1 st Presentation LARRY FEINBERG – EXECUTIVE DIRECTOR 2 nd Presentation DEON VERMEULEN – ASAQS VICE PRESIDENT / TR

1. PRESIDENTIAL CHAPTER TOUR 2013 1st Presentation LARRY FEINBERG – EXECUTIVE DIRECTOR 2nd Presentation DEON VERMEULEN – ASAQS VICE PRESIDENT / TREASURER 2012 3rd Presentation QINISANI MBATHA – ASAQS PRESIDENT 2012

2. 2012 AT A GLANCE ` • Voluntary Association Status with SACQSP regained • Financially successful and profitable ICEC 2012 World Congress professionally hosted in Durban which attracted 600 local and international delegates • Implementation of a completely new membership portal, database and website • Membership database information verification campaign completed • Marketing and advertising campaign in Engineering News magazine, website and news letter – suite of new adverts • Reinstatement of Property Development Course at UKZN is well on track towards being confirmed and course reinstated

3. 2012 AT A GLANCE (continued) • Tabularisation of Standard System complete – the updating of the content will commence in the next few weeks and will take approximately 12 to 18 months to complete • Continuous Professional Development (CPD) – policy framework to accredit courses is complete and will be given to the ASAQS Board and SACQSP for comment / approval • New guide to Elemental Estimating and Analysis for Building Works 2013 is complete and available on our website free for all members • Review of ASAQS bylaws and Constitution is currently being undertaken, and has substantially progressed. A complicated and intricate process • Hosting of ASAQS events online through membership portal • Online membership registration and payment `

4. PROJECTS DELIVERED DURING 2012 • The Creation of an online Web portal that allows our members to check and verify their personal details the Association has captured on itsdatabase – 24/7 from anywhere • Ability to pay online and view membership & document invoices 24/7 from anywhere • A database verification campaign – asking our members to use the web portalto verify their details • Each member who did not update their details using the web link was called by a call centre agent acting on the Associations behalf • Streamlining of all processes relating to the way in which membership datais captured, filed and / or archived • Overall enhancement of all internaladministration • Data filtration continuously tweaked and enhanced `

5. PROJECTS DELIVERED DURING 2012 (Continued) ` • All software upgraded (including financial software -Pastel) • Hardware was upgraded where necessary – including a new server • Bulk e-mailing • Streamlining of physical office infrastructure and office layout - complete

7. AVN REGISTERED ACCOUNTANTS • Since 2011 all of our bookkeeping functions at ASAQS have been independently outsourced to AVN Registered Accountants for strict oversight, allocation, collation and compilation of all accounting reports and oversight on all internal accounting functions. • Load and Release – AVN load invoices for payment and Exec Director releases payment • Reconciliation of the ASAQS bank accounts • Responsible for all allocations of payments from bank account to individual members accounts • VAT,PAYE and salaries • In collaboration with the Executive Director ensuring all internal management account security measures are in place and strictly adhered to • Reconciliation of all cash-upswhich are completed on a daily basis by staff and signed daily by the executive director • Reconciliation of any cash for banking, petty cash and cash slips (done periodically) • Stock taking – opening stock balances to closing stock on a monthly basis by reconciling invoice sales to receipts and back to closing stock levels `

8. JENNY RYGARD – Background • Outsourced temporary employee • Services engaged for a specific project from Only The Best Labour Brokers • Was given a debtors list and required to follow up outstanding payments • Worked on this specific project only • Simply asked to chase up outstanding invoices and provide AVN Registered Accountants with proof of payment once received in order for them to allocate the payment • If payment was already made by the member - to then provide our accountants with proof of payment in order for them to assign the payment from the ASAQS suspense account (payments that are deposited in our bank account without sufficient information for us to allocate to a member or firm are placed in this suspense account) `

9. REYGARD - ALLEGATIONS ` • The following allegations were expressed in an unauthorised email sent to random members, past presidents and current board members directly after Rygard was informed that the project had been completed • Payment allocations not being made to the correct account • Cash was not banked timeously and • Cash received was spent on unauthorised purchases • Cash receipts were not recorded accurately • Purchases of inventory were not recorded since 2010

10. EXCO INVESTIGATION • Immediate response by the President by way of letter to all members informing them that the allegations will be investigated • BDO Spencer Steward immediately engaged during the ASAQS audit process to investigate the validity of the accusations – the audit was due to coincidentally begin the following week • Only The Best (OTB) contacted and requested to consult with their employee and request evidence from their employee to support these serious allegations • Rygard confirmed attendance at this meeting at OTB but did not pitch • OTB conducted their own disciplinary hearing and the ASAQS informed of the outcome – dismissal • BDO Spencer Steward asked to compile a separate report from the audit upon completion of their audit `

11. BDO SPENCER STEWARD REPORT • Based on Rygards email – BDO themselves decided which areas of internal control were to be tested and reported upon • RECEIPTS (period 1 March 2012 to 28 February 2013) • “No discrepancies were noted throughout the sample” • DEPOSITS (period 1 March 2012 to 28 February 2013) • 1 allocation not done during February 2013 due to AVN not having an opportunity to do the allocation while focusing on the audit • “No further discrepancies were noted” • INVENTORY PURCHASE (period 1 March 2012 to 28 February 2013) • “all transactions were successfully traced to the relevant account, no discrepancies noted” • REPORT & FINDINGS – Full BDO report available online in ASAQS members section `

12. FRAUD INVESTIGATION ` • Criminal Case has been opened at Midrand Police Station and formal charges laid in April 2012 • Case moved between 3 different warrant officers until September 2012 – different subpoenas issued by different Warrant Officers and frustratingly never adequately enforced and chased up • Subpoena answered by FNB and information supplied • February 2013 – Private outsourced investigator engaged to case manage subpoenas and police investigation • Case moving swiftly • Chain of evidence being compiled and completed and paper trail being thoroughly followed • Completion envisaged within the next 3 – 6 months • Complete case and evidence to be handed to prosecutor

13. ASAQS STRATEGY ` To be the professional organization of choice for Quantity Surveyors.

14. PROJECTS FOR COMPLETION 2013 `

15. MEMBERSHIP CATEGORY STATISTICS AS AT 04 APRIL 2013

16. TOTAL ASAQS MEMBERSHIP BY CATEGORY `

17. MEMBERSHIP BY CHAPTER AND CATEGORY `

18. `

19. MEMBERSHIP GROWTH PER CATEGORY AND PROVINCE `

20. FINANCIAL REPORT FOR 2013 ASAQS PRESIDENT’S TOUR ` PRESENTATION BY DEON VERMEULEN – VICE PRESIDENT AND TREASURER ASAQS

21. FINANCIAL REPORT FOR 2013 ASAQS PRESIDENT’S TOUR • Status of Annual Financial Statements: • 2010: • Theron Naidoo signed Annual Financial Statements off on 15 March 2013. Their termination of appointment • was also effective from this date. • 2011 & 2012: • Draft financial statements were prepared by BDO. They will be able to officially sign these statements off, once • approval of their appointment is confirmed and lodged with their council in terms of their code of professional • conduct. • 2013: • BDO is busy with the audit of the 2013 AFS that will be completed towards the end of April 2013. • Notes regarding 2011 annual financial statements: • Renny Moodly’s employment ended September 2010 and the statements allows for corrections of fraudulent transactions (pg. 20).

22. 2012 / 2013 ACTUAL INCOME vs. BUDGET Notes: 65% of our income is based on membership fees etc.

23. 2012 / 2013 ACTUAL INCOME vs. BUDGET • Notes: ICEC 2012 netted R293 658,72 of income not budgeted for. • The increase in membership fees is for Invoiced income.

24. 2012 / 2013 EXPENSES BUDGET • Notes: • Research & development 7% (low) • Fraud case 7% (carry over) • SACQSP VAT 5% (once off)

25. 2012 / 2013 ACTUAL EXPENSES vs. BUDGET • Notes: • Fraud case budget to stay as is. • Research & development As well as Capital Expenditure activities must increase in the following financial years.

26. ASAQS BANK BALANCES

27. Presentation by Qinisani Mbatha PRESIDENT ASAQS - 2012

28. PRESIDENTIAL TOUR 2013 INDUSTRY UPDATE - Underdeveloped INFRASTRUTURE DEVELOPMENT – Partially developed WHAT DO WE UNDERSTAND – Underdeveloped STRATEGIC OBJECTIVES AND KEY DRIVERS – Done! MILESTONE ACHIEVEMENT” – to be listed on a slide as follows: Successful hosting of the ICEC Congress - Done Reinstatement of ASAQS as voluntary body of council Review of the bylaws and standard system Representation to the Construction Sector University of Natal Business Planning in November 2012 MOU WITH NHBRC Feature article to Engineering News and Architect Magazine CCN Update FUTURE QS OPPORTUNITIES - the green factory – how much of it do we really know!

29. INDUSTRY INSIGHT Construction Growth VS the rest of SA Economy: Source SARB & BER Construction Industry in general performed reasonably well until the forth quarter of 2012 dropping by 0.2% and overall recording a Year on Year growth of 2.5% for the period of 2012, a noticeable drop as compared to the previous years. Fixed investment growth slightly accelerated in 2012 but still performed poorly when compared to an average of approx. 7.5% maintained from 2002 up to 2012 and recorded a real gross fixed capital formation (private business enterprises, public corporations, general government) of approx. 5.7% (almost similar to the GDP record of 5.8%): source SARB. Albeit such activity, investment in transport equipment surged with a mild recovery in building and construction however private building sector remains under pressure for a number of reasons: Tight lending criteria by the financial institutions The commercial risk by the developers Willingness to negotiate and commit to long leases by the Nationals and/or Anchor Tenants

30. INDUSTRY INSIGHT Truth be told, the public sector in the past period somehow remained supportive of the construction sector as a whole with a reported BER “Civil confidence index” gradually increasing above the high of 40% mark and evidently from a “Residential business confidence” recording an approx. low of 32% coupled with a “Non residential business confidence” which recorded an all time low of approx. 20%. In the language that we all understand, this presents a further tightening period for the construction companies profit margins and a very competitive time for the rest of the market, equally so with our service offering hence these ridiculous discounts recorded. If the building activity doesn't improve at an expected rate, Growth in this sector will remain under pressure Competitions will remain stiff for both services and construction companies

31. INFRASTRUCTURE GROWTH Still a target market? • POLITICAL LANDSCAPE • Service delivery protest • Mangaung Policy Conference • 2014 Elections • Future work procurement - • PRASA – How many of you are in this space??????? • TRANSNET - How many of you are in this space ?????? • ESKOM – How many of you are in this space?????? • SOCIAL INFRASTRUCTURE – School, Dams, Hospitals – How many of you are in this space ????????

32. INFRASTRUCTURE GROWTH – IN BRIEF!!! • Budgeted spending for public-sector infrastructure totals R827 billion over the next three years. A much larger set of projects is under consideration over the longer term. • Decisions on which projects to implement will be guided by the National Development Plan (NDP), accompanied by thorough assessments of feasibility and value for money. • The first of two new large, coal-fired power plants will begin producing electricity in 2014, significantly easing the country’s power constraints. • Transnet’s pipeline, rail and port investments will gain further impetus in 2013. • Construction and upgrading of dams, water transfer schemes, schools, hospitals, clinics and housing are under way. Government has a range of initiatives in place to address identified shortcomings in infrastructure planning and project management.

33. INFRASTRUCTURE GROWTH Still a target market? 22.86% 2.69% 3.15% 8.16% 92% spend

34. NATIONAL DEVELOPMENT PLAN “NDP” • Opening the path to stronger economic growth requires that identified barriers to growth be addressed. The NDP emphasises the importance of: • Rebuilding confidence and encouraging private investment through establishing policy and regulatory certainty, maintaining fiscal credibility and demonstrating effective public service delivery. • Addressing the country’s distorted spatial legacy through urban planning and public transport policies that reduce the cost and time of travel to work, and improve the quality of life by lowering living costs. • Lowering the costs of doing business to improve competitiveness, including actions to reduce regulatory burdens, and promote entrepreneurship and small business. • Strong regional growth, with opportunities for firms with expertise in mining, construction, retail and finance, and manufactured exports. • Removing bottlenecks in economic and social infrastructure. • Implementing labour activation policies that get young people into employment and onto career paths

35. WHAT DO WE REALLY UNDERSTAND ABOUT OUR BUSINESS? • Is this business growing, have we set realistic targets for growth and implemented in past 3 - 4 Years? • Is our service offering still relevant to our existing clientele or we are just coasting along our past glory which will land us to an untimely death - statistic ? Do we understand the economic and political landscape within which we procure our work ? Is our service offering still relevant to our existing clientele or we are simple coasting along our past glory which will land us to an untimely death? Are we visible and well disposed to all sectors of our economy i.e. Engineering and Infrastructure projects? • Does our back of house “systems and procedures” still adequate to support the business and service offering • What is the role that should be played, if at all required, by retired practitioners in assisting with validation of existing skill set whilst we pursue growth and diversification of service offering?

36. THE CHALLENGE THAT LIES AHEAD • SA Rating by International Rating Agency • Uncertainty about the financing of private and public projects • Unchallenged corruption and fraud and political interference in awarding tenders) • Communication barriers • Competitions Commission and Government’s reluctance in paying gazetted Fees • Matrix of responsibility amongst different built environment professions in project delivery • Continued political instability • Colonial pact • Quality of basic education “Sister Engie Motsheka” • Education and training post tertiary education • Poor Mentorship in PrQS Firms • QS’s willing to join the state organs • Transfer of skills and mutual recognition of transformation • Tender rigging and the bureaucracy in supply chain management • Lack of emphasis on local procurement • Standardization of form of contract • Inconsistency with procurement of services contracts and more emphasis on “price” instead of “functionality” • Late payment which impact negatively on cash flow • Poor design and specification

37. STRATEGIC OBJECTIVES & KEY DRIVERS

43. MILESTONE ACHIEVEMENT 2012/13 • Successful hosting of the ICEC Congress • Reinstatement of ASAQS as voluntary body of council • Review of the bylaws and standard system • Representation to the Construction Sector • Participation with CBE and Construction SETA in resuscitating the QS Programme at the University of KwaZulu Natal • Business Strategy Planning in November 2012 • Signing MOU With NHBRC • On going articles to Engineering News and Architect & Specification Magazine

44. QS FUTURE OPPORTUNITIES • Review of JBCC for Turn Key Contract • Closer ties with the Municipal Engineering Council • Cross Boarder “Rest of Africa” Infrastructure Programmes • Diversification of the core QS service • Green Building Technology “Lets be the first to be consulted”!!! • Closer ties with National Treasury Department • Development finance institutions are expected to maintain financial sustainability, and care has to be taken to balance sustainable lending and non-revenue-generating activities. Over the next three years, these institutions will concentrate on financing infrastructure and industrial development, low-cost housing, rural development and land reform, small business growth and black economic empowerment enterprises, and regional development. • Government's debt management strategies will ensure that the borrowing requirement is financed at the lowest possible cost, while minimising repayment risk. The strategy complements the fiscal guidelines, which emphasise long-term debt sustainability. Government will continue to support state-owned companies and, through prudent financial oversight, ensure that they remain financially sound and contribute to the rollout of economic infrastructure.

45. WHAT IF MONEY WAS NO OBJECT – WHAT WOULD YOU DO BY ALAN WATTS