1. ePIM I-III Senior executive preview This slide show is a condensed summary of ARTF Electronic Public Information Manuals (ePIM’s) numbers I-III. Please have your managers study the relevant full ePIM’s on www.artf-scrace.com (Library Section). www.artf-scrace.com 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 www.artf-scrace.com/terms 1

2. 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

3. 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. 4

5. 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 - 2005-2006 3 rd ARTF Chairman and Custodian - 2005-2006

6. 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 1 2007 - Hot Dip Galvanizing Today

7. 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. 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. 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 104/002 5663 – 12 April 2000)

10. 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. 11 the long-term cost of not having correctly designed, constructed, repaired and maintained these very valuable assets, could run into the …

12. 12 Hundreds of millions, or even …

13. 13

14. 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. 15 “…roofing, as an industry, is neither regulated nor governed formally…”. Billy Perrin Owner/ publisher, SA Roofing Magazine

16. 16 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 …

17. 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. 18 New roof sheets ripped loose by heavy winds - Johannesburg

19. 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. 20 have been dangerously under-designed etc. and are subject to … …extensive and severe internal flooding through gutters, stormwater drains, downpipes etc.

21. 21

22. 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 1963 19782009 22

23. 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 30-300% 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. 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 30-300% 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 10000 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 R5 800 000Phase 1 0-5 yearsExcellent condition R5 080 000 Phase 2 5-10 yearsGood condition. Some damage R4 350 000 Phase 3 11-14 yearsFair condition. Significant damage R3 650 000Phase 4 15-18 yearsPoor condition. Seriously damaged R2 900 000 R2 200 000 Phase 5 19-25 yearsVery poor R1 450 000 condition, very severely damaged R 500 000May 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 2005 10 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.

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

26. 26

27. 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”.

28. 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. 29 Illegal and very dangerous structural non-compliances and weaknesses are often a major issue in buildings. Structural risks and failures

30. Very unsafe, failed roof and structure – East London 30

31. 31 The purpose of these laws, related by-laws and national standards (SANS 10400 etc.), is to ensure that buildings, equipment, structures, utilities etc. are …... maintained in a safe and functional condition by the owners.

32. ... 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. 54-55

33. 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. 34 This situation has, from a company profitability and sustainability point of view, reached critical proportions”. The Star

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

36. 36

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

38. 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. 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. 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. 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. 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. 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. 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. 45 Micro PSAR - For a concise general overview R 13,980.00 R 13,980.00 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 24,980.00 R 24,980.00

46. 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* R48,850.00 (All prices VAT Excl)

47. 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. 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).

49. 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 R6,890.00 per workshop. 49 (All prices VAT Excl)

50. Contact ARTF on +27 (0)11 605 2837; (0)71 343 9194 or Log on to www.artf-scrace.com www.artf-scrace.com or Contact your nearest ARTF-SCRACE listed Consultant, Architect or Engineer 50

51. ePIM part II & III - extracts ePIM part II & III - extracts The following slides were extracted from the ePIM (ARTF Electronic Public Information Manuals) Nbr’s II & III. The following slides were extracted from the ePIM (ARTF Electronic Public Information Manuals) Nbr’s II & III. Pls study the full slide shows (available end March 2010) on www.artf-scrace.com – Library Section. Pls study the full slide shows (available end March 2010) on www.artf-scrace.com – Library Section. www.artf-scrace.com 51

52. 52 Testimonials Testimonials Testimonials from two senior SAB Managers

53. 53 On RTS performance: “Excellent results Excellent project economy Excellent after sales service and cost control” On RTS performance: “Excellent results Excellent project economy Excellent after sales service and cost control” Deena Moodliar Operations Services Consultant

54. 54 Attention: Rick Norwood RNA Consultants 2 September 2009 Dear Rick Having worked for SAB for 7 years as a Risk Manager, I always set extremely high standards for my contractors. SAB as a world class company sets very high standards, not only for their staff but also for their contractors and service providers. When I set out into the big world in 2007 to pursue my dream to be a businessman in my own right and to put my MBA (Masters Degree Business Administration) to work as a consultant, I knew that I had to carry on being the very best I could be and also not accept low grade work from anybody I associated myself, and my company with. I have to honestly say that I have found your company’s approach to roofing contracts very refreshing, in the sense that you did things differently, very much like I did! So we had an immediate synergy which has resulted in my being associated with your company and professional network as the Risk/SHE consultant on 2 projects thus far at SAB (East London and Prospecton). I did an initial risk assessment at Butterworth Depot as well. I have found that your holistic, expert and honest approach to provide the client with world class service as well as intensive and effective project and cost management, and save them vast sums of money was a revelation to me. Coupled with your extensive knowledge and experience I now have a mentor from whom I can truly learn as I move forward. Roofing is very often not included as part of planned maintenance for the majority of companies, although it is one of their most valuable assets. Companies only realize the value of this when the roof is severely damaged and they have to spend money on its repairs or replacement, usually at exhorbitant costs. The approach that you use in being not only a supplier of a service but also somebody who partners companies - in the sense that you look after their assets as if they were your own – is unique and invaluable. You provide companies with detailed reports which gives them a clear indication of the current condition of their roofs. You also assist them with budgeting and CAPIN which they can use for forecasting purposes. This really takes all the guess work out of the equation because you do all the “spade work” for the client. I have noted during my association with you that the roof’s at the respective SAB depots were in most cases in very poor and unstable condition and did not seem to have much “shelf life” left. I know that SAB has maintenance plans for plant and equipment. I would now strongly recommend that roofing for all depots and breweries be part of this as well. For example the Butterworth Depot’s roof is in a very poor condition, has a number of very high and illegal SHE risk factors and will need very urgent repairs. In short, I am saying that I am very impressed with the work that you do. You also have also developed an extensive and expert multi-disciplinary and very professional SCRACE national network (including myself!) that provides the client with the very best service that they can ever hope to have. I am proud to be associated with your company and association, and will recommend you to any company. Best Regards Dane Herman SHE, Fire and Project Management Consultant. SCRACE Custodian. 083 455 6051 Dane Herman SAB Border and Kei Risk Manager 2000-2007 The approach that you use in being not only a supplier of a service but also somebody who partners companies - in the sense that you look after their assets as if they were your own – is unique and invaluable.” “You also assist them with budgeting and CAPIN which they can use for forecasting purposes. This really takes all the guess work out of the equation because you do all the “spade work” for the client.

55. 55 CALCULATING THE DAMAGE AND LOSSES How much is your company losing, unnecessarily, from the neglect of roofs and other Vulnerable Building and Structure Components (VBSC’S)? How much can be saved in Future?

56. 56 Old rules equal poor bottom line! Old rules equal poor bottom line! Many companies cannot afford the usual costs of adequate, correct, essential ongoing professional roofing, construction and engineering remedial services Many companies cannot afford the usual costs of adequate, correct, essential ongoing professional roofing, construction and engineering remedial services Following all the old laws, rules, and recommendations often equals Following all the old laws, rules, and recommendations often equals bankruptcy - a better solution is definitely needed!!!

57. 57 CRITICAL LOSS ZONES CRITICAL LOSS ZONES The Loss-Gain Rule of 1 to 3

58. 58 A vitally important loss-gain issue for many companies at this stage is the salvation of roof etc. areas that are very close to the “point of no return”.

59. 59 Such areas could be as high as 40% of many companies’ property portfolios. Such areas could be as high as 40% of many companies’ property portfolios. Saving these areas in time could reduce the medium term costs by a factor of 300%. Saving these areas in time could reduce the medium term costs by a factor of 300%.

60. In such cases, the increased costs related to a delay of a few short years could be staggering! In such cases, the increased costs related to a delay of a few short years could be staggering! 60

61. 61 The 5 Basic Types of Roof and VBSC Maintenance The MFM – OMI Principle

62. 62 Type 1 Total Neglect Policy VERY EXPENSIVE, VERY HIGH RISK. RESULTS IN EXORBITANT LONG TERM COSTS AND NO RELIABLE COST PREDICTION. ROOFS OFTEN BECOME PERSISTENTLY PROBLEMATIC WITHIN 7 YEARS, AND FAIL 25- 35% THROUGH THEIR IDEAL LIFE CYCLE. VERY HIGH SAFETY AND LEGALITY RISKS WILL TEND TO OCCUR.

63. 63 Type 2 Too Little (Maintenance) Too Late SIMILAR RESULTS TO THE ABOVE, THOUGH LESS SEVERE

64. 64 Type 3 Minimum Feasible Maintenance (MFM). THIS IS THE SAFE MINIMUM CARE POLICY. ROOFS ETC. WILL GRADUALLY IMPROVE AND STABILIZE. SHOCK COSTS, SHE AND LEGAL RISKS, AND EXTREME LOSSES WILL STEADILY DECLINE.

65. 65 Type 4 OPTIMUM MAINTENANCE INPUT (OMI) Theoretically ideal, but profitability, better investment options and cash flow should be considered.

66. 66 Type 5 EXCESSIVE MAINTENANCE This becomes unnecessarily expensive, often with relatively poor investment gain.

67. 67 These are empirical approximations, not based on virtual models or formal accounting. CUMULATIVE REPAIR, REPLACEMENT & MAINTENANCE COST: INLAND C4 ENVIRONMENT GALVANISED ROOFING (10 000sqm Roof) 1) Excl VAT and annual escalation. 2) OMI/ MFM graphs assume early commencement and sustained mainteance (within 3 years of construction), using full and correct SCRACE method. 3) Excessive, premature, incorrect or uneconomical maintenance will significantly worsen the cumulative cost outcome. 4) Where underspec materials or techniques are used, the outcomes will begin to approximate the “emergency repairs” only outcome. 5) The above graphs show heavy industrial corrosion (SO2) areas (C4 on ISO corrosivity category scale). Marine Coastal environments (C5 – surf spray zone) can accelerate costs and corrosion by 30% to 300%. Roof Failed & Replaced Original Roof still in Fair Condition Original Roof still in Good Condition Extreme Safety Risks, Stock Losses, Downtime, Damaged Equipment Safety Risks Nominal Serious Safety Risks & Cost Issues Begin Safety Risks Low Emergency repairs only – too little too late Minimum feasible maintenance input (MFM) Optimum maintenance input (OMP)

68. 68 Key questions What are the cost implications of MFM vs OMI? What will the benefits be?

69. 69 How much will be saved if MFM (Minimum Feasible Maintenance Input Levels) are attained within a year and sustained thereafter, on a existing fairly old, large property portfolio? ARTF estimates that this will effect an average long term saving of around 45% SHE, fire, and legal/ building regulation problems and transgressions should steadily reduce over 12 years by 87% or more Leaks should steadily reduce

70. 70 Roof and building “health control” The basic principles of successful maintenance and asset optimization. Bodies, vehicles, buildings – the fundamental rules and principles are the same. Only one organ needs to fail for a person to die!

71. 71 The two dread diseases of roofs and vulnerable building components. # 1 - Corrosion – The cancer of steel roofs and The cancer of steel roofs and structures. structures.

72. 72 Dread disease # 2 LADCAME LongtermLongterm Accumulation ofAccumulation of DesignDesign ConstructionConstruction AndAnd Maintenance errorsMaintenance errors (This includes neglect)(This includes neglect)

73. 73 The SCRACE methodology The SCRACE methodology A universal holistic scientific solution to roofs and buildings and the owner/ tenant’s optimal benefits from these.

74. 74 Advanced Level Corrosion Control Services Special Corporate Services Engineering Services SCRACE CUSTODIAN & CO-ORDINATION FUNCTIONS SCRACE CUSTODIAN SCRACE CO-ORDINATOR WORKS PROJECT (Optimal & most economical outcome and best investment return) S C R A C E Specialised Roofing Services Architectural Services Construction Services OWNER / TENANT

75. 75 SCRACE CUSTODIAN & CO-ORDINATION FUNCTIONS SCRACE CUSTODIAN SCRACE CO-ORDINATOR WORKS PROJECT (Optimal & most economical outcome and best investment return) Sources, appoints and optimally coordinates and rationalizes the full SCRACE professional team, to achieve all necessary and desired outcomes, with minimum delays, distractions and unnecessary costs. Seeks clever and efficient synergies and rationalizations, to maximize clients gain per Rand invested. Assures and enforces the client’s best interests, optimum project economy and value for money, and excellent project outcomes – all according to the professional codes and application manuals etc. of SCRACE. Ensures that all projects and works comprise an optimum and sustainable investment for the client.

76. 76 Statutory requirements liaison, optimizing and liaison unit (OHS, National Building regulations etc.). Project economy, rationality and investment assurance and development unit Energy efficiency investigations, development and legal compliance unit Environmentally friendly outcomes investigations, development and legal compliance unit Warehouse/ depot optimization unit; SHEQ liaison, optimization and assurance unit; SABS & CSIR etc. liaison unit. Laboratory testing and assessments unit; Fire risk assessment, detection and prevention unit BEE development and assurance unit; Biohazardous materials detection, programming and containment unit Building and roof Strategic Maintenance Plan (SMP) implementation unit; Budget control and advisory service unit. Professional, logistic, key material and other essential resourcing & development unit; Client and listed professionals information and general assistance unit Client and listed professionals training unit Listed professionals rating and database unit Site and services audits unit; Advanced specifying and consulting services. Roof security and damage control After sales service and optimal economy assurance Balance sheet optimization – asset assessments and reports. Asset accounting support unit. SCRACE OUTLINED C S R A C E Advanced Level Corrosion Control Services Architectural Services Client’s needs and goals envisagement & development services. Staff wellness liaison services Corporate and aesthetic image and standards establishment and compliance Special Corporate Services Advanced remedial Engineering Services Diagnostics and modeling services; Engineering Audit services Ventilation assessments, modeling, specification, rationalizing & installations. Small and custom item engineering services Specialised Roofing Services After sales service assurance unit Construction Services

77. 77 The “Thermographic Imaging Concept”, and how “Variable Specification Intensity” methodology doubles remedial gain per Rand input Specially trained advanced SCRACE professionals apply a concept called: The Variable Vulnerability Concept & Variable Specification Intensity (VVC-VSI) E.g. In the next diagram, only red and orange items would usually be addressed. Lower priority items would only be taken up when all higher priority items in the property portfolio have been remedied and stabilized. This prevents overspending.

78. 78 THE CORROSION & DAMAGE SENSITIVE ZONES OF A COASTAL ROOF Significantly damaged/ vulnerable. Good condition, stable Weathered, but sound and stable. Severely damaged/ vulnerable Becoming vulnerable.

79. 79 Per the VVC-VSI formula, buildings in large property portfolios are carefully assessed – all needed works are carefully defined and priority sequenced. Per the VVC-VSI formula, buildings in large property portfolios are carefully assessed – all needed works are carefully defined and priority sequenced. Only the highest priority and top potential gain/ loss control items are addressed per contract, on a layered system basis. Only the highest priority and top potential gain/ loss control items are addressed per contract, on a layered system basis.

80. 80 Because financial and effort wastage is thus greatly minimized, the level of specification intensity (structural rebuilds, new sheeting and components, heavy duty protective systems, localized repairs, lighter maintenance techniques) are then selectively matched to the severity of damage and damage vulnerability of the components …

81. 81 In this way the roof and its accessories become more and more balanced over the years, resulting in majorly improved roof and VBSC life and performance etc., and enormously reduced costs, leaks, legal issues and risks.

82. 82 THE ARTF NATIONAL 3RD PARTY AUDIT NETWORK Project Audits Verifying and quantifying contractor performance and compliance Breaking through the double standard system (closing the huge differential between what is specified/ advertised …... and what is actually delivered... and what is actually delivered especially re. SHEQ etc.!!!) especially re. SHEQ etc.!!!)

83. 83

84. 84 These figures are broad, general empirical projections, based on a 22 year project review. CONTRACTOR AUDIT RANGE ASSUMPTIONS: METAL ROOF REMEDIAL WORKS 2008 ESTIMATED COMPLIANCE TO OHS, NATIONAL BUILDING REGULATIONS, KEY ISO, SABS, ARTF, ETC. SPECIFICATIONS AND CODES OF PRACTICE

85. Custom resource development and SLA’s Specialist remedial contractors and other such professionals are very close to extinct, and do not comprise a viable resource for the care of large property portfolios. Specialist remedial contractors and other such professionals are very close to extinct, and do not comprise a viable resource for the care of large property portfolios. 85

86. Extensive and intensive ARTF-SCRACE HR development and training must occur for each large property portfolio put onto 12 year strategic maintenance plans. Extensive and intensive ARTF-SCRACE HR development and training must occur for each large property portfolio put onto 12 year strategic maintenance plans. This will entail costly infrastructure developments, and major continental training and apprenticeship programs. This will entail costly infrastructure developments, and major continental training and apprenticeship programs. 86

87. This can only be realistically and viably developed on the foundation of 6 year SLA’s between clients and ARTF approved professional teams. This can only be realistically and viably developed on the foundation of 6 year SLA’s between clients and ARTF approved professional teams. 87

88. 88 ESSENTIAL LOSS/ DAMAGE CONTROL POLICY REQUIRED URGENTLY. Setting effective policy to protect your company’s assets and interests.

89. 89 LAW: Senior Management thinks long-term Local branches think short term Due to their own immediate interests, pressures and concerns, local level depots, branches and outlets very seldom correctly, safely and sustainably self-maintain their buildings. This is one of the most fundamental reasons behind the extensive and hugely expensive asset damage, risk accumulation, and the development of serious SHE and building legality issues for the entire corporate group.

90. These factors and liabilities frequently occur when middle management have sole authority and responsibility for the care of buildings, roofs and structures. SOLUTION: ALL MASTER LEVEL MAINTENANCE POLICY, SPECIFICATIONS AND PROGRAMS TO BE SET AND DILIGENTLY ENFORCED BETWEEN THE MOST SENIOR GROUP MANAGEMENT AND ARTF. 90

91. 91 Recommended senior level protocols, policy and operational adjustments, to undercut and permanently correct the current critical and non-sustainable risk, legal issues, asset loss and damage scenario Move all major maintenance and remedial policy setting, procurements, programming and executions directly under the group’s Senior Executive Strata, and advised on always by ARTF. ARTF approved consultants to develop ongoing 12 year strategic maintenance plans for all branches/ depots for maximum gain and cost control continentally Increase and sustain funding to MFM (Minimum Feasible Maintenance Input) level for the entire group continentally, ongoing.

92. 92 Implement strict priority identification for all remedials and maintenance, so that all priority one and two works are addressed continentally first, primarily.

93. 93 Convert fully to the ARTF/ SCRACE system. Convert fully to the ARTF/ SCRACE system. ARTF to consult with senior financial/ investment specialists, the CSIR and SAPOA (South Africa Property Owner’s Association) etc. soon, to establish and develop the best building value assessment and accounting methods, so that true building value and depreciation indices are reported and recorded in financials and asset maintenance registers etc. ARTF to consult with senior financial/ investment specialists, the CSIR and SAPOA (South Africa Property Owner’s Association) etc. soon, to establish and develop the best building value assessment and accounting methods, so that true building value and depreciation indices are reported and recorded in financials and asset maintenance registers etc.

94. 94 The 4 th ARTF Chairman The 4 th ARTF Chairman The legendary John E Erasmus, 4 th chairman of ARTF, signs off a large roofing project, Isando.

95. 95 SCRACE case histories. Before and after photographs

96. 96 Coastal salt spray damage to roof sheets - Ottery - The wrong type of material was used here, and the roof has failed extensively – major replacements were required (new Aluminum sheeting now used).

97. 97 Portable mill rolling continuous 36m aluminum roof sheets

98. 98

99. 99 Aluminum coil before being rolled into roof sheeting

100. 100 New aluminium sheeting ready for installation - Ottery.

101. 101 New Colortech G3 sheeting installed – Ottery. Original (incorrect) steel sheeting began to fail 7 years after installation.

102. 102 RTS ROOF REMEDIAL WORKS - WITBANK Witbank – end lap corrosion

103. 103 Witbank – end lap replacement

104. 104 Building join works in progress - note newly inserted pre-coated sheet sections in background.

105. 105 Roof completed, damaged joints rebuilt. All roof sheeting prepared and protected with polymer coating.

106. 106 Successfully completed works at Witbank building join.

107. 107 Severely corroded structural steel, due to illogical design – now epoxy and polyurethane coated - Witbank.

108. 108 Tzaneen – new box gutter, insulation and purlin

109. 109 Tzaneen – Heavy duty rainwater box, gutter coating and hail guards

110. 110 Wadeville – corroded gutter and liner

111. 111 Wadeville – gutter plate repair

112. 112 Wadeville – high- performance elastomer membrane installed

113. 113 SAB Wadeville – underground drainage remedials, to deal with collapsed link channels.

114. 114 SAB Wadeville – free flow gutter system

115. 115 Isando – refurbished roof lights from inside. Double laying of old fibreglass sheets to the North facing side solved leaks, UV degradation of beer, and reduced replacement costs enormously.

116. 116 These roofs were constructed from an inadequate material for coastal areas (pre-coated galvanized sheeting). Rapid and extensive corrosion damage occurred. The presence of high levels of windblown sand, salt spray from the sea, and high heat and humidity levels, caused extensive corrosion damage and destruction to the roof.

117. 117 Epoxy pre-coating of roof sheets to prevent accelerated internal corrosion, and assure greatly extended roof sheet life. Corroded roof end was redesigned and rebuilt with an Australian high performance product.

118. 118 Epoxy pre-treatment at new roof sheeting at apex, to prevent internal destruction from salt spray corrosion. Roof sheet replacements.

119. 119 Corrosion treatment under gable trims – these areas tend to get packed with damp sand, organic matter and salt. Note the workers using SABS parachute style safety harnesses and safety lines.