Mass Housing Solutions briefing on Wall Ties and Forms Building System

Meeting report

Presentation by Mass Housing Solutions on Wall Ties and Forms systems
Dr Clive Dutlow, Chief Operations Officer, Maxwell Moss and Associates, said that Maxwell Moss and Associates (MMA), a South African company, the Tagos Group from Texas, and the company Wall Ties and Forms (WTF) had formed an alliance with the objective of bringing housing solutions to Africa, and to offer sustainable development solutions wherever they might be needed. An Alternative Housing Conference was held recently in Johannesburg, which had sought to address some of South Africa’s housing challenges, and some of the possibilities presented there were important. He introduced Mr Charles Engelken, President of Wall Ties and Forms Inc, USA.

Dr Dutlow noted that there was a global demand for housing. Throughout the world, there had been an influx into cities throughout the world, with numerous social problems accompanying the housing crisis. The need for good housing included the issues of unemployment, and family structures breaking down. Good housing was not necessarily new housing, as illustrated by the fact that he still saw houses of over 1 000 years old, still standing, in the Middle East. MMA was committed to finding solutions that were both applicable and enduring.

The challenges to housing included the issues of finance, attracting appropriate investment, and locating non-traditional funding into the sector, because it had to be innovative. MMA was looking at financial institutions internationally, and would probably set up a housing fund to be part of the solution. Construction issues included the need to find scaleable solutions, and ensuring that the right contractors used appropriate technology, whether or not it was new. This meant that there had to be training on skills, and setting standards. Agrimon Testing was used. Wall Ties and Forms had managed to address those challenges in many developing countries, and many emerging economies, and its solutions were borne from its experiences.

Poured concrete was considered, globally, as the best overall solution for durable mass housing. Its major advantage was that it could be rolled out much more rapidly than other systems. Several concrete buildings in South Africa had been erected when concrete was low-cost, in the 1960s, for instance in Kenilworth and Tokai.

Currently, there was a huge backlog in housing, with one report noting that, in Cape Town alone, the backlog to meet housing needs was 400 000 dwellings, and this increased annually by about 15%. The situation had to be remedied at a number of levels.

Dr Dutlow emphasised that the three groups in the partnership were committed to a globally tested, sustainable development, business solution to the housing crisis in South Africa.

MMA, when considering sustainable development, looked at housing security, food security, water security, energy security, and job security. Its proposed housing solution included building, which generated much job security. If the houses were properly built with the correct water saving devices and solar electricity generating systems, they would also contribute to energy security.

MMA, in this project, worked with some of the large consulting engineering companies, including Aurecon, and PIC. It also consulted banks on a funding model, as well as contractors and developers. Besides the mass housing issue of the lowest level of affordable housing, MMA was also looking at gap housing, rental stock, and at student accommodation. There was a need for 25 000 student beds for the universities and Technikons in Cape Town alone. He said that it was also suitable for clinics.

MMA proposed to use AfriSAM for cement supply. AfriSAM won the award for the “greenest” cement in South Africa because its carbon footprint, over the last ten years, had decreased by 30%, and it was the first company in the world to introduce a CO² rating system on its cement pockets. AfriSAM was also the leading Black-controlled materials group in South Africa, and supplied over 1 000 contractors.

Wall Ties and Forms was the largest aluminium shutter manufacturer in the world. In South Africa, contractors who built concrete houses used mild steel frameworks into which the concrete was poured, but mild steel was not only heavy, but it also corroded. Aluminium, on the other hand, was very light and easy to form into shapes, and women could be used to put up the forms into which the concrete was poured.

MMA was also responsible for getting the certification of the system. Examples of structures were multi-unit apartments (built in less than 60 days), single unit homes (4 day construction cycle), and mass row housing (2 day construction cycle).

The system was labour-intensive, using manual labour, with twelve labourers involved in the construction of each single storey house. 90% of the workforce was unskilled and it took an average of two weeks to train them, because the system was very rigid, and quality-compliant, and once the frames were locked into place the final product could be guaranteed. 95% of material used in construction was local and at this stage only the frames would have to be brought into the country.

Dr Dutlow then outlined some of the other solutions that addressed the major hurdles encountered in mass housing projects. Wherever WTF built a housing estate it would donate a library to the community, equipped with books, as well as hardware, and software to support the available technology.

Dr Dutlow noted the advantages of using the proposed system. Firstly, as explained, it was fast to build, with a single storey top structure completed in two days. The robust construction had been proven to be earthquake resistant. There was high quality finishing and low maintenance costs. The energy savings attracted a 5 star rating by an USA Agency. He reiterated that 95% of material was locally supplied, that this was labour intensive, and ideal for unskilled labour. The economies of scale allowed savings of 10% over conventional building methods. It was the system of choice for large project roll outs in many developing countries. It would boost the construction industry, cement or concrete and building material supply businesses.

Mr Charles Engelken, President, WTF, said that WTF did business in Africa in Nigeria, Ghana, Tanzania, Kenya and the Southern Sudan. He showed videos of developments in other countries, and the speed, simplicity and efficiency with which the housing projects were built. He reiterated that aluminium was used in the production of forms because it was light and allowed for human pouring. Aircraft- grade aluminium was harder than mild steel, which was important for longevity. The only tool needed to erect an aluminium form was a hammer. Aluminium could also be shaped in many different ways, which meant that different features could be added to the formwork without extra cost, to enhance its appearance. Openings were always the same size, so windows and doors could be ordered in large numbers and would always fit. The flat and smooth surface required very little finishing work, as opposed to traditional methods. He outlined that the slabs and electrical box, plumbing and wire mesh were supplied ready. Forms were set and concrete was poured, then those forms would be moved, on the next day, to the next site, so the whole system was akin to a “moving factory”. He indicated that WTF also had an insulation system for extreme climate issues. WTF would be opening an office in South Africa, as its base for African operations.

WTF built many four and five storey buildings around the world, predominantly because they did not require elevators. A four-storey building was completed in only sixteen days. He showed Members a time-lapse video of a project in Mexico of 7000 units of 50 square metre duplexes, showing a single-day process, and a few days of activity on the job site. Two workers could finish the exterior in one hour.

Discussion
The Acting Chairperson asked how far the process of registration with the South African Bureau of Standards had gone.

Dr Dutlow responded that the company was working with Agrément SA, the certifying body of choice, which was started under the auspices of, and was funded by the Ministry of Public Works. Its certification was recognised in 160 countries. WTF had already satisfied much of the certification in what it had already done. All papers of certification from other parts of the world would be submitted, and a house would be built at the Council for Scientific and Industrial Research (CSIR) campus, where it would undergo impact, water and other testing, with assistance from consulting engineering companies. This should be completed early in the new year, whereafter the building process could begin.

The Acting Chairperson said that approval must pre-empt anything else and that any building must be fully compliant with South African laws. Given the need to upgrade informal settlements, and to attend to rural housing, it was an interesting presentation. In addition, it was not necessarily linked to subsidies.

Ms M Borman (ANC) thought it was a very impressive presentation and could well provide a solution to South Africa’s housing problems. There were about 2 700 informal settlements in this country, and quality and cost were important issues. Government had in the past been hurt badly by poor quality housing. She noted that Mass Housing Solutions would be registered and would be working with National Home Builders Registration Council (NHBRC). She asked for how many years the companies had worked together.

Mr Ivan Jones, Chief Executive Officer, Maxwell Moss and Associates, responded that MMA had a relationship with Tagos for almost eight years. MMA was in the process of registering the WTF company with a large portion of South African ownership, in this country.

Ms Borman was pleased to hear that 95% of material would be obtained locally. However, in regard to the aluminium frames, she urged that there should be an emphasis on South African manufacturing. She asked how realistic it might be for the alliance to set up a plant in South Africa, so that that manufacturing took place locally.

Mr Jones responded that one system could be used a thousand times to build a thousand houses. The system cost therefore comprised only about 1% of the total project cost. The process was capital-intensive, and this meant that it made more sense to set up the systems outside South Africa, and put 95% to using South African supplies.

Ms Borman referred to the comparative ten percent reduction in cost. She asked what, for instance, would be the cost of building a 40 square metre house, and of a 50 square metre duplex.

Mr Engelken responded that the basic building cost would be very competitive in South Africa, but would vary according to the finishes. A fully functioning house, which was ready for occupation, would cost about US$300 to 400 for the structure, or R2 100 to 2 800. There was typically a 10% saving over traditional methods.

Ms Borman said that the whole idea of human settlements was to build cohesive communities, which suggested inclusion of greenery and parks, and she cautioned that human settlements should be settlements, not simply concrete jungles.

Dr Dutlow responded that Sao Paulo, a city of 28 million people, did look like a concrete jungle, and was very depressing, with high crime rates and a very violent society. However, the alliance worked very closely with the Green Building Council, and the University of Cape Town’s Urban Policy Centre, and he agreed that wherever MMA was involved, it was most concerned not to create concrete jungles.  

Ms T Gasebonwe (ANC) asked whether there would be continuity after the two-week training programme for the unskilled work force.

Mr Engelken explained that his reference to the only tool necessary being a hammer related only to actually erecting the system. However, there was still plumbing, electrical, steelwork and slab work required. Training was ongoing. WTF did certification of the different levels of workers.

Mr Jones added that the training was fourteen days. However, the company would employ the people it trained, and it would be an ongoing process.

Ms D Dlakude (ANC) said she was overwhelmed by the presentation, and thought it would be a solution to South Africa’s problem of informal settlements. She asked about the inside temperature of the structures, particularly in areas that regularly experienced high temperatures.

Mr Engelken responded that predominantly the houses were built without insulation, but in extreme climates the structures were insulated. A study showed a reduction of energy usage of about 50%, using that system. WTF was rated as 5 star, the highest rating in terms of energy efficiency. Concrete was not hotter than brick.

Ms N Mnisi (ANC) agreed that this system could be the solution to the country’s huge backlog in housing. She asked whether the company had any skills development programmes.

Ms Mnisi also asked for an indication of the life span and the durability of the houses, and how many houses could be built in a year without compromising quality.

Mr Engelken responded that one system could build 200 houses a year, so it depended on how many systems there were on the ground. It was possible even to build 2 000 a year.

Mr Jones added that if twelve people were used per system, which was able to generate 100 000 houses per year, then it had been calculated that using 1 500 people should allow for the building of 50 000 houses per day. The size of the contract would determine how many jobs were created. If the number of jobs were to be the deciding factor, then the number of systems used could be worked out.

The Acting Chairperson noted that during a recent exhibition in Sandton, the impression had been created that all solutions were highly dependent on subsidies. Mass Housing Solutions, with its international experience, should be able to offer some advice in that regard. He noted that South Africa was still building with brick and mortar, but the uniform approach, creating identical houses, must be avoided. He believed that it was necessary to be more creative and offer more choices to people. He said that although good impressions had been created in the past, the building had been of poor quality. He looked forward to seeing examples of this system.

Mr Engelken agreed that there should be some variety in architectural features, and pointed out that the component system allowed for changes to the front of the building, or inclusion of certain features, to change the look.

Mr Jones added that the focus would not only be on subsidised housing from government. The alliance was also looking at gap housing and other categories that were not receiving subsidies.

Dr Dutlow added that rental stock was important. People had difficulty in getting mortgages, as the banks were not providing bonds, which forced many people to rent. MMA was working on a funding model that looked at rental, rent-to-buy and housing security.

Mr Leepo Tsoai, Committee Researcher, asked whether there was a plan to work with new emerging contractors as part of empowerment.

Mr Jones responded that MMA was 100% black-owned and was currently working with a consulting engineering company that empowered emerging contractors on a regular basis. MMA also used a 100% black-owned consulting engineering company that was one of the emerging contractors a few years ago but was now itself empowering emerging contractors. MMA was very serious about empowerment.

Dr Dutlow added that the 100% black-owned consulting engineering company was also empowering municipalities. The lack of a skills base in a number of municipalities had prevented those municipalities from applying for Municipal Infrastructure Grants and Expanded Public Works Programme incentives, but the company offered free advice and assistance to them in applying for money from central government. It was thus going beyond the normal targets of empowerment and was very innovative in bringing solutions from the private sector to the public sector, to ensure the projects happened.

Ms Borman asked in how many Kenyan projects Mass Housing Solutions was involved, and how long it had worked there.

Mr Engelken said that WTF had been involved in three different projects in Kenya. The first was around five or six years ago, building single-family houses of 100 square metres. It had also constructed medium-size houses in Kenya, duplexes in Nigeria and also ten fourteen-storey buildings for a new city. In the past, it had concentrated on development in Latin America, but recently more than half of WTF business was in Africa.

Dr Dutlow said that Mass Housing Solutions was being approached by contractors who had won tenders and who wanted to use the system. One of these contractors had won a 9 000 house tender. Mass Housing Solutions, instead of waiting for its own tender, could help with others. It had engaged with the Department of Human Settlements, and of Public Works, and suggested that where a tender specified a brick or conventional building system, the contractor should be asked to tender on that, but add an addendum setting out alternative methodology and its advantages. This applied particularly to building of schools and clinics.

The Acting Chairperson said this was a very comprehensive programme. Members of this Committee were tasked with ensuring that people had quality of life. It was possible that some people who had won tenders might not have capacity at some point. The Committee, during its oversight, should be able to visit some of the Mass Housing Solutions projects, and hopefully would be able to interact in many other areas.

The Chairperson noted that Members hoped that Mass Housing Solutions could ensure that they made a contribution towards assisting government to address the burden of the 2.2 million housing backlog. Africa was a large, but poor market but it was poor. The briefing was very useful, and the photographs were very exciting, but it would be more exciting to see the projects in reality. Mass Housing Solutions had a lot of experience and he hoped they would interact with business and government, both of whom needed assistance. He added that it could assist Government to reach its goal of creating employment, which was a way to defeat poverty. The Committee wished Mass Housing Solutions well in registering with SABS and other bodies.

Mr Jones agreed that seeing projects was important to believing in them. He stressed that he would be pleased if the projects in Mexico, Venezuela and Nigeria could be seen, and believed that the target of creating jobs could be realised.

The meeting was adjourned.