Attachment a - Administrative Procedure

Attachment A - Administrative Procedure

TABLE OF CONTENTS

1.0INTRODUCTION

2.0CORRESPONDENCE AND COMMUNICATION

3.0DRAWINGS AND DOCUMENT TRANSMITTALS

4.0REPORTS

5.0TRANSNET REPRESENTATIVE INSTRUCTIONS

6.0REQUESTS FOR INFORMATION (RFI)

7.0MEETINGS

8.0FINANCIAL RECORDS AND ACCOUNTS

9.0INSURANCE

APPENDICES

• A1SUPPLIER’S MONTHLY REPORT
• A2REQUEST FOR INFORMATION (RFI)

1.0INTRODUCTION

1.1This Attachment specifies the coordination procedures to be employed by the Supplier in the performance of this contract.

1.2The Contract includesfor supervision, manpower, equipment, materials and facilities necessary for the Supplier to operate in accordance with this Attachment. This Attachment isto be read in conjunction with all terms and conditions of the contract and the performance of these requirements is included in the contract scope.

2.0CORRESPONDENCE AND COMMUNICATION

2.1All contract correspondence is issued through‘ACONEX’, refer to Section 3.1 of this Attachment.

2.2All correspondence from the Supplier is signed by the Supplier’s authorised representative and issued/delivered to the Transnet Representative in one (1) Original only.

2.3Correspondence from the Transnet Representativeis issued and signed in the name of the Transnet Representative

2.4All formal correspondence from the Supplieris addressed to the Transnet Representative and delivered to the Transnet Representative

2.5Emails and other forms of electronic communication

2.5.1Emails or documentation included in E-mails, sent from the Supplier to the Transnet Representativeare not accepted as fulfillment of any requirement of the contract or obligation of the Supplier under the contract.

2.5.2TheSupplier provides all contractually required submittals, notifications and the like by means of official correspondence or formal document transmittal.

2.5.3Emails or documentation included therein, sent from the Transnet Representative to the Supplier do not, in themselves, constitute either acceptance of a proposal from the Supplier or an instruction under the terms of the contract either of which may be or may result in a change to the contract.

2.5.4The Supplierdoes not act on any email that the Supplier believes results in a change to the contract whether or not the email by the Transnet Representative stated that it constituted a change. The Supplier requests formal written confirmation of any instruction that may be or may result in a change and receives this confirmation through formal correspondence, document transmittal, Transnet Representative’sinstruction or change, before acting on such an instruction.

3.0DRAWINGS AND DOCUMENT TRANSMITTALS

3.1All contract documents are issued through ‘ACONEX’ as per the latest revision of Document Management Instruction, doc No 2684358-J-002-DC-PO-003.

3.2The Supplier shall provide the names of his personnel who will require access to ACONEX to enable passwords/login details to be provided. The Supplier shall provide the initial list within two weeks of Contract Award and thereafter formally notify the Transnet Representativeof any changes required. Supplier shall allow 5 days for details to be provided after notification.

3.3Documentation Requirements

The Supplier submits all documentation conforming to the requirements of the Transnet and applicable standards and specifications with the following specific requirements:

3.3.1When required, the Supplier transmits to Transnet via the Transnet Representative, technical submittals, sketches or drawings, calculations and other pertinent data, in sufficient detail to enable Transnet/to review the information and determine that the Supplier clearly understands the requirements of the contract.

3.3.2Documents and data provided by the Supplierunder the contract are subject to Transnet/’sreview prior to Supplier’s start of procurement.

3.3.3Review of drawings, documents and/or data, etc. by Transnet, does not absolve the Supplierfrom any responsibilities under this contract.

3.3.4The review by Transnet with or without comments does not relieve the Supplierof any obligations or requirements under the contract nor be construed as an authorisation of, or consent to, any deviation from the contract. If the Supplierconsiders that Transnet’scomments constitute a change to the contract, the Supplierrequests a formal instruction.

3.3.5All drawings and other documents are in English and are sized in accordance with metric standard sizes and carry titles to indicate equipment numbers or any other identification number of the portion of work covered on the particular drawing and/or document.

3.3.6The revision number marks changes or additions to any document, at the point of a revision, and the revision is reflected in its title block or drawing number by an appropriate revision indication.

3.3.7If a document is superseded when returned to Transnet, indication of the substitution appears in or near the title block, or in the transmittal letter.

3.3.8Uses Standard Transnet title blocks incorporating the Transnet‘s logo, provided by the Transnet

3.3.9The Supplier prepares all drawings in accordance with Transnet’sexisting standards, with respect to information content, layout and symbology.

3.3.10The Suppliercross-references all drawings clearly with other drawings in cases where such links exist, and if cross-referencing with existing Transnet drawings arises as a result of the work, the originals of such drawings are also clearly cross-referenced with the new drawing numbers.

3.3.11An Aconex transmittal summarizing the content of the set accompanies multiple sheets with the same drawing number.

3.3.12The format of electronic documentation conforms to the following requirements:

Document / Native Format / Issued to Transnet
Specifications / MS Word 2010 / Native PDF
Manuals / MS Word 2010 / Native PDF
Datasheets / Microsoft Excel 2010 / Native PDF
Programs / Primavera P6 / Native & PDF
Spreadsheets / MS Excel 2010 / Native & PDF
Drawings / AutoCAD Release 2004 or later / Native & PDF
Other Documentation / Microsoft Office 2010 compliant / Native & PDF

3.3.13The Supplier is, in interpreting the drawings and specifications, bound by the figures marked thereon and not by scaled measurements.

3.3.14If the Supplier believes that new or revised IFC (issued for construction) documents constitute a change to the contract, the Supplier notifies Transnet Representative of the change and does not proceed with the changes until officially instructed to do so by the Transnet Representative.

3.3.15The TransnetRepresentativereviews engineering information for completeness and returns comments to the Supplier within 14 calendar days. This review by Transnetdoes not relieve the Supplierof his responsibility to ensure that the package is in accordance with the requirements.

3.3.16The Supplier submits two hard copies and one electronic copy in native and PDF format on Aconex of the final issue of the “Handover” documentation.

3.3.17Ongoing transmittals of electronic documentation from the Supplierto the Transnet Representativeduring the contract period are conducted through Aconex.

3.3.18The Supplierretains all documentationin accordance with the Contract aftercompletion of the work.

3.4Supplier’s Requests for Substitution

3.4.1TheSupplier may request to substitute a material, article, device, product, fixture, form, type of construction or process called for in the contract with another item that is equal, or better, in all respects to that so indicated or called for. All such requests shall have approval from Transnet, which shall not be unreasonably withheld.

3.4.2Such requests are submitted under cover of a letter in accordance with Section 2.0 of this Attachment.

3.4.3Transnet’s review and approval or rejection of such request does not relieve the Supplier of any obligations or responsibilities under the contract.

3.4.4In all cases, the request is submitted by the Supplier with sufficient duration in advance of the requirement for the substitution in order to allowTransnet sufficient time to fully evaluate the request. Rejection of the request is not a basis for a change.

4.0REPORTS

The Supplier provides the following reports:

4.1All Reports, Programmes and Programme updates are to be in form and format approved by the Transnet Representative. These reports are submitted under cover of a letter.

4.2The Supplier issues Registers/Logs for Changes, Correspondence Logs, RFIs and TQs to the Transnet Representativeweekly.

4.3Transnet reviews and comments as appropriate on all reports.

4.4The Supplier includes programme (schedule) (Refer toAttachment B) and reporting requirements as part of the weekly and monthly progress reports as described in this Attachment.

4.5Weekly Reports

4.5.1This report is submitted under cover of a letter in accordance withSection 2.0 of this Attachment.

4.5.2On a weekly basis, the Supplier prepares and submits to the Transnet Representative a weekly report comprising the following: -

• A narrative that addresses the status of work performed in the week, problems encountered, corrective actions that have been taken and upcoming major events/milestones.
• A two weeks Look Ahead Work Plan generated from the Accepted Programme as defined in Attachment B that shows planned and actual progress against each activity. The previous week’s activities show the work planned and the work accomplished. The planned activities for the current week and next week are shown. The Plan shows the manpower, equipment and material required for each week.
• Productivity statistics for the week and cumulative.
• A cost summary with all implemented Changes, PMIs, potential changes (trends, pending Changes) and payments listed.
• Registers/Logs of Supplier initiated Changes and Notices with the current status
• A Safety Status Chart - Reporting total hours expended through the reporting period, hours worked since last lost time accident, number of medical treatments (doctor cases) and near misses.
• Monthly Reports, Programmes and Programme updates
• Are in form and format as detailed in Appendix A1.
• These reports are submitted under cover of a letter in accordance with Section 2.0 of this Attachment.
• The monthly progress report is submitted to the Transnet Representativeeach month within seven (7) calendar days after progress cut off. A weekly report per Section 4.5 above is not normally required in the week when a monthly report is submitted.
• The monthly report containsthe following as a minimum:
• A narrative describing significant events accomplished, concerns, critical items required (engineering, equipment, materials or work areas), items planned for the following month.
• The Accepted Programme (Contract Detailed Schedule) with Key Dates and Milestone status (table showing planned, forecast and actual dates for Milestones, with discussion on Milestones achieved during the month, missed or rescheduled.)
• The Accepted programme (Contract Detailed Schedule) with actual progress updated (indicating earned % complete for each activity, actual start and completion dates and forecast start and completion dates for each activity). All monthly schedule submissions in hard copy/coloured format are also accompanied with an electronic copy of the relevant schedule files and the Contract Detailed Schedule, (inclusive of manpower curves) status with actual progress through the cut-off period.
• Critical path analysis (Explanation on the current status of critical path(s))
• Planned and forecast progress curves for the Contract as a whole, engineering (where applicable), procurement, construction, pre-commissioning and mechanical completion.
• Action plans for delays and/or expected or possible delays
• Risk Register and mitigations actions to be reported as part of the Monthly Reports
• All Weekly Report requirements
• A Commercial Report incorporating as a minimum an Transnet Representative’s Instructions Register, Sub-contract Status, Sub-contract Order status, outstanding Sub-contract Enquiries, Procurement Status, Outstanding Procurement Enquiries Status, Revisions to the Contract Price, Invoice Status, monthly forecasts and accruals.

4.7Procurement Status Reports

4.7.1When applicable to the Goods Information of the contract a Material Status Report is prepared and submitted monthly.

4.7.2Based upon the planned dates in the accepted programme (this report indicates for each purchase order, planned, actual and forecast dates for order placement, ready for shipment and arrival at site.

4.7.3A Subcontracts Schedule is prepared and submitted monthly. Based upon the planned dates in the accepted programme (this report shows for each subcontract, planned, actual and forecast dates for inquiry issue, award, mobilisation and completion.

4.8TheSupplier issues the following reports to the Transnet Representativeas follows:

REPORT / FREQUENCY/ DATE / DETAILS
Progress Report / The 25th of each Month or nearest working day / A comprehensive report including all the items listed below, as well as a brief description of any items that need special attention.
Updated Programme / The 25th of each Month or nearest working day / The updated programme to Level 4 detail, in bar chart Primavera P6 format, clearly shows:

• The actual progress of the work against the accepted programmes
• Planned completion

Cost Report / The 25th of each Month or nearest working day / The cost report includes against each budget number, in line with NMPP coding, in a format that is to be supplied by the Supplier;

• Accepted deviations from the original budget
• Any cost trends that affect the actual cost

Any anticipated changes that are not finalised, but will affect the actual cost forecast of the anticipated total cost
Cash-Flow Forecast / The 20th of each Month or nearest working day / A forecast of the anticipated monthly cash flow to the end of the project.

5.0TRANSNET REPRESENTATIVEINSTRUCTIONS

5.1The Transnet Representative’s Instruction is not an authority for payment. It may be, however, the basis for preparation of a change (variation order), which is the only authority for payment.

5.2Approved changes resulting from such instructions and other changes will be implemented in accordance with the contract.

6.0REQUESTS FOR INFORMATION (RFI)

6.1In the event that the Supplier determines that some portion of a drawing, specification or the contract document requires clarification or interpretation by the Transnet Representative, the Supplier initiates and submits a request for information (RFI).

6.2Utilising the approved RFI form (Appendix A2), the Supplier clearly and concisely sets forth the following information:

6.2.1The issue for which clarification is sought and why a response is needed from Transnet Representative.

6.2.2The Supplier’s interpretation or understanding of the Contract requirements together with reasons therefore and any proposed resolutions.

6.3The Supplier acknowledges that this is a complex contract and it is anticipated that the Supplierwill issue RFIs to the Transnet Representative throughout the life of the contract to question and or seek clarification of the work.

6.4The Supplier submits the completed RFI to theTransnet Representativewith a copy to the Transnet Representative’s Contract Administrator.

6.5The Transnet Representativereviews all RFI’s to determine whether or not they are RFI’s within the meaning set forth in this Attachment. If the Transnet Representative determines that the RFI is inappropriate, it is returned without response except to state one of the following:

6.5.1Information to resolve the request exists in the contract.

6.5.2Information to resolve the request exists on an issued drawing.

6.5.3Information to resolve the request exists in an issued Specification or Document.

6.5.4The use of the RFI form is incorrect and the subject should be covered by a letter, transmittal or other as defined in this Attachment.

6.6RFI’s returned for any of the foregoing reasons are clearly shown in the Transnet Representative’s RFI register as “Not Applicable” meaning that they constitute incorrect use of the RFI procedure.

6.7The Transnet Representativeregisters when RFI’s are returned to the Supplier. The RFI register is reviewed at each progress meeting.

6.8The Transnet Representative’s responses to RFI’s are considered to be within the scope of the contract Works Information, will not change any requirements of the contract and do not in themselves constitute agreement or authorisation to perform a change.

6.9If the Transnet Representativeconsiders that the response to an RFI constitutes a change to the contract, the Transnet Representative issues in parallel a PMI and this is referenced on the RFI response. Only the PMIconstitutes authorisation to proceed with the RFI response if it is a change.

If the Supplier receives a response to an RFI that theTransnet Representative has not registered as a change, but which the Supplier believes constitutes a basis for a change (variation order), the Supplierdoes not proceed in accordance with the response but immediately notifiesthe Transnet Representativeaccordingly.

7.0MEETINGS

7.1Major Meetings

7.1.1In addition to formal and informal communications betweenTransnet and the Supplier, frequent formal routine meetings are necessary throughout the duration of the Supplier's performance in order to assure continued communication and record such interfaces for the future.

7.1.2Meetings will be scheduled at any time to resolve problems. Major meetings are scheduled on a regular basis and will be determined as the contract work develops. Some of the major meetings to be scheduled include:

• Quality Control and Audit Meetings
• Safety Meetings
• Regular Progress Review Meetings
• Risk Reduction/Mitigation Meetings
• Commercial Meetings
• Supplier Coordination Meetings
• Special Meetings
• Contract Closeout Meetings
• Regularly scheduled meetings are generally held atTransnet’s home office, however, it may occasionally be necessary for the Supplier to participate in meetings via video/telephone conferencing

1. Pre-Manufacturing Kick-off Meeting
2. The first activity to take place before the work begins is the pre-manufacturing kick-off meeting between Transnet and the Supplier.
3. More than one such meeting may be necessary when the work is to be performed in several locations (e.g., design work in an engineering office prior to commencement of construction). The meeting introduces personnel involved in the work from both organisations, addresses details necessary to commence the work, establishes and records the ground rules or conditions under which the work will take place, and sets a cooperative professional tone for the future working relationship.
4. The pre-manufacturing kick-off meeting takes place prior to the Supplier mobilising.
5. Regular Progress Review Meetings
6. Progress review meetings are held on a regularly scheduled basis, usually weekly.
7. These meetings provide a forum for review of the Supplier's operations, assessment of progress and schedule, discussion and resolution of problems facing theSupplier and Transnet, and coordination of the activities of all parties concerned.
8. In general, these meetings require a minimum of participation to achieve the maximum positive results.
9. Special Meetings
10. Special meetings may be convened by Transnet or the Supplier at times and locations to suit both Parties.
11. Contract Closeout Meeting
12. At completion of the Supplier's work or as soon thereafter as practicable, a Contract Closeout Meeting is held betweenTransnetRepresentative and the Supplier.
13. The purpose of this meeting is to reach an agreement on all outstanding items, i.e. changes (variation orders), final payment amounts, etc.
14. Informal Communications
15. TheSupplier’s personnel to be reminded on a continual basis of the limitations placed on informal or “oral” communications.
16. Informal communications have no effect on the contractual obligations of either party.
17. Minutes of Meeting
18. The Transnet Representative prepares minutes of meeting for all meetings addressed above. The Minutes of Meeting contain all significant aspects of the meeting recorded together with any actions placed, and is presented to the Supplier for signature as soon as practicable after the meeting. After the Supplier has signed the Minutes of Meeting, they are officially published.

8.0FINANCIAL RECORDS AND ACCOUNTS