Founder Erold Brown’s vision for Amoya Building Projects has
always been to create a successful, hands-on company. Exec Digital
learns how it is overcoming the current economic challenges
By Ellie Duncan
Amoya Building Projects promises its clients an energetic, hands-on approach to providing development and construction solutions. Its one-stop service, from
development concept to construction, has seen the company secure a range of projects for some of the biggest companies in South Africa.
Erold Brown, Founder and Managing Director of Amoya, started the business in 1998. His background in the industry has been key to the company’s ongoing success. But what did he set out to achieve over 10 years ago and has he done it?
“To become a successful construction company,” Brown says. “I never wanted to get too big but to become a medium-sized construction company.
“What was important to me was to always be in control of everything. I wanted to be hands-on and in control, which I still am.”
Industry experience
The foundations of his career in the building industry were laid at Grinaker Construction, “one of the best construction companies in South Africa”, according to Brown. “I was with them 11 years before I left and I gained a huge amount of experience with Grinaker,” he explains. “In construction, you learn everyday, but my basis was very strong.
“You find that a lot of our competitors leave university, and they work for a company one or two years and they go on their own with no experience - they never really gain that proper experience.”
Thanks to Brown’s expertise and knowledge of the industry, Amoya now relies on word of mouth to secure development projects with clients. Over the years, the firm has built up relationships with a number of long-term clients who will always turn to
the company for their construction needs.
Working mainly in the Gauteng region, Brown has plans for expansion. “We want to open an office in Durban,” he explains. “We started talking to clients in Durban and once we land the first contract, we’re going to open an office – hopefully it will still happen this year.”
Although the recession has had a huge impact on the industry in South Africa, and on Amoya, work has not yet ground to a halt. While Brown insists that the company’s forte is warehouse office blocks, its expertise has recently extended to include hospitals.
Amoya is currently working on the development of a R42 million, four-storey hospital which should take it through until the end of the year. It has also developed Kendon Medical Clinic in Marlboro, Frikkie Potgieter Eye Clinic in Pretoria, Johannesburg
Eye Clinic in Northcliff and Legae Paediatric Unit in Shoshanguwe.
Beating off competition
“We always advise our clients, before they award us an order, to get some other prices to give them peace of mind,” Brown explains. “Our pricing’s very good and we seldom get beaten. Therefore, we tell our clients to go and get three or four other quotations – that’s how we establish a happy working relationship.”
Such confidence in his company’s capabilities has landed Amoya with several contracts for Nissan Motor Sport SA. The first project the company worked with the car maker on was a fast-tract project a couple of years ago. Worth about R10 million, Amoya had only six weeks to complete a workshop for Nissan Motor Sport, which was about to compete in the Dakar rally.
“We physically worked day and night, seven days a week,” says Brown. “We made it, we
finished in time and, subsequent to that project, they started giving us all their upgrading of plants, and labs and offices.”
However, Brown admits that Amoya is beginning to feel the pinch as a result of the
economic downturn as projects dry up.
So how has the company been impacted?
“Very severely,” he replies. “We’ve lost probably about R300 million of work in the last year.”
Brown adds that for the first time he can remember in all his years in the industry, construction companies are now looking for work.
“I’ve been fortunate to always have work on my table or falling into my lap,” he admits. “So for the first time now I’m actually searching the markets and
testing the waters.” Ever the optimist though, Brown is determined that within a couple of months, Amoya will have more projects to keep it busy. Judging by its track record, there is no reason why not.
“The forecast is that things should start changing mid-next year, mid-2010,” he adds. “Up to then it’s not going to be happy days – it’s going to be a fight to survive.”