EPWP Large Projects Guidelines,Scaling Up Service Delivery. and Contributing to Job Creation,Version 1 August 2012. Glossary of Terms 5,List of Abbreviations 8,Executive Summary 9. 1 Introduction 10,1 1 Purpose of the Guidelines 10. 1 2 Scope of the Guidelines 10,1 3 Application of the Guidelines 12. 1 4 Overview of Expanded Public Works Programme EPWP 12. 1 4 1 EPWP Phase 1 April 2004 to March 2009 13,1 4 2 EPWP Phase 2 April 2004 to March 2014 13. 2 Definition of an EPWP Large Project 14,2 1 EPWP Large Projects defined. 2 2 Rationale for Large Projects 14,2 2 1 Addressing socio economic imperatives 14. 2 2 2 Development support to emerging enterprises 15. 3 Implementation approaches for EPWP Large Projects 16. 3 1 Labour intensification in an EPWP Large Project 16. 3 1 1 Large contractor using large intensive construction methods 16. 3 1 2 Subcontractor implements the labour intensive components. of the project 17, 3 2 Bundling of smaller contracts to form a large project 19. 4 Identification of Suitable Large Projects for Implementation. using Labour Intensive Methods 20, 4 1 Types of activites than can be implemented labour intensively. in EPWP Large Projects 21,4 1 1 Road works 21,4 1 2 Stormwater works 21. 4 1 3 Sewers 21,4 1 4 Water 22,4 1 5 Haul of materials 22. 4 1 6 Electricity 22,4 1 7 Houses School and Clinics 22. 4 2 Possible Contracting Arrangements 22,4 2 1 Option 1 Programme management approach. design by employer using labour intensive methods 22. 4 2 2 Option 2 Programme management approach,develop and construct for large projects using. labour intensive methods 26, 4 2 3 Option 3 Management contracts for large projects using. labour intensive construction methods 27, 4 3 Determine contracting arrangements strategy 28. 4 3 1 Forms of Contracts for an EPWP Large Project 29. 4 3 2 Decision criteria for the selection of a suitable form. of contract for construction works 30,4 3 3 Determine procurement arrangements. Decide on Quality strategy 32, 4 4 Design and Documentation for EPWP Large Projects 33. 4 4 1 Design and documentation compliance to EPWP,guidelines 33. 4 4 2 Labour intensive compliance for Built Environment. Professionals 33, 4 4 3 Labour intensive construction compliance for contractors 33. 4 4 4 Construction Industry Development Board compliance. requirements 34, 5 Monitoring and Reporting Requirements of EPWP Large. Projects 36,5 1 Monitoring Indicators 36,5 2 EPWP reporting Templates 37. 5 3 Progress Monitoring 37,References 38,List of Figures Tables and Annexures. List of Figures, Figure 1 Overview of the EPWP Large Projects Guidelines. Figure 2 Proposed Service Delivery model Programme Management Design by Employer. Figure 3 Stages of Delivery of an EPWP Large Project. Figure 4 Management Contract of an EPWP Large Project. Figure 5 Decision criteria for the selection of a Form of Contract for Construction and. Maintenance, Figure 6 Deciding on procurement arrangements for EPWP Large Projects. Figure 7 Single Volume Approach to the packaging of construction procurement documents. Figure 8 Three Volume Approach to the packaging of construction procurement documents. List of Tables, Table 1 Recommended combinations of Forms of Contract and Forms of Subcontract. Table 2 Decision criteria for the selection of the Form of Contract for Construction Works. List of Annexures, Annexure A An Overview of Contracting Strategies for Construction and Engineering Projects. Annexure B Review of eThekwini Metropolitan Municipality Infrastructure Delivery Model. An example of an EPWP Large Project Case Study,Annexure C Municipality Reporting Template. Annexure D Provincial Reporting Template, EPWP Large Projects Guidelines Scaling Up Delivery and Job Creation. Glossary of Terms,Actual Expenditure, Actual expenditure the expenditure on the project by the contractor the expenditure by the. professional service provider appointed to design and supervise the project The actual expenditure. excludes expenditure on government management and administration. Code of Good Practice for employment and conditions of work for Expanded Public Works Programmes. The Minister of Labour periodically issues a Ministerial Determination in terms of the Basic Conditions of. Employment Act of 1997 and Gazetted a Code of Good Practice for employment and conditions. of work for Expanded Public Works Programmes which allows for special conditions to facilitate. greater employment on Expanded Public Works Programmes EPWP. Contractor, A person trading entity or group of persons who is contracted to carry out the work on the Expanded. Public Works Programme for the relevant public body or client body. Construction costs, This is a combined cost of labour plant and materials excluding professional fees. Cost per FTE, Cost per FTE is calculated by dividing the total budget for an EPWP project by the number of full. time equivalent jobs FTEs planned to be created,Daily Rate. A worker is paid a fixed sum each day in return for i working a fixed number of hours during that. day or ii completing a fixed task for that day,Demographic Characteristics of Workers. The number of workers that fall within the following categories must be recorded. Youth i e 16 to 35 of age youth who are still at school shall not be employed on EPWP projects. People with Disabilities, The definitions contained in the Preferential Procurement Regulations of 2001 for these categories. of beneficiaries will be utilised,EPWP Large Project. A large project could either be one big project or a grouping of a number of related small initiatives. various mini projects managed in a coordinated way to obtain benefits and control not available. from managing them individually For the purpose of these guidelines the budgetary threshold of an EPWP. Large Project is R30 million Including Value Added Tax and above. EPWP Target Group, Unemployed local low skilled South Africans willing to work on EPWP projects and programmes for a. minimum wage rate,EPWP Worker, A person employed to work in an EPWP project under the Code of Good Practice for Expanded Public. Works Programmes or the Learnership Determination for unemployed learners whether they are. employed directly by a government department an implementing agent a contractor or a sub contractor. Full Time Equivalent FTE, FTE refers to one person year of employment One person year is equivalent to 230 per son days of work. Person years of employment total number of person days of employment created for targeted labour. during the year divided by 230 For task rated workers tasks completed should be used as a proxy for 8. hours of work per day,FTE Target, FTE Target means the targeted number of Full Time Equivalent an employment programme. required to create using funding received by a public body within a stipulated financial year. EPWP Large Projects Guidelines Scaling Up Delivery and Job Creation. Implementing Agent IA, A business institution or person who is contracted to implement the Expanded Public Works. Programme on the relevant department s behalf An implementing agent is bound by the same terms and. conditions governing the implementation of Expanded Public Works Programme as a department. Incentive Grant Amount, The Incentive Grant Amount earned is calculated as follows Number of FTEs reported by the end of a. quarter x Incentive subsidy per FTE,Job Creation Targets. The number of full time equivalent jobs and work opportunities that a public body must create. Job Opportunity, 1 job opportunity paid work created for an individual on an EPWP project for any period of. time In the case of social sector projects Learnerships will also constitute job opportunities The. same individual can be employed on different projects and each period of employment will be. counted as a job opportunity,Key Performance Indicators KPIs. Indicators are qualitative and or quantitative measure markers that define how performance toward the. achievement of the programme project or activity objective will be measured. Labour Intensity, Labour intensity refers to the labour component of a project and is calculated as the percentage of unskilled. labour wages against the total expenditure,Labour Intensive Construction. Methods of construction involving a mix of machines and labour where labour utilising hand. tools and light plant and equipment is preferred to the use of heavy machines where technically. and economically feasible,Main Contractor, A person or firm undertaking a major contract and employing one or several subcontractors to carry. out specific parts of the work or provide services labour or materials. Managing Contractor, An experienced main contractor who is contracted to be responsible for the construction of a. project through an agreement that he she manages one or a number of smaller subcontractors for. different parts of the works,Mentorship, Provision of guidance advice technical and management support to emerging contractors or. professionals to enable them to implement infrastructure projects successfully and eventually. establish themselves in a competitive environment,Monitoring. Monitoring is a process that involves measuring and tracking progress according to the planned. outputs outcomes including resources activities quality costs timeframes etc. Person Days of Employment created, The number of people who worked on a project x the number of days each person worked. A programme is a coordinated approach to explore a specific area related to an organisation s. mission It usually includes a plan of action or events which identifies staff and related activities or. projects leading towards defined and funded goals, EPWP Large Projects Guidelines Scaling Up Delivery and Job Creation. A specific intervention with a beginning and an end with a number of distinct phases in between. A project is designed to achieve specific objectives within predetermined implementation timeframes. with a budget with an associated cash flow and has a single point of responsibility project manager. Project Budget, The project budget the price tendered by the contractor the professional fees for the professional. service provider appointed to design and supervise the project The project budget excludes govern. ment management and administration costs,Project Wage. Minimum Daily Wage Rate daily wage whether task rated or time rated per individual project This. wage rate must be inserted in the Project tender document as per the EPWP guidelines. Public Body, A provincial or national department national or provincial public entity or constitutional institution within the. meaning of the Public Finance Management Act 1999 a municipality and municipal public entity within the. meaning of the Municpal Finance Management Act 2003. Reporting is a process of recording EPWP project data information from sites and uploaded into the. EPWP reporting system on a frequency determined by the EPWP Monitoring and Evaluation M E Unit. e g monthly and quarterly reporting frequency using the reporting templates developed by the EPWP. Subcontractor, A person or trading entity being contracted by a main contractor or employer to carry out work or deliver. services labour or materials as part of a larger project Subcontracting could take any one form including. Domestic subcontractor subcontractor appointed by the main contractor at his discretion. Nominated subcontractor a subcontractor nominated by the employer which the contractor is. obliged to appoint as a subcontractor the nominated subcontractor has to be registered with the. CIDB in accordance with the CIDB Register of Contractors Act 38 of 2000 and. Selected subcontractor a subcontractor selected by the contractor in consultation with the employer in. terms of the requirements of the contract the selected subcontractor has to be registered with the. CIDB in accordance with the CIDB Register of Contractors Act 38 of 2000. Targeted procurement, Procurement of construction services specifying objectives other than purely technical or financial. e g socio economic These may include labour based technology for the optimum employment of labour. maximum use of local resources training and contractor or community development components. Task based work, A worker is paid a fixed wage in return for a fixed quantity of work to a specified quality or a task. The task set should be possible for a worker or group of workers for a group task to complete within. Training Person Days, The number of Training Person Days is the number of people who attended training x the number of days. of training, EPWP Large Projects Guidelines Scaling Up Delivery and Job Creation. List of Abbreviations,B BBEE Broad Based Black Economic Empowerment. BIFSA Building Industries Federation of South Africa. CIDB Construction Industry Development Board,CLO Community Liaison Officer. DPW Department of Public Works national,EPWP Expanded Public Works Programme. FA Framework Agreements, FIDIC F d ration Internationale Des Ing nieurs Conseils. International Federation of Consulting Engineers,FTE Full Time Equivalent. GCC General Conditions of Contract,IDP Integrated Development Plan. IDIP Infrastructure Delivery Improvement Programme. JBCC Joint Building Contracts Committee,KPIs Key Performance Indicators. MTEF Medium Term Expenditure Framework,NEC New Engineering Contract. PIC Project Implementation Committee, SAFCEC South African Federation of Civil Engineering Contractors. SANS South African National Standards,SMME Small Micro and Medium Enterprises. MFMA Municipal Finance Management Act,PFMA Public Finance Management Act. PPP Public Private Partnerships, EPWP Large Projects Guidelines Scaling Up Delivery and Job Creation. Executive Summary, The Department of Public Works through its Large Projects Directorate of the EPWP Unit identified the need to. develop guidelines that will assist the various client bodies with regard to the conceptualization planning design. implementation and management of large infrastructure projects which are to be implemented in accordance with. the EPWP principles, In the infrastructure sector the emphasis is on creating additional work opportunities through the use of labour inten. sive construction and maintenance methods which involve the use of an appropriate mix of labour and machines. with a preference for labour where technically feasible and economically viable without compromising the quality of. the product, All public bodies involved in infrastructure provision are required to participate in the EPWP This involvement re. quires them to identify plan design implement manage monitor and report their EPWP large projects in accord. ance with the EPWP protocols, In terms of these guidelines a large project is defined as one with a budget threshold of R30 million or more includ. ing Value Added Tax The guidelines also identify a number of projects that have potential of being implemented. using labour intensive methods of construction, In order to increase the job creation potential of large projects the guidelines propose a number of approaches that. could be considered by public bodies in the planning implementation and management of infrastructure projects. These include established contractors implementing large projects using labour intensive construction methods. subcontractors implementing large projects using labour intensive construction methods and lastly the bundling of. smaller projects to form large contracts Such large contracts could be implemented using either big and established. contractors or the subcontractors or a combination of the two models. On the basis of the delivery approaches adopted the public bodies have to choose a possible contracting strategy. that meets their requirements This could either be design by employer develop and construct and also manage. ment contract strategies taking into account the labour intensive construction methods and technologies. The implementation of large projects follows the choice of contracting strategies The implementation of large. projects must take into account the following factors namely. Design Documentation, EPWP Labour Intensive Construction skills for built environment professionals both client. side and the consultants side as well,CIDB Compliance. Standard for Uniformity,Register of Contractors and. Register of Projects,EPWP Labour Intensive Construction Guidelines. LIC Skills for Contractors, The public bodies have to monitor the progress of the implementation of large projects and report the implementa. tion making use of reporting templates and in accordance with the monitoring and reporting indicators as deter. mined by the National Department of Public Works, EPWP Large Projects Guidelines Scaling Up Delivery and Job Creation. 1 Introduction,1 1 Purpose of the Guidelines Document. The guidelines are intended to give guidance to public bodies including decision makers project managers and. built environment private sector consultants to enable them to plan implement manage monitor and report the. delivery of large projects using labour intensive methods of construction. 1 2 Scope of the Guidelines, The Guidelines comprise five core components namely. Defining EPWP Large Projects,Identification of suitable projects that. could be implemented using labour intens,ive construction methods. Intensification of labour intensive construction,methods on large projects. Deciding on contracting strategies for large,Implementation of large projects using labour. intensive construction methods, Monitoring and Reporting of EPWP Large projects using labour intensive construction methods. It must be noted that the scope of these guidelines does not include manual description of work methods and. design standards rather it is a reference document to be used for all types of large infrastructure works us. ing labour intensive construction methods These guidelines also do not attempt to give guidance on how to. labour intensify current works but focus more on the strategic level especially from the Infrastructure plan. ning funding implementation monitoring and reporting of large infrastructure projects References are made. to the other manuals that were previously published by the National Department of Public Works and the CIDB. EPWP Large Projects Guidelines Scaling Up Delivery and Job Creation. AN OVERVIEW OF EPWP LARGE PROJECTS GUIDELINES, Define an Identify suitable Decide on LIC Methods Decide on Implement Large Monitoring. EPWP Large EPWP Projects for and Delivery Approaches Contracting Projects using. Project LIC Methods for Large Projects Arrangements LIC methods Reporting. Large Contractor imple, Overview menting large projects Design by Implementation. of Large using Employer Considerations,Projects LIC methods. Guide Procurement of,Service Providers,Design Monitoring and. Documentation Reporting of EPWP,EPWP LIC skills Large Projects. Definition Suitable Intensifica,tion of LIC Subcontractors Imple for. of EPWP projects menting Develop professionals Monitoring. Large for LIC methods Construct,on Large large projects Indicators. Projects methods using LIC methods,Projects CIDB Compliance. Standard for Reporting,Uniformity Templates,Register of. Contractors Data Collection,Register of Processes from. Projects Project Level to,Bundling of Small Programme Level. Projects into large EPWP Labour,projects Implemented Management Intensive. by large contractor Contract Construction,Subcontractors or both Guidelines. LIC Skills for,Contractors,Figure 1 An Overview of EPWP Large Projects. For the programme approach to be realized public bodies have to ensure that there is a long term view to. infrastructure delivery by starting with long term infrastructure plans for provincial and national departments. and the integrated development plans of municipalities and the medium term infrastructure funding model The. programme approach also affords the public bodies an opportunity to address socio economic imperatives. EPWP Large Projects Guidelines Scaling Up Delivery and Job Creation. 1 3 Application of the guidelines, The guidelines are aimed at the public bodies in particular decision makers and the private sector built environ. ment professionals who normally provide an extension of capacity for public sector public bodies. It is recommended that the users of these guidelines must have a fair understanding of the framework govern. ing the implementation of the Expanded Public Works Programme EPWP and also a good understanding. of the Construction Industry Procurement prescripts as regulated by the Construction Industry Development. Board in terms of CIDB Act No 38 of 2000 and the framework governing public sector procurement in South Af. rica especially the Public Finance Management Act 1999 and the Municipal Finance Management Act 2003. These guidelines do not replace the CIDB Prescripts or the National Treasury Practice Notes or regulations. that are issued by the respective institutions from time to time rather must be understood to be interpreted as. offering guidance regarding the planning preparation and implementation of EPWP Large Projects within the. context of scaling up delivery and maximising the creation of work opportunities. These guidelines are also not replacing the EPWP Infrastructure Implementation Manual DPW 2008 or the. Guidelines for the implementation of the Labour Intensive Projects under the Expanded Public Works Pro. gramme DPW 2005 The guidelines are also to be read in conjunction with these documents or their latest. 1 4 Overview of Expanded Public Works Programme EPWP. The EPWP is a nation wide programme that is aimed at the reorientation of existing public sector expenditure. to draw significant numbers of the unemployed into productive work so that workers gain skills while they work. and also increase their capacity to earn an income. The EPWP is a strategic intervention that was designed to make a significant contribution to reducing unem. ployment and providing livelihoods for the poor women youth and people with disabilities in the country The. EPWP emphasizes the need to focus our investment on social infrastructure in a manner that addresses severe. conditions of underdevelopment and entrenched poverty The EPWP is being implemented in a phased ap. proach as described below, EPWP Large Projects Guidelines Scaling Up Delivery and Job Creation. 1 4 1 EPWP Phase 1 April 2004 to March 2009, EPWP Phase 1 was from April 2004 to March 2009 and its stated target of one 1 million work opportunities. was met one 1 year earlier than envisaged which paved the way for the planning and implementation of. EPWP Phase 2,1 4 2 EPWP Phase 2 April 2009 to March 2014. The objective of EPWP Phase 2 is to create 4 5 million work opportunities for poor and unemployed people. in South Africa so as to contribute to halving unemployment by 2014 through the delivery of public works. and community services The intention is to ensure that EPWP enables government to act as an employer. of last resort as part of the Anti Poverty Strategy The EPWP Phase 2 has three strategic features namely. Introduction and setting of targets and Accountability across government. Introduction of a Fiscal Incentive,Introduction of the non state sector. EPWP Large Projects Guidelines Scaling Up Delivery and Job Creation.
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