Welcome to Power Group

The Power Group Celebrates 25 Years
Published by The Cape Times, Commercial Feature, 8 April 2008

If ever one man’s dream could help fulfil the dreams of many, this is it. Precisely 25 years ago,a young entrepreneur named Graham Power set out with his wife, Lauren, in an orange, second-hand bakkie on a journey that would do much to alter the face of construction and engineering in South Africa forever.

That day – April 8, 1983 – marked the beginning of a career and the birth of a company that would have as its core purpose “to improve the quality of life in Africa through infrastructure development ”.For millions of people, the idea of owning a proper home was a distant dream. For many, it still is. But, thanks to a changed political landscape and forward-thinking companies such as the Power Group, the dream of home-ownership has become a reality placed within reach of the many. In striving to achieve its vision, which is to be recognised and respected as the “first-choice supplier of civil, development and building services”, the Power Group is encouraged and guided by another dream, a constant reminder that the company is in it for the long run.

The “100-year dream” is a commitment, a promise that Power’s leadership made in 2001 to the prolonged existence of the group.

One of the most visible demonstrations of the Power Group’s commitment to the up liftment and bettering of the lives of people has been the co-ownership offer extended last year to all its employees with five years’ service or longer.

This groundbreaking sharing of Power followed the restructuring of the 12 companies in the group into two, Power Construction and Power Developments. The deal means that every permanent staff member who has been with the group for longer than five years can now have a direct share in the profits each year.

Truly democratic
Ownership now resides with three shareholders: Power Group Holdings, with 70% interest; the Power Group Employee Trust, with 20% interest; and the Power Group Investment Trust, with 10% interest.

Trusts
Through the trusts, the 420 unit-holding employees hold the same share of ownership in both Power Construction and Power Developments. At all times, at least 20% of share-holding of both companies through the investment trust and the employee trust will be in black hands. True to the spirit of loyalty that thrives among Power management and employees, this is a BEE deal that is serving to empower people from within the group.

Rewards
It rewards those who have helped to build the group, and will continue to reward generations of employees as they move through the ranks. This is truly “broad-based” empowerment.

POWER Developments, under the leader-ship of MD Henrie Jonck, is tackling the next 25 years with a bulging portfolio of exciting projects. Following the success of Thesen Islands in Knysna, Power Developments has been responsible for a number of residential, industrial, office and retail developments. In the Western Cape, southern Cape and Gauteng, the company has established itself at the forefront of sit-up-and-take-note developments.

High-profile projects
Currently, Power Developments is focusing its attention on a selection of high-profile projects that will provide clients, investors and end-users with real estate enhancements of the calibre that Power has become synonymous with. One of these is the Jack Nicklaus Golf Club, at Plettenberg Bay, punted as “one of the most exciting projects ever in the golf industry in South Africa.”

Waterberg leisure More extensive, the R3-billion Water-berg Game Reserve development near Bela Bela will offer lifestyle seekers a 5 800-hectare game, golf, residential and leisure experience. Waterberg Development Consortium has as its main shareholders the consortium’s MD Tony Georgiou, the Power Group, Graeme Bosch and US property developer Jonathan Stern.

A Boland “first”
Turning social responsibility and the need to provide in the demand for upmarket developments into a one-of-a-kind offering, Power Developments is set to start site work at Levendal, a rural lifestyle project on the bank of the Berg River near Franschhoek – one of the first “inclusive housing” developments in South Africa, where people from differing socioeconomic levels will live as neighbours.

Constantia lifestyle
Sillery Estate in Constantia, is a 26-unit residential estate in the heart of Constantia on leafy Sillery Lane. Top-range security and connectivity will provide peace of mind, while the ample open spaces and the natural spring and wetland will help retain the semi-rural character which makes upper Constantia so highly sought after. Construction is scheduled to start in September. Power Developments works closely with its fellow group company, Power Construction. “Our strength is imbedded in our relationship with Power Construction, whose support helps us to fulfil our role as a turnkey developer,” says Henrie Jonck, MD of Power Developments. “Furthermore, we are strengthened by the combined expertise of our development partners and specialist consultants. We would like to thank all these role players who have contributed to ensuring steady growth over the years.”

ACKNOWLEDGED as being one of South Africa’s most innovative civil engineering contractors, Power Construction has developed specialist expertise in the installation of civil services, road works, pipelines, earthworks and concrete works. For CEO André du Preez, an important contributing factor to the company’s success has been the training and upskilling of the workforce. “The commitment of our people is gratifying. The way in which they have taken on some really daunting challenges has been amazing.”

Country-wide
Power Construction is active in the Western, southern and Eastern Cape, as well as in Gauteng. Its civil engineering divisions include Power Construction West, based in Cape Town; Power Construction Coastal with offices in Knysna and Port Elizabeth and Power Construction North, operating from Midrand in Gauteng. Power Construction’s Building Division specialises in projects that range from affordable and institutional housing, to high-income residential projects and industrial and commercial developments.

Talent meets technology
Power Construction’s Plant Division aims to deliver a good service, to maintain the Power fleet in excellent condition, keep up with technology, be competitive on the open market and be innovative in the designing and building of equipment for their internal clients.

On the road
The company’s Roads Division has well-balanced and highly efficient road-building units to satisfy all its customers’ road construction, reconstruction and rehabilitation needs throughout South Africa. Power Construction is closely linked to the labour-intensive construction initiatives, and to strategies for the promotion of emerging contractors.

Behind the scenes
Power Construction’s Services Division includes the Finance, Technical, QACS and Organisation Development departments. Based at the head office in Cape Town, the Services Division renders services to all regions.

NEAR the False Bay shore at Muizenberg, Power Construction’s Building Division has erected 144 apartments for Amdec, completing the project ahead of schedule in February. This is a “remarkable achievement”, considering the quality of finishes required and the fact that they have met MBA Safety Award standards. Also in Muizenberg, Power Construction’s Building Division is constructing 66 individual residences in the neighbouring retirement complex known as Fisherman’s Hamlet. Again, the client is Amdec. Power Construction Building Division director, Poens Venter, says they are well on track for handing over in July of this year. Stone Village near Westlake is another exciting upmarket project where Building Division has been tasked with the construction of 36 two-and three-storey luxury homes. The first eight units have been handed over; the rest are scheduled to be completed by June. Further inland, at la Cleménce Retirement Estate near Stellenbosch, Building Division has built 37 upmarket residential units for Liberté Trust. The project is divided into five sections. Section 1 – comprising five units – was completed ahead of schedule in October last year, despite progress being hampered by a very wet winter.

The remaining units were completed in February 2008 – once again on schedule and within budget. Delft 7 – 9 Precinct 1, a housing project comprising 1 200 subsidised homes to the value of R65 million is taking shape. Poens Venter reports that the project is progressing well.On a slightly smaller scale, the Almenkerk Wine Cellar will soon welcome wine lovers to its impressive premises at Elgin. The building division is constructing the entire wine production facility from scratch. Top-class finishes are being used in the tasting centre and the actual production and maturation cellars. The R15 million project will be handed over to its Belgian owner in September.

IN what has traditionally been a man’s world, more and more women are entering the civil engineering, building services and construction industries. Perhaps this is nowhere more apparent than at the Power Group.

Diversity

Increasingly, Power’s employee complement is reflecting the gender, as well as the racial diversity of our country. “The group is serious about the empowerment of women, and substantial progress has been made in diversifying the workforce,” says Marlene Cronjé, organisational development director.

Approximately 50% of the women employed are operational staff, working as engineers, technicians, surveyors, and more, and the rest are employed in the services professions, such as human resources, accounting, and secretarial. Previously disadvantaged women are given preference, and they bring fresh perspectives and skills to the workings of the Power Group.

“Our female workforce is very committed to the company; they are determined to make a difference and to prove that their special attributes can enhance the performance of the company even further. ”Women are also well represented on the boards of directors of both Power Construction and Power Developments.

TWENTY-FIVE years without a single retrenchment is a remarkable act to follow. Weathering the ups and downs of a market that has endured its share of instability over the decades, the Power Group has not once had to cut its staff complement through retrenchment. This would seem to be a record in the civil, development and building services industry in South Africa.

50 000 homes… and counting

Power Developments is the property division of the group, formed in 1991. Since this time the government has been actively rolling out subsidised housing for the poor. This boosted Power Developments as a housing developer and, to date, the company has constructed over 50 000 houses.

The company has received various awards from Local and National Government, as well as the South African Institute of Housing (South African Housing Foundation). Power Developments 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 (such as Thesen Islands in Knysna) and various golf course developments.

A positive attitude
Part of Power’s way of caring for its people is an established and results-oriented HIV/Aids programme. To date, 98% of the staff members have been tested voluntarily. Those who have tested positive are on the programme and are receiving the required treatment.

Rugby clubs score
Through a joint initiative between the Power Group and Western Province Rugby Football Union, 15 rugby clubs from the townships –mostly playing in the Sunday League – have received a welcome injection of equipment and first-aid supplies.

Contractors empowered

“One focus area of our new Industry Charter is enterprise development, and in this regard, I am thankful to Minister Marius Fransman, MEC for Transport and Public Works, for facilitating Power’s roadworks emerging contractor programme,” said Power Construction’s CEO André du Preez. “Through this programme young previously disadvantaged entrepreneurs are given exposure to business opportunities they may not otherwise have had.”

Potential
Speaking at the Power Group’s cocktail function late last year, he introduced two such contractors who had been identified as showing “huge potential”. They are Busi Ncala and Vuyo Mzizana. These dynamic young engineers are encouraged to learn every aspect of business – from finances to management, human resources and, of course, construction itself.

“HOW can you realise your dream if you don’t have one?” This is the thought-provoking question that executive chairman Graham Power put to the new employee unit holders at the employee-ownership information session held in the Christian Activity Building in Brackenfell recently. At this historic meeting, 420 new part-owners learnt how they will have a direct share in the company.

“We’ve set ourselves a stiff goal,”Power continued, “and we’ve set our-selves a purpose: to improve the quality of life in Africa through infrastructure development… putting inroads, building houses, undertaking developments…”

“It is a big, wide-open goal. There are many poor people and many hungry people in Africa. And, we are saying ‘we want to make a difference’. “We are making a pledge to help eradicate systemic poverty in Africa. It is our commitment. One company alone cannot solve all the problems,but we can make a difference.”Power added, “Everything we do must be measured against the three ethical questions: Is it legal? Is it balanced? How will it make me feel about myself? ” Being truthful to these questions is at the core of the group’s corporate positioning of “unashamedly ethical”, he explained. Power expressed the hope that “what you and I have been building for the past 25 years has laid a solid foundation for the
100 year dream.”

MOTORISTS travelling along the R21 in Gauteng, between the Pomona Road off-ramp and Benoni, can look forward to free-flowing traffic once the Power Construction’s Roads Division completes a year long project to upgrade the busy 3.2 km stretch. The upgrading involves the addition of an extra lane, the insiture cycling of the existing two lanes in both directions and the demolition of an abandoned bridge. It represents an investment of R95 million by the South African National Roads Agency Limited.

N line with its culture of caring, the Power Group has implemented an employee wellness programme, providing employees and their families with assistance when they require help with the prevention, identification and treatment of psychological or social problems.

In the know
Skills transfer is a vital way of achieving and maintaining Power’s culture of ongoing improvement. Annually, the group enrolls a large number of students, either as bursary holders or as trainees on learnerships. Eighty percent of these students come from previously disadvantaged communities.

An ethical culture
Being ethical is one of the group’s stated values. The specific behaviour expected forms part of its culture statement. All staff members attend annual culture workshops, where teams evaluate themselves and where very practical case studies are discussed to ensure that all employees are aware of how “being ethical” affects them directly.

Ways to go
Power people know exactly what is required of them; they are guided by “The Power Ways”, a set of bench-marks that – together with the company values – govern the ethics, performance and quality of each company and division within the group.

THERE is a prayer movement sweeping through Africa and across the globe. Its mission is: “Transforming Africa through Repentance and United Prayers as we mobilise the Body of Christ and all spheres of society, community by community, nation by nation with the full Gospel of Jesus Christ”.

Transformation Africa was started by Graham Power, after he had received a vision in June 1999. After much deliberation and personal resistance because he had no theological background, he hired Newlands Rugby Stadium in 2001,where 45 000 Christians from all denominations and races came together to pray for Cape Town.

They concentrated their prayers on Cape Town’s climbing crime rate, poor rainfalls and various bomb blasts. Across the African continent millions of Christians were inspired to participate in the process of transforming Africa.

Seventy-seven South African regions and 27 African countries (66 cities) committed to a Day of Repentance and Prayer for Africa on of May 1, 2003. On May 2, 2004 Christians from all 56 nations of Africa participated in the first-ever continental Day of Repentance and Prayer for Africa.

This movement of prayer is“miraculously” expanding, says Graham Power. “In 2006, millions of Christians from 199 nations united in prayer and in 2007 even more Christians from 204 nations participated.”

FLYING in the face of the scourge of corruption and crime, the “Unashamedly Ethical” campaign is an independent and far-reaching initiative founded by Power Group chairman Graham Power. Its aim is to promote ethical, professional and values-based trading in South Africa – both in business and in one’s private capacity.

All CEO's, company directors, principals, shareholders, individuals, professionals and companies who value ethical, honest and fair business practices are encouraged to sign a pledge to be ethical in all their dealings and actions. As a corporate entity, the Power Group has aligned itself with the philosophy and sentiment behind the “Unashamedly Ethical” campaign.

So closely has the group become associated with the values under lying the initiative, the company’s new corporate identity also includes the positioning line, or credo: “Unashamedly Ethical”. Graham Power holds strong views on the effects of corruption: “Unless we eradicate systematic corruption, we cannot eradicate systematic poverty.”.

CARING for people is one of the values formulated in the Power Group’s “Purpose and Vision” statement. It is through caring that the group has succeeded in building “a passionate, loyal and proud workforce with a great team spirit”.

But caring goes beyond the workplace and has found worthy beneficiaries in the Power Group’s corporate social investment programme.

Through investing time and expertise in one of these – a non-profit organisation called “Go for Gold”– Power Construction is helping to address the critical shortage of construction sector candidates from disadvantaged communities.

The programme offers intensive tuition in physical science and mathematics; life skills and communication training; support with tertiary qualifications; and employment opportunities.

Also emphasising skills building, Eagles Rising Training Centre is involved in training youth from the poorest informal settlements in Cape Town. The centre offers Christian discipleship and skills training on both a part-time and full-time basis. The centre is on the Elandskloof Farm at the foot of Sir Lowry’s Pass near Gordon’s Bay, where the Power Group has had its roots since 1983. The group assists with the administration and maintenance of the farm, as well as providing various other resources and support. Power has also employed many graduate students of the centre.

The Power Group Charitable Fund was started in 2000, inspired by the Bible verse of Proverbs 3:9-10“ Honour the Lord with your wealth, with the first fruits of all your crops; then your barns will be filled to over-flowing, and your vats will brim over with new wine.”

The companies in the group donate the first 10% of their profits to the fund. This supports various charitable organisations, such as Beautiful Gate Ministry –an organisation providing care to children suffering from HIV/Aids. The group has furthermore assisted The Ark, school and home to 1800 unemployed and homeless people, by providing food, building materials and text books.

TEN minutes’ drive from OR Tambo International Airport,on the way to Pretoria, lies a vast area of grassland and wetland where wild game and the game of golf will soon share centre stage.

This is the birthplace of Serengeti Golf and Wildlife Estate, 800 hectares of prime real estate near Kempton Park. The development is by Acudev, the golf course was designed by Nicklaus Design and Power Construction has been tasked with the bulk earthworks and the installation of civil services. The total value of the civil work is estimated at R200 million.

Apart from the Jack Nicklaus Signature golf course, the proposed development will include:

A residential estate;
A world-class golf and country club;
Serengeti Village Square, where residents and visitors will have access to restaurants and bistros, convenience shops, delis and specialty stores;
Serengeti College – an independent, co-educational combined preschool, primary and high school;
Serengeti Resort Hotel, with conference facilities, meeting rooms, theatre and wellness centre; and
Equestrian facilities.

POWER Construction has embarked on a R106-million contract to lay a 10km sewer pipeline.
The pipeline will run from Lourensford Pump Station in the Strand, across the old AECI land to Macassar Sewage Works.

PLEASANT SHOPING
At the Zevenwacht Mall in Blackheath, Power Construction has completed the R12-million bulk platform and will now focus on the parking area. This phase has since been extended to include the interface between the parking area and the entrance to the building. This has added R8m to the total contract value which now stands at R25 million.

HISTORIC SITE WILL BE HOME TO THOUSANDS
Burgundy Estate, a self-sufficient suburb rapidly rising at the foot of Tygerberg Hills, will eventually provide housing for about 14 500 people. It is being developed at De Grendel, the historic farm that once belonged to Sir de Villiers Graaff.

It is a massive undertaking, sprawling over 185 hectares of prime land. Power Construction is installing civil services for Phases C, D and E to the value of R20 million, as well as installing bulk water supply works at this ambitious development. The developer is Visigro Investments, the consortium that consists of Charles Potgieter Investments, Gr8 4 U Investments and Nedbank Property Partners.

CONSTRUCTION HAS A FAIRWAY TO GO IN PE
In the Eastern Cape, theR1.2 billion Wedgewood Village Golf and Country Estate in Port Elizabeth involves 17.5 km of roadway (part tarred, part brickpaved), an equal distance of water supply pipeline and 21 km of sewage pipeline that will serve 830 homes. Construction is expected to take until December this year. The Pinnacle Point clients (who commissioned the recently completed golf course development near Mossel Bay) have negotiated the civil works with Power Construction.

STILL BAY IS HAPPENING
Stil baai Duine is an upmarket residential development comprising 220 stands close to the beach at Still Bay East. Here, Power Construction’s Coastal Division has been awarded a R23-million contract to install the civil services and brick paved roads. Facilities – nearing completion – will include a shopping centre, gym, heated pool and a water slide. Still in Still Bay, the Hessequa Municipality has awarded the construction of a 2 megalitre water reservoir to the value of R6.5 million to the Coastal Division.

Japie Abrahams - Foreman, Power Construction
“Graham Power and I started together on the farm Elandskloof. We started out small. One bakkie. No graders and stuff. Just Graham and myself and five other men. We did small jobs, mostly. Church yards and driveways and so on. Graham also had his spade.You’d never see him standing hand on the hip, supervising. He would jump in and work like the rest of us.

We used to work together at Savage & Lovemore,so Graham knew what he was getting when I joined him. That decision of mine to join Power Construction was a blessed decision.

From the early days Graham said I would grow with the company. True, the years have been good to me. Today I am a foreman and my son is a bricklayer. This is a good company; it is blessed by God.”

Paul Thiart - Director, Power Construction Coastal Division
“Graham Power has a special knack with people,so it didn’t take much persuasion on his part to convince me to join him at Power Construction. Graham’s wife, Lauren looked after the office which had been the smallholding’s horse stables.

Change
Change. That is something that’s in no short supply in the Power Group. Especially during these last 15 years we have changed dramatically both strategically and structurally.The highlight was of course last year with there structuring and the employee-ownership offer where ordinary workers suddenly became co-owners - what a fantastic gesture!”

POWER PURPOSE AND VALUESPURPOSE
To improve the quality of life in Africa through infrastructure development.

VALUES
Our vision shall be achieved through dedicated adherence to the following values: ethics, absolute reliability, quality, caring for people, professionalism.