RANDWEST CITY LOCAL MUNICIPALITY

LIBANON LANDFILL SITE: CONSTRUCTION OF

ADMINISTRATIVE BLOCK AND ABLUTION FACILITY

PROJECT CLOSE OUT REPORT

(RWCLM-3/005/016-2017)

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..................................................................................................................................6
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............................................................................................................................................12
7.1 Professional Fees Expenditure..............................................................................................................12
7.2 Contractor’s Construction Budget Expenditure....................................................................................13
7.3 Total Project Expenditure.....................................................................................................................13
8. LESSONS LEARNT.............................................................................................................................13
8.1 Areas of potential improvement to be considered for future projects:................................................13
8.2 The project’s biggest successes:............................................................................................................14
9. ADMINISTRATIVE CLOSURE...........................................................................................................14
10. CONTRACT CLOSURE..................................................................................................................15
11. PROJECT APPROVAL REQUIREMENTS...................................................................................15
12. ACCEPTANCE.................................................................................................................................15
13. ANNEXURES....................................................................................................................................17

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 ANNEXURE A: Final Bill of Quantities

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

ANNEXURE C: Insurance & Guarantee

ANNEXURE D: Construction Program

ANNEXURE E: Completion Certificates

Page 3 of 17
1. EXECUTIVE SUMMARY
MORAD Consulting Engineers was appointed by RandWest City Local Municipality on
the 12th of July 2016 for the preparation of the business plan, planning, design and
supervision of construction of the “LIBANON LANDFILL SITE: CONSTRUCTION OF
ADMINISTRATIVE BLOCK AND ABLUTION FACILITY” at a project budget of R 3
000 000.00 (incl. vat). The appointed contractor was “NEW GENESIS PROJECTS
AND PROPERTIES” at a construction amount of R 1 821 797.18 (incl. vat). The
contractual commencement date was the 11 th of January 2017 and the practical
completion date was the 1st of July 2017. However, the actual practical completion
date was the 10th July 2017 at the construction cost of R 1 821 659.89 This Project
Close Out Report forms part the Consultants’ appointment and covers the strategy for
the contract administration of the Libanon Landfill Site: Construction of Administrative
Block and Ablution Facility as per the subject project requirements.

The Site handover meeting was held on the 1 st of July 2017. The close out meeting
was held on the 12th of July 2017.

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2. Introduction

2.1 Background and Problem Statement

Morad undertook site investigations at Libanon Landfill Site with the view of
establishing the scope of work of what needed to be done. During the investigations, it
was discovered the following;

 There was need to construct a fully serviced office block and ablution block.
 G-Block paving around the office block and ablution block.

See attached pictures in annexure B.

2.2 Site Location

The site for the “LIBANON LANDFILL SITE: CONSTRUCTION OF
ADMINISTRATIVE BLOCK AND ABLUTION FACILITY PROJECT” is located in
Libanon in Westonaria in Rand West City Local Municipality (RWCLM) along Bridges
S Street, 1760.

Picture 1: Locality Map for Libanon Landfill Site

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2.3 Purpose of Project
To construct a fully serviced office block and ablution block.

2.4 Scope
The proposed works consisted in general terms of the construction of:

1. Interlocking g-blocks paved parking area – 100m².

2. Internal sewer reticulation and connection to septic tank.
3. Internal water reticulation and connection to the bulk water pipeline.
4. An office block and ablution facilities which includes:
 2 Offices
 Kitchen
 1 Store room
 Toilets
 Electrical works
 Plumbing works
 Drainage works

The office block consisted of a raft foundation (5m sinkhole allowance as per the
building design) brickwork super structure, timber roof construction, corrugated roof
sheeting and associated electrical installation including external works comprising
natural air conditioning.

The contractor carried out and completed the works in accordance with the contract in
every respect, and with the employers instructions, etc. and to the satisfaction of the
employer, who in his absolute discretion and from time to time issued further drawings,
details and/or written instruction, written explanations and written directions with
regards to:

a) The variations or modifications of the design, quality and quantity of the works
or the addition or omission or substitute of any work;
b) Any discrepancy in the drawings or between the bills of quantities and/or
drawings and/or specifications;

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 c) The removal from the site of any materials brought thereon under the contract,
and substitution of any other materials therefore;
d) The removal and/or re-execution of any part of the works executed under the
contract;
e) The dismissal from the works of any person employed thereon;
f) The opening up for inspection of any work covered up;
g) The amending and making good of Any defects under clause 26 and 27 of
JBCC Principle building Agreement;
h) Prime cost item and Provisional sums.

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.
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,

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 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:

 Aluminium door and window frames.

 Tiles in the bath rooms.
 Shower rooms.
 Rainfall receiver boxes.

3. PROJECT INFORMATION

3.1 Contractual Information Contractor

CONTRACTOR NEW GENESIS PROPERTIES AND PROJECTS
DATE OF LETTER OF APPOINTMENT 07 DECEMBER 2016
DATE OF SITE HAND OVER 11 JANUARY 2017
CONTRACT PERIOD 5 MONTHS
CONTRACTUAL COMPLETION DATE 11 JULY 2017
ACTUAL COMPLETION DATE 10 JULY 2017
CONTRACT SUM R 1,821,659.89 (INCL VAT)
CERT NO CLAIMED TO DATE 06
AMOUNT PAID TO DATE R 1,821,797.18 (INCL VAT)

Page 8 of 17
3.2 Project Team
CLIENT
Project Team Project Team
Organization Email Tel/Cell Fax
Role Member(s)
Manager: User Rand West City mokwana@westo
Moses Mokwana
Department Local Municipality naria.gov.za
Rand West City sbell@westonaria. 0112783268/
Manager: PMU Sarita Bell 0112783263
Local Municipality gov.za 0796953944
samuel.makgato
Project Manager: Rand West City 0112783268/
Samuel Makgato @mogalecity.gov. 0112783263
PMU Local Municipality 0723223077
za
CONSULTANT
collinr@morad.co 0119543835/
Project Engineer Collin Radebe Morad Consulting 0866357108
.za 0844788774
michaelb@morad. 0119543835/
Project Engineer Michael Benhura Morad Consulting 0866357108
co.za 0815711367

CONTRACTOR

New Genesis
Sibhekinkosi info@newgenesis.
Site Agent Properties and 0817547635 0862451237
Moyo co.za
Projects

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

5. PROJECT RELATIONS AND CHALLENGES

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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

NEW GENESIS PROPERTIES AND PROJECTS were 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 & Structural Engineer/Architect

Morad Consulting were the appointed Engineers/Architects 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 directly with the contractor. Drawings and specifications were

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 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 Libanon Landfill Site: Construction of Administrative Block and Ablution
Facility Project was to be done on public facilities which were being utilized by the
public as a landfill site. Simultaneously carrying out the construction and using the
facilities was going to be a huge challenge in terms of OHS issues. The
construction site was completely block off form the public to allow construction to
go on without safety risk to the public.
 Healthy hazard to the construction personnel from persistent flies from the landfill
site. This problem was alleviated by using insecticides to kill the flies.
 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.

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, i.e.

6.2 Delays Experienced

A couple of delays were experienced in the project and they not caused by the
contractor.

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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

7. FINANCES
7.1 Professional Fees Expenditure
Invoice No. Amount (Inc VAT) Date
1 R 257 632.64 26-09-2016
2 R 84 440.92 22-11-2016
3 R 40 804.32 26-01-2017
4 R 86 565.81 28-02-2017
5 R 37 778.77 28-03-2017
6 R 77 182.35 04-05-2017
7 R 454 076.41 26-06-2017

TOTAL R 1 038 481.22

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7.2 Contractor’s Construction Budget Expenditure
Claim No. Expenditure (Inc vat) Date

1 R 113 993.73 31-01-2017
2 R 57 650.16 23-02-2017
3 R 601 308.60 03-04-2017
4 R 541 439.19 29-05-2017
5 R 496 746.11 30-06-2017
6 R 91 083.00 30-06-2017

TOTAL R 1 902 220.79

7.3 Total Project Expenditure

Expenditure Type Expenditure (Inc vat) Balance (Inc vat)
R 3 000 000.00
Professional Fees R 1 038 481.22 R 1 961 518.78
Contractor’s Claims R 1 902 220.79 R 59 297.99

TOTAL R 2 940 702.01 R 59 297.99

8. LESSONS LEARNT
8.1 Areas of potential improvement to be considered for future projects:
Problem Problem Description References Recommendation
Statement
Proper planning Inadequate Funds were Project Charter Proper feasibility study need to be done
from all parties, allocated to the project. This during the compilation of the business
client, professional resulted in some of the items on plans so that the funds applied for the
team and the the scope of work being implementation of the project are
contractor removed and postponed to the aliened to the scope of work to be done
next phase subject to on the project.
availability of funds.
Appointing experienced contractors
Poor project planning from the Progress Reports with clear method statements and
contractor resulting in quality control plans for implementation
difficulties in implementing the the project. Assisting the contractors
project with the planning of the project.
The importance of The contractor took time to act Progress Reports Proper induction to the contractor on
communication on the Engineer’s instructions. the communication flow on the projects.
The contractor did work without Constant reminding of the contract on
inspection and approval of the the communication flow on the project
Engineer.

Page 13 of 17
8.2 The project’s biggest successes:

Description Factors that Promoted this Success

Construction of an office block and ablution facilities

which includes:
 2 Offices
 Kitchen Proper monitoring of the contractor’s workmanship and
 1 Store room strict adherence to the quality control measures. Providing
 Toilets the contractor with details and easy to understand
 Electrical works construction drawings.
 Plumbing works
 Drainage works

Construction of interlocking g-blocks paved parking Proper monitoring of the contractor’s workmanship and
area – 100m². strict adherence to the quality control measures. Providing
the contractor with details and easy to understand
construction drawings.
Proper monitoring of the contractor’s workmanship and
Construction of internal sewer reticulation and
strict adherence to the quality control measures. Providing
connection to septic tank.
the contractor with details and easy to understand
construction drawings.
Appointment of a local sub-contractor to do the work
Construction of internal water reticulation and
under strict supervision of the main contractor and
connection to the bulk water pipeline.
assistance of the Engineer. This helped in expediting the
project.

9. ADMINISTRATIVE CLOSURE

Practical completion of the project was achieved on the 10th 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,
 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 90 working days.

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 The contractor achieved works completion on the 12th of July 2017. The Defects
Liability Period automatically commenced on the 12th of July 2017 and will lapse on
the 12th of October 2017.

The date for Final Completion will be the 12th of October 2017 and this will result in;
 The contractor’s public liability in relation to the Works ceases,
 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 balance of the contractor’s latent defects liability period will be determined.
 The final payment certificate can now be issued.

10. CONTRACT CLOSURE

The contractor’s contract ended on the 12 th of July 2017 when Works Completion was
achieved. The defects liability period will lapse 90 days later which will on the 12 tgh of
October 2017.

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: Project Management Unit
before the next stage commenced.

12. ACCEPTANCE
This Close Out Report prepared by Morad Consulting is based on the content of the
appointment letter dated 12th July 2016.

TITLE : TENDER NO: RWCLM-3/005/2016-2017 LIBANON LANDFILL SITE :

Page 15 of 17
 CONSTRUCTION OF ADMINSTRATION BLOCK AND ABLUTION
FACILITY

Project Consultant : Morad Consulting

Client : RandWest City Local Municipality

Client Project No : RWCLM-3/005/2016-2017

Status of Report : Final

Morad Report No : 1

Date of this Issue : 24 July 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 16 of 17
13. ANNEXURES

Page 17 of 17