MOGALE CITY LOCAL MUNICIPALITY

MINDALORE WATER PIPELINE REPLACEMENT, 22KM,

75MM, ASBESTOS CEMENT PROJECT

PROJECT CHARTER/SCOPE BRIEF/BUSINESS PLAN

SEPTEMBER 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 .......................................................................................................................... 7

8.

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

9.

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

10.

PROJECT FINANCES ...................................................................................................................... 8

11.1 Professional Fees .................................................................................................................................... 8

11.2 Cost Estimate and Work Breakdown Structure.................................................................................... 10
11.3 Cash Flow Projection ............................................................................................................................ 11
11.

PLACES OF WORK ......................................................................................................................... 11

12.

SITE CLEARANCE ........................................................................................................................... 11

13.

DELIVERABLES ............................................................................................................................... 12

14.

MILESTONES .................................................................................................................................... 12

15.

SUCCESS CRITERIA....................................................................................................................... 12

16.

REPORTING REQUIREMENTS AND MEETING SCHEDULE ................................................. 13

17.

GUIDELINES AND STANDARDS .................................................................................................. 14

18.

QUALITY ASSURANCE AND CODE OF CONDUCT ................................................................ 14

19.

RISK MANAGEMENT ...................................................................................................................... 15

20.1 Health and Safety Risks ........................................................................................................................ 15

20.2 Financial Risks ....................................................................................................................................... 15
20.

PROJECT APPROVAL REQUIREMENTS................................................................................... 15

21.

PROJECT SPONSOR ...................................................................................................................... 15

22.

ACCEPTANCE .................................................................................................................................. 16

Page 2 of 16

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 5: Professional Fees .................................................................................................................................. 9
Table 6: Cost Estimate and Work Breakdown Structure .................................................................................. 10
Table 7: Cash Flow Projection .......................................................................................................................... 11
Table 8: Reporting Deliverables ....................................................................................................................... 12

ANNEXURE A: Appointment Letter

ANNEXURE B: Fee Proposal
ANNEXURE C: Water Balance Results
ANNEXURE D: Tables from MCLM Strategic Plan

Page 3 of 16

1. EXECUTIVE SUMMARY
MORAD Consulting Engineers was appointed by Mogale City Local Municipality for the
Mindalore 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
Mindalore, Zone 24 as per the subject project requirements.
Mogale City Local Municipality is experiencing unaccounted for water losses in most of
its areas including Mindalore, zone 24. 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 Mindalore water pipeline replacement project.

The project comprises of the elimination of the 110mm, 90mm and 75mm diameter
class 9 asbestos cement lines and the installation of class 12, 420m of 200mm dia
uPVC pipe, 390m of 160mm dia uPVC pipe, 4450m of 90mm uPVC pipe and
13700m of 7 5 mm uPVC pipe on the Municipal servitude.

The allocated budget for the project during this financial year is R7 652 173.00, all
inclusive. Therefore, we recommend that the project be executed in phases, with the
first phase having 750m of 90mm Dia uPVC and 2750m of 75mm uPVC pipes to be
laid for about 200 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 16

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 C
and appendix D 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 16

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.

The project scope with regard to construction is as follows;

Lay 750m of 90mm Dia class 12 uPVC and 2750m of 75mm class 12
uPVC pipes.

Install 45 isolation valves

Install 22 pipe bends

Install 1 reducer
Page 6 of 16

Install 25 fire hydrants

Provide about 123 house connection and accessories

6. REGULATORY REQUIREMENTS
6.1 Environmental Impact Assessment
The project comprises of the replacement of the Asbestos cement pipelines with
uPVC pipelines of the same diameter on the Municipal servitude.
Since this project is not listed under the Environmental Impact Assessment
Regulations Listing Notice 1 of 2010, 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.

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 750m of 90mm Dia uPVC and
2750m of 75mm uPVC pipes can be laid for about 200 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.

Page 7 of 16

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
Mindalore zone 24 area. The reservoirs are owned by MCLM as well.
Hence the stakeholders are the following:

The community in the Mindalore zone 24 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

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. PROJECT FINANCES

11.1 Professional Fees
As per Mogale City Local Municipality appointment letter to Morad Consulting
Engineers,

the

appointment

is

in

line

with

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

Page 8 of 16

Morads

existing

Contract

Fees will be calculated according to the fee scales agreed in the above contract, for
the following stages as defined in the Engineering Professions Act (Act 46 of 2000):

MOGALE CITY LOCAL MUNICIPALITY

(B) PROFESSIONAL SERVICES PROVISION FEES MINDALORE ZONE 24
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 4: Professional Fees

Page 9 of 16

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 283 500.00
R 2 306 560,00

Trench excavation
Provision for Pipe Bedding

R 716 800.00

Supply and construction of 2750 meters long 75 mm uPVC pipelines

and accessories.

R 275 000.00

Supply and construction of 750 meters long 90 mm uPVC pipelines and

accessories.

R 97 500.00

Installation of 45 isolation valves

R 96 000.00
R 7 890.00

Installation of 22 bends

R 16 850.00

Installation of 15 tees
Installation of 1 reducer

R 560.00

Installation of 25 fire hydrants within the town,

Installation of 39 thrust blocks

R 191 700.00
R1 305.00

Provide approximately 122 house connections and accessories,

Provision of connection to existing network,

R 286 955.00
R 20 000.00

Provisional amounts.

R 543 5230.70

Preliminary & Generals

R 616 368.00

Sub-Total 1 Cost Estimate for Construction Works

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

R 5 268 718.70
R 263,435.94

Total Cost Estimate for Construction Works (Excl. VAT)

R 5 532 154.64

Professional Fees Estimate, including Survey, Geo-tech, etc.

R 1,208,237.84

Total Project Cost Estimate (Excl. VAT)

R6,740,392,48

VAT

R 906,773.92

Total Project Cost Estimate (Incl. VAT)

R 7,383,730.46

Table 5: Cost Estimate and Work Breakdown Structure

Page 10 of 16

11.3 Cash Flow Projection

Period

Payment

Cumulative Total

1ST Month 2014

R 172,197.50

R 172,197.50

Month 2014

R 319,795.35

R 491,992.85

3rd Month 2014

R 196,797.14

R 688,789.98

4th Month 2014

R 734,045.16

R 1,422,835.15

5th Month 2014

R 756,845.16

R 2,179,680.31

6th Month 2014

R 1,132,566.98

R 3,312,247.29

7th Month 2014

R 1,171,070.65

R 4,483,317.94

8 Month 2014

R 1,018,566.98

R 5,501,884.92

9th Month 2014

R 1,189,088.79

R 6,690,973.71

10th Month 2014

R 961,199.28

R 7,652,173.00

nd

th

Table 6: Cash Flow Projection

11. 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.

12. 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 11 of 16

13. DELIVERABLES
The project deliverables for this pipe replacement project are as follows;

Laying of 750m of 90mm Dia class 12 uPVC and 2750m of 75mm class 12
uPVC pipes.

Installation of 45 isolation valves

Installation of 22 pipe bends

Installation of 1 reducer

Installation of 25 fire hydrants

Providing about 123 house connection and accessories

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

Table 7: Reporting Deliverables

14. MILESTONES
The main project milestone is the to complete the pipe replacement

of the

existing AC pipes with 750m of 90mm Dia class 12 uPVC and 2750m of 75mm
class 12 uPVC pipes by the end of this current financial year with the allocated
budget of R7 652 1736.00.

15. SUCCESS CRITERIA

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

Page 12 of 16

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

16. 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 13 of 16

17. 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.

18. 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 14 of 16

19. 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.

20. 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.

21. PROJECT SPONSOR

The project sponsor is the Mogale City Municipality, represented by the Executive
Manager: Infrastructure Services, Mr Mpako Dennis Mokotedi.

Page 15 of 16

22. ACCEPTANCE
This Project Charter prepared by Morad Consulting is based on the content of the
appointment letter dated 19 November 2013.

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 16 of 16