Transportation & the Construction Industry

posted in: Construction Chat 0

Planning and transportation of materials, tools, and equipment is an important aspect of completing any construction job on time. Construction projects have many moving parts and managing all of these different elements is crucial to the success of any project, so you have to have to make sure you have a logistics plan in place in order for the project to run as smoothly as it possibly can and within the budget of course. We do not often think or realize how important this aspect of the project is.

Depending on where the site is will ultimately decide how the materials will be transported as well as what is being transported. The most common mode of transportation are trucks and flatbed trucks and trailers.

When the site is ready and all the materials and equipment have arrived, the transportation of construction material on site begins.

Examples of construction equipment on a site:

1. Boom Lift – a type of aerial platform used to get workers off the ground to work on an elevated project.
2. Scissor Lift – Similar to a boom lift, scissor lifts are aerial work platforms used to elevate workers.
3. Forklift – If materials need to be transported a short distance, forklift equipment can be used.
4. Telehandler – used for jobs where a forklift is inadequate. It’s more heavy-duty than a forklift and can access much higher areas as well.
5. Bulldozer – is used to push, carry and condense any sort of loose material on site.

6. Skid Steer Loader – a skid loader can host different equipment and is also small enough to maneuver into tight areas of a site.
7. Excavator – An excavator is a heavy piece of machinery used to dig and crush material on a site.
8. Off-Highway Truck – The off-highway truck is specifically made for rugged environments. This heavy-duty dump truck has massive wheels with deep treads, allowing it to venture off-road and support construction and mining sites. It’s primarily used to transport materials like rocks or dirt from one site to another. Some models use multi-axle dump buckets to support even heavier loads.
9. Carry Deck Crane – A carry deck crane is a small, mobile crane system.
10. Articulated Hauler – As with an articulated truck, an articulated hauler has a pivot joint in its build, giving it increased mobility. Because of this joint, it can carry massive loads around tight turns, making it ideal for most structural builds. This dump truck has a control hub where the driver sits and a material pail where loads go to be transported. Almost all articulated haulers are four-wheel drive, giving them access to most sites regardless of condition.

Construction Business Owner
The Boss Magazine
Big Rentx

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About Nadia Milln

My journey at Leads 2 Business all started back in September 2014 as a content researcher in the Daily Tenders Africa Department. In March 2018 I was promoted to content researcher in the Private Project department. I am a fun loving, bubbly person and mom to a beautiful baby boy who is the absolute light of my life.

Construction Highlights from 2020

posted in: Did You Know 0

Where do I even start? 2020 was a year like no other, caused by a global pandemic that claimed many lives, spiked retrenchment, closure of businesses, projects paused, increased food prices, and the list goes on. But today we focus on Construction Highlights from 2020. With Covid-19 construction had to adapt to new trends and technology. This coming with both disadvantages as well as advantages, communication between tenderers and clients became easier, but connectivity was sometimes an issue, systems required constant updates. IT was and continues to be the biggest contributor to communication during these times.

The construction industry was knocked with the Level 5 lockdown as all work came to a standstill for roughly 3 months, impacting on completion time, as well as other projects that were in the pipeline.

Commercial construction stats are expected to fall by 16% in 2020, with retail stats projected to be down by 33% and hotel/motel stats by 31%. Apart from the bad, there was also a good side to construction in 2020, please see projects below.

1. Calgro M3 breaks ground on student housing projects in South Africa (Linked to PPA 25970 which is Underway)

To be located within the Belhar CBD development, a mixed-use residential project, the accommodation will be built in three parcels of land located next to one another.

The 44 000m² site will border the southern boundary of the University of the Western Cape campus and is situated close to the Unibell train station and the Cape Peninsula University of Technology.

Comprising of six buildings with nearly 2,720 beds, the accommodation will have different types of sleeping quarters for students including single and double rooms and double room apartments.

Additionally, there will be suitable accommodation and ablution facilities designed specifically for disabled students.

The accommodation is expected to have several communal facilities within the residences such as bathrooms, lounges, study and dining areas, kitchens, laundries, and tuckshops, along with gym areas and residence manager apartments.

2. World Bank approves $131m financing to upgrade roads in Uganda (Linked to DTA 818876 which closed on 03 July 2020)

The Uganda Roads and Bridges in the Refugee Hosting Districts Project will involve upgrading 105km Koboko-Yumbe-Moyo road, and upgrade road infrastructure in areas hosting refugees in the country’s West Nile sub-region.

Additionally, the bank is financing the rehabilitation of the 340km Tororo-Mbale-Soroti-Lira-Kamdini road under the Uganda North Eastern Road-corridor Asset Management Project as well as the construction of the 100km of the Kyenjonjo-Kabwoya road under the Albertine Region Sustainable Development Project.

3. Maire Tecnimont wins $400m contract for two oil and gas projects in Algeria (The contract, worth $400m, was secured by Maire Tecnimont’s subsidiary Tecnimont)

The project will be implemented in the BirSeba and Mouiat Outlad Messaoud oil fields, located in the Touggourt area, about 130km northeast of Hassi Messaoud.

The scope of the contract includes full engineering, procurement, and construction activities such as the expansion of the existing oil central processing facility, by installing a new oil separation train to double the total capacity up to 40,000 barrels of oil per day.

It also includes installing two additional remote gathering stations and over 400km of pipelines connecting the new oil production wells, along with implementing gas lift and water injection facilities.

World Construction Network
Epic Flow
BDC Network

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About Nazeema Sishi

I am a content researcher who just started with Leads 2 Business in February this year, I work in the Daily Tenders South Africa department. I am a young vibrant lady who enjoys meeting new people and doing new things. I welcome challenges and always find new ways of doing things. I am a mum and I love spending time with my not so little, very talkative son.

Construction Technology

Posted by Brett Long

If it’s not broken don’t fix it, right? Despite technological progress, it’s not uncommon for construction companies to still rely on spreadsheets, manual data entry, and paperwork. Low IT budgets and lack of time for training have contributed to a hesitancy around adopting new methods and technology.

Emerging construction technology isn’t just a fad or a fun new toy. There are real, practical applications and benefits to modernizing your current processes. And if your construction company wants to remain competitive and not be left behind, you’ll need to find ways to integrate new approaches into your strategy and workflows.

These cutting-edge technologies are drastically changing how the industry operates and how future projects will be completed.

Types of Construction Technology Impacting the Industry:

  • Mobile Technology
  • Drones
  • Building Information Monitoring (BIM)
  • Virtual Reality and Wearables
  • 3D Printing
  • Artificial Intelligence

1. Mobile Technology

Mobile technology isn’t just for games anymore. Apps are becoming more of the norm in construction and for good reason. The increased portability of tablets and smartphones allows for greater communication and the ability to work from anywhere. Integrating this type of technology into your current processes can be much simpler and require a smaller upfront investment while still providing major benefits and boosting productivity in your day-to-day operations. So if you want to start implementing technology, this is a good place to start.

Mobile technology can help to save time and keep your project moving forward faster by providing real-time updates and making information available between the job site and the office. You can easily access the latest revisions to plans or report a problem to the project manager off-site.

2. Drones

Drones are the most widely used emerging construction technology. They can conduct site surveys more quickly and accurately than a crew on the ground and are cheaper than aerial imaging. Their high-resolution cameras and the data collected can create interactive 3D or topographical maps and models and take volume measurements.

Another benefit of using drones is the ability to inspect hard-to-reach places such as bridges or around tall buildings, and to do it safely. You can also use them to monitor progress on a job site and see how people are working.

3. Building Information Modeling (BIM)

BIM is similar to CAD (computer-aided design), but not exactly the same. It is software for 3D design to digitally model what will be built. But its capabilities don’t stop there: “It doesn’t just create a visually appealing 3D model of your building—it creates numerous layers of metadata and renders them within a collaborative workflow,” writes It captures things in a way that paper just can’t.

32.7% of builders are currently using BIM/CAD software, JBKnowledge reports in their 2016 survey. The use of BIM has even been mandated in the UK for government construction projects.

The use of BIM provides space for better collaboration because each person and expertise area can add their piece to the same model, instead of breaking out onto multiple versions of a 2D paper drawing. This way, the model evolves immediately as people contribute, streamlining the process and increasing efficiency. BIM also helps with problem-solving in the design and planning stages of a project, by automating clash detection and providing a more complete picture of the project.

4. Virtual Reality and Wearables

Virtual reality technology is often used in conjunction with BIM to help better understand complex projects. Think of the potential: you create a building design with BIM and can then use VR to actually walk around it. Pretty cool, right? This will give your team, or the client an even more realistic idea of what the project will look like once completed. Having a more complete grasp on the project before it begins allows you to avoid big changes and expensive change orders mid-way through.

Wearables are a construction technology that will have an impact on job site safety and risk management. The Daqri smart glasses, though still in the early stages, are one example. The glasses have an augmented reality display, wide-angle camera, depth sensor, and other features that allow workers to collect and see data based on their environment. The glasses give workers the information and instructions they need to complete a task right on the display, getting the job done faster and with less room for error.

5. 3D Printing

3D printing as a construction technology has the potential to change material sourcing. For prefabrication, materials for a project can be printed and then transported to the job site, ready for use immediately. This can allow you to get materials faster and streamline the process by removing extra steps in the middle.

According to the U.K. Green Building Council, around 15% of materials delivered to construction sites end up in landfills, and the American Institute of Architects believes that building-related waste makes up between 25% to 40% of America’s solid-waste stream, reports Fortune. With 3D printing it will even be possible to print materials right on site, reducing waste and further saving on transportation and storage costs.

One of the current challenges with the adoption of this technology is limitations with mass production. Although some 3D printers can produce on a larger scale, they are expensive.

6. Artificial Intelligence

The construction industry is already seeing the implementation of artificial intelligence on the job site with the use of robotics for tasks like bricklaying and autonomous equipment that can operate and complete tasks without the need for human interaction.

AI can benefit construction projects through increased safety, improving workflows, and getting jobs done faster and better. “AI can replicate the judgments, decisions, and actions of humans without getting fatigued,” said Dan Kara of ABI Research. It can also identify when information or pieces are missing and ask questions, and use the data it collects.

Device Magic
UK Connect

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Millennial Mom + wife living the hash-tag life

Featured Tender: Provision of Consulting Engineering Services

Featured Tender: Northern Cape

Contract Number:

N.008-080-2020/2F – The South African National Roads Agency Limited


Tender are invited to bid on the provision of Consulting Engineering Services for the Periodic Maintenance of National Route 8 Section 8 between Sinovel (km 20.0) and Zandplaats (km 40.0). This project is in the province of Northern Cape and in the district municipality/local municipality of Sol Plaatje and the approximate programme is for design and construction documentation to be completed by April 2021 followed by supervision of 8 months, commencing 1 September 2021.

Category Industry
Consultants Institutional, Road
Region Site Inspection
Northern Cape Briefing Session: There is no clarification meeting for this tender. A tenderer’s clarification presentation is available to be downloaded from the SANRAL website by the following link: Meeting(s): Not applicable.
Closing Date Contract Period
04 December 2020 at 11:00 No details.


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About Antonette Claassens

I am a fanatical researcher who takes immense pride in the information I publish and those all-important finer details. When I'm not "researching up a storm", I love the ocean, fab music, and fine dining.

Tunnel Boring Machines

Tunnel Boring Machines (TBM)

A tunnel boring machine (TBM), also known as a “mole”, is a very large machine designed to excavate and drill with a circular cross-section, through a variety of soils and rock to create a tunnel.
Tunnel boring machines are used as an alternative to drilling and blasting methods in rock and conventional “hand mining” in soil. TBMs have the advantages of limiting the disturbance to the surrounding ground and producing a smooth tunnel wall. This significantly reduces the cost of lining the tunnel and makes them suitable to use in heavily urbanized areas. The major disadvantage is the upfront cost. TBMs are expensive to construct and can be difficult to transport, due to their very large size.
The first tunnelling machine was designed by an Engineer, Marc Brunel in the 19th century. It was used to help build the Thames tunnel in 1843 – the first tunnel under a river. Brunel’s invention was basically just an iron framework with spaces for workmen to stand-in. Tunnellers dug out the earth in front of them with pickaxes and shovels.
According to global tunnelling tradition, a TBM cannot start work until it is given a name. This tradition also sees most TBMs being named after women. Why are they given women’s names? Apparently, it’s a tradition dating back to the 1500s when miners and anyone working underground with explosives prayed to Saint Barbara to protect them from the dangers underground.
Phyllis, Ada, Elizabeth, Victoria, Jessica, Ellie, Sophia and Mary were the names of the eight tunnel boring machines used in London’s mega Cross-rail Project. Big Bertha is the infamous TBM stuck underneath Seattle and Alice tunnelled Vancouver’s new Evergreen Line.
Here in South Africa, the R300 million TMB used to construct the 3-kilometre tunnel stretching from Rosebank Station to Park Station as part of the Gautrain project in Gauteng was named ‘Imbokodo’, or ‘hard rock’. The name, ‘Imbokodo’, flows from the women’s protest march to the Union Buildings on August 9, 1956. This march saw the birth of the phrase ‘wathinta abafazi, wathinta imbokodo’ or, ‘if you strike a woman, you strike a rock’. Project officials chose the name because they believed the TBM would do her work with the “agility and effect of a super kung fu master, yet with a feminine touch of tenderness and softness as she tunnels her way through soft ground and hard rock”.

The world’s largest hard rock TBM is known as Martina, (she has an excavation diameter of 15.62m, a total length of 130m and a total weight of 4,500 tons. It was built by Herrenknecht AG, and is owned and operated an Italian construction company, Toto S.p.A. Costruzioni Generali (Toto Group) and was used for the tunnelling of the Sparvo gallery of the Italian Motorway Pass A1 near Florence in Italy.
Tunnelling machines have had an economic, environmental and cultural effect around the world. Like bridges, tunnels connecting communities, and sometimes even entire nations!
In the UK for example, modern TBMs have helped boost the economy. London Underground’s Jubilee line tunnel has brought redevelopment all along the new line.
TBMs can also be used to improve the environment. The machines that dug the Lee and Thames Tideway tunnels helped improve sewage treatment for large areas of London.
Today’s modern tunnelling machines look very different from Marc Brunel’s miner’s cage, but their function is very similar. The TBMs dig out earth which is carried back behind it – usually on a conveyor belt. The TBM moves forward and continues to dig.

Showing a TBM in action, underground

“Like giant underground factories on rails, they’re the equivalent of 14 London buses end-to-end and a staggering 143 buses in weight”


Engineering News

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About Marlaine Andersen

I have been working for Leads 2 Business, in the Private Projects Department, for 10 years this July. I am Deputy HoD for Private Projects. Researching mining projects and projects through-out the African continent are my areas of research and I find them most interesting.

Featured Project: The Palms – Building

Northern Cape

Construction of a residential complex in the heart of Kimberley in the Northern Cape. The development will be known as The Palms and will consist of an entertainment area and a total of 327 units, varying in sizes and levels up to 3 storeys.


Status Region
Underway Kimberley
Category Value
Building R 100 million+
Industry Timing
Residential 2013 onwards
Sector Class
Private Invited / Negotiated


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About Sonet van Wygaard

I started working at Leads 2 Business in 2014. I was part of the Tenders Africa team and have now recently moved to Private Projects. I love every second of it!

OPINION: SA Construction Industry during COVID-19

posted in: General 0

An opinion piece on Construction in South Africa during Covid

26 March 2020, the day that everything changed. Hard lock-down. The entire country sequestered to their homes and not permitted to leave, it was called Lock-down Level 5. The ramifications of this decision will still be felt by everyone in all industries and walks of life for a long long time. We were entering the unknown, fearful of everything and everyone and if you listened to the various news broadcasters masquerading as prophets of doom and gloom, the world as we knew it had come to end, normal did not exist any more and life would never ever be the same again. I eventually made the conscious decision to change the TV channel from any and all news broadcasts and limited myself to one broadcast of news per day, this was for my own sanity as the bombarding of constant fear-mongering was powerfully eroding away at me. But this unknown scary time was going to be for 21 days, I would survive. Oh, how little did I know…..

But not all was doom and gloom, I was going to work remotely. I had subscribers that were depending on me to obtain information that was not readily available, they needed this information to assist in their business, they needed to keep their business going which in turn keeps our business going, it seems like an endless circle, but actually makes sense. Gosh, information was very scarce initially, no one knew what was happening (and if they did they did not want to say anything because who knew what tomorrow would bring…) Town planning and environmental notices (where we get a lot of our very new projects) “dried up” and no new notices were being posted, new tenders being published dwindled down to almost nothing, in fact, I noted that most of the tenders that were still going out were for various Eskom entities that needed repairs, Eskom’s procurement department was still hard at work. It was very slow going in the beginning, could not contact professionals, some were on leave, some did not have mobile numbers.

21 days came and went and lock-down continued. Come 1 May 2020 and the country moved down to level 4, this meant a slightly different set of rules, we still could not leave our homes unless it was an essential service, but we could exercise within a 5km radius of our homes between 6am and 9am. It was still dark at 6am and dangerous to leave your home but that didn’t worry me, I am not an exercise person anyway! But I digress, back to work….looks like some construction could start again, essential infrastructure projects and repairs but still the tenders had not really picked up as most of the municipalities remain closed, and they are the ones that put out the tenders according to their budgets…. Great excitement….we are moving to level 3 on 1 June 2020..hooray…many more sectors can open up and construction will definitely pick up now, slowly and surely tenders starting picking up and there was much speculation about all the field hospitals that were being planned (these projects were shrouded in secrecy and very little information was being released) but we persevered and were diligent in our research and managed to add 13 of these Covid 19 hospital projects to our database. Half of the office was still working remotely and the other half were coming to the office under strict hygiene and sanitising conditions. The joy of sitting at my desk, with the familiar all around me was soothing to the soul, maybe, just maybe things are going to be okay, no wait, I know they going to be okay, it might be different, it might be hard but it will be okay. I felt the construction industry was starting to look up and gain a little traction, majority of the projects in various sectors that were under construction when the lock-down was announced were prepping their sites and educating their staff on how to take precautions so that construction could recommence in earnest. Our L2Q department started getting new bills from contractors that required coding and pricing, there was a definite movement in the industry.

Level 2 was the next stage and that momentous day was 18 August 2020, 145 days since the National Lock-down was implemented. Additional industries have been permitted to start again and the number of tenders has increased, in all the different trades that we capture. Even though life might not be the same and the old normal has evolved into a new normal with a face mask and copious amount of sanitiser, there are signs of the Private Construction Sector is moving ahead and the larger privately funded projects are being awarded and construction is starting, new developments are being marketed and researching for updated information is moving at an increased pace.

We entered Level 1 on 21 September 2020 and there has been a substantial increase in public tenders as well as the progress and movement in privately funded projects.

Even though the effects on the construction industry and economy in the whole will likely have long term consequences Leads 2 Business will strive to continue sourcing viable and beneficial information for our subscribers as we did through the entire lock-down.

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About Debbie Wessels

Juggling a energetic, full of surprises life, working full time with two teenagers and hoping to still be sane and normal by the time I retire.

5 Essential Tools used in Construction

When I was first given this topic, my mind went straight to the larger tools such as concrete mixers, scaffolding, etc but why do we always need to think big, what about the basic tools, not even the powered tools, let’s get back to the basics.

After giving it some thought, I realized that 5 essential tools would be different for everyone, as no two constructors are the same, and it would all depend on what one specializes in and of course what they deem useful to them

So from an office worker, here’s my take on the five most essential tools to have in one’s tool belt if you are in construction:


  1. Tape measure, as the saying goes measure twice, cut once. Everything in construction needs to be measured, no matter what field you are in.
  2. Pencil/chalk – once measured, the measurement needs to be marked off, drawings and designs need to be marked too.
  3. Hammer – what would a builder be without a hammer especially one with a claw. So many things one can do with a hammer!.
  4. Stanley knife – such a handy tool, one can cut tape, rubber, electrical wire, etc. Strip the end of the wire and so much more.
  5. Pliers – a good quality pair of pliers is vital to hold, pull and cut building materials.


This is my take but I am sure that many will find that other items are more essential or important to them.
Happy Constructing:)

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About Debora Keet

My journey at Leads 2 Business started in January 2006 as a Private Projects Researcher, Since October 2008, I have been in the Administration and Human Resources department.

OPINION: SA’s construction sector is in ICU. Here’s how government can help

Like most sectors of the economy, the South African construction sector has been struggling prior to the lockdown instituted by government in response to the Covid-19 pandemic. This restriction on almost of all projects further pushed already struggling construction companies down the cliff.

All comes against the backdrop of well-known industry issues such as declining government infrastructure spend poor payment practices within sector’s supply chains and more importantly, the broken industry operating model that is no longer fit for purpose.

This declining trend in public infrastructure spend is largely due to municipalities and state-owned companies substantially reducing their spending over the past few years. Transnet, Eskom and several major state-owned companies have struggled to access capital markets to finance capital projects and infrastructure programmes.

Most municipalities have been consistently underspending on conditional infrastructure grants and are they are not collecting enough revenues to finance their capital budgets. The same trend is visible in infrastructure spending as a percentage of GDP. Government can change this.

For instance, without even lifting a finger, the government can consider practical and actionable strategies already presented and tabled by the industry.

In response to Covid-19, the construction sector has since formed a Construction Sector Covid-19 Task Team, currently comprised of over 30 organisations representing major suppliers, contractors, regulators, professional associations and built environment professional services firms. This Task Team has since worked with government to develop an industry-specific Covid-19 Construction Health & Safety Protocol. Furthermore, the Task Team has submitted a comprehensive short to medium term plan government of actionable reforms to help the sector recover.

This initiative shows that the construction sector is already working together to respond to the impact of the Covid-19 and ensure sustainability of the industry over the coming weeks and months, as well as to enable it to play a full part in South Africa’s economic recovery as the global search for vaccine progresses.

However, the sector also needs support and a clear commitment from government expedite various infrastructure policy reforms.

1. A predictable and reliable long-term infrastructure pipeline

A forward-looking pipeline of planned projects and programmes of economic and social infrastructure is urgently required to help construction companies understand which infrastructure investments government is currently prioritising. By publishing the pipeline, the government will help provide visibility, knowledge and understanding of where infrastructure investment is being made and by whom. Publishing projections of longer-term infrastructure investment will boost market confidence and will help the sector with business planning. This is important because the 18 Strategic Infrastructure Projects (SIPs) which were coordinated by the Presidential Coordinating Infrastructure Commission established during the Zuma administration lacked transparency and to this day no one has a clue about their progress. The recent announcement that the Presidency will host the inaugural Sustainable Infrastructure Development Symposium is a step in the right direction.

2. A single government body to coordinate infrastructure planning

The government should establish under the Department of Public Works and Infrastructure an infrastructure planning and coordinating body that will combine fragmented efforts and infrastructure related work currently done in different government departments. The Budget Facility for Infrastructure within Treasury, the GTAC Capital Projects Unit, the Presidential Infrastructure Coordinating Commission within Trade, Industry and Economic Development, the Public-Private Partnerships Unit within Treasury and ultimately the newly established Presidential Office for Investment and Infrastructure led by Dr.Kgosientsho Ramokgopa should all be merged into a single entity will coordinate all infrastructure planning and coordinating efforts of national, provincial, local government and major state-owned enterprises. This has obvious benefits for the sector. The current level of fragmentation is problematic and wasteful. The lack of transparency by DBSA on the R100bn Infrastructure Fund is also concerning.

3. The use of innovative infrastructure procurement delivery methods

Government should also commit to moving away from the unsustainable transactional and cost-driven procurement of infrastructure and instead embrace the creation of value-driven, collaborative procurement methods that can deliver investment programmes that secure the outcomes demanded by clients and the public. The use of alliance contracting, integrated project delivery and design-build procurement could help address the gaps and failures presented by the current traditional construction procurement delivery approach.

The myth that lowest cost equals best value only survives because of the lack of best value options to compare it with. Furthermore, the processes of designing infrastructure, obtaining tenders, administering contracts and dealing with claims all incur transaction costs, management costs and overheads down the supply chain. These costs are embedded in every price submitted by tenderers and in the final price paid by the owner. The construction industry shows little interest in measuring these costs in a consistent manner and this lack of transparency. Government can change this.

South Africa needs high performing infrastructure. Without it we have little hope of improving the productivity of our economy. Without an improvement in productivity, we will not be able to secure the quality of life demanded by our growing population. Yet the model we use to deliver and operate much of our infrastructure is broken. Too often it produces assets and networks that are expensive, perform poorly and fail to exploit the advances in technology that are transforming other industries. Too often the supply chain that delivers our infrastructure seems locked into a cycle of low margins, low investment and dysfunctional relationships. Covid-19 has presented our government with an opportunity to change this.

By Mr, Ronnie Siphika is the Chief Executive at Construction Management Foundation and member in the Construction Sector Covid-19 Rapid Response Task Team.


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About Sasha Anderson

Millennial Mom + wife living the hash-tag life

Abandoned Construction Projects in Africa

posted in: Construction Chat 0

An abandoned construction project can be defined as a project which has been 1) totally abandoned, or 2) indefinitely delayed. Abandonment may happen at any stage of a project life-cycle and incur a significant amount of loss.

There are various reasons why construction projects are abandoned:

  • Inadequate planning
  • Inadequate finance
  • Inflation
  • Bankruptcy of Contractor
  • Variation of project scope
  • Political factor
  • Delaying in payment
  • Incompetent project manager
  • Wrong estimate
  • Faulty design
  • Inadequate cost control
  • Change of priority
  • Unqualified/inexperience Consultants
  • Administrative/legal action
  • Disputes
  • Natural Disasters

The effects of construction projects are mainly:

  • Unemployment
  • Bad image for government
  • Government sector underdevelopment
  • Slow economic growth
  • Financial institutions lose confidence in the state
  • Discourages investment
  • Loss of revenue by state

Here are a few construction projects that have been abandoned and the reasons:

1. The Ghana-STX Building Project, a $10 billion housing project – The project was supposed to lead to the construction of 200,000 houses in Ghana for over 5 years. From research findings, causes of failure of the project were due mostly to disunity, lack of effective governance and project control. Corruption was also a feature.

2.  Mususu Kalenga Building in Zambia – The structure was built at a cost of K400 million by the Zambia State Insurance Corporation and sold to Royal Lutanda Company Limited at K800 million in 2000. The 11-storey building has remained abandoned for over 25 years. There is no indication as to why it was never completed.

3.    900-1000MW Coal Power Plant at Lamu in Lamu County, Kenya – Kenya’s National Environment Tribunal revoked the license granted to the Power Company to build a coal power plant, due to the companies failure to do a thorough environment and social impact assessment (ESIA) that met the requirements of the law.

4.    Construction of a 20,000 seat capacity stadium in Mongu District in Zambia – The government abandoned its plans for the Mongu Stadium most likely due to lack of funding.

5.    Grand Police Bay Hotel, Seychelles – There was a lot of backlash regarding this project and the government decided to not proceed with its plans.

6.    Al-Noor Tower, Casablanca, Morocco – The 540m high skyscraper was to include a luxury hotel,  offices, apartments, an art gallery and a luxury arcade of shops. The client, Middle East Development LLC decided to not proceed with the development stating that a tower if this size was not an appropriate project for Morocco at the moment.

7.    Hope City – A mixed-use development in Ghana – With a downturn in the economy, relocation of the project, and erratic power supply, work on the project never got underway. RLG Communications, the Ghanaian tech company which was supposed to be spearheading the project was itself caught up in various scandals. To date, nothing further has happened with this development.

8.    Pinewood Uranium Project, Tanzania – Kibo Mining (AIM: KIBO; AltX: KBO) announced on 24th February 2017 that it will cease activities at its Pinewood and Morogoro uranium coal and gold projects with immediate effect. The reason behind this strategic choice is in that both Metal Tiger and Kibo Mining have experienced considerable success in other projects of their business portfolio and this has led to these interests becoming the absolute focus of each company.

9.    Construction of sewers, roads and infrastructural services for 360 plots in Kazungula Village and at Nnyungwe area in Kasane, Botswana – Government mysteriously abandons the P80 Million tender as works near completion and this sparks corruption rumours.

Research Gate – Abandoned
Research Gate – Government
PM World Library
The Gazette

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About Nadia Milln

My journey at Leads 2 Business all started back in September 2014 as a content researcher in the Daily Tenders Africa Department. In March 2018 I was promoted to content researcher in the Private Project department. I am a fun loving, bubbly person and mom to a beautiful baby boy who is the absolute light of my life.

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