.sacpvp.co.za/registration/requrements). 4.4 Data collection and assessments from STATS SA: Further assessments done for unregistered professionals in STATS SA data base, investigating unregistered BEPs using LFS data of correspondents in South African Standard Classification Occupation (SASCO), International Standard Classification Occupation (ISCO) and International Standard Industry Classification (ISIC) using LFS. The LFS is a bi-annual survey , first survey conducted in September 2001 and latest done in March 2007 on approximately 30 000 households in each of the nine provinces. This is done to discover in which extent industrial classification assist to identify BE professionals.Two possible approaches to use this LFS data were to: Estimate the employment levels by the qualification and job type of the respondent (occupation); Use the respondents qualification and the classification of the sector in which they work (Industry). 4.4.1. Investigating BE professionals using Stats LFS based on International Standard Classification of Occupation (ISCO) and South African Standard Classification of Occupation SASCO indicates: In both standards BE professionals are classified under highly skilled occupational groups classification describes Legislative, senior officials and Managers as category 1, 2 for professionals and 3 for technologists. Professional occupation group 2 branches into various sub division, but the narrow focus was to identify BEPs identified in code (214) for Architects, Engineers & Related Profession. This code have sub division branches of (2141),(2142) etc defining the names for each profession that for each code. See occupational classification by names and their codes below:

242

BE Professional occupational classification structure:

PROFESSIO NALS (2)

PHYSICAL, MATHEMA TICAL & ENGINEERI NG SIENCE PROFESSIO NALS (2)

ARCHITEC TS, ENGINEER S& RELATED PROFESSIO NALS (214)

Architects, Engineering & Related Professionals (2141

Civil engineers (2142)

Electrical engineers (2143)

Mechanical engineers (2145)

Chemical Engineers (2146)

Mining Engineer, Metallogistic & related professionals (2147)

Cartographe r & Surveyor (2148)

Architects, Engineers & related professionals not elsewhere classified (2149)

FIGURE 1 The professional classification for each code and qualifications indicates: List of BE Profession Classification 2141 2142 2143 2145 2149 Architect, Engineer, Engineer, civil Engineer, Surveyor, building electrical mechanical quantity
Architect, interior Architect, landscape Engineer, traffic Engineer, building structure Engineer, civil, building construction Engineer, civil, building structures Engineer, electrical, high voltage Engineer, electrical, electric power generation Engineer, electrical, electric power distribution Engineer, electrical, electric power transmission Engineer, transmission, electric power Engineer, electrical systems Engineer, airconditioning Engineer, mechanical, airconditioning Engineer, mechanical, heating, ventilation and refrigeration Engineer, mechanical, refrigeration

Planner, traffic

Engineer, civil, construction

Engineer, civil, structural Engineer, civil, highway and

243

street construction Engineer, civil, road construction Engineer, civil, aerodome construction Engineer, civil, railway construction Engineer, civil, bridge construction

Engineer, dredging Engineer, hydrology

Table 6

There are however a number of definitional complexities that make direct comparisons with the statutory council classification and LFS data difficult to be analysed. In first instance grouping of other occupation and associate professionals based on the International Standard Classification of Occupations (ISCO).There are some ISCO categories that have direct counterparts within BE (such as Architects, Quantity Surveyors and Civil Engineers) there are professions within BE that have no direct ISCO counterpart (Property Values and Project and Construction Manager for example). In addition some of the ISCO categories cover professions that would not fall within the BE sector. (a)Profession within BE sector but have no direct ISCO counter parts Property Values, Construction managers and Project managers have no direct codes and occupational classification. There are categories classified under BE profession e.g. Cost Evaluation Engineer, Engineer Production and Engineer planning that matches the names closely but it is not certain that these professionals category perfume the same work for the mentioned professionals. These estimates of LFS data for Property values, Construction and Project Managers can not be either classified or quantify with other disciples due to imperfect match of occupational classification.

? Construction & Project Managers

? Property Values

Figurer 2 (b)Professionals that do not fall under BE sector: The are professionals group classified under the sector but do not belong to BEP , for example professions classified under codes 2142, 2143, 2146, 2147 and 2148 contains professionals that poses qualification name in BE but specialization not in the BE sector. These professionals are using their skills in other sectors e.g. Minerals and energy.

244

(c) BE Profession Mechanical Engineer Electrical Engineer Chemical Engineer Mining Engineer Cartographer and Surveyor

LFS Code 2142 2143 2146 2147 2148

Includes Automotive Engineer Aerospace Engineer Engineer Petroleum and Natural Gas Metallurgist Radioactive Minerals Surveyor Photographic, Topography

4.4.2.In the second instance the industry codes based on the International Standard Industrial Classification of Economic Activities (ISIC). The LFS industry classification uses 3 digit responses to: Name of place of work? What are the main goods and service produced? What are main functions of the place of work? When assessing this data we can identify BE professionals as those employed in Construction (500505) and Architectural, Engineering and other technical activities (882) but we have no guarantee that the work being performed is that of a BE professional. Respondents matching the educational and ISIC classification may, for example be working in the financial or human resource departments but in BE departments. LFS data on industry classification gives higher estimates of BE professionals when compared to data obtained from the statutory councils. When investigating distribution of employment by occupation, since March 2001 only 127 thousand professionals were placed during period 2001 to 2007 but uncertain if only BE professionals are placed in these jobs. Latest results from stats SA describe major contributing industry to new jobs being Community and Personal service up by 127000 jobs, finance up by 126000 jobs and Construction up by 102000 jobs (Stats SA, Media statements 2007). This means growth in employment amongst BE professionals closely matches that of other professions in general of the whole economy. This stimulates concerns pertaining emphasis that construction sector is regarded as main role player on the economy and possibility to fight poverty in South Africa. It is fairly clear that employability in the sector is not at high rate and contributors could be other industries. Below annexure describe resent findings on employment rates per industries and construction sector at 7.5 percent .This place the BE sector at the fifth level of main contributes

Formal employment figures in LFS, March 2007 (Percentage)

245

5.4% 24.4% 17.8%

Minning Manufacturing Utilities

1.1% 7.5% 15.1%

Construction Trade Transport Finance Services

5.2%

23.6%

Figure 3

5. Attempt to Investigate other data base aimed at capturing skills profile 5.1. Department of Labour The review for other sources that initiate the data collection on professional skills where BEPs could be identified. Department of labour Minister on the address on National skills development conference for the route to economic growth 18 October 2007, foreward national skills list for 2007 national master scarcity skills in SA defining the scarce and critical refers to absolute demand of current occupation or specialisation in the labour market . However absolute or relative demand indicators to declare required skills from public sector do not include private sector. The announcement by Department of labour (Johannesburg, 27 November 2007) initiative in creating a mass employment data base that will allow employees to register their skills and compel employers to register all vacancies and job placements. This data base is aimed at assisting government to systematically deal with scarcity skills issues and gaps in the South African work force and attempt to hinder skills placement. The minister of labour (M. Mdladlana, 2007, national skills conference, Gauteng) further highlights the essence of this data base approach in reflecting , identify unemployment and employment trends within a centralised data base and also assist creation of job opportunity. It is how ever not known that the proposed data bases will corporate equity issues, demographics and discernable match of professionals within industries as highlighted by this paper. Rudi Leibrandt data management practice for Sybase raise a concern with this initiation with regards regard to privacy implication. Threat is that companies do not want to reveal areas where they are short of staff. The Deputy General Secretary Dirk Hermann Solidarity Trade Union in SA established 1902, also argues that unions data adamant this approach fears practicability as it will hinder international market and companies from hiring( BY CHRISTELLE DU TOIT , ITWEB SENIOR
JOURNALIST) .

246

6. Conclusion: requirements to implement a new capturing format This paper has highlighted aims and identify impediments in reviewing the available professional skills in the BE sector data base. The sector lack a well-defined and monitored administration data base which depicts each profession by demography, profession criteria, age , map any movements and correlation in respect to HEI, Councils and LFS to profile the BEPs . This paper propose a capturing approach with official sources to capture information in a relevant manner and assist stake holders to develop interventions and policies in BE. The LFS data base should consider the creation of a sub sector division for project and construction managers occupations including Industrial classification of BE profession. Identification of aging of professionals skills population and mapping of future movements of the skills within the sector conversion implementations is required. The proposed data capturing format should ensure consistency with regards to relevance and accuracy of information for professionals in BE sector. The establishment of such database should be highly maintainable and promote an on going capturing of information for demography, patterns, trends of BEP skills supply side, and review contemporary statistical situational analysis for future research. This data base will gather information for human capacity development of professional skills and facilitate competency in regards to accuracy and high quality analysis of relevant data should any predictions emphasis pertaining the shortage of critical skills need to be reviewed. Influence to the creation of discernable match correspondence in occupation and profession is required for LFS with the need to address the mismatch constrains that could result in irrelevancy that deflects the quantum presentation of the pool.

247

REFERENCES 1. Ann Bernstein, 2007, The skills revolution: are we making progress? Center for Development and Enterprise (CDE), pp. 29,54-64. 2. South African Department of Labour, speech by Minister Mr M.M. Mdladlana, 24 September 2007, at the National skills development conference, http://www.info.gov.za/speeches/2007/07101815451002.htm -Defining Scarce and Critical. foreword document National skills list October 2007, pp 6,10,11,12. 3. South African Government, Documents, Acts (Government Gazette no 21818, 1 December 2000). 4. Human Social Research Council (HSRC), http://www.hsrc.co.za/education,institutional review. 5. Ngcuka M, speech delivered by the Deputy President at launch of the JIPSA initiative, 26 March 2006, Cape Town. 6. Ngcuka M, Parliamentary Media Briefing, A catalyst for accelerated growth 6February 2006 7. Council for Built Environment, media release 8 June 2007, The role of BE profession in meeting the South African economic development needs. 8. Statistics SouthAfrica, Labour Force Survey, www.statssa.gov.za/publicationHTML/P0210March2007, pp 9 to 30. 9. Christelle du Toit , Itweb senior journalist, Mass job database on the cards 19 October 2007. 10. BuiltEnvironmentprofessionalcouncildatabase: http://www.sacpvp.co.za/registration/requrements http://www.ecsa.co.za/ registration/legal/ requirements http:// www.ilasa.co.za www.sacapsa.com/registration,conditions. http://www.sacpcmp.co.za/registration. http://www.sacqsp.org.za/registration/education http://www.ecsa.co.za/ registration/legal/ requirements

248

SOUTH AFRICAN PUBLIC PRIVATE PARTNERSHIP (PPP) PROJECTS: A SYSTEMIC MODEL FOR PLANNING AND IMPLEMENTATION
Nyagwachi JN1, Smallwood JJ2
1

Department of Construction Management, Nelson Mandela Metropolitan University, Port Elizabeth, nyagwachi@yahoo.com, Tel No. 041-373 9127 Department of Construction Management, Nelson Mandela Metropolitan University, Port Elizabeth, john.smallwood@nmmu.ac.za, Tel No. 041-504 2551

ABSTRACT Background The problem of lack of infrastructure and service delivery in some parts of South Africa is a serious concern to the populace. Public Private Partnerships (PPPs) have been identified as one of the options for facilitating infrastructure development and service delivery. Purpose of this paper - The purpose of this paper is to disseminate partial output emanating from a PhD research project. The aim of the research is to: contribute to the PPP body of knowledge; further understanding of the performance of PPP projects in South Africa, and develop a systemic model for a sustainable PPP system within the country and beyond. Methodology / Scope - A multi-case study approach was adopted to examine various performance aspects of operational South African PPP projects. The subject scope of the paper includes all operational PPP projects registered in accordance with Treasury Regulations as at December 2005 and other projects that reached financial closure before the Public Finance Management Act of 1999 came into effect. Findings - Empirical evidence from the research indicates South Africa: has developed a robust policy and regulatory framework for PPPs; has an inadequate level of PPP awareness and training, and lacks project management capacity to facilitate deal flow. Furthermore, based on the findings, a systemic model for PPP planning, implementation and monitoring has been evolved. Value This paper contains partial output and makes an original contribution to the PPP body of knowledge in form of a systemic model developed from the structured PhD research process. Other findings include: a robust policy and regulatory framework for PPPs exists; there is an inadequate level of PPP awareness and training, and there is a lack of project management capacity to facilitate deal flow in South Africa. The findings of this research are of relevance to both the public and private sector. Keywords: Construction, Projects, Public Private Partnerships, Systemic Model 1. INTRODUCTION This is partial output for a PhD case study research based on Yin (2006) methodology being conducted at the department of Construction Management, Nelson Mandela Metropolitan University and culminates in the evolution of a systemic model for implementation and monitoring of performance of PPP projects in South Africa and the Southern Africa Development Corporation (SADC) region. The model focuses on the inputs, processes, outputs, outcomes and eventual impact of a PPP process. We live in an age of shifting accountability requirements in asset and service
249

delivery in South Africa and beyond coupled with the ever increasing need for producing results. Theres need to ensure that PPP practitioners are provided with an efficient tool to guide planned activities through a sound process that produces results, outcomes and creates desired impact in society. Furthermore, Hamilton (1996) provides the historical overview of PPP projects in Africa. 2. THE SYSTEMIC MODEL

Purpose The purpose of this new systemic PPP model is to: define the systemic processes that will be used to implement PPP projects; clarify complexity of the causal interrelationships within the PPP system, and provide direction for the current and future researchers into new discoveries. 2.2 Scope The proposed model covers the processes for PPP projects implementation and management of end user outputs over the entire project life cycle. 2.3 Definition A systemic model is a highly visual graphical method of demonstrating relationships between project resources, activities, outputs, and outcomes. Systemic models are planning, implementation and monitoring tools that indicate the resources a PPP project will employ to conduct activities that are intended to produce specific, describable, and measurable changes or results in people, organisations, or the broader physical and social environment (Senge, 2006). The elements of the systemic model in Figure 4 are displayed in individual cells that are read from left to right. The cells depict a set of if-then relationships, for example, if resources are available, then a certain set of activities can be implemented, then certain outputs would be expected-PPP Agreement, and the outputs, if successfully achieved, would then be likely to produce expected outcomes-assets and or services. Finally as a result of successful outcomes, the end user/community would enjoy a better quality of life and feel empowered (Khosa, 2000). 2.4 Why a systemic model for PPPs? Systemic models can be useful tools to demonstrate integrated, systemic planning in relation to the achievement of goals and expected outcome. Often PPP project proposals may not clearly specify the relationship shared among resources, planned activities/outputs, and the benefits expected from the PPP project. The systemic model helps to crystallize the extent to which the PPP project has made a difference or how it can make a difference. The graphic features of a model serve to depict the relationships among components of the PPP project. A model provides a common vocabulary to describe elements of project work in a way that encourages deeper understanding over a variety of projects. Once internalized within the PPP sector, this approach will transform the mindset of PPP managers in the way of solving PPP related problems. According to MacNamara (2006), systemic modeling is a tool that helps to organize the relationship between major project activities and anticipated outcomes. It can be effective in planning a PPP project design, implementing project activities, and evaluating project success. It should be noted that while a systemic model demonstrates the relationships shared by PPP project elements such as expected results changes, or effects derived through project activities, a systemic model does not take the place of performance indicators within a PPP project context,. Relevant performance indicators or criteria must still be developed for each specific PPP project. Relevant evaluation questions, targeted data and data sources, and data collection strategies are essential elements of a PPP projects ongoing continuous quality assurance and improvement. It is acknowledged that
250

models are not static; hence there will be need for continuous review and improvement. The existing generic PPP model is shown in the Figure 1.
National Treasury, PPP Unit

Stakeholders

Accounting officer, Municipality

Project officer

Functional Management System

PPP Project Cycle

PPP Project Team

PPP Processes

Economic Advisors

Inception

Financial Advisors

Feasibility

Legal Advisors

Procurement

Technical Advisors

PPP Agreement

Asset or Service

Figure 1: Existing generic PPP Model Adapted from National Treasury, PPP Unit website.

2.5 The status quo The current PPP structure is governed by both the Public Finance Management Act (1999) and the Municipal Finance Management Act, MFMA (2003). Under the current arrangements, the National Treasury has evolved a generic PPP project life cycle for national and provincial governments and the Municipal Finance Management Acts PPP regulations to guide the implementation of PPP projects. This existing model follows the approach developed by Grimsey and Lewis (2004). 2.6 Project Inception
251

According to the Gazette Notice (Government of South Africa, 2005), only the accounting officer or the accounting authority of an institution may enter into a PPP agreement on behalf of that institution. Clause 16.3.1 states as soon as the institution identifies a project that may be concluded as a PPP, the accounting officer or accounting authority must in writinga) b) c) d) 2.7 Register the PPP with the relevant treasury; Inform the relevant treasury of the expertise within the institution to proceed with a PPP; Appoint a project officer from within or outside the institution; and Appoint a transaction advisor if the relevant treasury so requests. Shortcomings - The missing link

The Treasury regulations, which provide policy direction for the implementation does not make any mention about the following: a) Project management competency levels required for both the accounting officer, institution or officer responsible for implementing the PPP project; b) The appointment of the project political champion; c) Appointment of a PPP project manager; d) Appointment of an independent PPP project auditor; e) The establishment of the project management office and systems, and f) PPP education and training It is clear from the current structure and policy arrangements that an accounting officer is responsible for PPP agreement management and that an appointed project officer operates in a systems vacuum to deliver important projects worth millions of rand. Further, the issue of a PPP project champion and independent PPP project auditors is not addressed. The need for a project office and associated systems is also lacking as well as the policy direction on PPP education, training and awareness. Extensive review of related literature has been conducted on the broad aspects of PPP implementation. However, there is no evidence as to how PPP implementing agencies are supposed to address above issues. However, interestingly, the Municipal Finance Management Act (Government of South Africa, 2005 :) makes clear provision for the following: competency levels for financial officials; resources or opportunities for training of officials by the municipality, and external intervention by the National Treasury in training of officials. The forgoing issues constitute the missing link in the existing model for PPP life cycle process. The development and application of the new PPP systemic model intends to fill this gap. 2.7 The proposed PPP model Key Actors

The proposed model consists of the following added functions besides the generic ones as depicted in Figure 3. 2.7.1 The political champion This function is targeted to be at the chief executive level of Mayor or Member of Executive Committee and will provide input towards political support and broader stakeholder consultation relative to the PPP procurement. This role should be seen as a unique active role as opposed to the passive generic role of politicians, when it comes to implementation of projects of this nature. 2.7.2 The PPP project manager This will be a well rounded and experienced person in PPP projects policies, procedures and processes. The PPP project managers principal responsibility will be to deliver the project end252

item, the asset or service within specified objectives or level of investment, schedule and risk allocation. Though responsibilities are likely to vary, they will usually include: planning, organizing and controlling project resources; selecting and organizing the project team; interfacing with stakeholders, monitoring project status, identifying technical and functional problems, solving problems and closing the project. The PPP project manager should establish a fully functional institutional framework consisting of a project support office, staff and relevant infrastructure. He should have clearly defined roles and tacit authority to manage the PPP process from inception to closure -PPP Agreement during the development phase. 2.7.3 PPP project auditor The PPP project auditor will establish and administer project monitoring procedures during contract negotiations and implement them during operation to ensure fulfilment of quality related requirements for the asset and or service. The overall responsibilities encompass raising awareness of quality and instituting means for improving PPP operations to meet desired goals. 2.7.4 PPP Training & Awareness The solution of PPP related problems in South Africa and the SADC requires a mindset change by PPP actors from traditional systematic thinking to systemic thinking. The problems must be viewed from a broader real world context. PPP actors must create learning organizations to view issues from a systems perspective or viewpoint. System thinking employs the concept of a system: an organized whole in which parts are related. By continuous training and creating awareness, the model will contribute the creation of a PPP friendly environment that is supportive of the whole process. The slow deal flow is due to several factors, both internal and external to the PPP delivery system, which includes lack of modeling of risk (Wibowo & Patria, 2007). 2.7.5 Motivation for the new model Figure 5 shows the new systemic PPP model which is based on systems theory developed in the 1950s and popularized by (Senge, 2006). The model adopts systems thinking viewpoint, where role players are supposed to see the broader picture of ongoing, reciprocal relationships (Andrew, 1999), which a PPP project may be exhibiting. One of the core impediments to systems thinking approach in PPP processes is lack of project management expertise. The new model proposes to encapsulate a fully fledged role of a qualified project manager, complete with an integrated project management system in the delivery processes. The project management system envisaged is rooted in the following simplified systems engineering flow chart, figure 2. The model functions are performed in parallel and are iterative manner.
Need State Problem Options Model system Test System Output

Figure 2: Generic Systems Engineering Flow Chart

253

PPP Unit

Policy reforms

Champion

Accounting Officer

Project Charter

Stakeholders

Project Manager

Establish PM office (staff & infrastructure), define clear roles (SACPCMP), provide tacit authority & establish training & awareness unit.

PM System

Organization structure, information processing (PMIS), standards and procedures (PMBOK)

PPP Project Cycle

Project Management Processes

Project Advisors Economic

PPP Cycle

Inception & Planning

Organizing & Controls

Project Closure

Inception Data Analysis PPP Project Monitor

Research Support (Universities)

Financial

Feasibility

Performance Measurement Legal Tender

Annual Reports

Compare
Technical Agreement

Actual Performance

Review Indicators
Asset or Service

Adequate

Planned Performance

Figure 3: New Systemic PPP Model

254

Resources/Inpu In order to accomplish the set of activities the

Activities In order to address the problem of lack of infrastructure and poor service delivery in some parts of South Africa and other SADC countries, the following activities relative to PPP projects will need to be accomplished.

Outputs
Once accomplished these activities will produce the following

Outcomes
To accomplish the set of activities the resources listed will be required

Impact In order to accomplish the set of activities the resources li t d ill b

Policy Reforms

Tendering
Legal framework

Agreement
Manage PPP

Finance

Define objectives

Appoint PM

Alert bidders

Schedules PPP Project PPP Project PPP Auditor Transaction

Identify options Appraise options Select options

Initial design Detailed design Legislation

Institutions

Project Office

Information
RFQs Pre-qualify Short listing

PM System
PPP Auditor Monitoring

Monitor contract

Asset Review PI
Review reform Service Better life

Operationalise

Database
RFPs

Public Entity

Tenders Private Entity Evaluation

Close Negotiation Rene w

Award contract

Figure 4: Model Systemic Phases and Parallel and Linked Tasks

255

+ Appoint PPP Manager + + Establish Institutions + Regulatory framework + + Establish Team + + shortlist & +negotiate tender Tender process + + + Establish Policy + + + Recuit advisors + + + Investment level +

Appoint Agreement Manager + +

+ Manage Contract + Manage risks + + Development + +

+ Contract + Agreement + + Direct Procurement +

Performance Indicators

Asset or Service + + Monitor Contract + + + Evaluate contract

Training & PPP Option Awareness + +

non-PPP Option + Review + Performance + + + Reforms

+ + Disatisfied + Lack of infrastructure & + poor service delivery + Customers Gap analysis + + Satisfied customer +

Needs identification

Option analysis + Service delivery demands + +

Increase Decrease

Maintenance & + operations

Availability

Affordability

Servicibility

+ Customer focus + + Value for Money

Risks

+ Performance

Figure 5: Systemic PPP Model - Causal Loop Diagram

256

3. 3.1

RESULTS AND DISCUSSION Testing of the new Model

The new PPP systemic model was tested for appropriateness by surveying sixty PPP and non-PPP participants, who were attending an international conference on Financing Infrastructure in Africa through Public Private Partnerships held at the Saint George Hotel, Johannesburg on 28 and 29 August 2007. The researcher administered a two-page questionnaire during the two-day conference. A summary in the form of statements and their related MSs is presented in the following Tables 1.
Table 1: Summary of test results A. 1 2 3 4 5 B. 6 7 Infrastructure & poor service delivery Lack of infrastructure and poor service delivery activates policy reforms to address the problem Service delivery problems decrease with an increase in investment levels Service delivery problems result in increased demand for policy reforms Poor service delivery leads to an increase in PPP agreements closure Poor service delivery leads to high demand for more PPP experts Project management Increased PPP tenders leads to increased demand for project management services Increased use of project management approach facilitates PPP deal flow / throughput PPP awareness and training A PPP culture exists within the public sector A PPP culture exists within the private sector A PPP culture exists within the built environment PPP expertise is pervasive within the public sector PPP expertise is pervasive within the private sector PPP expertise is pervasive within the built environment Increased demand for PPP monitoring increases demand for PPP experts. A high demand for monitoring experts increases demand for PPP training and awareness and vice versa High demand for education and training leads to an increased role for universities in the PPP sector Tertiary built environment PPP related education is inadequate Corrupt practices lead to increase in infrastructure and service delivery problems Investment level Increased PPP agreement throughput facilitates investments Increase in PPP agreements increases portfolio of assets and scope for service delivery High demand for service delivery increases demand for private sector investment and expertise Increased level of investment leads to a decrease in demand for infrastructure and service delivery PPP monitoring High throughput for assets / services leads to a high demand for monitoring and evaluation services Policy and regulatory framework Policy reforms lead to the establishment of PPP regulatory agencies Policy reforms lead to a reduction in infrastructure and service delivery problems Establishment of PPP legal and regulatory agencies leads to a Mean Score 3.89 2.95 3.86 2.78 3.43 3.81 3.81 Mean Score 3.03 3.38 3.54 2.68 3.38 3.22 4.19 3.95 3.73 3.68 4.32 Mean Score 4.22 4.11 4.32 2.73 Mean Score 3.73 Mean Score 3.76 3.14 3.00

C. 8 9 10 11 12 13 14 15 16 17 18

D. 19 20 21 22

E. 23

F. 24 25 26

257

27 28

decrease in need for policy reforms PPP legal and regulatory agencies promotes PPP growth Closure of more PPP deals leads to reduction in service delivery problems Costs and affordability High transaction costs reduce the number of agencies participating in PPP deals High transaction costs lead to a decrease in PPP deals output Risk Transfer Inadequate risk management increases inappropriate risk transfers Higher risk projects decreases investment levels in PPP projects

3.81 3.51 Mean Score 3.89 3.84 Mean Score 4.11 3.84

G. 29 30 H. 31 32

Given that the MSs of lack of infrastructure and poor service delivery activates policy reforms to address the problem, service delivery problems result in increased demand for policy reforms, and poor service delivery leads to high demand for more PPP experts are > 3.40 4.20, the degree of concurrence relative to the statements can be deemed to be between neutral and agree / agree. However, given that the MSs of service delivery problems decrease with an increase in investment levels and poor service delivery leads to an increase in PPP agreements closure are > 2.60 3.40, the degree of concurrence relative to the statements can be deemed to be between disagree and neutral / neutral (Summary Table 1). Furthermore the MS of 3.81 (>3.40 4.20) for the category of the statements under project management indicates that the degree of concurrence relative to the statements that: Increased PPP tenders leads to an increased demand for project management services and increased use of a project management approach facilitates PPP deal flow / throughput, can be deemed to be between neutral and agree / agree. The overall MS of 3.55 (>3.40 4.20), as shown in the category of PPP awareness and training indicates that a PPP culture exists within the public sector, a PPP culture exists within the private sector, a PPP culture exists within the built environment, PPP expertise is pervasive within the public sector, PPP expertise is pervasive within the private sector, PPP expertise is pervasive within the built environment, Increased demand for PPP monitoring increases demand for PPP experts, a high demand for monitoring experts increases demand for PPP training and awareness and vice versa, a high demand for education and training leads to an increased role for universities in the PPP sector, tertiary built environment PPP related education is inadequate and corrupt practices lead to an increase in infrastructure and service delivery problems indicates that the degree of concurrence, relative to the statement that: A PPP culture exists within the public sector, can be deemed to be between neutral and agree / agree. Given that the MS of 3.85 (>3.40 4.20), in the category of investment level, the degree of concurrence relative to the statements Increased PPP agreement throughput facilitates investments, which leads to an increase in PPP agreements increases portfolio of assets and scope for service delivery, a high demand for service delivery increases demand for private sector investment and expertise, and an increased level of investment leads to a decrease in demand for infrastructure and service delivery can be deemed to be between neutral and agree / agree. A MS of 3.73 (>3.40 4.20) indicates that the concurrence relative to the statement High throughput for assets / services leads to a high demand for monitoring and evaluation services can be deemed to be between neutral and agree / agree. The MS of 3.44 (>3.40 4.20) for the category of policy and regulatory framework indicates that respondents concurrence relative to the statements that: Policy reforms lead to the establishment
258

of PPP regulatory agencies, leads to a reduction in infrastructure and service delivery problems, establishment of PPP legal and regulatory agencies leads to a decrease in need for policy reforms, PPP legal and regulatory agencies promotes PPP growth and that closure of more PPP deals leads to reduction in service delivery problems can be deemed to be between neutral and agree / agree. Table 96 depicts a MS of 3.87 (> 3.40 4.20) for both statements under the category of costs and affordability, which indicates that the concurrence relative to the statements High transaction costs reduces number of agencies participating in PPP deals, and high transaction costs lead to decrease in PPP deals output can be deemed to be between neutral and agree / agree. The overall mean score of 3.98 (> 3.40 4.20) for both statements under the category of risk transfer indicates that the overall degree of concurrence relative to the statements inadequate risk management increases inappropriate risk transfers and higher risk projects decreases investment levels in PPP projects can be deemed to be between neutral and agree / agree. 3.2 Application of the New Model This model will be applicable to all PPP projects, resource persons, activities and processes that have holistic interrelationships (Boisjoly & DeMichiell, 1994). It is anticipated that PPP and nonPPP practitioners in South Africa and the SADC region will use the model.
3. CONCLUSION

The results of this model testing bring to the fore a number of causal interrelationships within the PPP project environment that would ordinarily not be clear through the conventional research process. Examination of these results prompts the researcher to stress the importance that must be given to the use of systemic models in the planning and implementation of PPP projects. The systemic modeling of the interconnected PPP variables provides a vital tool that is useful on various levels. The new PPP Model is based on systems theory developed in the 1950s. The model adopts systems thinking viewpoint, where role players are supposed to see the broader picture of ongoing, reciprocal relationships (Andrew, 1999), which a PPP project may be exhibiting. One of the core impediments to systems thinking approach in PPP processes is lack of project management expertise. The new model proposes to encapsulate a fully fledged role of a qualified project manager, complete with an integrated project management system in the delivery processes. This model will be applicable to all PPP projects, resource persons, activities and processes that are have holistic interrelationships (Boisjoly & DeMichiell, 1994). It is anticipated that the model will be used by PPP and non-PPP practitioners in South Africa and the SADC region. REFERENCES Andrew, F. (1999) Modeling the environment: An introduction to system dynamics models of environmental systems. Boisjoly, R., and DeMichiell, R. (1994) A business outcome model with an international component: A new workplace dictates new learning objectives. In H. Klein (Ed.), WACRA Conference (pp.67-77).Needham. MA Government of South Africa (2002) Public Finance Management ACT, 1999: Amendment of Treasury Regulations in Terms of Section 76, 15 March 2005. Government of South Africa (2003) Municipal Finance Management ACT, 2003.
259

Grimsey, D. and Lewis, M.K. (2004) Public Private Partnerships. The Worldwide Revolution in Infrastructure Provision and Project Finance. Cheltenham: U.K. Hamilton, M. (1996) Privately Financed Road Infrastructure Projects- A Concession Companys view working paper No.26 Sub-Sahara Africa Transport Policy Program Meeting 26-28 June 1996. Accra: World Bank Khosa, M., (2000) Empowerment through Infrastructure and Service Delivery in: M. Khosa (Eds) Empowerment through Service Delivery. Pretoria: Human Sciences Research Council. McNamara, C. (2005) Field Guide to Consulting and Organizational Development: A Collaborative and Systems Approach to Performance, Change and Learning. Authenticity Consulting LLC, Minneapolis, MN, USA. National Treasury, PPP Unit, website: www.treasury.gov.za (accessed on 3 March 2006) Robbins G, A. (2003) Water Sector Public-Private Partnership Case Study: Ilembe District Senge, M.T. (2006) The Fifth Discipline: The Art and Practice of the Learning Organization. Doubleday Publishing: MIT, USA Wibowo, A.M and Patria N.A. (2007) Modelling Risk Management Framework in BOT Projects: Indonesias Case Study, Proceedings of the CME 25 Conference held in Reading, UK, July 2007. Yin, R K (2003) Case Study Research: Design and Methods (3rd Ed) Applied Social Research Methods. Beverly Hills, California. Sage Publishing.

260

PARTNERING WITHIN THE DESIGN TEAM

Van der Merwe FJ, Basson GAJ
Francois van der Merwe Architects, francois.architect@gmail.com, Tel No. 082-3730057 Department of Construction Economics, University of Pretoria, gert.basson@up.ac.za, Tel No. 082-9001500

Purpose of this paper - The purpose of this paper is to investigate the application of a partnering approach in the management of the design team for building projects in South Africa. Methodology/Scope - In terms of the research design, both the literature review and empirical survey were launched into broad spectrum environmental and strategic influences and then channeled into increasingly pragmatic operational realities. The following constituent aspects of the main research problem were investigated: industry culture, building projects, formal structures, design teams, the partnering approach, as well as partnering practice. A groundswell of evidence in all these categories, synergistically, proved useful in testing the hypotheses. Findings - Although project management practitioners are in agreement with partnering goals, the approach has not yet found complete or general application in the South African building industry. In support of convincing findings in the literature review, impressions from the practitioners convey alignment with the idea that the partnering approach to management could measurably enhance the performance of design teams in practice. Research limitations - The paper does not seek to describe the relevant phenomena with scientific completeness, but to expose the milieu into which the partnering approach ought to be applied. Practical implications - It is recommended that the partnering approach to management is promoted in the local industry through the formal CPD courses of the professional institutes, whereby an exponential impact in the prevalent culture can be leveraged through design professionals. Value - The study adds to the body of knowledge which informs and guides project managers and other professionals who seek to embrace the challenge to provide leadership that develops project team spirit as an essential catalyst to competitive project performance. Key words - project management, partnering, design team, building projects, synergy, leadership.

1 INTRODUCTION In the Guideline Scope of Services for Registered Construction Project Managers (Board notice 67 of 2004: 182) the following responsibility is listed amongst the normal services under the heading, Human Resources Management: Promote the development of project team spirit to enhance project performance. This is a difficult thing to do. Other areas of concern, such as time, cost and even quality management are blessed with many techniques and systems to aid the Project Manager in sustaining project performance. Human Resources management, however, often require special skills for which a typical Project Manager is not sufficiently trained. This results in counter productive policing of project team members through cumbersome administrative controls.

261

The King Report on Corporate Governance for South Africa (2002) obliges many clients (employers), contractors, material manufacturers and suppliers as well as professional consultants to comply with its provisions. In the Code of Conduct for all parties engaged in Construction Procurement in terms of the Construction Industry Development Board Act (Act no. 38 of 2000) the following is stated in the preamble: The construction industry operates in a uniquely project-specific environment, continuously combining different clients, consulting professions, as well as different contractors and subcontractors in a variable supply chain. Procurement arrangements, which also vary considerably bind this supply chain and define the obligations, liabilities and risks that link the parties together in the delivery process. The conduct of parties throughout the supply chain impacts on the ability of the industry to deliver value and to perform efficiently and competitively. (CIDB, 2003: 1) This highlights an official acknowledgement of the problematic culture in the construction industry and indicates a new focus on the issues which underlie the Partnering philosophy. In fact, the Partnering approach has recently been promoted as a change in contract strategy on certain projects in a Practice Note (CIDB, 2006: 4) titled: Scaling up Delivery and Accelerating Empowerment. In this instance, Partnering agreements are viewed as an overall strategy involving al the stakeholders in the delivery system. Although policies and codes confirm the need to address issues of good faith, integrity and trust, the question of actual implementation remains. It is doubtful whether Partnering is even rarely, formally pursued inside project organizations beyond agreements on target costs. This research focussed on the Partnering approach to management within individual projects and, as such, studies its implementation at a building block level where it helps to facilitate a shift in the construction industry towards a less adversarial culture. However, in stead of studying the whole supply chain it pays particular attention to the application of Partnering within the design team, which is positioned at a central node in the project organization and from whose synergised knowledge and skills, technical quality, originality and appropriate solutions for the built environment can be harnessed. The industry witnessed the pro-active formalization of values, techniques and guidance on best practice to advance a culture that supports cohesive project teams since the mid1980s (McGeorge and Palmer, 1997:188). The Partnering philosophy is difficult to define as it has to do with the basis of relationships. McGeorge and Palmer (1997:189), defines formal Partnering as an explicit arrangement between the parties and its goals are quite clear. Stevens (1993, cited by McGeorge and Palmer, 1997:191) summarizes these goals as follows: [Partnering] is not a contract but a recognition that every contract includes a covenant of good faith. Partnering attempts to establish working relationships among stakeholders through a mutually developed formal strategy of commitment and communication. It attempts to create an environment where trust and teamwork prevent disputes, foster a cooperative bond to everyones benefit and facilitates the completion of a successful project. Considering the application of a Partnering approach within the design team as a strategic initiative is valid, since the management of these people, even through the implementation of customized techniques, require a mindset aligned with the Partnering philosophy. In this regard Project Managers have a leadership function.

262

2 METHODOLOGY AND SCOPE Although this study is positivist in the sense that it was guided by hypotheses and that variables were isolated to be studied, the research effort generally leaned towards a qualitative approach. It endeavoured not only to investigate implementation, but also issues of principles and behaviour and therefore the underlying forces that influence surface manifestations were important. The model in Figure 1 is a diagrammatic representation of the research design, structure and process. Surveys were launched into broadspectrum, environmental and strategic influences and then channelled into increasingly pragmatic, operational realities, ending with studying the Partnering approach in practice (see numbers 1 to 7). Reciprocal relationships are hinted at in the research design by the juxta position of a Human Resource Angle or perspective, including the issues of culture and design teams, next to a Systems Angle, which includes formal interorganizational structures, as well as arrangements in terms of the Partnering approach. The two points of view are superimposed in practice within the building project environment.
1 MAIN HYPOTHESIS Project performance will be measurably enhanced by the application of a Partnering approach in the management of the design team for building projects in South Africa.
EXTERNAL ENVIRONEMENT

PROJECT ENVIROMENT

Figure 1: The research design for investigating the application of a Partnering approach in the management of the design team for building projects in South Africa.

263

PRACTICE

ORGANIZATION

INTERNAL NETWORK

STRATEGY

As a primary data source a descriptive survey, in the form of a questionnaire, was employed to gain the views and insight of project management practitioners, specifically of lead managers for design teams. The corporate and ordinary members of the Association of Construction Project Managers (ACPM), plus a few non-members were judged to be a representative sample. Generalizations out of the almost 80% response (19 out of 25 questionnaires were completed and returned) are deemed to convey the opinions of the larger consultant population. The secondary data source entailed a literature survey in which deductive logic was employed in general analytical procedures. Both the primary and secondary data sources were surveyed only in terms of the composition of variables in the research design indicated in Figure 1. The categorization of data assisted to restrict the variables and indicated dependencies or causalities (Fellows and Liu, 1997: 96). The categories in Figure 1 are deemed meaningful and useful, because they were suggested by the sub-problems and support the logical testing of the hypotheses. Synthesized and integrated, these adequately addressed the research problem. Specific assumptions and delimitations were also made to render the study less open-ended. The paper does not set out to prove that Partnering surpasses other management approaches, but that it is indeed a valid and beneficial approach within the context, as well as that it effectively addresses Human Resource management issues that influence project performance. In the paper, the relevant phenomena are not described with scientific completeness, but it endeavours to expose a milieu into which the Partnering approach ought to be applied. 3 FINDINGS The investigation therefore navigated the route suggested by the research design through the variable categories as stated: the Construction Industry Culture (1), Building Projects (2), Formal Structures (3), the Design Team (4), the Partnering Approach (5) and the Approach in Practice (6). The restrictions caused by the two dimensional nature of the written word results in a linear process. However, the categories are also viewed as one would concentric circles, the one within the other, with the Construction Industry Culture on the outside and the Approach in Practice as the kernel (compare with Figure 1). In this way many causal relationships were clarified. If this sequence of subjects is folded back into itself it closely represents the elements of the main hypothesis, namely that: Project performance will be measurably enhanced by the application of a Partnering approach in the management of the design team for building projects in South Africa. A groundswell of evidence in all the categories, from the external environment to the project environment crystallized to synergistically prove the constituent aspects of the main hypothesis. The following are brief discussions of the synthesized findings from the results of the literature review and the questionnaire, in each category respectively. 3.1 Construction Industry Culture From the studied sources it is clear that the design team, at the heart of the inter organizational workgroup formed for building projects, is positioned at the point of maximum interface between group members and other stakeholders. It represents a nodal point in the project organization where information is translated and transferred between the involved parties. Being in this central position on all building projects, the design team has a reciprocal influence in terms of the wider construction industry. Projects are entered into and closed-out with specific attitudes having been reinforced or altered, influencing the nature of engagement of the team members in all following projects. In a sense, the design team represents a crucible of cultural and paradigmatic convictions.

264

The Project Management practitioners surveyed in the questionnaire confirm the prevalence of hampering adversarial attitudes amongst professional consultants (47.37% responded that this occurs sometimes and 21.05% that it occurs often). They also support the idea that a Project Manager should pro-actively develop synergy in the design teams work effort (nearly 70% of the respondents deemed this task absolutely included within their responsibilities). The practitioners further prefer network structures to traditional hierarchical organizational structures by a margin of two to one, in alignment with the necessary shift in the industry culture towards a team oriented, Human Resources paradigm. 3.2 Building Projects The literature review revealed that historically, project stakeholders in South Africa are generally of the opinion that there are inherent and systemic problems in the traditional systems that have had a detrimental effect on the performance of teams on building projects. There also seems to be consensus that this is largely a management issue, which is solvable by the application of strong leadership and a focus on Human Resource management. For example, De Beer (1984, cited by Hauptfleisch, 1988: 310-311) holds that building projects seldom go wrong as a result of a lack of technical knowledge, but because of a lack of management skill, especially with regard to human resources and communication, and that Project Management as a building process will probably be the most successful in elevating the utilization of Human Resources to the level of the effective utilization of technical resources; Pet (1979, cited by Hauptfleisch, 1988: 336) states that the success of a building project depends more on the individual in command than on the profession he is from or the specific building process. Throughout the life-cycle of the project stages, multiple organizations are engaged in the exchange of either, behavior and ideas, or products (Howell, 1990:25). In other words, building projects have the dual nature of a purchasing transaction and service delivery, with the further complication that intellectual and physical assets are delivered piece by piece and in stages, presenting a unique management challenge. In this scenario effective leadership entails the keen discernment of the appropriate type of exchange involved, in order to consistently facilitate the project teams cohesion. Strategies such as Value Management, Constructability and Total Quality Management can be leveraged into the project environment via the design team due to its strategic position at the nucleus of the organizational interfaces of a typical building project. The results of the questionnaire do indicate that consultants relationships have improved over the last few years (68.42% agree). This response, compared to the view in the industry as far back as thirty years ago, supports the notion that relationships within teams for building projects merit special attention. Managers on building projects, on average, still experience a sense of duality regarding their role within the project organization. On the one hand they feel that they have to drive the process to deliver products to certain standards, on time and within cost budgets. On the other hand, they are captaining a problem solving effort involving creative ideas and group behavior (15.8% more respondents see theirs as a captaining role, rather than driving the production of deliverables). The management of design processes in building projects requires the marriage of these approaches. Practitioners further report that contractors have a very low influence (7.63%) in decision making regarding design. This result does not display an acceptance of the standard Partnering goals at project organization level, however, the practitioners confirm that the design team, proportionately, asserts a powerful influence (48.95%) in the decision making processes regarding the project design. This makes sense, since most of the project information, from conceptual ideas to technical documentation, throughout the various project stages are trafficked through the team.

265

3.3 Formal Structures Standard contracts and agreements confirm the design teams obligations and responsibilities and position the principal agent or consultant in a management and leadership role. The Project Manager, who is often the principal agent, is in a position to advise the client on the strategic choice of a contracting system. It is this system that formally superimposes Human Resources over the Scopes of Work. The competencies of the design team members are thus allocated to often inter locking areas of responsibility. The project manager is empowered to fulfill, not only a management, but also a leadership role through aspects of the Partnering approach, such as alternative dispute resolution, agreement on mutual objectives and the Partnering techniques. The results of the questionnaire reveal that about three quarters of the respondents settle for traditional contract strategies, as opposed to Design and Build or Management systems. Corresponding with the above, almost 74% of the respondents prefer the separate appointment of professional consultants, primarily due to an aversion to risk, thereby forfeiting the enhanced benefits of team cohesion created by mutual accountability. 45% of the practitioners confirmed that they do experience some conflict of interest in relation to the rights of the consultant versus their employer. The findings support the perception that the traditional, fragmented contracting systems harbour a lack of relational trust, as well as adversarial attitudes. It is particularly in relation to this fact that strong moral leadership is required from Project Managers. 3.4 The Design Team The literature review confirms that design teams are multi-disciplinary work groups involved in investigating, planning and design to creatively secure a specific output. Linear analytical methods are combined with lateral, creative thinking processes. The Project Manager is challenged to guide the creative process through inherent communication problems into a synergistic effort using creative thinking methodology and techniques that cater for the group dynamic. Obtaining integrated and coordinated information necessitates the use of systematic methods, such as detailed checklists, to coordinate the specialists efforts, but the facilitation of creative harmony between the variable personalities involved also require team building skills and leadership from the Project Manager. Consultants should be inspired to buy into the vision for the project. The processes in the Partnering approach, such as to reach agreement on mutual objectives, enables the Project Manager to pro-actively unlock this creative synergy. The results from the questionnaire reveal that specialized creative thinking techniques, particularity Brainstorming and Value Engineering, are indeed utilized by project management practitioners in the exploration of design options. It also confirms that architects and engineers solve problems in different ways and it is acknowledged that the differing approaches are rooted in their background and training. 71% of the respondents indicated that the pre-construction stages (40, 5% of this was, specifically, indicated for the concept and design development stages) provide the greatest challenge in terms of information coordination. This fact supports the notion that the fostering of synergy between the creative, lateral and analytical, linear methodologies in the combined design effort presents a unique management challenge. 3.5 The Partnering Approach Bennett & Jayes (1995:2) define the approach as follows: Partnering is a management approach used by two or more organizations to achieve specific business objectives by maximising the effectiveness of each participants resources. The approach is based on mutual objectives, an agreed method of problem resolution and an active search for continuous measurable improvements. The

266

literature review revealed that specific project goals can be realized via a system of relationships based on these agreements. Concepts such as Total Quality Management, Constructability and Value Management can be effectively implemented on the platform of relationships arranged through Partnering. Critical performance indicators such as quality, efficiency, speed and cost are measurably enhanced and team spirit becomes a realizable asset due to the approach. The two levels of Partnering, project Partnering and strategic Partnering, both require the thorough evaluation of potential partners, since there are costs and risks involved. Project Partnering seems suitable for any type of relationship and procurement route. Benefits are delivered in all scenarios, but strategic, longer term Partnering allows such benefits to develop into full fruition. The process through which Partnering is phased into the project life cycle can be described in stages. In the inception and pre-project stage the Partnering decision, selection, team building and formalization of the arrangement in a charter is mainly completed in an initial workshop. The implementation stage involves continuous monitoring with follow-up workshops to maintain the Partnering goals. The completion stage involves feedback in a lessons learnt type of evaluation which can inform further strategic Partnering. It is clear that the Project Manager, as the king pin in the network of relationships in the project organization, should be the key instigator of the Partnering approach in the realm of the day to day project processes. The results of the questionnaire reveal that the approach has not yet found general application in the South African building industry (42.86% of the respondents indicated that they have encountered explicit Partnering agreements beyond target costs, only on up to 10% of their projects in the last five years). The practitioners did however, rank issues pertaining to commitment to improvement and mutual objectives the highest with relation to criteria for potential partners. These issues, with the willingness to change attitudes, all have to do with reaching project objectives mutually, thereby indicating support for the ethos and goals of Partnering. In another question regarding agendas for Partnering workshops, SWOT analysis and team building received the highest ranking. Within the context of that question the result confirms the general view that the design team members are a valuable strategic resource and that group cohesion merits the application of special measures. Practitioners are prepared to apply methodologies such as Value Engineering and Constructability within cohesive design teams. Alternative conflict resolution received a low ranking in more than one of the questions, perhaps indicating the hope that if just some of the aspects highlighted in the Partnering approach receive adequate attention, conflict would become less of an issue. Although explicit and complete Partnering arrangements have not yet found general application in South Africa, the results seem to indicate that Project Management practitioners are hopeful that the strategies and techniques contemplated in the Approach could indeed enhance performance through the system of the network of relationships. 3.6 The Approach in Practice The literature review confirms that the Partnering arrangement practically manifests in terms of working toward mutual objectives, a commitment to and the monitoring of continuous improvement, as well as problem resolution in terms of the agreement. In the reaching of mutual objectives, specific techniques are utilized to help the parties see each others point of view, on for example quality, efficient use of time, profit and service delivery. Agreement on the method of problem resolution includes a process through which permanent, practical solutions are sought. The involved members work together to solve the problem at the lowest possible level, as soon as possible. Progressive, measurable improvement of project performance within the Partnering

267

arrangement also targets key subjects such as quality, time, value and internal efficiency. Specific processes are proposed in the best practice guides studied to ensure momentum in this regard. On the ground, teamwork is facilitated in a series of customized workshops. Through best practice, methodologies have been developed that result in specific agendas for these sequential workshops. An external facilitator is often involved to assist with issues such as team building and communication. The initial workshop includes the processes that lead to agreement on mutual objectives and a problem resolution process. The final resolve is documented on a project charter which acts as the manifesto for the Partnering agreement. The follow-up workshops are regularly scheduled and follow the same pattern as the initial workshop, but evaluation of the project process and the teams effectiveness are the main concerns. Continuous improvement is prompted and sustained at these workshops. The final workshop includes a formal review of the project performance which is facilitated through a process that ensures objective analysis of pertinent issues. Long-term improvement of all the involved parties is at the heart of this process. Many typical barriers to effective team building are addressed through the processes inherent in Partnering. Guiding the project team through the shift from more traditional, individualistic behavior to the changed attitudes geared towards collective achievement committed to in the Partnering agreement, becomes the main challenge for the Project Manager. Specific techniques for dealing with behavior that inhibits synergistic work dynamics have been successfully applied in practice. Project team leaders should take cognizance of the identifiable stages through which team cohesion develops in order to apply the appropriate techniques and leadership style. Contingency or situational leadership models hold that the appropriate leadership style is a function of the specific project circumstances and / or team members. Consultants on design teams are highly educated and skilled professionals and are prone to respond favorably to a participating or delegating management style. This requires the Project Manager to shift from high task-oriented behavior to high relations-oriented behavior. The Partnering approach, as it is appropriated in practice, supports the structured implementation of a participative management style. The results of the questionnaire confirm that adversarial attitudes influence the values that guide priorities in the building project environment. Agreement on problem resolution, as a prerequisite for project performance, received a 16.5% higher ranking than the next issue. The current situation in South Africa is in need of management approaches such as Partnering, which has developed methodologies to simplify its implementation by Project Managers. Practitioners confirm that synergy in the design process can be promoted through Partnering workshops at project level, where issues like cooperative decision making can de addressed. More than 50% of the results indicated that the Project Manager does have a leadership role in relation to the design team. Group cohesion and synergy in the design teams effort can be facilitated practically through the processes and techniques of Partnering. The Project Manager would effectively fulfill his leadership responsibilities by applying the Partnering approach in the management of the team. 4 CONCLUSIONS, PRACTICAL IMPLICATIONS AND VALUE The process engaged in as a result of the research design will be briefly summarized herein, recapitulating key results, thereby confirming the proper context in which the conclusions are drawn. As set out in the research methodology and with reference to Figure 1, the diagram for the research design, both literature and empirical surveys where launched into broad-spectrum environmental and strategic influences and then channeled into increasingly pragmatic operational realities.

268

The external environment in which design teams operate is defined in terms of the construction industrys culture, building projects per se and the formal structures of the involved organizations. In this environment strategic thinking would demand an acknowledgement that the culture of the construction industry in South Africa is indeed influenced by adversarial attitudes, mostly lacking the group cohesion that allows synergistic working relationships. As stated, the design team, at a nodal point in terms of the interface between parties could be utilized to introduce the more harmonious Partnering approach into the culture. Strategic thinking would further demand the realization that a typical building project has a unique character, partly a purchasing transaction and partly the delivery of services, complicated further by it being completed in stages. Traditional procurement systems have had a detrimental effect on project team cohesion and performance. It is also acknowledged by stakeholders in construction that this problem is largely due to the management of multiple organizations and / or disciplines in construction projects and that strong leadership is required in this regard. The design team is strategically positioned to act as a platform, if effectively secured by Partnering, for the implementation of management strategies such as, Value Management, Constructability and Total Quality Management. Utilizing the contracting system best suited to the project is a strategic decision. It structures the relationships in the project organization to procure the best results by allocating and securing the available human resources to execute a specific scope of works. The Project Manager is hereby often formally positioned at the helm of the design team, where the greatest variety of competencies, as well as the most inter organizational interfaces are found. The Partnering approach provides alternative dispute resolution, a basis for the formulation of trusting relationships, and empowers the Project Manager to lead the team towards mutually agreed objectives. The organization of a project team that would ensure a strategic advantage in the construction industry necessitates attention to the nature of the multi-organizational and multi-disciplinary design team. The Partnering approach provides a methodology through which the internal network of the project team can be effectively harmonized. It provides a normative basis for that network of relationships. The Project Manager should utilize creative thinking techniques to synthesize the linear, analytical methods and the lateral, creative processes of the various disciplines involved in the design and planning endeavor. Integrated and coordinated project information is an indication of effective leadership regarding this combined effort. The project leader can facilitate the realization of specific performance goals through the application of the Partnering approach, because it hinges on agreed mutual objectives and makes room for agreement on alternative problem resolution. Efficiency is expedited because a Partnering agreement is, in a sense, driven by a mutual commitment to continuous improvement. In Trusting the Team, Bennett & Jayes (1995:50) relate that their Engineering and Physical Sciences Research Council studies identified long term relationships that provide substantial benefits between design consultants, for example between architect and engineer and between designers and specialist contractors especially for highly engineered elements such as structure, cladding and engineering services. Although the full benefits are realized in strategic Partnering involving multiple projects, case studies have also shown a substantial increase in project performance on single projects. Even strategic Partnering agreements are formed on the basis of progressive individual projects and are often formed on the back of a successful project.

269

Applying the Partnering approach in practice, in the project environment, entails the systematic utilization of Partnering methodology and techniques in a series of customized workshops. But strong leadership is also required to guide the design team into synergistic working relationships, formed in accordance with an agreement based on trust. Synergy is vital, because in the project environment and particularly in the operation of the design team, almost everything relates to everything else. The Project Managers leadership, the design teams performance and the way that the Partnering arrangement evolves, are all locked into causal and reciprocal relationships. Partnering provides a practical way to change the juxtaposition between soft work group realities and structural systems organization into a synergistic team dynamic, weaving Human Resource management into the systematic, technical methodology typical of building projects. The results of the questionnaire reveal that Project Management practitioners are in agreement with the Partnering goals, but the Approach has not yet found complete and general application in the South African building industry. In light of the current scenario, the impressions from the practitioners convey a confidence that the Partnering approach to management could measurably enhance the performance of design teams for building projects in South Africa. This study adds to the body of knowledge which informs and guides Project Managers and other professionals who seek to embrace the challenge to provide leadership that develops project team spirit as an essential catalyst to competitive project performance. It is recommended that the Partnering approach to management is promoted in the construction industry in South Africa through the formal CPD (Continuous Professional Development) courses of the various consultants professional institutes, whereby an exponential impact in the prevalent culture can be leveraged through the design and management professionals. In this way the proven benefits of Partnering as a management approach will become clear in an academic environment, without the handicap of pre-conceived ideas regarding the costs involved. 5 REFERENCES Bennett, J & Jayes, S. 1995. Trusting the Team: The Best Practice Guide to Partnering in Construction. Reading: Centre for Strategic studies in Construction Board Notice 67 of 2004. 2004. The South African Council for the Project and Construction Management Professions: Recommended Scope of Services and Tariff of fees for persons registered in terms of the Project and Construction Management Professions Act, 2000 (Act 48 of 2000) Government Gazette, 11 June 2004. p177-189 Construction Industry Development Board. 2003. Code of Conduct: for all parties engaged in construction procurement. Pretoria: CIDB Construction Industry Development Board. 2006. Inform Practice note version 1 August 2006: Scaling up delivery and accelerating Empowerment. Pretoria: CIDB Fellows, R & Liu, A. 1997. Research Methods for Construction. 2nd ed. Oxford: Blackwell Science Ltd Hauptfleisch, A.C. 1988. Die Ontwikkeling van bouprosesverhoudings met besondere verwysing na Suid-Afrika. Unpublished Ph.D. thesis Pretoria: University of Pretoria Howell, G. 1990. How Owners and Contractors Organize Project Teams. A report to the Construction Industry Institute. The University of Texas at Austen. Albuquerque: The University of New Mexico McGeorge, A. & Palmer, A. 1997. Construction Management: New Directions. Oxford: Blackwell Science Ltd.

270

FACTORS CONSTRAINING THE IMPLEMENTATION OF PUBLIC PRIVATE PARTNERSHIPS IN THE ELECTRICITY SECTOR IN UGANDA
Akampurira, E.1, Root, D.1 and Shakantu, S.2
1

Dept. of Construction Economics and Management, University of Cape Town, david.root@uct.ac.za +27 (0) 21 650 4456 Department of Construction Management (Building sciences), Nelson Mandela Metropolitan University Winston.Shakantu@nmmu.ac.za, +27 (0) 41 504 2394

ABSTRACT Purpose The paper presents the findings of research into the relative importance as perceived by sector stakeholders, of factors that hamstring private sector participation in the development of hydropower generation facilities through public private partnerships in Uganda. The stakeholders considered in this paper are those representing the government and private sector entities in the development of the partnerships. Methodology A literature review was used to identify the relevant factors, which were incorporated into a survey questionnaire for primary data collection. The self administered questionnaire was physically delivered to the respondents. To determine the relative importance of the factors, the data obtained is subjected to nonparametric and descriptive statistical tests as supported by the SPSS environment. Findings The respondents regarded the regulatory and legal frameworks as being attractive for private sector participation and this was further enhanced by their confidence in the governments commitment to honor its contractual obligations. However, difficulties in structuring and obtaining finance together with issues over the cumbersome approval process and resistance from environmental groups were identified as the most significant constraints to the development and implementation of public private partnerships in the Uganda electricity sector. Value Amidst increasingly constrained public budgets and insufficient service delivery, private sector participation through public private partnerships are increasingly being used as a vehicle for the delivery of physical infrastructure. The government of Uganda currently grappling with a crippling electricity power deficit has over the years driven strategies to encourage private sector participation through public private partnerships in the electricity sector, albeit with limited success. Recognizing the importance of an adequate and reliable supply of power, it is anticipated that the identification of the relative importance of the constraints as perceived by stakeholders, will inform the process of developing measures and strategies to mitigate the constraints thus facilitating the speedy implementation and deal closure of public private partnership initiatives with the ensuing benefits. Keywords: Public Private Partnerships, Uganda, Electricity sector, Investment. INTRODUCTION The provision of adequate and reliable physical infrastructure is important given the role it plays in supporting the growth of industry, delivery of social services, enabling the movement of people and goods, amongst others. Physical infrastructure has long been identified as catalysts for economic growth. Traditionally the provision, management and financing of physical infrastructure assets has
271

lain with governments, financed through taxation and, in developing countries, bilateral and multilateral support (Akintoye et al., 2003). In the electricity sector, the responsibility for generating, transmitting and distributing electricity was typically undertaken by a vertically integrated state owned utility company. Limitations on the amount of tax an economy can support together with inefficiencies in collection and for developing countries; a decline in bilateral and multilateral assistance, have constrained the ability of governments to perform this function effectively (ADB, 2000). In addition, the poor service delivery characteristics of many state owned utility companies and an increased demand for infrastructural services by growing urban populations motivated the search for alternative infrastructure delivery mechanisms such as public private partnerships (PPPs) (ADB, 2000; Ahadzi, 2001; Akintoye et al., 2003). PPPs are long-term contractual arrangements that harness the skills and resources of both private and public sectors in the delivery of public services or the development of public infrastructure (Akintoye et al., 2003). Through these mutual partnerships, a number of advantages should accrue including access to capital (ADB, 2000;; Bing Li et al., 2005), increased value for money, timely completion of projects (Bing Li et al., 2005) and improved service delivery through the use of better management practises and adoption of innovative solutions (Akintoye et al., 2003). In order to harness the advantages offered by PPPs in the electricity sector, many countries have undertaken sector reforms involving implementing new supportive regulatory and legal frame works, unbundling state owned utilities companies into generation, transmission and distribution entities, establishing independent regulators to oversee the sector and ultimately allowing private sector participation in the provision/ delivery of electric power to the population (ADB, 2000). Despite this, implementing PPPs in the electricity sector has been challenged by protracted negotiations (Ahadzi et al., 2004), difficulties in structuring project financing (Jyoti et al., 1998; ADB, 2000) lack of a supportive legal and regulatory framework (Blackman et al., 1999), high bidding costs (Akintoye et al., 2003; Bing Li et al., 2005), and resistance from environmentalists (ADB, 2000). This has led to a reduction in private sector interest and investment in the development of infrastructural facilities in developing countries stemming from the nature of the institutional environment. North (1999) defines institutions as a framework of formal (e.g. laws, regulations) and informal constraints (e.g. customs, taboos); the rules of the game, that shape social, political and economic aspects of human interactions. These constraints give rise to a set of opportunities and provide incentives for individuals and organizations; the players in the game, to engage in economic activities (North, 1990; Ostrom et al., 1993). Individuals or organizations take advantage of the opportunities created through varying contractual arrangements e.g. PPPs as determined by the institutional environment (North, 1990). Therefore the success of the contractual arrangement is highly dependant on the nature of incentives that are put in place for a particular project, or that exist within the institutional environment to encourage certain behaviours or, in the same manner, the disincentives embedded within the institution framework, to discourage certain behaviour (North, 1990; Ostrom et al., 1993). North (1990) identifies that the importance of the institutional environment to the success of contractual arrangements as being derived from its influence on the property rights. Successful implementation of contractual arrangements, requires that property rights be clearly and consistently defined, and be recognisable and enforceable by society. Furthermore, Ostrom (1993)

272

argues that excessive transaction costs involved in establishing and enforcing the contractual arrangements, act as deterrents to individuals or organisations intending to pursue a transaction. In the electricity sector, an appropriately tailored and conducive institutional environment is of great importance as, infrastructural development requires large initial capital investment which in the case of developing countries is usually provided by foreign investors with returns being projected over a long period of time (15-30 years) (Sader, 2000; Lamech et al., 2003). Therefore an institutional environment that provides a stable regime of property rights and seeks to minimise the transaction costs involved is imperative in order to attract and sustain private sector participation and investment in the electricity sector. To achieve this, it is important that the framers of the rules of the game are aware of the expectations of the participants as a mismatch between the two has been known to deter or make more challenging the development and implementations of PPPs especially in developing countries (Izzaguire, 2000; Lamech et al., 2003). UGANDAN CONTEXT Uganda is a sub-Saharan developing country of 24 million people of whom 88 % live in rural areas. Bilateral and multilateral budgetary support accounted for 38% of the national budget in 2007/2008 with the GDP Growth rate at 6.5% (Suruma, 2007). The Ugandan government has recognised the importance of having an adequate and reliable supply of electricity in sustaining economic growth and improving the living standards of its people (MoEMD, 2002). Hydropower is the major source of electricity in Uganda. The installed hydropower generation capacity of 317MW supplies only 5% of the population and is unable to meet a current peak demand of 380MW (MoEMD, 2002). However the country has an identified potential of 2500MW of hydropower capacity on untapped sites in the country (World Bank, 2005).With demand for energy estimated to grow at 4-5MW per month and an economy growing at an average rate of 6.3% per annum over the last 10 years additional power generation is critical (Engorait, 2004). In response the government of Uganda has attempted to encourage and incentivise private sector participation in the development of hydropower generation facilities(Electricity Act, 1999; Engorait, 2004). Key to this was the unbundling of the state owned Uganda Electricity Board (UEB), creation of an independent regulator and providing a legal framework allowing private sector participation (Electricity Act, 1999; Mugyenzi, 2001; Engorait, 2004). Notwithstanding the reforms and government commitment, private sector investment is still limited and many proposed projects have not materialised. A number of proposed PPPs have been hampered by accusations of, inter alia; corruption (World Bank, 2007), protracted negotiations (Government of Uganda, 2004; Bbumba, 2006), withdrawal of project developers (Energy Information Administration, 2004) and difficulties in structuring project financing (Bbumba, 2006). The aim of this study was to identify constraints on the development and implementation of PPPs for hydropower generation facilities in the Uganda electricity sector and their relative importance as perceived by stakeholders. This would inform the process of developing measures and strategies to mitigate the constraints thus facilitating faster implementation and deal closure of public private partnership initiatives with the ensuing benefits. CONSTRAINTS TO PRIVATE SECTOR PARTICIPATION A comprehensive literature review identified twenty three constraints to the development and implementation of PPPs in the energy sector of developing countries. Examples include the predictability of the investment environment as a significant consideration for investors (Lamech
273

2003), the clarity surrounding regulatory and legislative processes (ADB, 2000; Sader, 2000) and the willingness of all participants to adhere to and respect the outcomes of these processes. Ambiguity in these frameworks, can lead to investor apathy seen in China (Blackman et al., 1999) or reliance upon special situations and/or political patronage to obtain contracts often on a noncompetitive basis (ADB, 2000) such as happened in Zimbabwe (Sader, 2000) Restrictive regulatory conditions on project rates of return have also acted as disincentives to PPPs in Pakistan (Sader, 2000) and in China (Blackman et al., 1999) as have attempts limit foreign ownership (Jyoti et al., 1998; Blackman et al., 1999; Fraser, 2005). Protracted implementation of sector reforms in both China (Blackman et al, 1999) and Pakistan (Fraser, 2005) have impeded private sector involvement since the formation of an independent regulator is an important incentive and consideration for investors (Lamech, 2003). Institutional related challenges e.g. lengthy bureaucratic processes coupled with poor coordination between government departments (Lamech, 2003), non-transparent project approval processes (Blackman et al, 1999) and low levels of skill in the public sector (Moreldge et al., 1998; Bing Li et al., 2005), have variously been identified as significant constraints on establishing PPPs as they increase the time between project conception and implementation. Other identified constraints include stakeholder pressure from environmental organisations particularly on hydropower projects (WCD, 2000). Similarly, private sector participation has met public resistance as a result of an increase in the traditionally heavily subsidised service charge (Hall et al., 2005). In finance, non-recourse financing mechanisms dependant on the revenue streams generated by the completed project are the norm for many private sector schemes. The underdeveloped nature of capital markets in many developing countries, makes obtaining long term finance from local financial institutions difficult (Jyoti et al., 1998; ADB, 2000) hence a heavy reliance on foreign capital which introduces issues of foreign exchange risk (Sader, 2000; ADB, 2000). Lastly, the poor creditworthiness of the power off taker companies especially in the single buyer model is a major constraint as have been shown in India (Jyoti et al., 1998; ADB, 2000). SURVEY PROCESS The constraints identified from the literature review were incorporated into a questionnaire. The questionnaire consisted of two sections. The first section collected information about the respondents with the second section soliciting their perceptions on the relative importance of the constraints identified in the literature review to the development and uptake of public private partnerships for hydropower generation. The questions in the second section used a five point Likert scale. The Likert approach was chosen because of its advantage in eliciting the extent of peoples' agreement or disagreement with a statement; facilitating the production of hierarchies of preferences of the respondents; and generating a hierarchy of preferences for different categories of respondents in the sampling space that can be compared (Fellows, 1997). The target population consisted of managerial level staff in government ministries, departments and private companies that either had expressed interest or were actively involved in the development of PPP projects for hydropower generation. The lack of a an existing database of participants in the development of hydropower projects through PPPs necessitated the use of non random sampling techniques with respondents identified through purposive and snowballing sampling techniques. The identified population were contacted in advance to ensure their willingness to participate in the survey. Self administered questionnaires where delivered and collected by hand to 51 individuals; 16 to respondents from private companies involved in the development of PPPs for hydropower generation, and 35 to government bodies / ministries. 28 valid responses were returned; a response rate of 54.9%; 19 (67.9%) from the government sector and 9 (32.1%) from the private sector.
274

64.3% of the respondents indicated that they had no experience with the development of PPPs prior to their current job position.

DATA ANALYSIS The data collected was analysed using SPSS. The reliability of the five point Likert scale used in the survey questionnaire was tested for internal consistency using the Cronbachs coefficient alpha . Values of 0.7 are an acceptable indication of the reliability of the scale. A value of Cronbachs alpha = 0.8231 was obtained indicating good reliability of the scale. The overall ranking of the constraints by the respondents was obtained by the mean score method as used by Shaokai Lu et al.,(2007). The mean score (MS) for each constraint was calculated using the formulae: MS = (f X s) N Where f = frequency of response to each rating (1-5) for each constraint; s = Score given to each constraint by the respondents, ranging from 1 (strongly disagree) to 5 (strongly agree); N = Number of responses to that constraint. In cases of the occurrence of a tie, a criterion for ranking was obtained based on the percentage of respondents strongly agreeing to the identified constraint. Kendalls coefficient of concordance w analysis measures the degree of agreement of the respondents within a category on their ranking. Consensus on rankings exists w is significant at the 5% level (Siegel et al., 1988). The Mann Whitney U test was used to determine whether the mean ranks for each constraint are equal between the government and private sector respondents. A p value lower than 0.05 on the Mann- Whitney U test shows that the null hypothesis of no difference between the mean ranks can be rejected indicating that there is a difference in perception between the respondents as regards the identified constraint (Siegel et al., 1988). To compliment this, Spearman rank correlation coefficient (rs) test was performed to measure the agreement between the two respondent groups on their ranking of constraints to the uptake of PPP in the electricity sector. Association by the respondents in the rankings is indicated by rS being significant at level of 0.05 i.e. if rS > 0.05, there is no significant disagreement between the respondents on the ranking of the constraints to PPP (Siegel et al., 1988). SURVEY RESULTS AND ANALYSIS Table 1 presents the results of tests for Kendalls coefficient of concordance (w) and the ranking of the constraints as perceived by the respondents. Kendalls coefficient of concordance (w) for the ranking of constraints among all the respondents is 0.298, (w) = 0.328 among the government sector respondents and 0.365 among the private sector respondents. These Kendalls coefficients of concordance are all significant at the 0.000 level and there fore it can be concluded that there is a reasonable degree of agreement among the respondents in each of these group and all respondents regarding the ranking of the constraints to PPPs in the electricity sector in Uganda. To tests whether there is agreement between the private and government sector respondent as to the ranking of constraints, Spearmans correlation coefficient (rS) was determined. A correlation coefficient (rS) of 0.717 was obtained (Table 3). Therefore the null hypothesis of no significant disagreement between the private and government sector respondents on the ranking of the constraints to private sector investment in the Uganda electricity sector is accepted. This implies

275

with 99% confidence that there is significant agreement on the ranking of constraints between the private and government sector respondents. The Mann Whitney test was conducted to compare the perceptions of the two respondent categories (Table 2) the results indicating a general consensus of perception (0.01 p 0.93 at 5% significance level). However differences in perception existed between the two groups (p < 0.05) with regard to Lack of an enabling environment, Weak regulatory environment lacking in clarity and ambiguous, for both p = 0.02, Slow implementation of power sector reforms and investor concerns of foreign exchange risk both with p = 0.01; restrictions to level of foreign ownership of companies and reluctance of local institutions to provide equity financing having p=0.04 and 0.03 respectively. Table 1: Ranking of constraints and Kendalls coefficient of concordance (w)
All respondents Constraint Inability of local Institutions to provide equity financing Many requirements to obtain project approval Lengthy project approval process Delays as a result of lengthy bureaucratic procedures Resistance from Environmental groups Poor coordination between Government departments Low level of skills of personnel Involved with PPP Resistance from Civil society organisations Poor creditworthiness of power off taker Investors concerns for need of intensive management Political Interference in procurement process Weak regulatory framework lacking in clarity Slow implementation of power sector reforms Restrictions on the return on investment Accusations of corruption and corrupt tendencies Public resentment as a result of tariff increases Lack of an enabling regulatory framework Lack of political will and support Investors concerns of foreign exchange risk Lack of independence of regulatory body Lack of enabling legal framework Failure of government to honour its contract obligations Restrictions on foreign ownership of companies Kendalls coefficient of concordance w Level of Significance Mean 4.17 3.55 3.45 3.67 3.83 3.69 3.21 3.02 3.07 2.90 3.29 2.71 2.57 2.64 2.71 2.60 2.40 2.86 2.64 2.57 2.45 2.14 2.05 0.298 0.000 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Government Mean 3.74 3.84 3.79 3.74 3.79 3.37 3.11 3 3.05 2.89 2.63 2.42 2.26 2.47 2.47 2.32 2.11 2.21 2.11 2.16 2.21 1.95 1.79 0.328 0.000 Rank 4 1 3 5 2 6 7 9 8 10 11 14 16 13 12 15 21 18 20 19 17 22 23 Private sector Mean 4.78 4.22 4.11 4.11 3.78 4.33 3.33 3.11 2.89 3.11 3.56 3.67 3.67 3.11 2.78 3.11 3.22 2.89 3.11 2.78 2.44 2.56 2.67 0.365 0.000 Rank 1 3 5 4 6 2 10 16 17 13 9 8 7 16 19 14 11 18 12 20 23 22 21

276

Table 2: Mann Whitney U test

Mean Rank Constraints Lack of an enabling regulatory framework Weak regulatory framework lacking in clarity Slow implementation of power sector reforms. Lack of independence of regulatory body. Many requirements to obtain project approval. Lengthy project approval process. Restrictions on the return on investment. Restrictions on foreign ownership of companies. Poor coordination between Government departments. Delays as a result of lengthy bureaucratic procedures. Low level of skills of personnel Involved with PPP. Accusations of corruption and corrupt tendencies. Resistance from Environmental groups. Resistance from Civil society organisations. Public resentment as a result of tariff increases. Investors concerns for need of intensive management Political Interference in procurement process. Lack of political will and support. Lack of enabling legal framework. Failure of government to honour its contract obligations. Investors concerns of foreign exchange risk. Inability of local Institutions to provide equity financing. Poor creditworthiness of power off taker. Government 12.21 12.00 11.91 12.95 13.63 13.71 12.79 12.47 12.63 13.39 14.03 13.84 14.87 14.37 12.76 14.13 12.50 13.00 13.63 12.89 11.97 12.29 14.68 Private sector 19.33 19.78 19.83 17.78 16.33 16.71 18.11 18.78 18.44 16.83 15.5 15.89 13.72 14.78 18.17 15.28 18.72 17.67 16.33 17.89 19.83 19.17 14.11 Mann - Whitney U test 0.02 0.02 0.01 0.11 0.39 0.43 0.93 0.04 0.07 0.27 0.64 0.51 0.70 0.90 0.08 0.72 0.05 0.14 0.37 0.11 0.01 0.03 0.86

Table 3: Spearmans rank correlation coefficient Government Private Government Private

rs
Significance

1.000 NS 0.717 0.000

0.717 0.000 1.000 NS

rs
Significance

SURVEY RESULTS DISCUSSION An analysis of the ranking highlights the challenge to private sector participation posed by poor access to long term finance locally. Difficulties in raising finance has been identified elsewhere as a
277

significant hindrance to private sector participation in power infrastructure development in developing countries (Jyoti et al., 1998; ADB, 2000; Sader, 2000), and public private partnerships generally (Akerele et al., 2003). The need to obtain various approvals (ranked 2) at different steps of the process was perceived to be a significant constraint exacerbated by the bureaucratic nature of the system (ranked 3) causing delays, and by poor coordination between government departments (ranked 4 in importance). Also, inn a clear reflection of the situation in Uganda where environmentalists have been instrumental in the delayed take off of a number of proposed hydropower projects (World Bank, 2007) pressure from environmental groups was ranked among the top five constraints. . On the other hand, the legal and regulatory framework is considered conducive to private sector participation; a finding illustrated by its low ranking of the items lack of enabling regulatory framework (ranked 17), lack of independence of the regulatory body (ranked 20) and lack of enabling legal framework (ranked 21). Confidence in the governments policy encouraging private sector participation is further illustrated with the low ranking (22) of failure of government to honour its contract obligation. While corruption has been suggested as a significant constraint to the development and implementation of Public private partnerships in the electricity sector in Uganda sector (Engorait, 2004; Bbumba, 2006), the respondents did not rank it highly. The Mann Whitney test shows that some of the perceptions differed between the private and government sector respondents. The results suggest that the private sector respondents are more sensitive to shortcomings in the regulatory environment. This reflects previous observations (Sader, 2000; Fraser, 2005). Similarly, perception of the private sector and government sector respondents differed on the item slow implementation of power sector reforms, with the private sector respondents more conscious of this factor as a constraint to the implementation of PPPs. A difference in perception reflecting the different roles on PPPs is shown in the rankings for investors concern for foreign exchange risk where Z ratio is -2.54 and the mean ranks are private sector (19.83) and government (11.97); and inability of local financial institutions to provide financing Z ratio is -2.24 and mean ranks are private sector (19.17) and government (12.29). The private sectors heightened awareness of these two factors as constraints to the development and implementation of PPPs is likely to reflect their responsibility in structuring project finance and ensuring the viability of the venture. It may also reflect the issue of foreign exchange risk. CONCLUSIONS The literature review identified constraints to implementing PPPs in the electricity sector and these were incorporated into a survey questionnaire which measured the relative importance of these constraints as perceived by the public and private sector stakeholders in the Ugandan electricity sector. The results show in order of importance, the most significant constraints as being: 1. The inability of local institutions to provide equity financing; 2. Multiple requirements to obtain project approvals; 3. Lengthy project approval process; 4. Delays as a result of lengthy bureaucratic procedures; 5. Resistance from environmental interests; and, 6. Poor coordination between Government departments On the other hand (starting with the least important) the following were considered to be of least importance although this does not mean that the constraints are totally absent in the Ugandan electricity sector.
278

1. 2. 3. 4. 5.

Restrictions to the level of foreign ownership of companies Failure of government to honour its contract obligations Lack of enabling legal framework Lack of independence of regulatory body Investors concerns of foreign exchange risk

These findings from the study are valuable in the process of identifying any interventions to facilitate faster implementation and deal closure of PPPs. In doing so, they confirm much of the literature on the institutional constraints affecting PPPs that will assist other developing countries planning to or undertake similar reforms in their electricity sectors. REFERENCES ADB (2000) Developing best practices for promoting private sector investment in infrastructure, Asian Development Bank Ahadzi, M. (2001) The Private Finance Initiative: The procurement process in perspective. Proceedings of 17th annual ARCOM Conference 5-7 September, University of Salford. Vol. 1, 991-999 Ahadzi, M. and Bowles, G. (2004) Public Private Partnerships and contract negotiations: An empirical study. Construction Management and economics. 22 (9) 967-978. Akerele, D. and Gidado, K. (2003) The risks and constraints in the implementation of PFI/PPP in Nigeria. Proceedings of 19th Annual ARCOM Conference, 3-5 September, University of Brighton. Vol 1, 379-391 Akintoye, A. and Li, B. (2003) Public Private Partnership: Managing Risks and opportunities, An overview of Public Private Partnership, Blackwell Science. Bbumba, S. (2006) Power crisis: MP Okello was wrong, Sunday Monitor, Kampala, 15/01/06, http://www.monitor.co.ug, Accessed 15/01/06. Bing Li, Akintoye, A. and Edwards, P. J. (2005) Critical success factors for PPP/PFI projects in the UK construction industry. Construction Management and Economics, 23 (5) 459-471 Blackman, A. and Wu, X. (1999) Foreign Direct investment in Chinas power sector: trends, benefits and barriers. Energy Policy, 27 (12) 695-711. Government of Uganda (1999) Electricity Act. Government of Uganda. Energy Information Administration (2004) Great lakes Region, Burundi, Kenya, Rwanda, Tanzania and Uganda. http://www.eia.doe.gov/emeu/cabs/eafrica.html, July 15 Engorait, S. P. (2004) Power sector reforms in Uganda: Meeting the challenge of increased private sector investments and increased electricity access among the poor, Available Online: http://www.afrepren.org/Pubs/esr.htm, Accessed 25 July 2006. Fraser (2005) Lessons from the Independent Private Power Experience in Pakistan. Energy and Mineral Sector Board discussion Paper No. 14 .World Bank: Energy and Mining Sector Board
279

Izzaguire, T. (2000) Trends in private investment in the energy sector 1990-99: Private participation Energy, Energy services for the world poor, World Bank and Energy Sector Management Assistance Programme Jyoti , P., G and Sravat , A., K (1998) Development and project financing of private power projects in developing countries: a case study of India. International Journal of Project Management 16 (2), 99-105. Lamech, R. and Kazim, S. (2003) What international investors look for when investing in developing countries: Results from a survey of international investors in the power sector, Energy and MineralsSector Board Discussion Paper No. 06 .World Bank: Energy and Mining Sector Board, Leedy, P. D. and Ormrod, J. E. (2005) Practical Research: Planning and design, New Jersey, Pearson Prentice Hall. MoEMD (2002) The Energy Policy for Uganda, Ministry of Energy and Mineral Development. The Republic of Uganda, Mugyenzi, J. (2001) Reforming power sector in Africa; Power sector reform in Uganda. Proceedings of a National policy seminar, AFREPEN Occasional paper No 8 North, D., C (1990) Institutions, Institutional Change and Economic Performance, Cambridge, Cambridge University Press. Ostrom, E., Schroeder, L. and Wynne, S. (1993) Institutional Incentives and Sustainable Development: Infrastructure policies in perspective, Colorado, Oxford, Westview Press Incorporated. Rea, L. M. and Parker , R. A. (2005) Designing and conducting survey research: A comprehensive Guide, 3rd Edition, San Francisco, USA, Jossey-Bass, A Wiley Imprint. Sader, F. (2000) Attracting Foreign direct investment into infrastructure, Foreign Investment Advisory Services occasional paper 12, International Finance Corporation and World Bank, Shaokai Lu and Yan, H. (2007) An empirical study on incentives of strategic partnering in China: Views from construction companies. International Journal of Project Management, 25 241 249. Siegel, S. and Castellan John (1988) Nonparametric Statistics for the behavioral Sciences, 2nd Edition, McGRAW-HILL Book Company. Suruma, E. (2007) Budget Speech 2007/2008, Ministry of Finance Planning and Economic Development. Online http://www.monitor.co.ug/resources/Budget%202007-08.pdf, Accessed 17 June 2007 World Bank (2005) Uganda Country Brief 2005, Available online http://web.worldbank.org/ , Accessed 06 June 2006. World Bank (2007) Uganda Bujagali hydropower http://web.worldbank.org, Accessed 12 July 2007.
280

project,

Available

Online

ASSESSING SUPPLY AND DEMAND FOR EMERGING CONTRACTOR DEVELOPMENT PROGRAMMES

P.N. Qongqo1 and R.V. Milford2
1. 2.

Construction Industry Development Board, pumeleleq@cidb.org.za Construction Industry Development Board, rodneym@cidb.org.za

ABSTRACT Purpose: The aim of this paper is to present cidbs Supply and Demand Quarterly Monitor which provides an analysis and indication of construction budget spend per province and nationally which can be used to introduce interventions for distribution of projects developed for the NCDP (National Contractor Development Programmes). The paper outlines the structure of the industry in terms of the distribution of the size (and capability) of construction companies, ownership (and specifically blackownership), the value of public sector work accessed by the various grades of contractors, and competition within the industry, and investigates how this information can be used to develop targeting strategies for sustainable contractor development. Methodology: The statistical data for the 2007 supply and demandQuarterly Monitor was obtained from the South African Reserve Banks construction spend as per year on year basis (SARB 2007), Industry Insight Project Database (Industry Insight 2007) and the cidbs Register of Contractors. The analysis is conducted per province and nationally on a quarterly basis. Results & Value: Seventy five percent of the national budget for infrastructure development is spent on civil engineering (CE) works of which about 20% of the value of the contracts are awarded to small contractors (Grades 2 to 4). The remaining 25% of the budget is spent on general building (GB) of which 12% of the value of the contracts are awarded to small contractors. Keywords: Analysis, National Budget, Project Distribution, Competition, Targeting strategies. 1. Introduction The National Contractor Development Programme (NCDP) is a sector-specific intervention within the framework of South Africas Accelerated and Shared Growth Initiative (AsgiSA). Led by the Minister of Public Works and the Provincial MECs, it is committed to the accelerated growth of the construction industry to meet rising national demand.

1 281

Specifically, the NCDP is geared to address enhancing capacity and equity ownership across the different contracting categories and grades, as well as improved skills and performance in the delivery of capital works and maintenance across the public sector and advance levels of sustainability in the construction industry. This cidb Quarterly Monitor has been developed to provide input into developing targeted development intervention strategies in support of the NCDP. The first Quarterly Monitor covers the 1st to 4th quarters of 2007 and focuses on public sector supply and demand at a provincial level, and only deals with the General Building (GB) and Civil Engineering (CE) cidb Class of Works. This paper presents some of the results for public sector demand and he available supply, with a strong focus on the competitiveness and sustainability of contractors. The paper also highlights the challenges experienced in the lack of reliable data to support making decisions. 2. Background and Assumptions The background and assumptions used in developing and in interpreting the cidb Quarterly Monitor are highlighted below: i) Contracts Awarded: No reliable source of % Public Class of Works data exists on infrastructure expenditure at a Sector Spend 25% provincial level, let alone a breakdown of General Building (GB) Civil Engineering (CE) 75% infrastructure spend according to project size. fig. 2.1 The cidb Quarterly Monitor therefore uses details of contracts awarded obtained from the cidb iTender Register of Projects supported by the Industry Insight Project Database. The Industry Insight Project Database is considered to be about 60% or more accurate (and is constantly being improved). This data has then been scaled up to reflect total construction spend as reflected from Reserve Bank data. (The support of Industry Insight in providing this information is gratefully acknowledged.) ii) Public vs. Private Sector Demand: The cidb Quarterly Monitor only presents information on public sector contracts for General Building (GB) and Civil Engineering (CE) cidb Class of Works. Most contractors would however target both public and private sector opportunities. Building Civil Currently, public sector spend accounts for about 25% of total General Building Public Private Public Private activity and about 80% of Civil 25% 75% 80% 20% Engineering activity, although lower grade contractors, and in particular Sub-contracting Sub-contracting 50% 50% emerging contractors, would be more dependent of public sector contracts. fig. 2.2

2 282

iii)Sub-contracting: Much of the work of contractors in Grades 2 to 6 is through obtained sub-contracting to higher level contractors, and not as main contractors. No reliable source of information however exists Public Sector Main Contracts on the nature and scale of sub-contracting in South Class of Works as % of Total Africa, which differs between the building and General Building (GB) 10% 20% civil sectors as well as in fact during economic Civil Engineering (CE) fig. 2.3 cycles. As illustrated in the graphic in the preceding section, a broadly held view is that around 50% of the value of main contracts is sub-contracted out, but these estimates need to be improved upon in time. The impact of sub-contracting is illustrated below, using an assumed distribution of work between the grades. Typically, direct public sector contracts to contractors in Grades 2 to 6 accounts for about 10% of total turnover in General Building and about 20% in Civil Engineering.
Building (Rm)
Public; Main contractor Private; Main contractor Public & private; Sub-contractor 7&8
7&8

Civil (Rm)
Public; Main contractor Private; Main contractor Public & private; Sub-contractor

5&6

5&6

2 to 4

2 to 4

10 000

20 000

30 000

40 000

5 000

10 000

15 000

20 000

25 000

fig.2.4 iv) Supply: Contractor information is obtained from the cidb Register of Contractors, and considers only: Contractors registered in Grades 2 to 8; and General Building (GB) and Civil Engineering (CE) Class of Works. The data is then aggregated into the following categories:
Grade 7&8 5&6 2 to 4 Characteristics Provincial/regional local / regional local

fig. 2.5

Grades 2 to 4; typically established and developing contractors that operate at a local level; Grades 5 and 6; typically contractors in transition from operating at a local to a regional / provincial level; and Grades 7 and 8; typically contractors that operate a regional / provincial level. Grade 9 contractors are excluded from the analysis as these typically operate at a national / international level. v) Annual Turnover of Contractor Enterprises: Although very dependent on the nature of work (e.g. roads, water supply and excavations), an important indicator in

3 283

interpreting the cidb Quarterly Monitor in order to Contractor Average Annual assess the sustainability of contractors is the ratio Grade Turnover (Rm pa) 7&8 63 of the available work to the turnover per contractor 5 & 6 11 taking into account both public and private sector 2 to 4 1.3 opportunities and sub-contracting opportunities. fig. 2.6 The average annual turnover of contractors per Grade is given in fig. 2.6, obtained from the cidb Register of Contractors. 3. Discussion The information available in the January 2008 cidb Quarterly Monitor and the interpretation of this information is given below. Because of the lack of complete information, the interpretation of this information is given in relative terms and not absolute terms, i.e. relative to the national average. i) Demand: The public sector contracts awarded in South Africa in Grades 2 to 8 is shown in the following table and figure. The distribution in the public sector contracts awarded between the grades clearly reflects the infrastructure requirements of South Africa, but also reflects the distribution of public sector contracts to reflect contractor development priorities. This is illustrated, for example, in the distribution of contracts awarded in KwaZulu Natal and Limpopo in which a higher priority is given to Grades 2 to 4 contractors as compared to the national average on fig. 3.1.
Grade 7 and 8 5 and 6 2 to 4 7 and 8 5 and 6 2 to 4 Value Public pa (Rm; Corrected) Building 6 260 2 690 1 902 Civil 13 183 6 186 2 773 % 57% 24% 17% 59% 27% 12%

fig. 3.1

KwaZulu Natal

4 284

Limpopo

fig. 3.2 ii) Supply: Information on the numbers of contractors per province as well as black and women ownership is included in the cidb Quarterly Monitor, which can be used for contractor development strategies. For South Africa as a whole (and in fact for every province in South Africa), more than 80% of Grade 2 to 4 building and civil contractors are black owned (defined as more that 51% ownership control). Of interest is that close to 80% of all Grade 5 and 6 building contractors are black owned.
Grade 7 and 8 5 and 6 2 to 4 7 and 8 5 and 6 2 to 4 Number of Contractors Building 128 479 3 005 Civil 192 637 2 026 % Black Owned 40%-80% >80% >80% <40% 40%-80% >80%

fig. 3.3 The distribution of black ownership for selected provinces is given in the following figures. While the high percentage black ownership in Grades 5 to 8 in several provinces is noted with encouragement, the sustainability of contractors must be the ultimate goal.

Limpopo

Mpumalanga

5 285

North West

fig. 3.4 iii)Supply vs. Demand: The NCDP needs to take cognisance of supply vs. demand when developing targeted intervention strategies, which can be achieved through: increasing demand; the sustainability of demand with time; the distribution of demand between various grades of contractors (which can be influenced through various procurement strategies); and the targeting of contractors within and between grades. Important indicators of the sustainability of contractors is the average public sector contract value per contractor per year and the average turnover of contractors as is illustrated below for South Africa.
Grade Average Value per Contractor pa (Rm) Building 48.91 5.62 0.63 Civil 68.66 9.71 1.37 Average Turnover (Rm pa) 63 11 1.3 63 11 1.3

7 and 8 5 and 6 2 to 4 7 and 8 5 and 6 2 to 4

fig. 3.5 While it must be recognised that: The public sector only accounts for around 25% of total building activity and around 80% of total civil activity, and that sub-contracting accounts for about 50% of activity, i.e. direct public sector contracts to contractors in Grades 2 to 6 accounts for about 10% of total turnover in General Building and about 20% in Civil Engineering. It is clear from the above that Grades 2 to 4 is a highly competitive and nonsustainable environment. In fact, it is estimated that contractors in Grades 2 to 4 can only expect to be awarded on average only one public sector main contract every year or so! This should be taken into account when developing targeting strategies.

6 286

KwaZulu Natal

Limpopo

Mpumalanga

fig. 3.6 (It should be noted however that some degree of caution should be used when interpreting the competiveness indicator above for provinces with low construction spend and/or small numbers of contractors and in particular for the Northern Cape.) The competitiveness within the industry is illustrated further below, in which the average public sector contract value per contractor is shown for Grades 2 to 4 relative to the national average (where yellow denotes competition 15% of the national average, orange denotes > 15% of the national average and green < 15% of the national average). Strategies to increase supply in highly competitive provinces should be done with caution and a more appropriate strategy could be to focus on selected contractors.

7 287

Building; Grades 2 to 4

Civil; Grades 2 to 4

fig. 3.7 iv) Business Confidence Index: The public sector competitive index presented above is an index relative to the national average and does therefore not give an indication of the overall competitiveness. To address this, the cidb is presently developing a Business Confidence Index (BCI) per province and contractor grades, which will be published shortly. However, in the interim, the BER Building Confidence Index and the FNB/BER Civil Confidence Index (BER 2008) for the country as a whole and covering public and private sector work is presented below, where the index represents the percentage of respondents rating the business conditions as satisfactory.
BER Building BCI
100 100

FNB / BER Civil BCI

Business Confidence Index
Sep-07 Jun-07 95 90 85 80 75 70 65 60 55 50 Sep-06 Sep-07 Dec-06 Dec-07 Mar-07 Mar-06 Jun-06 Jun-07

Business Confidence Index

95 90 85 80 75 70 65 60 55 50 Sep-06 Jun-06 Mar-06 Dec-06 Mar-07 Dec-07 BER Residential BER Non-Residential

Source: Bureau for Economic Research; http://www.ber.ac.za

fig. 3.8

8 288

It can be seen from the above that business confidence in non-residential sector has remained relatively constant at about 90% to 95%, while business confidence in the residential sector is dropping and hence competitiveness is increasing. (Note however that the public sector is not a major player in the residential sector.) Business confidence in the civil sector increased in December 2007, but it can be seen that this is a relatively competitive sector with business confidence as a whole around 80% for the preceding 4 quarters. 4. A Guide to Targeting The cidb Quarterly Monitor must only be seen as a guide to assist in developing targeted intervention strategies. Specifically, the cidb Quarterly Monitor should be seen as a tool for interrogating existing intervention strategies. 5. Conclusions The paper has identified key elements supporting the assessment of supply and demand for developing contractors from the public sector in terms of the targets and objectives of the NCDP. For both the General Building Civil Engineering sectors, one can observe that nationally: Grade 2 to 4 contractors operate in a highly competitive and probably non-sustainable environment; and Grade 5 to 8 contractors operate in a far more sustainable environment. Various strategies are possible to increase the sustainability of Grade 2 to 4 contractors, and the NCDP promotes targeting contractors who perform satisfactorily, and rewarding performance improvement through continuity of work. However, the NCDP also recognizes that contractor development should also focus on Grade 5 and above. Specifically, opportunities exist to support the development of Grade 5 and 6 contractors by: encouraging procurement strategies that preference best practice contractors for work opportunities; adopting procurement strategies that encourage joint venturing with higher Grade contractors; and unbundling of large contracts to enable greater participation of Grade 5 and 6 contractors. In addition to highlighting the competitive nature of the contracting industry (in particular in Grades 2 to 4), this paper has also highlighted the lack of available information on which to make decisions, in particular: limited data on infrastructure expenditure at a provincial level; limited data on infrastructure spend according to project size; limited information on the nature of sub-contracting.

9 289

In partnership with other organisations, the cidb aims to address these information gaps. 6. References 1. BER (2007). BER Building Confidence Index, FNB/BER Civil Confidence Index, http//www.ber.ac.za. 2. CIDB (2008). The Construction Industry Development Board Register of Contractors; http//www.cidb.org.za 3. Industry Insight (2007). Industry Insight Project Database, http://www.industryinsight.co.za 4. SARB (2007). The South African Reserve Bank Quarterly Bulletin, December 2007, http//www.resbank.co.za

10 290

INFLUENTIAL ELEMENTS OF CURRICULUM DEVELOPMENT FOR MASTERS REAL ESTATE EDUCATION IN SOUTH AFRICA: A LITERATURE RESEARCH
Chikafalimani SHP1, Cloete CE2
1

School of Civil Engineering, Surveying and Construction, University of KwaZulu-Natal, chikafalimani@ukzn.ac.za, Tel No. 031-2603703 Department of Construction Economics, University of Pretoria, chris.cloete@up.ac.za, Tel No. 012-4204545

ABSTRACT Purpose of this paper - The aim of this paper is to report influential elements of real estate curriculum development which were identified in a literature survey for postgraduate real estate education in South Africa. Methodology/Scope - Several literature sources related to real estate education were used to identify elements influencing the development of real estate curricula. Findings - Research revealed that several factors including: accreditation bodies; employers; environmental concerns; finance; globalisation; government and political factors; technology advances; land and urban form changes; local communities and professionals; real estate educators; social and cultural factors; and students are influential elements in curriculum development. Research limitations - Results of the study will not directly influence change to the processes of curriculum development for postgraduate real estate education in South Africa. Curricula development will largely depend on outcomes of discussions of lecturing staff and university administrations implementing the courses. Value - The study will contribute towards curriculum improvement of postgraduate real estate education in South Africa. Keywords: Real estate, education, curriculum, South Africa. 1. INTRODUCTION The paper describes the influential elements of real estate curriculum development based on a literature research which was conducted for the critical assessment of postgraduate real estate education in South Africa. The property discipline today is subjected to extraordinary forces that redefine its attributes and introduce new expectations for those with property involvements (Roulac, 2002). These changes can be viewed as being influential elements of university real estate curriculum development processes. A comprehensive understanding of these factors can support real estate educators in the processes of curriculum improvement. However, these changes which have recently occurred in the real estate industry seem not to have influenced university real estate education curricula in South Africa to the extent that they have been felt in the industry. This was undesirable because curricula could become irrelevant to the industry and students. To address this problem, real estate educators are required to regularly conduct curriculum review to accommodate new requirements from the industry (Callanan and McCarthy, 2003). This can be achieved partially by making use of relevant academic literature appropriate for real estate curriculum development processes (Gallupo and Worzala, 2004).

291

2. MOTIVES AND MASTERS REAL ESTATE EDUCATION IN SOUTH AFRICA The postgraduate real estate programmes in South Africa which are linked with this literature research are five in total (Cloete, 2002; Chikafalimani and Cloete, 2006a; and Chikafalimani and Cloete, 2007). University of Pretoria offers Master of Science in Real Estate, which was introduced in 1990. The course comprises two years of course-work in property development, property management, property valuation and related subjects, as well as a treatise. The University of Witwatersrand offers a Masters in Property Development and Management, while the University of Cape Town has been offering a Masters in Property Studies since 1999 and the University of the Free State introduced a Masters in Property Science in 2002. The Nelson Mandela Metropolitan University started to offer Master of Science in the Built Environment on 24th June 2002. It is important for real estate educators to understand reasons why individuals decide to enrol for professional courses in real estate in order for them to develop relevant curricula. Hakfoort, Berkhout and Manshanden (2003) did a study on the demand for professional real estate education in the Dutch real estate industry. Results revealed that individuals are attracted to attend professional real estate education due to the following motives: the knowledge deficiency motive; the network motive; the perks motive; the labour market motive; and the selection or screening motive. 3. INFLUENTIAL ELEMENTS OF REAL ESTATE EDUCATION Important factors identified in the literature research which showed significant influence on real estate curriculum development are reviewed next in the section: 3.1 Accreditation bodies Real estate education accreditation bodies are established to enforce and regulate laws responsible for governing issues related to real estate professionals for example registration of professionals, observance of professional ethics, and continuous professional development (Isakson, Rabianski and Schulte, 2003). They are also responsible for accreditation of real estate courses (Isakson, Rabianski and Schulte, 2003). In so doing they scrutinise real estate curricula to ensure that the curricula are always of high quality in order to produce competent students who would serve the public well. As a result, accreditation bodies suggestions during accreditation exercises are critical in real estate curriculum development processes. Internationally, the RICS is a good example of a professional body which has enormously influenced the development of real estate curricula in different parts of the world (Schulte, 2003). 3.2 Employers Employers recruit the graduates from real estate programmes. They are the ones who test the competence of students who have graduated. As a result, they are in a position to recommend areas requiring changes in the curriculum in order to improve the quality of graduates. In addition, employers have industrial experience and are aware of the challenges real estate is facing as a profession. In that way they are in the right position to recommend real estate knowledge and skills which require emphasis in the curriculum (Black, Carn, Diaz and Rabianski, 1996; and Galuppo and Worzala, 2004). 3.3 Environmental concerns Environmental concerns have now become very influential in many sectors including real estate industry (Roulac, 2002). There is a lot of lobbying going around the world against global warming and to protect the environment and endangered species. Construction which is linked to real estate is viewed as one of the major contributing factors to climatic change and environmental degradation. Regulations requiring that environmental impact assessment reports accompany
292

proposals for new property developments are being implemented by local authorities in South Africa. As a consequence real estate curriculum has been challenged to accommodate relevant environmental issues important to real estate students and their localities. In that way the environmental concerns has influenced selection of real estate topics. 3.4 Finance Historically, real estate asset has been treated as a financial asset (Black, Brown, Diaz, Gibler and Grissom, 2003). As a result finance has been a major influential factor in changing real estate curriculum. The importance and emphasis of finance came to the scene when financial crises lead to the huge losses in property investments in America, Europe and Asia (Dasso and Wood, 1980; Black, Brown, Diaz, Gibler and Grissom, 2003; and Nappi-Choulet, 2003). Many financial institutions and investors became bankrupt. A major lesson learnt from these financial crises was to introduce a strong component of real estate finance in real estate studies. In America the loss was so much felt that the approach to real estate education changed to become more finance focused until today (Schulte, 2003). Recent emergence of real estate education in French business schools with real estate finance as one of the subjects being emphasised is new evidence where finance has influenced development of real estate curriculum (Nappi-Choulet, 2003). However, the dominance of finance in real estate studies has been questioned. Schulte (2003) argues that in future the role of finance and investment in education and research will decrease partly because real estate educators and researchers not coming from America and Canada, whose participation in the continental and international real estate conferences is going to grow, view real estate broadly and not only from the finance perspective. This will change real estate education and research focuses in the future. Black, Brown, Diaz, Gibler and Grissom (2003) added that while the link to finance has proved to be a beneficial one, it has also resulted in the setting of artificial boundaries on real estate research. The authors recommend a broader look at real estate and propose the lowering of disciplinary boundaries. Black, Brown, Diaz, Gibler and Grissom (2003) indicated that if every real estate problem is seen as a finance problem, researchers miss the opportunity to use tools and thoughts from other disciplines. The observations made propose a balance in the real estate curriculum between finance and other courses to produce competent real estate professionals for the industry and unrestricted research. Roulac (2002) compared the different real estate education approaches. He observed that if a student pursues real estate studies in the USA, most likely will take courses from and study predominantly with professors housed or affiliated with the department of finance in college of business. Such a curriculum can provide a comprehensive exposure to the multiple disciplines of business, which exposure is all very apropos, for each property is itself a business (Roulac, 2002). However, Roulac (2002) observes that such a business school of study will omit the learning that could be obtained through a UK School of the Built Environment, with its heavy emphasis on the classic surveying curriculum, involving an orientation to basic close-to-the-land disciplines. Consequently, strange as it might seem, the majority of graduates of USA real estate programmes may be blissfully ignorant of the subject of geography, generally, and how it relates to issues of property and place specifically (Roulac, 2002). The British approaches continued to reflect a property primacy, with a broader view of the discipline (Roulac, 2002). However, certain real estate education programmes in continental Europe seek to bridge the property emphasis of the UK and the financial emphasis of the USA. An interdisciplinary approach, bringing together the multiple perspectives of business management, finance, and the school of the built environment, prospectively offers a more balanced and richer course of preparation (Roulac, 2002). 3.5 Globalisation Globalisation of estate education and transactions is gaining importance (Roulac, 2002; Schulte and Schulte-Daxboek, 2003). Today it is common to see students going to study real estate courses in
293

foreign countries either because in there countries no such courses are offered or merely to gain international exposure in real estate education and transactions (Chikafalimani and Cloete, 2006a). In addition, there is also an increase in the globalisation of real estate transactions being undertaken by investors in different real estate markets of the world (Roulac, 2002; Schulte and SchulteDaxboek, 2003). Therefore, it was important today that real estate education convey the knowledge required for property involvements in the global context (Roulac, 2002; Schulte and SchulteDaxboek, 2003). This can be achieved by including international aspects into the curriculum and by initiating international exchange programmes between the real estate departments of universities (Schulte, 2002). Schulte and Schulte-Daxboek (2003) observed further that the international exchange of real estate knowledge was important as the field of real estate education and research was a young discipline and many aspects of real estate have not yet been investigated sufficiently. As different countries have focused their real estate education and research on different issues it turns out to be even more important to internationalise real estate education (Schulte and SchulteDaxboek, 2003). Some of the subjects with international contents which can be incorporated into the real estate curriculum are: foreign real estate markets, international real estate investment, globalisation of real estate markets, and comparison of international standards and practices in real estate (Schulte and Schulte-Daxboek, 2003). As a consequence, globalisation has influenced real estate curriculum development. 3.6 Government and political factors Government and related institutions have also influenced change to real estate curriculum. The responsibility of government and related institutions is to set and enforce laws which include laws for property. It is important for real estate students to be exposed to these laws in the curriculum for them to function competently when they graduate. In South Africa, since political stability and election of a democratic government in 1994, real estate education is equally transforming to accommodate government and society concerns (Chikafalimani and Cloete, 2006b). Blacks prior to 1994 never experienced the benefits and responsibilities of property ownership due to racial discriminatory policies and laws. To address inequalities of the past in these important sectors of the economy, government introduced property and construction charters; and land transformation policies. Another significant development after 1994 has been the increasing participation by blacks and women in real estate educational programmes (Chikafalimani and Cloete, 2006b). It is the duty of real estate educators to understand such issues and identity appropriate real estate educational needs which should be incorporated in the curriculum to address new real estate educational needs in the democratic South Africa. 3.7 Information technology advances Bill Gates, Chairman and founder of Microsoft Corporation, the worlds largest computer software company, identified real estate as one of the industries which will be revolutionised by technological change (Bridal and Laing, 1998). The change has already started and is moving at fast pace. Those who realise this and welcome it will ensure survival in the profession (Bridal and Laing, 1998). This revolution has indeed influenced the adaptation of real estate curriculum to equip students with relevant computer skills. All real estate professions have been affected either negatively or positively by advances in information technology. Real estate appraisal is one of the real estate professions under threat due to the rising predominance of information technology (Bridal and Laing, 1998). With the growth of structured databases, more appraisals will be automated, resulting in fewer appraisers who will be paid less money to complete more appraisals in less time (Bridal and Laing, 1998). In South Africa, property valuers offering private valuation services to banks for home loan purposes are going through similar threats. Appraisers face two options to survive: become generalists and diversifying their reliance on other aspects of real estate; or become specialists, focusing on one exclusive niche
294

in appraisal or on some other innovative way to add value (Bridal and Laing, 1998). Bridal and Laing (1998) recommended to the Appraisal Institute of Canada to move rapidly towards introducing a new programme to train candidates to be competent appraisers over the whole range of subjects related to real estate. They added that todays competitive environment due to advances in technology demanded professionals who are innovative, creative and adaptable (Bridal and Laing, 1998). 3.8 Land and urban form changes To a large extent, real estate development is dependent on land and urbanisation (Appraisal Institute, 2002). As a consequence, real estate studies in different parts of the world are influenced to a great magnitude by land issues and urban form (Roulac, 2002). Land may be used for many purposes, including agriculture, commerce, industry, habitation, and recreation. Land use decisions are influenced by climate, topography, distribution of natural resources, population, and industry (Appraisal Institute, 1992). Economic conditions, technological practices, and cultural influences have also affected land use. In addition land is one of the major resources in the real estate industry (Appraisal Institute, 1992). As a result changes in land economics, use, laws and management practices have influenced the development of real estate curricula differently in different parts of the world over the years (Roulac, 2002). The effects of urbanisation on urban land use and form are another concern for the society and real estate industry today (Roulac, 2002). Today the increase of urban decay, crime, traffic congestion, and long travel distances from residential areas to workplaces in the urban areas have influenced a new pattern of real estate investment decisions. These society concerns have challenged the real estate curriculum and educators to accommodate new topics and research focuses. 3.9 Local communities and professionals Local communities and professionals have an influential role in the design and development of real estate curriculum because they also benefit from a relevant curriculum. Local professionals can be helpful contributors in the process of real estate curriculum development because most of the time they employ or work with real estate graduates from a local university. They are also in constant touch with new developments in the real estate industry. As a result they are in a good position to recommend topics and other relevant issues in curriculum development (Galuppo and Worzala, 2004). Therefore, it is important for real estate educators to involve local communities and professionals in processes of curriculum development. This issue also relates to the moral obligation universities have to undertake by serving their local communities. 3.10 Real estate educators Real estate educators are critical in the processes of real estate curriculum design, review, quality control, development, and delivery (Butler, Guntermann, and Wolverton, 1998; and Galuppo and Worzala, 2004). Responsibilities of real estate educators include: introducing new innovations in the traditional curriculum, applying high quality teaching techniques, and teaching relevant material. Additionally, real estate educators are always required to investigate needs of the industry and students, and to conduct relevant research so that curricula are regularly updated based on those needs and not necessarily based on their personal desires and satisfaction (Manning and Roulac, 2001; and Callanan and McCarthy, 2003). As consequence, hiring of experienced and well qualified educators is fundamental to improved real estate curriculum development and delivery (Hardin, 2000). Educators also investigate course contents of peer institutions offering similar curricula to ensure that they are offering competitive programmes (Murphy, 1999; and Galuppo and Worzala, 2004). In that process, curricula of peer institutions have also contributed towards curriculum design and development for other institutions.

295

3.11 Social and cultural factors Social and cultural factors involve human elements of decision making which include all aspects of non-financial decision factors normally called tastes and preferences (Gibler and Nelson, 2003). Also included in this are beliefs and religion. These factors influence the real estate customers in the processes of real estate investment decision making (Gibler and Nelson, 2003). It is therefore advisable for real estate educators to identify the social and cultural factors showing huge influence in the real estate markets and get them incorporated in the curriculum. However, Gibler and Nelson, 2003 noted that most real estate study is based on neoclassical economics. They argue that human elements of decision making should not be ignored in the study of real estate. Integrating the study of consumer behaviour with the economic approach to real estate can benefit real estate students, teachers, researchers and practitioners in their real estate decision making processes. Great knowledge of real estate consumers and their behaviour will lead to better understanding and prediction of decision makers actions in the real estate market, as well as greater success in the marketplace (Gibler and Nelson, 2003). 3.12 Students Students have a significant role to play in the process of real estate curriculum development. They are influential because they also investigate what skills they need to be able to function well in the workplace (Manning, 2002; and Callanan and McCarthy, 2003). In addition, feedback received from real estate student assessment reports can support educators in the efforts of improving real estate curriculum at the universities. However, Manning (2002) argued that when it comes to the selection of specific course content, many faculty place little or no importance on suggestions from students because their students (particularly undergraduates) are too inexperienced and unfamiliar with the bigger picture to be a good judge of what specific topics would be better to include within a particular course. While this is true, real estate educators should not underestimate the value of getting todays students more involved in their own education. While prospective employers obviously possess valuable knowledge that can assist faculty to select more useful and relevant course content, students are also in an excellent position to assist faculty to improve their courses for at least three reasons (Manning, 2002). First, many students (particularly graduate Masters students) have substantial work experience and are aware of skills and knowledge needed at workplace. Second, many students (even undergraduates) investigate knowledge and skills required for them to become successful in a particular employment area. Third, while some students may not be familiar with what specific knowledge and skills would help them become successful (particularly undergraduates with little work experience), virtually all students can assist faculty with an evaluation of the effectiveness of their teaching materials and pedagogy and thus improve the quality of future student learning in a particular course. Students may also be used by universities to assess the teaching abilities of faculty members to improve teaching programmes (Manning, 2002). The study by Manning (2002) identifies the need to involve students in the process of real estate curriculum development as they are in a position to also contribute valuable input. Another way in which students have contributed towards real estate curriculum development is based on the type of training real estate professionals require. Kohnstamm (1995) posed a question: What type of training will real estate professionals need in the twenty-first century? What sort of people will be required? To address this question, real estate educators need to undertake detailed research on the type of students to be taught and the suitable curricula to be developed to meet their needs. Kohnstamm (1995) added that the big debate in the UK was about whether future real estate professionals should be given undergraduate training (full-time or part-time) immediately after secondary school or whether the profession has more need of people who have had a different academic education at degree level and need to be given extra training in real estate later at postgraduate level as a conversion route. A single answer cannot be given to this question. Based on
296

Kohnstamms (1995) opinion, both routes are possible. The significant point to be identified from Kohnstamms article is that students with different backgrounds will influence postgraduate real estate curriculum development differently so that their unique educational needs are addressed. 4. CONCLUSIONS AND RECOMMENDATIONS This paper investigates elements influencing curriculum development for postgraduate real estate education in South Africa and other parts of the world. This literature research has revealed that accreditation bodies; employers; environmental concerns; finance; globalisation; government and political factors; technology advances; land and urban form changes; local communities and professionals; real estate educators; social and cultural factors; and students are some of the influential elements of real estate curriculum development. As a consequence, it is recommended for real estate educators to conduct holistic investigations by considering all relevant factors applicable to real estate and education in the processes of curriculum development for students and the industry. The study has also proven that real estate is a complex asset and multidisciplinary in nature. Production of competent graduates who will meet industrial requirements can only be achieved by exposing students to a several range of issues and concepts in the curriculum. A part from the traditional real estate course content, a competent real estate professional also requires exposure among others to the effects of finance; social and cultural factors; laws; and political factors in the curriculum. Finally, findings of the paper have revealed that the real estate industry is going through a lot of changes and challenges. It is the responsibility of real estate educators to review the curriculum regularly in order to accommodate the concerns from the society and industry. REFERENCES American Institute of Real Estate Appraisers. 1992. The Appraisal of Real Estate. 10th ed. Chicago: American Institute of Real Estate Appraisers. Black, R.T.; Carn, N.G.; Diaz J.; and Rabianski, J.S. 1996. The Role of the American Real Estate Society in defining and promulgating the study of real property. The Journal of Real Estate Research, 12 (2), p. 183 193. Black, R.T.; Brown, M.G.; Diaz, J.; Gibler, K.M.; and Grissom, T.V. 2003. Behavioural research in real estate: a search for the boundaries. Journal for Real Estate Practice and Education, 6 (1), p. 85 112. Bridal, J. and Laing, R. 1998. The future of Canadian appraisal education. The Canadian Appraiser, 42 (4), p. 38 42. Butler, J.Q.; Guntermann, K.L.; and Wolverton, M. 1998. Integrating the real estate curriculum. Journal of Real Estate Practice and Education, 1 (1), p. 51 66. Callanan, J. and McCarthy, I. 2003. Property education in New Zealand: industry requirements and student perceptions. Journal of Real Estate Practice and Education, 6 (1), p. 23 32. Chikafalimani, S.H.P. and Cloete, C.E. 2006a. Postgraduate real estate education in Africa. Paper presented at International Real Estate Research Symposium 2006, Kuala Lumpur, Malaysia 11-13 April 2006.

297

Chikafalimani, S.H.P. and Cloete, C.E. 2006b. Transformation in property education in South Africa. Paper presented at Third Vittachi International Conference on Education, Al Akhawayn University, Morroco 1-5 July 2006. Chikafalimani, SH.P. and Cloete, C.E. 2007. A critical assessment of postgraduate real estate education in South Africa: importance and research approach. Paper presented at the Association of Schools of Construction of Southern Africa 2nd Built Environment Conference, Port Elizabeth, South Africa 17-19 June 2007. Cloete, C.E. 2002. Progress in real estate education in South Africa. Journal of Property Management, 20 (5), p. 369 382. Dasso, J. and Woodward, L. 1980. Real estate education: past, present and future the search for a discipline. Journal of the American Real Estate and Urban Economics Association, 8, p. 404- 416. Galuppo, L.A. and Worzala, E. (2004). A study into the important elements of a Masters Degree in Real Estate. Journal of Real Estate Practice and Education, 7 (1) p. 25-42. Gibler, K.M. and Nelson, S.L. 2003. Consumer behaviour applications to real estate education. Journal of Real Estate Practice and Education, 6 (1), p. 63 83. Hakfoort, J.; Berkhout, P.; and Manshanden, W. 2003. The demand for professional education: Evidence from the Dutch real estate industry. Journal of Real Estate Practice and Education, 6 (1), p. 5 21. Hardin III, W.G. 2000. Practical experience, expectations, hiring, promotion and tenure: a real estate perspective. Journal of Real Estate Practice and Education, 3 (1), p. 17 34. Isakson, H.R.; Rabianski, J.; and Schulte, K.-W. 2003. The accreditation of collegiate real estate education programs in the United States and the European Union. Paper presented at the Pacific Rim Real Estate Society Conference, Brisbane, Australia 19-22 January 2003. Kohnstamm, P. 1995. Trends in European Investment, performance and real estate education. Journal of Property Valuation and Investment, 13 (2), p. 51. Manning, C. 2002. Improving real estate and other business courses through targeted student assessment. Journal of Real Estate Practice and Education, 5 (1), p. 27 43. Manning, C. and Roulac, S.E. 2001. Where can real estate faculty add the most value at universities in the future. Journal of Real Estate Practice and Education, 4 (1), p. 17 39. Nappi-Choulet, I. 2003. The recent emergence of real estate education in French business schools: The paradox of the French experience. Journal of Real Estate Practice and Education, 6 (1), p. 55 62. Roulac, S.E. 2002. Requisite knowledge for effective property involvements in the global context. In monograh of Real Estate Education Throughout the World: Past, Present and Future. Schulte, K.-W. (editor). 2002. Kluwer Academic Publishers. Schulte, K.-W. (editor). 2002. Real Estate Education Throughout the World: Past, Present and Future. Kluwer Academic Publishers.

298

Schulte, K.-W. 2003). The role of investment and finance in real estate education and research throughout the world. Journal of Property Management, 21 (1), p. 97 113. Schulte, K.-W. and Schulte-Daxboek, G. 2003. Internationalisation of Real Estate Education. Paper presented at the Pacific Rim Real Estate Society Conference, Brisbane, Australia, 19th 22nd January 2003.

299

AN INVESTIGATION INTO INFORMAL CRAFT SKILLING IN THE KENYAN AND SOUTH AFRICAN CONSTRUCTION SECTORS
Wachira N1, Root D1, Bowen PA1 Olima W2
1
2

Department of Construction Economics and Management, University of Cape Town, wchisa001@uct.ac.za, Tel No. 021-650 3443 Department of Real Estate and Construction Management, University of Nairobi

ABSTRACT Purpose of this paper - In the Kenyan and South African construction sectors, much attention has been given to the shortages and inadequacies of skilled personnel. Among construction craftsmen, shortages and inadequacies of skills largely reflects the limited number of workers possessing formally certified skills because they are informally trained and are consequently deemed to be inadequately skilled. This paper investigates the prevalence of informal skilling in these two countries. Methodology/Scope - This paper reports on the preliminary findings of ongoing research aimed at inter alia, exploring the methods of skill acquisition among construction craftsmen in both Kenya and South Africa. The focus is on the process of informal skilling which is common among craftsmen engaged in the formal and informal construction sectors. Data were collected via in-person surveys using semi-structured questionnaires. The questionnaires were administered to craftsmen on the construction sites. Findings - Preliminary findings indicate that informal skilling is the most common method of training craftsmen both in Kenya and South Africa. It is therefore pertinent for any training interventions in the sectors to take advantage of the strengths and address the weaknesses of this mode of training in a bid to tackle the prevailing shortages and inadequacies of skilled personnel. Practical implications - The results of the study suggest that both the Directorate of Industrial Training (DIT) in Kenya and the Construction Education and Training Authority (CETA) in South Africa, need to take cognisance of the informal skilling method in the formulation of viable training programs for construction craftsmen in the two countries. Value - The findings of the study, though not intended to provide a solution, will be useful in developing viable policy interventions to enhance the training of construction craftsmen and counter the crippling skill shortages. Keywords: Informal skilling, Craftsmen, Kenya, South Africa. 1 INTRODUCTION In the Kenyan and South African construction sectors, much attention has been given to the shortages and inadequacies of skilled personnel. Skilled personnel include construction craftsmen like masons, carpenters, plumbers, electricians, painters and other such tradesmen. Among construction craftsmen, shortages and inadequacies of skills largely reflect the limited number of workers possessing formally certified skills. Anecdotal evidence gathered by the authors indicates
300

that the limited formal certification of craftsmen in both countries may be due to the prevalence of informal training in the construction sector. This paper reports on the preliminary findings of an ongoing research that aims at investigating the modes of craftsmen skilling. 2 INFORMAL SKILLING Informal skilling, which includes both informal skills training and informal apprenticeship, is an ad hoc and unsystematic method of learning skills on-the-job which is received within the context of day to day production activities (Middleton et al., 1991). It mainly involves learning via observing and doing and is largely confined to initial employment training with limited continuation of training and skills upgrading. Informal skilling is geared towards the transmission of existing practices without or with minimal external input (e.g. from colleges). The implication of this is that the masters ability to train is limited to his current skill and knowledge and this often results in low productivity (Ziderman, 2003). Informal skilling is common in the construction sectors of many developing countries e.g. Philippines, Indonesia, Egypt, India, Mexico and Brazil (International Labour Organisation, 2001; Alwi et al., 2006). Haupt et al. (2005) reported that among the contractor employees in the Western Cape province of South Africa, 31% of the craftsmen, 54% of semi-skilled operatives, and 68% of the general operatives are trained informally. In Iran, Sri Lanka and China the number of craftsmen trained informally are 95%, 80% and 90% respectively (Zakeri et al., 1996; Jayawardane and Gunawardena, 1998; Sha and Jiang, 2003). Similarly, informal skilling has been observed in developed nations for example, in the USA Rowings et al. (1996) report that it accounts for 76% of craft training. In many of the developing countries of Sub-Saharan Africa, including Kenya, employment in the formal sector has been shrinking as a result of a combination of poor economic performance, structural adjustment policies (SAPs), and a growing number of job seekers entering the job market resulting from high population growth rates (Ziderman, 2003). Consequently, job seekers are entering the informal sector in growing numbers and creating a significant need for skills development. Accordingly, informal skilling is the most prevalent mode of training in the informal sector (Johanson and Adams, 2004). Moreover, in Kenya and South Africa, informal skill training is further encouraged by the low levels of formal craftsmen training (Construction Industry Development Board (CIDB), 2004) as exemplified in South Africa by the reduction of trainees from 5697 in 1970 to 769 in 1990 (Cattell et al., 1996) and the recruitment of only three construction apprentices in 2002 in Kenya (Directorate of Industrial Training, 2006). Informal skills training and apprenticeship has thus become common, especially among young people who, for various reasons, are unable to progress up the academic ladder; or gain admission to vocational training institutions; or those of all ages who cannot find employment in the formal sector (Kent and Mushi, 1995; Johanson and Adams, 2004). In Kenya, the informal sector is estimated to be training more school leavers than all formal vocational training institutions combined, making it a significant contributor to skills development (Barasa and Kaabwe, 2001). Additionally, informal skills training is attractive in developing nations because it is self-financing in that it takes place without any funding from budget-constrained governments or formal levy funding by relying mainly on user fees or low wages for the apprentices during training (Ziderman, 2003). Moreover, informal skills training and apprenticeship has expanded because many of the existing formal training institutions are ill-prepared to equip trainees with the skills needed to operate in an informal sector which is fast becoming the dominant employer (Kent and Mushi, 1995; Ziderman, 2003; Johanson and Adams, 2004).

301

Informal skills development is generally unregulated and is characterised by the following attributes (Kent and Mushi, 1995; McGrath et al., 1995): Entry into the training regime has little or no emphasis on academic qualifications; hence it is open to all including those who are illiterate. No standard cost of training; i.e. there are no set fees hence little commonality in the charges among providers even for similar skill areas or trades. The cost of training is usually in the form of payment of a lump sum (which maybe converted into monthly instalments) to the providers or via the apprentices acceptance of low wages during the training. Ad hoc curriculum; i.e. no prescription of syllabus, subject content or method of assessment, and theoretical knowledge is largely ignored. Training is production-oriented, revolving chiefly around workplace instruction only. Training providers have no formal qualifications either as tradesmen or as trainers. This is mainly because many of the masters cum trainers acquired their skills informally too. Pedagogy is limited to learning by doing (trial and error) and is based on tacit knowledge with little use of diagrams, books or models. What the trainee learns is dependent on the work in progress and the relationship is founded on master and man rather than teacher and pupil. Additionally, very little emphasis is placed on the creation of a healthy and safe work environment or on the safe use and correct selection of tools and materials. The progress and capability of the trainee/apprentice is dependent on the level of instruction necessary to enable him or her to work unsupervised and no value is given to independent assessment like trade tests. Training is suited for self-employment, accentuating getting the job done rather than procedural correctness. By the end of the training the trainee has some work experience and has established links with potential informal employers.

Informal skilling has weaknesses that stem mainly from its characteristics. These challenges have been identified through a number of studies (Franklin, 1973; Middleton et al., 1991; Kent and Mushi, 1995; McGrath et al., 1995; Barasa and Kaabwe, 2001; Ziderman, 2003) and include: The narrow and static range of skills offered. The informal training system has difficulty coping with technological changes, and the need for skills enhancement to widen geographical markets. This limits the marketability of the graduates as existing techniques become obsolete; serves to perpetuate traditional techniques that may not be optimal; and demands high levels of supervision (see Cattell, 1997). Restricted opportunity for learning to work effectively. Due to the use of learning-by-doing, coupled with instructing by providers lacking both teaching and certified trade skills, learning takes place by accident rather than by intent. This is most prevalent where the masters/trainers have limited skill and often leads to a diversity of qualifications and competencies even within the same occupation; i.e. limited standardisation of both the method of skilling and the graduate. The minimal knowledge of materials (behaviour and characteristics) and processes may affect the quality, reliability and safety of use of the final product. The minimal theoretical knowledge and ad hoc curriculum erodes the necessary foundation for new skills thus making it difficult to learn. This is especially critical in the face of new materials entering the market. Lack of standardised training and independent testing makes it difficult to control the quality of the training i.e. there is a lack of appropriate scale of equivalence by which the knowledge and skills acquired can be externally vetted hence the competence of the graduates is difficult to vet. This, in turn, means that the consumer of the services has no guarantee of what he is purchasing.
302

Due to the weaknesses outlined above, informally-trained craftsmen are usually deemed to be inadequately skilled. Moreover, no single blueprint or best practice exists for training in the informal sector with each intervention requiring to be customised to the needs of the respective sector and the existing local realities (McGrath et al., 1995). Furthermore, many planners and policy makers in developing countries tend to ignore informal skilling, typically assuming that institutionalised training is more cost-effective although there is no supporting evidence of this supposition (Dougherty and Tan, 1999). Many training interventions among construction sector craftsmen are accordingly directed towards the enhancement of formal training, hence excluding those who are informally trained. Dougherty and Tan (1999) assert that, due to its prevalence, informal skilling should be given high priority in the training field of developing countries including an assessment of its scope and an evaluation of the degree to which it complements other forms of skill development. In response to this call, the paper looks at the occurrence of informal skilling among craftsmen in the Kenyan and South African construction sectors. 3 METHODOLOGY The unit of analysis in this study was the craftsman. Data for this study were collected using inperson surveys with construction craftsmen at the construction sites. On-site in-person surveys were used because of the low levels of education and the lack of a proper sampling frame (no craftsmen register or list of addresses and contacts exists) precluded other forms of data collection. The questionnaires used were semi-structured and designed to obtain information on the craftsmens trade, their level of education, mode of skilling, and the prevalence of formal trade certification. In this study, 43 craftsmen from Nairobi province in Kenya and 20 from the Western Cape province in South Africa were surveyed. 4 FINDINGS The following are the findings of the study. To contextualise the participants responses, respondents were asked to indicate their respective trades. Table 1: Respondents trades Trade Mason/Bricklayer Carpenter Electrician Plumber Painter Decorator Other Total Kenya No. % 12 28% 8 19% 5 12% 4 9% 4 9% 10 23% 43 100% South Africa No. % 4 20% 5 25% 2 10% 3 15% 2 10% 4 20% 20 100%

Table 1 indicates the trades of the respondents in both countries. In a bid to make the data comparable the respondents were grouped into the five formally recognised trades that are common in both countries. Masons and bricklayers are categorised together because in Kenya the masonry trade executes tasks that include bricklaying. The grouping other includes trades that are unrecognised or are dissimilar in both countries e.g. steel fixing, plastering, roofing. The trades followed by the craftsmen generally follow those that are formally recognised which in turn are dictated by the prevailing technology.

303

9%

2%

Some primary school 12% Completed primary school Some secondary school Completed secondary school Completed college

21%

56%

Figure 1: Respondents level of education in Kenya

Completed grade school Some High School Completed high school

25%

20%

Some college Completed college

5%

15%

35%

Figure 2: Respondents level of education in South Africa Figures 1 and 2 indicate the highest level of education among the respondents. The level of education impacts on the eligibility of the respondents to qualify for formal craft training. In Kenya formal craft training requires a minimum of a secondary school certificate thus excluding about 76% of the respondents. In South Africa literacy is a requirement, (at least completion of high school) thus excluding 55% of the respondents. This finding is similar to the results of another more extensive study, that reported that in South Africa 81% of the craftsmen had only a few years grade school education and were barely literate (English, 2002). Where the aspirant entrants into construction craftsmanship are disqualified from formal skills training due to their level of education, they have no option but to seek informal training which does not have the same education requirements. This has contributed to the prevalence of informal skilling. Moreover, the disparities in the level of education among craftsmen and the requirements for formal craftsmen training in both countries is an indication that formal training may be out of step with the realities of
304

the marketplace as it excludes more than half of the aspirants. This highlights the possible need to re-evaluate the training criteria either to make it more inclusive or alternatively create conditions in the sector that will attract entrants with higher levels of education. Table 2: Respondents method of trade training How did you train? Accredited training institution/contractor Informal apprenticeship/observation on the job Total Kenya No. % 12 28% 31 72% 43 100% South Africa No. % 5 25% 15 75% 20 100%

Table 2 above indicates that more than 70% of the respondents in both countries trained informally on the site via observation or via informal apprenticeships with masters. This clearly suggests that (despite the limited sample of observations) informal skilling is the most prevalent method of skilling in both countries. Anecdotal evidence suggests that informal training is typically propagated by unschooled masters hence it centres chiefly on learning on-the-job. The calibre of craftsmanship here is vetted mainly by the productivity of the craftsman as opposed to the quality of the final product. As implied by the attributes of informal skills development and owing to the unschooled status of the masters, informal craftsmen training has minimal theoretical input making it appealing to trainees with low levels of education. This explains the prevalence of this method of training even though it is not formally recognised by either DIT or CETA as an acceptable form of craftsmen training. Comparatively, in Iran, 95% of the construction craftsmen reported that they had acquired their skill informally (via informal apprenticeship and on-site training only) (Zakeri et al., 1996). The high percentage of craftsmen trained via informal apprenticeship clearly establishes the significance of training in the informal sector in meeting the human resource needs of the construction sector. Table 3: Prevalence of formal trade certification Do you have a formal trade certificate? Yes No Total Kenya No. % 10 23% 33 77% 43 100% South Africa No. % 8 40% 12 60% 20 100%

In tandem with their lack of formal training, 77% and 60% of the responding craftsmen in Kenya and South Africa, respectively, did not hold any formal trade test certificate (Table 3). Many craftsmen who train informally do not attempt formal trade tests because of their training, which has little theoretical input. Their level of education makes it difficult for them to undertake the trade test, particularly the theoretical component. In addition, the limited level of formal trade certification is a proxy for the diminished value of the trade certificate in both the Kenyan and South African construction sectors. This is mainly a consequence of the existence of an informal construction market that typically does not value formal training and a formal sector that rarely requires proof of formal skill certification (Cattell, 1997). There is therefore a need to sensitise the construction sector employers on the advantages of trade certification as a way of standardising training in order to give employers quality assurance; to assure customers that skills are available to deliver the service on offer (Construction Industry Board (CIB), 1998); to facilitate employers in vetting suitable employees; to provide workers with portable credentials; and to give groups bargaining power (Grugulis, 2003). Moreover, CIB (1998) asserts that a certification scheme should aim at helping the sector secure an increasingly skilled workforce, recognise skills,
305

competences and qualifications, and finally improve the attractiveness of the sector to higher calibre entrants by, for example, improving health and safety awareness. This can, however, only take place via the integration of both formal and informal training so that all the craftsmen (irrespective of their training background) are accredited. The 23% and 40% who have trade test certificates are chiefly those trained in accredited colleges or those trained by formal accredited contractor. 5 CONCLUSIONS The results of this preliminary study indicate that informal skilling plays a significant role in the training of craftsmen in both Kenya and South Africa. The popularity of informal skilling is fuelled mainly by the low levels of education among construction craftsmen, which excludes them from both formal skill training and trade testing. This preliminary study will be followed by a more comprehensive study which will involve a larger sample of 500 craftsmen. The larger sample will allow for the role of informal skilling in the construction sector to be explored further. Additionally, the research aims at identifying the type of skills craftsmen are acquiring as a reflection of the skills that the market requires and to investigate the interventions that stakeholders can use to encourage more appropriate training in the construction sector. 6 PRACTICAL IMPLICATIONS The findings of the study suggests that the bodies responsible for the training of construction craftsmen i.e. the Directorate of Industrial Training (DIT) in Kenya and the Construction Education and Training Authority (CETA) in South Africa, need to take cognisance of the informal skilling method in the formulation of viable training programs for construction craftsmen. Interventions should include building linkages between the formal training institutions and informal trainers in an effort to address the weakness of informal skilling e.g. by increasing the level of theoretical instruction and introduction of appropriate technology. Such interventions should aim at the integration of both formal and informal craftsmen training as a means of addressing the shortages and inadequacies in craftsmen skills and to increase the levels of skill certification for the benefit of the sector. Accordingly, the findings of the study, though not intended to provide a solution, will be useful in developing viable policy interventions to enhance the training of construction craftsmen. REFERENCES Alwi, S., Kajewski, S. and Hampson, K. (2006) Investigation into the relationship between just-intime (JIT) training and productivity in building construction in Indonesia. In, 1st International construction speciality conference, May 23-26, 2006, Calgary, Alberta, Canada, CT-108--101-107. Barasa, F. S. and Kaabwe, E. S. M. (2001) Fallacies in policy and strategies of skills training for the informal sector: evidence fro the Jua Kali sector in Kenya. Journal of Education and Work, 14,(3), 329-353. Cattell, K. S. (1997) The development of black South African small-scale construction enterprises: Emerging Contractors and the Demand for Formal Training, Department of Construction Economics & Management, University of Cape Town. Cattell, K. S., Hindle, R. D. and Rogalli, H. (1996) South Africa's emerging building firms: A vocational training challenge. In, CIB W89 Beijing international conference on Construction modernisation and education, 21-24 October, Beijing.

306

Construction Industry Board (CIB) (1998) Main Report: Strategic review of construction skills training. Thomas Telford Publishing, Prepared by IPRA Ltd. And The University of Westminster. Construction Industry Development Board (CIDB) South Africa construction industry status report: Synthesis review on the South African construction industry and its development: Discussion document, . [Available online from Retrieved on 25/8/2006 from website http://www.cidb.org.za.] Directorate of Industrial Training Recruitment of craft apprentices (1998 February 2003). [Available online from http://www.ditkenya.org/statistics/recruitmentcraftstatistics.doc.] Dougherty, C. and Tan, J.-P. (1999) Financing training: issues and options. Journal of European Industrial Training, 23,(9), 416-436. English, J. (2002) Opportunities for training and self development that the new millennium offers the informal construction worker in South Africa: A case study of 200 workers. In, Proceedings of CIB W107 1st International Conference: Creating a sustainable construction industry in developing countries, 11-13th Nov. , Stellenbosch, South Africa, 583-592. Franklin, W. S. (1973) A comparison of formally and informally trained journeymen in construction. Industrial and labor relations review, 26,(4), 1086-1094. Grugulis, I. (2003) The contribution of National Vocational Qualifications to the growth of skills in the UK. British Journal of Industrial Relations, 41,(3), 457-475. Haupt, T., Miller, S. and Chileshe, N. (2005) Report on the profile of construction skills in the Western Cape. Working Paper 0105,Cape Town: Southern Africa Built Environment Research Center. International Labour Organisation (2001) The Construction industry in the twenty-first century: Its image, employment prospects and skill requirements. Sectoral Activities Programme, ILO,Geneva: ILO. Jayawardane, A. K. W. and Gunawardena, N. D. (1998) Construction workers in developing countries: a case study of Sri Lanka. Construction Management and Economics, 16,(5), 521-530. Johanson, R. K. and Adams, A. V. (2004) Skills development in Sub-Saharan Africa. World Bank Regional and Sectoral studies, Washington: The World Bank. Kent, D. W. and Mushi, P. S. D. (1995) The education and training of artisans for the informal sector in Tanzania: A study funded by the Overseas Development Administration Education Division. Vol. Serial no. 18, Education Research Overseas Development Administration McGrath, S., King, K., with Leach, F., Carr-Hill, R., in association with, Boeh-Ocansey, O., DSouza, K., G., M. and Oketch, H., , (1995) Education and training for the informal sector, Education Research, Overseas Development Administration, Volume 1, Serial No. 11. Middleton, J., Ziderman, A. and Adams, A. V. (1991) Vocational and Technical Education and Training. A World Bank Policy Paper,Washington DC: The World Bank. Rowings, J. E., Federle, M. O. and Birkland, S. A. (1996) Characteristics of the craft workforce. Journal of Construction Engineering and Management, 122,(1), 83-90. Sha, K. and Jiang, Z. (2003) Improving rural labourers status in Chinas construction industry. Building research and information, 31,(6), 464-473.
307

Zakeri, M., Olomolaiye, P. O., Holt, G. D. and Harris, F. C. (1996) A survey of constraints on Iranian construction operatives' productivity. Construction Management and Economics, 14,(5), 417-426. Ziderman, A. (2003) Financing Vocational Training in Sub-Saharan Africa. Africa Region Human Development Series,Washington D.C.: The World Bank.

308

GUIDELINE FOR IMPROVED RELATIONSHIP BETWEEN LEARNER CONTRACTOR AND SITE SUPERVISORS IN THE EXPANDED PUBLIC WORKS PROGRAMMES CONTRACTOR LEARNERSHIP PROGRAMME
Egbeonu E1, McCutcheon RT2
1 2

School of Civil and Environmental Engineering, University of the Witwatersrand, Johannesburg, South Africa. emeka577@yahoo.co.uk School of Civil and Environmental Engineering, University of the Witwatersrand, Johannesburg, South Africa

ABSTRACT Purpose of this paper - The Expanded Public Works Programmes Contractor Learnership Programme forms the construction firm to include one learner contractor and two site supervisors. The contractor is trained on NQF Level 2 and the supervisors on Level 4. The contractor operates as entrepreneur and supervisors as employees. The project is awarded to the firm as if it is awarded together to contractor and supervisors. And the programme requires them to work harmoniously during the operations. But, in the project execution a contest for financial benefit arises between the contractor and supervisors leading to adversarial relationship that impedes operations. Some supervisors move between contractors and some entirely leave the programme, which exacerbates the existing skills shortage. Efforts to resolve the problems yield little or no results. There is need for effective solution. Methodology - The programmes progress report was examined. Discussion on the problem was held with some learner contractors and site supervisors. Established small/medium contractors were requested to state how they relate with their staff. Content and descriptive analysis is used. Findings - Some ambiguities in the formation of the firms cause the problems. Struggle for financial benefit between contractors and supervisors will not end if things stay the same. Established small/medium contactors use some incentive packages to manage their staff and operate effectively. The programme does not apply the incentives that could solve the problems. Practical implications - Incentive packages used by the established small/medium contractors can be adapted to improve the adversarial relationship between the learner contractors and site supervisors. This is because such incentives are normally used for that purpose in the industry. Value - Method used by established small/medium contractors to achieve success in a particular situation can be used by learner contractors to achieve success in similar situation. This is useful to learner contractors, supervisors, development programme and the industry. Keywords: contractor, supervisors, relationships, incentive-package, improvement.

309

2 1. INTRODUCTION In 2004 the Expanded Public Works Programme EPWP- was launched in South Africa to address some national development needs. As part of the objectives the EPWP Contractor Learnership Programme was initiated to use some support systems to develop small/medium contractors to become competitive in the industry. The learnership is formed in such a way that a participating construction entity comprises of one learner contractor and two site supervisors. This is an attempt to provide the learner contractor with some trained staffs to work with. The learner contractor and site supervisors apply on the same form to join together as one contracting entity. They together undergo some training where the contractor trains on CETAs NQF Level 2 while the supervisors train on Level 4. The contractor is required to be the sole shareholder of the close corporation (the construction firm), and the learner supervisors are required to be employees only (DPW, 2005). The ABSA bank, which provides the project finance, requires such sole shareholding because it wanted to avoid the higher risk that may arise if contractor and supervisors became joint shareholders of the firm. The project is awarded to the firm, which creates an impression that it is awarded together to the contractor and supervisors. And the programme requires them to work in harmonious relationship while executing the project and operating the firm (DPW, 2007). However, the programme guidelines did not state how to maintain the harmonious relationship between the contractor and the site supervisors. In the project execution and company operation some dispute arises between the contractor and supervisors regarding financial benefits. The dispute adversely affects their relationships, impedes the project and company operations, and derails the programme in general. Some efforts to remedy the situation yield little or no result. This required that a lasting solution must be found to improve the relationship so that the programme can perform effectively and achieve its objectives. Therefore, the author considers that the incentives established small/medium contracts use in maintaining their staff, can be used to manage the relationship between the learner contractor and site supervisors in this programme. But before further discussing the problem and how to solve it, it might be necessary to examine how contractors in the normal situation manage their relationships with their staff members. 2. Literature review 2.1 Staff retention and management Authors have written about the importance of contractors employing, motivating and retaining competent staff to enable them perform effectively. In Constructing the Team, Latham (1994) recognizes fair treatment, clearly defined duties and payment as incentives contractors can use to motivate, manage and retain the staff. In Rethinking Construction Egan (1998) suggests that better work conditions, more training and fair wages can be used to improve construction relationships for better output. Holroyd (2003) states that training and fair wages can be used as staff incentives. Cooks and Williams (2004) suggest that contractors must treat their workers fairly in order to retain them in a harmonious relationship. McGraw-Hill (2005) states that contractor who has an ability to manage people is more likely to succeed than the one without such ability.

310

3 All the above suggest that an ability to motivate and manage staff is important for the success of a contractor. And, the contractors ability to establish harmonious relationship with the staff is a function of fair incentives and good working conditions. Therefore, it might be necessary to examine how the EPWP learner contractor and site supervisors relate in implementing the programme. 3. Methodology The programme progress report made by the DPW is reviewed from which the causes of the problem were examined. Open ended schedule of questions is used to engage learner contractors and site supervisors in discussion to examine the nature of the problems. Open ended schedule of questions is used to engage in discussion with the established small/medium contractors to state how they manage their staff in cordial and productive relationship. The issues discussed are subjected to content and descriptive analysis for proper understanding. 3.1 Source of the adversarial relationship (gathered from the programme report) As earlier stated, the learnership programme requires the learner contractor and site supervisors to operate in harmonious relationship so that they can effectively execute the projects to the satisfaction of the client. But it is stated that in the implementation, some unexpected problems emerged due to certain ambiguities in the formation of the business entity under which the learnership operates. One of such ambiguities is that the rights and obligations of the contractors and supervisors are not clearly stated and separated. For example the site supervisors contract of employment does not clearly state the supervisors duties and wages. Because of this the supervisors began to think that they are co-owners of the business and therefore must enjoy same wages and privileges as the contractor. When the supervisors are informed otherwise, they felt highly dissatisfied and began to contest for higher wages, share of profit and/or the business ownership. The contest generates conflict between the contractor and the supervisors, which strains their relationships and impedes the project execution (DPW, 2007). 3.2 The conflict (gathered from discussion with contractors and supervisor) Some issues discussed here are mentioned in the programmes progress report. But in the discussion the learner contactors and supervisors confirmed them and mentioned other relevant issues. The discussion was with some learner contractors and supervisors at different places where the programme is being implemented. Therefore, the author did not in structured format state the number of contractors and supervisors who participated. However, the issues presented are fair representation of the content of the discussion regarding the subject matter as follow: The site supervisors stated that their NQF level 4 training is technical-based. And the programme informed them that it is higher than the entrepreneurial-based NQF level 2 training for contractors. And with their higher training they perform more important technical tasks in the project execution than contractors who only perform managerial tasks with lower training. The site supervisors stated that in sometimes they are taught together with the contractors in the same classroom on some NQF 4 and NQF 2 related unit standards. And in such cases they are

311

4 tested and sometimes they score higher marks than the contractor. Based on this the supervisors contend that they are academically same and/or better than the contractor and therefore should earn same or more wages than the contractor. The supervisors stated that with their higher qualification and sometimes better marks in the classroom tests, they tend to question competence and validity of the orders given by the learner contractors. This strains their relationship with the contractors. The learner contractors state that they are the owners of the business and employers of the supervisors. Therefore they will not tolerate their employees disrespecting them in their own business. This also strains their relationship with the supervisors The progress report states that this leads to bad manner of communication between the contractor and supervisors, which severely strains their relationship The supervisors stated that the projects are provided under economic empowerment policy. They are looking forward to be financially empowered with the project just like the contractors. And therefore, they should get equal benefits with the contractor from the projects financial gains. Therefore with their higher qualification and the more demanding technical tasks they perform, getting less gain than the contractor is not acceptable. The contractors who seem to be placed on more privileged position in this situation state that there is expectation for profit but the projects are mostly unprofitable and losses are incurred. As they bear such losses, there is no arrangement to share the losses with the supervisors. And yet, the two supervisors often use their numerical strength to gang up and hold them to ransom while demanding more financial benefits. The supervisors argued that they are not sure that there is loss because the contractors do not allow them access to the project/company financial records that will enable them ascertain the true state of affairs. They contend that the contractors claim of project nonprofitability and losses seems untrue because the contractor tends to spend money in some extravagant ways. The supervisors request to be made co-signatories of the company account so that they will monitor the true state of project money, was rejected. The progress report stated that in some provinces the conflict between the contractor and site supervisors has become so intense that they do not have cooperative working relationships. And in some cases the conflict has become so severe and disruptive to the project progress that the supervisors were temporarily removed from the site pending the time some disciplinary hearing will resolve such conflict. The report also stated that the removal of such supervisors delays the contractors progress detrimentally. And considering that supervisors are paired with contractors, it becomes hard to find new supervisors to assist the contractor pending the outcome of the disciplinary hearing.

312

5 All the above indicate that some severe dispute exist between the contractors and supervisors. And the dispute is adversely affecting both the contractors and the programme. This requires that some remedy must be found if success is desired. 3.3 The programmes attempt to remedy the conflict situation DPW (2007) in the progress report states that the contractor earns R5000.00 per month while the supervisors earn R3000.00. And the supervisors do not like the wage disparity. However, in an attempt to remedy the conflict the programme has proposed the following actions: At the selection of the learner contractor, the Public Body, DPW, and CETA will facilitate a meeting with the learner contractor where it will be decided whether the supervisor will receive: - Payment of a monthly salary only - Payment of monthly salary plus percentage of project profit - Payment of a percentage of project profit This was proposed at the end of 2006, but up to the end of 2007 it has not yet been implemented because agreement on how to do so has not been secured from all the parties involved. However, it might be necessary at this juncture to examine how the established small/medium contractors structure the ownership of their companies and relate with their staff. This might indicate whether the above proposed remedy is enough to resolve the adversarial relationship that exists between the learner contractor and site supervisors. It might also help to shed some light on what might be done to improve such adversarial relationship in line with fair practices applicable in similar situations in the industry. 3.4 How to improve the adversarial relationship (gathered form established contractors) Eighty five established small/medium contractors who started their companies from the scratch were engaged in discussion to state how they structure their company ownership, motivate and retain their staff in productive harmony. Thirty of them stated that they started and still operate their companies as sole owners. Fifty five stated that they started as sole owners but later invited partners who had relevant work experiences and resources to take part in the partnerships. Some of them stated that they made their skilled/experienced and dedicated worker partners in the business after some years of working for the company. This is to avoid loosing them to other contractors. The above suggest that contractors can operate their firms either as sole owners or as partners. And they can make their deserving workers partners as a way of retaining them. Therefore, whether the learnership programme requires the contractor to be the sole owner or work with the site supervisors as partners is not necessarily out of context. However, assuming that for any reason the programme insists that the contractor should be the sole owner and the site supervisors should work as employees, the issues will be how to motivate, remunerate, and retain the supervisors so that they can work in harmonious relationships with the contractors. In this case, the eighty five established small/medium contractors, both those who operate as sole owners and those that operate in partnerships stated that they motivate, retain and carry along their core skilled staff in harmonious relationships by providing them with fair combination of

313

6 the following incentives: good working conditions, insurance policies, competitive wages, opportunity to contribute opinions in project/company decision making process, some percentage of the project profit as wage bonus, some in-service training, and companys group social outing. However, in all these, they still retain the company leadership and take all the decisions. They also stated that they ensure that they still have enough profit to plough back to the company after paying out such incentives. This suggests that they balance between the amount they need to continue to build the company and the one for the staff incentives. Considering the above, it seems that the proposal to use some salary and/or profit sharing to remedy the conflict between the learner contractors and site supervisors might help to an extent, but not enough. Therefore, if the programme applies fair combination of the stated incentives used by the established small/medium contractors it may reduce the conflict to a larger extent. 4. Conclusion This paper has described the relationship between the learner contractor and the two site supervisors in the EPWP contractor learnership programme. It suggested that the dispute that develop between them in the relationship is caused by the inappropriate way they are joined in the company, placed in an inappropriate training hierarchy, sometimes trained together in the same classroom, and the inadequate incentives. All these have enabled the supervisors develop some wrong impressions of their positions. And the wrong impressions have led to dispute that tends to derail the programme. However, the paper suggested that the dispute can be minimized if the programme applies the fair combination of incentives, which by established small/medium contractors use to motive, retain, and carry along their core skilled staff in harmonious and productive relationships. The core ideas explored in this paper is that the method established small/medium contractors use to achieve success in relating with their staff, can also be used by the learner contractor to achieve success in relating with the supervisors. This is because such incentives are normal practices used to achieve success in similar situation in the industry. Therefore, the idea can be useful for the learner contractors, the supervisors, the contractor learnership programme, and the construction industry in general. However, it will be necessary to realize that the application of such incentives can only be effective in achieving the desired objectives if the following issues discussed in the recommendations below can be tackled. 5. Recommendations At this juncture, it might be necessary to examine and address the following fundamental issues. - First and foremost it is necessary that the programme understands that contractor leads the construction firm. Therefore, the programme must train and facilitate the contractor in such a way that he/she will effectively lead and command the respect of the workers without undue challenge from such workers.

314

7 The idea of joining the contractor and supervisors together where they apply on the same documents to form one construction entity should be reviewed because it creates an erroneous impression that they are joint owners and supreme leaders of the business. They should rather be required to enter the programme separately. And the contractor should choose from a pool of trained supervisors who to work with. This will give the contractor the power of employer and give the supervisor the mind of the employee. It will from the beginning generate the employer and employee mindset needed in the business Placing the supervisors NQF level 4 technical training on the same yardstick where it measures two steps ahead of the contractors NQF level 2 entrepreneurial training seems very inappropriate. It is important to understand that the contractor as an entrepreneur performs entirely different functions from the supervisor who is a skills peddler. It is the entrepreneur-contractor who leads the skills peddler-supervisor. And, such ranking that gives the supervisors the wrong impression of the importance of their qualification seem erroneous. Therefore, the review should remove the contractors training from the existing position and place it differently where it must never be numbered on the same or lower level with that of the supervisors. The idea of teaching the contractor and supervisors in the same classroom where they are given the same test and marked accordingly seems quite erroneous. This is because the contractor leads, instructs and expects loyalty from the supervisors. Therefore teaching and testing them in the same classroom whereby the supervisors perform better than the contractor will lead to the supervisors not respecting the contractor because the classroom performance has shown an inferior but wrong idea of the contractors ability Every effort must be made to separate the contractor and the supervisors in the training, selection, application and initial documentation for joining the programme. This is because the problem caused by joining them together at this stage generates more adverse impacts than the benefit the programme thought it would have generated. More supervisors should be trained so that the contractor will have the chance to choose the minimum of three from the pool. This will minimize the shortage of the supervisors. The economic empowerment background of the programme might continue to generate agitation for equal benefits. But it is important to realize that attempting to apply such practice of equal benefit for contractor and supervisors might be erroneous because it will erode the contractors leadership position and make it impossible for the firm to accumulate financial resources with which to stabilize and survive. Therefore, a review should clearly state from the onset the positions, duties and limitations of both parties. That the contractor owns and leads the firm, and the supervisors are subordinate to the contractors. That in order to survive, the firm must not share to the workers the larger percentage of the profit it needs to plough back to its operations.

315

8 To avoid losses and nonprofitability, certain profit margin must be targeted in the project. And after paying all the incentives to the supervisors, some larger amount of the targeted profit margin must be achieved for the company development needs.

REFERENCES Cooke and William, 2004. Construction Planning, Programming & Control 2nd Edition Blackwell Publishing Ltd, Oxford OX4 2DQ, UK DPW, 2005. EPWP Contractor Learnership Programme, Management Plan for Labour Intensive Construction Learnerships, Revision 5, October 2005 DPW, 2007. EPWP Contractor Learnership Programme, Progress Report, March 2007 Egan, J, 1998. Rethinking Construction. Report of the Construction Task Force on the Scope for Improving the Quality and Efficiency of UK Construction, Department of the Environment, Transport and Regions, London Holroyd, T. 2003. Buildability: Successful Construction from Concept to Completion. Thomas Telford Publishing Ltd, 1 Heron Quay, London E14 4JD Jaafar, M, and Abdul Aziz, 2005. Resource Based View and Critical Success Factors: a Case Study of Small and Medium sized Contracting Enterprises in Malaysia. www.bre.polyu.edu.hk/criocm/english/journal [Accessed 20th March 2006] Latham, M 1994. Constructing the team. Final Report on Joint Review of Procurement of contractual Arrangements in the UK Construction Industry, HMSO, London McGraw-Hill 2005. Be a Successful Building Contractor. Third Edition. McGraw-Hill Companies, Inc. USA Acronyms ABSA: Amalgamated Banks of South Africa CETA: Construction Education Training and Authority DPW: Department of Public Works EPWP: Expanded Public Works Programme NQF: National Qualification Framework

316

A MODEL TOWARDS AN ENHANCED TERTIARY BUILT ENVIRONMENT EDUCATION

Manthe, M.F.1 and Smallwood, J.J.2
1 2

Walter Sisulu University1, South Africa, jlmanthe@telkomsa.net. Tel No. 0822021774 Nelson Mandela Metropolitan University2, South Africa, john.smallwood@nmmu.ac.za. Tel No. 0836592492

ABSTRACT Purpose of the paper - This paper proposes a model to engender an enhancement of tertiary built environment education at specifically first year level. Given that a host of built environment stakeholders express concern regarding the competency of diplomates and graduates, a poor throughput rate and the discarding of criteria relating to a matric certificate, a coherent approach to tertiary built environment education is required to alleviate the concern. Methodology/Scope - A survey to test the validity of the model was conducted by means of a questionnaire circulated electronically to a sample stratum comprising the directors of selected built environment organizations. An illustration and explanation of the model preceded a questionnaire in the form of statements which required a response. Findings - The salient findings indicate that; tertiary built environment education is a national responsibility; very strong support is indicated relative to the inclusion of selected subject areas, and the extent of agreement to the statements in the questionnaire is between more than moderate to very strong by the majority of respondents. Research limitations Although the sample selected to validate the model is representative a further more inclusive validation survey is planned. Practical implications - Notwithstanding that the model proposes a framework for identifying and describing key competencies, it also provides a basis for comparing and restructuring tertiary built environment programs. Value - Furthermore, existing mechanisms such as the National Qualifications Framework would enable that this model be implemented by built environment educationalists to engender an aligned approach to tertiary built environment education. Keywords: tertiary education, built environment 1. INTRODUCTION

A framework for key competencies in the New Zealand tertiary education sector is aimed at generating reflection on core areas for learning in programs and qualifications. It is envisaged that the government agencies will be able to use the framework in policy and operational work to achieve consistency about desirable learning outcomes. A competency includes all the skills, knowledge, attitudes and values needed to do something and is demonstrated in the performance of a task. Educators need to be aware of what skills and knowledge their protgs have acquired and employers should be able to identify the knowledge and skills they seek (Ministry of Education, 2005).

317

The model that is presented aims to develop a students expertise by means of: A shared understanding of desired outcomes in relation to key competencies within and between education and employment sectors; Fostering the development of higher levels of competence for effective participation in the knowledge society, and Enhanced teaching and learning of key competencies in tertiary programs.

The rationale for the study is underpinned by the statement that all tertiary built environment education programs should be aimed at producing people who have the basic capacity for inquiring, innovation and creativity (Daily Dispatch, 2003). Furthermore they should be capable of meeting the clients requirements of quality, price and delivery and be aware of the complementary role of health and safety (H&S) in overall project performance as H&S enhances productivity, quality, time and ultimately cost (Smallwood, 2002). However, a report, although it did not directly refer to built environment education, indicates that current tertiary education is not fulfilling the aim of producing competent people. The Daily Dispatch (2004) reports that; the skills produced by the system do not match the skills demanded. Our system is producing job-seekers instead of jobmakers. The aforementioned sentiments are corroborated by Sunter (2000), with the suggestion that current education is aimed at the job market of the 1960s. He suggests the creation of a society of foxes by creating an encouraging atmosphere and education system with a bias towards shaping entrepreneurs. The Vice-Chancellor of a leading university urges a change in the mindsets of the deans and lecturers in addition to a drastic overhaul of the curriculum in a bid to stem huge concerns that tertiary education students are not given the skills needed for the job opportunities that exist (Schoeman, 2003). Further allegations relating to inappropriate tertiary education are made by active members within the construction industry who allege that neither graduates nor diplomates can do the work. Despite the expenditure of great amounts of time, energy and money on restructuring and transforming South African higher education, virtually no progress has been made and nothing of real substance has transpired. Those intent on maintaining standards seem obsessed with reproducing the antiquated educational experiences of their own student days and blamed the inadequacy of the preparation of students for a throughput rate which has reduced by 50% in 10 years (Wolff, 2008). However, Wolff (2008) is suspicious of the explanations for the high failure rate given that the students successfully completed secondary schooling and are multi-lingual. Those educators who believe that the high failure rate is indicative of a outstanding education would not give the same verdict for a hospital that loses half its patients. The resistance to genuine pedagogical change is hardly unusual given the tendency of lecturers to reproduce for their own students the experiences of their undergraduate years. Half a century ago a distinguished philosopher adopted a brutally difficult but effective technique to effect the mastering of a subject. The same technique was adopted by his predecessor half a century later thereby rendering this pedagogical device one hundred years old. Furthermore Wolff (2008) concedes that the poor throughput rate is an indication that the old methods are failing to educate the people enrolled at the universities and the universities of
318

technology. He would rather see a creative, imaginative and successful education than reproduce the punitive system of high failure rates and the mindless, destructive maintenance of standards. The features of the punitive system are that an entire year of credit rests on an end of year exam and the difficulty in transferring credits from one institution to another. However modularization is beginning to erode the rigidities of year-long courses. Wolff (2008) provides the following reasons why the merging of several institutions, to rationalize the size and shape of higher education, is a bad idea: They consume the scarce time and energy of the few able administrators at historically disadvantaged institutions; They save little or no money; They do nothing to improve the education of young people; The campus infrastructure is immovable; The faculties and staff that are entrenched cling to old procedures, and Nothing changed on any of the five campuses that merged into the University of Massachusetts system except an increase in bureaucracy. A NEW ZEALAND FRAMEWORK FOR KEY COMPETENCIES

2.

A New Zealand framework for key competencies is proposed to help educators shape the way they specify key competencies and incorporate them into their programs and qualifications. Figure 1 illustrates the four groups of key competencies. Operating in social groups includes all the competencies that are relevant when interacting with people, and can include situations where people are required to compete, cooperate and share. Acting autonomously means that individuals are able to define themselves and operate effectively in a variety of spheres of life. Using tools interactively encompasses language, information, knowledge and technology. The proposed framework also identifies thinking as encompassing the ability to think creatively and use cognitive and meta-cognitive strategies, including for example, critical and logical thinking, learning to learn and adapting to new contexts, and reflection and judgement. Operating in social groups

Thinking

Acting autonomously

Using tools interactively

Figure 1: Overarching framework of key competencies (Ministry of Education, 2005).

319

3.

A MODEL FOR AN APPROPRIATE TERTIARY BUILT ENVIRONMENT EDUCATION

The model depicted in Figure 2 embraces the problem, salient literature and the conclusions relative to findings of a study by Manthe (2008) into the appropriateness of tertiary built environment education.

School performance score (Eligibility) Pre-registration assessment of a candidates aptitude Contract between tertiary institution and student Compatibility to education

Entrance requirements, registration and preregistration interviews

Subject prerequisites

Common 1st year for architecture, civil engineering, construction management, project management and quantity surveying students

Selected subjects common to the built environment disciplines

Construction science & technology Design principles Information technology Law Management Quantities / measurements

Subject experts

Distance education

Standard programs nationally Standard subjects nationally

Technology experts

Compile a series of lectures, simulated projects and short courses Testing techniques

Relevant to practice

Availability

Domain champions Presentation techniques

Accreditation Update Quality assurance Feedback Transparency Policies Standard procedures

Recognition

Evaluation

Figure 2: A model for an appropriate tertiary built environment education.

320

3.1

Components of the Tertiary Built Environment Education Model

3.1.1 The First Component Quantitative Entrance Criteria Quantitative entrance criteria and should be applied to determine the compatibility of the candidate before a contract is entered into between the tertiary education institution and the student given that the throughput rate relative to the national civil engineering diploma has dropped from 67% in 1992 to 27% in 2002 (Capazorio, 2007). Furthermore, a university lecturer professor states in an interview (The Herald, 2007) that quality raw materials are required at any institution in order to increase the throughput rate. Quantitative entrance criteria may become imperative due to the new curriculum, which allows pupils who scrape through their matriculation year on subjects that are no longer graded, to be eligible for university. James (2008) reports that South Africa fared the worst in the world in international testing, which tests achievements in mathematics, science, reading and literacy. The importance of the aforementioned subjects is attested to by respondents in the findings of this thesis. The first component should take cognizance of the three limits to education, namely, the definite limit, the objective limit and the absolute limit. Allowing students to enrol for programs when they do not have the prerequisites or capabilities is not empowering the students or contributing to the economy of the country. It is conceivable that irreparable psychological damage to students self-esteem could occur if they perform poorly. 3.1.2 The Second Component Common 1st Year A common 1st year is proposed given that most construction projects require the services of the five built environment disciplines survey. The notion of team working has a long history and in the second half of the twentieth century, its theoretical and practical contribution to workplace engineering and re-design has been extensively reviewed and comprehensively documented. The quantity of team management literature, team-building seminars and conferences act as a tangible testimony to the enduring appeal of team working philosophies. Tennant and Langford (2005) reason that the professional construction teams require a multi-functional, inter-disciplinary representation, engaging a cross-section of industry professionals responsible for carrying out duties particular to their specialist education and training. Moore and Dainty (1999) argue that construction is the largest collectivist activity of all the UK industry sectors. Tennant and Langford (2005) utilized an A team toolkit comprising seven key team indicators concentrating on the following aspects of the team relationship to measure team cohesion: Interdependency; Membership compatibility and diversity; Team dynamics; Trust; Corporate intent; Procedure, systems and customs, and Culture.

321

3.1.3 The Third Component Common Subjects A plethora of subjects are proposed by built environment stakeholders for inclusion in the five disciplines programs. However, the six subjects presented in the model are the most frequently cited. 3.1.4 The Fourth Component Standard Lectures and Short Courses Standardization relates to order and control. However, standards are invented and only give an illusion of control. They should be adapted and not elevated to the status of truth (Amod, 2006). In essence this component espouses that a series of lectures and short courses relevant to specific subject areas be recorded and made available from a website. It is envisaged that these lectures be presented professionally and recorded by domain champions and subject experts. Given that the importance of testing is attested to by Suppes (1992) declaring that it is the fifth educational innovation, it is included as a component in the model. Computer-assisted instruction has the attendant advantages of flexibility, accessibility and feedback. Most importantly these standard lectures and short courses will update and refresh the educators whilst ensuring a broad and equitable transmission of knowledge. 3.1.5 The Fifth Component Quality Assurance Given the numbers that are attending tertiary institutions, it is essential that the whole approach to selection, teaching and nurturing should be reviewed to ensure that a larger number of students in the middle group achieve a sufficiently high standard to be of value to industry. In the model quality is assured given that the evaluation of the students and the accreditation of the programs are on a national basis. Furthermore, the transparency of the program will encourage feedback thereby ensuring that the program is regularly updated. Quality may be further enhanced by recognising and adopting standard procedures and policies. Figure 3 is an adaptation of what Zietsman (2005) establishes as the factors that contribute to the cost of providing a product that complies with certain standards.

Parent Cost of quality = Cost of failure + University Economy Tests Cost of control + Cost of prevention Reports Systems

Client satisfaction

Figure 3: Factors that contribute to the cost of providing a product that complies with certain standards (Zietsman, 2005).

322

3.2 The Validation Survey According to Hubley and Zumbo (1996), it may be argued that of all the concepts in testing and measurement, validity is the most basic and far-reaching, for without validity, a test, measure or any inference made from it are meaningless. The sample stratum comprises twelve prominent built environment stakeholders who were selected in their capacity as a director of the five organizations whose members were surveyed. The other seven people selected to respond to statements to validate the model were from a major construction company, a Master Builders Association, a development organization, the Council for the Built Environment, a training authority, a research institution, and a prominent research academic. The survey was conducted by means of a questionnaire circulated electronically. Attached to the questionnaire was a diagram of the proposed model with an explanation thereof. Despite follow-up requests seven responses were received which equates to a response rate of 58.3%. The extent to which the respondents agreed to the range of statements relative to the model are reflected by means of frequency distribution and central tendency. To enable an interpretation of the mean scores, a range relative to the mean scores categories used by Fester et al. (2005) is adapted, adopted and presented in Table 1. Table 1: Mean score categories relative to a range. Category 1 2 3 4 5 Mean score 4.20 > 5.00 3.40 > 4.20 2.60 > 3.40 1.80 > 2.60 1.00 > 1.80 Range Between strong and very strong agreement Between more than moderate to strong agreement Between less than moderate to more than moderate agreement Between less than moderate to strong disagreement Between strong and very strong disagreement

4.

FINDINGS

Given that the mean score relative to ten of the twenty-three statements are in the first category of mean scores and a further nine statements are in the second category of mean scores, the extent of agreement to the statements may be deemed as being between more than moderate to very strong by the majority of respondents (82.6%). The highest mean score is relative to the statement that tertiary built environment education is a national responsibility. It is notable that very strong support is indicated relative to the inclusion of all the six broad subject areas illustrated in the model. Less than moderate agreement relative to the statements concerning a common 2nd year is indicated by a mean score of 2.86, the only mean score less than the mid-point of 3.00 (Table 2).

323

Table 2: Responses relative to statements to validate the model. Statement Response % Strongly disagree.Strongly agree Unsure 1 2 3 4 5 14.3 14.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 14.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 14.3 0.0 0.0 0.0 14.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 14.3 28.6 0.0 0.0 0.0 0.0 16.7 42.9 42.9 28.6 0.0 0.0 0.0 0.0 14.3 28.6 0.0 0.0 28.6 42,9 0.0 0.0 14.3 14.3 16.7 0.0 0.0 0.0 16.7 28.6 28.6 42.9 42.9 28.6 14.3 14.3 28.6 28.6 0.0 28.6 42.9 14,3 42.9 42.9 28.6 14.3 33.3 33.3 33.3 33.3 16.7 0.0 0.0 28,6 0.0 14.3 28.6 42.9 14.3 0.0 28.6 14.3 14.3 28,6 57.1 57.1 42.9 28.6 50.0 66.7 66.7 66.7 50.0 28.6 28.6 28.6 42.9 66.7 66.7 42.9 28.6 42.9 71.4 66.7 Mean score

Raise entrance requirements for: Universities of technology Universities Mathematics Pre-registration assessment Common 1st year Common 2nd year Inclusion of subjects: Design principles Information technology Law Management Quantities Standardization of programs Standardization of content Standard lectures ensure: Broad knowledge Reduced preparation time Accessible Encourage feedback Professional presentation National tests and exams Standard procedures and policies National responsibility Contribution

3.29 3,29 4.00 4.00 4.00 2.86 4.33 4.66 4.66 4.66 4.00 3.43 3.43 4.00 3.57 4.29 4.43 4.28 3.29 3.57 4.71 4.29

Table 3 summarizes the mean scores into categories to engender an interpretation of the extent of agreement. It is notable that the extent of agreement to the collection of statements range between less than moderate to very strong agreement. Table 3: Grouping of mean scores in categories. Category 1 2 3 4 5 Mean score 4.20 > 5.00 3.40 > 4.20 2.60 > 3.40 1.80 > 2.60 1.00 > 1.80 Number 10 9 4 0 0 Percentage 43.5 39.1 17.4 0.0 0.0

Notwithstanding that the findings from the survey validate aspects of the model a survey of all the people that responded to questionnaire related to the exploratory and primary survey will be sent a synopsis of the study and a diagram of the model that was developed. The purpose of this feedback
324

is twofold; firstly to validate the findings of the study and secondly as a token of appreciation for their participation in the survey directed towards an improvement of tertiary built environment education. 5. CONCLUSION

Globalisation and information technology have meant that people need to be able to operate effectively in local, national and international contexts. Individuals need to develop higher levels of proficiency by combining and using different competencies in increasingly complex contexts. Better teaching and learning of key competencies will be crucial to building a society where people have the knowledge and skills to lead successful lives. For example, specific or technical competencies underpinned by higher levels of competence directly contribute to increased productivity through: Improved performance; Increased ability to use and adapt existing skills to new demands, and Increased ability to see, create and exploit new opportunities.

The National Qualifications Framework provides a good basis for articulating and assessing learning outcomes. The proposed New Zealand Framework of key competencies will assist the tertiary sector to include, teach, assess and report key competencies in a systematic way by; Providing a shared reference point from which tertiary providers could plan for the consistent implementation of competency based courses, and Assisting educators, program and qualification developers to articulate, teach, assess and report key competencies without making them add-ons.

Effective teaching is fundamental to effective learning and improving outcomes for students. Descriptive standards could be explored to guide the outcomes for higher levels of competence. Hughes (2007) reasons that applying standards that drive a person and the management towards preparing business plans, budgets and forecasts give the recipients confidence that you know what you are doing. 6. REFERENCES

Amod, S. 2006. The ecology of construction. A perspective of sustainable development. In proceedings of the 1st built environment conference, Johannesburg, pp. 28-38. Capazorio, B. 2007. Graduates fail to bring skills. The Herald, 15 June, p. 15. Daily Dispatch. 2003. Full Ft Hare campus for East London. Daily Dispatch, 4 February, p. 3. Daily Dispatch. 2004. Graduates need to be employable. Daily Dispatch, 4 March, p. 12. Fester, F.C., Haupt, T.C. and Smallwood, J.J. 2005. Universities of Technology and Safety Health Environment and Quality. Proceeding of the triennial international conference. Rethinking and revitalizing construction safety, health, environment and quality. Port Elizabeth, South Africa, 17 May 2005, pp. 108-121. Hubley, A.M. and Zumbo, B.D. 1996. A dialectic on validity : Where we have been and where we are going. The Journal of General Psychology, pp. 207-215.
325

Hughes, P. 2007. Get your forecast right. Farmers Weekly, 28 September, p. 34. James, C. 2008. Any pass van get you into varsity. Daily Dispatch, 12 January, p.12. Manthe, M.F. 2008. The appropriateness of tertiary built environment education. Unpublished thesis. Nelson Mandela Metropolitan University. Minister of Education. 2005. Key competencies in tertiary education : Developing a New Zealand framework. Discussion document. Tertiary education learing outcomes national office, Wellington, New Zealand. Moore, D. and Dainty, A. 1999. Integrated project teams performance in managing unexpected change events. Team performance management. An International Journal, Vol.5, pp. 212-222. 1999 Schoeman, L. 2003. Top skills training cause for concern. The Herald : Business, 24 September, p. 10. Smallwood, J.J. 2002. Construction health and safety : Motivation for the inclusion of client and designer responsibility. Construction World, October, p. 8. Suppes, P. 1992. Instructional computers, past present and future. International Journal of Educational Research, Vol.17, pp. 7-17. Tennant, S. and Langford, B. 2005. Teams and project performance in the UK Construction Industry. Proceedings of the 4th triennial international conference. Rethinking and revitalizing construction safety, health, environment and quality, Port Elizabeth, South Africa, pp. 200-210. The Herald. 2007. Graduates fail to bring skills. The Herald : Business and Finance, 20 June, p. 15. Wolff, R.P. 2008. Tertiary education in the New South Africa : Lovers Complaint. www.che.org.za. Zietsman, R. 2005. The influence of quality on customer satisfaction in the construction industry. Proceeding of the triennial international conference. Rethinking and revitalizing construction safety, health, environment and quality. Port Elizabeth, South Africa, 17 May 2005, pp. 316-322.

326

OPEN STANDARD BUILDING IN SOUTH AFRICA: NEW CONCEPTS, STRATEGIES AND TECHNOLOGIES
Van Wyk LV1
1

Built Environment Unit, CSIR, lvwyk@csir.co.za, Tel No. 012-8412677

ABSTRACT Purpose of this paper The notion of open building arose out of a counter movement within the Congrs Internationaux dArchitecture Moderne (CIAM) to the promotion of modern mass housing theories in post-First World War Europe. The opponents argued that the closedness of the structures prohibited adaptation over time. This paper constructs a framework for developing, validating, and applying Open Standard Building in South Africa. Methodology/Scope The paper relies on a literature research covering the CIAMs mass housing building theory, the development of the counter theory, the emergence of the Open Standard Movement in computer software, and the theoretical application in contemporary construction methodologies and processes. Findings The paper finds that Open Standard Building concepts, strategies and technologies can deliver buildings that are more responsive to occupants desires and their changing needs over time. Research limitations - The research is limited to establishing the theoretical concepts of open building and testing for validity in South Africa. The paper will not review or assess the CIAM other than its relevance to the emergence of the open building approach. No quantitative analysis is done. Practical implications Open Standard Building facilitates the implementation of innovative building technologies and processes that will result in substantial improvements to the quality of life of many South Africans, particularly within the mass housing market, through reductions in resource waste, improved Life Cycle Costing, lower costs associated with facility changes over time, improved indoor and outdoor environmental quality, and enhanced facility performance. Value The value of the paper is to be found in developing a construction theory thats prime purpose is to deliver enhanced facility performance and self expression, particularly in the field of mass housing, by facilitating inter-operability and changeability through technological and process innovation. Keywords: flexibility open building, participation, integration, innovation, technology, inter-operability,

1.0 INTRODUCTION South Africa faces severe challenges with regard to delivering the socio-economic infrastructure and services required by the majority of its people. Significant backlogs exist with regard to the provision of hospitals, clinics, schools, libraries, community halls, and sport facilities. Of particular interest to this paper is the backlog regarding housing and related services for the poor: according to the Community Survey 2007 (StatsSA 2007a): 15 per cent of households live in informal dwellings; 12 per cent of households live in traditional dwellings;
327

20 per cent of households do not use electricity for lighting; 33 per cent of households do not use electricity for cooking; 41 per cent of households do not use electricity for heating; 45 per cent of households do not have access to a flush toilet connected to a sewerage system; and 53 per cent of households do not obtain water from piped water inside the dwelling; 12 per cent of households do not have access to piped water.

In addition, the Department of Housing has a backlog in excess of 2.2 million units. To this must be added the approximately 121 621 dwellings required every year to accommodate the net population growth of 450 000 of the country at the current household average of 3.7 persons per household (StatsSA, 2007b). The provision of housing to meet societal needs is of course not unique to South Africa: most countries around the world struggle to deliver affordable housing in sufficient numbers. However, what distinguishes housing delivery from many of those countries, specifically the developed countries, is that South Africa provides a simplex starter unit (consisting of two rooms and a toilet) on an individual plot (low density), whereas developed countries provide a range of completed unit types most of which are low-rise and share a plot (high density). The expectation in South Africa is to accommodate every person needing a shelter in a basic unit that can subsequently be altered and added to meet the growing needs of the family. Adaptability and flexibility to meet the needs of the family are thus key challenges that housing delivery must meet in South Africa. It is this requirement of public housing that this paper investigates. 2.0 CIAM AND ITS APPROACH TO MODERN MASS HOUSING The condition of mass housing in Europe during the early part of the 20th century was not that much different from that described above for contemporary South Africa. Successive wars on the continent, together with the forces of industrialization and urbanization, all lead to a massive need for housing and infrastructure services in a rapidly changing social order. The group of architects who gathered under the banner of Congrs Internationaux dArchitecture Moderne (CIAM) did so in the belief that industrial technology could be used to satisfy the demands of this emerging new societal order in much the same way that the automotive industry was bringing mobility to the masses. In its La Sarraz Declaration of 1928, CIAM submitted in Clause 4 that the most efficient method of production is that which arises from rationalization and standardization. Rationalization and standardization act directly on working methods both in modern architecture (conception) and in the building industry (realization) (Conrads 1970:110). Clause 5 of the Declaration goes on to claim that there are three drivers which rationalization and standardization exercise on architecture and building: i) Architectural concepts must be done in a manner that simplifies construction methods and processes on site; ii) Contractors can reduce the number of skilled workers as unskilled workers can construct the buildings under the supervision of fewer but more highly trained technicians; and iii) Customers (the one that orders the house) must reduce their demands in accordance with the new conditions of social life. The Declaration argues that a sacrifice is necessary in order to foster the maximum satisfaction of the needs of the greatest number, which are at present restricted (1970:110). So committed was CIAM to this rationalization and standardization that it urged the reconceptualization of architecture in order to meet the requirements of this new industrial approach. Clause 7 states that it is urgently necessary for architecture, abandoning the outmoded
328

conceptions connected with the class of craftsmen, henceforth to rely upon the present realities of industrial technology, even though such an attitude must perforce lead to products fundamentally different from those of past epochs (1970:110). CIAM however went further than advocating the adoption of rationalization and standardization for architecture and building only and submitted that it could be applied to town planning as well. In an almost mechanistic manner they posited that urbanization could not be conditioned by the claims of a pre-existent aestheticism, that it was essentially a functional order, and that it had three functions: (a) dwelling, (b) producing, (c) relaxation (the maintenance of the species) (1970:110). In the Charter of Athens of 1933 the three functions became four and were described as: housing; work; recreation (during leisure); and traffic (1970:139). Why recreation is redefined is not clear. It was this reductionist approach to urban planning that sparked a revolt which later lead to the demise of CIAM. Frampton notes Reyner Banhams criticism of the Charter of Athens as committing the CIAM unequivocally to a) rigid functional zoning of city plans, with green belts between the areas reserved to the different functions, and b) a single type of urban housing, expressed in the words of the Charter as high, widely spaced apartment blocks wherever the necessity of housing high density of population exists (2007:270). Banham goes on to note that the Mosaic authority this statement enjoyed effectively paralyzed research into other forms of housing (Frampton 2007:270). Frampton does however also note that this dogmatic tone later softened into a statement committing CIAM to work for the creation of a physical environment that will satisfy mans emotional and physical environment to accommodate the views of other members of CIAM who believed that people want buildings that represent their social and community life to give more functional fulfillment (2007:271). 3.0 THE COUNTER MOVEMENT AND THE EMERGENCE OF AN OPEN BUILDING APPROACH The counter-movement, which arose in opposition to the perceived urban sterility that would be a consequence of the proposals put forward in CIAMs Charter of Athens, crystallized at the 9th CIAM Congress held in 1953 when a group of architects, lead by Peter and Alison Smithson, challenged the four so-called Functionalist categories of town planning (housing; work; recreation; and traffic). This rebel group posited that town planning and urbanism could not be abstracted down to a simplistic functionalist model: they argued for a more complex pattern that could be more responsive to what they referred to as the human need for identity engendered through a related sense of belonging. It was this new avenue of urban research which lead to the demise of CIAM in 1956 and the emergence of Team X, largely constituted by the countermovement group lead by Peter and Alison Smith (Frampton 2007:271). Team Xs polemic focused on two components of urban transformation in particular: a) how to integrate new high rise development into the existing urban pattern, and b) how to replicate the social role of the street at above street level (although they soon came to realize that it was not possible to achieve any connectivity between high-rise dwelling in the air and streets on the ground). Notwithstanding Team Xs continued belief in the multi-level city, they did come to acknowledge that above the sixth floor the height of a mature tree the inhabitants lost all contact with the ground. Frampton suggests that this height limitation may well have exerted an influence in the 1960s on the general adoption of low-rise, high density as the preferred policy for family residential development (2007:273). The first appearance of the term open came in 1958 when the Smithsons presented their open city thesis which argued that, as the accelerated movement and change in the 20th century were fundamentally incapable of relating to the patterns of any existing urban fabric, the creation of a new sense of place would have to come about through the use of architecture as land marks and the
329

creation of traffic-free enclaves. Their open city thesis was essentially a pluralistic notion that acknowledged the existing urban pattern but sought to stitch a new urban pattern over and through it, using architecture to mark out significant new urban places for social intercourse. Richard Sennett in his essay The Open City (2006) echoes this view and blames over-determination of the citys visual and social functions as the fault-line. Although Sennett claims ownership of the term open city (incorrectly, as this term had been used by the Simthsons in 1958 already), he gives the urbanist Jane Jacobs credit for the idea (also incorrectly). Sennett suggests that an open city requires, among other factors, incomplete form, that is to say, the designer needs to create physical forms of a particular sort, incomplete in a special way. Sennett refers to Peter Eisenmans phrase light architecture to indicate a building planned so that it can be added to, or more importantly, revised internally in the course of time as the needs of habitation change. The final achievement as an anti-thesis to what Frampton calls the Cartesian projections of the Ville Radieuse (2007:278) came about through the Urbino proposal of one of the members of Team X, Giancarlo de Carlo, in which the insertion of the new combined successfully with the deliberate reuse of existing stock wherever possible. De Carlo went on to review the consequences of the CIAM La Sarraz Declaration of 1928 in a critical article titled Legitimizing Architecture where he noted that the proposals of CIAM have become the houses and neighbourhoods and suburbs and then entire cities, palpable manifestations of an abuse perpetrated first on the poor and then even on the not-so-poor (Frampton 2007:278). He went on to question why inadequate resources should be used as the justification for building housing as cheap as possible when there are always resources available for other activities, such as the building of an arsenal of weapons. Meanwhile, the search for alternative housing models continued: in Japan, the growing pressures of Japanese overcrowding lead, in the 1950s, a group known as the Japanese Metabolists to propose constantly growing and adapting plug-in megastructures where the living cells would be reduced to prefabricated pods clipped to vast skyscrapers. A growing consciousness developed in the 1960s about the mismatch between the values of the architect and the needs and customs of the end users. This awareness lead to a series of reformist moves to overcome this chasm between designer and end user, including those poor sections of the community unable to afford the services of professional architects. One of the reformist architects was N. Habraken who, in his book Supports: An Alternative to Mass Housing (1972) addresses the challenge of designing dwellings that could meet the variable needs of its users. Frampton notes that Habraken has opened up a line of research which has yet to be fully explored (2007:290). One of the lines of research required must address how an open building approach can also overcome the loss of cultural identity that results from the largely reductive codes of modern mass housing practice. Yona Friedman advocated an open infra-structural approach with his mobile architecture concept (Frampton 2007). His proposal was based on a low-rise, multi-storey, support structure whose plan was only fixed in terms of the required services (access, kitchen, and bathroom). The structure was to be enclosed with industrialized, modular components manufactured in much the same manner as automobiles complete with a similar high level of technical sophistication and structural tolerance. Such a methodological approach was posited by the Dutch architect Herman Hertzberger who, in 1963 wrote, What we must look for, in place of prototypes which are collective interpretations of individual living patterns, are prototypes which make individual interpretations of the collective possible; in other words, we must make houses alike in a particular way, such that everyone can bring into being his own interpretation of the collective patternBecause it is impossible (and it always was) to make the individual setting that exactly suits everyone, we have to create the possibility for personal interpretation, by making things in such a way that they are indeed interpretable (Frampton 2007:299).
330

Frampton, in adopting what he calls a taxonomy of six identifiably different aspects of architectural culture reflecting significant tendencies in current architectural practice today (topography, morphology, sustainability, materiality, habitat, and civic form), goes some way in providing a framework for this challenge. Frampton records that he used the German architect Gottfried Sempers essay of 1851, Die vier Elemente der Baukunst, as a base for his taxonomy. Semper posited four primordial elements of all building culture, namely 1) the elevated podium; 2) the framework and the roof, which provided the basic shelter; 3) the woven infill wall, which protected the hut from the elements; and, finally, 4) the hearth, which was not only the source of heat and food and the focus of social intercourse, but also the symbolic societal core (2007:346). 4.0 THE OPEN BUILDING APPROACH The Open Building approach is largely being driven by two groups internationally: the first is the CIB through its working group W104; and the second is the European Union initiative ManuBuild. Open Building (OB) is the international movement based on organizing buildings and their technical and decision-making process according to Levels (Habraken 1998): levels, in turn, are derived from the different scales of the city form, from the District Level down to the Level of the Room in a dwelling, a notion first used by Giambattista Nolli in his plan of Rome, the Pianta Grande di Roma, drawn between 1736 and 1748. Kendall (undated) argues that it is the formal recognition of these Levels that is a key characteristic of the OB approach. While the origin of the concept of OB is clearly located within the thinking of the Modern Movement especially as expounded by CIAM, it differs in one significant way, namely that buildings are not isolated and static objects in space, but are subject to change over time, i.e., the built environment is and should be encouraged to be regenerative. Using this as a point of departure, Open Architecture goes on broadly to describe building design and construction practices which consciously create capacity for transformation. Kendall notes that the key research question occupying proponents of OB has to do with how the built environment can be designed to support stability in the long-term interests of the community while accommodating change in respect of individual preferences. This stands in stark contrast to the position of CIAM that was prepared to sacrifice the latter in the interests of the former. According to Habraken (1998), OB is the term used to indicate a number of different but related ideas about the making of the environment. These include: The idea of distinct Levels of intervention in the built environment where levels describe the interrelated configurations of physical elements such as urban design and architecture, and base building (I prefer the term platform as used in the automotive and aeronautical industries) and fit-out (again I prefer the term components for the same reason), a concept first articulated by Semper; The idea that users/inhabitants may make decisions as well as professionals; The idea that the interface between technical systems allows the replacement of one system with another performing the same function such that different infill systems fit any given base building; The idea that the built environment is in constant transformation and change must be recognized and understood; and The idea that the built environment is the product of an ongoing, never ending design process, in which the environment transforms part by part.

331

The challenge to proponents of OB, Kendall posits, is to formulate theories about the built environment within this dynamic context and to develop methods of design and building construction that are compatible with it. ManuBuilds approach is closer in origin to CIAM than that of OB, being rooted firmly in the notion of industrialization and manufacturing. ManuBuild is a European Integrated Project on Industrialized Construction that has as its vision open building manufacturing, a new paradigm for building production and procurement by combining highly efficient manufacturing techniques in factories and on construction sites and open system for products and components offering diversity of supply and building component configuration opportunities in the open market. The ManuBuild Open Building Manufacturing System is an integrated system that incorporates Building Concepts, Business Processes, Production Technologies and ICT Support as well as Training. 5.0 PRINCIPLES OF HOUSING IN ALL SPHERES OF GOVERNMENT AND OPEN BUILDING The delivery of mass housing by the public sector in South Africa is controlled by the Housing Act (Act 107 of 1997). The Act provides for the facilitation of a sustainable housing development process, including the laying down of general principles applicable to housing development in all spheres of government. The Act recognizes that the Constitution of the Republic of South Africa (Act 108 of 1996) grants everyone the right to have access to adequate housing (section 26) and tasks the state to take reasonable legislative and other measures, within its available resources, to achieve the progressive realization of this right. The Act goes on to define housing development as the establishment and maintenance of habitable, stable and sustainable public and private residential environments to ensure viable households and communities. The Act notes that all citizens and permanent residents of the Republic will, on a progressive basis, have access to permanent residential structures ensuring internal and external privacy and providing adequate protection against the elements. With regard to community participation, the Act requires national, provincial and local spheres of government to consult meaningfully with individuals and communities affected by housing development (section 2(1)(b)) and ensure that development provides a wide choice of housing and tenure options as is reasonably possible (section 2(1)(c)(i)) and encourage and support individuals and communities in their efforts to fulfill their own housing needs by assisting them in accessing land, services and technical assistance (section 2(1)(d)). The Act requires the Minister of Housing to determine national policy, including national norms and standards, in respect of housing development. The Act further requires the Minister to publish a code called the National Housing Code. The Code must contain national housing policy and procedural guidelines in respect of the effective implementation and application of national housing policy. 5.1 The National Housing Code (the Code) Chapter 3 of the Code sets out strategies for South Africas Housing Policy. They are: Stabilising the Housing Environment Mobilising Housing Credit Providing Subsidy Assistance Supporting The Peoples Housing Process Rationalizing Institutional Capacities Facilitating Speedy Release and Servicing of Land Coordinating State Investment in Development
332

In terms of the strategy aimed at supporting the Peoples Housing Process, the Code notes that many South Africans have for many years been organizing and building houses for themselves and that they are able to achieve a greater level of value for money this way. The Code notes specifically that where beneficiaries are given the chance either to build houses themselves or to organize the building of the house themselves, they can save on labour costs by doing some of the work themselves or by getting their neighbours, friends and families or other persons to help them, save the profit normally made by the developer, and optimize their decisions by using opportunities for trade offs. The Code also notes that for this to happen successfully, beneficiaries must be given technical, financial, logistical, and administrative assistance. In terms of the Code, communities seeking to apply for housing subsidies using the Peoples Housing Process route, may apply for a Facilitation Grant which pays for community workshops. These workshops seek to, inter alia, develop a: Community Action Plan for the layout and the level of services for the development; Number of house designs and related costs including the building of skills within each family that enable people to alter and adapt both housing costs and plans if and when circumstances and the availability of resources change; and Printed set of community building guidelines for approval by the local government body.

It is thus clear that from a legislative perspective provision already exists for the implementation of an Open Building approach to public housing. 6.0 A FRAMEWORK FOR OPEN BUILDING STANDARD IN SOUTH AFRICA A number of criteria for the construction of an Open Standard Building Framework for South Africas mass housing crisis are readily available from the above. Some can be drawn from the Modern Movement itself, while others are quite clearly post-Modern in concept. Although the term mass housing may imply a validation of modernist approaches, a backlog of over two million dwellings unit can only require a mass approach if the shortfall is to be delivered in the lifetime of the beneficiaries. The first criterion has to do with the role and development of technology in mass housing. One of the difficulties identified by the Modernists had to do with the use of contemporary technology, particularly with regard to its application by the construction industry. The South African construction industry is dominated by SMEs with low levels of skill and technological expertise. In addition, much is made of the current shortage of skilled artisans, a circumstance that is expected to persist for some time. Thus much of what gets constructed in the building industry is done with unskilled labour. Developing a new building technology that requires a few highly trained technicians overseeing its application by generally unskilled labour thus has much to commend it. A further local skill advantage is identified in the Housing Act, namely that for generations South Africans have undertaken the construction of their dwellings themselves, either directly or indirectly. Again, a technology that is able to be transferred has much to commend it. A second criterion for such a framework has to do with the role of architectural practice in the provision of mass housing. Frampton quotes Donald Schons 1983 The Reflective Practitioner call for professional knowledge to acknowledge human values and interests at all times, and to recognize that the scope of technical expertise is limited by situations of uncertainty, instability, uniqueness, and conflict (2007:328). A third criterion for such a framework relates to the role of patrons, both public and private. Frampton argues that Without adequate patronage, a reasonable standard of general production can neither be achieved nor sustained, for building is a public art that demands great social commitment
333

as well as high levels of investment, matched by an appropriate building capacity in terms of both craft and industrial production (2007:329). A fourth criterion for the framework has to do with the recognition and inclusion of the role of the natural environment in human settlement. Frampton quotes Vittorio Gregotti as stating: The worst enemy of modern architecture is the idea of space considered solely in terms of its economic and technical exigencies indifferent to the ideas of the site. Indeed, through the concept of the site and the principle of settlement, the environment becomes the essence of architectural production (2007:329). Notwithstanding this limited environmental view of Gregottis, it does reverberate with a similar albeit more expansive position taken by Team X in their Doorn Manifesto of 1954 which posits an ecological approach integrating habitat into the landscape. Frampton argues that there is perhaps no area of human activity that is more in need of a new relationship with nature than the current model of suburban sprawl. He submits that the somewhat effete debates as to an appropriate architecture for our time pale into insignificance beside the apocalyptic prospect of the megapolitan explosion awaiting our cities, comparable in his view to the destruction of the rain forests and the depletion of the ozone layer. Returning again to Team Xs early explorations, each housing development presents a unique opportunity when place and production can be merged together to deliver a quality of character which both informs our identity and is sustainable. A fifth criterion for a framework has to do with standards, an area requiring substantial research for OB to be successful. A standard provides guidance to someone wanting to build something. A standard is more however because it has to have the agreement of a number of people to be accepted as a standard. The question of acceptance is a distinguishing feature between standards and specifications: specifications require no general acceptance. Standards are required when it is necessary to ensure that components made by different manufacturers will either work together or work in the same manner. This concept is well understood among software developers: OpenDocument Format (ODF), because it is a standard, can be used by anyone who builds software that complies with the standard. HTML is another important standard that facilitates interoperability by describing how pages for the World Wide Web should be formatted. Standards may originate as a de facto standard by virtue of the popularity of a specification, Microsofts Windows being a prime example. Unfortunately many de facto standards are controlled by a single vendor who may change the specification at any time thereby forcing users to convert or face obsolescence (again Windows is a prime example). An alternative to the de facto standard is the community standard which is created and owned by more than one person or company. Community standards may be endorsed or validated by a Standards Development Organization (SDO). The value of creating a community standard is that components from the participating community can work together to build solutions that solve real problems customers experience. In terms of open standards, the following needs to be remembered: The more transparent the standards process is, the more open the standard is. The more the community can be involved, the more open the standard is. The more democratic the standards process is, where the community can make significant changes even before Version One is released, the more open the standard is. The lower the standards-related cost to developers who want to use the standards, the more open it is. The lower the standards-related cost to the eventual consumer that uses the standards, the more open it is. When the licensing of the standard is more generous in the freedoms and permissions it provides, the more open the standard is. When the licensing of the standard is more onerous in the restrictions it imposes, the less open it is.
334

In reviewing Design Like You Give A Damn, edited by Architecture for Humanity and published in 2006 by Metropolis Books, New York, Jim Kennedy suggests what could be a useful framework for open building in South Africa: he summarizes the results in the book as a framework of minimum standards for material qualities and for physical planning into which localized design can be placed, a preference for flexible materials over finished structures, and an emphasis on contribution to the ownership by the beneficiaries themselves, all the while insisting that such efforts should come as a systematic programme for delivery embedded in a rights-based approach (Kennedy 2006). Using all of the above, a Framework can be constructed based on the criteria and mass housing delivery stakeholders. Table 1: Framework for Open Standard Building in South Africa
Research & Academic Institutions

Statutory Councils

Industry

Technology Development

Funding; Endorsement

Funding; Demonstration

Support

Products; Methods, Materials; Processes; Demonstration

Value engineering

Building Process; Manufacturing Processes; Mobile Factories; Component prefabrication; Lean Construction; Manuals; Best Practice; Performance Metrics; Training; On Site Production; Rapid Assembly & Disassembly Methods Demonstration; Training;

Technology transfer;

Design and Construction Practices

Value-driven Performance Evaluation; Strategic Procurement

Best Practice; Guidelines; Manuals; Curricula Development; Qualification Setting; Training through Industry Councils

Support

Guidelines; Manuals; Performance Metrics; LCA; ICT Support

Product representation; BIM; Peoplefocussed design; manuals; guidelines

Community Participation; Interactive Design; Training; Manuals

Patronage

Legislation; Regulation; Policy Formulation & Implementation; Technical, Financial, Logistical & Administrative Assistance Legislation, Regulation, Policy Support

Funding; Practice-based Training;

Support

Patent; IP

Demonstration; User-orientated Interactive Building Design; Decision Support & Visualization

Community Action Plan; Community Building Guidelines

Ecology

Best Practice

Support

R&D

Eco-logical design

Green Practice

Best

Green Best Practice; O&M Participation; Support

Standards

Participation; support

Validation

Participation; Support

Participation; support

Participation; Support

335

Users

State

SSO

BEP

7.0 CONCLUSION Caution must be exercised when proposing new solutions to the housing provision crisis lest the mistake of the modernists is to be repeated, namely the assumption that the provision of housing can be overcome by technology-driven interventions. As Frampton notes, devising appropriate housing delivery strategies lies beyond the scope of architectural practice as an autonomous discipline and even outside the process of land settlement and building as it is commonly understood (2007:289). The whole approach needs to be rethought commencing with the revaluing of access to housing within the concept of constitutional rights. Nonetheless, an Open Standard Building Approach would seem to hold significant promise with regard to righting the wrongs of the modern mass housing movement. Transferring technology in a manner that benefits the poor by significantly improving the performance of their dwelling while enabling transformation and cultural expression over time would alone bring about a step-change in housing delivery in South Africa. Much research needs to be done: the OB movement is young, and the challenges to be dealt with enormous. This paper therefore presents work in this field which is very much in progress at the CSIR. REFERENCES Conrad, U (ed) (1970). Programs and manifestoes on 20th-century architecture, The MIT Press, Cambridge, Massachusetts. Frampton, K. (2007). Modern Architecture: A Critical History. Thames and Hudson, London. Kennedy, J., (2006). In a review of Design Like You Give A Damn (ed. Architecture for Humanity) published in the Harvard Design Magazine, Fall 2007/Winter 2008. Habraken, J., (1998). The Structure of The Ordinary: Form and Control in the Built Environment, MIT Press. Kendall, S., (undated). Joint Coordinator, CIB W104. (ed) Kazi, A.; Hannus, M.; Boudjabeer, S.; and Malone, A., (2007). Open Building Manufacturing: Core Concepts and Industrial Requirements, ManuBuild, Finland. Sennett, R., (2006). The Open City, essay published in Urban Age, Berlin, November 2006. StatsSA, (2007a). Community Survey 2007, Statistical release P0301, Statistics South Africa, Pretoria. StatsSA, (2007b). Mid-year population estimates 2007, Statistical release P0302, Statistics South Africa, Pretoria.

336

ASSESSING THE SUSTAINABILITY PERFORMANCE OF THE 2010 FIFA WORLD CUP STADIA USING THE SUSTAINABLE BUILDING ASSESSMENT TOOL (SBAT) FOR STADIA
Sebake TN1, Gibberd JT2
1

CSIR, Built Environment, Architectural Sciences, ssebake@csir.co.za, Tel No. 012-8412546 CSIR, Built Environment, Architectural Sciences, jgibberd@csir.co.za, Tel No. 012-8412839

ABSTRACT In 2010, South Africa will host Africas first Fdration Internationale de Football Association (FIFA) World Cup. This will require the refurbishment and development of new stadia and an objective in this development is to continue with the Green Goal initiative developed for the 2006 FIFA World Cup. This is being addressed this by the Review of the Greening Status of the Stadia for the 2010 World Cup in South Africa project commissioned the Republic of South Africas Department of Environmental Affairs and Tourism (DEAT). This project is being undertaken by Green by Design (GbD), Paul Carew Consulting (PjC) and the South African Council for Industrial and Scientific Research (CSIR) and aims to review the sustainability initiatives that have been included in the 2010 FIFA World Cup stadia. It also aims to identify gaps in sustainability performance and provide recommendations on how these may be addressed. Purpose of this paper The purpose of this paper is to review the process undertaken by the review team in assessing the sustainability performance of the stadia with particular focus on the use of the Sustainable Building Assessment Tool (SBAT) for Stadia. Methodology/Scope The SBAT was adapted through the development of a set of indicators that would support the assessment of the sustainable performance of the 2010 FIFA World Cup stadia, and used in assessments. Findings This paper presents the initial findings of the process of assessing the 2010 FIFA World Cup stadia using the SBAT for Stadia as for the Review of the Greening Status of the Stadia for the 2010 World Cup in South Africa project. Value The SBAT for Stadia enables not only the environmental issues to be considered but also ensures that socio-economic issues are included, as important local concerns. Keywords: Environmental assessment tools, sustainable building assessment tool (SBAT), stadia, 2010 FIFA World Cup, sustainable construction. 1 INTRODUCTION

The Republic of South Africa is considered to be the most developed and modern country on the African continent. Since 1994, when the first democratic government was elected, South Africa has had positive economic growth (Knight, 2006). However, on the other side of this positive aspect is a country which still has major social and economic problems including poverty, inequality, unemployment, HIV/Aids and property and personal insecurity (Beall et al, 2005). It was in light of these socio-economic problems that South Africas bid campaign for the 2010 Fdration Internationale de Football Association (FIFA) World Cup promised that it would ensure a lasting social legacy through the event and leverage the event to spread economic and social benefits beyond the borders of South Africa (DEAT, 2005). In May 2004, South Africa was awarded the rights to host the 2010 FIFA World Cup event. Ten stadia are currently being constructed, upgraded or reconstructed for the event (FIFA, No date).
337

South Africas hosting of the 2010 event presents an opportunity not only to run a successful event but also to achieve the political and social promises on which South Africas bid campaign was based (Cornelissen, Swart 2006). In addition to fulfilling these promises, South Africa will take on the challenge of upholding the standards set by Germany during the 2006 FIFA World Cup event, which was carried out in an environmentally accountable way. South Africas Department of Environmental Affairs and Tourism (DEAT) has addressed this challenge by setting up the Review of the Greening Status of the Stadia for the 2010 World Cup in South Africa project which is currently undertaken by Green by Design (GbD), Paul Carew Consulting (PjC) and the South African Council for Scientific and Industrial Research (CSIR). The project aims to review the sustainability initiatives. In order to assess the sustainability performance of the stadia, the Sustainable Building Assessment Tool (SBAT) was adapted to create the SBAT for Stadia. This paper reviews the process undertaken by the review team in assessing the sustainability performance of the stadia and presents the following research questions: Was the SBAT for Stadia an appropriate tool to use for the project given the direction that the greening of sporting event has taken and also considering the South African context? Was the process of using the tool for the Review of the Greening Status of the Stadia for the 2010 World Cup in South Africa project successful?

This paper presents the initial findings of this Review of the Greening Status of the Stadia for the 2010 World Cup in South Africa project review process using the SBAT for Stadia. 2 GREENING OF SPORTING EVENTS

The concept of sustainable development has been defined by the World Commission on Environment and Development (WCED) in their Brundtland Report as meeting the needs of the present without compromising the ability of future generations to meet their own needs (WCED, 1987). This was recognized as a balance between the environmental protection, economic growth and social development dimensions in 1992 at the Rio Declaration by the United Nations NGO Committee on Sustainable Development (UN, No date a). Of the largest global sporting organizations, the International Olympic Committee (IOC) was the first to respond to the global concern on environmental concern. This was done by the Local Organising Committee (LOC) who incorporated environmental practices in the implementation of the Lillehammer 1994 Winter Games. Subsequent LOCs followed this example including the Nagano 1998, Sydney 2000, Salt lake City 2002, Athens 2004 and Torino 2006 (IOC, 2007). The most recent Olympics Games stand out because the Torino Organizing Committee (TOROC) pioneered the move to sustainability reporting based on the Global Reporting Initiative (GRI) guidelines (TOROC, 2005). This ensured that planning, implementation and monitoring incorporated the three sustainability dimensions recognized at the 1992 Rio Declaration which went beyond focusing on environmental issues. It is evident from the preparation of the following three Olympic Games events, namely Beijing 2008, Vancouver 2010 and London 2012, that the respective LOCs have been influenced by the sustainability practices undertaken in the Torino 2006 Winter Games and will be addressing sustainability as a major concern (IOC, No date). The 2006 FIFA World Cup LOC were inspired by the successes of Australia for the 2000 Summer Olympics in Sydney and submitted a chapter called Environmental Concept for the stadia as part of their bid campaign even before FIFA required any commitment to Environmental Protection or Sustainable Development.
338

The Green Goal initiative was developed by the 2006 LOC who worked with the ko-Institut and the World Wildlife Fund (WWF) to develop guidelines and objectives for the event. Implementation of the initiative was difficult, mainly because construction of the stadia had already begun. The programme therefore only had a limited impact on the stadium planning (ko-Institut, 2006). Following Germanys successful hosting of the 2006 World Cup, FIFA (like the IOC following the Lillehammer Games in 1994) showed its support for environmental protection by adding a Green Goal chapter in its Football Stadiums: Technical Recommendations and Requirements (FIFA, 2007) manual and the incorporation of Environmental Protection in the host city agreement with the 2010 FIFA World Cup LOC and the host city (CoCT, 2006, pp 3). The host cities have been bound by this agreement to plan, implement and operate the 2010 stadia in an environmentally sustainable manner. South African legislation (which has been guided by global priorities encapsulated through documents like the Agenda 21, Millennium Development Goals and the Johannesburg Plan of Implementation (DEAT, 2006)) has provided additional guidance. 3
3.1

DEVELOPMENT OF THE SUSTAINABLE BUILDING ASSESSMENT TOOL (SBAT) FOR STADIA

Background on the tool The SBAT was developed to support the development of a more sustainable built environment within South Africas developing country context. The tool draws on international best practices and has been refined through use in South Africa that reflects the local context and policy. The tool provides a robust framework/methodology that assesses the sustainability performance of proposed designs and existing buildings. The framework/methodology includes five criteria in all three sustainability aspects, namely: Economic (local economy, efficiency, adaptability and flexibility, ongoing costs, capital costs); Environmental (water, energy, waste, site, materials and components); and Social (occupant comfort, inclusive environments, access to facilities, participation and control, education, health and safety) (Gibberd, 2001).

Each of the 15 criteria has a set of five sub-criteria linked to indicators that are used to measure the sustainability performance of a proposed design or existing building (see Table 1).
Table 1 The Structure of the SBAT Sustainability Criteria aspect

Sub-Criteria EC1.1 Local Labour EC1.2 Local Materials

Indicator Use of local (from within 50km of the site) labourers Building material sourced from within the country Material and components sourced from within the country Furniture and fittings sourced from within the country Maintenance and repairs can be undertaken by local SMMEs (turnover of <R5m) 75 indicators in total

EC ECONOMIC

EC1 Local Economy

EC1.3 Local Materials and Components EC1.4 Local Furniture and Fittings EC1.5 Maintenance 75 sub-criteria in total

3 Sustainability aspects in total

15 criteria in total

3.2 Need for the development of a stadium specific tool The review team proposed the use of the existing SBAT framework/methodology with adaptations to reflect the stadium building type. Table 2 outlines some differences between commercial buildings (for which the SBAT was originally intended) and stadium. This brief comparison shows
339

that the two building types cannot be compared and therefore a tool targeting one building type (i.e. commercial building) cannot be used to measure the sustainability performance of the other (i.e. stadium) without being biased to the other (i.e. stadium).
Table 2 Comparison between a commercial building and a stadium Commercial building Stadium Definition A commercial building is a building type that is A modern stadium is a predominantly outdoor used for commercial use, including office place used for sports, concerts or other events. It buildings, warehouses, or retail (Wikipedia consists of a field that is partly or completely surrounded by a structure designed to allow contributors, 2007). spectators to stand or sit and view the event (Wikipedia contributors, 2008). Users 540 employees are accommodated in the 50000 spectators will seat on a structure that is building. At maximum capacity each employee open to most external element. Each spectator has a space of 16,26m2/occupant has a space of Occupancy Approximately 260 days/year for a minimum of A minimum of 30 days/ year for a minimum of 12 hours/day 4 hours/event Area Analysis More than 50% of the floor space is used for More than 50% of the floor space is used for commercial purposes (TeachmeFinance.com, spectator seating, VIP and media facilities. No date).

3.3 Development of the SBAT for Stadia The literature review of existing environmental assessment tools suggested that there was no tool that had been developed specifically stadia. Some existing environmental assessment tools such as Leadership in Energy and Environmental Design (LEED) and Strategic Environmental Assessment (SEA) were used to measure the environmental sustainability of the Torino 2006 and Vancouver 2010 Olympic events, respectively. The British Research Establishment Environmental Assessment Methodology (BREEAM) was adapted to incorporate the social aspects that are usually excluded from the scheme for the sustainability design management of the London 2012 Olympic Games. However no tool specific to stadia had been developed.

The SBAT framework/methodology was therefore used as a point of departure for the development of the stadia tool. Only the indicators were reviewed and changed through the following process: Previous FIFA World Cup stadia were reviewed. This enabled the SBAT developers to identify key performance areas for the building type in order to add indicators to relevant criteria.

Table 3 Adaptation of the Day lighting sub-criteria for the SBAT for Stadia tool SBAT Office SBAT for Stadia Criteria: SO 1 Occupant Comfort For the SBAT for Stadia, this criteria is Occupant Comfort changed to Spectator Comfort Sub-criteria: SO1.1 Day lighting For the SBAT for Stadia, this sub-criteria is Day lighting changed to Shading Indicator Percentage of occupied spaces that are Percentage of spectators shaded at midday within a distance 2H distance from a window (where H is the head height of the window)

A wide range of indicators was developed from this review. Table 3 shows an example of how the indicator for the Day lighting sub-criteria was adapted from the original SBAT Office to reflect a stadia specific indicator measuring the comfort of the spectator by calculating the proportion of shaded spectator seating during midday. From the range of indicators developed, a selection of indicators was prioritised. This led to the elimination of the least appropriate indicators, in some instances with the assistance of a relevant specialist, resulting in a set of five indicators per sub-criteria. The remaining indicators then formed part of the SBAT for Stadia which was tested and refined through application on the first stadium assessed for the review project.
340

Aspects of the tool which require further refinement are the targets against which the ratings are measured. This is due to the limited information available on stadia in this regard. The majority of the targets currently used is based on international practice and may not necessarily be suitable for a South African context. It has, therefore, been difficult to gauge the success of the approach of the first two stadia assessed. Targets will be drawn from local best practice through the review as more stadia are assessed, enabling assessments to become more refined. 4 REVIEW OF THE GREENING STATUS OF THE 2010 FIFA WORLD CUP

The original terms of reference (ToR) for the proposal received from DEAT included the environmental assessment of water, energy, waste and transport issues as outlined in the Green Goal Report (iSeluleko Consulting, 2007). The review teams successful proposal to DEAT responded to these issues and included the suggestion that the SBAT be used to address some of the broader social and economic issues rather than solely focusing on environmental issues. To date, two stadia and one training venue have been assessed. For the purposes of this paper, the focus will remain on the stadia for the event not on the training venue. The two stadia will be referred to as stadium A and stadium B in order of commencement. The review of each stadium was undertaken in three stages (with stadia programmes staggered due to differing starting dates). The description of each review stage (Green by Design et al, 2007) is provided in the following sub-sections with an outline of the processes undertaken for the completion of an SBAT for Stadia assessment.
4.1 Stage 1: The Initial Workshop The objective of the first stage was to review the existing sustainability initiatives and undertake an appraisal of additional opportunities that had not been explored.

During this stage, a full day workshop with the stadium authority and individual professional team members was held. This provided the review team with a broad scope of the sustainability initiatives initially being implemented in the stadium design. These included energy, water, waste, transportation, urban design and material selection. Following the workshop, additional information was requested from the professional team, including technical documentation (i.e. a site plan, plans of all the levels, sections along both axes of the stadium) and any available and appropriate reports. The information gathered from the workshop and from the professional team following the workshop was used to develop the first SBAT appraisal and the first draft of the stadium review report. The report consists of two parts namely, the general information and the stadium review. The general information presents the host citys activities regarding sustainable development and provides a contextual introduction of the stadium. The stadium review shows the results of the first SBAT appraisal and describes how the stadium design performs in terms of the environmental sustainability. Additional opportunities that have not been explored by the design team are incorporated into the report. At the end of this stage, gaps in information were highlighted particularly with regard to the SBAT which could not be finalised without the missing data. The report, including the incomplete SBAT appraisal, was sent to the stadium authority who shared this with the professional team.
4.2 Stage 2: The Interim Workshop The objective of the second stage was to assess the feasibility of each of the additional opportunities identified in the first draft report.

During this stage, a half day workshop with the stadium authority and selected professional team members was held. This provided the review team with an opportunity to present the first draft
341

report. Stadium A provided valuable feedback, however, too much time was spent discussing the SBAT rating. This drew attention away from discussion about the strengths and weaknesses of the approach and how gaps could be addressed. The rating figures were left out from subsequent reports for the stadia. This strategy seemed to be successful and guided the process away from a pointscoring exercise to constructive discussion on how to improve the sustainability of the stadium in a balanced and effective way. Following the feedback and SBAT discussion session, the shades of green decision-making matrix, developed by GbD, was drawn up to assist in allocating resources for the additional opportunities identified in the first draft report. Both of the stadia reviewed have reached this stage, however, stadium A has had an additional visit because required processes undertaken during the workshop were improved during the visit to stadium B. Following the workshop, a SBAT questionnaire was designed to capture missing information. This specifically sought information that was not easily accessible from drawings, reports or other documents submitted. The questionnaire was sent to the stadia authorities who forwarded it to their respective professional teams. The questionnaire was then completed by one or more professional team members of stadium B. However, having previously provided some of the required information, the professional team members of stadium A were reluctant to take the time required to provide this information. At the end of this stage, a second draft report including the revised SBAT and a shades of green matrix was sent to the stadium authority (with fewer gaps in information) for review and comment.
4.3 Stage 3: The Final Workshop The objective of the third and final stage was to finalize and present the final report to the stadium authority and selected professional team members and to submit the final report to DEAT. Only stadium B has reached this stage, however, the presentation to the stadium team and submission of the report to DEAT still needs to take place.

During this stage, feedback received from the stadium teams is incorporated into the report to form a final report. A half day workshop with the stadium authority and selected professional team members will be held. This will provide the review team with an opportunity to present the final report incorporating all the comments received from the stadium authority and professional team. The final report consisted of a completed SBAT appraisal with information used from the completed SBAT questionnaire. The SBAT diagram for the stadium B has been incorporated in the report without the rating figures and overall score (see Figure 1 for a sample of an SBAT report) below the radar diagram.

Figure 1 Sample SBAT Report presented as radar diagram

342

4.3.1

An Overview of the SBAT Performance

The SBAT report in Figure 1 indicates that the overall sustainability performance of the sample stadium is good and fairly well balanced across the three different sustainability areas. Relatively poor performing areas include efficiency, capital costs and materials and components rated just under a score of 3 (Average). Areas that appear to perform well include the local economy, adaptability and site rated well over 3 (Good to Very Good). The overall rating of 3.4 (Good) indicates that the approach taken is robust and may lead to a Very Good sustainability performance through the adoption of sustainable technology and management techniques. The balanced performance (ratings vary from 3.3 to 3.5) within the three sustainability areas confirms that there has been an even and effective handling of the performance objectives and that one area (such as environmental issues) has not been allowed to eclipse the others. This balance is likely to have been achieved as a result of the experience of the professional team, the procurement policy and other policies being applied to the project. 5 FINDINGS

The paper presents the following findings:

5.1

Appropriateness of the SBAT for Stadia for reviewing the 2010 FIFA World Cup stadia The 6th principle of the Rio Declaration on Environment and Development states that the special situation and needs of developing countriesshall be given special priority (UN, No date b). This suggests that, as a developing country, South Africa needs to ensure that its social and economic issues are addressed before the environmental ones.

The review project aptly widened the scope from a purely environmental focus and acknowledged South African local concerns by using the SBAT which has been found to be the most suitable tool for a developing country context (Kaatz et al, 2002). However, since SBAT for Stadia is the first tool of its kind, it has been difficult to obtain local targets or benchmarks for the assessment of the sustainability performance of the stadia. These will be developed as new stadia are assessed. The use of the tool was therefore appropriate for the review project as it incorporated all three dimensions of sustainability. The execution of the SBAT for Stadia in the Review of the Greening Status of the Stadia for the 2010 World Cup in South Africa project The paper finds that the process undertaken using the SBAT for Stadia was initially ineffective, as opportunities such as the first workshop were not used to their fullest extent. The development of the SBAT questionnaire in the second stage (following the stadium A visit) resolved this issue, as the questionnaire provided an instrument for collecting information that is not readily available in a report or drawing. This will therefore be useful for future stadia assessed under the review project.
5.2

As with other environmental interventions, the SBAT for Stadia needs to be introduced during the early stages of the design phase to make the maximum impact on the environmental or sustainability performance of the building. Figure 2 shows this and further illustrates that when the design stage has passed, opportunities to influence the environmental sustainability lessen substantially (Department of Environment and Heritage, 2006). The ability to influence any of the 2010 FIFA World Cup stadia has lessened as construction is underway for most of them, however, the host city agreements signed and legislative guidance provided have ensured that environmental concerns are addressed. The SBAT for Stadia provides a framework/methodology that enables the review of not only environmental issues, but also the more urgent social and economic ones. Its use for the review process, although initially ineffective has in general been successful.

343

Figure 2 Influence on ecological sustainability by building lifecycle stage (Department of Environment and Heritage, 2006)

CONCLUSIONS

The use of the SBAT for Stadia has not made a significant impact on the design because the review project commenced seven months after construction had started. However, it provides a framework/methodology that is useful for assessing whether the economic and social issues, which were key objectives in South Africas bid campaign, are addressed. The paper therefore finds that the SBAT for Stadia added value to the project by focusing on these issues which had initially not been part of the review project. In addition, prior to the SBAT for Stadia, there were no assessment tools developed to measure the environmental or sustainability performance specific to stadia. The development of the SBAT for Stadia has resulted in a set of indicators and targets which have not been previously available. The development of the tool will be useful for assessing the sustainability performance of future stadia construction and major refurbishment projects. 7 REFERENCES

Beall, J., Gelb, S. & Hassim, S. 2005. Fragile Stability: State and Society in Democratic South Africa. Journal of Southern African Studies. vol. 31. no. 4. pp. 681-700. City of Cape Town (CoCT). 2006. City of Cape Town and Western Cape Provincial Government Drafting Greening Principles for the 2010 World Cup. CoCT. Cape Town. Cornelissen, S. & Swart, K. 2006. The 2010 Football World Cup as a political construct: The challenge of making good on an African promise. The Editorial Board of the Sociological Review. vol. 54. pp. 108-123. Department of Environment and Heritage (DEH). 2006. ESD Design Guide for Australian Government buildings (Second Edition). DEH. Canberra. Available: http://www.australia.gov.au/ [Accessed: 5/1/2008] Department of Environmental Affairs and Tourism (DEAT). 2005. 2010 Soccer World Cup Tourism Organising Plan Presentation. South Africa. Pretoria. DEAT. 2006. People - Planet - Prosperity: A Strategic Framework for Sustainable Development in South Africa. South Africa. Pretoria.
344

Fdration Internationale de Football Association (FIFA). No date. FIFA.com. Zurich. Available: http://www.fifa.com/ [Accessed: 3/8/2007] FIFA (ed). 2007. Football Stadiums: Technical Recommendations and Requirements (4th edition). FIFA. Zurich. Available: http://www.fifa.com/ [Accessed: 3/8/2007] Gibberd, J. 2001. Building Sustainability: How Buildings can support Sustainability in Developing Countries. In proceedings: Continental Shift 2001 - IFI International Conference, Johannesburg, 11 14 September 2001. Johannesburg. South Africa. Green by Design, Paul Carew Consulting & CSIR. 2007. Review of the Greening Status of the Stadia for the 2010 World Cup in South Africa: Inception Work. DEAT. Pretoria. International Olympic Committee (IOC). 2007. Fact sheet: Environment and Sustainable Development. IOC. England. Available: http://www.olympic.org/ [Accessed: 12/9/2007] International Olympic Committee (IOC). No date. The Official Website of the Olympic Movement. IOC. England. Available: http://www.olympic.org/ [Accessed: 12/9/2007] iSeluleko Consulting. 2007. Review of the Greening of the RSAs Stadia for the World Cup, 2010: Terms of Reference. DEAT. Pretoria. Kaatz, E., Barker, G., Hill, R. & Bowen, P. 2002. A Comparative Evaluation of Building Environmental Assessment Methods: Suitability for the South African Context. In proceedings: Sustainable Building 2002, 23-25 September, Oslo, Norway. Published abstracts p.376, paper 4 on CD, pp.1-6. Knight, R. 2006. South Africa 2006: Challenges for the Future. South Africa Delegation Briefing Paper. New York. Ndaba, D. 2007. World Cup 2010: Building for a Spectacular. A Progress Report Card on the Ten World Cup Stadia. Engineering News. pp. 16, 17& 95. ko-Institut 2006, Green Goal Report, Organising Committee, Frankfurt/Main. Available: http://www.fifa.com/ [Accessed: 4/8/2007]. TeachmeFinance.com. No date. Definition of Commercial building. http://www.teachmefinance.com/Scientific_Terms/Commercial_building.html 3/6/2008]. Available: [Accessed:

Torino Organising Committee (TOROC). 2005. Sustainability Report 2004/05. TOROC. Torino. Available: http://www.torino2006.org/ [Accessed: 12/9/2007]. United Nations (UN). No date a. UN NGO Committee on Sustainable Development Sustainable Development Definitions. UN. New York. Available: http://www.unngocsd.org/ [Accessed: 3/4/2008]. United Nations UN. No date b. United Nations http://www.un.org/english/ [Accessed: 12/12/2007]. [Homepage of UN]. Available:

Wikipedia contributors. 2008. Stadium [Homepage of Wikipedia, The Free Encyclopedia]. Available: http://en.wikipedia.org/wiki/stadium?oldid=196079126 [Accessed: 3/5/2008].
345

Wikipedia contributors. 2007. Commercial building [Homepage of Wikipedia, The Free Encyclopedia]. Available: http://en.wikipedia.org/wiki/commercial_building?oldid=120808133 [Accessed: 3/5/2008]. World Commission on the Environment and Development (WCED). 1987. Our Common Future. Oxford University Press. Oxford.

346

THE PEOPLES HOUSING PROCESS (PHP) SCHEME IN GAUTENG PROVINCE OF SOUTH AFRICA- LESSONS LEARNT
Ogunfiditimi o1, Thwala WD2
1 Department of Construction Management and Quantity Surveying, University of Johannesburg, olao@uj.ac.za 2 Department of Construction Management and Quantity Surveying, University of Johannesburg, didibhukut@uj.ac.za

ABSTRACT Purpose/Objectives: The paper compares the Peoples Housing Process in Gauteng Province in South Africa with Organised Self-Help programme in Cuba in relation to community participation and training of beneficiaries towards low cost housing delivery. The paper outlines the challenges of the Peoples Housing Process in South Africa. Methodology: The descriptive survey method was employed for the study. This is because the research objectives demanded the technique of observation (through interviews, physical observations and questionnaires) as the primary means of collecting data as well as extensive literature review. Findings: One of the primary findings that emanated from the study revealed that one of the vital ingredients for the success of PHP in South Africa is community participation and training of beneficiaries since the programme is not only required to provide houses but also to empower the benefiting families and communities. Conclusion: The study examined Organised Self-Help Programme in Cuba and compares with the Peoples Housing Process in South Africa. The Cuban experience showed that communities were able to manage and monitor the designing and construction of their houses through active participation which was made possible by training given to the beneficiaries. KEY WORDS: peoples housing process, organised self help programme, community participation. 1 INTRODUCTION Housing is meant to address basic human need for shelter and security by providing protection against excessive climatic conditions and unwanted intrusion from insects, rodents, and environmental nuisances, such as noise that may be injurious to health and well being (Roderick, 2004). The South African government since 1994 have initiated and implemented several housing delivery programmes and subsidy mechanisms to provide houses to the poor one of which is the Peoples Housing Process. This is done to fulfill her vision to adequate housing for all as reflected in the National Housing Policy framework: to increase housing's share in the total State budget to five percent and to increase housing delivery on a sustainable basis to a peak level of 338 000 units per annum, within a five year period, to reach the target of the Government of National Unity of 1,000,000 houses in five years (A new national Housing Policy for South Africa, 1994). 2 HOUSING IN SOUTH AFRICA Provision of adequate housing for the homeless and others who are inadequately housed in an attempt
347

to reduce poverty and improve quality of peoples life has been a huge challenge to South African government over the years (Department of Housing, 2004:399). Over the years this provision has been challenged and has resulted in enormous housing backlog with poverty, unemployment, economic stagnation and negative behaviour, together with financial constrains making the task even more enormous (Department of Housing, 2000). However, a large number of housing projects have been implemented throughout the country to deliver houses to the poor to fulfill her vision to adequate housing for all as reflected in the National Housing Policy framework. Since 1994, housing in South Africa has undergone fundamental changes and about One Million eight Hundred and seventy seven Thousand Nine Hundred and Fifty Eight (1 877 958) houses has been delivered (Department of Housing, 2006). Despite the huge delivery of housing to the poor, South Africa still has a significant housing backlog that is being addressed by a comprehensive housing policy. The vision of the government of South Africa, as stated in the National Housing Code (2001), advocates for sustainable housing and sustainable urban environment. It is common knowledge that housing is a major component of the urban environment and that better designed houses contribute to the physiological and psychological well being of the inhabitants. However, the problem lies in the formation of the housing processes that must ensure the delivery of sustainable housing (Kangwa 2002:5). 2.1 The Peoples Housing Process Peoples Housing Process is a low-income housing delivery approach promoting the involvement of the beneficiaries in the development of their own houses. In this programme, the government encourages and support individuals, families or groups who wish to enhance their subsidy by organizing, planning, designing and building of their own houses and their contribution is sweat equity as opposed to hiring a contractor although, less than 3% of the total houses built were delivered through the PHP housing delivery programme (Baumann 2002), but it is different to other delivery mechanisms because the PHP scheme encourages the involvement of beneficiaries in the construction of their houses. The aims of the PHP programme are to mobilize and support community effort, facilitate access to subsidies in appropriate ways to support peoples housing initiative, promote the most cost effective use of resources, choice of and trade-offs between options, foster partnership between all levels of government, civil society, the public sector and other players, regularize settlements and create secure tenure options, build capacity and skills whenever required, promote the culture of saving, facilitate maximal transfer of skills for economic upliftment and employment and apply state funding to achieve maximum leverage of non-governmental resources. In implementing the PHP, the Department of Housing has listed the advantages as saving on labour costs; avoiding having to pay a profit to contractors, optimizing decisions in terms of trade-off with regards to materials procurement and the choice of beneficiary related to product house type, size, specifications, construction process and the contribution. (Department of Housing, 2003:9). 2.1.1 PHP Housing Support Organization The Housing Support Organisation is a developer that has transformed itself into the Peoples Housing Process support group (Napier, 2003). According to Department of Housing, a support organization must be established or identified. It must be a legally registered entity and shall carry out the technical, financial and administrative support to families building their own houses. The functions of the support Organisations include technical and administrative support, where
348

appropriate, to beneficiary families. They assist in the preparation of various house plans and cost, ensure that materials are ordered and delivered on time, assist with preparations of a project application pertaining to housing subsidies as well as the establishment grant and submit to Provincial Housing Development Board (PHDB) for approval. In addition, the support organisations in conjunction with the Department of housing organise training for the beneficiaries, they supervise and support beneficiaries who have been trained to build their own houses and arrange for inspections to be done by building inspectors of Local Authority. 3 SELF ORGANISED HOUSING IN CUBA Organised self help programme requires the knowledge and competence in planning and implementing of housing, particularly concerning the responsibilities and roles of the households and the facilitating organisation and authorities. Organised self-help housing is not only a method of meeting housing shortages, it enhance organisation of resources and also promote community participation in housing development. When communities and families are involved in organized self help housing, the expectations usually exceeds what can be achieved with the amount of credit they can obtain (Rodriguez & Astrand, 2000). According to Rodriguez & Astrand (2000), the implementation of organized self help projects are in four stages: Stage 1 is the social stage where there is increasing participation and involvement of the residents in solving their problems. It is important to create monitoring mechanisms to anticipate problems of relationship and leadership. Stage 2- is the construction stage which focuses on all activities, integrating, defining training needs so as to ensure quality control by families themselves and monitoring plans and schedules by the communities. Stage 3- is concerned with the administration which involves materials procurements, distribution and control of expenses. Stage 4- is the financial activities stage which is concerned with cash flow control and monitoring the budget against the expenses and the progress of work. The local and regional authorities of Cuba facilitate organized self-help housing. They provide appropriate land at a reasonable cost and then it be prepared by either the municipality or the facilitating organisation. The facilitating organisations are responsible for convincing the banks and other credit institution and any other donor. Housing finance depends only on limited resources from the national and local authorities which implies that the facilitating organisation must prove to the national decision makers that use of local resources in organized self-help housing is efficient and reliable (Rodriguez and Astrand, 2000). Training is organized to transfer technical, legal and management skills to the communities. The aim of the training is to enable the community members to participate actively in the construction process and improve their management skills in negotiating and solving conflicts. Training must be practical in common areas such as social developments, construction, management of housing in relation to projects, programming and budgeting techniques (Rodriguez and Astrand , 2000). 4 Research Methodology The descriptive survey method was employed for the study. This is because the research objectives demanded the technique of observation (through interviews, physical observations and questionnaires)
349

as the primary means of collecting data as recommended by Leedy, (1997) ; Easter-Smith, Thorpe & Lowe (1991). This method was also used because the data required for the research is ordinal in nature. This means that data in this research was sourced from the opinions of respondents rather than from empirical sources or experiments (Leedy, 1997; Saunders, Lewis & Thornhill, 1997). The primary sources of information for this study include textbooks; databases, peer-reviewed articles, journals and conference papers; government documents, policy reports; professional bodies publications and internet sources web pages. The information obtained provided an in depth understanding of the topic and was used for the design of the interview questions in the second phase of the first stage (Mbachu, 2003). 4.1 Survey A total of forty questionnaires were distributed among the stakeholders of the Peoples Housing Process (PHP) with respondents drawn from drawn from the City of Johannesburg in Doornkorn, Diepsloot, Orange farm and Masisizane women organisation in Ivory Park. Twenty one were completed and returned which were used for the analysis. The results indicated sixty eight percent of effective response rate. A total of one hundred and twenty questionnaires were intended to be administered among the beneficiaries of PHP but Eighty one questionnaires were later administered and this indicated sixty eight percent effective response rate. The respondents were drawn from Kanana Zone 12, Rieger Park, Doornkorn, Orange farm and Ivory Park. 4.2 Survey Results 4.2.1 Stakeholders responses to the administered questionnaires Table 1.1 presents the respondents analysis of training of beneficiaries by the Department of Housing Does the Department of Housing train the beneficiaries on different building trades before the commencement of construction? Frequency Yes Valid Not Sure No Total 19 1 1 21 Percent 90.5 4.8 4.8 100.0 Valid Percent 90.5 4.8 4.8 100.0 Cumulative Percent 90.5 95.2 100.0

90% of the respondents said the Department of Housing offered training to the beneficiaries of PHP houses. About 5% said they were not sure whether the Department offered training to the beneficiaries or not and about 5% said the Department did not offered training to the beneficiaries.

350

Table 1.2 shows analysis of number of days the beneficiaries were being trained If yes to Q12, how many days of training do the department offer beneficiaries? Frequency Percent Valid Percent Cumulative Percent 1-3 days 4-6 days Valid 10-12 days Total Missing System Total 9 5 2 19 2 21 42.9 23.8 9.5 14.3 90.5 9.5 100.0 47.4 26.3 10.5 15.8 100.0 47.4 73.7 84.2 100.0

More than 12 days 3

73.7% of the respondents said the beneficiaries were trained for less than 7 days. 10.5% of the beneficiaries indicated that the beneficiaries were trained for about 12 days and 15.8% said the beneficiaries received more than 12 days training from the Department of Housing. 4.2.2 Beneficiaries responses to the administered questionnaires Does the Department of Housing train you on a building trade before the commencement of construction? Frequency Yes Valid Not Sure No Total Missing Total System 16 3 61 80 1 81 Percent 19.8 3.7 75.3 98.8 1.2 100.0 Valid Percent 20.0 3.8 76.3 100.0 Cumulative Percent 20.0 23.8 100.0

76.3% of the respondents said they were not being trained by the Department of Housing before the commencement of the construction of their houses. 20% of the respondents said they were trained.

351

Table 1.4 shows analysis of number of days the beneficiaries were being trained How many days of training does the department offer to you? Frequency Percent Valid Percent Cumulative Percent 1-3 days 15 Valid 4-6 days 2 Total Total 17 81 18.5 2.5 21.0 79.0 100.0 88.2 11.8 100.0 88.2 100.0

Missing System 64

Only 17 respondents answered this question. Out of these 17 respondents, 88.2% indicated that they were trained for not more than 3 days. 11.8% indicated that they were trained for about 6 days. 5 Value of Paper The South African experience of the PHP revealed that the community participation during the planning, deigning and construction of PHP houses was not well defined. The communities depend solemnly on the support organisation to do virtually everything towards the delivery of there houses. This lack of taking responsibility can be seen as a result of inadequate or no training given to the benefiting communities by the Department of Housing which should have enabled the beneficiaries to take active decisions during the construction of their houses. One of the aims of PHP programme is to transfer skills to the historically disadvantaged blacks so that they will not only participate in the construction of their houses but they will also develop skills in a particular trade in which they are trained. In accordance with the literature reviewed, it is recommended that the Department of Housing investigate how community participation in housing delivery works in Cuba. The whole idea of PHP is to engage families and communities in the delivery of their houses which is stated as one of advantages of PHP programme by the Department of Housing. The engagement of families and communities in this programme will enhance construction of good quality houses which will fulfill the main objective of PHP programme. REFERENCES Baumann, T. (2002) Investing in the Poor The South African Homeless Peoples Federation. http://www.dialogue.org.za., accessed on 05/10/2005 Clark, J. (2005) The Housing Dimension in Cubas Urban Crisis: Havana as Case Study. www.amigospais-guaracabuya/oagjc005.php, accessed on 07/06/2006 Coyula, M. and Hamberg, J.(2003) The case of Havana, Cuba: case Studies for the Global Report on Human Settlements, University College London. Department of Housing, (2000) Annual Report of Department of Housing: Gauteng Provincial Government, Johannesburg, South Africa, pp 23. Department of Housing, (2004) Annual Report of Department of Housing: Gauteng Provincial Government, Johannesburg, South Africa
352

Department of Housing, (2006) Annual Report of Department of Housing: Gauteng Provincial Government, Johannesburg, South Africa. Easter-Smith, M., Thorpe, R and Lowe, A. (1991) Management Research An Introduction London. Sage Publishers. Gauteng Department of Housing (2003), Peoples Housing Process Guide. Johannesburg: Government Printer. Kangwa, K.C. (2002) Towards Sustainable Low Income Housing: Comparing the developer driven housing programme with peoples Housing Process in Ivory Park, Johannesburg. A research report submitted to the faculty of Engineering and Built Environment, University of Witwatersrand. Kapur, T and Smith, A. (2002) Housing Policy in Castros Cuba. www.jchs.harvard.edu/education, accessed on 7/6/2006. Leedy, P.D. (1997), Practical Research: Planning and Design (6th ed.) Englewood Cliffs, NJ: Prentice Hall. Mbachu, J.J.C (2003) Critical Studyof Client needs and satisfaction in the South African Building Industry. Unpublished PhD Thesis, Faculty of Economics and Building Sciences, University of Port Elizabeth, South Africa. Napier,M, (2003). Supporting the Peoples Housing Process In Firoz Khan and Petal Thrings (edited). Housing Policy and Practice in Post Apartheid South Africa- Heinnemann Publishers (Pty) Ltd:Johannesburg. National Housing Code (2000) http://www.housing.gov.za/Content/, accessed on 15/10/2005 Roderick, J.L. (2004) Housing, Health and http://www.euro.who.int/housing, accessed on 26/06/2006 Rodriguez, M. and Astrand, J.(2000) Organised www.hdm.1th.se/bi/report/96, accessed on 07/06/2006. Well-Being: Moving Forward.

Small-

Scale

Self-help

Housing.

Saunders, M. Lewis, P. and Thornhill, A (1997) Research Methods for Business Students, London, Pitman Publishing.

353

THE PROCESS OF TESTING COMMUNITYS ACCEPTABILITY OF HIGH QUALITY EARTH CONSTRUCTED BUILDING METHODS AS A MEANS TO SUPPORT LOCAL ECONOMIC DEVELOPMENT.
Steyn, JJ1
1

Project leader and head of the department of Urban and Regional Planning, University of the Free State, Bloemfontein steynjj.sci@ufs.ac.za, Tel No. 051-401 2486

ABSTRACT Purpose of this paper To disseminate some of the research done on the process of making earth construction more acceptable in providing private buildings (housing) to local communities in support of local economic development. This was part of a SANPAD project (with Dutch money and a Dutch partner) started in 2003 and is still continuing is the write-up phase. Methodology/Scope The study was undertaken by means a literature study. This was followed up by identifying five target areas in the Free State and Northern Cape and doing two series of surveys on preferences on building materials and earth construction in: Botshabelo, Thaba Nchu, Makgolokeng near Harrismith, Taung/Pampierstad and Bankhara Budolong near Kuruman. The information gathered were analysed and evaluated in terms of its influence on the use of earth construction in the study areas. Attempts to change attitudes towards the use of earth construction were made with the interventions of a play and workshops in the areas. Findings The final results are not finalised but as a whole earth construction is looked on as a backward technology and is as such not accepted. The shift in attitude from the first survey to the second survey is still to be statistically evaluated. Practical implications The research hypothesis is that proper research into understanding the present attitudes towards earth construction together with the necessary dissemination on the modern use of earth construction can change perceptions and lead to earth construction being an acceptable and sustainable alternative to conventional techniques which can enhance sustainable local economic development Value As far as we know no other study has tested attitudes on the acceptance of earth construction and then tried to change these attitudes through workshops and a community play with a final survey to see what the results were. Keywords: - communitys acceptability, earth construction, local economic development, Free State, Northern Cape. 1. INTRODUCTION The use of earth as a building material and construction technique is very old and well known in South Africa and in the rest of the world (Fathy: 1973, Fransen & Cook 1965, Frescura: 1985). Many of the old Cape-Dutch houses as well as old farmhouses were built with earth (Greig: 1971, Fransen & Cook 1965). In many rural areas of SA people are still building with earth, although the skills are slowly disappearing. These skills were both African and European in origin and changed repeatedly to suit the local situation (Frescura: 1985).
354

In many poor communities in South Africa e.g. Kuruman in the Northern Cape, small entrepreneurs have started to produce earth blocks based on traditional skills, but have upgraded by adding cement to adobe blocks. These groups run small brickyards, sell blocks and make a living from it. With training these brickyards can produce a higher quality block, which can be more acceptable. The problem of consumer acceptance of a traditional approach was already highlighted when Habracken did research on using the Heineken-bottle for housing (Pawley, 1975: 34).. However the problem is not only technical but also behavioural therefore community involvement such as Hamdi and Goethert (1999) Action planning might help to solve the problem. Unfortunately traditional skills of building with earth as the main building material have been lost in the rural and urban areas. In case of Government contracts, large contractors build the subsidised housing in concrete blocks or brick (Hamdi: 2000). However, the current building budget does not allow all needed dwellings to be erected with these materials. Using suitable types of earth as a building material, will not only allow for more high quality housing to be constructed with the same budget, it also is a more sustainable local economic development. The University of the Free State (UFS) in South Africa and the Eindhoven University of Technology (TU/e) in the Netherlands are currently working on a project concerning the acceptability of sustainable, high quality, earth constructed, public and private buildings to support local economic development. Researchers from the disciplines of planning, architecture, and building technology are involved. The main research question was formulated as follows: "How can we make earth construction both more effective and more acceptable in providing private and public buildings to local communities in support of local economic development?" (TU/e & UFS, 2002: 6) This paper will only deal with the processes of the study and the variety of approaches being used to measure present acceptability and to measure the change in acceptability after interventions like the peoples drama, workshops and technical workshops have taken place. It is thus about the process of research and what can be learned form it. 1.1 WHAT IS THE DEFINITION OF EARTH CONSTRUCTED BUILDINGS? There are a number of definitions and explanations of what earth constructed buildings are. Houben (1994:4) explains it as follows: It is the use of raw soil and turning that into a building element without the use of any firing. All earth building elements such as bricks are produced by making use of the natural and inherent qualities of the soil. Renewable energy sources like the wind and the sun is used in the production process of these elements. No burning of fossil fuels takes place as part of the production process of these elements. (Vale& Vale, 1996:28) What are the reasons for investigating earth architecture? What are the reasons for studying and investigating earth architecture? 1) Almost one third of the worlds population live in houses made of raw earth (Houben, 1994:6) and that can be increased to around 50% when living and work is combined. (Web site Auroville). This should be one good reason to consider the qualities of earth. 2) In the 1970s the world was confronted with a huge energy crisis. The high cost of oil and fuel forced the world to look for alternatives. Here earth presented itself as a possibility. The production of building elements can be done by using renewable sources of energy like the sun and the wind. It was thus cheaper to produce that burnt bricks and was ecologically far more sensitive. 3) The material soil- can be found almost everywhere. (with the exception of a few places on earth like the poles) 4) The material is cheap.
355

5) The production of bricks, or any of the other techniques like rammed earth, can provide jobs in developing countries. 6) Earth construction can play a role in the huge housing shortage of developing countries especially because it can provide jobs for the small entrepreneur. 7) Earth has the added advantage that it creates thermally comfortable spaces 8) The material is different in every part of the world and in this way contributes to the unique character of each place. It becomes en expression of a place and its peoples identity. E.g. The differences can be seen in the character of the Dogon of Mali and the houses of the Ndebele in SA. 1.2 WHAT ARE THE DIFFERENT TECHNIQUES USED AROUND THE WORLD? There are 12 different recognized techniques used around the world. (Houben,1994: 165) Looking at figure 1, these different techniques can be seen. They are divided into a number of local variations, but the main techniques are a) Moulded earth (hand shaped adobe, machine shaped adobe, hand moulded adobe) b) Stacked earth c) Shaped (direct shaping) d) Compacted (Rammed earth, tamped blocks, pressed blocks) e) Cut (sods, cut blocks) f) Filled (Fill-in) g) Covered (Earth Shelters) h) Dug (dug-out) i) Applied (Daubed earth) j) Formed (Cob on posts, straw clay) k) Poured (poured earth) l) Extruded (extruded e.g. Bricks)

Fig 1: Chart showing the 12 different earth building techniques

356

These techniques are found around the world. The technique used by people are closely linked to the type of soils available in a certain region and also related to the traditions of the people of these places. 1.3 PERCEPTIONS OF CONSTRUCTION METHODS

The perceptions of what is non-durable in terms of building material are highly subjective, often relating to the culture and conditions of the observer rather than the observed (Oliver, 1987:221). In some developing countries the problem is largely one of prejudice; hostility to the use of bush or backward methods, antipathy to certain materials and techniques, and fears of being held back from modernizing (Oliver, 1987:232). Pawley (1975:34) found that advertising has convinced the poor that Western forms of housing is the only solution to the housing problem. In Europe the green movement influenced architecture to be more ecological friendly, healthy and sustainable (Haas & Schmid, 1990; Papaneck, 1995). In a study in Scotland Stevenson (2006:262) found that people are more inclined to use natural materials in housing. This is an opposite trend to what is experienced in the developing world where modern materials are in demand. This study will try to demonstrate that with proper research into understanding the present attitudes towards earth construction together with the necessary dissemination on the modern use of earth construction perceptions can change. Eventually this can lead to earth construction being an acceptable and sustainable alternative to conventional techniques which can enhance sustainable local economic development 2. BACKGROUND In 2002 members of the Unit for Earth Construction at the Department of Architecture as well as a staff member of the Department of Urban and Regional Planning at the University of the Free State in collaboration with staff from the Faculty of Architecture, Building & Planning at the Technical University of Eindhoven handed in a proposal for a project at SANPAD (South African Netherlands Research Programme on Alternatives in Development). The proposal was well received but needed some fine tuning and money was granted by SANPAD to improve it during a workshop in November 2002 in Eindhoven with all participants. An updated version of the proposal was submitted in February 2003 and the final go-ahead was given in August 2003. In 2004 the research commended and the final document will be finished this year.

2.1

Research question, aim and objectives

2.1.1 Main research question How can we make earth construction acceptable to local communities in support of local economic development? 2.1.2 The overall aim of this project is: To research the acceptability of earth construction, as an alternative for conventional, building construction in brick, concrete and steel. To offer alternative building techniques as a means for local economic development. To research ways to change perceptions on the use of earth construction as a high quality alternative building material, especially for poor people. 2.1.3 Specific research objectives are: To make an inventory and documentation of existing upgraded earth building knowledge and skills in a number of selected target areas in SA.
357

To create awareness and support for earth construction in communities resulting in job creation, capacity building and a high quality built environment as a part of local economic development.

2.2 Hypothesis The research hypothesis is that proper research into understanding the present attitudes towards earth construction together with the necessary dissemination on the modern use of earth construction can change perceptions and lead to earth construction being an acceptable and sustainable alternative to conventional techniques which can enhance sustainable local economic development With this as a background this paper focuses on the methodology of the research and not on the findings as that will be used for two PhD theses. 3. METHODOLOGY/SCOPE The study was undertaken by means of the following structured methodological phases: The first phase comprised of a literature study on three main themes namely the present acceptability of earth construction, measure to influence the present use of earth construction and how earth construction could help sustain local economic development. The second phase outlined the project by the research team. During this phase an initial survey in different areas in two provinces was explored looking for target areas where the survey and in depth research could take place. This would be communities that are living in areas where earth building skills are still practised and valued as permanent building material. The problem to be studied was influenced by the survey and the objectives of the study were articulated. Together with the Dutch partners 16 towns were visited in the Free State and Northern Cape stretching from Philippolis in the Southern Free State to Harrismith in the north and as far west as Kuruman in the Northern Cape (see figure 1). Five target areas were identified namely: Botshabelo Thaba Nchu Makgolokeng near Harrismith Taung/Pampierstad Bankhara Budolong near Kuruman.

358

Figure 2 : Towns visited and towns selected. The third phase involved the planning of the first survey. As most of the areas are internally homogeneous (in terms of the variable or characteristic being study) it was decided to first randomly select different townships or villages in the five study areas. Both a formal and an informal neighbourhood were selected in each location. In Botshabelo: Blocks K (informal) and W (formal) were selected Thaba Nchu: Bultfontein Extention 4 as well as all informal settlements Thaba Nchu (these were spread out all over the town) Harrismith The informal section of Tsiami and the rural area of Makgolokweng. Taung Part of the formal and informal area of Pampierstad as well the areas known as Tsang and Manokwane ruled by the same chief. Kuruman The formal area of Bakara Bodolong and the rural area of Mapoteng. In each of these the number of houses were counted and mapped (as far as maps were available because for some of the rural areas no maps or air photos were available). According to Stoker1 (1981:13) the sample size for each of the areas were calculated, in total nearly 1 800 households had to be visited. The fourth phase involved the collection of data from the different sample areas. Information pertaining to demographics, income, present housing conditions and services available, questions on preferences on building materials and earth construction were drawn up to be asked to all households. The questionnaires were done in Tswana, English and Afrikaans as the mayor languages of the area. Students speaking all three these languages were trained to fill in the questionnaires and the survey was then done under the supervision of the project leaders. For quality control 10% of all questionnaires were checked and the coding as well as data processing were done twice and the processed data results compared
359

(N20) x 20 where N is the stratum size

and checked with each questionnaire and adjusted when necessary. Both the collaborating partners were involved in this exercise. Phase five dealt with data analyses and interpretation. In this phase all the information gathered were analysed and evaluated in terms of its influence on the use of earth construction in the study areas. A workshop was held in November 2004 at Eindhoven discussing the results and the next stages of the project. Phase six was an intervention through the use of workshops on earth construction as well as a play. This comedy called Hofeta Mokhukhung a story of hope brought forward the message to the public at large that earth could be used to build houses of a good standard. It was written for the UFS by a drama student and performed by two drama students, Gali Malebo and Godfrey Manenye in 14 shows covering the study area. It was performed on stage, on the verandas of schools or under carports in either Sotho or Tswana depending on the community. The attendance was fantastic with 5 240 people seeing it during the 14 shows. A video in Tswana with English captions was made for further distribution Phase seven involved a follow up questionnaire in the study area with a smaller sample size to get an idea whether attitudes towards the use of earth construction have improved with the interventions (play and workshop). Again the results were analysed and evaluated in terms of the influence of the intervention on the attitudes towards earth construction in the study areas. Both collaborating parties took part in the evaluation of the data and its influence on sustainable local economic development, but the final results are not yet available. The eight phase [still working on this] is the reporting phase, where all qualitative and quantitative findings are compiled into a concept report. This was discussed during a workshop in Eindhoven (Nov 2006) and the necessary adjustments were made before the final report are to be submitted to SANPAD as part of a research papers published by the department of Urban and Regional Planning at the UOVS.

4. DISSEMINATION AND FINDINGS As far as we know no other study has tested attitudes on the acceptance of earth construction and later tried to change these attitudes through workshops and a community play with a final survey to see what the results were. The wide range of techniques used in the research from surveys, questionnaires, workshops and bringing in the performing arts as a means to convey the message might be a new kind of approach for the building sciences. Although the final results are still to be worked on for the two mentioned PhD-studies, researchers have been busy with the dissemination of some of the findings. Part of this was done throughout the project as papers were delivered at different conferences on the results as well as published in conference proceedings and in accredited journals. A DVD was made of the play and will be used to further the use of earth construction by local people. A handbook for ordinary people on the use of earth construction is in preparation and will be published shortly. 5. CONCLUSION In phase seven it is mentioned that the final results are not fully finalized yet but as a whole earth construction is looked on as a backward technology and is as such not accepted. The shift in attitude from the first survey to the second survey is still to be statistically evaluated, but looking at the results as a whole no meaningful shift took place. The second questionnaire was filled in two weeks after the workshops and the play but unfortunately a large proportion of the people surveyed did not attend them. However some of the small number of people who attended the play and the
360

workshop did change their attitudes. With the statistical processing factors influencing attitude will be correlated, factors such as: do people live in formal or informal housing; do they have a traditional or a modern attitude to life and community; income; household type; rural and urban location. The experience of the Centre for Earth Construction in other projects is that people are initially sceptic on the use of earth as a construction material but once they become involved with the modern ways of making compressed earth bricks and the construction of buildings with this material they totally change there attitudes (Smit:2008). Hopefully this information will help the Centre for Earth Construction to sell the idea of sustainable earth construction to the people of South Africa. REFERENCES Correa, C. 2000. Housing and Urbanisation. New York: Thomas and Hudson. Fathy, H. C. 1973. Architecture for the poor; an experiment in rural Egypt. Chicago: University of Chicago Press. Fransen, H. Cook MA. 1965. The old houses of the Cape; a survey of the existing buildings in the traditional style of architecture of the Dutch-settled regions of the Cape of Good Hope. Cape Town: Balkema. Frescura, F. 1985. Major developments in the rural indigenous architecture of Southern Africa of the post-difaqane period. Johannesburg: University of the Witwatersrand. Haas,M. & Schmid, P. 1990. Bio-logissch bouwen en wonen. Deventer. Uitgeverij Ankh-Hermes. Hamdi, N. & Goethert, R. 1997. Action Planning for Cities: A Guide to community practice. London: John Wilecy. Hamdi, N. 1985. Low-Income Housing: Changing Approaches in The Architectural Review, vol.CLXXVIII, no.1062, pp. 42-47 Houben.H & Guillard.H. 1994. Earth Construction. A comprehensive Guide. London. Intermediate Technology Publications. Oliver,P. 1987. Dwellings. Oxford, Phaidon Press. Pawley, M. 1975. Garbage Housing. Sussex: Architectural Press. Papaneck,, V. 1995. The Green Imperative. London. Thames and Hudson. Rapoport, A. 1969. House form and culture. London: Prentice Hall. Smit, P. 2008. Head of the Centre for Earth Construction, Department of Architecture, University of the Free State, Bloemfontein. Unstructured interview on 23 January 2008. Stevenson, F. in Broadbent. G. & Brebbia, C.A. (ed). 2006. Eco-Architecture. Southhampton. WIT Press. Stoker, D.J. 1981. Steekproefneming in Praktyk. Universiteit van Pretoria, Pretoria. TU/e & UFS (Technische Univerisity of Eindhoven & University of the Free State). 2002. A South African Building Renaissance: Acceptability of sustainable, high quality, earth constructed, public and private buildings to support local economic development. SANPAD Application.
361