CITY OF MBOMBELA

NORTHERN NSIKAZI BULK WATER SCHEME: PHASE 1B Part T2: Returnable documents Tender No. 116/2018

CITY OF MBOMBELA

NORTHERN NSIKAZI BULK WATER SCHEME: PHASE 1B BID NUMBER: 116/2018

CLOSING DATE: 12 OCTOBER 2018 TIME: 11:00

Mbombela Local Municipality P.O. Box 45 1 Nel Street

Nelspruit 1200

Contact: Name: Peter Marota (Project Manager)

Telephone: 013 759 9241/9041

Email: [email protected]

Tenderer …………………………………………………………………………………………………..……………….

CIDB Registration Number:

……………………………………………………………………………………………………………………

.

Preferences claimed in Terms of Preferential Procurement Regulations 2011 B-BBEE Status Level Contribution as per Certificate

mailto:[email protected]


TABLE OF CONTENTS

Company Reference: Table A1 ............................................................................................ T2-17 Financial References: Table A2 ................................................................................................ T2-17 Price .......................................................................................................................................... T2-18 B-BBEE STATUS LEVEL OF CONTRIBUTION ......................................................................... T2-18

CERTIFICATION ........................................................................................................................ T2-22

MBD 6.1 ..................................................................................................................................... T2-23

PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2011 ................................................................................................................. T2-23

80/20 or 90/10........................................................................................................................ T2-25

DECLARATION OF BIDDER’S PAST SUPPLY CHAIN MANAGEMENT PRACTICES .............. T2-30

CONTRACT ................................................................................................................................... 41

Part C1: Agreement and Contract Data ........................................................................................ 42 C1.1 Letter of Tender and Contract Agreement ........................................................................ 42 C1.2 Contract Data ....................................................................................................................... 46 C1.3 Pro Forma Performance Guarantee ................................................................................... 49

Part C2: Pricing Data ..................................................................................................................... 58

Part C3: Scope of Works ............................................................................................................... 60 C3.1 Employer’s Requirements ............................................................................................. 60 C3.2 Procurement ................................................................................................................... 62 C3.3 Construction ................................................................................................................... 63 C3.4 Management .................................................................................................................... 67 C3.5 Health and Safety ........................................................................................................... 70 C3.6 Project Specification ...................................................................................................... 72

Part C4: Site Information ............................................................................................................... 74 C4.1 Locality Plan ......................................................................................................................... 75 C4.2 Project Drawings ................................................................................................................. 76

ANNEXURE A: ............................................................................................................................... 77

Project Programme ....................................................................................................................... 77

ANNEXURE B: ............................................................................................................................... 78

Extension of Time for Practical Completion of the Permanent Works ........................................ 78


TENDER NOTICE

CITY OF MBOMBELA

CLOSING DATE: 12 OCTOBER 2018 AT 11:00

TENDER NUMBER: 116/2018 CONSTRUCTION OF NORTHERN NSIKAZI BULK WATER SCHEME: PHASE 1B T1.1: TENDER NOTICE Bids are hereby invited from capable and experienced Contractors for the Construction of Northern Nsikazi Bulk Water Scheme: Phase 1B for City of Mbombela. It is compulsory that service providers download a copy of the bid document that will ONLY be available as from 10 September 2018 from the following link: www.etenders.gov.za free of charge. Duly completed bid documents and all returnable documents mentioned must be sealed in an envelope clearly marked “Bid No. 116/2018, Construction of Northern Nsikazi Bulk Water Scheme: Phase 1B for City of Mbombela” closing date 12 OCTOBER 2018 with the name of the bidder shall be placed in the bid box at CITY OF MBOMBELA (Civic Centre) at 1 Nel Street; Mbombela on or before 11:00pm on the closing date. Tenders will be opened in public. A compulsory briefing meeting with the Project Manager will take place at Nyongane Pump Station (25°02’50”S 31°11’45”E) on the 20 September 2018 at 10:00am. After the meeting prospective bidders will visit the site for further clarifications. Bids received by telegram, fax or e-mail will not be considered. Late bids shall not be accepted. The tenderer is required to submit with his tender an original valid Tax Clearance Certificate issued by the South African Revenue Services (Tax Clearance Number and SARS pin numbers), Certified Copies of Identity Documents of Company Directors not older than three months, Copies of Company Registration Documents, Certified Copy of BBBEE Certificate from accredited agencies or registered accountant. CIDB grading of 9CE on the day of the Evaluation. All certified copies must not be older than three months. A preferential point system shall apply where by this contract will be allocated to a bidder in accordance with the Preferential Procurement Policy Framework Act, act no. 5 of 2000 and as defined in the conditions of bid in the bid document, read in conjunction Preferential Procurement Regulations of 2017, where 90 points will be allocated in respect of price and 10 points in respect of B-BBEE status level of contribution. Procurement Enquiries: Mr. Christopher Nkambule Tel: 013 759 2358 Technical Enquiries: Mr. Peter Marota Tel: 013 759 9241/9041 [email protected]

NORTHERN NSIKAZI BULK WATER SCHEME: PHASE 1B Part T2: Returnable documents

Tender No. 116/2018 T2-4

City of Mbombela

NORTHERN NSIKAZI BULK WATER SCHEME: PHASE 1B

T2.1 List of Returnable Documents

The tenderer must complete the following returnable documents: 1 Returnable Schedules required only for tender evaluation purposes

Record of Addenda to Tender Documents

Compulsory Enterprise Questionnaire

Certificate of authority for joint ventures (where applicable)

Schedule of proposed Subcontractors

Schedule of Plant and Equipment

Schedule of the Tenderer’s Experience

Proposed Amendments and Qualifications

Competence achievement schedule

Authority of Signatory

Declaration of Interest (MBD 4)

Preference Points Claim Form in Terms of The Preferential Procurement Regulations 2011 (MBD 6.1)

Declaration of Bidder’s Past Supply Chain Management Practices (MBD 8)

Certificate of Independent Bid Determination (MBD 9) 2 Other documents required for tender evaluation purposes

Valid SARS pin to validate the Tax Status

Certified ID Copies of company shareholders (if not attached disqualified)

Certified copies of company registration documents (if not attached disqualified)

Certified copy of B-BBEE Certificate

Certificate of Contractor Registration issued by the Construction Industry Development Board (if invalid disqualified) Grade 9 CE

An original bank stamped Financial Bank Rating Code

Audited financial statements (not older than 2 financial years)

3 Returnable Schedules that will be incorporated into the contract

Copy of the Workmen’s Compensation Registration Certificate (or proof of payment of contributions in terms of the Compensation for Occupational Injuries and Diseases Act No. 130 of 1993)

Proof of registration for regional levies if a preference is claimed for being registered in the Mbombela Municipal boundaries

4 C1.1 Letter of Tender and Contract Agreement 5 C1.2 Contract Data (Part 2) 6 C2.2 Bills of quantities 7 Other documents that will be incorporated into the contract

None


Tender No. 116/2018 T2-5

Record of Addenda to tender documents

We confirm that the following communications received from the Employer before the submission of this tender offer, amending the tender documents, have been taken into account in this tender offer:

Date Title or Details

1.

2.

3.

4.

5.

6.

7.

8.

Attach additional pages if more space is required.

Signed

Date

Name

Position

Tenderer


Tender No. 116/2018 T2-6

Compulsory Enterprise Questionnaire

The following particulars must be furnished. In the case of a joint venture, separate enterprise questionnaires in respect of each partner must be completed and submitted.

Section 1: Name of enterprise: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . … . . . . . . . . . . . . . . . . . . .

Section 2: VAT registration number, if any: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 3: CIDB registration number, if any: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 4: Particulars of sole proprietors and partners in partnerships

Name* Identity number* Personal income tax number*

* Complete only if sole proprietor or partnership and attach separate page if more than 3 partners

Section 5: Particulars of companies and close corporations

Company registration number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Close corporation number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax reference number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 6: Record of service of the state

Indicate by marking the relevant boxes with a cross, if any sole proprietor, partner in a partnership or director, manager, principal shareholder or stakeholder in a company or close corporation is currently or has been within the last 12 months in the service of any of the following:

a member of any municipal council

a member of any provincial legislature

a member of the National Assembly or the National Council of Province

a member of the board of directors of any municipal entity

an official of any municipality or municipal entity

an employee of any provincial department, national or provincial public entity or constitutional institution within the meaning of the Public Finance Management Act, 1999 (Act 1 of 1999)

a member of an accounting authority of any national or provincial public entity

an employee of Parliament or a provincial legislature

If any of the above boxes are marked, disclose the following:

Name of sole proprietor, partner, director, manager, principal shareholder or stakeholder

Name of institution, public office, board or organ of state and position held

Status of service (tick appropriate column)

current Within last 12 months

*insert separate page if necessary


Tender No. 116/2018 T2-7

Section 7: Record of spouses, children and parents in the service of the state

Indicate by marking the relevant boxes with a cross, if any spouse, child or parent of a sole proprietor, partner in a partnership or director, manager, principal shareholder or stakeholder in a company or close corporation is currently or has been within the last 12 months been in the service of any of the following:

a member of any municipal council

a member of any provincial legislature

a member of the National Assembly or the National Council of Province

a member of the board of directors of any municipal entity

an official of any municipality or municipal entity

an employee of any provincial department, national or provincial public entity or constitutional institution within the meaning of the Public Finance Management Act, 1999 (Act 1 of 1999)

a member of an accounting authority of any national or provincial public entity

an employee of Parliament or a provincial legislature

Name of spouse, child or parent

Name of institution, public office, board or organ of state and position held

Status of service (tick appropriate column)

current Within last 12 months

*insert separate page if necessary

The undersigned, who warrants that he/she is duly authorised to do so on behalf of the enterprise: i) authorizes the Employer to obtain a tax clearance certificate from the South African Revenue Services that my /

our tax matters are in order; ii) confirms that the neither the name of the enterprise or the name of any partner, manager, director or other person,

who wholly or partly exercises, or may exercise, control over the enterprise appears on the Register of Tender Defaulters established in terms of the Prevention and Combating of Corrupt Activities Act of 2004;

iii) confirms that no partner, member, director or other person, who wholly or partly exercises, or may exercise, control over the enterprise appears, has within the last five years been convicted of fraud or corruption;

iv) confirms that I / we are not associated, linked or involved with any other tendering entities submitting tender offers and have no other relationship with any of the tenderers or those responsible for compiling the scope of work that could cause or be interpreted as a conflict of interest;

iv) Confirms that the contents of this questionnaire are within my personal knowledge and are to the best of my belief both true and correct.

Signed

Date

Name

Position

Enterprise name


Tender No. 116/2018 T2-8

Certificate of Authority for Joint Ventures

Please note: This Returnable Schedule is to be completed by joint ventures.

We, the undersigned, are submitting this tender offer in Joint Venture and hereby authorise Mr/Ms

_____________________________________________, authorised signatory of the company

_____________________________________________, acting in the capacity of lead partner, to sign all

documents in connection with the tender offer and any contract resulting from it on our behalf.

Resolutions of both JV Partners must be submitted separately, authorizing the signatory to sign this

document.

NAME OF FIRM ADDRESS DULY AUTHORISED

SIGNATORY

Lead partner

Signature _________________

Name _________________

Designation _________________

Signature _________________

Name _________________

Designation _________________

Signature _________________

Name _________________

Designation _________________

Signature _________________

Name _________________

Designation _________________


Tender No. 116/2018 T2-9

Schedule of Proposed Subcontractors

We notify you that it is our intention to employ the following Subcontractors for work in this contract.

If we are awarded a contract, we agree that this notification does not change the requirement for us to submit the names of proposed Subcontractors in accordance with requirements in the contract for such appointments. If there are no such requirements in the contract, then your written acceptance of this list shall be binding between us.

We confirm that all subcontractors who are contracted to construct a house are registered as home builders with the National Home Builders Registration Council.

Name and address of proposed Subcontractor

Nature and extent of work Previous experience with Subcontractor.

1.

2.

3.

4.

5.

Signed

Date

Name

Position

Tenderer


Tender No. 116/2018 T2-10

Schedule of Plant and Equipment

The following are lists of major items of relevant equipment that I/we presently own or lease and will have available for this contract or will acquire or hire for this contract if my/our tender is accepted. All equipment listed will be for the sole use of this contract. (a) Details of major equipment that is owned by and immediately available for this contract.

Quantity Description, size, capacity, etc.


(b) Details of major equipment that will be hired, or acquired for this contract if my/our tender is acceptable.

Quantity Description, size, capacity, etc.


Signed

Date

Name

Position

Tenderer


Tender No. 116/2018 T2-11

Schedule of the Tenderer’s Experience

The following is a statement of similar work successfully executed by myself/ourselves:

Employer, contact person and telephone number.

Description of contract Value of work inclusive of VAT (Rand)

Date completed

Signed

Date

Name

Position

Tenderer


Tender No. 116/2018 T2-12

Proposed amendments and qualifications

The Tenderer should record any deviations or qualifications he may wish to make to the tender documents in this Returnable Schedule. Alternatively, a tenderer may state such deviations and qualifications in a covering letter to his tender and reference such letter in this schedule. The Tenderer’s attention is drawn to clause F.3.8 of the Standard Conditions of Tender referenced in the Tender Data regarding the employer’s handling of material deviations and qualifications.

Page Clause or item Proposal

Signed

Date

Name

Position

Tenderer


Tender No. 116/2018 T2-13

COMPETENCE ACHIEVEMENT SCHEDULES Refer to F3.11, Method 4. The tenderer is required to score 80% (80 points) in table A1 – table A5 in order to avoid rejection of tender. Bidders must also score a minimum of 50 points on each category (i.e. each table) failure which will result in disqualification. TABLE A1: REPUTATION AND REFERENCES

No

TARGETED GOALS

In order to qualify for points scoring, prospective bidders should attach Certified Copies of Completion Certificates and certified copies of appointment letters for similar projects (Bulk Pipe Lines and Water Pump Stations) (council reserves the right to contact the clients for verification purposes in terms of quality of the works, the performances of the contract in relations to adherences to time frames and compliances to any conditions as laid down in the contract) appointment letter must be traceable.

NB, certified copies must not be older than three months

Bidders must submit at least a minimum of 5 references projects even if one appointment exceeds specified values.

TENDERED GOAL

POINTS CLAIMED BY TENDERER

ALLOCATED POINTS

1 Combined Completed projects Value last 5 years > R

130 Million 30.00

2 Combined Completed projects Value last 5 years > R

100 Million 10.00

3 Combined Completed projects Value last 5 years > R 80

Million 5.00

SUB-TOTAL: Reputation and References 30.00

NB: The maximum possible score that the bidder can achieve under table A1 is Ten (30 points. To score the maximum points a prospective bidder must have satisfied the requirements of table 1. Half points to be allocated for projects with appointment letter but without completion certificates.


Tender No. 116/2018 T2-14

TABLE A2: FINANCIAL REFERENCES

No TARGETED GOALS TENDERED

GOAL

POINTS CLAIMED BY TENDERER

ALLOCATED POINTS

Bank rating of “A” or better (Contractor to submit) 15.0

OR

Bank rating of “B” or better (Contractor to submit) 5.0

OR

Bank rating of “C” or better (Contractor to submit) 2.0

PLUS

3 Registered financial Institution’s full details as guarantor in the amount of 10% as specified for surety purposes shall be submitted. (Submit letter of intent) in line with FIDIC

5.0

SUB-TOTAL: Financial references 20.0

NB: The maximum possible score that the bidder can achieve under table A1 is 20 points. To score the maximum points a prospective bidder must have satisfied the requirements of table 2.


Tender No. 116/2018 T2-15

TABLE A3: CONSTRUCTION TEAM KEY PERSONNEL

No

TARGETED GOALS

Attach CV & Certified Copies of Qualifications

of nominated persons (Failure to submit both will result in zero points)

TENDERED GOAL

POINTS Claimed by

tenderer

ALLOCATED POINTS

1

Safety officer with SACPCM Registration under Health and

Safety Category (Failure to submit proof of registration will result in zero points Name: ……………………………………………………

4.00

2

Site Foreman has a minimum of Diploma in Civil

Engineering Related Qualification and a minimum of 5 – years’ experience in Civil Engineering Projects of similar nature (Bulk Water and Reticulation) Name: ……………………………………………………

3.00

3

Site Agent has a minimum of B-Tech in Civil Engineering

and a minimum of 5 – years’ experience in Civil Engineering Projects of similar nature (Bulk Water and Reticulation) Name: ……………………………………………………

4.00

4

Engineering Firm Experience has been in existing for a

minimum of 10 years. Experience on Bulk Water and Pump Stations. Provide detail company profile with proof of traceable appointment letters. It is mandatory that the Engineering Firm and individuals to belong to ECSA Firm Name: ……………………………………………………

4.00

SUB-TOTAL: Construction team key personnel 15.0


Tender No. 116/2018 T2-16

TABLE A4: PLANT AND EQUIPMENT

No TARGETED GOALS

(Plant and Equipment)

TENDERED GOAL

POINTS Claimed by

tenderer

ALLOCATED POINTS

1 Ownership of Excavator (attach proof of ownership , equipment must be registered in the company’s name to qualify for points or in the name of one of the director)

3.5

2 Ownership of a TLB minimum (attach proof of ownership , equipment must be registered in the company’s name to qualify for points or in the name of one of the director)

2.5

3

Ownership of a Tipper Truck Minimum capacity of 6m3 (attach proof of ownership , equipment must be registered in the company’s name to qualify for points or in the name of one of the director)

2.0

4 Ownership of a Water Cart (attach proof of ownership , equipment must be registered in the company’s name to qualify for points or in the name of one of the director)

2.0

SUB-TOTAL : Plant and Equipment 10.0

TABLE A5: METHOD APPROACH

No TARGETED GOALS

(Plant and Equipment)

TENDERED GOAL

POINTS Claimed by

tenderer

ALLOCATED POINTS

1 Approach maximum of 5 pages 5.00

2 Methodology maximum of 10 pages 10.00

3 Quality Control With ISO and SANS Accreditation 10.00

4 Social Development 5.00

SUB-TOTAL : Plant and Equipment 30.0


Tender No. 116/2018 T2-17

SUPPLY CHAIN POLICY USING 90/10 PREFERENCE POINT SYSTEM

PHYSICAL ADDRESS OF BUSINESS

……………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………… Signature: ……………………………………………………………………………………………………….. Name: ……………………………………………………………………………………………………….. Duly authorized to sign on behalf of ……………………………………………………………………………………………………………………. Telephone:…………………………………………………………………………………………………………… Fax: ………………………………………………………………………………………………………………… Date: ...…………………………………………………………………………………………………………….

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COMPANY REFERENCE: TABLE A1 30.00

FINANCIAL REFERENCES: TABLE A2 15.00

CONSTRUCTION TEAM KEY PERSONNEL: TABLE A3 15.00

PLANT AND EQUIPMENT: TABLE A4 10.00

METHODOLOGY AND APPROACH: TABLE A5 30.00

SUB TOTAL 100


Tender No. 116/2018 T2-18

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(90

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PRICE 90

SUB TOTAL 90

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B-BBEE STATUS LEVEL OF

CONTRIBUTION 10

SUB TOTAL 10

TOTAL 100

AUTHORITY FOR SIGNATORY

Details of person responsible for bid process

Name _____________________________________________________________________________

Tender number _____________________________________________________________________

Address of office submitting the bid ____________________________________________________

__________________________________________________________________________________

Telephone no. _________________________________________________________________

Fax no. ______________________________________________________________________

E-mail address _______________________________________________________________

Signatories for close corporations and companies shall confirm their authority by attaching to this form a

duly signed and dated original or certificated copy of the relevant resolution of their members of their board

of directors, as the case may be.

*By resolution of the board of directors passed on (date) ___________________________________

Mr / Ms___________________________________________________________________________


Tender No. 116/2018 T2-19

Has been duly authorized to sign all documents in connection with the Bid for Contract Number

________________________ and any Contract which may arise there from on behalf of

(BLOCK CAPITAL)____________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

SIGNED ON BEHALF OF THE

COMPANY___________________________________________________

IN HIS CAPACITY AS _____________________________________________

DATE _____________________________________________

FULL NAMES OF SIGNATORY _____________________________________________

AS WITNESSES 1 _____________________________________________

2 _____________________________________________


Tender No. 116/2018 T2-20

MBD 4

DECLARATION OF INTEREST

1. No bid will be accepted from persons in the service of the state. 2. Any person, having a kinship with persons in the service of the state, including a blood relationship,

may make an offer or offers in terms of this invitation to bid. In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons connected with or related to persons in service of the state, it is required that the bidder or their authorised representative declare their position in relation to the evaluating/adjudicating authority and/or take an oath declaring his/her interest.

3. In order to give effect to the above, the following questionnaire must be completed and submitted with the bid.

3.1 Full Name: ………………………………………………………………………… 3.2 Identity Number: ………………………………………………………………… 3.3 Company Registration Number: ………………………………………………… 3.4 Tax Reference Number: ………………………………………………………… 3.5 VAT Registration Number: ………………………………………………………

3.6 Are you presently in the service of the state YES / NO

3.6.1 If so, furnish particulars. ……………………………………………………………… ……………………………………………………………… 3.7 Have you been in the service of the state for the past YES / NO

twelve months? 3.7.1 If so, furnish particulars.

………………………………………………………………

MSCM Regulations: “in the service of the state” means to be – (a) A member of –

(i) any municipal council; (ii) any provincial legislature; or (iii) the national Assembly or the national Council of provinces;

(b) A member of the board of directors of any municipal entity; (c) An official of any municipality or municipal entity; (d) An employee of any national or provincial department, national or provincial public entity or constitutional

institution within the meaning of the Public Finance Management Act, 1999 (Act No.1 of 1999); (e) A member of the accounting authority of any national or provincial public entity; or (f) An employee of Parliament or a provincial legislature.


Tender No. 116/2018 T2-21

3.8 Do you, have any relationship (family, friend, other) with persons in the service of the state and who may be involved with the evaluation and or adjudication of this bid? YES / NO

MSCM Regulations: “in the service of the state” means to be –

(a) A member of – (i) any municipal council; (ii) any provincial legislature; or (iii) the national Assembly or the national Council of provinces;

(b) A member of the board of directors of any municipal entity; (c) An official of any municipality or municipal entity; (d) An employee of any national or provincial department, national or provincial public entity or constitutional institution with in the

meaning of the Public Finance Management Act, 1999 (Act No.1 of 1999); (e) A member of the accounting authority of any national or provincial public entity; or (f) An employee of Parliament or a provincial legislature.

3.8.1 If so, furnish particulars. ……………………………………………………………… ……………………………………………………………… 3.9 Are you, aware of any relationship (family, friend, other) between a bidder and any persons in the

service of the state who may be involved with the evaluation and or adjudication of this bid? YES / NO

3.9.1 If so, furnish particulars ……………………………………………………………. ……………………………………………………………. 3.10 Are any of the company’s directors, managers, principal YES / NO shareholders or stakeholders in service of the state? 3.10.1 If so, furnish particulars. ……………………………………………………………… ……………………………………………………………… 3.11 Are any spouse, child or parent of the company’s directors,

YES / NO

managers, principal shareholders or stakeholders in service of the state?

3.11.1 If so, furnish particulars. ……………………………………………………………… ………………………………………………………………


Tender No. 116/2018 T2-22

CERTIFICATION

I, THE UNDERSIGNED (NAME) ……………………………………………………………………………………………………………………………

CERTIFY THAT THE INFORMATION FURNISHED ON THIS DECLARATION FORM IS CORRECT. I ACCEPT THAT THE STATE MAY ACT AGAINST ME SHOULD THIS DECLARATION PROVE TO BE

FALSE.

………………………………….. …………………………………….. Signature Date …………………………………. ……………………………………………………………………………. Position Name of Bidder


Tender No. 116/2018 T2-23

MBD 6.1 PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2011

This preference form must form part of all bids invited. It contains general information and serves as a claim form for preference points for Broad-Based Black Economic Empowerment (B-BBEE) Status Level of Contribution NB: BEFORE COMPLETING THIS FORM, BIDDERS MUST STUDY THE GENERAL CONDITIONS,

DEFINITIONS AND DIRECTIVES APPLICABLE IN RESPECT OF B-BBEE, AS PRESCRIBED IN THE PREFERENTIAL PROCUREMENT REGULATIONS, 2011.

1. GENERAL CONDITIONS 1.1 The following preference point systems are applicable to all bids:

- the 80/20 system for requirements with a Rand value of up to R50 000 000 (all applicable taxes included); and

- the 90/10 system for requirements with a Rand value above R50 000 000 (all applicable taxes included).

1.2 The value of this bid is estimated to exceed R50 000 000 (all applicable taxes included) and

therefore the 90/10 system shall be applicable.

1.3 Preference points for this bid shall be awarded for:

(a) Price; and (b) B-BBEE Status Level of Contribution.

1.3.1 The maximum points for this bid are allocated as follows: POINTS

1.3.1.1 PRICE 90

1.3.1.2 B-BBEE STATUS LEVEL OF CONTRIBUTION 10

Total points for Price and B-BBEE must not exceed 100

1.4 Failure on the part of a bidder to fill in and/or to sign this form and submit a B-BBEE Verification

Certificate from a Verification Agency accredited by the South African Accreditation System (SANAS) or a Registered Auditor approved by the Independent Regulatory Board of Auditors (IRBA) or an Accounting Officer as contemplated in the Close Corporation Act (CCA) together with the bid, will be interpreted to mean that preference points for B-BBEE status level of contribution are not claimed.

1.5. The purchaser reserves the right to require of a bidder, either before a bid is adjudicated or at any

time subsequently, to substantiate any claim in regard to preferences, in any manner required by the purchaser.


Tender No. 116/2018 T2-24

2. DEFINITIONS 2.1 “all applicable taxes” includes value-added tax, pay as you earn, income tax, unemployment insurance

fund contributions and skills development levies;

2.2 “B-BBEE” means broad-based black economic empowerment as defined in section 1 of the Broad

-Based Black Economic Empowerment Act; 2.3 “B-BBEE status level of contributor” means the B-BBEE status received by a measured entity

based on its overall performance using the relevant scorecard contained in the Codes of Good Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act;

2.4 “bid” means a written offer in a prescribed or stipulated form in response to an invitation by an

organ of state for the provision of services, works or goods, through price quotations, advertised competitive bidding processes or proposals;

2.5 “Broad-Based Black Economic Empowerment Act” means the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003); 2.6 “comparative price” means the price after the factors of a non-firm price and all unconditional

discounts that can be utilized have been taken into consideration; 2.7 “consortium or joint venture” means an association of persons for the purpose of combining their

expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract; 2.8 “contract” means the agreement that results from the acceptance of a bid by an organ of state;

2.9 “EME” means any enterprise with an annual total revenue of R5 million or less . 2.10 “Firm price” means the price that is only subject to adjustments in accordance with the actual

increase or decrease resulting from the change, imposition, or abolition of customs or excise duty and any other duty, levy, or tax, which, in terms of the law or regulation, is binding on the contractor and demonstrably has an influence on the price of any supplies, or the rendering costs of any service, for the execution of the contract;

2.11 “functionality” means the measurement according to predetermined norms, as set out in the bid

documents, of a service or commodity that is designed to be practical and useful, working or operating, taking into account, among other factors, the quality, reliability, viability and durabi lity of

a service and the technical capacity and ability of a bidder; 2.12 “non-firm prices” means all prices other than “firm” prices;

2.13 “person” includes a juristic person;

2.14 “rand value” means the total estimated value of a contract in South African currency, calculated

at the time of bid invitations, and includes all applicable taxes and excise duties;

(a) 2.15 “sub-contract” means the primary contractor’s assigning, leasing, making out work to, or

employing, another person to support such primary contractor in the execution of part of a project in terms of the contract;


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2.16 “total revenue” bears the same meaning assigned to this expression in the Codes of Good

Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act and promulgated in the Government Gazette on 9 February 2007; 2.17 “trust” means the arrangement through which the property of one person is made over or

bequeathed to a trustee to administer such property for the benefit of another person; and 2.18 “trustee” means any person, including the founder of a trust, to whom property is bequeathed in

order for such property to be administered for the benefit of another person. 3. ADJUDICATION USING A POINT SYSTEM

3.1 The bidder obtaining the highest number of total points will be awarded the contract. 3.2 Preference points shall be calculated after prices have been brought to a comparative basis taking

into account all factors of non-firm prices and all unconditional discounts;.

3.3 Points scored must be rounded off to the nearest 2 decimal places.

3.4 In the event that two or more bids have scored equal total points, the successful bid

must be the one scoring the highest number of preference points for B-BBEE.

3.5 However, when functionality is part of the evaluation process and two or more bids have

scored equal points including equal preference points for B-BBEE, the successful bid must be the one scoring the highest score for functionality.

3.6 Should two or more bids be equal in all respects, the award shall be decided by the

drawing of lots.

4. POINTS AWARDED FOR PRICE 4.1 THE 80/20 OR 90/10 PREFERENCE POINT SYSTEMS

A maximum of 80 or 90 points is allocated for price on the following basis: 80/20 or 90/10

min

min180

P

PPtPs or

min

min190

P

PPtPs

Where Ps = Points scored for comparative price of bid under consideration Pt = Comparative price of bid under consideration Pmin = Comparative price of lowest acceptable bid


Tender No. 116/2018 T2-26

5. Points awarded for B-BBEE Status Level of Contribution

5.1 In terms of Regulation 5 (2) and 6 (2) of the Preferential Procurement Regulations, preference points must be awarded to a bidder for attaining the B-BBEE status level of contribution in accordance with the table below:

B-BBEE Status Level of Contributor

Number of points

(90/10 system)

Number of points

(80/20 system)

1 10 20

2 9 18

3 8 16

4 5 12

5 4 8

6 3 6

7 2 4

8 1 2

Non-compliant contributor 0 0

5.2 Bidders who qualify as EMEs in terms of the B-BBEE Act must submit a certificate issued by an

Accounting Officer as contemplated in the CCA or a Verification Agency accredited by SANAS or a Registered Auditor. Registered auditors do not need to meet the prerequisite for IRBA’s approval for the purpose of conducting verification and issuing EMEs with B-BBEE Status Level Certificates.

5.3 Bidders other than EMEs must submit their original and valid B-BBEE status level verification certificate or a certified copy thereof, substantiating their B-BBEE rating issued by a Registered Auditor approved by IRBA or a Verification Agency accredited by SANAS.

5.4 A trust, consortium or joint venture, will qualify for points for their B-BBEE status level as a legal

entity, provided that the entity submits their B-BBEE status level certificate.

5.5 A trust, consortium or joint venture will qualify for points for their B-BBEE status level as an

unincorporated entity, provided that the entity submits their consolidated B-BBEE scorecard as if they were a group structure and that such a consolidated B-BBEE scorecard is prepared for every separate bid.

5.6 Tertiary institutions and public entities will be required to submit their B-BBEE status level certificates in terms of the specialized scorecard contained in the B-BBEE Codes of Good Practice.

5.7 A person will not be awarded points for B-BBEE status level if it is indicated in the bid documents that such a bidder intends sub-contracting more than 25% of the value of the contract to any other enterprise that does not qualify for at least the points that such a bidder qualifies for, unless the intended sub-contractor is an EME that has the capability and ability to execute the sub-contract.


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5.8 The bidder awarded this contract will have to sub-contract 30% of the value of the contract to local enterprises that meet the requirements such as CIDB, SARS etc. excluding P&Gs and VAT

6. BID DECLARATION

6.1 Bidders who claim points in respect of B-BBEE Status Level of Contribution must complete the

following: 7. B-BBEE STATUS LEVEL OF CONTRIBUTION CLAIMED IN TERMS OF PARAGRAPHS 1.3.1.2 AND 5.1

7.1 B-BBEE Status Level of Contribution: …………. = ……………(maximum of 10 or 20 points)

(Points claimed in respect of paragraph 7.1 must be in accordance with the table reflected in paragraph 5.1 and must be substantiated by means of a B-BBEE certificate issued by a Verification Agency accredited by SANAS or a Registered Auditor approved by IRBA or an Accounting Officer as contemplated in the CCA).

8 SUB-CONTRACTING

8.1 Will any portion of the contract be sub-contracted? YES / NO (delete which is not applicable) 8.1.1 If yes, indicate: (i) what percentage of the contract will be subcontracted? ............……………….…% (ii) the name of the sub-contractor? ………………………………………………………….. (iii) the B-BBEE status level of the sub-contractor? …………….. (iv) whether the sub-contractor is an EME? YES / NO (delete which is not applicable)

9 DECLARATION WITH REGARD TO COMPANY/FIRM

9.1 Name of firm :

__________________________________________________________

9.2 VAT registration number :

__________________________________________________________

9.3 Company registration number :

__________________________________________________________

9.4 TYPE OF COMPANY/ FIRM

Partnership/Joint Venture / Consortium

One person business/sole propriety

Close corporation

Company

(Pty) Limited [TICK APPLICABLE BOX]


Tender No. 116/2018 T2-28

9.5 DESCRIBE PRINCIPAL BUSINESS ACTIVITIES

____________________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

_____________________________________

9.6 COMPANY CLASSIFICATION

Manufacturer

Supplier

Professional service provider

Other service providers, e.g. transporter, etc. [TICK APPLICABLE BOX] 9.7 MUNICIPAL INFORMATION Municipality where business is situated

____________________________________________________ Registered Account Number

___________________________________________________________ Stand Number

_________________________________________________________________________ 9.8 TOTAL NUMBER OF YEARS THE COMPANY/FIRM HAS BEEN IN BUSINESS? _________________________________________

9.9 I/we, the undersigned, who is / are duly authorised to do so on behalf of the company/firm, certify that the points claimed, based on the B-BBE status level of contribution indicated in paragraph 7 of the foregoing certificate, qualifies the company/ firm for the preference(s) shown and I / we acknowledge that:

(i) The information furnished is true and correct; (ii) The preference points claimed are in accordance with the General Conditions as

indicated in paragraph 1 of this form. (iii) In the event of a contract being awarded as a result of points claimed as shown

in paragraph 7, the contractor may be required to furnish documentary proof to the satisfaction of the purchaser that the claims are correct;

(iv) If the B-BBEE status level of contribution has been claimed or obtained on a

fraudulent basis or any of the conditions of contract have not been fulfilled, the purchaser may, in addition to any other remedy it may have –

(a) disqualify the person from the bidding process; (b) recover costs, losses or damages it has incurred or suffered as a result

of that person’s conduct;


Tender No. 116/2018 T2-29

(c) cancel the contract and claim any damages which it has suffered as a

result of having to make less favourable arrangements due to such cancellation;

(d) restrict the bidder or contractor, its shareholders and directors, or only

the shareholders and directors who acted on a fraudulent basis, from obtaining business from any organ of state for a period not exceeding 10 years, after the audi alteram partem (hear the other side) rule has been applied; and

(e) forward the matter for criminal prosecution

WITNESSES:

1. ____________________________ ____________________________ SIGNATURE(S) OF BIDDER(S) 2. ____________________________ DATE: ____________________________ ADDRESS ____________________________

____________________________________

____________________________________


Tender No. 116/2018 T2-30

MBD 8

DECLARATION OF BIDDER’S PAST SUPPLY CHAIN MANAGEMENT PRACTICES

1 This Municipal Bidding Document must form part of all bids invited. 2 It serves as a declaration to be used by municipalities and municipal entities in ensuring that

when goods and services are being procured, all reasonable steps are taken to combat the abuse of the supply chain management system.

3 The bid of any bidder may be rejected if that bidder, or any of its directors have:

a. abused the municipality’s / municipal entity’s supply chain management system or

committed any improper conduct in relation to such system; b. been convicted for fraud or corruption during the past five years; c. wilfully neglected, reneged on or failed to comply with any government, municipal or other

public sector contract during the past five years; or d. been listed in the Register for Tender Defaulters in terms of section 29 of the Prevention

and Combating of Corrupt Activities Act (No 12 of 2004).

4 In order to give effect to the above, the following questionnaire must be completed and submitted with the bid.

Item Question Yes No

4.1 a) Is the bidder or any of its directors listed on the National Treasury’s Database of Restricted Suppliers as companies or persons prohibited from doing business with the public sector?

(Companies or persons who are listed on this Database were informed in writing of

this restriction by the Accounting Officer/Authority of the institution that imposed the

restriction after the audi alteram partem rule was applied).

The Database of Restricted Suppliers now resides on the National Treasury’s

website (www.treasury.gov.za) and can be accessed by clicking on its link at the

bottom of the home page.

Yes

No

4.1.1 If so, furnish particulars:

4.2 Is the bidder or any of its directors listed on the Register for Tender Defaulters in terms of section 29 of the Prevention and Combating of Corrupt Activities Act (No 12 of 2004)? The Register for Tender Defaulters can be accessed on the National Treasury’s website (www.treasury.gov.za) by clicking on its link at the bottom of the home page.

Yes

No

http://www.treasury.gov.za/

http://www.treasury.gov.za/


Tender No. 116/2018 T2-31


4.3 Was the bidder or any of its directors convicted by a court of law (including a court of law outside the Republic of South Africa) for fraud or corruption during the past five years?

Yes

No


Item Question Yes No

4.4 Does the bidder or any of its directors owe any municipal rates and taxes or municipal charges to the municipality / municipal entity, or to any other municipality / municipal entity, that is in arrears for more than three months?

Yes

No


4.5 Was any contract between the bidder and the municipality / municipal entity or any other organ of state terminated during the past five years on account of failure to perform on or comply with the contract?

Yes

No


CERTIFICATION

I, THE UNDERSIGNED (FULL NAME)

……..……………………………..………………………………………………………………………..

CERTIFY THAT THE INFORMATION FURNISHED ON THIS DECLARATION FORM TRUE AND CORRECT.

I ACCEPT THAT, IN ADDITION TO CANCELLATION OF A CONTRACT, ACTION MAY BE TAKEN AGAINST ME SHOULD THIS DECLARATION PROVE TO BE FALSE.

………………………………………... ………..……

Signature Date

………………………………………. ……………………………….

Position Name of Bidder


Tender No. 116/2018 T2-32

MBD 9

CERTIFICATE OF INDEPENDENT BID DETERMINATION

1. This Municipal Bidding Document (MBD) must form part of all bids¹ invited.

2. Section 4 (1) (b) (iii) of the Competition Act No. 89 of 1998, as amended, prohibits an agreement

between, or concerted practice by, firms, or a decision by an association of firms, if it is between

parties in a horizontal relationship and if it involves collusive bidding (or bid rigging).² Collusive

bidding is a pe se prohibition meaning that it cannot be justified under any grounds.

3. Municipal Supply Regulation 38 (1) prescribes that a supply chain management policy must provide

measures for the combating of abuse of the supply chain management system, and must enable the accounting officer, among others, to:

a) take all reasonable steps to prevent such abuse;

b) reject the bid of any bidder if that bidder or any of its directors has abused the supply chain

management system of the municipality or municipal entity or has committed any improper conduct in relation to such system; and

c) cancel a contract awarded to a person if the person committed any corrupt or fraudulent

act during the bidding process or the execution of the contract.

4. This MBD serves as a certificate of declaration that would be used by institutions to ensure that,

when bids are considered, reasonable steps are taken to prevent any form of bid-rigging.

5. In order to give effect to the above, the attached Certificate of Bid Determination (MBD 9) must be

completed and submitted with the bid:

¹ Includes price quotations, advertised competitive bids, limited bids and proposals.

² Bid rigging (or collusive bidding) occurs when businesses, that would otherwise be expected to compete, secretly conspire

to raise prices or lower the quality of goods and / or services for purchasers who wish to acquire goods and / or services

through a bidding process. Bid rigging is, therefore, an agreement between competitors not to compete.


Tender No. 116/2018 T2-33

MBD 9

CERTIFICATE OF INDEPENDENT BID DETERMINATION I, the undersigned, in submitting the accompanying bid:

________________________________________________________________________

(Bid Number and Description)

in response to the invitation for the bid made by:

______________________________________________________________________________

(Name of Municipality / Municipal Entity)

do hereby make the following statements that I certify to be true and complete in every respect:

I certify, on behalf of:_______________________________________________________ that:

(Name of Bidder)

1. I have read and I understand the contents of this Certificate;

2. I understand that the accompanying bid will be disqualified if this Certificate is found not to be true

and complete in every respect;

3. I am authorized by the bidder to sign this Certificate, and to submit the accompanying bid, on behalf

of the bidder;

4. Each person whose signature appears on the accompanying bid has been authorized by the bidder

to determine the terms of, and to sign, the bid, on behalf of the bidder;

5. For the purposes of this Certificate and the accompanying bid, I understand that the word

“competitor” shall include any individual or organization, other than the bidder, whether or not

affiliated with the bidder, who:

(a) has been requested to submit a bid in response to this bid invitation;

(b) could potentially submit a bid in response to this bid invitation, based on their

qualifications, abilities or experience; and

(c) provides the same goods and services as the bidder and/or is in the same line of

business as the bidder


Tender No. 116/2018 T2-34

MBD 9

6. The bidder has arrived at the accompanying bid independently from, and without consultation,

communication, agreement or arrangement with any competitor. However communication between

partners in a joint venture or consortium³ will not be construed as collusive bidding.

7. In particular, without limiting the generality of paragraphs 6 above, there has been no consultation,

communication, agreement or arrangement with any competitor regarding:

(a) prices;

(b) geographical area where product or service will be rendered (market allocation)

(c) methods, factors or formulas used to calculate prices;

(d the intention or decision to submit or not to submit, a bid;

(e) the submission of a bid which does not meet the specifications and conditions of

the bid; or

(f) bidding with the intention not to win the bid.

8. In addition, there have been no consultations, communications, agreements or arrangements with

any competitor regarding the quality, quantity, specifications and conditions or delivery particulars

of the products or services to which this bid invitation relates.

9. The terms of the accompanying bid have not been, and will not be, disclosed by the bidder, directly

or indirectly, to any competitor, prior to the date and time of the official bid opening or of the awarding

of the contract.

³ Joint venture or Consortium means an association of persons for the purpose of combining their expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract.


Tender No. 116/2018 T2-35

MBD 9

10. I am aware that, in addition and without prejudice to any other remedy provided to combat any

restrictive practices related to bids and contracts, bids that are suspicious will be reported to the

Competition Commission for investigation and possible imposition of administrative penalties in

terms of section 59 of the Competition Act No 89 of 1998 and or may be reported to the National

Prosecuting Authority (NPA) for criminal investigation and or may be restricted from conducting

business with the public sector for a period not exceeding ten (10) years in terms of the Prevention

and Combating of Corrupt Activities Act No 12 of 2004 or any other applicable legislation.

____________________________ _________________________

Signature Date

____________________________ __________________________

Position Name of Bidder


Tender No. 116/2018 T2-36

COPY OF WORKMAN’S’ COMPENSATION REGISTRATION CERTIFICATE (OR PROOF OF PAYMENT

OF CONTRIBUTIONS IN TERMS OF THE COMPENSATION FOR OCCUPATIONAL INJURIES AND

DISEASES ACT NO. 130 OF 1993)

[Certified Copy of the Certificate or Proof of Payment thereof obtained from the Workmen’s Compensation Commissioner to be inserted here]


Tender No. 116/2018 T2-37

AN ORIGINAL BANK STAMPED FINANCIAL BANK RATING CODE

[The Tenderer shall obtain a letter from the Bank rating his / her financial capacity to execute the project of such values. In case of Joint Venture, each Joint Venture partner shall provide an Original Bank rating. The Bank rating of the Leader Partner of the Joint Venture shall be considered for further evaluation]


Tender No. 116/2018 T2-38

PROOF OF REGISTRATION FOR REGIONAL LEVIES

If the Tenderer claims for being registered in Mbombela Municipality boundaries, the Tenderer shall obtain a letter confirming his/her registration. In case of Joint Venture, the Tenderer shall confirm his/her Domicilium citandi et executandi as one of the Joint Venture partner; this shall be considered for further evaluation]


Tender No. 116/2018 T2-39

PROOF OF REGISTRATION WITH THE CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB)

[Proof of registration with the Construction Industry Development Board (CIDB) to be inserted CIDB 9 CE]


Tender No. 116/2018 T2-40

TAX CLEARANCE CERTIFICATE

[An Original Tax Clearance Certificate obtained from SARS to be inserted here or a valid pin to do on-line validation]


Tender No. 116/2018 T2-41

CONTRACT

This part of the Bid Specification Document consists of the following four sections:

Part C1: Agreement and Contract Data

This section details the:

o Letter of Tender and Contract Agreement (yellow pages);

o Contract Data (yellow pages); and

o Performance Security – Demand Guarantee (white pages).

o Advance Payment Guarantee (white pages)

o Retention Money Guarantee (white pages)

o Payment Guarantee by Employer (white pages)

Part C2: Pricing Data


o Pricing Instructions (yellow pages); and

o Bill of Quantities (yellow pages).

Part C3: Scope of Work


o Employer’s Requirements (Blue).

Part C4: Site Information


o Site Information (Green).


Tender No. 116/2018 T2-42

Part C1: Agreement and Contract Data

C1.1 Letter of Tender and Contract Agreement

LETTER OF TENDER

NAME OF CONTRACT:

TO:

We have examined the Conditions of Contract, Employer’s Requirements, Schedules, the attached Appendix and Addenda Nos ____________________ or the above-named Works. We have examined, understood and checked these documents and have ascertained that they contain no errors or other defects. We accordingly offer to design, execute and complete the Works and remedy any defects therein, in conformity with this Tender which includes all these documents and the enclosed Proposal, for the lump sum of

(in currencies of payment) ____________________________________________________________

We accept your suggestions for the appointment of the DAB, as set out in Schedule ______________

[We have completed the Schedule by adding our suggestions for the other Member of the DAB, but these suggestions are not conditions of this offer]*

We agree to abide by this Tender until ______________ and it shall remain binding upon us and may be accepted at any time before that date. We acknowledge that the Appendix forms part of this Letter of Tender.

If this offer is accepted, we will provide the specified Performance Security, commence the Works as soon as is reasonably practicable after the Commencement Date, and complete the Works in accordance with the above-named documents within the Time for Completion. We guarantee that the Works will then conform with the Schedule of Quantities.

Unless and until a formal Agreement is prepared and executed this Letter of Tender, together with your written acceptance thereof, shall constitute a binding contract between us.

We understand that you are not bound to accept the lowest or any tender you may receive.

Signature ____________________ in the capacity of ______________________________________

duly authorized to sign tenders for and on behalf of ________________________________________

_________________________________________________________________________________

Address: _________________________________________________________________________

_________________________________________________________________________________

Date: ______________________________


Tender No. 116/2018 T2-43

If the Tenderer does not accept, this paragraph may be deleted and replaced by:

We do not accept your suggestions for the appointment of the DAB. We have included our suggestions in

the Schedule, but these suggestions are not conditions of this offer. If these suggestions are not acceptable

to you, we propose that the DAB be jointly appointed in accordance with Sub-Clause 20.2 of the Conditions

of Contract


Tender No. 116/2018 T2-44

CONTRACT AGREEMENT

This Agreement made on the ____________________ day of ____________________ 20_______

Between _______________ of _______________ (hereinafter called “the Employer” of the one part, and _______________ of _______________ (hereinafter called “the Contractor”) of the other part

Whereas the Employer desires that the Works known as _______________ should be executed by the Contractor, and has accepted a Tender by the Contractor for the execution and completion of these Works and the remedying of any defects therein,

The Employer and the Contractor agree as follows:

1. In this Agreement words and expressions shall have the same meanings as are respectively assigned to

them in the Conditions of Contract hereinafter referred to.

2. The following documents shall be deemed to form and be read and construed as part of this Agreement:

(a) The Letter of Acceptance dated ____________________

(b) The Letter of Tender dated ____________________

(c) The Addenda nos. _____________________________

(d) The Conditions of Contract

(e) The Employer’s Requirements

(f) The completed Schedules, and

(g) The Contractor’s Proposal

3. In consideration of the payments to be made by the Employer to the Contractor as hereinafter mentioned, the

Contractor hereby covenants with the Employer to design, execute and complete the Works and the

remedying of defects therein, the Contract Price at the times and in the manner prescribed by the Contract.

4. The Employer herby covenants to pay the Contractor, in consideration of the execution and completion of the

Works and the remedying of defects therein, the Contract Price at the times and in the manner prescribed by

the Contract.


Tender No. 116/2018 T2-45

In Witness whereof the parties hereto have caused this Agreement to be executed the day and year first before

written in accordance with their respective laws.

SIGNED by: ___________________________ SIGNED by: ___________________________

for and on behalf of the Employer in the presence for and on behalf of the Contractor in the presence of of

Witness: ___________________________ Witness: ___________________________

Name: ___________________________ Name: ___________________________

Address: ___________________________ Address: ___________________________

Date: ___________________________ Date: ___________________________


Tender No. 116/2018 T2-46

C1.2 Contract Data

CONDITIONS OF CONTRACT

The Conditions of Contract comprise the “General Conditions”, which form part of the “Conditions of Contract for

Plant and Design-Build” First Edition 1999 published by the Fédération Internationale des Ingénieurs-Conseils

(FIDIC), and the following “Particular Conditions”, which include amendments and additions to such General

Conditions.

PARTICULAR CONDITIONS

Clause 1 General Provisions

Sub-Clause 1.15 Details to be Confidential

The Contractor shall treat the details of the Contract as private and confidential, except to

the extent necessary to carry out obligations under it or to comply with applicable Laws.

The Contractor shall not publish, permit to be published, or disclose any particulars of the

Works in any trade or technical paper or elsewhere without the previous agreement of the

Employer.

Clause 3 The Engineer

Sub-Clause 3.6 Management Meetings

The Engineer or the Contractor’s Representative may require the other to attend a

management meeting in order to review the arrangements for the future work. The

Engineer shall record the business of management meetings and supply copies of the

record to those attending the meeting and to the Employer. In the record, responsibilities

for any actions to be taken shall be in accordance with the Contract.

Clause 4 The Contractor

Sub-Clause 4.2 Performance Security

At the end of the second paragraph of Sub-Clause 4.2, insert: If the Performance Security

is in the form of a bank guarantee, it shall be issued by one of the five largest commercial

banks in South Africa.

Clause 13 Variations and Adjustments

Sub-Clause 13.5 Provisional Sums

Add the following to this clause: Provisional Sums have been made available to pay for

work and or materials/equipment/plant/designs done during Phase 1A of this project.

The Engineer shall arrange with the Employer and the Contractor to facilitate the direct

payment, through sessions, to these suppliers. The Contractor shall be entitled to the

overhead charges and profit as per the Appendix to Tender.

Clause 18 Insurance

Sub-Clause 18.5 Insurance for Design

The Contractor shall affect professional indemnity insurance, which shall cover the risk

of professional negligence in the design of the Works for an amount no less than R10

million which he shall maintain in full force and effect until the lapse of the Defect

Notification Period.


Tender No. 116/2018 T2-47

APPENDIX TO TENDER

[ Note: with the exception of the items for which the Employer’s requirements have been inserted, the following information must be completed before the Tender is submitted]

Item Sub-Clause Entry

Employer’s name and address 1.1.2.2 & 1.3 City of Mbombela

1 Nel Street

Nelspruit; 1200

Contractor’s name and address 1.1.2.3 & 1.3 _______________________________

_______________________________

_______________________________

Engineer’s name and address 1.1.2.4 & 1.3 City of Mbombela

1 Nel Street

Nelspruit; 1200

Time for Completion of the Works 1.1.3.3 160 days

Defects Notification Period 1.1.3.7 365 days

Electronic transmission systems 1.3 e-mail

Governing Law 1.4 RSA

Ruling language 1.4 RSA English

Language for communications 1.4 RSA English

Time for access to the Site 2.1 15 days after Commencement Date

Amount of Performance Security 4.2 10 % of the Accepted Contract Amount, in the currencies and proportions in which the Contract Price is payable

Period for notifying unforeseeable errors, faults and defects in the Employers Requirements 5.1 30 days

Normal working hours 6.5 06:00 – 18:00 Weekdays 06:00 – 12:00 Saturdays

Delay damages for the Works 8.7 & 14.15(b) 0.10 % of the final Contract Price per day, in the currencies and proportions in which the Contract Price is payable

Maximum amount of Delay damages 8.7 5 % of the final Contract Price

Percentage for adjustment of Provisional Sums 13.5(b) 5 %

Adjustments for Changes in Cost; Table(s) of adjustment data 13.8 for payments each month 2018/19 in


Tender No. 116/2018 T2-48

Rand currency

_____________________________________________________________________________

Coefficient; scope of index

Country of origin; Currency of index

Source of index; Title/definition

Value on stated date(s)* Value Date

a= 0.10 - Fixed RSA Rand Stats SA b= 0.20 - Labour RSA Rand P 0141 Table A 106.2 June 2018 c= 0.15 - Plant RSA Rand P 0142.1 Table 1 103.6 May 2018 d= 0.35 - Material RSA Rand P 0142.1 Table 1 106.8 May 2018 e= 0.20 - Fuel RSA Rand P 0142.1 Table 1 121.5 May 2018

These values and dates confirm the definition of each index, but do not define Base Date indices

Total advance payment 14.2 5 % of the Accepted Contract Amount

Number and timing of instalments 14.2 5 & Monthly

Currencies and proportions 14.2 100 % in Rand

Start repayment of advance payment 14.2(a) when payments are 10 % of the Accepted Contract Amount less Provisional Sums

Repayment amortisation of advance payment 14.2(b) 25 % of each payment certificate

Percentage of retention 14.3 10%

Limit of Retention Money 14.3 5 % of the Accepted Contract Amount

Minimum amount of Interim Payment Certificates 14.6 10 % of the Accepted Contract Amount

Currency/currencies of payment 14.15 Rand as named in the Letter of Tender

Periods for submission of insurance: (a) evidence of insurance 18.1 14 days (b) relevant policies 18.1 14 days

Maximum amount of deductibles for insurance of the Employer’s risks 18.2(d) R 100,000-00

Minimum amount of third party insurance 18.3 R 10 million

The DAB shall be 20.2 One adjudicator

Appointment (if not agreed) to be made by 20.3 The executive committee of ECSA


Tender No. 116/2018 T2-49

C1.3 Pro Forma Performance Guarantee

Annex C EXAMPLE FORM OF PERFORMANCE SECURITY – DEMAND GUARANTEE

[See comments on Sub-Clause 4.2]

Brief description of Contract _________________________________________________________

Name and address of Beneficiary ___________________________________________________

_______________________________________________ (whom the Contract defines as Employer).

We have been informed that __________________________ (hereinafter called the “Principal”) is your contractor under such Contract, which required him to obtain a performance security.

At the request of the Principal, we (name of bank) ________________________ hereby irrevocably undertake to pay you, the Beneficiary/Employer, any sum or sums not exceeding in total the amount of _______________ (the “guaranteed amount”, say: _______________) upon receipt by us on your demand in writing and your written statement stating:

(a) that the Principal is in breach of his obligation(s) under the Contract, and

(b) the respect in which the Principal is in breach.

[Following the receipt by us of an authenticated copy of the taking-over certificate for the whole of the works under clause 10 of the conditions of the Contract, such guaranteed amount shall be reduced by __________ % and we shall promptly notify you that we have received such certificate and have reduced the guaranteed amount accordingly.]¹

Any demand for payment must contain your [minister’s/directors’]¹ signature(s) which must be authenticated by your bankers or by a notary public. The authenticated demand and statement must be received by us at this office on or before (the date 70 days after the expected expiry of the Defects Notification Period for the Works) ______________ (the “expiry date”), when this guarantee shall expire and shall be returned to us.

We have been informed that the Beneficiary may require the Principal to extend this guarantee if the performance certificate under the Contract has not been issued by the date 28 days prior to such expiry date. We undertake to pay you such guaranteed amount upon receipt by us, within such period of 28 days, of your demand in writing and your written statement that the performance certificate has not been issued, for reasons attributable to the Principal, and that his guarantee has not been extended.

This guarantee shall be governed by the laws of ______________ and shall be subject to the Uniform Rules for Demand Guarantees, published as number 458 by the International Chamber of Commerce, except as stated above.

Date ____________________ Signature(s) ___________________________________

¹ When writing the tender documents, the writer should ascertain whether to include the optional text, shown in parentheses [ ]


Tender No. 116/2018 T2-50

Annex E EXAMPLE FORM OF ADVANCE PAYMENT GUARANTEE





We have been informed that __________________________ (hereinafter called the “Principal”) is your contractor under such Contract and wishes to receive an advance payment, for which the Contract required him to obtain a guarantee.

At the request of the Principal, we (name of bank) ____________________ hereby irrevocably undertake to pay you, the Beneficiary/Employer, any sum or sums not exceeding in total the amount of ____________________ (the “guaranteed amount”, say: ____________________ ) upon receipt by us of your demand in writing and your written statement stating:

(a) that the Principal has failed to repay the advance payment in accordance with the conditions of Contract,

and

(b) the amount which the Principal has failed to repay.

This guarantee shall become effective upon receipt [of the first instalment] of the advance payment by the Principal. Such guaranteed amount shall be reduced by the amounts of the advance payment repaid to you, as evidenced by your notices issued under sub-clause 14.6 of the conditions of the Contract. Following receipt (from the Principal) of a copy of each purported notice, we shall promptly notify you of the revised guaranteed amount accordingly.

Any demand for payment must contain your signature(s) which must be authenticated by your bankers or by a notary public. The authenticated demand and statement must be received by us at this office on or before (the date 70 days after the expected expiry of the Time for Completion) ______________ (the “expiry date”), when this guarantee shall expire and shall be returned to us.

We have been informed that the Beneficiary may require the Principal to extend this guarantee if the advance payment has not been repaid by the date 28 days prior to such expiry date. We undertake to pay you such guaranteed amount upon receipt by us, within such period of 28 days, of your demand in writing and your written statement that the advance payment has not been repaid and that this guarantee has not been extended.

This guarantee shall be governed by the laws of ____________________ and shall be subject to the Uniform Rules for Demand Guarantees, published as number 458 by the International Chamber of Commerce, except as stated above.

Date _____________________ Signature(s) ___________________________________


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Annex F EXAMPLE FORM OF RETENTION MONEY GUARANTEE





We have been informed that __________________________ (hereinafter called the “Principal”) is your contractor under such Contract and wishes to receive early payment of [part of] the retention money, for which the Contract required him to obtain a guarantee.


(a) that the Principal has failed to carry out his obligation(s) to rectify certain defect(s) for which he is

responsible under the Contract, and

(b) the nature of such defect(s).

At any time, our liability under this guarantee shall not exceed the total amount of retention money released to the Principal by you, as evidenced by your notices issued under sub-clause 14.6 of the conditions of the Contract with a copy being passed to us.

Any demand for payment must contain your signature(s) which must be authenticated by your bankers or by a notary public. The authenticated demand and statement must be received by us at this office on or before (the date 70 days after the expected expiry of the Defects Notification Period for the Works) ______________ (the “expiry date”), when this guarantee shall expire and shall be returned to us.

We have been informed that the Beneficiary may require the Principal to extend this guarantee if the performance certificate under the Contract has not been issued by the date 28 days prior to such expiry date. We undertake to pay you such guaranteed amount upon receipt by us, within such period of 28 days, of your demand in writing and your written statement that the performance certificate has not been issued, for reasons attributable to the Principal, and that this guarantee has not been extended.


Date ____________________ Signature(s) ___________________________________


Tender No. 116/2018 T2-52

Annex G EXAMPLE FORM OF PAYMENT GUARANTEE BY EMPLOYER

[See page 17: Contractor Finance]



____________________________________________ (whom the Contract defines as the Contractor).

We have been informed that __________________________ (whom the Contract defines as the Employer and who is hereinafter called the “Principal”) is required to obtain a bank guarantee.


(a) that, in respect of a payment due under the Contract, the Principal has failed to make payment in full by

the date fourteen days after the expiry of the period specified I the Contract as that within which such

payment should have been made, and

(b) the amount(s) which the Principal has failed to pay.

Any demand for payment must be accompanied by a copy of [list of documents evidencing entitlement to payment] ____________________, in respect of which the Principal has failed to make payment in full.

Any demand for payment must contain your signature(s) which must be authenticated by your bankers or by a notary public. The authenticated demand and statement must be received by us at this office on or before (the date six months after the expected expiry of the Defects Notification Period for the Works) ______________, when this guarantee shall expire and shall be returned to us.


Date ____________________ Signature(s) ___________________________________


Tender No. 116/2018 T2-53

DISPUTE ADJUDICATION AGREEMENT

[for a one-person DAB]

Name and details of Contract _______________________________________________________ Name and address of Employer _______________________________________________________ Name and address of Contractor ___________________________________________________ Name and address of Member _______________________________________________________

Whereas the Employer and the Contractor have entered into the Contract and desire jointly to appoint the Member

to act as sole adjudicator who is also called the “DAB” to adjudicate a dispute which has arisen in relation to _________________________ *

The Employer, Contractor and Member jointly agree as follows:

1. The conditions of the Dispute Adjudication Agreement comprise the “General Conditions of Dispute

Adjudication Agreement”, which is appended to the General Conditions of the “Conditions of Contract for

Plant and Design-Build” First Edition 1999 published by the Fédération Internationale des Ingénieurs-Conseils

(FIDIC), and the following provisions. In these provisions, which include amendments and additions to the

General Conditions of Dispute Adjudication Agreement, words and expressions shall have the same

meanings as are assigned to them in the General Conditions of Dispute Adjudication Agreement.

2. [ Details of amendments to the General Conditions of Dispute Adjudication Agreement, if any.]

3. In accordance with Clause 6 of the General Conditions of Dispute Adjudication Agreement, the Member shall

be paid a daily fee of _________________________ per day.

4. In consideration of these fees and other payments to be made by die Employer and the Contractor in

accordance with Clause 6 of the General Conditions of Dispute Adjudication Agreement, the Member

undertakes to act as the DAB (as adjudicator) in accordance with this Dispute Adjudication Agreement.

5. The Employer and the Contractor jointly and severally undertake to pay the Member, in consideration of the

carrying out of these services, in accordance with Clause 6 of the General Conditions of the Dispute

Adjudication Agreement.

6. This Dispute Adjudication Agreement shall be governed by the law of _______________________


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SIGNED by: _______________ SIGNED by: _______________ SIGNED by: ____________

for and on behalf of the Employer for and on behalf of the Contractor’ the Member in the presence of in the presence of in the presence of

Witness: _______________ Witness: _______________ Witness: _____________

Name: _______________ Name: _______________ Name: _____________

Address: _______________ Address: _______________ Address: _____________

Date: _______________ Date: _______________ Date: _____________


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2. CONTRACT DETAILS

Project Engineer issues: Interim Payment Certificates, Final Payment Certificate and the Certificate of Completion

of the Works as defined in the Contract.

1. VARIABLE PERFORMANCE GUARANTEE

1.1 Where a Variable Performance Guarantee has been selected, the Guarantor's liability shall be limited during

the following periods to diminishing amounts of the Guaranteed Sum as follows:

1.1.1 From and including the date of signing the Performance Guarantee up to and including the date of the

interim payment certificate certifying, for the first time, more than 50% of the Contract Sum:

R _______________________________________________________________________

Amount in words ___________________________________________________________

1.1.2 From the day following the date of the said interim payment certificate up to and including the Expiry Date,

or the date of issue by the Project Engineer of the Certificate of Completion of the Works, whichever

occurs first:

R _______________________________________________________________________

Amount in words ___________________________________________________________

1.2 The Project Engineer and/or the Employer shall advise the Guarantor in writing of the date on which the interim

payment certificate certifying, for the first time, more than 50% of the Contract Sum, has been issued and the

date on which the Certificate of Completion of the Works has been issued.

2. FIXED PERFORMANCE GUARANTEE

2.1 Where a Fixed Performance Guarantee has been selected, the Guarantor's liability shall be limited to the

amount of the Guaranteed Sum.

2.2 The Guarantor's period of liability shall be from and including the date on which the Performance Guarantee

is signed, up to and including the Expiry Date, or the date of issue by the Project Engineer of the Certificate

of Completion of the Works, or the date of payment in full of the Guaranteed Sum, whichever occurs first.

2.3 The Project Engineer and/or the Employer shall advise the Guarantor in writing of the date on which the

Certificate of Completion of the Works has been issued.

3. CONDITIONS APPLICABLE TO VARIABLE AND FIXED PERFORMANCE GUARANTEES

3.1 The Guarantor hereby acknowledges that:

3.1.1 Any reference in this Performance Guarantee to the Contractor is made for the purpose of convenience and

shall not be construed as any intention whatsoever to create an accessory obligation or any intention

whatsoever to create a suretyship.

3.1.2 Its obligation under this Performance Guarantee is restricted to the payment of money.

3.2 Subject to the Guarantor's maximum liability referred to in 1.1 or 2.1, the Guarantor hereby undertakes to

pay the Employer the sum certified upon receipt of the documents identified in 3.2.1 to 3.2.3:

3.2.1 A copy of a first written demand issued by the Employer to the Contractor stating that payment of a sum

certified by the Project Engineer in an Interim or Final Payment Certificate has not been made in terms of


Tender No. 116/2018 T2-56

the Contract and failing such payment within seven (7) calendar days, the Employer intends to call upon the

Guarantor to make payment in terms of 3.2.2;

3.2.2 A first written demand issued by the Employer to the Guarantor at the Guarantor's physical address with a

copy to the Contractor stating that a period of seven (7) days has elapsed since the first written demand in

terms of 3.2.1 and the sum certified has still not been paid;

3.2.3 A copy of the aforesaid payment certificate which entitles the Employer to receive payment in terms of the

Contract of the sum certified in 3.2.

3.3 Subject to the Guarantor’s maximum liability referred to in 1.1 or 2.1, the Guarantor undertakes to pay to

the Employer the Guaranteed Sum or the full outstanding balance upon receipt of a first written demand

from the Employer to the Guarantor at the Guarantor's physical address calling up this Performance

Guarantee, such demand stating that:

3.3.1 the Contract has been terminated due to the Contractor's default and that this Performance Guarantee is

called up in terms of 3.3;

3.3.2 A provisional or final sequestration or liquidation court order has been granted against the Contractor and

that the Performance Guarantee is called up in terms of 3.3; and

3.3.3 The aforesaid written demand is accompanied by a copy of the notice of termination and/or the

provisional/final sequestration and/or the provisional liquidation court order.

3.4 It is recorded that the aggregate amount of payments required to be made by the Guarantor in terms of 3.2

and 3.3 shall not exceed the Guarantor’s maximum liability in terms of 1.1 or 2.1.

3.5 Where the Guarantor has made payment in terms of 3.3, the Employer shall upon the date of issue of the

Final Payment Certificate submit an expense account to the Guarantor showing how all monies received in

terms of this Performance Guarantee have been expended and shall refund to the Guarantor any resulting

surplus. All monies refunded to the Guarantor in terms of this Performance Guarantee shall bear interest at

the prime overdraft rate of the Employer's bank compounded monthly and calculated from the date payment

was made by the Guarantor to the Employer until the date of refund.

3.6 Payment by the Guarantor in terms of 3.2 or 3.3 shall be made within seven (7) calendar days upon receipt

of the first written demand to the Guarantor.

3.7 Payment by the Guarantor in terms of 3.3 will only be made against the return of the original Performance

Guarantee by the Employer.

3.8 The Employer shall have the absolute right to arrange his affairs with the Contractor in any manner which

the Employer may consider fit and the Guarantor shall not have the right to claim his release from this

Performance Guarantee on account of any conduct alleged to be prejudicial to the Guarantor.

3.9 The Guarantor chooses the physical address as stated above for the service of all notices for all purposes

in connection herewith.

3.10 This Performance Guarantee is neither negotiable nor transferable and shall expire in terms of 1.1.2 or 2.2,

where after no claims will be considered by the Guarantor. The original of this Guarantee shall be returned

to the Guarantor after it has expired.

3.11 This Performance Guarantee, with the required demand notices in terms of 3.2 or 3.3, shall be regarded as

a liquid document for the purposes of obtaining a court order.


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3.12 Where this Performance Guarantee is issued in the Republic of South Africa the Guarantor hereby consents

in terms of Section 45 of the Magistrates' Courts Act No 32 of 1944, as amended, to the jurisdiction of the

Magistrate's Court of any district having jurisdiction in terms of Section 28 of the said Act, notwithstanding

that the amount of the claim may exceed the jurisdiction of the Magistrate's Court.

Signed at: ________________________________________________________

Date: ________________________________________________________

Guarantor's signatory (1): ________________________________________________________

Capacity: ________________________________________________________

Guarantor's signatory (2): ________________________________________________________

Capacity: ________________________________________________________

Witness signatory (1) ________________________________________________________

Witness signatory (1) ________________________________________________________


Tender No. 116/2018 T2-58

Part C2: Pricing Data

Pricing is for the design and construction of the project, inclusive of all costs to design, construct and commission

the Works and entails inter alia the following:

Section Description Amount

Construction Cost

Section 1 Preliminary and General Costs

Section 2 Pump Line: Sabie River to Nyongane WTP

Section 3 Pump Line: Nyongane WTP to Numbi Reservoir

Section 4 New Nyongane Pump Station: Civil

Section 5 New Nyongane Pump Station: Electrical

Section 6 New Nyongane Pump Station: Mechanical

Section 7 Provision for: Excessive Rock Blasting

Section 8 Provision for: Repairs to installed but not Commissioned Items of

Phase 1A

Section 9 Provision for: Dayworks

Section 10 Provision for: Relocating Existing Services

Section 11 Provision for: OHS & Environmental Requirements

Section 12 Provision for: CLO Costs

Section 13 Provision for: Extension of Equipment Warrantees

Section 14 Provision for: Labour Training

Section 15 Provision for: Storage Costs

Section 16

Cost for work done under Phase 1A and not yet paid for.

Sub-Soil Drainage Costs: R 13,600,000-00

CPA for contractor: R 10,200,000-00

PSP of Contractor: R 11,700,000-00

Site security: R 500,000-00

R 36,000,000-00

Section 17 Handling Fee for Section 16 as per Tender Data

Subtotal: Construction Cost (a)


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Subtotal: Construction Cost (a) Brought Over

Plus: 5% of (a) - Allowance for Contingencies

Plus: 8% of (a) - Allowance for Contract Price Adjustment

SUB-TOTAL A: CONSTRUCTION COST

Professional Fees

All Inclusive Amount for Professional Fees, Disbursements and Construction

Monitoring Costs

SUB-TOTAL B: PROFESSIONAL FEES

TOTAL PROJECT COST (Excl. VAT) (Sub-Total A + Sub-Total B)

PLUS 15% VAT

TOTAL PROJECT COST (Incl. VAT)


Tender No. 116/2018 T2-60

Part C3: Scope of Works

C3.1 Employer’s Requirements

C3.1.1 Extent of the Works

The Employer requires from the tenderer to do the following.

The tenderer must visit the site and obtain all the necessary information required to submit a tender to

complete the outstanding Phase 1B work. The contract entails the design of the required infrastructure,

the supply, delivery, installation, testing and commissioning of inter alia, the following so that the water

supply scheme would be able to supply 56.962 Ml/d:

Pump Line: Sabie River to Nyongane WTP

The pump line has been installed but the following items still need to be completed:

Completion of Electro Magnetic Flow meter.

Completion of Flow Control Valve.

Completion of Telemetry system.

Testing and Commissioning of complete pump line.

Pump Line: Nyongane WTP to Numbi Reservoir

The pump line has been installed partially but the following items still need to be completed:

Completion of 1,700m of 915mm Ø CWS pipe line with related valve chamber, welding and repair,

quality control and 2 x road crossing work.

Blasting of rocky areas on pipe line route.

Accommodation of excessive ground water.

Completion of Electro Magnetic Flow meter.

Completion of Flow Control Valve.

Completion of Telemetry system.

Design, installation and commissioning of cathodic protection system.

Completion of environmental rehabilitation of the pipeline route.

Testing and Commissioning of complete pump line.

New Nyongane Pump Station: Civil

A portion of the civil construction work for the new pump station has been constructed but the following

items still need to be completed:

Construction of the loading bay area.

Completion of the roof structure and the installation of the roof cladding.

Completion of transformer bays.

Completion of the safety rails inside the pump station.

Completion of doors, windows and sanitary ware.

Completion of false floor in control room.

Paint work and general finishing.

Access road and parking area.


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New Nyongane Pump Station: Electrical

A portion of the electrical components for the new pump station has been purchased and is currently in

storage but the following items still need to be completed:

Completion of pump and motor sets.

Completion of variable frequency drives.

Completion of transformers.

Completion of high voltage electrical work and switch gear.

Completion of low voltage electrical work and switch gear.

Completion of pump station control system.

Design and Completion of pump station ventilation system.

Completion of backup generator.

Completion of lighting and security systems inside pump station.

Commissioning of electrical work at pump station.

Operating and training of municipal staff on the pump station for a period of 3 months.

New Nyongane Pump Station: Mechanical

A portion of the mechanical components for the new pump station has been purchased and is currently

in storage but the following items still need to be completed:

Completion of suction pipe work.

Manufacturing and Completion of delivery pipe work.

Manufacturing and Completion of cooling water pump system.

Completion of overhead crane and crawl.

Commissioning of mechanical work at pump station.

C3.1.2 Location of the Works

The Works, Northern Nsikazi Balk Water Supply, is located east of Hazyview and stretches from the

Kruger Gate road in the north all the way south to the Numbi reservoir on the mountain close to Numbi

Gate road. The site is accessible from various roads in the area. Refer to the locality map for more

information.

C3.1.3 Temporary Works

The following items shall form the majority of temporary works required under this Contract, however

shall not be limited to such, and might be expanded or changed by the Project Engineer should

circumstances on site valid such decisions. These works will be as follows:

Clearing site and surroundings to create accessible working areas as required;

Provide temporary fencing and security around the Contractor’s camp site;

Provide enough space for Sub-Contractor’s Camp Site inside main contractor’s site;

Provide site and administrative personnel, including security staff etc. as required or instructed;

Manage all site staff, CLO and local labourers, plant, equipment and materials etc.;

Manage all required quality control procedures as specified and as instructed by Project Engineer;

Provide all personnel, equipment, clothing, accessories etc., in order to adhere to the OHS Act;

Attend official Site Meetings scheduled and chaired by the Project Engineer and managed sufficient

additional meetings on site with all personnel and CLO to ensure compliance with the OHS Act and

to ensure progress on site according to the accepted Construction programme.


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C3.2 Procurement

C3.2.1 Preferential Procurement Procedures

The open tender process will not be followed for the procurement of any other service providers in terms

of this contract.

The Contractor will be responsible to procure and appoint suitable Specialist Service Providers and

additional Sub-contractors for the specialist investigations, construction and installation of the Works.

Procurement will be subject to the requirements of the conditions of contract.

C3.2.2 Sub-Contracting

Sub-contractors will be obtained from the Contractor’s reference of preferred sub-contractors for

electrical engineering design and installation; mechanical engineering design and installation as well as

civil engineering design and construction. Sub-contracting will be by means of negotiation.

Sub-contractors will be appointed on a CIDB-compliant GCC form of contract and the conditions of

contract applicable will be based on the General Conditions of Contract for Construction Works, Third

Edition (2015).

The Contractor will be responsible to attend on all sub-contractors and will coordinate the provision of

fixed performance guarantees from all the relevant sub-contractors.

The direct payment method of payment to sub-contractors by the Employer is allowed if so requested on

the cover page of a payment certificate, submitted to the Employer by the contractor, these payments

will be done directly to the suppliers and the remainder of the certificate to the main contractor.

Commented [PM1]: There are already Subcontractors

from Phase 1A

Commented [J2]: Yes but they remain responsible for their

small designs they undertake.


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C3.3 Construction

C3.3.1 Work Specifications

The standard specifications for construction will be based on the SANS 1200 Standardised

Specifications.

Variations and additions to the standard specifications will be specified in the subcontracts that will

govern the civil engineering-, electrical engineering, and mechanical engineering works.

C3.3.2 Plant and materials

All materials shall comply with the requirements of the South African National Standards, and shall bear

their official standardisation mark. Where a SANS standard does not exist for a certain material, or a

material does not bear the official standardisation mark, the Project Engineer’s approval of such material

must be gained before the use thereof.

C3.3.3 Construction Equipment

All equipment on site shall be in a good working order, and in such a condition that it can achieve

production rates which are typical of the industry standards. Where any equipment, in the opinion of the

Project Engineer, is substandard or breaks down frequently to such an extent that it affects the progress

on the project, the Project Engineer will instruct the Contractor and / or his Sub-contractors to replace

such equipment.

C 3.3.4 Existing Services

The Contractor and his Sub-contractors shall carry out all his operations without encroaching on,

interfering with, trespassing on, or damaging adjoining lands, building properties, roads, structures,

places and things in the vicinity of the Works, and he shall free and relieve the Employer of any liability

that may be incurred in consequence of his failure to do so.

The services existing on the site will be shown on the drawings and pointed out on site by the Employer

and, where necessary, the relevant other Local Authority. No excavation work will commence unless a

representative of the Employer has been requested to point out existing services in the area under

construction. Written confirmation of services that have been pointed out by the Employer shall be

obtained by the Contractor. The same shall apply to all other services in the area i.e. Telkom, etc..

Services not pointed out shall be repaired by the Employer at his own cost.

C 3.3.5 Site Establishment

The Employer will provide connection points for potable water-, sanitation- and electricity supply. The

Contractor and / or his Sub-contractors will be responsible for the cost of connection and consumption,

as will be arranged amongst themselves.

The Employer will point out the position of the Contractor’s Camp which will be within 2 km of the Site.

The office facilities that shall be provided by the respective Sub-contractors at the Contractor’s Camp

shall be sufficient to perform administrative functions and to have Site Meetings. The Contractor and his

Sub-contractors will coordinate their employees’ housing and transportation, storage facilities, vehicle

access and parking as well as security.

The Contractor and his Sub-contractors will, in addition:

use commercial laboratories that are SANS accredited for the verification of the quality of specific

construction materials;

coordinate one name board to display the required information of the project; and

coordinate the survey and setting out of the works.


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C3.3.6 Site Usage

The Project Engineer and Contractor will coordinate the following issues surrounding Site Usage with

the Sub-contractors in the respective contract documents:

Ground and access to the works

The Sub-contractors shall, where necessary on or adjacent to roads which carry traffic, provide all the

necessary barricades and signs in accordance with the stipulations of the South African Road Traffic

Signs Manual.

The Sub-contractors shall further ensure that all public roads that are used for access to the site are kept

free of debris at all times and shall also take adequate measures to ensure that dust is kept to an

acceptable level. The term “acceptable” is to be deemed as acceptable to the Project Engineer.

Care, damage and protection

The Sub-contractors shall at their own cost make full provision for all watching and lighting necessary

for the protection of all persons, animals, vehicles, etc., from injury by reason of the Works. They will

provide ample warning signs, guard rails, etc., around open excavations, stacks of materials, excavated

material, debris or the like, and will be held liable for all claims made upon himself or upon the Employer

by reason of his neglect of all such precautions and provisions.

During the periods of construction of the Works and the repair of defects, the Sub-contractors shall, at

their own cost, to the satisfaction of the Project Engineer, the Employer and the relevant Local Authority,

take sufficient and adequate measures to avoid interrupting the use of all roads, footpaths, water

courses, drains, pipes, telephones, electric wires and cables, premises, places and works, public or

private, which may in any way be interfered with by the operations; and shall also afterwards permanently

restore all structures and everything which may have been temporarily displaced or otherwise interfered

with, without additional charge beyond the allowances in their respective subcontract prices.


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Survey beacons

The Sub-contractors shall take care to safeguard any permanent survey beacons such as erf boundary

pegs and reference beacons. In the event that they disturb any such pegs and beacons, they shall have

them replaced at their own cost by a registered Land Surveyor.

The Sub-contractors shall provide the Project Engineer with written confirmation from the Land Surveyor

that they have replaced the relevant beacons. The Sub-contractors’ attention will be drawn to article

35(i) of the Land Surveying Act No. 9 of 1927 (as amended) in this regard.

Blasting

As the construction takes place within a built up area, extreme care is to be taken during any blasting operations. No blasting shall be permitted without prior written consent from the Project Engineer. Written as well as verbal notice will be given to all house owners in the affected area 24 hours prior to the blast being set off, and the Sub-contractors shall survey of all the houses (internal and external) in the area prior to blasting. A full daily report of all blasting operations (in duplicate) must be completed by the Sub-contractors and shall, amongst others, at least contain the following information:

Date and time of each blast;

Number of holes;

Charge per hole; and

Use of relays etc.

This report must be submitted to the Project Engineer on a weekly basis and must be countersigned by the Project Engineer. The Sub-contractors shall note that he shall not use or permit any person to use an explosive powered tool unless:

it is provided with a protective guard around the muzzle end, which effectively confines any flying

fragments or particles; and

the firing mechanism is so designed that the explosive powered tool will not function unless:

o it is held against the surface with a force of at least twice its weight; and

o the angle of inclination of the barrel to the work surface is not more the 15 degrees from a

right angle.

Protection of existing vegetation

Before any tree is cut down and removed from the Site, the Sub-contractors shall confirm the necessity of such action with the Project Engineer or the Contractor.

Access to individual erven

Access to all public and private property must be maintained at all times. Where trenches cross the access point to any property, the Sub-contractors shall arrange adequate and safe vehicular and pedestrian crossings over the trenches. The Project Engineer must approve the method of providing access before any excavation commences.

Use of construction vehicles and equipment

The Sub-contractors shall ensure that all construction vehicles and mobile plants:

are of an acceptable design and construction;

are maintained in a good working order;


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are used in accordance with their design and the intention for which they were designed, having due

regard to safety and health;

are operated by workers who:

o have received appropriate training and been certified competent and been authorised to

operate such machinery; and

o are physically and psychologically fit to operate such construction vehicles and mobile plant by

being in possession of a medical certificate of fitness;

are operated by competent persons knowledgeable of the dangers relating to the movement of

vehicles and plant, in order to ensure their continued safe operation;

are prevented from falling into excavations, water or any other area lower than the working surface

by installing adequate edge protection, which may include guardrails and crash barriers;

where appropriate, are fitted with structures designed to protect the operator from falling material or

from being crushed should the vehicle or mobile plant overturn;

are equipped with an electrically operated acoustic signalling device and a reversing alarm; and

are on a daily basis inspected prior to use, by a competent person who has been appointed in writing

and the findings of such inspection is recorded in a register.

In addition:

no person rides or be required or permitted to ride on any construction vehicle or mobile plant other

than in a safe place provided thereon for that purpose;

every construction site is organised in such a way that, as far as is reasonably practicable,

pedestrians and vehicles can move safely and without risks to health;

the traffic routes are suitable for the persons using them, sufficient in number, in suitable positions

and of sufficient size;

every traffic route is, where necessary indicated by suitable signs for reasons of health or safety;

bulldozers, scrapers, loaders, and other similar mobile plant are, when being repaired or when not

in use, fully lowered or blocked with controls in a neutral position, motors stopped and brakes set;

whenever visibility conditions warrant additional lighting, all mobile plant are equipped with at least

two headlights and two taillights when in operation; and

when workers are working on or adjacent to public roads, reflective indicators are provided and worn

by the workers.

C3.3.7 Permits and Way leaves

The Employer will be responsible for the application and maintenance of the Construction Work Permit in terms of Occupational Health and Safety Act, 1993 and the Construction Regulations, 2014. The Contractor and his Sub-contractors will be responsible for the application and maintenance of any permits and / or wayleaves that may be required by the relevant regulatory authorities affected by the construction of the works. This includes any permits for gravel prospecting and extraction that shall be applied and obtained from the relevant authority for the purposes of securing borrow pits.

C3.3.8 Change in Works

The Project Engineer may, from time to time, by order in writing without in any way vitiating the Contract or giving to the Contractor any claim for additional payment, require the Contractor to proceed with the execution of the works in such order as in his opinion may be necessary, and may alter the order of, or suspend any part of the Works at such time and times as he may deem desirable, and the Contractor and his Sub-contractors shall not, after receiving such written order, proceed with work ordered to be suspended until they shall receive a written order to do so from the Project Engineer. Where the work must of necessity be carried out in conjunction with work of other Contractors, or with that of the Employer, it shall be co-ordinated and arranged in such a manner as to interfere as little as possible with the progress of such other work so as to offer every reasonable facility to other Contractors or to employees of the Employer.


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C3.4 Management

C3.4.1 Setting out of the works

Generally, the positions of the works have been fixed on the plans according to the existing stand

boundaries. The Project Engineer is to approve all setting out prior to commencement of excavation.

C3.4.2 Excavation of works & safety

The Contractor and his Sub-contractors shall ensure that all excavation work is carried out under the

supervision of a competent person who has been appointed in writing. The Contractor and his Sub-

contractors will evaluate, as far as is reasonably practicable, the stability of the ground before excavation

works begin and they shall not permit any person to work in an excavation which has not been adequately

shored or braced.

The Contractor will cause convenient and safe means of access to every excavation area in which people

are required to work and such access shall not be further than 6m from the point where any worker within

the excavation is working.

The Contractor and his Sub-contractors must ascertain as far as is reasonably practicable, the location

and nature of electricity, water, gas or other similar services which may in any way be affected by the

work to be performed. He shall, before the commencement of excavation work that may affect any such

service, take the necessary steps safeguard all persons involved.

The Contractor and his Sub-contractors shall ensure that excavations accessible to the public, or which

is adjacent to public roads or thoroughfares, or which may endanger the safety of people are:

adequately protected by a barrier or fence of at least one metre in height and as close to the

excavation as is practicable; and

provided with warning illuminates or any other clearly visible boundary indicators at night or when

visibility is poor.

The Contractor and his Sub-contractors shall position warning signs next to excavations within which

persons are working or carrying out inspections or tests.

C3.4.3 Inspection by Project Engineer

No stage of construction shall be proceeded with until the Project Engineer has examined and approved

the previous stage. If any work is covered or hidden from view before the Project Engineer has inspected

same, the Contractor and his Sub-contractors shall at their own cost open the covered work for

inspection, and shall also be responsible for making good any work damaged by such uncovering.

C3.4.4 Employment of local labour

It is specifically required that the Contractor and his Sub-contractors adhere and apply Labour Intensive

Construction (LIC) principles as far as possible. In this instance the following procedures must be

followed:

All labour is to be sourced from the Local Municipal area - the Contractor and his Sub-contractors

may only import key personnel from elsewhere.

The fixed rate for the appointment of local labour will be a minimum as specified by law and shall be

payable by the Contractor and/or his Sub-contractors on (at least) a fortnightly basis.

The Contractor’s and his Sub-contractors’ will be notified to consult the “Bargaining Council for the

Civil Engineering Industry: Wage and Task Grade Collective Agreement” published in Government

Gazette No: 39294 on 16 October 2015, or any similar recent release thereof.

A Monthly labour report on all local labour i.e. payments and labour days should be submitted to the

Project Engineer at the end of each month in order for the Project Engineer to submit a report to the

Employer.


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C3.4.5 Site Meetings

Monthly site meetings shall be held with the Employer, the Contractor and / or his Sub-contractors, any

additional representatives, the CLO, the Project Engineer and Project Engineer’s Representative. During

this meeting the technical, administrative and managerial issues pertaining to the project will be

discussed. Any form of action to be taken will be recorded on the minutes and distributed for attention

by a set date and person; or followed by a formal instruction and / or correspondence.

C3.4.6 Daily Records

Daily records of resources (equipment and people employed) must be kept and must be available on

site at all times. These records will include i.e. site instruction book, site diary, site visit register,

contractual documentation and minutes of all project meetings. Labour information shall be kept updated

at all times.

C3.4.7 Compliance with applicable laws

The Contractor and his Sub-contractors shall, in performance of the Contract, comply with all applicable

laws, regulations and statutory provisions and agreements, and shall in particular, on the request of the

Project Engineer, provide proof that he has complied therewith with regard to amongst others:

Wages;

Conditions of work; and

Safety.

C3.4.8 Clearance of site

On the Due Completion Date, the Contractor and his Sub-contractors shall clear away and remove from

the site all construction equipment, surplus materials, rubbish and temporary works of every kind and

leave the whole of the site and the works clean and in a safe condition.

All streams and watercourses (where applicable) shall be cleaned and restored to the condition as at the

commencement of the project. If the Contractor and his Sub-contractors does not comply with this

requirement within a reasonable time the stipulations of the General Conditions of Contract shall be

applied.

C3.4.9 Construction Program

The Sub-contractors shall submit their construction programmes to the Contractor, which shall keep and

maintain an overall Construction Programme of the Works. The Contractor will coordinate with his Sub-

contractors any changes, additions and details as required during the run of construction and ensure

that the Construction Programme reflects the correct information and remains relevant to the project.

The Contractor shall coordinate any relevant changes as soon as it occurs to the Project Engineer.

C3.4.10 Drawings

On commencement the Project Engineer will provide the Contractor and his Sub-contractors with two

full sets of A1 sized drawings and one set of A3-sized drawings, as well as instructions for

commencement of the works.

One set of A1 drawings shall be used exclusively for the recording of as-built information by the relevant

contractors. Only dimensions, positions, levels, co-ordinates etc. that change from the original values,

will be required to be entered on these drawings. These drawings, fully marked up, will be handed to

the Project Engineer at the issue of the Certificate of Completion, which will not be issued until the as-

built information has been received.

Any additional copies of these drawings may be issued by the Project Engineer upon request by the

Contractor. Expenses in this regard will be charged to the Contractor.


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C3.5 Health and Safety

C3.5.1 Health & Safety Issues

All work is to be carried out in accordance with the Occupational Health and Safety Act and Regulations

(Act 85 of 1993) (a copy of which must be kept on site), the Explosive Material Act of (Act 26 of 1956),

the Minerals Act of 1991, and the Factories Machinery and Building Work Act (No 22 of 1941).

The Contractor’s and his Sub-contractors’ notice is drawn to the stipulations of the Construction

Regulations 2014, a regulation of the Health and Safety Act 1993 (Government Gazette No 10113 of 07

February 2014). The construction regulation will be applied vigorously on the project.

The Contractor and his Sub-contractors to be appointed must have made provision for the cost of health

and safety measures during the construction process, and must have the necessary skills, competencies

and resources to carry out the work safely. A proper Safety Plan is to be submitted by the Contractor

and a copy thereof is to be made available to all applicable appointed labourers and permanent workers

on this project.

The Contractor is to ensure that the legal compliance for the Health and Safety issues are in place.

Audits will be carried out to ensure that the Contractor and his Sub-contractors are registered and in

good standing with the Workmen’s Compensation Fund and that the Contractor and his Sub-contractors

has affected insurance indemnifying the Employer against penalties levied upon the Employer due to the

acts of omissions of the Contractor and his Sub-contractors in failing to comply with the provisions of the

OHS Regulations.

A compliance audit may be carried out to ensure that the Contractor and/or his Sub-contractors has

appointed a part-time competent person in writing to deal with the issues of the OHS and that a risk

assessment has been conducted and a copy of the Safety Plan is on site before any work commences.

Operational audits will be carried out on the following important issues:

That the Safety Plan is on site at all times;

That the Contractor’s Safety file is on site at all times;

That the Safety Officer is on site at a part-time basis;

That Safety Meetings are conducted as per the Safety Plan;

That employees are working under safe conditions;

That the public is not placed in danger; and

That there is no harm to the environment.

C3.5.2 Accommodation of traffic

It is expected of the Contractor and his Sub-contractors to ensure that the free flow of traffic is possible

throughout the construction period. The Contractor and his Sub-contractors shall provide all necessary

barricades, signs and lighting in accordance with the stipulations of the South African Road Signs Traffic

Manual, and the Protective Services of the Local Municipality. All work is to be to the satisfaction of the

Project Engineer.

C3.5.3 Reporting of accidents

In addition to any statutory regulations, the Contractor shall, as soon as practicable, report to the Project

Engineer every occurrence on the Works or the site causing damage to property of injury of death of

persons. If required by the Project Engineer, the Contractor will submit a report in writing to the Project

Engineer within 48 hours of such requirement setting out full details of the occurrence.


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The Project Engineer shall have the right to make any enquiries either on the site or elsewhere as to the

cause and results any such occurrence and the Contractor shall make available to the Project Engineer

the necessary facilities for carrying out such enquiries.


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C3.6 Project Specification

The Project Specification forms an integral part of the subcontracts and supplements the standard

specifications listed in Part C3.2 Construction under Item C3.2.1 Work Specifications. The Project

Specification is made up of three portions as indicated here below.

General / Standard Specifications

This portion of the Project Specification contains general descriptions of the works, the site and the

requirements to be met. The standard specifications have been written to cover all phases of work

normally required and may cover items not applicable to this particular contract.

Amendments to General / Standard Specifications and Additional Specifications

This portion of the Project Specification contains relevant information pertaining to choices and

alternatives provided for in the Standard Specifications i.e. choices of materials or construction methods.

It also contains some additional specifications and amendments to the Standard Specifications required

for this particular contract.

The number of each clause and each payment item in this portion of the Project Specifications consists

of the prefix PS followed by a number corresponding to the number of the relevant clause or payment

item in the Standard Specifications. The item number of any new clause or payment item (that does not

form part of an existing clause or a payment item in the Standard Specifications) is also prefixed by “PS”

followed by a new number. The new numbers follow on the last clause or item number used in the

relevant Section of the Standard Specifications.

Particular Specifications

This portion of the Project Specification contains particular specifications applicable only to this project

and consists of the prefix P followed by alphabetical numbering.

Discrepancy between specifications

In the event of any discrepancy between a part or parts of the Standard- or Particular Specification and

the Project Specification, the Project Specification shall take precedence. In the event of any

discrepancy between the Specifications and the Drawings and / or the Bill of Quantities, the discrepancy

shall be resolved by the Project Engineer before the execution of the work under the relevant item.

Numbering reference

Where, in the Bill of Quantities, an item from a particular Section of the Standard Specifications is used

in another Section, the item number of the source Section is retained but prefixed by the number of the

Section where the item is used, (e.g. Item 61.03 used in Sect. 22, will be 22/61.03 which means that the

provisions of Section 61 in respect of that item remain valid although the item is used in Section 22). This

applies to new items introduced in the Project Specifications for a specific Section but used in another

Section.

C3.7 DETAILS OF RELEVANT CIVIL ENGINEERING PROJECT SPECIFICATIONS

C3.7.1 General / Standard Specifications

The General / Standard Specifications shall be Works-specific and shall be detailed in the subcontracts that the

Contractor will enter into with his relevant Sub-contractors.


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C3.7.2 Amendments to General / Standard Specifications and Additional Specifications

The Amendments to the General / Standard Specifications and Additional Specifications shall be Works-specific

and shall be detailed in the subcontracts that the Contractor will enter into with his relevant Sub-contractors.

C3.7.3 Particular Specifications

The Particular Specifications shall be Works-specific and shall be detailed in the subcontracts that the Contractor

will enter into with his relevant Sub-contractors.


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Part C4: Site Information

C4.1 Locality Plan

C4.2 Project Drawings


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C4.1 Locality Plan


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C4.2 Project Drawings

No project drawings shall be provided by the Employer.


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ANNEXURE A:

Project Programme


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ANNEXURE B:

Extension of Time for Practical Completion of the Permanent Works