One of the largest black-owned construction companies in SA, Enza Construction, is a wholly owned subsidiary of Crowie Holdings.
The firm was established in 2003 as construction opportunities were being created within the group. Its roots are in a construction firm, Crowie Builders, which was founded in 1971 by Barry Crowie.
Barry Crowie's sons, Rowan and Clinton, joined the company as trainees in 1990 and later formed Crowie Projects, which ultimately led to the formation of Crowie Holdings.
Employing just two people initially and focusing on relatively small projects almost exclusively for sister company Crowie Projects, Enza Construction has grown exponentially.
The company has experienced rapid organic growth with average year-on-year growth in turnover of about 180%. At the same time it has developed significant internal capacity with external work making up more than half its current turnover. In 2006 the company opened an office in Durban, which has also contributed to its growth.
To date the company has worked on commercial, retail, industrial, institutional accommodation, refurbishments and residential projects. In the past two years it also became involved in joint ventures with other construction companies. "One of the major benefits of being a BEE company is that traditional construction companies require sound BEE partners for many of their larger projects. These joint ventures have contributed significantly to our turnover," says MD Hugh Moffat.
"We've grown from a small construction company (with R10m revenue in 2005) to a medium-sized entity. Our strategic initiative is to structure the company in such a way that we can grow to become a larger player as well as play a more meaningful role in any future joint ventures." This year the company will turn over R350m and Moffat's intention is to grow this figure to R1,5bn by 2013. The company is projected to turn over R500m in 2010.
There is no doubt that the recession has had an effect on Enza Construction. A number of projects, particularly in the private sector, have been put on hold as developers find it increasingly difficult to find finance. Moffat, however, is confident of the prospects.
The company boasts a CIDB (Construction Industry Development Board) rating of 8GB PE, an achievement of which Moffat is justifiably proud. "However, the barriers to improving that rating are extremely challenging."
The company's BEE credentials are both a benefit and a challenge, he says. Enza Construction's BEE rating a level 3 BBBEE contributor - positions it well to benefit from public-sector work either directly or through joint ventures.
However, the challenge, according to Moffat, is that as a BEE entity, the company needs to overperform to counter negative perceptions. "There has regrettably been a fair amount of underdelivery in the SA construction industry within the BEE arena and there are those who expect us to fail," he says.
"However, we've built this company from the ground up and therefore we have the capability to pull our weight on even the very large projects. We don't participate in joint ventures for a free ride but are focused on adding value and participating as a meaningful partner. Our strategic intention is always to over-achieve and exceed expectations."
He is quick to argue that the company's BEE status is not its ticket to success. "We don't rely solely on our BEE credentials but instead believe that we have to develop the necessary expertise and resource capacity required to become a leading player in the construction industry."
Moffat says the firm's key criteria when employing people are competence and expertise. "What differentiates us from other construction companies is our people and we're fortunate to have a pool of highly skilled and experienced specialists."
He says the company is sufficiently geared for larger projects in the future in both the private and public sectors.
One of its projects is the Absa Towers West. Construction on the R1,1bn building is due for completion towards the end of 2010. The project consists of two 14-level office blocks joined by a link bridge across Marshall Street in central Jo'burg; a 13-level car park and a dedicated energy centre.
Transport modernised - A BRT bus station
Construction on the Bus Rapid Transit (BRT) project has been carried out by Enza Construction in a joint venture with Group Five. The R700m project, an initiative of the Johannesburg Development Agency, is due for completion in May 2010 and will result in the construction of 26 modern and fully automated bus stations throughout the greater and central Jo'burg area.
"The project has not been without its challenges," says Moffat. "Circumstances dictated that all the stations had to be built concurrently. Still, we are on target to achieve completion on deadline."
