RANDWEST CITY LOCAL MUNICIPALITY

ROADS IN ZUURBEKOM (PHASE 2)

PROJECT CLOSE OUT REPORT

(T002/2016-2017)

JULY 2017

GAUTENG PROVINCE

PREPARED FOR:
PREPARED BY:

PMU, RANDWEST CITY LOCAL

MUNICIPALITY MORAD CONSULTING (PTY) LTD

PO BOX 218 274 VOORTREKKER ROAD

RANDFONTEIN, 1760 NOORDHEUWEL, 1739

TEL: +27 (0)11 278 3013 TEL: +27 (0) 11 954 3835
FAX: +27 (0)11 753 4176 FAX: +27 (0) 11 954 6565
 Table of Contents
1. EXECUTIVE SUMMARY ........................................................................................................................ 4
2. Introduction ............................................................................................................................................... 5
2.1 Background and Problem Statement ....................................................................................................... 5
2.2 Site Location ............................................................................................................................................. 5
2.3 Purpose of Project .................................................................................................................................... 5
2.4 Scope ........................................................................................................................................................ 6
3. PROJECT INFORMATION .................................................................................................................... 8
3.1 Contractual Information Contractor ........................................................................................................ 8
3.2 Project Team ............................................................................................................................................ 9
5. PROJECT RELATIONS AND CHALLENGES .................................................................................. 10
5.1 Project Relations..................................................................................................................................... 10
5.2 Project Challenges/Difficulties ............................................................................................................... 11
6. INREGULARITIES IN THE PROJECT ............................................................................................... 11
6.1 Quality Assurance ................................................................................................................................... 11
6.2 Delays Experienced................................................................................................................................. 11
6.3 Interventions from the Principle Agent .................................................................................................. 12
7. FINANCES .............................................................................................................................................. 13
7.1 Professional Fees Expenditure ............................................................................................................... 13
7.2 Contractor’s Construction Budget Expenditure ..................................................................................... 13
7.3 Total Project Expenditure ....................................................................................................................... 13
8. LESSONS LEARNT .............................................................................................................................. 14
8.1 Areas of potential improvement to be considered for future projects: ................................................ 14
8.2 The project’s biggest successes: ............................................................................................................. 14
9. ADMINISTRATIVE CLOSURE ............................................................................................................ 14
10. CONTRACT CLOSURE ................................................................................................................... 15
11. PROJECT APPROVAL REQUIREMENTS ................................................................................... 15
12. ACCEPTANCE ................................................................................................................................... 16
13. ANNEXURES ..................................................................................................................................... 18

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 ANNEXURE A: Final Bill of Quantities

ANNEXURE B: Award Letter, Variation Order, Site Minutes, Site Instructions, Site Photos

ANNEXURE C: Insurance & Guarantee

ANNEXURE D: Construction Program

ANNEXURE E: Completion Certificates

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1. EXECUTIVE SUMMARY
MORAD Consulting Engineers was appointed by RandWest City Local Municipality in
July 2016 for the preparation of the planning, design and supervision of construction of
the “ROADS IN ZUURBEKOM (PHASE 2)” at a project budget of R 6 645 826.15
(incl. vat). The appointed contractor was “NAXASERVE SHATSANE SYSTEMS
SOLUTIONS JV” at a construction amount of R 4 276 111.33 (incl. vat). The
contractual commencement date was the 16th of November 2016 and the practical
completion date was the 10th of May 2017. However, the actual practical completion
date was the 11th of July 2017 at the construction cost of R 5 131 133.60 This Project
Close Out Report forms part the Consultants’ appointment and covers the strategy for
the contract administration of the Roads in Zuurbekom (Phase 2) Project as per the
subject project requirements.

The Site handover meeting was held on the 11th of July 2017.

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2. Introduction

2.1 Background and Problem Statement

Morad undertook site investigations at Zuurbekom Roads Site with the view of
establishing the scope of work of what needed to be done. During the investigations, it
was discovered the following roads needed to be reconstructed and surfaced;

Road Name Length (m)

First Street 1000

2.2 Site Location

The site for the “ROADS IN ZUURBEKOM (PHASE 2) PROJECT” is located in
Zuurbekom in Westonaria in Rand West City Local Municipality (RWCLM) and can be
accessed via N12 and George Sa Street.

Picture 1: Locality Map for Zuurbekom Roads

2.3 Purpose of Project

To construct and surface the following roads;

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 Road Name Length (m)
First Street 1000

2.4 Scope
The work included in this contract comprises of road works, ancillary road works and
drainage work, as broadly listed below;

a) General
• Establishment of the contractor on site;
• Provision of offices, housing and laboratory for the engineer’s site staff;
• Searching, location, identification of services along the route, and relocation
of services if required;
• Traffic accommodation during construction including adjoining road
intersections. The total length of road will be open during construction phase;
• Removal of site establishment.

b) Drainage
• Road Surface Drainage;
• Connection into existing storm water network system;
• Cleaning of existing storm water drains.

c) Road Works
• Clearing and grubbing;
• Removal of topsoil, where applicable
• Compaction of the Roadbed.
• Construction of gravel subbase layers (from materials obtained from
commercial sources);
• Construction of crushed stone base layers (from materials obtained from
commercial sources);
• Construction of a bituminous surfacing
• Maintenance of public roads and accommodation of traffic during
construction

The length of the roads are as follows;

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 Road Name Length (m)
First Street 1000

d) Ancillary works
• Road Signs and Road Markings

e) Existing Services
A number of services exist in all the identified Streets. The exact location of
some services is not known and the Contractor will at all times be required to be
in contact with the relevant service owners. The positions and relocations of
services will be shown on the drawings and are based on the information
available at the time of tender; the Contractor is required to exercise extreme
caution in his construction activities until the exact positions of all services in the
vicinity have been established. It is expected however that in some cases final
decisions will have to be made on site as to the protection of services.

The project was, as far as possible, carried out using the labour-intensive construction
methods (daily rate method was used) in some potions in accordance with the
municipality policy. The Contractor recruited through respective ward councillors and
provide the supervision, administration and management required to execute the
works.

Extent of the Works

It was a specific requirement of the Employer that this Contract shall provide on-site
training, development and employment for the duration of the construction work to as
many people from the recipient community as possible not less than 20%.

This contract was labour intensive and the principles of the framework agreement
applied in terms of Special Conditions of Employment and Task based remuneration.
a) The optimum use of local labourers for sections of the works listed as labour-
intensive.
b) The maximum use of local tradesman.
c) The training of local labourers and tradesman in the execution of the work.

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 d) All local labourers and tradesmen were employed through existing
community structures and agencies. (trained labour available through
municipal database) .
e) A Community Relations Officer (CLO) was appointed from the community.

Labour intensive work comprised all the activities described in SANS 1921-5,
earthworks activities which were performed by hand, and its associated specification
data. Such works were constructed using local labourers who were temporarily
employed in terms of the scope of work.

The additional scope of work as per MCLM instruction was as follows:

• Concrete lining the storm water trapezoidal drains.

3. PROJECT INFORMATION

3.1 Contractual Information Contractor

CONTRACTOR NAXASERVE SHATSANE SYSTEM SOLUTIONS JV
DATE OF SITE HAND OVER 16 NOVEMBER 2016
CONTRACT PERIOD 5 MONTHS
CONTRACTUAL COMPLETION DATE 10 MAY 2017
EXTENSIONOF TIME
REVISED CONTRACTUAL COMPLETION DATE
ACTUAL COMPLETION DATE 11 JULY 2017
CONTRACT SUM R 4,276,111.33 (INCL VAT)
VARIATION ORDER R 855 222.27
REVISED CONTRACT SUM R 5 131 333.60
CERT NO CLAIMED TO DATE 8
AMOUNT PAID TO DATE R 4,874,766.93 (INCL VAT)

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3.2 Project Team
CLIENT
Project Team Project Team
Organization Email Tel/Cell Fax
Role Member(s)
Manager: User Rand West City tkase@westona 083715275
Themba Kase 4
Department Local Municipality ria.gov.za
011278326
Rand West City sbell@westonari
Manager: PMU Sarita Bell 8/07969539 0112783263
Local Municipality a.gov.za 44
samuel.makgato 011278326
Project Samuel Rand West City
@mogalecity.go 8/07232230 0112783263
Manager: PMU Makgato Local Municipality 77
v.za
CONSULTANT
011954383
Project collinr@morad.c
Collin Radebe Morad Consulting 5/08447887 0866357108
Engineer o.za 74
011954383
Project Michael michaelb@mora
Morad Consulting 5/08157113 0866357108
Engineer Benhura d.co.za 67

CONTRACTOR

Naxaserve
ericxaba@ymail
Project Director Eric Xaba Shatsane Systems 0646674139 0119842933
.com
Solutions JV

4. PROJECT MANAGEMENT EFFECTIVENESS

All elements of the Project Management were applied throughout the project as
required. The key project management deliverables and activities included

Deliverable Status

Project Charter Completed

Concept Design Report and Drawings Completed
Preliminary Design Report and Drawings Completed
Detail Design Report and Drawings Completed
Tender Documents and Drawings Completed
Contract Administration, Inspection & Monthly Progress Reports Completed

Close-out report Completed

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5. PROJECT RELATIONS AND CHALLENGES

5.1 Project Relations

Client Relations

The professional team and the client were consistently kept abreast of all
developments on site. Information was often requested before site meetings.

Relations between both the clients and professional team remained healthy throughout
this very challenging project despite the various setbacks.

The client’s involvement in the Project was accepted as a positive contribution to reach
certain decisions. Communication was via e-mail and telephonically whenever the
need arise.

Team Relations

The Engineer

Morad Consulting was appointed to perform the role of principle agent [PA].The PA
executed their role as appointed and carried out their duties with due care and
diligence. The PA administered the contract from planning to completion, duly making
recommendations on variation orders, extension of time claims, certifying payment
certificates and issuing the relevant completion certificates as required by the contract.

The Contractor

Naxaserve Shatsane Systems Solutions JV was appointed as the contractors on the

project. The contractor completed the projects and overcome various obstacles as set
back like extended scope of work with a limited budget, stoppage by labour
department amongst other things.

The Civil Engineer

Morad Consulting were the appointed Engineers on this project. Morad carried out
their duties with due care and diligence. Morad delivered beyond the scope of services
of their appointment, assisting the contractor with design queries and resolving issues

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 directly with the contractor. Drawings and specifications were delivered timorously and
under pressure so as to meet the information required deadlines.

5.2 Project Challenges/Difficulties

RISKS IDENTIFIED IN EXECUTING THE PROJECT

• The Roads in Zuurbekom (Phase 2) Project Site was to be done in a residential
area utilized by the public. Simultaneously carrying out the construction and using
the facilities was going to be a huge challenge in terms of OHS issues and serious
precautionary measures were taken during construction so as not to expose the
public to danger.
• Delay on the project due to stoppage by the department of labour. The Contractor
had to accelerate the progress of Works so as to achieve timeous practical
completion.
• Delay on the project because of undocumented underground existing services.
The municipality did not provide as built drawings for water, sewer and electricity.
The contractor had to expose the existing services by doing hand excavations.

6. INREGULARITIES IN THE PROJECT

6.1 Quality Assurance

Morad Team was on site as and when need ensuring that all the work being carried
out was in accordance to the design and also ensuring that water interruptions are
minimal.

They requested a quality control manual from the contractor to ensure that the
contractor kept to this as all times. However, the quality control manual was not
submitted and so Morad used their in house quality control manual. The contractor’s
workmanship was generally good on most of the scope of work.

6.2 Delays Experienced

There were several delays which were experienced on the project. Some were due to
the contractor and others were being the contractor’s control.

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 • There was a delay due to stoppage of works on site by the Department of Labor
as they were carrying out an exercise in Westonaria of checking the wage rates
paid to laborers in the whole of Westonaria. This Stoppage resulted in 3 days
being lost on the project.
• The contractor did work which was out of the scope of the work and which
constitutes a variation order as per the request of the Client. This additional work
had an impact on the Contractor’s practical completion date. However, the
Contractor expedited the Works and still managed to complete the project in time

6.3 Interventions from the Principle Agent

A number of interventions and remedial steps were initiated, implemented and
followed up upon by Morad consulting, these interventions responded predominantly to
the unforeseen problems encounter during project duration.

To name a few as outlined in detail above, the following were implemented:

• Successful completion of the project

• Interventions to save fruitless expenditures
• Empowerment of black emerging contractors
• Service delivery to the communities and surrounding neighbourhoods

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7. FINANCES
7.1 Professional Fees Expenditure
Invoice No. Amount (Inc VAT) Date
1 R 485 664.80 11-08-2016
2 R 157 988.90 22-11-2016
3 R 22 806.90 07-12-2016
4 R 48 342.38 26-01-2017
5 R 23 309.36 28-02-2017
6 R 26 787.32 28-03-2017
7 R 20 962.29 04-05-2017
8 R 140 947.81 24-05-2017
9 R 362 619.39 26-06-2017

TOTAL R 1 289 429.15

7.2 Contractor’s Construction Budget Expenditure

Claim No. Expenditure (Inc vat) Date

1 R 774 322.20 15-12-2016

2 R 227 757.99 03-02-2017
3 R 459 725.57 17-02-2017
4 R 746 580.61 15-03-2017
5 R 1 017 477.53 30-03-2017
6 R 552 704.66 12-06-2017
7 R 839 631.70 30-06-2017
8 R 256 566.68 19-09-2017

TOTAL R 4 874 766.93

7.3 Total Project Expenditure

Expenditure Type Expenditure (Inc vat)

Professional Fees R 1 289 429.15

Contractor’s Claims R 4 874 766.93

TOTAL R 6 164 196.08

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8. LESSONS LEARNT
8.1 Areas of potential improvement to be considered for future projects:
Problem Problem Description
Statement
Proper planning Inadequate Funds were
from all parties, allocated to the project. This
client, professional resulted in some of the items on
team and the the scope of work being
contractor removed and postponed to the
next phase subject to
availability of funds.
Poor project planning from the
contractor resulting in
difficulties in implementing the
project
References Recommendation
Project Charter Proper feasibility study need to be done
during the compilation of the business
plans so that the funds applied for the
implementation of the project are
aliened to the scope of work to be done
on the project.
Appointing experienced contractors
Progress Reports with clear method statements and
quality control plans for implementation
the project. Assisting the contractors
with the planning of the project.

The importance of The contractor took time to act Progress Reports
communication on the Engineer’s instructions.
The contractor did work without
inspection and approval of the
Engineer.
Proper induction to the contractor on
the communication flow on the projects.
Constant reminding of the contract on
the communication flow on the project

8.2 The project’s biggest successes:

Description Factors that Promoted this Success

Construction of and surfacing of the following

internal residential roads: Proper monitoring of the contractor’s workmanship
and strict adherence to the quality control measures.
Road Name Length (m) Providing the contractor with details and easy to
understand construction drawings.
First Street 1000

Construction of concrete lined trapezoidal drain– Proper monitoring of the contractor’s workmanship
1000m. and strict adherence to the quality control measures.
Providing the contractor with details and easy to
understand construction drawings.

9. ADMINISTRATIVE CLOSURE

Practical completion of the project was achieved on the 11th of July 2017. A practical
completion meeting was held on this day and a snag list for works completion was
compiled and given to the contractor to complete the project. The resulted in;
• The responsibility of the Works passing to the employer,
• The value of the security provided by the contractor reducing,

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 • The contractor no longer obliged to carry out any contract instruction for new
work,
• The employer entitled to possession of the Works and site,
• The principle agent having to issue a works completion list,
• The contractor no longer liable for penalties,
• The contractor becoming entitled to compensatory interest,
• The principle agent having to prepare the final account within 12 months.

The contractor achieved works completion on the 11th of September 2017. The 12
months Defects Liability Period automatically commenced on the 11th of September
2017 and will lapse on the 11th of September 2018.

The date for Final Completion will be the 11th of September 2018 and this will result
in;
• The contractor’s public liability in relation to the Works ceasing,
• The contractors’ security reduces in value but is only nullified on settlement of
the final payment certificate.
• The right related to n/s subcontractors’ guarantees, warranties or indemnities
are deemed to be ceded to the employer,
• The final payment certificate can now be issued.

10. CONTRACT CLOSURE

The contractor’s contract ended on the 11th of September 2017 when Works
Completion was achieved. The defects liability period will lapse 12 months later which
will on the 11th of September 2018.

11. PROJECT APPROVAL REQUIREMENTS

All deliverables under this appointment were submitted to the Manager: Project
Management Unit for approval.

Each stage of the project was approved by the Manager: Roads and Storm Water
before the next stage commenced.

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12. ACCEPTANCE
This Close Out Report prepared by Morad Consulting is based on the content of the
appointment letter.

Page 16 of 18
TITLE : TENDER NO: T002/2016-2017: ROADS IN ZUURBEKOM (PHASE 2)
IN WESTONARIA LOCAL MUNICIPALITY

Project Consultant : Morad Consulting

Client : RandWest City Local Municipality

Client Project No : T002/2016-2017

Status of Report : Final

Morad Report No : 1

Date of this Issue : 11 September 2017

For Morad Consulting issuing

Written & M Benhura

Compiled by
Initials & Surname Signature Date

Peer – reviewed
by M. C Radebe (PrEng)

Initials & Surname Signature Date

Client Accepted
and Approval
Initials & Surname Signature Date

Page 17 of 18
13. ANNEXURES

Page 18 of 18