SOUTH AFRICAN NATIONAL ROADS AGENCY … AFRICAN NATIONAL ROADS AGENCY LIMITED STANDARD ANNEXURE NO 1 ... The contents of this Annexure apply only to …

PCDOC 30103 2003/2004 ANNEXURE 1 - Consulting Engineering Services

Project No. . . . . . . . . . . . . . . . . . . . . Agreement No. . . . . . . . . . . . . . . . . . . of . . . . . . . . . . . . . (date)

SOUTH AFRICAN NATIONAL ROADS AGENCY LIMITED

STANDARD ANNEXURE NO 1 (Percentage fee appointments)

to the

Agreement for Consulting Engineering Services

Date of Revision: JUNE 2003

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CCOONNTTEENNTTSS PPAAGGEE

1. PAYMENT BASIS FOR SERVICES..................................................................................1 1.1 PERCENTAGE-FEE BASED ON THE COST OF THE WORKS .....................................1 1.2 TIME AND COST BASIS ...................................................................................................1 1.3 RATES OR LUMP SUM.....................................................................................................1 1.4 REIMBURSABLE EXPENDITURE....................................................................................2

1.4.1 Items covered under Table 3 (The Compilation of Reports, Documents etc).....2 1.4.2 Items covered under Table 4 (Transport and Subsistence) ................................2 1.4.3 Items covered under Table 5 (Site Laboratory Equipment).................................2 1.4.4 Items covered under Table 6 (Site Survey Equipment).......................................2 1.4.5 Items covered under Table 7 (Site Staff Accommodation Allowance) ................3 1.4.6 Items covered under Table 8 (Schedule of Travel Tariffs) ..................................3 1.4.7 Technical Support Services .................................................................................3 1.4.8 Charges raised by a Public Authority or any other Competent Authority ............3 1.4.9 Computer Costs ...................................................................................................3 1.4.10 Special Insurance.................................................................................................3 1.4.11 Advertisements ....................................................................................................3 1.4.12 Arranging of Site Inspections and Tenderer’s Meetings .....................................3 1.4.13 Mechanical, Electrical and Electronic Engineering Services...............................4 1.4.14 Building Services..................................................................................................4 1.4.15 Site Staff...............................................................................................................4 1.4.16 Leader of the Professional Team.........................................................................4 1.4.17 Special Services and Specialist Advise...............................................................4 1.4.18 Diagrams for Land Acquisition.............................................................................4 1.4.19 Diverse Other Services ........................................................................................4

2. GENERAL PRESCRIBED DUTIES AND POWERS OF THE CONSULTING FIRM

UNDER THE AGREEMENT ..............................................................................................5 2.1. GENERAL .........................................................................................................................5

2.1.1 New Works...........................................................................................................5 (a) Preliminary Investigation and/or Route Location Stage.......................................5 (b) Preliminary Design Stage.....................................................................................5 (c) Detailed Design and Documentation Stage.........................................................6 (d) Tender and Construction Stage...........................................................................7

2.1.2 Rehabilitation, Routine Maintenance or Toll Operations .....................................8 (a) Initial Assessment Stage......................................................................................8 (c) Detailed Design and Documentation Stage.........................................................9 (d) Tender and Construction/Operation Stage........................................................10

2.2 FULL AND PARTIAL SERVICES....................................................................................10 2.3 NORMAL DUTIES (FOR FEE APPOINTMENTS)...........................................................10 2.4 ADDITIONAL SERVICES ................................................................................................10

2.4.1 Technical Support Services ...............................................................................10 2.4.2 Provision of Site Laboratory and Survey Equipment .........................................10 2.4.3 Provision of Site Staff.........................................................................................11 2.4.4 Leader of a Professional Team..........................................................................11

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2.5 DIAGRAMS FOR LAND ACQUISITION..........................................................................11 2.6 SPECIAL SERVICES AND SPECIALIST ADVICE.........................................................11 2.7 DIVERSE OTHER SERVICES.........................................................................................12

2.7.1 Services by Consulting Firm ..............................................................................12 2.7.2 Services rendered by other Service Providers ..................................................13

3. THE BASIS OF REMUNERATION TO THE CONSULTING FIRM ................................14 3.1 COST OF ENGINEERING WORKS AND FEES.............................................................14

3.1.1 Estimated Cost of the Works .............................................................................14 3.1.2 The Cost of Works shall include ........................................................................14 3.1.3 The Cost of the Works shall not include............................................................14 3.1.4 Final Cost of the Works .....................................................................................15 3.1.5 Damage or Destruction of Works ......................................................................15 3.1.6 Postponement, Cancellation or Abandonment of Works ..................................15 3.1.7 Drop-off and Take-up Fees of Work Previously Abandoned or Postponed......15 3.1.8 Alterations or Modifications to Designs..............................................................15 3.1.9 Work Undertaken by Specialists........................................................................16 3.1.10 Time and Cost Budgets .....................................................................................16

3.2 REMUNERATION FOR FULL SERVICES......................................................................16

3.2.1 General...............................................................................................................16 3.2.2 New Works.........................................................................................................16

(a) Preliminary Investigation Stage (and/or route location Stage).................16 (b) Preliminary Design Stage .........................................................................16 (c) Detailed Design and Documentation Stage .............................................17

3.2.3 Rehabilitation and Routine Maintenance...........................................................17

(a) Initial Assessment Stage ..........................................................................17 (b) Detailed Assessment Stage .....................................................................17 (c) Detailed Design and Documentation Stage .............................................18 (d) Tender and Construction Stage ...............................................................18

3.3 REMUNERATION FOR PARTIAL SERVICES ...............................................................18

3.3.1 New Works.........................................................................................................18 (a) Preliminary Investigation/Route Location Stage ......................................18 (b) Preliminary Design Stage .........................................................................19 (c) Detailed Design and Documentation........................................................19 (d) Tender and Construction Stage ...............................................................19

3.3.2 Rehabilitation and Routine Maintenance...........................................................22

(a) Initial Assessment Stage ..........................................................................22 (b) Detailed Assessment Stage .....................................................................22 (c) Detailed Design and Documentation Stage .............................................22 (d) Tender and Construction Stage ...............................................................22

3.3.3 Combination of Stages (Partial services)...........................................................23

3.4 REIMBURSABLE EXPENDITURE: NORMAL DUTIES ................................................23 3.5 REIMBURSABLE EXPENDITURE: ADDITIONAL SERVICES.....................................23

3.5.1 Laboratory Testing and Land Surveying............................................................23 3.5.2 Roadbed and Borrow-Pit Materials Investigations.............................................23

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3.5.3 Geotechnical and Drilling Contracts ..................................................................24 3.5.4 Provision of Site Laboratory Equipment and Surveying Equipment..................24 3.5.5 Provision of Site Staff.........................................................................................24 3.5.6 Leader of the Professional Team.......................................................................25

3.6 PREPARATION OF DIAGRAMS FOR LAND ACQUISITION ........................................25 3.7 SPECIAL SERVICES AND SPECIALIST ADVICE.........................................................25 3.8 DIVERSE OTHER SERVICES.........................................................................................25

3.8.1 General...............................................................................................................25 3.8.3 Arranging Site Inspections and Tenderers’ Meetings........................................26

3.9 SURCHARGE ON COSTS INCURRED ON BEHALF OF THE AGENCY.....................26 3.10 TIME AND COST BASIS BUDGETS ..............................................................................26 3.11 INTERIM PAYMENTS TO THE CONSULTING FIRM ....................................................26

3.11.1 Interim Payments ...............................................................................................26 3.11.2 Progress of Design for Interim Payments ..........................................................26

4. TARIFF OF FEES FOR ENGINEERING SERVICES RENDERED ................................27 4.1 GENERAL .......................................................................................................................27

4.1.1 Variation in Rates and Tariffs ............................................................................27 4.1.2 Other Disciplines ................................................................................................27 4.1.3 Date of Gazetted Percentage Fees ...................................................................27

4.2 SERVICES OF NORMAL CHARACTER ........................................................................27

4.2.1 Civil and Structural Engineering Services..........................................................27 (a) Basic Fee..................................................................................................27 (b) Additional Fee for Reinforced Concrete Portion of the Works.................27 (c) Additional Fee for Structural Steelwork Portion of the Works..................27 (d) Additional Fee for Structural Portion of the Works in Other Materials .....28 (e) Reduction in Fee for Structural Portions of the Works which are Standard

Designs .....................................................................................................28 (f) Special Fee Adjustments for Services Provided in respect of Different

Road Categories.......................................................................................28

4.2.2 Mechanical, Electrical and Electronic Engineering Works ................................28 4.3 SERVICES NOT OF A NORMAL CHARACTER ............................................................29

4.3.1 Works Making Unusually High Demands ..........................................................29 (a) Urban freeways.........................................................................................29 (b) Alterations to existing works .....................................................................29 (c) Works on separate non-adjacent sites.....................................................30 (d) Other types of Works or parts of Work.....................................................30

(e) Gravel Roads............................................................................................30

4.3.2 Special Provisions for Work Not of Normal Character ......................................30

4.3.3 Works Making Unusually Low Demands ...........................................................30 4.4 REIMBURSEMENT OF NORMAL DUTIES (Per Tables) ..............................................30

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4.5 REIMBURSEMENT FOR ADDITIONAL SERVICES ......................................................31 4.5.1 Laboratory Testing and Land Surveying............................................................31 4.5.2 Roadbed and Borrow-Pit Investigation ..............................................................31 4.5.3 Geotechnical and Drilling Costs.........................................................................31 4.5.4 Provision of Site Laboratory and Survey Equipment .........................................31 4.5.5 Provision of Site Staff.........................................................................................32 4.5.6 Leader of Professional Team.............................................................................33

4.6 PREPARATION OF DIAGRAMS FOR LAND ACQUISITION ........................................33 4.7 SPECIAL SERVICES AND SPECIALIST ADVICE.........................................................33

4.7.1 Appointed Specialists.........................................................................................33 4.7.2 Litigation and Similar Services...........................................................................33 4.7.3 Mediation or Arbitration ......................................................................................33 4.7.4 Other Specialist Advice or Special Services......................................................34

4.8 DIVERSE OTHER SERVICES.........................................................................................34 4.9 COST INCURRED ON BEHALF OF THE AGENCY ......................................................34 4.10 TIME AND COST WORK.................................................................................................34 4.11 REMUNERATION FOR REIMBURSABLE EXPENDITURE ..........................................34 4.12 DESIGN PROGRESS FOR INTERIM PAYMENT...........................................................35

4.12.1 Preliminary Design .............................................................................................35 4.12.2 Detailed Design..................................................................................................36 4.12.3 Tender and Construction Stage.........................................................................37 4.12.4 Structural Design................................................................................................38

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STANDARD ANNEXURE NO 1 1. PAYMENT BASIS FOR SERVICES Remuneration of the Consulting Firm for services rendered under the Agreement for

Consulting Engineering Services will be determined by one of the following methods or a combination thereof:

(a) Percentage fee based on the cost of the Works as in this Annexure (b) Time-cost basis (c) Rates or Lump Sum as agreed (d) Reimbursable Expenditure The contents of this Annexure apply only to Percentage Fee based on the cost of the Works

and Reimbursable Expenditure over and above the afore-mentioned fee. Some of the Reimbursable Expenditure payments are in terms of Tables as agreed upon from time to time.

1.1 PERCENTAGE-FEE BASED ON THE COST OF THE WORKS

(a) In this case the cost of the Works is estimated or calculated in conformity with sub-section 3.1 of this Annexure.

(b) The tariff of fees will be according to section 4 of this Annexure. The percentage fees and disbursements in terms of the Tables applicable at the

commencement of a Stage of the Work by the Consulting Firm will remain fixed for the tenure of that Stage unless postponed in terms of clause B27 of the Agreement.

This is applicable to all Tables except Table 8 (Schedule of Travel Tariffs) where the latest revision regardless of the commencement of a stage will be applicable for the tenure of the agreement.

1.2 TIME AND COST BASIS Where the services of the Consulting Firm are of such a nature that a percentage or other

stated fee is in the opinion of the Agency inappropriate, a fee shall be chargeable on a time and cost basis as set out in Annexure 2. Provided that where the Agency considers that the fee on a time and cost basis, or the prescribed tariff, would be inadequate in relation to the services rendered by the Consulting Firm, an appropriate special fee shall be negotiated between the Consulting Firm and the Agency.

If a specific Stage of the Work by the Consulting Firm is undertaken on this basis, the time

charges as defined in Annexure 2 will remain fixed for the tenure of that Stage unless postponed in terms of clause B27 of the Agreement.

1.3 RATES OR LUMP SUM Where appropriate to specific assignments and by agreement between the Agency and the

Consulting Firm remuneration will be on:

(a) Rates for identifiable tasks and/or

(b) Lump sum payments.

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1.4 REIMBURSABLE EXPENDITURE The following costs incurred by the Consulting Firm in the execution of its commission are of

a reimbursable nature and refundable to the Consulting Firm over and above the aforementioned fees. It is agreed to reimburse specific predetermined items as reflected in Tables 3-8 as per Annexure 3 as described in sub-sections 1.4.1 to 1.4.6 of this Annexure.

• Items listed under sub-sections 1.4.1 and 1.4.2 of this Annexure will be regarded as

reimbursable expenditure forming part of normal duties for fee appointments as per 1.1 above.

• All services listed under sub-sections 1.4.3 up to and including 1.4.16 of this Annexure

are additional services to be specifically called for by the Agency and agreed upon in terms of applicable remuneration.

• Special services, specialist advise and diverse other services described in 1.4.17 to

1.4.19 and only when specifically instructed by the Agency. Although the fees, tariffs and tables in this Annexure as well as Annexure 2 are from time to

time revised, the stipulations of clause B30 to B33 of the Agreement shall always apply. No surcharge shall be payable on any of the reimbursable expenditure as derived from the

tables contained in this Annexure nor on the reimbursements derived from rates and tariffs contained in Annexure 3 except for Table 8 where a surcharge as indicated elsewhere will be applicable.

1.4.1 Items covered under Table 3 (The Compilation of Reports, Documents, Plans etc)

The cost for reproduction, binding of paper, electronic documents, reports, plans etc are not included in the fee structure as stipulated in the Agreement and Annexures shall be reimbursed as shown in Table 3 of Annexure 3.

1.4.2 Items covered under Table 4 (Transport and Subsistence) This table in Annexure 3 provides for travelling (including time), accommodation and

subsistence costs reasonably and properly incurred by members of the Consulting Firm's staff in the performance of their services (excluding site staff). The applicable distance shall be taken as the distance between the applicable Agency office and the site or the Consulting Firms office and the site, whichever is the nearest to the site or as otherwise agreed upon, as indicated in the Agreement.

1.4.3 Items covered under Table 5 (Site Laboratory Equipment) The cost of providing the specified laboratory equipment and establishing same in a

laboratory on site shall be paid for at a monthly hire rate to be determined from Table 5 in terms of Annexure 3 and the standard procedures as prescribed by the Agency for the periods the equipment is required on site. Appendix 1 to Standard Annexure 3 will be used as the basis for agreeing the required laboratory equipment before commencement of the work.

1.4.4 Items covered under Table 6 (Site Survey Equipment)

The cost of providing specified surveying equipment on site, under conditions stipulated by the Agency shall be paid for at a monthly hire rate in accordance with Table 6 in Annexure 3 for the periods the equipment is required on the site.

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1.4.5 Items covered under Table 7 (Site Staff Accommodation Allowance) The reimbursement of site staff occupying their own homes shall be paid at a monthly ruling

rate shown in Table 7 of Annexure 3. 1.4.6 Items covered under Table 8 (Schedule of Travel Tariffs) Reimbursement for travelling by private company vehicles will be in accordance with Table 8

of Annexure 3. The applicable tariff will be fixed for the duration of the applicable term of revision for this Table.

1.4.7 Technical Support Services

Technical support services such as materials investigations for borrow-pits, quarries, roadbeds, pavements and laboratory testing (normal TMH1 tests) geotechnical investigations and topographic and photogrammetric land surveying, staking and referencing are separately reimbursable as described in sub-sections 3.5 and 4.5 of this Annexure. The Agency nevertheless reserves the right to undertake these services by a third party service provider appointed by the Agency.

The cost for additional materials testing for design and or site quality assurance, agreed to by the Agency will be reimbursed in terms of the rates indicated in Appendix 3 of Standard Annexure 3. Tests not listed in this Appendix will be agreed to with the Agency. Geotechnical and drilling investigation costs are reimbursable as specified in sub-section 3.5.3. The engineering interpretation shall however be deemed to be inclusive in the fees unless specifically otherwise approved by the Agency.

1.4.8 Charges raised by a Public Authority or any other Competent Authority Scrutiny, inspection, application and other formal charges raised by competent authorities,

are reimbursable. 1.4.9 Computer Costs Computer costs incurred for design and reports for percentage fee appointments are not

separately reimbursed unless agreed to by the Agency. Computer costs incurred where the fee for the Project is charged on a time-cost basis (see Annexure 2) are reimbursable.

1.4.10 Special Insurance Special insurance taken out on the instruction of the Agency is reimbursable. The methods

and amounts of reimbursement shall be mutually agreed upon whenever this service is required.

1.4.11 Advertisements The actual cost of advertising on behalf of the Agency, if instructed by the Agency, is

reimbursable. 1.4.12 Arranging of Site Inspections and Tenderer’s Meetings All reasonable costs incurred and approved in advance by the Agency in arranging the site

inspection are reimbursable. The provision of refreshments and/or meals for those attending the Site Inspection or Tenderers’ meeting shall be at the discretion of and to the account of the Consulting Firm.

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1.4.13 Mechanical, Electrical and Electronic Engineering Services Mechanical, electrical and electronic engineering services shall be paid for in terms of

applicable Gazetted fees in accordance with sub-section 4.2.2. 1.4.14 Building Services Architectural and quantity surveying services for building Works shall be paid for in

accordance with Government Notice No R21787 of 1 December 2000 and Government Notice No R6957 of 15 December 2000 respectively, as amended from time to time.

1.4.15 Site Staff The cost of employing site staff appointed in terms of sub-section 2.4.3 shall be refundable

as provided for in sub-section 3.5.5 and 4.5.5 of this Annexure. 1.4.16 Leader of the Professional Team If a Consulting Firm is specifically appointed by the Agency as the Leader of the Professional

Team to perform the duties as described in sub-section 2.4.4, reimbursement is payable as per sub-section 3.5.6 and 4.5.6 of this Annexure. A time-costs basis can however also be agreed upon between the Agency and the Consulting Company. In the latter case payment shall be in accordance with Annexure 2.

1.4.17 Special Services and Specialist Advise The costs of special services and specialist advice (refer to sub-section 3.7) as described in

sub-section 2.6 of this Annexure, carried out on behalf of the Agency, with its’ prior consent and an agreed scope of Works (for the specialist and/or special service) are reimbursable separately in terms of Annexure 2 or as otherwise agreed.

In the event of “specialist advice” the reimbursable costs shall be inclusive of the investigations and analysis to provide the Agency with the appropriate technical solution(s). In the case of “special services” the reimbursable cost is only for the specific survey, tests or data required and exclude the analysis thereof, the cost of which is included in the percentage fees.

1.4.18 Diagrams for Land Acquisition The cost for the preparation of diagrams as well as all other documents necessary for land

acquisition are reimbursable as described in sub-section 3.6 and 4.6 of this Annexure. The stated maximum amount shall only be exceeded if so agreed by the Agency.

1.4.19 Diverse Other Services Costs incurred in providing any diverse other services as provided for in sub-section 2.7,

remuneration for which has not been provided for under sub-sections 1.4.1 to 1.4.5 above are reimbursable in accordance with sub-sections 3.8 and 4.8 of this Annexure. A surcharge is payable as outlined in Annexure 2 of this Agreement.

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2. GENERAL PRESCRIBED DUTIES AND POWERS OF THE CONSULTING FIRM UNDER THE AGREEMENT

2.1. GENERAL

Due to the diversity in the nature of the duties to be performed by the Consulting Firm, a distinction is made between the types of Works as well as the various Stages in which it is conducted as follows:

2.1.1 New Works

The duties to be performed under the various Stages include but are not limited to the following:

(a) Preliminary Investigation and/or Route Location Stage

The preparation and submission of a report in accordance with the Agency’s current appropriate Codes, Manuals and Guidelines embodying preliminary proposals, feasibility studies or route locations, preliminary materials and geological appraisal, as well as estimates of cost, for consideration by the Agency and which may include one or more of the following activities: (i) Consultation with the Agency or its authorised representatives; (ii) Inspection of the site of the Works; (iii) Consideration of alternatives and advising the Agency regarding advantages and

disadvantages including reference to land use and acquisition feasibilities as required by the Agency;

(iv) Preliminary investigation, route location and design where any of these are

required for determination of feasibility; (v) Consultation with authorities having rights or powers of sanction; (vi) Advice to the Agency as to the need for surveys of any kind, analysis, tests and

site or other investigations where such are to be carried out at the Agency’s expense;

(vii) Investigation and collation of available data, drawings and plans relating to the

Works; (viii) Investigations, as may be required, of financial implications in relation to the

proposals; (ix) Addressing and advising on environmental issues as agreed with the Agency; (x) The submission to the Agency of progress reports as required indicating the

progress made and the causes of delay, if any.

(b) Preliminary Design Stage

The preliminary design of the Works may include as many of the following as are necessary:

(i) Compilation and submission of a Preliminary Design Report and a Preliminary

Materials Report. Approval of the Preliminary Materials Report is required

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prior to the submission of the Preliminary Design Report;

(ii) Advising the Agency as to the need for any further surveys of any kind, analysis, tests and site or other investigations which may be required, and arranging for these to be carried out at the Agency’s expense;

(iii) Advising the Agency, as may be necessary, upon the appointment of and brief

to other professional engineers, architects and specialist advisers and arranging such appointments and consultations with such advisers in matters affecting the Works;

(iv) Preparation of preliminary design plans, proclamation sketches if so instructed, drawings and estimates in accordance with the Agency’s current Codes, Manuals and Guidelines necessary for seeking approval of statutory authorities and beaconing of the road reserve;

(v) Consultation on technical matters with authorities and interested parties other

than those having rights or powers of sanction; (vi) Making modifications to the preliminary design of the Works in connection with

or dictated by the consultations aforesaid;

(vii) Advising the Agency regarding environmental requirements and attending to the same;

(viii) Identification and reporting on services and owners as well as

relocations/protection measures required; (ix) The submission to the Agency of progress reports as required indicating the

progress made and the causes of delay, if any; (x) Reporting on property owners and land acquisition including provision of

servitudes and other rights or restrictive conditions which may be registered on the property. The Agency must be notified immediately in regard to unlawful occupation of land on the proposed route.

(c) Detailed Design and Documentation Stage

The preparation of all documents necessary to permit the Works to be tendered for or otherwise placed by the Agency including as may be necessary:

(i) advice to the Agency as to the necessity for setting out or staking out the Works,

establishment of construction beacons and arranging for such to be carried out; (ii) advice to the Agency as to the need for any further surveys of any kind, analysis,

tests or other investigations and land which may be required and arranging for these to be carried out and the compilation and submission of a final materials report;

(iii) preparation of designs inclusive of all calculations, drawings, specifications and

engineering schedules of quantities and acquisition sketches if so instructed in accordance with the requirements of the Agency’s current appropriate Codes, Manuals and Guidelines. All land acquisitions shall be preceeded by land audits as required by the Agency;

(iv) drafting or adapting the specifications, Project specifications, tender conditions,

forms of tender and conditions of contract in accordance with the requirements

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of the current Codes, Manuals and Guidelines of the Agency;

(v) estimates of the cost of the Works, using the unit rates of the Agency’s database, if applicable;

(vi) advising the Agency regarding environmental requirements and attending to

same as agreed with the Agency;

(vii) identify and advise the Agency on communication channels, employment forums and issues impacting on the design. (This does not include arrangements for Labour Intensive or similar Projects – refer to sub-section 2.7.1 of this Annexure);

(viii) the timeous arrangement for the relocation of any services which may disrupt the

construction programme;

(ix) the submission to the Agency of progress reports as required indicating the progress made and the causes of delay, if any.

(d) Tender and Construction Stage

The administration and other services in connection with the carrying out of the Works, including as may be necessary: (i) the timeous arrangement for the relocation of any services which may disrupt the

construction programming if applicable; (ii) arranging and attending site inspections and furnishing information to

prospective tenderers and selected sub-contractors; (iii) analysis of tenders and submission of recommendations on the acceptance of

tenders and selected sub-contractors if required; (iv) advising the Agency on alternative designs and tenders but excluding detailed

inspection, reviewing and checking of alternative designs and drawings submitted by any tenderer;

(v) checking Contractor's drawings of structures, plant, equipment and systems for

the permanent Works for conformity with design requirements but excluding detailed checking of manufacture and installation details for erection or installation temporary formwork;

(vi) appointment of suitable, able and capable site staff, to the Agency’s approval

together with the administration of such staff; (vii) arranging and attending monthly site meetings and keeping minutes of the

meeting; (viii) making arrangements on behalf of the Agency for the provision and reproduction

of such drawings and documents as may be required by the Contractor and site staff for the execution of the Works;

(ix) fulfilling all functions and obligations stated or implied for the Engineer, and

delegated to the Engineer’s Representative, in the Agency’s General Conditions of Contract, Standard Specifications, Special Conditions or Project Specifications or any other document applicable to the control and administration of a contract;

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(x) issuing instructions to the contractor, co-ordinating and generally inspecting the execution of the Works for compliance with the contract at such intervals as required by the Agency for the purpose of the proper inspection of the Works, directing site staff but excluding detailed and day to day supervision/inspections of the Works and site administration;

(xi) advising the Agency regarding the inspection and testing of such materials and

plant as are usually inspected and tested and arranging for such inspection and testing to be carried out in accordance with the current appropriate Codes, Manuals and Guidelines of, and all at the expense of the Agency;

(xii) arranging for the carrying out of performance or acceptance tests and surveys as

well as related correlation testing as required by the Agency; (xiii) monitor and report on training, development and empowerment programmes

undertaken by the Contractor; (xiv) checking and controlling of quantities measured and agreed by the Contractor

and the site supervisory staff and settling the disputes which may arise in this regard;

(xv) issuing certificates for payment to Contractors and agreeing on quantities with

the Contractor; (xvi) advising the Agency on disputes or differences that may arise between the

Agency and the Contractor, except for litigation and mediation; (xvii) issuing variation orders and extra work orders, as agreed with and approved by

the Agency; (xviii) provide the Agency within 3 months of completion of the Works, with such

materials as as-built records and all other "as built" plans, construction reports and operation and maintenance manuals (if required) as may be required for the operation and maintenance of the Works and preparing such documents as may be necessary to co-ordinate the drawings and manuals provided, in accordance with the current appropriate Codes, Manuals and Guidelines;

(xix) provide the Agency with progress and other reports on all aspects of material

importance regarding the Works; (xx) attend to such matters as may arise during the defects liability period for the

Works; (xxi) notifying the Agency as a matter of urgency regarding unlawful land occupation.

2.1.2 Rehabilitation, Routine Maintenance or Toll Operations

The duties to be performed under the various Stages include but are not limited to the following:

(a) Initial Assessment Stage

The preparation and submission of a report in accordance with the Agency’s current appropriate Codes, Manuals and Guidelines and may include as many of the following as are necessary: (i) consultation with the Agency or its authorised representatives;

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(ii) preliminary investigation, gathering of information on as-built data, pavement

structure, traffic, etc; (iii) visual inspection of the road including drainage elements, structures, road side

furniture, road reserve, as well as unlawful road reserve occupation. The latter shall be reported immediately to the Agency;

(iv) advising the Agency as to the need for surveys of any kind using pavement

surveillance equipment, investigations and tests where such are to be carried out;

(v) identifying sections where problems exist; (vi) any other required matters; (vii) compiling and submitting the Initial Assessment Report; (viii) submitting to the Agency progress reports as required indicating the progress

made and the causes of delay, if any. This Stage shall rarely be applicable to Routine Maintenance.

(b) Detailed Assessment Stage

The Detailed Assessment may include as many of the following as are necessary:

(i) advising the Agency as to the need for any further surveys of any kind, tests and

investigations which may be required, and arranging for these to be carried out; (ii) advising the Agency as may be necessary, upon the appointment and

co-ordination of the services of other professional engineers, architects and specialist advisers and arranging such appointments and consultations with such advisers in matters affecting the Works;

(iii) identifying the cause and mechanism of any distress; (iv) analysing of the structural capacity of the existing pavement to determine the

remaining life expectation thereof; (v) recommending an appropriate Rehabilitation alternative including a comparison

on an economic basis; and recommendation on immediate maintenance measures;

(vi) compiling and submitting a detailed assessment report; (vii) the submission to the Agency of progress reports as required, indicating the

progress made and the causes of delay, if any; (c) Detailed Design and Documentation Stage

Refer to sub-section 2.1.1(c) For Routine maintenance Projects the scope of the Work will be as agreed with and instructed by the Agency.

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(d) Tender and Construction/Operation Stage Refer to sub-section 2.1.1(d) For Routine Maintenance Projects the scope of the Work for this Stage may be altered as agreed with and instructed by the Agency.

2.2 FULL AND PARTIAL SERVICES

The Agency can enter into an Agreement with the Consulting Firm for a Full Service that entails the Work for all the Stages as described in sub-sections 2.1.1 and 2.1.2. herein. The Agency, however, reserves the right to commission the Consulting Firm to undertake such Stage or Stages as specifically indicated in Part A of the Agreement. Any assignment that does not include all the Stages as described in sub-sections 2.1.1 and 2.1.2 (inclusive of those as a result of changed circumstances, abandonment and termination in terms of Clauses B26, B27 and B28) shall be classified as a Partial Service and treated as described in sub-section 3.3 of this Annexure.

2.3 NORMAL DUTIES (FOR FEE APPOINTMENTS)

Normal duties are such duties which normally form part of the assignment of the Consulting Firm and are reimbursed in terms of annually agreed upon Tables as per clauses 1.4.1 and 1.4.2 of this Annexure. The Agency will normally not issue special instructions for the work as described but the Consulting Firm is obliged to confirm expenditure in the budget reporting to the Agency. The services rendered shall be in accordance with codes and procedures as prescribed by the Agency from time to time.

2.4 ADDITIONAL SERVICES

Services in connection with the items listed hereinafter are additional to the normal services of the Consulting Firm whom shall obtain the prior written approval of the Agency for any such services to be carried out.

2.4.1 Technical Support Services

Technical support services as described in sub-sections 1.4.7 and 3.5 of this Annexure may be carried out by the Consulting Firm, or any other reputable firm, by means of quotations and/or competitive tender as mutually agreed and approved by the Agency. The Consulting Firm shall be responsible for the quantification of the work, entry upon land, compilation of schedules, control, processing and interpretation of data. The details and scope of the work must be agreed in principle with the Agency prior to commencing therewith.

2.4.2 Provision of Site Laboratory and Survey Equipment

(a) The Consulting Firm shall, if and when required by the Agency to do so, provide the necessary equipment for a suitable site laboratory and survey office as mutually agreed beforehand between the Agency and the Consulting Firm.

(b) The laboratory buildings, survey office and the fixed facilities needed therewith which are necessary for the supervision of the Works shall be provided by the Contractor for the use of the Consulting Firm at the cost of the Agency. The type and extent of the buildings and facilities provided shall depend on the nature of the particular contract.

(c) All appropriate surveying and laboratory equipment and consumables necessary for the control and testing of materials, for the administration of the Construction Works, shall, unless otherwise agreed, be supplied by the Consulting Firm.

(d) Laboratory and survey equipment shall be classified as indicated in Annexure 3.

11


(e) The details of all the apparatus and equipment required on site shall be agreed upon

with the Agency in terms of the Standard lists for surveying and site laboratories. (f) Correlation testing for site laboratories and surveys shall be arranged and managed as

agreed between the Consulting Firm and the Agency.

2.4.3 Provision of Site Staff

(a) Should the Agency require the Consulting Firm to provide site staff, the Consulting Firm shall appoint to the satisfaction of the Agency such competent site staff as may be necessary for the efficient checking of setting out, testing of the Works for conformance with specifications, day-to-day inspection of the construction of the Works, measuring up of the Works on site, and agreeing to the quantities with the Contractor's representatives.

(b) The Engineer’s Representative, and his appointment to undertake the supervision,

shall be approved by the Agency as being acceptable. His appointment will on no account relieve the Engineer of any of the obligations entrusted to him.

(c) Where a full complement of site staff is not appointed, the Consulting Firm shall

provide such additional services as are necessary for carrying out the functions described in sub-sections 2.1.1 (d) and 2.1.2 (d) of this Annexure.

(d) The Consulting Firm shall submit applications for approval by the Agency of the

personnel structure and details of the staff on the prescribed forms together with a detailed breakdown of their remuneration packages, which are to be signed by an external auditor.

2.4.4 Leader of a Professional Team

Should the Agency require the Consulting Firm to assume the leadership of a team that may include other professional engineers, architects or technical advisers, the additional services shall include the following:

• responsibility for the overall administration of all sections of the Project including those

which fall within the ambit of the other professional advisers in the team;

• responsibility for the overall co-ordination, programming of design and financial control of the Project;

• approval of certificates of payment to Contractors issued by the other professional

advisers in the team, prior of their presentation to the Agency for settlement. 2.5 DIAGRAMS FOR LAND ACQUISITION

If so instructed by the Agency the Consulting Firm shall undertake the preparation and submission of diagrams/drawings for the acquisition of land in terms of the Agency’s requirements. The compilation of these details shall include the supplying of Deeds office search forms, copies of the Title Deeds, Bond details and S.G. Diagrams, as prescribed by the Agency.

2.6 SPECIAL SERVICES AND SPECIALIST ADVICE

Special services and/or Specialist advice are those for which the Agency requires special investigations or analysis as defined in sub-section 1.4.17. Such assignments may include:

12


(a) road network planning studies (b) traffic, axle weight and transportation studies (c) economic studies (d) model studies (e) hydraulic studies (f) ecological studies (g) terrain evaluation (h) soil mapping and seismic or similar surveys (i) management studies (j) remedial Works to roads and bridges (k) monitoring of road and bridge elements (l) pavement surveillance surveys (m) or any other professional appointments.

The Consulting Firm shall, if and when required by the Agency to do so, appoint such other specialists as required and agreed to by the Agency to undertake work not normally forming part of the consulting engineers duties. All such appointments shall be undertaken on an agreed basis with the Agency. If so agreed or required by the Agency, the above work may also be undertaken by the Consulting Firm. When the Agency instructs the Consulting Firm to undertake the services listed hereinafter, the extent thereof shall be subject to agreement between the two parties.

• dealing with all legal and statutory matters, obtaining Parliamentary or other statutory

approval, licences or permits; • officiating at, or attending Courts, Commissions of Inquiry, Select Committees and

similar bodies convened by statute, regulation or decree.

2.7 DIVERSE OTHER SERVICES

2.7.1 Services by Consulting Firm

The work for Diverse other services, as agreed shall be in accordance with the requirements of the Agency as stipulated from time to time.

The following other diverse services may be instructed by the Agency:

(a) Making arrangements for wayleaves, servitudes and the acquisition of land including

the preparation of diagrams and the supplying of Deeds office search terms, copies of Title Deeds and S.G. Diagrams.

(b) Negotiating and arranging for the provision or diversion of utility services not forming

part of the Works. (c) Making such revisions as may be required to obtain the formal approval of the

appropriate Government Departments or Public Authorities, resulting from decisions of such departments or authorities arising out of changes in policy and other causes beyond the Consulting Firm's control.

(d) Holding detailed inspections; reviewing and checking of designs and drawings not by

the Consulting Firm and submitted by any Contractor or potential Contractor as alternative to those embodied in the tender or similar documents prepared by the Consulting Firm.

13


(e) Providing services arising from the failure of any Contractor to perform his contract.

(f) Performing services that are customarily or contractually incumbent upon the Contractor to perform, whether by virtue of special contractual provisions relieving the Contractor of special customary obligations or in consequence of the Contractor's failure to meet contractual obligations.

(g) Providing services of an extra-ordinary and continuing nature in determining any

remedial measure, making any additional or more extended site visits or resolving any disputes which are the direct and necessary consequence of any failure by the Contractor to comply with any specifications, drawings, procedures, construction programmes, time table or due completion date with which he is required to comply in terms of the Contract if so agreed with the Agency.

(h) Assisting with services, if required by the Agency, for the compilation of tender

documents, letting of tenders, site inspections and site supervision of drilling contracts, other geotechnical contracts and independent testing contracts for construction acceptance control testing.

(i) Conduct meetings with affected communities and relevant forums at pre-tender and

construction Stage to establish communication channels, skills audits and to determine issues impacting on the tender and construction Stage. This will only be reimbursed if specifically instructed and agreed by the Agency for Projects in which labour intensive works are incorporated.

(j) The compilation of subsidiary documentation as instructed by Agency (k) Providing ad-hoc services and any other services as requested by the Agency.

2.7.2 Services rendered by other Service Providers If so decided by the Agency any of the services listed in sub-section 2.7.1 herein may be conducted by separate service providers in accordance with arrangements by the Agency. In this instance separate agreements, outside this Agreement, will be made by the Agency.

14


3. THE BASIS OF REMUNERATION TO THE CONSULTING FIRM 3.1 COST OF ENGINEERING WORKS AND FEES 3.1.1 Estimated Cost of the Works

The calculation of the Total fee when the final cost of the Works is not known, is to be based on the estimated cost of the Works using the Agency's "Unit Rates for Road and Bridge Works" adjusted as required and agreed by the Agency for the completion date as provided in PART A of the Agreement. In this instance the design fees for the applicable Stage will not be subject to adjustment at any later date except as provided for in sub-section 3.1.8 of this Annexure. Where a rate is not available in the "Unit Rates for Road and Bridge Works" a mutually agreed rate will be used in the preparation of the estimated cost. When rates are in the opinion of the Consulting Firm not applicable, motivation for the use of other appropriate rates shall be provided for the approval of the Agency. The estimated cost, shall exclude any provisions for contract price adjustment and contingencies but shall be increased by a multiplying factor using agreed current escalation figures and extrapolated over an agreed and expected contract period plus the costs described in sub-section 3.1.2 and 3.1.8, if applicable but excluding the costs described in sub-section 3.1.3. The costs of Works, adjusted with this multiplying factor, will represent the final total cost of Works for the purposes of calculating percentage fees. In respect of the detailed design Stage, the rates in the accepted tender shall be used if they are available, instead of the "Unit Rates for Road and Bridge Works". In the event where the tender rates are used however, the final fees will be based on the final cost of Works as defined in sub-section 3.1.4 hereof.

3.1.2 The Cost of Works shall include the following:

(a) Where the Agency provides labour, tools, construction plant or materials,

manufactured goods or machinery for incorporation in the Works, a direct and fair valuation will be made based on normal charges by Contractors for similar items including overheads, depreciation, waste and repairs, profit, and

(b) a fair valuation of the difference between the cost price of any manufactured goods,

second-hand materials, or machinery incorporated in the Works and the market value of such materials, manufactured goods and machinery as though they were purchased new.

3.1.3 The Cost of the Works shall not include:

(a) Administrative expenses incurred by the Agency; (b) Professional fees and disbursements; (c) Cost of normal duties reimbursements, additional services, special services and

assignments, and all other services as described in sub-section 1.4. (d) Salaries, travelling, out-of-pocket and office expenses of site staff; (e) Finance costs and charges incurred by the Agency; (f) Cost of land, servitudes and wayleaves. (g) Cost of work designed by specialist services described in sub-section 3.1.9 (h) Value Added Tax (VAT)

15


3.1.4 Final Cost of the Works

Where in terms of sub-sections 3.1.1 or 3.2.2(d), 3.2.3(d), 3.3.1(d) and 3.3.2(d) the Total fee payable for the detailed design or construction Stage respectively of the work is to be based on the final cost of the Works, such cost shall be the amount certified for payment to Contractors in respect of work designed, specified or administered by the Consulting Firm before deduction of liquidated damages, reduced payments for quality or penalties, but including the total contract price adjustment actually certified for payment in terms of the contract, including the costs described in sub-section 3.1.2 and 3.1.8 if applicable but excluding the costs described in sub-section 3.1.3.

3.1.5 Damage or Destruction of Works

If, at any time before the completion of Works, any part of Works or of the equipment for

Works is damaged or destroyed by operation of war, fire, storm, flood or other cause beyond the control of the Consulting Firm, the Agency shall pay to the Consulting Firm the appropriate fee on a time and cost basis for any additional services which may be required of it by the Agency including design, inspection and administration as a result of such damage or destruction.

3.1.6 Postponement, Cancellation or Abandonment of Works

In the event of the Works being postponed, cancelled or abandoned under the terms of B27.1 (i) and B27.1 (v) of the Agreement at a time when the Stage of the work is incomplete, the service shall be accepted to be a Partial Service as described in sub-section 3.3 of this Annexure.

In this instance the cost of the final Works estimated as prescribed and as planned at the time of postponement, will be taken as the final cost of the Works for fee purposes.

3.1.7 Drop-off and Take-up Fees of Work Previously Abandoned or Postponed

All fees and drop-off fees of abandoned and or postponed Projects in terms of clauses B26, B27.1 (i) and B27.1 (v) of the Agreement will be calculated on the Cost of the Works at the time when the Project was abandoned or postponed. All fees and take up fees of previously abandoned Projects will be calculated on the cost of the Works as finalised for the Project to be continued with as per the Agency’s instructions.

3.1.8 Alterations or Modifications to Designs

In the event of circumstances arising which:

(a) could not have been reasonably foreseen by the Consulting Firm; or (b) in the event of the Agency modifying the design requirements necessitating alterations

to complete designs or requesting alterations to designs in progress already completed, which require further alteration or redoing of any specification, drawing or other document prepared in whole or in part by the Consulting Firm;

(c) then the whole of the cost of revising, amending or reproducing such designs,

drawings or documents to bring work up to the Stage at which it was modified shall be subject to additional remuneration calculated on a time basis as set out in Annexure 2 or as mutually agreed upon between the Agency and the Consulting Firm regardless of the cost estimate of the Works. It can however, be agreed that such alterations be aid for on a fee basis by adjustment of the total cost of the Works previously determined. Variation orders issued on site during the Construction of the Works, requiring further investigation and design work which could not have been foreseen by the Consulting

16


Firm, will also be treated in terms of this sub-section. The Consulting Firm shall timeously advise the Agency of any circumstances that might give rise to such additional remuneration.

3.1.9 Work Undertaken by Specialists

The cost of the Works for which the design has been undertaken by specialists (or similar) and separately remunerated by the Agency, shall not be included in the cost estimates for the determination of fees.

3.1.10 Time and Cost Budgets

For work which is to be undertaken on a time and cost basis as set out in Annexure 2, the Consulting Firm shall submit for approval to the Agency budget expenditure details to verify the estimated cost of fees as foreseen by the Consulting Firm for the Work or Stage of the Work required by the Agency. In this case the scope of the Work will be clearly defined and agreed upon.

3.2 REMUNERATION FOR FULL SERVICES

3.2.1 General

The fee for each Stage shall become payable on completion of the particular Stage concerned and shall be final with the exception of the fee for preliminary design which shall be finalised as provided for in sub-section 3.2.2(b) and the fee for detailed design which may be adjusted in terms of sub-sections 3.1.1, 3.1.4 and 3.1.8 of this Annexure. Interim payments of the fee for any Stage shall, where appropriate, be made on a pro-rata basis. Interim progress payments shall be made in terms of progress as agreed upon with the Agency in terms of sub-section 4.12 of this Annexure. In the event where the indicated progress percentages reflected on the tables are not appropriate a method to measure progress will be agreed upon between the parties.

3.2.2 New Works

The percentage of the basic fee applicable to each subsequent Stage shall be as follows unless otherwise agreed to:

(a) Preliminary Investigation Stage (and/or route location Stage)

For this Stage the fee shall be five (5) percent of the adjusted basic fee. If the report, with prior approval of the Agency, deals with more than one alternative, the fee shall be based on the combined estimated cost of the alternatives so reported on.

Alternatively, if mutually agreed, the fee for this Stage may be determined on a time and cost basis as set out in Annexure 2. The fee shall become due to the Consulting Firm on the submission of the preliminary proposals or feasibility studies to the Agency.

(b) Preliminary Design Stage

Twenty (20) percent or as otherwise approved by the Agency of the adjusted basic fee is payable when the preliminary design proposals for the construction of the Works have been prepared and submitted to and approved by the Agency.

Should there be any extensions of the Project during the detailed design Stage requiring adjustment of the preliminary design by instruction of the Agency, this

17


remuneration shall be adjusted as soon as the bill of quantities of the detail design and documentation Stage has been approved. Such adjustment shall be made by revising the quantities reflected in the preliminary design report to correspond with those approved in the detailed design. The fee, based on the percentage approved, shall then be re-calculated on the revised quantities and any additional amount shall be paid to the Consulting Firm. The Agency will, however, retain the options as described in sub-sections 3.1.4 and 3.1.8 for time and cost payment for adjustment of the preliminary design in terms of which additional percentage fees as above will not be payable.


Fifty (50) percent or as otherwise approved by the Agency of the adjusted basic fee is payable when the detailed design, reports, drawings and other documents necessary to enable the Works to be tendered for or otherwise placed by the Agency have been fully completed and submitted to and approved by the Agency. Should the Agency decide not to proceed with the tender process on completion of the detail design the Consulting Firm will only be required to submit the required sets of reports; 3 sets of contract documents comprising the bill of quantities, draft project specifications and A0 drawings, microfilms and electronic copies, if required, to the Agency in lieu of the full requirements for contract documents.

(d) Tender and Construction Stage

Twenty five (25) percent or as otherwise approved of the adjusted basic fee as and when the Construction or installation work proceeds in proportion to the cost of the Works completed, and based on the full and final cost of the engineering works. This phase will amongst others include the finalisation of the contract documents, site inspection, tender evaluations, tender report and recommendations to the Agency. The final payment(s) to the Consulting Firm will be subject to a deduction on normal fees payable to the Consulting Firm in the amount of ten (10) percent of the fee for this Stage with a maximum of R50 000 (Fifty Thousand Rand) until such time as the "As Built" drawings, materials records, construction reports and operation and maintenance manuals (if required) have been submitted in the prescribed formats to and approved by the Agency.


The percentage of the basic fee applicable to each subsequent Stage shall be as follows unless otherwise indicated or agreed to:

(a) Initial Assessment Stage

For this Stage the fee shall be calculated on a time and cost basis in terms of

Annexure 2 and shall become due to the Consulting Firm on the submission and approval of the Initial Assessment Report.

(b) Detailed Assessment Stage

For this Stage the fee shall be calculated on a time and cost basis in terms of

Annexure 2 or on a method as mutually agreed upon between the Agency and the Consulting Firm and shall become due to the Consulting Firm on the submission to and approval by the Agency of the Detail Assessment Report.

18



Fifty (50) percent or as otherwise approved by the Agency of the adjusted basic fee when the detailed design, reports, drawings and other documents necessary to enable the Works to be tendered for or otherwise placed by the Agency have been fully completed and submitted to and approved by the Agency. Should the Agency decide not to proceed with the tender process on completion of the Detail Design the Consulting Firm will only be required to submit the required sets of reports; 3 sets of contract documents comprising the bill of quantities and draft project specifications and A0 drawings, microfilms and electronic copies, if required, to the Agency in lieu of the full requirements for contract documents.

For Routine maintenance Projects the fee shall be calculated on a time and cost basis

in terms on Annexure 2 of this Agreement.

(d) Tender and Construction/Operation Stage

Twenty five (25) percent or as otherwise approved by the Agency of the adjusted basic fee as and when the construction or installation Work proceeds in proportion to the cost of the Works completed, and based on the full and final cost of the engineering works.

This phase will include the finalisation of the contract documents, site inspections, tender evaluations, tender reports and recommendations to the Agency.

The final payment(s) to the Consulting Firm will be subject to a deduction on normal

fees payable to the Consulting Firm in the amount of (10) percent of the fee for this Stage with a maximum of R50 000,00 (Fifty Thousand Rand) until such time as the "As Built" drawings, materials records, construction reports and operation and maintenance manuals (if required) have been submitted in the prescribed format to and approved by the Agency.

3.3 REMUNERATION FOR PARTIAL SERVICES

In the remuneration for Partial Services provision is made for additional payment to the

Consulting Firm referred to as “Take up” and “Drop off” fees. The reason for “Take up” fees is to compensate the Consulting Firm for additional costs incurred to evaluate, study and advise on the previous Stages or additional Work required if the previous Stage(s) has not been undertaken at all. Similarly “Drop off” fees are paid to compensate the Consulting Firm for a shortfall in the fees due to the transfer of continuity between Stages or the interruption if a Stage is stopped or postponed before completion. Should the Services of the Consulting Firm be terminated due to breach of contract then no “Drop off fee” shall be payable. The details for take-up and drop-off fees for partial services are indicated in Tables 3.3.1 and 3.3.2. The percentage of the full fee applicable to each subsequent Stage shall be as follows unless otherwise agreed to:

3.3.1 New Works

(a) Preliminary Investigation/Route Location Stage only

For this Stage the fee shall be five (5) percent or as otherwise approved by the Agency of the adjusted basic fee. If the report with prior approval of the Agency deals with more than one scheme, the fee shall be based on the combined estimated cost of the alternatives so reported on. Alternatively, if mutually agreed the fee for this Stage may be determined on a time basis as set out in Annexure 2. The fee shall become due to the Consulting Firm on the submission of the preliminary proposals or feasibility studies to the Agency. No “take-up” or “drop-off” fee is applicable to this Stage of the work.

19


(b) Preliminary Design Stage only

Twenty (20) percent or as otherwise approved by the Agency of the adjusted basic fee plus a "take up" fee on a time cost basis to a maximum of 5% or a fee up to 5% of the adjusted basic fee, as mutually agreed, is payable when the basic design proposals for the construction of the Works have been prepared and submitted to and approved by the Agency. No "drop off" fee is payable for this phase of the work.

(c) Detailed Design and Documentation only

Fifty (50) percent or as otherwise approved by the Agency of the adjusted basic fee is payable when the detailed design, reports, drawings and other documents necessary to enable the Works to be tendered for or otherwise placed by the Agency have been fully completed and submitted to and approved by the Agency. An additional "take up" fee on a time cost basis to a maximum of 10% or a fee up to 10%, as mutually agreed, as well as a "drop off" fee of 5% of the basic fee is also payable to the Consulting Firm. The Consulting Firm will be required to submit the required sets of reports; 3 sets of contract documents comprising the bill of quantities, draft project specifications; A0 drawings, microfilms and electronic copies, if required, to the Agency in lieu of the full requirements for contract documents.

(d) Tender and Construction Stage only

Twenty five (25) percent or as otherwise approved by the Agency of the adjusted basic fee plus a "take up" fee on a time cost basis to a maximum of 10% or a fee up to 10% of the basic fee, as mutually agreed. In the event where this Stage, after commencement, gets interrupted for longer than two years or terminated, the percentage of the adjusted basic fee for this Stage shall be proportioned in accordance with the ratio of work completed versus the total estimated cost of Works. In addition to the above proportioned “percentage fee” a “drop-off” fee of 5%, based on the total estimated cost of Works as defined in sub-section 3.1.1 of this Annexure, is also payable.

This phase will amongst others include the finalisation of the contract documents, site inspections, tender evaluations, tender reports and recommendations to the Agency.

The final payment(s) to the Consulting Firm will be subject to a deduction on normal fees payable to the Consulting Firm in the amount of ten (10) percent of the fee for this Stage with a maximum of R50 000,00 (Fifty Thousand Rand) until such time as the "As Built" drawings, materials records, construction reports and operation and maintenance manuals (if required) have been submitted in the prescribed format to and approved by the Agency.

21

TABL

E 3.

3.1:

NEW

WO

RKS

: Pe

rcen

tage

Fee

s Pa

yabl

e

PAR

TIAL

SER

VIC

ES

St

age

FULL

SER

VIC

E Si

ngle

or

Inte

rrup

ted

Stag

e U

p to

Det

aile

d D

esig

n U

p to

pre

limin

ary

Des

ign

Prel

imin

ary

Des

ign

& d

etai

led

desi

gn

Prel

imin

ary

desi

gn

and

deta

iled

desi

gn a

nd

cons

truc

tion

Det

aile

d de

sign

and

co

nstr

uctio

n.

Con

stru

ctio

n.

T

N

D

T

N

D

T N

D

T

N

D

T

N

D

T

N

D

T

N

D

T

N

D

Prel

imin

ary

Inve

stig

atio

n

5 or

TC

5 or

TC

5 or

TC

5 or

TC

Prel

imin

ary

Des

ign

20

TC

or

up

to 5

20

20

20

TC

Or

up to

5

20

TC

or u

p to

5

20

Det

aile

d D

esig

n an

d D

ocum

enta

tion

50

TC

or

up

to 1

0

50

5

50

5

50

5

50

TC

or

up

to 5

50

Tend

er a

nd

Con

stru

ctio

n

25

TC

or

up

to

10

25

5*

25

5*

25

5*

TC

or

up

to

10

25

5*

TABL

E 3.

3.2:

REH

ABIL

ITAT

ION

, RO

UTI

NE

MAI

NTE

NAN

CE

AND

TO

LL O

PER

ATIO

NS:

Per

cent

age

Fees

Pay

able

FULL

SER

VIC

E PA

RTI

AL S

ERVI

CES

Stag

e

Sing

le o

r In

terr

upte

d U

p to

Det

aile

d D

esig

n U

p to

Det

aile

d As

sess

men

t

Det

aile

d As

sess

men

t and

D

etai

led

Des

ign

Det

aile

d As

sess

men

t D

etai

led

Des

ign

and

Con

stru

ctio

n

Det

aile

d D

esig

n &

C

onst

ruct

ion

Con

stru

ctio

n/

Ope

ratio

ns

T N

D

T N

D

T

N

D

T N

D

T N

D

T

N

D

T

N

D

T

N

D

Initi

al

Asse

ssm

ent

TC

TC

TC

TC

D

etai

led

Asse

ssm

ent

TC

TC

TC

TC

TC

TC

D

etai

led

Des

ign

and

Doc

umen

tatio

n

- 50

TC

or u

p to

10

50

5

50

5

50

5

50

TC

or u

p to

10

50

Tend

er a

nd

Con

stru

ctio

n

25

TC

or u

p to

10

25

5*

25

5*

25

5*

TC

or u

p to

10

25

5*

Not

es

(1)

T ...

......

=...

......

......

."Ta

ke u

p" fe

e on

tim

e co

st to

the

max

imum

of t

he fe

e va

lue

stat

ed o

r a fe

e up

to th

e pe

rcen

tage

sta

ted

or a

fee

agre

ed u

pon

not e

xcee

ding

the

max

imum

sta

ted

N

......

....=

......

......

....N

orm

al fe

e

D...

......

.=...

......

......

."D

rop

off"

fee

TC

......

..=...

......

......

.Tim

e C

ost

(2)

Num

eric

al n

umbe

rs in

dica

te p

erce

ntag

e of

bas

ic fe

e as

agr

eed

upon

whe

re a

pplic

able

(3

) *O

nly

whe

n ab

ando

ned

in te

rms

of c

laus

es 2

6 an

d 27

of t

he G

ener

al C

ondi

tions

of t

he A

gree

men

t

22



(a) Initial Assessment Stage only

For this Stage the fee shall be calculated on a time and cost basis in terms of Annexure 2. The fee shall become due to the Consulting Firm on the submission and approval of the initial assessment report.

(b) Detailed Assessment Stage only

For this Stage the fee shall be calculated on a time and cost basis in terms of Annexure 2 or on a method as mutually agreed upon between the Agency and the Consulting Firm and shall become due to the Consulting Firm on the submission and approval of the detailed assessment report.

(c) Detailed Design and Documentation Stage only

Fifty (50) percent or as otherwise approved by the Agency of the adjusted basic fee when the detail design, reports, drawings and other documents necessary to enable the Works to be tendered for or otherwise placed by the Agency have been fully completed and submitted to and approved by the Agency. An additional "take up" fee on a time cost basis to a maximum of 10% or a fee up to 10%, as mutually agreed, as well as a "drop off" fee of 5% of the basic fee is also payable to the Consulting Firm. The Consulting Firm will be required to submit the required sets of reports; 3 sets of contract documents comprising the bill of quantities, draft project specifications; A0 drawings, microfilms and electronic copies, if required, to the Agency in lieu of the full requirements for contract documents.

For routine maintenance projects the fee shall be calculated on a time and cost basis in terms of Annexure 2 of this Agreement.

(d) Tender and Construction/Operation Stage only

Twenty (25) percent or as otherwise approved by the Agency of the adjusted basic fee plus a "take up" fee on a time cost basis to a maximum of 10% or a fee up to 10% of the adjusted basic fee, as mutually agreed. In the event where this Stage, after commencement, gets interrupted for longer than two years or terminated, the percentage of the adjusted basic fee for this Stage shall be proportioned in accordance with the ratio of the work completed versus the total estimated cost of the Works. In addition to the above proportioned “percentage fee” a “drop-off” fee of 5%, based on the total estimated cost of Works as defined in sub-section 3.1.1 of this Annexure, is also payable.

This phase will amongst others include the finalisation of the contract documents, site inspections, tender evaluations, tender reports and recommendations to the Agency.

In the event that the scope of the work during this Stage is changed to include additional design work, such work will be paid for on a time and cost basis in terms of Annexure 2, or as agreed to by the Agency.

The final payment(s) to the Consulting Firm will be subject to a deduction on normal fees payable to the Consulting Firm in the amount of 10 % (ten percent) of the fee for this Stage with a maximum of R50 000,00 (Fifty Thousand Rand) until such time as the "As Built" drawings, materials records, construction reports and operations and maintenance manuals (if required) have been submitted in the prescribed format to and approved by the Agency.

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3.3.3 Combination of Stages (Partial services)

In the event where the Consulting Firm is appointed for more than one Stage which follows upon each other “take-up” and “drop-off” fees will only be applicable at the beginning of the first Stage and at the end of the last Stage respectively, if applicable.

3.4 REIMBURSABLE EXPENDITURE: NORMAL DUTIES

The items defined in sub-sections 1.4.1, 1.4.2 and 2.3 form part of normal duties without specific instruction of the Agency.

The costs incurred by the Consulting Firm for these duties are reimbursed in terms of Tables 3 and 4 of Annexure 3. The tables applicable at the date of the letter of appointment will remain unchanged for the duration of the Agreement, except for postponement or delays as per clause B27 of the Agreement. However, in the event where a multistage appointment is included in the Agreement the relevant tables (as revised) at the starting dates of the various Stages shall be applied for reimbursement. Direct reimbursable costs in terms of Annexure 2 applicable to the Tender and Construction Stage will, however be changed as revised from time to time by the Agency.

All other disbursable costs incurred on behalf of the Agency and paid by the Consulting Firm not depicted in the mentioned Tables and agreed to by the Agency to an outside service provider and not forming part of the normal fees or disbursement tables as herein included shall be reimbursed by the Agency at the rates and tariffs applicable at the time when the service(s) is conducted.

A finance charge of 10% payable by the Agency on the amount paid by the Consulting Firm shall be applicable to such disbursement paid by the Consulting Firm not included in the tables and agreed to by the Agency.

3.5 REIMBURSABLE EXPENDITURE: ADDITIONAL SERVICES

The following services are reimbursed in addition to the basic fees:

3.5.1 Laboratory Testing and Land Surveying

The cost with regard to services such as laboratory testing and land surveying work are reimbursable at the rates approved by and with the prior consent of the Agency. In the case where estimated costs are less than R150 000,00 per assignment or event the Consulting Firm is permitted to obtain rates from a mutually agreed reputable service company or firm and present such rates for approval. Should the estimated costs exceed the R150 000,00 limit, quotations or tenders, whichever is preferred by the Agency, must be obtained and approved. Such quotes or tenders will close at the relevant Regional Office of the Agency. A surcharge on the cumulative cost of the work will be payable to the Consulting Firm. This surcharge will be 10% on the first R20 000,00 and 5% on the cost of all subsequent work. The surcharge is also payable on work carried out by laboratories or surveyors attached to the Consulting Firm.

If agreed to by the Agency, additional laboratory testing for design or quality assurance can be undertaken by laboratories approved by the Agency at testing rates as indicated in Appendix 3 of Standard Annexure 3.

3.5.2 Roadbed and Borrow-Pit Materials Investigations

Remuneration for all fieldwork necessary for the materials investigation and sampling will be on a time and cost basis in accordance with Annexure 2 or on rates mutually agreed upon between the Consulting Firm and the Agency. The work can be undertaken by the

24


Consulting Firm or any other approved firm on the condition that the staff involved and the scope of the work and methods employed shall in all cases be approved by the Agency. If the estimated cost exceeds the R150 000,00 limit, quotations or tenders, whichever is preferred by the Agency, must be obtained and approved. Such quotes or tenders will close at the relevant Regional Office of the Agency. A surcharge on the cumulative cost of the work will be payable to the Consulting Firm. This surcharge will be ten (10) percent on the first R20 000,00 and five (5) percent on the cost of all subsequent work. The surcharge is also payable on work carried out by laboratories or surveyors attached to the Consulting Firm.

3.5.3 Geotechnical and Drilling Contracts

The cost of geotechnical and drilling contracts shall not be added to the total cost of the Works but treated separately. The actual costs for this work will be paid directly by the Agency. The remuneration for the work involved in the planning, documentation and letting of the contract and head office supervision shall be either on a time-cost basis for small contracts, as mutually agreed, or for larger contracts in accordance with the scale of basic fees in sub-section 4.2.1(a) based on the value of the accepted tender of which 75% of the fees are payable at the submission of the Tender Report and the balance, if applicable, at the completion of the Contract. Reimbursable costs such as printing, subsistence and travelling shall be paid on a time-cost basis (Annexure 2). The remuneration for site staff for part time or full time supervision shall be in accordance with sub-section 4.5.5 and/or on a time-cost basis as mutually agreed beforehand.

3.5.4 Provision of Site Laboratory Equipment, Surveying Equipment and Additional Material

Testing

Remuneration for the provision of site laboratory equipment as well as for surveying on site will be in accordance with Tables 5 and 6 as in Annexure 3. Expenditure for correlation testing (laboratory and survey) as agreed shall be reimbursed by the Agency.

At the commencement of the construction Works, the Consulting Firm shall prepare lists of equipment which it intends using on site and mutually agree with the Agency on the equipment, the applicable monthly rate and factors as set out in the tables, which shall thereafter, unless the nature of Works changes substantially, be fixed for the duration of the Contract or Stage of the work, whichever is applicable. The periods for which the equipment shall be remunerated shall be mutually agreed between the parties during the course of the construction works.

The stipulations of sub-section 2.4.2 shall apply to determine the exact rate payable. The transport of the equipment to and from the site will be on an agreed upon rate with the Agency.

The Agency however reserves the right to have in part or all the testing and surveying on site undertaken by an outside company (firm).


The actual costs of site staff provided by the Consulting Firm including the following items as approved by the Agency, will be reimbursable by the Agency:

• Annual cost of employment plus such mark-up as defined (for details on the annual

cost of employment see Annexure 2).

• Relocation costs after delivery of quotations to the Agency and the approval thereof.

• Re-settlement costs as agreed to by the Agency including certain allowances, school

25


clothes etc. normally paid by the Consulting Firm. • Site staff relocated for the purposes of site supervision will be provided with housing as

agreed with the Agency. Site staff occupying their normal housing, without being relocated, will be paid in terms of Table 7 of Annexure 3. In the event of occupying normal housing the travel distance claimable between home and the site must be agreed to with the Agency.

• In service travelling for business purposes only will be refunded by the Agency. Such

business travelling shall be agreed to from time to time with the Agency. • Reasonable additional time periods before the commencement and after the

completion of the construction Works will be, if justifiable, considered by the Agency.

3.5.6 Leader of the Professional Team

The fees for the appointed Leader of the Professional Team shall be as in sub-section 4.5.6 of this Annexure or on a time-cost basis (Annexure 2) as agreed upon with the Agency.

3.6 PREPARATION OF DIAGRAMS FOR LAND ACQUISITION

The cost for the preparation of notices, diagrams and the supplying of Deeds office search

forms, copies of the Title Deeds and S.G Diagrams shall be paid for on a time and cost basis (Annexure 2) per diagram, for the acquisition of land provided that the average cost per Project shall not exceed R1 500,00 per individual diagram, without prior approval by the Agency.


The remuneration to the Consulting Firm for these services shall, unless otherwise provided

for, be on a time and cost basis (Annexure 2) or on a method as mutually agreed beforehand between the Agency and the Consulting Firm. If so required by the Agency, quotes and/or formal tenders will be called for by the Consulting Firm for the approval by the Agency. The remuneration shall become due to the Consulting Firm on the submission and approval of a report to the Agency.

The Agency may decide to arrange work by itself in which case no surcharge will be payable.

3.8 DIVERSE OTHER SERVICES 3.8.1 General

All diverse services as per sub-sections 1.4.8 to 1.4.14 if specifically called for and as agreed to by the Agency will be reimbursable at cost plus a surcharge, on a time and cost basis (Annexure 2) or on a fee basis as may be applicable (see sub-sections 1.4.13 and 1.4.14). A surcharge will be payable on costs and or fees for diverse other services paid on behalf of the Agency by the Consulting Firm as per sub-section 4.9 of this Annexure.

3.8.2 Work done by Service Providers Appointed by the Agency

The fees for work done by these service providers, and if so agreed by the Agency shall be in accordance with the methodology agreed upon by the Agency. The Consulting Firm shall process and pay such service providers and claim their fees from the Agency together with a surcharge in terms of sub-section 4.9 of this Annexure.

If so agreed between the parties the Agency may pay a service provider if the applicable service was arranged and instituted by the Agency. In this instance no surcharge will be paid

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by the Agency to the Consulting Firm.

3.8.3 Arranging Site Inspections and Tenderers’ Meetings

The costs with regard to hiring a suitable venue, appropriate vehicles to transport prospective tenderers, excavations to open test pits in borrowpits or trenches in cuttings and a suitable vehicle to transport core boxes to the site are reimbursable with the prior consent and approval of the Agency.

Reimbursement shall be at cost plus a surcharge per sub-section 4.9 and on a time and cost basis (Annexure 2) for the opening of test pits. Should the latter be outsourced by the Consulting Firm and if so agreed upon by the Agency, the surcharge stated will also be payable.

The provision of refreshments and/or meals for those attending the site inspection or Tenderers’ meeting shall be at the discretion of and to the account of the Consulting Engineer.

3.9 SURCHARGE ON COSTS INCURRED ON BEHALF OF THE AGENCY

A surcharge is payable for approved expenditure occurred by the Consulting Firm on behalf of the Agency in terms of sub-section 4.9 of this Annexure. No surcharge is payable on the reimbursable costs included in Tables 3 – 7 of Annexure 3. The surcharge for specific Additional Services, as defined in sub-section 3.5.1 and 3.5.2 is payable. No surcharge shall be payable on Value Added Tax.

3.10 TIME AND COST BASIS BUDGETS

For any time-cost remuneration the Consulting Engineer shall provide the Agency, for it’s

approval, with a detailed budget indicating members of its’ staff and expected time with the applicable rates. The indicated budget shall not be exceeded without the prior consent of the Agency.

3.11 INTERIM PAYMENTS TO THE CONSULTING FIRM

3.11.1 Interim Payments

It is a requirement of the Agency that interim payment certificates be submitted by the

Consulting Firm on a regular basis as required and agreed upon from time to time between the Agency and the Consulting Firm.

3.11.2 Progress of Design for Interim Payments

The progress for preliminary and detail designs shall be determined in accordance with sub-section 4.12 of this Annexure and as agreed upon with the Agency. These tables shall however not be used for assessment of payment when only certain parts of the work as indicated are undertaken by the Consulting Firm due to the nature of the work.

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4. TARIFF OF FEES FOR ENGINEERING SERVICES RENDERED 4.1 GENERAL

4.1.1 Variation in Rates and Fees

The rates, allowances and payments for reimbursable costs related to normal duties are set out in sub-section 4.4 of this Annexure. It is mutually agreed that these rates and fee scales as set out in sub-section 4.2.1 will be fixed for the tenure of the Agreement. If revised fee scales or rates are published during the tenure of the Agreement, the revised fee scale or rates shall apply only to the Stage that, on the effective date of the revision, has not yet commenced. The date of the letter of award, the dates in PART A of the Agreement or the instruction to commence or continue the next Stage will define the starting dates of the Stages.

Should the work be postponed or abandoned by the Agency as allowed for in clause B27 of the Agreement and later on commence again, the rates and fees will be altered to those applicable when the work was recommenced. In the latter instance similar arrangements will be applicable regarding the reimbursements made in accordance with the applicable tables pertaining to this Agreement.

4.1.2 Other Disciplines

Where other disciplines are involved on a Project the fees to be paid for the portion of the Project undertaken by the consultant in question shall be in accordance with the appropriate scale of fees for that discipline or as agreed by the Agency beforehand.

4.1.3 Date of Gazetted Percentage Fees

The percentage fees herein depicted are in accordance with the Government Gazette(s) as published from time to time and incorporated in Annexure 3 applicable to the relevant Stage.

4.2 SERVICES OF NORMAL CHARACTER 4.2.1 Civil and Structural Engineering Services

a) Basic Fee

The basic fees in terms of the applicable Government Gazette(s) are indicated in Annexure 3, Table 1.

b) Additional Fee for Reinforced Concrete Portion of the Works

The additional fee on the reinforced concrete portion of the Works, including concrete, reinforcement and formwork, which involves complete structural design on the part of the Consulting Firm, inclusive of all items in the schedule of quantities relating to the Works in question shall be in accordance with Table 2 of Annexure 3. Specific reference shall be made to the notes of this table.

c) Additional Fee for Structural Steelwork Portion of the Works

The additional fee for the structural steelwork portion of the Works shall be calculated at fifty (50) percent of the additional fee for the reinforced concrete portion of the Works as set out in sub-section 4.2.1(b) provided the Consulting Firm does the full detailing.

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d) Additional Fee for Structural Portion of the Works in Other Materials

The additional fee for the structural work in other materials shall be as agreed between the Agency and the Consulting Firm.

e) Reduction in Fee for Structural Portions of the Works which are Standard

Designs

Where the design of the structural portion of the work, or part thereof, is undertaken using the Agency’s standard design manuals, drawing, etc, the additional fee for the structural portion of the work as determined in sub-section 4.2.1(b) shall be reduced by fifty (50) percent in respect of the portion of the work so designed.

f) Special Fee Adjustments for Services Provided in respect of Different Road

Categories Roadworks The fee for roadworks shall be calculated in the manner set out for civil and structural engineering services under sub-section 4.2.1(a) except that the fee for the roadworks element of the Project (that is, excluding the fee for the structural element and other non-road works) shall be reduced by the appropriate percentage as listed below and as mutually agreed with the Agency at the outset.

TABLE 4.2.1

DIFFERENT ROAD CATEGORIES FOR ADJUSTMENT OF ROAD PORTION OF THE BASIC

FEE

Type of Roadworks

Percentage reduction for

the roadworks element

New

Work

Rehabilitation

1. Rural and Peri-urban single carriageway roads 20% 20%

2. Single carriageway of rural freeway 10% 20%

3. Rural freeway and conventional double carriageway roads 5% 5%

4. Peri-urban freeways and conventional double carriageway roads 5% 5%

5. Urban streets Nil Nil

6. Urban freeway and conventional double carriageway roads Nil Nil

NOTES: Should the Project consist out of more than one type of roadworks the percentage reduction can be proportioned in accordance with the nature and extent of the various classes of the roadworks.

4.2.2 Mechanical, Electrical and Electronic Engineering Works

The fees for mechanical, electrical and electronic engineering work is to be calculated according to the latest accepted appropriate tables published in terms of the Regulations pertaining to the Act on the Engineering Profession of South Africa.

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4.3 ADJUSTMENTS TO THE BASIC FEE FOR SERVICES NOT OF A NORMAL CHARACTER 4.3.1 Works Making Unusually High Demands

In respect of certain Works or parts of Works as listed herein that make demands on the Consulting Firm which are unusually high, the basic fee shall be adjusted as follows:

(a) Urban freeways For urban freeways, the fee stated in sub-section 4.2.1(a) may be increased by up to

25% as agreed with the Agency only in cases where additional work must be done by the Consulting Firm which will not be reflected in the cost of the Works.

(b) Alterations to existing works (i) For alterations to existing Works such as adding to an existing road or bridge by

widening whilst retaining the existing road or bridge, or by rehabilitation (including periodic and special maintenance) of an existing road, and similar cases as mutually agreed upon, the Total fee stated in sub-section 4.2.1(a) and 4.2.1(b) may be increased by up to 25% as agreed with the Agency in cases where the Consulting Firm has to do additional design, research work or additional work that will not be reflected in the cost of the Works.

In the case of alterations to existing bridges, the work may be undertaken on a time-cost basis as per Annexure 2 if so agreed to by the Agency.

(ii) The following factors are to be taken into account when a percentage increase is

being determined to cater for alterations to existing roads and bridges:

TABLE 4.3.1

ADJUSTMENT OF BASIC FEE FOR ALTERATION OF EXISTING WORKS

ITEM Adj.fac % DESCRIPTION DEGREE (a) (b)

1. Investigation with respect to design

(a) structures, bridges, drainage, road signs, batter slopes, etc.

(b) roads, geometric improvements, climbing lanes, shoulders etc.

not required depending on the required scope of Works

0 1-5

0 1-5

2. Variability of existing pavement in respect of:

(a) condition (b) design Uniform Slightly variable Average variable Very variable Exceedingly variable

1 2 4 5 7

1 2 3 4 5

3. (a) “As built data" Not required Required and readily available Required and available but must be sourced Information required but data not available

0 2 4 6

- - - -

4. Traffic vpd interference for aspects not covered under time & cost or remuneration or other additional services

(a) single c/way - < 2 000 2 000 – 20 000 20 000 – 50 000 > 50 000

(b) double c/way - < 4 000 4 000 – 40 000 40 000 – 80 000 > 80 000

0 1 2 3

0 1 2 3

TOTAL ADJUSTING FACTOR (a + b): Minimum: 2.5%

Maximum: 25%

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(c) Works on separate non-adjacent sites

Where Works are undertaken on separate non-adjacent sites or Works are unusually fragmented or are being constructed as separately documented in accordance with the requirements or with the consent of the Agency the fee may be calculated taking sub-section 4.2.1(a) and 4.2.1(b) as applicable to each site, contract or phase as if they were separate Works or, if inappropriate, the fee charged shall lie between the fee as derived in sub-section 4.2.1(a) and 4.2.1(b) as applicable to the total cost of Works and the fee derived taking sub-section 4.2.1(a) and 4.2.1(b) as applicable to the cost of each of the dissimilar types of Works, as if they were separate Works, at the discretion of the Agency.

(d) Other types of Works or parts of Works

In respect of other types of Works or parts of Works including, inter alia, those mentioned in sub-section 4.3.1(a) and 4.3.1(b) which make demands on the Consulting Firm which are unusually high, the Agency and Consulting Firm may agree the addition to be made to the fee stated in sub-section 4.2.1(a) and 4.2.1(b) which shall be equitable and reconcilable with the causes and extent of the unusually high demands on the Consulting Firm.

(e) Gravel Roads

For the design of gravel roads the fee stated in subsection 4.2.1 (a) may be increased

by up to 25 % as agreed with the Agency.

4.3.2 Special Provisions for Work Not of Normal Character

(a) Provided that the Consulting Firm shall, as soon as it becomes evident and generally not later then at the completion of the Preliminary Investigation or Initial Assessment Stage, inform the Agency that it considers that Works are of such a nature as to warrant an increase of the fee as aforesaid; and

(b) Provided further that if it only becomes evident subsequently that the Works are of

unusual character, the Consulting Firm shall inform the Agency without delay in which event such portion of the services of the Consulting Firm has already been completed when it informs the Agency shall not be subject to an increased fee unless the Agency agrees otherwise.

4.3.3 Works Making Unusually Low Demands

In respect of Works or parts of Work which make demands on the Consulting Firm which are unusually low or are repetitive in nature in terms of similar work undertaken in the past for the Agency, the Agency and the Consulting Firm shall agree to the fee for such Works which shall be equitable and is reconcilable with the extent and degree of the reduction in the demands on the Consulting Firm.

4.4 REIMBURSEMENT OF NORMAL DUTIES

Reference should be made to sub-sections 1.4.1, 1.4.2 and 3.4 of this Annexure.

The following items are reimbursed in terms of the specific payment items indicated in the tables contained in Annexure 3.

4.4.1 Payment for printing, binding, materials and draft copies of reports, plans and documentation;

(sub-section 1.4.1 of this Annexure) payable for each Stage as

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set out in the relevant table; Table 3

4.4.2 Allowance for travelling, accommodation and subsistence (sub-section 1.4.2 of this Annexure) payable as set out in the Table 4 relevant table; Payment for the service will be made as indicated in the notes to the mentioned tables.

4.5 REIMBURSEMENT FOR ADDITIONAL SERVICES

4.5.1 Laboratory Testing and Land Surveying

The approved costs regarding laboratory testing and land surveying are reimbursed to the Consulting Engineer when the relevant documents have been fully submitted to the Agency and the field work as may be applicable has been accepted by the Agency. Laboratory testing undertaken, as agreed, shall be paid for in terms of Appendix 3 of Standard Annexure 3. The surcharge as indicated in sub-section 3.5.1 of this Annexure is payable at the same time. If so agreed to by the Agency, interim progress payments will be made by the Agency.

4.5.2 Roadbed and Borrow-Pit Materials Investigation

This work will be paid for on a time and cost basis as per Annexure 2 in terms of a pre-determined and an agreed budget. The surcharge as indicated in sub-section 3.5.2 of this Annexure is payable at the same time.

If so agreed to by the Agency, interim progress payments will be made by the Agency.

4.5.3 Geotechnical and Drilling Costs

The costs of the geotechnical and drilling works will be directly paid to the Contractor by the Agency in the normal manner. Fees and reimbursable costs for consulting work will be paid in accordance with sub-section 3.5.3 of this Annexure.

Planning and documentation fees/costs will be payable upon completion and acceptance by the Agency. Progress payments will, however, be considered by the Agency, if warranted. Supervision and site staff payments will be on a monthly basis.

4.5.4 Provision of Site Laboratory and Survey Equipment

For the equipment required by the Agency and provided by the Consulting Firm, a monthly rental shall be payable on the basis of Table 5 and 6 of Annexure 3 or part thereof as specifically agreed to by the Agency. The applicable periods will be in accordance with the construction programme of the Contractor.

The stipulations of sub-sections 2.4.2 and 3.5.4 shall apply for calculation of the applicable rates.

The applicable Tables in Annexure 3 are as follows:

• Provision of laboratory equipment at construction sites.

Rates per month; (sub-section 1.4.3 of this Annexure) Table 5

• Provision of survey equipment at construction sites. Rates per month; (sub-section 1.4.4 of this Annexure) Table 6

Transport of site laboratory equipment at the start and end of the contract will be payable by the Agency in terms of Annexure 2 or as agreed to by the Agency.

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Rates for correlation testing as required shall be approved by the Agency. Reimbursement for such expenditure incurred by the Consulting Firm shall be in terms of sub-section 4.8 of this Annexure.


The Consulting Firm's charge for the provisions of site staff in terms of sub-sections 2.4.3 and 3.5.5 shall be calculated as follows:

(a) Total annual cost of employment (as defined in Annexure 2) on scales mutually agreed

between the Consulting Firm and the Agency inclusive of regular bonus (maximum of one month's salary) plus 65% on the cost of all staff thereby providing inter alia for the following:

• Overtime by salaried professional and semi-professional staff (qualified

Engineers, Technologists and Technicians) and all such other staff for which overtime is not payable in terms of the Labour Act

• finance charges

• ordinary leave and sick leave (1 month) • professional insurance and administrative costs • fixed percentage as allowed for in the Regulations (factor 1.3)

(Site allowances unless otherwise agreed, shall not be subject to the above 65% markup)

plus

(b) All other direct costs and allowances as mutually agreed between the Consulting Firm

and the Agency plus ten (10) percent unless otherwise indicated.

Other direct costs and allowances shall include the following:

• in service travelling expenses as agreed upon from time to time with the Agency in accordance with the tariffs in Table 8 of Annexure 3.

• transport and removal costs of site staff including resettlement allowance as

approved by the Agency such as certain allowances, school clothes etc. as is paid by the Consulting Firm.

• accommodation allowance (if any) and not forming part of the pensionable salary • site allowances specifically approved and agreed to by the Agency (Site

allowances per day over and above housing allowances shall not be considered)

• others as approved by the Agency

(c) In the case of ordinary leave and sick leave the salary for the leave period shall not be paid by the Agency. However, the 65% over and above the normal salary shall still be paid to the Consulting Firm.

(d) Overtime for site staff is only applicable to non-professional/semi-professional

employees working over and above 45 hours per week. The surcharge in this case is to be ten (10) percent and overtime rates shall not exceed those described in the applicable Labour Act.

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(e) In the event of accommodation and/or travelling allowance being part of the total annual cost of employment package such allowance shall only be subject to the 65% surcharge if satisfactory proof is provided that the allowance is pensionable, applicable to leave payment as well as annual bonus payment. The allowance mentioned shall otherwise only be subject to a surcharge of ten (10) percent only in terms of sub-section 4.5.5(b) above if so agreed to by the Agency.

(f) The total annual cost of employment packages for all staff employed on the Project

must be substantiated and detailed by an external auditor's certificate at the beginning of the Project and whenever remuneration or staff changes occur thereafter.

(g) Where Site Staff are employed on contract supervision and administration, and occupy

their normal accommodation, without being relocated, they may be reimbursed at a monthly rate in lieu of the provision of housing through the contract (sub-section 1.4.5 of this Annexure in terms of the rates as per Table 7 of Annexure 3).

4.5.6 Leader of Professional Team

The additional fee for services performed under sub-sections 2.4.4 and 3.5.6 as leader of the professional team shall be ten (10) percent of the professional fees payable to the other members of the professional team. If so agreed to by the Agency, the fees payable can alternatively be calculated on a time and cost basis.

Reimbursable costs incurred by the leader of the professional team shall be paid by the Agency in terms of Annexure 2 of the Agreement.

If so decided by the Agency payment in lieu of the percentage fees above can also be made on a time and cost basis (Annexure 2) for the work by the leader of the professional team.

4.6 PREPARATION OF DIAGRAMS FOR LAND ACQUISITION

Payment for the costs incurred by the Consulting Firm shall be on a time and cost basis in terms of Annexure 2. The tariffs and rates for the Stage of the Project at the time when the work is undertaken, at the instruction of the Agency, shall be applicable.


4.7.1 Appointed Specialists

The time and cost rates and tariffs as per Annexure 2 shall be applicable for this work. Should the hourly rates as indicated not be applicable to specialists practising in a field outside that of the Engineering profession such rates and tariffs shall be specifically approved by the Agency. A surcharge of ten (10) percent is payable to the Consulting Firm in terms of sub-section 4.9 of this Annexure.

4.7.2 Litigation and Similar Services

For litigation and similar services the Consulting Firm's fee for services performed shall be on a time basis as agreed by the Agency which shall not be less than the rate in accordance with Annexure 2 provided that for court appearances the fee shall be determined in accordance with sub-section 4.7.3 hereunder.

4.7.3 Mediation or Arbitration

For acting as mediator or arbitrator the fee shall be not less than the time charged for Category of Employment A1 as set out in Annexure 2 plus 25 percent, subject to a minimum charge for two hours.

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For acting as sole mediator, arbitrator or umpire the fees shall be not less than the time charged for Category of Employment A2 as set out in Annexure 2 plus 75 percent, subject to a minimum charge for two hours. The fee set out in this sub-section shall apply to time spent in attending the mediation, the arbitration court, in studying evidence and in framing the award.

4.7.4 Other Specialist Advice or Special Services

Should the stipulations of sub-sections 4.7.1, 4.7.2 and 4.7.3 not be applicable, and if the costs for such specialist services as required by the Agency is paid by the Consulting Firm, such actual costs shall be reimbursed by the Agency. A surcharge of ten (10) percent shall be paid by the Agency to the Consulting Firm as per sub-section 4.9 of this Annexure.

4.8 DIVERSE OTHER SERVICES

The fee for diverse additional services performed by the Consulting Firm under sub-section 2.7 shall unless otherwise provided for, be calculated on a time and cost basis as set out in Annexure 2. Should the work be undertaken by service providers outside the Consulting Firm, and paid for by the Consulting firm, a surcharge of five (5) percent in terms of sub-section 4.9 of this Annexure is payable. If a service is arranged and directly paid for by the Agency no surcharge will be paid by the Agency to the Consulting Firm.

4.9 COST INCURRED ON BEHALF OF THE AGENCY

All costs incurred by the Consulting Firm on behalf of the Agency not forming part of any other fees or disbursement herein described, shall, if specifically agreed to, be reimbursed to the Consulting Firm by the Agency. The surcharge payable on such approved disbursement shall be ten (10) percent in terms of the Act except as stipulated elsewhere in this Annexure. The surcharge paid shall include for all costs such as arrangement costs, administrative costs as well as financing costs incurred by the Consulting Firm. No surcharge on reimbursable expenditure contained in Tables 3 – 7 of Annexure 3 is payable. The surcharge on transport costs shall be 5 % only.

4.10 TIME AND COST WORK

All time and cost work to be undertaken by the Consulting Firm shall be remunerated by the Agency in terms of Annexure 2 of the Agreement.

The time charges by the Consulting Firm for all in-house work shall not be subject to the surcharge as stipulated in sub-section 4.9 of this Annexure.

The conditions of sub-section 3.10 of this Annexure shall be strictly adhered to.

4.11 TABLES FOR REIMBURSABLE EXPENDITURE

The remuneration for reimbursable expenditure is determined in accordance with the rates

indicated in the applicable Tables given in Annexure 3. These tables are revised from time to time and are as follows:

• Table 3: Rates for compiling Reports, approved plans, prints and Contract

Documentation • Table 4: Rates for Reimbursement for Transport and Subsistence • Table 5: Monthly Rate for Site Laboratory Equipment • Table 6: Monthly Rates for Site Survey Equipment • Table 7: Site Staff Monthly Accommodation Rates • Table 8: Schedule of Travel Tariffs

35


4.12 DESIGN PROGRESS FOR INTERIM PAYMENT

4.12.1 PROGRESS FOR FEES FOR WORK COMPLETED: Preliminary Design -(sub-section 3.11.2)

NO.

DESCRIPTION

PROPOSED DISTRIBUTION

(%) 1

Critical evaluation of route and determination of requirements

1,0%

2 2.1 2.2 2.3

Geometric Design Horizontal alignment Vertical alignment Intersections

7,0% 3,0% 3,0% 1,0%

3

Drainage

1,5%

4

Traffic Analysis

0,5%

5

Materials

1,5%

6

Service relocations

0,5%

7 7.1 7.2

Liaison Property owners Authorities

3,0% 2,0% 1,0%

8 8.1 8.2 8.3 8.4

Drawing work Layout plans Long. Sections Line plans Other

3,0% 1,5% 0,5% 0,5% 0,5%

9

Reports

2,0%

TOTAL

20%

NOTES:

• This table shall only be used as a guideline for the determination of progress and not to

adjust the percentage basic fee for partial services. • The percentages indicated can be altered for special cases as agreed to with the

Agency.

36


4.12.2 PROGRESS FOR FEES FOR WORK COMPLETED: Detailed Design -(sub-section 3.11.2)

NO. DESCRIPTION PROPOSED DISTRIBUTION(%)

1 Materials and Pavement Design Material investigation Material distribution plans Pavement design plans Borrow pit plans Geotechnical reports

5,5% 0,5% 2,0% 1,0% 1,0% 1,0%

2

Geometric Design Intersections Vertical alignment Horizontal alignment Cross sections

10,5% 2,0% 4,5% 2,5% 1,5%

3 Drainage Hydrology Pipe/culvert size Control points for Longitudinal sections

3,0% 1,5% 1,0% 0,5%

4 Road signs and road markings Survey of existing road signs Detail design of road signs and road markings

3,0% 0,5% 2,5%

5 Services Gathering of service description and protection measures

1,5% 1,5%

6

Drawing work Key plan Layout plan Longitudinal sections Stake line plan Intersections Typical cross section plans Drainage schedule Typical drainage plan Service schedule Service plan Road signs and road markings plans

20,5% 1,0% 2,5% 2,5% 3,5% 1,5% 0,5% 2,5% 1,0% 2,0% 1,5% 2,0%

7

Schedule of Quantities, Specifications & Design Reports Schedule of Quantities Specifications and design reports

6,0% 4,0% 2,0%

8 Proportionately calculated Structural Design (if applicable) Refer to Table 4.12.4 Including Structural Work

TOTAL 50,0% NOTES:

• This table shall only be used as a guideline for the determination of progress and not to


Agency. • All the percentages for roadworks to be proportionately adjusted to allow for structural

portion on an estimated cost basis. • For structural fees progress see Table 4.12.4

37


4.12.3 PROGRESS FOR FEES FOR WORK COMPLETED: Tender and Construction Stage

NO.

DESCRIPTION

PROPOSED DISTRIBUTION (%)

1

Arranging of Site Inspection, Report on Tenders and recommendation

5%

2

Construction and Administration

20% proportionately over the

construction period based on construction cost expected

TOTAL

25%

NOTES: • This table shall only be used as a guideline for the determination of progress and not to


Agency.

38


4.12.4 PROGRESS FOR FEES FOR WORK COMPLETED: Structural Design

NO.

DESCRIPTION

PROPOSED DISTRIBUTION (of structural fee portion only)

1

Fees forming part of basic fees: as for proportionate detail design (in terms of 4.12.2)

In accordance with percentage below

2

Structural Fees

2.1

Preliminary design of Bridge

15%

2.2

Sub-structure of Bridge: design

20 %

2.3

Super structure of Bridge

40%

2.4

Bridge drawings and steel schedules

15%

2.5

Bridge Schedules, Specifications etc

10%

TOTAL

100%