AS 2017 Volume 24 Issue 2

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  • ItemOpen Access
    An analysis of the use of mass appraisal methods for agricultural properties
    (University of the Free State, 2017) Van der Walt, Kobus; Boshoff, Douw
    English: There are numerous factors that influence the price of a farm and some of these factors are not monetary related. This makes the task of the valuer complex and increases the possibility of large differences in the estimated market value determined and the actual selling price. This article reports the results of a study that analysed the unique and distinctive attributes of farms, in order to determine whether it is possible to develop a linear multiple regression model for the valuation of farms (which satisfies accuracy requirements) with reasonably available data. The improvement of accuracy levels of Multiple Regression Analysis (MRA) models as well as the limitations of using these MRA models during farm evaluations was also studied. By following a stepwise regression approach, 60 farms, primarily located in the eco-zone “mixed bushveld” western area of the Limpopo province, were analysed using ten independent variables. Three models have been developed. The results showed that a fairly accurate regression model could be developed. However, a model that achieves a high level of accuracy could not be developed, due to multifaceted reasons, including non-farm factors and the size of the geographical areas. Accurate MRA valuation estimates will be to the advantage of individual farm owners regarding their municipal tax assessments. It will lead to a wider use of MRAs for the valuation of farms, but great circumspect should be taken when using MRA models in farm valuations. This is due to the possibility that the MRA models do not satisfy minimum accuracy requirements. It is difficult, but possible, to develop a fairly accurate MRA model for the valuation of farms. Therefore, if currently used MRA models are not fairly accurate for municipal valuation purposes, it should be possible to improve the accuracy. Further research is recommended in the use of other regression techniques such as non-linear, geographic weighted regression and quantile regression. These other techniques would, however, require a larger data sample, in order to provide meaningful results.
  • ItemOpen Access
    A post-contract project analysis of material waste and cost overrun on construction sites in Abuja, Nigeria
    (University of the Free State, 2017) Saidu, Ibrahim; Shakantu, Winston
    English: Material waste and cost overrun have been identified as common problems in the construction industry. These problems occur at both pre- and post-contract stages of a construction project. As a result of a dearth of empirical research and low level of awareness, the majority of managers of construction projects in Nigeria pay hardly any attention to material waste issues that affect cost overrun. This article examines the material waste issues that affect cost overruns at the post-contract stage of building projects. The study covers building construction projects in Abuja, Nigeria. In-depth interviews were conducted with professionals using purposive sampling technique. It is purposive, because only building professionals handling projects that are worth over eight million USD are consulted/interviewed. The professionals included 15 project managers, nine quantity surveyors, five site engineers and one senior technical officer of a waste management department/unit. The interviews were on issues relating to material waste and cost overruns at the post-contract stage of a project. The collected data were analysed manually, using the deductive approach. This involves constant comparative analysis of the data to generate common patterns on material waste and cost overrun. The research found that poor quality-of-procurement management, construction management, and site management would cause material waste, which contributes to project cost overruns. A good-quality procurement management entails procuring the appropriate materials, at the right time and in accordance with specifications. Rework, site accidents, inadequate site security/fencing, poor site organisation and discipline, construction-site disputes, lack of experience, and lack of co-ordination among the parties all contribute to material waste and cost overruns. It can be concluded that proper attention to material waste issues has the potential to minimise the rate of cost overrun at the post-contract stage of a project. It is recommended that careful attention should be paid to the issues identified in this study, as they would help reduce the rate of material waste and cost overrun for projects.
  • ItemOpen Access
    Deciphering priority areas for improving project risk management through critical analysis of pertinent risks in the Zambian construction industry
    (University of the Free State, 2017) Tembo-Silungwe, Chipozya Kosta; Khatleli, Nthatisi
    English: Risk identification is the first step in the risk-management process. A plethora of current studies in literature dwell overwhelmingly on risk identification much to the exclusion of the source, and the possible mitigation interventions. In a limited effort to address this deficiency in the body of knowledge, this article reports the results of a study conducted using 15 purposive semi-structured interviews and 198 questionnaires targeting clients, contractors and consultants in the building sector in Zambia. This study uses threats to identify improvement areas in the Zambian Construction Industry (ZCI). As a consequence, this research uses the pertinent risk factors as a point of critical analysis to recommend improvement areas for project risk management. Findings show that most of the risks could be categorised as managerial, technical and finance related and could severally be associated with clients, consultants, and contractors compared to project managers. These could be mitigated in the pre-contract phase and construction phase, with the most deficient knowledge areas being cost management, procurement management, integration management, communication management, and scope management. This article provides areas of focus for built environment professionals to improve project delivery and thereby enhance project execution efficiency.
  • ItemOpen Access
    Investigating alternative dispute resolution methods and the implementation thereof by architectural professionals in South Africa
    (University of the Free State, 2017) Wilcocks, Tariene; Laubscher, Jacques
    English: Given the number of role players and the complexity of the building process, disputes are inevitable. As an alternative to litigation, which is often costly and time consuming, Alternative Dispute Resolution (ADR) methods could be used. Arbitration, mediation, negotiation and adjudication are a few examples of ADR and, if understood correctly and implemented effectively, ADR could prove beneficial to all parties involved in disputes. This article investigates the current knowledge, implementation and benefits of ADR within the South African built environment. The focus population of the study is architectural professionals, as defined by the South African Council for the Architectural Profession (SACAP). A questionnaire was distributed among 581 architectural professionals to determine how informed these architectural professionals are about the different ADR methods, their implementation and resultant consequences. The real-world problem is that architectural professionals do not apply ADR methods because of the lack of knowledge regarding the implementation and benefits of ADR. It is considered that the unique contribution of this article lies in the fact that all architectural professionals in South Africa were asked to participate in the survey regarding ADR, its methods, implementations, and their knowledge thereof. This is the first evidence of many anecdotal statements made on the lack of implementation and knowledge regarding ADR methods within the architectural profession of South Africa. The findings reveal that the majority of the respondents are not familiar with the term ADR and could not provide a clear definition; 69.4% of architectural professionals do not discuss ADR methods with their client before entering into an agreement, and 58.4% of the population have hardly any or no knowledge regarding the methods and benefits of ADR. These observations indicate that a significant portion of architectural professionals are currently in breach of the SACAP Code of Conduct and could potentially lose their professional license. These results indicate a possible way forward to facilitate a larger implementation of ADR in future building projects.
  • ItemOpen Access
    Building an infrastructure project performance in the North-West Province Department of Public Works and Roads
    (University of the Free State, 2017) Murwira, Davison; Bekker, Michiel
    English: Building and infrastructure projects at the North-West Province Department of Public Works and Roads (NW DPWR) often perform poorly in terms of overrunning both the original approved timeline and the budget. Adding to poor time and cost performances, these projects often do not meet the desired functional requirements. This article reports on findings of a study which investigated the causes of these poor performances in the NW DPWR. Fifty potential causes of poor performance were identified from literature. These factors were grouped under three main related categories of owner-related, contractorrelated and consultant-related and were subjected to a questionnaire survey to identify the most critical causes of failure. The results were analysed using the Relative Importance Index (RII) and Spearman’s Rank Correlation Coefficients. The results indicated that the most significant causes of poor building and infrastructure project performance in the NW DPWR include underestimation of project cost, the lack of experience in executing projects, contractor’s cash-flow constraints, corruption and bribery during the bidding and contract award phase, as well as poor site management and supervision. Recommendations are made to prevent similar causes of projects failure in the NW DPWR in future.
  • ItemOpen Access
    Stakeholders’ perception of critical success factors for sustainable facilities management practice in universities in sub-Saharan Africa
    (University of the Free State, 2017) Awuzie, Bankole; Isa, Rasheed
    English: The development of an optimal sustainable facilities management (SFM) strategy for university-built assets in sub-Saharan Africa (SSA) is desired. However, this requires an in-depth understanding of the perspectives of different stakeholders on the probable success factors. The elicitation of such perspective is considered imperative, as it allows Facilities Managers to engage with effective SFM planning in a manner that caters to the interest of these stakeholder groups. This study seeks to identify and, subsequently, assess these success factors, according to stakeholders’ perspectives. A sequential mixed method research design is utilised wherein 29 semi-structured interviews were conducted initially, followed by a questionnaire survey conducted with 113 respondents, in the second stage. Interviewees were purposively selected from a university of technology (UoT) in South Africa, whilst respondents were drawn from universities with SSA. Data from the first stage was analysed, using qualitative content analysis, and subsequently applied towards questionnaire development. The questionnaires appraised stakeholder perceptions of the criticality of success factors identified during the interviews. The Mean Item Score (MIS) was used to rank the responses. Results from the analysis indicate that ‘presence of a well-articulated FM plan for specified interval’ and ‘adherence to the tenets of the SD agenda (supply chain)’ were selected as most critical of the success factors identified. It is expected that the study's findings will contribute to the development of a viable SFM strategy in SSA universities.