Construction Management Guidelines - 2006

2006
G
guidelines
construction management good practice
Ground floor, Milner Place

32 Princess of Wales Terrace
Parktown, Johannesburg
Postnet Suite 240

Private Bag X30500
Houghton, 2041
Tel. (011) 274-6200

Fax. (011) 642-2808
www.shf.org.za
G U I D E L I N E S CONSTRUCTION MANAGEMENT
f
Foreword
When a social housing institution, co-operative or private property developer
has to decide on an approach for the delivery of housing, it must ask
itself which strategy fits best, given its own and the client’s developmental
objectives and constraints. One can deliver housing through any of the
following scenarios:
• Acting as building “client” or developer, but outsourcing the development
function on a design-and-build (“turn-key”) package basis to a
professional external developer
• Acting as developer, retaining overall management of the development

function in-house, employing professionals for design and supervision,
and using a main contractor for the actual construction work (“design
by employer” method)
• Acting as “main contractor”, employing sub-contractors and/or

community-based labour to carry out the actual construction work;
responsible for supervising and controlling the construction process and
activities, including all the required resources
The final choice of the approach will be determined by factors such as:
• The internal skills available and capacity to manage the respective options
• The extent and cost of external expertise available to assist in managing
the various options
• Developmental objectives (often in conjunction with sponsor and other

stakeholder requirements) such as local economic empowerment and
availability of local skills
• The risk “appetite” of the social housing institution, co-operative or

private property developer
These guidelines focus on the scenario where a social housing institution,

co-operative, private property developer or contractor acts as a “main
contractor”, taking on all the attendant risks and responsibilities that
normally accompany the main contracting function. A main contractor
plans, organises, co-ordinates, controls and leads activities on site during
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S H F BP5 2006
the actual construction process, including the management of resources,

from the date of taking possession of the site until the final handover of
completed units to the client.
The guidelines take into account the decisions and actions that need to be
taken during the construction planning and implementation phase, as these
have an impact on the effectiveness of the hand-over of stock to the client,
as well as the future management and maintenance of stock.
The Social Housing Foundation is confident that this guide will be widely
used and will assist the development and growth of those social housing
institutions, co-operatives, private property developers and contractors
acting as “main contractors”.
Brian Moholo
Managing Director, Social Housing Foundation
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Note: The topics of property development and property management are
covered by extensive existing literature and guidelines developed
by others. For the convenience of users of this manual, brief
introductory notes on important general aspects of the property
development and construction processes are given, but these
should be used in conjunction with the more comprehensive
existing materials contained in other publications such as:
• The SHF’s Social Housing Institutions Operations Manual (together
with accompanying training materials)
• SHF Best Practice Booklets
• Manuals and guidelines produced under the Support Programme
for Social Housing’s Capacity-Building Programme
• Manuals and guidelines produced by NASHO
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Acknowledgements
The authors gratefully acknowledge the contribution to this volume by others. Parts
of the text are based on consultation with, or have been borrowed from the work
of, the following people and organisations:
• The Social Housing Foundation (SHF)
• The Support Programme for Social Housing (SPSH)
• The Construction Industry Development Board (CIDB)
• The Urban Sector Network (USN) and its affiliates, in particular Planact and the
Development Action Group (DAG), and Afesis-corplan
• CSIR BOUTEK
• The Department of Construction Economics at the University of Pretoria
• Social Housing Institutions across the country, especially the eMalahleni Housing
Institution
• The Masisizane Women’s Co-operative, and Andrew Moore of Rooftops
Canada
• The General Motors SA Foundation (previously Delta Foundation)
The authors nevertheless take full responsibility for any errors that may remain.
Social Housing Foundation

Postnet Suite 240
Private Bag X30500
Houghton, 2041
Tel: +27 (11) 274-6200

Fax: +27 (11) 642-2808
www.shf.org.za
Edited by Wordsmiths
Design and Layout by MANIK Design Studio
DISCLAIMER
Great care has been taken in the preparation of this document, and the information contained herein has been derived from sources believed
to be accurate and reliable. The Social Housing Foundation does not assume responsibility for any error, omission or opinion expressed, or for as
investment decisions based on this information.
This publication was made possible through support provided by the Norwegian Embassy
Copyright © Social Housing Foundation 2006
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Contents
scope and purpose
page
What you will find in these Guidelines 7
housing project development phase

Housing Project Development Phases – where do these
Guidelines fit in? 8
why?
Why is good construction-management practice important? 9
how?
How should the entity behave when acting as a “main” contractor? 10
the construction process

The construction process 11
What is construction? 11
What are the main objectives of a construction project 11
What does a main contractor do? 11
Composition of a construction team 14
Common risks that need to be managed by the main contractor 15
Factors that determine success in construction 19
How can the entity learn more about being a contractor? 20
Decisions that the entity acting as contractor should

be involved in before construction 21
Choice of construction technology (structure and finishes) 21
Planning for execution of work 26

Deciding on the implementation approach and the construction methodology 26
Site establishment, temporary works and services, general management
requirements (preliminaries) 34
Preliminary cost estimates vs. detail cost estimates 36
Estimating, cost estimating, rates, pricing and costing 36
What is included in a main contracto’s price build-up? 37
Building up rates and building price from first principles 39
Estimating costs of material, labour and plant 39
Planning and programming of the works 58
Executing the work 70

Site layout and organisation 70
Material supply and management 74
Management of labour 90
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page
Management of plant, tools and equipment 92
Managing sub-contractors 94
Required tests, inspections, approvals and certificates 101
Health and safety 105
Security 107
Contract administration 107
Construction cost management 110
Cash-flow management (income and expenditure) 113
Construction finance (operating or working capital) 114
Community-based construction 116

Reasons for community involvement in development projects 116
Community-based construction – the “development team” approach 116
Training 121
Training objectives 121
Planning and preparing for training 121
Who should be trained? 121
Pre-construction training 122
“Hard” building skills training 123
experiences
The experiences of some entities acting as “main” contractors 124
Wattville/Tamboville – low- to medium-density housing

and community facilities project 125
Construction of the houses 125
Organisation of the contruction 126
Construction of the community facilities 132
Masisizane Women’s Housing Co-operative, Midrand, Gauteng 134

Introduction 134
Organisation of the contruction 135
General Motors SA foundation – medium-density housing

in the Eastern Cape 138
Missionvale Community Housing Initiative and Sakhasonke Village, Port Elizabeth 138
Badiri House, Hillbrow (high-rise inner city refurbishment) 139
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What you will find in these Guidelines
The purpose of the guidelines is to assist users in employing good
construction management practice in the construction of low-
and medium-density housing projects.
This guide is intended for use in the pre-construction and construction phases of
housing development, by any of the following parties:
• A social housing institution acting as a “main contractor”
• A co-operative acting as a “main contractor”
• A private property developer acting as a “main contractor”
• A contractor acting as a “main contractor”
• Service providers to any of the above (support organisations, technical advisors,
professional teams and subcontractors)
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Housing Project Development phases
– where do these Guidelines fit in?
The housing project development process can be divided into the following broad
phases:
1. Project initiation and validation phase - Conceiving the development idea or
concept and initiating the project, including gaining control of a site that suits
the idea
2. Pre-design feasibility or development appraisal phase - Preliminary studies
are conducted to determine if the idea is viable, and whether to proceed
3. Pre-contract detail design development and technical documentation phase
- Extending the appointment of professionals for further work stages, refining
and finalising designs, conducting cost estimates and feasibility studies, preparing
technical documentation, obtaining municipal approval to start building,
initiating marketing (if applicable), and securing funding
4. Construction procurement or tender phase – Deciding on tender and
contracting strategies and options, calling for proposals or tenders, adjudicating
tenders, and awarding and signing construction contracts
5. Implementation or post-contract construction phase - Managing the actual
construction process from site handover to the contractor(s) to taking on the
completed units, and closing out the process financially and administratively
These guidelines deal with Phase 5 above, from the

perspective of managing the physical process on site as
a main contractor rather than managing it as part of the
development function.
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Why is good construction
management practice important?
Good construction management practice is essential in maintaining efficiency, cost-
effectiveness and control on projects. This, in turn, helps to maintain and protect
projected profits, long-term financial viability, integrity, good reputation and good
customer relations. Effective construction management, therefore, is an essential tool
in ensuring the sustainability of the construction entity, together with marketing and
adequate capitalisation. Other reasons for practising good construction management
include the following:
• Ensuring the most efficient and effective use of scarce and costly resources such
as money, people’s time, materials and equipment in producing affordable
housing to people with low income
• Maintaining high standards of quality and workmanship to ensure that
beneficiaries live in pleasant and well-functioning buildings; and managing
entities enjoy low-maintenance requirements and expenses for the ultimate
benefit of paying occupants
• Maintaining high standards of health and safety on building sites
• Setting an example and being a role model for aspiring entrepreneurs and
development organisations in the community
• Building a reputation for dependable service (on time, within budget, and of
good quality) with clients, communities and funding agencies
• Building trust and good relations with suppliers, subcontractors, professionals,
and support organisations, which leads to smoother running of projects with
fewer problems, delays and disputes
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h
How should the entity behave when
acting as a “main contractor”?
Where an entity acts as developer only, it will normally employ professional consultants
and a main contractor to do the design and construction work respectively. In this
case, design risk and accountability rest with the design team, while construction
risk lies with the main contractor.
Acting as both developer and main contractor often places an entity in a position in
which it is important to draw a clear line between the two responsibilities, and to
organise its operational structure or project in such a way that accountability resides
where it appropriately belongs. This could mean, for instance, that the external design
team reports to those members or employees within the entity that are responsible
for managing the development process, and that construction-related activities and
resources (subcontractors, suppliers and labour) are managed by other members or
employees of the entity responsible for managing the construction process.
Establishing and maintaining differentiated functions and accountabilities becomes

difficult where some or all of the same people from the organisation are involved
in both functions (as is often the case). It is advisable to draw up function charts
and organograms before starting a building project, so that staff who fulfil dual or
multiple roles can clearly differentiate between the actions required for management
of the development process on the one hand, and management of the construction
process, on the other.
Acting as a main contractor only requires an entity to focus on the management

of construction process. This also requires an operational structure to be in
place, in order to clarify the roles and responsibilities of each of the members or
employees.
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The construction process
What is construction?
Construction can be seen as the conversion of “raw” resource inputs into defined
functioning outputs, by means of a managed process.
More specifically, construction is the use by a contractor of supervised labour, and

appropriate plant, equipment and other constructional aids, to process and assemble
materials and components on site (sometimes partly off site), according to design
and specifications, into a completed functioning building.
What are the main objectives of a

construction project?
The main objectives of each construction project (based on the principles of project
management) are to erect the building or facility in accordance with the design and
specifications, with the most effective use of resources and control of risk, and to
complete it:
• within the budget (allowable cost)
• on time (within the specified and agreed contract period or legitimate extensions
thereof)
• to an acceptable and agreed standard of quality and workmanship
The above are the “technical” objectives of a project. There are usually other “softer”
objectives as well, such as achieving buy-in through participation, capacity building,
skills transfer, and promoting job creation and local economic development.
What does a main contractor do?

Acting as the main contractor on a building project involves the following:
• Interpreting the project drawings, specifications, tender and contract documents,
in order to fully understand the project requirements, risks, and legal and physical
conditions under which it will have to be carried out
• Using the above interpretation to:
• estimate the likely cost (for tendering, budgeting and cost-control purposes)
• determine and allocate resources to the different phases of the work
• plan a functional site layout (placing of material stockpiles, storage,
administration and service facilities, securing entrances and ensuring efficient
movement of vehicles)
• plan and schedule the execution of the work, establish quality control
measures, and determine own working capital and cash-flow requirements
for the work to be done
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S H F BP5 2006
• Deciding, as part of work planning and resource allocation, what work to

do in-house with own core personnel, and what work to outsource to sub-
contractors
• Calling for quotes and tenders from suppliers, sub-contractors and plant-hire
companies
• Negotiating prices and contracts with these service providers
• Where required, obtaining completion guarantees in favour of the employer
or client
• Organising and paying the premiums for all the necessary insurances on a
building project
• Ensuring compliance with industrial health and safety regulations and requirements
on site, at workshops and on other premises, including providing safety clothing
to workers and visitors; and making sure plant, equipment, temporary works
and installations are regularly inspected and serviced
• Drawing up and executing environmental site management plan, where
required
• Ensuring compliance with employment legislation and procedures, paying workers
fairly and on time, and generally managing labour relations in the work place
• Submitting all required statutory returns (taxes, UIF, local authority levies)
• Taking custody of, and protecting for the duration of the contract all benchmarks,
datum levels and boundary pegs pointed out by the employer or principal agent
at the beginning of the contract
• Arranging all temporary service connections required for effective execution of
the work, for example, electricity, water, and sewerage
• Fencing the site and arrange necessary security
• Providing (hired or owned) all temporary site facilities, such as storage huts,
worker ablutions, a site office, plant such as mixers or batching plants, and tower
cranes where required, including transporting to site, erecting, maintaining,
dismantling and removing on completion
• Calling for inspections by municipal building inspectors, project engineers,
NHBRC or bank inspectors, of work such as foundation trenches, reinforcing
steel, and sewer lines before covering them up
• Arranging for all required tests, for example, making and submitting to a laboratory
concrete crushing strength cubes, and supplying the results to the engineer to
prove compliance with specifications
• Arranging for on-site re-measurement of all provisionally measured work before
covering it up, to ensure reimbursement of actual expenses incurred
• Planning and programming the execution of the work on a daily, weekly, monthly
and overall contract-period basis
• Planning and co-ordinating ordering, delivery, receipt, storage, security,
protection, and safe handling of materials
• Co-ordinating the work of different sub-contractors (and managing any conflict
between them)
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• Calculating and submitting claims for interim progress payments from the
employer and/or funders for own work completed, and ensuring sub-contractors
do the same
• Practising continuous internal costing and cost control
• Keeping a site book for instructions, as well as a drawing-receipt register to
ensure that work is being carried out in accordance with the latest drawings
and/or instructions
• Assisting with pricing variations and site instructions with cost implications
• Keeping a site diary and other records (covering rainfall, incidents, number and
categories of personnel, plant and equipment on site)
• Submitting well-motivated claims for extras and requests for extension of the
contract period
• Hosting site meetings
• Cleaning and protecting all completed or partly completed work, removing rubble
regularly, and maintaining a clean, neat and safe building site
• Generally maintaining efficient administration of the contract, both on and off site
• Managing risks related to the construction process
Costruction Management Triangle
Quality
Cost Time
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S H F BP5 2006
Composition of a construction team

The diagram shows the composition of a typical construction team that needs to be
managed by the main contractor (some of the team members are employed directly
by the main contractor).
Approved plans
Local authority
Permanent service
connections
Service connections
Subsidy
agreement
Loan Employer Professional services
Temporary
agreement
Funder (s) Professional

team
contract
Building
via employee
(no ont o ent

Draws paid
t ag
t)
co rol
s
ac
ta
ntr
Ac
Inspecti
c
ons
Participates in planning
Pay Main
Project
Orders
overheads
contractor Payments
in
Adm por t
su p
Head Managers
office Ad
sup min
por
t
Supply
Site Materials
suppliers
Su
pp
ly
Plant-hire
Site establishment companies
provides
Site admin and Community

management
s
ide
ov
pr
ides
Recruit, supervise,
Labour
prov
pay wages
provides
Contract, co-ordinate
supply materials,
Labour-only
pay for work done sub-contractors
Contract, co-ordinate, Supply & fit

pay for work done sub-contractors
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Common risks that need to be managed by

the main contractor
The main contractor should at all times be aware of all the risks involved. Below is
a summary of the most common risks that face main contractors in the execution
of construction contracts. This summary serves as a checklist for the construction
manager, to make sure the most common risks are being taken into account, both
during the planning and the execution phase.
Risk! Under-performance of in-house staff with

regard to:
• Management of the process, especially controls and monitoring
• Acquiring necessary competencies and skills
How to counter:
• Putting in place clear HR and personnel-management policies and procedures
• Selecting competent staff
• Providing training and support (identifying real training needs is very important here)
• Monitoring progress, conducting appraisals and providing counselling where
appropriate
• Having good contracts with performance clauses
• Using a “stick” and “carrot” system (sanction and incentives)
• Taking care with succession-planning
Risk! Under-performance or non-performance of

worker teams and sub-contractors with regard to:
• Completion of the works
• Sub-standard quality of workmanship and materials supplied
• Delays and late completion
How to counter:
Non-completion of the works:
• Obtain, where possible, performance guarantees from sub-contractors issued
by a bank or insurance company. This usually involves the main contractor
providing back-to-back payment guarantees to the sub-contractor. With small
and emerging sub-contractors this will, however, in many cases not be possible,
and the contractor will have to rely on proper selection, regular and fair payment,
and hands-on management to ensure sub-contractors perform
Sub-standard quality of workmanship:

• Evaluation and selection of sub-contractors with known reputation for good
work (check references – do physical checks of work rather than just telephonic
confirmations)
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• Provide training and mentoring

• Provide good supervision
• Provide clear documentation (drawings, specifications, site instructions)
• Provide samples. At the beginning of the contract, for instance, bricklayers must
build small sample face-brick walls somewhere on site displaying an acceptable
and agreed standard. These samples can then be used as references for all
permanent face-brick work. This will prevent arguments down the line about
what constitutes an acceptable standard
• Do not pay for defective work until it has been rectified. Remember that retention
is a reserve for fixing possible latent defects, and not for covering the cost of
visible patent (current) defective work
Delays and late completion:

• Perform evaluation and selection as before
• Levy penalties for late completion
• Insist on realistic and detailed programmes of work
• Monitor progress regularly
• Order materials timeously and ensure work is not delayed because of materials
shortages on site
• Re-schedule work when necessary. For example, it is good practice to wait until
roofs are up before plastering walls. If the roof is delayed, however, it may be
necessary to plaster in the meantime, to keep to the programme, as long as the
plaster is then protected against drying too quickly (causing cracks) by spraying
it with water or covering it with plastic sheeting
Risk! Under-performance of suppliers with regard

to:
• Late delivery of materials
• Unavailability of materials
• Quality of materials
• Price fluctuations
• Short deliveries
How to counter:
• Choose reliable suppliers
• Ensure timeous ordering of materials
• Have formal ordering procedures (negotiate, quote, written order, check
deliveries and delivery notes) with a proper follow-up system
• Negotiate, as far as possible, fixed prices for the duration of the project
• Get bricks delivered in pallets rather than tipped
• Specify standard materials of known quality where possible
• Always try to obtain physical samples of materials and check their quality before
ordering
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Risk! Damage to and/or loss of materials and

equipment through:
• Robbery
• Pilfering and fraud
• Negligence
• Neglect (no proper storage, lack of maintenance)
• Incompetence or lack of training in proper use and handling
How to counter:
Theft on site:
• Take out insurance
• Provide safe storage
• Maintain site security
• Have proper control systems and procedures for receipt, issuing and checking
on the usage and wastage of materials on site
• Do not bring valuable materials to site or instal them too early (before that section
of the works can be locked securely)
Waste and breakage:

• Training and supervision of staff to ensure careful and responsible handling
• Monitor consumption against allowances
• Issue just enough for specific tasks to site teams at a time
• Reduce handling to a minimum by judicious placing of stores facilities and
planning of the work
Responsibility for materials:

• On site: Make sub-contractors responsible and accountable
• Off site: Inspect, obtain cessions of ownership and proof of insurance (preferably
do not pay for materials off site)
Risk! Unavailability of working capital at the right

time (cash-flow problems) due to:
• Delays in subsidy and loan draw-downs
• Poor cash-flow management
• Unexpected expenses not provided for in contingency allowances
• Problems with overdraft and credit facilities
How to counter:
• Build up and keep some cash reserves
• Secure overdraft facilities while things are going well, not when you are already
in crisis
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• Comply with funder requirements: Plan work so that achieving payment

milestones, if any, coincides with your cash requirements (dates for paying wages,
supplier accounts, etc); call for inspections timeously; ensure procedures are
followed and that paper work is one correctly
• Push for payment – it is usually necessary to follow-up on processing of payments
personally, and to put pressure on the people doing the processing
• Monitor cash-flow requirements continuously, and make arrangements for
obtaining payments or credit facilities in good time
Risk! Industrial action and other disputes:

How to counter:
• Ensure compliance with legislation and agreements
• Foster good human relations
• Put in place fair practices and clear employment criteria
General risks:
• Inexperience of workers
• Inadequate security on site
• Vandalism
• Dealing with latent defects
• Bad weather
• Breakdown of co-ordination between trades (and resulting disputes)
• Underestimation of resources, cost and time required for the work
• Disputes around materials lost through excessive wastage, theft, damage, wrong
setting out of works, and replacement of defective work
• Working with large amounts of cash on site and in transit (wages) – this is to be
avoided as far as possible by opening bank accounts for all service providers and
paying via electronic funds transfers (EFTs)
• Conflict among sub-contractors or in the community regarding who should get
the work and be part of the construction team
• Interference by local politicians (or would-be politicians) and other vested
interests and powers
How to counter:
Most of the above are dealt with in these Guidelines. Some specific advice is as
follows:
Latent defects:
• Put in place a retention/construction guarantee
• Get NHBRC registration where applicable
• Make sure there is adequate supervision
• Insist on proper specifications and designs
• Be aware of the law and your legal rights
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Bad weather:
• In your schedule, allow for work stoppages caused by the kind of weather
conditions to be expected in accordance with the season
• Plan a construction sequence to ensure, for instance, that roofs are up as soon
as possible for phases completed during the rainy season
• Protection – ensure, for instance, that storm water will not flood foundation trenches
or other parts where work must proceed in order to stay on programme
Inadequate co-ordination of trades:

• Ensure planning, organisation and monitoring
• Clear delineate areas of responsibility in contracts and works descriptions
• Provide complete drawings for each trade
Factors that determine success in construction

Success in construction depends on:
• The organising and leadership ability of those in charge (project manager,
construction manager, site agent)
• The planning and allocation of adequate resources at the right times
• The accuracy and timely availability of professional documentation and
guidance
• Field experience
• Planning
• Realistic programming of the work, regular monitoring of progress, and corrective
action (including re-programming, additional resource allocation, etc.) when
deviation occurs
• Timely ordering of materials and labour
• Ability to motivate the trades
• Effective co-ordination of trades
• Insistence on quality
• Maintaining good labour relations
• Coping with unforeseeable factors (for example, inclement weather, shortage
of materials)
• Meeting critical deadlines
• Satisfying the local authority inspectors and the NHBRC
• Support of the developer/employer and the professional team
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How can the entity learn more about being a

contractor?
Simplistically, construction appears to be a matter of putting materials and
components together according to a drawing, with a team of workers, tools and
equipment. Proper construction, however, requires a combination of management
skill (planning, organising, co-ordination, leadership and control), knowledge, and
experience in the fields of technology, finance, law, commerce and human relations.
Construction should not be underestimated because of unregulated entry into the
construction market.
This document provides starter guidelines only. If the entity is involved in large-scale
and continuous construction as a contractor, it should send staff members on training
courses offered by private colleges, universities and technical universities/technikons,
and other organisations in the industry; subscribe to technical journals (check with
Brooke Patrick Publications for available titles); and acquire some good books on
the subject.
Authors who deal with building construction as well as management aspects, include:
Calvert, Chudley, Davis, Langdon and Everest, Everett, MacKay, Nunnally, Seeley, Harris
and McCaffer, the Mitchell’s Building Construction series, Spence Geddes, Willis, and
a very readable series of publications by the British Aqua Group. Locally, the CSIR’s
BOUTEK division and its predecessor, the National Building Research Institute (NBRI),
published over the years many useful papers and booklets with good practice guides. Most
university libraries keep copies of these, or you can order them from the CSIR direct. The
International Labour Organisation (ILO), with support from Ntsika Enterprise Promotion
Agency, the Black Construction Council, and the Department of Public Works, also
developed a series of manuals for the Contracting Entrepreneurial Training Programme
(CET), and it may still be possible to obtain copies from one of the promoters.
The Concrete Masonry Association (CMA) based in Midrand, Gauteng, produces

handy booklets on how to build simple structures, and on the use of concrete
masonry building units (bricks and blocks). The Clay Brick Association does the
same for the use of its member’s products. Building-materials supplier, Cashbuild,
and the Urban Foundation published a booklet called Home Builder’s Handbook.
Many materials manufacturers (of roof sheeting and tiles, cement, paint, ceramic
tiling and other materials) provide technical brochures to assist in the proper
measurement and use of their materials. These are often obtainable from the larger
building supply stores. It may also be worthwhile (for a fee) to subscribe to a good
product catalogue library such as Archi-text.
20
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Decisions that the entity acting as
contractor should be involved in
before construction
Choice of construction technology (structure
and finishes)
Introduction
Although design and specification is normally the domain of architects and engineers,
contractors can play a useful part in giving practical advice. Where the entity acts as
contractor, it is imperative that they are actively involved in design and specification
decisions from the start, in order to ensure:
• Cost-effective construction and an affordable end-product
• Low-maintenance facilities
• Socio-economic and empowerment objectives are promoted through the choice
of construction technologies to be employed, for example, labour-based rather
than plant-based construction
It is always a challenge for an institution developing any form of social housing to balance
its primary objective of providing quality affordable accommodation, with the secondary
objectives of job creation, empowerment and local economic development. Each institution
must examine its priorities and set its own criteria in this regard, and the contractor can
guide the decision-making parties on how to achieve their objectives, by distinguishing
between labour-based, labour-intensive and community-based construction.
The contractor should also share its experience with regard to technology required in
various designs and specifications, and the practicality of the proposed technology to
be used. Various products (with different specifications) are available on the market.
The contractor should be open to sharing information with regard to the quality of the
product or the practicalities pertaining to the applications of such specifications.
Labour-based, labour-intensive and community-based

construction
Labour-based construction is different to labour-intensive construction.
• Labour-intensive construction implies the use of as much labour as possible. In
practice, it is usually implemented by substituting people for machines
• Labour-based construction, however, aims at changing the technology employed
in the construction methods, thereby providing employment and training
opportunities for both unskilled and semi-skilled labour. The labour-based
approach to both the design and construction of engineering services enables
the unskilled worker to instal the complete service with minimal reliance on
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S H F BP5 2006
plant. The emphasis in labour-based construction is on employment, training

and development, while ensuring that cost and quality compare with those of
plant-based construction. Construction plant and hi-tech tools are used only
where appropriate
• Labour-based construction benefits a community by creating employment and
facilitating the acquisition of technical skills. If, however, the community also
participates in the administration and management of the project, the activity
becomes community-based
• Community-based construction in a sensitive and non-imposing manner aims at
the use of labour-based projects to promote the emergence of local entrepreneurs
who, with adequate technical, commercial and financial support and instruction,
could in due course, become fully fledged contractors
Technical considerations
Foundations
Conventional strip footings under walls, and reinforced pads or bases under columns
in framed structures can be labour-intensive (excavations and concreting by hand,
with or without the aid of mechanical excavators and concrete mixers).
Engineers often specify integrated floor and foundation raft systems for stand-alone
houses, especially because of their effective performance in poor soil conditions
and the speed at which they can be built. Specialised mechanical excavators are
normally used for the narrow ribs or beams in the ground. These could also be
dug by hand, but this is not very practical. Some foundation raft companies have
initiatives where they rent out equipment and provide training and assistance to
local teams or emerging sub-contractors to construct the rafts.
Walls
Conventional brick or block walling is labour-based (even more so if the bricks or
blocks are manufactured on site), and the most familiar method to bricklayers. Single-
skin block walls, although quick to erect and the cheapest option, are problematic
with regard to water penetration. The structural integrity of the walls can also be
compromised if the blocks are not built with properly filled beds and joints. Fixing
of window and door frames and roof anchors, especially if not detailed correctly,
can also be problematic.
There are countless patented walling “systems” on the market, from so-called “dry-
stacking” blocks (interlocking blocks with no mortar beds and joints required) to
complete composite wall panels pre-fabricated on site or in a factory off site.
Competent technical advice (and “market” feedback) should be obtained before

purchasing any system or product. Beware of products without Agrément or MANTAG
or NHBRC approval. However, even with such approval, discuss with an architect
and/or engineer the suitability of such product for your purposes, and check its
acceptability to the end-user public.
22
Wall finishes
Internal wall finishes should provide good cover (plaster basis with paint) and the
paint should be washable (although this is more expensive) in order to reduce the
maintenance requirement of the house or unit once occupied. External finishes,
within the bounds of affordability, should provide adequate resistance to water
penetration, should be durable and should have low maintenance requirements.
Wall finishes should provide attractive facades.
Face brick is ideal from a maintenance point of view, and is not much more expensive
than a good plaster-and-paint finish. When used in double-skin construction, and
if bought from a reputable manufacturer, face bricks offer adequate resistance to
moisture absorption. Face bricks vary widely in cost and quality, and should be
carefully selected and incorporated into designs that make aesthetically acceptable
use of them – remember this cannot be changed later, as with paint colours. It is
also more difficult to repair damage (matching later batches of bricks, and colour
of mortar in joints), and to clean face-brick walls defaced by graffiti.
Plaster and paint may offer more variety and scope for re-decoration, but periodic
re-painting will be required. This could become quite expensive in taller buildings
because of the need for scaffolding. If this option is selected, use good quality
externalpaint, preferably thicker-textured or elastic types of coatings that will cover
minor cracks. Usual practice is to re-paint every five or six years.
Plaster and paint
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S H F BP5 2006
Some experts recommend, however, that the first re-painting be done within 3 years
of completion. This “consolidates” the painted surface after the initial reactions with
oxygen, solar radiation and moisture, both inside the structure and in the atmosphere,
and makes it possible to stretch subsequent re-paintings to longer intervals, say up
to seven or even nine years.
Cement-based paints with mixed-in pigments such as “Cemwash” or “Earthcote”

provide attractive and durable options, and some suppliers provide equipment and
training on site, so the finishes can be applied by local labour.
Certain patented wall coatings claim to last the life of the building (“Marmoran”,
“Gamma-Zenith”), but these are expensive, and if there is movement or moisture
in the underlying structure, there could be expensive-to-fix problems such as
discolouration, cracks and spalling.
Structural floors (slabs) in multi-storey buildings

There are two basic types of slabs: a solid in-situ concrete slab and a composite slab.
The composite slab consists of a pre-fabricated component placed to span from

support to support. This is covered with an in-situ concrete topping and is used for
simple rectangular single-span structures. The composite slab is often the quickest
and most cost-effective solution, provided there is access for a mobile crane for
off-loading and placing the heavy pre-cast beams or “planks”.
Another type of composite slab makes use of concrete hollow blocks packed in
narrowly spaced parallel rows on a flat steel deck, and covered in in-situ concrete
to form a ribbed structure. The blocks are light enough to be handled manually, and
therefore provide employment.
For shapes that are more irregular, and smaller slabs, it is more practical to cast an
in-situ solid slab. Building solid slabs is also a more labour-intensive method. Always
get quotes for both options and discuss the options with your engineer before
deciding on the type of slab.
Roof structures
Conventional trusses can be made on site in a jig (which provides employment),
but this can be time-consuming, because production is limited by the number of
carpenters, jigs and amount of space available. Truss components are first nailed
together, and then bolted tight once erected. This can time-consuming and labour-
intensive. This method also requires more cutting on site and increases the amount
of material wastage.
The other option is to buy engineered trusses from a specialist who provides the
design, supply and, if required, erection as well. These trusses are of better quality,
and are lighter than those made on site. Lightweight galvanised steel truss systems
can also be considered, pending the effectiveness in certain applications.
24
Roof covering
You will need to choose between concrete and clay tiles, or long-length profiled
metal and fibre cement sheeting. The user public seems to prefer tiles, although
pre-painted corrugated sheeting appears to have made a comeback. Tiles require
steeper pitches (meaning more brickwork in gables), and more support in the form
of trusses and battens spaced closer together. Profiled sheeting can be put on flatter
pitches, and can span longer distances without support. On the other hand, they
require more edge treatment (fascias and bargeboards) to appear acceptable, can
make rooms very hot if there is not an insulated ceiling underneath, and could
be prone to leaks if the pitch is too flat, or if there is poor workmanship during
installation. Maintenance-wise, there is little difference between different roofs
under normal circumstances. In areas with high winds, tiles may be damaged from
time to time, and in corrosive industrial or coastal atmospheres, metal sheeting is
prone to rusting, even if it is pre-painted.
Flooring
Carpeting and vinyl flooring wear out and are easily damaged by occupants. They
will have to be patched and replaced several times during the lifetime of a building.
Ceramic tiling is more durable, but also costs more. Life-cycle cost comparisons should
be made, where the estimated escalated costs of each option over the lifetime of a
building or occupancy period (initial, periodic replacement, cleaning and maintenance)
are discounted to a present value and compared. (If you do not know how to do this,
ask a quantity surveyor to help.)
Windows
Steel window frames are most commonly used because they are strong, durable, come
in many standard sizes and shapes for every application, and are readily available at
competitive prices. With a bit of preparation and training, they can also be manufactured
on site or in the local community. They do, however, require good protection against
rust by periodic re-painting, which is a tedious and costly exercise.
Wooden windows, although fashionable and attractive, are expensive, easily

damaged during construction, and require regular and expensive treatment against
ultra-violet light (the sun) and moisture penetration.
Aluminium and PVC windows are attractive and durable, with virtually no
maintenance requirements, but they are expensive.
25
S H F BP5 2006
p
Planning for execution of work
Deciding on the implementation approach
and the construction methodology
Introduction
Construction of single-storey buildings is usually quite simple. Acting as contractor
on these projects requires fewer resources and less skilled labour. Unless the site is
geologically suspect, only rudimentary structural design of foundation may be required,
providing the roof construction is properly certified in terms of legislation pertaining to
roof design, erection and inspection (notably for prefabricated timber trusses).
Construction of multi-storey buildings significantly increases the complexity of

operations. It requires more resources (plant, constructional aids such as scaffolding and
form-work, and vertical transportation equipment such as hoists and cranes). Higher
levels of skills from the contractor and sub-contractors are also required. Programming
the sequence of work is more complex. Allowance must be made for propping and
back-propping of slabs, which prevents the commencement of certain building work
immediately after the casting of slabs. Final finishing is done from the top floors down,
to avoid damaging or dirtying completed work on the lower floors.
Who does what?

The entity acting as developer will assemble all the pre-construction parts of the project,
such as determining the nature and scope of the project, securing land and funding, carrying
out the social survey and market assessment, and initiating the marketing itself. It may then
engage contractors on either a “design and build package”, or the “design by employer”
method, where the professional team works for the entity, and a main contractor carries
out the actual construction work without any responsibility for design.
In a situation where the entity acts as “main contractor”, however, as is dealt with
by these Guidelines, there are many issues to consider in addition to the normal
development functions. Before construction starts, the entity as contractor will have
to carefully study the drawings, specifications and bills of quantities; consider site
location and conditions in order to work out the approach to implementation;
and draw up lists of work to be done and resources that will be needed for each
phase (labour and skills requirements, plant and equipment and constructional aids
needed). Aspects to be decided on include the following:
Which approach to physical implementation is best suited to the type and

size of project? Should we use sub-contractors rather than directly employed
labour, or is there a need to employ local labour/community-based construction
teams directly for the main part of the work such as brickwork, plastering,
roofs, other carpentry work and tiling, only using sub-contractors for specialist
work such as plumbing and electrical work and perhaps glazing?
26
Guideline:
If the entity acts as contractor only occasionally, for instance tackling
one project at a time as the opportunity for new stock-development
arises, it is best not to employ full-time staff, but to do all the work
with sub-contractors, managed by a professional construction
manager under contract. Clear allocation of responsibilities, careful
co-ordination between different trades, good communication, and
good monitoring and reporting systems and procedures are very
important. If the entity is going to build continuously for a long time,
for example under an extended stock-development programme, it may
be prudent to employ a small full-time core team of skilled people and
general workers who can do basic work that sometimes falls into the
gaps between different types of sub-contract work. Examples would
be excavating and concreting foundations before the brick-laying sub-
contractors arrive. Instead of a full-time team, the entity could also
train and employ community-based labour teams to perform this kind
of work, from the areas in which projects are carried out.
How will we manage the construction work? Should we employ our own
full-time in-house contract manager and clerk of works; should we engage
the services of a professional construction manager; or should we extend the
brief of the normal professional team to include organising, co-ordination and
supervision of the various labour teams and/or sub-contractors on site, while
we, as main contractor, provide plant, materials and working capital?
Guideline:
In the early stages of its existence, the internal priorities of an entity
are to have a competent CEO and financial officer or manager in place,
with some support staff. The number and size of construction projects
determines whether a full-time in-house construction manager is
necessary. For projects of up to 200 units, the cost of a full-time in-
house construction manager or project manager is not justified, and
the CEO or operations manager will take responsibility for managing
the construction process, with outside help from stakeholders such
as provinces, the SHF, the NHFC and others. Although the entity can
make do in this way for a while, the CEO’s attention tends to shift
to dealing full-time with strategic management and internal office
administration.
As the number of construction projects (and units under construction)

grows, it becomes imperative to appoint a full-time construction or
project manager who will be responsible for the management of one
or more projects simultaneously. In this case, it may also become
necessary to appoint site agents (who are responsible for hands-on
management of construction work, and are based on site) who report to
the project manager or construction manager. It is usually more cost-
effective to appoint such a person on a fixed-term contract basis.
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S H F BP5 2006
Should we opt for labour-intensive/labour-based construction as described

earlier (possibly resulting in a longer construction period and some quality
issues), or a more mechanised approach with greater use of plant (which
is more cost- and time-efficient, and results in better quality of certain
elements)?
Guideline:
The entity should aim for maximum employment without sacrificing
production, quality and affordability. For example: compaction of filling
under floors can be done by hand (if the areas are relatively small),
however, it would be more economical and appropriate to compact larger
areas such as parking areas with small petrol-driven compactors, which
also make the level of quality of compaction much easier to achieve.
Plate-compactor for compaction of large Bomag roller for compaction of large areas Wacker for compaction
areas of small areas and narrow
widths
What is the most effective horizontal transportation method on site for different
sites and different types of materials – wheelbarrows, dumper trucks?
Guideline:
Moving materials around by wheelbarrow is labour-intensive and works
well on smaller sites. For larger sites, it slows down production, and
increases the labour requirement beyond cost-effectiveness. It may
be better to hire a dumper truck or two for bulk carting of materials
from stockpiles to the area of work, and to use wheelbarrows only for
the short distances to the final position. A very useful piece of plant
to have on larger sites is a tractor loader backhoe (TLB), which is a
modified tractor with a hydraulically operated front loader scoop and
a rear excavating bucket. Its intended function (for which it is very
versatile and cost-effective) is to excavate long trenches and holes
for manholes, and to load excavated material and rubble onto trucks
for carting away. However, many site agents use it as a general-
purpose carrier for moving cement, aggregates, mixed concrete and
mortar, window frames and even workers in the front loader scoop. The
machine is not designed for this purpose and its load-carrying capacity
is too small to justify its running costs when used in this way.
28
Wheelbarrows for horizontal transportation Dumper truck for horizontal transportation
What is the most effective method of vertical transportation on site – with

mechanical hoist, tower or mobile crane, scaffold plank ramp, mechanical
conveyor, bucket and rope?
Guideline:
For single-storey buildings, materials required higher up (at the top of
walls or on the roof), can simply be passed by hand from the ground
up onto scaffolding erected for bricklaying and plastering, and from
there onto the required level. For double-storey buildings, scaffolding
could still work. If there is space it is a good idea to build a ramp up
the side of the building or over the steps of stairways to the first
floor, made of scaffold frames and planks, so it can be used by people
with wheelbarrows.
For low-rise multi-storey buildings (three to four storeys), a small

mechanical hoist is the best solution for a single large building. For a
number of buildings spread over the site this becomes uneconomical,
and it is better to go back to ramps built over the steps of stairways.

If buildings are quite close to each other however, it may be possible
to connect them by temporary bridges, and share one hoist between
buildings by supplying the bridge (see sketch below).
For medium-rise tower blocks (five- to 12-storey blocks of flats), a

fixed tower crane (or one that moves along a short track), with a jib
(the “arm” that lifts the load) long enough to reach all the buildings
is the most effective solution. Cranes are expensive to erect, hire
and operate, and should only be on site for the required period. There
is no point in having a crane standing idle at thousands of rands per
month while you are still excavating for foundations. Discuss your
requirements with an advisor from the crane-hire company, and match
its lifting capacity with your requirements to keep costs down.
Mobile cranes are too expensive to have on site full-time, and are usually
only hired for specific days (or even hours) for lifting heavy components
in spaces that cannot be reached by other means, for example, lifting
a 300 kg safe door over the roof into a second-storey office.
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S H F BP5 2006
Mobile crane for vertical transportation Tower crane for vertical transportation
What types of constructional aids are needed (for example, different types
of scaffolding, support work and formwork)?
Guideline:
The general understanding in the industry is that the main contractor
provides heavy-duty external scaffolding for use by sub-contractors
such as bricklayers and plasterers, while the sub-contractors provide
their own trestles and planks for internal work such as plastering,
painting, and nailing up ceilings. The entity working with small or
emerging sub-contractors may have to provide the
internal support work as well – remember to check and
cater for this in your cost estimates.
Steel pipe frames and props for scaffolding, or support

work for formwork are strong, durable and reasonably
priced, and are still the most commonly used. If the
entity is going to do a lot of building, it is a good idea to
invest in a basic set of frames, props and planks. Scaffold
planks must be proper saligna (gumtree) scaffold boards
at least 50 mm thick. Old pine roof timbers will not do,
and are dangerous, as they are usually full of weak spots
caused by knots and other defects, and rot more easily
when exposed to moisture.
Scaffold planks are very expensive and should be well

looked after. They must always be cleaned before being
stored between jobs. Frames and props must also be
cleaned, and working parts such as threads of telescopic
Steel props for support props must be kept well oiled or greased. Regular painting
will also extend their life. If the price of new equipment
is too steep for your entity, keep an eye open for second-hand sales
and auctions. Be careful though when buying used frames, especially
30
when they have thick coats of shiny new paint on them – the paint
may be all that holds a rusty old pipe underneath together.
There are versatile lightweight aluminium support systems on the

market, but they are costly and are not as strong as steel.
The most common and economical type of formwork for flat concrete
slabs is standard steel pans, which can be re-used many times if
properly cared for. Likewise, there are standard steel panels clipped
together to form “boxes” for column formwork. The contractor must
check the design and ensure that column sizes specified correspond
with these standard panel sizes.
Timber formwork, or formwork made from shutter board is expensive

and time-consuming to erect, and has limited re-use. It should be
avoided as far as possible, and used only for elements where standard
steel formwork will not do the job.
Formwork is only needed from time to time for short periods, and
it is therefore more cost-effective to hire it when needed. Another
alternative is to employ sub-contractors who supply and erect their
own formwork. Some, though, will only erect flat decks excluding edges
or other vertical formwork, as their insurance does not cover them
for the latter. This can be a nuisance, as the contractor must then
provide the vertical formwork.
Timber formwork for flat slabs
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Illustration of conventional steel pan formwork for flat slabs

Deck panels
Box floor centre Box floor centre
hanger bracket
Scaffold
tube
Flat Deck Formwork
lacing
Fastrike props and box floor-centres can
be used with either pressed or coined deck Fastrike prop 50x50
panels for quick and easy erection and Band and plate
dismantling of soffit formwork coupler
Steel column box
Guideline:
For small volumes, excavating by hand is generally best (and
provides more employment). To have an excavator on site for a
day is expensive. The machine may only be required for an hour
or two, meaning you pay for transportation and idle time out
of proportion to the value of the work to be done. For longer
runs of trench excavation (strip footings for long buildings, or
sewer trenches), it is most economical to take out the bulk of
the material by machine, and then trim by hand.
For large volumes and deep excavations such as in cut and fill-
over site, and basements, using machines is more productive
Excavation by hand and economical. There are many different types of specialised
excavating and earthmoving equipment, and the most
appropriate machine for the job should be hired.
On small and medium-sized excavations, it is best to get a

multi-purpose machine such as a combination “tractor-loader-
backhoe” (TLB) that can be used to dig trenches and do bulk
excavations, load excavated material onto trucks, and do
general lifting and carrying around the site (see illustration of
TLB at work).
Small quantities of rock or old concrete encountered in

foundations can be broken up and removed with picks and
Excavation by tractor-loader-backhoe (TLB) crowbars if there are seams to get into, or by means of
pneumatic hand-held breakers. Large quantities of solid rock may have
to be blasted with explosives. This is specialised work; permits and
extra safety precautions will be required in urban areas.
32
Concrete and mortar – to mix on site (by hand or by mechanical mixer) or

to buy ready mix?
Guideline:
According to conventional wisdom it is more economical to mix on
site. This is sometimes a fallacy, and contractors are notoriously
unable to estimate properly for the true costs of site mixing once all
the waste factors and breaks in productivity have been accounted
for. Quality control is also more difficult with site mixing, but it does
provide more employment for manual labour.
If ready mix is used, concrete pours must be well planned and efficiently
executed. Delivery trucks run on a schedule, and cannot afford to
stand around while concrete is laboriously transported by wheelbarrow
from the point of off-loading to where it is needed on site. Although
the cost of hiring a concrete pump may seem prohibitive at first, it is
often more economical in the long run because of he time saved.
Mixing by hand is labour-intensive, but slow and not effective for

larger quantities. Mechanical mixers provide better consistency and
quality in the mixing of concrete. They come in all shapes and sizes,
from small portable drums with electric motors to those operated
by crank, to large petrol-driven machines that can yield up to a cubic
metre per batch.
For large projects, it is most economical to set up concrete

batching plants where cement is delivered and stored in bulk in
metal silos, dispatched into hoppers from where it is fed into the
mixing plan, and aggregates are shovelled directly from stockpile
into the mixer with dragline and bucket. Batching is done by
weight rather
than volume,
and is more
accurate.
Mix by hand Batch plant on site for bulk mixing requirements
Ready mix for delivery to site Mix with concrete mixer
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S H F BP5 2006
Plant and equipment – to own or to hire?
Guideline:
Careful calculations are required (see also pricing of plant in the
section on Estimating and Pricing further along in this document)
to determine which option is more economical. Owning plant means
you carry the fixed annual cost (depreciation, finance charges/loss
of interest on capital, insurances) even when the machine is not
working and recovering those costs, maintenance and repairs are
your responsibility. Owning also brings about a certain inflexibility and
potential mismatch between what you have, and what is required on
a specific project (for example, the mixer you own may be too large or
too small for a particular project to be practical and cost-effective),
whereas if you hire you can get the right machine for the job.
If you hire on the other hand, you pay for the rental company’s
overheads and profits, and delivery and repairs during emergency
breakdowns could be unreliable. The rental company is responsible
though for all the “hassle” of owning plant – insurance, maintenance
and repairs, transporting around, keeping up to date with the latest
models, and for starters, it is advisable to hire rather than purchase
plant, especially larger, more expensive pieces that are only needed
from time to time.
Site establishment, temporary works and

services, general management requirements
(preliminaries)
Contract preliminaries (prelims) or preliminary and
general (P&G)
Construction is about more than just labour and materials. The construction process
needs to be planned, coordinated, supervised, and supported with temporary works
and services. The contractor must provide competent staff on site to manage and
supervise the work, draw up programmes and keep them updated, prepare reports
and other documentation for site meetings, assist the professional team in checking
for correct setting out and levels, and keep track of when progress payments are
due. The contractor needs water, power, lighting, plant and equipment, temporary
works such as scaffolding, hoardings, traffic-diversion equipment and timbering
(support) to carry out the work.
There must be site offices for meetings, sheds for safe storage of materials and tools,
ablutions for the workers on site, fencing and security, name boards, certain fixed plant
such as concrete batching plants and vertical hoists or tower cranes (sometimes also
referred to as site establishment). The contractor must usually provide sureties that will
make available funds for completion of the contract should the contractor
34
fail to do so, and take out insurance for damage or loss of the works, loss or injury
to workers, and third-party liability.
The contractor is also responsible for security of the site (fencing, access control
and guarding). He must provide samples of materials for approval by the employer
or architect, protect the completed works against damage, regularly clean the site,
and cart away the rubble.
All of the above are usually priced separately from the direct labour and material costs,
and are collectively referred to as preliminaries or preliminary and general.
Site offices
Storage sheds
Storage containers
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S H F BP5 2006
Preliminary cost estimates vs. detail cost

estimates
Estimating for different purposes and at different phases
As part of the development function, it is necessary to estimate total development costs,
including land, town planning and surveying; service connections; plan-scrutiny fees;
escalated building costs; professional fees; and finance charges. This must be done so
that the total funding requirement for the project can be determined, and financial
viability studies can be done. These estimates are usually done at an early stage when
only preliminary concept designs or sketch plans are available, and methods are used
that do not rely on detailed and accurate measurement off completed drawings.
Once the decision, based on the preliminary estimates, has been taken to proceed,
and more detailed working drawings have been prepared, it becomes necessary
for the contractor to measure the quantities, and estimate the construction cost
accurately. This is done so that the work can be properly planned and programmed,
resources allocated, and materials ordered. This detailed estimate is also used as a
baseline or budget for cost monitoring and control by the contractor. Where the entity
acts as contractor, the construction side needs detailed estimates for the same reasons
as above, as well as to provide the development side with more accurate budgets of
construction costs to feed into refined total-development cost estimates.
Estimating, cost estimating, rates, pricing and

costing
It is important to distinguish between the terms estimating, cost estimating, rates,
pricing and costing.
Estimating entails the quantification (measurement), and cost estimating entails

the valuation (apportioning costs to the different measured parts of the work) of the
probable inputs (resources) that will be required to complete the work. The estimated
cost is the total estimated quantities (labour, material, plant usage and other indirect
costs) multiplied by estimated or known unit cost. It is usually used as one of the
considerations in the determination of a price at which the contractor is prepared
to do the work. Pricing, therefore, is a business decision: what amount (including
some profit) does the contractor want to sell his/her labour, material, management
skill and willingness to take risk to the employer/client for.
For the entity acting as main contractor, these distinctions help in estimating likely
sub-contract prices (and estimating price negotiations with sub-contractors) on the
one hand, and on the other hand the over-and-above costs that will be incurred by
the entity as main contractor.
We can further distinguish between price and rates. Price usually means the total
amount at which the contractor will erect the building or erect a certain portion of
the work, whereas rates are the “prices” per unit of separate individual items of
work, which make up the total price. Price, therefore, is quantity x rate.
36
Costing is the collating of cost information during and after the erection of a building,
and the processing thereof into monetary terms, mainly to monitor the profitability
of the project or contract, and to make changes to improve it. It also provides the
estimator with information for future estimating.
What is included in a main contractor’s price

build-up?
It is important to understand what is normally included in the main contractor’s
price build-up. The reason for this is that when the entity acts as main contractor, it
will take on some of the functions that main contractors price for, and if additional
resources need to be put in place, then these must be budgeted for on top of the
estimates for the different sub-contract works.
The quotes received from sub-contractors normally

include:
• Labour
• Materials (if applicable), including allowances for wastage
• The use of some tools and equipment, including allowances for wear and tear
• Sub-contractor’s site overheads (usually low or non-existent)
• Sub-contractor’s head office overheads (if applicable)
• Sub-contractor’s profit
Some sub-contractors will quote on a labour-only basis, meaning the main contractor
must supply, and, therefore, budget for the cost of materials involved.
Others may quote on a supply-and-fit (labour and materials) basis, but the main
contractor will have to supply some of the materials, for instance the plumber’s
quote may include the supply of all pipes and pipe fittings, but the main contractor
must provide the taps and sanitary fittings. In plumbing, the main contractor is also
usually expected to do some of the work associated with that sub-contractor’s trade.
An example is where the plumber’s quote would include the supply of manhole
covers, but exclude the building of the manholes.
Sub-contract documentation must be clear on these issues, and the main contractor
must ensure nothing is left to fall through the gaps when adding up total estimated
costs of labour, materials and sub-contracts.
It would be a big mistake to simply add up all the sub-contract sums, and
quotes from materials suppliers, and think that is the total building cost.
In addition, the entity acting as main contractor would have to budget in

some form or other for most of the following costs that would normally be
included in the main contractor’s tender price:
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S H F BP5 2006
Indirect on-site costs (“site overhead”)

Preliminaries
All of the above are usually priced separately from the direct labour and material
costs, and are collectively referred to as preliminaries, which can vary from 7.5%
to more than 25% of the contract value.
Attendance on sub-contractors
Providing sub-contractors with scaffolding, power, water and storage; and assisting
them with off-loading and handling of materials and equipment (usually varies from
2.5% to 10% of the value of sub-contract work).
Indirect off-site costs (“general, or head office overhead”)

In a building contractor’s business, each contract must contribute towards paying
overheads – usually in the ratio of its value to the total turnover of the company).
Overheads can vary from 5% to 15% of annual turnover (total annual value of contracts
of main contractor’s work).
The entity must exercise care when estimating costs. Certain of its head-office
resources will be needed to manage the process, and this may mean buying-in
additional capacity or specialised skills in the form of extra staff, equipment, office
space, etc. or in outsourced form. It is often difficult to quantify the above accurately,
but some allowances should be made in budgets and cash-flow forecasts.
On the other hand, the entity may save at least a portion of main contractor’s
off-site costs, or head-office overheads (office rent, salaries of head office staff,
telephones, office equipment, and general insurances).
Elements of a contractor’s price:

Direct cost
• Cost of materials
• Cost of labour
• Directly attributable cost of plant
+
Indirect cost
• On-site (preliminaries and attendance on sub-contractors)
• General (head office) overhead cost
= TOTAL COST (ESTIMATED) OF ITEM OR PROJECT
+
• Profit
= RATE AND/OR PRICE
38
Building up rates and building price from first

principles
The steps in determining rates are as follows:
• Quantify (measure) the amount of work that needs to be done (for example, m3
concrete, m2 walling, m2 plastering)
• Break the quantities down into their individual constituent ingredients or inputs
(labour, materials and other resources) by using labour constants, mixing tables,
etc. (For example, work out the number of pockets of cement, m3 of sand and
stone, hours of labour in handling, mixing and placing of a m3 of concrete of
certain mix proportions and application)
• Determine unit rates for each measured item of work (in the case of schedules
or bills of quantities) by multiplying the quantities of constituent parts of an
item of work by their unit costs (for example, 5 pockets of cement x R48.00 =
R240.00) adding the costs of the constituent parts together, and then adding
allowances for overheads and profit, arriving at a unit rate of, say, R730.00 per
m3 of 20 Mpa reinforced concrete in footings
Further steps to take to arrive at the total building price:

• Multiply the measured quantities of work by the unit rates to determine the
“price” of individual items of work
• Add all these together to arrive at the total price (taking into account other
allowances such as provisional sums, contingencies, etc.)
Estimating costs of material, labour and plant

General aspects to be evaluated and decided on:
• Plant - decide whether to hire or buy (weigh up cost and risk vs. risk and
utilisation)
• Labour - employ own full-time personnel and/or casual labour paid on a time
basis, or per task (piece-work), labour sub-contractors, labour-intensive or a
more mechanised working method
• Materials - bulk or convenience buying, central yard or direct delivery, specials
on alternatives
• Allowance for waste - breakage during transit (bricks) and short delivery; wastage
on site due to handling, mixing and installation; loss through theft and pilfering
(risk management - insurance); overlaps; joints
• Other factors - inflation/escalation, interest rate fluctuations, cash flow, discounts
for early payment vs. return on investment elsewhere
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S H F BP5 2006
Estimation of material costs

The cost of material is made up of:
• The price per unit paid to the dealer or supplier for the manufactured article
• Delivery cost to the site, based on minimum delivery quantity and taking into
account off-loading and storage
• Allowance for waste as defined below
• Less discount(s) (if any) as described below
Price per unit

This is the price quoted by the supplier in units such as R48.00 per pocket of cement,
R8.00 per kg of nails, R950.00 per 1 000 bricks, etc. It is helpful if the estimator
knows what units and minimum quantities materials are usually sold in.
Delivery cost
The price per unit quoted for items of smaller bulk that are delivered from the
retailer’s own yard often includes the cost of delivery up to a certain radius (say
within 10 km or 20 km of the yard). The retailer estimates that in a certain year, say,
two 3-ton trucks will travel 30 000 km each on daily deliveries within the chosen
radius. The total cost of this is taken as an overhead cost and added as a percentage
to the price quoted for all materials.
For items of larger bulk or weight, such as bricks, sand, stone, cement, etc. where
the cost of delivery is significantly influenced by distance, prices are usually quoted
ex yard, and additional charges are made for loading, and on a rate per km or per
area/zone for delivery. Delivery is also charged for smaller items that are delivered
outside the normal radius.
Waste
Waste is that portion of materials that is lost in handling and processing and cannot be
re-used in the permanent structure (see also the section on materials management).
Deliberate and negligent wastage or damaging of materials is not regarded as waste.

While loss through theft is not provided for, this is insured against.
Discount
General discount to the trade
Suppliers often provide materials at lower prices to contractors than to the public. All
steel window suppliers, for instance, work from a standard price list. Different discounts
off the list prices are then offered to different categories of buyer. A small once-off sale
to an unknown client may happen at a discount of, say, only 10%, while a contractor
who regularly buys large quantities may get as much as 50% to 60% off the list price. The
entity acting as contractor should vigorously negotiate for these kinds of discounts.
40
Settlement discount
This is offered by the supplier to the contractor as an incentive to pay accounts on

time (usually 2,5% or 5% discount for payment within 30 days).
Compare this with interest earned at a bank:
Say the cost of a contract is R20 000, made up as follows:

Labour R10 000.00
Material R10 000.00
Contract cost R20 000.00
If the material is paid for within 30 days, there is a 5% discount, therefore:
Material costs: R10 000.00 less (5/100 x 10 000) = R9 500.00 (Saving is R500)
If the R10 000.00 was kept in a call-account for 30 days at 6% p.a., it would earn
interest of R10 000 x 6/100 x 30/365 = R49.31.
By judicious timing of purchase dates, the entity can get almost 60 days to pay,
without forfeiting any discount. Accounts are usually made up on the 25th of a month
for all orders delivered up to then. Say the entity orders an item on the 26th of the
previous month (that is after accounts for the previous month have closed), he or
she will receive an invoice for that item after the 25th of the current month (around
the end of month), and will only have to pay for it 30 days after that.
Example:
± 60 Days
JAN FEB MARCH APRIL

25 25 25
Contractor Pays
Contractor
Account Less 5%
Buys Cement
Supplier’s Accounts Supplier Sends

Close Statement
Cash discount
These are attractive discounts to encourage contractors to pay cash.
Bulk discount
This is a discount for large quantities, to encourage contractors to
buy in bulk.
41
S H F BP5 2006
Example of estimating the cost, rate and price of material

Measured item in the bill of quantities:
Description Unit Quantity Rate Price
One-brick wall in 1:5 cement mortar m 2
120 ? ?
The cost and rate of materials for the above item could be calculated as follows:
Estimating cost of materials for the above (per m2):
Bricks (after discount to trade):
Price of bricks ex yard: R 450/1 000
Loading and delivery cost R 200/1 000
Net cost of bricks delivered to site R 650/1 000
Net per m2: (1.0/(0.22x0.085)=53x2=106+4%(waste)=110/m2@ R650/1 000 R 71.50
Mortar (0.072m3/m2):
Building sand: 5/6 x 0.072 x 1.5 = 0.09m3 @ R90/m3 (del. Incl.) R 8.10
Cement : 1/6 x 0.072 x1.5/0.033= 0.55 sk @ R36 (del. Incl.) R 19.80
Sub-total R 27.90
Waste: 5% say R 1.40 R 29.30
Total cost of materials for above (per m2) R 100.80

Add profit of say 10% (per m2) R 10.08
Total Unit Rate R 110.88
The completed estimate of material price for the item would be as follows:

120 110.88 13 305.60
Estimation of labour costs

The cost-to-company of labour is made up of:
• Basic wage per hour
• Compulsory contributions by the employer in terms of the Collective Agreement
between employers and organised labour for the particular area, in accordance
with the Labour Relations Act (medical aid, bonus, holiday fund, etc.)
• Other statutory contributions by the employer with regard to Skills Development
Levies, accident insurance, Unemployment Insurance (UIF), and Regional
Services Councils (soon to be replaced with a new business tax)
• Agreed travel and/or accommodation and living-out allowances for out-of-town
projects, as and when applicable
The above costs are converted to an all-inclusive cost per hour and
multiplied by the average time (labour constant) that it takes to
produce the unit of work in the bill or schedule.
42
The Labour Constant (LC)

Definition
• The term given to the average time it takes a healthy, worry-free, diligent
tradesman or worker to do a certain unit of work under normal working conditions
during average weather conditions
• It is that factor which, if multiplied by the relevant rate, will give the labour cost
for a particular operation or process
• Labour constant = time required to perform the unit of work
The labour constant is calculated by keeping record of the time it takes a group of
workers to do a large amount of a certain type of work over a period (1 year) under
all kinds of working and weather conditions. The quantity of work units or output
is measured and the total time is divided by the total number of units of work. The
labour constant multiplied by the total cost per hour, i.e. wage, contributions and
labour overhead of all the workers required to produce the unit of work, is the net
labour cost of that unit of work.
Examples:
(i) One worker takes 2.5 hours to dig a trench of 1 m3
Labour constant = 2.5/1 = 2.5
(ii) It takes four workers five hours to dig a trench of 0,5m x 8m x 2m
Calculate the labour constant:
LC = t/unit: 4 x 5 = 20 h divided by 0.5 x 8 x 2m = 8 m3 = 2,5
or:
Four workers take five hours to excavate 8m3. One worker, therefore, would
have taken 20 hours to excavate 8 m3. For 1 m3 we therefore have to divide
20 by 8:
20 hours/8 m3 = 2,5 (labour constant)
The labour constant is then multiplied by the hourly rate of a worker to arrive
at the labour cost of a specific activity
Compiling tables for labour constants

The basic principles are:
1. The unit in which the labour constant is reflected must relate to the unit of measure-
ment in accordance with the Standard System of Measurement used, for example,
for excavations the labour constant must be expressed in hours per m3.
2. All operations which are common to similar but different end results must be
kept separate. Overlapping and gaps must be avoided, for example:
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S H F BP5 2006
In concrete work, separate labour constants would be used for the following
discrete activities:
• The transportation of ingredients from stockpile to place of mixing (e.g.
LC = 0.5, therefore it would take one worker 0.5 h to transport 1 m3 of
materials)
• Mixing (by hand) (e.g. LC = 3.5, i.e. it would take one worker 3.5 h to mix
1 m3 of concrete)
• Loading into barrows, and transportation to place of pouring (e.g. LC = 0.5,
i.e. it would take one worker 0.5 h to transport 1 m3 of materials)
• Placing and levelling of concrete in foundation trenches (e.g. LC = 0.75, i.e.
it would take one worker 0.75 h to place and level 1 m3 of mixed concrete)
Although there are small theoretical differences, for practical purposes and
within measurable margins, the labour constants for transporting and mixing
are the same for all strengths of concrete. Thereafter the placing, spreading and
compaction for different building elements are different. Placing in foundations
is easier and quicker than placing in columns, etc.
3. Avoid division into too many operations.

4. LC for transportation of materials on site must be based on average trip distances,
say 25 m per trip.
5. Distinguish between operations only if there are measurable differences in the
LC.
6. Instead of additional tables, use multipliers where possible.
The multiplier
The multiplier is a factor that indicates how much longer a particular operation takes
under circumstances different to the norm. Carting mixed concrete over a distance
of not more than 25 m would, for instance, have an LC of 0.5 h. Carting up to 50
m would take twice as long and a multiplier of x2 would therefore be applied to
the basic LC of 0.5.
The use of multipliers reduces the number of tables that need to be compiled for
LCs, and allows for discretionary adjustment of basic LCs when it is clear to the
estimator that a standard piece of work is going to be executed under non-standard
conditions.
Example:
From the tables, an LC of 0.75 is given for the placing of concrete
in foundation trenches. Instead of giving separate tables for placing
in columns, which is more difficult and takes longer, a multiplier of
say 1.8 is used. The LC for placing concrete in columns therefore, is
0.75 x 1.8 = 1.35.
44
Factors that influence production (to be taken into

account when compiling and/or using LCs and
multipliers):
Weather conditions
(i) Wet weather: Roads can become impassable. Trucks cannot get out of basement
excavations. Workers cannot work in the rain unless cover is provided.
(ii) Exceptional cold: Workers constantly seek shelter to warm themselves. Concrete
plastering and masonry work cannot be carried out in freezing weather.
(iii) Exceptionally warm weather: Workers become exhausted and must break for
fluid intake more often.
(iv) Wind and dust: Dust gets in workers’ eyes. Materials are difficult to handle.
Cranes cannot be used.
(v) Overcast weather: Lack of light slows down or stops work.
Organisational factors
(i) Materials shortages: Results in waiting time and demoralisation of workforce.
Materials stored untidily or far from the work area reduce efficiency.
(ii) Untidy site: Reduces efficiency and leads to accidents.
(iii) Poor worker relations: Foreman shouting and swearing at workers, workers not
properly informed and motivated, inappropriate grouping of people with regard
to skills, etc.
(iv) Poor lighting: leads to sloppy work, mistakes and accidents.
(v) Inefficient and poorly maintained plant and equipment.
(vi) Workers’ wages less than on other sites in the same area.
Personal problems
(i) Illness of workers.
(ii) Domestic problems: financial problems or illness in the home.
(iii) Exhaustion due to poor nutrition or work not suited to person’s personal ability
and strength.
(iv) Demand for and supply of labour: in times of high demand, production rates are
generally lower than in situations of oversupply of labour.
When a contractor is tendering for work within its normal area of activity, the LCs
should take into account expected average weather conditions for the area and
time of year. Where the work is elsewhere, adjustments will have to be made for
differences in the expected weather conditions.
45
S H F BP5 2006
Example 1: Estimating labour costs, rate and price

If we use the same measured item that was used for estimating material price
in the example above, then:

One-brick wall in 1:5 cement mortar m2 120 ? ?
Estimating labour cost for the above:
For this type of work, a small team consisting of one bricklayer and two
assistants will be considered as a unit working together. The assistants will be
mixing mortar, transporting materials, helping with the erection of scaffolding,
etc. so that the bricklayer is free to lay as many bricks as possible in a day.
Say the unit is able to lay 900 bricks in a day of 8 hours, and the team’s
total cost to the company is made up as follows (no living-out or travel
allowances):
Description Bricklayer/h Two assistants/h Total cost per hour

of the unit/team
Basic wage R 20.00 R 8.00 x 2 = R 16.00 R 36.00
Compulsory employer contributions
(medical, bonus, holiday, etc.) R 2.50 R 1.50 x 2 = R 3.00 R 5.50
Other statutory contr.
(skills dev., UIF, RSC, etc.) R 1.50 R 1.00 x 2 = R 2.00 R 3.50
Total/Hour R 24.00 R 21.00 R 45.00
At 900 bricks a day, the LC for the unit is 900/8 = 112.5 bricks/h: Therefore at 110 bricks per m , the LC =
2
110/112.5 = 0.98 (h per m2)

Labour cost per m2: 0.98 x R45.00 R 44.10/m2
Add profit of 10% R 4.41/m2
Total Unit Rate R 48.51/m2
The completed estimate of labour price for the item would be as follows:
One-brick wall in 1:5 cement mortar m2 120 48.51 5 821.20
The total price for the item (labour and material) would therefore be:
159.39
120 19 126.80
(110.88+48.51)
46
Example 2: Estimating labour costs, rate and price

Measured item:

Reinforced concrete 20 MPa in columns (ground floor) m 3
10 ? ?
Total cost to company of labour:
Description General worker/h Semi-skilled worker/h

Basic wage R 8.00 R 12.00
Compulsory employer contributions
(medical, bonus, holiday, etc.) R 1.50 R 1.60
Other statutory contributions
(skills development, UIF, RSC, etc.) R 1.00 R 1.40
Total/Hour R 10.50 R 15.00
Estimating labour costs for the above:
Note: The contractor has studied the drawings and visited the site
and noticed that:
• The columns are on the ground floor

• His mixing platform will be about 40 m away from the stockpile
of materials
• The columns will be less than 25 m away from the mixing platform
but the ground level will be about 5 m higher than the mixing
platform, meaning transportation of mixed concrete will take longer
than allowed for in the standard LC for this activity
General worker:
Transport materials from stockpile:
0.5h x 2 (multiplier for distance 25-50m)= 1.0h
Mix concrete: 3.5h/m3= 3.5h
Transport concrete to position:
0.5h x 1.2 (steep slope multiplier)= 0.6h
5.1h @ R 10.50 = R 53.55
Semi-skilled worker:
Place and consolidate concrete:
0.75h x 1.8 (multiplier for columns)= 1.35h @ R 15.00 = R 20.25
Estimated labour cost for the above R 73.80/m3

Add profit of say 10% R 7.38/m3
Total Unit Rate R81.18/m3
The completed estimate of labour price for the above item would be as follows:

Reinforced concrete 20 MPa in columns (ground floor) m3 10 81.18 811.80
47
S H F BP5 2006
Estimation of plant costs

Plant (machines, equipment, scaffolding, tools, etc.) can be priced in one of two
places. If the cost of use of a particular piece of plant can be linked exclusively to a
specific measured item of work, then it is customary to price for its use in the rate of
that item. A concrete mixer, for instance, is used only to mix concrete and mortar. The
cost of its use can therefore be recovered through the rates for concrete, brickwork
and plastering. A tower crane, on the other hand, is used for many different things
on a site. It would be impractical to try to apportion its costs to the hundreds of
different items it transports daily. An estimate is then made of the total cost of using
the crane on the project, and it is priced as one lump sum in the preliminaries section
of the bill of quantities under the item “plant and equipment”.
Plant has two types of costs. One is annual cost. This is made up of the costs
incurred by owning the piece of plant, regardless of its usage, for example, annual
depreciation of the asset value (purchase price), finance costs, insurances, licensing,
maintenance and servicing. The other is hourly cost, i.e. direct operational costs
such as fuel, lubricants and operator wages.
Annual cost of plant

Annual depreciation
From the moment you buy a piece of equipment, it starts depreciating in value. This
is because it will eventually be used up and will have to be replaced sometime in
the future. Provision must be made for this in order to recover the cost of using the
equipment over its working life, through income from contracts. There are various
methods for calculating annual depreciation, each with different implications for tax
and the company’s financial reporting. In this example, we will use the straight-line
method where the value of the asset (purchase price less salvage value at the end of its
life) is depreciated by equal amounts per year over the extent of its working life.
Finance costs
If the plant is bought with borrowed money (financed by a bank), there are annual
interest costs. If the plant is bought with own reserve funds, the money is not available
for investment where it could potentially earn interest or other income. This loss of
interest or income is a cost.
Licensing
Bigger plant often has its own road wheels for transportation and would have to be
licensed with the traffic authorities.
Insurances
Plant must be insured against loss of or damage to the asset, as well as for third-
party liability.
Maintenance and servicing

Provisions for this cost would be based on manufacturer estimates or, if available,
the company’s own records.
48
Hourly cost of plant

(Note: Remember (i) that manufacturer’s claims of production rates, energy
consumption, and maintenance intervals are optimistic; and (ii) that operating
conditions (altitude, dust, extreme weather, operator competence) can greatly
influence these factors)
Fuel/energy
Manufacturers’ estimates or past records will indicate the hourly consumption of
petrol, diesoline and electricity.
Lubricants
Plant must be oiled and greased on a regular basis and this cost can be as much as
10% to 20% of energy cost, depending on operating conditions.
Operator wages
The total cost of dedicated operators is included here. (A dedicated operator is one
who works full-time on a particular piece of plant, for example, a crane driver).
Example 1: Estimating plant costs

Plant has production rates (a concept similar to the labour constant), for
instance, a concrete mixer can yield 12 batches of 250 litres each per hour,
or an excavator can excavate 20 m3 of soft material to a depth of 1.5 m, etc.
Again, there are multipliers for work of a similar nature, but with different
degrees of difficulty. The cost of use of the concrete mixer in this example is
to be priced into the item rates for each measured item of concrete work
250 Litre petrol-driven concrete mixer:
1. Information:
1.1 Purchase price R 30 000.00
1.2 Salvage value (2nd hand resale value at end of life) R 6 000.00
1.3 Interest rate for financing 20% p.a
1.4 Anticipated working life 11 520 hours
1.5 Occupation factor hours/day (The other 2 hours used for cleaning, 6h
maintenance, etc.)
1.6 Production weeks (4-week builders’ holiday per year) 48 x 5 days/year
1.7 Deprecation method straight-line
1.8 Fuel consumption litres/h 2.5 litre/hour
1.9 Lubricating oils, etc. 20% of fuel cost
1.10 Repair and maintenance 10% of purchase price p.a.
1.11 Insurance R 0.10/R 10.00 p.a.
1.12 Life in years: (11520/6=1920 days/5=384 weeks/48=8 years) 8 years
1.13 Yield 250 litre/batch
1.14 Production/work rate (5 minute cycle) 12 batches per hour
2. Annual cost:
2.1 Depreciation:(R30 000 – R6 000 )/8 R 3 000.00
2.2 Interest: 20% x R30 000 x 0.5 R 3 000.00
2.3 Repair and maintenance: 10% x R 30 000 R 3 000.00
2.4 Insurance: R0.50/R10 x R 30 000 x 0.5 R 750.00
2.5 Licence fees R 150.00
R 9 900.00/1440*= R 6.88/h
*
(11520/8=1440 working hours per year)
49
S H F BP5 2006
3. Hourly cost:
3.1 Fuel: 2.5 litre @ R4.00 R 10.00
3.2 Lubricants: 20% x R10.00 R 2.00
3.3 Operator: 8/6 x R12.00/h R 16.00 R28.00
Total cost per hour R34.88
Total cost per m3: 3m3/hour (12 x 250 litre/h) =R 34.88/2 R 11 63/m3
The total cost of using the concrete mixer is R11.63/m3. This cost will be included
in the unit rate for each measured item of concrete work in the bill. The cost of
transporting the mixer to and from site is calculated separately (it will vary for
each contract) and priced in the preliminaries section of the bill.
Notes:
1. Simple interest was used for finance costs above. The interest is paid on a reducing balance
(at the end of each year a certain amount of the loan has been paid off and interest is
only payable on the outstanding balance). For simplicity, an averaging factor of 0.5 was
therefore applied to interest charges, on the assumption that at the beginning of the
repayment period (first year), interest is calculated on the full purchase price and at the
end the balance is zero.
2. The mixer effectively works only 6 hours per day. The operator is paid for a full 8 hours
however (he spends the other two hours on cleaning and maintenance). His attributable
cost to the working time of the mixer is therefore 8/6 times his hourly rate.
Example 2: Estimating plant costs

It is estimated that a tower crane will be required on site from month 2 up to
and including month 6 of a 7-month contract (= 5 months). The total cost of
the use of the crane is estimated as follows, and priced as a lump sum in the
preliminaries section of the bill.
Estimation of total costs: tower crane (if owned):

Annual cost (calculated as before) say R 216 00.00/48 x 4.25x5 R 95 625.00
Transportation to and from site: 2 x R 3 000.00 R 6 000.00
Erection and dismantling: R 10 000.00 + R 8 000.00 R 18 000.00
Hourly cost:
Electricity: 5m x 4.25 weeks x 5d x 6h = 637.5h @ R 10.00/h R 6 375.00
Operator: 637.5 x 8/6 = 850h @ R15.00/h R 12 750.00
Total cost of owned crane priced in preliminaries R139 750.00
If the crane in the above example was hired instead of being owned, the calculation
might be as follows. (The plant-hire company would base its hire rate on the same
calculations of annual cost plus an allowance for overhead and profit, except that
it would be more conservative than the contractor owning his own plant. This
is because, among other factors, it would have to maintain better, and replace
stock more often to stay in the market with up to date equipment, and because
the stock would be subjected to more abuse or carelessness by hirers):
50
Estimation of total cost of crane (if hired):

Plant-hire company charges:
Transportation: 2 x R3600.00 (R3 000.00 + 20% o/h and profit) R 7 200.00
Erection and dismantling: (R10 000 + R8 000)+20% R 21 600.00
Monthly rental: 5m x R23 760/m (R216 000x1.1+20%)/12 R 118 800.00
Contractor’s own costs:
Electricity as before R 6 375.00
Operator as before R 12 750.00 R 19 125.00
Total cost of hired crane priced in preliminaries R 166 725.00
From the above, it may appear that it is always better to own plant, but this is not
necessarily so. The “real” cost of owning plant must take the following into account:
1. Risk of damage, breakage, theft, etc.
2. Having to rent or own storage space
3. Underutilisation, meaning that capital is tied up uselessly instead of earning profits by
being available as working capital on new contracts, etc.
4. The restricting cash-flow factor of regular and long-term repayment commitments
5. Hired plant is generally better maintained, thereby reducing downtime due to
malfunction
6. Servicing and repairs are the hire company’s problem and just a phone call away
7. Obsolescence, etc.
Estimating costs of contract preliminaries

These are costs connected with organising work on site, and the provision of aids and facilities
for the economical execution thereof, such as:
• Personnel Salaries of works foremen, storekeepers, security guards, gatekeepers, crane and hoist
operators
• Accommodation Temporary site offices, sheds, toilets, etc. Hire charges and/or capital redemption and interest,
maintenance, transport to and from site, erection and dismantling
• Plant All plant on site that are not used exclusively for the production of a particular item of work, for example,
cranes, hoists, picks, shovels, wheelbarrows, etc. Hire charges and/or capital redemption and interest,
maintenance and running costs
• Temporary services Water and power for the works
• Contract requirements Cost of sureties, insurance premiums, deposits and fees to local authority
• Contract management Cost of meetings, compiling work programmes and cash flows, planning and co-ordinating the works
The cost of preliminaries on conventional building contracts usually range between 7.5% and
20% of contract value, but can vary considerably between projects, depending on:
• Type of work (building or civil construction, low-rise housing or inner-city tower block)
• Size and phasing of project
• Location (urban, suburban, peri-urban, rural, out of country). In certain remote or
underdeveloped parts of the world, such as Siberia in Russia, preliminaries could be as
high as the actual value of building work because contractors have to establish their own
infrastructure, and provide expensive protection against the harsh climate
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S H F BP5 2006
The major cost items under preliminaries are plant and salaries/wages of site
staff. Both are directly related to the size and duration of the contract, with
duration or time being the major factor
In estimating preliminaries costs (the most difficult part of cost estimating, and best
left to an experienced estimator), the following activities are involved:
• After deciding what work will be done manually to increase employment,
assessing what types and numbers of plant and equipment will be needed; and
by studying the work programme, estimating how long they will be needed on
site
• Drawing up an organogram of site administrative staff needed (excluding labour
directly involved in actual construction activities), and how long they will be
needed
• Studying the work force requirement, and contract stipulations to see what
temporary facilities and services are needed for the execution of the contract
• Studying the contract conditions and statutory requirements to see what
insurances are required, and what fees and deposits are payable to the local
and other authorities
• Discussing with contracts managers and site staff what the security requirements
are
Estimation of general (head office) overhead costs to be attributed or

apportioned to a specific project for recovery
Overheads are those costs that cannot readily be apportioned to specific work items
on a project or projects, but which are necessary to execute the project(s).
The cost of indirect or general office overheads, which can vary from 5% to 20% of
contract value, must be spread over all the projects executed in a particular year,
that is to say each project must make a “contribution” to overhead costs.
Example:
Project 2
Project 1 (5% of contract value)
Project 3
(5% of contract value) (5% of contract value)
CONTRACTOR’S
OFFICE COSTS
(say 5% of turnover)
52
Typical general overheads

• Accommodation Office space for manager(s), clerks, typists, etc. Storage space
for records, plant not in use, vehicles and materials. Total annual
rent or an amount that would yield a certain return on investment
in own property
• Office equipment and expenses Depreciation of office furniture and equipment, maintenance and
finance charges, stationery, postage, telephone/fax, lighting,
heating and cooling, bookkeeping charges
• Personnel Salaries of contracts manager(s), contract surveyors, clerks,
typists, other head office staff, time-keepers, security guards,
including pension/provident fund and medical aid contributions
• Transport Cars, bakkies, trucks. Capital redemption and interest on HP
contracts, maintenance and repair, running costs, licences,
insurance
• Finance costs Interest on capital (loans or own capital), bank charges, in
connection with financing the business
• Regular expenses Fire, theft and third-party insurances, municipal service
charges (water, power, refuse removal, sanitary charges)
Estimating overhead contribution

Overhead contributions for each project are commonly estimated by:
1. Estimating the total turnover of all projects for a particular year, say R10 million
(value of actual building work excluding preliminaries, provisional sums, overhead
and profit).
2. Estimating the total overhead cost that will be needed to support the estimated
turnover for that year, say R0.5 million.
3. Expressing the estimated overhead cost as a percentage of estimated turnover
(R0.5 million/R10 million = 5% in this case) and adding that percentage to all
bill rates for building work.
In this way, the total amount of building work carried out during the year will
contribute the full amount of overhead needed. This calculation must be reviewed
constantly. This is because the estimates of turnover for the year will be adjusted
as the real turnover figures start emerging. For example, if by mid-year it is evident
that only 75% of estimated turnover is likely to be realised, the contractor will have
to either adjust the percentage upward (if market conditions allow), or start cutting
overhead costs.
Contingency allowances
This is one of the most misunderstood and abused aspects of estimating. Contractors,
consultants (and their clients) see it as a simple case of “add 10% so we have a bit
of fat in the estimate”.
Contingencies should be divided into two distinct categories of uncertainty or risk,

and each category should be considered rationally before deciding on an allowance
(past experience is invaluable in this regard):
1. Design and detail development – to allow for lack of detail at sketch plan and
estimating stage. This allowance should be high in the early preliminary stages,
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S H F BP5 2006
and reduce with each subsequent estimate as more detail becomes available
from the design team. Once tenders are in and construction is ready to start,
this could be reduced to a very small allowance, unless parts of the design are
still incomplete.
2. Building contract contingencies – to allow for real unforeseen expenditures. The
circumstances of the project will determine the amount that should be allowed.
It should also reduce up to a point, but an amount should remain in place until
construction is well underway, or even until the end of construction.
How much to allow will depend on the circumstances. It is usual to allow 2.5%
to 5% of estimated final building cost for each category (5% to 10% total) in the
preliminary estimates, reducing to 1.5% to 2.5% (3% to 5% total) at tender stage,
and reduced even more from time to time in cost reports during the construction
phase. (For refurbishment and conversion, the initial contingency should be bumped
up to at least 15%).
Cost escalations – why an estimate of current

construction cost is not good enough
Note: In the discussion below the general situation where an employer or
client engages a main contractor for construction work, is described.
In the case where the entity acts as the main contractor, it becomes
– for purposes of this section – the employer, and contractor then
refers to the sub-contractors it employs. Where it acts as main
contractor under contract to another organisation, the term contractor
below applies to it.
The starting point for all construction cost estimates is the day on which the estimate is
done. In other words, the rates used are those that apply on that day as if the project
could be completed on the same day. This is usually called the “ESTIMATED CURRENT
CONSTRUCTION COST”. This is logical because the rates known to us at this stage
can only be from current or (recently) past tenders, and not from the future.
To estimate only the current building cost is not realistic. Feasibility studies (of which
the estimate of construction cost is an important part) first have to be carried out,
tender documentation must be prepared, tenders called and adjudicated, plans
submitted for scrutiny and permission to start building by the local authority, etc. This
can take from four to 12 months, and even longer on large and complex projects.
During this time, construction costs will fluctuate in response to both macro-
economic and local construction market factors. Recently, these fluctuations have
usually been upwards because of continued inflation, and it is expected to remain
so for the foreseeable future. The anticipated future tender price for the work will
invariably be higher than the estimated current construction cost, which must
therefore be escalated in full for the estimated total planning period, at a projected
rate based on construction market trends.
54
Fixed-price contracts
A fixed-price contract is one where the contractor accepts full risk for any fluctuation
in the costs of labour and material. Smaller contracts are often fixed-price contracts
where the contractor accepts full responsibility for any fluctuation in the costs of
labour and material. The employer will not, therefore, reimburse the contractor for
any fluctuations in building costs after acceptance of a tender, and the contractor
must allow in his tender for any expected fluctuations.
Fixed-price contracts can be called for or arranged with a contractor during

negotiations, but the employer must bear in mind that if the building period is
prolonged (i.e. longer than 12 months), the risks for the contractor are great, which
can lead to the initial tender price being abnormally high.
There is no way of knowing how much, if any, the contractor allows in his tender for
this risk. When the market is competitive (with many builders chasing little work),
contractors tend to use the escalation risk as a competitive variable. In plain language
that means they will load their tenders with as little as possible, and hope to put the
screws on their suppliers and sub-contractors (who should be equally hungry for
business) to keep their input prices fixed as well. When the economy is booming
and there is too much work around, the opposite will be the case.
The main advantage of fixed-price contracts for the employer, on the other hand,
is that the final cost is known with greater certainty from the beginning (making
budgeting less risky).
The time factor

From the above it is clear that, in order to be able to estimate preliminaries and
escalation costs on a construction project, one must be able to estimate the length of
the construction period.
The project planning and construction periods (time) have an important effect on
time-related cost aspects such as:
• Preliminaries (especially salaries, plant and other time-related items)
• Pre- and post-tender construction cost escalations
• Financing cost (interim interest)
It is also of benefit to the client if a project can be completed in a shorter period so

that it can generate an income stream sooner.
The effects of time on final building costs as outlined above must always be taken
into account in building cost estimates. This requires highly specialised knowledge
and skill, as found in the competent professional quantity surveyor (QS).
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Estimating project planning and construction contract

periods
The pre-tender project-planning time-line
At the time the first cost estimates are done, there is much to do before construc-
tion work starts. All or most of the following processes and activities may still need
to happen:
• Acquire and secure the land (option periods, offer to purchase or Land Availability
Agreement, registration of transfer in deeds office) – anything from two to six
months (during this time preliminary designs and feasibility studies can be
done)
• If required, township establishment or rezoning, or other formal town planning/
legal procedure, including Environmental Impact Assessment (EIA) to clear
obstacles to development – anything from an absolute minimum of six months
for rezoning (more likely eight to nine months), to nine to 24 months for township
establishment
• If the above is not required (and land is already zoned for the intended purpose)
proceed to the next step, namely:–
• Architect prepares site development plan, followed by other drawings for
municipal submission (two to four months)
• Await municipal approval and permission to build – anything from two to four
months (during this time the professional team could proceed with preparation
of technical and tender documentation, and call for tenders so that municipal
approval and go-ahead to contractor more or less coincide)
It is important for the contractor to understand the lead times in the overall
development process, to enable him/her to provide for cost escalations in
estimates.
A typical time-line for pre-construction project planning where the land is

already proclaimed and correctly zoned, and requires no further formal town
planning procedures
Activity Time in months

1 (to 3?) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Define project
Identify land
Acquire land
Market surveys
Feasibility
Documentation
Plan approval
Tenders
56
A typical time-line for pre-construction project planning where the land is

already proclaimed, but requires rezoning:
Activity Time in months

1(to 3?) 2 3 4 5 6 7 8 9-16 17 18 19 20 21 22
Define project
Identify land
Acquire land
Rezone land
Market surveys
Feasibility
Documentation
Plan approval
Tenders
The above are indications only. Real times will be affected by the degree to
which the developing institution is willing to take the risks involved in overlapping
some activities, the availability of money to fund land acquisition, rezoning costs,
professional fees for documentation, and administrative delays in getting Land
Availability Agreements set up.
From the above it can be seen that the time between project initiation and having
a builder on site is around 12 to 16 months in straightforward cases, and around
20 to 24 months where there are complications involved, such as rezoning. These
periods vary considerably according to individual circumstances and the degree
of overlapping the developing institution is willing to risk (for instance initiating
land acquisition before preliminary studies are complete, proceeding with town
planning procedures on risk before the property is transferred, preparing full tender
documentation before plans are approved).
Township establishment could take slightly longer than rezoning in simple cases (single
piece of land owned by council), or could add anything from 12 to 24 months to
the normal process in cases where, say, a new estate is to be planned on previously
un-proclaimed land. This is because new land-use layouts have to be prepared and
submitted to several government departments for input.
The critical-element method for estimating a

construction period
The most accurate way of estimating construction periods is to measure rough
quantities of the critical elements (bulk earthworks, basements, concrete and steel
structures, etc.) and then to draw up a bar chart or critical path programme by
calculating the duration of each critical activity according to its quantity and typical
production rates.
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This would be far too time-consuming at the time of estimating, and a quicker
method is required. A simplified version of the critical-element method is therefore
the most appropriate estimating tool. It is based on the observation that the concrete
frame in the case of multi-storey buildings, and the walls, slabs and roofs in the
case of, say, walk-ups are usually the main critical elements. The method is to first
estimate the time needed for the structure, and then to add time for start-up and
finishing off respectively.
Planning and programming of the works

Work or production planning
Production planning starts with analysis of the works, and the smallest parts of its
components. In project management, the term Work Breakdown Structure (WBS) is
used, where activities are set out on an inverted “tree”, where each lower level of
branches represents more detailed breakdowns of clusters of activities.
Each activity or job is then planned while taking into account the materials required,
and the resources of labour and plant required and available. This includes a close
study of all the contract documents – such as drawings, specifications, bills of
quantities, conditions of contract – so that all activities and important conditions
and prescriptions that influence the method of execution can be noted.
All the main activities are then scheduled in logical sequence on a building or works
programme.
Purpose of the building programme

The building programme reflects the agreed sequence and duration of construction
activities on a particular project. The purposes of a building programme include:
• To provide a timetable for co-ordinating the following:
• The issuing of drawings and other information needed for construction
• The placing of orders and drawing up of delivery schedules for materials
• The work of sub-contractors
• Hiring and/or bringing onto site plant and equipment
• To show the logical sequence of operations so that work can be planned on a

daily, weekly and monthly basis
• To show the times available for activities so that output rates for labour and plant
can be determined and resources allocated
• To provide a measuring tool for monitoring progress
• To provide a tool for estimating cash-flow projections and financing
requirements
58
Programming techniques and tools

Programming tools vary from simple charts where activities are listed in sequence
from top to bottom along the vertical axis, and the time an activity takes and
where it belongs in the sequence are depicted graphically by lines or bars on the
horizontal axis time-scale (bar chart or Gantt chart), to complex computerised
network techniques.
Programming requires a good understanding of the construction process, and how

changes in the duration and/or sequence of activities in the process impact on each
other and the completion date.
Bar charts or Gantt charts

The usual procedure for preparing a bar chart is to:
• Prepare a list of discrete activities in the most logical sequence
• Estimate the time and resources needed for each activity
• Draw a horizontal bar on a time-scale for each activity, with the length of the
bar representing the time on the scale in days or weeks
• Plot the bars for all the activities on a chart, with activities listed in sequence
on the vertical axis, and the time bars for each activity correctly positioned in
accordance with the horizontal time scale (including overlap of activities where
appropriate)
Example
Prepare a list of activities:

The list should include all activities, from clearing of site and site
establishment to final inspections and hand-overs. For the main or
master programme, activities are reflected in broad categories, for
example:
1. Site clearance and levelling
2. Site establishment
3. Setting out the works
4. Foundations:
• 4.1 Excavations
• 4.2 Concrete
• 4.3 Brickwork
On larger projects, a more detailed sub-programme for each major
activity, such as structural concrete, will be prepared for internal use.
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Activity lists are drawn up as follows:
Number each activity in batches of Put the time it will take to complete each
10’s if the order of activities is not activity here. Work only on working days to
perfect it can be corrected later. start with, excluding weekends & holidays.
Put a brief description of Note who is resposible for

each activity here the activity in this column
Activity No Description Duration (days) Responsibility
To assist you, the following list of typical activities on a residential building project
is given. The activities in the shaded blocks are normally included in the building
programme, while the unshaded ones represent actions the contractor undertakes in
the “background” as part of internal management of the contract:
60
List of typical actions involved in the erection of a residential building

After signing of contract, but before starting construction
Programmable construction activities “Background” planning and management activities
Formal handing-over of site to contractor, including: Contractor’s construction planning

• pointing out boundary pegs and benchmarks and • Allocate resources
encase them in concrete • Prepare building programme and cash flow
• providing sets of documentation (drawings, bills of
quantities, contract)
• agreeing format and schedule of site meetings
Construction phase
Ongoing activities by contractor during construction:
• Coordinating services with building work, such as:
• Excavating for sewer and water pipes
• Electrical cables, inspection, backfilling and impaction of trenches, building
• manholes
• Chasing for pipes, etc. in walls
• Building in water pipes and electrical conducting
• Final connections, tests and inspections
• Ordering materials timeously
• Ensuring that sub-contractors and specialists are provided with information, coordinating their work, and monitoring for proper execution
Demolitions: • Obtain demolition permits from local authority
• Demolition of old structures that will not be re-used
Existing services:
• Disconnection/sealing off/removal of existing drains,
water pipes, cables that will not be re-used
Site clearance and levelling, including:
• Clearing site of vegetation (grass, weeds, shrubs) and
rubble
• Tree felling
Site establishment, including: • Order items with long delivery lead times, for example:
• Fencing of the site • Bricks
• Door and window frames
• Arrange with local authority for temporary water and
power connections and pay deposits • Master keyed locks
• Sign contracts with sub-contractors (plumber, electrician,
• Arrange with plumber and electrician for installing
etc.) and provide them with plans and work programme
temporary pipes, taps, distribution boards for the above
• Get kitchen layout from owner/architect and place provisional
• Placing of site facilities, major plant and materials
order
stockpiles
Cut and fill to levels (oversite excavation or bulk • Arrange compaction tests for fill and layer work
earthworks)
Set out foundations
Excavate foundations to correct levels • Order steel reinforcing if required
• Arrange inspection of excavations by municipal, NHBRC and
bank inspectors, and architect or engineer as applicable
• Arrange delivery of concrete
Place reinforcement in strip footings and struc- • Arrange inspection of steel by inspectors and engineer as ap-
tural column bases where applicable plicable
Concrete foundations
Erect first lift (ground to 1st floor) of structural con- • Arrange inspection of steel by engineer
crete columns and walls as applicable, including:
• Fix reinforcing steel cages
• Erect shutters
• Pour concrete
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Surface beds/ground floor slabs, including: • Arrange inspection of filling, compaction tests if required
• Filling under floors
• Soil poisoning
• Laying damp course membrane under floors
• Arranging plumber and electrician to lay pipes and
conduits under floors
• Arranging and casting concrete in surface beds
• Striking and curing of surface beds
If load-bearing brick structure with slabs resting • Arrange inspection of DPC as applicable
on walls) – Build ground floor superstructure
walls to wall plate height for single-storey, or
underside of first slab for multi-storey, including:
• Laying damp course under walls and setting up door
frames
• Working out the brickwork gauge (heights of courses,
cills, lintels, wall plates, etc.) and setting up profiles
• Setting up and building in windows, lintels, pipes,
conduits, wall ties, roof ties, brick reinforcing, etc. as
the work proceeds
• Treating and bedding wall plates, or
• Placing bearing surface joint material for slabs
(malthoid and polystyrene)
(If multi-storey framed structure with infill brick- • Arrange delivery of steel reinforcing
work) – Erect first floor slab, including: • Arrange delivery of concrete
• Erecting support work for decking (formwork) • Arrange inspection of steel by engineer
• Decking
• Fixing steel reinforcing
• Arranging plumber and electrician to lay pipes, con-
duits and fit sleeves, etc.
• Pouring concrete
Formwork can usually be stripped after 10-14 days
with some props staying in place a little longer to allow
building work to continue under the slab
Ground floor infill brickwork
(Followed by subsequent slabs and infill brick-
work at the different levels as applicable)
Roof structure, including:
• Ordering, or making on site and erecting roof trusses,
purlins/tiling battens, etc. (Remember bracing)
Build gables and beamfilling
Lay roof covering and bed on walls, including
plastic underlay as required
Instal window sills (remember DPC)
Plaster walls and screed floors • After plastering, arrange for specialists to measure for kitchen
units, built-in cupboards, glazing
Instal ceilings • Instal ceilings only after plastering, and do glazing and hanging of
doors only after plastering and ceilings to avoid risk of damage
Glaze windows
Fit window handles, catches, etc. and service
Hang doors and fit locks
(UNIT CAN NOW BE LOCKED)
62
Start paint undercoats

Finishing, including:
• Installing cupboards, kitchen, fittings, skirtings, curtain
rails, towel rails, toilet paper holders, etc.
Plumbing 2nd fix (installing fittings)
Electrical 2nd fix (wiring, etc.)
Fix wall and floor tiles
Plumbing final fix of fittings, taps, etc.
Final paint coats
Lay carpets, vinyl flooring, etc.
Electrical final fix - Hanging light fittings, and
testing power
Snagging inspection
Cleaning, rubble removal, snagging, etc. • Practical completion inspection and snag list by architect
• Final inspections and issuing of occupation certificate by
municipality
NOTE: External works like driveways and walkways, paving, gardening, etc. Are carried out continuously as and when possible,
and are usually programmed as a long bar starting at the earliest practical date and ending with completion of the project
Estimating duration and resources needed for each

activity
This can be quite difficult on large or complex projects such as multi-storey buildings.
Although the science of work study provides us with typical or average output rates
for labour (labour constants or time it takes for one worker to complete a certain task)
and plant (cubic metres of soil that can be excavated by an excavator in an hour or
a day), it remains to apply that information in a sensible manner. If one worker takes
three hours to excavate by hand one cubic metre of soil, it does not necessarily mean
that 30 cubic metres can be done in the same time if 30 workers are simultaneously
excavating soil.
There are many practical aspects to consider – what is the optimum size of a team doing
excavations that will facilitate adequate supervision and control over productivity and
quality, how many teams can practically be working on a limited site at any one time,
how many suitably skilled workers are available to the contractor, what to do with surplus
workers once a certain task is completed (can they be absorbed into other subsequent
activities, or will the contractor have to retrench workers).
If the contractor owns one concrete mixer with a maximum daily yield or output of, say,
32m3, and it takes one worker 0.5 hours to place and level a cubic metre of concrete
(maximum output of 16m3 in an eight-hour day), it would be pointless having more
than two such workers on site while concrete work is being done. More workers will
be required to transport raw materials from the stockpiles to the place of mixing, to
operate and clean the mixer, and to transport the mixed concrete to the works.
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The calculation of resources for the whole operation would find the right balance
between the potential output of the machine and the amount and different categories
of workers required, to ensure that everyone is kept busy for optimum productivity
on the day. Economic periods for each activity or operation are calculated to fit
within the overall time allowed for the project. This is commonly referred to as
Resource levelling. It is quite a complicated process, and should not be attempted
the first time without help from an experienced construction manager or works
foreman. Consultation with specialists such as formwork erectors should also form
part of this process.
Although work study (based on scientific and published research and/or our own ob-
servations and records) provides us with average output rates, each project and each
site is different, and as in cost estimating, we often have to apply adjustment factors
or multipliers to the averages to account for specific circumstances such as:
• Site gradient, size and shape – it takes longer to transport materials by barrow
on steeper sites. Confined sites limit the number of plant and workers that can
work simultaneously on a task or on different tasks
• Nature of the work – it takes longer to place concrete in slender elements such
as columns, as compared with bases or slabs
• Climatic conditions – work is more sluggish early on cold Highveld winter mornings,
or in the heat of noon at mid-summer. In certain parts of the country strong winds
can have a real impact on resources at certain times of the year (requiring for
instance more workers than normal to safely carry items such as roof sheets or
ceiling boards)
The completed list could look as follows:
Activity No Description Duration (days) Responsibility

010 Setting out 1 Site foreman
020 Excavate foundations 1 Specialist sub-contractors
030 Foundations 2 Specialist sub-contractors
040 Plinth Brick/Block work 2 Brick layer
050 Plumbing -1st Fit 1 Plumber
060 Electrical - 1 Fit
st
1 Electrician
070 Brick/Block work 9 Brick layer
080 Fitting of frames 2 Brick layer
090 Fixing of ties 1 Brick layer
100 Roof timbers 2 Carpenter
110 Roofing 2 Roofer
120 Beam fill 2 Plasterer
130 Plumbing 2nd Fix 2 Plumber
140 Electrical 2nd Fix 1 Electrician
150 Wall finishing 3 Plasterer/Painter
160 Fitting doors & glass 2 Carpenter
170 Finishing 4 Various
180 Inspectionss 7(split) Various
190 Connections 1 Various
200 Hand over 1 Site foreman
64
Bars that represent the duration of activities or tasks are now drawn to scale on a chart:
ID Task Start Finish Duration 20 Nov 27 Nov 4 Dec 11 Dec
Name
22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
1 Task 1 22 Nov 22 Nov 1d

Next, the bars are plotted in their correct positions on the horizontal time-scale, overlapping where
appropriate:
ID Task Start Finish Duration 8 Jan 15 Jan 22 Jan 29 Jan 5 Feb 12 Feb
Name
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
1 Setting out 12 Jan 12 Jan 1d
2 Excavate 12 Jan 12 Jan 1d

foundations
3 Foundations 12 Jan 13 Jan 2d
4 Plinth Brick/ 16 Jan 17 Jan 2d
Block work
5 Plumbing 18 Jan 18 Jan 1d
-1st Fit
6 Electrical 18 Jan 18 Jan 1d
- 1st Fit
7 Brick/Block 19 Jan 27 Jan 1w 2d
work
8 Fitting of 25 Jan 26 Jan 2d
frames
9 Fixing of 26 Jan 26 Jan 1d
ties
10 Roof 30 Jan 31 Jan 2d
timbers
11 Roofing 1 Feb 2 Feb 2d
12 Beam fill 3 Feb 4 Feb 2d
13 Plumbing 7 Feb 8 Feb 2d
2nd Fix
14 Electrical 8 Feb 9 Feb 2d
2nd Fix
15 Wall 8 Feb 13 Feb 4d
finishing
16 Fitting 13 Feb 14 Feb 2d
doors &
glass
17 Finishing 13 Feb 16 Feb 4d
18 Inspectionss 12 Jan 17 Feb 5w 2d

19 Occupation 17 Feb 18 Feb 1d
certificate
20 Hand over 20 Feb 20 Feb 1d
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S H F BP5 2006
Line of balance (LOB) programming

LOB programming can be a useful tool for repetitive production processes such as
multiple-unit house building. The principle is simple: subtract the time it takes to
complete one unit from the total time available and divide the remaining time into
the total number of units. This gives the rate at which units must be completed and
handed over.
Example:
Eighty units must be completed in one year (48 working weeks). Eight
weeks is subtracted for one complete unit. This leaves 40 weeks, and
that divided into 80 units is 2 hand-overs per week. This information can
be used to plan materials delivery and labour take-on. If, for instance,
a bricklaying team (bricklayer and two helpers) can do all the brickwork
on a unit in two weeks, then it can be calculated that four such teams
will be needed on site for the bulk of the time to meet the required
hand-over rate.
The above is an average production rate, and in planning the work

production rates for different trades may be staggered to produce
orderly completion and hand-over in batches or phases. If an LOB
calculation shows, for instance, that two glaziers are required all the
time to produce two houses a week, it is better, rather than continuously
glazing, to push ahead on the completed shells until, say, 12 houses are
ready, and then to bring in six glaziers to finish all 12 in two days.
Network programming
Network programming includes methods such as Critical Path method (CPM), and
Project Evaluation Review Technique (PERT). The basic principle underlying all of these
is recognising the interdependence between activities, and the effects of delays in one
activity on linked activities and the overall completion date immediately show up.
Without the appropriate computer software programmes (for example Microsoft

Project, Visio, or Primavera), network programming is a tedious and complex
exercise. Some expertise and training in the use of the software, which cannot be
imparted through a manual of this nature, are required.
A note on “fast tracking” the construction process

Deliverables from a phase are usually approved before work starts on the next phase.
However, a subsequent phase is sometimes begun before the deliverables of the
previous phase are approved. This practice of overlapping phases is called fast tracking,
which adds to the risk. Fast tracking has been the cause of much unsatisfactory work
on some projects. Project managers, in particular, tend to use this term to impress
developers with what can be achieved by fast tracking. However, inserting unrealisable
lead times in construction programmes in the interest of fast tracking has caused several
disasters in recent years. Speed is seldom a worthwhile substitute for quality.
66
Despite several advances in the chemical composition of a number of wet materials,

concrete still needs a certain minimum number of days to achieve the desired design
strengths. Props supporting formwork to slabs overhead cannot be summarily removed
early because other trades wish to work on unencumbered floors, plaster needs to dry
before painting, and screeds need to dry out before floor finishes can be laid. Structures
move and change shape (shrink and settle) while drying out, and if windows are, for
instance, built in hard up against the soffits of slabs before they have properly settled,
the ongoing sagging may
buckle frames and crack glass. Ceramic cladding tends to come adrift if applied too
early or under unfavourable conditions. Shrinkages in exposed brickwork tend to
vary seasonally, and this should be factored into any programme.
On projects where several separate buildings are undertaken simultaneously,

however, fast tracking is actually no more than common sense work planning as
certain processes can be rotated on site, allowing the individual lead times of building
materials to be achieved without delays in overall programming.
The figure below shows a generic project life cycle (there is also the so-called
S-curve for expenditure on a project):
Cost and
Intermediate phases
staffing
level
Initial Final
phase phase
Start Time Finish
Cost and staffing levels are low at the start, higher towards the middle, and drop
rapidly as the project draws to a conclusion.
At the start of the project:

• the probability of successfully completing the project is the lowest
• the risk and uncertainty is the highest
• the ability of stakeholders to influence the final characteristics of the project
product is the highest
The probability of success generally increases, while the ability of stakeholders to

influence the final outcome of the project decreases, as the project progresses.
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S H F BP5 2006
Ensuring the essentials are in place

Check that all local authority approvals are in place
Before any construction commences, the entity must ensure that all town planning
and building approvals have been complied with to the satisfaction of the Local
Municipality. If this has not been done, serious fines and other legal problems and
delays could be encountered. At completion, if plans have still not been approved,
or the finished building has not been “passed” by the municipal inspectors, the
municipality will not issue an occupation certificate. It is then illegal to occupy the
building, and not only will fines be incurred, but there will be serious insurance
implications for the owner should anything happen to either the building or the
occupants.
Permits are also required for demolition of old structures on the site, and after
demolition clearance certificates, stating that the site is vermin-free, must be
obtained.
Permission to close off parts of streets and use pavements may sometimes have to
be obtained on tight inner city sites (and deposits are then payable to cover any
possible damage to paving and kerbs, parking meters and the like).
Check that you are working off latest drawings

Sets of construction drawings, finishing schedules and other contract documents are
formally handed to the contractor, usually at the site hand-over meeting. A master
set is held in safekeeping as part of the contract documents. The builder also receives
a copy of the signed originals and of the approved building plans. The latter must
be on site at all times for reference by inspecting authorities.
Drawings must be stamped “For construction purposes”, and a drawing register

must list all drawings received on site by date and number or revision number, so
the architect and engineers can always check that the latest revisions of drawings
are on site.
Check that insurances are in place
This is vital, and no one should be allowed to set foot on site if all the
insurances are not in place. From site hand-over, the contractor is in control
of the site, and responsible for everything that happens on it.
The basic insurances required are normally covered by a so-called Contractor’s All
Risk (CAR) policy. This includes:
• Insurance of the “works”, covering loss or damage to materials on site and the
permanent structures due to theft, vandalism, accidents, weather, storms and
floods, fire and the like
• Workmen’s compensation or death or injury of the contractor’s workers
• Third party or public liability cover for death or injury to the person of, or damage
to the property of visitors to the site, passers-by and the general public
68
Problems caused by political unrest are covered by policies issued by the South
African Special Risks Insurance Association (SASRIA).
In some instances, where deep excavations close to site boundaries are required (for
example, basements, or cutting down levels on steep sites), and there is a potential
danger of destabilising existing buildings on adjacent sites, it is necessary to take
out Removal of Lateral Support insurance. In such cases it is also prudent to inspect
adjacent buildings together with their owners, and note and take photographs of all
existing cracks and subsidence to avoid arguments later.
In addition the contractor must ensure that all his plant and equipment are adequately
insured.
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S H F BP5 2006
e
Executing the work
Site layout and organisation
There is no standard site lay-out – each site is different and should be planned
differently. The aim is to ensure optimum efficiency, economy and safety by looking
at the implications of tidiness, accessibility and co-ordination.
If the entity is not going to employ a professional site agent or construction manager
(both of whom should know how to do this planning), it should at least obtain advice
on this aspect. Go to another building site where such people are employed and
ask them to help you. The following can be used as a checklist:
General guidelines
1. Draw up a plan or map of the site showing:
• Access and exit points for people and vehicles
• Circulation of people, materials, machines and vehicles
• Position of temporary service connections (water, drainage, electricity)
• Position of permanent structures (buildings to be erected), and temporary
facilities such as stores, offices, ablutions, sleeping accommodation, fixed plant
(for example, tower cranes and batching plants), and material stockpiles
2. Plan where to start with the work and the physical sequence of completion,
keeping in mind:
• Minimising disturbing occupants of completed phases – no-one likes living on
a construction site
• Risk of damage to roads, services and buildings completed or partly
completed
3. Identify potential problem areas and plan how to deal with them, for
example:
• Check low areas and impediments to run-off that could cause stormwater ponding
and possible flooding; grade portions of the site affected, and/or dig channels for
run-off; or construct temporary earth berms or retaining walls out of sand bags
• Check for steep banks and unstable slopes that could collapse in heavy rain, or
when heavy vehicles and plant move nearby
• Check for weak points from a site security point of view, for example, hidden
corners or places of easy access from adjoining properties
4. The planning of site access and circulation should:

• Ensure ease of delivery of materials and avoid multiple handling
• Consider probable size, mass and manoeuvrability of delivery trucks. In practice,
this often means that bulk materials stockpiles are close to the entrance to avoid
heavy trucks damaging internal roads, services or buildings, while sheds for lighter
materials are further “inland”
70
• Ensure that heavy loads are not trucked over pipelines

• Provide, if possible, two gates to enable one-way flow of traffic (this does however,
complicate site security)
• Make access and circulation routes as permanent and maintenance-free as
possible by proper compaction, grading for drainage and even hard-surfacing
permanent roads early on (consider cost implications though, and keep in mind
possible damage due to overloading beyond designed carrying capacity)
• Co-ordinate with traffic authorities with regard to temporary closing of streets
and/or pavements where necessary, and hoarding for the safety of people
passing by
5. Positioning temporary site services and facilities, and fixed-position plant:

• Temporary service connections will usually be provided on the site boundary
in positions determined by the municipality. The temporary works linking up
to the connections (pipes, taps, cables, distribution boards) are provided by the
contractor, and positioning these must be co-ordinated for proximity to where
they are needed most (for example, taps close to mixing platforms, distribution
boards close to offices and temporary workshops)
• The supervisor’s (site agent’s or contracts manager’s) office should have an
optimum balance between best possible views of the whole site and isolation
from dust, noise and disturbance
• Office for site meetings (and parking for attendees) if possible, should be out of
the way so as not to interfere with the works, or unnecessarily expose visitors
and their cars to injury or damage
• Site accommodation for staff where required (not common in urban areas), must
ensure safe and healthy living conditions. Ablutions must not be too distant from
the works otherwise productivity is compromised
• Fixed-position plant must be placed for optimum utility and minimum wastage
and re-positioning. Decisions must be made about central bulk concrete batching
plants against smaller mobile mixers (economy and practicability), choice
between cranes, hoists, ramps or conveyors for vertical movement of materials
6. Materials storage and handling:

• Multiple handling of materials wastes time and money, increases the risk of
breakage or damage, and makes loss control (keeping track of the materials)
very difficult
• Storage method depends on:
• Durability – level of protection required against the elements (cement for
instance, needs to be stored in waterproof sheds with good ventilation,
whereas bricks can lie outside
• Protection required against damage, for example, deformation of window
frames when stacked incorrectly or white rust developing on roof sheets
stacked tightly together out in the open
• Protection required against loss and theft – certain materials are more valuable
and easier to steal than others. Windows, doors, ironmongery and fittings,
sanitary fittings, light fittings and the like must always be in locked stores
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S H F BP5 2006
Site boundary
Permanent structure
(flats)
Temporary steel bridge for moving materials

once ver tically hoisted
Mechanical hoist
Permanent structure
(flats)
Materials stores & tool sheds

(close to entrance & works)
brick stockpile
One-way flow sand & stone stockpile
Site agent’s office Mixing & working area
Parking Permanent Permanent structure

structure (flats)
Guard hut
Ablutions Site Boundary
In Out
Office site
meetings
Pavement
Temporary service
connections
Street
Illustration of site lay-out and establishment
72
• Remember completed parts of buildings can be used for stores. Keep this in
mind when programming the construction sequence. A few lock-up garages,
for instance, can be finished quite quickly and used for stores without
disturbance
• Consider the following factors when placing stores and establishing a materials
handling system:
• Optimum balance between ease of access for delivery and closeness to
point of use
• Proper control procedures for receipt and issue of materials and tools
• Security – make sure stores cannot be breached unnoticed from the street
or from adjoining open spaces. (In one case on a major Eastern Cape project
a store was located on the boundary with its back wall forming part of the
fence. The stores clerk duly cut a hatch in the wall and ran a profitable
“sideline” from there.)
• Design a flow diagram of stock movement and a delivery schedule to ensure
enough materials on site at all times and to avoid bottlenecks and delays
• Keep site tidy and regularly remove rubble to keep working and movement
space clean
• Establish gravity feeds whenever possible for bulk aggregates, cement (silos)
and rubbish removal chutes in multi-storey buildings
Final location in
Handle structure
Receipt
Materials and
of Offload
equipment
delivered to site
Handle
Handle
Store
Handle Combine materials

e.g. mix concrete
Handle Site pre-assembly
Site boundary at ground level
Cement ineffectively stored, should be stored in waterproofed Bricks delivered in pallets, placed close to its end use
sheds
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S H F BP5 2006
Materials supply and management

Before buying …
Select and draw up a list of materials that need to be purchased
A list is drawn up at estimating stage for the purpose of obtaining quotes. Because
of time constraints, that list is often, however, incomplete, and estimating is done on
the basis of past prices. A comprehensive list should, therefore, be compiled again
as soon as practically possible. This serves as a checklist for planning the purchasing
of materials, and ensuring that nothing is forgotten which causes delays.
The types of materials and components that will be required are indicated in the
specifications, on the drawings and finishing schedules, and in the bills of quantities
– in that order of precedence. Where the type of material is not specified, or there
is a discrepancy between any of the above documents, check with the specifier
(usually the architect or engineer).
Familiarise yourself with the content and meaning of specifications – especially

generic or standard “preambles” which are not usually bound in with the tender
or contract documents, and only included by reference. Always keep a copy of the
latest edition of such standard preambles in the office, and ensure all staff involved in
construction are familiar with it. The document in general use for building works in
South Africa is the Standard Preambles for Building Works produced by, and available
from, the Association of South African Quantity Surveyors in Midrand, Gauteng.
Take cognisance of special prescriptions and specific brand names or product

codes specified, and do not substitute these of your own accord. Where materials
are not specifically named, try to select the best quality brand compatible with
budget constraints. Remember cheap is not always bad, and expensive is not always
good.
Some main items where the make and source of supply are usually left to the discre-
tion of the contractor include:
• Plaster bricks – Check not only price, but also quality. Excessive breakage and
waste due to crumbly bricks often costs more than paying slightly more for a
harder brick and reliable supply
• Aggregates (sand and stone) – Again, poor quality in the form of dirty aggregates,
poorly graded sand, or excessively flaky stone can later result in extra costs
because of repairs to cracking concrete and plaster, high cement demand in mixes
etc. Where large quantities of structural concrete are required (walk-ups and
high-rises), it is prudent to collect samples of aggregates from different sources
in the area, and to get your nearest concrete laboratory to do mix designs that
will give you the most cost-efficient proportions of cement and aggregates. Most
of the major consulting engineering firms have such laboratories in the larger
centres
74
• Steel windows and door frames – This is a cut-throat business, with many players
entering and leaving all the time. Anyone with a shed and a welder can make
windows, but the trueness of their jigs, the soundness of their welds, and the
quality of hinges (brass pins preferred to mild steel) and fittings will determine
the level of problems during installation and glazing, including potential future
maintenance problems. Deal with suppliers who have a good reputation – there
are enough of them around in all urban areas to ensure competitive pricing
• Roof and other timber – Timber sold commercially has its grade stamped on
the end of each length. When lengths are cut shorter in the shop, the grade
stamp may be lost. Visual checking for defects at delivery is very important. Also
ensure your supplier stores timber under a roof or otherwise protected against
rain and sun
• Roof sheeting – Rolling profiled roof sheeting from coil (flat sheet produced by
the national producer of steel) is fairly straightforward and there should be no
real problems with quality. Ensure that you buy the correct thickness or gauge.
Off-the-shelf sheeting is often only 0.45 mm or even 0.35 mm thick these days
(used on RDP housing), but it is not advisable to go less than 0.6 mm or 0.5 mm
“Fullhard” for our purposes
• Cement – Making cement is a capital-intensive business, and consequently there
are no fly-by-nights in this industry. The only problem is price monopolies
Read item descriptions and the standard preambles that apply to that particular type
of item very carefully. Suppliers, especially those that cater for the general public
on a cash and carry basis, usually stock the cheapest (and sometimes the “nastiest”)
brands – often the result of import dumping. Many of these cheap brands do not
comply with the specifications of formal building projects. This is especially true
of items such as external batten doors, steel door frames and windows, door locks
and general ironmongery, roof sheeting, taps and mixers, light fittings and paint
products.
Pressed steel door frames are often of the so-called “knock-down” type, made of
very thin material, and with very flimsily assembled corners. The furniture on steel
windows (handles and stays) is usually of poor quality unless a better quality is
specifically called for, and although it may seem like a small thing, experience shows
that one of the most common complaints from occupants of low-cost houses is that
windows won’t close properly because of poor quality fittings.
In other instances, the standard stock carried by suppliers is perfectly good for its
intended purpose, but not of a high enough standard for quality housing. An example
is where a project specification calls for 6 mm thick panels on the back of flush-back
wooden doors (more resistant to puncturing by children or vandals), whereas the
standard product on most shelves only has a 3 mm or maybe a 4 mm-thick panel.
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Determine the quantities of materials needed

A warning about bills of quantities
On projects where an external quantity surveyor has provided bills of quantities, the
quantities are used to ask suppliers to reserve approximate quantities of bulk items
such as bricks, cement and aggregates, but final orders to purchase should never be
based on such bills of quantities. The contractor should always do his own count and
measure off the most up-to-date drawings issued for construction purposes before
ordering. There could have been changes on the drawings between the time the
quantity surveyor measured for the bills, and the issuing of construction drawings.
Also remember that when quantity surveyors compile bills of quantities, they measure
off the net sizes as shown on the drawings, and it is up to the contractor to make
allowances for waste and other causes of shrinkage as set out below.
Quantifying by counting
Some components such as windows have an exact number and are easily quantifiable
by means of simple counting. Check numbers given on window schedules against
the layout plans and clear up any discrepancies before ordering. Also check the
windows as pictured on the schedules and/or elevations against the product codes
and sizes in standard window catalogues available from most suppliers.
Ensure where windows have opening sections on one side only, that the correct
“hand” is stipulated.
opening sash
fixed sash
hinges
opening sash
fixed sash opening to right
• plan
• elevation facing
window from
outside
• right-hand opening
Remember door frames are left or right “hand”. When facing the frame standing
on the side towards which the door will open, the hand is indicated by the side of
the frame the hinges are on. For so-called “French doors” you must also indicate
whether the door is opening out or in, as the hinges will be different.
Pressed steel door frames are made 50mm longer than final door size. This is to allow
for the bottom of the frame to be embedded in the floor screed or topping. Where the
concrete surface bed or floor slab is simply going to be floated smooth, without any
further screed, a special “no-screed” frame which is shorter must be ordered otherwise
there will be a large gap between the bottom of the door and the floor surface.
76
hinges
hinges
hinges
• Left hand door hinges

ood dnah thgiR •
rframe • Right hand door • Left-hand
emarf frame
• Right-hand
• Plan
• Elevations facing doors on side where hinges are
Pressed steel door frames have hinges welded on and are supplied with lock striking
plates. Timber door frames come bare, and hinges and striking plates must be
purchased separately.
Quantifying by measuring and calculating

Some materials cannot be quantified by simple counting. The amount of concrete
in foundations for instance, must be measured off the drawings first. If ready-
mixed concrete is going to be used, this measured quantity (in cubic metres) plus
an appropriate allowance for waste can then be used for ordering the concrete.
If concrete is going to be mixed on site, however, the number of cubic metres of
concrete as measured off the drawings will be the “net” (without allowance for
waste) minimum quantity of finished product required in accordance with the
design (drawings). This quantity of finished concrete must be broken down into its
constituent parts (cement, sand, stone and water) in the correct ratios, as indicated
by the specified mix proportions.
A specified mix proportion of 1:4:5 for concrete means that, measured by volume,
the concrete should consist of one part cement, four parts fine aggregate (sand or
crusher run) and five parts coarse aggregate (broken stone or gravel). It does not
mean – as many small builders mistakenly believe – one bag of cement to four
wheelbarrows of sand and five wheelbarrows of stone.
The relative quantities for the above mix will therefore, be calculated as follows:
• Cement – 1/10th of total volume
• Sand – 4/10ths of total volume
• Stone – 5/10ths of total volume
Likewise, a mortar mix of 1:5 means one part by volume cement and five parts
sand, calculated as follows:
• Cement – 1/6th of total volume
• Sand – 5/6ths of total volume
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S H F BP5 2006
It is convenient to remember that a concrete wheelbarrow carries a volume of 67

litres (0.067m3), and that a 50 kg bag of cement has a volume of 33 litres (0.033m3).
Two bags of cement, therefore, fill a wheelbarrow, and 15 wheelbarrows make
a cubic metre. This information can be used for simplified gauging and mixing
instructions on site. So, if one cubic metre of 1:4:5 concrete is required, then the
quantities would be as follows:
• Cement – 1/10th of 1m3 = 100 litres or 3 bags of cement (100/33)
• Sand – 4/10ths of 1m3 = 400 litres or 6 wheelbarrows (400/67)
• Stone – 5/10ths of 1m3 = 500 litres or 7.5 wheelbarrows (500/67)
However, the above quantities would yield less than a cubic metre of mixed concrete,
and we have to make some extra allowances first.
Allowing for bulking, lapping and waste

In estimating and pricing we make percentage allowances in our rates for bulking,
lapping and wastage of materials. When ordering materials, those allowances must
be converted into actual quantities so that enough materials can be ordered to
complete the work.
Bulking and void filling by aggregates (Shrinkage in

volume from dry materials to wet mixes)
Materials such as sand used as aggregate in concrete and mortar will always arrive on
site in “bulked” form. This means the sand will have a loose “fluffed-out” structure
with lots of air between the grains. This is caused by moisture in the sand that creates
surface tension on the individual grains, and forces them slightly apart. When water
is added in the mixing process this structure collapses as air is forced out, and the
moisture that came with the sand joins the mixing water. The delivered quantity
of sand will have an apparent volume as measured by the capacity of the delivery
truck (say 6 m3), but in reality, up to 25% of that is air, meaning that effectively there
is only 6 x 100/125 = 4.8m3 of actual sand.
When the cement, sand and stone are mixed together, the smaller particles (cement
and sand) fill the voids between the larger ones (stone), causing the total mixed
volume to be less than the sum of the volumes of the separate materials brought
to the mix. To make up for the combined effect of bulking and void filling, one
would have to order up to 50% more cement, sand and stone than the theoretical
quantities, i.e. for 1 m3 of 1:4:5 concrete as in the example above, one would have
to order (and mix) the following actual quantities:
• Cement – 100 litres x 1.5 = 150 litres or 4.54 bags
• Sand – 400 litres x 1.5 = 600 litres or 0.6m3
• Stone – 500 litres x 1.5 = 750 litres or 0.75m3
78
Lapping of materials
For certain materials there are prescribed laps at end or side joints, for example roof
sheets. A standard profiled galvanised roof sheet such as IBR or “S-rib” (corrugated
sheeting) is 762 mm or 914 mm wide, but with the prescribed side lap the effective
cover width would only be 686 mm or 838 mm.
Lapping also applies to damp proofing membranes in walls and under floors, brick
reinforcement, concrete roof tiles, and any other material that needs to be sealed
for waterproofing purposes.
Waste
“Waste” is the loss of material that cannot be re-used. Waste usually taking place during
delivery, handling, processing and fixing in the building. Waste is caused by spilling of
materials such as during the transportation and placing of concrete; mortar droppings
during bricklaying; the application and subsequent smoothing of plaster; cutting bricks,
tiles, roof sheets and ceiling boards to fit; and off-cuts from standard purchased lengths
when cutting timber to design lengths. A certain unavoidable amount of breakage also
occurs during delivery and off-loading of bricks, although with bricks most commonly
being delivered in pallets, this problem has been reduced considerably.
Waste is sometimes inherent in the process (unavoidable but manageable) and

not always obvious. Many items of work have specified nominal or net minimum
dimensions, and we have to make allowance for certain tolerances in the finished
product. In the plastering of a wall, for instance, one must allow for the extra material
needed to maintain the minimum specified thickness across unevenness in the rough
built surface of the wall.
The average thickness of plaster could be well in excess of the specified minimum 12
mm – as much as double that depending on how rough the bricklayers were, and how
unevenly shaped the bricks were. It would be prudent to work on a thickness of 25 mm.
To convert the measured square metres of plaster surface area to the amount of mortar
required in cubic metres, we would multiply the area by 0.025 rather than by 0.012.
The above would apply wherever material of a certain specified thickness is applied to
a potentially uneven base, such as floor screeds on concrete surface beds (allow 40 mm
thickness for a specified 22 mm to 25mm screed), and concrete against excavated or
backfilled earth. During the excavation of foundations in earth, so-called “overbreak”
(due to removal of loose stones and soft soil) and partial collapse of sides always occurs,
resulting in the need to pour an extra amount of concrete to fill the voids. In clean, stiff
soil (free of pebbles, roots and boulders), an allowance of around 2.5% should be enough,
but in stony soil, that allowance may have to be increased to 5% or even 10%.
The percentage to allow for waste on different types of materials depends on many
factors such as the quality of supervision and waste management in the organisation,
training and discipline of site personnel, methods of storage, transportation on site
and handling, and the nature of the works and the site. There will be more spillage
of concrete and mortar, for instance, during transportation by wheelbarrow on
steeper slopes than on flat ones.
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S H F BP5 2006
The following list of waste factors can be viewed as a guide:

Material item/component Waste factor
Concrete in foundations 2.5–5% (5-10% in loose or stony soil)
Concrete surface beds Add 10-15 mm to specified thickness to allow for uneven base and
add 2.5% for spillage
Concrete slabs, columns and beams 2.5%
Reinforcing mesh in floors and slabs 12% for large areas, 20% for small areas
Brick reinforcement 3.5%
DPC in floors 5% large areas, 10% small areas
DPC in walls 3.5%
Quarry tile or cement cills 10%
Fibre-cement cills 5%
Timber in brandering for ceilings, roof purlins, tile Compile actual cutting lists and add 5-10%
battens and trusses made on site
Roof sheeting Calculate the number of different actual lengths required and then add
5% for cutting and waste
Skirtings 5-10%
Ceiling boards Compile actual cutting list and add 2.5-5%
Wall tiling 10-15%
Floor tiling 5-10%
Vinyl flooring and carpet tiles 5-10%
Materials not shown on the drawings

Part of the finished product, but not usually found in descriptions or shown on
drawings, are the many types of fasteners used in assembling a building – nails,
screws, bolts, roofing screws, plugs, nail plugs and anchor bolts, wire, hoop iron,
brackets and connector plates, adhesives, tile grout, cement slurry or patent products
used to provide key or grip between concrete and plaster, etc.
Consumables
Materials meant for permanent inclusion in the finished product are shown on the
drawings or are described in the specifications and bills of quantities.
Certain “materials” however, are classed as consumables, and are not shown on any
contract documents. The contractor still must estimate their quantities for inclusion
in the estimate or budget, and because they have to be purchased as well. Some
examples are:
• Sanding paper, thinners, brushes that are used up in painting operations
• Drill bits, angle grinder cutting discs and saw blades used up on the project
• Plastic spacers for wall and floor tiling
• Cleaning materials such as “Mortalift” used for cleaning mortar splashes off
face-brick work and tiling, cloth and detergents used for general cleaning of
the works
80
Experience will teach what allowances to make for these – in the meantime speak to
painters, carpenters and others who do the work to get an idea.
Materials list or schedule of materials

The above can be used to draw up basic guidelines for determining quantities of materi-
als, namely:
1. Measure quantities of items of “wet” work in normal units of measurement (m2 for
brick walls, plastering, tiling; m3 for concrete)
2. Convert the measured quantity of work into an appropriate format for further
processing, for example, plaster from m2 of surface area into m3 of mortar that needs
to be mixed (Remember the allowances for tolerances)
3. Break composite items down into their constituent parts according to prescribed mix
proportions, i.e. concrete into cement, sand and stone; and mortar into cement and
sand (remember bulking and void filling)
4. Draw up actual cutting lists for materials such as roof timber, roof sheeting and ceiling
boards
5. Make allowances for waste and lapping
6. Count exact number of components such as doors, windows, locks, baths, taps and the
like (you cannot allow waste for these – every single one purchased must be accounted
for, and replaced out of own funds or insurance payouts when lost or damaged)
7. Convert quantities into units of purchasing where necessary, for instance, cement from
m3 into 50 kg bags or tonnes when bought in bulk, nails, wire and bolts from number
or m into kg
At the end of the quantifying process described above, we will have a schedule of
materials, including cutting lists which can be used for pricing and ordering purposes.
The units in which materials are purchased, and in which they should be furnished in a
list of materials, are as follows:
Item
Unit
Sand and stone Truck loads of 5 m3, 5.5 m3, 6 m3 or 10 m3 for larger quantities, or by cubic metre for smaller quantities. (The
rate per m3 for smaller than standard tipper truck loads is quite high because of proportionately higher loading
and transport costs)
Cement 50 kg bags for smaller projects or projects done in phases. Tonnes for larger projects where the cement is
delivered to site and stored in bulk in metal silos. To convert divide the m3 of cement calculated by 0.033 to give
number of bags, and then divide by 20 to give tonnes (Remember 50 kg of cement is 33 litres or 0.033m3 by
volume)
Bricks In loads of multiples of 1 000 (usually 3 000, 5 000 or 10 000), or in multiples of standard pallet sizes for
smaller quantities (again more expensive)
DPC for walls Different widths (110 mm, 220 mm, 340 mm) in rolls of 40 m
DPC membrane for under floors, In 20 m rolls in widths of 1 m, 2 m, 3 m, 4 m and 6 m. (Remember allowing for side laps and jointing tape in 40
roofs m rolls)
Brick reinforcement In 20 m rolls or strips of 3 m length in widths of 75 mm and 150 mm (strips usually more expensive)
Pre-cast concrete lintels In standard lengths from 900 mm to 6.6 m in increments of 300 mm
Galvanised steel wire (for roof ties) In kg. Standard roll is 50 kg, but can be cut to exact quantity required. 3 mm Wire = approx. 16m/kg; 4 mm =
10m/kg
Fibre cement window cills In lengths corresponding to standard steel window sizes (for example, 533 mm, 1,022 mm, 1,511 mm)
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Quarry tiles or cement cill tiles In number

Reinforcing steel In lengths for different types and diameters usually cut and bent in the shop according to engineer’s bending
schedule
Roof timber 1. In standard lengths (cut to required actual length on site), usually starting from 2.4 m or 3m in 300 mm in-
crements up to 6.6 m (finger jointed for longer lengths and more expensive). The longer the length the higher
Timber is bought “sawn” (no plan- the price per m, and the more the potential for waste due to warping and other defects
ning), or wrought/wrot (planed) on Or
one, two, three or all sides. When
planed on all sides we talk of P.A.R. Cut to exact lengths from standard lengths in shop according to cutting list (timber merchants will often draw
(planed all round) timber. up the cutting list for you from the drawings as a service). Remember that you pay for off-cuts anyway, and
Wrought and/or splay cut ends of that this option allows very little tolerance for buildings not being built exactly to designed sizes on site
truss rafters can be done in the
shop (at a fee) or on site
Timber for finishing and joinery (skirt- In lengths usually from around 1.8 m up to 4.8 m in increments of 300 mm. Remember steel cut nails or plugs
ings, rails, cornices, cover strips) and screws for fixing, and panel pins for laying on quarter round beads and the like
Nails In kg. Most economical is boxes of 25 kg, but smaller quantities can be bought. Most hardware and DIY stores
sell pre-packed packets of 10, 20, 50 or 100 nails counted off, but this is usually more expensive
Bolts, nuts and washers In kg or in number
Galvanised steel plate connectors, In number
“hurricane” clips, truss hangers,
etc. for roofs
Roof sheeting Usually charged per m, and comes in standard lengths from around 1.8 m up to 13 m in increments of 300 mm
(Remember effective cover width - allowing for side laps, and end laps where not in single length)
Roofing screws Boxes of 100 and 200
Concrete roof tiles In number. (Standard roof tile including allowance for waste is approximately 10.5 to 11 tiles per m2 depending
on slope or pitch.) Best to get hold of manufacturer’s catalogue and technical guide – these have useful informa-
tion on calculating quantities, as well as laying instructions
Windows In number by type, according to standard catalogue reference, or by providing supplier with a copy of the archi-
tect’s window schedule for purpose-made windows. Remember to specify the “hands” for opening sections,
type and quality of window furniture (handles, stays), and the burglar proofing.
If windows are ordered from a specialist window manufacturer (recommended), the windows are delivered to
site without furniture (to avoid damage and theft), and “serviced” just before glazing commences when the sup-
plier comes out to site and fits and adjusts the furniture to the frames
Pressed steel door frames In number by size of door and width of frame (for half-brick or one-brick wall). Remember “hands”, “no-screed”
frames
Wooden door frames In number. Remember to order separately hinges, lock striking plates, anchoring lugs and wood primer for the
back
Ceiling boards Gypsum board in 6.4 mm thickness. Boards in 900 mm and 1,200 mm widths, and lengths from 1.8 m to 4.8m
in 300 mm increments. Fibre cement (for kitchens, bathrooms and outside) in 4 mm and 6 mm thickness. Joint-
ing strips and cornices in various lengths, but 3 m is most common
Glass for windows In number stating size of pane, thickness and type according to the window schedule. Remember SABS codes
that require safety glass in glass panel doors and window panes over a certain size
Ironmongery and finishing (door In number. Check what comes with screws, plugs for fixing
locks, toilet paper holders, towel
rails, curtain rails)
Ceramic wall and floor tiles Usually in boxes of 1 m2, 1.5 m2 or 2m2. Remember spacers, tile adhesive in 20 kg pockets (approx. 4m2/pocket
cover rate), tile grout in packets of 1,5 kg or 20 kg
Flooring Carpeting: Tiles of 500x500 mm in boxes of 2 m2 fixed with adhesive, or rolls 2.75 m wide fixed with tack strips
(usually on supply and fit basis by specialist sub-contractors)
Vinyl flooring: Tiles in boxes of 1 m2 or rolls 1 m wide. Remember adhesive, skirtings, stair nosings, edge strips.
Uneven floors need to be made level and smooth first with a self-levelling screed such as “Pavelite”
Plumbing and drainage There are a myriad fittings and bits and pieces to buy, and it is best to sit down with the plumber or the sales/
technical person at the specialist shop to work out quantities. Remember consumables such as hemp, thread
tape, putty, PVC glue, solder, river sand for bedding of sewer pipes, and holder bats for fixing pipes to walls
Electrical installation As plumbing above
External work Fencing (m), paving (m2), pre-cast walling (m), grassing (m2) usually done by supply-and-fit specialists, other-
wise same principles as above apply. Remember concrete for fence-post bases, bitumen paint for underground
portions of steel fence posts, and aluminium paint for above ground
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Getting the right price – shopping around

The first decision to be made is whether to always price all materials on each new
project from scratch, or whether to negotiate fixed prices for certain basic and
regularly used materials with one or more suppliers valid for a period of, say, three to
six months. If one builds one project at a time, the first option is the right one. If one
is constantly busy with many small projects such as individual dwellings, it is more
practical to agree fixed prices for generic items such as cement, brick reinforcement,
damp course, lintels, standard sanitary fittings and ironmongery and roof sheeting,
regardless of which project they are meant for. Orders are then automatically priced
at the agreed price until new prices are negotiated in bulk.
The latter approach usually requires big buying power and sharp negotiating skills to
be successful. There is also the risk of losing out on special offers and discounts on
selected products that come along from time to time, because one does not take the
time to shop around and keep an eye on the market. Regardless of the approach,
never accept the first price that comes along. Always shop around and negotiate
wherever possible. Remember off-the-shelf prices usually include a general cost
allowance for delivery within a certain radius. If you are collecting the materials
yourself, see if you can negotiate a further discount of around 2.5% to 5%.
Choose reliable suppliers

You will find that certain suppliers consistently beat the others on price, service
and quality. It is good to build relationships with such suppliers, but never let them
think they have you safely “in the bag”. Always keep them on their toes by keeping
an eye on the market and letting them know when they are slipping or taking a
chance with you.
Suppliers are chosen on the following criteria:

• Price, discounts and payment terms
• Prompt and efficient service
• Ability to deliver on time
• The ability to source material from elsewhere (in the event of running out of
stock) at the same price quoted
• After-sales service and technical resources for proper advice and servicing
The procedure for buying, and then managing the

materials supply chain
Orders are placed on the basis of the prepared schedule of materials described above,
or in the case of additional materials required due to underestimating or shrinkage,
on the basis of properly motivated requisitions, approved at the appropriate level
within the company.
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The procedure is as follows:

1. Write out by hand or produce computer-generated orders to the selected
suppliers for the supply of the materials
Remember that a purchase order is an offer to purchase and when accepted
by the supplier (usually tacitly by means of actual delivery) constitutes a legally
binding contract. It is, therefore, important that orders are correctly written out
in all respects, and that they cover all aspects of the deal.
Purchase orders should:
• be written or typed on pre-printed company stationery (in the form of
computer printouts or a bound book with carbonised tear-out copies)
• have sequential serial numbers to avoid fraud and duplication
and clearly state the:

• description, quantity and price of the items purchased
• applicable discounts (especially settlement discounts)
• delivery address and schedule of deliveries (quantities and dates), or where
quantities and dates are still uncertain, a note stating that the supplier must
await instructions for release, with an indication of the first expected release
• payment terms
Many contractors make use of computer software packages that link the
generation of purchase orders to the original estimates. Such a programme
will not allow the generation of orders that exceed the estimated or budgeted
quantities and/or prices, unless approved by a senior person with the necessary
powers of authorisation.
The original is sent to the supplier (even if first faxed).
Copies depend on the organisation’s internal administration system, but should
at least include a copy to:
• file (admin office)
• send to the site (usually with prices blanked out because that is confidential
information)
• send to the contract quantity surveyor if not based at head office
84
Put the name of your entity here

Purchase Order
Supplier: Stand no:
Order no: Date:
Please supply in good condition the following items:
Qty Description Cost (Rand) Deliver to Delivery date
All materials to be supplied to specification.

Any variation to materials described and ordered to be authorised prior to delivery.
All costs include delivery and VAT.
Requested by :
Print name Signature
Authorised by :
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2. Plan release of orders (delivery schedules) with production team

This is done in all cases, but is especially important on tight inner city sites
where space is limited. Do not get materials delivered to site too soon. Risks of
this include increased likelihood of damage, multiple handling due to limited
storage space, rusting, for example, steel reinforcing, windows, and white rust
on galvanised roof sheets stacked on top of each other.
An example is where one places the order for the total number of bricks required
(to get best price and ensure your requirement is reserved by the supplier), but
advise the supplier to deliver only, say, 10 000 bricks every third day starting
on a particular date.
3. Receive and control (check physical goods vs. delivery note)

It is important that a competent person takes receipt of deliveries to site, and
that he or she is trained to thoroughly check the physical goods against what is
contained in the delivery note, to ensure:
• The correct quantity as stated on the note is delivered. Short deliveries are
noted on both contractor and supplier copies of the delivery note
• There is no damage to the goods (and contamination of aggregates by
excessive organic material). Damaged goods are sent back and a note to that
effect is made on both the contractor and supplier copies of the delivery note.
Also check for excessive breakage of bricks, and do not accept the broken
bricks if there are too many (say more than 2% of total load) – remember
you will have to cart it off site as rubble at your own cost later if you do not
force the supplier to take it back at the time of delivery
The off-loading process must be supervised, and the delivery note should only
be signed once this person is satisfied that no further damage occurred during
off-loading.
Signed delivery notes must be carefully looked after on site and sent to the office
for filing and further processing on a daily basis.
4. Storage, issuing and handling of materials on site

Storage facilities must be:
• be of a nature that ensures materials are safe and protected
• be planned for minimum handling
• have easy access
• If materials are delivered to the central yard first, and distributed from there
to individual sites, the following aspects should receive special attention:
• Issue and control
• Safe moving of material
5. Before paying
For all materials supplied, the supplier must provide you with the following
paperwork:
• Written quotation (before ordering)
• Delivery note
86

Receipt of materials
Supplier: Stand no:
Supplier invoice No.: Our order No.:
Date: Time:
The following items have been received in good condition and order:
Qty on order Qty supplied Description of items and remarks Under/over supply

Materials stored in yard/store room on site.
Materials stored at stand no. receipt of which is signed for by the owner
(By signing for the receipt of these materials the owner accepts the responsibility of safe guarding the materials
against theft or damage)
Materials inspected by:

Materials inspected by:

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• Priced invoice for each load or batch of loads

• Consolidated statement summarising all invoices for the month (usually for
all supplies up to the 25th day of the month)
Payment is made according to the statement, but before paying, the following
steps must be taken:
• Reconcile all invoices with original quote, and the written purchase orders,
to check that materials of the correct type and quantity, and at the right price
are being charged for as quoted and ordered
• Reconcile all invoices with delivery notes to ensure that the materials charged
have actually been delivered, and pick up any notes on damaged and returned
goods, and short deliveries. Check further delivery notes to see if the shortfalls
were rectified, and if not, adjust the invoices accordingly
• Reconcile the statement with the invoices in the batch, make adjustments
as necessary and check that all agreed settlement and other discounts have
been allowed
Sometimes a problem with materials delivered is not picked up during delivery,

and not, therefore, noted on the delivery slip. A more qualified or senior person
may only later notice that the wrong or damaged materials were delivered. The
supplier is then notified, the goods are returned, and if not immediately replaced,
a credit note must be issued. Ensure credit notes are claimed and payment
received, or adjustment made to invoices and statements before paying.
6. Follow-up
Progressing
File outstanding requisitions or release orders in delivery date sequence so that
each morning deliveries due can be noted, and action taken if they have not
been received by the afternoon. Re-file in revised order of promises and keep
monitoring.
Materials progressing record

Material: Plaster bricks Order no. P3/016 Date: 27 Nov
Supplier: Very good bricks Quote ref: P3/BKS/VGB Date: 18 Nov
Deliveries due according to release schedule:
15 Jan – 10 000
18 Jan – 20 000
25 Jan – 10 000
Total due 40 000
Deliveries
Enquiry date Results
Date Qty Left
First 10 000:
16 Jan 10 000 Promised 17 Jan 17 Jan 6 000 4 000
17 Jan 4 000 Promised 18 Jan 19 Jan 4 000 0
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Monthly reconciliation of deliveries, stocks and usage

Deliveries, stocks and usage of basic bulk materials such as aggregates, bricks and
cement should be reconciled regularly so that production is not affected. The
reconciliation also serves as a check on losses and waste. At a certain stage, for
instance, the brickwork is measured as being 60% complete, therefore, say, 60
000 bricks should have been used. A check on deliveries shows that 80 000 bricks
have been delivered during the month, so there should be 20 000 bricks in stock.
However, a stock count reveals only 14 000 bricks on site (remember that some
bricks may be at different parts of the works already ready for the bricklayers, so
check the whole site – not only the stockpile). In the tender, provision was made
for 5% waste on brickwork, meaning that a maximum of 63 000 bricks (60 000
plus 5%) should have been used. The reconciliation shows an actual shrinkage of
6 000 bricks or 10%.
A total of 3 000 bricks are unaccounted for and the cause of this should be
investigated. A first rough check should be to look around the site to see if there
are unusually large piles of broken bricks and rubble lying around. If observation
and checking reveal no obvious signs of excessive breakage during off-loading, or
wastage on site, then you should keep a closer watch on delivered quantities through
periodic spot counts. Drivers (and transport sub-contractors) often run side operations
where some of the materials intended for your side end up being sold along the way.
Fortunately, reliable suppliers these days often keep track of the movements of their
delivery vehicles through tight control of driver logs or even satellite tracking.
• In the tables below, the actual quantity used is the total of the opening stock
and deliveries for the month minus the closing stock, and the shrinkage is the
difference between the actual quantity used, and the theoretical quantity that
should have been used as per the measurement (there is already some cement
on site when brickwork starts – left over from concrete work).
Month 1:
Monthly reconciliation of materials stocks: Date: 25 March
Quantity used per Deliveries Closing Actual quantity
Material Opening stock % Waste
measurement during month stock used
Plaster bricks
60 000 0 80 000 14 000 66 000 10%
(number)
Cement
360 200 200 20 380 5.5%
(number)
Building sand m3 42 0 60 15 45 7.1%
Month 2:
Monthly reconciliation of materials stocks: Date: 25 April
Quantity used per Deliveries Closing Actual quantity
measurement during month stock used
Plaster bricks 20 000 14 000 10 000 2 000 22 000 10%
Cement 120 20 200 90 130 8.3%
Building sand
14 15 18 18 15 7.1%
m3
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Month 3:
Monthly reconciliation of materials stocks: Date: 25 May
Quantity used per Deliveries Closing Actual
Measurement uring month stock quantity used
Plaster bricks 20 000 2 000 20 000 1 000 21 000 5%
Cement 120 90 200 160 130 8.3%
Building sand m3 14 18 0 3 15 7.1%
A running tally of the above would show the total cumulative usage and waste
figures at the end of each month, as well as upon completion of brickwork at the
end of Month 3, for example:
Cumulative table at end of Month 3:

Monthly reconciliation of materials stocks: Date: 25 June
Quantity used per Total Deliveries Closing Actual quantity % Waste
Material Opening stock
Measurement to date stock used Total
Plaster bricks 100 000 0 110 000 1 000 109 000 9.0%
Cement no. 600 200 600 160 640 6.7%
Building sand m3 70 0 78 3 75 7.1%
Management of labour
There are basically four types of labour on a construction site:
1. Permanently employed registered workers who receive a regular wage or salary,
and a range of benefits such as leave, medical aid, UIF registration, insurances,
bonuses and trade union membership
2. Contract workers who are employed for a specific period of time, or for the
duration of a contract
3. Task-based (“piece work”) workers who are employed to perform a certain piece of
work (for example, excavate the foundations for one house) for an agreed and set
amount of pay
4. “Casual” workers who are hired on a daily or weekly basis, and usually receive no
other benefits than their agreed daily wage. Casuals are recruited by putting up signs
advertising work at the site, or by driving to spots in the city where they are known
to congregate in the hope of getting picked up (usually near large building supply
stores in areas where a lot of new development and construction is taking place)
The issue of casual labour is a contentious one because exploitation and insecurity are
rife in the construction industry. This is due to the fluctuating demand for labour on
construction projects, and the fact that there are people desperate for employment.
If employing casual labour is unavoidable, it is up to the conscience of the individual
entity acting as employer of such labour to treat workers as fairly as possible
Not being an ongoing contracting business in the conventional sense, the entity will
work almost exclusively with sub-contractors and temporary construction teams,
and will have very few if any individual workers in its employ. It may wish, however,
to assist its sub-contractors in good labour management, through advice, training,
and setting contract conditions for the treatment of workers.
90
Managing labour on site involves the following aspects:

• Fair and equitable treatment and management of labour relations within the
framework of the law and the principles contained in the Constitution
• Fair pay for the job
• Cultivating and maintaining loyalty, discipline and productivity – this implies the
provision of training and mentoring, incentive schemes, clear procedures and rules
for activities and conduct on site, including appropriate disciplinary procedures,
and inspirational leadership at all levels of supervision and management
• Promoting health and safety for workers on site
• Clear agreements on targets and outputs, and remuneration and benefits
• Efficient wage administration – correct processing of wages due, regular and
timeous payment
• Providing good supervision (firm, but fair)
• Assigning clear responsibilities to supervisors, in line with their experience and
ability, and giving them authority equal to their responsibility
• Allocating a manageable number of workers per supervisor
• Establishing reporting systems
• Organising the workforce at all levels into effective and manageable units, and
ensuring that everyone knows where they fit in
Some of the functions of supervision on site are to:

• Motivate workers to work efficiently
• Give workers clear instructions, and monitor that these are carried out correctly
• Ensure acceptable and agreed standards of quality and workmanship
• Ensure that health and safety measures are adhered to
• Maintain a sense of urgency, and high activity levels on site
• Measure and record outputs (productivity)
• Provide someone on site that workers can report to, or lodge complaints and
grievances to
Supervision can take place at different levels:

• Gang leaders supervise teams of workers
• Foremen or section foremen supervise gang leaders
• Site agents/managers supervise foremen
• Contracts managers supervise site agents
Note: Payment of wages or salaries

Having cash in transit or on site should be avoided. The risk of being robbed is very
high. Criminals hang around branches of banks where they know large cash withdrawals
are made for wage payments, and follow people to site or to a convenient place for an
ambush. All workers should be assisted to open a bank account, and payments should
be made electronically by funds transfer. Allow time for transfers to go through, and on
payday give workers enough time to make cash withdrawals before close of business,
or before going home to areas where there may not be ATMs.
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Management of plant, tools and equipment

Equipment used on building sites is usually divided into two distinct categories:
• Tools – small hand-held equipment such as trowels, spirit levels, hammers, tile-
cutters, picks and shovels, and the many types of power tools such as drills, angle
grinders, belt sanders and planes
• Plant – larger items (usually with an “operator”) such as concrete mixers, dump
trucks, mechanical excavators and loaders, mechanical hoists and tower cranes,
and constructional aids such as formwork and scaffolding
The distinction between these types of equipment is important as it affects the

contractor’s bookkeeping and accounting, and is used in pricing for tenders, resource
allocation and planning for execution. Expensive pieces of large plant on a site
need to be kept busy continuously with minimum idle time to justify the high rental
charges or high annual costs, if owned (depreciation, finance charges, insurance
premiums, and licensing fees).
If the entity has its own core team of workers doing basic jobs such as digging and
concreting foundations, it will need its own equipment, such as:
• Picks and shovels
• Wheelbarrows
• Straight-edges, hammers, levelling pegs and spirit levels (for levelling concrete)
• Pliers, screw-drivers, saws, and spanners and wrenches
• Trowels and floats
• A power drill and angle grinder
• Profiles and gauging rods, building lines
• A surveying tool such as a “dumpy level”
• A good quality water hose (say 20 mm x 30 m)
Some of the above can be sold off to workers or sub-contractors and/or used by
maintenance departments after completion of construction activities.
All tools and equipment owned by the entity must be listed on a register, and a stock
count held regularly (especially after completion of each contract). A separate daily
register of tools booked out and received back must be held for each site. The registers
must also note the condition of equipment when booked out, and when booked back
in again.
In addition, maintenance and servicing plans and schedules, and service logs, should
be kept for larger pieces of equipment and all tools and plant that are operated
mechanically.
The working life of equipment depends on factors such as:

• Temperatures in which they operate (cold starts of machines with internal
combustion engines on winter mornings increase wear and tear of engine parts,
and the consumption of lubricants)
• Dusty conditions on site that increase abrasion of moving parts
92

Issue of tools/equipment on loan
Sub-contractor: Stand no:
Date: Time:
The following items have been received by the sub-contractor, in good condition and working order, specifically on
loan for a limited time period. Ownership of these goods remains that of the entity:
Qty Description Condition Due return date
Any damage (excluding fair ware and tear) or non return of these goods will be for the account of the
contractor, who hereby agrees that the cost of repair/replacement will be deducted from any payment due to
him by the entity.
Goods received by the:

sub-contractor Print name Signature
For the entity:

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• Regular cleaning, lubrication and servicing

• The care with which they are used – avoiding overheating of power tools and
engine-driven plant
Workers must be trained to feel responsible for equipment, to clean equipment

straight after use, and maintain and oil equipment regularly. It is a good idea to
appoint one person to take overall responsibility for accounting for all equipment
used by a team every day, and to make sure the others comply.
Skilled workers and artisans such as bricklayers, plasterers, carpenters, tilers and
plumbers (including sub-contractors) should have their own personal tools. This will
ensure they will look after these expensive pieces of equipment.
Unless the entity is going to be building continuously for some time, it is usually
more cost-effective and less troublesome to hire larger items of plant as and when
needed, rather than to own them. However, if you are going to do a lot of building
it is practical to invest in items such as:
• A small concrete mixer that can be easily moved around on site, or between
sites on the back of a bakkie
• Hand-held pneumatic compactors (for example, a Wacker) or a small mechanical
roller or plate compactor (for example, a Bomag)
• A basic set of scaffolding frames and boards, and props
• A brick cutter
• Control sheet for issuing tools and equipment on loan to sub-contractors
Managing sub-contractors
General
When planning the execution of the works, a resource allocation is done in
conjunction with a complete list of activities or operations on the project. During
this process it is decided which work will be carried out by sub-contractors,
including planning of the requirements (numbers and skills levels, labour-only or
supply-and-fit).
Sub-contractors can be identified and invited to tender (or negotiate) through word
of mouth, newspaper advertising, billboards at the site, or through the appropriate
local community structures.
Unless you have checked their track record and references (including physical visits
to projects completed by them), try out new sub-contractors on a probation system.
Give them a small part of the work to start with, and monitor their performance and
capability from the start. They might struggle with small aspects of the work that can
easily be rectified on the spot with guidance and training from the site supervisor.
Sometimes the sub-contractors may show potential and willingness to learn, but will
require more guidance, training and/or mentoring. You will be able to see if they
have potential; if not, you will have to let them go.
94
When signing sub-contract agreements, make sure the following is included:

• Agreement on price and performance outputs (basis for payment)
• Payment frequency and methods (bank accounts and type of payment preferred
(e.g. electronic funds transfers))
• Dispute-resolution procedures that allow for inexpensive alternatives to litigation
and arbitration, such as mediation
Labour-only or supply-and-fit sub-contractors

Most of the less specialised types of work or trades that make up the shell and basic
finishes of the building(s) is done by labour-only sub-contractors, with the main
contractor providing materials, and larger types of plant. Labour-only sub-contrac-
tors are used for:
• Foundations and general non-structural concrete work
• Bricklaying
• Plastering and screeds
• Painting
• Tiling
• Roofing
• Finishing carpentry (fixing skirtings and ironmongery, hanging doors)
With more specialised types of work, it is more practical to allow the sub-contractor
to work out the types and quantities of materials required, and to provide it – this is
done by supply-and-fit sub-contractors. Many of these sub-contractors carry small
stocks of the most commonly used fittings, fasteners and consumables used in their
trade. The work in this category includes:
• Plumbing
• Electrical work
• Glazing
• Ceilings
• Fencing
• Paving
• Formwork
• Reinforcing steel
• Kitchen cupboards and built-in cupboards or wardrobes
• Curtain tracks
• Access control and security systems
• Lifts for multi-storey tower blocks
Depending on the entity’s technical expertise, its willingness to take on the supply
of more specialised materials, and the availability and skill of local labour-only sub-
contractors, most of the above could also be done on a labour-only basis. This places
a heavy burden of risk and co-ordination on the entity as contractor, and requires
a high level of capacity and skills (in-house and/or outsourced).
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Some of the issues that need decisions and management in labour-only sub-con-
tracting, are:
• Agreeing who provides what tools and equipment – it is customary for the sub-
contractor to provide the personal tools used by artisans such as trowels and
floats, spirit levels, building lines, hammers, chisels and bolsters, saws, tile cutters,
paint brushes and rollers
• Agreeing on how to deal with excessive waste, and damage in handling of
materials supplied by the main contractor – it is a good idea to agree on
reasonable figures for consumption and waste beforehand, and to make the
sub-contractor responsible for consumption and waste in excess of the agreed
figures
• Agreeing on how to deal with loss through theft – it is usual to insure against
this, but to make the sub-contractor responsible for any excesses payable on
materials lost while in their direct care
• Agreeing on how to deal with defective work. Sub-contractors must be held
liable for the cost of repairing defective work. The problem is that while they
may be able to re-do the work without extra compensation, they can often not
afford to replace materials that are wasted in the process, and some kind of
compromise is usually negotiated
An agreement can be made with labour-only sub-contractors (or for that matter, with
community-based labour teams that intend setting themselves up as sub-contractors),
where the entity purchases tools and equipment at the beginning of a project, and
then sells it to the workers on the basis that the cost is recovered through instalments
deducted from each progress payment to the worker/s, so that by the end of the
project they own the equipment.
96
A Pro Forma agreement is given below.
Agreement of Purchase and Sale of Equipment
Sub-contractor/team no: Date:
Understanding and agreement:

The entity requires certain construction work to be undertaken.
The entity has the skills to undertake this construction work.
The entity does not have the tools & equipment required to undertake this construction work.
The entity and the sub-contractor have entered into a separate agreement in which the contractor will
undertake the construction work.
It is agreed between the sub-contractor and the entity that:
• the entity will purchase the required tools /equipment (as described in the schedule below)
• the sub-contractor will have use of the tools /equipment as from signature of this agreement
• the sub-contractor will be responsible for care, maintenance and protection of the equipment from the
time of taking possession of it
• the sub-contractor will make payment to the entity as described in the payment schedule below.
• once all payments are made as described in the payment schedule below, ownership of the tools/equip-
ment will rest with the sub-contractor
• until all payments are received, ownership of the tools /equipment will remain with the entity
Schedule of tools/equipment:
Qty Description of tools/equipment Rand value
Schedule of payment:
Payment No Due date Amount
Any damage (excluding fair wear and tear) or non-return of these goods will be for the account of the contractor, who hereby
agrees that cost of repair/replacement will be deducted from any payment due to him by the entity.
Goods received by the sub-contractor:

Who agrees to the payment schedule Print name Signature
For the entity: Print name Signature
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Quality control
Quality assurance (QA) and quality control (QC) is a “science” in its own right,
and many large manufacturing and construction companies have instituted
comprehensive Total Quality Management (TQM) systems in their enterprises.
Quality construction starts with correct design, detailing and specification; selecting
(and training, if needed) the right contractor or sub-contractors; followed by diligent
monitoring and supervision. The contractor should strive to establish, through a
combination of training, incentives and discipline, a “culture” of quality where
everyone is part of the QA team (as occurs in Japanese factories).
Maintaining quality on site is the responsibility of the contractor doing the work. The
following persons, institutions and legal and other guidelines assist in what should
be a total team effort to ensure acceptable quality:
• The professional team – project manager, architect, consulting engineers
• Inspectors from the Provincial Housing Department, local municipality, the
NHBRC and financial institutions
• The clerk of works (c.o.w.) and/or resident engineer (RE) if one is employed
• The National Building Regulations (NBR) authority
• Guidelines, standards and codes of practice laid down by the SABS and the
NHBRC
• Agrément and MANTAG certification of non-conventional building products and
systems by Agrément SA
For the entity acting as part-time contractor, quality on site can be promoted by
following a set of simple steps, including:
1. Proper selection, handling and storage of materials on site to avoid damage to
components and articles, spoiling of cement and timber products by water, and
contamination of aggregates
2. Calling for samples of materials from suppliers and inspecting them for quality
before ordering
3. Regular testing of compaction of filling, and concrete crushing strength, by
making and submitting concrete test cubes to the nearest laboratories
4. Getting bricklayers and plasterers to build samples of work to set an agreed and
acceptable standard before the main work starts
In addition, site supervisors must observe the following precautions during the
execution of the work:
• Compaction of filling under floors
Common practice when excavating trenches is to dump the excavated material on
the inside of the future room, and roughly level and compact the total depth in one
operation once the foundation walls are built up to surface bed level. This means
only the top portion is properly consolidated, and subsidence and cracking of floors
can occur later. The proper method is to place the filling in layers not exceeding 150
mm to 200mm thick, dampening and compacting each layer thoroughly before the
next layer is placed.
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• Remember to allow mortar in foundation brickwork to set for at least three days
before using mechanical compactors, as the vibrations may crack the joints and
loosen bricks.
• Proper curing of concrete and plastering
Large exposed concrete surfaces such as surface beds and slabs must be cured for
at least seven days after placing to avoid cracking, by wetting with a fine spray or
covering with plastic sheeting or wet sacking as soon as the concrete has set (within
one to two hours), and then keeping it covered or wetting with a hose three or four
times a day. Special care must be taken on very hot and very dry, windy days.
Plastering of walls should be done when the building has been roofed, but even
then, plastering should be cured by dampening with a fine spray, as for concrete.
• Proper surface preparations to receive subsequent work
Excavated surfaces of foundation trenches and filling under floors must be
compacted and dampened before concrete is placed against it to avoid rapid
absorption of water from, and subsequent loss of strength of the concrete.
Brick and concrete surfaces must be thoroughly clean, dry and free of loose bits
or dust before applying plastering or screeds. Smooth concrete surfaces must
be roughened by chipping (and then cleaning again), or by applying a cement
slurry coat or patent plaster key before plastering. Give brickwork, and especially
concrete, some time before plastering, to allow for the structure to complete its
drying shrinkage and settlement processes.
Surfaces to be painted or waterproofed must be cleaned and prepared according
to manufacturers’ instructions before painting, and the correct paint systems used
(bonding liquid, knotting, primer, undercoats and finishing coats). Do not paint
concrete or plastered surfaces too soon after they have been put in place.
• Instal lintels over windows and openings correctly
Lintels on their own, or with only a few courses of brick or block work over
them, do not function properly as “beams”, and will sag. There should be at
least five or six courses of brickwork (preferably reinforced with “brickforce”)
over lintels to bond with the lintel into a deep beam. Lintels must have adequate
bearing surfaces supporting them on either side of the opening. When a lintel is
placed over an opening, give it positive camber (slight upward bending) with a
temporary support in the centre. When the brick work over the lintel has dried
and settled after a few days, the support can be removed and the lintel will sag
slightly as it takes the full load, and end up straight rather than slightly sagging.
• Mixing and using concrete and mortar on site
• Use clean and well-graded aggregates
• Use clean water
• Do not be tempted to add too much water to get better workability
• Use “fresh” cement (discard if older than six weeks, or if showing signs of
moisture or hardening in the pockets)
• Use mixed concrete or mortar before setting is complete (within two hours
of mixing, sooner on dry, hot or windy days)
• Do not re-use mortar or concrete that has lost its plasticity by mixing in
water again
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• Be careful of segregation of concrete constituents during transportation (after

a very bumpy ride) or placing (pouring from heights of more than 0.5 m)
• Do not overdo striking off, trowelling and floating of surface beds and screeds.
It causes “bleeding” (congregation of lighter cement and mix water on the
surface, weakening the concrete below, and creating a thin, wet cement-rich
layer at the surface that will crack or crumble later)
• A few general tips
• Check that the setting-out of the works is square and as per the dimensions
indicated on the drawings
• Constantly check if brickwork and plasterwork is still level and plumb
• Keep wet mortar off aluminium frames
• Protect wooden frames against bumps and scuffing
• Ensure door and window frame lugs, and that roof anchors are securely built in
• Fill solidly with mortar behind steel door frames as the work proceeds
• Ensure that roof trusses are installed level, plumb and at the right centres,
and that roof structures are adequately braced
• Do not hammer roofing screws through corrugated or profiled sheeting.
Drill holes first
• Protect completed works or partly completed works against damage during
further building operations
• Keep the site neat and tidy at all times. It is part of general discipline that
also promotes pride in the work, quality, health and safety
Check plasterwork to be plumb with spirit-level
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Required tests, inspections, approvals and

certificates
Compulsory tests
• Filling compaction tests
When the density of compaction of filling over site or under floors, paving and
roads is stipulated in the specifications by the engineer, tests will have to be
carried out by a specialist laboratory to determine whether or not the specified
densities have been reached. Densities are usually designated as follows:
• 88%, 90% or 93% MOD AASHTO” for light-duty applications, as for under
domestic floors, or bottom layers of built-up bases under roads and paving
• 95% MOD AASHTO for layer work under light- to medium-duty roadworks
such as in residential projects, and for middle layers in built-up road bases
• 98% MOD AASHTO for heavy-duty applications such as the final layers
under roadworks, and factory floors carrying heavy loads
Tests are carried out by sonar (sending light dosage radiation into the filling), or by
penitrometer (knocking a sharp peg into the filling, and measuring the resistance
or refusal level). Both these devices are small enough to be transported on the back
of a pick-up truck.
• Concrete strength testing

Non-structural concrete such as in domestic strip-foundations and conventional surface
beds is usually specified in terms of mix proportions, for example, 1:3:6 concrete,
meaning if the cement, sand and stone are mixed in those proportions by volume, the
concrete should have sufficient strength for its intended purpose (there is a substantial
safety factor built in to allow for tolerances on site). No tests are required.
Structural concrete, on the other hand, is always specified by the design engineer
to have a specific crushing strength, for instance: “Reinforced concrete 25 MPa in
columns”. MPa stands for Mega Pascal, a commonly used SI unit of pressure.
A concrete laboratory is able to design mix proportions that give the required
strength for aggregates from a particular source. Alternatively, the Portland Cement
Institute (PCI) publishes booklets that contain the nominal mix proportions
for a range of concrete crushing strengths. In this case, however, the engineer
cannot take chances, and the contractor is required to have samples from every
major pour tested by a laboratory. The PCI booklets mentioned above contain
instructions on how to make the test cubes, and when to have them crushed
(usually three sets of three from every pour, with three cubes crushed after seven
days, 21 days and 28 days, respectively). The strength of hardened concrete that
appears suspect can be reasonably accurately tested on site by the “Schmidt
Hammer”, a device that measures resistance to penetration; or by drilling out
cores and having them crushed in the laboratory.
• Drains and water pipes
Drain pipes are tested for correct falls, and drain and water pipes for leaks under
pressure. There are various methods these days (old fashioned “mirror” test, or
more modern laser-based methods). Your plumber should know about these
test requirements.
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• Tests on the electrical installation

Tests on electrical installations are a legal requirement, and are prescribed by
the SABS codes of practice.
Inspections
As the work proceeds, regular inspections are held by various parties. There are
basically three types of inspections:
1. Internal inspections by the main contractor to check on sub-contractors’ work
2. Inspections by the professional team employed on the contract
3. Inspections by third parties who have an interest, for example, the provincial
and local governments, municipality and financial institutions
Contractor’s own internal inspections

The contractor’s site agent and construction/project manager carries out regular
inspections to ensure that sub-contractors and labour are doing their work properly.
The work done at certain critical stages is either approved, or instructions are issued
to sub-contractors to rectify mistakes. Typical aspects that are inspected, include:
1. Setting out of the works
2. Foundations (before inspections by external parties)
3. Filling and services under surface beds
4. Walls and wall ties (building in of windows and door frames, roof ties, brick\
blockwork plumb)
5. Roofing – level, plumb, secure
6. Quality checks on finishing (plasterwork, carpentry, tiling, plumbing, paintwork
etc.)
7. Hand-over
These internal inspections are done before the inspections by external parties such
as the engineer or municipal inspectors.
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A pro-forma inspection sheet is given below.
Inspection report - Setting Out
Stand no.: Date:
Sub-contractor/team no.:
The setting out of unit and foundation on the site, according to the site plan, was inspected
on (date) by (name), and was found to be:
 Tick the appropriate box:.
Set out correctly to the site plan.
Set out square and true
Set out incorrectly to the site plan, and the site instruction number
has been issued to the sub-contractor t ocorrect the error
Set out in a manner that is not squre and true, and the site instruction number
has been issued to the sub-contractor t ocorrect the error
Set out incorrectly to the site plan, however due to the following reasons,
the contractor has been instrucdted to continue
Important remarks
Inspection carried out by:

For the sub-contractor:

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Inspections by the professional team

Inspections of the work are carried out regularly (usually just before progress meet-
ings on site) by the professional consultants such as the architect, structural/civil and
electrical engineer to monitor quality and ensure that the building is being built in
accordance with the drawings and specifications. Consultants must also be called
out to inspect certain specific aspects such as:
• Foundation excavations (and reinforcing steel where required) before concreting
– by architect and/or engineer
• Filling under floors before pouring surface beds
• Formwork and reinforcing steel before concreting columns, beams and slabs
• The range of inspections at completion and hand-over as described more fully
in the section on contract administration
The quantity surveyor should also be called to measure up on site the actual
quantities of provisionally measured work such as foundation depths, and plumbing
and drainage before the work is covered up.
Building control – inspections, approvals and certificates

The National Building Regulations oblige municipal building offices to carry out
building control, including scrutiny of building plans, inspections of certain aspects
of the work, as well as issuing of electrical compliance and occupation certificates.
Municipal inspectors usually need to be called out for the following inspections:
• To approve excavations and that the building is correctly set out not to encroach
on building lines (and to check if reinforcing steel is in place for areas where it
is prescribed because of soil conditions) before concreting
• To approve compacted filling before surface beds are poured
• To check that Damp Proof Courses (DPC) are in place under walls and window sills
• To check that drain pipes are laid properly before they are covered up
• At completion, to check that electrical installations are safely wired, and that
buildings have been completed in accordance with the approved plans, and are
habitable, before issuing compliance and occupation certificates
It is usual to call out the inspector the day before an inspection is due, either by
telephone, or by placing an inspection request slip in a designated box at the
municipal building office.
If there is an engineer working on the project, many municipalities will forego some
of the inspections above, and rely on his professional responsibility of ensuring the
building complies with safety requirements.
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Other external inspections (funders)

Funders such as the Provincial Housing Department (subsidy), the National Housing
Finance Corporation (NHFC), and private financial institutions will send out their
own inspectors to approve the work done before paying out subsidy tranches or
loan draw-downs. When applications are made for payments, the institutions will
automatically send out their inspectors.
In addition, where a project is registered with the National Home Builders Registration
Council (NHBRC), that organisation will also send out inspectors at regular intervals
to monitor the quality and correctness of work.
Health and safety

Introduction
Maintaining health and safety on a building site requires common sense and
carefulness. In addition, however, there are statutory requirements in this regard
contained mainly in the Occupational Health and Safety Act (OHSA), Act 85 of
1993 and its amendments.
Anyone acting as a building contractor should obtain and study a copy of OHSA and its
regulations. The Act lays down guidelines and prescriptions for, among other things:
• Direct duties owed by employers to workers such as:
• Training
• Taking adequate precautionary measures to prevent accidents and to promote
safety
• Co-operative duties, such as:
• Worker representation with regard to health and safety matters – written
appointment of a democratically elected safety representative where more
than 20 persons are employed, and committees where more than one
representative is appointed
• Employer/employee co-operation and self-regulation
• Obligation of the employer to comply with procedures that form part of
independent policing function of the Department of Labour
Safety and accident prevention – general measures

• Issue workers with correct protective clothing – boots and overalls generally, gloves
and goggles for working with power tools such as angle grinders, dust masks
• Maintaining adequate first aid kits, and training workers in basic first aid
• Regular inspection and servicing of tools and plant (including, for example,
checking wiring and plugs on power tools)
• Keeping sites tidy – not having dangerous obstacles (sharp pieces or piles of
rubble, planks with protruding nails) lying around over which workers can trip
and fall
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General signage Signage requirement for protective clothing and accessories
• Ensure temporary support works, such as scaffolding and props, are secure and
not overloaded. Scaffolding next to multi-storey structures must be securely tied
back to the permanent structure
• Storage and handling of toxic and hazardous substances – providing training in
how to handle them, and providing responsible supervision
• Placement of signage to alert all to possible danger, hazardous substances etc.
Common accidents on building sites

• Collapse of walls, sides of trenches, and steep embankments – especially after
heavy rains
• Collapse/overturning/falling of ladders and scaffolding
• Falling bricks and tools from higher floors
• Materials dropped from cranes or other lifting devices due to inadequate
fastening
• Workers falling off roofs, scaffolding and ladders – use proper harnesses when
necessary, for example, on steep roof
slopes)
• Burns and scalds
• Electrical shocks
• Careless or incorrect use of tools and power
tools (for example, shattering of grinding discs
and breaking off of drill bits when forced)
Unsafe scaffolding Workers have proper safety harnesses
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Security
Site security is an important aspect of risk management on building sites. Security
is required to prevent theft and vandalism, and to keep unauthorised persons off
the site. It can be quite a costly item, and measures must be constantly monitored
for both functional effectiveness and cost-effectiveness. The
usual measures are a combination of the following (minimum
requirements are highlighted in bold):
• Fencing and access control, which can be a simple gate

pass system, or a more sophisticated electronic swipe-card
system. Visitor logs should be kept
• Hired guards on site (including perimeter patrols at night).
This service can be provided by a professional outfit (which
is expensive), or by members of the local community
as part of job creation. In the latter case, the HC must
Fenced site
ensure the members are properly trained and equipped
(with uniforms for recognisability, for instance), and that
all legalities and issues around liability and insurance are dealt with. Remember
that the private security industry is regulated
• Placing of materials stores, and parking of plant and equipment where they
are visible from site offices and guard huts, and are well-lit at night
• Armed response service - optional
• Regular liaison and good relations with local police
• Regular liaison and good relations with local community structures
Contract administration
The process
After the signing of the building contract, the contractor takes possession of the
site for the duration of the contract. This is done formally through a site hand-over
meeting. At this meeting times and agendas for future meetings are usually agreed
on, boundary pegs and datum level benchmarks are pointed out to the contractor
(after which he takes responsibility for their maintenance and protection), and
samples of brickwork, etc. are asked for to set acceptable standards.
Standard procedures for contract administration include holding regular (weekly,

fortnightly or monthly) site meetings where progress, quality, contractor’s queries and
information needs, etc. are monitored and discussed in order to facilitate the smooth
running of the project. There are also procedures for claims from the contractor,
variations required by the employer, interim progress payments to be made to the
contractor, and for practical and final completion of the contract.
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In cases where the entity acts as client/employer/developer, the principal agent

or project manager working as its agent runs the contract administration, with the
contractor responsible for:
• Hosting site meetings
• Providing assistance to the professional team in monitoring, measurement, pricing
of variations, project cash flow forecasting
• Providing information required for monitoring progress
• Maintaining drawing registers and site instruction books, and relaying information
from the employer and his agents to site staff, sub-contractors and suppliers
• Co-ordinating sub-contract works
In some cases, the role of the professional team is limited to design only, and per-
haps limited supervision. In such cases, the entity acting as main contractor will take
on much of the contract administration. Most of the guidelines and prescriptions
referring to the architect below will apply to the contractor, and references to the
contractor will apply mainly to sub-contractors working for the entity. In summary,
the following aspects are managed:
• Site hand-over to contractor
• Regular progress and other project meetings
• Regular monitoring of:
• Quality
• Progress
• Contractor’s resources on site (personnel and plant)
• Daily activities and incidents (site diary kept by contractor)
• Record of rainfall and bad weather conditions
• Management of:
• Instructions (especially site instructions vs. variations)
• Contractor’s claims (extras and delays)
• Interim, Practical, Works and Final Completion procedures (inspections, hand-
overs, a defects list, etc.)
• Documentation management
Particular attention should be paid to the following areas of contract administration,

which often present problems, or are not well understood:
• Delays and extension of time
• Retentions/performance guarantees
• Breach of contract/non-performance
• Insolvency
• Ownership of materials paid for
• Practical completion/beneficial occupation
• Patent/latent defects
• Contractors’ claims
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Contract completion and hand-over

Standard building contracts are based on the following procedure:
• The contractor notifies the architect that the work is ready for occupation
• The architect carries out an inspection and draws up a list of incomplete and/or
unacceptable work (“snag list”)
• The contractor rectifies the items and calls for another inspection
• If he is satisfied that the building is fit for occupation, the architect will issue a
certificate of practical completion, and a works completion list
• The building is occupied
• The contractor attends to the items on the works completion list and calls for
another inspection
• If the architect is satisfied that only insubstantial defects remain, he issues a works
completion certificate and a final completion list. (The defects maintenance or
retention period of 90 days now starts, during which retention monies are held
back or construction guarantees remain in force)
• The contractor rectifies the items on the final completion list, as well as any new
latent defects that may appear during this period, and calls for a final inspection
at the end of the period
• If the architect is satisfied, he or she issues a final completion certificate, and all
outstanding monies are paid out to the contractor and guarantees released
• The contractor remains liable for latent defects for five years (10 years on
government contracts)
Project close-out
Apart from the contract procedures above, the following should happen at the end
of a building project:
• The contractor and/or architect obtains certificates of electrical compliance
and occupation, respectively, from the municipality and hands them to the
employer
• The design consultants prepare and hand to the employer “as built” drawings
for future use in maintenance, etc.
• All material and component warranties and guarantees obtained from suppliers
and sub-contractors by the main contractor are ceded and handed to the
employer
Defects liability/maintenance periods

The period between the first and second hand-overs (practical completion and final
completion, or between works completion and final completion in the case of JBCC
contracts) is called the maintenance, or retention, or latent defects liability period.
The length of this period can vary according to the type of contract. It usually is
from one to three months for building work, and 12 months for certain (mechanical)
services and civil contracts.
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The purpose of this period is to “test” the facilities and services under operational
conditions and to afford the client and consultants the opportunity to detect further
patent or visual deficiencies. Any deficiencies in supplied equipment, systems,
services, materials, workmanship, etc. (in terms of the contractual prescriptions and
specifications) which become apparent during this period must be repaired/replaced
by the contractor(s) at the contractor’s cost. Critical systems must be repaired as
break-downs occur, to ensure smooth continuous operations by the client. Non-
critical items are noted for repair/replacement at the end of this period.
It is important that all visual or reasonably detectable items (by an averagely qualified
person in that field) are identified during this period. Contractor(s) are, after this period,
only responsible for latent (hidden) defects, i.e. defects which could not be detected
by a reasonable inspection by a reasonable person at the time. This responsibility is
extended to a period of five years after final completion by contracts such as the JBCC,
and NHBRC enrolment.
Clients should be made aware that damage they cause during this period (for example,
when moving in furniture or equipment or operations) does not qualify for free repair
by the contractors.
Conclusion
The above is only a brief summary of the activities during the execution/construction
phase of a project. The key factors for project success remain leadership, co-operation
and trust between persons and parties. Without these, no project will be completed
successfully, even when the most sophisticated techniques are used.
Construction cost management

Cost-management processes
The construction process happens over relatively drawn-out periods, and involves
many parties and uncertainties in its execution. Construction costs are, therefore,
difficult to estimate and require special skill and discipline to manage or control.
Construction-cost management starts with proper estimating and budgeting, and
thereafter depends on regular and diligent monitoring, controlling and reporting
right through to project completion or phase-out.
Cost management involves the following major

processes
• Resource planning: Determining what resources (people, equipment, materials)
and what quantities of each should be used to perform project activities
• Cost estimating: Developing and approximation (estimation) of the monetary
costs of the resources needed to complete project activities
• Cost budgeting: Allocating the overall cost estimate to individual work items,
and projecting the expenditure over time
• Cost control: Monitoring and ensuring adherence to, and controlling changes
to, the project budget or cost base line
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The major cost-management activities as they relate to the stages

of a construction project can be summed up as follows:
Project stage Cost management activity
Project identification and initiation Setting upfront unit cost norms or square metre estimates based on broad
(Briefing stage) accommodation or functional parameters (cost planning)
Pre-design planning Preliminary unit cost/square metre/elemental estimates based on conceptual
(Conceptual design stage) drawings. Adjust briefs and/or budgets
Refined (elemental) estimates based on sketch plans. Proper documenta-
Pre-contract planning
tion and procurement leading to signed contracts that form the basis for cost
(Preliminary and final sketch plans)
control throughout the contract
Construction stage Monitoring, controlling and reporting of cost changes, and advising client on
(Working drawings) steps to take to avoid cost overruns
Project completion or phase-out Skilled and fair final accounting
Cost budgeting
Cost budgeting involves allocating the overall cost estimates to individual work
items, in order to establish a cost baseline for measuring project cost performance.
Cost budgeting usually includes cash-flow projections to enable the planning and
monitoring of expenditures over time.
Cost budgeting process
Inputs Tools & Techniques Outputs

1. Cost estimates 1. Cost estimating tools 1. Cost performance
2. Project schedule and techniques baseline
(Source: A Guide to the Project Management Body of Knowledge)
Cost control
Cost control is concerned with (a) influencing the factors that create changes to the cost
baseline to ensure that changes are beneficial, (b) determining that the cost baseline
reflects changes, and (c) managing the actual changes when and as they occur.
Cost control includes:

• monitoring cost performance to detect variances from plan
• ensuring that all appropriate changes are recorded accurately in the cost
baseline
• preventing incorrect, inappropriate, or unauthorised changes from being included
in the cost baseline
• informing appropriate stakeholders of authorised changes
Cost control includes searching out the reasons for both positive and negative
variances. It must be thoroughly integrated with the other control processes (schedule
control, quality control, etc.). For example, inappropriate responses to cost variances
can cause quality or schedule problems, or produce an unacceptable level of risk
later in the project.
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Cost control process
Inputs Tools & Techniques Outputs

1. Cost baseline 1. Cost change control 1. Revised cost estimates
2. Performance report system 2. Budget update
3. Change request 2. Performance measure- 3. Corrective action
(variations) ment 4. Estimate at completion
4. Cost management plan 3. Additional planning 5. Lessons learned
(including cash-flow 4. Computerised tools
projections)
(Source: A Guide to the Project Management Body of Knowledge)
The initial contract price of a building project is hardly ever the final cost to the
employer. All building contracts are based on the principle that if the execution of
the contract involves the contractor incurring additional costs or expenses which
could not reasonably have been foreseen at the time of tender, he/she must be
compensated fairly for such additional costs or expenses.
The initial tender or contract price is based on the pricing of quantities of work taken
off the drawings by the contractor himself in the case of a lump sum, or without
quantities, type of contract; and by the client or his quantity surveyor in the case of
a quantities-type contract. These quantities form part of a tender document which,
in the latter case, would be a bill of quantities.
Section of Document Purpose

To provide administrative information and
1. Notes to tenderers
general instructions to the tenderer
2. Preambles (specification)
2.1 General preambles (bound in or referred to as To provide tenderer with standards and
separate document, for example, Model Preambles codes of practice for execution of the work,
of ASAQS) and to assist in pricing adequately to meet
2.2 Particular or works specification or Supplemen- these requirements
tary Preambles
3. Preliminaries (“P & G”) To allow tenderer to price for contract
3.1 Conditions of contract (clauses listed) clauses with cost implication, and for
general indirect or site overhead costs, for
3.2 Standard/model preliminaries items example, supervision, temporary services
3.3 Special items and facilities, etc.
4. Trade bills consisting of measured items of work To allow tenderers to price for the direct
with quantities, provisional quantities, or PC amounts costs (labour, material, etc.) of executing
as the case may be the work
5. Provisional sums
5.1 Provisional sums To allow employer (through his agents) to
insert allowances for the cost of work (usu-
5.2 Item for contractor’s profit ally specialist sub-contract work) for which
5.3 Item for contractor’s attendance on specialist designs have not yet been finalised
sub-contractors
6. Final summary, including allowances for contingen-
To arrive at tender price or contract price
cies, VAT, etc.
112
A building contract price (based on accepted tender) may change during the course of
the contract due to any of the following:
• Re-measurement on site of provisionally measured quantities
• Changes in design and/or specification (“variation orders” or VOs)
• Adjustment of provisional sums and prime cost amounts (“PC amounts”) when more
accurate information (for example, tender prices) become available
• Delays and extensions of time, due to change in scope of work, lack of information,
etc.
• Omission of allowances for contingencies
• Inflationary or negotiated fluctuations in the cost of labour, materials, etc. (“Contract
Price Adjustments”)
Important criteria for determining who is liable for and must absorb cost changes:
• The type of contract (“With Quantities” or “Without Quantities”/Lump sum)
determines who will accept responsibility for the accuracy of quantities used to
determine the tender price.
• Whose responsibility was it, in terms of the contract and good common practice, to
avoid the circumstances that gave rise to the additional costs and expenses?
On a building project, the instruments/processes involved in cost control generally include

cost estimates/plans, budgets, cash flow projections, tender and contract documents
(including bills of quantities where available), progress payment certificates including
contract price adjustments due to escalation of labour, material and other costs, pricing
of variations, re-measurements and other adjustments, cost reports and final accounts.
The final account is a document, usually prepared by the quantity surveyor, which sets
out in detail, and then summarises, all legitimate and accepted changes to the original
contract price during the course of the contract. The final statement is a summary of
all the calculations involved in preparing the final account, which reflects all the cost
changes that occurred on a building project.
Cash-flow management (income and

expenditure)
Working capital requirements
A main contractor needs operating capital (cash and/or overdraft facilities at the bank)
to finance labour wages, cash purchases of material and other ongoing expenses in the
periods between monthly progress payments from the employer and/or funder. The
entity acting as main contractor would have the same requirements.
The amount required varies according to the nature of the project, sub-contract payment
terms, credit facilities with suppliers, arrangements with funders for release of funds
(and their administrative ability to stick to those arrangements), and internal ability
to manage cash flow. Experience shows, however, that a minimum of 10% to 20% of
turnover (contract value) is usually needed as an overall reserve in the form of cash
and/or overdraft facility.
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What is cash flow?

Cash flow is simply the flow of money in (income) and out (expenditure) of the
contractor’s purse on a project. Expenditure is due at fixed times (payday for
labour and sub-contractors, account payments due for suppliers), whereas the
corresponding income for work done can be delayed for a number of reasons, or
could even be less than the expenditure incurred in doing the work when disputes
or delays arise in the settlement of claims for extras, or substantial extensions of
time are not accompanied by monetary compensation for the extended site costs
(for example, rain delays).
If there is no “mark-up” on costs, meaning that, in theory, income is always exactly equal
to expenditure. This leaves no buffer for covering errors in estimating or measuring for
payment, or for shortfalls created when funders hold back retention monies.
Cash-flow forecasting
In order to prepare for temporary shortfalls between income and expenditure, and to
have adequate cash and/or overdraft facilities in place to bridge those shortfalls, the
entity must draw up cash-flow forecasts or projections as accurately as possible. This
is usually done by allocating monetary values for expenditures (from cost estimates)
to activities reflected on the building programme. Income is forecast in accordance
with agreed payment milestones, or valuation methods, allowing for the time it takes
to process payment applications.
In the case of the entity building with mark-ups on cost, or agreed contract fees,
expenditure flows will be forecast by linking cost estimates to building programmes,
but projections of income flows will be based on the “selling rates” for completed
work. Hopefully, estimating, pricing and on-site cost control will have been done in
such a way that project income at any given time of measurement for payment will
exceed the expenditure incurred. The problem of discrepancy between the date
income is realised, and the dates on which expenditures are due remain, however,
and bridging finance and/or cash reserves may still be needed.
Construction finance (operating or working

capital)
As stated previously, contractors cannot operate effectively without some working capital
to finance immediate expenses such as fortnightly wages and cash payments for certain
materials in the periods between receipt of progress payments or draw-downs.
For private contractors, the usual source of such bridging finance is a combination of
cash reserves (savings) and bank overdraft. Private contractors also tend to minimise
the requirement for cash by trying to negotiate extended payment periods for
materials bought on credit, and by “juggling” payments to larger sub-contractors.
114
If the entity, acting as contractor, qualifies as a developmental organisation, it will

be able to successfully motivate for assistance (for example, working capital loans
at favourable interest rates, and with less stringent conditions than a straight bank
overdraft) from development finance organisations such as:
• NURCHA, which supports small contractor development and unblocking of
stalled housing construction projects through the provision of bridging finance
• Small business support organisations such as the Industrial Development
Corporation (IDC), Ntsika, Khula, Small Business Development Corporation
(SBDC), and the Department of Trade and Industry (DTI)
Some commercial banks also have divisions that deal with small and emerging
contractors, and are able to provide special working finance packages.
The best ways to go about identifying and selecting the most appropriate option(s)
are to:
1. Contact all the above organisations and obtain information on the products they
offer, and the criteria for qualification
2. Get an accountant to help you assess your working-capital needs in conjunction
with estimators and contracts managers, and to prepare applications
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c
Co-operative community-based
construction
Reasons for community involvement in
development projects
The rationale for community involvement in projects that directly or indirectly affect the
lives and living environments of those in the community usually includes factors such as:
• “Buy-in” through participation
• More effective need-satisfaction/more choice
• Empowerment/autonomy
• Capacity building
• Local income generation
Participation should ideally take place at all levels of project planning and
implementation, especially with regard to issues such as site selection, layout
planning/urban design, unit design and specifications for housing, participation in
construction activities, etc.
Community-based construction – the

“development team” approach
Introduction
Community-based construction in a sensitive and non-imposing manner aims at the
use of labour-based projects to promote the emergence of local entrepreneurs who,
with adequate technical, commercial and financial support and instruction, could
in due course become fully fledged contractors.
In community-based projects, members of the community can also become involved in:
• The operation of stores and facilities
• The support provided to local contractors by involvement in administration,
monitoring of progress, etc.
• The transport of materials to local labour-only contractors
• The manufacture of certain materials
• The supply of minor materials
• The security of the site
Contractor development within a community will not take place without professional
support and the acquisition of external resources. The “development team” approach
can provide emerging contractors with the support that they require and, at the
same time, allow the community to retain ownership of the project and afford its
members opportunities for employment.
116
In the development team approach, experienced and suitably qualified people

assist local community-based contractors at the lower level of contracts with the
administration and management of their contracts, offer technical training, engage
specialist contractors, and supply the necessary materials and equipment. The
development team employs and trains members of the local community to run
stores facilities, monitor progress, assist with administration, etc. Normally, the
local contractor enters into a contract with the client, and the development team is
appointed directly by the client. The development team is regarded as the construction
facilitator that will arrange to provide resources that the contractor lacks.
The composition of a development team

The duties and responsibilities of the client, the development team members, and
the contractor, are summarised in the table below for the lowest level of labour-
based contract.
A client may require the development team to undertake additional construction-

related activities such as the co-ordination of the project, liaison with the public,
overall project management, etc. Conversely, the client may undertake certain
responsibilities, for example, design work or materials management.
Duties and responsibilities of the development team members

Body Duties
Client • Appoint a development team
• Fulfil obligations in terms of the General Conditions of Contract
• Provide finance for community-based contractors and the purchase
of materials
• Permit alternative tender structures
Architect/Engineer • Administer the contract
• Direct staff who:
• Check setting out
• Measure the works
• Conduct inspections to ensure compliance with specifications
• Arrange acceptance tests
Architect/Design engineer • Design the works
• Prepare contract documentation
• Advise on materials
Materials manager • Procure materials
• Store materials
• Issue materials
• Account for materials
Construction manager • Arrange for specialist work
• Arrange for the supply of plant and equipment
• Advise, assist and train the labour-based contractor in administra-
tion and execution of the contract
• Arrange fortnightly payments to the labour-based contractor
• Transport materials to the site
Community-based contractor • Provide supervision
• Provide labour
• Provide small tools
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Appropriate forms of contract for community

involvement in construction projects
Introduction
There are a number of “simplified” standard contract forms for building work that
have been specifically drafted for use on smaller works. Their use is not limited to
situations where so-called emerging contractors are involved, and they can be used
generally for smaller and simpler building projects (such as single dwellings, small
community centres and facilities, etc.).
The use of standard forms is generally recommended because:

• Professionals and other parties know the contents, and understand how they
work
• They will have been tested in the field and cover most situations that can arise
on a project
• Preparing new contracts is costly, time-consuming, and risky
Although it is wiser to keep to standard forms, there are some instances where
purpose-made contracts may work better, especially where labour-only contractors,
or community-based construction teams are being managed by the employer without
a main contractor.
Levels of contract
As construction develops, the role of the construction manager and materials manager
diminishes and the nature of the support that is required changes. To accommodate
developing contractors within a community at any stage of development or level
competence, different levels of contract with increasing responsibility being placed
on the contractor is required.
At the lowest level of community-based contract, the emphasis is on introducing

contractors to tender procedures and contract documentation; the acquisition of
basic technical and administrative skills; and the employment and supervision of
labour. At this level, contractors develop only limited managerial, commercial and
administrative skills, particularly with respect to the procurement of materials and
plant. At the same time, the responsibility assumed and the degree of contractual risk
is minimal, since at this level, all barriers to entry are removed to enable contractors
to participate in construction activities.
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Contractual responsibilities and development support required for

each level of contract:
Contractor’s Contractual Degree of Development Support
Level Type of Support
Responsibilities Provided
1 Construction • Provide labour • Offer advice, practical assistance
& materials • Provide small tools and training
manager • Provide and transport materials
to site
• Provide plant other than small tools
• Arrange for specialist work
• Arrange for fortnightly wages
manager • Provide most materials
• Transport materials from
yard to site, and provide • Provide plant other than small tools
certain materials • Arrange for specialist work
• Arrange for fortnightly wages
manager • Provide plant other than small tools
• Provide site office and
certain storage facilities • Offer materials for purchase
• Provide all materials • Arrange for monthly wages
• Arrange for specialist work
4 Mentor • Provide labour, materials • Conduct a tender workshop
and plant • Advise, coach, counsel, guide,
• Provide 5% surety teach, instruct and tutor the
• Engage specialist contrac- contractor
tors • Render assistance in the setting
• Finance all contractual up of proven systems to enhance
obligations management and business skills
5 Mentor • As for Level 4 • As for Level 4

• Provide 10% surety
Non-standard or purpose-made forms of contract

Drafting of contracts requires specialist knowledge, wisdom and experience, and any
deviation from standard contract forms must be approached with circumspection
and care.
The range of contracts is very wide, and only one example of a contract designed to
cater for various stages of contractor development or “sophistication” is discussed.
The main features of this contract are as follows:
• It is specifically designed to “… foster local contractor development and promote
overall social, technical and developmental community goals such as local
employment creation, fair labour practice, and capacity building within the
community institutions”
• It provides for five stages of contractor development from labour-only, to limited
plant and materials supply, to fully-fledged main contractor. The tenderer indicates
his/her level of development and this is checked through a skills and capacity
assessment. This means the contract can be broken up into many parts allocated
to different contractors. This broadens the scope for local participation, but also
increases the risk and the management input from agents and consultants
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• It spells out, in clear detail, the responsibilities of the contractor and employer
respectively for each stage of contractor development
• It guarantees retention penalties for late completion, and insurances are treated
in accordance with level of contractor development and ability to provide
• Offer and acceptance are contained in one complete document
• It contains comprehensive guidelines and instructions on how to use the
document
• It contains a description of the works and guidelines to the contractor on how
to carry out the works
• It contains a simple milestone-based payment system graphically explained to
contractor
• It makes provision for employment of a principal agent and other consultants
It is a complex document that requires that contractors are assisted by the employer
and/or his agents to interpret and complete it before the tender stage. However, it
has been used with success.
Its main advantages are as follows:

• It maintains the discipline of sanction and responsibility, without making it too
onerous for small, unsophisticated contractors
• It allocates some risk to the contractor commensurate with his or her ability to
absorb it
• It allows for contractors to develop on-the-job and progress to higher stages of
development as the work proceeds
• It gives the employer a versatile and appropriate tool for spreading the advantages
of preferential procurement, local employment and capacity building as widely
as possible within a certain community
Its main disadvantages are as follows:

• It is complex and requires extensive management input to administer
• It places more than usual risk and responsibility on the employer and his or her
agents
The above is, however, unavoidable based on the types of situation the contract is
intended to be used in.
Recommended for use in the intended

circumstances only
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t
Training
Training objectives
The main objective of training is to equip existing and aspiring small contractors
and/or sub-contractors with the practical know-how and skills needed to develop
their endeavours into profitable enterprises as quickly and effectively as possible,
while maintaining a high level of quality and professionalism, by:
• Familiarising participants with sound construction principles and methods
• Enabling them to plan, organise, lead and control construction site activity
• Enabling the conversion of information contained on drawings and in
specifications into a format for pricing and ordering of materials
• Training participants in the skills of obtaining access to credit and finance
• Explaining contract administration systems and procedures by means of a
practical manual
• Developing capabilities for the efficient and sustainable management of their
own concerns
Planning and preparing for training

Introduction
Ad hoc unplanned training is a waste of time and resources. Stand-alone or once-
off training sessions have their place, but to be really effective, training should be
programmatic, and include the following:
1. Analysis of generic functions in a small and growing construction company
2. Identification of core competencies required for the above
3. Setting of unit standards for training in the above
4. Setting up guidelines for training and curricula
5. Identifying and accrediting training service providers
6. Obtaining funding
7. Calling for training proposals
8. Training on a progressive basis (with proper assessment criteria for the
advancement of candidates from one level to the next)
9. Post-training impact assessment and mentoring
Who should be trained?

• Carry out local skills audit in collaboration with CBO and others
• Match skills required with skills available, and identify training and mentoring
needs, and external support required (for example, project management)
• Assemble the core teams with the “right” mix and clear agreement on lines of
authority
• Design and plan the training programme
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Pre-construction training
Before moving on to site, training should take place on basic aspects of good
construction practice – site organisation and work planning, resource analysis and
allocation, care and maintenance of tools and equipment, health and safety on
site, controlling waste, simple programming and monitoring of progress, and quality
assurance.
Example: Pre-construction Training Programme

Subject Time
(Hours)
1. Construction technology and practice (principles, methods and materials): 15
• Brief overview of the construction process
• Interpretation of drawings and specifications
• Construction technology with regard to:
• Setting out and levelling
• Foundations and sub-structures
• Brickwork and masonry
• Roofs and ceilings
• Plastering and screeds
• Windows and doors
• Cupboards and fittings
• Painting, glazing, flooring
• Plumbing and drainage
• Electrical work
• Paving and fencing
2. Site activity management: 9
• Site layout and functioning

• Basic planning and organisation
• Resource utilisation
• Method study
• Quality control, time-cost relationships, productivity and safety
• Maintenance: Plant and equipment
• Labour relations, supervision and control
• Programming and scheduling
3. Basic quantity surveying: 9
• Basic arithmetic skills
• Calculation of areas, volumes and mass
• Principles and units of measurement of drawings for basic construction
elements
• Lists of materials and cutting lists
• Recording of site measurements
122
4. Procurement of work, credit and finance: 6

• Introduction to contracts - parties, roles, relationships, rights and responsibilities
• Overview of tendering methods and procedures
• Costs elements - on site and off site
• Unit rates and allowable WHAT IS MISSING HERE?
• Price negotiation with suppliers, sub-contractors and labour, and how to go
about arranging credit
• Closing the bid - profit policy, consideration of external market and other fac-
tors that influence tender prices
• Introduction to marketing and negotiation
• Finance options
5. Contract administration: 9
• Signing of contracts
• Site and other meetings, including site hand-over, practical completion and
final hand-over procedures
• Internal meetings with supervisory staff, workers and sub-contractors
• Keeping site records and diaries
• Site instructions and variation orders
• Progress and final certificates and payments
• Site costing, internal certificates and cost control
• Cash-flow planning and control
• Basic site accounting (reconciliation of orders, delivery notes, credit notes,
invoices and statements)
• Wage administration
• Final accounts
• Insurances, levies, deposits and fees
• Relations with employer, professional team, inspectors
6. Office administration and business management: 9
• Introduction to management principles and functions, communication skills
and human relations
• Introduction to office functions, procedures and equipment
• Information and paper management, storage and retrieval
• Basic bookkeeping and accounting
• Keeping overheads down
• Office/site liaison
• Introduction to computers and computer systems
Total 57
“Hard” building skills training

There are training colleges in most of the larger urban centres that provide accred-
ited training with funding from the Department of Labour. The training covers trade
skills such as bricklaying, plastering, carpentry and plumbing. Training is structured
as follows:
• Nine weeks full-time practical training at the training centre. Trainees receive a
small allowance for food and travelling expenses during this time
• The above is followed by nine weeks’ practical work on a site under part-time
supervision and mentoring by the trainers. Trainees are paid a wage by the
contractor during this phase
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t
The experiences of some entities
acting as “main contractors”
There have been many cases of small-scale home building through community-based
or mutual self-help initiatives in both rural and urban areas of South Africa. In some,
unaided collective effort saw the initiatives through, while in others, NGOs such as
affiliates of the Urban Sector Network, Habitat for Humanity; and organisations such
as The South African Homeless People’s Federation and its allies People’s Dialogue
and Utshani Fund played a role in setting up home-building co-operatives, and
assisting with funding, planning and implementation of construction activities. Many
of these experiences have been documented, and organisations can be contacted
through their websites to learn more about their activities and experiences.
A few cases have been selected in which the actual construction process was
executed in a formal manner and the process was reasonably well documented
or observed.
124
w
Wattville/Tamboville – low- to medium-
density housing and community
facilities projects
In the early 1990s, a local civic organisation, the Wattville Concerned Residents
Committee (WCRC), with financial, organisational and technical support from
NGOs Planact (South Africa) and CRIAA (France), and the Dutch Social Housing
Movement, embarked on a construction programme for the development of housing
and community facilities in Wattville Township near Benoni, Ekurhuleni. The WCRC
carried out the construction works under the designation of the Wattville Housing
Association (WHA).
Construction of the houses

Although the WHA was not institutionally a co-operative in the strict sense of the word,
its ideological and organisational nature was strongly community-based and one of
collective action and enterprise. The housing project consisted of 182 single-storey
free-standing four-room dwellings on small individual stands. Unfortunately the project
was interrupted by local clashes of interest, and the houses were not all built.
The project did, nevertheless, provide valuable experience in how to plan and
execute construction projects in co-operative style, especially with regard to:
• Setting up the appropriate structures and procedures
• Bringing together widely divergent expectations, and focusing all the parties on
the mutual co-operative effort
• Marrying community development objectives with practical and efficient
construction practice
The houses under construction
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Construction was carried out with community-based construction teams and local
sub-contractors, and was organised as follows:
• Actual construction work by teams of eight people, with members drawn from the
local community (including beneficiaries), and led by a local person with certain
recognised skills such as bricklaying. Initially each team was given “contracts”
of four houses at a time, allowing them eight weeks to complete each set of
four houses. Local sub-contractors were employed for glazing, plumbing and
electrical work. Giving a team more than one house at a time gave them valuable
experience in planning, programming and resource (time) management
• The “client”, WHA, provided materials, and initially all plant and tools. Some
tools and equipment were purchased from the WHA by the teams and individuals
and paid off during the course of the contracts
• Initially, for the day-to-day management and supervision of the teams, a local person
with some business and contracting experience was employed on a contract basis
“without risk”. He was also assigned the daily administration of materials and tools
management. Later on, he set himself up as a managing contractor, and assumed
full risk for managing the teams and sub-contractors, materials and equipment
• Overall construction management, training and mentoring was provided by a
professional Construction Management Agent (CMA) employed by the WHA,
as were town planning, architectural and engineering services
Organisation of the construction

Project/ Construction Management
WCRC Task Group

Had to establish as legal entity
(for contracts, funding etc.)
Contract
Close working relationship

Project Manager and Shadow Community Liaison Group
• Skills audit • Assistance/ communication
• I .d. training needs • Workshop technical issues (layouts,
• Training housing types and design, etc.)
• Set up constr. man. system and
procedures • Allocation, tenant education, lease
assist agreements, handover procedures
• Contracts
• Materials management • Disputes and conflict management
• Finacial control
• Supervision and mentoring of
community based construction
teams
1 x community-based “contractor” 4 x 8 -member community- 1 x community-based “supervisor” (with

(for houses with ‘contract’) based construction “teams” ‘contract’)
(labour only)
(for houses)
+
28-member construction teams (3x) on
(with ‘contracts’)
labour basis-unemployed women and youth,
+ trained and employed on performance
(for community centre, ‘contracts’ (for crèche and clinic)
resources centre, etc)
126
Training before and during construction was provided mainly by the CMA in the
form of short workshops lasting from half a day to five days, and encompassed basic
contract administration and site management. On-site mentoring was continuously
provided by the CMA and the supervisor, who later became a managing contractor
for the teams and sub-contractors. Teams and sub-contractors signed formal contracts
with the WHA. Contracts were workshopped and agreed with teams beforehand,
and spelt out clearly in understandable language. They contained the following:
• Roles and responsibilities of parties, particularly regarding what was to be
provided by the client (materials, plant and constructional aids such as scaffolding,
temporary services and facilities), and the teams (labour, self-organisation under
supervision of site supervisor/managing contractor, responsibility for looking after
materials and equipment) respectively.
• Agreed and fixed contract amounts per four-house contract (for example, R3
000 per house for providing all labour - skilled, semi-skilled and unskilled - for
the construction of foundations, floor, walls, roofs, and the hanging of doors)
• Payment milestones
• Penalties for late completion
• Agreed rates of pay for team members
• Dispute-resolution procedures
The following extract from the contract documents used summarises

the responsibilities of the construction team/sub-contractor and
WHA respectively
B. SPECIFIC CONSTRUCTION TEAM/SUB- CONTRACTOR RESPONSIBILITIES, AND SERVICES TO
BE PROVIDED BY THE WHA (TO BE READ IN CONJUNCTION WITH THE CONDITIONS ABOVE)
B1. (For “labour-only” teams/sub-contractors)*
B1.1 General construction team/sub-contractor responsibilities:
1. The team/sub-contractor is responsible for all labour involved in moving materials from stockpiles or storage,
mixing of concrete, mortar, etc., transporting of mixed materials to place of work.
2. The team/sub-contractor is responsible for all cutting, fitting, assembly, setting up or placing/hoisting and
keeping in position and building in or fixing, of materials and components in the buildings.
3. The team/sub-contractor must provide all labour required for the temporary works such as erection, disman-
tling and moving of scaffolding, temporary formwork, propping, turning pieces and temporary bracing.
4. The team/sub-contractor must provide, maintain, repair and replace as necessary all hand tools, lines and
small plant such as picks, shovels, gauging rods, straight-edges, etc. for himself and his workers.
B2. List of services to be provided by the WHA:

1. Procurement and delivery of materials to the site or an agreed place of storage or stock-piling.
2. Provision of minor plant such as:
(1) Scaffolding, trestles and props
(2) Pipe roller floats
(3) Profiles
(4) Ladders
(5) Wheelbarrows
3. Provision of major plant such as:
(1) Mixers (at main contractor’s discretion)
(2) Power tools and equipment (at WHA’s discretion)
Any of the items in 2 and 3 above can be hired from the WHA on an agreed
“rent-to-buy” basis, where it will eventually become the property of the team/sub-contractor.
4. Water and, where possible, temporary power for the work.
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The fixed agreed contract amounts, as well as allowances for wastage on materials
and wear and tear on tools and equipment were arrived at by negotiating a fair
balance between widely accepted industry norms and pay levels, and the actual
experiences of teams in building the materials depot. It was made clear to teams that
the budget for each house was fixed, and that no additional funds were available
to pay for cost over-runs. (The total cost per house, including serviced stand, was
around R35 000, including about R22 000 for a 42 m2 house with full bathroom
and electricity).
Penalties for late completion were included as a form of discipline, and were diligently
applied even though it took some tough negotiation to get them accepted when a
few teams defaulted early on, and felt the consequences in their pay packets. As a
result, the responsibility for proper programming, planning and monitoring of tasks
and outputs was quickly understood and absorbed by the teams, and there were
few problems in this regard in subsequent contracts.
The negotiations themselves, where teams had to substantiate reasons for being
granted time extensions, were a useful learning experience. Penalty amounts were
carefully set (at around 1% of contract value per day) to make the teams treat
them with respect, while at the same not causing unreasonable hardship for small
infringements among the team members.
Because of the spread-out nature of the site, and the lack of motorised on-site
transportation for materials, it was not practical to have centralised stockpiles and
sheds for the storage of materials. Bulk materials (building blocks and aggregates)
were delivered to stockpiles central to each group of four houses in a contract, and
other materials were delivered to each individual house.
This presented a security challenge. This, and other problems such as excessive waste,
was solved by getting the intended beneficiaries to inhabit their properties in shacks
before the start of construction. Beneficiaries were then assigned responsibility for
such materials. They kept the materials with them and a well-managed system of
issue-and-receipt was maintained between them and the construction teams, which
often included a member of the beneficiary household anyway. (Some beneficiaries
even took large items such as window frames into the shacks with them and slept
on top of them.)
A simple payment milestone system based on easily definable stages of construction

completion was adopted. Milestone values were agreed upon beforehand and
written into the contract. Measurement for payment was done fortnightly, and only
completed stages were included. In practice, strict application of this would have
caused some hardship, and stages that were substantially, but not fully, completed on
measurement days were often included at say 75% or 80% of their agreed values.
128
Example of a Payment Milestone Sheet, WorkedPayment Certificate, and

Equipment Purchase
Agreement used on the Project:

Wattville Housing Association
Tamboville 2 Pilot Housing Project – Payment Milestone for Houses
Stage Payment
Stage Work Completed (Words) Work Completed (Pictures) Amounts due to team
Stage 1 Foundations and floor complete R2 800

1st payment 1. Setting out, and digging (R700 per house)
trenches Floor slab Less 10%
Foundation wall Retention =
2. Placing and levelling con- R2 520
crete (R630 per house)
3. Building foundation walls, Filling
Foundation
backfilling and compacting
Foundation
4. Casting surface beds and
floating smooth Stage 1
Stage 2 Walls up to roof height R2 400
Wall plate Rooftiles
2nd payment complete (R600 per house)
1. Building all walls to plate Less 10%
Windows
level Door frames Retention =
R2 160
2. Building in door and win- Walls Walls (R540 per house)
dow frames
Foundation Floor slab Foundation
3. Building in cills and lintels wall Wall
4. Building in roof ties Foundation
Filling
Foundation
Stage 2
Stage 3 Roof on R3 200
3rd payment Roof (R800 per house
1. Building gables Wall plate
Rooftiles Less 10%
2. Making and erecting roof Retention =
trusses R2880
Windows Door frames
3. Building beam filling (R720 per house)
Walls Walls
4. Fixing roof sheeting and
ridging Foundation Floor slab Foundation
Walls Wall
Foundation
Filling
Foundation
Stage 3
Stage 4 House complete House Complete R3 600
4th payment 1. Bagging outside walls Roof (R900 per house)
Wall plate
Rooftiles Less 10%
2. Plastering inside walls Retention =
3. Painting all walls R3 240
Windows Door frames Walls
4. Hanging doors (R810 per house)
Walls Glass plastered &
5. Painting doors and win- painted
dows Door
Foundation Floor slab Foundation
6. Cleaning house and site Walls Wall
Foundation
Filling
Foundation
Stage 4
Final Retention work done R1 200
payment 1. All work on final completion Home-owner (R300 per house)
list done to satisfaction of
WHA and the homeowner.
(Final completion certificate
and “happy letter” signed)
Construction Team Certificate
129
S H F BP5 2006

Construction Payment Certificate
Contract Details:
Employer: Wattville Housing Association Construction team: Team Radebe
Contract: Contract no. TV2/Rad/001 Contract sum: R12 000.00
Stand nos: 12, 13, 14, 15
Certificate Details:
Certificate no.: 4 Certificate date: 25 August
VALUATION:
Stand no. Completed stage Previous This stage Total due to date
this valuation cumulative value
value
12 3 R 1 300 R 800 R 2 100
13 3 R 1 300 R 800 R 2 100
14 2 R 700 R 600 R 1 300
15 1 R - R 700 R 700
Total R 3 300 R 2 900 R 6 200
CERTIFICATE:
Total certified to date R 6 200.00
Less: Retention (10%) R 620.00
TOTAL TO DATE R 5 880.00
Less: Previous payments (1-3) R 2 970.00
PAYMENT NO. 4 NOW DUE R 2 910.00
Less: Deduction for:
Loan repayment on equipment purchase agreement R 120.00
R 120.00
AMOUNT TO BE PAID TO TEAM R 2 790.00
Construction Management Agent: JJ Nkosi Date: 25 August
For: Construction Team: Petrus Radebe Date: 25 August
130
Equipment Purchase order & Loan Repayment Agreement
I, the undersigned Petrus Radebe request the Wattville Housing Association (WHA) to purchase, on my
behalf, the following equipment under the conditions set out below:
Description Cost
One pair of steel trestles R 360.00
4 Scaffold planks: 50 x 228 mm x 3 m long R 120.00
TOTAL R 480.00
CONDITIONS
1. REPAYMENT
I undertake to repay the WHA the total amount as reflected above in the following manner:
1.1 Deduct R120.00 from each of my stage payments or,
1.2 Deduct R___________ from my retention on my contracts or,
1.3 Deduct R___________ from each of my stage payments and R___________ from my retention or,
1.4 Deduct R ___________

The deductions are to start on the (Date): 12 July
2. RESPONSIBILITIES
2.1 I undertake to be responsible for the above-mentioned equipment from date of delivery.
2.2 I will keep the equipment in good condition and use it for the purpose and in the way it is intended to be used.
2.3 I accept that I am responsible for the security and safe-keeping of the equipment at all times.
2.4 I accept responsibility for any damage, loss or breakage, except where a manufacturing defect can be shown.
3. OWNERSHIP
3.1 The equipment and/or material remains the property of the WHA until all outstanding payments relating to
said equipment and/or material has been paid.
3.2 Once all moneys owing on the equipment and/or materials have been received by the WHA, then
ownership of the said equipment passes to: Petrus Radebe
I hereby acknowledge receipt of the above-mentioned equipment in good working order.
Petrus Radebe Petrus Radebe 10 July

Signature Name Date
131
S H F BP5 2006
Construction of the community facilities

The facilities comprised a community centre (incorporating the administrative offices
of the WCRC), a building resource centre/materials depot, and a crèche.
The community centre and resource centre were built using the same approach as
for the housing component. The crèche was a bigger undertaking, and also received
funding from the provincial government as a pilot of its Community Based Public
Works Programme, meaning that empowerment and local economic development
objectives were formalised in the funding agreement. The stated objective was to
provide employment for women and youth from the community, and provide them
with formally accredited training.
For the crèche a labour resource plan was compiled jointly by the civic, its technical
advisors and the CMA. This indicated total number of workers required, as well as
the minimum with critical skills to form the core of the team. The civic carried out
a formal skills audit and recruitment programme in the community, and a team of
around 30 was set up for the construction work. Funding was obtained from the
Department of Manpower to have all team members undergo formal accredited
training in various trades such as bricklaying and plastering (9 weeks full-time in
training centre, followed by 9 weeks working an “apprenticeship” on site under
periodic supervision of the trainers).
The workforce was again divided up into teams, but this time by trade i.e. bricklaying
team, plastering team, and so on. A local person with business and contracting
experience was once again appointed as managing contractor, and employed the
teams “with risk”. During the course of the construction some of the teams established
themselves as sub-contractors, and some even left for more lucrative sub-contracting
to mainstream builders elsewhere.
Créche
132
Building resource centre Community centre
Lessons learnt:
• It is important to work closely with legitimate and representative CBOs
when conducting skills audits, and setting criteria for, and recruiting
people for, employment on the construction teams. At the same time
though, be aware of personal agendas and avoid nepotism
• Training should be designed to address the real needs of the project.

Do not just use material that seems to be available “off the shelf”
• In training, teams must not simply be shown what to do, without further
explanation of why things are done in a particular way. Maintaining
progress and quality becomes much easier when construction teams
understand the underlying motivations, and the consequences of
non-compliance
• Construction teams and sub-contractors must be well-briefed as to

what is expected from them, what support they will (and will not)
get, and the consequences of non-compliance with contractual
responsibilities
• All construction activities should be governed by well-crafted and clear

written agreements, and contract administration procedures
• The discipline introduced by contract conditions must be maintained

consistently, but fairly, during execution (this includes adherence
to agreed time-frames and payment terms, levying retentions and
penalties, and not compromising on quality)
• The construction manager, with assistance from on-site supervisory staff,

should constantly be on the lookout for people who show promise, and
create further training and promotion opportunities for them
133
S H F BP5 2006
m
Masisizane Women’s Housing
Co-operative, Midrand, Gauteng
Introduction
The co-operative was established in 1999 (and later registered under the Co-
operatives Act) by a group of women in Ivory Park Township who lost their shacks
in a flash flood, and decided they could not wait for government to provide them
with houses. They founded a savings club, and in the first five years, provided over
100 self-built houses for members without the aid of government subsidy or other
assistance, adding rooms to the houses each time it was the respective member’s
turn to receive the collective savings.
With help from Rooftops Canada, the co-operative later re-structured to use their
acquired skills and experience to provide services to the local Housing Support
Centre, which they helped to establish. They are now recognised by the Gauteng
Provincial Government as a Housing Support Organisation. The co-operative
has become more of a Worker Co-operative, with the emphasis on providing
employment through housing construction and related activities. It is also using its
experience to transfer skills to other organisations, and render services to projects
that are still establishing themselves.
Mazisisane now builds more than 40 houses per month for beneficiaries, making
use of the consolidation subsidy under the People’s Housing Process (PHP), and has
provided employment for more than 100 people from the community. The subsidy
is used to pay direct labour, contractors, sub-contractors and materials suppliers.
A once-off Facilitation Grant from Provincial Government was used to establish
the Housing Support Centre (HSC), fund the business plan, and train a Steering
Committee and beneficiaries; while operational costs are funded by a provincial
Establishment Grant. At current levels of overheads and consulting fees, at least 300
dwellings per year must be built for the HSC to be viable.
The project has been described as an initiative under a “community-livelihoods

approach to delivery at scale of medium-density housing for low-income families
in informal settlements and township-upgrade projects”. It is seen as providing poor
communities with good quality affordable housing while also creating local jobs, skills
and community building. The co-operative has built almost 600 houses, and currently
has more than 4 000 members contributing to a savings scheme, and awaiting houses.
Houses are at least 40 m2 in size, and the form of tenure is individual ownership.
Construction methods used are simple and quick to learn, and certain materials such
as bricks are manufactured locally by a brick-making co-operative.
134
Organisation of the construction

Labour and sub-contracts
The Masisizane initiative now employs:
• Twelve Housing Support Centre staff (four full-time and four part-time adults,
and four young trainees)
• Eight brick makers
• Fifty-six local construction workers (14 construction teams, each with four
workers, of which one is a fully trained and certified builder)
• Around 10 local sub-contractors (with three employees each) for glazing,
plastering, plumbing and electrical work
• An independent foundations sub-contractor who is obliged to employ and train at
least half of its workforce (about 10 people) from the immediate community
Beneficiaries in some instances also provide “sweat equity”.
Labour and sub-contractors are recruited by means of advertising and word of mouth,
and appointed on a trial-and-error basis. Teams sign contracts for fixed prices and
contract periods, but no penalties for late completion are levied. There is no UIF
registration or Workmen’s Compensation insurance, and the legalities, liabilities and
risks around these needs to be investigated.
Teams generally provide their own tools.
Materials
Materials are ordered by the HSO, but are issued directly to the beneficiary for his
ownership, and at his risk. Lost materials have to be replaced by the beneficiary. Some
suppliers will not deliver to the individual sites in the township. In such cases, materials
are delivered to the HSC, and the beneficiary must collect them from there. If materials
are lost while on the HSC premises, the cost of replacement is deducted from HSC staff
wages and salaries. Due to costs, and practical issues of insurability, there is no insurance
in place to cover loss or damage of materials. This may pose too big a risk if volumes grow
large, and needs to be taken up with authorities at provincial and/or national level.
It is not clear if reasonable allowances for wastage are agreed upon upfront, and
there is no sign of usage and wastage being formally managed through, for instance,
keeping materials reconciliation records.
Although materials control appears to be reasonably good at present, the co-operative

is aware that it needs to develop more sophisticated formal control systems if it is
to step up scale and pace of delivery.
135
S H F BP5 2006
Execution
There are no formal work plans, overall programmes, or daily schedules. Each team
is given its stand numbers, a fixed price and a time within which to complete the
project. Payment is made per completed house.
There is no system in place for written instructions to teams, and all instructions are
verbal. This needs to be rectified.
NGO and other support

Social Housing Foundation and Rooftops Canada assist in the running of the project,
including:
• Assisting the centre manager and staff in project planning
• Ensuring that resources for project execution are organised
• Sharpening the centre manager’s leadership skills
• Helping the centre manager to motivate staff and members
• Organising meetings with beneficiaries to brief them about project plans and
the implementation process
• Conducting workshops with construction teams to encourage team building,
and to brief them about the project, their rights and obligations, the contracts
they need to sign, and reporting and grievance procedures
• Management and operational training of the centre manager and staff
• Applying project-management principles and co-ordinating the project with the
centre manager
• Introducing proper administrative processes for keeping financial and other
records, staff administration, work procedures and accountability
• Documenting the project as a case-study and recording the lessons learnt
136
Lessons learnt:
• Collective initiatives like Masisizane are good at mobilising membership
and savings, but substantial additional funding and support are needed
to put infrastructure and systems in place for running large-scale
building operations effectively
• Guard against the centralisation of power and knowledge in a single

leader, or a small group. This limits capacity building, and jeopardises
continuity and succession. Document every experience in easily
retrievable and usable form, and do not rely on institutional memory,
as gaps arise when people leave
• Community-based organisations often do not fully understand the

complex environment within which housing development takes place
(political, legal, administrative and funding issues), and they need to
be educated about these
• Keep the building operations and the institutional issues of

membership separate. Let the housing co-operative concentrate on
mobilisation of beneficiaries, and the building co-operative focus on
efficient production of quality houses while providing employment
opportunities for its members and the community at large
• Having little direct control over the selection, appointment and

payment of materials suppliers (currently administered by a separate
body employed by province) creates problems for Masisizane as the
construction implementer. In order to be responsible for timeous
delivery of a quality product, one needs to have effective control over
all aspects of the process
• Masisizane has shown that collective motivation, dedication and

discipline backed-up by at least rudimentary formal systems,
procedures and controls, produce good results on a smaller scale. If the
scale is to be increased, though, a far more sophisticated construction
management approach and system will have to be developed, and
implemented and maintained by the organisation
137
S H F BP5 2006
g
General Motors SA foundation
– medium-density housing in the
Eastern Cape
Missionvale Community Housing Initiative
and Sakhasonke Village, Port Elizabeth
As in the case of Wattville/Tamboville, these projects were not undertaken as
formal co-operatives, but the delivery approach was strongly based on community
involvement, mobilisation, and collective self-help. Housing subsidies were pooled
to direct spending towards maximum effect.
The projects aimed to use the housing-delivery process as a vehicle for broader
social reconstruction and upliftment through a more integrated, process-driven
and beneficiary-centred approach. Skills audits were conducted in the community,
and members chosen for the construction teams were sent on accredited building
construction courses prior to construction. In Missionvale, the houses were built by
15 working teams consisting of 12 people each. Design was kept simple to facilitate
construction by newly skilled and inexperienced builders.
Costs were saved, and a new housing form for low-income housing was introduced,
by increasing density through smaller plot sizes, semi-detached, row, quad, and
double-storey houses, and shared-service connections.
Lessons learnt:
• Once-off training has limited impact. Refresher courses are
necessary
• Solid and continuous supervision and mentoring are needed because

of low skills levels and the relative inexperience of the construction
teams
• No cash transactions should take place on site. It creates temptation and

opportunities for corruption
• Specialist trades such as plumbing and electrical work should be

carried out by experienced sub-contractors
• It is easy to underestimate the true costs of the co-operative approach

to construction. Make sure all angles and contingencies are covered
by consulting first with people with experience
138
b
Badiri House, Hillbrow (high-rise
inner city refurbishment)
The Badiri Housing Association (BHA) was set up by the Hospitality Industry Pension
and Provident Fund (HIPPF) to provide housing for low-income workers belonging
to the fund. Its first project was the purchase and conversion of the former Hotel
Quirinale in Hillbrow, Johannesburg, into 126 family units. The existing building was
some 12 storeys high with a small basement. The building footprint at ground floor
covered the whole of the site right up to the pavement on three sides, with a narrow
alley at the back for deliveries to the basement.
This meant that the contractor had to place his site establishment in the building – partly
in the basement, and partly in a ground floor court yard. The access alley was too
narrow for larger delivery trucks, and bulk materials such as bricks had to be moved
directly from the truck into the building by hand and wheelbarrow.
Initially, an emerging contractor was appointed as main contractor for the work. After
experiencing some difficulties with the emerging contractor (mainly around cash flow
and underestimation), an established refurbishing firm was appointed to provide
logistical, technical and managerial support to the emerging contractor. This did not
work out either, as the managing contractor had no real interest in the job, and because
his contract absolved him from most of the construction performance risk.
In the end, the managing contractor’s services were terminated, and the emerging
contractor was disbanded as a business and became a contract employee, assisting with
supervision of a construction team that was organised along co-operative principles
to complete the work. The employer bought all materials and financed the working
capital requirements. A consultant provided professional construction management.
139
S H F BP5 2006
Lessons learnt:
• When working in a large multi-storey building with many rooms into
which workers can “disappear”, it is important to have a schedule or
matrix based on the layout of the building that shows clearly who has
been assigned to do what work in which unit(s). Actual performance
must be noted against this matrix daily. This requires well-trained
supervisors, and efficient monitoring and reporting systems and
procedures
• Removal of rubble and waste from this kind of building can be time-
consuming and uneconomical if left to workers, as they will constantly
interrupt their own activities to carry a bucket or push a barrow all
the way outside. It is better to have a small and dedicated rubble
removal team roaming those parts of the building where work is taking
place, on a rotating basis and according to a clear plan. Teams doing
the work simply place rubble on a pile next to their work area for
collection and disposal by the cleaning team, so that work can carry
on uninterrupted. If possible, vertical chutes should be installed for
quick disposal of rubble to the ground rather than carrying out by
bucket or barrow
• Work should start from the top floor down so the upper floors can
be finished and locked, preventing damage caused by workers,
materials and equipment moving past finished floors. This also has
a positive psychological influence on the workforce: distances of
moving themselves and materials and equipment around become
shorter as the project progresses, and when everyone is getting tired
and impatient to finish
• Existing lifts and stair finishes need to be carefully protected against

damage by wheelbarrows, or carrying of heavy equipment (for
example, scaffold frames) or materials through the building. When
work is to be done to the exterior of a building, for instance repainting,
it may not always be practical or economical to erect conventional
scaffolding. The alternatives are swing scaffolds or gondolas suspended
from the roof, or hiring specialist “rope access” contractors. Both
options are expensive and this must be taken into account when
budgeting
140

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2006

Ground floor, Milner Place

Postnet Suite 240

Tel. (011) 274-6200

• Acting as developer, retaining overall management of the development

• Acting as “main contractor”, employing sub-contractors and/or

• Developmental objectives (often in conjunction with sponsor and other

• The risk “appetite” of the social housing institution, co-operative or

These guidelines focus on the scenario where a social housing institution,

the actual construction process, including the management of resources,

Social Housing Foundation

Tel: +27 (11) 274-6200

Copyright © Social Housing Foundation 2006

housing project development phase

the construction process

Decisions that the entity acting as contractor should

Planning for execution of work 26

Executing the work 70

Community-based construction 116

Wattville/Tamboville – low- to medium-density housing

Masisizane Women’s Housing Co-operative, Midrand, Gauteng 134

General Motors SA foundation – medium-density housing

Badiri House, Hillbrow (high-rise inner city refurbishment) 139

These guidelines deal with Phase 5 above, from the

Establishing and maintaining differentiated functions and accountabilities becomes

Acting as a main contractor only requires an entity to focus on the management

More specifically, construction is the use by a contractor of supervised labour, and

What are the main objectives of a

What does a main contractor do?

• Deciding, as part of work planning and resource allocation, what work to

Costruction Management Triangle

Composition of a construction team

Funder (s) Professional

(no ont o ent

Site admin and Community

Contract, co-ordinate, Supply & fit

Common risks that need to be managed by

Risk! Under-performance of in-house staff with

Risk! Under-performance or non-performance of

Sub-standard quality of workmanship:

• Provide training and mentoring

Delays and late completion:

Risk! Under-performance of suppliers with regard

Risk! Damage to and/or loss of materials and

Waste and breakage:

Responsibility for materials:

Risk! Unavailability of working capital at the right

• Comply with funder requirements: Plan work so that achieving payment

Risk! Industrial action and other disputes:

Inadequate co-ordination of trades:

Factors that determine success in construction

How can the entity learn more about being a

The Concrete Masonry Association (CMA) based in Midrand, Gauteng, produces

Labour-based, labour-intensive and community-based

plant. The emphasis in labour-based construction is on employment, training

Competent technical advice (and “market” feedback) should be obtained before

Plaster and paint

Cement-based paints with mixed-in pigments such as “Cemwash” or “Earthcote”

Structural floors (slabs) in multi-storey buildings

The composite slab consists of a pre-fabricated component placed to span from

Wooden windows, although fashionable and attractive, are expensive, easily

Construction of multi-storey buildings significantly increases the complexity of

Who does what?