Power Development
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Transcript of Power Development
WRITTEN BY KATIE RICHARDSON
Power Group is at the forefront of South African engineering and building development. An innovative industry leader with 31 years experience in the sector, the civil construction company is initiating an exciting new project in 2014, expected to be the biggest of its kind in the country’s history. The Group’s marketing manager Gary Power offers insight into the ways in which the company is making a real impact to business and the local economy through this lucrative venture.
CONSTRUCTING Sustainability
“Initially, Power Group started only as a small construction
group and has since grown into the largest non-listed
construction group in South Africa,” says Power, “The Power
Group is split into Power Construction, which incorporates both
Power Civils and Power Building, and Power Developments, the
property development division. Power Construction is responsible
for forty seven percent of all the civil infrastructure and basis for
the new wind farms in South Africa. This is more than any other civil
contractor in South Africa.”
The group’s national activities certainly span an impressive
field: from property development; turnkey housing and road and
earthworks construction, to rehabilitation and renewable energy,
and is acknowledged to be one of South Africa’s most innovative and
influential contractors. Active in the Western, Southern and Eastern
Cape, as well as in Gauteng, one of the nine provinces of South Africa,
the company operates nationally from the Head Offices in Cape Town.
Power Developments is the property division of the Power
Group, formed in 1991 and started by constructing small residential
developments. Since the early 90s, the South African government
has been actively rolling out subsidised housing for the poor which
accelerated the company as a housing developer and to date, it has
constructed over 50,000 houses. The company’s branch initiates
and manages multi-million Rand turnkey developments – developing
and building residential, industrial and commercial properties within
a wide-ranging portfolio: from high-density housing projects, to
prestigious developments and commercial course developments. It
is planning to add to this already notable profile by embarking on an
POWER GROUP
A simple pledge made by a fledgling organisation in April 1983 remains its cornerstone today. The words “to improve the quality of life in Africa through infrastructure development” marked the beginning of a company that has changed both cityscapes and landscapes, constructed profitable luxury residential estates, built industry-changing road and office blocks, developed economic housing schemes and above all, provided the solid groundwork to service it all.
16552_RED_ConstructionReview.indd 1 2011/09/23 10:51 AM
upcoming and crucial role in community housing, an ambitious project
that will see the company construct 3,200 subsidised and private
homes at the Pelican Park Project in Cape Town this year – the biggest
integrated development ever in South Africa.
Cementing the landscape Buyers are offered several choices on different types of property
to suit various budgets; Pelican Park will include 2100 BNG (Breaking
New Ground, government subsidy housing) houses to beneficiaries
earning less than R3500 (£197) per month, 720 GAP houses, open to
anybody earning between R3500 – R15000 (£197- £844) household
income per month, and open market housing, open to anybody/
household earning above R15000 (£844) per month, all in one
development.
The BNG houses are 40m² two-bedroom houses with basic
amenities, given to beneficiaries at no cost and are funded by the City
of Cape Town. The single and double storey GAP units, launched at
a record R290 000 (£16,280) are the cheapest new freehold house
available in South Africa, and the essence of the flagship project.
These GAP houses are 42m² and consist of two-bedroom, single
storey, semi-detached units as well as double storey two, three and
four-in-a-row 42m² units. There are 359 Open Market units with
three optional sizes of 48m²m (two bedroom), 56m² (two bedroom)
and 74m² (three bedroom) free standing houses, with an optional
single garage as well. To date, the company has already completed just
over 400 houses and has a further 2,800 to build by the end of 2017,
“The landmark development will include a primary and a high school;
a health clinic; library; community shopping centre; fuel station and
various commercial sites,” says Power, “Residents can work, play and
live without leaving the development and send their kids to school
across the road.”
To bolster such an ambitious project, the Power Group has
already delivered significant success with the first FLISP (Financially
Linked Individual Subsidy Programme) units in the Western Cape.
The programme is open to any South African who is 18 years or older
and has never received a government subsidy before. Applicants
apply for a bond first, and then a FLISP application is handed in. “It
assists those buyers who earn more than the R3500 (£196.50) cap
for BNG housing and could never afford a bond before,” explains
Power, “This has taken huge innovation from the Power Group as
there is currently only two other developments that are able to sell
homes at under R300 000 (£16,842) in the Western Cape. There is a
cap house price of R300 000 (£16,842) on FLISP but we are trusting
this will be increased to R400 000 (£22,457) shortly.”
The Pelican Park Project has already garnered significant
encouragement and approval, both in South Africa and further afield,
and has been nominated as World Design Capital focus project
this year. A further coup for the company is a partnership with the
International Nelson Mandela Build, hosted by Habitat for Humanity
South Africa, where more than 3,000 volunteers will work onsite at
Power Group and donate their time to build 100 houses in just one
week. This innovative consumer education, backed up by service
and product aims to achieve great things. “It is another way of
integrating different cultures and income brackets,” says Power, “It is
only through these strategic partnerships and those with the banks,
local and provincial government that makes these developments
possible. A number of local businesses are in fact benefitting from
their contribution on this project and moving forward they will
put a massive amount of money back into the local economy with
businesses.”
Power to the people The Power Group prides itself on having a progressive and
innovative Organisational Development department, that has not
only paved the way for the Group, but spearheaded civil industry
training programmes and even assists smaller companies with
advice and guidance. Training and development for its 1800 staff is
compulsory and part of the culture; all employees complete a PDP
(Personal Development Plan) which is reviewed annually. “We believe
that any other construction and development company can have the
same machines and similar products, but ultimately the staff make
[the company] different and you will often hear the term the “Power
Family”, says Power.
The last 15 years has seen significant change at Power Group,
both structurally and strategically. One of the more notable
commitments to employees, and
by extension, the South African
community, the company offers
co-ownership to staff affiliated
with the company for five years
or longer. Thus, employees can
have a direct share in the profits
generated from the financial
successes of each year alongside
the three shareholders, Power
Group Holdings; the Power
Group; and the Power Group
Employee Trust. “A few years ago,
all 450 staff members that have
been working for the Group for
five years and longer were given
30% shares in the company,”
Power explains, “Many of our
management and staff have
been working for the Group for
more than 20 years and some for
even more than 30 years, which
is very unusual in the tough
construction industry.”
These trusts are proving
effective: the 420 unit holding
employees now hold the same
share of ownership in both
Power Construction and Power
Developments, meaning at
least 20% of shareholding
of both companies through
the Investment Trust and
the Employee Trust will be in
workers’ hands at all times.
“While projects, plant, tenders
and technology keep these
different companies performing,
the Power Group is ultimately
about people . . . People joining
hands, working together towards
a shared vision,” says Power.
The ‘sharing of knowledge’
within the company manifests
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POWER GROUP
itself in many ways – from formal training courses and ‘learner-ships’
to experiential training and workshops. Annually, Power Group
enrols a vast number of students, either as bursary holders, or as
trainees and eighty percent of these students come from previously
disadvantaged communities, “Because we care about the wellbeing
of our staff and their families, we are committed to maximising our
peoples’ potential through ongoing development and coaching,” says
Power, “Knowledge sharing through skills transfer is a vital way of
achieving and maintaining this culture of ongoing improvement.”
In addition, these strong principles of corporate responsibility
transfer neatly over to customer focus. A dedicated PR division
that actively focuses on client relationships coupled with an annual
internal and external customer evaluation has resulted in significant
customer loyalty; the majority of clients have been making use of the
Power Groups services for more than 20 years.
“It is testament that we are not a company that comes in, does a
project and walks away afterwards,” says Power, “We pride ourselves
on completing work ahead of schedule and beyond our clients’
expectations. We are only one of the very few companies that have
an internal civil and building construction and property development
division, complimented with expert project managers to offer a
turnkey service.”
Keeping promises “The Power Group has proudly completed over 31,300 BNG
houses to date, which is more than 1,000 units per year since our
existence,” remarks Power. “The new integrated model is more
sustainable, and I believe is the future of housing in South Africa.
“Pelican Park is an R660m (£37m) development, started in 2012
and will be completed by 2017. We are currently completing roughly
80-100 houses per month. Over 450 houses have already been
handed over and construction on a 6000m² shopping centre will
begin in June 2014. More than 600 jobs have been created on the
Pelican Park development alone.”
How will these plans adhere to the company’s core pledge and
principles, I ask. “We need to move away from a hand-out mentality
and specifically, from creating an entitlement culture,” asserts Power,
“The GAP market is a new market for the Power Group, and we look
forward to assisting in providing homes to the more than 500,000
families in this bracket in the Western Cape alone. We look forward to
continuing to be a market leader in South Africa and we are also very
excited about our new venture in Namibia and looking at expanding
into the rest of Africa.”
“ The Power Group is ultimately about people: people joining hands, working together towards a shared vision.”
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POWER GROUP
0027 219071300
WWW.POWERGRP.CO.ZA