WORKING FOR WATER

SUMMARISED POLICY & GUIDELINES FOR

EMERGING CONTRACTOR DEVELOPMENT

A summarised reference document for implementing agents.

Guidelines for emerging contractor quotations

1)An area must be assessed and mapped, and the work requirement determined (i.e. what plants, what control method, size of the area, density)

2)The emerging contractor must be guided through the process of submitting a quotation for this work. The quotation can only be accepted if it falls within WfW acceptable price range for the work. These norms and tables are available from the regional Working for Water offices.

3)WfW has an exemption from having to put out this work on open tender from the State Tender Board. We may have 3 quotes for work up to R150 000 for emerging contractors.

4)The quotation (including the map) becomes the contract once an order number is issued for the work.

5)Upon completion, the work must be signed off by the project manager. The contractor must submit an invoice. The contractor is paid the entire amount, and is then in turn responsible for paying the workers.

6)Contractors should ideally be encouraged to accumulate profits to purchase and supply their own tools, protective clothing and transport for the contract. In the event that they do not, the project will supply these items. The items then remain the property of Working for Water. Workers cannot work if they are not wearing protective clothing.

7)The calculation of the labour cost is based on the number of person days required to do the work, and the structure of the team (machine operators are paid more than general workers). The rate for general workers must be the same as for other Working for Water projects in the region.

8)Transport: if the contractor can supply her / his own transport:

  • The vehicle must be licenced and its use comply with the Road Act (See WfW project Standards). The driver MUST be employed by either the Project (or the implementing agent) or the contractor. The driver cannot be a subcontractor. (Otherwise the passengers are not covered by the Compensation Act COIDA if there was to be an accident)
  • The quote can contain an amount for transport according to the following criteria:
  • A rate per km according to the Dept of Transport rates.
  • The number of km is calculated from a central agreed worker pick-up point to the project site (and return) per day.

9)Equipment: if the contractor supplies his or her own protective clothing and tools, then a rate for the use of these items can be included in the quote. The contractor cannot include a once-off amount which equals the entire value of the equipment, and then claim to have “bought” the equipment from the Project.

10)Herbicide: this should be supplied by the Project, and its storage and use carefully controlled and monitored by the Project.

11)Profit – an amount of up to 20% of the wage component (or 10% of the total contract value can be added on as capital profit for developing the emerging business.

12)Production gains resulting from completing the project earlier than the quoted time, must be shared by the contractor with her / his workers.

13)NO UIF is payable. The Dept of Labour will not accept UIF payments on the Working for Water Programme, nor will they honour payout requests when unemployed after the end of the project.

14)Until such time as the Public Works Programme guideline documents have been accepted by Nedlac, workers can expect to benefit from the basic conditions of employment (leave, sick leave etc). There is no over time pay.

15)Contractors MUST be registered for tax, and the tax number must be recorded on the quotation. Only contractors who supply a valid VAT number can add VAT onto their quotation.

16)Training – The project sources and pays for the cost of the training servce provider. The equivalent daily wage for the workers who attend the course is added to the contract, and the contractor pays the workers for these days.

17)Administration and payout security – an amount of up to R350 is allowed per month contract, enabling the contractor to pay an admin provider to calculate the payments for her / his team, do banking, and produce invoices etc.