Civils division transforms Motheo into a fully-fledged construction group

Online since 5.09.2016 • Filed under Industry news
Civils division transforms Motheo into a fully-fledged construction group

Motheo, well-known in the construction industry as a leading provider of social housing, has launched a civils division as part of its ongoing transformation into a fully-fledged construction group.

The new civils division is headed up by Archie Rutherford, former CEO and director of Ruthcon Civil Contractors. Rutherford brings a wealth of experience and industry knowledge to his latest role. The civils division specialises in construction of roads and earthworks, as well as installation of services such as water, sewer and stormwater reticulation. It has also established a formidable concrete division specialising in all forms of structural concrete work.

“The vision of Motheo is to build a truly empowered, all-encompassing, black-owned construction company. We do not want to focus only on housing. Over the next five to seven years we want to develop into a diversified construction group, covering civils, building and housing,” Rutherford comments.

“We are up and running on the civils side,” he confirms. The new division has already clinched a slew of major projects, including a major factory for Gayatri Cans in Germiston, road-repair work for the Woolworths Distribution Centre in Midrand, and another contract to upgrade the on- and off-ramps at the Engen Blockhouse on the R59.

Projects recently tendered include the Clanwilliam Dam construction project, the Nooitgedacht Wastewater Treatment Plant and various construction contracts for South32 in the mining industry. Rutherford also reveals that, in addition to its traditional housing focus, Motheo will be diversifying into commercial building projects in order to extend its scope even further.

“In order for us to ramp up quite quickly, we are targeting major contracts, but in conjunction with joint venture partners. We have to date entered into various joint ventures with some of the leading listed construction companies. This will give us exposure to the bigger projects, and also build our skills base,” Rutherford explains.

Motheo, which has a Level 9 GBPE and 9 CEPE rating from the CIDB, has a major competitive advantage in that it can price work independently on a national basis. The civils division has also applied successfully for full membership of the South African Federation of Civil Engineering Contractors (SAFCEC).

Rutherford adds that it has embarked on a major recruitment drive to not only lure the best skills in the industry, but also to ensure it attracts talented black graduates and professionals interested in a career in construction. “My goal is to deliver a black-owned and operated civils division.”

This forms part of Motheo’s longer-term goal of becoming one of the biggest black-owned construction groups in the country. “The idea is for us to ultimately compete in the same arena as the other major listed companies. We want to become a significant player,” Rutherford elaborates.

Commenting on the current state of the construction industry, Rutherford notes that while project awards seem to be slow, he remains optimistic that the government will deliver on its promise to be more efficient and to spend its budget in the construction sector effectively.

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