eThekwini Enterprise Development

Mon, 19 Apr 2010 10:42

An adaptation of the phrase appears apt when searching for South African examples of efficient and well-managed delivery of municipal infrastructure. Time and again, fingers point toward an innovative pilot project undertaken by eThekwini Water and Sanitation (EWS). It appears that from the very beginning, the model has ticked all the right boxes: budget, quality, timely delivery, and skills development.

Dave Larkin (Design Manager of Water and Sanitation), Alan Kee (Project Executive) and Jochen Dedekind (Lead Project Manager) offered Isiza a number of insights into this unique and enabling model of delivery; one well deserving of the attention it receives.

Tender in a Flash

Dave Larkin says, "I was promoted to Design Manager of Water & Sanitation from 1 Jan 2007, and on day one, our first major job was to get the Asbestos Cement (AC) Water mains replacement project up and running. Alan Kee and I tossed around a few ideas on how to approach the project, but complications soon arose. We not only had around 1 500km of undipped AC water mains in the Unicity, but we were dealing with a mostly unknown type of material.

AC pipes come in two forms, which are either bitumen-dipped or not. Certain types of groundwater erode the strength (ability to hold pressure) of AC pipes, which was a problem in eThekwini. The main thrust of the project was thus to replace those non-bitumen (undipped) pipes.

Dave adds, "The Unicity was an amalgamation of over 20 Local Authorities, many of whom failed to keep service records. The scope of the project was therefore undefined and work had to take place under every conceivable condition - from city centres to old, established residential areas to semi rural and even rural areas.”

Represented by Dr. Ron Watermeyer, the Department of Public Works then entered the scene with a presentation of the NEC3c (New Engineering Contract) concept - an innovative cidb-approved, targeted cost form of contract. Dave and Alan soon recognised its potential and invited the water field's more influential consultancies and contractors to a presentation, the feedback from which was extremely positive.

Dr. Watermeyer, ably assisted by some very astute colleagues, sold the concept to the Municipalities Chairman of the Bid Specification Committee (BSC) and other leading officials in the Supply Chain Management Unit (SCM). With Dr. Watermeyer supplying the basic Expression of Interest documents, Dave wrote the quality-based selection criteria and put together the final documents for prequalifying Programme Managers, Design Consultants and Contractors.

The BSC approved the documents, which were then advertised in late February and early March 2007. After closing on March 23, they were adjudicated by three officials within Water & Sanitation. The relevant Bid Committees approved the evaluations at special committee sittings and the team then proceeded with the main documents.

Dave adds, "Dr. Watermeyer was a constant source of guidance for us all, which was necessary as it took some time to understand the structure and concepts of this new form of contract.

I produced final documents for the three categories, and again, approval was obtained from the BSC at a special sitting. Committee's normally only sit once every fortnight, but these special sittings were arranged within days of my being ready, generally saving us weeks at a time.”

Final tenders were issued to the prequalified firms on May 7, 2007 and closed on May 18. The evaluation was again presented to the Bid Evaluation and Bid Adjudication Committees. These were swiftly approved and letters of award, drafted by Dave but issued by the Contracts Section, were faxed to the successful firms in the last week of June 2007.

The tenders were awarded to one Programme Manager, four Design Consultants, and four Contractors, each of whom had extensive experience and solid reputations within the water field.

The NEC Difference

There is something obviously unique about the NEC3c form of contract, which has provided the enabling framework for the entire AC pipe replacement project.

Jochen Dedekind says, "The key element of the contract is that ‘partnership' is firmly entrenched within it, and all parties work in a common contractual framework. The NEC has enhanced teamwork and collaboration amongst the key project stakeholders. An example of this would be the fortnightly meetings between the design consultants, contractors and the project manager to discuss the progress of the project. Furthermore, the flexibility inherent in the contract means that it's ideally suited to large projects, such as the replacement of infrastructure.

Community participation and buy-in has also been key to the success of the project. By creating a project identity with a distinctive logo, it's been possible for communities to recognise the project when we reach their area. The logo has been used on reflective vests, water cut posters, and flyers. An intensive media programme has been put in place as well, with coverage given to the project in both the mainstream media and community newspapers.”

In a move to engage the wider communities, Ward Councillors identified and selected a number of Community Liaison Officers (CLOs), who were actively involved in the recruitment of a local labour force. The CLOs are known by the community and act as a communication channel between the community and the contractor. In keeping with the community-centred philosophy, local businesses supply the project wherever and whenever possible.

People Power

In answer to whether the workability of the project has been attributable to unique characteristics of the people involved, Jochen is quick to mention eThekwini municipality's commitment as being fundamental. During the initial procurement phase, the municipality undertook a very careful selection process, which resulted in a number of highly capable contractors and design consultants being appointed to the project.

Jochen adds, "Alan Kee's dedication has been crucial too; his involvement, commitment and approachability have made big contributions to the project's success. Furthermore, Willie Rossouw of Lwazi Projects has ably administered the mentorship programme, which involves the development of 16 small sub-contractors into sustainable business enterprises. The aim of the programme is to advance the sub-contractors two grades up the cidb ratings during the course of the project.

Building Value

The proof is in the pudding, and so far, infrastructure has been delivered swiftly and on a large scale. It is exactly what is needed. At any given time about 200 work packages are open, meaning the pipes are being laid into the earth at pace. To date, over 1 100km of piping has been replaced. The result has been far fewer Operation & Maintenance (O&M) pipe bursts - which is extremely positive considering the vast amounts of water wasted through municipal leaks. This in turn represents a significant intervention in the municipality's overall water loss prevention strategy.

A further, and no less important, value gain is the mentorship programme, which should result in the development of sustainable enterprises with more productive capacity. This in turn will mean that the municipality have more resources for future asset replacement projects.

Lessons Learned

Alan and Jochen list a few of the major lessons learned over the course of the project thus far:

• Very important components in this type of project are well thought out procurement and contracting strategies. Dave Larkin, with expert assistance from Ron Watermeyer, were key players in this aspect of the project.

• All project players must act in a spirit of mutual trust and co-operation. Teamwork is essential for success.

• Communication between stakeholders, and especially with the communities affected by the project, is essential.

• Buy in from suppliers is vital. In the case of the AC Project, suppliers were warned of requirements well in advance and, in some cases, were prepared to hold a 6-month stock supply.

• The cidb framework gelled well with the procurement strategy and the Contractor Development Programme. Cidb guidelines have been followed and close co-operation maintained with the local cidb office.

Alan says, "In our opinion the model's chief strengths are the adaptability and flexibility which it allows. This means that role players are allowed to work to their strengths and don't need to be micro managed. The AC Project demonstrates that the model is ideal for the management of projects of this nature, provided that close cooperation is maintained between all stakeholders.”

Curiosity in the project seems to be growing, with meetings having been held in the City of Johannesburg, Tshwane and Cape Town. Alongside this growing interest, one would hope that models such as these find the recognition they deserve, and are then applied to municipal infrastructure projects across the country.