Africa Property Construction Cost Guide - AECOM Home

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CONTENTSAECOM AFRICA PROPERTY &CONSTRUCTION COST GUIDE 201829th EDITION 2018ISBN 978-0-620-79321-6 AECOM SA (Pty) Limited.All rights reserved.

CONTENTSTo learn more about how AECOM is delivering a better worldgo to: www.aecom.comGet our:Without Limits AppAlso follow us on:Twitter: @aecomFacebookLinkedInInstagram

ContentsMessage from the Director, Cost Management Africa6Section 01Imagine it. Delivered.8Our Core Values9Safety First10Quality Excellence11Africa has Risen12Improving Lives 13Global Unite14Building Information Modelling 16Sustainability 19Research Support 21Candidacy Support and Mentoring Programme22Section 02Our Services 24Quantity Surveying/Cost Management24Engineering Cost Management 27Building Services Cost Management28Section 03AECOM in South AfricaBroad-Based Black Economic EmpowermentSection 04South African Cost DataKey Factors Influencing Building Cost RatesApproximate Inclusive Building Cost Rates3030313136Section 05Global Sentiment and Building Costs45Africa Outlook 201845Africa in Figures 47Africa Building Costs51Global Building Costs53Section 06International Prestigious Office Rental Comparison55Section 07Building Cost Escalations 58Section 08Method for Measuring Rentable Areas66Section 09Return on Investment 71Residual Land Value75Section 10Directory of Offices in Africa77

CONTENTSMessage fromDean NarainsamyDirector – Cost ManagementBuildings Places, AfricaPositive sentiment in the business environment seems to bethe theme for 2018. Amazingly, we are already halfway throughthis year and, as a business, the year ahead presents manyopportunities and challenges for AECOM.As alluded to last year, investment in innovation is a keytrademark for a global business. We are happy to reportthat our Cost Management BIM team has made significantprogress in enhancing our 5D BIM capability. We canproudly say that we have local project examples that clearlyillustrate the benefits of using 5D BIM. The dawn of digitaltransformation has enabled our team to embrace a more proactive approach, both from a cost and contract managementperspective, allowing us to focus on a better service offeringfor our clients.Our journey into Africa continues. As a result of our globalpresence and project work in Africa, our opportunities pipelinein infrastructure has created a balanced portfolio of worklocally, with a more focused approach to grow our projectpresence in Kenya, Ghana, Uganda, Mozambique, Lesothoand Botswana. The year ahead reflects one of consolidationand building on the investments that we have made in places,people and projects. Fundamental to our success will beunderstanding the local economic policies of government,employing local people and embracing the culture of workingin Africa.AECOM6

CONTENTSWe are proud to report that we have made significant stridesin improving our broad-based black economic empowermentcommitment in South Africa, and have moved from a Level3 contributor a year ago to a Level 1 contributor in terms ofthe Department of Trade and Industry’s (Revised Codes)scorecard. As a business we view this milestone as an ongoinggoal to achieve the highest possible accreditation in support ofgovernment’s empowerment policies.The old adage that ‘you are the reflection of the team thatsupports you’ holds firm in our thinking. Our ability to retain,attract and recruit the best people remains, and will always be,a key focus for us. Our Graduate Development / Mentoring 4Success programme has already gained significant traction,and I am pleased that we have already had successfulprofessional registrations since its inception last year. This istruly a remarkable achievement, and enforces our commitmentto growing and nurturing our young talent into professionalswho will help shape the future of our industry. We have alsostarted a strategic partnership with the Department of PublicWorks to house their candidate quantity surveyors in our M4SProgramme in order for them to fast-track their registrationprocess. It is our intention to grow this initiative throughout ourvarious office locations.As a business, we continue to evolve, and 2018 sees anotherchapter being written in our evolutionary process, with ourmain focus being on innovation, our people and clients. Ourvision is to become an organisation that is respected andvalued for inspiring solutions, enduring legacies and continuingto remain relevant in a constantly changing and challengingconstruction environment.Best Regards,Dean NarainsamyAECOM7

CONTENTSSection01Imagine it. Delivered.It’s one thing to imagine a betterworld. It’s another to deliver it.AECOM was built to do just that. Witha deep and experienced global team,we design and deliver infrastructureand services that unlock opportunities for clients and communities andprotect our environment and improvepeople’s lives.From urban centres to remote villages,our work is transformative. We makea positive and lasting impact byapplying our global reach, connectedexpertise and delivery excellence tosolve complex, evolving challenges.The difference that we help our clientsmake is felt in every region of theworld. Clean water for developingcommunities, iconic skyscrapersthat swell a nation’s pride, power andsecurity to fuel economic prosperity,transportation that brings peopletogether and thoughtful planning thatsustains cities and natural resources.Our clients face tough, interrelatedchallenges that can only be solved bya company like ours - one with deeproots, diverse perspectives and aninnovative approach. One with thepeople, technology and vision todeliver what others can only imagine.We areAECOM8

CONTENTSOur Core ValuesAt AECOM, we are guided by six core values that we all share andthat underpin everything we do.SAFEGUARDWe operate ethically and with integrity, whileprioritising safety and security in all that we do.COLLABORATE We build diverse teams that connect expertiseto create innovative solutions.INSPIREWe develop and celebrate our people, andelevate the communities we touch.ANTICIPATEWe understand the complexity of our clients’challenges and help them see further.DELIVERWe grow our business through operationalexcellence and flawless execution.DREAMWe transcend the industry by reimagining whatis possible – and realising it.AECOM9

CONTENTSSafety FirstSafety, Health and Environment (SHE) is a prized component ofthe AECOM culture.Safeguarding our people, those we work with and anyoneaffected by our operations, as well as the environmentand communities in which we work, is a business criticalresponsibility. It is one of our core values and central to our abilityto conduct business with integrity at all times.In order to achieve this, AECOM’s senior management teamleads the improvement process and continuously demonstratessupport and commitment.Our policies, procedures and processes, which form part of ourSHE Management System, are fully aligned to the internationalstandards for both environmental management - ISO 14001,and safety and health management - BS OHSAS 18001.AECOM10

CONTENTSQuality ExcellenceAECOM is a global community of professionals – differentdisciplines, backgrounds and perspectives – united by acommon goal of delivering best-in-class solutions and servicesto clients.To achieve this, we have a Quality Management System (QMS)that provides a consistent documented and auditable platformfor operations with the capacity to manage risk and change.We are committed to promoting a culture of continualimprovement in the management of our business through:— Leading quality at all levels, where everyone is encouragedand expected to do the right thing— Delivering work and services in a manner that meet clientrequirements and enhance client satisfaction— Collaborating, which enables mutually beneficialrelationships with clients, suppliers and internal partners— Anticipating and managing risks to safeguard the integrityof our work and services— Employee empowerment, where quality is achievedthrough a balance between formal integrated processesand empowered employee discretion— Organisational learning and knowledge sharing— Providing a delivery excellence framework for establishingand reviewing appropriate business objectives and targets— Supporting the professional development of ouremployeesOur QMS is certified to ISO 9001: 2015.AECOM11

CONTENTSAfrica has RisenOur operations in Africa boast around 800 people, predominantlyin South Africa. However, we have a growing number ofpermanent offices in key African countries.We offer services to clients across the continent and maintaina project presence in more than 40 African countries. With toplevel professionals in multiple strategic locations, we understandAfrica’s specific infrastructure needs, as well as its challengesinherent in working on our wonderfully diverse, vibrant andcomplex continent.Our multidisciplinary teams of award-winning engineers,planners, architects, environmental specialists, scientists,consultants, quantity surveyors (cost managers) and project andprogramme managers are committed to delivering projects thatimprove the quality of life for Africa’s communities.AECOM12

CONTENTSImproving LivesAECOM is committed to the principles of good governance andcorporate citizenship. As an industry leader with a range of builtenvironment professionals, we strongly believe in investing ourresources to improve the quality of life for all.Our corporate social investment approach includes programmesundertaken for the purpose of uplifting communities in generaland those that have a strong developmental and educationalapproach.Our strategy is aimed at facilitating the empowerment of talentedindividuals within a variety of interventions through universityand into the workplace. We believe that in providing theseopportunities to the identified individuals, they will realise theirpotential and be able to successfully enter the built environmentprofession.In 2017, AECOM established the AECOM Educational Trust withthe objective of providing bursaries to young, black women tofurther their tertiary education in the built environment field.Bridging the Skills DivideDisabled Learnership ProgrammeAECOM’s Learning and Development department, in partnershipwith Enigma Skills College, launched its second 12 monthDisabled Learnership Programme in 2018. Learnerships areintended to address the gap between education, trainingprovision and the needs of the labour market. AECOM has todate sponsored 59 disabled learners on this work-basedapproach to learning that will culminate in a BusinessAdministration NQF level 2 and 3 qualifications.AECOM’s Bursary ProgrammeAs part of our commitment to grow skills, experience andexcellence in the built environment, AECOM offers bursarieseach year to aid full-time employees and meritorious studentsthat are studying towards the main fields of our core business.AECOM13

CONTENTSGlobal UniteWhat is Global Unite?Historically, cost data has existed in many different forms rangingfrom costs estimates to reports, spreadsheets etc.The Global Unite system was designed and developed to allowus to capture and benchmark this cost data in a central location.Unique power in themarket that cannotbe replicated.Centres on a tool thatgathers the wealth ofpreviously untappeddata. Captures data atsource from estimatingand CAD systems.globalUniteDatabase of elementalcost data, projectinformation and keybenchmark ratios.An invaluable bank ofknowledge that wecan bring to newprojects.What can Global Unite do for our Clients?Adds value toour clients’projects.Through ourcost managers andquantity surveyors,provides access toa huge databaseof projectinformation.AECOMGlobal clientswill enjoyconsistentoutcomes anddeliverables.Providesconfidence in therelevance and qualityof data through therigorous checkingand verificationprocess.Enables ourclients tounderstand whatbest practiceis and howtheir projectcompares.Providesconfidence bydemonstrating thebreadth of AECOM’sglobal knowledgeand experience.Enablesour clients tobenchmark theirown projects.configured tosuit individualneeds.Enablesour clients tocreate earlystage indicativeconstruction costscenarios whenconsidering newprojects.14

CONTENTSHow is the Quality of Global Unite Data guaranteed?The system contains a full electronic QA system allowing thecontrol of the data flow.globalUnite- UniPhi applicationApplyingsense checkand QAgateways.Capturesinformation atsources from ourmeasurementand estimatingsystems(2D, 3D & BIM).Usinghierarchicalelectronic signoff to protectthe integrity ofthe data.Automatingthebenchmarking.What information can Global Unite hold?The Global Unite system has been designed to hold all ofthe key project information, primarily cost data, but also moreinformation about the project itself.Sector/market InformationCost InformationDesign DriversFunctional InformationAncillary InformationglobalUniteWe are able to tailor Global Unite to capture any data point thatis required either by the cost managers themselves or the client.AECOM15

CONTENTSBuilding Information ModellingBIM DefinedBuilding Information Modelling (BIM) is used to describe theprocess of designing and managing a building (or other designasset) in collaboration with the entire team, throughout theasset’s life-cycle, by using the same system or model ascompared to using separate sets of conventional drawings andinformation sets. BIM software is used to plan, design, construct,operate and maintain diverse physical infrastructures.Whether we are designing or constructing bridges and roads,office towers and apartment blocks, pipelines, factories orschools, an information model or a database can be created andcontains information about what will be built, how it will be builtand how it will perform. Enabled by technology, we can create asynchronised, collaborative, digital representation of assets tovirtually construct and test a project before we do so in reality.A BIM model usually includes the 3D shape of the objects, butcan also include things such as their cost, installation date,or operating parameters. We can attach practically infiniteadditional data to any object or category of objects in a BIMdatabase, and use that data to manage information flow acrossmultiple life-cycle phases and between multiple parties.By creating a single source of project information and by makingthis available across the design, construction and operationteams, we increase our accuracy and efficiency, and can realisesignificant savings on the life-cycle cost of operating an asset.Benefits of the BIM Process—————Improved visualisationImproved coordination and collaborationImproved conflict detection and risk mitigationImproved productivity due to easy retrieval of informationEmbedding and linking vital information for tenderingscheduling and estimating— Reduced rework costs and improved design efficiency— Improved access to maintenance information over abuilding’s life-cycleAECOM16

CONTENTSThe 5D BIM ProcessFor the Cost Management team, our focus is on 5D BIM,which refers to the linking of cost information to a 3D model.The letter ‘D’ in connection with BIM relates to the type ofinformation associated with the model. It refers to otherdimensions, such as time (4D) or cost (5D) that is linked to amodel. 2D and 3D essentially refer to CAD 2D plans and 3DModel, while 5D BIM entails the intelligent linking of individual3D CAD components to cost-related information.Understanding the ProcessMoving over to the 5D BIM process is an enhancement toour current systems and the implementation thereof will offera number of benefits. The process aims to automate themeasuring, estimating and bill production stages. The valuelies in the fact that it will enable Cost Managers to be moreproactive and to rather spend time on cost engineering andmanagement as compared to measurement and costreporting only.In brief, shifting our focus towards the 5D BIM process requiresthe following:— Involvement with the design team prior to the start ofdesign work to communicate our cost extraction designrequirements— Base our measures on both 2D and 3D designinformation— Create a unified link between the design information, ourmeasures and our costs— Adopt automated estimating, bill production and costmanagement toolsAECOM17

CONTENTSPossible benefits of BIM from a cost managementperspective— Fast, reliable and accurate quantity take-off and costestimation— Auto computation of calculations, hence reducedcalculation mistakes— Categorised cost reporting and estimation via the use ofzones/locations— Improved visualisation of the elements for measurementand costing purposes— Easy project handover between quantity surveyors— Enhanced communication and collaboration amongst theprofessional and project team— Improved cost database management— Enables a more proactive outlook from a quantitysurveying perspective with regard to cost management,contract management and cost engineeringAECOM18

CONTENTSSustainabilityAECOM is a company with a vision to build a better world. Ourprojects transform communities, improve lives and power growthby designing, building, financing and operating infrastructureassets globally.From our on-site practices to initiatives in our offices, we arecommitted to implementing sustainability in everything we do.Our purpose is to enhance and sustain the world’s built, naturaland social environments. Our key goals at the heart of ourcommitment are:— Embedding sustainability into all aspects of our work withour clients— Building our capability to provide sustainable solutions forour clients in creative and innovative ways— Conducting our business in a way that is consistent withsustainability principlesAECOM19

CONTENTSBy embracing sustainability, we aim to produce sustainableoutcomes across every aspect of our work including planning,design, development, production, delivery and review.Sustainability is also at the core of how we manage our companyglobally. We take our responsibilities seriously, and continueto deliver improvements in our environmental performanceacross key performance indicators including greenhouse gasemissions, water, waste, energy and preparedness for theimpacts of climate change.For example, AECOM was a “Silver” founding member of theGreen Building Council of South Africa (GBCSA), demonstratingour commitment to building sustainably. We maintain thismembership each year. We have also assisted the GBCSA withits technical working groups to launch the Green Star SouthAfrica Office rating tool in 2008, and the Green Star South AfricaRetail Centre rating tool in 2010.Employees from across our South African business havecompleted the Green Star South Africa accredited professionalcourse and are available to help clients and colleagues toachieve their environmental responsibilities, as well as theirfinancial objectives in terms of infrastructure and buildingdevelopment.Green building ratings currently undertaken by our team ofsustainability consultants include: Green Star Office, Green StarInteriors, Green Star Existing Building Performance, LEED Designand Construction and LEED Interior ratings.AECOM20

CONTENTSResearch SupportResearch is a key part of AECOM’s aspirations to embracecomplex challenges and deliver transformational outcomes.Through our research and knowledge creation activities, we aimto stimulate beneficial cultural and business changes, resolveindustry-specific problems, support our knowledge databaseand deliver cost-effective, high-quality and relevant services.We also undertake contract research on assignment for clients.Globally we have a tradition of supporting researchcollaborations, and in South Africa we are currently pursuing awide range of research studies with local academic and researchinstitutions, professional bodies and the government.Current research nationally and internationally centres around:— Local, regional and international influences onconstruction costs and prices— BIM cost models— Sustainability and green buildings - drivers of greendesign, construction and operations within differentbuilding types— Improving infrastructure project delivery in South Africa— Tall, large and complex buildings – efficiencies inconstruction and life-cycle costing— The triple bottom line in construction and propertydevelopment— The soft landings process for buildingsWe have on-going collaboration with our international officeswith specific regard to global infrastructure sentiment surveys,sector-specific research and developing global project-costdatabases.Finally, we aim to work closely with industry on continuingeducational workshops and in developing relevant industryreports and publications.AECOM21

CONTENTSCandidacy Support and Mentoring ProgrammeThe AECOM Africa Candidacy Support and MentoringProgramme has been uniquely designed for AECOM Africa byMentoring 4 Success (M4S) to cater for the specific professionalregistration requirements of the whole Built Environment(encompassing 6 professional bodies) as well as two additionalprofessional bodies relevant to AECOM’s end markets.This programme has also been designed to comply withthe stringent requirements of the Department of Trade andIndustry’s Skills Matrix “Category C” programme requirementsand has received approval from two of the most respectedSouth African National Accreditation System-accredited B-BBEEVerification Agencies – Empowerlogic and Platinum Verifications.The programme design includes 6 categories for graduates andapplicants:— “Bridging” applicants who need to increase their minimumacademic requirements— New graduates – prior to their candidacy application— Recently registered or more experienced candidates— Mature candidates (work experience exceeds the normaltimeframe to registration)— Internationally qualified and experienced candidates— RPL candidatesThe programme has been designed to incorporate a carefulbalance between the “process” of professional registrationand the “path” to professional development – thus acceleratingthe development of confident, capable and competent youngprofessionals within AECOM.Candidates from the AECOM Africa Candidacy Support and Mentoring Programme.AECOM22

CONTENTSThe programme is supported by the unique M4S ProfessionalRegistration Mentoring Handbook, which has been aligned inconjunction with each of the professional bodies to demystify theroad to registration and answer the many questions that younggraduates and candidates have each year.M4S provides a completely outsourced professional registrationsupport mentoring programme methodology, as well as thefull programme management, facilitation and administrationresources required to support such a complex and multi-regional/multi-office project of this nature, with over 100 participants. Thisincludes managing, monitoring and maintaining all the complianceand administration requirements for B-BBEE “Category C” andCETA verification.The programme is further enabled via the unique M4S MobileKnowledge Mentoring Apps and Analytic Dashboards, whichenable constant collaboration between candidates and theirmentors as well as their colleague candidates on commonknowledge themes related to their jobs as well as professionalregistration. These unique technology platforms allow M4S togather, monitor and report on the rich engagement analytics socritical to validating effective impact and accelerated professionaldevelopment.Progress monitoring and reporting processes, such as the M4SCandidacy Mentoring Action Plans (C-MAPS), Heat Maps and the“Journaling Process”, are also built into the programme so thatonce a quarter, a consolidated “running progress record” can bemaintained and documented for all appropriate stakeholders.External experts and industry champions are invited to presentinsights and narratives on a quarterly basis in order to buildincreased contacts, contextual understanding, situationalrelevance and industry knowledge.Engaged mentors are also incentivised to participate pro-activelyvia the comprehensive number of possible CPD accreditationsthat both AECOM and M4S provide via the programme. There areseventeen managers and mentors who have been registered asprofessional mentors with an official professional designation fromSA Board for People Practices, which is a unique and industry firstbenefit for mentors only available through this programme.It has been particularly pleasing to witness the multiple mentoringrelationships developed.AECOM23

CONTENTSSection02Our ServicesQuantity Surveying/CostManagementAECOM provides comprehensive costmanagement services from projectinitiation to completion through all sixstages of the project cycle as identifiedby The South African Council for theQuantity Surveying Profession, Tariff ofProfessional Fees, Quantity SurveyingProfession Act 2000 (Act 49 of 2000),which is summarised as follows:Stage 1— Assisting in developing a clearproject brief— Advising on the procurementpolicy for the project— Advising on other professionalconsultants and services required— Advising on economic factorsaffecting the project— Advising on appropriate financialdesign criteria— Providing necessary informationwithin the agreed scope of theproject to the other professionalconsultantsStage 2— Agreeing on the documentationprogramme with the principalconsultant and other professionalconsultants— Reviewing and evaluating designconcepts and advising onviability in conjunction with theother professional consultantsAECOM— Preparing preliminary andelemental or equivalent estimatesof construction cost24

CONTENTS— Assisting the client in preparing a financial viability report— Auditing space allocation against the initial brief— Providing services for which the following deliverables areapplicable: Preliminary estimates of construction cost Elemental or equivalent estimates of constructioncost Space allocation audit for the projectStage 3— Reviewing the documentation programme with the principalconsultant and other professional consultants— Reviewing and evaluating design and outline specifications,as well as exercising cost control in conjunction with theother professional consultants— Preparing detailed estimates of construction cost— Assisting the client in reviewing the financial viability report— Commenting on space and accommodation allowances,and preparing an area schedule— Providing services for which the following deliverables areapplicable: Detailed estimates of construction cost Area scheduleStage 4— Assisting the principal consultant in the formulation of theprocurement strategy for contractors, sub-contractors andsuppliers— Reviewing working drawings for compliance with theapproved budget of construction cost and/or financialviability— Preparing documentation for both principal and subcontract procurement— Assisting the principal consultant with calling of tendersand/or negotiation of pricesAECOM25

CONTENTS— Assisting with financial evaluation of tenders— Assisting with preparation of contract documentation forsignature— Providing services for which the following deliverables areapplicable: Budget of construction cost Tender documentation Financial evaluation of tenders Priced contract documentationStage 5— Preparing schedules of predicted cash flow— Preparing proactive estimates for proposed variations forclient decision-making— Adjudicating and resolving financial claims by contractors— Assisting in the resolution of contractual claims bycontractors— Establishing and maintaining a financial control system— Preparing valuations for payment certificates to be issuedby the principal agent— Preparing final accounts for the works on a progressivebasis— Providing services for which the following deliverables areapplicable: Schedules of

Quantity Surveying/Cost Management 24 Engineering Cost Management 27 Building Services Cost Management 28 Section 03 AECOM in South Africa 30 Broad-Based Black Economic Empowerment