ANNEXURE B

Legal name of contractor:

Trading as:

Company registration number:

Address:

CONTRACTOR’S LETTER OF COMMITMENT TO SD&L REQUIREMENTS

The contractor agrees to the contents of this letter and hereby commits to the following:

1.  Joint Venturing – The panel strategy is directed at developing local capability within the high voltage line construction industry. Eskom realises that there is a critical shortage of contractors in this field and therefore uses the panel strategy to develop lower voltage capability contractors to address the increasing demand of high voltage line construction. Higher voltage capability contractors will be required to form joint ventures with Black Owned companies and preference will be given to B-BBEE level 1-4 lower voltage capability contractors. Existing JV’s and JV’s to be formed should submit B-BBEE certificate or appropriate B-BBEE letter from Auditors registered with IRBA or SANAS accredited verification agency. Black ownership means companies that are more than 50% Black owned/Black Youth Owned (BYO)/Black People Living with Disabilities (BPLwD) owned/ 50% Black Women Owned (BWO).

  1. Job Creation - With labour forming a large portion of the total project cost, job creation is an important consideration in setting up the panels. The expectation will be that the contractors will have a core team, which will be made up of specialised skills that may not be sourced in the areas surrounding the site. It will be required that at least 50% of all semi-skilled and 100% of all unskilled labour that will be utilised in executing the works, will be sourced from areas local to the site which will be determined at task order award stage.

3.  Skills development – The panel will allow for a consolidated approach to skills development. The following skills will need to be developed:

Skill Type / Target
Site manager / The targets will be determined at Task Order Award stage
Environmental control officers
QA/QC officers
Health and safety representatives
Surveyors
Foundation team leader
Stringing team leader
Steel erection team leader
Steel erectors/fixer
Construction machine operators

At Task Order Award stage the contractor will be required to submit a training programme to Eskom for approval as part of the implementation schedule, which sets out the following in detail:

§  The time required to identify suitable individuals for skills development

§  The entry level and the outcome of each skills development category

§  To Identify the skills and learnership Program/s for attaining National Certificate at NQF level (if applicable)

§  The manner in which the candidates will be recruited and assessed for suitability

§  Details of the training provider

§  Skills development site structure

The panel strategy seeks to increase the skill base required for the execution of line construction projects available locally and shall be focussed on Youth Development.

4.  Subcontracting – Focus areas for subcontracting have been identified and targeted procurement will be implemented to develop and support small previously disadvantaged businesses as indicated in the table below.

Focus areas for subcontracting / Strategy
Geotech (soil investigation) / Set-aside portions for supplier preference will be hierarchical as follows:
1.  BWO
2.  BYO
3.  SBE
4.  BO
5.  LBS 1-4
6.  Other
Survey and tower pegging
Civil works (foundation)
Tower supply (steel fabrication) / Fabricated steel – 100% local content
Bush clearing / Set-aside portions for supplier preference will be hierarchical as follows:
1.  BWO
2.  BYO
3.  SBE
4.  BO
5.  LBS 1-4
6.  Other
Site cleaning service
Staff transportation service
Rehabilitation
Security services
Fencing and gate installation

NB. The local content and subcontracting targets will be set at Task Order Award stage.

ACCEPTED BY:

______

Name Signature Date

(Appointed company representative)

Note: Please indicate your commitment to the contents of this letter by signing above and return to Eskom as part of the tender returnable. Should the letter not be returned to Eskom or returned unsigned, it will be viewed as non-acceptance of the SD&L requirements which will result in your tender being disqualified without further evaluation. . The content of this letter, except for the signature and details of approved representative, should not be changed, and should be submitted using own company/ JV”s letterheads.

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