May 2006
Civil engineering group celebrates its Gauteng success
The charm of Michael Mol… The pulsating sounds of Tuxedo Junction… the glam of government VIPs and the jovial company of some of the top construction and property developers… These were the ingredients of an evening that has made its mark on the Gauteng social calendar.
The venue: Gallagher Estate. The event: The celebration of the Power Group of Companies’ first year and a half in Gauteng. The atmosphere: nothing short of thrilling.
As Master of Ceremonies Michael Mol eased along the momentum of the proceedings, the who’s who of industry rubbed shoulders with local government figures.
Gauteng Public Transport, Roads and Works MEC Ignatius Jacobs was an honourable guest. So too was Finance and Economic Affairs MEC, Paul Mashatile. Clients, colleagues, friends and suppliers of Power Construction North and Power Developments had the opportunity of hearing Group Executive Chairman Graham Power tell the entrepreneurial tale of how a company that had started on the back of a bakkie in 1983 has developed into a group of 12 companies employing 1 850 people today. Power concluded by giving thanks to God, saying that “the company is blessed by God and all credit goes to Him for what has been achieved”. He also thanked the guests and those who had recently started doing business with the Group in Gauteng.
MEC Jacobs welcomed the Group and thanked Power for expanding the business into the province.
André du Preez, CEO of the Construction Companies in the Group said that their growth into Gauteng has been “a pleasant experience” and that they have worked on “the most gratifying and fantastic projects in Gauteng”. He thanked Power Construction North Director, Francois Voigt, Tommie Richards (Power Developments Manager) and their staff for their loyalty and dedication.
Mei 2006
Power gaan van krag tot krag in Gauteng
Siviele ingenieursgroep vier sy welslae in die noorde
Die sjarme van Michael Mol… Die ritme van Tuxedo Junction… die glans van groot name in die regering en die lekker samesyn van leiers uit die konstruksie en eiendomsontwikkelingsbedrywe… ‘n wenkombinasie vir ‘n swierige geselligheid.
Die plek: Gallagher Estate. Die geleentheid: Die viering van die Power Maatskappyegroep se eerste jaar-en-‘n-half in Gauteng. Die atmosfeer: uit die boeke.
Terwyl Seremoniemeester Michael Mol die verrigtinge vlot laat verloop, kon ‘n paar Baie Belangrike Persone van die bedryf ‘n slag met top persoonlikhede uit die plaaslike regering bladskud.
Die Gautengse LUR vir Openbare Vervoer, Paaie en Werke, Ignatius Jacobs, was ‘n geëerde gas. Mnr Paul Mashatile, LUK vir Finansiële en Ekonomiese Sake, ook. Kliënte, kollegas, vriende en verskaffers van Power Construction North en Power Developments was meegevoer toe die Groep se Uitvoerende Voorsitter, Graham Power, vertel hoe ‘n maatskappy wat sy ontstaan agter op ‘n bakkie gehad het, 23 jaar later in ‘n groep van 12 maatskappye ontwikkel het, met 1 850 mense in diens. Power het sy verhaal van vindingrykheid afgesluit deur God te bedank: “Alle krediet vir wat vermag is, gaan aan Hom; hierdie maatskappy is werklik geseën.” Power het ook die gaste en dié wat onlangs met die Groep in Gauteng begin sake doen het, bedank.
LUK Jacobs het die Groep verwelkom en Power bedank dat hy sy bedrywighede na dié provinsie uitgebrei het.
André du Preez, Uitoerende Hoof van die konstruksiemaatskappye in die Groep, het beaam dat hul toetrede tot Gauteng ‘n “aangename ondervinding is”, en dat hulle tot dusver by “fantastiese” projekte in Gauteng betrokke kon wees. Hy het Power Construction North se Direkteur, Francois Voigt, Tommie Richards (Power Developments Bestuurder) en hul spanne bedank, en hulle geprys vir die geesdrif waarmee hulle die opleiding en ontwikkeling van mense benader.
June 2006
Levendal Developments
Paarliete en ontwikkelaars gesels
DIE ontwikkelaars van die beoogde Levendal-projek in Simondium het onlangs 'n openbare vergadering gehou om 'n oop gesprek met die gemeenskap aan te knoop.
Levendal Developments, 'n ontwikkelingsmaatskappy wat bestaan uit Power Developments, The Lord Trust en 'n swart bemagtigingsmaatskappy, l・tans 'n ontwikkelingsvoorstel voor om gedeeltes van 14 plase en 'n bestaande oord in die Suider-Paarl area onder te verdeel, te hersoneer en te herontwikkel.
Die voorgestelde ontwikkeling is 'n volhoubare ontwikkelingsinisiatief wat gemik is daarop om maksimale geleenthede te verskaf vir sosio-ekonomiese opheffing sonder om die landelike en landboukundige aard van die area in te boet.
Die vergadering is deur sowat 70 mense van die gemeenskap bygewoon, met 'n goeie verteenwoordiging van alle partye - van boere en plaaswerkers tot sakelui en inwoners van Suider-Paarl. Onder die plaaswerkersgemeenskap, met wie daar reeds vantevore 'n afsonderlike vergadering gehou is om inligting te deel, is daar 'n positiewe gevoel oor die feit dat behuising vir hulle op 'n eietitelbasis aangebied word, en die ontwikkelaars het dit duidelik gemaak dat daar geen verborge koste betrokke sal wees nie.
Die gesubsidieerde behuisingskema word beplan vir die area naby die huidige ambagskool, wat as deel van die projek ook aandag sal kry.
Die plaaslike owerhede is positief oor die sosiale en ekonomiese bydrae wat die Levendal ontwikkeling aan die area kan lewer.
Drakenstein uitvoerende raadslid vir behuising, Arthob Petersen, s・ "Enige Ontwikkeling wat behuising probeer aanspreek, is uiters welkom - veral omdat hierdie 'n gemengde behuisingsontwikkelingsprogram is, wat die lae inkomstegroep sowel as die middel en ho・inkomste groepe dek. Dit lui 'n opwindende nuwe fase in wat behuising in Drakenstein betref."
'n Bron van bekommernis vir die gemeenskap was dat die oorspronklike grootte van die ontwikkelingsarea intussen verander het, en die vraag was of dit waartoe hulle nou toestem, gaan ooreenstem met die uiteindelike produk.
Die ontwikkelaars het beklemtoon dat die huidige ontwikkelingsvoorstel in die komende maande nog kan wysig tot 'n beperkte mate en dat dit juis die doel van die publieke deelnameproses is om almal die geleentheid van deelname te gee.
Alle kommentaar, besware en ondersteuning wat deur die deelnemende publiek voorgel・word, word aangespreek en deel gemaak van die uiteindelike finale konsep wat deur die owerheid oorweeg word vir goedkeuring. Die proses bly deurentyd deursigtig en akkomoderend van insette deur die publiek.
"Daar is 'n goeie begrip vir die feit dat die einste gemeenskap waarvan Levendal deel sal word, ook toekomstige kli・te en bure gaan word en dat die produk wat op die mark geplaas word, die produk moet wees wat die kli・t wil koop en die bure geredelik mee kan saamleef," sê Josua van Tonder, projekbestuurder vir Power Developments.
Die ontwikkeling sluit 'n woonwapark en openbare piekniekarea in, sowel as 'n vo・reservaat op die eiland in die rivier.
Behuising sal die volle spektrum dek; vanaf gesubsideerde plaaswerkerbehuising tot middelinkomste en eksklusiewe behuising.
"Die behuising sal grotendeels op reeds beboude of versteurde grond plaasvind, met die minimum ontwikkeling op lae potensiaal landbougrond, sodat die landbougrond in die area steeds vir landboudoeleindes aangewend word, en die inwoners as te ware op 'n werkende plaas woon," sê Van Tonder.
Die steengroef oos van die hoofpad (McMillan Bricks) gaan herwin en gerehabiliteer word, en inheemse fauna en flora sal aangemoedig word om die area tot sy oorspronklike natuurlike toestand te herstel.
Om deel te neem aan die deurlopende gesprek met die ontwikkelaars of om by te dra tot die omgewingsimpakstudie, kontak Belinda Gebhardt, Senior Omgewingskonsultant van SRK Consulting, Postnet Suite #206, Private Bag X18, Rondebosch, 7701 by tel 659-3060, faks 685-7105 of bgebhardt@srk.co.za.
Kommentaar of navrae oor die ontwikkeling kan oor gerig word aan Josua van Tonder by jvtonder@powergrp.co.za of Posbus 129, Blackheath, 7581
June 2006
Nuwe aftree-ontwikkeling by Stellenbosch kry verdere momentum
Verkope in la Clemence, die nuwe wynlandontwikkeling net buite Stellenbosch wat op die aftreemark gerig is, is besig om fluks te vorder met 80% van die wonings in fase een en twee van die ontwikkeling wat reeds van die hand gesit is.
Die ontwikkeling van R240 miljoen bestaan uit 138 wonings wat op ‘n perseel van sowat 8 hektaar in vier fases oorkant die De Zalze-gholflandgoed op die R44 tussen Stellenbosch en Somerset-Wes opgerig gaan word.
Inus Kempen van die Liberte Trust het gese dat hulle, as ontwikkelaars can le Clemence, baie tevrede is met die momentum wat die bemarking geniet, met veral plaaslike kopers wat groot belangstelling in die ontwikkeling toon.
Algemene opriuming van die perseel wat verwydering van die uitheemse bome en afbreek van oorbodige structure behels, is reeds afgehandel. Die bourommel word tans vergruis om as stutlae vir die paaie gebruik te word. Na afhandeling van die opriuming, kon die posisie van die inheemse bome (wat veral in fase drie en vier voorkom) akkuraat opgemeet word.
“’n Volledige studie van al die inheemse bome rakende die grootte, posisie en die toestand van elke boom, asook ‘n aanbeveling in sake die toekoms van elke boom, is pas afgehandel. Die studie, finale terreinontwikkelingsplan en landskapsplan is nour deur die Stellenbosse Munisipaliteit en die Boom advieskomitee van die munisipaliteit goedgekeur,” het Kempen gese.
Die Kultuurhistoriese waarde van die ou olienhoutbome word beklemtoon deur die feit dat die ontwikkelaar sonder huiwering twee erwe in fase drie en vier prysgegee he tom die ou bome te bewaar.
“Bome sou nooit onverskillig afgekap word nie. Die natuurlike boomrykheid, uitsig oor die wynlande en die Stellenbosse berge was juis in die aanvanklike beplanning geidentifiseer as ‘iets’ besonders, wat as pluspunt vir die ontwikkeling sou dien,” het hy gese.
Die kontrak van ongeveer R3 miljoen vir die massagrondwerke vir die hele ontwikkeling is pas aan Power Construction toegeken met die dienste vir fase een en twee wat sal volg. Bouwerk aan die wonings in fase een en twee sal teen die einde van die jaar begin.
Die sketsplanontwerp van die klunhuis is byna voltooi, met die ontwerp van die kombuis wat in samewerking met die sjef van ‘n bekende plaaslike restaurant gefinaliseer is. Die kombuis word so ontwerp dat dit in ‘n noordelike rigting uitleef om die uitsig oor die berge te benut.
July 2006
New Garden Route Mall, the R180-million, 65 000m2 regional shopping centre under construction beween the N2 and Knysna Road, in George, is reaching peak activity as the end of the construction programme is in sight.
Main contractors’ WBHO project director Wolfgang Neff is managing a team of 200 hourly paid staff with 10 foremen and five site agents, plus co-ordinating the teams of sub contractors in the frenzy to complete the first phase of the complex according to the 27th October opening deadline.
At the time of writing, the 12 000m2 second phase had started and the 4 5—m2 cinema complex foundation platform was well underway. According to Neff, the challenges faced in a complex of this size are not in the complexity of design and construction, as this is regarded as fairly conventional. “WBHO has tackled retail shopping centres of this and larger sizes before and clearly has the project experience, but where this one differs is in its location, being outside a main metropolitan area where skilled trades’ people and material supplies can be problematic at times,” he said.
Never the less, plans have been implemented to overcome these challenges and despite some periods of wet weather, Neff is confident on meeting the first phase deadline of end October. Power Construction Coastal, based in KNysna, is a sub-contractor to WBHO for the original earthworks, (completed last year) internal roads, services and the 100 000m2 parking areas.
Site agent Nick Shaw has also had his share of challenges echoing those of Wolfgang Neff. “Our R18-million contract involves approximately 100 000m2 of parking spaces, 2.8km of stormwater, 10km of services ducting and 1.5km of serwers, some of which are installed at depths of 7m” commented Shaw. “The underlying clay whilst not active, does present an impermeable layer causing flooding when the rain comes” he mused, which has been quite often since the beginning of the year. Shaw and his team are now busy with an additional 4 500m2 foudnation platform for the Ster Kinekor cinema complex.
The contract for the centre’s external roads and services has been awarded to Sibakhulu Construction, a Power Group BEE company. This entails the widening of the George-Knysna Road and N2 off ramp and constructing the main access roads and services into the centre with an intersection from the above roads. The value of the work amounts to about R10-million and has already started.
The Garden Route’s developers are Attfund whose retail investments include the shopping centres of Woodhill Boulevard, Clearwater Mall, Atterbury Value Mart, Somerset Valeu Mart and Centurion Mall.
July 2006
From acorns oak trees grow
This section of Contractor is usually reserved for the smaller, up and coming contractors but big established companies had to start somewhere and their success is recognised as well as providing a beacon for the up and coming who strive to make it in the rough and tough world we know as contracting.
On a much delayed country trip to the Western Cape, editor Robin Hayes couldn’t help but notice the dominance that Power Construction has in the coastal regions of the country, particularly the Peninsular and what we all call the Southern Cape. A quick call to their head office in Blackheath landed the editor with an interview with André du Preez, MD of the Construction arms of the Group.
Evolution of the Power Group over 22 years.
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Graham Power started Graham Power Contractors (Pty) Ltd. Turnover in the difficult first year was around R300,000.
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The company moved to its present location in Wimbledon Road, Blackheath. Turnover that year was R6.3m.
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Blitz Asphalt established, initially to supply internal demand and to lesson dependence on sub-contractors. As resourced grew the company was able to undertake outside contracts and its name was changed to Power Construction Roads in 2002, to focus on major rehabilitation contracts. Today the company is a major contributor to the Group and specializes in major and minor road construction, premix / asphalting, general seals and surfacing, airport taxiways, runways and apron slabs.
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Power Construction South Cape, the first regional office, was established in George but after 12 years successful operations there, relocated to Knysna to coincide with the civil services contract at Thesen Islands. Upsurge in residential developments in Knysna and Plettenberg Bay assured success and the company was renamed Power Construction Coastal in 2002.
Power Properties established, to be renamed, Power Developments. Realising the potential in middle and upper market residential developments, the company established Power Properties, which laid the groundwork for the anticipated upsurge in demand for not only upmarket but affordable properties.
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Core business renamed Power Construction West Cape. This was the first of the Group’s core companies to focus on a niche market of township developments and successfully services the Western Cape. This year also saw the establishment of Power Construction East Cape, although at the time there was little work and many competitors had packed up and left the area.
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Hughmic Construction established; the first of the Group’s empowerment joint ventures, with Chano Hughes and Abel Michel becoming 51% partners with Power Construction West Cape and able to draw on the Group’s experience as an established player. Glenville Cullum replaced Abel Michel as shareholder in 2005. Hughmic operates as an autonomous entity whilst availing itself of the resources of the Group.
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Sibakhulu Construction formed through another jv, this time in the Eastern Cape. Growth opportunities and BEE imperatives were some of the reasons why Power Construction East Cape (Pty) Ltd was later sold to and incorporated into Sibakhulu Construction at the end of 2002. Joint shareholders Dumisa Mcetywa and Glenville Cullum own 51% of the company.
2000 Power Construction Plant and Power Group Financial and Management Services formed. The former was established to service the growing needs of the Group’s operations, which it was felt, would be better served by a separate company. Power Group Financial and Management Services was born out of the Services division, which looked after plant, financial and technical aspects of the Group’s operations. Steady growth meant that these essential services had to grow as well, and it was becoming clear that a comprehensive human resources development plan was needed. As a pure services company Power Group Financial and Management Services was established to manage the Group’s financial, organization and technical requirements in separate departments.
2002 Power Construction South Cape renamed Power Construction Coastal.
2003 Power Building formed. During this year it was decided to separate the building division from Power Developments and form a dedicated company focusing on building. Since being active in the field, Power has completed 28,000 affordable housing units and various other projects involving apartments, town house developments, and residential infrastructure buildings.
2003 Khayalethu Projects, another empowerment company was established. Meaning “our home”, which concentrates on the affordable housing sector nationally. Mark Julie and Sam Dube owns 51% of the equity whilst Power Developments the balance of 49%.
2004 Power Construction North established. This is the third regional office of the Group and situated in Gauteng to take advantage of the opportunities in that region.
2004 Nikamandla Construction formed as the fourth empowerment initiative, with Power Group employees Grant White and Gerard Gilbert securing a 51% shareholding whilst Power Construction Roads holds 49%. Aptly named – meaning “give power” – the company specializes in the rehabilitation of roads throughout Southern Africa, allowing Power Construction Roads to concentrate on reconstruction and the construction of new roads nationally.
Power Group as it is today
In just 22 short years, Graham Power, founder of the Power Group, has taken his vision and enterprise from the back of a bakkie to a local conglomerate, employing more than 1700 people and in the process, dominating the construction scene in the Western, Southern and Eastern Cape.
According to André du Preez “It’s the people who make a difference, strong leadership and a vision of where we are going and where we want to be.”
“We have always had an unstinting commitment to providing quality work, on time and at a reasonable price, and conducting our business in an ethical and honourable manner, seeking negotiation rather than confrontation in resolving problems or difficulties” he stated.
“Don’t get the idea though that we are some sort of push over, far from it, and we have had a few situations where the legal route had to be followed, but it never results in a satisfactory outcome for either party, win or lose: said du Preez.
It’s clearly a strategy that has stood the company in good stead and their dominance in the region has created what every marketing text book states as a company’s prime objective, “top of the mind awareness.”
But how have these lofty ideals been implemented and carried through the business?
100-year dream
CEO Graham Power states that the Group has a 100-year dream, a commitment made by the company’s leadership in 2001 to prolong the existence of the company, its culture and ethics long after the current management are gone. Far from being a fanciful notion or pipedream, says Power, this is a long-term business objective, with definite processes and courses of action put in place to ensure its fulfillment in the decades ahead.
This is clearly a company with strong spiritual values, and as stated by Power, he and his team are simply managing the business; it belongs to a greater being in his view.
It is clear that the core values are not merely lip service, but are an essential part of the Group’s culture.
Power sees the people in the Group as key motivators in what they can achieve, and consequently it is management’s responsibility to train, mentor, empower and identify successors to lead the company into the future and realise the 100-year dream. Simple!
The company places great emphasis on their vision, mission statement and core values and one comes away with the impression that they mean what they say, and not just offer wise words as a sop to political correctness or current business fashion.
According to André du Preez, the Group focuses on opportunities that provide growth for their talented people and deliver returns for their shareholders.
“as opportunities are identified, we position ourselves to take advantage of them. If we don’t have the resources available right now, we make sure we will have them in the future. That is why the Group is so diverse and focused on opportunity driven business” he says.
“We are encouraged by the Government’s commitment to increasing infrastructure spending and as a consequence have entered into various exciting and meaningful partnerships in both Government and the private sector. These ventures will reinforce our ability to remain a catalyst for life enhancing projects that will generate opportunities and contribute to upliftment for all in the country.”
Over the years, the Group has been recognised with independent awards including:
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18th International Africa Award for outstanding management, quality, technical innovations, service and export achievements in the African market – 1997
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Institute of Housing Regional Award – developer of the year 1998, 2001, 2003 & 2004
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Institute of Housing National Award – developer of the year 1998
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Professional Management Review Golden Arrow – 2000
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Steel Construction – 2001
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National Housing Awards – best established developer – 2002
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Merit Award Saldanha Project – 2002
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Since 2003 listed (Hughmic & Sibakhulu Construction) amongst Top 300 Impumelelo companies in South Africa
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PMR Corporate Care Awards – National trophy for Environmental Care and Job Creation and Training – 2003
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PMR Corporate Care Awards – Industry winner for Black Economic Empowerment and Social Upliftment – 2003
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PMR Silver Arrow Award for doing the most to enhance the Province’s economic growth and development - 2005
October 2006
Interview
Graham Power, CEO of the Power Group of Companies
Graham Power was born and bred in the Western Cape, and today lives in Somerset West. After school, Graham joined Savage and Lovemore (now Group 5 Roads), where he remained for 10 years, gaining invaluable experience on projects such as the Saldanha oil storage, the Langebaan Veldrif West Coast road and the Steenbras hydroelectric scheme. In 1983, he started his own company, trading as Power Construction, which operated for four years from a smallholding on Sir Lowry’s Pass before moving to its current premises in Blackheath, outside Cape Town.
Provide a brief history of the company.
Power Construction was founded in 1983 and turned over just R300 000 in its first year of operation. This became R3-million in the second year, R6-million in the third, R12-million in the fourth and R24-million in the fifth year. Twelve companies form part of the Power Group of Companies, of which four are empowerment ventures. The empowerment ventures were all started from within the company, all of the partners are fully active (no silent partners). The partnerships do not include any big names or celebrity BEE partners, but rather actual engineers and quantity surveyors who have come through the system at the Power Group to assume positions of responsibility in the new companies. To us, this is the true meaning of empowerment.
Ninety percent of the staff at the Power Group are people of colour. This is the result of the company’s long commitment to transformation and to maintaining an honest representation of the demographics of the province and the country. In 22 years, the company has never retrenched a member of staff. A record such as this is unheard of in the industry, if not across all industries, in the country and perhaps the world.
How is the construction industry faring in South Africa?
I am very excited about South Africa, not only today but over the past 20 years. In the 1960s and 1970s, South Africa’s construction industry was developing the infrastructure in the country on the level of first-world countries. The only good thing to have come out of the years of apartheid is that South Africa now enjoys infrastructure such as roads, ports, buildings and airports of the highest standard. The construction industry peaked in 1976 when government was pouring 8.3% of national GDP into construction, with 135 000 people directly employed by contractors across the country. By 1997/98, government investment had dropped to 2.4%, but it has now started to move on an upward curve again.
The construction industry is unique in that people with a lower level of education or experience can, with a few weeks of training, be developed into individuals who can add value to a company and earn a reasonable income. Indeed, construction can play a key role in alleviating the unemployment problems facing the country. There is plenty of work in the industry at present with the backlog of affordable housing and the redevelopment and expansion that is required on much of the infrastructure that was built at great expense in the ’60s and ’70s.
How successful have your four empowerment ventures been?
Hughmic Construction has been in operation for eight years, focusing primarily on civil engineering and based in Blackheath in Cape Town. The company was very involved with the development at Century City and the adjacent theme park; it completed all the civil works on the roads infrastructure at Boschenmeer Golf and Country Estate in Paarl; and it is currently busy on a landfill contract at Vissershoek in Milnerton. Chano Hughes is the MD of the company.
Sibakhulu Construction has been in operation for seven years, and operates in the Eastern Cape. Recent projects include the Njoli Road contract; Neptune Road contract at Coega; IDZ East London and the excavation of the Coega harbour basin in Port Elizabeth. Dumisa Mcetywa and Glenville Cullum are the two shareholders managing the company.
Khayalethu Projects, formed in 2003, is the company’s third empowerment venture, based in the Western Cape. The company specialises in all state subsidised housing projects and tenders on state land countrywide. It is one of the six companies, along with the Power Group, in the consortium that has won part of the tender for Cape Town’s multibillion-rand N2 Gateway Project. Mark Julie and Sam Dube are the two shareholders and directors of the company.
Nikamandla Construction, also based in the Western Cape, was a breakaway company formed in 2004 from Power Roads. Nikamandla focuses on rehabilitation of roads: milling, cold in-situ recycling, asphalting and general surfacing throughout Southern Africa. Grant White was appointed as MD after starting with the company as a student nine years ago. Grant and Gerard Gilbert (employed with the company for 10 years) are the shareholders of the company.
What is your view of the Western Cape as a business destination?
I am highly optimistic about the Western Cape. If you believe the statistics, tourism is growing rapidly, which means more hotels and further expansion to roads, landing strips and residential developments. The Western Cape probably has the least amount of development needed to prepare for 2010 Soccer World Cup, but there will still be much work to be done. And you only need to look at the numbers of people that want to buy homes in the Cape, or develop property in the region, to see that the province has international appeal. The lifestyle, the weather and the people all contribute to making the Cape a great place to do business and to live.
What are your expectations for the company regarding 2010?
Though based in the Cape Town, the Power Group has offices in Knysna, Port Elizabeth and Gauteng, so we are well represented wherever work may arise. Further, our mobile units, especially in road works, can operate countrywide. The N2 Gateway Project is a huge project moving towards 2010. When visitors arrive at Cape Town International Airport, their first impression must be a lasting and positive one.
What social investment programmes do you have?
We do a huge amount of training within the Group. We still work every second Saturday, and on most of these days we conduct training workshops in every one of our four training venues, covering everything from carpentry to bricklaying to operations and management. We view this commitment as an investment in our future, and in the future of our employees.
The other area in which we play a large role is in HIV/Aids in the workplace. Over the past three years we have conducted voluntary testing for our staff, and to date over 1 200 people have been voluntarily tested. While still an unfortunately high level, we can say that the Western Cape, with only a 6.8% infection rate, recorded the lowest rate of infection throughout our Group. As a result of the testing, and the professional manner in which it is handled, people have had access to assistance and to the various support programmes available. Our stance on HIV/Aids, and our approach to dealing with it, is all about prolonging and enhancing life, through creating a greater understanding of the virus, as well as living and working with it. Our goal is that NO new infections should occur through the training and knowledge transfer within the Group.
Is the Group involved in any community programmes?
Each of our twelve companies donates 10% of its profits into the Power Group Charitable Fund, which is used to support various organisations and causes. We are involved with a community centre in Mannenburg, through the donation of computers and sewing machines; we have assisted in the purchase of a building from the City Council, which will be used in part as a crèche and also as a training and recruitment centre. We are also involved with The Beautiful Gate Project providing care and support to children affected by HIV/Aids; and we also have a strong involvement with The Ark school and home for unemployed and homeless people, providing food and building material, and sponsoring teachers.
These CSI programmes are not in place because it is expected, or because it looks good; they come from the heart, and they’re there because we are not only in business to make a profit, but also to help build the community, the economy and the country, in any way that we can.
What message do you have for potential investors into the Western Cape?
I firmly believe that anybody wanting to come into South Africa to do business, whatever their industry, would be naïve to think they will survive without taking advantage of local knowledge. Forming joint ventures with local businesses that understand the politics, the labour and the laws and regulations, is critical to the success of any investment. Partnering with local companies will not only add value to the investment but will also build the local economy which will have a positive effect on the investment itself.
We have a brilliant product – the Western Cape – and I am highly optimistic about the economy in the region and in South Africa. My best wishes to you with this publication, I think it’s an outstanding initiative. I support it; I think the need therefore is great.
SEPTEMBER 2006
Sewerage: pipe installation
Wet and difficult ground conditions
The laying of this pipeline was certainly not all plain sailing for the civil engineering contractor. The shallow water table and strict environmental conditions, issued in the record of decision, have complicated matters.
Wet ground conditions overcome
A R200-million sewer contract is a sizable undertaking, especially when wet ground conditions pose many construction challenges. This is the case at the N2 Gateway project, Robin Hayes learned.
ASLA and Power Construction have formed a joint venture to handle the design-and-construct project. The tender contract followed International Federation of Consulting Engineers (FIDIC) turnkey contract conditions. While a fixed price was provided for the job, the fast track nature of the project meant that, from the outset, there would be extras and additions to be accommodated in the works.
ASLA and Power Construction have partnered before in other aspects of the Gateway project as contractors to Sobambisana Community Development but not in joint venture. So, while the two companies knew each other, in this case extensive planning was required and frank discussions on strengths and weaknesses lead to apportioning of work and contract responsibilities. Once that was settled, a team approach was adopted to address the seven major contract activities, which included excavation and pipe laying, concrete work, materials store, workshops and training, among others. Extensive use is made of local and emerging contractors with training support provided by the City of Cape Town.
In addition to the contracting team, Sobambisana includes consulting engineers Kwezi V3 and Bergstan, and environmental consultants EcoServe all of whom have permanent technical staff in site offices while the laboratory and materials store are located near Mfuleni on the Old Faure Road. Looking after the client’s interests is project manager Stewart Scott International.
Scope of works
The ASLA/Power joint venture is contracted to expedite:
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detection and adjustment of existing services;
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site clearance and demolition of structures;
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supply and installation of the Delft main sewer and interceptor to Zandvliet Waste Water Treatment Works;
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removal and relaying of existing services;
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connection to the existing main sewer;
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crossings of the Kuils River; and
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crossings of the N2 national road and the R300.
Deviation from original plan
The new pipeline follows fairly closely the route of the old, through Delft and sections of the Kuils River flood plain, but that doesn’t make its construction any easier, according to Tony Araujo, contracts manager for Power Construction, and responsible for the technical aspects of the project.
“The route traverses existing services, protected wetlands, informal settlements, private farm land and crosses the Kuils River twice, the R300 main road and the N2 highway,” explained Araujo. Ground conditions are typical of the Cape Flats: sand dunes, fine sandy soils with isolated areas of calcareous sandy material mixed with clayey/calcareous boulders.
There have been a number of administrative and planning issues that have caused the construction programme to deviate from the original plan.
Great urgency to complete the pipeline in time for beneficial occupation of the houses, which were scheduled for handover at 100 per week, led to the adoption of a fast-tracking approach, which culminated in a tight contract period of just 11 months. The contract period – commencing in December 2005 and scheduled for completion in November 2006 – is particularly challenging considering the high water table expected during the wet winter months.
While the project had received approval from the Department of Water Affairs and Forestry (DWAF) technical approval and an environmental impact assessment (EIA) record of decision (ROD) was imminent, several other legal and administrative issues had not been resolved prior to the contractors establishing on site.
Examples included the removal of informal settlements by city officials and the granting of permission by a land owner to cross his farm.
These issues and a late but successful appeal lodged to the Ministry for Environment, Planning and Economic Development for a change in the approved pipeline route also resulted in substantial re-programming to the construction schedule. Implications of the route change, upheld more than a month after contract commencement, meant the partial destruction of seasonal wetlands, which required permission from DWAF in Pretoria. At the same time, concerns were being expressed by environmentalists and others over the impact of the Kuils River crossings, and a special team was formed to examine the issues, comply with the dictates of the National Water Act and recommend a method of construction that lessened the environmental impact.
The team’s proposals were accepted by DWAF, which issued authorisation for the lower and upper Kuils River crossings during February and March 2006 but a decision on the seasonal wetlands would take a little longer.
Three types of wetland were affected: imperate cylindrical, degraded and Renosterveld – each requiring a separate rehabilitation regime. To minimise environmental impact, it was a condition that construction work had to take place during the dry season.
The upshot was that method statements were devised and issued and an environmental control officer appointed to ensure compliance with the Construction Environmental Management Plan. DWAF in the Western Cape approved the measures in June 2006, allowing construction to proceed in sensitive areas.
Notwithstanding these impacts, the flexibility of the contracting organisation accommodated these changes while maintaining progress in other less sensitive areas.
Lower Kuils River crossing: the record of decision in terms of the environmental impact assessment prescribed stringent conditions for river crossings. At places, the pipeline route had to be adjusted and, where there were wetlands, construction had to be completed in the dry season.
Why a new sewer?
The much-publicised and, at times controversial, N2 Gateway housing project, involves the construction of 22 000 housing units and was scheduled for completion in June 2006. Approximately 15 000 of these units were constructed in Delft Symphony, Delft extensions 7, 8 and 9, and Driftsands. It was clear that the existing bulk interceptor sewer built many years ago was inadequate for the increased flow. The capacity was often exceeded, especially in the wet season when the level of groundwater peaked above the level of the sewer. In such cases, stormwater and groundwater entered the pipelines through damaged couplings and cracks that had developed over the years. Sewer overflow was not uncommon causing a major health risk to communities and environmental concerns.
Under a Municipal Infrastructure Grant, the new sewer pipeline is under construction for the City of Cape Town by Sobambisana Community Development, and sub-contracted to a joint venture of ASLA and Power Construction. The pipeline has been designed to address capacity requirements not only for the Gateway project but for the greater Tygerberg area. The project pipeline starts in Delft at Symphony Way and terminates at the Zandvliet Waste Water Treatment Works – a pipe run of about 15,8 km.
The project comprises two parts: Phase 1 is known as the Delft Interceptor Sewer that runs from Hindle Road to Kuils River (13 km) while the second phase is known as the Main Sewer, commencing at Kuils River (Mfuleni), running along the Old Faure Road, turning into Baden Powell Drive and connecting into the Zandvliet Waste Water Treatment Works.
Construction step-by-step
Installation of this pipeline is more complex than it would seem at first glance, reveals a detailed look at construction.
Concrete pipes between manholes
“Inspection/sluice manholes occur every 200 m and we use the concrete pipes between manholes where we encounter shallow depth, difficult ground conditions or road crossings for instance,” explained Tony Araujo of Power Construction. “Each section of concrete pipe weighs between 6 t to 7 t so, while having greater deformation strength and rigidity than the GRP, it is more difficult to handle,” he said. GRP sections are comparatively light at about 1 t each.
Careful excavation at existing services
Mechanical excavation was the only viable method to meet production deadlines although a combination of hand excavation was necessary in areas congested by existing services (pictured). Labour-based sub-contractors were engaged in the construction of the manholes and other on-site concrete work.
Special bedding materials
Deep trenches in variable soil conditions, a high water table and potential deformation of the GRP pipes meant that special arrangements were made with respect to bedding materials, backfilling and compaction. In some areas, stone and imported material form the pipe’s support base.
ASLA’s Jeremy Donnelly, responsible for site supervision, explained that the pipe laying has to be done to very tight tolerances – over a road crossing for example, a fall of just 80 mm was specified over 80 m, which is virtually undetectable with a spirit level!
Difficult excavations
Groundwater was found at depths varying from 1,5 m to 5 m and, in combination with the different soil types, made excavation and laying extremely difficult at times. Very wide excavations were sometimes necessary in the areas of fine sandy soil while the stiff clayey/calcareous material allowed fairly vertical side slopes. Calcareous boulders and old, unmarked concrete foundations, some at a depth of 8 m presented the construction team with some serious challenges.
Groundwater a constant problem
“We devised special jigs and tools to handle and lay the pipes, a process that fell into three categories: dry conditions with easy bedding, a high water table with dry bedding material and lastly saturated soils which required extensive well point dewatering,“ explained Jeremy Donnelly of ASLA. “So extensive was the groundwater in places that it was difficult to prevent the pipe sections from becoming buoyant so not only were tight tolerances a challenge but to get the pipes backfilled and compacted in quick time required some ingenuity.” Despite employing some hi-tech resistivity testing equipment, underlying conditions were not easy to determine and random stretches of dry conditions would unaccountably and suddenly become saturated, which kept the pipe laying team on their toes.
Sensitive river crossings
River crossings have to conform to rigid method statements to minimise environmental impact while diverting and restoring the flow. At crossings, concrete encasement of the pipe is required as well as the use of gabions and mattresses as protection measures. The Lower Kuils River crossing with shuttering for pipe encasement is pictured.
Support for the old sewer
On the upper Kuils River crossing, the new sewer runs alongside the old and is located in the river bed but scouring had completely exposed the old pipe and was being used by local residents as a bridging point across the river, according to Jeremy Donnelly of ASLA. “The environmental method statement calls for rehabilitation of the old pipe crossing as well as the new and we have constructed a wooden bridge to provide a safe crossing point for residents as the rehabilitation work includes pipe cover with rip-rap and gabions – quite unsuitable and unsafe for pedestrian traffic especially during flood conditions.” Heavy rains upstream during construction were a challenge but good team work provided a satisfying result that met the specifications, he added. A bailey bridge was used to support the old sewer at the new sewer crossing point
Professional team
Client: City of Cape Town
Client’s project manager: Stewart Scott International
Principle contractor: Sobambisana Community Development
Contractors: Power Construction & ASLA JV
Consulting engineers: Kwezi V3 and Bergstan
Environmental consultant: EcoServe
Pipe-jacking sub-contractor: Esor
Pipe-jacking at road crossings
A number of pipe-jackings under roads and services was specified and the work was sub-contracted to specialist firm Esor, which was contracted to handle four crossings, according to Esor director Arthur Field. Hindle Road, R300 and N2 are all road crossings between 50 m to 70 m in length and at a depth between 4 m and 8 m, he said, adding: Hindle was 1 350 mm diameter and the other two were 1 500 mm and 2 250 mm. Further jacking took place under services adjacent to the R300 where the pipeline crosses existing large-diameter water mains, a 750 mm-diameter sewer and power cables.
“While the Hindle Road, N2 and services crossings were fairly straightforward, except for the problem of groundwater, the R300 presented a particular challenge as unidentified concrete structures were found directly in our path at a depth of more than 8 m,” explained Field. “Our conventional vacuum pump dewatering techniques proved ineffective at these depths and well-point dewatering was employed,” he elaborated. “We opted for an additional jacking pit in the central median.” The underlying ground conditions and removal of the concrete structures has led to some unexpected subsidence on the R300, which, although stable, will form part of remedial work by the contractors during off-peak traffic conditions. Ironically, the contractors requested that the Department of Transport allow this crossing to be done by open-cut rather than jacking but the request was declined due to heavy traffic volumes on the R300.
Contact
Glenville Cullum – CEO Sobambisana Community Development. 021 907 1300 gcullum@powergrp.co.za
August 2005
Power Building appoints MD
Poens Venter has been appointed as Managing Director of Power Building.
Venter joined the Power Group of Companies in 2000 as a Special Projects Manager responsible for the design and large-scale master planning of development projects for the Group.
In 2002 he was appointed as a director of Power Construction Roads. The following year he became a director of Power Construction West Cape, and in 2004, he joined the board of the then newly formed Power Building.
Poens Venter graduated from the University of Stellenbosch and worked for the Cape Peninsula Administration, and later Keeve Steyn, (now Goba) before joining the Power Group.
Venter has ambitious goals for Power Building. He wants to develop it into a frontline building company that will ultimately be involved in high-rise buildings. He plans to develop Power Building into “a first choice company to work for, and a place where people are cared for and opportunities are provided”.
Poens is married to Tania and has two sons, Stian and Martin.
October 2005
THESEN ISLANDS ‘CLEAN UP’ NATIONAL AWARDS
Knysna, 26 October 2005: Thesen Islands, the largest marina development in South Africa, has walked away with two major national awards in the construction and engineering industry. Situated in the Knysna Lagoon, this unique residential and lifestyle development was awarded the coveted SAFCEC (South African Federation of Civil Engineering Contractors) Presidential award for Best Project 2005 and the SAICE (South African Institution of Civil Engineering) award as the Most Outstanding Civil Engineering Achievement 2005.
The SAICE award recognised the consulting engineers on the Thesen Islands project, Arcus Gibb for a well-engineered civil project that portrays the art and science of civil engineering, presented to Thesen Islands in the category of ‘Technically Challenging Projects’.
The SAFCEC Presidential award was presented to Power Construction in recognition of the outstanding work delivered at Thesen Islands, particularly in terms of Environmental Impact, Marine Technical Challenges, and Job Creation.
Cited in 2000 by the (then) Deputy Minister of Environmental Affairs and Tourism, Ms RT Mabudahfhasi as ‘the most comprehensive, professional and detailed Environmental Impact Assessment ever undertaken in South Africa, including St Lucia and Saldanha Steel’’, more than ten years of environmental research by the CSIR and renowned environmental specialists preceeded the Thesen Islands development. The project was undertaken in an extremely sensitive environmental area where the old island, which was utlised in a way that created a source of environmental pollution, was transformed into the current environment where nature was not only restored, but is in fact thriving.
With its location in a tidal zone, it was an extremely challenging project technically. Various innovative environment friendly practises were introduced, including the construction of natural rock packed gabions that form the banks of the waterways.
In terms of job creation it was one of the first significant economic developments seen on the Garden Route, creating some 2000 jobs and injecting more than R100m per annum into the local economy.
Says Willem Scholtz, Managing Director of the Thesen Islands Development Company: ‘These two significant awards are the result of a huge amount of dedication and teamwork by all involved in this project since its inception, including the recipients of the award - Power Construction and Arcus Gibb. What makes the Thesen Islands project all the more unique, is that the fields of construction and engineering do not generally go hand in hand with the improvement of the natural environment. Environmentally speaking, Thesen Islands is the most exciting development yet seen on the Garden Route, in that it not only restored, but considerably enhanced and improved the surrounding natural environment.’
He continued to say that the Thesen Islands development is a commercially successful project that has provided environmental solutions, which have added value to the greater Knysna area through engineering excellence. ‘I believe I speak for everyone concerned when I say that we are all immensely proud of what has been achieved here. It is not often that we as developers have the pleasant experience of exceeding our own delivery expectations,’ he concluded.
The 90-hectare private estate is spread across 19 islands in the Knysna Lagoon. Eighteen of the islands are residential with six exclusive single home islands. The islands are surrounded by tidal waterways, linked by bridges, with waterfront properties offering private jetties and beaches.
The project is currently nearing completion, with all of the 522 freehold stands sold out, and the second phase of the Dry Mill Apartments, the final residential opportunity on Thesen Islands, have been released for sale. Construction of the first phase of the Dry Mill Apartments is progressing well and visitors can view the fully furnished show unit. The commercial and retail hub Thesen Harbour Town is located in the historical heart of the old timber factory area and offers a lively mix of speciality shops, coffee shops and restaurants. Some of these are already operational and more will be completed by the end of the year. An Environmental Centre is also planned, which will be open to the public.
November 2005
My maatskappy in Sy hande
Om sukses to behaal is een ding. Maar om dit volgens Christelike beginsels to doen is ‘n nog groter uitdaging.
God se manier beteken sukses. Dis skuins voor nege die oggend in Blackheath, ‘n industriele gebied in Kaapstad. In die grys baksteengebou wat dien as hoofkantoor van die land se grootste nie-genoteerde konstruksiegroep, glip die bestuurders van die twaalf maatskappye binne die growp in hul stoele rondom die lang konferensie tafel.
Dis tyd vir raadsvergadering.
Graham Power, besturende direkteur van die Power-groep van maatskappye en onlangs aangewys as Die Burger en die Kaapstad Sakekamer se Sakeleier van die Jaar, neem sy plek in aan die hoof van die tafel. Soos gewoonlik begin hy by punt een op die agenda: Skriflesing en gebed.
Power is ‘n Christen-sakeman wat nie skroom om sedert sy bekering in 1999 sy Christenskap in sy werkplek uit te leef nie. Die uitmuntende sakeman is ook international bekend as dryfkrag agter die Transformasie Gebedsdag geleenthede wat in 2001 op Nuweland onstaan het.
“Daar behoort nie ‘n verskil te wees tussen gesonde sakestrategiee en Christelike sakebeginsels nie. In ons maatshappy is dit een. God se lewensreels is goeie sakebeginsels,” se Graham.
Meer as 1800 mense werk vir die 22 jaar oue, veelbekroonde multimiljoenrand sakeryk. Die sleutel tot sukses? “Ons dra die gesondheid en toekoms van ons maatskappy aan God op. Solank as wat ons aktief daaraan werk om ons personeel geestelik te bemagtig, weet ons die maatskappy is in God se hande. Ons glo ons bestuur dit net namens Hom.” Se Graham.
‘n Sterk gemeenskapsfokus is een van die praktiese uitvloeisels van Power se Christelike bestuurs-etiek.
Graham het in 1984 ‘n stal op die plaas Elandskloof omgeskep in ‘n kantoor en sy onderneming daar begin. Vandag is Elandsklood ‘n opvoedkundige wegbreekoord waarheen kinders uit voorheen benadeelde gemeenskappe naweke op geestelike kampe gaan. Die kampe is deel van ‘n uitgebreide lys opheffingsprojekte in die gemeenskap waarby die Power-groep betrokke is, onder meer Die Ark in Mannenberg (‘n tuiste vir haweloses) en Beautiful Gate in Cross Roads (‘n heenkome vir straatkinders). Die groep het sedert 1998 meer as 40 000 huise gebou in gemeenskappe waarby hulle betrokke is.
Binne die maatskappy se vier mure is daar ruimte om Christenskap voluit uit te leef. By die hoofkantoor is daar ‘n gebedskamer ingerig wat weekliks oor etenstyd deur meer as ‘n honderd werknemers besoek word. ‘n Nuusbrief hou almal ingelig oor versoeke vir gebed. Graham woon weekliks voor werk saam met werknemers ‘n byeenkoms van ‘n selgroep by.
Hy glo sterk st maatskappy is sy bedizening. “Dit is ‘n opdrag waarmee ek geseen is en ek wil graag die verantwoordelikheid dra solank as wat ek kan.”
Hy toets deurgans sy sakebeleid aan etiese vrae, soos of dit wettig is en hoe sal die besluit jou oor jouself laat voel.” Die sterk sin vir etiek het hom twee jaar gelede die respek van die sakegemeenskap gewen toe hy openlik bely het dat hy geld onwettige landuit geneem het.
Soms is dit eensaam om ‘n Christelike sakeman te wees, erken Graham, want jy doen dikwels dinge anders as die norm. “In ons bedryf, waar tenders voortdurend uitgesit word, speel beinvloeding ‘n groot rol, iets wat teen Christelike sakebeginsels indruis.”
September 2005
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