Kagiso Ext 13 Project Charter -Project Charter 02.09.2014

PREPARED FOR: WATER AND SANITATION, MOGALE CITY LOCAL MUNICIPALITY PO BOX 94 KRUGERSDORP, 1740 TEL: +27 (0)11 668 0724 FAX: +27 (086) 6922903

PREPARED BY: MORAD CONSULTING (PTY) LTD 274 VOORTREKKER ROAD NOORDHEUWEL, 1739 TEL: +27 (0) 11 954 3835 FAX: +27 (0) 11 954 6565

MOGALE CITY LOCAL MUNICIPALITY

KAGISO EXT 13 WATER PIPELINE REPLACEMENT, 22KM,75MM, UPVC PROJECT

PROJECT CHARTER/SCOPE BRIEF/BUSINESS PLAN

I (W&S) 04/2015

AUGUST 2014

GAUTENG PROVINCE

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Contents

1. EXECUTIVE SUMMARY ........................................................................................................................ 4

2. BACKGROUND AND PROBLEM STATEMENT .............................................................................. 5

3. OUTLINE BUSINESS CASE ................................................................................................................. 5

5. PROJECT SCOPE .................................................................................................................................. 6

6. REGULATORY REQUIREMENTS ....................................................................................................... 7

6.1 Environmental Impact Assessment .......................................................................................................... 7

6.2 Geotechnical Studies ................................................................................................................................ 7

7. CONSTRAINTS AND ASSUMPTIONS ............................................................................................... 7

7.1 Physical Constraints .................................................................................................................................. 7

7.2 Financial Constraints .......................................................................................................................... 8

8. STAKEHOLDERS AND COMMUNICATION ..................................................................................... 8

9. PROJECT MANAGEMENT TEAM STRUCTURE ............................................................................. 8

10. TIME FRAME ....................................................................................................................................... 9

11. PROJECT FINANCES ...................................................................................................................... 9

11.1 Professional Fees .................................................................................................................................... 9

11.2 Cost Estimate and Work Breakdown Structure .................................................................................... 11

11.3 Cash Flow Projection ............................................................................................................................ 12

12. PLACES OF WORK ......................................................................................................................... 12

13. SITE CLEARANCE ........................................................................................................................... 12

14. DELIVERABLES ............................................................................................................................... 13

15. MILESTONES .................................................................................................................................... 13

16. SUCCESS CRITERIA ....................................................................................................................... 14

17. REPORTING REQUIREMENTS AND MEETING SCHEDULE ................................................. 14

18. GUIDELINES AND STANDARDS .................................................................................................. 15

19. QUALITY ASSURANCE AND CODE OF CONDUCT ................................................................ 15

20. RISK MANAGEMENT ...................................................................................................................... 16

20.1 Health and Safety Risks ........................................................................................................................ 16

20.2 Financial Risks ....................................................................................................................................... 16

21. PROJECT APPROVAL REQUIREMENTS ................................................................................... 16

22. PROJECT SPONSOR ...................................................................................................................... 16

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23. ACCEPTANCE .................................................................................................................................. 17

Table of Tables

Table 1: (Source: Extract from Mogale City Local Municipality Strategic Plan 2012-2017) ............................... 5

Table 2: (Source: Extract from Mogale City Local Municipality Strategic Plan 2014-2018) ............................... 5

Table 3: Project Management Team Structure .................................................................................................. 8

Table 4: Time Frames Related to the Project ..................................................................................................... 9

Table 5: Professional Fees ................................................................................................................................ 10

Table 6: Cost Estimate and Work Breakdown Structure .................................................................................. 11

Table 7: Cash Flow Projection .......................................................................................................................... 12

Table 8: Reporting Deliverables ....................................................................................................................... 13

ANNEXURE A: Appointment Letter

ANNEXURE B: Project Inception Meeting Minutes

ANNEXURE C: Fee Proposal

ANNEXURE D: Project Program

ANNEXURE E: Water Balance Results

ANNEXURE F: Tables from MCLM Strategic Plan

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1. EXECUTIVE SUMMARY

MORAD Consulting Engineers was appointed by Mogale City Local Municipality for the

Kagiso Ext 13 Water Pipeline Replacement Project. This Project Charter forms part

the Consultants appointment and covers the strategy for the planning, designing,

tender documentation and contract administration of the water pipelines replacement

in Kagiso Ext 13 as per the subject project requirements.

Mogale City Local Municipality is experiencing unaccounted for water losses in most of

its areas including Kagiso Ext 13. Morad did a water balance exercise in Mogale City

to establishing extend of water loses. The results showed losses of up to 28.8% for the

year 2011. The Municipalitys 2012-2017 and 2014-2018 strategic plans also indicate

water losses of 31% and 33% respectively. The ultimate goal of Municipality strategic

plan is to curb water losses to 15% at most.

To achieve these strategic goals, Mogale City Local Municipality assigned Morad

Consulting the Kagiso Ext 13 water pipeline replacement project.

The project comprises of the elimination of the 110mm, 90mm and 75mm diameter

Asbestos mid-block lines and the installation of 2700m of 110mm uPVC pipe,

7780m of 90mm uPVC pipe and 9120m of 75mm uPVC pipe on the Municipal

servitude. The total project cost estimate including VAT is R26 459 720.39.

The allocated budget for the project during this financial year is R7 652 1736.00, all

inclusive. Therefore, we recommend that the project be executed in phases, with the

first phase having 1400m of 90mm Dia uPVC and 1600m of 75mm uPVC pipes to be

laid for 398 stands. The total project cost estimate for the construction of this phase

would be R6 272 681.29 including contingencies and VAT. The professional fees

would be R1, 377,391.14 including VAT. The duration of the construction will be 6

months.

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2. BACKGROUND AND PROBLEM STATEMENT

Morad undertook a water balance exercise in Mogale City with the view of establishing

the extend of water loses in the area. The water balance results showed high water

loses of up to 28.8% for the year 2011. The Municipalitys 2012-2017 strategic plan

also showed that for the year 2011/2013, the losses had increased to about 31%.

Furthermore, the 2014-2018 strategic plan indicates that the losses have further

increased to 33% at this point in time. The results of the water balance exercise and

the tables extracted from the Municipality strategic plans are attached in appendix E

and appendix F respectively.

Amongst other mitigation measures that could be done, Morad recommended pipe

replacement of the old class 9 AC pipes with class 12 uPVC pipes.

3. OUTLINE BUSINESS CASE

According to the Municipalitys 2014-2018 strategic plan on how to ensure quality

service delivery, at this point in time, Mogale City water los is sitting at 33%. The

previous year it was sitting on 31%. This shows a gradual increase in water losses.

The MCLM Strategic Plan, strategic goals for 2012-2017 and 2014-2018 are as

follows;

Strategic Objective

Performance Indicator

Requirement

Baseline/Current

Target 12/13

Target 13/14

Target 14/15

Target 15/16

Target 16/17

Water (Urban and peri-urban)

Potable water loss(%) (norm 15)

15 31 25 20 18 15 15

Table 1: (Source: Extract from Mogale City Local Municipality Strategic Plan 2012-2017)

Strategic Objective

Performance

Indicator

Requirement

Baseline/Current

Target 13/14

Revised Target 13/14

Target 14/15

Target 15/16

Target 16/17

Target 17/18

Water (Urban and peri-urban)

Potable water loss(%) (norm 15)

15 33 20 30 25 20 15 15

Table 2: (Source: Extract from Mogale City Local Municipality Strategic Plan 2014-2018)

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To achieve these strategic goals, Mogale City Local Municipality assigned Morad

Consulting the Kagiso Ext 13 water pipeline replacement project in-order to assist in

coming up with an engineering sound solution to curbing these water losses.

4. PROJECT OBJECTIVES AND DESIRED OUTCOME

The major objective of this project is to reduce the unaccounted for water losses

in the Municipality. The desire outcome is to have a new distribution network with

class 12 uPVC pipes replacing the class 9 AC pipes which are rotten and prone

to bursting.

The Municipality intends the project to be ready for tender within the current financial

year ending June 2014.

5. PROJECT SCOPE

The project scope with regard to design and tender documentation is as follows;

Conduct feasibility studies

Prepare concept design report and drawings for the project.

Do preliminary design for the water pipeline replacement.

Preparation of a preliminary cost estimate for the project.

Provide technical support to the Municipality regarding relevant studies.

Prepare detail design report and drawings.

Prepare detail cost estimate

Prepare tender documents and drawings and assist with procurement.

Contract Administration and Inspection

Prepare close our report.

The project scope with regard to construction is as follows;

Lay 1400m of 90mm Dia class 12 uPVC and 1600m of 75mm class 12

uPVC pipes.

Prepare concept design report and drawings for the project.

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Install 65 isolation valves

Install 19 pipe bends

Install 20 reducers

Install 21 fire hydrants

Provide approximately 423 house connection and accessories

Lay 21550m of 50mm dia HDPE stand pipes.

6. REGULATORY REQUIREMENTS

6.1 Environmental Impact Assessment

The project comprises of the elimination of the 110mm, 90mm and 75mm diameter

Asbestos mid-block lines and the installation of 2700m of 110mm uPVC pipe,

7780m of 90mm uPVC pipe and 9120m of 75mm uPVC pipe on the Municipal

servitude.

This project is not listed under the Environmental Impact Assessment Regulations

Listing Notice 1 of 2010, hence there is no need to conduct an EIA.

6.2 Geotechnical Studies

No Geotechnical studies will be required for this pipe replacement project.

7. CONSTRAINTS AND ASSUMPTIONS

7.1 Physical Constraints

The constraints and assumptions pertaining to this project area;

It is assumed that the roads that will be crossed during laying of the pipes

are municipal roads and that permission to cross will be obtained.

The existing distribution network was mid-block. As a result the stand

connections points are on the side of the mid-block. With the new

position of the pipes along the roads it means the stand connections are

now on the opposite side of the stands. An extension pipe will have to be

installed from the new connection point to the old connection point. This

will take a huge portion of the project budget.

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7.2 Financial Constraints

The allocated budget for the project during this financial year is R7 652

1736.00, all inclusive. With this budget, only 1400m of 90mm Dia uPVC and

1600m of 75mm uPVC pipes can be laid for 398 stands, instead of the required

2700m of 110mm uPVC pipe, 7780m of 90mm uPVC pipe and 9120m of

75mm uPVC pipe. This means the project has to be done in phases with the

first phase being funded by the R7, 652 173.00 available.

8. STAKEHOLDERS AND COMMUNICATION

The distribution network will be owned by Mogale City Local Municipality

(MCLM) and will be used to supply potable water to the consumers in the

Kagiso Ext 13 area. The reservoirs are owned by MCLM as well. Hence

the stakeholders are the following:

The community in the Kagiso Ext 13 area, represented by the Ward

Counsellors of the wards that fall wholly or partially within the supply zone

of the reservoir.

Mogale City Local Municipality, represented by the Municipal Manager,

Mr Dan Mashitisho.

9. PROJECT MANAGEMENT TEAM STRUCTURE

Project Team Role Project Team

Member(s) Organization Email

Executive Manager: Infrastructure Services

Mpako Dennis Mokotedi

Mogale City Local Municipality

Manager: Water & Sanitation

Sandile Mbanjwa

Mogale City Local Municipality

[email protected]

Project Executive Collin Radebe Morad Consulting [email protected]

Project Engineer Michael Benhura

Morad Consulting [email protected]

Table 3: Project Management Team Structure

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Additional team members will be introduced as required for the successful completion

of the project. Only skilled and experienced staff, professionally registered where

appropriate, will be assigned to the project.

10. TIME FRAME

The following time frames will apply to the project;

Activitie

s

July 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014 Jan 2015 Feb 2015 Mar 2015 Arp 2015

Inceptio

n

Concept

and

Viabilit

y

Design

develop

ment

Docume

ntation

and

Procure

ment

Workin

g

drawing

s

Constru

ction

Stage

Close

Out

Table 4: Time Frames Related to the Project

Legend:

Planned Tasks

Completed Tasks

11. PROJECT FINANCES

11.1 Professional Fees

As per Mogale City Local Municipality appointment letter to Morad Consulting

Engineers, the appointment is in line with Morads existing Contract

COO(PMU)01/2011 with Mogale City Local Municipality.

Fees will be calculated according to the fee scales agreed in the above contract, for

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the following stages as defined in the Engineering Professions Act (Act 46 of 2000):

MOGALE CITY LOCAL MUNICIPALITY

(B) PROFESSIONAL SERVICES PROVISION FEES - KAGISO EXT 13 ZONE 28

1.0 PROFESSIONAL FEES

ITEM DESCRIPTION % AMOUNT

1.1 Inception 5 R 43,157.27

1.2 Concept and Viability 25 R 215,786.34

1.3 Design Development 25 R 215,786.34

1.4 Documentation and Procurement 15 R 129,471.80

1.5 Contract Administration and Inspection 25 R 215,786.34

1.6 Close Out Report 5 R 43,157.27

Sub-Total Excl. VAT (Professional Fees) 100 R 863,145.34

2.0 ADDITIONAL FEES

ITEM DESCRIPTION RATE QTY AMOUNT

2.1 Survey R - 1 R -

2.2 Geotechnical Investigation R - 1 R -

2.2 Full Time Resident Engineer R 15,000.00 6 R 90,000.00

Sub-Total Excl. VAT (Additional Fees) R 90,000.00

3.0 DISBURSEMENTS

ITEM DESCRIPTION RATE QTY AMOUNT

3.1 Travelling R 5.72 3000 R 17,160.00

3.2 Reporting R 1,500.00 8 R 12,000.00

3.3 Health and Safety R 30,000.00 6 R 180,000.00

3.4 Copies and Printing

3.4.1. A4 Black and White R 0.93 8000 R 7,440.00

3.4.2 A4 Colour Pages R 12.71 500 R 6,355.00

3.4.3 A4 Typing R 47.67 500 R 23,835.00

3.4.4 A3 Black and White R 1.79 20 R 35.80

3.4.5 A3 Colour R 16.46 20 R 329.20

3.4.6 A3 Typing R 47.67 10 R 476.70

3.4.7. A4 Binding R 27.32 20 R 546.40

3.4.8 A1 Printing R 86.43 80 R 6,914.40

Sub-Total Excl. VAT (Disbursements) R 255,092.50

TOTAL (Excl. 14% VAT) R 1,208,237.84

Add 14% VAT R 169,153.30

TOTAL (Incl. 14% VAT) R 1,377,391.14

Table 5: Professional Fees

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11.2 Cost Estimate and Work Breakdown Structure

Description Cost

Site Clearance R 235 500.20 Trench excavation

R 1 242 280,00

Provision for Pipe Bedding R 594 400.00 Supply and construction of 1600 meters long 75 mm uPVC pipelines and accessories.

R 160 000.00

Supply and construction of 1400 meters long 110 mm uPVC pipelines and accessories.

R 182 000.00

Installation of 65 isolation valves R 139 000.00

Installation of 19 bends R 7 635.00

Installation of 30 tees R 29 300.00

Installation of 20 reducers

R 11 200.00

Installation of 21 fire hydrants within the town, Installation of thrust blocks

R 161 140.00

R2 240.oo

Provide approximately 423 house connections and accessories, R 501 960.00 Provide 21 550m of 50mm dia HDPE pipe, R 754 250.00 Provision of connection to existing network, R 20 000.00

Provisional amounts. R 625 500.00

Preliminary & Generals R 605 955.75

Sub-Total 1 Cost Estimate for Construction Works R 5 272 540.75

Allow for Contract Price Escalation to be claimed in accordance with the GCC 2010 (2nd Edition) Including Contingencies @5%

R 263,6272.04

Total Cost Estimate for Construction Works (Excl. VAT) R 5 536 167.79

Professional Fees Estimate, including Survey, Geo-tech, etc. R 1,208,237.84

Total Project Cost Estimate (Excl. VAT) R6,744,405,63

VAT R 738,155.71

Total Project Cost Estimate (Incl. VAT) R 7,651,714.63

Table 6: Cost Estimate and Work Breakdown Structure

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11.3 Cash Flow Projection

Period Payment Cumulative Total

July 2014 R 172,197.50 R 172,197.50

Aug 2014 R 319,795.35 R 491,992.85

Sep 2014 R 196,797.14 R 688,789.98

Oct 2014 R 734,045.16 R 1,422,835.15

Nov 2014 R 756,845.16 R 2,179,680.31

Dec 2014 R 1,132,566.98 R 3,312,247.29

Jan 2014 R 1,171,070.65 R 4,483,317.94

Feb 2014 R 1,018,566.98 R 5,501,884.92

Mar 2014 R 1,189,088.79 R 6,690,973.71

Arp 2014 R 961,199.28 R 7,652,173.00

Table 7: Cash Flow Projection

12. PLACES OF WORK

The planning, designing, tender document and preparation for the new business

plan will be primarily carried out at the Morad Consulting Offices, at 274

Voortrekker Road, Noordheuwel. Site visits will be done to the existing

distribution network sites in Kagiso as necessary. Attendance of scheduled

meetings will be done at the offices of MCLM. Meetings with relevant

stakeholders like Rand Water and Johannesburg Water will be held at their

respective offices.

13. SITE CLEARANCE

Clearance to proceed with construction will only be given when all required approvals

and authorization have been obtained and all applicable environmental requirements

have been satisfied. Land ownership and Surveyor-General boundaries will be

confirmed where necessary.

.

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14. DELIVERABLES

The project deliverables for this pipe replacement project are as follows;

Laying of 1400m of 90mm Dia class 12 uPVC and 1600m of 75mm class

12 uPVC pipes.

Installation of 65 isolation valves

Installation of 19 pipe bends

Installation of 20 reducers

Installation of 21 fire hydrants

Providing approximately 423 house connection and accessories

Laying of 21550m of 50mm dia HDPE stand pipes.

Reporting as follows;

Deliverable Status Importance

Project Charter Finished Required

Concept Design Report and Drawings Finished Required

Preliminary Design Report and Drawings Finished Required

Detail Design Report and Drawings Started Required

Tender Documents and Drawings Started Required

Contract Administration, Inspection & Monthly Progress Reports Required

Close-out report Required

Table 8: Reporting Deliverables

15. MILESTONES

The main project milestone is the to complete the pipe replacement of the

existing AC pipes with 1400m of 90mm Dia class 12 uPVC and 1600m of 75mm

class 12 uPVC pipes by the end of this current financial year with the allocated

budget of R7 652 1736.00.

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16. SUCCESS CRITERIA

The success of the project will be measured in terms of the following criteria:

Submission of a complete design, including design report, tender drawings and

cost estimate.

Submission of complete tender documents and drawings, based on a draft

submitted to MCLM for comment.

Submission of a Close Out Report

17. REPORTING REQUIREMENTS AND MEETING SCHEDULE

During the execution of the project, regular progress meetings shall be held between

MCLM and Morad, to discuss progress and to ensure that the development of options

and solutions remains aligned with the ultimate vision of MCLM for the water supply

system as a whole.

The provisional meeting schedule allows for the following meetings:

One monthly meeting with the Executive Manager: Infrastructure Services and

the Manager: Water & Sanitation.

A biweekly meeting with the Manager: Water & Sanitation.

Other staff shall attend the meeting when required by the Manager: Water & Sanitation.

During the execution of the project, the following reports will be prepared and submitted

Concept Design Report

Preliminary Design Report

Detail Design Report

Monthly Technical Project Report

Close-out Report

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18. GUIDELINES AND STANDARDS

The design criteria, materials and methods of shall be based on the following

guidelines and standards:

The National Housing Board's: "GUIDELINES FOR THE PROVISION OF

ENGINEERING SERVICES FOR RESIDENTIAL TOWNSHIPS" Redbook

All materials and methods of not specifically listed in these guidelines shall

be in accordance with general methods of building as set out in the "SABS

STANDARD SPECIFICATIONS, STANDARDISED SPECIFICATIONS and

CODES OF PRACTICE" as applicable.

The criteria and guidelines will be from GUIDELINES FOR HUMAN AND

SETTLEMENT PLANNING AND DESIGN and DWAF GUIDELINES. The

discussions will be based on actual field investigations, review of criteria

related to the project and current design and technical manuals.

Department of Water Affairs and Forestrys: TECHNICAL GUIDELINES FOR THE

DEVELOPMENT OF WATER AND SANITATION INFRASTRUCTURE

Gauteng Department of Agriculture and Rural Development GDARD

GUIDELINES.

Additional guidelines and standards will be consulted where required. In such cases

Morad will ensure that only recognized local and international documents are used as

the basis for any analysis or design.

19. QUALITY ASSURANCE AND CODE OF CONDUCT

Morads ISO 9001-accredited Quality Assurance procedures will be adhered to during

the execution of the project.

Morad project team members will at all times conduct themselves in a professional

manner and act in accordance with the provisions of the Engineering Services Act (Act

46 of 2000).

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20. RISK MANAGEMENT

20.1 Health and Safety Risks

Since the construction will be taking place in a built up residential area, there are

safety risks due to the presents of plant and other equipment. The contract needs to

take serious safety measures so as to avoid causing any damage to property or

people in the neighborhood.

20.2 Financial Risks

There is risk that the project might not get sufficient funding in the next financial year

and this can prohibit the completion of the next phases after phase 1.

21. PROJECT APPROVAL REQUIREMENTS

All deliverables under this appointment will be submitted to the Manager: Water &

Sanitation for approval.

Each stage of the project shall be approved by the Manager: Water & Sanitation

before the next stage is commenced.

22. PROJECT SPONSOR

The project sponsor is the Mogale City Municipality, represented by the Executive

Manager: Infrastructure Services, Mr Mpako Dennis Mokotedi.

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23. ACCEPTANCE

This Project Charter prepared by Morad Consulting is based on the content of the

appointment letter dated 19 November 2013 and the discussion during the Project

Specification Meeting held on 04 July 2014 at 14H00 at the Mogale City Local

Municipality offices in President Street, Krugersdorp.

The meeting was attended by the persons identified on the Attendance Register

attached to the Minutes of the Project Inception Meeting, included in the Annexure B.

Prepared by: Approved and accepted by:

Collin Radebe, Pr. Eng. Mr Sandile Mbanjwa

Project Manager Manager: Water & Sanitation

Morad Consulting Mogale City Local Municipality

Kagiso Ext 13 Project Charter -Project Charter 02.09.2014

Documents

project scope

project finances

physical constraints

financial constraints

work breakdown structure

places of work

water pipeline replacement

morad consulting pty