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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

PREPARED FOR:
PREPARED BY:

WATER AND SANITATION, MOGALE


CITY LOCAL MUNICIPALITY

MORAD CONSULTING (PTY) LTD

PO BOX 94
KRUGERSDORP, 1740

274 VOORTREKKER ROAD


NOORDHEUWEL, 1739

TEL: +27 (0)11 668 0724


FAX: +27 (086) 6922903

TEL: +27 (0) 11 954 3835


FAX: +27 (0) 11 954 6565

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

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

Page 2 of 17

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

Page 3 of 17

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.

Page 4 of 17

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

Require
ment

Baseline/
Current

Target
12/13

Target
13/14

Target
14/15

Target
15/16

Target
16/17

Water (Urban
and periurban)

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

Performa
nce
Indicator

Require
ment

Baseline
/Current

Target
13/14

Water
(Urban
and periurban)

Potable
water
loss(%)
(norm 15)

15

33

20

Revised
Target
13/14
30

Target
14/15

Target
15/16

Target
16/17

Target
17/18

25

20

15

15

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

Page 5 of 17

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.


Page 6 of 17

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.

Page 7 of 17

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

Executive Manager:
Infrastructure Services

Mpako Dennis
Mokotedi

Mogale City Local


Municipality

Manager: Water &


Sanitation

Sandile
Mbanjwa

Mogale City Local


Municipality

sandile.mbanjwa@mogalecity.gov.za

Project Executive

Collin Radebe

Morad Consulting

collinr@morad.co.za

Project Engineer

Michael
Benhura

Morad Consulting

michaelb@morad.co.za

Email

Table 3: Project Management Team Structure

Page 8 of 17

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

Page 9 of 17

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
DESCRIPTION

ITEM
1.1
1.2
1.3
1.4
1.5
1.6

Inception
Concept and Viability
Design Development
Documentation and Procurement
Contract Administration and Inspection
Close Out Report

Sub-Total Excl. VAT (Professional Fees)

ITEM
2.1
2.2
2.2

2.0 ADDITIONAL FEES


RATE

DESCRIPTION
Survey
Geotechnical Investigation
Full Time Resident Engineer

R
R
R

%
5
25
25
15
25
5

R
R
R
R
R
R

100

15,000.00

1
1
6

3.1
3.2
3.3
3.4

Travelling
Reporting
Health and Safety
Copies and Printing
3.4.1. A4 Black and White
3.4.2 A4 Colour Pages
3.4.3 A4 Typing
3.4.4 A3 Black and White
3.4.5 A3 Colour
3.4.6 A3 Typing
3.4.7. A4 Binding
3.4.8 A1 Printing

863,145.34

AMOUNT
R
R
R

90,000.00

3.0 DISBURSEMENTS
RATE

DESCRIPTION

43,157.27
215,786.34
215,786.34
129,471.80
215,786.34
43,157.27

QTY

Sub-Total Excl. VAT (Additional Fees)

ITEM

AMOUNT

QTY

90,000.00

AMOUNT

R
R
R

5.72
1,500.00
30,000.00

3000
8
6

R
R
R

17,160.00
12,000.00
180,000.00

R
R
R
R
R
R
R
R

0.93
12.71
47.67
1.79
16.46
47.67
27.32
86.43

8000
500
500
20
20
10
20
80

R
R
R
R
R
R
R
R

7,440.00
6,355.00
23,835.00
35.80
329.20
476.70
546.40
6,914.40

Sub-Total Excl. VAT (Disbursements)


TOTAL (Excl. 14% VAT)
Add 14% VAT

TOTAL (Incl. 14% VAT)


Table 5: Professional Fees

Page 10 of 17

R
R
R

255,092.50
1,208,237.84
169,153.30

R 1,377,391.14

11.2 Cost Estimate and Work Breakdown Structure


Description

Cost

Site Clearance

R 235 500.20
R 1 242 280,00

Trench excavation
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
R 7 635.00

Installation of 19 bends
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

Page 11 of 17

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.

Page 12 of 17

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.

Page 13 of 17

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

Page 14 of 17

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).

Page 15 of 17

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.

Page 16 of 17

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.


Project Manager
Morad Consulting

Mr Sandile Mbanjwa
Manager: Water & Sanitation
Mogale City Local Municipality

Page 17 of 17