ePIM I Concise Senior executive preview This slide show is a condensed summary of ARTF Electronic Public Information Manual (ePIM) nbr I. Please have your managers study the relevant full ePIM’s on (Library Section). This preview is issued and used subject to the terms and usage notes of the original full ePIM’s, and the full ARTF-SCRACE etc. terms and conditions as listed on 1

ARTF research findings: On the broad scale African continental building, structure and roof asset damage and financial loss crisis. Including widespread and dangerous SHE, fire, flood, leak and building illegality concerns. Summary of practical remedies - for Owners, Tenants, Roofing professionals, Inspectors, Engineers, Architects, Stakeholders and Finance managers etc. PART I of V – Issued january 2010 BASED ON ARTF/S.A.B.S./CSIR/HDGASA ET AL RESEARCH AND DEVELOPMENT STUDIES (1994 – 2010) 2

By opening and reading this file, the reader acknowledges and accepts that these materials are copyrighted to and are the intellectual property of RNA consultants (RNA), who have sole authority re the usage of these materials, which may not be altered, abbreviated, or issued under any other names than RNA. Usage reserved at RNA’s sole discretion. 3 Copyright © January 2010 – RNA Consultants, all rights reserved

4

5 “This vast pool of knowledge and experience, together with access to the S.A.B.S., CSIR, ISO and other international authorities, is available to industry through the services of ARTF and its members”. Mr. Gordon Munro - Internationally renowned veteran chemical, coatings and waterproofing authority. Manager of the S.A.B.S. Paints and Sealants Division (1988 to 1997). International S.A.B.S. and ISO spokesperson. 3 rd ARTF Chairman and Custodian rd ARTF Chairman and Custodian

6 “Overall costs which can be attributed to corrosion amount to several billion Rand annually in South Africa alone. Corrosion damage to roofing contributes significantly to this costly situation”. Editorial - Volume 4 Issue Hot Dip Galvanizing Today

7 Long-term neglect, and incorrect ventilation, material and corrosion control specifications, caused this Wadeville factory structure to fail very dangerously, less than halfway through its projected lifespan.

8 “… the bill to replace a long neglected and weather/ corrosion damaged factory or warehouse roof, frequently costs between five and twelve million Rand”. (ARTF Roof Users’ Manual).

9 “In most cases, these extreme costs, losses and risks could have been reduced by 40% or more...” (Based on CSIR roof cost study bulletin – ref #B1 104/ – 12 April 2000)

10 Extensive roof rust – Bloemfontein – per the CSIR and many other experts, roofs should be coated before rust occurs – this can reduce maintenance costs by half or more.

11 the long-term cost of not having correctly designed, constructed, repaired and maintained these very valuable assets, could run into the …

12 Hundreds of millions, or even …

13

14 It does also appear to be true that when things do go wrong, it is mainly with the roof area” Gordon H Munro - ISO and S.A.B.S. senior authority

15 “…roofing, as an industry, is neither regulated nor governed formally…”. Billy Perrin Owner/ publisher, SA Roofing Magazine

It has for some time been assumed that modern “clip system roofs”, as used on most new buildings today, are a more stable and secure alternative to older forms of roof sheeting … but … 16

17 … many hundreds of these roofs have been ripped up or damaged extensively by high winds!!! … many hundreds of these roofs have been ripped up or damaged extensively by high winds!!!

18 New roof sheets ripped loose by heavy winds - Johannesburg

19 Many years of careful study have shown that a very large percentage of buildings constructed in Southern Africa over the past 120 years …

20 have been dangerously under-designed etc. and are subject to … …extensive and severe internal flooding through gutters, stormwater drains, downpipes etc.

21

Costs set-aside for roof etc. replacements & repairs (neglect/ unplanned scenario) Disposable Income These and other graphs, charts and calculations used in this slide-show are empirical approximations, not based on virtual models or formal accounting. DISPOSABLE INCOME vs. DEPRECIATION

This chart shows typical deterioration and loss of value and functionality of a large galvanized steel roof in Gauteng. This projection assumes typical neglect and lack of suitable maintenance etc. Deprecation and maintenance/ repair rates are usually % higher at the coast, for common steel materials 23 “Death Valley Curve” Mechanical damage and loss of asset value become somewhat exponential from this point onwards Decay curve of correctly designed, constructed and well maintained roof. Each Rand correctly spent saves three Rand later. SHE & legal issues reduced by 80% or more Decay curve of correctly designed, constructed and well maintained roof. Each Rand correctly spent saves three Rand later. SHE & legal issues reduced by 80% or more

24 This chart shows typical deterioration and loss of value and functionality of a large galvanized steel roof in Gauteng This projection assumes prolonged neglect and lack of suitable maintenance etc. Deprecation and maintenance/ repair rates are usually % higher at the coast, for common steel materials Value ofA.B.C.D.E.F.G.H.I.J. a PhaseApproximate Condition Typical Faults,Overall roof Potential SuccessInvestment Costs to m sqAgeof Roof deteriorationperformance,success ofserviceable lifeofvalue ofrehabilitate roofof Roofleak expectancymaintenance,of a well-constructedcoatingISO/and (afterafter maintenanceroof coatingroof if correctlyandSABS/maintain deprec-coating and repairsand repairsrehabilitated, regularlyrepairCSIR etcroof iation)maintained andmethodsstyle correctly repairedmaintenance RATES OUT OF DATE R Phase yearsExcellent condition R Phase yearsGood condition. Some damage R Phase yearsFair condition. Significant damage R Phase yearsPoor condition. Seriously damaged R R Phase yearsVery poor R condition, very severely damaged R May need need full re- R 0placement No Value AGE OF ROOF : 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS BEYOND 25 YEARS (NB: Graph line became condensed and distorted when chart was re-sized - we will correct in next edition.) PC File Ref: Chart - Roof maintenance.May Feb 2009 Replace incrementally Full SCRACE Care Programme Sweat the Asset Preserve & Upgrade B B Very expensive! Roof to be replaced C C Mid-age roof – seriously damaged. D D New roof - valuable protective galvanizing being stripped due to prolonged exposure and neglect. New roof - valuable protective galvanizing being stripped due to prolonged exposure and neglect. E E Decay curve of correctly designed, constructed and well maintained roof. Each Rand correctly spent saves three Rand later. SHE & legal issues reduced by 80% or more Decay curve of correctly designed, constructed and well maintained roof. Each Rand correctly spent saves three Rand later. SHE & legal issues reduced by 80% or more A A Current date line F F The Rubicon Line – this is the line below which a roof is not reliably and securely salvageable using standard repair and maintenance practices.

AGRAPP - “ARTF Global Roof Asset Protection Plan” – now known as the “SCRACE system”. 25

26

27 “In recent years, two very well known large wholesale warehouse buildings have been gutted by fire in Gauteng, and their stock and equipment destroyed – this was due to the flammability of the roof insulation”.

Highly flammable, extremely bio-hazardous insulation media in use at a Butterworth warehouse– this product releases deadly hydrogen-cyanide gas during combustion In cases like this, insurance claims may be declined. 28

29 Illegal and very dangerous structural non-compliances and weaknesses are often a major issue in buildings. Structural risks and failures

Very unsafe, failed roof and structure – East London 30

31 The purpose of these laws, related by-laws and national standards (SANS etc.), is to ensure that buildings, equipment, structures, utilities etc. are …... maintained in a safe and functional condition by the owners.

... and that the building is able to resist the penetration of rainwater or moisture. 32 This includes ensuring that the building, structure etc. is able to withstand any foreseeable weather or event… National Building Regulations, Pg

33 “Any company that owns or manages a large portfolio of … properties, is very probably in the middle of a massive asset damage, SHE risk, legal compliance and financial loss crisis, without realizing that anything is seriously wrong”. ARTF Public Information Bulletin 2009 THE LONG AND THE SHORT OF IT …

34 This situation has, from a company profitability and sustainability point of view, reached critical proportions”. The Star

35 “The roofing industry has become a minefield” Comment by a senior CSIR Scientific Research authority – circa 2000

36

37 The ARTF-SCRACE building and roof remedial and maintenance system!

38 Advanced Level Corrosion Control Services Engineering Services SCRACE CUSTODIAN & CO-ORDINATOR FUNCTIONS Special Corporate Services Specialised Roofing Services Architectural Services Construction Services SCRACE CUSTODIAN SCRACE CO-ORDINATOR WORKS PROJECT (Optimal & most economical outcome and best investment return ensured) OWNER / TENANT

39 SCRACE derives its name from the first letters of the following: S pecial corporate services; C orrosion control; R oofing; A rchitecture; C onstruction; E ngineering. SCRACE is an operations, structures and hard asset care and services portfolio that is scientifically developed to address building, property, client and employee needs in the field of roof and building technology, etc.. SCRACE is highly beneficial, as it is an advanced, holistic, synergistic and comprehensive science and system…

40 …carefully interlaced and balanced, to ensure maximum asset protection/ development; cost control; staff wellness; statutory, engineering and SHE compliance… … building and function optimization; risk and loss control; green building and infrastructure development; energy efficiency optimization etc.

41 SCRACE utilizes 12-year Strategic Maintenance Plans (SMP's), and cleverly paces and optimizes cost and works allocations, for maximal investment value, ongoing economy, and owner benefits.

42 “ Although roofing project failures and sub-performance are (very) common in the local roofing industry, cases of such that have been reported to myself, the CSIR, ARTF or their senior members, regarding projects undertaken by ARTF approved specialist applicators, using the (SCRACE) specifications and application/ QA etc. systems, have decreased to zero ”. M.S. Smit, Chief Research Officer (now retired), Division of Building and Construction Technology, CSIR. ( ) = editors changes

43 “The ARTF-SCRACE system probably achieves more asset salvation, stabilization, protection and optimization per Rand input, then any other method in use continentally. It is a true, exceptional and very secure investment”.

44 The PSAR is a concise, broad-spectrum preliminary assessment of various key engineering, architectural, corrosion, SHE, fire, roofing etc. items, which provides recommendations regarding high priority works to be done over the following 3 years. It also includes advice regarding reliable expert professional resources, ideal specifications and materials to be used etc. The SCRACE PSAR

45 Micro PSAR - For a concise general overview R 13, R 13, Midi PSAR - Includes Fire Audit, Natural Ventilation Assessment, Safety and Health (S&H) Assessment, Safety and Health (S&H) Audit, more comprehensive Building and Audit, more comprehensive Building and Roof Assessment* Roof Assessment* R 24, R 24,980.00

46 Full PSAR (Highly recommended): Includes: OHS etc. related Structural Engineer’s Assessment and Report Assessment and Report Fire Audit Fire Audit Basic Natural Ventilation Assessment Basic Natural Ventilation Assessment Building and Roof Assessment Building and Roof Assessment Safety and Health (S & H) Audit Safety and Health (S & H) Audit plus a Green Building/ Energy efficiency review* plus a Green Building/ Energy efficiency review* R48, (All prices VAT Excl)

The full PSAR also includes a light preliminary review of your building’s “Green” and Energy Efficiency statuses, and feasible level-1 initiatives for the improvement and statutory / national standards compliance to same. 47

48 to arrange for a PSAR (Preliminary SCRACE Assessment and Report) to be undertaken by an ARTF listed professional team, at one or more of your properties (see contact details on slide 117).

To help greatly improve your company’s understanding, safe practice, statutory compliance and due diligence in the areas covered by this slide show, ARTF highly recommends that all staff and executives attend the related mobile SCRACE workshops – cost R6, per workshop. 49 (All prices VAT Excl)

Contact ARTF on +27 (0) ; (0) or Log on to or Contact your nearest ARTF-SCRACE listed Consultant, Architect or Engineer 50