The Future of Construction Education In South Africa

SOUTH AFRICAN COUNCIL

for the

QUANTITY SURVEYING PROFESSION

RESEARCH CONFERENCE 2009

THE FUTURE - WHAT NEXT? INDEX Paper 1

Clients and consultants' perspectives of the condition of the construction industry: Roadmap to the future. H.J. Marx

1-18

Paper 2

The future: What next for standard forms of contract in the South African construction industry? MJ Maritz

19-30

Paper 3

Creativity and strategy: The development of construction professions JJP Verster and BG Kotzé

Paper 4

The future of project management in the built environment: The need for industryspecific knowledge M Burger and JJP Verster

Paper 5

Information and communication technology education within South African built environment schools AOU Ozumba and WMW Shakantu Paper withdrawn by authors

Paper 6

Enhancing on-site communications by adaptation of multimedia systems: Looking into the future of construction. AOU Ozumba and WMW Shakantu

Paper 7

Investigating the causes and effects of contractor's non-compliance with the Health and Safety regulations in South Africa. D Thevan, M Maduna, K Moodley, M Paruk, AAE Othman

Paper 8

Towards improving the ethical behaviour of quantity surveyors within the South African construction industry. N Benting, K Mudliar, B Doubell, R Rocke and AAE Othman

Paper 9

The effectiveness of the CIDB Contractors Grading System from the perspective of South African project management firms. N Sirbadhoo and AAE Othman

Paper 10

Future alignment of the Housing Policy in South Africa with reference to low income housing. MS Ramabodu

Paper 11

Lessons learned for the future: In-situ upgrading and eradication of Informal Settlements in South Africa - Gauteng Province CO Aigbavboa and WD Thwala

Paper 12

The future of construction education in South Africa: Investigating the competency of construction management graduates at the University of KwaZulu-Natal. N Naidoo, T Pillay, M Osman, P Thevan and AAE Othman

Paper 13

An investigation into the possible use of innovative materials in future developments of low-cost housing in KwaZulu-Natal. N Harinarain, MS Amod and S Kandhai

Paper 14

An investigation into the drivers and barriers of innovation in the construction industry. N Harinarain, F Patel and G Dawood

Paper 15

Strategic management and the quantity surveying profession - Changed perceptions in the new South Africa. DJ Hoffman

Paper 16

Towards a future Green Built Environment in South Africa: Integrating the green building concept throughout the project life cycle. S Gabriel and AAE Othman

Paper 17

The evolution of the quantity surveying profession GJ Crafford and JM Slabber

Paper 18

Preliminaries as part of a future tender price index. JH Cruywagen ---o0o---

SACQSP2009-01

Clients’ and consultants’ perspectives of the condition of the construction industry: Roadmap to the future ABSTRACT Purpose of this paper Annual monitoring of the condition of the South African construction industry is vital to enable government and other role players to evaluate the impact of current interventions and to timely and pro-actively implement revised legislation, strategies and development programs to act as an updated roadmap for the future well-being and growth of the industry. This monitoring of the construction industry is done annually by the Construction Industry Development Board (cidb) in partnership with the Department of Quantity Surveying and Construction Management of the University of the Free State. Methodology A database with contact particulars of clients, contractors and consultants involved in 2198 projects completed in 2007 was compiled. Three separate survey forms were faxed or e-mailed to the contractors, clients and consultants of these projects. Their responses were captured in a Microsoft Access database. Research limitations The scope of this paper is limited to the results received from the clients and consultants. Where possible the results were compared with those obtained from previous similar surveys.

Findings It was found that even the private sector that is normally only interested in the best price, considered preference in 44% of their tenders awarded. There has been an increase in national department projects where financial offer was the only criteria used in the allocation of tenders. Contractor quality was discarded as being of any importance in many tenders allocated. Consultants were only paid on time on 45% of all projects completed. Value of paper This paper contributes to the understanding of the construction industry and gives a marked-up roadmap with pitfalls to avoid on the way forward.

2

Clients’ and consultants’ perspectives of the condition of the construction industry

Government can make use of the results obtained to timely and proactively implement revised legislation, strategies and development programs to ensure the well-being and growth of the industry. Keywords: construction industry indicators, cii, key performance indicators, kpi

3

1.

INTRODUCTION

The Construction Industry Development Board (cidb) Act (Republic of South Africa, 2000) was passed in 2000 to establish a statutory body aimed at driving an integrated construction industry development strategy. This body was required as the construction industry plays an indispensable role in the South African economy in providing the physical infrastructure which is fundamental to the country’s development. The construction industry operates in a uniquely project-specific and complex environment, combining different investors, clients, contractual arrangements and consulting professions. It impacts directly on communities and the public at large and its improved efficiency and effectiveness will enhance quality, productivity, health, safety, environmental outcomes and value for money to the South African society. In terms of this act the cidb ‘may develop target and performance indicators related to those best practice standards and guidelines and establish mechanisms to monitor their implementation and evaluate their impact’. Construction Industry Indicators (CIIs) have been developed by the Department of Public Works and the cidb with assistance from the CSIR (van Huyssteen, van Heerden, Perkins and Gyimah, n.d.: Online) to play a useful role in developing a sustainable industry and to be adopted as a tool for improving performance in the South African construction industry. The CIIs of the cidb rely heavily on international experience and particularly those indicators adopted in the United Kingdom. In the United Kingdom the first Key Performance Indicators (KPIs) were published in 1999 in response to the Rethinking Construction report by Egan (1998). These KPIs had three objectives, namely (Rethinking Standards in Construction, 2006: 3): • To provide companies and projects with a simple method of establishing a performance measurement system; • To provide organisations with a straightforward method of benchmarking their performance against others in the construction industry; and • To track long term trends in performance, and specifically, to demonstrate whether the construction industry was achieving the targets set out in Rethinking Construction. Cost, time and quality are the three basic and most important performance indicators in construction projects followed by others such as safety, functionality and satisfaction (Chan and Ada, 2004: 203-221). Based on the Egan report the Movement for Innovation and Construction Best Practice Programme (CBPP) was formed and is now recognised as a leading organisation involved in the production of KPIs within the industry (Beatham, Anumba and Thorpe, 2004: 93-117). The KPIs launched by the CBPP are: client satisfaction, product and service, profitability, productivity, defects, safety, predictability of time and cost, construction time and construction cost. These KPIs were benchmarked within the construction industry and have been very successful in introducing many companies to the subject of performance measurement (Beatham et al., 2004: 93-117).

4


The cidb CIIs measure the performance of the South African construction industry by measuring client satisfaction with the project milestone dates achieved, construction costs versus tender amount, contractors’ performance, consultants’ performance, and the quality of materials used. The contractors’ satisfaction is measured by their profitability, the quality of the contract documentation, the efficiency, openness and transparency of the contract adjudication process, the management of variation orders, payment delays and the performance of their materials suppliers. The procurement indicators measured include contractor performance issues utilised in the adjudication of tenders, the type of procurement procedure used, and the contracting strategy adopted. Compliance with the cidb’s Standard for Uniformity (Republic of South Africa, 2008: 45) intervention regarding allowable forms of contract is also measured. The cidb CIIs described above have been captured since 2003, and are currently being captured in partnership with the Department of Quantity Surveying and Construction Management of the University of the Free State. The 2007 survey results have already been published (cidb, 2007), (Marx 2008; 2009a). This paper is part of a series of annual papers presenting the results of this continuous survey project. It is a report on the results of the 2008 survey for projects completed in 2007. The results of the 2007 survey are also presented with the purpose to make comparisons where possible, but are not discussed in detail. 2.

METHODOLOGY

A database, with contact particulars of clients, contractors and consultants involved in 2198 projects completed in 2007, was compiled. Three separate survey forms were faxed or e-mailed to the contractors, clients and consultants of these projects. Their responses were captured in a Microsoft Access database. 3.

SCOPE

The CIIs of the cidb need to evolve from the lessons learned from previous surveys, and are therefore subject to change and refinement. This is the reason why it is not always possible to compare results with those obtained from previous surveys. The CIIs considered in this report are only the project related indicators. The cidb also measures health and safety and empowerment progress which are not discussed in this report. Other economic indicators such as production prices, and building plans passed are published elsewhere. From the 2198 completed projects in the database, 854 survey forms were received back from contractors, 438 from consultants and 280 from clients. This paper is limited to the results obtained from the client and consultant survey forms. The results obtained from the contractor survey forms were already published (Marx: 2009b).

5

4.

DISCUSSION OF THE CONSULTANTS’ SURVEY RESULTS

4.1 Project type and client category distribution of responses received Tables 1 and 2 give a summary of the survey forms completed by consultants for projects completed in 2006 and 2007 respectively. The number of survey forms completed is indicated for different client categories and project types. There has been a significant increase in the number of responses received for projects completed in 2007 compared to the previous survey. This is due to the fact that a much larger database of projects completed was compiled than in the previous year. The tables show that the majority of responses received were from civil works and non-residential building projects. For projects completed in 2007, civil and non-residential projects represent 47% and 21% of all responses respectively. The results in this report are therefore presented per project type and per client category to ensure that the results for other project types do not disappear in the average of all projects. Table 1 Consultant Survey responses received for different project types, client categories 2006 25%

1%

% of Total Survey Results

10

6

0

0

2

1

1

0

6%

49

8

4

2

29

2

3

1

32%

84

9

7

4

19

13

32

0

55%

6

1

0

1

2

0

2

0

4%

1

1

0

0

0

0

0

0

1%

3

0

0

1

1

1

0

0

2%

153

25

11

8

53

17

38

1

Total No.

Public Private Partnership

11%

Regional / District Council

35%

Metropolitan Council

5%

Provincial Department

7%

National Department

16%

Public Corporation e.g. ESKOM, ACSA

Residential Building Nonresidential Building Civil Works Mechanical Works Electrical Works Special Works

Total No.

Private sector

Project Type

Client Category 2006

6


13%

5%

16%

11%

17%

2%


31

27

2

-

-

1

-

1

7%

90

35

7

9

30

3

3

3

21%

207

58

28

7

22

36

54

2

47%

29

6

1

2

6

2

12

-

7%

66

27

18

1

9

4

6

1

15%

15

6

3

3

2

1

-

-

3%

438

159

59

22

39

47

75

7

Total No.





36%

National Department


Total No.


Project Type

Private sector

Table 2 Consultant Survey responses received for different project types, client categories 2007


For projects completed in 2007 most responses were received for private sector projects (36%) and regional district council projects (17%), followed by provincial department projects (16%). It is important to note that only one survey form was received for a public private partnership project in 2006 and the opinion, from a single consultant, can not be considered an average response. 4.2

Type of contract document used

Tables 3 and 4 show the distribution of the type of contract document used for each project type for projects completed in 2006 and 2007 respectively. Table 3 Type of contract document used for different project types 2006 Project Type Residential Building

% Contract Document Type usage for each Project Type -

56

Non-residential Building

10

2

69

-

19

100

Civil Works

64

-

1

11

24

100

Mechanical Works

33

-

33

17

17

100

Electrical Works

-

-

Special Works Contract Document Type

GCC 2004

% Projects with Contract Document significantly amended

17

NEC -

-

11

Total

33

100

-

-

100

100

100 JBCC 2000

FIDIC 1999

OTHER

100

23

33

16

7

Table 4 Type of contract document used for different project types 2007 Project Type Residential Building

% Contract Document Type usage for each Project Type 13 71 16


12

5

Civil Works

65

3

Mechanical Works

7

3

Electrical Works

28

32

Special Works Contract Document Type

27 GCC 2004

% Projects with Contract Document significantly amended

20

70

Total 100

-

13

100

3

6

23

100

21

31

38

100

16

3

21

100

7 NEC

13 JBCC 2000

13 FIDIC 1999

40 OTHER

100

12

21

24

24

Table 4 shows that the GCC 2004 was the most popular contract form for civil projects (65%) while the JBCC 2000 contract, which is a building contract, was the most widely used for residential (71%) and non residential building projects (70%). Both the FIDIC 1999 and other contract forms were popular for mechanical works contracts. The NEC contract form was most popular for electrical projects (32%), followed by GCC 2004 (28%). For special works projects, the GCC 2004 (27%) and other contract forms (40%) were most popular. Table 4 also indicates that the conditions of contract for 20% of all GCC 2004 contracts were significantly amended with issues such as the mitigation of risk and delegation of responsibility. Similarly, 12% of NEC, 21% of JBCC 2000 and 24% of FIDIC 1999 contracts were also significantly amended. 4.3 Contractor performance issues utilised in the adjudication of tenders Consultants were requested to indicate which contractor performance issues were taken into account during the tender adjudication process and the results are indicated for different client categories in Tables 5 and 6, for projects completed in 2006 and 2007 respectively. Table 5 Contractor performance issues used in the adjudication of tenders 2006

67

61

31

57

100


Metropolita n Council



46

National Department

Financial offer Financial offer and preference Financial offer, quality and preference

% of Projects in each Client Category using different Performance Issues 9 0 6 6 9 0 45 33 33 63 34 0


Performance Issues

Public Sector Client Category 2006

8


Table 6 Contractor performance issues used in the adjudication of tenders 2007 % of Projects in each Client Category using different Performance Issues 5

18

9

2

4

43

20

18

27

50

49

59

-

22

42

9

6

6

4

-

24

35

46

35

43

33

57





Private Sector

34

National Department

Financial offer Financial offer and preference Financial offer and quality Financial offer, quality and preference


Performance Issues


Table 6 shows that in 2007 even the private sector incorporated preference in 44% of all their projects completed in 2007. No longer are price and quality the only issues evaluated. However, tender allocation based on financial offer only was still most popular (34%). There has been a reduction in the number of metropolitan and regional / district council projects awarded on price only If the results for 2007 are compared with 2006. However, it is very strange that there has been an increase from 0% to 18% of national departments projects and from 6% to 9% of provincial departments projects where the financial offer was the only criteria considered as the incorporation of preference is promoted by government. Table 6 shows that there was still a large number of projects completed in 2007, where financial offer and preference were the only criteria used to allocate tenders. It is alarming that financial offer and preference were the only criteria considered in 50%, 49% and 59% of projects for provincial departments, metropolitan councils and regional/district councils respectively. In other words for these projects quality was considered as being of no importance. The transparency of the tender adjudication process could be verified if the survey in the future also determines whether the consultants’ tender recommendations were actually followed in the allocation of tenders. 4.4

Procurement procedures used to solicit tenders

Tables 7 and 8 show the distribution of procurement procedures used to solicit tenders for different client categories, for projects completed in 2006 and 2007 respectively.

9

Table 7 Procurement procedures used to solicit tenders 2006

2

6

-

-

73

83

90

88

94

-

Qualified

-

-

6

-

-

100

Quotation Two Envelope System Two Stage System

18

-

2

6

-

-

-

-

-

-

-

-

-

-

-

-

3

-




17


9

National Department

% of Projects in each Client Category using different Procurement Procedures 3 -


Procurement Procedure Negotiated Nominated / Selected Open

Public Sector Client Category 2006

Table 8 Procurement procedures used to solicit tenders 2007 % of Projects in each Client Category using different Procurement Procedures 33 7 14 2 2 29 -

57

30

82

79

87

97

6

39

4

4

-

3

-

Quotation Two Envelope System Two Stage System

11

10

-

9

2

-

14

1

-

-

-

2

-

-

-

-

-

-

2

-

-

Private Sector

21

Qualified


5


6


-


14

National Department

28


Procurement Procedure Negotiated Nominated / Selected Open


Table 8, for projects completed in 2007, shows that open tenders were the most popular tender procurement procedure followed for all client categories except for public corporations and the public sector. The quotation procedure used by client bodies is likely only utilised for very small tenders. In the private sector, the negotiated (33%) and nominated/selected (28%) procedures were most popular. Public corporations favoured pre-qualification on 39% of their projects. The two

10


envelope and two stage procurement systems were not popular for any client category. 4.5

Contracting strategy adopted

The distribution of contracting strategies adopted by different client categories is shown in Tables 9 and 10. Table 9 Contracting strategies adopted for different client categories 2006

-

9

12

29

13

3

-

64

73

63

58

73

76

-

4

-

-

2

7

8

-

4

9

-

3

-

3

100

4

-

12

4

-

2

-

Public Corporation

National Department



Regional/ District Council


2006

% Projects with Contracting Strategy for different Client Categories 24 9 13 4 7 8 -

Private Sector

Contracting Strategy Design and Build Develop and Construct Design by Employer Management Contract Construction Management PPP

Client Category Table 10 Contracting strategies adopted for different client categories 2007

7

34

-

3

2

11

-

73

54

64

76

87

81

-

3

3

9

4

-

3

-

3

-

4

9

7

3

-

-

-

9

2

-

1

100

Public Corporation

National Department





2007

% Projects with Contracting Strategy for different Client Categories 14 9 14 6 4 1 -

Private Sector

Contracting Strategy Design and Build Develop and Construct Design by Employer Management Contract Construction Management PPP

Client Category

In 2007 the “design by employer strategy” was most popular for all client categories with the PPP strategy only applicable to public private partnerships. Except for the “design by employer strategy”, public corporations also made use of the “develop and construct strategy” on 34% of their projects. It is recommended that the future surveys should also

11

determine whether the design in the design by employer strategy was outsourced to consultants or not. 4.6

Payment delays

The average number of days delays between submission of professional fee accounts and receipt of payment is shown in Tables 11 and 12 for projects completed in 2006 and 2007 respectively. The consultants’ fees were paid within 30 days for only 51% to 45% of all projects completed in 2006 and 2007 respectively. In 2007 the provincial and national departments were the slowest payers of fees with fees only paid after more than 60 days on 30% and 22% of all their projects respectively. This is followed by the regional/district councils and public private partnership client categories where the consultants were only paid after more than 60 days on 14% of all their projects. The tendency for late payment of consultants has grown if the 2007 results (49%) are compared with the 2006 results (55%). Table 11 Payment delay of consultant’s fees for different client categories 2006

10 60 30 -

29 14 43 14 -

4 42 40 10 2 2

73 27 -

14 35 43 3 5

100 -

National Department





14 27 50 5 4

Public Corporation

2006

% of Projects with Payment Delay per Client Category

Private Sector

Avg. Days Delay ≤ 14 14 to 30 30+ to 60 60+ to 90 90+ to 120 120+

% of all Projects 9 42 40 5 1 3

Table 12 Payment delay of consultant’s fees for different client categories 2007

9 38 45 1 2 5

10 43 45 2 -

14 32 32 14 4 4

9 23 38 10 14 6

7 44 42 2 5 -

7 36 43 9 5

14 29 43 14

Public Corporation

National Department





2007

% of Projects with Payment Delay per Client Category

Private Sector

Avg. Days Delay ≤ 14 14 to 30 30+ to 60 60+ to 90 90+ to 120 120+

% of all Projects 9 36 42 5 4 4

12

5.


DISCUSSION OF THE CLIENTS’ SURVEY RESULTS

5.1 Project type and client category distribution of responses received Tables 13 and 14 provide a summary of the survey forms completed by clients for projects completed in 2006 and 2007 respectively. The number of survey forms completed is indicated for different client categories and project types. There has been an increase in the number of responses received since the previous survey and particularly for the residential, mechanical, electrical and special works project types. This is due to the fact that a much larger database of projects completed was compiled than in the previous year as mentioned hereinbefore. The tables show that the majority of responses were for civil works and non-residential building projects. For projects completed in 2007, the civil and non-residential projects represent 39% and 20% of all responses respectively. The results in this report are therefore presented per project type and per client category to ensure that the results for other project types do not disappear in the average of all projects.

11%

20%

4%

38%

7%

18%

2%


4

0

1

0

0

0

3

0

4%

34

1

2

2

25

0

3

1

30%

57

4

16

2

13

8

14

0

50%

10

6

2

0

1

0

0

1

9%

2

0

1

1

0

0

0

0

2%

6

1

1

0

4

0

0

0

5%

113

12

23

5

43

8

20

2

Total No.

National Department






Total No.


Project Type

Private sector

Table 13 Survey responses received for different project types and client categories 2006


13

Table 14 Survey responses received for different project types and client categories 2007 7%

1%


16

11

0

0

0

5

0

0

6%

Residential Building Non-residential Building Civil Works

55

29

11

3

8

1

2

1

20%

110

35

24

6

8

22

13

2

39%

Mechanical Works

21

8

3

0

5

2

3

0

7%

Electrical Works

47

5

24

9

2

6

1

0

17%

Special Works

31

11

11

2

5

2

0

0

11%

280

99

73

20

28

38

19

3

Total No.


14%


10%


7%


26%

National Department

35%


Total No.

Private sector

Project Type


5.2

Construction commencement milestone dates

Tables 15 and 16 show the actual project commencement and completion times achieved for projects completed in 2006 and 2007 respectively. The results of all projects that started on time picked up from 65% to 95% if the 2007 results are compared with the 2006 results. It is not known whether the reason for a late start was because of contractors who could not produce their guarantees on time, or because of clients who did not have the sites ready to hand over to the contractors. Table 15 shows that only 34% of all projects completed in 2006 were completed on time with 0% residential building projects and only 25% of civil projects completed on time. It is not known if the reason for this is lack of contractor capacity, managerial skills, finances, know-how or perhaps unrealistic construction periods specified by consultants or clients. However, this figure picked up again to 85% of all projects that were finished on time in 2007. Table 15 Project start and completion milestone dates 2006 Project Type

Start on time %

Finish on time %

Residential Building Non-residential Building

100 51

0 42

Civil Works Mechanical Works

71 50

25 50

Special Works

100

67

Overall 2006

65

34

Table 16 shows that the worst performing project type in 2007 was residential buildings with 75% of all projects that were finished on time.

14


Table 16 Project start and completion milestone dates 2007

5.3

Project Type

Start on time %

Residential Building

100

Finish on time % 75

Non-residential Building Civil Works Mechanical Works Electrical Works Special Works Overall 2007

96 95 95 96 94 95

80 86 91 85 90 85

Construction cost overspending

Tables 17 and 18 show the construction cost overspending for projects completed in 2006 and 2007 respectively. The percentage overspending (+) was calculated as follows: The sum of the tender values of all projects of a specific project type, and for a specific client category, was calculated. In a similar way the sum of the practical completion values of this group of projects was calculated. The total overspending of the group was expressed as a percentage of the total tender value of the particular group of projects. Table 18 shows that for projects completed in 2007 the national departments overspent 16% on non-residential projects, 41,9% on civil works, and 22,6% on electrical works projects. This overspending is much higher than in the previous year. The provincial departments also experienced large overspending on non-residential building projects (23,6%) and mechanical works projects (38,9%). Table 17 Project construction cost overspending 2006 % Overspending in terms of tender value of total group 1,8

-4,1

-

-

-

14,1

-

Non-residential Building Civil Works Mechanical Works Electrical Works Special Works

0,2 31,9 -2,5 1,0

4,3 7,0 5,6 -12,1

-1,2 0 2,4

12,2 11,2 2,9 -2,1

-1,1 -

21,2 -2,3 -

0,0 -

2006

Private sector


National Department





Project Type Residential Building

Table 18 further shows that significant overspending in the private sector occurs mainly for civil works projects (17,7%). For public corporations it occurs mainly for mechanical (14,8%) and electrical work projects (17,7%).

15 Table 18 Project construction cost overspending 2007 % Overspending in terms of tender value of total group

Project Type

-


5,1

3,4

16

23,6

0

0

0

Civil Works

17,7

4,0

41,9

-1,4

5,4

-0,5

1,7

Mechanical Works

5,2

14,8

-

38,9

-9,4

6,7

-

Electrical Works

-0,6

17,7

22,6

4,3

-8,9

0

-

Special Works

-0,8

0,6

5,6

12,4

-4,0

-

-

2007


-


0


-


-

National Department

-


7,1

Private sector


There are many factors that may contribute to this overspending such as bad planning, incorrect initial measurement of work, unforeseen conditions on site, and a change in the scope of the works. 5.4

Customer satisfaction

Tables 19 and 20 show the average level of client satisfaction for different project types for projects completed in 2006 and 2007 respectively. These are the performance levels of the consultants and contractors and the quality of materials used. Table 19 shows that for projects completed in 2006 the civil works projects received the lowest score throughout, ranging from 73% to 79% for all performance levels monitored.

92

Clients' % Level of Satisfaction with 80 80 80 80


80

83

82

83

83

84

83

Civil Works Mechanical Works Electrical Works

73 87 80

75 90 80

73 90 -

73 90 80

77 90 -

76 80 -

79 90 80

Special Works

89

89

90

88

83

80

85

2006

Overall performance of Contractor

Ability of Main Contractor to finish on time

-

Overall quality of Materials used

Quality of Completed Work Main Contractor's Resolution of Defective Work Work Defect free at Practical Completion

Project Type Residential Building

Overall performance of Consultants

Table 19 Customer satisfaction 2006

Table 20 shows that for projects completed in 2007 the non-residential building projects received the lowest score throughout, ranging from 73% to 81%. It further shows that contractors on special work projects performed the best. The average satisfaction levels expressed by the clients are high.

16


Table 20 Customer satisfaction 2007 Project Type

Clients'% Level of Satisfaction with 73

79

79

71

81

75

73

76

74

69

81

84

81

79

82

80

80

84

Mechanical Works

86

83

84

84

81

80

86

Electrical Works

80

81

81

84

81

82

86

Special Works

82

85

86

87

86

83

88

2007

6.

Overall quality of Materials used

78

Civil Works

Quality of Completed Work Main Contractor's Resolution of Defective Work Work Defect free at Practical Completion


Ability of Main Contractor to finish on time

77

Overall performance of Contractor

83

Overall performance of Consultants


SUMMARY AND CONCLUSIONS

The cidb CIIs measure the performance of the South African construction industry by measuring client satisfaction with the project milestone dates achieved, construction costs versus budget, contractors’ performance, consultants’ performance, and the quality of materials used. The contractors’ satisfaction is measured by their profitability, the quality of the contract documentation, the efficiency, openness and transparency of the contract adjudication process, the management of variation orders, payment delays, and the performance of their materials suppliers. The procurement indicators measured include contractor performance issues, the type of procurement procedure used, and the contracting strategy adopted. Compliance with the cidb’s Standard for Uniformity intervention regarding allowable forms of contract is also measured. The CIIs focus on critical aspects of project outputs or outcomes. The systematic use of CIIs is essential, as the value of CIIs is almost completely derived from their consistent use over a number of projects and years. Data collection must be as simple as possible and a large sample size is required to reduce the impact of project specific variables. Three separate survey forms were faxed or e-mailed to the contractors, clients and consultants of projects completed in 2007. Their responses were captured in a Microsoft Access database. The responses of the consultants and clients are discussed in this paper. The main findings of the 2008 survey for projects completed in 2007 are as follows: 1) Although tender allocation based on financial offer only was still most popular in the private sector, preference was considered in 44% of all the tenders awarded. 2) From 2006 to 2007 there had been an increase from 0% to 18% of all national department projects where the financial offer was the only selection criteria used in the allocation of tenders.

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3) It is of great concern that contractor quality was discarded as being of any importance in 50%, 49% and 59% of tenders allocated for provincial departments, metropolitan councils and regional/district councils respectively. 4) Only 45% of consultants were paid on time within 30 days. 5) There had been an increase in the percentage of projects completed on time if the 2006 results (34%) are compared with the projects completed in 2007 (85%). 6) Clients were, on average and generally speaking, satisfied with the overall performances of their consultants and contractors. Their performances on non-residential building projects received the lowest scores throughout. 7.

REFERENCES

Beatham, S, Anumba, C. and Thorpe, T. 2004. KPIs: a critical appraisal of their use in construction. Benchmarking: An International Journal, 11(1), pp. 93-117. Chan, A.P.C. and Ada, P.L. 2004. Key performance indicators for measuring construction success. Benchmarking: An International Journal, 11(2), pp. 203-221. Egan, J. 1998. ‘Rethinking Construction: The Report of the Construction Task Force”. Her London: Majesty’s Stationery Ofc. Marx, H.J. 2008. Contractors' perspective of the condition of the construction industry as captured by the CIDB survey of construction industry indicators 2007. In: Conference proceedings of QS + 20/20 Vision Beyond 2010. Quantity Surveying Conference, Midrand, South Africa 10 October, CD ROM version. Marx, H.J. 2009a. Consultants’ and clients’ perspectives on the construction industry as captured by the CIDB survey of construction industry indicators 2007. In: Conference proceedings of The Fourth Built Environment Conference. Association of Schools of Construction of Southern Africa, Livingstone, Zambia, 17-19 May 2009, CD ROM version. Marx, H.J. 2009b. Contractors' perspectives of the condition of the construction industry as captured by the CIDB survey of construction industry indicators 2008. In: Conference proceedings of RICS COBRA Research Conference, University of Cape Town, South Africa 10 – 11 September 2009, CD ROM version. Republic of South Africa. 2008. Board notice 9 of 2008, Government gazette, 30692, February 1. Pretoria: Government Printer. Republic of South Africa. 2000. The Construction Industry Development Board act, 38 of 2000 revised standard for uniformity in construction procurement. South Africa: Government Printer. Rethinking Standards in Construction: can standards support industry performance improvement? 2006. Report of a strategic workshop to initiate a new approach to UK standardisation, May, pp.1-16. The Construction Industry Development Board (CIDB). 2007. The cidb Construction Industry Indicators Summary Results. [online]. South Africa,

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Pretoria. Available from: [Accessed: 25 July 2008]. van Huyssteen, S., van Heerden, L., Perkins, P. and Gyimah, O. n.d. The identification and measurement of performance indicators for the South African construction industry. [online]. Available from: [Accessed: 25 July 2008].

SACQSP2009-2

The future: What next for standard forms of contract in the South African construction industry? Maritz, M.J. 1 1

Department of Construction Economics, University of Pretoria, [email protected],

Tel No: +27 12 420 4972

ABSTRACT Purpose of this paper The new, sixth edition of the JBCC suite is soon to be introduced into the South African building industry. This new edition will contain a number of significant changes, more specifically to those provisions which to date have prevented greater parity between private and state use of the suite. This paper highlights the major changes which are to be incorporated and provides background information on why these changes have been necessary. The paper, in addition, provides statistics on the levels of usage and knowledge of the various standard form agreements currently in use in the South African construction industry. Design/methodology/approach Data was obtained from sources that are considered to be representative of the South African construction industry. A questionnaire was developed for capturing quantitative data from responses that were submitted by industry role-players (consultants, contractors, project managers, etc) Findings The findings of the research clearly indicated that the JBCC Series 2000 is the most favoured standard form of contract on building projects in South Africa and that the respondents generally agreed that the JBCC enjoys specific advantages over the other permissible standard forms of contract in use. Some respondents, however, raised certain concerns; for instance that the effectiveness of JBCC is prejudiced by regular revisions to the suite since the publication of the first edition in 1991. Value of the paper The study which the paper reports on, is regarded as important because the introduction of the new, sixth edition of the JBCC suite into the South African building industry may be regarded by some as just another attempt by the JBCC to correct mistakes of, or to improve on, previous editions. Few individuals appear to be truly knowledgeable on the subject, and lack of understanding may lead to discontent or even confusion. Key words: industry.

JBCC, GCC, NEC, FIDIC, standard form contracts, construction

20

The future: What next for standard forms of contract?

HISTORY OF THE DEVELOPMENT OF STANDARD FORMS OF CONTRACT WITH PARTICULAR EMPHASIS ON THE JBCC SERIES 2000

Introduction Although there is proof of the fact that a standard form of contract was introduced in England in the 1870s by agreement between the Royal Institute of British Architects (RIBA), the Builder’s Society and the Central Association of the Master Builders of London, the first form of contract, comprising articles of agreement and conditions of contract to which the then Building Industries Federation South Africa (BIFSA) had access, was that published in 1909 under the sanction of RIBA and the National Federation of Building Trade Employers. After using the 1909 form unaltered for some time in Britain, consideration was given to amend the document, but the document that was published in 1928 under the heading “Agreement and Schedule of Conditions of Building Contract” failed to gain approval of the general membership of RIBA and, as such, it was never used in practice. The result was that in Britain the revision of the 1909 RIBA form was tackled de novo, while on the South African scene discussions were deferred until such time as the approved revised RIBA edition became available. The first published annotation appeared in Britain in 1931 and substantially revised and updated the 1909 RIBA form. Subsequent annotations appeared regularly thereafter. The 1931 RIBA form was found to be acceptable by the Institute of South African Architects, the Chapter of South African Quantity Surveyors and BIFSA, and according to the annual report published in 1932 by BIFSA, it was adopted by all the parties concerned, subject to the introduction of such amendments as were necessary to satisfy the requirements of differing local conditions. Thus this form became the basis of the first standard form of contract in South Africa – the 1932 edition – and was entitled “Agreement and Schedule of Conditions of Building Contract”. This cumbersome name soon acquired a nickname. As the “with quantities” version was printed on white paper and the “without quantities” on blue, the two versions became known as the “white form” and the “blue form” respectively (Lipschitz & Malherbe, 1979; Finsen, 2005). This agreement was amended from time to time as the South African building industry developed and became more sophisticated. A permanent review committee was appointed for this purpose, known as the Joint Study Committee, constituted of representatives of the Institute of Architects, the Chapter of Quantity Surveyors and BIFSA. The last amendment of this agreement was published in 1981. Shortly afterwards, however, the Joint Study Committee, rent asunder by internal dissent, was dissolved (Finsen, 2005). Standard for uniformity in construction procurement Uniformity in procurement documentation can be achieved provided there is a complete separation in the component documents that make up a procurement document. (i.e. the conditions of tender, the conditions of contract, the specifications and methods of measurement and payment). Should this be done, different conditions of contract, or for that matter, payment systems can be used without affecting the remaining component documents. The Green Paper on Public Sector Procurement Reform in South Africa (Ministries of Finance and Public Works, 1997), proposed this approach. The Department of Public Works’ National Working Group and the Interministerial Task


21

Team for Construction Industry Development endorsed this approach in 1999 and 2000, respectively. This approach to procurement documents is embodied in SANS 10403, the Formatting and Compiling of Construction Procurement Documents, and the Construction Industry Development Board (CIDB)’s Standard for Uniformity (2004), which is based on the provisions of SANS 10403. At that stage the question arose as to which standard forms of contract respond best to this approach to uniformity in procurement documents. After indepth consultation with industry, it was proposed that the following suites of documents should be used with minimal project specific amendments to procure engineering and construction works: (i) (ii) (iii) (iv)

JBCC Series 2000 General Conditions of Contract for Works of Civil Engineering Construction New Engineering Contract Fédération Internationale des Ingénieurs - Conceils (FIDIC)

Compliance with this standard from that date was made mandatory for organs of state who solicit tenders in the construction industry. JBCC Series 2000 In 1984 the Joint Building Contracts Committee, or JBCC for short, was established. JBCC launched its standard building contract documentation in the marketplace in 1991. This first edition used some of the principles developed by the Major Contractor’s Committee (MCC), which was also established in 1984 and which comprised of a number of the larger developers and building contractors during that period. The purpose of the MCC was to formulate a set of conditions of contract for use on large contracts (very prevalent at that time), which had to be acceptable to both property owners and building contractors. The first edition of the MCC contract was dated 1986 and the next edition appeared in 1988. Although the MCC contract never achieved formal recognition in the industry it played an important role in the development of the JBCC documentation as JBCC continued with and built upon the work the MCC had documented up to that point in time. From the outset, JBCC recognised that an enormous advantage could be gained by employers, contractors and professionals alike if the JBCC documentation could be tailored in such a way that it met the needs of both the private and public sectors. A joint committee was set up with the Department of Public Works (DPW) and over a number of months the apparent differences of requirements were reduced to manageable proportions that could be accommodated without impairing readability significantly. An intensive re-examination and re-drafting of the documents followed by the technical and review committees of JBCC and in 1998 the new documents, designated the JBCC Series 2000, were published (the second edition). These replaced all the documents published in 1991. An international version was published in July 2000 that omitted all references to South African-specific conditions, e.g. the acronyms “VAT” and “SASRIA” were replaced by the more generic terms “Tax” and “special insurance” respectively in all the documents. In order to further broaden the scope of JBCC, a minor works document was published in 1999. JBCC published the third edition in January 2003, primarily to update the Series 2000 documents. There were, however, some significant changes; e.g. in cases where the employer in the agreement is an organ of the state, specific requirements that differ from those required by the private sector, were set out in a

22


single clause for ease of reference (Clause 13). This clause made provision for the substitution by these clauses in the document when so required. Other significant changes were: •

• • •

New definitions for: – Advance Payment Guarantee – Direct Contractor – Mediator – State; The introduction of advance payments; A clear explanation of employers’ obligations; and The redrafting of cancellation clauses.

JBCC published the fourth edition in March 2004. The primary purpose of this revised edition, which followed so soon after the publication of the third edition, was to satisfy the requirements of the office of the State Attorney with regards to Clause 13, which were regarded to be inadequate. The content of this clause was substantially expanded to further accommodate aspects where the state differs in its approach from the private sector. To distinguish this edition from its predecessors, it featured the wording “including State provisions” on the front cover to make it clear that it had been accepted by the DPW. Another significant change in the fourth edition was the introduction of “adjudication” as an alternative dispute resolution (ADR) process to bring it in line with other standard agreements that had adopted the process. A further edition (edition 4.1) was published in March 2005, which, inter alia, included amendments to: • •

Clause 13 (State Provisions), which was once again expanded and moved to the back of the document as clause 41; and Clause 40 (Dispute Provisions), which was substantially redrafted to allow for adjudication to be the default dispute resolution process in private contracts.

JBCC published the fifth (current) edition in August 2007 featuring some major modifications to previous editions, with the removal of the substitution provisions applicable to the state contained in the various documents certainly representing the most significant of these modifications. From that date, the state would provide its own addenda for state contracts. Other modifications included: • • • • •

• •

The incorporation of the relevant Preliminaries Items into the various agreements, including provision for programming; The discontinuation of the Preliminaries as a separate JBCC document; Change in style of cross referencing; The complete redrafting of the insurance clauses, more specifically Clauses 10 and 11; The introduction of the contractor’s right to suspension of the works (Clauses 12.5 and 31.15). The contractor could henceforth suspend the works where the employer had not effected insurances, the principal agent had not certified payment or the employer had failed to make payment; The omission of the Schedules of Variables at the end of the various agreements. All variable items were to be included in the Contract Data Addenda, which would serve as supplementary documents to the agreements; A reduction in the percentages applicable to the security provisions to bring it in line with those of the state;


• •

23

Adjudication would no longer be the default dispute resolution procedure; the parties were to decide at the time of the dispute arising on the appropriate dispute resolution process, be it either adjudication or arbitration; and The inclusion of changes that were incurred as result of JBCC working closely with CIDB to bring its documentation into line with the requirements of CIDB for standardisation.

JBCC aims to publish a revised (sixth) edition early in 2010. Most of the proposed modifications in this edition will be editorial of nature and are aimed at abbreviating the wording of the current fifth edition, such as adding “in a timely manner” after “… to carry out their reciprocal obligations.” in Clause 2.2 of the Principal Building Agreement (PBA). This modification allows for the deletion of the words “timely” and “timeously” in a number of clauses in the PBA. Other main modifications include: •

•

• •

•

The rewording of definitions for: – Working days – Contract data – CPAP – Practical completion – Programme; The moving of certain clauses to more appropriate positions in the document. For example Clause 1.7 that deals with the jurisdiction of courts becomes Clause 31.7 under Interim Payment, and Clause 3.1 that deals with the provision of a payment guarantee by the employer becomes Clause 14.1 under Security; Revised percentage adjustments in the case of security as a fixed construction guarantee; Reduction of default periods in a number of instances, e.g. in Clause 32.6 the contractor shall now notify the principal agent within 10 (currently 40) working days of becoming aware of a possible expense and loss circumstance, and the principal agent must within 10 (currently 20) working days of receipt of details of the expense and loss claim make an assessment of the compensation; and The complete redrafting of the EC and CE data documents.

At the time of drafting this paper two important matters were still unresolved. Firstly, the insurance clauses (Clauses 8 – 12) had not been dealt with as meetings with insurance companies still had to be arranged, and, secondly, to bring about more clarity of actions to be taken when the principal agent continues to add additional work after practical completion (see Clauses 24.5 – 6). The Government is also still in the process of finalising their State Addendum and issuing thereof is only expected to follow after the new edition of JBCC has been put into service. General Conditions of Contract (GCC) for Works of Civil Engineering Construction Until recently, the General Conditions of Contract, i.e. GCC 1990 (sixth edition) or “Blue Book”, formed the basis of most works of a civil engineering nature being constructed in South Africa. It was modified by the Committee of Land Transport Officials (COLTO) and published by the South African Institution of Civil Engineers (SAICE) as the General Conditions of Contract for Road and Bridge Works for State Road Authorities, and was generally known as the COLTO 1998 contract.

24


GCC 1990, itself, was originally based on the British Engineering Conditions, but was, over time, adapted to suit local requirements. GCC 1990 was completely revised, whilst retaining the language, style and ethos of the previous editions of GCC, through a consultative process with CIDB, and issued as the new (and current) GCC 2004, which replaced both the GCC 1990 and COLTO 1998 contracts. It provided an opportunity to adapt the GCC (through information in the Contract Data) for use by the state as opposed to using COLTO. In contrast to some of the other permissible forms of contract, GCC complies fully with all CIDB requirements for a standard form of contract. GCC 2004, however, has not received favourable acceptance in all quarters (more particularly those who previously used the COLTO contract), and the next update has, therefore, become imminent. The drafting of the new edition is being handled by a review committee seconded by the Project Management Division of SAICE and has reached an advantaged stage of completion. In the guide to the draft revision, Claassens (2009), who is championing the drafting of the new edition, states that one of the main differences between GCC 2004 and the draft new GCC is that the latter has been modified to cover both civil and building contracts, including mechanical and electrical work. Other modifications include matters such as Construction Regulations on Health and Safety, environmental controls, greater emphasis on programming of the works, updating dispute resolution with the latest thinking, and various other amendments that have been proposed since the publication of the 2004 edition. According to Burger (2009), the current status of the proposed new edition, to be re-named GCC 2009, is that acceptance has been received from bodies such as the Consulting Engineers of South Africa (CESA), the South African Federation of Civil Engineering Contractors (SAFCEC), the Institute of Municipal Engineering of Southern Africa (IMESA) and the Specialist Engineering Contractors Committee (SECC), but that the review committee still required final acceptance by CIDB. CIDB acceptance of the revised document is extremely important as government departments, who are the major users of GCC, need approval from the CIDB before they may implement the new document. Burger (2009) states that the introduction of a “Dispute Board” for dispute resolution is one of the remaining problem areas and that they are currently in discussion with the CIDB and trust that agreement on this and other matters will be reached in the not to distant future. New Engineering Contract (NEC) A consultative version of the New Engineering Contract (NEC) was published in 1991, which, after use and feedback, resulted in the issue of the first edition of NEC in 1993. In 1994 Sir Michael Latham’s report, Constructing the Team, was issued in the UK. This report, inter alia, recommended that NEC should be adopted by clients in both private and public sectors and suggested that it should become a national standard contract to be used across the whole spectrum of engineering and construction work generally in the UK. ICE published the second edition of NEC in 1995, which incorporated refinements and changes prompted by comments from the industry and feedback from projects which had been executed under the first edition. The NEC family of contracts is currently in its third edition (NEC3), which was published in July 2005. The family is made up of 23 documents: Contracts, their associated guidelines and flow charts. The contracts can be used to procure any type of project, large and small, across the areas of Works, Service and Supply in the UK and elsewhere in the world.


25

FIDIC FIDIC is the French acronym for the International Federation of Consulting Engineers, founded in 1913 by three national associations of consulting engineers in Europe. Over many years the FIDIC standard forms of contract were used on international projects. These standard forms of contract were: • • •

Conditions of Contract for Works of Civil Engineering Construction, known as the “red book” Conditions of Contract for Electrical and Mechanical Works including Erection on Site, known as the “yellow book” Conditions of Contract for Design-Build and Turnkey, known as the “orange book”.

During the updating of the red and yellow books, FIDIC noted that certain projects had fallen outside the scope of the existing books. Consequently, FIDIC expanded the range and published a suite of four new standard forms of contract (1999), which are suitable for the majority of construction and plant installation projects world-wide. The new suite of documents comprises: • • • •

Conditions of Contract for Construction for Building and Engineering Works designed by the Employer, First edition (1999) Conditions of Contract for Plant and Design-Build for Electrical and Mechanical Plant for Building and Engineering Works designed by the Contractor, First edition (1999) Conditions of Contract for EPC/Turnkey Projects, First edition (1999) Short Form of Contract, First edition (1999).

FIDIC not only publishes the forms of contract mentioned above, but also publishes a number of supplementary documents for general and specific use. These documents include the various agreements such as the Client-Consultant Agreement, the Joint Venture Agreement and Sub-consultancy Agreements as well as Advice, Procedures and Information documents covering a wide range of aspects. RESEARCH METHODOLOGY The primary objective of this paper was to establish the level of use and knowledge of users of standard forms of contract in the South African construction industry and to determine whether users agree or disagree that JBCC has certain advantages when compared with other CIDB-recommended agreements. Furthermore, the objective was to determine whether clients and consultants are sufficiently knowledgeable to make informed decisions on which contract would be the most appropriate for the project in question. Research population and response rates The research population consisted of consultants and contractors operating in the building and engineering industries in South Africa. The research population was restricted to firms who are based in the Gauteng region. E-mail addresses of architectural, quantity surveying, project management and contracting firms were

26


obtained from the Pretoria Institute of Architects, the Gauteng Chapter of Quantity Surveyors, the South African Council for Project and Construction Management Professions and the Gauteng Master Builders Association respectively. The covering letter specifically requested that the questionnaire should be completed by a senior director or partner who has a legal and/or tendering background to ensure that the questions would be correctly interpreted and answered. Table 2.1 illustrates the composition and the response rates. Table 2.1: Sample population and response rates

MAIN LINE OF BUSINESS Architecture Quantity surveying Project management Engineering & Contracting Total

SAMPLE POPULATION

RESPONSE RATE

Number

Percentage

Number

Percentage

60 157 65 51 333

18% 47% 20% 15% 100%

5 28 24 33 90

8% 18% 37% 65% 27%

Of the total number of 394 e-mails sent out, 61 failed to deliver. Of the 333 e-mails read, 90 were returned, representing an overall response rate of 27%. This is regarded as a relatively high response rate for e-mail submissions and therefore the findings should provide a reasonably true and accurate reflection on the level of use and knowledge of standard forms of contract in the South African construction industry. Research method The descriptive survey method was used for data generation and analysis (Leedy & Omrod, 2005). Furthermore, the quantitative research method, which relies on measurement of variables to compare and analyse the data, was applied. A short questionnaire that could be electronically completed in less than five minutes was developed relating to the research problems and the required data was gathered via e-mail submissions. The survey research focused on acquiring information from consultants and contractors regarding their opinions on and previous experiences of the application and choice of standard forms of contract in the South African construction industry. Leedy and Omrod (2005: 183), define survey research as follows: • • •

The researcher poses a series of questions to willing participants; summarises 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.

Analysis of the data The perceptions of the respondents were measured on the basis of a five-point Likert-type scale. The five points were scaled as: 1 = Very low, never or highly disagree; 2 = low, rarely or disagree; 3 = average, regularly or undecided; 4 = high or agree, and 5 = very high or highly agree.


27

The data was analysed firstly by exploring in what way the sectors in which the research participants operate influenced their responses. It was evident from the responses received that respondents who operate in the engineering sector (mainly civil contractors and engineers), and those who were categorised under “other” (mainly mining related), had little or no knowledge of JBCC, as was confirmed by the following comments: • • • • • •

•

In our sector FIDIC and NEC are the most commonly used standard forms of contract. Both are understood and suit our Client's needs. We have never used JBCC 2000 in our company. I have never worked with JBCC 2000 suite at all. Not used at all in road construction. I am unable to respond to 2.3 as I have no knowledge of the JBCC 2000 suite. We only deal with the contracts other than JBCC 2000 except when it is prescribed to us in circumstances where the architectural component is subservient to the greater engineering whole and not by choice. When dealing with large infrastructure projects the contracting party may be international or include an international consortium partner. Similarly lenders may be international banks/institutions. In these cases FIDIC (and to a lesser extent NEC3) is more suitable than JBCC as it is in common use internationally. JBCC is well suited to building jobs but GCC/FIDIC/NEC is better for engineering projects, EPC etc.

These comments are understandable as JBCC is designed for use on contracts involving building work only and is therefore not suitable for use in the engineering and mining sectors. Accordingly, the responses of those categorised in the engineering and “other” sectors were not considered when analysing and interpreting the results in Tables 2.2, 2.3 and 2.4. Secondly, the data was examined through the compilation of descriptive and inferential statistics, which were analysed using MS Excel. In terms of descriptive statistics the variables, namely levels of knowledge and use of standard forms of contract, rating of scale of agreement against assumed advantages of the JBCC, and rating of clients’ and consultants’ knowledge to select the correct form of contract were examined through a mean = (point total/sample size) and relative index (RI) = mean - 1/k - 1. The findings in terms of the descriptive statistics are presented in the tables hereinafter, which are followed by interpretations of the findings.

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STANDARD FORMS OF CONTRACT IN THE SOUTH AFRICAN BUILDING INDUSTRY: APPLICATION AND SELECTION

Level of knowledge of standard forms of contract Table 2.2: Users’ level of knowledge of standard forms of contract in the SA building industry

TYPE OF CONTRACT JBCC Series 2000 GCC 2004 NEC3 FIDIC

Mean 4.3 2.3 2.2 2.4

RI .82 .32 .30 .35

Very low 0 22 20 19

Low 2 18 23 19

Average 5 12 12 13

High 31 9 6 8

Very high 26 3 3 5

The results in Table 2.2 indicate that the level of knowledge of users’ of JBCC is high (RI = 82%) whereas the level of knowledge of the other permissible standard forms of contract is low (RI ranging between 30% - 35%). Cumberlege et al (2008), argue that it is vital that both parties (employer and contractor) should have an extensive knowledge of the contract. The research is therefore indicative of the fact that JBCC is, at least for the time being, the most effective form of contract in the South African building industry. Level of use of standard forms of contract Table 2.3: Users’ level of use of standard forms of contract in the SA building industry

TYPE OF CONTRACT JBCC Series 2000 GCC 2004 NEC3 FIDIC

Mean 4.4 1.8 1.8 1.8

RI .85 .19 .19 .20

Never 1 30 32 34

Rarely 4 26 26 21

Regularly 5 3 0 2

High 12 3 1 2

Very high 42 2 5 5

The results in Table 2.3 likewise indicate that JBCC is the contract of choice in the South African building industry (RI = 85%) and that the other permissible contracts are seldom used for building projects (RI = 20% or less). JBCC vis-à-vis other standard forms of contract

RI

Undecided

Agree

Highly agree

Locally more relevant Wider application, therefore better understood Easier to administer Better availability of technical support More equitable distribution of risk Deals better with specialist subcontracting Suitable for both private and state sectors

Mean

Disagree

Assumed advantages of JBCC

Highly disagree

Table 2.4: The advantages of JBCC over other permissible standard forms of contract

4.2 4.0 3.9 3.9 3.7 3.9 3.9

.80 .76 .72 .72 .67 .73 .72

1 3 3 2 3 1 1

2 5 5 2 4 3 5

4 2 3 9 14 10 8

34 31 39 39 34 35 36

23

23

14

12

9

15

14

The analysis of the results in Table 2.4 shows that respondents generally agreed with the assumed advantages of JBCC over other permissible contracts (RI


29

ranging between 67% - 80%). This outcome is supported by the following two comments from respondents: • •

GCC, NEC3 and FIDIC are engineering contracts drawn up by engineers and as such each has shortcomings in its application to the building industry in SA. The most important aspect of contracting is the allocation of risk and the management of all risk factors through rights/obligations and the administration thereof. JBCC does this fairly well and knowledge of JBCC is well established in the building industry.

Selection of an appropriate standard form of contract

Agree

3.2 3.2 3.0 2.9 3.1 3.0

.55 .54 .49 .47 .51 .51

0 3 1 2 1 7

1 4 8 6 5 24

2 7 7 1 4 21

2 13 7 4 8 34

Highly agree

RI

Undecided

Architects Quantity surveyors Project managers Engineers Contractors Overall totals

Mean

Disagree

Selection of an appropriate form of contract

Highly disagree

Table 2.5: Clients and consultants are sufficiently informed to decide which contract is the most appropriate contract to use

0 1 1 2 0 4

One can deduce from the results in Table 2.5 that respondents are not fully convinced that clients and consultants are sufficiently informed to make a proper selection of the most appropriate form of contract for the project in question (RI ranging between 47% - 55%). This deduction is supported by comments made by some of the respondents (see below). Another possible reason is that few people and practices in the building industry have the opportunity to use forms of contract other than the JBCC, and vice versa for those operating in the engineering industry, who seldom will come across the full range of contracts (GCC, NEC and FIDIC) not to mention JBCC. • •

• •

It will be great if ALL government departments and local authorities use JBCC on their building projects. Form of contract needs to be widely used and when participants get used to one it benefits everyone due to understanding and ease of application. Most contractors are not that clued up with any form of contract - if there is more than one used then it make matters worse. JBCC is widely known and a refined form of contract. Clients have very limited knowledge of the contracts. Architects that are appointed as principal agents in many cases don't have sufficient knowledge of the JBCC contract. With regards to point number 2.4 above the perception exists that most of the clients don't have sufficient knowledge to make the decision on the form of contract and have to rely on the consultants. Most principal agents will rely on the QS to advise on the type of contract to use, which means that most of the other consultants are not sufficiently knowledgeable on the different contract types.

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CONCLUSION AND RECOMMENDATIONS In conclusion, it is evident from the study that JBCC is the preferred standard form of contract in the South African building industry. There are, however, some reservations judging from comments made by respondents with respect to its effectiveness, which have mainly been brought about by the regular publication of revised editions since its inception in 1991. In order for JBCC to maintain its position as market leader, it needs to take cognisance of this perception and they must ensure that the proposed new, sixth edition would meet all the requirements of a modern contract, address all recognised remaining deficiencies, and that it obtains the sanction and support of CIDB and government. The new edition must, in addition, undergo a rigorous legal vetting process by a firm of lawyers that has appropriate specialisation and experience in the field of construction contract law. JBCC must further continue to promote and develop its documentation suite as it was clearly illustrated that JBCC is regarded as locally more relevant. Furthermore it is generally recognised that the supplementary documentation and technical support provide constructive assistance to users, and that it deals effectively with specialist subcontracting matters, an issue very prevalent to the South African building industry. REFERENCES Burger, D. 2009. Personal e-mail correspondence. 7 July 2009, Pretoria. Claassens, W. 2009. Main modifications between GCC 2004 and draft GCC 2009. Unpublished document, 9 July 2009, Pretoria. Construction Industry Development Board (CIDB). 2004. Standard for Uniformity in Construction Procurement. Notice 62 of 2004, Pretoria: Government Gazette No. 26427. Cumberlege, R; Buys, F & Vosloo, D. 2008. A review on the effectiveness of the Joint Building Contracts Committee Series 2000 Principal Building Agreement – A contractor’s perspective. University of the Free State, Bloemfontein: Acta Structilia, Vol 15(2). Finsen, E. 2005. The Building Contract: A commentary on the JBCC Agreements. 2nd edition. Cape Town: Juta & Co Ltd. Joint Building Contracts Committee (JBCC). 1991. Principal Building Agreement. 1st edition. Johannesburg Joint Building Contracts Committee – JBCC Series 2000. 1998, 2000, 2003, 2004, 2005 and 2007. Principal Building Agreement. Editions 2 – 5, Code 2101. Johannesburg. Leedy, PD & Omrod, JE. 2005. Practical Research – Planning and Design. 7th edition. New Jersey: Prentice-Hall. Lipshitz, M & Malherbe, G de C. 1979. Malherbe and Lipschitz on Building Contracts. A publication of the National Development Fund. Pretoria: Promedia. The Department of Public Works (DPW). 1997. The Green Paper on Public Sector Procurement Reform in South Africa, prepared for the Minister of Public Works. Pretoria: Government Printing Works. The Departments of Public Works (DPW) & Finance. 2000. Report by Focus Group 6 (Procurement): Inter-ministerial Task Team on Construction Industry Development, prepared for the Ministers of Public Works and Finance. Pretoria: Government Printing Works.

SACQSP2009-03

Creativity and strategy: The development of construction professions Verster, J.J.P. 1 and Kotzé B.G.2 1 2

Department of Quantity Surveying and Construction Management, University of the Free State, [email protected], Tel No. +27-51-4012248 Department of Quantity Surveying and Construction Management, University of the Free State, [email protected], Tel No. +27-51-3849

ABSTRACT Purpose The purpose of the study was to identify the presence and to some level, the importance of creativity related to construction professionals, as well as to investigate the elements that support the development of creativity in the industry. Method Research done by the University of the Free State (UFS) shows agreement with the approach related to the role that creativity may play, and that the construction fraternity needs to develop creativity and growth towards a more dynamic creative industry. Survey 1 was a questionnaire related to the three Ts of creativity (Talent, Technology and Tolerance). The questionnaire was sent to twenty (20) experienced construction professionals who were asked to give their perceptions on the level of the three Ts as elements of creativity in the construction industry in South Africa. The response rate for Survey 1 was 60%. Because of the small survey sample, a need for further sampling was identified. Survey 2 was given to thirty-three (33) quantity surveying and twenty one (21) architectural post-graduate students who were requested to respond to the same questionnaire. All (100%) students responded. An additional survey was done to confirm the three Ts, and the questionnaires were answered by a captured group of 24 Quantity Surveyors and one Construction manager with an average experience of 20 years (100% response). The results of this Survey confirmed the results of Survey 1, although the final analysis is being done.

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Creativity and Strategy: The development of construction Professions

Findings The surveys show that talent and technology as elements of creativity are development areas. Tolerance is perceived to be at an acceptable level in respect of construction professionals. Value Creativity is seen as an important element of a society, profession, community, and individual development and growth. The surveys show that the elements of creativity should be addressed by professions to stimulate growth. The value of the surveys is therefore the identification of the importance of creativity for construction professions and the development areas in respect of creativity. Key words: Creativity, construction industry, talent, technology, tolerance, development, strategy. INTRODUCTION Florida (2007) found, that the creative class has an important and substantial influence on the development of cities, and according to him, creativity may also ensure economic development. Cities should therefore attract the creative class in order to be competitive in relation to other dynamic places. Florida (2007: 30-32) identifies the creative class as people in occupations requiring social skills and emotional intelligence, such as nurses, lawyers, designers and architects, or people with an ability to create new ideas, technologies, models and values The creativity debate is actively continuing in respect of the role that creative people play towards the economic development of cities and regions. Florida (2004) states that the creative classes are the new powers of economic development and growth, and that cities should embrace the creative class to grow economically. In respect of creativity, three elements are seen by Florida (2004), as characteristics of the creative class. These are: Technology, Talent and Tolerance. Florida’s ideas have also come under severe criticism by various academics and others. In respect of the influence on economic development, many other dynamics are seen as important or even more important (Peck, 2005). However, Rausch and Negrey (2006) state that the statistically significant positive influence of tolerance on economic growth is shown, and they also hypothesize that certain elements of the creative index were likely related to economic health and growth. Florida (2004: XIX; 2007: 37-38) identifies three elements of economic development, the three Ts of creativity: • Technology: Knowledge and products of knowledge • Talent: Creative capital in a society (the use of human ability)

Creativity and Strategy: The development of construction professions

•

33

Tolerance: Openness, inclusiveness of people, and mobilization of talents. (Verster, Kotze & van Zyl, 2009).

The presence of Talent, Technology and Tolerance in cities (and other entities) may also be indicative of creativity in the construction industry. CREATIVITY: MEASUREMENT AND ASSUMPTIONS To assess the correct creativity level of a profession in respect of Talent, Technology and Tolerance (the three Ts), may not be a simple task. The first approach may perhaps be to establish a reasonable measurement instrument to measure the most basic indicators of the three Ts, as status quo for the professions. •

Talent. “A basic approach that may be suitable to measure talent, is to establish how many PhD’s are present in a specific learned society, and benchmark this against other similar professions / societies” (Verster et al., 2009). South Africa produces about 23 doctorates per million people of its population per annum compared to Brazil (43), South Korea (157) and Taiwan (53) (Rapport Argief, 2008: 17). This comparison may indicate some level of talent development and approach and a development area. The Quantity Surveying profession in South Africa has 21 doctorates registered as professional quantity surveyors at the South African Council of Quantity Surveying Profession (SACQSP) (1.3%), the Chartered Institute of Building (CIOB) (Africa), mostly construction managers has 21 members with doctorates (1.05%). The architectural profession, relevant to the respondents’ profile of the SAIA survey shows that about 20% have additional postgraduate and further qualifications, of these 7% are doctorates (i.e. about 1.4% of the total) (Linning, 2001: Survey). During 2008 only one doctorate in Quantity Surveying was produced by the accredited South African Universities. The above statistics indicate a development area for construction professions in respect of Talent level. It is however accepted that doctorates are not the only indicator of talent but a strong one (University of the Free State (UFS), 2009).

•

Technology may perhaps be partly measured by identifying the latest products, inventions, models and documents developed by a learned society on behalf of its members or stakeholders. The quantity surveying profession has developed the following instruments during the past number of years: Edu Tech Centre, Go-learning, distance learning, Construction Communication Network (CCN) Products, Model Bills of Quantities, Continued Professional Development (CPD) programmes, international congresses, and many other model documents (some other products like the contract documents were

34


developed in partnership with other professions). The above indicates some creative developments within the professions but does not really, except for the CCN, show many exciting new technological developments to support the professions towards a creative future (Verster et al., 2009). A strategic assessment regarding creative activity is perhaps necessary. •

Tolerance is seen as an important element of creativity in that it allows people of many cultures, backgrounds, races and beliefs to participate (Florida 2004; 2007). The diversity in respect of culture, gender and background of SACQSP councillors is an indication of movement towards tolerance and participation. The multi cultural face of the council is a very positive development (SACQSP, 2009). This is also true in respect of the Architectural profession. The SACAP shows substantial diversity in respect of gender and race (SACAP Rapport, 2009). The CIOB (Africa) also shows some diversity in the board however a need for more participation by women is identified (CIOB Minutes, 2009).

The above shows developments towards Tolerance between various groups in South Africa’s professional institutions that may be seen as an indication of positive developments towards creativity. The quantity surveying profession is moving in a positive direction regarding the elements of creativity but more emphasis on advanced study and research is necessary. RESEARCH AND FINDINGS As a first survey (survey 1), twenty experienced construction professionals (quantity surveyors, architects, construction managers and engineers) were requested to respond to a questionnaire related to the three Ts of creativity and give their perceptions on the level of each, as elements of creativity in the construction industry in South Africa. Twelve of these professionals responded (60% response rate). In the next survey (Survey 2) thirty-three quantity surveying and twenty-one architectural post graduate students were also requested to respond to the same questionnaire. All students responded (100%). It should be noted that these phases were the first of it’s kind and therefore provisional surveys. A more comprehensive study is planned. The respondents were requested to indicate their opinions on a 5 point scale where 1 = not present at all, and 5 = highest level. The three questions were: Talent:

What is your opinion or perception of the presence of creative people in the industry in creative positions, or the talent level in the industry?

35


Technology:

Tolerance:

What is the level of innovation and support for new products and high-technology developments in the industry? How open is the profession to new people, new ideas and differences in approach?

Figure 1 shows the opinions of the respondents of Survey 1 in respect of the three elements of creativity and the level of each in respect of the construction industry. Talent was rated the highest (average 3.5 out of 5), while Tolerance a scored less than 3 out of 5.

3.4

3

3

2.8

3

3

Figure 1: Respondent’s opinions on the three elements of creativity: Talent, Technology and

Tolerance in respect of the construction industry.

(Source: UFS, 2009)

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Figure 2 shows the opinions of the post-graduate students on Survey 2, in respect of the three elements of creativity and the level of each in respect of the construction industry. Talent was rated the highest (average 3.517 out of 5), while Technology scored only 3.103 out of 5.

Figure 2: The graduated students’ responses on the level of creativity of the construction

industry, related to the three Ts.

(Source: UFS, 2009)

Comparing the students’ responses with those of the professionals it is clear that students are slightly more positive than the construction professionals’ respondents, in respect of the creativity elements Technology and Tolerance but equal in respect of Talent. Using the results as shown in Figure 1 and Figure 2, it becomes clear that Tolerance, as expected, is the important development area that should receive dedicated attention. The results are strong indicators of the current level of creativity in the construction industry in South Africa. The presence and eagerness of creative people to work in a specific environment is important for future economic development of such an environment, and is thus also strongly based on the Tolerance of such an environment in respect of differences in people, ideas, life styles and approach (Florida, 2004).

Creativity and Strategy: The development of construction profession

37

The question that may now be asked is how creativity, specifically tolerance as development area, can be developed in the industry to ensure that creative people enter, stay, and develop the industry. The graduated students were further requested to respond in terms of the perceived level of creativity of their own, and that of the other related professions, as well as the creativity of the industry. Thirty three quantity surveying and twenty one architectural post graduate students were requested to respond to the questionnaire. All students responded (100%). Figure 3 shows the graduated quantity surveying (QS) and architectural (Arch) students’ opinions on the creativity of their own profession. PROFESSIONALS ON OWN CRE ATIVITY

5

3.83

3.67

4 3 2 1 0 1

2

QS

AR CH

Figure 3: Graduated students’ opinions on the creativity of their own professions. (Source: UFS, 2009)

Figure 4 further shows the opinions of the graduated students on the creativity of other related professions and the construction industry. P ROFES SIONALS ON THE CREATIVITY OF OTHER PROFESSIONS

5

4.13

4

2.83

3.28

3

2

1

0 1 QS ON ARCH

2 ARCH ON QS

3 QS &ARCH ON INDUSTRY

Figure 4: Graduated students’ opinions on the creativity of other related professions and the

construction industry.

(Source: UFS, 2009)

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The graduated students were also requested to respond in terms of the perceived level of tolerance of their own and that of the other related professions. Thirty three quantity surveying and twenty one architectural post graduate students were requested to respond to the questionnaire. All students responded (100%). Figure 5 shows the graduated quantity surveying and architectural students’ opinions on the perceived tolerance level of their own and of other related professions. PROFESSI ONALS ON THE TOLERANCE LEVEL OF THEIR OWN PROFES SIONS AND OF OTHER RELATED PROFESSIONS

5

4

3.73

3.95

3.94 2 .67

3

2

1

0 1

2 QS ON OWN

ARCH ON OWN

3 QSON ARCH

4 ARCH ON QS

Figure 5: Graduated students’ opinions on the tolerance level of their own professions and of

other related professions.

(Source: UFS, 2009)

The question that may be asked related to the comparison between the graduates perceptions regarding creativity and tolerance. If professions see themselves as most creative, most talented, most technologically advanced and most tolerant, are they in fact most tolerant? COMPARISONS OF STATUS QUO AND RESPONDENTS OPINIONS •

•

Talent: The status quo in respect of the South African situation clearly shows a significant backlog in respect of the doctorates as an indicator of Talent. This is also true in respect of the construction industry. The respondents are less critical or may not be aware of this and are therefore more optimistic. It is suggested that the industry see talent development as a dynamic strategy for the future. Technology: The current situation shows that the construction industry is not as technologically advanced as it should be, although the respondents are not negative. The under-graduate students are more positive, possibly a good sign for the future. Technology development should be a strong strategy of the industry to compare with others.


•

39

Tolerance: The current situation shows welcoming developments in this area and respondents are neutral about this, the students are optimistic (Figure 2). In the South African situation this may be seen as one of the most vital development areas, and tolerance enhancement should be an important strategy of the industry to attract bright young people from all backgrounds.

CONCLUSION Judging from the study and results it may be deduced that creativity may be an important element for development of communities, including professional societies, in the future. The proposed elements of creativity i.e. Talent, Technique and Tolerance, therefore need to be part of the development foci of societies, especially regarding the following: Attracting talented young people to the learned society;

support and promote learning and research.

Technique: Support, fund and develop innovative products and new

ways of doing things. Tolerance: Invite new ideas and people of different cultures to participate in development, and create and accommodate diversity. Develop an understanding of other people, cultures and methods, etc. It is proposed that the creative characteristics and index are elements of strategy and development for societies (“industries”), professions and individuals in respect of the economic growth related to each. It is also proposed that property professionals may be seen as creative professions. It may also become clear that construction managers, project managers, engineers and quantity surveyors should work in new innovative and creative ways to serve the demand on their contribution as members of the creative class (Verster et al., 2009). Talent:

RECOMMENDATIONS It is recommended that a strategy and model be developed to assist the industry in understanding the importance of, and developing creativity and focusing on the retention of creative people, but also what the elements and dimensions of the development model should be, and how to utilise them. It is suggested that education and training are the strongest support determinants of the development of creativity within the industry, and therefore, should be a main driver of this development. Research is seen as a very important determinant of creative development of entities, industries and nations and must therefore be

40


included as a major dimension of a creativity development model towards an improved industry maturity. Further, research related to creativity, the development of creativity, and the dimensions of creativity development is proposed to increase the awareness of the role of creativity in the industry and how to develop the creative class in the construction industry of South Africa. REFERENCES CIOB Minutes. 2009. CIOB Africa Regional Council Minutes. South Africa: CIOB Africa Florida, R. 2004. The Rise of The Creative Class. New York: Basic Books. Florida, R. 2007. The Flight of the Creative Class. New York: Harper Collins Publishers. Linning, S. 2001. State of the Profession: The Survey. Incorporating a report on current trends in Architectural Practice. Pretoria: [s.n.]. Peck, J. 2005. Struggling with the Creative Class. International Journal of Urban and Regional Research. 29(4), p. 740-770, December. Rapport Argief. 2008. PhD-projek keer breinkwyn. [online]. Media 24. Available from: http://argief.rapport.co.za/cgi-bin/rapport.cgi?cs [Assessed 16 March 2009]. Rausch, S. & Negrey, C. 2006. Does the Creative Engine Run? A Consideration of effect of Creative Class on Economic Strength and Growth. Journal of Urban Affairs. 28(5), p. 473-489. SACAP Rapport. 2009. SACAP Rapport. [s.l.]: [s.n.]. SACQSP. 2009. About the ASAQSP. [online]. Available from: http://www.sacqsp.org.za/html/the_council.html [Assessed 20 July 2009]. University of the Free State. 2009. Telephone Survey conducted during March-July 2009. Bloemfontein: University of the Free State. Verster, J.J.P., Kotze, B.G. & Van Zyl, C.H. 2009. Creativity in the construction industry as strategy and development indicator. Unpublished article. Bloemfontein: University of the Free State.

SACQSP2009-04

The future of Project Management in the built environment: The need for industry-specific knowledge Burger M1 & VersterJJP2, 1 2

Elmacon Project Management, [email protected], Tel No. 082 418 2833 Department of Quantity Surveying, University of the Free State, [email protected], Tel No. 051-401 2248

ABSTRACT AND KEYWORDS Purpose of this paper: There is a school of thought that regards project management as a generic discipline – a science that can successfully be applied in different industries by a project manager without the project manager having industry specific knowledge (Wirth, 1996:10). Apposed to this, there are those that believe that a project manager needs knowledge about the industry being managed in order to be successful at it (Cadle & Yeates, 2001:358). The purpose of this paper is therefore to understand the theory behind the various positions in respect of a generic or industry specific knowledge in project management. Design/methodology A literature study was conducted regarding project management in the built environment and it is hypothesized that project management requires industry-specific knowledge, specifically in respect of working in the built environment. Theory about the various positions will be presented, as the empirical study is still in process. The theory covers project management in general, in the organization and in the built environment specifically and serves as basis for the empirical study. An empirical study to follow the literature review is envisaged. The empirical study will include quantitative and qualitative research that incorporates questionnaires, interviews and a case study. Findings The findings may bare relevance to various fields within the built environment, i.e. Quantity Surveying, Construction Management, Architecture, Engineering and Town Planning. The literature review suggests that industry specific knowledge is required to be effective as a project manager.

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Project Management in the built environment: The need for industry-specific knowledge

Value The value of the study relates to clarification of the position and to propose a scientific approach to the development of project management in the industry. Keywords: knowledge.

project management, built environment, industry specific

INTRODUCTION Through the course of history many projects were constructed, such as the Egyptian pyramids and Great Wall of China (Burke, 2001:11; Shenhar, 2008: 2). During the First World War project management underwent major changes and started taking on the form of modern day project management. Initially it mainly enjoyed support in the aerospace, defence and construction industries (Kerzner, 2006: 35-40) but in recent years has spread to many other industries (Shenhar, 2008:2; Dinsmore, Kloppenborg & Opfer as cited in Morrison, Brown & Smit, 2006:39). These industries include IT (Besner & Hobbs, 2008: 16), pharmaceutics (Brown & Grundy (2004: Xi), insurance, financial engineering, theatrical productions and even sports (Wirth 1989, Wirth 1995a & Wirth 1995b as cited in Wirth, 1996:7). Project Management is a growing profession (Mulcahy,2001:22) that is welcomed and greatly supported in many organizations (Rod & Levin, 2006:1) as project management is used to ensure successful project completion (Burke, 2001:2) and assists in keeping up with global competitiveness (Brown and Zimmerter & Yasin as cited in Birkhead, Sutherland & Maxwell, 2000: 101) and meeting organizational objectives (Trebilcock, 2007:40). The study aims to determine the need for industry specific knowledge in project management in the built environment. It consists of a theoretical section and an empirical section. This paper will deal with the theoretical section, as the empirical section is still in process. A theoretical understanding of project management is necessary in order to explore the need for industry-specific knowledge in project management within the built environment. PROJECT MANAGEMENT Project management is a structured approach to managing projects (Burke, 2001:1) from initiation through to completion (Burnet, 1998:8). To gain a clearer understanding of project management, one must begin with a definition of a project (Kerzner, 2003: p2). In the Project Management Institute’s Project Management Body of Knowledge (PMBOK) a project is


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defined as “A temporary endeavour undertaken to create a unique product, service, or result” (PMBOK, 2004: 5 & Zwilcael & Bar-Yuseph, 2004:137). Project management is defined by the Project Management Institute (PMI) in the Project Management Body of Knowledge (PMBOK,2004:8) as follows: “Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.” The objectives of project management can be condensed to completion on time, within budget, according to the required scope and to a technical or performance standard which satisfies the end user (Burke, 2006:8 & Lock, 1987: 6). Various tools and techniques are used in project management such as pert, Critical Path Method, work breakdown structures, barcharts and cashflow statements. The tools can be compared to a plumbers toolkit. These tools assist in planning, monitoring and controlling a project (Burke, 2006:3). Besner & Hobbs (2008: 16-33) studied project management practice in the Engineering and Construction industry, the IT industry and Business services, by researching which project management tools and techniques are generally used in each industry. The tools and techniques in the toolbox are generic project management methods. Certain tools are used more often in certain industries than in others (Besner & Hobbs, 2008:16-33). GENERIC OR INDUSTRY-SPECIFIC In the project management profession the generic ability of a project manager is a point of difference. There are those that believe in the generic power of project management. They believe in not only the transferability of the tools, but also in specific that the project manager can successfully work in various industries. They believe that a project manager can transfer from one industry to another (Wirth, 1996:10). On the other hand, there are those who believe that a project manager needs industry-specific knowledge of the industry they work in (Webb,1994: 55) With the expansion of the project management industry beyond construction, defence and aerospace to areas such as insurance, financial engineering, theatrical productions and even sports (Wirth 1989, Wirth 1995a & Wirth 1995b as cited in Wirth, 1996:7), there is concern regarding the generic capability of project management (Wirth, 1996:7). There is also interest in the transportability of an academic degree in project management across industries (Stewart, Wakasugi & Ward as cited in Wirth, 1996: 7). Business organizations are interested; as it will influence the requirements to send project managers on specialist in-house training

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courses (Teplitz & Thambain as cited in Wirth, 1996:7). Educational institutions are also interested in gaining more knowledge on the topic, as it will influence the programmes – to accommodate the needs of individuals and organizations (Wirth, 1992 as cited in Wirth, 1996:7). A large section of a project managers’ tasks such as scheduling, programming (pert, CPM), planning motivating and coordination are generic (Wirth, 1996:8) and are used in various industries (Carretta, Forrester and Graham & Birchall as cited in Wirth, 1996:8). The difference of opinion comes to play with not only the project management tasks and methods that are transferable, but especially - how transferable a project manager is between industries. Wirth (1996:10) studied 5 industries namely utilities, pharmaceuticals, manufacturing, construction and information systems. He concluded that “it seems that a project manager’s transfer from utilities, pharmaceuticals or manufacturing into construction is more readily feasible than a transfer in the opposite direction. The latter might require qualifications adjustment.” Wirth’s pilot study concludes that it is possible for a project manager to transfer from certain industries to others. On the other side there are those that support the need for industry-specific knowledge, and state that a project manager needs at least a basic knowledge of the environment they work in (Cadle & Yeates, 2001: 358). PROJECT MANAGEMENT AND GENERAL MANAGEMENT An effective project manager needs to have management as well as technical knowledge (Kerzner, 2003: 9-10; & Lee & Sweeney, 2001:16). General Management skills that are important in project management are staffing, leadership, instructing, planning, monitoring, controlling, implementing, communicating, team building, coordinating and organizing. It is assumed that proficient project managers require not only communication and management abilities, but also technical abilities (Briner, Hastings & Geddes, 1996:29). There are many authors that support this view. Petterson (1991: 99) says that project managers need a solid basic experience in the relevant field. Technical aspects of a project need to be managed (Burke, 2001: 4). Kerzner (2003: 9-10) also states that project managers should have a total understanding of each line in the organization. Cadle & Yeates (2001: 358) state that a project manager must have an accurate understanding of the technical requirements of the project so that business needs are addressed and satisfied. Webb (1994, 55) shares quite the same opinion and states that a certain amount of technical


45

knowledge is needed. He states that today’s products are complex, therefore it is not expected that project managers understand all aspects of the technology and they don’t have to generate technical solutions. However, the project manager needs sufficient technical understanding in order to communicate with the projects’ technical staff on their terms and also grasp the implications of what is being said to him/her on technical terms. Turk (2007: 25) says that project managers need to know what questions to ask and judge when they are not getting the full story, therefore a blend of technical knowledge and project management is required. As the 21st century progresses, increasingly more technical expertise will be required. Whittaker (1995:9) states that it’s generally accepted that a project manager in the process industry needs to understand what the technical experts are doing. The reason a project manager needs this knowledge is to interpret what the team needs to do in terms of how they do it and be able to make informed judgments without the need of an interpreter. Different projects demand different levels of technical expertise. Many projects do not require true technical expertise, but simply an understanding rather than a command of technology. In projects where line managers are present, they generally perform the role of the technical expert (Kerzner, 2003: 155-158). In certain cases, such as on smaller projects, it may be expected of the project manager to be the project manager and also the technical expert (Burke, 2001: 4). Kerzner (2003:13) depicts the reporting relationships between project manager, line manager and employee in table form. It reveals that employees take technical direction from line managers, project managers or both. In tiger teams, that have strong matrix structures, employees take technical direction only from the project manager. Hence, it can be deduced that project management, in certain situations definitely, require a project manager that has technical knowledge relating to the work that is done by the technical team members. Zack (2004:1-7) supports the view that it is important for project managers to have industry knowledge and not merely project management theoretical knowledge. He discusses the relevance of it to cost engineering. This bares relevance to quantity surveying, as a quantity surveyor and cost engineer share the same functions. The primary difference between the two lies in the route taken to professional qualification (ICEC, 2009:Online). Zack (2004:1-7) states that industry knowledge results in a project manager that is much more likely to be successful than a theoretical project manager. ICEC (International Cost Engineering Council), AACEI (Association for the advancement of cost engineers) and various other


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societies define cost engineering and project control as encompassing the areas of cost estimate, cost control, business planning and management science, profitability analysis, project management, planning and scheduling. Project managers need to master these skills in order to be a successful project manager (Zack, 2004:3-4). Kapp (1998:30) also supports the view that technical as well as managerial abilities are important and says that technical abilities without human skills are undesirable. A project manager needs to be people orientated (Zimmerer & Yasim and Jiang, Klein & Margulis as cited in Birkhead, Sutherland & Maxwell, 2000:101) – a project’s success or failure can be found within technical and human competencies of the manager (Hamilton,1997:212). The distribution of these competencies depends on factors such as the positional authority of the project manager and the size and nature of a project (Hamilton, 1997:213). LEADERSHIP, TRUST AND COMMUNICATION The leadership role of a project manager is a critical factor in determining project success (Snow, Davison, Snell & Hambrick & Snell, Davison, Hambrick & Snow as cited in Iles & Hayers, 1997: 99). In a project, the purpose is to attain the project objectives (PMBOK, 2004: 7). A leader can make a difference in terms of the end-result factors such as performance and goal attainment (Ivancevich, 1996, 412). Leadership is often defined as influencing others and therefore enhancing their contribution to attain group goals (Haslam, 2001: 58). Leaders need to be competent. George Bush (Culp & Smith, 1992:68-69) said “Do your homework. You cannot lead without knowing what you are talking about”. Leaders need technical knowledge, interpersonal skills and project management skills (Culp & Smith, 1992:68-69). Bennis & Nanus (cited in Bjerke, 1999:61-62) and Bennis (cited in Bjerke, 1999:61-62) suggest that the following competencies are evident in all leaders: •

•

Attention through vision - this is the ability of leaders to draw others to them through having a vision. A vision needs to be clearly understandable, in order for it to be successfully communicated to followers. Further more, it should also be inspiring, widely accepted and integrated into others visions, strategic and long term focused (Avery, 2004:101). Deployment of self – leaders need to know their own skills and deploy it effectively.


•

•

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Meaning through communication – In order to align people with the goals leaders need to communicate their vision. Effective leaders communicate openly, honestly and positively (Morris, Willcocks & Knasel, 1995:3-4). There is however various barriers that can hinder good, effective communication, one being source credibility. This refers to the trust, confidence and faith that the person receiving the message has in the words and actions of the communicator (Ivancevich & Matteson, 1996:501). Communication is a key factor in team performance, successful project completion and effective project management (Chiocchio, 2007:97). Effective project communications ensures that the right information is sent to the right person at the right time and in a cost effective manner (Kerzner, 2006:229). Trust through positioning – Trust is essential in all organizations. Trust is an essential element of a project and impacts on a projects success. It is therefore important to understand how it develops and where it comes from (Romahn & Hartman, 1999:1). Robbins (1996:357) states that high performance teams are characterized by mutual trust among members. The concept of trust is based on 5 dimensions (Schindler & Thomas as cited in Robbins, 1996:356): • • • • •

Integrity – Honesty and truthfulness Competence – Technical and interpersonal knowledge and skills Consistency – Reliability, predictability and good judgment in handling situations Loyalty – Willingness to protect and save face for a person Openness – Willingness to share ideas and information freely.

The 2 dimensions that rank highest in determining trustworthiness in another, is integrity and competence (Butler & Cantrell as cited in Robbins,1996:357). Trust is important in an organization, as business needs to take place within trust, as trust has an influence on effective communication and teamwork (Romahn & Hartman, 1999, 1). It is important for a project manager to improve their ability to communicate, organize, build teams and provide leadership (Posner as cited in Birkhead, Sutherland & Maxwell, 2000, 101). PROJECT MANAGER “Organizations rely heavily on the expertise of skilled project managers”, states Orr (2004:1). The right project manager is one of the important factors of a successful project (Awani, 1983:103).

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There are certain attributes that project managers should ideally possess. The skills and attributes include ability to anticipate problems (Macdonald, 2005: 185), review, monitor and control (Burke, 2001: 9-10), evaluation and decision making (Cadle & Yeates, 2001: 358), getting things done and keeping the client happy (Grahum & England, 1997:163-164). Project managers should have the ability to integrate the project stakeholders (Burke, 2001: 9-10), be able to negotiate and persuade (Burke, 2001: 9 10), be optimistic (Dolfi & Andrews, 2007: 681), enthusiastic (Grahum & England, 1997:163-164), have Integrity (Burnett, 1998:14), posses leadership (Amalutti &.Hauserman, 2007:40) and be excellent communicators (Hamilton, 2004:2-26; Achibald as cited in Macdonald, 2005:183). Proficient project managers require not only communication and management abilities, but also technical abilities (Briner, Hastings & Geddes, 1996:29). Project managers need to know techniques of project management well (Pacelli, 2004: 54), understand the environment which the project is being managed in (Burke, 2006:12) and have technical understandings so that the technical requirements of the project are understood and that the business needs are addressed and satisfied (Cadle & Yeates, 2001: 358). This bears great relevance to the study, as it indicates the necessity for a certain amount of industry-specific knowledge. CONCLUSION Planning, monitoring and controlling a project successfully is of great importance. Project management has gained great support in organizations and across industries. We share the view that project management methodology and the descriptively referred to toolkit, is generic. The tools can be used on various projects, over industries and in various organizational settings. However, the project manager needs industry-specific knowledge when applying project management in practice. The level of industry-specific knowledge required is not the same among all projects. Certain projects demand a greater technical and industry knowledge of the project manager. All projects in the built environment need a project manager with at least a basic level of industry knowledge. A project manager that is not knowledgeable diminishes the trust relationship and effective communication that should exist between the project team and the project manager in order to increase the effectiveness of project management and the probability of success. Recent years have seen many quantity surveyors and cost engineers develop a keen interest in project management. Numerous skills that form part of quantity surveyors and cost engineers knowledge base are crucial to ensure successful project management.


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RECOMMENDATION The empirical study is in process and the findings will be shared with the industry in future. Further studies that focus on the recommended basic knowledge base for a project manager in the built environment, is welcomed. Also, quantity surveying and cost engineering knowledge as contributor to successful project management in the built environment can further be explored. This may also be true to other professions. REFERENCES Achibald, R. Managing high technology programs and projects. New York, Willey. Amatulli, V.F. & Hauserman, W.F. 2007. Project Management – art or science? 360degrees, p.40, September. Avery, G.C. 2004. Understanding leadership. SAGE Publications. London. Awasi, A.O. 1983. Project Management Techniques. USA. Petrocelli Books. Bennis, W. 1989. Why leaders can’t lead. San Francisco. Jossey-Bass, Inc. Bennis, W. & Nanus. 1985. Leaders: The strategies for taking charge, New York: Harper & Row. Birkhead, M., Sutherland, M. & Maxwell, T. 2000. Core competencies required by project managers. South African Journal of Business Management, 31(3), p. 99-105, September. Bjerke, B. 2001. Business leadership and culture. Edward Elgar Publishing Limited. UK. Burnett, K. 1998. The Project Management paradigm. London. Springer. Besner, C & Hobbs, B. 2008. Project Management Practise, generic or contextual: a reality check. Project Management Journal, p. 16-33, March. Briner, W., Hastings, C. & Geddes, M. 1996. Project leadership. USA. Gower Publishing. Brown, C.J. 1998. A South African project management curriculum, ProjectPRo, 8(2), 33-39. Brown, L. & Grundy, T. 2004. Project Management for the Pharmaceutical Industry. USA. Gower Publishing Company. Burke, R. 2001. Project Management. 3rd edition. Cape Town: ABC Press. Burke, R. 2006. Project Management. 5th edition. Cape Town: ABC Press. Butler, J.K. & Cantrell, R.S. 1984. A behavioural decision theory approach to modeling dyadic trust in superiors and subordinates. Psychological reports, p.19-28, August.

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Cadle. J & Yeates D. 2001. 3rd edition. Project Management for information systems. Malaysia. Prentice Hall. Carretta, A. Project Management “soft” competencies, Proc. 11th International Project Management Association (INTERNET) World Congress on Project Management, Florance, p. 265-276, June. Chioccio, F. 2007. Project team performance: a study of electronic task and coordination communication. Project Management Journal, 97-109. March. Culp, G & Smith, A. 1992. Manageing people (Including Yourself) for project success. New York. Van Nostrand Reinhold. Dinsmore, P.C. 1999. Winning in business with enterprise project management. USA. Amacom. Dolfi, J & Andrews, E.J. 2007. The subliminal characteristics of project managers: An exploratory study of optimism overcoming challenge in the project management work environment. International Journal of Project Management, 25, 674-682. Forrester, J.D. 1988. Training project managers – the intangibles. Proc th 9 International Project Management Association (INTERNET) World Congress on Project Management, Glasgow, p419-426, September. Graham, R.J. & Birchall, D. 1989. The developing behavioral emphasis in project management seminars and university programs. Proc 1989 Project Management Institute (PMI) Seminar/ Symposium, Atlanta, 648651, October. Graham, R.J. & Englund, R.L. 1997. Creating an environment for successful projects. San Francisco. Jossey-Bass Publishers. Hamilton, A. 1997. Management by projects. Dublin. Thomas Telford House. Hambrick, D.C., Davison, S.C., Snell, S.A. & Snow, C.C. 1993. When groups consists of multiple nationalities: toward a new understanding of the implications, working paper, International Consortium for Executive Development Research, Lexington, MA. Hamilton, A. 2004. Handbook of Project Management procedures. London. Thomas Telford. Haslam, S.A. 2001. Psychology in organizations. SAGE Publications. Great Britain. Iles, P. & Hayers, P.K. 1997. Managing diversity in transnational project teams. A tentative model and case study. Journal of Managerial Psychology, 12(2), 95-117. International Cost Engineering Council. 2009. What are cost engineering, quantity surveying and project management? [online]. Available from: http://www.icoste.org/whatare.htm> [Accessed: 19 August 2009]. Ivancevich, J.M. & Matteson, M.T. 1996. Organizational behaviour and management. 4th edition. Irvin. USA. Kerzner, H. 2006. Project Management. 8th edition. United States of America. John Wiley & Sons, Inc.


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Kloppenborg, T.J. & Opfer, W.A. 2000. Forty years of project management research: trends, interpretations and predictions. In Project Management Institute. Project Management research at the turn of the millennium. Proceedings of the PMI research conference 2000. Pennsylvania: Project Management Institute, p.41-59 Jiang, J., Klein, G. & Margulis, S. 1998. Important behavioural skills for IS project managers: the judgements of experienced IS professionals, Project Management Journal, 29(1), 39-43. Lee, D.R. & Sweeney, P.J. 2001. An assessment of influence tactics used by project managers. Engineering management Journal, 13(2), June, 16-24. Lock, D. 1987. Project Management handbook. Great Britain. Gower Technical press. Macdonald, R. 2005. The entrepreneur and the Project Manager: mutual skills defined. Journal of contemporary management, 2, 180-186. Morrison, J.M & Brown, C.J. & Smit, E.v.d.M.. 2006. A supportive organizational culture for project management in matrix organizations: A theoretical perspective. South African Journal of Business Management, 37(4), 39-54. Mulcahy, R. 2005. PMP Exam Prep. 3rd edition. USA. RMC Publications. Orr, A.D. 2004. Advanced Project Managing. A complete guide to the key processes, models and techniques. London. Kogan Page Ltd. Pacelli, L. 2004. The project advisor. 18 major project screw-ups and how to cut them. USA. Prentice Hall. Pettersen, N. 1991. Selecting project managers: an integrate list of predictors, Project Management Journal, 22(2), 21-26. Posner, B.Z. 1987. What it takes to be a good project managers, Project Management Journal, 18(1), 51-54. Project Management Institute. 2004. Project Management body of knowledge. Rad, P.F. & Levin, G. 2006. Project Management Maturity Assessment. AACE International Transactions. th Robbins, S.P. 1996. Organizational behaviour. 7 edition. Prentice Hall. New Jersey. Romahn, E. & Hartman, F. 1999. Trust: A tool for project managers. Proceedings of the 30th Annual Project Management Institute 1999 Seminars & Symposium, Philadelphia, USA. Presented 10-16 October. Schindler, P.L. & Thomas, C.C. 1993. The structure of interpersonal trust in the workplace. Psychological reports. October, 563-73. Shenhar, A.J. 2008. Unleashing the power of Project Management. Industrial Management, 50(1), 14-19, Jan/ Feb. Snell, S.A., Davison, S.C., Hambrick, D.C. & Snow, C.C. 1993. Human resource challenges in the development of transnational teams, working paper, International Consortium for Executive Development Research, Lexington, MA.

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Snow, C.C., Davison, S.C., Snell, S.A. & Hambrick, D.C. 1996. ‘Use transnational teams to globalize your company.’ Organizational Dynamics. Steward, T.A. 1995. Planning a career in a world without managers, Fortune, 72-77, 20 March. Teplitz, C.J. 1993. Education in Project Management at PMI ‘92’. PM Network, June. Thamhain, H.J. 1989. Developing Project Management skills. Proc. Project Management Institute (PMI) Seminar/Symposium, Altanta, 652659, October. Thamhain, H.J. 1991. Developing project management skills, Project Management Journal, 22(3), 39-44. Trebilcock, B. 2007. Changing face of Project Management. Modern Materials handling, 40-45, June. st Turk, W. 2007. 21 century Project Management competencies. Defense AT & L., p. 22-25, January-February. Wakasugi, T. 1986. A model program for project management training suited to Japanese conditions. Project Management Journal, 17(1), p. 83-89, March. Ward, G.G.F. 1992. Education and training of project managers. Proc 11th International Project Management Association (INTERNET) World Congress on Project Management, Florance, Italy, p.715-724, June. Webb, A. 1994. Managing innovative projects. London. Chapman & Hall. Whittaker, R. 1995. Project Management in the process industries. England. John Wiley & Sons Wirth, I. 1989. The Project Manager’s profile: Field data and analysis. Proc project Management Institute (PMI) Seminar/Symposium, Atlanta, 666-678, October. Wirth, I. 1992. Project Management education: current issues and future trends. International Journal of Project Management, 10(1), p.49-54, February. Wirth, I. 1995. Expanding the scope of project management: financial engineering and financial product development. Prosjekt Ledelse, February. Wirth, I. 1995. Project management and cost control in theatrical production. Cost Engineering, 37(9), September. Wirth, I. 1996. How generic and how industry-specific is the project management profession? International Journal of Project Management, 14(1), p.7-11. Zack, J.G. 2004. Project management in crises. International Cost th Engineering Council (ICEC) 4 World Congress. 17-21 April. Cape Town South Africa. Zimmerer, T. & Yasin, M. 1998. A leadership profile of American project managers, Project Management Journal, 29(1), p. 31-38.


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Zwilkael, O. & Bar-Yoseph, B.A. 2003. Improving the capabilities of project team management using the Gestalt cycle of experience. Team performance management, 10 (7), p. 137-144.

SACQSP2009-05

INFORMATION AND COMMUNICATION TECHNOLOGY

EDUCATION WITHIN SOUTH AFRICAN BUILT

ENVIRONMENT SCHOOLS

A.O.U. Ozumba1 and W.M.W. Shakantu2 1

School of Construction Economics and Management, EBE, University of the Witwatersrand Johannesburg, South Africa 2 Department of Construction Management, EBEIT, Nelson Mandela Metropolitan University, Port Elizabeth, South Africa

Abstract The purpose of this paper to examine the ICT content of current curriculum in Schools of the Built Environment (BE) in South Africa. This will enable the construction of a broad picture of the current state of affairs with regards to South African Tertiary ICT education. The methodology for the paper is a purposive sample of special informative hardcopy and electronic literature on ICT education in addition to a study of curriculum from leading South African Built Environment schools, for ICT content. The results and analysis will form basis for evaluation of ICT education content. Keywords: ICT education, BE schools, construction ICT, ICT skills, built environment schools, curriculum.

PAPER WITHDRAWN BY AUTHORS

SACQSP2009-06

ENHANCING ON-SITE COMMUNICATIONS BY ADAPTATION OF MULTIMEDIA SYSTEMS: looking into the future of construction Ozumba AOU1, Shakantu WMW2 1

School of Construction Economics and Management, University of the Witwatersrand Johannesburg, [email protected] Department of Construction Management, Nelson Mandela Metropolitan University port Elizabeth, [email protected]

2

ABSTRACT Purpose of this paper This paper represents a probe into the near future of construction, looking at communication and management difficulties that can be addressed. The paper is conceptual in nature and the work presented at this stage of the research is theoretical. The purpose here is to define and describe the requirements of Information and Communication Technology (ICT) potential utility that could be adapted to enhance on-site communications using multimedia technologies. The paper sets the stage for research into current ICT innovations and developments in multimedia and visual communications that could be usefully exploited to enhance on-site communications. Design/methodology/approach The paper uses specially selected book, journal and conference publications on site management structure, communication, multimedia and ICT such as video graphics, digital animation, simulation / visualization, interactive media embedded technology, smart sensor networks, mobile computing and communication in intelligent environments, as basis for analyses and description of site information and communication flow (ICF), the problems and needs arising, and requirements for ICT potential utility in an enhanced ICF system. Findings Currently the findings are propositions as the research is ongoing and there is need for validation of the results in a test case. Nevertheless, the study so far suggests that requirements of ICT potential utility for an enhanced ICF system corresponds with the potential in latest ICT. This

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Enhancing on-site communications by adaptation of multimedia systems

indicates that there is appreciable potential utility in latest ICT for enhancing the flow and quality of information and increasing the speed and effectiveness of on-site communication through site management to operatives, while reducing the workload on the site management. Practical implications There is potential for reducing repetitive communication and the amount of time spent by site management personnel in physically transferring information to operatives. There is potential for ensuring the integrity of information in the ICF cycle. There is also potential for increased productivity and quality of work on the part of operatives through clearer understanding provided by graphic information. Value of paper The results of the analyses in this paper and the descriptions arrived at will form basis for modelling the problems in what is described here as lowlevel on-site communications; the information and communication flow cycle that includes the operative; and the requirements of ICT potential utility that is fitting to critical points in the ICF cycle. The deliberations are useful for further research work in ICT-based on-site visual communications, especially with focus on the operatives. KEYWORDS: Low-level on-site communications, Multimedia, Visual communication. 1.1 INTRODUCTION Many definitions abound on communication. Generally, communication is information transaction amongst and between people and places, objects, natural and artificial life / intelligence. Communication is also the act of conveying information between people and / or groups (TheSage, 2009). Communication is an all-important factor in construction. The construction industry is an information-demanding environment (Chen and Kamara, 2008; Beyh and Kagioglou, 2004). The entire construction process literally starts and ends with information in one form or another. In construction, proper management of information is vital for a smooth project run and client satisfaction. Construction ICT (CICT) has thoroughly emphasized communications. Thus, we see considerable research and development (R&D) effort directed at communications in construction. This is in response to perceived needs, and following the pace of developments in information and communication technology (ICT). The development of collaboration technologies, mobile wireless computing and communication in construction, distributed intelligence, and advance towards full ‘ubiquity in the site management process’ are results of ongoing efforts (Ozumba and Shakantu, 2008a).

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However, communications in construction is a vast area. Each aspect of it is equally important and requires extensive research activity in the current effort to improve CICT. The adoption and growth of CICT has shown that unwholesome application of ICT in construction does not necessarily produce expected results (Peansupap and Walker, 2005). Neglect of seemingly less important areas of need creates more complexity. For example, unduly concentrating technology on communication at project management level leaves actual construction level communication increasingly problematic. There is need to integrate technology more at construction level communication. There is also need to give equal emphasis to actual on-site information and communication flow (ICF). Latest technologies, if harnessed, can enhance on-site communications. The employment of these technologies by way adaptation could reduce the disparity in efficiency of information and communication flow between the two levels of communication (project management and actual construction). Existing research indicates the existence of potential utility in current ICT to address lacks in this area of communication (Ozumba and Shakantu, 2008a; 2008b; Ozumba and Shakantu, 2009b). 1.2 COMMUNICATION IN CONSTRUCTION In its present understanding, communications in construction deals more with information sharing amongst project participants during planning design and construction. The extent of development in this area has produced terms such as knowledge management, information management and construction informatics (Turk, 2006). From industry guidelines on communications it is obvious that transaction of information amongst site management (SM) personnel, between project participants, site meetings, site visits by stakeholders and communications with management at the head office, has been the focus of communication in construction largely. (Building Research Establishment (BRE), n.d). This implies that low-level communication flow during actual construction receives less attention in this regard. The term ‘low-level communication’ refers to communication flowing to the final operative. It relates to information transaction between SM staff, and the actual workers at the ‘work face’ (Thomas and Riley and Messner, 2005). This refers to the trades men and labourers who carry out the final building instructions. This aspect of site communication is the focus of the paper. Communications on site, especially between operatives and site management is an area with unique issues that constantly manifest in the form of low productivity, low quality of work which affect project run time and cost, and ultimately results in poor levels of client satisfaction.

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1.2.1 Problems of on-site communications Problems in this aspect of on-site communications could arise from two areas: (a) Problems faced by site management in relaying information to site operatives, and getting feedback (b) Problems faced by site operatives in receiving information and giving required feedback. Site management needs to communicate data and instructions clearly to site operatives using the shortest possible route and time and obtain feedback to ensure the degree of understanding on the part of the operatives. The source for feedback is direct response from operatives and information from monitoring support mechanisms. It is not possible to monitor the operatives’ reception and understanding of data and instructions fully and in real time manually. Information still changes hands a couple of times before getting to the end user. There is no provision for an information clarity check since on-site communications go through one channel. There is no way of ensuring that the original information released from the site office or by site management personnel gets to the end user in its original form, as far as content and clarity is concerned. The same problem exists in the getting feedback to site management. The site office relies on the existing communication channel for feedback as well. As such, there is no other cost and time effective way of ensuring integrity of feedback in real time. The use of a singular communication channel has the capacity of compounding problems that can occur within the ICF cycle. For instance, site management personnel experiences the obvious inability to be everywhere on site simultaneously. That is the lack of ubiquity in carrying out the task of site management fully. Stretching of site management capacity in this regard creates management blind spots and presence vacuums in the ICF cycle (Wikforss and Löfgren, 2007; Ozumba and Shakantu, 2008b). Present day construction sites especially in emerging economies have large numbers of operatives with varying levels of literacy, comprehension and verbal communication ability. This immediately creates a problem for on-site communications (Ozumba and Shakantu, 2008a). The operative needs to receive information from SM within the shortest possible time. The information needs to be precise and very clear. Moreover, the operative must understand the data and instructions as intended from the original source. Regardless of the number of relays the information passes through, it must get to the operative in clear form without jeopardizing

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integrity of the content. The form must be understandable and executable with minimal delay (allowing for human response time differences). The operative should have the capacity to give clear feedback if required. The ICF system ought to have capacity for passive and active feedback delivery to SM. In communicating different sets of individuals on site through existing systems, the issues of content integrity, content clarity, and comprehension would pose appreciable difficulties for site management. 1.2.2 ICT in on-site communications Information management (IM) is highly essential in present day construction. Construction and its participants are not always located comfortably and in relation to each other. Implementing ICT is not completely easy in many cases and sometimes brings up some unforeseen or undesirable results. Actual construction environment involves a lot of mobility, which is dynamic and continuously increasing throughout the process. Provision of efficient communication means for mobile workers with good information transmission speed, requires an innovative approach. Information and communication mechanisms provided should have mobility inbuilt in them (Wikforss and Löfgren, 2007; Beyh and Kagioglou, 2004; Ahsan and El-Hamalawi and Bouchlaghem and Ahmad, 2007; CISCO SYSTEMS, 2006). Most on-site communications still follow physical contact with minimal use of ICT. Most common is the use of two-way radios (walkie-talkie). Application of information and communication technologies in the site management process (SMP) does not seem to accommodate the site operatives fully. Equipping every operative on the job site with regards to ICT is also a very expensive venture to undertake. This is especially in relation to the nature of construction projects, which are location, budget and time specific. In addition, the problem is escalated by the varying levels of literacy amongst operatives in present day construction sites (Ozumba and Shakantu, 2008a). Providing technology more for communication amongst field officers and with the site office leaves the rest of the communication process to verbal relays. In effect, the information transaction (to and from the operative), is not enhanced completely. This also means that there is very little closing of the communication gap between the operative and site office. With adaptation of more ICT, these growing problems could be addressed effectively. Poor ICT implementation results in part from general resistance towards introduction of ICT in construction. This resistance is due to perceived and known technical shortcomings and other non-technical issues. A higher percentage of ICT is designed for office use. In their original form of use, they are quite formal and impractical most of the time, for deployment in on-site communications. Requirements for technology that will give

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effective on-site communications would be ICT tools that have more mobility, user-friendliness and an appreciable degree of informality. Such ICT tools would work better and accommodate the operatives more. There is need for effectiveness, affordability and ease of use in communication support systems on the job site. Informal communication and visual communication systems work very well in on-site situations with operatives. Wireless communication, digital imagery and computer modeling give farreaching advantages over the problems of information communication on site (Beyh and Kagioglou, 2004; Wikforss and Löfgren, 2007; Ozumba and Shakantu, 2009b). 1.3 VISUAL COMMUNICATIONS AND MULTIMEDIA TECHNOLOGIES The spontaneity and natural appeal of visual communication overcomes the barriers of comprehension and articulation for the operative. Moreover, when it is technology mediated through adaptation of ICT, it results in cost effective, enhanced low-level on-site communication. Visual communication is not new to construction since most of the information that flows within the construction site are of one graphic form or another. In a research conducted at Newcastle University, graphic information was found to be the second most used information format on construction sites (Chen and Kamara, 2008). The argument of this paper is that: 1 Information still gets interpreted a number of times before reaching the final worker at the work face, depending on the level of work and levels of management. 2 There are no secondary checks for the integrity of information between the site office and the actual worker 3 Verbal translation of information affects integrity in subtle ways, being subject to individual bias and expressions of same data. 4 The final interpretation depends on the difference in the levels of comprehension of the individual worker and field officer / foreman or ganger. Therefore, the use of current developments in multimedia and visual communication technologies, if adapted, could enhance this aspect of onsite communications. Multimedia involves other forms of communication and information representation. It also provides the enhancement of quality through combining and integrating various media forms. “Multimedia is referred to ideally as the use of computers to present text, graphics, video, animation, and sound in an integrated way” (Hirakawa, 2006). Using the taxonomy by (Heller and Martin, 1995 in Heller and Martin and Haneef and Gievska-Krliu, 2001), multimedia involves type, expression and

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context. The appropriate media type in this case would have a higher percentage of motion, graphics and sound, in this order of priority. The media expression required would be more of concrete and representational nature. The media context has to be for the audience and area of work with as much interactivity as possible, having the lowest level of complexity to make it accessible and useful to the target user population. In addition, the system must be completely user-friendly, having appeal in both the design and interface. These conditions ensure acceptability and effectiveness of information to end user without jeopardizing integrity of information (Ozumba and Shakantu, 2009b). There is a broad spectrum of multimedia technologies in constant development currently. The technologies have potential utility for on-site communication. Technologies include, but are not limited to Scalable Multicast Communication, 3D Computer Graphics, Object Reconstruction and Geometric Modeling, Secure Access: Biometric Person Identification, Joint Audio-Video Processing, Digital Speech and Audio Processing, Video Object Segmentation and Tracking, Digital Video Streaming for Multimedia Communication, (Tekalp, Aksun, Civanlar, Sunay, Erdogan, Erzin, Ozkasap, Yemez, Demir, n.d.). Adapting utility in these latest ICT would create possibilities in the construction environment. The rich use of visual communication (especially digital 3D graphics, video and animation) through multimedia technology would have an appreciable positive impact on communications within site. This assertion begs the question, ‘how can current ICT developments in visual communication and multimedia be adapted to enhance low-level onsite communications?’ 1.4 METHODOLOGY This is a conceptual paper, which is part of a wider research agenda. This paper is a first step in the development of detailed adaptation frameworks and models that will employ current technologies to improve on-site communications. For the purpose of this paper, the possibility of adapting potential utility in latest ICT is explored firstly by outlining the needs of such a system. This is done bearing in mind known features in latest ICT that have fitting potential utility (the paper relies on previous research work along this path). The major focus of the paper is to describe the requirements and outline the needs of a testable system framework that will use rich visual communications through multimedia systems in intelligent / semi intelligent construction site environments. The description is based on knowledge from previous research work referred to elsewhere in this paper and a purposive sample of literature within the subject area. Known features in technologies such as digital video, graphics and animation, simulation / visualization, interactive media, embedded technology and smart sensor networks, using mobile computing and communication are considered.

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A typical site information flow situation and various needs are described and analysed. Issues raised are further analysed in order to produce requirements for potential solutions based on known technologies. In the discussion that follows, critical areas are further examined and their requirements for enhancing low-level communications are outlined. The nature of ICT potential utility required is discussed, setting the stage for further research. 1.4.1 Investigating the problem: Information and Communication Flow (ICF) between Site Management (SM) office and operative The paper considers a typical situation, for a medium to large construction, using the matrix structure, which is common on construction sites due to ease in setting up and adjustment in the project execution cycle. For each site management process (SMP), the levels of management determine the distance between the site office and the operative during construction (Rowling, 2001; Kuprenas, 2002; Hendrickson, 2003). However, you can expect to have a communication sequence / order along the following format: Site office – Supervisors in the field – foremen – charge hands and gangers – operatives. For a completion of the cycle, information naturally flows along the same route back to the site office. 1.4.2 Analysis of the problem Based on problems of on-site communications as discussed earlier and analysis of relationships in communication sequence, the following needs have been highlighted: (a) General enhancement ICF (b) Ensuring integrity of information in the cycle (c) Improving quality of feedback (d) Monitoring quality of ICF through the SM structure in real-time, and (e) Improving the quality of information received by the operative. 1.4.3 Outlining the requirements for potential solutions to the issues raised The following are descriptions of requirements for potential solutions derived by analysing the issues arising from the needs highlighted:

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Enhancement of ICF will require that SM have the ability to relay information directly to the last point in the chain of command. This flow should be simultaneous with communication through the regular channel. Site office controls what information and just how much goes through this route. Depending on the pattern, the regular communication channel could begin to play a confirmatory role in many instances. Ensuring integrity of information requires communication of information to end user in its original form, as intended. In this case, it also means direct relay of necessary feedback from the work location to the site office without distortion. Improving quality of feedback and effectiveness of information received for the operative; this requires the enrichment of the existing verbal communication mode with visual communication in a combined media delivery environment. It would also require some level of interactivity based on a graphic user interface with high visual communication capacity. Monitoring the quality of ICF through the SM structure requires the use of systems that have the capacity to record and transmit combined media information, even as they relay the same at a particular location. The system of communication to the operatives must also incorporate a visual feedback system that can relay information back to site office. In addition there is need to apply the concept of intelligent site environment by the use of smart sensor networks and wireless mobile computing. With a distributed data collection system, workers can be tracked through visual and other sensor nodes in the network. Moreover mobile phones and handheld devices in use by workers on site can be patched through the site intranet. Depending on the media capacity of each phone, text graphics, audio or video, or any combination of these could also be sent to relevant end user. 1.5 DISCUSSION Considering the requirements above, the most critical areas in ICF sequence are the extreme nodes, namely the site office and operative respectively. Through analysis and description of requirements, their respective needs have been determined as follows: Site office – 1. Needs to relay visual information directly to operative 2. Needs to receive response from operative (if desired)

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3. Needs to receive passive feedback on operative’s response to information relayed 4. Needs to track operative’s activity at work face in relation to information relayed 5. Needs to communicate information simultaneously through regular channel 6. Needs to monitor the correlation of information received through both channels Operative – 1. Needs to receive information in multimedia form with enriched visual content 2. Needs to portable and mountable visual ICF terminals 3. Needs instant notification of new relevant information 4. Needs interactive access to information 5. Needs capacity to use mobile phones as secondary route 6. Needs capacity to give direct feedback to site office 7. Needs to visualise information for better comprehension and hence effectiveness 8. Needs to be aware of management presence throughout the ICF Considering the outlined needs, it becomes apparent that a rich combination of different forms of media would be required in the ICF within an effective visual communication environment. This would be the most appropriate framework for delivering the requirements. Emphasis on visual communication springs from the need to give the operative information that he can comprehend and act upon in the shortest possible time. This will enhance low-level on-site communications. Three-dimensional graphics and moving pictures (digital video and animation), used in an intelligent interactive environment has the potential to achieve the desired results. This description refers to a high quality visual communication system housed in multimedia communication network on-site. In addition, combining the system described with other mobile technologies as part of site communications intranet, would open up more possibilities. 1.6 CONCLUSION The solution described in this paper is a hybrid system that will improve onsite communication by harnessing potential utility in current ICT. This potential utility is found in relevant current innovations in ICT. The developments would be in the areas of multimedia, visual communication (digital video and animations), mobile computing wireless and smart sensor networks.

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Postulations made by the paper still need to be tested. There is need for more investigation into the precise nature of low-level on-site communication. However, the match between requirements of potential solutions and features in latest ICT strongly suggests the availability of ICT potential utility for improving on-site communications. The needful steps are: (a) To study the latest information and communication technologies (ICTs) for relevant features (b) Study ways of adapting them (c) Model adaptations for individual ICTs (d) Model framework for system adaptations (e) Subject models to testing the next areas of focus for this ongoing research would be; development of models through further investigations of the site ICF cycle, data on relevant latest ICT potential utility and areas of adaptation. In conclusion, It would be important also to build data on potential utility in latest ICT generally and their possible adaptations in all aspects of construction. 1.7 REFERENCES Ahsan, S, and El-Hamalawi, A, and Bouchlaghem, D and Ahmad, S. (2007) Mobile Technologies for Improved Collaboration on Construction Sites. ARCHITECTURAL ENGINEERING AND DESIGN MANAGEMENT [online] Vol. 3, Number 4, p. 257–272. Available at: http://www.ingentaconnect.com/content/earthscan/aedm/2007/00000003/0 0000004/art00005 [Accessed 10 March 2009]. Beyh S and Kagioglou M (2004) Construction sites communications towards the integration of IP telephony. ITcon [online] Vol. 9, August. p. 325-344. Available at: http://www.itcon.org/2004/23 [Accessed 20 February 2009]. Building Research Establishment (n.d.) BRE guidance on construction site [online] Available at: http://projects.bre.co.uk/site_communications/pdf/communicationguidance.pdf [Accessed 20 February 2009]. CISCO SYSTEMS (2006) CISCO ENABLES UK HOUSE BUILDER TO TRANSFORM COMMUNICATIONS FOR CONSTRUCTION SITE STAFF, CALA Group Ltd Case Study [online] Available at: http://www.cisco.com/en/US/prod/collateral/voicesw/ps6788/vcallcon/ps556 /prod_case_study0900aecd80706999.pdf [Accessed 20 February 2009].

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Chen, Y, and Kamara, K. (2008) The Mechanisms of Information Communication on Construction Sites. FORUM Ejournal [online] Vol.8, June. p.1-32. Newcastle University. Available at: http://research.ncl.ac.uk/forum/v8i1/information%20communication.pdf [Accessed 20 February 2009]. Heller, R, S, and Martin, C, D, and Haneef, N, and Sonja Glevska-Krliu, S. (2001) Using a Theoretical Multimedia Taxonomy Framework. ACM Journal of Educational Resources in Computing [online] Vol. 1, No. 1, Spring. Available at: http://0delivery.acm.org.innopac.wits.ac.za/10.1145/380000/376701/a6 heller.pdf?key1=376701&key2=3849775321&coll=GUIDE&dl=GUIDE&CFI D=821498&CFTOKEN=24229448 [Accessed 28 February 2009]. Hendrickson, C. (2003) Project Management for Construction, Fundamental Concepts for Owners, Engineers, Architects and Builders. Version 2.1. [online] Pittsburgh, Carnegie Mellon University. Available at: http://pmbook.ce.cmu.edu/index.html [Accessed 6 July 2008] Kuprenas, J, A. (2003) Implementation and performance of a matrix organization structure. International Journal of Project Management [online] January, Vol. 21, Issue 1, p 51-62. Elsevier Science Ltd. Available at: http://www.linkinghub.elsevier.com/retrieve/pii/S0263786301000655 [Accessed 6 July 2008] Masahito Hirakawa, M. (2006) From MultiMedia to UniversalMedia. International Journal of Computational Science and Engineering [online] Vol. 2, Issue 5/6, August. p.317-325. Available at: http://0portal.acm.org.innopac.wits.ac.za/citation.cfm?id=1357717.1357726&jmp= abstract&coll=GUIDE&dl=GUIDE&CFID=821498&CFTOKEN=24229448#a bstract [Accessed 28 February 2009]. Ozumba, A, O, U. and Shakantu, W, M. (2008a) IMPROVING SITE MANAGEMENT PROCESS THROUGH ICT. Proceedings: CIDB Postgraduate Conference, Bloemfontain, 16 – 18 March [online] p. 22-31. Available at: http://www.cib2007.com/papers/CIDB2008%20Final%20Paper%20No22.p df [Accessed 5 April 2009]. Ozumba, A,O,U, and Shakantu, W,M,W. (2008b) Achieving Ubiquity in the Site Management Process through ICT. RICS COBRA 2008 Conference, Ireland, 4 – 5 September. [online] Available at: http://www.rics.org/NR/rdonlyres/98B9FD65-3A92-4EA0-894A6F913D8BF98E/0/Ozumba.pdf [Accessed 10 March 2009].

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Ozumba, A,O,U, and Shakantu, W,M,W. (2008c) Improving Materials Management through the utilization of ICT. SACQSP 2008 Inaugural Conference, Johannesburg, South Africa.

Ozumba, A,O,U, and Shakantu, W,M,W. (2009b) Balancing site information and communication technology systems with available ICT skills. Proceedings, RICS COBRA 2009 Conference, University of Cape Town, 10 – 11 September. p. 128-137. Ozumba, A,O,U, and Shakantu, W,M,W. (2009b) Information and communication technology –based application of just-in-time (JIT) to internal logistics on site. Proceedings, RICS COBRA 2009 Conference, University of Cape Town, 10 – 11 September. p. 447-461 Peansupap, V, Walker, D,H,T. (2005) Björk, B, ed. FACTORS ENABLING INFORMATION AND COMMUNICATION TECHNOLOGY DIFFUSION AND ACTUAL IMPLEMENTATION IN CONSTRUCTION ORGANISATIONS. ITcon [online] Vol. 10, June, p.193-218. Available at: http://www.itcon.org/cgi-bin/works/Show?2005_14 [Accessed 2 January 2009]. Rowlinson S. (2001) Matrix organizational structure, culture and commitment: a Hong Kong public sector case study of change. Author: Source: Construction Management and Economics [online] November, 19:7, p. 669-673. Available at: http://www.ingentaconnect.com/.../rcme//00000019/00000007/art00003/ref erences;jsessionid=64qevknl7klus.alice [Accessed 6 July 2008]. Turk, Z. (2006) Construction informatics: Definition and ontology. Advanced Engineering Informatics [online] Vol. 20, Issue 2, April. p.187-199. Elsevier. Available at: http://www.sciencedirect.com/science?_ob=MImg&_imagekey=B6X1X4JMM07B-8T&_cdi=7254&_user=1378557&_orig=search&_coverDate=04%2F30%2F2 006&_sk=999799997&view=c&wchp=dGLbVlbzSkzk&md5=c806bbeb2ed62c96fb6538737af47bce&ie=/sdarticle.pdf [Accessed 23 February 2009]. Tekalp, A, M, and Irsadi Aksun, M and Civanlar, R, and Sunay, O, and Erdogan, A, and Erzin, E, and Ozkasap, O, and Yemez, Y, and Demir, A. (n.d.) ADVANCED MULTIMEDIA COMMUNICATION SYSTEMS. College of Engineering, Koc University, ISTANBUL. Available at: http://www.srdc.metu.edu.tr/webpage/projects/hermesProject/documents/F P6_koc.PDF. [Accessed 23 February 2009].

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Thomas, H, R. and Riley, D, R. and Messner, J, I. (2005) Fundamental Principles of Site Material Management. JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT [online] July, Volume 131, Issue 7, p. 808-815. ASCE. Available at: http://web.ebscohost.com/ehost/pdf?vid=3&hid=5&sid=cc2a1dbc-597c423b-916c-0e393850f37a%40SRCSM2 [accessed 12 July 2008]. Wikforss, Ö, and Löfgren, A. (2007) Rethinking communication in construction. Björk, B-C, ed. ITcon [online] Vol. 12, p. 337-346. Available at: http://www.itcon.org/cgibin/works/Show?2007_23.content.02309 [Accessed 20 February 2009].

SACQSP2009 - 07

Investigating the Causes and Effects of

Contractor’s Non-Compliance with the

Health and Safety Regulations in South

Africa

Thevan, D1, Maduna, M2, Moodley, K3, Paruk, M4,

Othman, AAE5

School of Civil Engineering, Surveying & Construction, Faculty of Engineering, University of

KwaZulu-Natal, Durban, South Africa.

1 2 203503083 @ukzn.ac.za ; [email protected] ;

3 4

[email protected] ; [email protected] 5* Tel: 031 2602687; [email protected] or [email protected] Tel: 031 2602821

* Corresponding Author: Dr. Ayman Ahmed Ezzat Othman

ABSTRACT Purpose of this paper This paper aims to investigate the causes and effects of non-compliance with the health and safety procedures by contractors in the South African Construction Industry. Methodology Literature review is used to investigate the Health and Safety Act (H&S), policies used to promote and ensure compliance within sites, hazard and prevention methods and management systems for safe construction. A survey questionnaire is used to define the causes and effects of noncompliance with H&S procedures and determine practices on site. Interviews are conducted with two H&S officers to assess the practicality of their plans and with three H&S representatives to investigate their view towards eliminating contractor’s non-compliance with H&S procedures. Findings The study found that contractors were indeed non compliant with the H&S regulations. It is found most apparent with the labourers as they failed to use personal protective equipment provided. A point to note, however, was that mainly small construction companies did not consider H&S procedures on their sites as it was deemed unnecessary due to the size and nature of projects undertaken. Furthermore, risk assessments were not performed by

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Investigating the Causes and Effects of Contractor’s NonCompliance with the Health and Safety Regulations in South Africa

a considerable number of respondents as found in the questionnaire analysis. Research implications This research shows that compliance with the H&S regulations by South African contractors needs to be improved. It is evident that the high H&S accident statistics is owing to the negligence of those parties directly involved in the project. Practical implications The adoption of the action plan developed by this research will increase the compliance of contractor with the H&S procedures in construction sites, thus reducing sites incidents and their effects. Value This research adds valuable contribution the original body of knowledge through the development of an action plan to enforce the compliance with H&S regulations by contractors and to overcome their limitations. Keywords: Health and Safety Act, Contractors, Construction regulations, Non-compliance, incidents. 1

RESEARCH BACKGROUND AND RATIONALE

Construction is a very accident prone industry where the resulting injuries can have dire consequences. Common incidents that occur on site include falling from heights, cutting off of limbs due to mishandling of heavy equipment, objects falling from heights, electric shocks from cables, personnel being affected by demolition works, caving in of excavations, and those related to cranage and heavy-lifting machinery (Hughes & Ferrett, 2005). On one hand, workers are considered to be the cause of site accidents due to their fatigue, lack of discipline, carelessness and distractions. On the other hand, some accidents are attributed to senior management because of its ignorance, lack of training and poor communication (Laney, 1982). Smallwood (1997) stated that occupational diseases; fatalities and injuries do not only affect the person directly involved, but also affect the project risk which is manifested in increased cost of construction, damage to the environment, non-conformance to quality standards and scheduled overruns. Each member of the client, design and construction teams influences and contributes to the occupational H&S on site. They are uniquely positioned to integrate H&S into all aspects of the design and construction process (Smallwood, 1997). However, contractors predominate

Investigating the Causes and Effects of Contractor’s Non-Compliance with the Health and Safety Regulations in South Africa

71

in terms of the perceived extent to which stakeholders can contribute to H&S (Smallwood & Haupt, 2005). Because of the importance to improve the performance of the H&S practice in the South African construction industry; this paper aims to investigate the causes and effects of non-compliance with the H&S regulations by contractors in South Africa. It adds a valuable contribution to the original body of knowledge through developing an action plan that will help enable contractors to comply with H&S regulations in the South African construction industry. 2

CONTRIBUTION TO THE ORIGINAL BODY OF KNOWLEDGE

This research provides a valuable contribution to the original body of knowledge by studying the obstacles South African contractors are faced with in eliminating the high record of site accidents. The research later on proposes an action plan to help reduce the high statistics associated with negative H&S performance in this country. Costs of accidents are often overlooked by industry stakeholders and this study aims to emphasize the significant impact accidents have, not only on the project itself as direct costs but also to the economy at large through excessive claims for the Workmen’s Compensation Fund. This will create awareness to industry professionals who will thereafter improve on the H&S culture and the policies and practices adopted by them. 3

RESEARCH ORIGINALITY • • • •

4

This research enables contractors to pinpoint the flaws within site management and identify the shortcomings of their relevant health and safety plans. The research led to the development of An action plan to counteract the ineffectiveness of existing health and safety plans. Previous research has not focused on the areas of concern described in this report, i.e. contractor based. Clauses contained in the construction regulations discussed in this research have not been highlighted in construction literature previously. RESEARCH METHODOLOGY AND SAMPLING

In order to achieve the abovementioned aim a research methodology is developed to accomplish four objectives. (1) Investigating the H&S Act, policies used to promote and ensure compliance within sites, hazard and prevention methods and management systems for safe construction. This objective is achieved through literature review.

72


(2) Defining the causes and effects of non-compliance with H&S procedures and determining practices on construction site. Survey questionnaires are used to accomplish this objective. (3) Assessing the practicality of the H&S plans and investigating their view towards eliminating contractor’s non-compliance with H&S procedures. Interviews conducted with relevant professionals are used to accomplish this objective. (4) Developing an action plan for enhancing the effectiveness of contractors’ H&S plans in South Africa. Due to the nature of this research and the fact that it deals with contractors, H&S officers on construction sites, purposive sampling was employed to select the questionnaire and interview samples. The survey questionnaire sample was selected from the list of contractors who are registered as members of the Master Builders Association (MBA, 2009) at the KwaZulu-Natal chapter. The list identified 120 contractors. The researchers made use of the sample calculator (The Survey System, 2009) to determine the size of the sample to be used. Contact details of these companies have been collected and the survey questionnaire was sent to them. Structured interviews were conducted with two H&S officers and three representatives for the H&S legislation. 5.

LITERATURE REVIEW

5.1

General overview of the H&S Act 85 of 1993

The Occupational H&S Act 85 of 1993 summarises the Act as “to provide for the H&S of persons at work and for the H&S of persons in connection with the use of plant and machinery; the protection of persons other than persons at work against hazards to H&S arising out of or in connection with the activities of persons at work; to establish an advisory council for occupational H&S; and to provide for matters connected therewith.” (Occupational H&S Act and Regulations, 2006). This document encapsulates all the H&S regulations for good practice in the workplace as (Davies & Tomasin, 1990) reckon that an ideal project constitutes a hundred percent performance on time, cost and quality with zero injuries or disease to employees The H&S outlines the standards which companies and factories are required to maintain and be monitored against. This act provides the companies and stakeholders with fundamental principles which must be achieved on sites by contractors and thus H&S Plan becomes key to the protection of workers against hazards and potential risk of accidents and injuries even though the law has been the subject of debate (Smallwood et al., 2009).


5.2

73

Clauses pertinent to the study

The focus clauses of the study are: • Supervision: Clause 6(6) • Risk assessment: Clause (7.1) and; • Fall protection plan: Clause 8 5.3

The roles of contractor, sub-contractor and health and safety officer

Construction Regulations put into place by the Minister of Labour governs the actions and responsibilities of all those working on construction sites in South Africa. Contractors and safety officers are needed to address issues of H&S according to this schedule in the execution of their duties and management is legally required to enforce H&S regulations to ensure safety for their workers (Geminiani and Smallwood, 2008). 5.3.1 Main contractors are responsible for the following in the execution of their duties (Occupational H&S Act and Regulations, 2006). • Provide all contractors appointed with relevant sections of the H&S specifications and appropriate resources when changes are made to design or construction. • Ensure that each contract implements and maintains the H&S plan and that periodic audits are done at least once a month. • Stop any work by contractor which is not in accordance with the H&S plan. • Ensure that every contractor is registered with a compensation fund or a licensed insurer. • Ensure that provision has been made by all contractors in their tenders for the cost of H&S. • Discuss and negotiate contents of the H&S plan with the contractor and have a copy readily available. • Ensure that an H&S file is opened and kept on site and is readily available and shall hand over a consolidated H&S file to client upon completion of the work. • Ensure that the contractor to be appointed has the necessary competencies and resources. Even though the duties and responsibilities of safety officers are not specified in the H&S Act Levitt & Samelson (1994) describes them as being encouraging management to adopt effective ways to keep the workforce safe and healthy in the execution of work on sites. Therefore safety officers merely advise, guide, monitor and support the decisions made by top management with regard to site safety

74


5.3.2 Activities executed by safety professionals toward achieving the abovementioned goal include (Levitt & Samelson, 1994): • Introduction of H&S considerations into planning at all stages of the project construction cycle. • Working with all levels from top management to labourers to ensure that everyone is in promotion of H&S plan. • Development of orientation and training programs and encouraging people at all levels to participate in appropriate training courses. • Advising on record-keeping systems for use by management to monitor site supervisors for H&S matters as arise. • Monitor themselves or help those responsible monitor the insurance claims and reserves. • Assist in monitoring of H&S performance through job inspections, work procedure analysis, near-miss, accident and injury record analyses, safe behaviour observation and other methods adopted on that specific site. 5.4

Falls and fall protection

The construction industry generates a disproportionate number of fatalities, injuries and disease relative to any other industry in South Africa. These occur as a result of accidents due to the ever present hazards on construction sites (Smallwood, 2004). This is because construction work involves numerous occupational risks, such as working at heights, on excavations, work lifting of materials and so on, which are specific to this type of industry (López-Valcárcel, 2001). Davies and Tomasin (1990) identifies the following as leading accidents on sites; falls, stepping or striking against objects, lifting and carrying, machinery, electricity, transport and fires and explosions. 5.4.1 Types of fall accidents Many authors agree that falls is by far the main cause of incidents which includes people falling from heights; people falling on the same level and plant and material falling and striking them; as well as people falling into open trenches and shafts (Occupational Safety and Health Series, 1979; Davies & Tomasin, 1990; Holt, 2001; Sa, 2005; Ghule, 2008). Ghule (2008) indicated that the majority of the falls in the construction industry occur from nd rd roofs, with ladders ranking 2 and scaffolds 3 . 5.4.2 Fall-related deaths and injuries According to the ILO, as stated in Construction H&S in South AfricaStatus and Recommendations (2009), ‘one in every six work-related fatal accidents occurs on a construction site’. Davies & Tomasin (1990) comment that each year 70-80% of all fatalities and 35-40% of all injuries on construction sites are attributable to falls. Federated Employers' Mutual


75

Assurance Company Limited (FEMA) (as cited in Construction H&S in South Africa-Status and Recommendations, 2009), stated that the 2nd highest number off claims were for injuries caused by fall onto different levels. Furthermore, the FEMA recognised falls on to different levels as the third highest cause of fatalities in the construction industry which clearly indicates the significant contribution falls to these appalling statistics in the South African industry. 5.4.3 Causes of fall incidents Labourers are prompted to make the right decision to the use of their personal protective equipment (PPE) at all times but this is not heeded. They view PPE as uncomfortable and unnecessary due to the expected short exposure time. Furthermore, they hold that it decreases their productivity as the equipment is sometimes restrictive which proves detrimental if they slip, trip and fall from heights (Holt, 2001; Sa, 2005). In a study of the causes of accidents on construction sites by Abdul Hamid, et al. (2008), it was found that the following were the dominating cause of accidents: • Workers’ negligence and failure to obey work procedures as well as incorrect work procedures. • Nature of work being performed (work at heights) and equipment without safety devices. • Poor site management and lack of workers’ knowledge and skills. • Negative attitude of workers coupled with failure to use their PPE. 5.4.4 Fall protection Propositions in the ILO Occupational H&S Series (1979) suggest safety harnesses, catch nets, scaffolding and opening and edges techniques amongst others, which if followed correctly serve as prevention mechanisms to injuries. 5.5

Methods used to promote and ensure compliance

Although it cannot be quantified, it can be inferred that the Construction regulations have had a positive impact on reducing H&S accidents (Smallwood et al., 2009). Contractors and safety officers should adopt and implement the provisions stated in the regulations to effectively eradicate the occurrences of fatalities and injuries on their sites. The following methods are some of the ways in which contractors and safety officers can use to further enhance their control procedures (IRCA, 2003): • Risk Assessments for activity – Site specific. • Method statement. • Safe working Procedure. • H&S inductions before proceeding to site and toolbox talks • Encourage participation of safety strategies.

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5.6


Management systems for safe construction

5.6.1 Risk Management Quality management is a vital component of risk management and all four components become an important business management tool. This is commonly known as SHEQ/QESH management (IRCA, 2003). At most large enterprises the following Management systems are in place: ISO 9001 [Quality Management Systems], ISO 1400 [Environmental Management Systems] and Regulations. Together these form a formidable trio that is used to prevent incidents from happening. 5.7 H&S Training H&S training is a very important aspect of the H&S programme and it is also a legal requirement according to Act 85 of the 1993 H&S regulations for employers to provide such training. Training is required for employees at various levels during different stages of their careers or the project life cycle depending on the nature of the job that they will be undertaking. Training is required on recruitment, at induction or on being exposed to new or increased risks on site. Additional training may be required following a single or series of near misses, the introduction of new legislation, the issuing of an enforcement notice or as a result of a risk assessment or safety audit (Hughes & Ferrett, 2005). There are several different types of training, these include induction training, job specific training, supervisory and management training and specialist training. Risk assessment, fall protection plan training and supervision training are all legal requirements and fall within the scope of the aforementioned types of training. From the above, it is apparent that training is a vital aspect of any H&S programme. It is important to note that such programmes need to be constantly reviewed, updated and the methods to deliver training monitored in order to ensure that they are effective. 6

CAUSES OF NON-COMPLIANCE WITH THE H&S REGULATIONS BY CONTRACTORS

Literature review identified the causes of non-compliance with H&S regulations by contractor as follows, see Table (1).


77

Table (1) Causes of non-compliance with the H&S regulations by contractors No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

20

21

Cause

Reference

Loss of concentration of worker Refusal to wear PPE by worker Workers' belief that PPE is unnecessary Incorrect use of PPE Old equipment & PPE Failure to obey work procedures Nature of the work(work at high elevation) Equipment without safety devices Poor site management Harsh work environment Low level of workers knowledge and skills Attitude of labour Excessive noise Poor illumination Lack of proper training Deficient enforcement of safety Unsafe methods or sequencing of activities Lack of use of standardised safety devices Work situation

Holt (2001)

19.1 Human error 19.2 Technical failure 19.3 Inadequate information 19.4 Personal deviation from safe practices 19.5 Disturbance in material flow Environment 20.1 Intercepting of parallel activities 20.2 Bad housekeeping 20.3 Disturbance from the environment Safety system includes: 21.1 Failure of active/passive safety system 21.2 Inadequate guarding 21.3 Insufficient PPE

Sa (2005) Abdul Hamid et al. (2008)

Ghule (2008) Sa et al. (2009) Kitumbo and Kirenga (2001)

Figure (1) shows the results of the survey questionnaires completed by contractors and H&S officers with regard to the causes of non-compliance with the H&S construction regulations in KwaZulu-Natal:

78

Investigating the Causes and Effects of Contractor’s Non Compliance with the Health and Safety Regulations in South Africa

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

3.7 2.57

2.43

3 1.43

Falls from heights

Cutting off of limbs

Electric shocks

Other

Stepping or striking against objects

Figure (1) Responses of the causes of non-compliance with the H&S regulations

Analysis of the interview carried out with H&S officer revealed that he disagreed with these findings. The interviewee stated that the problem lies with top management. It is due to their double standards that management disregards safety aspects. Deadlines and productivity take priority over implementation of proper safety procedures at all times and supervisors fail to train their employees and make sure they fully understand the risks present on site. 7

EFFECTS OF NON-COMPLIANCE REGULATIONS BY CONTRACTORS

WITH

THE

H&S

The literature review revealed the following as the effects of non-compliance with H&S regulations by contractor, see table (2). Table (2) Effects of non-compliance with the H&S regulations by contractors No. 1

Effects

Reference

Direct Costs 1.1 physical injury/fatality to persons 1.2 damage to property

Abdul Hamid et al. (2008)

1.3 1.4 1.5 1.6

2

Workmen’s' compensation Liability insurance premiums The lowered moral of supervisors & workers Attractiveness to client as a result of perceived holistic quality 1.7 Socio-economic loss to families of the deceased/ injured. 1.8 Money paid annually to victims of work related accidents 1.9 Public liability insurances Indirect Costs borne by contractors

Smallwood (2002, Levitt & Samelson, 1993)

Geminiani and Smallwood (2008) Smallwood and

Investigating the Causes and Effects of Contractor’s Non-Compliance with the Health and Safety Regulations in South Africa 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13

reduced productivity by the returned worker/(s) & the workforce Clean up costs Replacement costs lost worker Costs of Delays Costs of supervision Time lost Costs related to rescheduling Costs of transportation for injured party Wages paid for unproductive injured party Damage to and loss of materials, plant and equipment Damage to the environment Human suffering by the injured and his/her family Uninsured cost which are invariably included in the contractors' cost structure

79

Haupt (2006 cited Hinze, 1997)

Smallwood, J.J.(1995)

Smallwood and Haupt (2006 cited Davies and Tomasin, 1996) agreed that accidents can marginalize the project team’s efforts at achieve the project deliverables on time and within budget due to the direct and indirect costs associated with accidents. It can also lead to substantial bad publicity, which may tarnish the name of the client and strain relations among project stakeholders. Figure (2) shows the results of the survey questionnaires completed by contractors and H&S officers with regard to the effects of noncompliance to the H&S construction regulations in KwaZulu-Natal: non‐c onformanc e reports 6% P rofes s ional fees 11% L os s of produc tivity by injured party 11%

Ins uranc es 11% public ity 5% repair of Damages 14%

litigation los s of 3% produc tivity 11% replac ement of public liability injured party 3% c ompens ation 14% 11% Figure (2) Responses of the effects of non-compliance with the H&S regulations

On interview basis with the relevant professionals, it is found that some irrecoverable costs exist. These may not be a proven cost or be quantifiable; however time may reveal that these unaccounted costs could prove significant. On analysis of the interview, it has been noted that the

80


Department of labour (DoL) are at times complacent with regard to the carrying out of thorough site inspections. 8.

ACTION PLAN FOR COMPLYING TO H&S REGULATIONS (APCHSR)

8.1 Definition The action plan for complying to H&S regulations (hereinafter referred to as "the action plan" or the “APCHSR") developed by the authors is an innovative tool to escalate the contractors’ awareness and increase their compliance with the H&S regulations in the South African construction industry. 8.2

The Need of the action plan

The need for the action plan stems from the necessity to set the rules and establish the grounds that enable contractors to comply with the H&S regulations in the South African construction industry. The action plan is an essential tool for reducing current accident and fatality statistics on construction sites. In addition, it will increase the awareness of the overall impact of accidents and incidents on the project and the economy at large. Furthermore, it will help ensuring the adoption and application by top management and employees towards improving the H&S status in construction sites.


8.3 Description of the action plan The action plan consists of 5 ongoing processes, namely, problem definition, objectives establishment, action development, action implementation and evaluation and feedback, see figure (3). 8.3.1 Problem Definition This activity aims to define the problems that hinder construction companies from adhering to H&S regulations. A team to identify these problems has to be formed. Brainstorming technique could be used for achieving the aim of this activity. Top management support is essential for approving the timeframe and resources required for completing this activity. 8.3.2 Objectives Establishment Within this activity, the objectives for improving the H&S practice in South Africa through assisting contractors to overcome the identified problems have to be established. Input from study team is of prime importance. Top management support and consent will facilitate the adoption and implementation of the study results.

Figure (3) Action Plan

8.3.3 Action Development After the problems are identified and the objectives are established, it is essential that study team develop the action plan required. Inputs from different study team members will help develop creative ideas that will achieve the established objectives. Brainstorming sessions and evaluation techniques such as (Simple Multi Attribute Rating Techniques) have to be used to achieve proper decision.

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8.3.4 Action Implementation When the team develops an action plan, plans for implementation have to be developed. This may include training employees; explain the strategies required to improve performance. 8.3.5 Evaluation and Feedback It is imperative to evaluate the performance of action taken in order to take any corrective action required. Feeding back the study team and top management with the learned lesson will help improve the action plane in future studies for adhering to H&S regulations. 8.4 Benefits and Limitations of the action plan Adoption and implementation of the developed action plan will help improving worker safety attitude and elimination of double standards of management. In addition, it will help in reducing overall site incidents and accidents. Furthermore the action plan will reduce the direct and indirect costs of incidents and accidents. On the other hand, the action plan will be ineffective if top management and employees are not willing to cooperate and adopt the developed tool. 9

CONCLUSIONS AND RECOMMENDATIONS

Health and Safety is one of the greatest challenges that face the South African Construction industry. Although a number of acts and regulations are in place, the number of site incidents increases over the years. Through literature review, survey questionnaire and interviews, the research identified the different causes and effects of non-compliance to the H&S regulation in construction sites. The research recommendations are directed to labour, management and Government. • Construction companies are responsible for educating their labour force and increasing their awareness of the causes and effects of site incidents on themselves, families, the project and the community at large. • Construction companies should take a more proactive approach towards implementing the H&S plans on site through integrating H&S procedures into overall project management plans. • Construction companies should appoint safety officers to continuously find and evaluate the shortcomings of their safety plans and re-instate new working solutions.


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• H&S plans should be thoroughly assessed at tender stage by all stakeholders as this could minimise accidents on site thereby reducing the costs significantly. • Contractors must ensure that their labour force is properly trained for their specific tasks. This will empower them to teach their peers. Furthermore contractors should continuously brief their labour force to maintain proper safety procedures on sight and this can be achieved through repetitive teaching. • Government should instate a system for checking the competence of DoL officers on a regular basis. REFERENCES Abdul Hamid, A.R., Abd Majid, M.Z., Singh, B. (2008) Causes of accidents at construction sites, Malaysian Journal of Civil Engineering, Vol 20, No.2, pp242-259 Business Directory, 2009. Definitions: http://www.businessdictionary.com/definition/action-plan.html Davies, V.J. & Tomasin, K. (1990), Construction Safety Handbook, Thomas Telford, London. Geminiani, F. and Smallwood, J.J. (2008) A critical review of the effectiveness of the Department of Labour (DoL) Occupational Health and Safety (OH&S) Inspectorate in relation to the construction industry in South Africa. Research Articles, Vol 15. No.2. pp5-28. Ghule, S. (2008) Suggested practices for preventing construction worker falls. MSc in Building Construction, Thesis, University of Florida. Holt, A.J., (2001) Principles of Construction Safety. Blackwell Publishing, Oxford. Hughes, P. and Ferrett, E. (2005) Introduction to Health and Safety at Work, 2nd ed, Elsevier, Oxford. IRCA (2003) Executive Legal Liability Orientation: Occupational Health and Safety Act 85 of 1993, Randburg. Kitumbo, H.I., and Kirenga, A.P. (2001) ‘Construction industry in Tanzania’, in: African Newsletter on Occupational Health and Safety Construction and Mining, ed Lewis, P., Vol 11, No.1, Finnish Laney, J.C. (1982) Site Safety, Construction Press, Essex. Levitt, R.E. and Samelson, N.M. (1994) Construction Safety and nd Management. 2 ed, John Wiley & Sons, New York. López-Valcárcel, A. (2001) ‘Occupational safety and health in the construction work’, in African Newsletter on Occupational Health and Safety Construction and Mining, eds Lewis, P., Vol 11, No. 1, Finnish Institute of Occupational Health Topeliuksenkatu, Finland. pp 4-6 Master Builders KwaZulu-Natal.(2009).[Online] Available:www.masterbuilders.co.za (accessed July 2009)

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Occupational Health and Safety Act and Regulations 85 of 1993 (Full Version), (2006) 4th ed. LexisNexis Butterworths,Pietermaritzburg. Occupational Safety and Health Series (1979) Building Work: A compendium of Occupational Safety and Health practice, International Labour Office, Geneva. Sa, J. (2005) An investigation of fall protection systems in the roofing industry. MSc in Occupational and Environmental Safety and Health, Thesis, University of Wisconsin Whitewater. Sa, J, Seo, D.C., Choi, S.D. (2009) Comparison of risk factors for falls from height between commercial and residential roofers, Journal of Safety Research, Vol 40, pp 1-6. Smallwood, J.J. (1995) The influence of engineers on occupational health and safety. Joumal of the South African Institute of Civil Engineering. 4th Quarter. pp15-18. Smallwood, J. J. (1997) ’The role of project managers in occupational health and safety’, in Safety and Health on Construction Sites, eds Duff R.A., Jaselskis E.J. & Smith G.,CIB Working Commission 99, Gainesville, pp. 186-195. Smallwood, J. J. (2002) The influence of health and safety (H&S) culture on H&S performance. In: 18th Annual ARCOM Conference, ed Greenwood, D., Association of Researchers in Construction Management, Vol. 1, pp217-226. Smallwood, J.J. (2004) The influence of engineering designers on health and safety during construction. Journal of the South African Institution of Civil Engineering, Paper 544, Pp 2-8. Smallwood, J.J. (2005) The Construction Regulations-Are clients and designers complying? Journal of the South African Institute of Civil Engineering. Smallwood, J.J. and Haupt, T. (2005) The need for construction health and safety (H&S) and the Construction Regulations: engineers’ perceptions. Journal of the South African Institute of Civil Engineering, Vol. 47. No. 2, pp2-8. Smallwood, J.J. and Haupt, T. (2006) Impact of the South African construction regulations as perceived by project managers. Research Articles, Vol 13. No.2. pp127-144. Smallwood, J.J., Haupt, T., Shakantu, W. (2009) Construction Health & Safety in South Africa: Status & Recommendations (2009), CIDB Report. The Survey System. Sample Size Calculator [Online]. Available: www.surveysystem.com (accessed April 2009).

SACQSP2009-08

Towards Improving the Ethical Behaviour of Quantity Surveyors within the South African Construction Industry Benting, N1, Mudliar, K2, Doubell, B3, Rocke, R4, Othman, AAE5* School of Civil Engineering, Surveying & Construction, Faculty of Engineering, University of

KwaZulu-Natal, Durban, South Africa.

1 2 : [email protected] ; [email protected] ;

3 4 [email protected] ; [email protected] ;

5* [email protected] , Tel. No. 031 2602821

* Corresponding Author: Dr. Ayman Ahmed Ezzat Othman ABSTRACT Purpose of the Paper This paper aims to improve the ethical behaviour of Quantity Surveyors in the South African Construction Industry. Design/ Methodology/ Approach To achieve this aim, a research methodology is designed to accomplish three objectives. Firstly, literature is used to investigate the concept of ethics in the construction industry, the role of the Quantity Surveyors and the efficiency of their professional Codes of Conduct and how this leads to unethical behaviour. Secondly, a survey questionnaire is used to examine the perception of professional ethics within the quantity surveying profession and identify the application of the code of conduct. Finally, presenting an innovative theoretical protocol developed by the authors to improve the ethical behaviour of South African quantity surveyors. Findings This research identifies the issues brought about when implementing the code of conduct efficiently in everyday practice and how its simplification leads to ambiguous ethical interpretations within the profession.

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Towards Improving the Ethical Behaviour of Quantity Surveyors within the South African Construction Industry

Practical Implication The adoption of the protocol developed by this research will endorse a higher ethical standard through incorporating the codes of conduct effectively within the quantity surveying profession. Research Limitations The research limitations encountered was that the survey was limited to quantity surveying firms in Durban at the KwaZulu-Natal region. Future research could include surveys being done on quantity surveying firms on either a provincial scale or national scale. Originality/ Value of the Paper This paper presents an innovative protocol that incorporates the codes of conduct within the quantity surveying profession towards improving the ethical behaviour of the Quantity Surveying profession in South African. This topic has received scant attention in construction literature. The developed protocol represents a synthesis that is novel and innovative in thought and adds value to the knowledge in a manner that has not previously occurred.

Keywords Ethics, Codes of Conduct, Professional Quantity Surveyors, South African Construction Industry. 1


The construction industry, which comprises of the civil engineering and building (residential and non-residential) sectors, play a crucial role in improving the South African economy. It contributes about 35% of the total gross domestic fixed investment and employs approximately 240,000 employees (Department of Public Works, 2000; Construction Sector Industry Report, 2004). This diverse industry is responsible for the continuing development of South Africa through the efficient delivery of facilities, infrastructure and service projects that achieve the national objectives and meet the society needs. In spite of the South Africa construction industry’s capability to deliver the most innovative and complex projects, ethics within the construction industry has become the centre of attention, for many built environment professionals, with the most corrupt behaviour, ranging from collusion and bribery to fraud, being exposed by the media. Accordingly, society at large feels very disappointed and betrayed by these professionals who claim to have more specialized skills and are seen to be more competent than the simple layman. This necessitated the need that construction professionals should


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abide by the code of conduct, which states the levels of integrity that they are expected to adhere to than most other members of society (Fan, 2003). A code of conduct is established, to set the rules and regulations, not only by the corporate society but also by professional councils and associations. These codes of conduct generally aimed to ensure that the best quality and standard of performance is displayed by the quantity surveyors and also seek to achieve and maintain the public’s confidence, by proving that the ethics is of high importance to the quantity surveyors (Brooks, 1995). This paper aims to answer the question of how can the ethical behaviour of quantity surveyors within the South African Construction Industry be improved, and it is hypnotised that the operative application of the code of conduct will not improve ethics within the South African quantity surveying profession. 2

RESEARCH AIM AND OBJECTIVES

The aim of this paper is to improve the ethical behaviour of quantity surveyors within the South African Construction Industry. In order to achieve this aim three objectives have to be accomplished: (1) Building a through understanding of the research topic of professional ethics in the construction industry with particular emphasis on the quantity surveying profession and the efficiency of the SACQSP code of conduct. (2) Examining the perception of professional ethics within the quantity surveying profession and identifying the application of the code of conduct. (3) Developing an innovative theoretical protocol called the Ethical Behaviour Improvement Protocol (EBIP) which depicts practical steps to assist the SACQSP to activate the improvement process. 3

LITERATURE REVIEW

3.1

Ethics in the construction industry

Ethics has evolved over the years. It originated from the word ethos, which means philosophy, culture or customs (Fan, et al., 2001). Ethics in its simplest form refers to the science of morals which focuses on studying and understanding the morality of people, moral decision making and moral theory. However, ethics goes deeper than just moral theory and morality, Masserly (1994) stated that ethics is a branch of philosophy that mainly deals with good and bad as well as right and wrong of the human

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behaviour. With the insurmountable value of human life in the construction industry, the highest moral considerations are required from construction and designing professionals (Vee and Skitmore, 2002). Professionals in the construction industry are required to be knowledgeable and skilled in their fields in order to deliver successful projects and improve their profession. Millerson (1964) stated that a profession involves skills based on theoretical knowledge and these skills require continuous training and improvement. In addition, he mentioned that construction professionals must demonstrate competence and integrity by passing certain tests, adhering to the code of conduct and doing the service for the public good. An elite, exclusive and restricted vocational group which possess specialised and expert skills based on intense knowledge govern professionals, these groups are known as ‘professions’ (Abbott, 1983 as cited by Leung et al., 2006). Professional ethics is then formed through the integration of professionals and ethics, this creates a sense of competency, responsibility and shows the willingness of professionals to serve as well as meet the expectations of the public (Hong Kong Ethics Development Centre, 1996). Professional ethics according to Bayles (1989) is a system of norms which pertains to certain professional activities and behaviour (Fan et al., 2003). Professional ethics tries to resolve potential problems, as well as try to lessen the impact of these problems on society at large, this can generally be achieved through fairness, not only to clients but colleagues and the general public (Johnson, 1991) is applied to potential problems not only impact a professionals 3.2

Quantity Surveyors and Ethics

3.2.1

Quantity Surveyors in the South African Construction Industry

Professionals who deal with all financial matters relating to building contracts are formally known as quantity surveyors. They play an important role in the construction industry, acting as financial advisors (ASAQS, 2008; Office IQ, 2009). The quantity surveying profession was previously governed by the Association of South Africa Quantity Surveyors (ASAQS). However with the decree of the Quantity Surveying Act in 2000, came a new governing body for the quantity surveying profession, known as the South African Council of the Quantity Surveying Profession (SACQSP). The SACQSP governs the council as well as all the quantity surveying associations (Wortman, 2005 & 2006). The SACQSP base their core mission and principles on regular and continuous assessment, enhancement and improvement of the internationally expected standards of education, as well as performance of ethics. However, these missions


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extend further to support the integrated development of public protection and maintaining control of all practicing quantity surveyors behaviour (Council for the Built Environment, 2005). The fundamental basis of these activities is professional activities, professional integrity, accountability, transparency, honesty, commitment as well as inclusiveness combined with the ability to act in the best interest of society and the general public at all times. However, it has been recognized by Latham (1994), Egan, (1998), Fan et al., (2003), Ho and Ng, (2003) and Construction Industry Review Committee (2001), that unethical behaviour by professionals in the construction industry have not just affected public confidence and respect for the dignity of professional competencies, but with the compelling relevance and position held by Quantity Surveyors in managing projects costs, they are more succumb to ‘conscience auction’ by receiving disgraceful and unworthy kickbacks, inducements and offerings. Furthermore, Olatunji (2007) stated that quantity surveyors are enticed into deceiving their clients into paying them more for the services they provided. Another unethical act, which is common in the Quantity Surveying profession, is that the practicing quantity surveyor, when faced with capability and proficiency challenges, which are traced back to negligence and unyielding denial of liability (Ferrell and Weaver, 1978). The abuse of office resources for personal use, has become more evident and common within quantity surveying organizations (Dubinsky et at., 1980) as well as embezzlement of office time (Ferrell and Weaver, 1978) and the common display of laziness and indolence at work (Badger and Gay, 1996; Albratt et al., 1992). 3.2.2 Factors Leading to Unethical Behaviour in Construction There are numerous factors leading to unethical behaviour. According to Transparency International (2005) a few factors making the construction industry prone to unethical as well as corrupt behaviour include: • ferocious competition for contracts; • the abundant levels of formalities for acquiring official approvals and permits; • the individuality of many projects rendering price comparison difficult; • the prospect for delays as well as • time and budget overruns and, • the slowdown in real growth, which is being felt by all, that is becoming a more prominent contributor to corruption. Dabson et. al. (2007) has stated that the act of one professional in a particular profession can tarnish the name of the entire profession, showing that each and every individual who is part of a profession carries the reputation, not only of himself but of the profession as a whole.

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3.3


The Professional Code of Conduct

3.3.1 Definitions and Background An important aspect of ethics, within the construction industry is the personal perception of ethics. This view is explained by Dabson et al, (2007) who stated that ethics is understood by individuals as being subjective, where each one’s view on what is right and what is wrong may differ. This conflict in perception of ethics, necessitate the need to establish a standard level of behaviour for all professionals, generally through a code of conduct, within their respective professions, and these professionals are expected to adhere by these standards. Molander (1987), Pressman (1997) and (Greenhalgh, 1997) stated that a code of Ethics is a written representation of the standard of the right and wrong conduct which are set to guide the members of a group, profession, or society. It aims to maintain a higher standard of conduct than what is actually required by the law. In addition, Wolverton & Wolverton (1999) highlighted that the codes of conducts are purely devices to boost the organization’s reputation through advertising the marketability of its members’ services that follow the profession ethical standards. 3.3.2 Code of conduct Within this research, the term ‘Code of Conduct’, simply refers to a ‘code of ethics’ which can be described as a written, apparent, distinct and formal document, which consists of moral standards that are used to guide individual professionals within an organisation or profession, such as the SACQSP code of conduct in the quantity surveying profession. Schwartz (2001) found that there are eight themes/ metaphors which have emerged, based on how codes of conduct influence the behaviour of a professional. These themes are the Rule Book, Sign Post, Mirror, Magnifying Glass, Shield, Smoke Detector, Club and Fire Alarm. Harris et al. (1995) stated that the code of conduct should incorporate the standards and conditions of education and ethics through defining the roles and responsibilities of professionals. However, these are not the only reasons for establishing and implementing codes of conduct, according to Meyer (1987) they are to force professionals to constantly examine their morals and values. Meyers (1987) further stated that in order for the code to be effective it needs to be brief and because each problem is unique and unforeseeable, the code of conduct generally contains broad guidance and advice.


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4 RESEARCH METHODOLOGY The abovementioned aim and objectives called for a research strategy that could gather data sufficiently rich to improve the ethical behaviour of South African Professional Quantity Surveyors. Firstly, literature review is used to achieve the first objective through investigating the concept of ethics in the South African construction industry, the role of the quantity surveyors as well as the efficiency of the SACQSP code of conduct and how this leads to unethical behaviour. Secondly, survey questionnaire is used to achieve the second objective through examining the perception of professional ethics within the quantity surveying profession and identified the application of the code of conduct as well as the role it plays in guiding the Professional Quantity Surveyors in making ethical decisions. Finally, based on literature review and research findings, the research developed an innovative protocol called the Ethical Behaviour Improvement Protocol (EBIP) that integrates the code of conduct within the quantity surveying profession as an approach for improving the ethical behaviour of the Quantity Surveying profession in South Africa 5 DATA ANALYSIS The total number of survey questionnaires that was distributed to quantity surveyors was 109, however only 64 were completed and returned. This represents a response rate of 59%, which will support the research findings and recommendations. Majority of the questionnaires were hand delivered to the selected quantity surveying firms, whilst a selected few companies preferred to get the questionnaire emailed to them. The responses received from the hand delivered questionnaires, were much greater than those that were emailed. According to Babbie (1992), as a rule of thumb 50% is adequate while McNeil & Chapman (2005); Saunders, Lewis & Thornhill. (2003); Gillham (2000); Tashakkori & Teddlie (1998) and Fellows & Liu (1997) stated that 30-40% is acceptable because few people respond to questionnaires. 5.1 i.

ii. iii.

Analysis of Survey questionnaires Out of the 64 responses received, it was found that 66% respondents belong to the ASAQS and 60% belong to the SACQSP, 15% are not members of an external organisation, and approximately 38% of the respondents belong to both the ASAQS and the SACQSP. Out of the 64 responses, 51% had less than 10 years experience and 49% had more than 10 years experience. With regard to the awareness of the codes of conduct, figure (1) shows that 82% of the respondents have read the ASAQS code of conduct, 64% read the SACQSP code of conduct, None have read the CBE

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code of conduct, 11% read the RICS code of conduct, 47% have read their corporate code of conduct and 2% of the respondents have never read a code of conduct. iv. Figure (2) shows the respondents response with regard to the publication that quantity surveyors would refer to when facing an ethical problem. v. 20% of respondents mentioned that the purpose of a code of conduct is to provide rules for a profession, 73% stated that it its purpose is to govern the way professionals conduct themselves, 4% highlighted that it is used to control a practitioner’s actions, where the remaining 3% stated that it is used to establish trust in the quantity surveyor and none feel that it is a window dressing tool for the profession. vi. When considering whether or not the SACQSP should implement a policy which removes the ‘professional’ status from a professional quantity surveyor, upon finding evidence of non-compliance, 82% agreed with implementation of such policy, whilst 18% did not agree. vii. 42% of the respondents stated that a code of conduct is an ‘excellent’ guide when conducting oneself as a professional. 51% felt it is a good guide, whilst 4% felt is was average, 2% believe it is useless. viii. The most unethical behaviour encountered is during tender adjudication. ix. Although 69% of the respondents stated that the standard of ethics within the quantity surveying profession has declined within the past five to ten years, all respondents believe that the ethical behaviour in the quantity surveying profession can be improved.

Figure 1: Publications read concerning ethics of quantity surveying professionals

Figure 2: Publication referred to when making an ethical decision

5.2 Interpretation of the Data Analysis According to the data received and stated above it can confidently be said that most quantity surveyors are members of the ASAQS, which is a voluntary club, and 60% are members of the council, which governs the


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quantity surveying profession. In theory there should be more members in the SACQSP than in the ASAQS. The majority of the quantity surveyors currently practicing in the country are all junior having practiced for less than 10 years. Furthermore, most of the quantity surveyors are more familiar with the ASAQS code of conduct, than the SACQSP. The respondents also believe that a policy which removes the ‘professional’ status from quantity surveyors upon proof of non-compliance of the code of conduct. This is proof that more stricter rules should be implemented in order to ensure that quantity surveyors provide the highest and best services to their clients as well as ensure that all quantity surveyors act in an ethical manner at all times. In the eyes of quantity surveyors the code of conduct is seen as an excellent tool to use when dealing with ethical decision-making. Additionally, the codes of conduct, according to quantity surveyors, are established in order to govern the ethical behaviour of quantity surveyors. If this is the case then a method of better implementing it should found, as well as finding ways to ensure that all quantity surveyors adhere to the code of conduct, thereby assisting in improving the ethical behaviour. Hence, it is clearly important, to protect against unethical behaviour within the construction industry, there is a requirement for participants to cooperate and trust one another. It is believed that clients have key roles, in the ethical practices of the industry, as they generally set the environment within which ethical and unethical behaviour occurs, usually through procurement strategies (London and Everingham, 2006).

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The Ethical Behaviour Improvement Protocol (EBIP)

6.1

Definition and Importance of the EBIP

Protocol is defined as the rigid code of etiquette prescribing the forms and procedures for various ceremonies and social functions in government, military, and diplomatic circles (Merriam-Webster Dictionary, 2000). The need of the Ethical Behaviour Improvement Protocol stems from the necessity to improve the ethical behaviour of the South African quantity surveyors. This need is supported by the findings gained from the literature review and survey questionnaires. The importance of the protocol is generated from the lack of other frameworks, actions plans and protocols devised to improve ethical behaviour of the quantity surveying profession in South Africa. The Ethical Behaviour Improvement Protocol (hereinafter referred to as the Protocol or the EBIP) is a set of theoretical procedures that the SACQSP should adopt in order to efficiently and effectively implement the SACQSP Code of Conduct.

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6.2


Description of the Ethical Behaviour Improvement Protocol (EBIP)

The EBIP is founded on the ideology of improving the ethical behaviour of professional quantity surveying professionals in the South African construction industry by a more enhanced way of implementing the SACQSP code of conduct. The Plan – Do- Study – Act (PDSA) is used to structure the developed protocol because it has been proved to be a successful business improvement tool. In addition, it is easy to understand and has been applied effectively in construction research (Conrads and Othman, 2008; Besterfield, et.al, 1999). The protocol consists of four phases: (1) Plan Phase, (2) Do Phase, (3) Study Phase and (4) Act Phase, see figure (3).

Figure (3) The Ethical Behaviour Improvement Protocol


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6.2.1 Plan Phase This phase represents the roadmap for improving the ethical behaviour of SACQSP. It aims to define the area that needs to be improved with the SACQSP profession (in our case: the ethical behaviour). In addition, within this phase the improvement objectives have to be established as well as the methodology and tools which will be used to achieve these objectives have to be identified. Figure (4) shows the input, tools and techniques as well as output of the Plan Phase.

Figure (4): The Plan Phase 6.2.2 Do Phase The objective of the “Do Phase” is to implement the abovementioned plans and execute the required processes using the selected methods. This phase requires the SACQSP to distribute and collect the data from the questionnaires once the plan has been put into operation. During this phase, different methods will be used to identify the root causes of unethical behaviour of Quantity surveyors. Figure (5) shows the input, tools and techniques as well as output of the Do Phase.

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Figure (5): The Do Phase 6.2.3 Study Phase Within this phase the brainstorming technique will be used by the study team to generate a number of creative ideas to overcome the root causes of unethical behaviour of Quantity Surveyors defined at the do phase. SMART techniques will be used to enable the study team to select the optimum alternative. Figure (6) shows the input, tools and techniques as well as output of the Study Phase.


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Figure (6): The Study Phase 6.2.4 Act Phase After the optimum alternative has been selected, team members with the support of SACQSP have to draw the procedures for implementing the improvement alternative. This may include training staff members, appointing ethical officer and establishing a reward system for companies that successfully implemented the selected improvement alternative and enhanced their ethical behaviour. Figure (6) shows the input, tools and techniques as well as output of the Act Phase.

Figure (7): The Act Phase

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7


CONCLUSION AND RECOMMENDATIONS

Misconduct and unethical behaviour is one of the major challenges that not only face the South African Quantity Surveying Profession but also the South African Construction Industry at large. Even though codes of conduct have been established by the SACQSP as well as other associations and quantity surveying firms, unethical behaviour and misconduct is still rife in the industry. The developed theoretical protocol is a recommendation to the SACQSP to proactively utilise their power and influence over the quantity surveying firms which will enable them to find methods of thoroughly implementing their Code of Conduct, in an initiative to improve the ethical behaviour displayed by the practicing quantity surveyors. Achieving these goals requires a thorough implementation of numerous techniques such as the Continuing Professional Development (CPD) to enhance the professional skills and ensure that all registered persons maintain their competence throughout their period of registration. Another, more formal technique, which will be a focus area of this paper, is implementing and enhancing ethical behaviour of quantity surveyors through the establishment and incorporation of a code of conduct. Adopting the theoretical protocol developed by the authors will enable the SACQSP to enhance the ethical behaviour of quantity surveyors in South Africa. The protocol was explained in detail through showing the inputs, tools and techniques as well as the output to facilitate its application.

REFERENCES Albratt, R., Nel, D., & Higgs, N. (1992). An Examination of the Ethical Beliefs of Managers Using Selected Scenarios in Cross Cultural Environment. Journal Of Business Ethics . Association of Quantity Surveyors (ASAQS). (2008). History of Quantity Surveying.Retrieved 2009, from ASAQS: http://www.asaqs.co.za/public/history.html Babbie, E. 1992. The practice of social research. Belmont, CA: Wadsworth Publishing. Bayles, Michael D. (1989) Professional ethics, 2nd edn, Belmont Publishing Company, California. Badger, W., & Gay, W. (1996). The Top Ten Lessons Learned in Construction Contracting. Cost Engineering,38 (5), May, 20-9. Besterfield, D. H., Michna, C., Besterfield, G. H. and Sacre, M. (1999) Total Quality Management. 2nd ed. New Jersey: Prentice Hall.

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Brooks, L. (1995). Professional Ethics for Accountants. Minneapolis: Conrads, SM and Othman AAE (2008) Industrialised Building: Investigating its Feasibility to house Poor in South Africa: Cato Manor as a Case Study. Proceedings of the Quantity Surveying Conference, Midrand, South Africa, 10 October 2008, pp. 42-52. Construction Industry Development Board Act 2000 (Act 38 of 2000). Available online: http://www.cidb.org.za/procurement/procurement_toolbox/overview/c onst_proc/default.aspx (Date accessed: 09 September 2009) Construction Industry Review Committee (CIRC) (2001) Construction for Excellence: Report of CIRC, Hong Kong Government Printer, Hong Kong. Council for the Built Environment(CBE). (2000). Council for the Built Environment Act 2000 (Act 43 of 2000) Government Gazette. South Africa. Council for the Built Environment (CBE). (2005) CBE Annual Report 2004/2005. [Online] Available: http://www.cbe.org.za/Reports/CBE_Annual_Report_04_05.pdf (Date Accessed: 23 July 2009) Dartmouth. (2009) The PDCA Cycle [Online] Available from: http://www.dartmouth.edu/~ogehome/CQI/PDCA.html (Date Accessed: 23 July 2009). Dabson A, Plimmer F, Waters M and Kenney S (2007) Ethics for Surveyors: What are the problems? Paper presented to the FIG Working Week, Hong Kong, China. 13–17 May 2007. Available from: http://www.fig.net/pub/fig2007/papers/ts_3e/ts03e_04_dabson_e tal_1386.pdf Department of Public works. (2000). [Online] available from: www.publicworks.gov. Dubinsky, A., Berkowitz, E., & Rudelius, W. (1980). Ethical Problems of Field Sale Personal. MSU Business Topics. Egan, J. (1998). Rethinking Construction. London: Transport and the Regions. Fan, L., Ho, M., & Ng, V. (2001). Effect of Professional Socialization on Quantity Surveyors' Ethical Perceptions in Hong Kong. Engineering, Construction and Architectural Management, 8, pp. 19-36 . Fan, L. (2003). Decision Making Models for Handling Ethical Dilemmas. Municipal Engineers 156 Issue ME4 . Fan, L., Fox, P., & Wan, J. (2003). An Investigation of Ethical Behaviour of Construction Professionals in Quality Management. Second International Conference on Construction in the 21st Century (CITC 11) Sustainability and Innovation in Management and Technology 10-12 December. Hing Kong. Fellows, R. & Liu, A. (1997). Research methods for construction. Oxford:

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SACQSP2009-09

The Effectiveness of the CIDB Contractors Grading System from the Perspective of South African Project Management Firms 1

2

Sirbadhoo, N , Othman, AAE Singatha Afrika Management Services (Pty) Ltd, Durban, South Africa,

1 E-mail : [email protected], Tel: 031 208 2262

2 School of Civil Engineering, Surveying & Construction, Faculty of Engineering, University of

2 KwaZulu-Natal, Durban, South Africa. E-mail : [email protected], Tel: 031 2602821

1

ABSTRACT Purpose of this paper Contractors’ involved in public sector projects are usually selected on the basis of their CIDB grading system. However, many of these projects fail due to contractors’ poor performance. This paper aims to investigate the effectiveness of the CIDB contractors grading system from South African Project Management Firms’ (SAPMF) perspective. Methodology To achieve the above mentioned aim, a research methodology is designed to accomplish four objectives. Firstly, reviewing the role of the CIDB in construction, the system used for grading contractors, the project success factors, the project management profession and the relationship between these areas of concern. Literature review is used to achieve this objective. Secondly, identifying contractors’ performance with respect to their CIDB grading system and whether it is monitored/ evaluated. This objective is achieved through survey questionnaires directed at a selected sample of contractors. Thirdly, the limitations of the CIDB grading system and the impacts of contractors' poor performance on SAPMF are identified. This objective is accomplished by conducting semi-structured interviews with a selected sample of SAPMF. Finally, developing an innovative evaluation criterion for SAPMF to help assist the CIDB in evaluating and reporting the performance of contractors during public projects to uplift and improve emerging contracting firms. Findings This research identifies whether the CIDB’s grading for contractors is a true reflection of their performance in public sector works as well as the impacts of poor performance by contractors on SAPMF. In addition, the research

2

Investigating the Effectiveness of CIDB Contractors Grading System from The South African Project Management Firms Perspective

highlights whether the CIDB or SAPMF use a process to evaluate contractors’ performance. Research Implications The research investigates the role of the CIDB in the construction industry, the systematic process adopted for grading contractors, the project success factors and the project management profession and the relationship between these areas of concern. Results of the semi structured interviews and survey questionnaires are used to develop an evaluation criteria for evaluating contractors’ performance and towards assisting the CIDB grade contractors’. Practical Implications Adopting the evaluation criteria developed by this research will help SAPMF and other professional consultant firms evaluate contractors’ performance and provide the CIDB with a true reflection of contractors’ performance in respect to their CIDB grading. Value This paper establishes whether the performance of contractors in public sector works is a true reflection of their CIDB grading and the impacts of poor performance on SAPMF. It provides a process for SAPMF and other professional consultant firms to monitor and evaluate contractors’ performance through the development of an innovative evaluation criterion. Keywords: Construction Industry Development Board, Contractors Performance, South African Project Management Firms, Evaluation Criteria, Professional Consulting Firms. 1

Introduction

The construction industry plays a vital role in South Africa’s economic and social development. It provides the physical infrastructure and backbone for economic activities. It is also a large-scale provider of employment (Mthalane et al, 2008). The legacy of Apartheid has, however, left the South African construction industry with a number of development and transformation challenges. These include the empowerment of emerging contracting firms (CIDB, 2009). Due to these challenges, in 1997 government published the Green Paper on “Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry" paving the way for establishment of the Construction Industry Development Board (CIDB). The CIDB Act (Act 38 of 2000) was passed in October 2000 which established the CIDB mandate to lead stakeholders in construction development (CIDB, 2009).


3

The establishment of the CIDB unlocked a vast array of development solutions in the South African construction industry, one of these being the development of a fair and equitable system to grade, select and award tenders to contractors in public sector projects. However, since the development of the blacklist of contractors by the CIDB (CIDB, 2009), came the realisation of the many challenges in the contractor selection process and the success factors for public projects. The South African construction industry has witnessed the failure of many contractors due to varying reasons such as poor performance, financial problems or accidents arising from the lack of adequate safety consideration at worksites. All these incidents have led to the impression that the current system of awarding contracts is inefficient in selecting a contractor capable of meeting the construction demands and challenges of present times (Singh and Tiong, 2006). Contractors’ poor performance has negative impacts on the professional consultant firms they are employed under, in particular with respect to this paper, South African Project Management Firms (SAPMF). Since the client and the Project Manager are responsible for the selection of the contractor in most public sector projects, the client trusts in the professional expertise of SAPMF to utilise their unique management skills to plan, execute, control and monitor the project from initiation to completion (PMBOK, 2004). The performance of a contractor can however, only be controlled and monitored to certain extent, since thereto also exists a line of trust between SAPMF and the contractor with respect to the successful completion of the project. Since the delivery of successful construction projects depends largely on selecting the right contractor, this paper aims to investigate the effectiveness of the CIDB contractors grading system from the SAPMF perspective as an approach for evaluating contactors performance and reporting this to the CIDB with a true image of contactors’ performance. This will help grading contactors’ according to their real performance which will lead to a better future for the South African construction industry. 2

RESEARCH OBJECTIVES AND METHODOLOGY

In order to achieve this aim a research methodology consisting of a literature review, survey questionnaires and semi-structured interviews was designed to accomplish four objectives: • Firstly, literature review is used to investigate the role of the CIDB in construction, the system used for grading contractors, the project success factors, the project management profession and the relationship between these areas of concern. • Secondly, survey questionnaires were directed to a selected sample of 70 contractors to identify their performance with respect to their CIDB grades. The contractors were selected on the basis of their

4


•

•

direct relation to public sector projects and their willingness to participate in the survey study. Thirdly, semi-structured interviews were used to identify the limitations of the CIDB grading system and the impacts of contractors' poor performance on SAPMF. The semi-structured interview sample was selected from a list of registered professional project management firms in Durban (Professions and Projects Register, 2008). The interview sample was 10 firms. Finally, based on the data collected from the literature review, semistructured interviews and survey questionnaires an innovative evaluation criteria was developed for SAPMF to help assist the CIDB in evaluating and reporting the performance of contractors during public projects to uplift and improve emerging contracting firms.

3.

Literature Review

3.1

CIDB and the South African Construction Industry

3.1.1 CIDB Overview The Construction Industry Development Board (CIDB) was established by an Act of Parliament (Act 38 of 2000) to promote a regulatory and developmental framework which builds the construction delivery capability for South Africa’s social and economic growth that delivers to globally competitive standards (CIDB, 2009). In addition, the CIDB Act No. 38 (2000) defines the aim of establishing the CIDB further as implementing an integrated strategy for the reconstruction, growth and development of the construction industry and providing for matters connected therewith. 3.1.2 The Role of the CIDB As governed by the CIDB Act No. 38 (2000), the role of the CIDB in the South African construction industry is to: • Establish a national register of contractors and of construction projects to systematically regulate, monitor and promote the performance of the industry for sustainable growth, delivery and empowerment. 3.1.3 Challenges Facing the CIDB Since the establishment of the board in 2000, it faced some of the following development and transformation challenges (CIDB, 2009): • Improving effectiveness of public sector spending on physical infrastructure development and maintenance. • Ensuring international competitiveness. • Improving the performance of empowered emerging contractors.


5

The CIDB has a document entitled “Requirements and Guidelines for CIDB Contractor Performance Reporting” which is currently a working draft (CIDB, 2009), however to date, there is no system in place for SAPMF to monitor and report contractor’s performance on public projects. 3.2

CIDB Contractor Grading System

3.2.1 Definitions A contractor in the field of construction is defined as a person or entity that enters into a contract and commonly agrees to construct a building or to provide or install specialised portions of the construction (Bouvier, 1856). Whereas a grading system is defined by (Collins, 2009) as a system which is used to determine a mark or rating indicating achievement or the worth of work done, it may also be a position or degree in a scale, as of quality, rank, size, or progression. 3.2.2 CIDB National Register of Contractors The CIDB Act empowers the Board to establish a register of contractors, suppliers, manufacturers and service providers in the construction industry. Hence, a contractor may not undertake, carry out or complete any construction works or portion thereof for public sector contracts, awarded in terms of competitive tender or quotation, unless he or she is registered with the Board and holds a valid registration certificate issued by the Board (CIDB Act No. 38, 2000). Once a contractor has successfully registered with the CIDB they are added to a register known formally as the National Register of Contractors. As highlighted by the CIDB (2009), the focus of the register is to establish and maintain a national register of contractors which facilitates public sector procurement as well as establish and maintain the register of projects that will drive industry development objectives. Furthermore, the register aims to assess the performance of contractors in the execution of contracts and thus provide a performance record for contractors; regulate the behaviour and promote minimum standards and best practice of contractors. 3.2.3 Contractor Grading System in South Africa The complex and unique nature of the South African construction industry demands the involvement of multiple participants in the delivery of projects. It is a crucial challenge to select the right contractor for the right project, as the contractor plays a vital role in the overall project performance. In South Africa, contractors registered with the CIDB are graded in a systematic manner which ensures that they are only allowed to tender and execute works within their technical, resource and financial capability. The system for grading contractors is exemplified in Table (1).

107

Investigating the Effectiveness of CIDB Contractors Grading System from The South African Project Management Firms Perspective Table (1) Contractor Grading Designation and Tender Value Ranges (CIDB, 2009) Contractor Grading Designation And Tender Value Ranges

Tender Value Range Designation 1 2 3 4 5 6 7 8 9

Class Of Construction Work (CE, EE, GB, ME, S)

Range Of Tender Values (Including Vat) Greater Than

i.e. (CE, EE, GB, ME, S) i.e. (CE, EE, GB, ME, S) i.e. (CE, EE, GB, ME, S) i.e. (CE, EE, GB, ME, S) i.e. (CE, EE, GB, ME, S) i.e. (CE, EE, GB, ME, S) i.e. (CE, EE, GB, ME, S) i.e. (CE, EE, GB, ME, S) i.e. (CE, EE, GB, ME, S)

R0 R 200 000 R 500 000 R 1 500 000 R 3 000 000 R 5 000 000 R 10 000 000 R 30 000 000 R 100 000 000

Less Than/ Equal To R 200 000 R 500 000 R 1 500 000 R 3 000 000 R 5 000 000 R 10 000 000 R 30 000 000 R 100 000 000 No Limit

The single number in the first left column represents a contractor’s capability to undertake a contract in a particular class of construction works with a specified tender value range. The two letters in the second column depict the class of construction works in which a contractor is registered, where: CE – Civil Engineering, EE – Electrical Engineering, GB – General Building, ME – Mechanical Engineering, S (SA to SP) – Specialist Works. Finally, the third and fourth column gives the specific value of work that may be tendered for. As an illustrative example, if a public project to the value of R 1 200 000 is advertised for tender and if the project is a general building project, then a registered contractor with a CIDB grading of 3GB will qualify to tender for that respective project. 3.3

Project Success Factors

3.3.1 Definitions Success factors are defined as those inputs to the management system that lead directly or indirectly to the success of the project or business (Davies, 2002). 3.3.2 Project Success Criteria in the Construction Industry The traditional approach to success in the construction industry places great emphasis on the ability to plan and execute projects (Abraham, 2003). Lim and Mohamed (1999) mentioned that for those involved with a project, project success is normally thought of as the achievement of some pre determined project goals. Since most projects in the construction industry are unique and not all are identical, it is difficult to find a uniform list highlighting project success criteria. Some project managers depend on the characteristics of the project to determine their own success factors. However, as mentioned by Rad and Levin (2002) if these factors are not


7

explicitly identified and recorded, they will not become part of formal project management reporting process nor they become part of the historical project data. Above all, success criteria should be simple, attainable and, once defined they should be ranked according to priority (Right Track Associates, 2003). 3.3.3 Critical Project Success Factors The success of a project ultimately relies on the unique role played by the project manager from project initiation to completion (PMBOK, 2004). However, Belassi and Tukel (1996) highlighted 3 distinct factors which are crucial to the success of projects in the construction industry: • The Project Manager: A project manager is not going to guarantee the success of a project. The project manager must exhibit a number of skills to use during the project to guide the rest of the team to successfully complete all the objectives. • The Project Team: It is vital to have an active project team to work with, with core skills that can be evolved to core competencies and capabilities for the whole organisation. All members of the project team must be committed to the success of the project and the overall mission of the company • The Project Itself: The type of a project underlines particular factors that are important to success. The size, value and time period in which to construct a project and its uniqueness of activities play a crucial role in determining which success factors take priority over others (Belassi & Tukel, 1996). 3.4

The Project Management Profession

3.4.1 Definition The APM PMBOK (2000) defines project management as the discipline of managing projects successfully. Typically projects involve several professionals working together and the project management expertise is spread across this team. 3.4.2 Project Management Profession Experience has shown that the selection of the project manager is a key appointment which can influence the success or failure of the project. As the single point of responsibility, it is the project manager who integrates and co ordinates all the contributions, and guides them to successfully complete the project. 3.4.3 Project Management and Project Success One of the vaguest concepts of project management is project success. Since each individual or group of people who are involved in a project have different needs and expectations, it is very unsurprising that they interpret

8


project success in their own way of understanding (Cleland & Ireland, 2002). Many lists of success criteria have been introduced in the previous decades by various researchers. Previous success criteria have been an integrated part of project management theory given that early definitions of project management included the iron triangle success criteria: cost, time and quality (Atkinson, 1999). 3.5

The Relationship Between: the CIDB, the Contractor, Project Success Factors and SAPMF

The CIBD is the board which promotes a regulatory and developmental framework that builds the construction delivery capability for South Africa’s social and economic growth through uplifting emerging contractors and ensuring that they are registered with the board. Furthermore, the CIDB has a working draft in place for contractor performance reporting, however to date, no system has been activated. The contractor has been highlighted as a key role player in the delivery of successful projects in the construction industry. However, the selection criteria used to select the contractor is crucial in determining if the project will be a success. There are various criteria which have been highlighted as essential to ensure project success. Among these were financial capabilities, technical capability, past experience, human resource management, health and safety as well as project management. The project manager’s profession in the industry is one of the key roles and is the single point of contact between other professionals on a project, the contractor and the client, therefore the success of the project ultimately rides on the unique management skills of the project manager. However, without the co-operation of the contractor, the chance of project failure is increased. This highlights the need for SAPMF to help assist the CIDB in evaluating and reporting the performance of contractors during public projects to help uplift and improve emerging contracting firms. 4 Data Analysis Out of the 70 survey questionnaires sent to contractors, 47 were completed and returned. This represents a 67% response rate which will support the research findings and recommendations. A total of 10 semi-structured interviews were planned to be conducted, however due to time constraints on the research and limited schedules of project management professionals in the industry, only 6 interviews were achieved. This represents a 60% response rate from the intended sample and still provides rich and valuable data to the research. 4.1

Analysis of the Questionnaire Responses


110

• With reference to the methods used for measuring their performance, 40% of contractors indicated that they use monetary measures as a technique to evaluate their performance during a public sector construction project. While 45% responded that they use non monetary measures to evaluate their performance, and 15% mentioned that they use both techniques to measure their performance. • With reference to the CIDB technique for evaluating contractors’ performance, 35% of respondents stated that the CIDB has a process in place to evaluate their performance, however, out of the 35%, 19% stated that they are aware of an evaluation process but it is not implemented. While 65% indicated that the CIDB does not have a process for evaluating their performance. • In order to investigate the person / authority that evaluates contractors performance, 48% of respondents stated that the client usually evaluates their performance. While 44% indicated that the project manager evaluates their performance, and 8% mentioned that someone from their own company evaluated their performance. • Towards identifying the frequency of evaluating their progress, 10% of contractors indicated that their performance on public sector projects is measured daily, 27% responded that their performance is measured weekly and 38% mentioned that their performance is measured monthly. While 25% mentioned that their performance is measured per a project they are undertaking at a given time. • Out 47 respondents, 45% of contracting firms indicated that they were notified by the project manager that their performance will be evaluated during the construction of the project. While 55% stated that they were not notified that they will be evaluated. • Figure (1) shows the criteria that project managers used to evaluate the 45% of contractors who indicated that their performance was evaluated by a project manager. From the 45% of respondents 36% highlighted that time, cost, quality and scope management was used, 8% indicated that integration, time and quality management was used while 1% mentioned that all 9 areas were used. Table (2): Project Management Criteria Used to Evaluate Contractor Performance

111


PROJECT MANAGEMENT CRITERIA USED TO EVALUATE CONTRACTOR PERFORMANCE NO. PROJECT OUT OF THE 45% OF RESPONDENTS MANAGMENT CRITERIA 36% 8% 1% highlighted the highlighted the highlighted the following was following was following was used: used: used: 1 Integration • • Management 9 • 2 Scope Management • • • 3 Time Management 9 • 4 Cost Management • • • 5 Quality Management 6 Human Resource • Management 7 Communication • Management • 8 Risk Management 9 Procurement • Management

4.2

Analysis of the Interview Responses

The semi-structured interview was conducted in two separate sections. The first section was used to investigate whether SAPMF use any evaluation criteria to evaluate and report contractor performance to the CIDB. The second section was used to highlight the negative impacts of poor contractor performance on SAPMF. 4.2.1 Analysis of Section 1 All SAPMF that were interviewed responded that they use some form of technique/criteria to evaluate contractor’s performance on public sector projects. In addition, they also mentioned that they do not transfer this information to the CIBD. Most firms did not disclose why they do not transfer this information to the CIDB. However, one firm indicated that they refuse to work with contractors whom in their experience have performed poorly on construction projects based on their own internal evaluation. They went further in stating that they simply do not have the time or feel the need to inform CIDB. The evaluation techniques used by all respondents has been grouped and is presented below: • Most firms mentioned that there is a lack of trained personnel to evaluate contractor’s performance as it is time consuming for the PM to conduct this task, while another firm argued that it is the PM who


• • • •

• • •

112

is the ideal person to conduct this task, since they are responsible for the management of the project. Another firm stated that the person who will evaluate the contractor’s performance must have sound knowledge of how to evaluate an emerging contractor. Most firms agreed that it should be a neutral party who should be responsible for the evaluation and reporting of the contractor’s performance. One firm mentioned that the contractor’s performance was measured based on the type of project and execution of the scope of work for that project. Another firm stated that they measured performance of contractors per trade of work. With the assistance of a skilled person and evaluation process the execution of the work was enhanced. Reason being: trades of work on the project started competing amongst themselves knowing that they were being evaluated. They went further in stating that this system, if implemented and monitored correctly results in improved contractor performance. All firms agreed that they use time, cost and quality to measure contractor’s performance. One firm stated that they evaluate contractor’s performance based on resource capacity, technical capability and experience. Most firms agreed it was vital when evaluating emerging contracting firms, that the evaluation process must be conducted in a language that is understood by the emerging contractor.

4.2.2 Analysis of Section 2 All SAPMF that were interviewed stated that poor performance by contractors has a direct negative impact on themselves as project managers and their firms. The negative impacts as a result of poor performance have been grouped as follows. • All firms agreed that the PM spends more time on a process/phase of the project that should normally take a shorter period of time or has to go back and rectify a process that was not executed efficiently, resulting in double workmanship. • While one firm mentioned that poor performance by a contractor usually results in the construction project taking longer to complete, as a result, the PM seeks no remuneration from overruns in time from the client. • Another firm stated that the PM firm’s reputation is affected, as the client does not appreciate overruns in time due to poor contractor performance. • 3 firms out of 6 mentioned that poor performance by contractor’s may cause many PM’s to become frustrated and lose interest in the project. This has a ripple effect, as once the person leading the

12


construction team loses interest in the project it has a detrimental effect on the project and the rest of the team. This results in loss of confidence amongst the team and leads to a poor relation between the PM and contractor, resulting in poor productivity from both parties. • Another firm indicated that a dispute between the PM and the client is a result of poor contractor performance. Since the client is not interest in poor performance, the downside is the PM eventually takes the “blame” for poor performance by the contractor. • Finally, one firm stated that, it is not fair to blame emerging contractors for poor performance. Rather the methodology used in selecting them should be modified. All emerging contracting firms should be notified at the tender briefing stage that their performance on the respective project will be evaluated and reported to the CIDB using a specific evaluation criterion. This will hopefully remove the contractors who feel they do not have the experience, resource or technical capacity to execute the project from the list. This will be the first step in ensuring that contractors registering with no experience are immediately removed and ensuring that only competent contractors are tendering for the project. 5

5.1

An Innovative Contractor Reporting Criteria (CEPRC)

Evaluation

and

Performance

Definition

The Cambridge Advanced Learner's Dictionary (2005) described criteria as "a standard by which you judge, decide about or deal with something". The Contractor Evaluation and Performance Reporting Criteria (CEPRC) (hereinafter referred to as “the Criteria” or the “CEPRC”) is a proposed criteria developed by the authors to evaluate the performance registered contractors and report their performance to the CIDB in an attempt to draw a true picture of contactors grading system towards improving the construction industry in South Africa. 5.2

The Need for the Evaluation Criteria

The literature review and data analysis showed that there is no effective system used by the CIDB to evaluate the performance of registered contractors. This necessitated the importance of establishing an evaluation criterion to assess the performance of public sector contractors. In addition, reporting these evaluations to the CIDB will assist in drawing a true picture of contractors’ performance, their actual grade and capability of executing public projects.


5.3

114

Description of the CEPRC

Since the evaluation process will be carried out from the project management firms’ perspective and will cover all areas of a project, the 9 areas of knowledge (PMBOK, 2004) in project management will be used as the criteria for evaluating registered contractors’ performance, see table (3). Within the evaluation process project managers will be asked to evaluate each criteria on a scale of 1 to 5, where 1 = very poor and 5 = excellent. Once a contractor has been evaluated using the evaluation criteria, the score for each indicator is totalled. From the totals the highest average will be used as an indicator to reflect the contractor’s performance at the time of evaluation. As an illustrative example, if a contractor’s evaluation criteria revealed that their most commonly scored indicator was 3, then that contractor’s performance would be evaluated as average at the time of evaluation. 5.4

Procedures for Successful Implementation

In order to guarantee the successful implementation of the criteria, the following procedures have been established. • A partnership agreement between CIDB and South African Project Management firms has to be agreed. • When a contractor is selected to construct a project in the public sector, he has to be notified that a certain criteria will be applied to evaluate his performance throughout the project life cycle. • The evaluation criterion has to be explained to the contractor and the time frame for evaluation has to be agreed on. • The CIDB will be provided with contractor’s performance reports. • Contractors whose performance does not coincide with their CIDB grading system should be re-evaluated. • Contractors’ feedback and comments have to be studied in order to improve the performance of the evaluation criteria in the future. 6

Conclusions

The vast quantity of emerging contractors in the South African construction industry has lead to numerous contractors being given the opportunity to tender for public projects. This was possible due to the development of the CIDB. However, many contractors have exhibited poor performance which has resulted in the increased amount of project failures or late delivery. This in turn has negative impacts on SAPMF who assist in the selection of contractors for public sector projects. The CIDB has a working draft in place for contractor performance reporting, however it has not been activated to date. This paper focused on the role of the CIDB, the CIDB contractor grading system, project success factors, the project management profession

115


and the relationship between the four areas of concern. In addition, this paper highlighted the negative impacts of poor performance of contractors from the SAPMF perspective. Furthermore, the authors developed an innovative evaluation criterion which can be used to assist the CIDB in grading contractors according to their real performance. Table (3): Contractor Evaluation and Performance Reporting Criteria Evaluation Criteria Project Integration Management

Project Scope Management

Project Time Management

Project Cost Management

Project Quality Management

Project Human Resource Management

Indicators The contractors capability to efficiently integrate his/her project team into the project scope of work? The contractor’s ability to mesh the various project variables together effectively? How is the contractor’s control of the project during the construction period? Contractor’s ability to manage integration in the project? The contractor’s ability to display a clear understanding of the project scope of work? How is the contractor’s control of variations in the project scope of work? The contractor’s capability to effectively manage the projects scope of works? Contractor’s ability to successfully complete the scope of works? Was the timeliness of the submittals acceptable? Did the contractor cause any delays to the project? The contractor’s ability to meet scheduled milestones and deliverables? Contractor’s ability to successfully complete the project in the scheduled time? The contractor’s ability to promptly pay the subcontractors and/or suppliers? Contractor’s capacity to efficiently submit invoices, tax invoices, etc on time? Contractor’s ability to manage variations with cost implications? Contractor’s capability to successfully complete the project within the approved budget? Was the quality of the submittals acceptable? Were the materials and workmanship in compliance with the contract documents? Did the contractor comply with site regulations in accordance with the contract documents? Contractor’s ability to successfully provide a project of high quality? The contractor’s ability to lead, direct, and orchestrate his/her foreman, subcontractors, etc? Contractor’s ability to adequately staff the project? Did the contractor work to actively resolve problems?

1

2

3

4

5


116

Contractor’s capability to successfully mange human resources on the project? Project The contractor’s ability to communicate with his/her Communications staff, the project team and project manager? Management Contractor’s capability to carry out and successfully execute contract instructions? Contractor’s ability to timeously respond to project related communications (emails, etc)? Contractor’s capability to communicate in a manner which is comprehensible? Project Risk The contractor’s ability to identify the risks associated with the project? Management Contractor’s capability to quantify the risks associated with project in terms of probability and severity? Contractor’s risk management plan efficiency? Contractor’s competence in successfully managing risk related to the project? Project Contractor’s management of procuring long lead items? Procurement Management Contractor’s ability to procure resources and materials from sound reliable sources? Contractor’s capability in procuring the correct resources and materials as per project specifications? Contractor’s ability to procure resources and materials for the project within the budget, time frame and meet the quality standards of the client? Total Score Overall Performance (Mostly Scored Indicator)

References Abraham, G.L. (2003). Construction Research Congress - Winds of Change: Integration and Innovation of Construction, Proceedings of Construction Research Congress 2003 APM PMBOK, (2000). Association for Project Management – Project Management Body of Knowledge, 4th Ed, Association for Project Management, A1 Parkway, Southgate Way, Orton Southgate, Peterborough, UK. Atkinson, (1999). Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria, International Journal of Project Management Vol. 17, No. 6, pp 337-34 Belassi and Tukel, (1996). A new framework for determining critical successfailure factors in projects, International Journal of Project Management Vol. 14, No. 3, pp. 141-151 Bouvier J. (1856). A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856. [Online]. Available: http://legal-dictionary.thefreedictionary.com/Contractors [21 July 2009]

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CIDB Act No. 38, (2000). Construction Industry Development Board Act, 2000, Government Gazzet vol 425, No 21755, Cape Town 17 November 2000 CIDB, (2009), Construction Industry Development Board (CIDB). Construction Industry Development Board, [Online]. Available: http://www.cidb.org.za/default.aspx [05 June 2009] Cleland and Ireland, (2002). Project Management: Strategic Design and implementation, p210, McGraw-Hill Professional, USA Collins, (2009). Defining Grading Systems, [Online]. Available: http://www.wordia.com/grade [21 July 2009] Davies C., (2002). The "real" success factors on projects, International Journal of Project Management vol.20, pp. 185–190 Lim and Mohamed, (1999). Criteria of project success: an exploratory re examination, International Journal of Project Management Vol. 17, No. 4, pp. 243-248 Mthalane, D., Othman, A.A.E. and Pearl, R.G., (2008), ‘The economic and social impacts of site accidents on the South African society’, in J.J.P. Verster and H.J. Marx (eds), in Proceedings of the 5th Post Graduate Conference on Construction Industry Development, Bloemfontein, South Africa, March 2008, 1–10. PMBOK. (2004). A Guide to the Project Management Book of Knowledge. rd 3 ed. Project Management Institute, Inc. Newton Square Pennsylvania. Professions and Projects Register. 2008. Rad and Levin, (2002). The Advanced Project Management Office, St.Lucie Press, USA, pp 18 Right Track Associates, (2003). Defining project success, [Online], Available: http://www.ittoolkit.com/cgibin/itmember/itmember.cgi?file=assess_pmsuccess.htm, [2005, Nov.5] Singh, D., and Tiong, R. L. K. (2006), Journal of Construction, Engineering and Management, Volume 132, Issue 9, pp. 998-1008 (September 2006) The Cambridge Advanced Learner's Dictionary, (2005). 2nd Edition, Cambridge University Press, UK

SACQSP2009–10

FUTURE ALIGNMENT OF THE

HOUSING POLICY IN SOUTH AFRICA

WITH REFERENCE TO LOW INCOME

HOUSING

M.S. Ramabodu Department of Quantity Surveying and Construction Management, University of the Free State, [email protected], Tel No. +27-51-4013766

ABSTRACT Purpose: The study aimed to define the elements of housing policy and programme strategies in the South African context, which has adopted a market-centered housing policy. The successes and failures of the housing policy in the low-income housing sector are highlighted, indicating areas of concern and possible re-alignment and improvement for sustainability (Hauptfleisch, 2001:2). Method: A survey, consisting of a questionnaire and personal interviews, was conducted amongst the residents of Freedom Square in Mangaung, Free State. The survey investigated opinions on the effectiveness of the current housing policy in respect of housing delivery, incidence and nature of overcrowding, lack of income, unrealistic expectations and dissatisfaction with regard to services and quality of houses being provided. Results: The results show that in the Freedom Square area in Mangaung, Free State, a bigger proportion of the population in the region live in shacks, some live in RDP houses consisting of between one and two rooms, and the majority of the population have at least three or four children. Another critical issue discovered was the unemployment rate. Most of the respondents were unemployed or were pensioners or gardeners with a salary of approximately R1000 per month. Therefore, with these large families it is extremely difficult to survive Value: Based on the analysis of the identified concerns, a future housing policy should be re-aligned and improved to be more sustainable to yield better results in the housing sector. Key words:

Housing policy, low-income housing, policy re-alignment, sustainability, overcrowding, unemployment

Future alignment of the housing policy in South Africa with reference to low income housing _______________________________________________________________________________

119

1 INTRODUCTION Very often housing is used (by the silent majority) as a barometer to determine the success of the government’s delivery process. Along with unemployment and crime, housing featured prominently on the manifestos of political parties campaigning for election. This raised the hopes of the public, but in actual fact, housing is a more serious problem than it appears. For most of South Africa’s black population groups in particular, the mention of provision of housing by political candidates was seen as a ticket to parliament. A popular election campaign slogan of the ANC was: “Houses for all”. The importance around this issue was borne by the fact that a decade or two before 1994 the process and/or programme of building houses for blacks in the country had virtually been jettisoned by the apartheid regime (Nxumalo, 2002:54). This policy discounted blacks as South Africans, and therefore there “was no need to build houses for them in white South Africa”,(Nxumalo, 2002: 54). This is where the problem originated. When the ANC came to power in 1994, they were faced with the task of addressing a huge backlog of housing. The backlog was reported to be in the millions, but no one knew the extent of the problem, and this unreliable data, therefore, handicapped the strategies for housing provision of the various communities. However, since the last two censuses conducted in the country, and other scientific surveys undertaken, the government now has a better picture of the housing needs of the poor. It was estimated that the housing shortage at the beginning of 1999 was around 2,8 million units (Nxumalo, 2002:54). 2 HOUSING POLICIES The reason for this shortfall in housing supply is, according to Hamdi (1995:7, cited in Stewart, 2001: 39), a complicated debate with a range of theories and explanations. Contributing factors are the daily increase in centralization, increase in poverty, donors (for example U.S. aid and British aid) putting their own political interest above the need for houses, and the per capita growth rate of developing countries. The Minister of Housing 1999, Sankie Mtembi Mahanyele stated that: “…we know we are now able to produce 300 000 housing units a year. More than three million people have been given shelter in the past four and half years… We want to maintain this momentum and improve on it” (Macleod 1999, cited in Stewart, 2001:40)


120

Figure 1.2 (Source: own photo)

In 1993, against the background of a housing crisis and the absence of a comprehensive government housing policy, a task group under the chairmanship of De Loor was appointed (Dison, 1993:93). If the assumption is made that the architect has the ability to solve problems, it can be deduced that the problem must be understood before it can be solved. Therefore, this research should also create a better understanding of the problem. Robbins (cited in Stewart, 2001:56) issues the following warning: “Too little understanding of what is needed and the desire to produce tangible results may create housing inappropriate to needs and wasteful of human and material resources”.. Ward (1990) considered that the modern South African housing policy could be divided into three phases. The township phase, when, from 1948 61, segregated townships’ were constructed on the edge of urban areas to house non-whites who had been expelled and banned from the cities; the homelands phase from 1962-77, when there was an attempt to reduce movement to the cities by the encouragement of development in the homeland and finally, the period from 1977. This period was characterized by resistance and reform when under local and international pressure, some of the cruder edges of the apartheid policy was modified and civil and violent resistance to such policies increased. As well as physical separation, another significant legacy of apartheid on housing is that regulations concerning tenure varied according to race. Whilst owner occupation has become common in white areas, the Group Areas Act and low incomes meant there was virtually no alternative to short-term renting in non-white areas. The National Housing Forum came to an understanding with the government in August 1993. This Accord set out the fundamental vision of a permanent structure, with security of tenure, adequate water and sanitary facilities and electricity supply for all South Africans. Then ‘Accord’s 20’ points of departure’ formed and became the basis for subsequent policy formulation. The most important of these points were: (Ward, 1990) • • • • •

That housing policies should be sustainable The need to recognize housing’s role in the broader economy The need for coordination and consensus The need to promote viable communities The need for rationalization of administrative structure


121

1 INTRODUCTION Very often housing is used (by the silent majority) as a barometer to determine the success of the government’s delivery process. Along with unemployment and crime, housing featured prominently on the manifestos of political parties campaigning for election. This raised the hopes of the public, but in actual fact, housing is a more serious problem than it appears. For most of South Africa’s black population groups in particular, the mention of provision of housing by political candidates was seen as a ticket to parliament. A popular election campaign slogan of the ANC was: “Houses for all”. The importance around this issue was borne by the fact that a decade or two before 1994 the process and/or programme of building houses for blacks in the country had virtually been jettisoned by the apartheid regime (Nxumalo, 2002:54). This policy discounted blacks as South Africans, and therefore there “was no need to build houses for them in white South Africa”,(Nxumalo, 2002: 54). This is where the problem originated. When the ANC came to power in 1994, they were faced with the task of addressing a huge backlog of housing. The backlog was reported to be in the millions, but no one knew the extent of the problem, and this unreliable data, therefore, handicapped the strategies for housing provision of the various communities. However, since the last two censuses conducted in the country, and other scientific surveys undertaken, the government now has a better picture of the housing needs of the poor. It was estimated that the housing shortage at the beginning of 1999 was around 2,8 million units (Nxumalo, 2002:54). 2 HOUSING POLICIES The reason for this shortfall in housing supply is, according to Hamdi (1995:7, cited in Stewart, 2001: 39), a complicated debate with a range of theories and explanations. Contributing factors are the daily increase in centralization, increase in poverty, donors (for example U.S. aid and British aid) putting their own political interest above the need for houses, and the per capita growth rate of developing countries. The Minister of Housing 1999, Sankie Mtembi Mahanyele stated that: “…we know we are now able to produce 300 000 housing units a year. More than three million people have been given shelter in the past four and half years… We want to maintain this momentum and improve on it” (Macleod 1999, cited in Stewart, 2001:40)


122

Figure 1.2 (Source: own photo)

In 1993, against the background of a housing crisis and the absence of a comprehensive government housing policy, a task group under the chairmanship of De Loor was appointed (Dison, 1993:93). If the assumption is made that the architect has the ability to solve problems, it can be deduced that the problem must be understood before it can be solved. Therefore, this research should also create a better understanding of the problem. Robbins (cited in Stewart, 2001:56) issues the following warning: “Too little understanding of what is needed and the desire to produce tangible results may create housing inappropriate to needs and wasteful of human and material resources”.. Ward (1990) considered that the modern South African housing policy could be divided into three phases. The township phase, when, from 1948 61, segregated townships’ were constructed on the edge of urban areas to house non-whites who had been expelled and banned from the cities; the homelands phase from 1962-77, when there was an attempt to reduce movement to the cities by the encouragement of development in the homeland and finally, the period from 1977. This period was characterized by resistance and reform when under local and international pressure, some of the cruder edges of the apartheid policy was modified and civil and violent resistance to such policies increased. As well as physical separation, another significant legacy of apartheid on housing is that regulations concerning tenure varied according to race. Whilst owner occupation has become common in white areas, the Group Areas Act and low incomes meant there was virtually no alternative to short-term renting in non-white areas. The National Housing Forum came to an understanding with the government in August 1993. This Accord set out the fundamental vision of a permanent structure, with security of tenure, adequate water and sanitary facilities and electricity supply for all South Africans. Then ‘Accord’s 20’ points of departure’ formed and became the basis for subsequent policy formulation. The most important of these points were: (Ward, 1990) • • • • •

That housing policies should be sustainable The need to recognize housing’s role in the broader economy The need for coordination and consensus The need to promote viable communities The need for rationalization of administrative structure


123

• The necessity for openness and accountability • The desirability of competition and choice and the focusing of subsidies on the poorest groups (Ward, 1990) A further key document in the formulation of policy was the Reconstruction and Development Programme, (African National Congress (ANC), 1994). This was effectively to become the manifesto of the African National Congress for the elections of 1994. The RDP outlined the enormous backlog of problems caused by previous policies and set out an integrated programme, grouping policies into five key programme areas: • • • • •

Meeting basic needs Developing human resources Building the economy Democratizing the state and society, and Implementing the RDP (ANC, 1994)

POOR LIVING CONDITIONS, THE ENVIRONMENT, HEALTH AND THE ECONOMY. Many low-income urban dwellers are not currently enjoying a healthy environment or a reasonable quality of life. Low environmental quality generates negative attitude towards health, education and social welfare, and cannot be allowed if a sustainable urban habitat is to be achieved. The measurement of poor living conditions extends beyond the availability of water, sanitation and refuse: it also includes factors such as overcrowding, dampness, inadequate insulation, pests, noise, dust, inadequate drainage and insufficient ventilation. One of the main negative aspects of poor living conditions in South Africa is the lack of adequate access to water and sanitation services. A lack of sanitation facilities creates potentially major environmental hazards. Poorly constructed and badly placed pit latrines pose a threat of bacteriological pollution of the groundwater. This is a major problem in the Freedom Square region of Mangaung. Sanitation facilities were poorly constructed and cause blockages and very bad odors from runoffs which put the health of the community at risk. This is a continuous problem and the government does not have enough funds to repair the construction mistakes made by either the engineer or the contractor. Therefore the result is that the community is unhappy about the end product. Indoor pollution, mainly from the use of traditional fuels for cooking and heating, is also a major problem. This is basically in the regions where there is no electricity, like some areas in the Thaba’Nchu region where people use paraffin for cooking, heating and lighting. A lack of refuse removal in urban areas leads to the establishment of an informal solid waste stream, which includes litter pollution and informal


124

dumping sites. Solid wastes that remain uncollected in open spaces accumulate and cause serious health and environmental problems. These solid waste streams are caused by the fact that local authorities remove refuse only once a week, and in some new settlements refuse is not collected at all. This therefore results in informal dumping sites, especially in open spaces or parks which are not looked after by the local municipality. Figure 1.3 is a photo taken of an informal dumping site in Phase 6 of the Free State housing development scheme.


125

Figure 1.3 Phase 6: Informal dumping site (Source: own photo)

The health, economic and environment costs of poor living conditions are reflected in the Free State province. The Free State seems to have a higher percentage of households residing in informal housing units than the average for South Africa. (See figure 1.4) The analysis of the situation in the Free State further reinforces the notion that using the physical features of a housing unit might only provide a limited basis from which to develop a frame-work for assessing the concept of a housing backlog. Secondly, if it is accepted that approximately 112 000 households (in informal settlements) are in need of housing assistance, then the need exceeds the availability of funds (approximately 35 000 subsidies for the period 1999/2000 – 2001/2002). (National Department of Housing, 19990 Table 1.1 and Figure 1.4 show the physical nature of housing units in the Free State region in comparison with South Africa as a whole. Figure 1.4 shows the graphical representation of the physical nature of housing units in the Free State in comparison with the rest of South Africa (Refer to Table 1.1 for percentage identification) The physical nature of housing units in the Free State in comparison with South Africa

Percentage

Free State (%) 60 50 40 30 20 10 0 -10

1

2

3

4

5

6

South Africa (%)

7

8

9

10

Type of house

Figure 1.4 (Source: National Department of Housing, 1999)

11

12


126

At an estimated growth rate of 3% per annum in this type of housing, it would mean that at least 3 000 subsidies should be available to accommodate new inhabitants. Therefore, assuming that the problem is the type of housing unit does not necessarily reflect the worst settlement scenario nor is it likely to solve the housing problem. 4 ACCESS TO WATER Figures 1.5 and 1.6 show the method of water supply, per household, in the Free State (Figure 1.5) in comparison with the rest of South Africa (Figure 1.6). Free State (%) Borehole/rain water tank 3% Water carrier/tanker 1%

Dam/river/stream/ spring 1%

Unspecified/ other 1%

Piped water in dwelling 40%

Public tap 24% Piped water on site 30%

Figure 1.5 (Source: National Department of Housing 1999)

It seems that approximately 70% of households in the Free State have water inside their house or on the stand, while 23% or nearly 150 000 households are dependent on a communal tap for water. No indication is provided with regard to the distance to the communal tap.

South Africa (%)

Borehole/rain water tank 5%

Dam/river/stream/ spring 12%

Water carrier/tanker 1% Public tap 20%

Piped water on site 17%

Unspecified/ other 2%

Piped water in dwelling 43%



127

The Free State (40%) has a smaller percentage of households with piped water in the dwelling than the average for South Africa (43%). Access to water has more healthy benefits than access to a formal housing structure. So perhaps families/households residing in formal housing units, without access to water on the side, are more of a concern than households in informal housing units with access to water on the site. (National Department of Housing, 1999). 5 ACCESS TO SANITATION Figure 1.7 shows the sanitation figures of the Free State as compared to the rest of South Africa. Sanitation in the Free State in comparison with South Africa

45.1

30.0

50.3

25.1

32.2 20.6

20.0 10.0

8.9

4.6

Fl

us h

e

ne

at r in Bu ck et l

at ri tl Pi

or

ch em ic

al to ile t

0.0

12.3 0.3

0.6

ed /o th er

40.0

No ne

Percentage

50.0

Un sp ec if i

60.0

Free Sate (%) South Africa (%)

Type of sanitation


Another aspect which impacts negatively on public health is the degree of access to sanitation, and it should thus be considered in terms of current housing conditions, and access to flush and chemical toilets. The Free State percentage is approximately 5% less than the South African average. Only in terms of the percentage of households with access to bucket latrines, the Free State (20.6%) is proportionally higher than the South African (4.6%) average. Although pit latrines may have major environmental consequences and bucket systems may lead to certain health problems, the problem is less significant than in those households with no sanitation system at all, and it is significant to note that 18% of all households in informal housing units have no access to any form of sanitation. The highest percentage of households with no sanitation is found in traditional housing units, followed by informal dwellings, which also have a relatively high percentage of access to pit latrines and probably reflect the nature of rural sanitation. 6 ACCESS TO ENERGY


128

Access to energy refers to access to, and the utilization of different energy sources for lighting, heating and cooking. In terms of using electricity for lighting, the Free State average is the same as the South African average (58%). However, the use of electricity for heating and cooking in the Free State is lower than the South African average. 7 REFUSE REMOVAL Figure 1.8 shows the access to refuse removal in the Free State in comparison with South Africa Refuse removal in the Free State in comparison with SA

Method of refuse removal

No refuse dump

9.6 5.7 32.7 24.8

Own refuse dump Communal refuse dump

3.2 4.3

Removed by Local Authority less often

2.3 4.2

Removed by Local Authority once a week

Method of refuse removal South Africa (%) Method of refuse removal Free State (%)

52.2 61.0 Percentage


The lack of refuse removal has a major effect on the settlement environment. Although it is possible for a household to manage its own refuse dump effectively, the reality is that effective management of an own refuse dump only takes place in limited cases. Once again the highest percentage of lack of refuse removal is closely linked with traditional dwellings in rural areas where approximately 80% of, all households have no access to refuse removal. The pollution resulting from informal settlements in urban areas is more concentrated, and the impact is greater. Furthermore, not enough funds exist to address the problem. The housing approach should include a balance between infrastructure and top structure provision. Also, it seems that more low-income people find it difficult to pay their services and taxes, with approximately 72% of households in the Free State earning less than R1 500 per month Low-income, state subsidized housing in the Free State has been dominated by policy guidelines prescribing a minimum house size of 40m2. Nearly 85% of all housing projects in the Free State have had to take place on existing sites. To ensure a 40m2 house, developers had to save on infrastructure, surveying, and town planning costs, with the following consequences:


129

• In areas where no infrastructure was available, housing development was limited. • Services could not be provided for a 40m2 house on the current subsidy of R62 000. The Free State province had a fairly one dimensional policy approach – looking primarily to improve the physical living space of end-users. In the process, access to infrastructure, such as water and sanitation, was neglected and we argue that it impacted negatively on the financial sustainability of settlements. The current Free State housing policy has concentrated on the top structure while the service levels of stands which have the biggest impact on the environment and public health have not received the same amount of attention. However, to address these environmental considerations, the levels of services should certainly be addressed within the available subsidy. The Free State policy also neglects the different dimensions of housing and settlement problems. 8 EMPIRICAL STUDY In August 2009, one hundred questionnaires were handed to residents of Freedom Square in Mangaung, Free State. The questionnaires consisted of twenty-one questions and a 100% response rate was achieved. 8.1 Analysis of questionnaires After all the questionnaires were received, the data was analysed and the following conclusions were determined. Q.1) Q.2)

55% of the Freedom Square population live in RDP houses, 38% in shacks, 6% in self built houses, and 1% in rented shacks. 42% of RDP houses have more than 3 rooms, 6% have 3 rooms, while 26% are single roomed and 26% are two-roomed houses.


Question 1

Q.3) Q.4)

Q.6)

Question 2

49% of the households have between 1 and 3 members living together, 35% have between 4 and 6 members living together and only 16% have more 6 members living together. 19% of the respondents had no children at all, 39% have between 1 and 2 children, 31% have between 3 and 4 children, 8% have between 5 and 6 children, and 3% have more than 6 children.

Question 3

Q.5)

130

Question 4

74% of the children live together with their parents and 26% does not live with their parents. Only 26% of households have other dependants living with parents which are not necessarily their own.


Question 5

Q.7) Q.8)

131

Question 6

The question regarding employment was to determine how many households have some sort of income. About 57% of the households did have someone employed. It was discovered that 68% earned between R0 and R1000, 27% earned between R1100 and R2000, 3% earned between 2100 and 3500 and only 2% earned more than 3500 per month.

Question 7

Question 8


132

Q.9)

For the 43% of households with no one employed, 68% receive a government grant, 22% live on doing odd jobs and 10% are pensioners. Q.10) This question aimed at analyzing the marital status of the householders. 68% of the respondents were single, 22% were married, only 1% were divorced and 9% were widowed. Question 9

Question 10

Q.11) This question was only applicable to married couples of the Freedom Square population to determine whether their spouses were employed. Only 18% have spouses who are employed. Q.12) The aim of this question was to determine the type of ablution facilities people use in Freedom Square. 72% use flush toilets, 8% use pit latrines and 7% use the bucket system. Question 11

Question 12


133

Q.13) This question was only applicable to households that use flush toilets to determine whether they encounter any blockages. About 58% of the flush toilets do occasionally block. Q.14) For those households that indicated that they do encounter some blockages from time to time, 50% indicated that they encounter these blockages within 3 months of servicing the system.

Question 13

Q.15) Q.16)

Question 14

98% of households stated that they have access to clean water. 70% of these households have the clean water points laid in their own yards, thus only 30% have to fetch water elsewhere. Q.17) This question was only applicable to households with water points, to determine affordability. Only 49% can afford to pay their water bill. Q.18) 61% of the households which can not afford the water points laid on did state that the municipality reduced their water supply to a minimum.


Question 17

Q.19) Q.20) Q.21)

134

Question 18

73% of households have access to electricity. 27% do not have electricity, 29% use paraffin and 71% uses other means for cooking and lighting. 98% of the households with access to electricity use the prepaid system.

9 CONCLUSION AND RECOMMENDATIONS The South African housing problem does not only refer to the shortage of housing, but the problem is more complex than what the government anticipated. Housing solutions should include a policy that re-aligns to improve housing delivery and planning around the following aspects: Community health and safety Water, sanitation and refuse Better housing to avoid the break up of families Community satisfaction and involvement Better regulations for contractors and designers Provide a standard housing specification that is of course approved by the respective communities. • Attract investors and provide them with tax benefits or other incentives • • • • • •


135

• Generate employment to empower the community to build for themselves • Provide strict policies that will eradicate corruption by government officials and other stakeholders • Make contractors liable for poor quality work The list can be endless but these are just some of the elements that will help solve the problem, even if not completely, but will reduce the degree of severity of the problem. Important risks were identified in this study for example financial risk, environmental risk, health and safety risk and planning risk. It seems evident that risk management is one of the most fundamental function that the quantity surveying profession may perform in the future, but the quantity surveying profession is clearly absent in respect of many housing development projects. This in itself is not the community or the government’s fault. It is therefore proposed that the quantity surveying profession should pro-actively get involved and show its worth in the housing sector, and perform a vital role in limiting these risks especially financial risk. 10

BIBLIOGRAPHY

African National Congress (ANC), 1994. The Reconstruction and Development Programme (RDP). Umnyango Publications, Johannesburg, South Africa. Dewar, D. 1978. Eight criteria for the evaluation of housing policy and an evaluation of housing policy in South Africa in terms of these. ISILI san sise Africa 2 (1): pp 36-47 Dison, L. 1993. A Note on Site and Service Projects. Urban Forum Vol. 4 (2): pp. 93-101 Hamdi, N. 1995. Housing without houses: Participation, Flexibility, Enablemen. Intermediate Technology Publication. London, UK Hauptfleisch, A.C. 2001. Better housing for South Africa? Acta Structilia 8 (1) National Department of Housing, 1999. Implementing the Habitat Agenda th in South Africa. Report to the 17 session of the United Nation Commission on Human Settlements. Nairobi, Kenya. Nxumalo, C. 2002. Emphasis now on quality Enterprise, 166,-p.54-55, June Stewart A.F.E. 2001. Architects and Housing: Challenges within the LowIncome Housing Sector in South Africa Robbins, E. 1985. Appropriating the Appropriate. The Architectural Review. Vol. CLXXVIII, No. 162. 13-18


136

Stewart, A.F.E. 2001. Architects and Housing: Challenges within the lowincome housing sector in South Africa. Unpublished University of the Free State Master’s thesis Ward, C. 1990. Talking Houses: 10 Lectures. Freedom Press. London, UK.

SACQSP 2009-11

Lessons learned for the future: In situ upgrading and eradication of Informal Settlement in South Africa – Gauteng Province. Aigbavboa CO1, Thwala WD2 1 2

Department of Construction Management and Quantity Surveying, University of

Johannesburg, [email protected], Tel No. +27 -11-5596398

Department of Construction Management and Quantity Surveying, University of

Johannesburg, [email protected], Tel No. +27-11-5596048

ABSTRACT Purpose: The aim of this research is to give an insight into lessons learnt so far on the in situ upgrading and eradication of informal settlements in South Africa. This is with a view to access progress made to date, the line of focus and to ascertain if in situ upgrading or eradication of informal settlement is the best option in solving the problem of informal settlement integration into the large society. The experiences gained to date on the upgrading of informal settlement are also discussed. Design/Methodology/Approach: The research is conducted with reference to existing theoretical literature, published and unpublished South Africa research. The study is mainly a literature survey/review and looks at challenges that have been overcome to bring about the success made to date, thus achieving the goals and objectives of a city without slum. The research ties up the identified challenges with recommendations to the problems to enhance the reality of having a city without slum in 2014. Findings: One of the primary findings that emanated from the study revealed that all development where people have to be displaced or inconvenienced has all come with problems. Other findings attribute the little success made to date, to a well structured housing system. Though policy made is not well implemented for the betterment of all, but progress has been made nonetheless. Also, it was discovered that since 2004 to date, progress made is not laudable as in most cases, rights to housing have been violated, but strength needs to be drawn from the success to achieve the ultimate goal of a society without slum.

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The future: What next? Lessons Learned for the future: Informal settlement

Originality/Value: The upgrading and eradication of informal settlement has long been a subject of global discussion and have taken a firmer root since it was declared as one of the millennium development goals agenda. The paper explored and revealed the progress made so far with the lesson learnt to date in informal settlement upgrading and eradication. Conclusion: The Informal Settlement Upgrading Programme contains important possibilities for poverty reduction. Those responsible for the monitoring and evaluation must pay attention to the political dynamics that unfold during implementation, both in the way they limit and in the way they advance informal settlement upgrading. The goal to improve the lives of those living in informal settlements by 2014 in South Africa – Gauteng to be specific is not achievable under the current challenges and problems in place. Keywords: Informal settlement, In situ Upgrading, eradication, Housing, INTRODUCTION The 1997 South Africa Housing Act defines “Housing” as a variety of processes through which habitable, stable and sustainable public and private residential environments are created for viable households and communities. South Africa is just one of the more than 30 countries that include the right to housing in its Constitution (The UN Committee on Economic, Cultural and Social Rights, General Comment, 2001). The right to housing is subject to progressive realization and the South Africa government has worked as effectively as possible to achieve this right, (Financial & Fiscal Commission Submission for the Division of Revenue 2006/07). However the State has also taken reasonable legislative and other measures within its available resources to achieve the progressive realisation of the right to adequate housing (Department of Housing, 2006). The South African government since 1994 have initiated and implemented several housing delivery programmes and subsidy mechanisms to provide houses to its citizens thus eliminating the incidence of slum housing which is associated with poverty. This is done to fulfil the vision to adequate housing for all as reflected in the National Housing Policy framework, which is 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, thereby achieving the target of the Government of National Unity of 1,000,000 houses in five years (South African Government, 1994). South Africa’s housing programme was redirected when the comprehensive plan for sustainable human settlements was introduced in October 2004 to address the problem of informal settlement in the country. The plan builds on the 1994 White Paper on Housing, but shifts the focus of the national


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housing programme from simply ensuring the delivery of affordable housing units to qualifying beneficiaries, but to also provide housing for those living in informal settlement thereby ensuring that adequate housing is provided for settlements that are both sustainable and pleasant (Department of Housing, 2004). Five years after the enactment of the informal settlement intervention act, it is yet to new break any new ground as intended in the national housing policy refinement in 2004 and as also contextualised in the breaking new ground policy. Instead, motivation to eradicate or eliminate informal settlements through their removal has intensified. PURPOSE OF THE PAPER The research is a summary of lessons learnt so far on the in situ upgrading and eradication of informal settlement in South Africa. The progress made to date is accessed and also points into the experiences gained to date on the upgrading of informal settlement. It further points to the challenges that have been encountered in the upgrading of informal settlement and a further evaluation of the reasons why the problems of informal settlement still persist in South Africa. The paper ties up by harnessing the identified gap with solutions to the problems to enhance the reality of having a city without slum in 2014. SOUTH AFRICAN APPROACH TO INFORMAL SETTLEMENTS Among many other countries, South Africa is currently faced with problem of informal settlements upgrading. The unemployment rate that is still very high has made many people to live in an unstructured settlement (Huchzermeyer, 2009). Statistics South Africa, (2009), asserted that the population of unemployed people seeking employment has increased from 3,873-million to 4,184-million. South African cities are hugely inadequate – shaped by discriminatory and repressive apartheid planning and further expanded by powerful and far from equitable market processes, driving apartheid’s planned inequality and exclusion even deeper, and effortlessly overriding attempts at urban democratisation and integration (Turok, 2001 and Huchzermeyer, 2009). Informal settlements are never welcomed as informal land occupation by the poor has been seen as entirely ineffectual in shaping the city (Huchzermeyer, 2009). Informal settlements are dense settlements comprising of communities housed in self constructed shelters under conditions of informal or traditional land tenure. The occurrence of informal settlements is part of the urbanisation process in third world countries. Informal settlements occur when the current land administration and planning fails to address the accommodation needs of certain communities

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(www.gausafety.gpg.gov.za). Informal settlements are usually associated by rapid, unstructured and unplanned development. Further research as reported by the Development Action Group (2007) has shown that South Africa has a high rate of urban population growth that directly contributes to the mushrooming of squatter camps and informal settlements. In 1995 South Africa’s total population was estimated at approximately 44 million with estimates for annual population growth for urban black Africans ranging from 2.4% to 3.5%. The majority of South Africa's poor are black Africans, as are the majority of informal settlement dwellers because of government that existed before 1994. In 1994, approximately 1,06 million households comprising 7.7 million people lived in informal settlements (Muzondo et al., 2004). Coupled to this, an estimated 720 000 serviced sites that were provided by provincial legislatures under the previous government required upgrading and 450 000 people lived in various, often inappropriate, forms of hostel accommodation (Republic of South Africa 1994, and South African Institute of Race Relations 1994). Cape Town’s informal settlement, during the course of this research is growing at a substantial proportion of its population in formal properties that need improved shelter. In 1995 it was estimated that more than 400 000 people were inadequately housed in the Cape Town Metropolitan area. The Metropolitan Spatial Development Framework (1995) cited urban growth rates for Cape Town of between 1.8% and 5% per annum. This was due both to organic growth and a major influx of people, predominantly Xhosa speakers, with the easing of the pass laws in 1986 (Mazur and Qangule 1995). The rapid growth of informal settlements in the urban areas of South Africa poses significant challenges to both national and local level government. The State’s response to informal settlements over the last twelve years has been characterized by disaster management strategies in the period prior to 2004 and thereafter programmes to eradicate informal settlements through large-scale capital intensive structural interventions (often as Roll-Over or Greenfield developments) have been underway (Development Action Group, 2007). However, informal settlements are a manifestation of the two main challenges facing human settlements development in the new millennium; which are rapid urbanization and the urbanization of poverty. (UN HABITAT, 2003). The UN-HABITAT (2006) estimates that in the year 2006 nearly one billion people live in informal settlement areas in the cities of the world, most of these in the developing countries. A greater concern is that if not dealt properly, the number of informal settlement dwellers is predicted to double by 2030. In response to these critical circumstances, the “Cities Without Slums” Action Plan was launched by the Cities Alliance in 1999, which later on was endorsed by the 150 heads of state and government attending the United Nations Millennium Summit in the year 2000, of which South Africa was a signatory. The plan was reflected in the United Nations Millennium Declaration, along with the other goals set to “Ensure


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Environmental Sustainability”. The goal is to; "Achieve significant improvement in lives of at least 100 million slum dwellers, by 2020" (United Nations, 2000) and not the displacement and eradication of the settlement were not necessary. INFORMAL SETTLEMENTS IN GAUTENG In his 2004 State of the Nation Address, the President Thabo Mbeki, committed Government to the task of building a People‘s Contract for the eradication of poverty and underdevelopment as well as the improvement in the quality of life of people. The President indicated that a comprehensive programme dealing with human settlement and social infrastructure development should be prepared (Gauteng Department of Housing, 2005). The statement and mandate made the Gauteng Department of Housing to initiate the registration of all inhabitants residing in informal settlements to record details of occupants to establish the backlog and subsequent challenges in terms of the eradication of all informal settlements by 2014 in the Gauteng Province (Gauteng Department of Housing, 2005). The Gauteng Department of Housing went further to confirmed this commitment by unveiling the Provincial plan for formalising all the informal settlements situated on safe, habitable and appropriately designed land, and said it would eradicate all the informal settlements in Gauteng by 2014 (Gauteng Department of Housing, 2005). A total of 405 informal settlements were visited in the Gauteng Province. In the process, 395 informal settlements were identified for eradication by 2014. Out of the 395 identified, only 122 of the settlements were suitable for in situ upgrading and the remaining earmarked for relocation to identified projects (Gauteng Department of Housing, 2009). However, by August 2008, a total of 68 of 122 identified suitable for in situ upgrading has been formalised, with an additional 56 to be formalised by the end of 2009. In addition, only 12 informal settlements have been eradicated to date. A further 24 informal settlements are in the process of being eradicated, with housing construction underway. This will bring the provincial total of eradicated informal settlements to 36 in 2009 (Gauteng Department of Housing, 2009). The current confirmed figure for informal settlements in Johannesburg as at today is 235. INFORMAL SETTLEMENTS AFRICA & BRAZIL

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COMPARISON

BETWEEN

SOUTH

The thinking that the task of hosting the 2010 Soccer World Cup requires the elimination of informal structures in order to welcome international spectators is shaping approaches in high offices of provincial and local

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government. This thinking is distant from contemporary policy in Brazil, a country to which the South African government, business and academia look for south - south comparison, inspiration and partnership. In response to market-driven fragmentation of its cities, Brazil has embraced informal land occupation as a process that can yield desirable results in terms of land use and land distribution. In 1988, an amendment to the Brazilian Constitution introduced an innovative legal provision that transfers ownership rights to informal occupants of private land after a period of peaceful and uncontested occupation of 5 years (Fernandes & Rolnik, 1998, Huchzermeyer, 2009). Thus, unlike the case in South Africa, de facto use of the land in Brazilian cities has influence in the planning process. Although far from ideal, Brazilian cities are visibly shaped by informal processes driven by the poor, as much as they are by the market. Time and again, Brazilian urban scholars are surprised by the harsh control maintained over the South African urban environment, particularly Johannesburg, many years after apartheid (Huchzermeyer, 2009). They question the widespread un-cooperativeness by local and provincial government to recognise informality as a process that can positively shape urban space. INFORMAL SETTLEMENT UPGRADING PROGRAMME – SOUTH AFRICA The Minister of Housing in 2004 highlighted the need for government intervention to improve conditions in informal settlements. A lack of infrastructure and effective governance are two key areas that were identified as being in need of improvement. Informal dwellings are deficient mostly in water, sanitation, electricity, ventilation, food preparation and storage and such conditions are associated with a range of health risks including diarrhoeal and respiratory diseases and the hazards of fire (Richard, 2006). Social problems, such as crime, also affect residents in informal settlements where they become more fearful at night due to the lack of basic policing, services and infrastructure and this increases the risk of victimisation (Shaw et al., 2001). Housing policy at national level underwent a revision after the first 10 years of democracy (Department of Housing, 2004). The revised housing programme, which was included as Chapter 13 of the Housing Code as Informal Settlement Upgrading Programme (Department of Housing, 2004), was appropriately termed Breaking New Ground. While practitioners and analysts have found the new Housing Programme to be largely in continuity with previous policy (Charlton & Kihato, 2006). Under this programme government subsidies are neither calculated as a standardised amount per household, nor are to be drawn down on the basis of individual households’ housing subsidy eligibility. Instead, grant


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funding for land, infrastructure and community facilities is applied to the community as a whole (with the exception of the individualised or household-linked subsidy in the fourth phase of the programme for improving top-structures or houses). The funding mechanism is therefore inclusive of those previously not qualifying for subsidies under the national housing subsidy programme (Huchzermeyer, 2009). The programme requires an investigation by the municipality into the feasibility of in situ upgrading and assumes that relocation is necessary in some cases, but only as a last resort. The Informal Settlement Upgrading Programme responds to concerns about housing rights violations raised in a number of court cases since 2000, and is welcomed by human rights organisations (COHRE, 2005). The programme was launched through a pilot project in each of the nine provinces. In the Eastern Cape Province, the Duncan Village pilot project (Buffalo City Municipality, East London) has been completed and the municipality is moving to scale on implementing the Informal Settlement Upgrading Programme (C Sam, Director, Development Planning, Buffalo City Municipality, personal communication, 12 September 2006). However, cities such as Johannesburg, Ekurhuleni (the former East Rand), and Ethekwini (Durban), while professing to upgrade informal settlements in situ, do not apply the principles and funding mechanisms of the Informal Settlement Upgrading Programme. Instead, they deal with informal settlements in the conventional project-linked subsidy approach (based on subsidy eligibility of individual households), resulting in relocation or at best disruptive ‘shack shifting’ or rollover upgrading, mostly with the displacement of non-qualifiers of the housing subsidy. Thus city officials consciously or unwittingly act as servants of orderly development, global competitiveness and the market, rather than as implementers of the transformative aspects of the Constitution (Huchzermeyer, 2009) and of progressive policy and legislation that has been developed to ensure the realisation of constitutional rights. The introduction of the Breaking New Ground Framework in 2004 resulted in the first Upgrading Informal Settlement Programme providing a platform to initiate upgrading projects which do not require project-linked housing subsidy finance (Development Action Group, 2007). Since the introduction of the programme government has focused on an approach aimed to eradicate informality (Department of Housing, 2004), either through evictions or highly technocratic and often market-driven infrastructure development upgrading programmes (Huchzermeyer, 2004). These approaches ignore the link between economic security and the growth of settlements and thus do not address the growing inequity in South Africa as they have marginal economic benefits for the poor and do not acknowledge and preserve investments which informal settlement dwellers place in their homes (Hardoy et al., 2001). The eradication of what appears to be the greatest threat to the property market (shacks) is more powerful than constitutional obligations (Huchzermeyer, 2009).

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Informal settlement upgrading programmes has not matched the rapid delivery of housing pace by the coordinated supply of social infrastructure such as schools, clinics, sports and recreation facilities etc. Since the inception of this programme in November 1999 until 31 March 2007, 141 projects with a total of 139 649 subsidies have been approved (National Department of Housing, 2007). CHALLENGES OF INFORMAL SETTLEMENT UPGRADING IN SOUTH AFRICA The tone of the government’s current campaign against informal land development and informal house construction by the poor suggests that it is dealing with a sinister, undesirable, pathological and criminal process (Huchzermeyer, 2009). Terminology otherwise applied to life-threatening epidemics and violent crime is officially used: ‘eradication’, elimination’ and ‘zero tolerance’. This aligns with the continued fixation with orderly and segregated development in South African cities (Huchzermeyer, 2003 & 2009). Informal settlement eradication is often justified with reference to the normatively inappropriate ‘Cities Without Slums’ campaign of the Cities Alliance, a joint programme of UN-Habitat and the World Bank, also incorporated into the Millennium Development Goals (UN-Habitat, 2003). Millennium Development Goal Target 7 is official targeted to significantly improving the lives of at least 100 million slum dwellers by 2020 (United Nations, 2000), if reached, which is widely acknowledged to be unlikely (UN-Habitat, 2005), would affect only 10 per cent of the world’s growing slum population of the year 2000, and would not achieve cities without slums campaign of the cities alliance (Bazoglu, 2005). Several countries governments, South Africa’s included, interpret the Millennium Development Goals to mean eradication of slums, rather than improvement of the lives of those living in them. The following is a summary of the challenges that has been encountered in the upgrading of informal settlement in South Africa – Gauteng to be specific; • Budgetary constraints from both Department of Housing as well as municipalities funding for bulk services and internal services top ups – means a long waiting time for most settlements • Land legal issues relating to complex statutory land assembly processes • Lack of bulk services infrastructure in many areas • Relocation issues such as; - Most relocation and eradication not well planned have resulted in worsened life condition due to distance of the relocation sites from livehoods


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Disruption of social networks, livelihoods and schooling and even in some cases access to basic necessities such as water and shelter • Developers have been reluctant to work on projects involving informal settlements • A huge implementation gap in terms of progressive legislation, with finances and technical skills lacking. Mobilizing funds is still a fundamental problem, particularly because financial institutions are still not willing to make loans to the low-income sector. • Eradication in most cases is a housing right violation as seen from a number of cases • Lack of communication at all three tiers of government with the informal settlements (UN-HABITAT, 2007) From the above challenges, it shows explicitly while the problems of informal settlement still persist in the country – Gauteng Province specifically. However one direction that should not be over looked in incorporating the informal settlement to the large society is the improvement of the lives of those living in them. If this is not done, no matter the level of upgrading, informal settlement will be a reality that the government will have to put up with. FINDINGS The paper presents the following findings: Findings that emanated from the study revealed that to an extent the informal settlement upgrading programmes have been successful. But it has not adequately accomplished what it was designed to implement. But overall, progress has been made and the programme implementation still needs improvement in terms of application in different communalities. Further finding showed that most relocation sites present disadvantages in terms of access to schooling, livelihoods and the job market, public transport and recreational amenities. Furthermore, other observation revealed that most of the informal settlements would like the feasibility of in situ upgrading to be investigated rigorously (as called for by the programme), and if relocation is found to be necessary for some or all of the residents ‘as a last resort’ (as stated in the programme), they would like the same principles and approaches to be applied to the relocation (as required by the programme). While detailed case studies of these settlements would provide deeper insight into the contradictions of local government intervention, as they are indicative of the dominant understanding and interpretation of informal settlements, and reveal important aspects of re-skilling or mindset change that need to be addressed in order for the Informal Settlement Upgrading Programme to be rolled out.

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LESSON LEARNED A number of important and valuable lessons have been learned during the period 1994 – 2009 with respect to the upgrading of informal settlement or in situ upgrades of informal settlements in South Africa. They can be summarised as follows and can be used as a basis for formulating new strategies and approaches • Conventional informal upgrading strategies have resulted in a large number of relocations. If the remaining informal settlements were to be upgraded utilising such strategies then the scale of relocations to poorly located, peripheral areas would be vast. Such a strategy would probably not be workable or sustainable and as such government should adhere to the policy document for better implementation of the informal settlement upgrading programme. • Housing and infrastructure is typically prioritised and dealt with in isolation from other important supports or interventions such as, economic development, health care, crime prevention, education, food security among others. • Up until recently, the national policy framework for housing was relatively inflexible and was designed around greenfields (as opposed to upgrade) projects. • Consolidation and the incremental development of sites by beneficiaries were far greater where a higher level of service was installed. • The number of non South Africans residing in informal settlement sites is on the increase to the extent that a number of projects would not be viable in terms of qualifying criteria for the allocation of housing to informal settlement dwellers. However, efforts have been made to create sustainable settlements for the informal settlements that has either been upgraded or relocated. There still are however, enormous challenges to develop informal settlements in way that allow residents to create livelihood, access social services, and enjoy a supportive environment. CONCLUSION AND RECOMMENDATIONS Informal settlement upgrading by virtue of its nature, is not simply the responsibility of housing departments, but rather the multi-sectoral responsibility of a range of stakeholders or partners who should work collectively to address the community’s development priorities through a range of complementary social and physical development initiatives that address urban livelihoods, land tenure, co-operative governance, social inclusion and environmental security. In this context, in situ upgrading creates an impetus for inclusive and integrated development, which has the


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potential to reduce poverty, and to socially, physically and economically integrate an informal settlement into the wider city. However the following recommendations are made to improve informal settlement upgrading and ultimately to improve the lives of those living in slums in South AfricanGauteng Province. is prepared to meet the United; • The government should know that community organisation in South African ‘informal’ settlements must also be recognised as a primarily human endeavour. While there is evidence that community leaders are corruptible and occasionally enrich themselves, the situation is far from that in the famous favelas of Rio de Janeiro, which are ruled by drug-dealing gangs (Souza, 2005). Far from promoting informal settlements, they seek recognition of the existing situation and a solution that best responds to the residents’ needs. • Government must build on community involvement and make informal settlement residents to play an active part in the upgrading or relocation process. • Local government officials on the ground should ensure to balance the human needs-driven demands of informal settlement communities with those of the discourse of global competitiveness. • The constitutional rights of those already affected and those to be affected by the eradication of informal settlement must be protected and restored. • Informal Settlement Upgrading Programme officials must be sensitised to the obligations placed upon them by the transformative South African Constitution, and understands that the demands of global competitiveness are subordinate to these obligations. This sensitisation must be informed by a deeper understanding of the spatial legacy of the apartheid city, orderly development and the market. • The Department of housing must re-address the current way informal settlement upgrading programme implementation is being handled. The original policy document and strategies must be followed to avoid the displacement and suffering inflicted on the lives of those living in slums. • Furthermore, government must ensure that the informal settlement upgrading programme creates jobs and improve the lives of the people living in slums. If this is not made a priority, the environment being upgraded today will become the slums of tomorrow to be upgraded or to be eradicated again. The foregoing calls for a deeper reform of urban planning beyond orderly development. This is to provide the tools to give South African cities a human face that is not contorted by repression and exclusion. REFERENCES

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ANNUAL SUBMISSION FOR THE DIVISION OF REVENUE, 2006/07, Available from: www.ffc.co.za/docs/submissions/dor/2006/prelims, [Accessed on 22/05/2008]. BAZOGLU, N, 2005, The need for a more ambitious target. Habitat Debate, September: 8. CENTRE ON HOUSING RIGHTS AND EVICTIONS, 2005, Any room for the poor? Forced evictions in Johannesburg, South Africa. Geneva: Centre on Housing Rights and Evictions CITY OF JOHANNESBURG, 2004, Database of informal settlements and housing projects. Department of Housing, City of Johannesburg. CITY OF JOHANNESBURG, 2005, Lehae Relocation Strategy, Annexure to the Resolution of the City of Johannesburg, 28 July, Concerning Thembelihle and Lehae, faxed to Planact in January 2006, Johannesburg. SAM C, 2006, Director, Development Planning, Buffalo City Municipality, personal communication, 12 September 2006 DEPARTMENT OF HOUSING, 2004, Annual Report of Department of Housing: Gauteng Provincial Government, Johannesburg, South Africa Department of Housing, (2006) Department of Housing, (2008) Annual Report of Department of Housing: South Africa Department of Housing, (2006) DEPARTMENT OF HOUSING, 2005, Annual Report of Department of Housing: Gauteng Provincial Government, Johannesburg, South Africa Department of Housing, (2006 - 2009) DEPARTMENT OF HOUSING, 2004, ‘Breaking new ground’: a comprehensive plan for the development of sustainable human settlements. As approved by Cabinet and presented to MINMEC on 2 September 2004. Pretoria: DoH. DEVELOPMENT ACTION GROUP, PROGRAMMES – Informal Settlement Upgrading, 2007, Available from www.dag.org.za/docs/programmes/informadoc.pdf [Accessed on 16/09/2009]. FERNANDES, E & ROLNIK, R, 1998, Law and urban change in Brazil. In Fernandes, R & Varley, A (Eds), Illegal cities: law and urban change in developing countries. London: Zed Books. HARDOY, J, MITLIN, D AND SATTHERWAITE, D., 2001, Environmental Problems in an Urbanizing World, Finding Solution in Cities in Africa, Asia and Latin America, Second edition. HUCHZERMEYER, M, 2003, Low income housing and commodified urban segregation in South Africa. In Haferburg, C & Ossenbruegge, J (Eds), Ambiguous restructurings of post-apartheid Cape Town: the spatial form of socio-political change. London: LIT Verlag. HUCHZERMEYER, M, 2004, From ‘contravention of laws’ to ‘lack of rights’: redefining the problem of informal settlements in South Africa. Habitat International, 28(3): 333–47.


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HUCHZERMEYER, M, 2006, The new instrument for upgrading informal settlements in South Africa: contributions and constraints. In Huchzermeyer, M & Karam, A (Eds), Informal settlements: a perpetual challenge? Cape Town: University of Cape Town Press. HUCHZERMEYER, M, 2009, The struggle for in situ upgrading of informal settlements: a reflection on cases in Gauteng',Development Southern Africa,26:1,59 — 73 MABIN, A, 1995, On the problems and prospects of overcoming segregation and fragmentation in southern Africa’s cities in the postmodern era. In Watson, S & Gibson, K (Eds), Postmodern cities and spaces. Cambridge: Blackwell. MAZUR R. E AND QANGULE V. N, 1995, Africa Migration and Appropriate Housing Responses in Metropolitan Cape Town. Western Cape Community-based Housing Trust, Draft Report. MUZONDO, I.F., M. BARRY, D. DEWAR AND J. WHITTAL., 2004, Land Conflicts in Informal Settlements: Wallacedene in Cape Town, South Africa, FIG Working Week 2004, Athens, Greece. METROPOLITAN SPATIAL DEVELOPMENT FRAMEWORK, A Guide for Spatial Development in the Cape Metropolitan Region, 1995, Draft for Discussion. Western Cape Economics Development Forum, Urban Development Commission POLICING INFORMAL SETTLEMENT IN GAUTENG, Available from http/www.gautsafety.gpg.gov.za/POLICING%20INFORMAL.doc [Accessed on 15/09/2009]. REPUBLIC OF SOUTH AFRICA, 2003, Towards ten years of freedom: progress in the first decade – challenges for the second decade. October. Pretoria: Government Printer. SOUTH AFRICA INSTITUTE OF RACE RELATIONS 1996, Race Relations Survey 1995/1996. Johannesburg, South Africa Institute of Race Relations. SHAW, R., A. LOUW, M. MASHIYANE, S. BRETTELL: 2001, Reducing Crime in Durban, Victim Survey and Safer City Strategy, Institute for Security Studies (ISS), Pretoria, Monograph No 58. SOUZA, M, 2005, Urban planning in an age of fear. International Development Planning Review, 27(1): 1–19. TABAIJUKA, A, 2005, FOREWORD. IN ONYANGO, M, WASONGA, G, ASAMBA, I, TEYIE, P, ABUYA, J, OBERA, B & OOKO, E (EDS), Situation analysis of informal settlements in Kisumu. Kenya Slum Upgrading Programme, Cities Without Slums Sub-Regional Programme for Eastern and Southern Africa. Nairobi: Government of Kenya and UN-Habitat. TUROK, I, 2001, Persistent polarisation post-apartheid? Progress towards urban integration in Cape Town. Urban Studies, 38(13): 2349–77.

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UNITED NATIONS DEVELOPMENT PROGRAMME, 2000, The Concept of Participation, Available from www.undp.org/csopp/CSO/Newfiles/docemppeople.html, [accessed on 05/06/2008]. UN-HABITAT, 2005, Slum challenge and shelter delivery: meeting the Millennium Development Goals. Background paper prepared by the UN-Habitat Regional Office for Africa and Arab States and delivered to the AMCHUD Expert Group, 31 January–4 February, Durban, South Africa. UNITED NATIONS, 2000, United Nations Millennium Declaration. Resolution adopted by the General Assembly, 18 September. New York: United Nations.

SACQSP2009-12

The Future of Construction Education In South Africa: Investigating the Competency of Construction Management Graduates at the University of KwaZulu-Natal Naidoo, N.1, Pillay, T.2, Osman, M.3, Thevan, P.4, Othman AAE5* School of Civil Engineering, Surveying & Construction, Faculty of Engineering, University of 1 KwaZulu-Natal, Durban, South Africa, [email protected] , 2 3 4 [email protected] , [email protected] , [email protected] 5* [email protected] , Tel No. 031-2602821.

*Corresponding Author: Dr. Ayman Ahmed Ezzat Othman ABSTRACT Purpose This paper aims to investigate the Property Development Programme at the University of KwaZulu Natal (UKZN) as an approach towards the Construction Management (CM) discipline for providing graduates with the knowledge, skills and competencies required by the National Qualifications Framework (NQF) and the South African Construction Industry (SACI). Methodology To achieve the abovementioned aim, a research methodology is designed to accomplish three objectives. Firstly, reviewing the Property Development Programme at UKZN, the National Qualifications Framework (NQF), the Construction Management education and the skills and competencies of CM graduates as required by the construction industry with particular emphasis on South Africa. Literature review is used to achieve this objective. Secondly, investigating the relevancy of the UKZN programme towards meeting the NQF unit standards and the SACI requirements. This objective is achieved through survey questionnaires. Finally, summarising the conclusions and recommendations useful for future improvement of construction education in South Africa. Adopting the protocol developed by the authors will facilitate the future development of the green built environment in South Africa. Findings The research revealed that the Property Development Programme at UKZN generally meets NQF unit standards as well as the SACI needs with specific areas requiring improvement.

152 The Future of Construction Education In South Africa: Investigating the Competency of Construction Management Graduates At The University f KwaZulu-Natal

Research Implications The research investigated a number of main aspects of Construction Management education in South Africa through focusing on the Property Development Programme at UKZN. Research highlighted the adequacy of the programme towards meeting the NQF unit standards and the industry expectations. Practical Implications The research highlighted key areas that need to be improved in order to enhance the future education of construction management in South Africa generally and UKZN in particular. Value The value of this research stems from the need to improve the Construction Management education as well as the skills and competencies of UKZN graduates towards meeting the industry requirements. Construction Management education; National KEYWORDS: Qualifications Framework; Construction Industry; Construction Management Graduates; South Africa. 1


There are growing concerns regarding the perceived mismatch between industry needs and demands and the graduates produced by higher education institutions (Chileshe & Haupt, 2007). In addition, South African tertiary institutions are perceived to be producing graduates with skills that do not match the skills demanded by the working environment (Daily Dispatch, 2004 cited in Manthe & Smallwood, 2007, p.50). More specifically, ensuring that built environment graduates possess the appropriate portfolio of knowledge and skills is an imperative which, if not addressed, will prevent this strategic resource from adding the value necessary to contribute to sustainable economic growth (Ampofo-Anti, 2007). Furthermore, Love et al. (2001) stated that it is no longer sufficient for construction management academic programmes to concentrate solely on the specific details relevant to the professional practice and principles of the construction management profession. The adequacy of the Construction Management education at UKZN is deduced from the findings of Manthe & Smallwood (2007) which developed a scale to rate and compare construction management programmes offered at eight tertiary institutions according to full-time tuition requirements and credits attributed to subjects. At a construction tertiary education level of Matric + 3 years, the BSc. Property Development degree,

The Future of Construction Education In South Africa: Investigating the Competency Of Construction Management Graduates At The University f KwaZulu-Natal

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which is the undergraduate component of the BSc. Honours in Property Development (Construction Management), scored a mere 200 points, the lowest out of the four National First Degrees surveyed. This finding justifies the need for a study aimed at evaluating the adequacy of the Property Development Programme. The need for this study is further reinforced by the findings of Rwelamila (2007) which stated that most South African construction project management programmes are critically flawed and are in need of extensive review. Because of the importance of enhancing the future of construction education in South African institutions generally and at UKZN in particular, this paper aims to investigate whether the Property Development programme at UKZN adequately provides Construction Management graduates with the knowledge, skills and competencies required by the NQF and the South African Construction Industry. 2

RESEARCH METHODOLOGY AND SAMPLING

In order to achieve the abovementioned aim, a research methodology is designed to accomplish three objectives. (1) Literature review is used to build a comprehensive background of the research topic through investigating the structure of the Property Development Programme at UKZN, the National Qualifications Framework (NQF), the construction management education and the skills and competencies of CM graduates as required by the construction industry with particular emphasis on South Africa. (2) Survey Questionnaires were used to examine the relevancy of the Property Development Programme towards meeting the NQF unit standards and the requirements of the SACI. Questionnaires were rd directed to a selected sample of current 3 year students, CM Honours students, past graduates and construction managers. • The first questionnaire was directed to current 3rd year and Honours students in the Property Development Programme to get an insight into the satisfaction of the conveyance of the learning outcomes outlined by each module, throughout the programme. • The second questionnaire was sent to students who graduated from UKZN since 2007 to determine the relevancy of NQF unit standards to their professional demands. • The final questionnaire was sent to Construction Managers within the SACI to determine whether NQF unit standards specified for the discipline of Construction Management are an accurate representation of the industry needs and expectations from construction management graduates.


(3) Outlining the conclusions and recommendations required for improving the future of construction management education in South Africa. The sampling plan, using a random probability sampling method, was applied across all population categories so every unit had an equal chance of being included in the sample (Hannagan, 1986; De Vaus, 1990). This selected a representative and non-biased sample that was used to achieve the surveys objectives. For the first and second questionnaires, the list of registered students was collected from the Faculty of Engineering office. The populations were: rd 35 (3 year students), 4 (honour students) and 11 (graduates since 2007). All of these students were contacted and the survey questionnaires delivered to them. The Master Builders Association (MBA, 2009) website was used to identify the construction companies to be approached to send the third survey questionnaire. The list consisted of 122 companies. A sample factor of 0.4 was selected and the result was a list of 50 construction companies. 3

LITERATURE REVIEW

3.1

The Property Development Programme

The Property Development Programme is a key part of the School of Civil Engineering, Surveying and Construction at the Faculty of Engineering, UKZN. It offers 3 full-time undergraduate degree programmes for approximately 150 students per annum and Masters Degrees by research or coursework and Doctoral degrees. In recent years, the Programme has adopted a "problem-based" teaching methodology, which simulates scenarios found in industry. This culminates in final year with a Simulated Office Project where students are allocated to "mentors" drawn from local industry, who guide candidates through the full development process of property and construction projects. The most significant event in the recent past has been the complete restructuring of the vocationally focused four year degrees of Quantity Surveying and Construction Management. These degrees have been replaced by a new three year degree (BSc. in Property Development). Those that wish to specialize in one of the above disciplines have to continue their studies by means of a one year Honours degree, majoring in either Quantity Surveying or Construction Management. Students on this course attend intensive short-term modules whilst performing a challenging major assignment in their own time in the intervening periods. This programme is considered to be a vitally important contributor to meeting the continuing professional development needs of construction / property professionals (UKZN, 2009a).


3.2

155

The National Qualifications Framework

The NQF is an educational framework that employs a set of principles and guidelines for learner achievement which are registered to enable national recognition of acquired skills and knowledge thus promoting lifelong learning (UKZN, 2009b). The NQF was established in accordance with the South African Qualification Authority (SAQA) Act No. 58 of 1995; which is essentially a competence management framework for all standards and qualifications obtained in South Africa (Ampofo-Anti, 2007). The NQF initiative involves two types of learning outcomes to be achieved to gain credit, namely Critical Outcomes (core/ transdisciplinary skills) and Specific Outcomes (discipline specific skills and knowledge) (Council on Higher Education, 2002 cited in Ampofo-Anti, 2007, p.68). These critical outcomes are behaviour shaping attributes which may be essential to lifelong learning capacity, broaden and provide balance in education and encourage employability (Ampofo-Anti, 2007). Table (1) shows the structure of the NQF. Table 1: Structure of the NQF

NQF Level

Band

Qualification Type • Post-doctoral research degrees Doctorates 8 • Masters degrees • Professional Qualifications 7 Higher Education • Honours degrees and Training • National first degrees 6 • Higher diplomas • National diplomas 5 • National certificates Further Education and Training Certificate (FETC) 4 Further Education 3 National certificates and Training 2 General Education and Training Certificate (GETC) General Education • Grade 9 | ABET Level 4 1 and Training National certificates

Source: SAQA, 2009 3.3

The skills and competencies of CM graduates

It is evident that there is no consensus in local and international literature as to which skills and competencies are the most important for construction managers and construction management graduates (Smallwood, 2000; Love et al, 2001; Gunderson et al, 2002; Hardwick, 2003; SACPCMP, 2006; Ampofo- Anti, 2007; Chileshe and Haupt, 2007; Manthe and Smallwood, 2007). Although there are agreements with certain attributes


being included, there are also some skills that may be regarded important by some and less important by others. All skills and attributes surveyed and mentioned in previous research have an important role in the construction management discipline. However, the value and frequency of such skills is dependant on the industry and the level of management. 3.4

Construction Management Education

Bilbo et al. (2000) stated that the construction industry has become more reliant on accredited tertiary programmes to supply individuals adequately equipped to enter into an increasingly complex and demanding work environment. In addition, Ampofo-Anti (2007) explained that the successful education of built environment professionals is critical for the provision of infrastructure that supports the economic well-being and quality of life associated with the modern world. Specifically regarding the profession of CM, Love et al. (2001) stated that the unique structure of the construction industry, coupled with the challenges of global competitiveness and changing regulatory requirements have created the need for highly educated and competent construction management graduates. Despite the obvious need for quality construction management education, Savage et al. (2009) stated that professionals within the industry felt that the standards maintained by universities are neither high enough nor on par with the standards demanded by the industry. At a broader level the findings of Ampofo-Anti (2007) suggested that the content of built environment education is not yet geared to deliver the learning outcomes envisaged by the competency requirements of the NQF. More specifically Love et al. (2001) concluded that construction management academic programmes need to be broader if they are to exceed expectations of employers. This is reinforced by le Roux (2007) who deemed that the traditional project cost control techniques taught in construction management programmes are insufficient and should be expanded to the broader area of financial management. The theme of inadequate built environment course content is further underpinned by Rwelamila (2007) who found that most of the construction project management courses are dominated by a technical skills base with little or no social cultural knowledge base. In terms of the performance in the workplace, Love et al. (2001) concluded that although contractors are generally satisfied with construction management graduates, their skills fall short in areas of practical building knowledge, interpersonal, time management and ability to exercise professional judgment. Similarly, Chileshe & Haupt (2007) found that although academic staff and construction industry participants agree that University of Technology construction management students possess the necessary skills to manage a project, there are key differences between the two groups relating to subject areas and the desirable attributes necessary to practice construction management.


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With regards to perceptions regarding the education of Construction Managers, Chileshe & Haupt (2007) found that there is complete disagreement between industry participants and academic staff over the skills & attributes offered at South African Universities of technology, both in terms of importance and performance of the universities in satisfying their mandate to equip graduates with these skills and attributes. Similarly Rwelamila (2007) states that there are strong indications to suggest that South African higher learning institutions are acutely unaware of what is required to produce an efficient construction project manager. In terms of improving construction management education, Hauck (1998) stated that a review of literature regarding the suitability construction management education reveals a need for more “soft skills” such as personnel skills, better communication, stronger leadership, and greater understanding of basic business principles. Likewise, Nkado (2000) asserts that management focused skills such as project management; marketing, personal and interpersonal skills will become increasingly important for both quantity surveyors and construction managers. 4

DATA ANALYSIS

A two-stage approach was adopted for data analysis. Firstly, the central tendency of the questionnaire responses was measured to draw an overview of the typical value for each variable by calculating the mean, median and mode (Bernard, 2000). Analysis of the collected data revealed close values of these measures which confirmed the quality and the homogeneity of the collected data. Secondly, since not all skills and competencies of the construction management graduate have the same importance to the SACI, the relative importance index was used to differentiate between these skills and competencies using the formula of: RII = ΣW / 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 (Olomolaiye et al., 1987; Shash, 1993; Kometa and Olomolaiye, 1997). 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.

4.1

Analysis of survey questionnaires

rd 4.1.1 3 Year & Honours Students Responses

158 8

The Future of Construction Education In South Africa: Investigating the Competency of Construction Management Graduates At The University f KwaZulu-Natal

Out of 35 questionnaires sent to 3rd year students and 4 questionnaires sent to Honours students, 25 3rd year students replied while 75% of Honours questionnaires were completed and returned. On a varying degree of conveyance, respondents mentioned that the modules in the first three years of their study towards getting their BSc Property Development Degree and towards their Honours in Construction Management were successfully delivered either through lectures or examinations, see Figures (1 & 2). The lack of delivery of some modules are attributed to the current shortage of staff within the Property Development programme, students lack of knowledge of the expectations of administrative issues (for example, the impact of their Duly Performed mark on overall course mark) and the transition of students from their restricted school life to the freedom associated with studying at a University and thus their lack of attending lectures frequently.

Figure 1: Graph illustrating third year student’s responses

The Future of Construction Education In South Africa: Investigating the 159 Competency Of Construction Management Graduates At The University f KwaZulu-Natal

Figure 2: Graph illustrating CM Honours responses

40-96% of students believe that all the undergraduate courses were successfully conveyed to them while the Honours students unanimously agreed that Design Appraisal and Measurement 3B and Property Development Economics did not satisfy the outcomes outlined by the courses. This is due to lecturers not adhering to the outcomes expected to be taught to students or not covering the full range of outcomes. 4.1.2 Analysis of Graduate Responses Out of 9 questionnaires sent to graduates, 7 were completed and returned, which represents 78%. Figure (3) shows the perception of graduates towards the level of adequacy of the Property Development Programme at UKZN. It shows that 43% of the graduates believe that the modules covered all aspects with a few minor details missing.

Figure 3: Graduates opinion of adequacy of the Property Development Programme


In addition, graduates were approached to determine the effect of the Property development Programme on their current employment endeavours and which of the skill factors they believe were successfully conveyed to them, see Figure (4).

Figure 4: Graduates opinion of skill factors conveyed

They were then asked which additional skill factors they deem necessary to implement into the programme in order to better prepare future graduates in their employment opportunities and to perform to the satisfaction of their future employers.

Figure 5: Additional skill factors required to be included in the Property Development Programme

Towards getting their feedback and comments, graduates indicated that the modules were well structured theoretically, however it is lacking in providing the students with the necessary practical experience required in


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the working world. In addition, one respondent was lacking in structural engineering principles, people management and on site administration. Results of the graduate responses showed that Human Resource Management is the skill factor lacking in the current Property Development Programme, while the balance of the skill factors were more or less transmitted to the students. Both professionals within the SACI and graduates believe that it is imperative to implement Decision making, Time Management and Problem solving skills into the Property Development Programme at UKZN whilst the implementation of the other additional skill factors is important, but not crucial. 4.1.3

Analysis of Industry Responses

Of the 50 questionnaires sent to Construction Managers within the KwaZulu Natal region, 36 responses were completed and returned, which represents a 72% response rate. The questionnaires asked Construction Managers to rank the importance of skill factors derived from the NQF unit standards corresponding to the CM degree on a scale of 1-5 (where 1= Irrelevant and 5= Critical to complete task effectively), see table (2) and figure (6).

SF1 SF2 SF3 SF4 SF5 SF6 SF7 SF8 SF9 SF10 SF11 SF12 SF13 SF14 SF15 SF16 SF17 SF18 SF19

Table 2: Construction Managers ranking of Skills Factors SKILL FACTORS MEAN MEDIAN Knowledge of procurement and process 4.25 4.5 Quality management and assurance 4.58 5 Strategic planning and determine resources 4.50 5 required for construction operations Risk management 4.31 5 Financial feasibility 3.97 4 Sustainability knowledge and assessment 3.75 4 South African law (mercantile, company and 3.22 3 contract) Contract forms and management 4.06 4 Quantification and development of work plan 4.22 4 Professional practice and ethics 4.28 5 Micro and macro economics knowledge 2.81 3 Financial and management accounting 2.97 3 Managerial knowledge 4.39 4.5 Urban land economics and property 3.00 3 development knowledge Mathematical ability 3.58 4 Property valuation, investment and financial 2.89 3 knowledge Knowledge of composition, role-players, processes and role of the construction 3.75 4 industry Utilize construction drawings and 4.50 5 specifications Physical setting and preparing site (surveying 4.06 5

MODE 5 5

RII 0.85 0.92

5

0.90

5 5 4

0.86 0.79 0.75

3

0.64

5 5 5 3 3 5

0.81 0.84 0.86 0.56 0.59 0.88

3

0.60

4,5

0.72

2

0.58

3,4

0.75

5

0.90

5

0.81

162 The Future of Construction Education In South Africa: Investigating the Competency of Construction Management Graduates At The University f KwaZulu-Natal SF20 SF21 SF22 SF23 SF24 SF25 SF26 SF27 SF28 SF29 SF30 SF31 SF32 SF33 SF34 SF35 SF36

techniques, levelling, use of theodolite) Health and safety management Contract documentation Structural principles Building construction methods Manage construction resources Human resource management Knowledge and ability to prepare accordingly for a project (tender review, resource schedule, cash flow etc.) Project and organisational assets administration Tender process and documentation Financial management Environment management and awareness Electrical and mechanical construction technology Building and advanced construction technology International insight into management of construction projects Knowledge of service installations in buildings Knowledge on price determination documents Conduct research

4.56 4.33 4.08 4.64 4.64 4.17

5 5 4 5 5 5

5 5 5 5 5 5

0.91 0.87 0.82 0.93 0.93 0.83

4.06

4

5

0.81

3.81

4

4

0.76

3.56 3.69 3.19

3 4 3

3 5 3

0.71 0.74 0.64

3.03

3

3

0.61

3.44

3

3

0.69

3.06

3

3

0.61

3.36

3

3

0.67

3.83

4

3,5

0.77

2.47

2

2

0.49

Figure 6: Relative Importance Index (RII) of the skill factors

In addition, respondents were requested to rank additional skill factors gathered from literature review that could be deemed important to improve the CM education at UKZN, using the same scale as before, see table (3) and figure (7).

Table 3: Ranking of additional skill factors

The Future of Construction Education In South Africa: Investigating the Competency Of Construction Management Graduates At The University f KwaZulu-Natal SF1 SF2 SF3 SF4 SF5 SF6 SF7 SF8 SF9 SF10 SF11 SF12 SF13 SF14 SF15 SF16 SF17 SF18 SF19 SF20 SF21 SF22 SF23 SF24 SF25 SF26 SF27 SF28 SF29 SF30 SF31 SF32 SF33

ADDITIONAL SKILL FACTORS Oral and written communication Trust and honesty Decision making Problem solving skills Interpersonal skills Leadership capability Time Management Ability to resolve conflicts and disputes Creativity and innovation Ability to work autonomously Computer literacy Ability to exercise professional judgment Supervisory skills and ability to train others Design Processes General education including humanities, social sciences, maths and sciences Logistics including material management, transportation, storage, and procurement Team building capability Business and construction law Drawing/drafting or CAD skills Budgetary Control Motivation of Others Measurement, costing and estimating Acceptance of responsibility Practical building knowledge Up-to-date professional knowledge Active listening skills Negotiating skills Ability to use surveying and levelling equipment Familiarity with workings and intricacies of industry Adaptability to changing work environment Academic achievement Entrepreneurship Construction surveying

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MEAN 4.83 4.83 4.81 4.83 4.72 4.72 4.83 4.53 4.31 4.44 4.14 4.58 4.19 3.83 3.69

MEDIAN 5 5 5 5 5 5 5 5 4.5 5 4 5 4 4 4

MODE 5 5 5 5 5 5 5 5 5 5 5 5 4 5 5

RII 0.97 0.97 0.96 0.97 0.94 0.94 0.97 0.91 0.86 0.89 0.83 0.92 0.84 0.77 0.74

4.17

5

5

0.83

4.50 3.97 2.69 4.53 4.53 3.69 4.67 4.53 4.25 4.58 4.47 3.86

5 4 3 5 5 4 5 5 4 5 5 4

5 5 3 5 5 4 5 5 5 5 5 5

0.90 0.79 0.54 0.91 0.91 0.74 0.93 0.91 0.85 0.92 0.89 0.77

4.25

4

4

0.85

4.19 3.61 4.03 3.22

4 4 4.5 3

4 5 5 3

0.84 0.72 0.81 0.64

164


Figure 7: Relative Importance Index of the additional skill factors

Results of the industry responses showed that those skill factors found to be of utmost importance include the knowledge of building construction methods, the management of construction resources, quality management and assurance, the ability to utilize construction drawings and specifications and to plan strategically and determine the resources required for construction operations. Conducting research was the factor attaining the lowest RII’s, thereby rendering the skill factor relatively insignificant. 5

CONCLUSIONS AND RECOMMENDATIONS

Having reviewed the structure of the Property Development Programme at UKZN, the NQF, the education of construction management and the skills and competencies of CM graduates as required by the SACI, and bearing in mind the results of the survey questionnaires, the research comes to the following conclusions and recommendations: While the majority of students felt that the courses contained within the Property Development Programme were successfully conveyed to them, it is imperative that the Faculty determines the reasons for the extremely negative response directed at the Design Appraisal & Measurement 3B and Property Development Economics modules. In addition UKZN must constantly strive for higher academic standards through the introduction of new teaching initiatives, focusing on quality control issues and allocating more resources towards teaching methods such as flexible learning, use of internet and library resources. This is crucial if the Property Development Programme is to meet the expectations of an ever changing construction industry. In order to better prepare CM graduates for the realities of the workplace, the Property Development programme must supplement technical knowledge with skills such as Human Resource Management, Decision Making, Time Management and Problem Solving skills. One way


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of doing this is to introduce a mandatory experiential training component into the curriculum. Love et al. (2001) stated that experiential training is critical for the development of the aforementioned skills in built environment professionals. There is currently no such requirement for students enrolled in the Property Development Programme. Amongst the concern that revolves around construction education and the quality level thereof, satisfaction of CM graduates and agreement from Construction Manager Professionals indicate that the skills factors brought through the Property Development Programme is sufficient for the CM discipline. This finding concludes that such mismatch between industry and academia should not exist and additionally, that the Property Development programme does essentially equip CM graduates with the skills and competencies required by the South African Construction Industry. It has been determined that although the NQF standards which sets out the learning outcomes for the Property Development programme are generally corresponding to the needs of SACI, there is still room for improvement as the additional skills ranked on average were critical to the construction management profession and should therefore be implemented into the programme. Their lack of conveyance indicates that the NQF unit standards utilized in the Property Development programme are not addressing additional key skill areas which will be detrimental to the professional outlook in the long run. As graduate performance weakens, as will the confidence in universities abilities to produce well rounded and skilled graduates lessen. Furthermore, doubt will shadow the relevancy and quality of the NQF. REFERENCES Ampofo-Anti, N.L. (2007) Highlighting the gap between critical outcomes requirements and built environment education in South Africa. In: ASOCSA and CBE (Association of Schools of Construction of Southern Africa and the Council for Built Environment), 2nd Built Environment Conference. Port Elizabeth: South Africa, 17-19 June 2007. ASOCSA: Eastern Cape 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. Sage Publishing Ltd, London. Bilbo, D., Fetters, T., Burt, R., & Avant, J. (2000). A study of the supply and demand for construction education graduates. Journal of Construction Education. 4 (1), pp. 54-65 Chileshe, N. and Haupt, T.C. (2007) Industry and Academia Perceptions of Construction Management Education – the case of South Africa. The Journal for Education in the Built Environment. 2 (2), pp. 85-114

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De Vaus, D.A. (1990) Survey in Social Research. 2nd ed, Unwin-Hyman, London. Gunderson, D.E., Ra, J.W., Schroeder, H. and Holland, H.R. (2002) Needs Assessment- A Construction Management Bachelor of Science Degree Program in Alaska. Journal of Construction Education. 7(2), pp. 86- 96 Hannagan, T.J. (1986) Mastering Statistics. 2nd ed, Macmillan Education Ltd, London. Hardwick, D. (2003) The Role of the Modern Construction Manager. Abstract only. Available at: http://www.ciob.org.uk/filegrab/2003 DanHardwick.pdf?ref=70 [Accessed 02 March 2009] Hauck, Allan, J (1998) Construction Management Curriculum Reform and Integration with a Broader Discipline: A Case Study. Journal of Construction Education. 3(2), pp. 118-130 Kometa, S.T. and Olomolaiye, P.O. (1997), Evaluation of factors influencing construction clients’ decision to build. Journal of Management in Engineering. 3(2), pp. 77-86. Le Roux, F. (2007) Is There a Missing Link in Construction Management Education in South Africa. In: ASOCSA and CBE (Association of Schools of Construction of Southern Africa and the Council for Built Environment). 2nd Built Environment Conference. Port Elizabeth: South Africa 17-19 June 2007. ASOCSA: Eastern Cape Love, P.E.D., Haynes, N.S. and Irani, Z. (2001) Construction Managers’ Expectations and Observations of Graduates. Journal of Managerial Psychology, [Online]. 16 (8), Available at: http://www.emeraldlibrary.cm/ft [Accessed 02 March 2009]. Manthe, M.F. and Smallwood, J.J. (2007) The Diversity of Construction Management Tertiary Education. In: ASOCSA and CBE (Association of Schools of Construction of Southern Africa and the Council for Built Environment), 2nd Built Environment Conference. Port Elizabeth, South Africa, 17-19 June 2007. ASOCSA: Eastern Cape. Master Builders Kwa-Zulu Natal (2009) Building Contractors in Durban. [Online] Available at: http://www.masterbuilders.co.za/memberserach.php (Accessed 30 May 2009) Nkado, R.N. (2000) Competencies of Professionals Quantity Surveyors in a Developing Economy. 2nd International Conference on Construction in Developing Countries: Challenges facing the construction industry in developing countries. Gaborone: Botswana, 15 17 November 2000. Olomolaiye, P.O., Price, A.D.F. and Wahab, K.A. (1987) Problems influencing craftsmen’s productivity in Nigeria build Environment, Vol. 22 No. 4, pp. 317-23. Rwelamila, P.M.D. (2007) Construction Project Management Education Programmes in South Africa- addressing the gap. 2nd International


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Conference World of Construction Project Management. TU Delft: Netherlands. SAQA (2009) The National Qualifications Framework Brochure. [Online] Available at: http://www.saqa.org.za/docs/brochures/nqf brochure.html (Accessed 20 July 2009) South African Council for Project and Construction Management Profession (2006) Construction Manager: Identification of work and scope of services for construction managers registered in terms of the Project and Construction Management Professions Act No. 48 of 2000. [Online] Available at: www.asaqs.co.za/.../Identified%20Work%20for%20Construction%20 Management. ( Accessed 05 May 2009) Savage, S., Davis, R. and Miller, E. (2009) Exploring graduate transition from university to the workplace: employer, academic and graduate perspectives. In: 34th AUBEA Annual conference, Managing change – challenges in education and construction for the 21st century. Barossa Valley: South Australia, 7-10 July 2009 Shash, A.A. (1993), “Factors considered in tendering decisions by top UK contractors”, Construction Management and Economics, Vol. 11 No. 2, pp. 111-18. Smallwood, J. (2000) Practicing the Discipline of Construction Management: Knowledge and Skills. 2nd International Conference on Construction in Developing Countries: Challenges facing the construction industry in developing countries. Gaborone: Botswana, 15-17 November 2000, South African Council for the Project and Construction Management Profession (2006) Identification of work and scope of services for construction managers registered in terms of the Project and Construction Management Professions Act No. 48 of 2000. [Online] Available at: www.asaqs.co.za/.../Identified%20Work%20for%20Construction%2 0 Management.pdf (Accessed 03 March 2009) University of KwaZulu-Natal (2009a) Property Development: Learning Methods [Online] Available at: http://propertydev.ukzn.ac.za/LearningMethods397.aspx (Accessed 20 July 2009) University of KwaZulu-Natal (2009b) Property Development: Accreditation [Online] Available at: http://propertydev.ukzn.ac.za/Accreditation399.aspx. (Accessed 20 July 2009)

SACQSP2009-13

An investigation into the possible use of innovative materials in future developments of low-cost housing in KwaZulu-Natal ¹ Harinarain N, ² Amod M S, ³ Kandhai S 1

2

3

School of Civil Engineering, Surveying & Construction, University of KwaZulu-Natal, Durban, South Africa, [email protected], Tel No. +27-31-2602687 School of Civil Engineering, Surveying & Construction, University of KwaZulu-Natal, Durban, South Africa, [email protected], Tel No. +27-31-2602687 School of Civil Engineering, Surveying & Construction, University of KwaZulu-Natal, Durban, South Africa, [email protected], Tel No. +27-31-2602687

ABSTRACT Purpose of this paper The South African government addresses the needs of low income groups by providing services, infrastructure and meeting the basic needs by providing low-cost housing. The aim of this paper is to investigate the use of innovative materials to improve the delivery and reduce the backlog of low-cost housing in KwaZulu-Natal. Design/methodology/approach A combined methodology was utilised to carry out the research. This included a detailed literature review, survey questionnaires and interviews. The detailed literature review provided a background of the current delivery of low-cost housing as well as research into innovative materials that can be utilised in low-cost housing in order to improve delivery times. The survey questionnaires and interviews were distributed to the relevant parties using the snowballing technique to determine the current view and the possible effects of innovative materials on low-cost housing. Lastly the responses were analysed. Findings The literature review revealed that there is a lack of innovation in the lowcost housing sector, however the questionnaires and interviews, showed that participants prefer to use conventional materials in low-cost housing as they have not witnessed the success of alternative innovative materials. Practical implications

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An investigation into the possible use of innovative materials in future developments of low-cost housing in KwaZulu-Natal

The future use of innovative materials in the construction industry may improve quality while reducing cost and improve delivery time thereby helping to eliminate the housing log back. Value of paper An investigation of this nature would be beneficial as it opens new doors in the mindset of the construction industry participants. This can be achieved by government, participants and communities understanding the benefits attached to the use of innovative materials that would improve the delivery of low-cost housing. Keywords: low-cost housing; innovative materials; housing delivery; industry participants

1. INTRODUCTION In 1948 the National Party came into power and introduced a set of policies that made up the backbone of the Apartheid era. These laws focused on separate development policies for different ethnic groups, thereby confining black people into small rural areas. This situation led to overpopulation, increased poverty and a lack of the basic necessities which negatively impacted the environment (Khan, 2002). The black majority were compelled to live in areas that had no value and that were alienated from basic amenities. Apartheid led to severe socio-economic imbalances, an extreme shortage of housing and a huge neglect on the environment (Thomas et al., 2002 as cited by Rosenberg, 2003). Since 1994, the South African government began taking corrective actions, to bring the country into a balance, by addressing issues that affect individuals’ who were previously disadvantaged. Government, relevant stakeholders and non-government organisations have been working hard over the years to improve the standard of living of persons that were previously disadvantaged by focusing on housing, health and education (Dansoh et al., 2007). Therefore one of the South African government’s main aims is to eliminate the backlog in amenities and low-cost housing. 1.1 Objectives of this paper The objectives of the paper were to identify and increase the awareness of innovative materials that can be used in the construction of low-cost housing; to identify reasons why the various parties involved in low-cost housing do not research and implement innovative materials and to determine whether use of innovative materials could improve delivery time and eliminate the backlog.


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2. LITERATURE REVIEW 2.1 What is Low-cost Housing Low-cost housing is an initiative implemented by the South African government to provide suitable housing to homeless people who earn an income in the range between R1500- R3000 (National Department of Housing, 2004a). The term low-cost housing is viewed differently by different individuals. The National Department of housing (2004) defines low-cost housing as housing that is provided by housing institutions for homeless people who earn a secure income capable of meeting the required rental or periodic payment for the accommodation provided. 2.2 Challenges in Low-cost Housing The housing crisis for the poor is still a major problem for the government despite all its efforts (Mia and Othman, 2007). The problem that government is facing could be related to a number of reasons, such as high levels of unemployment, poverty, the inadequate commitment from private sector to provide housing loans; high cost of land development; lack of potential development in urban areas and inflation of building costs (ESSA, 2005: cited by Mia and Othman, 2007). According to Napier (2006), an estimated 28 million people (66% of South Africa’s population) are living in urban areas. This suggests that 14 million people (34% of South Africa’s population) live in rural areas of which an estimated 18% are residing in squatter settlements; vacant areas or illegally in houses that are overcrowded. The majority of these people work in urban areas. Increasing land invasion in urban areas, poor access to services in rural areas, low rates of housing provision and a high level of population growth suggests that the housing backlog is increasing. Although government has made payments of R37 billion and produced 1.9 million housing subsidies since 1994, the housing backlog has not been greatly improved (Biermann and Van Ryneveld, 2007). One of the reasons for this is that, the State does not have enough resources to meet the demand of low-cost housing. As a result, substantial amounts of external resources are required to invest in housing the poor (National Department of Housing, 2004a). Government therefore presented the Housing Policy and Strategy in 1994 (Northern Cape Department of Housing and Local Government, 2006), which recognised the principles for drawing such investment (National Department of Housing, 2004a). In addition to this, the policies and frameworks that are in place have many other issues to overcome. Moladi (2009a) identified the issues as being lack of resources; shortage of skills; constraint of time; controlled work flow; elimination of waste and insufficient funds. 2.3 Low-cost Housing Policy and Strategy

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It is crucial according to Dansoh et al. (2007) that new ways of assisting low-cost housing development is explored. In the KwaZulu-Natal (KZN) context, ‘The KwaZulu-Natal Elimination and Prevention of Re-Emergence of Slums Bill’, is an act which was made by the government to fast track and assist the slums eradication and prevention programme (KZN Housing, 2007). The Reconstruction and Development Programme (RDP) is an initiative by the government to correct the imbalances created in the past and finally to build the country into one that is democratic, non-racial and non-sexist (White Paper, 1994). There are however certain aspects that impede the implementation of low-cost housing schemes (Venter et al., 2004), such as the lack of adequate and favourable financial provision. The Government has insufficient funds to finance the low-cost housing programmes. The private sector is also not willing to invest in these projects as the risk is too high. The housing policy needs to utilise the opportunity of the housing markets and implement a flexible policy using innovative techniques (National Department of Housing, 2004a). An innovative solution is thus needed in order to overcome the complexities that exist within the low-cost housing sector (National Department of Housing, 2004a). Existing housing models need to allow for flexibility and transparency, and should be inclusive in their approach. The policy should also allow for innovation through a creative design process that ensures communication between all the parties involved (Osman, 2000). It is therefore the position of the authors that a possible solution to eliminate the current problems that face the low-cost housing sector (lack of resources, constraint of time and waste elimination), is the implementation of successful innovative construction materials. 2.4 Materials According to Budiawan (2003), innovation can be implemented in the manufacturing of products so that it improves the performance and functionality of the product. In this paper, innovation is understood to be incremental innovations. Incremental innovations are the modifications made to existing technology or processes (Leiringer, 2003). In the construction industry context, modifications are usually done to existing products or materials, making them more efficient, effective or cost effective than previous products or materials employed. In construction, most innovations are incremental innovations (Koebel, 2007). Illston and Domone (2001) identified strength, deformation and durability as the principal criterion for materials that must be satisfied. The design of the building structure also has an effect on the properties of the materials that are being used. Moreover aesthetic and environmental impact should also be considered as it assures that the materials would


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perform effectively and efficiently both during construction and in subsequent service. Francois and Zaoui (1998) indicated that the performance of material depends on numerous factors such as efficiency, its manufacturability, reliability, durability and cost. Materials are integral to any construction project, the selection and evaluation of materials has become a difficult task for designers due to the development of hundreds of new materials annually (Watson, 1986). The components that have the greatest impact on the cost of low-cost housing are concrete and blockwork (walling). Concrete can have a further impact on cost depending on the ground conditions of a particular area due to foundation and floor slab requirements (Sardick, 2009). The researchers have therefore identified six innovative materials which focus on concrete and walling systems that would improve the performance and efficiency of low-cost housing. 2.4.1 HySSIL Concrete HySSIL is an innovative, unique high strength, insulative and lightweight concrete product that has been developed by Australia's Commonwealth Scientific and Industrial Research Organisation (CSIRO) to decrease the weight of concrete considerably. This product can be applied externally and internally and can produce essential load bearing or non-load bearing elements. The properties and the design that HySSIL concrete possess have the ability to replace conventional in-situ and pre-cast concrete, bricks, blocks, autoclaved aerated concrete (ACC) and other lightweight building products in a variety of applications (HySSIL, 2009). The initial stage of HySSIL development has been in the construction of wall panels and relating systems. The development following after this type of construction will be in the form of blocks and flooring systems (Construction Innovation Forum, 2008). Conventional aggregate based concrete is double the weight of the HySSIL but both products possess the same strength ratings. This feature of the HySSIL product reduces transport cost as well as erection costs as the product is much lighter and can be easily utilised and erected. HySSIL has five times the thermal resistance of conventional concrete which in turn reduces the high energy use in buildings and thereby reducing overall running costs (HySSIL, 2009). In addition construction time is reduced significantly due to the ease of transportation and lifting of the pre fabricated HySSIL panels (CSIRO, 2007).

Use in Low-cost housing The key benefits of the material are noted as being lightweight; having a high strength which can be used in building structures and foundations in low-cost housing; cost effective with regard to transport cost, handling and erection costs; exceptional thermal insulation for the use in low-cost

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housing and long term durability due to drying compression being 40% less than conventional concrete. 2.4.2 Plastic Formwork Moladi plastic formwork was developed in 1986 by Hennie Botes. This innovative material is a unique plastic injection moulded type of formwork. The formwork is lightweight and can be assembled using unskilled labour to form the walling system of the house. The lightweight aerated mortar (concrete with no stone) consists of river sand, Portland cement and water which can be stripped of formwork within a day (Moladi, 2009b). The formwork, which is produced in Port Elizabeth, can produce a fast tracked house that meets the ISO 9002 standards. It is the only type of formwork that is machine made which guarantees standardised pieces. Plastic formwork is preferred over timber formwork due to the ability to be mass produced as well as it being reusable. The walling system does not require plastering due to the off-shutter finish. The homes are cost effective due to time saving as well as lack of material wastage (Modali, 2009c). Use in Low-cost Housing Moladi formwork is slowly being developed in international low-cost housing projects. The range of formwork sizes allow for different design of houses to be constructed. The repetitive design in low-cost homes allows for reuse of the formwork and thus, cost savings (Moladi, 2009b). The purpose of ‘Housing the Nation’ was the primary driver that promoted Botes to develop this innovative formwork. The objective was to develop a high quality house, quicker than when using other walling methods. Other challenges that were solved with the development of the formwork was the minimising of the need for skilled labour as well as the lack of resources as most of the materials are widely available (Moladi, 2009b). The use of this material however, will have to be accepted by lowcost housing contractors and the community for it to be successful in South Africa. 2.4.3 Mortarless Blocks Mortarless blocks produce a walling system that eliminates the need to use mortar in the construction of a wall due to blocks that are interlocking (Haener Block, 2009). The blocks were invented by a Romanian, Dr Juan A. Haener. The block matches and in some cases exceeds the strength of conventional blocks (Van der Werf, 1999). The process of the mortarless block construction can be done by laying one ground course of blocks using mortar and thereafter placing the blocks in rows without mortar using a stretcher bond pattern. The block was designed in a shape that assists the block layer in placing the block in the perfect position. Unskilled labour can be used in the construction


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process as the blocks are placed in lines and fitted into position (Haener Block, 2009). Hines, (1995) pointed out that the greatest benefits of utilising mortarless blocks in construction is to reduce labour costs; reduce the consumption of costly mortar and to allow for more automation in the construction industry. Time can also be saved due to absence of a trowel which allows two hands to place blocks. Equipment costs can also be reduced as the mixing of mortar is not required (Haener Block, 2009). Use in Low-cost Housing Mortarless blocks have proved cost savings to walling systems which can be seen as a benefit to incorporate the blocks in low-cost housing. The block further reduces costs in not requiring an aesthetic cover such as plaster as it is currently being manufactured in various colours (Azar, 2009). The shortage of low-cost housing requires alternative methods of construction in order to provide adequate housing (Biermann and Van Ryneveld, 2007). Utilising methods such as mortarless blocks may assist the housing delivery by providing a cheaper and faster way to produce lowcost housing. The involvement of the community could be achieved as unskilled labour can be utilised when using this material. 2.4.4 Self Compacting Concrete (SCC) Self compacting concrete is a special type of concrete that was developed in Japan in 1988 which does not require vibration. It flows under its own weight and completely fills formwork, even if there is extensive reinforcement. This is made possible by the addition of fly-ash and super plasticisers (Ravindrarajah et al., 2003). The characteristics of SCC are beneficial over conventional concrete in three ways, viz. non-segregation, flow ability and non-blocking propensity. The elimination of vibration reduces skilled labour requirements which results in time and cost savings. SCC however, is less tolerant to changes in materials that it composed of and variances in batching than concrete with less workability. Use in Low-cost Housing SCC can be used for any application that conventional cement can be used. In low-cost housing, applications of SCC would be beneficial in floor slabs and foundations. The materials and add-mixtures that are required in SCC are available in South Africa. The time, cost and skilled labour reductions make the product an attractive alternative to conventional concrete in low-cost housing. 2.4.5 Fly ash bricks

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Fly ash bricks are created from a building aggregate developed by Dr O. Kayali and K. Shaw from the University of New South Wales. The building aggregate is composed completely from waste fly ash. Fly ash bricks are lighter and stronger than conventional clay bricks (University of New South Wales, 2009). Kayali (2005) identified various benefits of fly ash bricks such as being 28% lighter resulting in savings on transport cost and reduced loads in structural elements. Strength tests have shown that fly ash bricks have a compressive strength of 40 mpa. This exceeds the compressive strength of clay bricks by 25%; tensile strength is almost three times the value of conventional clay bricks and bond strength exceeds that of clay bricks by 44%. Liu et al. (2009) noted the following benefits: fly ash bricks being 10% cheaper to produce than concrete bricks and 20% cheaper to produce than clay bricks and production of one ton of fly ash bricks emits 0.0434 ton less carbon dioxide than the production of clay bricks. This is due to the fact that the bricks are fired in kilns at a much lower temperature. Use in Low-cost Housing Fly ash bricks are a viable alternative to concrete blocks and clay bricks for low-cost housing production. This can be attributed to their lower transport costs; cheaper production costs and higher durability in comparison to conventional concrete blocks and clay bricks. This innovative masonry alternative is available in South Africa and the associated savings of fly ash bricks should make this product an attractive alternative to conventional bricks and blocks. 2.4.6 Grancrete Grancrete is a durable new ceramic that when sprayed onto a Stryofoam frame, it forms a lightweight and durable surface which is stronger than concrete. It is comprised of 50 % sand or sandy soil; 25% binding material and 25 % ash (Argonne National Laboratory, 2009). A home made from Grancrete can be completed in two days by local labourers, after two days of training (Argonne National Laboratory, 2009). Grancrete has the benefits of being fireproof; waterproof; dries within 15-20 minutes; extremely durable lifespan of up to 100 years; efficient thermal and sound insulator; does not shrink or crack; environmentally friendly and has a strength rating of 41–55 mpa which is stronger than concrete (Grancrete, 2009). Grancrete has many potential applications such as driveways, roads, bridges, pylons, containers for storage, power plants, pipe casing, tiles, stairs and counters amongst others (Argonne National Laboratory, 2009). Use in Low-cost Housing Grancrete may be used for super structure walls as well as roofing. Having a single quick erectable material system for a home is an attractive set of


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circumstances for the low-cost housing sector. Houses constructed from Grancrete remain warm in cold temperatures and cool in hot and dry conditions. The use of Grancrete allows adequate housing for families in almost any area in a developing country. It is quick to build, environmentally friendly and a structurally stronger alternative to current low-cost housing building techniques (Argonne National Laboratory, 2009). 3. RESEARCH METHODOLOGY The research methodology was developed by identifying the background of low-cost housing; the implementation of innovative materials in low-cost housing and determining whether the use of innovative materials could improve the delivery of low-cost housing. These were achieved by an extensive literature review and by conducting questionnaires and interviews. There are various areas in the construction industry were innovative materials can be applied. The researchers however focused on the lowcost housing sector due to there being a gap in information regarding innovation in low-cost housing. A triangulation technique, which incorporates a qualitative and quantitative approach, was used to collect information. Literature review was utilised to identify areas that other authors have addressed which assisted in theory formulation. Questionnaires and structured interviews were compiled and distributed to the relevant participants in the industry to gain current insight regarding the topic. To increase the validity of the response, the researchers gathered several samples using the snowball sample technique. The snowball technique is used when the sample population is difficult to locate (Maree, 2007). It involves requesting respondents to identify other parties that could contribute to the research (Gilbert, 2008). Low-cost housing contractors were initially located by identifying bodies or authorities who were involved in the housing delivery in KZN. The Department of Housing KZN and National Home Builders Registration Council (NHBRC) were contacted in order to locate members of the sample group. The initial sample population, once having completed the questionnaire were requested to identify other members which resulted in a total sample size of fourteen. The analysis process was undertaken via Microsoft Excel, when all the data collection methods had been completed. The received information was reviewed and interpreted to conclude the research study providing possible solutions to the research problem. 4. ANALYSIS OF RESULTS The questionnaires and interviews aimed to gain a response regarding innovative materials in low-cost housing.

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All the respondents were familiar with innovative materials as all of them have been exposed to an innovative material. It was however interesting to note, that many of the respondents did not know the trade names of the materials presented to them. This possibly indicates poor marketing of the products or disinterest on the part of the respondents in respect of the innovative materials. A few notable new materials were introduced to the researchers namely, Dezzo roofing system, foundations moulds and fibre mesh reinforced concrete. After presenting the various innovative materials to the respondents, 71% of the respondents believe that it is in fact difficult to implement an innovative construction material. The respondents highlighted the reasons being cost efficiency; product reliability; reluctance to change; problematic nature of municipal approval; availability of materials; difficulty in training and product reliability. Although it was seen that innovative construction materials are difficult to implement, 43% of the respondents are currently using innovative building products. The extent of which seems to be moderate, as no ‘radical’ materials are being implemented. The 57% respondents that are not implementing innovative materials are facing difficulties in the implementation due to cost efficiency; product reliability; reluctance to change; problematic nature of municipal approval; availability of materials; difficulty in training and product reliability. The fact that no ‘radical’ materials are being implemented indicates why 86% of industry’s participants believe that the quality of materials used in low-cost housing is adequate for their intended purpose. However the remaining 14% held that innovative material could improve low-cost housing in various ways. The responses to this question again clearly highlighted the industry’s reluctance to change. Industry participants are comfortable with the current materials being used and by implication see no scope for material innovation in low-cost housing. This attitude could be attributable to a view that low-cost homes are as the name states “low cost”; making them undeserving of any extra benefits or comfort. After assessing the relevance of the current materials used in low-cost housing, 57% felt that the current materials could not be improved on. Respondents believed that “you can’t re-invent the wheel” and that current materials were adequate. Forty three percent of the respondents believed that there could be room for improvement. The responses were fairly split, indicating that respondents were firstly not sure whether old materials could be improved on and furthermore, whether the old materials did need to be improved upon. Once the improvements on the material were established, the significance of materials utilised, such as concrete and blockwork, were presented to respondents, 86% agreed that concrete and blocks were used considerably and had the greatest influence on cost in low-cost housing. This validified the researcher’s decision to select a variety of concrete and masonry materials as innovative materials that can be implemented in lowcost housing.


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The significant use of concrete brought about the question as to whether the design of the low-cost housing is adequate for its intended purpose as the design would affect the cost of concrete utilised. This was supported by 71% of respondents as they have not searched for alternate designs that could be incorporated in low-cost housing. The remaining 29% of respondents who had a negative view on the design suggested that density should be increased in low-cost housing. Even though respondents have not searched for alternative designs, 29% of the respondents believe that there is a procedure to change the design of low-cost housing. Of these respondents, two of the respondents felt that it should be the duty of the government and relevant stakeholders to take the initiative of changing the design. Seventy one percent of the respondents did not make any suggestions regarding the change of design. Apart from government being involved in the design of the low-cost housing, the study wanted to establish the party responsible for the selection of the materials. Sixty four percent of the respondents stated government was the responsible party for specifying the materials to be used for low-cost housing construction. The remaining 36% disagreed, stating that other parties were responsible for the selection. Respondents suggested that the other parties included the developer, project manager and the surrounding community. By determining government’s involvement, the study presented a question to identify whether government’s main focus to eliminate the housing backlog in South Africa, was being met due to their determination. The respondents shared mixed feelings regarding this as 43% of the respondents felt that the government had not adequately been achieving its focus. The remaining 57% felt that the government was in fact determined in achieving its focus. The government housing schemes such as, The Reconstruction and Development Programme (RDP) have come into operation to assist the delivery of low-cost housing, is an initiative created by government to achieve its main focus. Seventy nine percent of the respondents agree that the scheme has assisted in efficient delivery despite its shortcomings. However 21% feels that the scheme was of no benefit to the delivery of low-cost housing. While the government intends to eradicate all slums by 2014, only 7% of respondents believed that the current KZN low-cost housing structure was adequate to achieve this goal. However 93% of the respondents had little faith that this could actually be achieved even though government housing schemes have been created. The reasons for this was that the government lacked the capacity and efficiency; the increase in unemployment and population and inadequate programmes. The respondents regarded these as the primary reason for the backlog and that it would take up to thirteen years to eliminate the backlog. It can be seen from the responses that innovation has been introduced to the respondents, but has not been implemented due to the cost and difficulty of implementing innovative materials.

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5. CONCLUSION AND RECOMMENDATIONS The objective of the paper was to identify innovative materials that could be implemented to improve the delivery of low-cost housing. The background and challenges that are evident in low-cost housing was determined. Upon completion of the literature review, questionnaires and interviews were compiled and reviewed by parties that are involved in low-cost housing in order to gain an industry response to the innovative materials. This paper identified and presented six innovative materials (HySSIL concrete, plastic formwork, mortarless blocks, self compacting concrete, fly ash bricks and Grancrete) that related to the most costly components of constructing a low-cost house. The responses from parties proved that the traditional methods of construction are preferred due to the difficulties of implementing innovative materials. The reasons stated were cost efficiency; product reliability; reluctance to change; problematic nature of municipal approval; availability of materials; difficulty in training and product reliability. Some of the industry’s participants believed that the quality of materials used in low-cost housing are adequate for their intended purpose and therefore do not wish to use innovation materials. This highlighted the industry’s reluctance to change, even though the benefits of the six materials reviewed materials currently out number that of the conventional materials been used. Certain participants believed that innovative material could improve low-cost housing in various ways, such as making it cost effective and increasing speed of delivery. In order to benefit from these materials, parties would have to become familiar and implement new, innovative materials. This could result in a way forward for the low-cost housing industry that will improve the delivery and decrease the costs of implementing low-cost housing. 6. REFERENCES Argonne National Laboratory. (2009). Grancrete Spray-On Structural Cement and Rapid Construction Process for Low-Cost Housing. [Online] Available from: http://www.anl.gov/echtransfer/pdf/Grancrete_RD100.pdf (Accessed: 30 April 2009). Azar. (2009). Revolutionary Technology A Breakthrough in Mortarless Systems!. [Online] Available from: http://www.azarblock.com/ (Accessed: 03 May 2009). Biermann, S. and Van Ryneveld, M. (2007). Improving the location of low income housing delivery in South African Urban Areas. [Online] Available from: http://researchspace.csir.co.za/dspace/ bitstream/10204/1237/1/Biermann_2007.pdf (Accessed: 7 March 2009).


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Budiawan, D. (2003). Determinants of Process Innovation on Construction Projects from the contractors’ Perspective. Unpublished PhD. Thesis, Queensland University of Technology, Brisbane. Construction Innovation Forum. (2008). High-Strength Lightweight Concrete. [Online] Available from: http://www.cif.org/nom2008/nom 2008-23.pdf (Accessed: 30 April 2009). CSIRO. (2007). HySSIL: new material for light buildings. [Online] Available from: http://www.csiro.au/science/Hyssil.html (Accessed: 30 April 2009). Dansoh, W.; Stilwell, C.; Leach, A. (2007). The information was hard and tough: Low-cost housing information in Pietermaritzburg, South Africa.. Vol. 57, Pp. 239-266. Francois, D. Zaoui, A. (1998). Mechanical Behavior of Materials: Elasticity and Plasticity. [Online] Available from: http://books.google.co.za/books?id=QaAcnZ-_GQcC. (Accessed: 2 May 2009). rd Gilbert, N. (2008). Research Social Life. 3 Ed. SAGE Publications Ltd. London. Grancrete. (2009). Welcome to Grancrete. [Online] Available from: http://www.grancrete. net/index.cfm (Accessed: 03 May 2009). Haener Block. (2009). Haener Block: A Mortarless Interlocking System. [Online] Available from: http://www.haenerblock.com/uniform.html. (Accessed: 15 March 2009). Hines, T. (1995). Using dry-stacked concrete masonry for affordable construction: Interlocking mortarless systems have the potential to reduce costs without sacrificing performance. [Online] Available from: http://www.sparlock.com/pdf/tom_hines.pdf (Accessed: 20 April 2008). HySSIL. (2009). Welcome. [Online] Available from: http://www.hyssil.com/ (Accessed: 30 April 2009). Illston, J. M. ; Domone, P. L. J. (2001). Construction Materials: Their nature and behaviour. [Online] Available from: http://books.google.co.za/books?id=-lySAncZt_MC. (Accessed: 2 May 2009). Kayali, O. (2005). High Performance Bricks from Fly Ash. Proceedings of the 2005 World of Coal Ash Conference, Kentucky, USA, 11-15 April 2005. Khan, F. (2002). The roots of environmental racism and the rise of environmental justice in the 1990s. Environmental Justice in South Africa. McDonald, D. (ed.), University of Cape Town Press, Cape Town. Pp. 15-48. Koebel, C.T. (2007). Innovation in Homebuilding and the Future of Housing. Journal of the American Planning Association. Vol. 74, No. 1, Pp. 45-58. KZN Housing. (2007). Houses, security and comfort. [Online] Available from: http://www.kznhousing.gov.za/Portals/0/docs/publications/newsletters/Fin al%20tabloid%20before%20print.pdf (Accessed: 24 February 2009).

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Leiringer, R. (2003). Public-Private Partnerships – Conditions for innovation and project success. Construction Improvement Process, eds. Atkin, B.; Borgbrant, J.; Josephson P. Blackwell Publishing, Oxford. Pp. 154-167. Liu, H., Banerji, S.K., Burkett, W.J., Van Engelenhoven, J. (2009). Environmental Properties of Fly Ash Bricks. Proceedings of the 2009 World of Coal Ash Conference, Kentucky, USA, 4-7 May 2009. Maree, K. (Ed) (2007). First Steps in Research. Van Schaik Publishers. Pretoria. South Africa. Mia, B and Othman, A. (2007). Affordable Housing: An Investigation into the Corporate Social Responsibility of South African Quantity Surveying firms. Joint CASLE AFRES Conference, Livingstone. Pg 298-315. Moladi. (2009a). Technology | Introduction. [Online] Available from: http://www.moladi.net/ technologyintroduction.aspx (Accessed: 30 April 2009) Moladi. (2009c) Plastic Modular Formwork. [Online] Available from: http://moladi.com/plastic_ formwork.htm (Date Accessed: 15 March 2009). Moladi. (2009b). Moladi: Building the Future. [Online] Available from: http://proxied.changemakers.net/ruacmcontestantfiles/moladi%20 %20Exec.pdf (Accessed: 15 March 2009). Napier, M. (2006). A macro-perspective on the first decade of South African housing delivery and its contribution towards the formation of sustainable settlements and communities. Proceedings from DBSA Knowledge Week. Development Bank of SA Halfway House, South Africa, 6 December 2005. National Department of Housing. (2004a). Housing Code. [Online]. Available: http://www.housing.gov.za (Accessed: 20 May 2009). National Department of Housing. (2004b). Social Housing Policy Review: Key Issues. [Online]. Available: http://ftp.shf.org.za/policy_housing_review.pdf (Accessed: 20 May 2009). Northern Cape Department of Housing and Local Government. (2006). Social contract for the rapid delivery of good quality housing. Provincial Housing Summit on Integrated Sustainable Human Settlement, Kimberly, South Africa, 18 May 2006. Osman, A. (2000). Accommodating diversity in housing; housing design and delivery: Failures, successes and opportunities. Housing Co operatives- Accommodating Diversity, Afesis-corplan Workshop, Coffee Bay, East London, South Africa, 11-12 April 2000. Rosenberg, I.K. (2003). Sustainable Low-Cost Housing: A review of three Low-Cost Housing Developments in Ganteng Province. Unpublished MSc. Dissertation. Rand Afrikaans University. Sardick, Z. Personal Interview. May 12, 2009. University of New South Wales. (2009). Green Research at UNSW. [Online] Available from: http://www.cerpa.unsw.edu.au/launch/exhibition/green/Fly%20Ash%20Bri ck%20poster.pdf (Accessed: 30 April 2009).


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Van der Werf, P. (1999). Mortarless Block Systems: [Online] Available from: https://www.masonryconstruction.com/ (Accessed: 15 March 2009). Venter, C.; Biermann, S.; Van Ryneveld, M. (2004). Low-cost housing location in South African cities: Empirical findings on cost and benefits. [Online] Available from: https://www.up.ac.za/dspace/bitstream/2263/5721/1/Venter_Low(2004).p df (Accessed: 7 March 2009). Watson, D.A. (1986). Construction Materials and Processes. 3rd Ed,

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An investigation into the drivers and barriers of innovation in the construction industry ¹ Harinarain N, ² Patel F, ³ Dawood G 1

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School of Civil Engineering, Surveying & Construction, University of KwaZulu-Natal, Durban, South Africa, [email protected], Tel No. +27-31-2602687 School of Civil Engineering, Surveying & Construction, University of KwaZulu-Natal, Durban, South Africa, [email protected], Tel No. +27-31-2602687 School of Civil Engineering, Surveying & Construction, University of KwaZulu-Natal, Durban, South Africa, [email protected]., Tel No. +27-31-2602687

ABSTRACT Purpose of this paper The construction industry is accustomed to using traditional or conventional methods of construction and is considered averse to change, which has raised numerous issues surrounding innovation in the construction industry. This research paper aims to identify the most significant drivers and barriers of innovation and which one of these poses the biggest obstacle for the implementation of innovation in the construction industry. Methodology/Scope Certain objectives were required to be met to achieve this aim. Firstly, a comprehensive literature review was carried out to determine the most prominent drivers and barriers of innovation. Secondly, questionnaires were sent out and interviews were carried out amongst construction industry participants to confirm whether the identified drivers and barriers of innovation were applicable in the KwaZulu-Natal context. Finally, the identified barriers were ranked and the drivers of innovation were discussed. Qualitative and quantitative data was gathered, evaluated and interpreted. Findings An outcome of the literature review was a comprehensive list of the barriers and drivers of innovation. The results of the conducted interviews and questionnaires, found that the cost of implementing an innovative initiative was the most prominent barrier. In addition, it was found that drivers, no matter how influential, could not overcome the cost barrier.

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An investigation into the drivers and barriers of innovation in the construction industry

Practical Implications International literature identified the most prominent barrier as the cost of implementing the innovation initiative. Similarly, in the Kwa-Zulu Natal context, the same view was held. It can therefore be held that the current drivers of innovation are not adequate in their approach to overcome the barriers to innovation. Value The research aims to provide a better understanding of the relationship between the drivers and barriers of innovation. The result of which can possibly help overcome the construction industry’s attitude in terms of reluctance to change. Keywords – innovation, barriers to innovation, drivers of innovation, reluctance to change, construction industry

An investigation into the drivers and barriers of innovation in the developments construction industry

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1. INTRODUCTION Innovation involves the generation of new ideas for doing things differently, but in an improved way, before applying it in practice (Fagerberg, 2003). According to Budiawan (2003), terms like creativity, change and invention are used interchangeably with innovation. Innovation is different to invention, whereby an invention is the generation of new ideas whilst innovation is the application of new ideas (Winch, 1998). For the purposes of this study, the following definition of innovation by Firth and Mellor (1999, p.199), is adopted: “Innovation means the application of new knowledge to industry, and includes new products, new processes, and social and organizational change”. Innovations are limited to incremental innovations in this study. Leiringer (2003), describes incremental innovations as the modifications made to existing technology or processes. In the construction industry context, modifications are usually done to existing products or materials, making them more efficient, effective or cost effective than previous products or materials employed. In construction, most innovations are incremental innovations (Koebel, 2007). 1.1 Objectives of this paper Firstly this research paper aims to identify the most significant drivers of and barriers to construction innovation. The researchers then determined through an in depth literature review, questionnaires and interviews, whether a lack of drivers or significant barriers is the cause of low levels of innovation within the KwaZulu-Natal (KZN) construction sector. In addition, the researchers sought to determine the most prominent construction industry participant responsible for promoting construction innovation from the interviews carried out and questionnaire responses. 2. LITERATURE REVIEW 2.1 Innovation in Construction Innovation in construction according to Gann (2000), dates back to the nineteenth century. Forms of innovation were usually as a result of new technology and/or different ways of production, which were formed by adapting traditional craft-based methods. On the turn of the twentieth century, mass production methods were implemented by suppliers. This has proven to be a fairly successful innovation for suppliers, in that it set these suppliers apart from the others and reduced the level of competition. The use of prefabricated components

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was developed as early as the 1950s and 1960s, and this is an innovation which is still developed every year (Gann, 2000). However, according to Gann (2000) and Winch (1998), in recent times the construction industry is lacking particularly in terms of quality, productivity and finished product functionality. For the construction industry to realise its true potential, enhanced competency and efficiency is required (Manley et al., 2005). Implementing construction innovation will achieve a greater performance and efficiency in the construction process or product created (Budiawan, 2003). Implementing innovation in construction is difficult, as the industry is known to be more conservative (Barrett et al., 2007), technologically backward (Reichstein et al., 2005), set in its ways, fairly reluctant to change (Manley et al., 2005), and depicted as not being an innovative industry (Abbott et al., 2008; Barlow, 2000; Atkin, 1999). Wilson (2008) uses the example of bricks, which, over the years have been produced in different shapes and sizes and bricklayers, till this day, still place them in the same indifferent way as others have done in the past. The underlying problem is the rate at which innovation is introduced in the construction industry which is lagging behind other leading industries (Abbott et al., 2008; Blayse and Manley, 2004; Barlow, 2000; Atkin, 1999; Koebel, 1999; Winch, 1998). It is therefore, quite evident that there is a need for construction innovation globally (Gann, 2000; Slaughter, 1998; Winch, 1998). Currently new construction developments are becoming more complex (Barlow, 2000) and thus increasing the need for innovative construction methods, materials and equipment to construct them. Accordingly, Budiawan (2003) states that more emphasis should be placed on technological advancements within the industry to counteract the complexities experienced on new construction developments. The quantification of the level of innovation in construction in South Africa is done through determining the level of investment in formal Research and Development (R&D) programmes initiated. Research indicates that private sector investment in R&D programmes amounts to approximately R1 million per year, which represents an extremely small portion of the total Gross Domestic Product produced by the industry yearly. According to Milford et al. (2001), this indicates that a relatively low level of construction innovation exists within the South African Construction Industry. In an attempt to overcome the low level of construction innovation, the Council for Scientific and Industrial Research (CSIR) came into existence, comprising of ten business units, with the CSIR Building and Construction Technology unit primarily focused on improving the construction industry. The unit produced several innovations which resulted in noticeable improvements in the industry with regard to efficiency, quality and decreasing construction costs (Milford et al., 2001). However, the researchers found from the interviews and questionnaires carried out, that


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the majority of the construction industry participants have not come into contact with the CSIR. Another issue is funding, either by the public or private sector seems to be the major factor inhibiting R&D programmes and consequently construction innovation implementation in South Africa. In addition to this, construction innovation is strongly affected by codes of practice, standards and specifications imposed by The South African Bureau of Standards (SABS) and Agrément South Africa. The SABS is responsible for setting standards for products, whilst the Agrément South Africa assesses constructed facilities fitness-for-purpose of non-standardised buildings (Milford et al., 2001). In 2000, Government introduced the Construction Industry Development Board (CIDB) as a driver to promote the development of all sectors of the construction industry (Milford et al., 2001). This initiative may address barriers that exist in the implementation of innovation within the construction sector. 2.2 Barriers to innovation A barrier to innovation is a circumstance or obstacle that prevents the implementation of innovation in construction. There are currently many reasons as to why the level of innovation is low in the construction sector: • •

•

•

•

Due to the short term of projects which are won in most instances on price and the opportunity or motivation for industry stakeholders to invest in R&D initiatives for innovation is minimal (Wilson, 2008). According to Leiringer (2001), the patterns of the construction industry cycle follow that of the economic cycle, during a recession, profits for companies are reduced, as a result, this hinders the implementation of innovation. The construction industry is project based and does not produce repetitive products (Wilson, 2008; Gann and Salter, 2000). The implementation of construction methods, changes with every site according to the scope and objectives of the project. In addition, the fragmented nature of the industry makes the products of construction more complex (Liker et al., 1999). Consequently this hinders the implementation of innovation in construction. Nam and Tatum (1997) argue that the slow adoption of new technology and innovation is a major factor in the construction industry. Participants in the industry state that the tendering process in construction is too short to adopt innovative ideas. Furthermore, when the construction stage is reached, it is too late to adopt innovative ideas as the processes have already been priced (Budiawan, 2003). The industry is predominantly made up of small firms which hinders the ability to innovate (Sexton and Barrett, 2003). Small firms have more

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•

• •


factors limiting innovation (Reichstein et al., 2005), for example they tend to focus mainly on those activities that directly affect them and have no strategy on managing technical external changes (Gann, 2000). Budiawan (2003), states that the risks attached to implementing innovation are higher in the construction industry, as a trial-and-error approach is not acceptable. If the resulting effect of implementing innovation is a failure, it affects the company’s reputation and credibility. As a result, construction firms are more averse to innovation. The conventional methods of managing construction projects poses another obstacle in the execution of innovation in construction (Mohamed and Tucker, 1996). Government statutory regulations and procurement methods adopted also have a significant impact on innovation in construction (Gann and Salter, 2000).

In a 2004 Australian case study by Manley (2006), key barriers to innovation facing the construction industry were identified. They were cost of initiative; insufficient time; lack of skilled staff; conservative stakeholders/clients; insufficient benefits; inadequate government programmes to support innovation; other; low volume of available work and poor staff attitudes. The results showed that more than thirty percent of the respondents indicated that the cost of the initiative was the primary barrier to innovation. According to Blackley and Shepard (1996), the fragmented construction industry makes the implementation of innovation more costly due to the various industry participants. Larger firms are more likely to adopt innovation as the costs can be spread over a large number of projects. However, as per Sexton and Barrett (2003), small firms are unlikely to innovate due to the exposure to higher costs which is an additional risk to the firms. Due to costs of innovations, many suppliers prefer to remain reluctant to changes until they are proven, to reduce risks of capital losses (Koebel, 2007). In some products, the innovative replacement product, costs more than the product which they replace. 2.3 Drivers of Innovation Drivers of innovation are factors that have the ability to encourage and promote the susceptibility to innovate. Drivers are the key influences in the construction industry which bring about and motivate innovative ways of approaching the construction processes. Since the construction industry is such a diverse sector, there are various ways in which innovation takes place (Abbott et al., 2008).


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Innovation occurring from various aspects can recognise drivers in construction innovation from different levels in the construction sector such as industry level (Pries and Janszen, 1995), institutional and firm level (Winch, 1998) and according to Lampel et al. (1996), construction project level. Drivers emerge from an increase in global competition and restrictive environment legislation (Manseau and Seaden, 2001), to improve the efficiency and effectiveness of the construction industry (Manley et al., 2005). Furthermore, another major contributing factor that drives innovation is R&D programmes. These programmes are mainly supported and funded by the government, therefore having the ability to carry on producing innovative methods and procedures (Koskela, 2002). Bossink (2004) has identified different levels in the industry from which drivers may occur: • Environmental Pressure: Influences from the external environment that force and encourage institutions to innovate. • Technological Capability: Technical aspects within the institutes that facilitate the development of innovative products and methods. • Knowledge Exchange: The exchange of information and knowledge within institutes to promote innovation. The intensity of innovation knowledge is complex and difficult to acquire alone, but by the sharing of knowledge within institutes’ participants can evaluate channels of knowledge flow and identify any blockages. • Boundary Spanning: This aspect encourages all organisations and companies to interact with each other to produce innovative methods and procedures that will benefit all. Organisations are main motivators which administers the flow of knowledge movement and the way innovation learning occurs. Clients play the most important role in driving innovation in the construction sector as indicated in Table 1. Barlow (2000) has shown that more experience the client has, the more demanding they become, which in turn, stimulates innovation in construction projects. The construction innovation procedure can be driven or enhanced by allowing construction industry participants to be involved in different levels in the processes, especially from an early stage. It is also important that participants have a selfmotivated drive to support these innovative processes; otherwise the procedure of innovation will not be successful (Budiawan, 2003). Furthermore, it can be seen from Table 1, that architects and engineers contribute considerably towards encouraging innovations, and therefore, the relationship between these two consultants is an important factor for innovation in construction (Manley, 2006).

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Table 1. Improving Performance in the Building and the Construction Industry: Manley (2006, p.7)

Encouragers of Innovation Large/Repeat Clients Architects Engineers Manufacturers Building designers Main contractors Developers Project managers One-off clients

59% 55% 51% 46% 44% 43% 38% 38% 27%

Trade contractors Other suppliers Organisations that set industry standards Quantity surveyors Funders Government regulators Letting agents Insurers

27% 26% 26% 19% 15% 11% 7% 5%

3. RESEARCH METHODOLOGY The researchers utilised the triangulation method as both quantitative and qualitative techniques were significant to the research. Qualitative techniques was used to collect and analyse the literature and interviews, where quantitative was utilised for the collection and analysis of questionnaires. Literature was collected to familiarise the researchers with the concept of innovation and to identify areas that could be focused upon. The literature review also allowed the researchers to identify similar research that had already been undertaken. The gap which the researchers addressed is whether a lack of drivers or significant barriers are the cause of low levels of innovation within the KwaZulu-Natal (KZN) construction sector. Furthermore, the researchers determined the most prominent construction industry participant responsible for promoting construction innovation. Once the questionnaire and interview had been compiled, a pilot study was carried out. Pilot studies are conducted with a small sample group to acquire critical analyses of the design of the survey questionnaire and interview (Terre Blanche et al., 2006). The results of the pilot study enabled the correction of errors or redundancies in the questionnaire. The chosen sample population included quantity surveyors and contractors. Only contractors and quantity surveyors situated in KZN, listed under the (031) area code and belonging to the Master Builders Association and Association of South African Quantity Surveyors respectively were used. Of the one hundred and twenty six contractors in KZN, fifty questionnaires and interviews were sent out, of which only fifteen responded (ten questionnaires and five interviews), indicating a response rate of 30%. Of the sixty-three quantity surveying firms in KZN, thirty questionnaires and interviews were set out, of which only ten responded (four questionnaires and six interviews), which indicates a response rate of 33%. Contractors were used due to their influence on the implementation of innovation in projects, whilst quantity surveyors were used due to their


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ability to play a dual role in projects i.e. project management and quantity surveying work. 4. ANALYSIS OF RESULTS Once the researchers completed the literature review, questionnaires were sent out, as well as interviews were carried out on various aspects of the subject matter of the research. The responses, which were analysed in Microsoft Excel, are presented below. Ninety six percent of industry participants felt that due to the inherent qualities of innovation in construction, there is beneficial scope for its implementation within the industry. Four percent of respondents believed that tried and tested methods are best to abide by. This persistent notion is best described by Manley et al. (2005) as the industry’s well-known characteristic of reluctance to change. This characteristic of reluctance to change was further highlighted where twenty of the respondents stated that their organisations do not invest in methods or techniques that could possibly reduce the time or cost of construction. This indicated that the large majority of the organisations’ were set on using the traditional methods as opposed to researching new methods. Organisational characteristics were further questioned to determine if adequate skills and/or resources were available to implement innovative techniques or materials. Seventeen respondent organisations’ believed that they have adequate skills and/or resources to implement an innovative technique/material. The above-mentioned results, suggest that this is not a major barrier to innovation. Skilled labour is a country-wide problem, as such, seventeen respondents indicated that there aren’t enough skilled labourers working in construction, pointing out that this could be a significant barrier to the implementation of innovation. There were several barriers to innovation in construction that were identified by Manley (2006), these barriers were cost of initiative; insufficient time; lacked of skilled staff; conservative stakeholders/clients; insufficient benefits; inadequate government programmes to support innovation; other; low volume of available work and poor staff attitudes. The pilot study indicated that low volume of available work and poor staff attitudes were not significant barriers in the KZN context and as such they were omitted. In addition to this respondents were asked to supply further barriers that they believed were significant. These additional barriers were reluctance to change; availability of materials; availability of suppliers; current economic climate and building codes For the purposes of the paper, the identified barriers (excluding the barriers identified in the pilot study as redundant) stated in Manley (2006),

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together with the additional barriers cited by the respondents, formed the barriers that respondents were asked to rank on a Likert scale of 1 to 5. The numerical scores provided an indication of the varying degree of influence that each barrier has on innovation. To further investigate the data, a relative importance index (RII) was used to rank the barriers according to their influences. The calculation was carried out using the following formula: Relative Importance Index (RII)

=

∑w AN

Where w =

weighting given to each clause by the respondents and range from 1 to 5, where 1 = not important and 5 =very important.

A =

highest weight (five in this case) and

N =

total number of the sample (Kometa and Olomolaiye, 1997).

The RII ranges from zero to one. The full list of RIIs and ranking of barriers is provided in Table 2, which shows that some barriers pose considerable threat to innovation while others do not. The ranking is depicted in Figure 1 showing the cost of implementing innovation as the most prominent barrier. The next most important barrier is reluctance to change. The least important barrier to innovation is the current economic climate. Table 2. – Relative Importance index of Barriers

Barrier Cost of implementing innovation Reluctant to change Availability of suppliers Inadequate government support programmes Availability of materials Insufficient benefits Conservative clients/stakeholders Shortage of skilled labour Building Codes Time required Current economic climate Other

RII 0.91 0.83 0.78 0.78 0.75 0.74 0.72 0.72 0.71 0.71 0.54 0


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Figure 1. – Relative Importance index of Barriers

Sixty percent of the respondents believed that it is difficult to implement an innovative construction material. The reasons indicated by the respondents highlighted most of the common barriers that the research identified. The next part of the questionnaire and interview was based on drivers of construction innovation. From the literature reviewed, challenging new construction projects were identified as a significant driver of innovation. It was ascertained from the respondents that construction projects in the KZN area, were not a major source of innovation. Twenty eight percent of the respondents that did find innovative solutions were restricted to innovative construction methods and materials, with one respondent stating a new category of cost saving techniques. None of the respondents have encountered a construction project that required them to use innovative construction equipment. This could possibly mean that there is no widely available innovative construction equipment or that there just is no scope for their implementation within the KZN construction sector. Contractor feedback was another significant driver of innovation identified in the research. Thirteen of the respondents concurred that contractors do give feedback which is considered by architects. This suggests that contractors are in fact trying to promote the innovation process by making suggestions to the architect. The Building and Construction Technology unit of the Council for Scientific and Industrial Research (CSIR) is primarily focused on improving the construction industry. From the responses it was apparent that the CSIR is not making a significant impact in the KZN construction sector. It

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can therefore be deduced that, although the unit has produced several innovations, which resulted in noticeable improvements in the industry, these improvements are not being enjoyed by the KZN construction sector. In addition it was found that the CIDB is playing a more prominent role in the KZN construction sector than the CSIR. Many of the respondents have come into contact with the CIDB: • Thirty two percent in training with the remaining 68% having no contact with them. • Eight percent in research with the remaining 92% having no contact with them. • Eight percent in innovation with the remaining 92% having no contact with them. • Thirty six percent in business programmes with the remaining 64% having no contact with them. • Twenty percent in other ways with the remaining 80% having no contact with them. Unlike the interaction documented with the CSIR; at least eight percent of the respondents had encountered the CIDB on each of the specified categories. There are several drivers of innovation that were identified by the research. From the responses it was evident that key innovating drivers are present but are not optimally active in the KZN construction sector, with only thirty two of the respondent population answering positively. Consequently, the sector is largely uninfluenced with regard to innovation in construction. There are many drivers that could possibly influence industry participants to be innovative (working environments, projects, competition etc.), none of which have been cited by the respondent population. The research further identified parties responsible for driving innovation. The researchers sought to determine the most prominent construction industry participant responsible for promoting innovation in construction. These participants were: the client, the contractor and the professional team. From the three main participants involved in a construction project, it was found that seventy two percent of the respondents believed that the client was the most prominent encourager of innovation, with only twenty percent of the respondents indicating the contractor being the most prominent encourager of innovation.


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5. CONCLUSION AND RECOMMENDATIONS Innovation in construction is not a new concept, dating back to the nineteenth century. However, implementing innovation in construction is difficult as the industry is reluctant to change and less innovative in comparison to other industries. Several barriers to innovation in construction were identified. These barriers were cost of initiative; insufficient time; lack of skilled staff; conservative stakeholders/clients; insufficient benefits; inadequate government programmes to support innovation; other; reluctance to change; availability of materials; availability of suppliers; current economic climate and building codes. Of the identified barriers, the cost of the initiative was ranked by respondents as the most prominent barrier. Construction industry participants; the project itself; environmental pressure and competition are some of the various sources that drive innovation. Construction industry participants being the client; the professional team; contractor and suppliers. The first objective of identifying the drivers and barriers to construction innovation thus being fulfilled. In respect of the second objective, the research concluded that the current drivers are insufficient to overcome the primary barrier of the cost of implementing the innovative initiative. Lastly, it was found that the most prominent construction industry participant responsible for promoting construction innovation was the client, followed by the professional team and finally the contractor Accordingly, it is therefore recommended that these participants should play their respective role in driving the innovation process as numerous benefits can be realised, as well as possibly overcoming the cost of implementing an innovative initiative. Some of the benefits that can be derived by the construction industry include: reduced cost, time and maintenance cost; and increased affordability. 6. REFERENCES Abbott, C., Aouad, P., G, Madubuko, L. (2008). An Innovation Platform for Construction: NWUA Pilot Project to Develop Innovation Platforms in Non-Science Research Disciplines. Pp. 8. Atkin, B. (1999). Innovation in the Construction Sector. ECCREDI Study, Brussels. Barlow, J. (2000). Innovation and learning in complex offshore construction projects. Research Policy. Vol. 29, No. 7, Pp. 973-989. Barrett, P., Abbott, C., Rudock, L., Sexton, M. (2007). Hidden Innovation in the Construction & Property Sectors. RICS Research Series Papers. Vol. 7, No. 20, Pp. 1-21. Blackley, D.M. and Shepard, M. (1996). The Diffusion of Innovation in Home Building. Journal of Housing Economics. Vol. 5, No. 4, Pp. 303 322

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Blayse, A. and Manley, K. (2004). Key Information on construction Innovation. Construction Innovation. Vol. 4, No. 3, Pp. 1-12. Bossink, B.A.G. (2004). Managing Drivers of Innovation in Construction Networks. Journal of Construction Engineering and Management. Vol. 130, No. 3, Pp. 1. Budiawan, D. (2003). Determinants of Process Innovation on Construction Projects from the contractors’ Perspective. Unpublished PhD. Thesis, Queensland University of Technology, Brisbane. Fagerberg, J. (2003). Innovation: a guide to the literature. Paper presented at centre for technology, innovation and culture.University of Oslo, Norway. Firth, L. and Mellor, D. (1999). The Impact of Regulation on Innovation. European Journal of Law and Economics. Vol. 8, No. 3, Pp. 199-205. Gann, D. (2000). Building Innovation – complex constructs in a changing world. Thomas Telford, London. Gann, D. and Salter, A. (2000) Innovation in project based, serviceenhanced firms: the construction of complex products and systems. Research Policy, Vol. 29, No. 7-8, Pp. 955–972. Koebel, C.T. (1999). Sustaining Sustainability: Innovation in Housing and the Built Environment. Journal of Urban Technology. Vol. 6, No. 3, Pp. 75-94. Koebel, C.T. (2007). Innovation in Homebuilding and the Future of Housing. Journal of the American Planning Association. Vol. 74, No. 1, Pp. 45-58. 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. Koskela, L. (2002). How can construction research be organized? An overseas comment on the Fairclough Review. Building Research & Information. Vol. 30, No. 5, Pp. 305–311. Lampel, J., Miller, R., Floricel, S. (1996). Information asymmetries and technological innovation in large engineering projects. R&D Management. Vol. 26, No. 4, Pp. 357-369. Leiringer, R. (2001). The Scope for innovative thinking in public-private partnerships. Proceedings of the Ninth International Group for Lean Construction Conference. National University of Singapore, Singapore, 6-8 August 2001. Pg 475-487. Leiringer, R. (2003). Public-Private Partnerships – Conditions for innovation and project success. Construction Improvement Process, eds. Atkin, B.; Borgbrant, J.; Josephson P. Blackwell Publishing, Oxford. Pp. 154-167. Liker, J.K., Collins, P.D. and Hull, F.M. (1999). Flexibility and standardisation: test of a contingency model of product design– manufacturing integration. Journal of Product Innovation Management, Vol. 16, Pp. 248–267.


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Manley, K. (2006). Improving Performance in the Building and the Construction Industry. Innovate Now series. The Brite Project. Construction innovation building our future. Manley, K., Blayse, A., McFallan, S. (2005). Demonstrating the Benefits of Construction Innovation. International Research Conference. University of Waikato, Hamilton, New Zealand. 7–8 July 2005. Manseau, A. and Seaden, G. (2001). Innovation in construction: an international review of public policies. Spon press, London. Milford R., Rust C., Qhobela M. (2001). South African public policy instruments affecting innovation in construction. Innovation in Construction – An international review of public policies, Manseau A. and Seaden G. (Eds.), Spon Press, London. Pp. 323-350. Mohamed,S. and Tucker, S. (1996) Options for applying BPR in the Australian Construction Industry. International Journal of Project Management. Vol. 14, No. 6, Pp. 379-385. Nam, C.B. and Tatum, C. B. (1997) Leaders and champions for construction innovation. Construction Management and Economics. Vol. 15, Pp. 259–270. Pries, F. and Janszen, F. (1995). Innovation in the construction industry: the dominant role of the environment. Construction management and economics. Vol. 13, no. 1, pp. 43-51. Reichstein, T., Salter, A., Gann, D. (2005). Last among equals: A comparison of innovation in construction services and manufacturing in the UK. Innovation Studies Centre. Vol. 23, No.6, Pp. 631-644. Sexton, M. and Barrett, P. (2003). Appropriate innovation in small construction firms. Construction Management and Economics. Vol. 21, No. 6, Pp. 623-633. Slaughter, E. (1998). Models of construction innovation. Journal of Construction Engineering and Management. Vol. 124, No. 3, Pp. 226 231. Terre Blanche, M., Durrheim, K., Painter, D. (2006). Research in Practice. 2nd Ed. University of Cape Town Press (Pty) Ltd. Cape Town, South Africa. Wilson, A. (2008). Innovation driven by situation. Department of innovation, industry, science and research. Australia. Winch, G. (1998). Zephyrs of creative destruction: understanding the management of innovation in construction. Building Research & Information. Vol. 26, No. 4, Pp. 268–279.

SACQSP2009-15

Strategic management and the quantity surveying profession – changed perceptions in the new South Africa 1

Hoffman DJ 1

Department of Construction Economics, University of Pretoria, [email protected], Tel No. 012-420 2551

ABSTRACT AND KEYWORDS Purpose of this paper South African society, the building industry and quantity surveying profession experienced significant change during the previous ten years, challenging organisations and managers thereof. New threats and opportunities require efficient, skilled managers for organisations to survive and prosper. Strategic management offer such skills. Research ten years ago indicated restricted application of strategic management by quantity surveying firms. This paper investigated if the period of change increased this rate of application. Design/methodology/approach Data was obtained by means of structured interviews with the same sample using the same questionnaire of the previous research. The analyzed data described the application of strategic management by firms. Results was also compared with the original research. Research limitations/implications The sample size was too limited for general conclusions applicable to the entire profession. Suggestions for future research are to expand the research sample to the whole of Gauteng and beyond, to also investigate spheres of management such as marketing and to investigate the relationship between academic training of professionals and application of management practices Practical implications (if applicable) The research indicated that managers of quantity surveying companies may still rely largely on their own experience, ‘gut-feel’ and a pragmatic approach to overcome challenges to their firms. Inconsistencies exist

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Strategic management and the quantity surveying profession

between evaluation of and application of management tools such as strategic management indicating a possible want or gap in the knowledge base of practitioners. This may have implications for and pose challenges to academic institutions training future professionals as well as for professional organisations providing CPD training - in striving to bridge this knowledge gap. Professional associations should also be encouraged to motivate members and specifically those belonging to smaller firms to keep learning and to also enhance their management skills. What is original/value of paper. The paper adds insight into current perceptions and actions of quantity surveying managers and compared it to that of the past. This is of value to both these managers and to academic institutions training quantity surveyors, for the future prosperity of firms and the profession and for continued development of qualified professionals. Findings Findings of the research largely supported the hypothesis that strategic management is regarded as important, but could not support the hypotheses that application thereof is consistent and that a significant positive relationship exist between time and the increased evaluation of and application of strategic management in the management of quantity surveying practises. KEYWORDS

Strategic management, quantity surveying, management skills,

management application, change.


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INTRODUCTION This research is motivation by the rate of change in modern society and in the economic environment in particular. Coupled to this is man's need to remain functional within his changing environment. Observation of the effect of continuous global development in communication and electronic connectivity and of companies and countries expanding their influence internationally, seems to indicate that the global village first described by Marshall Mcluhan (1962) has reached an advanced state of creation. It may therefore be reasoned that global economic trends and events influencing large or small alike may become the norm, rather that the exception. The construction industry in South Africa and with it also the quantity surveying profession did not escape this change. The argument can therefore be posted that the ability of quantity surveying practices to survive and to prosper within their changing environment may possibly be decided by the extent to which the management of such practices possess of and effectively utilise integrated management skills and systems. This research focus on management, more specifically on strategic management and on the application thereof by the quantity surveying profession. Strategic management offers unique capabilities for managers in need of coping with change and with the uncertainty associated with change. In this regard strategic management can greatly assist managers in their pursuit of organizational goals (Pearce & Robinson, 1994). Since the first democratic election of 1994 South Africa went through a time of very significant change that affected every aspect of local society. For local companies and the management teams thereof the challenge to cope with this local change was therefore added to the challenge resulting from coping with international change. THE PROBLEM Ten years ago at the time of the start of the period of change in South Africa, research (Hoffman, 1998) was undertaken on the evaluation and application of strategic management by quantity surveying firms and of any linear relationship between evaluation and application of strategic management. Findings supported the hypotheses that strategic management is regarded as important, but that application of strategic management principals by quantity surveying firms is inconsistent and limited. Due to the significant change experienced by South African society during this time and the challenges that had to be surmounted by quantity surveying firms, the question was if this resulted in an increased awareness of the merits of management systems amongst quantity

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surveyors. It was decided to follow up the previous research to establish if and to what extent the evaluation and application of strategic management by quantity surveying firms has changed during the previous ten years and to describe such change. The hypotheses are that managers of quantity surveying firms (even more so than in 1998) regard strategic management as an important management tool, that the application of strategic management are consistent and on a higher level than in 1998 and that a significant positive relationship exist between time and the increased evaluation of and application of strategic management in the management of quantity surveying practises. RESTRICTIONS The design of this follow-up research (Hoffman, 1998) was to create an direct comparison with the findings of the original research. The same questionnaire was used and the sample was restricted to firms forming part of the original sample of 15 respondents. Only those firms in the original sample that was not in business any more, was replaced by firms with a similar profile. The population for the original research was the quantity surveying practices in the larger Pretoria area employing three quantity surveyors or more. The population was stratified into thirteen smaller practices (employing three quantity surveyors), nine medium sized practices (employing four or five quantity surveyors) and five larger practices (employing six or more quantity surveyors). From this stratified population a random sample of fifteen practices was taken consisting of six smaller practices, five medium sized firms and four larger practice. THE QUANTITY SURVEYING PROFESSION A quantity surveyor is a person registered in accordance with article 19 of the Quantity surveyor’s Act (Act no 49 of 2000), who does the work reserved for quantity surveyors in accordance with clause 26 of the Act and who in practicing his profession meets with the requirements of the Code of professional conduct of the South African Council of the Quantity Surveying Profession. During the British reign following the Anglo Boer war, the first quantity surveying association was formed in 1905 and in 1908 the South African Institute of Quantity surveyors was founded. The Act on Architects and Quantity surveyors (Act No 18 of 1927) replaced the South African Institute of Quantity surveyors by the Chapter of South African Quantity surveyors (Law, 1985). This law gave the first statutory acknowledgement and legal protection to the profession.


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The Act on Quantity Surveyors (Act No 36 of 1970) resulted in the founding of the South African Council for Quantity Surveyors (now the South African Council for the Quantity Surveying Profession) as well as the Association of South African Quantity Surveyors, which bodies are still responsible for the management and control of the profession (Preller, 1993). Preller (1993) described quantity surveyors as the cost managers of the construction industry. Quantity surveyors act as consultants with regard to financial and contractual aspects of the construction industry. According to the Association of South African Quantity Surveyors (ASAQS), quantity surveyors’ services to the construction industry may be rendered during all stages of real estate development. The quantity surveyor’s traditional services and products include estimating building cost, compiling feasibility studies, advice on tender and contract strategy, compiling tender documentation, payment certificates, financial progress reports and final accounts. Other than these traditional responsibilities, quantity surveyors also may render services such as project management, calculating life cycle costs, do value management analyses and estimating replacement values of property for insurance purposes (ASAQS, 2009) THE NEED FOR MANAGEMENT SKILLS Various conditions endemic to the local construction industry creates an environment where competency in strategic management skills may be highly advantageous to quantity surveyors. Profit margins in the construction industry was traditionally under pressure for most of the period 1981 – 1996 with tender prices rising on average 16,09% per annum slower than inflation. This was confirmed by two sets of indices of Medium-Term Forecasting Associates of Stellenbosch forecasting the Bureau of Economic Research’s building cost indices (price of building tenders) against Statistics South Africa’s P0151 publication (JBCC indices of inflation of building cost (South Africa, 1996; Stellenbosch, 1996). During the period 2000 – 2007 the industry experienced a continued growth phase. Tender prices rose faster than costs and that closed this gap between tender prices and rising costs. However the economic downturn that started 18 months ago resulted in tender prices again being under considerable pressure. Quantity surveyors can therefore again expect to experience tougher commercial and economic conditions (Stellenbosch, 2008). Due to the requirements and nature of their work environment, quantity surveyors will often tend to be technically and product orientated. This orientation is possibly enhanced by the content of their academic training. It can therefore be argued that quantity surveyors will tend to rely on the technical merits of their products and services “sell” it self to clients. Possible complacency due to years of legal protection and regulation could also have assisted to dull their senses of survival and opportunism.


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Competency in strategic management skills can help to prevent situations such as the above and to assist managers to be more accurate in their evaluation of themselves and of their environment (Pearce et al, 1994). STRATEGIC MANAGEMENT Strategic management refers to that set of decisions and actions that leads to the creation and implementation of strategies focused on realizing the companies’ goals. Strategic management also take place on three levels within the organization i.e. the corporate level, the management level and the functional level (Pearce et al, 1994). Warren (2006) regards the formulation and implementation of plans focused on organizational goals to be the essence of strategic management. Sharplin (1985) agrees, but also focus on the continued interests of the organization whilst executing such plans. According to Van Schalkwyk (1990) and (Ungson & Wong, 2008) strategic management specifically focus on accommodating aspects of essential concern for the organization in long term goals and actions to create the best fit with the environment. The value and benefit of strategic management is to assist with integrating the external environment of the organization with the internal management thereof. The external environment consist of the immediate environment such as competitors, suppliers, clients and resources as well as the remote environment consisting of the economy, social, political and technological circumstances (Pearce et al, 1994). Thompson and Strickland pointed out that strategic management challenges managers on an entrepreneurial level to ensure that the organization’s strategy is original, relevant and in step with the changing environment (1992) Pearce et al (1994) developed a comprehensive model of strategic management. This model combines the interactive as well as the iterative nature of strategic management. The model consists of nine important activities: 1.

define the organization’s mission;

2.

develop an organizational profile;

3.

evaluate the organization’s external environment;

4.

analize the organization’s options by evaluating available resources

against the external environment;

5.

chose the most suitable option;

6.

formulate long term goals and strategies that will result in the most


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desirable results; 7.

develop annual goals and strategies matching long term goals and

strategies;

8.

implement the strategies; and

9.

evaluate and give feedback.

The model of Pearce and Robinson and the components thereof correspond to a large degree with the opinions and ideas of Wheelen and Hunger (1986), Glueck and Jauch (1984) and Mintzberg (1973). The future role of strategic management including the importance of relative profitability and niche markets (Langohr, 1998) and the vision and role of the chief executive officer (Dionne, 1997) is likely to be of continued importance for the survival and prosperity of organizations (Ala, 1997). OBTAINING DATA Primary data was used obtained by means of structured interviews with the sample of fifteen quantity surveying firms. This research is a follow-up on a previous research endeavour (Hoffman, 1998) with the specific purpose to create a directly comparable scenario. The sample and population was described under “Restrictions”. Of the original fifteen firms in the sample, a total of five firms are not functioning any more and was replaced by firms with a similar profile. After replacing the five firms the new sample consisted of five smaller practices, six medium sized firms and four larger practices. . TREATMENT OF THE DATA The majority of the data is of nominal or ordinate nature. For ease of interpretation the data was quantitatively interpreted according to the same process described in for the previous research endeavour (Hoffman 1998). The motivation of the quantitative interpretation process was based on objective and rational reasoning. The data was always evaluated with due care and the meaning thereof was treated with integrity and the required insight. The focus was always to get closer to the true meaning of the data. As with the previous research, a limit of 75% was set as minimum measurement for both the evaluation of and application of strategic management to be accepted as generally applicable. RESULTS


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Questions 15 to 24 investigated the respondents evaluation of ten strategic management concepts.

Evaluation of Strategic management The overall evaluation level was lower than the evaluation measured in 1998 (75% vs 79,67%) with the evaluation of 7 out of 10 aspects being measured declining as indicated by Figure 1.

100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

1998

SW O T Co st le Pr ad od er uc tF oc us Pr od uc tD iff TO TA L

M

CE O

2009

iss io n Lo ng -te rm Sh or t-t er m Ex te rn en v Se lf ev al

Evaluation (%)

STRATEGIC MANAGEMENT EVALUATION

Strategic Management Aspect

Figure 1 : STRATEGIC MANAGEMENT EVALUATION The evaluation level calculated just equalled the limit of 75% imposed by the research as being the indicating measure for accepting that quantity surveyors regard strategic management as an important business tool. Analysis of the evaluation level according to firm size did not add any additional new insight into the meaning of the data.


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MISSION STATEMENT EVALUATION 90.00

Evaluation (%)

80.00 70.00

71.67 60.00

55.00

60.00

81.25

80.00

79.17

50.00

50.00 40.00

50.00

1998 2009

30.00 20.00 10.00 0.00 Small

Medium

Large

TOTAL

Firm Size

Figure 2 : MISSION STATEMENT EVALUATION Question 15 tested the merits of the mission statement. Mission evaluation was lower than 1998 (60% vs 71.67%) with only large firms evaluating the merit of the mission statement substantially higher than before. This is possibly indicative of a more sophisticated management approach by large firms in recent years (see Figure 2). External environment, self evaluation and the role of the CEO all exceeded 75% but was lower than in 1998. External environment was positively correlated to firm size, indicating more environmental awareness by larger, more sophisticated firms. Self evaluation and the role of the CEO however were both negatively correlated with firm size. This may be indicators of lack of maturity and insight by such managers, but could also be indicative of conflict evasion in management styles of larger firms ( see figure 3 – 5).

Evaluation (%)

EXTERNAL ENVIRONMENT EVALUATION 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

100.00

95.00

87.50 75.00

83.33

81.25

88.33 85.00

1998 2009

Small

Medium

Large Firm Size

TOTAL


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Figure 3 : EXTERNAL ENVIRONMENT EVALUATION

Evaluation (%)

SELF EVALUATION 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

87.50 90.00

90.00 79.17

81.25

86.67 75.00

81.67

1998 2009

Small

Medium

Large

TOTAL

Firm Size

Figure 4 : SELF EVALUATION

Evaluation (%)

CEO INFLUENCE EVALUATION 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

91.67 90.00

100.00

91.67

79.17

81.25

80.00 68.75 1998 2009

Small

Medium

Large

TOTAL

Firm Size

Figure 5 : CEO INFLUENCE EVALUATION The evaluation of long and short-term goals as well the merits of doing SWOT analysis measured above 75%, but size of firms was inconclusive to add more insight into the data. Cost leadership as possible successful long-term strategy was evaluated negatively (55%) by respondents, both in 1998 and in 2009. This is an indicator of the competitiveness of the industry and could further be ascribed to clients who frequently insist on substantial discount on proposed fees for quantity surveying services. Product focus was however strongly positively evaluated by respondents, although less so than in 1998 (83,33% vs 91,67%) (figure 6).


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This confirmed the view stated of the strong product and quality focus of quantity surveyors.

Evaluation (%)

PRODUCT FOCUS EVALUATION 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

100.00 79.17

100.00

87.50

87.50

75.00

91.67

83.33

1998 2009

Small

Medium

Large

TOTAL

Firm Size

Figure 6 : PRODUCT FOCUS EVALUATION Product differentiation as long-term strategy was evaluated lower than 70% by respondents, both in 1998 and in 2009. The evaluation was slightly higher in 2009 with only larger firms being of the opinion that this strategy may have merit. This again indicates a highly competitive industry with pressure on margins and limited scope for non-core products and services that do not directly service primary client needs. Application of Strategic management Questions 25 to 34 investigated the respondents application of ten strategic management concepts. The application levels of strategic management by quantity surveyors, measured very similar to the results of 1998. The general application level of 69,67% was below the limit of 75% imposed by the research as being the indicating measure for accepting that quantity surveyors consistently apply strategic management as an important business tool. Only four strategic management aspects measured application levels exceeding 75% (see figure 7). Only large firms with an application measure of 76,88% exceeded the required minimum level, indicating a slightly higher appreciation by them of the merit of applying strategic management in quantity surveying practise.


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100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

1998

ea Pr de od r uc t Fo cu Pr s od uc tD iff TO TA L

SW O T

Co st l

M

CE O

2009

iss io n Lo ng -te rm Sh or t-t er m Ex te rn en v Se lf ev al

Evaluation (%)

STRATEGIC MANAGEMENT APPLICATION

Strategic Management Aspect

Figure 7 : STRATEGIC MANAGEMENT APPLICATION Overall level of mission application was very low and similar to 1998 ( 55% vs 56,67%) but with the application levels of large firms in 2009 substantially higher (see figure 8). This corresponds with similar higher levels measured for the evaluation of the merit of the mission statement (see figure 2) and supports the deduction of a more sophisticated management approach by large firms in recent years. MISSION APPLICATION 100.00 90.00 Evaluation (%)

80.00 70.00 60.00 50.00

75.00

70.83

45.00

50.0050.00

56.6755.00 43.75

1998 2009

40.00 30.00 20.00 10.00 0.00 Small

Medium

Large

TOTAL

Firm Size

Figure 8 : MISSION APPLICATION Additional support for a possible positive correlation between firm size and application of strategic management was evident from the data for application of long term goals and of external environment evaluation.


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Application of long term goals only measured 66,67%, but indicated a strong positive correlation with firm size (figure 9). It was however substantially lower than the evaluation level of 80% indicating that managers may possibly lack time, money and/or conviction to apply what they belief with regard to management of their firms.

Evaluation (%)

LONG-TERM GOAL APPLICATION 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

75.00

81.25 68.75

66.67

65.00 66.67

54.17 55.00

1998 ong

Small

Medium

2009

Large

TOTAL

Firm Size

Figure 9 : LONG-TERM GOAL APPLICATION Application of self evaluation only measure 63,33%, but also indicated a positive correlation with firm size. As with long term goals, the evaluation of this concept of 81,67% was significantly higher than the application thereof. External environment evaluation (figure 10) exceeded the 75% qualification limit of the research design for acceptance of strategy management application. The measurement also exceeded that of 1998 and now indicates a strong positive correlation with firm size. This corresponds with the evaluation of the external environment and may be indicative of the effect of the changing South African landscape on larger firms.


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Evaluation (%)

EXTERNAL ENVIRONMENT APPLICATION 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

93.75 83.33 66.67 70.00

65.00

81.67 56.25

63.33 1998 2009

Small

Medium

Large

TOTAL

Firm Size

Figure 10 : EXTERNAL ENVIRONMENT APPLICATION Strategy management applications that also exceeded the 75% qualification limit but without conclusive correlation to firm size was shortterm goals (81,67%) as well as the role of the CEO (83,33%). Both these application levels corresponds with the evaluation levels thereof. The application of SWOT analysis techniques remained on the 55% level as measured in 1998 and also showed no correlation with firm size. This is contrary to the opinion of quantity surveyors of the merits thereof of 75%. HYPOTHESE TESTING Measurement of the evaluation of strategic management as an important management tool indicated an overall level of 75%. The measurement of the evaluation of seven of the ten aspects of strategic management also exceeded the 75% limit. The hypothesis that strategic management is regarded as an important management tool is therefore accepted. Measurement of the application of strategic management as an important management tool indicated an overall level of 69,67%. Six of the ten aspects of strategic management also failed to exceeded the 75% limit. The hypothesis that the application of strategic management is consistent is therefore rejected. The evaluation level of strategic management as an important management tool declined from 79,67% in 1998 to 75% in 2009. Seven of the ten aspects of evaluation of strategic management also declined from 1998 to 2009. The application level of strategic management as an important management tool declined from 70,33% in 1998 to 69,67% in 2009. Five of the ten aspects of application of strategic management also declined from 1998 to 2009. The hypothesis that a significant positive relationship exist between time and the increased evaluation of and application of strategic


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management in the management of quantity surveying practises is therefore rejected. CONCLUSION This paper adds insight into current perceptions and actions of quantity surveying managers and compared it to that of the past. This is of value to both these managers and the future prosperity of their firms, for the profession at large and for continued development of qualified professionals. The findings of the research suggest a varying degree of positive correlation between the size of firm and the evaluation and application of strategic management. This indicate that smaller firms may be at greater risk of being unable to use more sophisticated management tools and systems in responding to challenges posed by changes in their environment. The research indicated that managers of quantity surveying companies may still rely largely on their own experience, ‘gut-feel’ and a pragmatic approach to overcome challenges to their firms. Inconsistencies exist between evaluation of and application of management tools such as strategic management. This may be indicative of a possible want or gap in the knowledge base of practitioners. If such gaps do indeed exist, it may have significant implications for and pose challenges to academic institutions training future professionals. It may also have very specific implications for professional organisations providing CPD training - in striving to bridge this gap. The research also indicated that professional associations should also be encouraged to continuously motivate members and specifically those belonging to smaller firms to make learning a life-long commitment focussed on enhancing amongst others their management skills. RECOMMENDATIONS Based on the limitations and restrictions of the research and the findings thereof, the following recommendations for future research are suggested: - - - - -

to repeat the same research, but based on a statistically representative sample from all quantity surveying firms in Gauteng; to investigate strategic management within smaller firms; to investigate other spheres of management such as marketing and the applications thereof by quantity surveyors; to investigate the relationship between application of strategic management by firms and their financial success over this period of ten years; to investigate the relationship between academic training of professionals and application of management practices

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REFERENCES Association of South African Quantity Surveyors. ASAQS [online]. Available from: http://www.asaqs.co.za/public/history/ [accessed 28 September 2009]. Ala, M. 1997. Keys to success in today's business environment. Business Forum Winter 1997 22(1): 24 - 28. Dionne, J.L. 1997. It takes a global village Chief Executive Apr 1997 122: 32 - 34. Glueck, W.F., & Jauch, L.R. 1984. Business Policy and Strategic Management. (4e Uitgawe) McGraw-Hill, New York. Hoffman, D.J., 1998. Strategic management in the Quantity surveying profession. MSc-treatise, University of Pretoria. Law, N.R., 1985. History of the Quantity Surveying profession in South Africa. The Association of South African Quantity Surveyors, Johannesburg. Langohr, H. 1998. Big is not best in Euroland. Banker Januarie 1998 148: 27 - 28. Mcluhan H.M., 1962. The Gutenberg Galaxy: the Making of Typographic Man. University of Toronto. Mintzberg, H. 1973. Strategy Making in Three Modes. California Management Review Spring 1973: 44 - 53. Pearce, J.A., & Robinson, R.B. 1994. Strategic Management - Formulation, Implementation and Control. (5e Uitgawe) Irwin, Boston Massachuchetts. Preller, F.T., 1993. 'n Ondersoek na strategiese algemene bestuurspraktyke binne bourekenaarspraktyke in Suidelike-Afrika. PhD proefskrif, Universiteit van die Oranje Vrystaat. Sharplin, A., 1985. Strategic Management. McGraw-Hill, New York. South Africa. Statistics South Africa. Statistical Release P0151. September 1996. Stellenbosch. Medium-Term Forecasting Associates. Report on Building Costs. September 1996. Stellenbosch. Medium-Term Forecasting Associates. Report on Building Costs. Second Quarter 2008. Thompson, A.A., & Strickland, A.J., 1992. Strategy Formulation and Implementation - Tasks of the General manager. (5e Uitgawe) Irwin, Homewood, Illinois. Ungson, G.R., & Wong, Y. 2008. Global Strategic Management. M E Sharpe, New York Van Schalkwyk, J.C., 1990. Eksterne omgewingsverkenning en die belangrikheid daarvan vir strategiese bestuur. DBA proefskrif, Universiteit van Pretoria. Warren, K. 2006. Competitive Strategy Dynamics. John Wiley & Sons, West Sussex. Wheelen, T.L., & Hunger, J.D., 1986. Strategic Management and Business Policy. (2e Uitgawe) Addison-Wesley Publishing Co., Reading, Massachusetts.

SACQSP2009-16

Towards a Future Green Built Environment in South Africa: Integrating the Green Building Concept throughout the Project Life Cycle 1

2

Gabriel, S , Othman, AAE Turner and Townsend (Pty) Ltd, Durban, South Africa,

1 E-mail : [email protected], Tel: 031 265 5710

2 School of Civil Engineering, Surveying & Construction, Faculty of Engineering, University of

2 KwaZulu-Natal, Durban, South Africa. E-mail : [email protected], Tel: 031 2602821

1

ABSTRACT Purpose of this paper This paper aims to integrate the concept of green building during the initial stages of the construction project life cycle as an approach for developing a sustainable built environment in South Africa. Methodology In order to achieve the abovementioned aim, two objectives have to be achieved. Firstly, literature review is used to review the concept of green building, the different stages of the construction process and the current situation of green buildings in South Africa as well as the project life cycle costing. Secondly, developing an innovative protocol called the Green Building Development Protocol (GBDP) to facilitate the integration of green building concept during the early stages of the project life cycle. Findings This research identified any areas where lack of knowledge was present and the perceptions about green buildings with in the South African context. In addition, it highlighted benefits and barriers that hinder the adoption of the green building concept in South Africa. Research Implications The research reviewed the concept of green building, the stages of the construction process and the present circumstances concerning green buildings in South Africa as well as the project life cycle costing. Furthermore, the research investigated the challenges of constructing green buildings in South Africa.

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Towards a Future Green Built Environment in South Africa: Integrating the Green Building Concept throughout the Project Life Cycle

Practical Implications Adopting the protocol developed by the authors will facilitate the future development of the green built environment in South Africa. Value This paper introduces the concept of green building and escalates the awareness to government, clients and construction professionals of the importance of adopting this concept in the construction industry. It provides a practical approach towards developing a sustainable built environment through the integration of the green building concept during the early stages of the project life cycle. Keywords: Green Built Environment, Green Building Concept, Project Life cycle, Construction Industry, Green Building Council of South African. 1 INTRODUCTION Although its contribution towards social and economic development is at a national and international level, the construction industry has a major impact on the environment. It is estimated that 3 billion tonnes of raw materials and 40% of the total flow into the global economy are used in manufacturing construction materials throughout the world (Roodman and Lenssen, 1995). The construction sector is responsible for 50% of the material resources taken from nature, 40% of energy consumption and 50% of total waste generated. In addition, buildings consume 40-50% of the world’s energy through their construction and ongoing operation. Green buildings compared to traditional buildings are able to reduce the consumption of energy to less than half, with similar reductions in potable water usage, runoff to sewer and solid waste (GBCSA, 2009). It is the right of current generations to use available resources to achieve their goals and meet their expectations, but without compromising the new generations from achieving their objectives as well. This necessitated the importance to produce sustainable buildings that achieve the objectives of their users, save the environment and prosper the economy. The green building concept has in numerous projects demonstrated that it can provide healthy, comfortable working and living environments for current and future occupants (Zhou and Lowe, 2003). Because of the importance of developing a green built environment in South Africa, this paper aims to integrate the concept of Green Building throughout the project life cycle.

Towards a future Green Built Environment in South Africa: Integrating the Green Building Concept throughout the Project Life Cycle

2

216

RESEARCH METHODOLOGY AND OBJECTIVES

The researchers chose to develop a research strategy that could gather data sufficiently rich to integrate the Green Buildings Concept throughout the project life cycle. A research methodology was designed to achieve two objectives. •

Reviewing the concept of green building, the different stages of the construction process and the current situation of green buildings in South Africa as well as the project life cycle costing. This was accomplished through literature review.

•

Developing an innovative protocol called the Green Building Development Protocol (GBDP) to facilitate the integration of green building concept during the early stages of the project life cycle. This was achieved by incorporating the stages of construction and the Plan-Do-Study-Act Cycle.

3.

LITERATURE REVIEW

3.1

Sustainability and the Green Building Concept

Because sustainability encompasses economic, social and environmental principles, it is a multifaceted concept which is associated within the context of the environmental movement (Nalewaik and Venters, 2009; Othman, 2009; Abdellatif and Othman, 2006; Zhou and Lowe, 2003; Hill and Bowen, 1997). Kashyap, Khalfan and Zainul-Abidin (2003) further defined sustainability in terms of development where the present needs of people are met while simultaneously shielding the resources without compromising the future generation requirements to meet their own needs. Kibert (1994 as cited by Miyatake, 1996) further defined sustainability to incorporate the following six principles: • Minimisation of resource consumption; • Maximisation of resource reuse; • Use renewable and recyclable resources; • Protection of the natural environment • Creation of a healthy and non-toxic environment; and • The pursuit of quality in creating the built environment 3.1.1 Sustainable Architecture Sustainable architecture is described as the application of sustainability concepts and techniques in architecture (Wikipedia, 2007). Its aim is to reduce the negative environmental impacts of the constructed facilities throughout the project life cycle. It utilises the talent and technical knowledge

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of the architect to design and build in harmony with the environment. The challenge is about finding the balance between environmental considerations, society requirements and economic constraints (Hui, 2002). The essential aim of sustainable design is to produce places, products and services in a way that reduces the use of non-renewable resources, minimises environmental impact and relates people with the natural environment (Wikipedia, 2007). 3.1.2 Sustainable construction In 1998, Agenda 21 on Sustainable Construction was created at the World Building Congress in Gävle, Sweden as a global agenda for sustainable construction by the International Council for Research and Innovation in Buildings and Construction (CIB). In this agenda, the links between the global concept of sustainable development and the construction sector was formally defined and thus a conceptual framework was developed. Agenda 21 served to further identify concepts of sustainable construction in terms of hard issues such as building components, materials energy related design concepts and construction technologies as well soft issues like culture, economic, social and management issues (Kaatz, Root, Bowen and Hill, 2006; Zhou and Lowe; 2003; Du Plessis, 1999). Using this mindset, it has been stated that sustainable construction is part of sustainable development, as sustainable construction involves environmental, economic and social issues. In 2005 it was estimated that the construction sector was approximately worth $3.2 trillion and considered a major global industry. It also contributes an estimated 40% of all resource consumption and produces 40% of all waste which includes greenhouse gas emissions. These statistics illustrate that it is essential that the built environment consider its overall global impact on society (Kashyap et al, 2003, RICS, 2009), Abdellatif and Othman, 2006). Hill and Bowen (1997) investigated the principles of sustainable construction and divided it into four pillars of sustainability. These pillars; social, economic, biophysical and technical, suggest one way of approaching the application of sustainability in the construction industry. They stressed that while not all the principles may be immediate, implementation of the all principles would require trade-offs and a consensus should be reached in how they can most practically and efficiently applied. The principles of sustainable construction explain each pillar of sustainability and how it contributes towards promoting a sustainable environment. The first pillar, social sustainability will improve the quality of human life, including poverty, the second pillar, economic sustainability will ensure financial affordability for intended beneficiaries, the third pillar, biophysical sustainability will reduce the use of the four generic resources used in construction, namely energy, water, materials and land and the fourth pillar, technical sustainability will construct durable, reliable and


218

functional structures. The above-mentioned objectives are a few of many which will in the long run achieve sustainable construction. However, certain steps, such as undertaking prior assessments of the proposed activities, the utilisation of a life cycle framework and a systems approach would have to be carried out in each project. Achieving sustainability in the construction industry could be accomplished through building and facilitating the management of a healthy built environment by implementing ecological principles and promoting efficiency, thereby working towards a “win-win” situation. Contractors also stand to gain if applying the green building concept as there would be an improved opportunity to tender, less money wasted on fines, less money on restoring environmental damage, less money wasted lost through wasted resources and the improved environmental profile (Kaatz, et al, 2006; Kashyap et al, 2003). In order to apply sustainability in the construction industry there has to be a shift in current trends and practices by “using resource-efficient, ecologically based principles”. This should be applied prior to construction and continue after construction has been completed (Kaatz et al, 2006; Hill and Bowen, 1997). 3.1.3 Green Building In developing a green building assessment tool for developing countries, Ali and Al Nsairat (2009) stated that green buildings have now become a major component of sustainable development by bearing the responsibility of balancing long term economic, environmental and social health. In addition, the researchers stated that the green building concept offers the benefit to create sustainable developments based on eco-friendly environments thereby reducing the negative influences on the environment as well as the on the occupants. Kats (2003) used the terms sustainable and green buildings interchangeably and states that these buildings differ from buildings that are built according to regulations as they utilise fundamental resources like energy, water, materials and land more efficiently. The green building concept further suggests that it can contribute towards lower overhead costs, greater employee productivity, less absenteeism, and stronger employee attraction and retention (Lockwood, 2006). However, Srinivas (2009) suggested that a green building will appear to be very similar to an ordinary building but takes cognisance of certain factors such as: • Minimal disturbance to landscapes and site condition • Use of recycled and eco-friendly building materials • Use of non-toxic and recycled/recyclable materials • Efficient use of water and water recycling • Use of renewable energy • Indoor air quality for human safety and comfort • Effective controls and building management systems

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It was found that usually, it was necessary to explain the different features of green buildings as they may appear to be very similar to conventional buildings. However, the main principle behind green buildings is to provide indoor air comfort while simultaneously conserving the natural resources that go into the building during construction and operation (Srinivas, 2009; Kats, 2003; Cole, 2000). 3.1.4 Perceptions of green buildings At the proceedings of the International Conference on Energy and Environment in March 2009, Srinivas (2009) explored some of the more common perceptions of green buildings. Many were under the impression that green buildings were costlier, they had to be air-conditioned buildings and that they take longer to build. These perceptions were realistically discussed and when investigating whether the green building concept is costlier than traditionally built buildings, it was found that there has been substantial research and analysis in this regard. Moreover, the cost could be seen as slightly higher initially but in order to fully investigate this, there needs to be a baseline cost for all comparisons. The other consideration is to utilise the life cycle costs to determine whether a “green” building costs more than traditional buildings. 3.1.5 The benefits and challenges of building green Building green provides tangible and intangible benefits to society (Srinivas, 2009; Kats, 2003). Yates (2001 as cited by Zhou and Lowe, 2003) stated the business benefits of green buildings and found these were diverse and potentially very significant. Such benefits were: • Capital cost savings • Reduced running costs • Increased investment returns • Increased productivity, staff recruitment and retention • Increased efficient resource use • Major image/marketing spin-off. Heerwagen (2000) investigated the organisational success and occupant productivity of green buildings. It was found that green buildings were relevant to business interests across the border from the resale value of property to the enhanced quality of individual workspaces, its influence spreading to workforce attraction, retention, quality of work life and output and customer relations and a major cost reduction benefits. Cole (2000) stated that although the research community has provided society with considerable knowledge on green buildings, there are still uncharted areas that will have to be explored to ensure the value and economic viability of building green is communicated to the built environment. Some of these challenges of building green can be overcome by:


• •

•

•

•

3.2

220

Good, robust information – consistent information needs to be communicated to the built environment to avoid any misconceptions and inaccurate information relating to building green. More than technological issues – Heerwagen (2000) suggests that society should focus on the behavioural concerns and the technical community should take cognisance of the social science research into green building. System thinking and analysis – because building green involves a certain way of thinking and approaching objectives, there needs to be a certain degree of integration required by professionals in the built environment Understanding the process – to make the concept of green building a successful reality, the process of how to achieve a “green” building should be well understood. This can be done by well documented case studies in which the technical characteristics as well as the process, types of conflict and resolutions involved in building and eco-friendly building. Good communication – this is critical as there are many key players involved in the design and construction of a green building. Each contributor should communicate their interpretations as there will be a difference in views between who pays and who derives value form green building. Green Buildings in South Africa

3.2.1 The Green Building Council of South Africa (GBCSA) The Green Building Council of South Africa (GBCSA) was established in 2007 and its main aim is to promote, encourage and facilitate green building in the South African property industry through market-based solutions. The GBCSA is an independent, non-profit organisation that is led by leaders from all sectors of the commercial property industry. The GBCSA will ultimately ensure the transformation of the South African industry into an industry with buildings that are designed, built and operated in an environmentally sustainable ways, allowing South Africans to work and live in healthy, efficient and productive environments. The objectives of the GBCSA are to: • Promote the practice of green building in the commercial property industry. • Facilitate the implementation of green building practices by acting as a resource centre. • Enable the objective measurement of green building practices by developing and operating a green building rating system. • Improve the knowledge and skills base of green building in the industry by enabling and offering training and education.

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In addition, the GBCSA addresses issues such as excess energy consumption, related carbon dioxide emissions from burning carbon fuel, pollution of air, water, land, the depletion of natural resources, the disposal of waste, electricity shortages and water shortages, the lack of solid waste disposal sites and transportation issues. It is the contention of the GBCSA that by promoting green building, the GBCSA will positively impact on resource consumption and help combat global warming (GBCSA, 2009). 4. THE GREEN BUILDING DEVELOPMENT PROTOCOL (GBDP) 4.1 Definition and Importance The Green Building Development Protocol (hereinafter referred as the GBDP or the Protocol) is a tool developed by the authors in an attempt to integrate the concept of green building throughout the project life cycle. The importance of the protocol stems from the need to improve the built environment in South Africa through delivering facilities that save the environment, meet the community needs and prosper the economy. Maximising the benefits of these concepts necessitate the need to integrate the Green Building concept throughout the project life cycle. 4.2. The Development of the GBDP The early stages of the construction process involved investigating the feasibility, pre-construction period and construction process. For this purpose the Architect’s Plan of Work, published by the Royal Institute of British Architects (RIBA, 2000) was utilised to build the protocol, refer to table (1). In addition, as a successful business improvement tool, the PlanDo-Study-Act Cycle was employed to integrate the Green Building Concept within the different stages of the construction process. Moreover, the GBDP was further developed by applying project life cycle costing to address cost, quality and time issues.

Feasibility

Table (1) Stages of the Construction Process

A

Pre constr

B

C

Appraisal Identification of client's requirements and possible constraints on development. Preparation of design studies and contribution to other technical studies to enable the client decide whether to proceed and select the probable procurement methods Strategic Briefing Preparation of strategic brief by or on behalf of the client confirming key requirements and constraints. Identification and contribution of procedures, organisational structure and range of consultants and others to be engaged for the project. Outline Proposal Commence development of strategic brief into full project brief Preparation of outline proposals and contribution to estimate of cost Review of procurement route


D

E

F

G

Construction Period

H J

K

L

222

Detailed Proposal Complete development of the project brief Preparation of detailed proposals Application for full development control approval Final Proposal Preparation of final proposals for the project sufficient for co-ordination of all components and elements of the project Production Information Preparation of production information in sufficient detail to enable a tender to be obtained Preparation of further production information required under the building contract Tender Documentation Preparation and collection of tender documentation in sufficient detail to enable a tender to be obtained for the construction of the project Tender Action Assist with pre-tender enquires and appraisal of tenders Mobilisation Letting the building contract Issuing or production information to the contractor Arranging site hand-over to contractor Construction to Practical Competition Administrating of the building contract up to and including practical completion Provision to the contractor of further information as and when reasonably required After Practical Competition Administrating of the building contract after practical completion Make final inspections and settling the final account

4.2.1 The Project Life Cycle Costing Life Cycle Costing (LCC) is defined as a combination of the capital cost of the project and all relevant future costs in terms of explicit costs such as initial investment costs, subsequent maintenance and operations costs and salvage and resale value which is represented as a single economic figure. Kibert (1994) as cited by Vanegas, DuBose and Pearce (1996) state that LCC adds minimisation of resource depletion and environmental degradation and a healthy built environment to traditional focuses on cost. It further provides a comparison for initial investments in contrast to future costs over a given time in addition to comparing the cost of substitute building components or systems over their economic or technical life (Kelly and Hunter, 2009; Gluch and Baumann, 2004; Cole and Sterner, 2000; Kishk and Al-Hajj, 1999). Because green designs have significant operating benefits such as low energy and water operation costs and lower maintenance costs, LCC has been more widely used in the context of green buildings (Zhou and

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Lowe, 2003; Cole and Sterner, 2000). Vanegas et al (1996) suggest that sustainable designers will approach each project using the LCC of the entire facility in mind and not just the initial capital investment. Ortiz, Castells and Sonnemann (2009) reviewed the recent developments based on Life Cycle Assessment (LCA) from 2000 to 2007 with regard to sustainable construction and found that there have been a large number of LCA studies that deal with a specific part of the building life cycle while few deal with the whole life span. They therefore suggest that sustainability indicators in design, construction, operations and dismantling need to be developed and used in order to target environmental and energy considerations around the world. 4.3 Application of the Green Building Development Protocol Since it has been proved to be a successful improvement tool, the GBDP is based on the Plan-Do-Study-Act Cycle. The protocol consists of 4 processes: • The planning process • The integrating process • The evaluating process • The improving process These four stages will be applied throughout the project life cycle. 4.3.1 Application of the protocol during the feasibility stage Through application of the developed protocol, project clients are introduced to the Green building concept and their benefits. Educating clients and gaining their support are essential for integrating the green building concept. This will be facilitated by providing clients with successful examples and best practise. In addition, benefits of green building concept towards overcoming project constraints (i.e. cost, time and quality issues) have to be explicitly explained to the client. For instance, the green building concept when implemented in design will help reducing the cost of operation and maintenance through having durable and easy to maintain products. Successful integration of the green building concept necessitates that the person responsible for the feasibility stage to perceive these concepts and be aware of the technical requirements of its implementation. When these concepts are integrated in the project brief, it is essential to evaluate its integration and the possibility of adding a real value to the project. Accordingly, either the project principal / architect proceed with later stages or corrective actions required to improve the integration process have to be taken. It is of prime importance that design firms and construction organisations adopt the green building concept as a strategic objective and their procedures and organisational structure support these concepts (i.e.


224

specifying suppliers who adhere to the Green Building Concept), figure (1) shows the GBDP at the feasibility stage.

Figure (1) The Green Building Development Protocol at the Feasibility Stage

4.3.2 Application of the protocol during the Pre-Construction Phase During the pre-construction phase a number of activities have to be carried out. It begins with the outline proposal and ends with tender action. These stages are characterised with carrying out the technical details of the projects. Once the client is persuaded with the importance of the Green Building Concept and agrees to adopt them in his/her project, the architect with the support of the design team has to select the technical items that have to be integrated in the proposed project. The aim of integrating these concepts is to produce facilities and services that reduces the use of nonrenewable resources, minimises environmental impact, and relates people with the natural environment. The life cycle costing has to be considered in order to minimise the cost of operation and maintenance of the constructed project. The criteria for selection of contractors have to include the contractor’s interest and expertise in developing green buildings. This will help achieving the objectives of developing sustainable projects. The inclusion of related stakeholders such as contractors and material suppliers will help the designer in enhancing the project design through facilitating the constructability of the design and specifying materials that are cost effective, efficient, easy to maintain, recyclable and non-harmful to the environment. When the design document is completed and before the project is tendered it is vital to evaluate the integration of Green Buildings Concepts. If the integration process is expected to deliver added value to the project, then the project team can proceed with tendering and selecting the appropriate contractors. If not, the architect with the design and related parties have to

225


take corrective actions towards improving the design process and the integration of the Green Building Concept, figure (2) shows the GBDP at the Pre-Construction Phase.

Figure (2) The Green Building Development Protocol at the Pre-Construction Phase

4.3.3 Application of the protocol during the Construction Phase During the construction phase, the project has to be constructed and delivered to its client and end-users as well as closing the contracts that have been involved in the development of the project. Within this stage the application of the protocol will be taking through all actions that protect the project and the team members involved in the construction process through planning and adhering to the health and safety procedures. This will help reducing site accidents and its implications to the project, affected person and the community at large. Post occupancy evaluation of the building performance will enable the design and construction team to enhance the performance of future projects, figure (3) shows the GBDP at the PreConstruction Phase.


226

Product Integrating the Green Building Concept

Figure (3) The Green Building Development Protocol at the Construction Phase

5. CONCLUSIONS AND RECOMMENDATIONS The research work presented in this paper focused on integrating the Green Building Concept throughout the project life cycle. It reviewed the concept of green building, the different stages of the construction process and the current situation of green buildings in South Africa as well as the project life cycle costing. In addition, the research developed an innovative protocol aimed to facilitate the integration of green building concept during the different stages of the project life cycle. The protocol consists of four processes of namely, planning, integrating, evaluating and improving. During each stage of the construction process the protocol is designed to provide the project participants with guidelines for integrating the Green Building Concept towards developing sustainable built environment. References Abdellatif, M.A. and Othman, A.A.E., (2006). Improving the sustainability of low-income housing projects: The case of residential buildings in Musaffah commercial city, Abu Dhabi. Emirates Journal for Engineering Research, Vol. 11, pp. 47-58. Ali, H.H. and Al Nsairat, S.F., (2009). Developing a green building assessment tool for developing countries-case of Jordan, Journal of Building and Environment, Vol. 44, pp.1053-1064. CIDB, (2009), Construction Industry Development Board (CIDB). Construction Industry Development Board, [Online]. Available: http://www.cidb.org.za/default.aspx [05 June 2009] Cole, R.J. and Sterner, E., (2000). Reconciling theory and practice of lifecycle costing. Building Research and Information, Vol. 28, pp.368-375.

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Cole, R.J., (2000). Cost and value in building green, Building Research and Information, Vol. 28, pp 304-309. Du Plessis, C., (1999). Sustainable development demands dialogue between developed and developing worlds. Building Research and Information, Vol. 27, pp. 379-390. GBCSA, (2009), Green Building Council South Africa (GBCSA). Green Building Council South Africa [Online], Available: http://www.gbcsa.org.za [21 July 2009] Gluch, P. and Baumann, H. (2004). The life cycle costing (LCC) approach: A conceptual discussion of its usefulness for environmental decisionmaking. Building and Environment, Vol. 39, pp. 571-580. Heerwagen, J. (2000). Green buildings, organisational success and occupant productivity. Building Research and Information, Vol. 28, pp. 353-367. Hill, R.C. and Bowen, P.A., (1997). Sustainable Construction: principles and framework for attainment, Journal of Construction Management and Economics, Vol. 15, pp. 223-239. Hui, S. C. M. (2002). Sustainable Architecture. [Online] Available from: http://www.arch.hku.hk/research/BEER/sustain.htm#1.3. Kaatz, E., Root, D.S., Bowen, P.A. and Hill, R.C., (2006). Advancing key outcomes of sustainability building assessment, Journal of Building Research and Information, Vol. 4, pp. 308-320. Kashyap, M., Khalfan, M. and Zainul-Abidin, N., (2003). A proposal for achieving sustainability in construction projects through concurrent engineering. . In proceedings of the RICS Foundation Construction and Building Research Conference, Wolverhampton, edited by Proverbs, D., (University of Wolverhampton Press), pp. 127-138. Kats, G.H., 2003, Green building costs and financial benefits, [Online], Available:www.cap-e.com/ewebeditpro/items/059F3481.pdf, [26 July 2009] Kelly, J. and Hunter, K., (2009). Life cycle costing of sustainable design. RICS Research Reports, pp.1-54. Kishk, M. and Al-Hajj, A., (1999). An integrated framework for life cycle costing in buildings. In proceedings of the RICS Foundation Construction and Building Research Conference, Vol. 2, pp. 91-101. Lockwood, C., (2006). Building the green way, Harvard Business Review, June, pp. 1-8. Miyatake, Y., (1996). Technology development and sustainable construction. Journal of Management in Engineering, Vol. 12, pp. 23-27. Nalewaik, A. and Venters, V., (2009). Cost benefits of building green. Journal of Cost Engineering, Vol. 51, pp. 28-34. Ortiz, O., Castells, F. and Sonnemann, G. (2009). Sustainability in the construction industry: A review on recent developments based on LCA. Construction and Building Materials, Vol. 23, pp. 28-39.


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Othman, A.A.E., (2009). Corporate social responsibility of architectural design firms towards a sustainable built environment in South Africa. Architectural Engineering and Design Management, Vol. 5, pp. 36-45. RICS, (2009). Royal Charted Institute of Charted Surveyors (RICS), Royal Charted Institute of Charted Surveyors [Online], Available: http://www.rics.org.uk [21 July 2009] Roodman, D.M. and Lenssen, N., 1995, A Building Revolution: How Ecology Health Concerns are Transforming Construction, Paper 124, Washington, DC, World Watch Institute. Srinivas, S., (2009). Green buildings-benefits and impacts. In proceedings of the International Conference on Energy and Environment, pp. 790795. Vanegas, J.A., DuBose, J.R. and Pearce, A.R., (1996). Sustainable technologies for the building construction industry. In proceedings of Symposium on Design fro the Global Environment, Atlanta GA, pp. 1-16 Wikipedia. (2007) the Free Encyclopaedia. [Online] Available from: http://en.wikipedia.org. Zhou, L. and Lowe, D.J., (2003). Economic challenges of sustainable construction. In proceedings of the RICS Foundation Construction and Building Research Conference, Wolverhampton, edited by Proverbs, D., (University of Wolverhampton Press), pp. 113-126.

SACQSP2009-17

The Evolution of the Quantity

Surveying Profession

Crafford, G.J.1 and Slabber, J.M.2 1

2

Department of Building and Quantity Surveying, Nelson Mandela Metropolitan University, PO Box 77000, Port Elizabeth, 6013, South Africa. Tel: (041) 504 2153 Fax: (041) 504 9935, E-mail: [email protected] Department of Building and Quantity Surveying, Nelson Mandela Metropolitan University, PO Box 77000, Port Elizabeth, 6013, South Africa. Tel: (041) 504 3310 Fax: (041) 504 9935, E-mail: [email protected]

ABSTRACT Purpose - Traditionally, quantity surveyors have fulfilled the function of financial and contract controller. However, in recent years the quantity surveying profession has endeavoured to broaden the role of quantity surveyors to include inter alia, project management and facilities management. With no real sign of the current economic downturn easing for some time to come, it is necessary to establish which competencies are important for current and future success. Design/methodology/approach - The paper reports on an exploratory study in which quantity surveyors rated thirty-three competencies possessed by South African quantity surveyors in terms of “Importance”, “Evidence” and “Future Importance”. Findings - Based upon the predominating competencies in terms of importance and future importance, it can be concluded that quantity surveyors are perceived to fulfil their traditional role and will continue to do so in the future. Research limitations – The data was collected during an Association of South African Quantity Surveyors (ASAQS) Continuous Professional Development (CPD) session hosted by the NMMU. In order to achieve a more representative outcome all registered quantity surveyors in South Africa should be surveyed. Originality/value – Although the findings indicate that the traditional quantity surveying competencies should remain in place in order to achieve success currently and in the future it is important to note that tertiary institutions, the South African Council of the South African Quantity

230

The Evolution of the Quantity Surveying Profession

Surveying Profession (SACQSP) and the ASAQS should address the competencies identified in the gap analysis. Keywords: Competencies, Quantity Surveyors, Sustainable Services 1 INTRODUCTION Seeley (1997) states that the quantity surveyor is essentially a cost expert whose prime task is to ensure that a construction project is kept within the agreed budget and that the employer obtains value for money. Traditionally, quantity surveyors have fulfilled the function of financial and contract controller of projects and therefore proficiency in the related competencies is important. However, in recent years the quantity surveying profession has endeavoured to broaden the role of quantity surveyors to include inter alia, project management and facilities management (Crafford and Smallwood, 2007). Brümmer (2004) shows that trends in the industry are continuously changing and innovative procurement systems are part of the reality of future services that the quantity surveyor can provide. Verster (2007) identifies the role that the quantity surveyor could play in respect of the following areas: • Health and Safety – An increased awareness of the creation of acceptable working conditions for people has resulted in the need for the effective management of health and safety all over the world. In so far as construction projects are concerned, the quantity surveyor or cost engineer can play a pivotal role in respect of budgeting for health and safety as well as managing costs pertaining to risks, insurances, premiums and alternative selection; • Environment – With an increased awareness of the environmental impact of projects and a move towards sustainability in construction, the quantity surveyor should be able to assist in budgeting for, analysing the risk associated with, considering alternative selections pertaining to, cost planning specifically focussed on and controlling of matters pertaining to the environment; • Financial – Although, traditionally, the professions were more than adequately qualified to take on board the total financial management of construction projects, additional attention should be given to areas of cash flow management, estimation, cost planning and control, price analysis, risk analysis, reporting and corrective actions; and • Claims – Due to the cost and time implications associated with dispute resolution, arbitration and litigation, the quantity surveyor should have the ability to be able to identify and manage claims as effectively (both from a time and cost point of view) as possible. Due to the inherent involvement of the quantity surveyor with these areas, it can be targeted as a focus area of the professions in respect of negotiations, the


231

adjudication process, the convincing of parties and the assessing of claims in a fair and reasonable manner. Grant (2004) suggests that related fields may hold the key to future sustainability and that future strategies for quantity surveying and project management services should include provision for: • Goals and objectives aimed at related fields (facilities management etc.) that may afford the quantity surveyor with the opportunity of establishing a continuous income stream that will enable the professional to become more independent and less dependent on the rise and fall of traditional income areas. Diversification may therefore form part of future service development strategies; • Strengthening of strategic assets such as education, training and experience to ensure that the role of the professions remains viable, effective and dynamic; • Human resource development to ensure that maximum flexibility exists for staff members to function within a diverse business model; and • Development of a sustainable competitive advantage, the basis of which lies in the unique architecture, the knowledge base and market positions of a firm. A competitive advantage could only be ensured if the services provided add value to the market and hence address market needs. Verster (2004) indicates that future developments and future actions within the industry are unpredictable but confirms that the profession can predict that certain current developments within the construction industry will have an influence on the future. Verster (2004) reiterates that professionals should have an understanding of these developments and should proactively participate in developing competencies to be able to adapt to future service requirements and hence the needs within industry. Based on current and anticipated future developments within the industry, as highlighted above, the opportunity potentially exist for the profession to focus on complimenting core technical competencies with management competencies that should empower the profession to potentially diversify into the delivery of various management orientated services (e.g. risk management, facilities management, etc) that could ultimately improve sustainability in service delivery. With no real sign of the current economic downturn easing for some time to come, it is becoming even more necessary to establish which competencies are important to the quantity surveying profession for current and future success and therefore which competencies need attention in the short and long term. The focus of this paper is: • To identify competencies which are required to be further developed to meet the profession’s current service requirements;

232


• To highlight the competencies which current practicing quantity surveyors perceive as essential to fulfil the profession’s current roles within the South African construction industry, and • To indentify competencies to be developed within the profession to ensure the delivery of quantity surveying services (both core services and complimentary, but sustainable services) that will meet the future needs of the construction industry. 2 COMPETENCY DEFINITIONS Boyatzis (1982) defines competency broadly as an underlying characteristic of a person. It could be a motive, trait, skill, aspect of one’s self-image or social role, or a body of knowledge, which he or she uses. Thus competence is job specific and, at the same time anthropocentric, as it relates to individual skills that are inherent or taught and transferable. The value aspect lies in combining tasks with skills into one coherent system of managerial effectiveness. Dubois (1993) defines competence as "the employee's capacity to meet, or exceed a job's requirements by producing the job outputs at an expected level of quality within the constraints of the organization's internal and external environments". Zemke (1982) interviewed several experts to determine precisely what constitutes a competency. He concluded that there was no unified agreement about what makes a competency and what does not: “Competency, competencies, competency models and competency-based training are Humpty Dumpty words meaning only what the definer wants them to mean. The problem comes not from malice, stupidity or marketing variance but instead from some basic procedural and philosophical differences among those racing to define and develop the concept and to set the model for the way the rest of us will use competencies in our dayto-day training efforts.” Woodruffe (1992) defines a competency as the set of behavioural patterns that the incumbent needs to bring to a position in order to perform its tasks and functions with competence. Of particular importance in this definition is the statement that competencies are concerned with people’s behaviour. It is a discrete dimension of behaviour. Furthermore it is a dimension of behaviour that is relevant to performance in the job. This job-relevance is true even if for some purposes the competency list might extend nationally to all jobs. Woodruffe (1992) also states that competencies are behavioural repertoires that some people carry out better than others. To summarise, a competency is a dimension of overt, manifest behaviour that allows a person to perform competently. Behind it must be both the skills, ability and desire to behave in that competent way. For example, the person competent at selling will need a competency that includes listening. In turn, that includes knowing how to listen and


233

choosing to listen. Put more generally, people will only produce competent action in a situation if they know how to and if they value the consequences of the expected outcomes on the action (Krampen, 1988). 3 QUANTITY SURVEYING COMPETENCIES It is essential that a profession is governed by a professional body to maintain the competence and control the standards of conduct of the profession (Bennion, 1969). Therefore, the title of chartered member is taken as recognition of professional competence. The competence of professionally qualified quantity surveyors is well established and regulated by professional bodies like the SACQSP or the Royal Institution of Chartered Surveyors (RICS). Although many practitioners claim to be quantity surveyors, the title of chartered quantity surveyor is only awarded to those who have passed the professional competence test set by the Institutions. Clients therefore have some assurance of the standard of the intangible service they are purchasing under this system (Fong and Choi, 2009). The RICS assessment of professional competence (APC) is primarily competency-based. It requires candidates to demonstrate that they have the skills and abilities needed to perform specific tasks or functions. These are based on attitudes and behaviours as well as skills and knowledge. The specific competencies candidates must achieve depend on the APC pathway being taken (RICS, 2009). The APC aims to assess that a candidate is competent to carry out the work of a qualified chartered surveyor. To be competent is to have the skill or ability to perform a task or function according to the RICS (2009). The RICS competencies are not just a list of tasks or functions; they are also based upon attitudes and behaviours (RICS, 2009). Each competency is defined at three levels of attainment. A candidate must reach the required level in a logical progression and in successive stages. • • •

Level 1 knowledge and understanding; Level 2 application of knowledge and understanding, and Level 3 reasoned advice and depth of technical knowledge.

The competencies are in three distinct categories (RICS, 2009): • • •

Mandatory competencies – personal, interpersonal, professional practice and business skills common to all pathways and compulsory for all candidates; Core competencies – primary skills of your chosen APC pathway, and Optional competencies – selected as additional skill requirements for your APC pathway from a list of competencies relevant to that pathway. In most cases there is an element of choice.

6

3.1


Mandatory competencies

A candidate must achieve the following minimum levels for each

competency.

To level 1:

• • • • • •

Accounting principles and procedures; Business planning; Conflict avoidance, management and dispute resolution procedures; Data management; Sustainability, and Teamworking.

To level 2: • • •

Client care; Communication and negotiation, and Health and safety.

To level 3: • • •

Conduct rules; Ethics, and Professional practice.

3.2 Core competencies A candidate must achieve a minimum level 3 for each of the following

competencies:

Level 3:

• • • • • •

Commercial management of construction or design economics and cost planning; Contract practice; Construction technology and environmental services; Procurement and tendering; Project financial control and reporting, and Quantification and costing of construction works.

3.3 Optional competencies Two competencies at Level 2 from the list below. • • • •

Capital allowances; Commercial management of construction or design economics and cost planning (whichever is not selected as a core competency); Contract administration; Corporate recovery and insolvency;


• • • • • •

235

Due diligence; Insurance Programming and planning Project evaluation Risk management Conflict avoidance, management and dispute resolution procedures (or Sustainability

3 RESEARCH 3.1 Methodology The descriptive survey method was employed to process the data obtained through observation. This type of research involves either identifying the characteristics of an observed phenomenon or exploring possible correlations among two or more phenomena. In every case, descriptive research examines a situation as it is. It does not involve changing or modifying the situation under investigation, nor does it intend to determine cause-and-effect relationships (Leedy and Ormond, 2005). Thus, it observes existing conditions artificially, and is limited to ascertaining and describing the characteristics of the variables of interest in a given situation (Cropley and Harris, 2004). The data for this exploratory survey was collected during an ASAQS Continuous Professional Development (CPD) lecture hosted by the NMMU. Eighteen responses were obtained from the practitioners that attended the lecture which is not a representative sample of the quantity surveying profession in South Africa. Further research which includes a full survey of the population needs to be done in order to obtain conclusive results. 3.2 Questionnaire design Nkado (1999) identified 23 competencies which stemmed from the basic and core competencies identified by the RICS (1998), six of the ten optional competencies and six competencies identified as uniquely relevant in the South African context through an exploratory survey. Crafford (2001, 2007) subsequently added 10 competencies during two research projects. The full list of 33 competencies (Table 1) was used in this exploratory research. The questionnaire consisted of two sections. Section one consisted of demographic questions, which were later used to test if any of the variables had a significant influence on the rating of the competencies. In section two, the competencies were listed in alphabetical order with three accompanying scales, namely level of importance, evidence and future importance of competencies. The questionnaire was designed to include all the competencies which was indentified by Crafford (2007). The method of presenting all the competencies and then asking the

236


respondents to rate the competencies according to current importance, evidence and future importance on the Likert scale was adopted from Nkado (1999). The three scales were: • • •

The level of importance of a competency for a career in quantity surveying at present, from 1 (not important) to 5 (very important); How evident that competency is the South African quantity surveying profession, from 1 (poor) to 5 (excellent), and The level of future importance of a competency for a career in quantity surveying in the year 2015, from 1 (not important) to 5 (very important);

3.3 Current importance, evidence and future importance of competencies After calculating the means of all the variables the data was converted to percentage ratings. Table 1 presents the importance, evidence and future importance ratings of the 33 competencies. The top five competencies in terms of current “Importance” are Measurement; Cost control; Professional practice; Plan reading, and Estimating. The top five competencies in terms of “Evidence” are Cost control; Measurement; Construction contract practice; Computer literacy and Estimating. The top five competencies in terms of “Future Importance” are Professional practice; Advance financial management; Cost control; Construction contract practice and Measurement. The findings above do not appear to indicate a major shift in the traditional role of the quantity surveyor both immediately and in the future and supports the Male’s (1990) argument that the principal competencies of measurement and financial and contractual control of construction projects underpin the quantity surveying profession. It is however alarming to note that none of the “new” management orientated competencies which should complement the technical competencies feature in the top ten of the Importance and Future importance ratings.


237

Table 1 Importance, evidence and future importance of quantity surveying competencies

Competencies Measurement (Quantities) Cost control Professional practice Plan reading Estimating Computer literacy and information technology Construction contract practice Procurement Valuation Economics of construction Time management Advanced financial management Value management Planning and organising skills Construction technology and environmental services Structural knowledge Personal and interpersonal skills Marketing Project management Leadership and general management skills Coordinating Skills in managing a business unit Risk management Skills to work with emerging contractors Quality management / control Arbitration and other dispute resolution procedures Development appraisal Law Property investment funding Facilities management Management of joint quantity surveying appointment Macro-economic perspectives Research methodologies and techniques

Current importanc e%

Evidence %

Future importanc e%

99 96 95 93 92 90 89 89 89 88 85 84 83 83

78 78 73 75 75 75 77 65 75 67 62 65 56 63

92 93 97 88 90 90 92 91 89 88 87 95 85 88

Ranks: Current, Evidence, Future 1,2,4 2,1,3 3,8,1 4,5,10 5,5,7 6,4,7 7,3,4 8,10,6 9,7,9 10,9,10 11,16,14 12,13,2 13,22,15 14,15,10

83

65

83

15,13,19

83 80 77 77 77 76 74 74 74 74

65 65 53 60 56 62 60 49 51 55

78 80 83 87 82 78 85 84 78 78

16,10,25 17,10,22 18,26,19 19,18,13 20,22,21 21,17,23 22,18,15 23,30,18 24,29,25 25,25,25

73

55

85

26,24,17

69 69 68 68

57 53 49 48

78 75 76 74

27,21,23 28,27,30 29,30,28 30,32,31

66

53

69

31,27,32

62 59

58 44

76 62

32,20,28 33,33,33

238

3.4


Gap analysis

The perceived gaps (Table 2, Page 12) between the “Evidence” and “Importance” ratings for each competency could serve as the short term goals (i.e. competencies that needs immediate attention) whereas the long term goals (i.e. competencies that needs attention in the long run) could be represented by comparing the “Evidence” and “Future importance” ratings of each competency. The top 5 competencies that need attention in the short term are Value management; Risk management; Marketing; Time management and Skills to work with emerging contractors. The top 5 competencies that need attention in the long term are Risk management; Advanced financial management; Marketing; Arbitration and other dispute resolution procedures, and Value management. In general most of the competencies that need attention in the long and short run are management related competencies. However, none of these competencies feature in the top 10 of the importance or future importance rating as indicated in table 1. It could therefore be concluded that although there are large gaps in the management related competencies it is not regarded as important for future success in quantity surveying. 4 CONCLUSIONS Based upon the predominating competencies in terms of importance and future importance, it can be concluded that quantity surveyors are perceived to fulfil their traditional role and will continue to do so in the future. However, the question of how sustainable this route is needs to be asked. In the present uncertain economic times it is of utmost importance to diversify your knowledge areas in order to create additional opportunities. It is therefore extremely disturbing to note that the “new” managerial competencies have shown the largest gaps in the “ImportanceEvidence” and “Future Importance-Evidence” analysis. The above mentioned findings also serve as an explanation as to why so many quantity surveying companies are struggling during the current recession. Core technical competencies might not be enough to carry a company through the tough times, which is why it is of critical importance to compliment the technical competencies with the “new” managerial competencies identified by various authors. The above mentioned conclusion is reinforced by Grant (2004) who states that diversification may form part of future service development strategies in order to be less dependent on the rise and fall of traditional income areas. The above mentioned conclusions are based on an exploratory survey (small convenience sample) thus, in order to achieve a more representative outcome all registered quantity surveyors in South Africa should be surveyed.

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5 RECOMMENDATIONS It is recommended that tertiary institutions, the Council for the Built Environment (CBE), SACQSP and ASAQS should address the perceived deficiency relative to the competencies identified by the gap analysis. This recommendation requires interventions during curricula design, accreditation, assessment of professional competency, and continuing professional development. Finally, the quantity surveying profession should re-assess their involvement in the delivery of complementary services to ensure future sustainability.


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Table 2 Perceived gaps between “Importance and Evidence” and “Future importance and Evidence”

Competencies Value management Risk management Marketing Time management Skills to work with emerging contractors Procurement Professional practice Economics of construction Leadership and general management skills Measurement (Quantities) Quality management/control Facilities management Advanced financial management Planning and organising skills Property investment funding Plan reading Construction technology and environmental services Arbitration and other dispute resolution procedures Cost control Structural knowledge Project management Estimating Law Research methodologies and techniques Computer literacy and information technology Personal and interpersonal skills Coordinating Skills in managing a business unit Valuation Management of joint quantity surveying appointment Development appraisal Construction contract practice Macro-economic perspectives

26 25 24 24 23 23 22 21 21 20 20 20 19 19 19 18

Future Importance– Evidence Gap “Long Term” % 29 35 30 25 27 25 24 22 25 13 24 26 30 25 27 13

18

19

17,20

18 18 17 17 17 16 15 15 15 14 14 14

30 15 13 27 15 22 18 15 15 17 25 15

18,4 19,26 20,33 21,8 22,25 23,17 24,22 25,28 26,29 27,23 28,11 29,29

13 12 12 3

16 21 15 18

30,24 31,19 32,27 33,21

Importance – Evidence Gap “Short Term” %

Ranks: Short Term, Long Term 1,5 2,1 3,3 4,14 5,6 6,10 7,15 8,18 9,12 10,32 11,16 12,9 13,2 14,13 15,7 16,31

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6 REFERENCES Bennion, F.A.R., 1969. Professional Ethics, (London: Charles Knight). Boyatzis, R., 1982. The competent manager: A model for effective performance, (Chichester: John Wiley). Brümmer, D.G., 2004. Challenges in Quantity Surveying: Procuring the future. In Proceedings of the 4th World Congress on Cost Engineering, Project Management and Quantity Surveying, Volume 2. Crafford, G.J. and Smallwood, J.J. 2007. Client’s views on quantity surveying competencies. Acta Structilia, (Bloemfontein: University of the Free State) Volume 14, 33-55. Dubois, D. D., 1993. Competency-based performance improvement: a strategy for organizational change, (Amherst: HRD Press Inc.). Fong, P. S. W. and Choi, S. K. Y., 2009. The processes of knowledge management in professional services firms in the construction industry: a critical assessment of both theory and practice, Journal of Knowledge Management, Volume13, pp110-126. Grant, M., 2004. Competitive strategies for the Professional Quantity th Surveyor in South Africa. In Proceedings of the 4 World Congress on Cost Engineering, Project Management and Quantity Surveying, Volume 1. Krampen, G., 1988. Toward an action-theoretical model of personality, European Journal of Personality, Volume 2, p39 – 55. Leedy, P.D. and Ormond, J.E. 2005. Practical research: Planning and design. 8th ed. (New Jersey: Prentice Hall). Male, S., 1990. Professional authority, power and emerging forms of ‘profession’ in quantity surveying, Construction, management and economics, Volume 8, p191-204. Nkado, R. N., 1999. Competencies required of quantity surveyors, Unpublished MBA Treatise, University of the Witwatersrand, Johannesburg. Royal Institution of Chartered Surveyors, 1998. The APC Requirements and Competencies, (London: Royal Institution of Chartered Surveyors). Royal Institution of Charted Surveyors, 2006. Guide for supervisors, counsellors and employers – graduate route to membership, (London: RICS). nd Seeley, I. H., 1997. Quantity Surveying Practice. 2 Edition. (London: The Macmillan Press Ltd). Verster, J.J.P., 2004. Internationalisation of skills, competencies and quality service by cost engineers, quantity surveyors and project managers. International roundup, Volume 1 Woodruffe, C., 1992. Designing and achieving competency, Chapter 2 in Boam, R. and Sparrow, P. (Eds.), (London: McGraw-Hill). Zemke, R., 1982. Job competencies: Can they help design better training? Training. May, p28-31.

SACQSP2009-18

Preliminaries as part of a future tender price index Cruywagen, J.H. ¹ 1

Department of Construction Economics, University of Pretoria,

[email protected], Tel No. +27-12-420-4973

ABSTRACT Purpose of this paper As part of a study on Tender Price Indices (TPI), one of the questions was how to make provision for preliminaries in a possible set of weights for a new TPI: just as a percentage, or if it is possible to assign weights to some of the priced clauses Design/methodology/approach The preliminaries trade of recently priced bills of quantities was analysed in order to determine which clauses are priced most frequently and which of these constitute the biggest percentages. A questionnaire was also distributed among a number of contractors in an attempt to determine which clauses are deemed by them to be the most important in terms or pricing Findings The findings are that the majority of the clauses in the Preliminaries trade are never or seldom priced by contractors and that, of those that are priced, a small number can be used successfully as weights in this trade for inclusion in a new TPI. Value of paper The value, from the point of view of creating a new TPI, is that a more accurate assessment of the weight that the Preliminaries trade must have in such a TPI can be made in lieu of just allowing a fixed percentage. Further, from a quantity surveying perspective, it can be used in estimates by allowing more accurate figures to specific clauses when estimating Preliminaries Key words: Bills of quantities, preliminaries, tender price index

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Preliminaries as part of a tender price index

1. INTRODUCTION An index can be defined as a ratio that measures a relative change (Steyn, Smit, du Toit and Strasheim, 2007). Another explanation by Ashworth (1991) is that an index number will measure the change that has occurred from one period to another or, put differently, it measures inflation – the rate of change in prices To measure inflation in the building industry, a Tender Price Index (TPI) is used. According to Ashworth (1991) a TPI is based upon what a client is prepared to pay a contractor erecting his building. A TPI reflects not only building cost, but is also influenced by the contractor’s profit and market conditions. Yu and Ive (2008) noted that in bills of quantities the aggregate values of successful tenders are broken down into unit prices for the specified quantities of the different elements or trades. The compilation of a TPI can therefore be based on information obtained from such bills of quantities. Ashworth (1991) mentioned that index numbers can be used to update historic cost data to current pricing levels and that the most common applications are cost planning, forecasting, assessment of market conditions, etc. According to various sources (Ashworth, 1991, Yu and Ive, 2006 and Steyn et al, 2007), two of the most well known indices are the Laspeyres index, which is a base-year weighted index, expressed by the formula: current price x base quantity x 100 base quantity x base price and the Paasche index, which is a current weight index and its generic formula is: current price x current quantity x 100 base price x current quantity 2. PURPOSE OF THE PAPER Currently a doctoral study is being conducted on the evaluation of the Bureau for Economic Research (BER) index with the possibility of creating a new tender price index with new weights, base rates, base date, methods of collecting information for such an index, and how this can be used in future. As part of this study, one of the contentious issues was how to deal with the preliminaries trade, as it is not like other trades where items are quantified according to a standard system of measurement and then priced by the contractor. The purpose of the study was therefore to determine how to make provision for preliminaries in a new tender price index.


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3. WEIGHTING OF AN INDEX According to Flemming and weights for an index that importance of the constituent in Marx (2005) noted that extensions in each trade of index.

Tysoe (1991) it is important when selecting such weights should reflect the relative items to be included in such an index. Seeley the major items incorporating the largest bills of quantities should be included in an

4. THE BUREAU OF ECONOMIC RESEARCH BUILDING COST INDEX Currently the most frequently used TPI in South Africa is the Stellenbosch University’s Bureau of Economic Research (BER) building cost index which, according to Marx (2005), is a Laspeyres index as indicated above. Segalla (1991) reported that the BER index was originally developed in 1966 by Doug Brook, a quantity surveyor then responsible for research and development in the quantity surveying division of the Department of Public works. It is not the intention of this paper to go into detail in the compilation, development and calculation of the BER index. It will be sufficient to say that although the index has undergone refinements and improvements since its development in 1966, these changes were not substantial (the same 22 items that constituted the original index are still currently being used) and the question should be asked whether the BER index should not be re-evaluated entirely. An indication that the Bureau itself might not be comfortable with the relative “age” of the index is the fact that it requested the Department of Quantity Surveying and Construction Management at the University of the Free State in 2005 to investigate the correctness of the index (Marx, 2005) 5. PRELIMINARIES According to Maritz (2002) a trade called “Preliminaries and Sundries” was first published in 1966 as a supplement to the third edition of the Standard System of Measurement (SSM). The trade name Preliminaries was introduced for the first time with the publication of the fourth edition of the SSM in 1971 and replaced the abbreviation “P & G” generally used until then in the building industry. Maritz (2002) further mentions that a document called “Standard Preliminaries” was published in 1981 by the Association of South African Quantity Surveyors. Subsequent editions of this document were published in 1983 and 1988 until the formation of the Joint Building Contracts Committee (JBCC) in 1991, when the preliminaries document was drafted for use with the JBCC principal building agreement. The South African Standard System of Measuring Building Work (ASAQS, 1999) defines preliminaries as “information and such requirements and restrictions of a general nature that may affect the cost of the works”. Further more the Royal Institution of Chartered Surveyors

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(RICS) Standard Method of Measurement of Building Works (SMM7) (1998) notes that the preliminaries section contains those items that are not specific to work sections but have an identifiable cost which is useful to consider tendering separately. The JBCC preliminaries (2005) as well as the 2007 ASAQS version, mentions in its explanatory notes that the preliminaries were compiled “in the interest of standardisation of documentation and good practice in the building industry”. The intention of the preliminaries document is that it forms part of the contract documentation, it is to be referred to in the bills of quantities and can therefore be priced by contractors. 6. PROVISION FOR PRELIMINARIES IN OTHER TPI’S In a paper explaining how the BER index works, Brook (1974) noted that apart from the 22 cost components that form the basis of the index, it was also necessary to introduce an element in respect of the “P&G” component of bills of quantities. Brook (1974) further stated that P&G was expressed as a constant percentage relative to the total number of projects being analysed. Segalla (1991) re-iterated this when he mentioned that, to ensure that correct comparisons are made, the index allows a 5% P&G amount per project. The Building Cost Information Centre (BCIS) in Britain publishes a fixed-base match-item Paasche TPI (Yu and Ive, 2008). Although the index is also compiled by analysing bills of quantities, it differs from the BER index in the sense that that it does not have fixed weights, but from each trade in a project that is being analysed, items are re-priced until the repriced items are more than 25% of the value of the trade (Yu and Ive, 2008). The re-pricing is done by using a schedule of rates (compiled by the BCIS) and no allowance is made separately for a preliminaries trade in the re-pricing because the rates in the schedule of rates include allocated preliminaries (no percentage is mentioned). Van der Walt (1992), in a study that lead to the now redundant P153 index (published by the then Department of Statistics), was however of the opinion that the more correct way of dealing with preliminaries was to view it as a separate trade with its own weight so as to be in line with the other trades in the bills of quantities. 7. METHODOLOGY In order to determine whether it was possible to apportion weights to the JBCC’s preliminaries trade, 28 bills of quantities were analysed for this purpose. These bills were sourced on a random basis from various quantity surveying offices throughout South Africa. In order to have as great a variety as possible, purposive sampling was done among the projects in order to obtain a variety of projects with varying tender amounts. The different types of projects used were as follows:


246

Offices (10) Resource centre Motor dealership (2) Animal cages University residence Flats Laboratories Retirement village Parking deck Warehouse (2) Holiday chalets Cold storage facility Residence Hospital Computer centre Workshops Airport terminal building The tender amounts for these projects ranged from R4,96 million to R1,1 billion. The preliminaries that were used for all these projects were based on the JBCC Series 2000 agreement, edition 4.1, March 2005. Although a new version of the preliminaries was published in November 2007, quantity surveying firms only started using it in 2008 and not enough projects could be sourced in order to use it for analysing purposes. Firstly the preliminaries on all projects were expressed as a percentage of the contract amount less any allowance for contingencies as well as the amount for preliminaries itself. Then the average percentage of the preliminaries for all 28 projects was calculated and that amounted to 9,76% (this must be compared to the current allowance in the BER index which is 5% as indicated before). Next all clauses listed in the preliminaries trade were put on a matrix (42 clauses in section A, 59 clauses in section B and all clauses that were priced in section C). Then each contract was analysed and the amount of every clause that was priced was inserted on the matrix. The amount of each clause was then expressed as a percentage of the total preliminaries amount of that project. After all 28 projects were analysed as such, the average percentage of clauses as it occurred was expressed (i.e. if the particular clause was priced in 5 projects, the average of those 5 clauses were calculated), as well as the average of the clause over all 28 projects. 8. FINDINGS (1) The number of clauses priced per project ranged form one to 35 with an average of 14 clauses over all 28 projects. It should be noted that two projects were found where the preliminaries trade was not priced. These projects were not taken into account for this study. Although a number of clauses were listed in section C of each project, these were seldom priced (a total number of 14 priced clauses were found

247


in all 28 projects). In most cases where clauses were priced in section C was when instructed to do so in the relative clause, for instance “Allow the amount of R50 000 for a land surveyor”. It is clear that some contractors do not find it necessary to price the preliminaries trade in detail, as was found in 4 of the 28 contracts where 100% of the trade was priced in clause 1.0, “Definitions and interpretations”. In total 8 clauses could be identified which were priced on a regular basis and also contributed a significant part of the total preliminaries. These clauses are listed in Table 1, indicating the frequency of occurrence, average percentage per contract and average percentage over all 28 contracts. Table 1. Most priced clauses

Claus e No. 6.0 10.0 14.0 4.1 4.2 6.4 11.3 11.7

Description

Frequency

Average/ item

Average/ Project

Site representative Works insurance Security Management of the works Programme for the works Plant, equipment, sheds and offices Security of the works Works cleaning and clearing

10 12 14 21 15 23

14,07 3,26 3,43 41,19 1,60 27,00

5,02 1,40 1,22 30,89 0,86 22,18

18 18

3,55 2,95

2,28 1,90

(Reference: own table)

From Table 1 it is clear that clause 4.2, “Management of the works” and clause 6.4, “Plant, equipment, sheds and offices”, are not only the most frequently used clauses, but also carry the largest average percentage per project. Although clauses 7.2 to 7.5 (water, electricity, telecommunication facilities and ablution facilities) each had a high frequency of 20, the average percentage per project were quite low and averaged between 0,61 and 1,24 respectively. Because of this, these clauses were not taken into consideration for weights. 9. CONTRACTORS SURVEY In an attempt to verify the above findings a small random survey was conducted among contracting firms in the Gauteng area. A questionnaire on the pricing of JBCC preliminaries was distributed among 12 contracting firms, 8 whom responded. Although the findings in this survey cannot be

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regarded as representative of the complete contacting industry, it gives an indication whether there is correlation with the bills of quantities analysis. The questions as well as the responses to it can be seen in Table 2. Table 2. Questionnaire on pricing of JBCC preliminaries

No. 1 2 3 4

5

Question Do you have a fixed strategy when pricing preliminaries i.e. that you only price certain clauses? Are there certain clauses that you never price? Are there, in your opinion, unnecessary items in the preliminaries that, although it occurs in the PBA, should not be considered for pricing? Have you priced on contracts where other contract documents were used such as: NEC SABS 1200 If your answer to Q4 was “yes”, did you find it easier to price the preliminaries in these contracts? NEC SABS 1200

Yes 6

No 2

8 6

0 2

5 3

3 5

2 1

3 2

(Reference: own table)

10. FINDINGS (2) From the Table the following deductions can be made: Most contracting firms have a fixed strategy when pricing preliminaries. All the respondents agreed with the statement that certain clauses of the preliminaries are never priced. The majority of respondents agreed that there are clauses in the preliminaries that should not be considered for pricing. There was no clear agreement among those respondents that have priced other contract documents than the JBCC, that the preliminaries in these contracts were easier to price. The respondents were also asked, from a list of 8 clauses (those previously mentioned in Table 1), to rank these clauses in order of importance when pricing it. The 4 most important clauses according to the respondents were: st nd Management of the works: (5 x 1 ; 3 x 2 )

Plant, equipment, sheds and offices: (3 x 2nd; 5 x 3rd)

Programme for the works (3 x 1st; 1 x 3rd; 4 x 4th)

Site representative (1 x 1st, 2 x 2nd; 1 x 3rd)

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11. RECOMMENDATIONS The main purpose of the paper was to determine how to make provision for the preliminaries trade in a possible new tender price index. From both the analyses of the bills of quantities as well as the survey among contractors, it seems that preliminaries could be seen as a separate trade with its own weight, with the most important contributors to the weight the clauses “Management of the works” and “Plant, equipment, sheds and offices”. (It is important to note that the quantification of the base rates for the weights in the anticipated new index have not been done at this stage of the overall study). A secondary finding that emanated from this study is that the majority of items in the preliminaries trade are never (or at most very seldom) priced. The Association of South African Quantity Surveyors should be requested that the committee responsible for the drafting of the preliminaries trade must look into the possibility of reducing the number of items included in bills of quantities for pricing of preliminaries. As mentioned before, a new version of preliminaries was published in 2007 (now being published by the Association of South African Quantity Surveyors and not the JBCC). When a new TPI emanates from the doctoral study, the above exercise regarding preliminaries will probably have to be repeated on projects based on the 2007 version of preliminaries. It is, however, envisaged that the results will be very much the same as found in this paper because the clauses that were removed from the 2005 version of preliminaries, now resides in the Principle Building Agreement (PBA) of the JBCC, i.e. clause 4.1, “Management of the works” is now contained in clause 15.0 of the 2007 PBA, “Preparation for and execution of the works”, while clause 6.4 “Plant, equipment, sheds and offices” have moved to clause 19.0 “Temporary works and plant” of the PBA. 12. REFERENCES Association of South African Quantity Surveyors. (1999). Standard System th of Measuring Building Work, 6 edition (revised). (Midrand, RSA) Ashworth, A. 1991. Cost studies of buildings. (Longman Group, UK) Brook, D.E. 1985. Building cost index and how it works. (Building Survey No. 21, Bureau of Economic Research, Stellenbosch) Flemming, M.C. and Tysoe, B.A. 1991. Spon’s construction cost and price handbook. 1st edition. (E & F Spon, London, UK) Joint Building Contracts Committee. 2005. Preliminaries. Edition 4. (Johannesburg, RSA) Maritz, M.J. 2002. A comparison between the June 1991 and Series 2000 JBCC preliminaries edition. Acta Structilia, Vol. 9 No. 1 (Bloemfontein, RSA) Marx, H.J. 2005. The correctness of the BER building cost index. Research


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report: Department of Quantity Surveying and Construction Management, University of the Free State (Bloemfontein, RSA) Royal Institution of Chartered Surveyors. 1998. Standard Method of Measuring Building Works. 7th edition (revised). (London, UK) Segalla, U. 1991. The BER building cost index – an overview. Vol. 15 No. 1, Studies in Economics and Econometrics. (University of Stellenbosch, Stellenbosch, RSA) Steyn, A.G.W, Smit, C.F, du Toit, S.H.C. and Strasheim, C. 2007. Modern statistics in practice. 7th edition. (Van Schaik Publishers, Pretoria, RSA) Van der Walt, P. 1992. ‘n Kontrakprysindeks vir geboue in die Republiek van Suid-Afrika. Unpublished PhD thesis. (University of Pretoria, Pretoria, RSA) Yu, M.K.W. and Ive, G. 2006. A survey of building price indices and compiling methods in Britain. In Proceedings of the Annual Research Conference of the Royal Institution of Chartered Surveyors. (London, UK) Yu, M.K.W. and Ive, G. 2008. The compilation methods of building price indices in Britain: a critical review. Journal of Construction Management and Economics. (Taylor and Francis, http://www.tandf.co.uk/journals)