SECTION A

• INTRODUCTION

Schoombie Hartmann wishes to express its gratitude to for affording us the opportunity to present this Consultant Proposal to facilitate possible involvement in your project to all’s mutual benefit.

We have chosen to present our proposal as follows:

� Profile and services offered by Schoombie Hartmann

� Conclusion

We will provide any additional information requested and make ourselves available for any further discussions.

SECTION B

• PRACTICE PROFILE

Schoombie Hartmann offers a comprehensive quantity surveying, project management and construction cost consultancy service, all in accordance with the South African Quantity Surveyors Act (Act No 49 of 2000) and conforming to the high ethical standards associated with the profession. The main focus of activities in the practice is the ultimate satisfaction of our Clients' needs through pro-active, creative and innovative services. Hence our record of repeat business and long term relations with our Clients. Schoombie Hartmann has five office locations in South Africa, namely:

NELSPRUIT

8 Staff members

NEW CASTLE

2 Staff members

DURBAN

7 Staff members

PRETORIA 3 Staff members

JOHANNESBURG

23 Staff members

Our services offered include the following:

� Viability Studies

� Cost Estimating � Financial Design Criteria Advice

� Procurement and Delivery

� Cost Control and Reporting � Contract Administration

� Payment Recommendations and Settlement of Final Accounts

� Dispute Resolution

� Value Engineering

� Life Cycle Costing

� Project Management

� Integrated national base of expertise coupled with a wide national geographical

spread of offices and infrastructure

• COST MANAGEMENT SYSTEM

Our Cost Management System enables the Estimated Final Cost of a project to be kept up-to-date by means of a structured and disciplined procedure of raising, at the earliest possible stage, any potential cost change and bringing it to the attention of the Client and Design Team. This procedure will enable the Design Team to manage the cost and will assist the Client to control his expenditure.

The Cost Reporting programs are designed to provide simple standard formats comparing forecast cost against agreed budget with the facility to provide additional and supplemental information for use by the Cost Manager and Design Team. The reporting formats include a list of advance warning items and unapproved items which are under consideration. If required, these can be produced on demand and published more frequently than the issue of the periodic Cost Report to enable their use in the Cost Management process.

The method of operating the System and the resources necessary will depend on a number of factors, inter alia:- * Level of active cost management and control exercised by the Client or his

representatives.

* Frequency of cost management/control meetings.

* Level of active cost management exercised by the Design Team.

* Scope of cost management required under the terms of our appointment.

• PROJECT CASH FLOW SYSTEM

Project Cashflow System (PCS) is based on the standard DHSS "S" curve and an activity based costing schedule and provides a range of alternative graphic and numeric presentations. The shape of the curve may be varied to reflect specific programme requirements of individual activities

PCS allows users to enter actual monthly payments at any stage of the project. This

provides a revised cashflow incorporating current valuation payments, and can also produce a graphical comparison of actual payments with the initial forecast.

In addition, PCS allows the insertion of separate lump sums, in any month required, and an advanced inflation system, allowing the inclusion of annual inflation, with the facility for different rates of inflation over each year of the contract, and in the years leading up to the start of construction.

• MANAGING RISKS IN CONSTRUCTION

All projects contain risks that may affect cost and time. Risk management is the identification of these risks and their statistical analysis, followed by the formulation of an action plan to manage and control them throughout the life of the project.

Construction is a risky business and risk management will provide many benefits to a client including:

* a structured, practical approach to managing risks; * an increased understanding of the project; * a more pro-active management approach; * a process which provides the one thing clients are demanding more now than

ever - greater confidence in achieving their project objectives of cost, time and quality;

* a process which will lead to improved value for money; and * a process which is, and should be, auditable.

Risk management also provides:

* increased commitment to the project from the design team as they are more involved in problem solving:-

* a more realistic contingency provision which can be actively managed to reduce risk throughout the life of the project; and

* enables you to give greater degree of certainty in achieving the targets set by the client and to control the project more efficiently and effectively.

Any action taken to mitigate risks must be monitored to ensure it is having the desired

effect and to enable remedial action to be taken if necessary. Risks may be identified at any time during the project and should be classified, actioned and monitored accordingly.

Risk management is a continual process which can be implemented at almost any stage during a project, from inception to occupation. However, its effectiveness tends to

diminish with time. It is therefore imperative that we are able to introduce risk management during the initial stages of a project.

• PROJECT MANAGER/QUANTITY SURVEYOR INTERFACE

To execute and enforce proper discipline and management of all parties SH will assist the PM/Architect by providing the following on a regular basis:

General

� Assess compensation events in an unblinkered manner by "thinkers" rather than

"bean counters" to ascertain a commercial settlement in the interests of the Client and the Contractor.

� Consider ways to improve efficiency of the project. � Consider financial position of the project and methods to improve the position, � Provide guidelines to all parties to pre-empt any contractual disputes which may occur. � Establish lines of communication and define delegated authorities pertaining to variations, changes, etc.

Cost information

Apportion project finance detailed in the bill of quantities to the programme on a percentage basis thus achieving a monetary value for every activity in the programme.

� Monitor effect of any Architect’s Instructions timeously.

� Analyse costs to ensure design is within commercial norms.

� Analysis of claims due to delays and negotiations in respect of any proposed acceleration costs.

� Determination of values and fee compensation for consultants relative to extent of design responsibility and changes.

� Determination of values of defective work.

� Schedule information required dates for preparation of procurement documentation for sub-contracts.

• QUALITY MANAGEMENT SYSTEM/QC AND INSPECTION

In September 1995 Gardiner & Theobald our international associated partners introduced their Quality Assurance Practice manual incorporating the following project controls and procedures:

A - General administration B - Cost estimating C - Construction procurement D - Preparation of tender documentation E - Tendering and reporting on tenders F - Negotiating tenders G - Preparation of contract documents H - Construction cost management I - Interim valuations J - Final accounts K - Construction disputes L - Reinstatement insurance valuations M - Insolvency N - Technical audits O - Construction research P - Value management Q - Capital allowances R - Risk analysis and management S - Life cycle costing T - Project management

They have implemented and been accredited the ISO 9000 Quality System which accreditation includes being annually audited by Lloyds of London.

Schoombie Hartmann is in the process of updating and adapting our own standard manuals by incorporating the above procedures with the aim of applying for an ISO 9000 accreditation in the near future.

• DESIGN QUALITY

Design quality is not applicable to Quantity Surveying per se but rather "Procedure/Documentation" quality is more descriptive.

Quality has a number of different meanings. In our case it is the service provided designed and constructed to satisfy the client’s needs.

Schoombie Hartmann is committed to the basic discipline of specifying and adapting procedures and documentation to suit the clients requirements.

The following quality assurance procedures are addressed within our business approach and is applicable on all projects:

� Management responsibility, accountability and accessibility.

� Internal auditing of any documentation and correspondence

� Inspection and checking � Corrective action control.

� Personnel training.

� Project planning. � Development and management procedures.

� Quality system review.

� Updated current and relative library of catalogues, techniques, materials, contractor and sub-contractor information.

• ADDED VALUE INITIATIVES

Schoombie Hartmann is registered as a member organization with the Green Building Council of South Africa. Johan Havenga and Brett Rheeder, both professional Quantity Surveyors, attained their certification as GBCSA accredited professionals, and have since been involved with the construction of two 4 Star Rated Green buildings, namely the new head office of Alexander Forbes in Sandton and 20 Eastgate Office Park.

• TECHNOLOGY AND PROJECT TOOLS

Schoombie Hartmann has a comprehensive database of electronic resources, including the latest technological advances in construction cost estimating, bill production and computer software. We make use of state of the art measuring instruments, which ensures that the product and level of service we deliver is both efficient and accurate.

SECTION C – LIST OF MAJOR PROJECTS

The following is an abbreviated list of projects the Gauteng offices of the company have recently been involved with:

PROJECT DESCRIPTION VALUE

BMW Headquarters - Midrand R81 million

Golden Walk Offices - Germiston R148 million

Epsom Downs Shop & Office Development R92 million

Golden Walk Shopping Centre R215 million

Hampton Park Offices - Sandton R72 million

Armscor Head Office - Pretoria* R250 million

Menlyn Motor City - Pretoria R102 million

Kempton Park Civic Centre, Kempton Park R141 million

Blackheath Shopping Centre R35 million

Empire Road Offices - Johannesburg R43 million

The Forum Office Development - Sandton R125 million

Blackheath Offices R25 million

City Deep Industrial Park R28 million

Potchefstroom Shopping Centre and H & R R35 million

Berea Shopping Centre Phase 1 - Pretoria R32 million

Strydompark Factories R39 million

BMW Paint Shop R105 million

Imperial Offices - Bedfordview R12 million

Technikon S.A.* R248 million

Diepkloof Police Station - Soweto* R25 million

Leeuwkop Prison Housing - Sandton* R25 million

Sheritan Hotel – Pretoria R105 million

Melrose Arch Offices R115 million

Monash University R75 million

Lanseria Airport R50 million

Sasol Fine Ash Dam – Secunda R60 million

Renault – Fourways R30 million

Pegasus Tiles for Ceramic Industries R160 million

Sasol Secunda – Rehabilitation of Black Products R20 million

Premises for Consul XPRS R20 million

Sasol Secunda – Sulpholin Storage and Disposal Dam R15 million

Midridge Shopping Centre R35 million

Midridge Residential R105 million

Nestlé Offices Fourways R15 million

New Warehouse for Kenwood - Maraisburg R20 million

New Head Office for Group Five R25 million

Mr Price / City Couriers - Durban R70 million

Extensions at LG Electronics R20 million

Nashua Head Office – Woodmead R35 million

Alterations and Additions to Office Blocks for DST Realty (SA) (Pty) Ltd

R8 million

Honda Midrand R16 million

Kuehne & Nagel – Longmeadow R10 million

Alterations and Additions to Office Blocks Girton Road Parktown, Phase I

R60 million

Alterations and Additions to Office Blocks Girton Road Parktown, Phase II

R100 million

22 Fredman Drive – Sandton R120 million

Houghton Estate R120 million

New Offices for Kentz – Midrand R15 million

New Holland / Booksite – Cape Town R25 million

City Couriers – Cape Town R30 million

New Head Office for Softline R200 million

New Head Office for GMSA – Woodmead R40 million

New Warehouse and Offices for Aberdare Cables R30 million

New Teaching Block for St John’s College R60 million

Sandton Court R105 million

New Head Office for Motorola – Woodmead R40 million

New Premises for Oracle – Woodmead R38 million

BMW Dealership, Benfleur – Witbank R25 million

New Premises for Faritec – Gallo Manor R40 million

New Offices for Gijima AST – Midrand R105 million

No 3 Sandown Valley Crescent R105 million

Nicol Grove Business Park Offices R100 million

New Offices for Bateman R152 million

Office Development at 1 Protea Place, Sandton R203 million

Massmart Warehouse – Durban R176 million

Adcock Ingram Warehouse – Durban R44 million

Glaxo Smith Kline – Cape Town R20 million

City Couriers – Centurion R42 million

Discovery Health Call Centre – Durban R53 million

Kevro Warehouse – Durban R21 million

Midas Warehouse – Durban R30 million

ABB Warehouse – Durban R10 million

IHD Warehouse – Durban R48 million

IHD Warehouse – Cape Town R48 million

Fuel Group Warehouse – Durban R60 million

Schenker Warehouse – Durban R25 million

AGI Warehouse – Durban R25 million

Parmalat Warehouse – Durban R18 million

Corlett Drive Offices R55 million

Waltons – Durban R39 million

Route 21 Offices – Centurion R45 million

Crown Extension – Cape Town R21.5 million

Silk by Design – Durban R3 million

Office Development at 15 Alice Lane Towers - Sandton R400 million

Rand Refinery R70 million

No 3 Protea Place - Sandton R50 million

15 Alice Lane Phase 4 - Sandton R180 million

140 West Street - Sandton R700 million

New Mosque for Waterfall Investment Co R80 million

IPHC Phase I – Cape Town R4 million

National Socket Screws – Elandsfontein R25 million

New Premises for Reunert Erand Gardens - Midrand R20 million

New Highveld Eye Hospital - Witbank R40 million

New Super Centre for FL-Smidth - Delmas R50 million

Alterations and Additions to Stanlib – Melrose Arch R20 million

Proposed New Premises for Hetzner Samrand R50 million

Under Cover Bowling Facility for St John’s College R3 million

New Office Development at 115 West Street - Sandton R700 million

Alterations and Additions to Existing Offices at Eastgate 20 R42 million

New Offices at 22 Wellington Road R91 million

Brandhouse Extensions Elandsfontein R85 million

New Premises for Jacaranda 94.2 R23 million

New Warehouse for Freightmax Wadeville R35 million

New Warehouse for Freightmax Durban R15 million

New Warehouse for Triton Cape Town R23 million

New Warehouse for Triton Durban R45 million

Proposed Rietfontein Warehouse R70 million

Lithotech Afric Mail R65 million

Bryanston Office Park R200 million

Brolink Giflo Investment R30 million

New Warehouse for Goldfields - Pinetown R35 million

Schenker Warehouse Durban R100 million

Decofurn, Mount Edgecombe R60 million

Altech Head Office R30 million

The Advocates, 1 Protea Place R20 million

Dulux Greenstone R28 million

Alterations & Additions to Warehouse – Bridgestone R25 million

Alterations & Additions - Total SA HQ Rosebank R100 million

Spar Lanseria R200 million

New Offices for Empowered Spaces Architects R15 million

Lewje La Metsi R10 million

New Workshop and Offices for FL-Smidth Ferrobank R35 million

New Gymnasium for St John’s College R12 million

New Prep-Preparatory School for St John’s College R45 million

David Webster Residence at Wits University R70 million

New Cosmo Business Park Warehouse for Q-Rent R20 million

Bytes Conversion for Adcock Ingram R10 million

OUPSA, Cape Town R28 million

Danone, Bryanston Place R10 million

Cummins, Johannesburg R71 million

� CLIENT LIST

The following is a selected list of major clients to whom the firm has rendered Quantity Surveying and allied services: Abaco Federale Volksbeleggings

Abland Federated Insurance Company Absa First National Bank Aegis Insurance Foundation of Community Dev in SA Agrimed Frasers Group All Provincial Authorities Garages & Services Stations – Various All Government Departments Gencor Anglo American Corporation Gold Division Services (AAC) Anglovaal Hans Merenski Armscor/Denel Holiday Inns Baker Street Associates Homes Trust Funeral Services Bank of Transkei Hyperama Basil Read Developments Hyprop Bastion Independent Development Trust BMW South Africa Irvin & Johnson Border Cricket Board Iscor Border Technikon Kempton Park Town Council Bosch Group Koos Smith Properties Boulton Lapalala Bridgeport Properties Lesotho Government Bristol-Myers Squibb Lewis Stores Butterworth Technikon Lifegro Caltex MacKenzie Group Churches – Various Mastermind Tobacco Ciskei Technikon Megatek Comair Mercedes Benz South Africa Credit Guarantee Insurance Company Metropolitan Life Denis Stores Properties Mines – Various Development Bank of South Afrida Midrand Town Council Devprop Projects M-Net DST Realty (SA) (Pty) Ltd Multichoice Durban Falkirk Momentum Life East London Technical College Municipalities – Various EP Building Society Murray & Roberts Properties Engen National Batteries Engineering Foundation of South Africa Eskom

CLIENT LIST CONTINUED

National Parks Board Tartan Properties Nictus Group Technikon OFS OK Bazaars Technikon SA Old Mutual Technikon Witwatersrand PCN Projects Tek Corporation PBC Properties The Shopz Group Pick ‘n Pay Town Councils – Various Presmed Transnet Prima Bank Trek Petroleum Proctor & Gamble Trident Building Society Projection Projects Trust Bank Prosperity Insurance Company Umtata Club Retail Property Projects University of Fort Hare Rhobeta Developments University of the Orange Free State Rhodes University University of Transkei Rosebank Hospital Univeristy of Western Cape Royal Durban Gold Club University of Zululand Saambou National Building Society University of Pretoria SABS Vaal Reefs Exploration and Mining Co. Sage Group Volkskas Bank Sanlam Properties Weirs Cash & Carry Sasol Welgedacht Exploration Company Schools – Various Western Deep Levels Sentrale Landbougenootskap Westpoint Projects Shell Zenprop Property Holdings Shoprite/Checkers Shoredits Siemens Siltek Small Business Development Corporation South African Permanent Building Society Southern Life Association Southern Sun Hotel Spar Spoornet St Dominics Hospital Standard Bank Stellenbosch Farmers Winery Sun International Syfrets

SECTION D - CONCLUSION

� The professional origin of Schoombie Hartmann dictates that the absolute basis of any service we provide is driven by a desire and motivation to act in our Clients' best interests at all times. The management of projects requires a range of skills incorporating sensitive leadership, excellent communication abilities and above average professional capabilities, to be able to effectively operate within a

continuously changing South African political and social environment. Schoombie Hartmann is confident that it has the blend of skills required for successfully

meeting these challenges.