'Confidence in Western Cape exceptionally high'

Posted On Wednesday, 11 February 2004 02:00 Published by
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Confidence in the Western Cape economy and in residential property in particular is now at an exceptionally high level, says Richard Williams, MD of specialist contractors Gordon Verhoef and Krause.

February 6, 2004

Confidence in the Western Cape economy and in residential property in particular is now at an exceptionally high level, says Richard Williams, MD of specialist contractors Gordon Verhoef and Krause.

Williams says the mood among the professional teams with whom he is in touch on a regular basis is optimistic - most currently have significantly increased order books.

"The lower interest rates coupled with the expectation of large government contracts being released in this election year have all helped fuel investment faith," he said.

Williams said the Cape Town branch of 43-year old Gordon Verhoef and Krause and its associated company, GVK-Siya Zama, had started 2004 with the largest order book in their history.

"We are 40% up on the same period last year," he said, "and we were fully committed for January. However, with some 25 contracts on the go at any one stage, we get through work fast and are securing work for February onwards."

Some of the larger projects where GV&K and GVK-Siya Zama are currently on site are:

The construction of five new buildings at Lentegeur Hospital, Mitchell's Plain. This R44 million contract was won on open tender and is fast-tracked to be completed in nine months.

Construction of a new primary school and administrative block at Christian Brothers St John's College in Parklands with a contract value of R8.2m.

Alterations and additions to a Sanad storage facility at Simon's Town for R5.59m.

A R5m contract for the demolition of an existing building, and construction of a new building in Cape Town for a regular, long-standing client. 

GV&K's success, he said, stemmed from their having built a sound reputation in the field of renovation and recycling of commercial and industrial property. In Cape Town, this was now proving popular with developers and was likely to remain so throughout 2004, with numerous projects planned in and around the CBD.

"Our range of services, including concrete structures and structural repairs, enables us to offer a full service to our clients on these projects."

The company had also, said Williams, become a contender in the new projects market where they were competing successfully against the larger contractors and were delivering their secured projects on time and to quality requirements.

GV&K, he said, were also specialists in conventional painting and redecoration work as well as asbestos removal. Demand for work in the latter field was growing in importance as employers realised the financial and health risks asbestos posed to themselves and their employees.

During the past year GV&K had shown significant growth in the Boland region where, among other contracts, they handled three fast-track extensions and conversions for Absa Bank at Caledon, Hermanus and Bredasdorp. In every case the bank had to be kept in operation throughout the contract.

Williams believed that the consistent real growth in the company's turnover over the last five years would continue and predicted that it might be as high as 20% this year. - Cape Argus Network

Publisher: Business Report
Source: Business Report

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