Repair of water leak and potholes at king phalo airport — six-month contractor appointment (RFQ 12243)

Service Manager

• Name: Mr. Samkelo Luyenge
• Role: Service Manager, King Phalo Airport

Employer address

Airports Company South Africa SOC Limited

King Phalo Airport

66 Settlersway

Greenfields

East London

5201

Returnable documents

• Form of Offer and Acceptance: signed by a duly authorised representative, stating the total offered price inclusive of VAT.
• Contract Data Part Two: contractor details and the CVs of key personnel, appended to the tender schedule.
• Occupational Health and Safety Agreement under Section 37(2) of the OHS Act and Construction Regulation 5.1(k): signed by a Section 16(2) appointee authorised in writing by the CEO.
• Proof of insurance and a letter confirming good standing with the Compensation Fund or a licensed insurer.
• Safety file, submitted before work starts.
• Annual B-BBEE certificate and tax clearance certificate.

Pricing submission

• The offered total must follow the Activity Schedule; where the two differ, the Activity Schedule governs.
• No alterations to the original pricing text are permitted; altered wording is disregarded and the original applies.

Scope

• Repair a leaking water pipe and potholes next to the car rental area at King Phalo Airport over a six-month service period.
• Area 1 (leaking pipe): investigate the leak, carry out the repairs and reinstate the asphalt surface.
• Area 2 (potholes): saw-cut and excavate defective asphalt to a minimum depth of 50 mm; clean and apply a tack coat; place a minimum 50 mm layer of continuously graded medium hot-mix asphalt using 50/70 penetration-grade per Table 8.1; compact to at least 93% of maximum rice density and to the required final level.
• Reinstate all affected painted areas with quick-drying matt finish paint with good adhesion, coverage, durability and abrasion resistance. Hand painting is not permitted.
• Remove and dispose of rubble off site, unless the Service Manager agrees otherwise (for example, transporting rubble to the service road on the airside).

Quantities (Activity Schedule)

• Potholes around the speed hump next to the BLUU depot: 18.8 m².
• Next to Hertz car rental: 1 m² (1.0 m × 1.0 m).
• Staff parking area: 28 patches, 9.5 m² combined.
• Next to Europcar: 7.5 m² (3.0 m × 2.5 m), including repair of the leaking 32 mm water pipe and repainting.
• Surfaces must withstand turning by heavy-duty trucks and high traffic.

Method and obligations

• The contractor prepares its own comprehensive and detailed method statement.
• Submit a fully detailed safety file before work starts.
• Issue complete PPE to all employees before work starts; without it, no service delivery is allowed.
• Refer to Annexure A for the detailed area-based scope.
• Work must be guaranteed for at least one year from the date the completion certificate is signed.

Method statement

• The service provider must prepare its own comprehensive and detailed method statement.

Key personnel

• CVs of the contractor's key people must be appended to the tender schedule, showing name, job, responsibility, qualifications and experience.
• Risk register matters include access to site and the travelling public and ACSA stakeholders.

Pricing approach

• Pricing follows the Activity Schedule; a lump sum is entered for each activity and no other items are measured.
• Prices are VAT exclusive and must cover all risks, liabilities, obligations, profit, expenses, allowances (shift, standby, leave), incidentals and consumables.
• Payment is made for an activity only once it is complete.
• Variations are priced at Activity Schedule rates; items without rates are agreed as non-scheduled items.
• Provisional sums and contingency amounts are spent only on the Employer's instruction; unspent balances are deducted from the contract sum.

Activity Schedule — King Phalo Airport

• Item 1: potholes around the speed hump next to the BLUU depot — 18.8 m².
• Item 2: next to Hertz car rental — 1 m² (1.0 m × 1.0 m).
• Item 3: staff parking area — 28 patches, 9.5 m² combined.
• Item 4: next to Europcar — 7.5 m² (3.0 m × 2.5 m), including repair of the leaking 32 mm water pipe, surface preparation, compaction, hot asphalt and repainting.
• Item 33: insurance required by ACSA (once off).
• Item 34: airport permits and parking fees (AIT and security awareness training) — R10 000.00, paid at proven cost.
• Item 35: safety file quote.
• Items 37–39: contract total excluding VAT, VAT, and contract total including VAT.
• Contract values are adjusted by South Africa's CPI at the contract anniversary; 6% CPI is used for comparison.

Pricing

• Priced contract with a price list (NEC3 Option A); pricing follows the Activity Schedule.
• A lump sum is entered for each activity; no other items are measured.
• Prices are VAT exclusive and must cover all risks, liabilities, obligations, profit, expenses, allowances (shift, standby, leave), incidentals and consumables.
• Payment is made for an activity only once it is complete.
• Variations are priced at Activity Schedule rates; items without rates are agreed as non-scheduled items.
• Provisional sums and contingency amounts are spent only on the Employer's written instruction; unspent balances are deducted from the contract sum.
• The contractor may add its own items, quantities and rates as separate line items.
• No alterations to the original pricing text are allowed; altered text is disregarded.

Activity Schedule items

• Item 34: airport permits and parking fees (AIT and security awareness training) — R10 000.00, paid at proven cost.
• Item 33: insurance required by ACSA (once off, for the contract duration).
• Item 35: safety file quote.
• Items 37–39: contract total excluding VAT, VAT, and contract total including VAT.

Payment and adjustment

• Assessment interval: the 15th day of each successive month.
• Payment: within 30 days of a valid tax invoice.
• Interest rate: Nedbank prime lending rate.
• Price adjustment for inflation: CPI on the starting date, applied only on the contract anniversary; 6% CPI is used for comparison purposes.
• Currency: South African Rand.
• Travelling time charges or allowances are not paid separately.

Insurance

• Aviation liability cover with an indemnity limit of at least R300 000.
• Proof of insurance to ACSA before work starts and annually for the project duration.

Registration and tax

• Registered on the Central Supplier Database (CSD).
• Valid tax clearance certificate.
• Annual B-BBEE certificate and tax clearance certificate; failure is a material breach and may lead to cancellation of the contract.

Health and safety

• Sign the Occupational Health and Safety Agreement under Section 37(2) of the OHS Act and Construction Regulation 5.1(k).
• COID Act cover for all employees; a letter confirming good standing with the Compensation Fund or a licensed insurer before work starts.
• Public liability insurance cover.
• Baseline risk assessment by a competent person before work starts.
• Safety checklist documentation, including the written Construction Manager appointment under Construction Regulation 8, submitted 7 days before work starts.
• Safety file submitted before work starts.

Personnel

• CVs of key personnel appended to the tender schedule.
• Staff must be permanently employed, trained for the work, medically fit, and able to read, write and speak English; the supervisor must have first aid skills and ISO 14000 environmental awareness.

B-BBEE and tax

• The contractor must present a compliant B-BBEE certificate and a tax clearance certificate annually.
• Failure to do so is a material breach and may result in cancellation of the contract.

Occupational health and safety

• OHS Agreement under Section 37(2) of the OHS Act and Construction Regulation 5.1(k) must be signed before work starts.
• Submit a fully detailed safety file before work starts.
• Issue complete PPE to all employees before work starts; without it, no service delivery is allowed.
• Baseline risk assessment by a competent person before any work starts.
• Appoint competent, trained persons for OHS aspects of the work.
• Written safe working practices and precautionary measures must be available and enforced.
• Report all incidents/accidents to the Provincial Director: Department of Labour and to ACSA.
• No unsafe equipment, machinery or articles on site.
• Permits must be obtained before permit-controlled work.
• No alcohol or intoxicating substances on site; anyone suspected of being under the influence is removed.
• COID Act cover for all employees and public liability insurance.
• Safety checklist documentation, including the written Construction Manager appointment under Construction Regulation 8, submitted 7 days before work starts.
• Z19: the contractor is an employer in its own right under the OHS Act and must ensure all work, equipment, plant and materials comply with the Act and Construction Regulations.

Contract framework

• NEC3 Term Service Contract (April 2013), main Option A (priced contract with price list), dispute resolution Option W1, secondary Options X1, X2, X17, X18, X19 and Z.
• Law: Republic of South Africa. Language: English.
• Period for reply: 7 calendar days.
• Contractor's Plan: within 14 calendar days of the Contract Date.
• Starting date: on signing of the contract by both parties.
• Service period: six months.
• Assessment interval: the 15th day of each successive month.
• Currency: South African Rand (ZAR).
• Payment: within 30 days of a valid tax invoice.
• Interest rate: Nedbank prime lending rate.
• Price adjustment for inflation: CPI on the starting date, applied only on the contract anniversary.

Liability and insurance

• X18: neither party is liable for indirect or consequential loss; the contractor's liability is limited to the total damages suffered and/or costs incurred to the Employer's property, with listed excluded matters.
• Z7: the Employer's liability to the contractor for indirect or consequential loss is limited to R0.00.
• Aviation liability insurance with an indemnity limit of at least R300 000; proof of insurance to ACSA before work starts and annually thereafter.
• All work guaranteed for at least one year from the date the completion certificate is signed.

Z clauses

• Z1 entire agreement; Z2 service fit for intended purpose; Z5 termination (business rescue); Z8 cession, delegation and assignment require written consent; Z9 joint and several liability; Z10 ethics (no bribery or corruption); Z11 confidentiality; Z12 Employer's step-in rights; Z13 liens and encumbrances; Z14 intellectual property; Z15 dispute resolution; Z16 compensation event notification reduced to four weeks; Z18 written Employer consent required for design, scope or service information changes of 5% or more and for completion extensions of more than 30 days.

Dispute resolution

• Adjudicator appointed from the panel; arbitration under the Rules for the Conduct of Arbitrations (2013, 7th Edition) of the Association of Arbitrators (Southern Africa); place of arbitration: Johannesburg.

Service Manager

• Name: Mr. Samkelo Luyenge
• Role: Service Manager, King Phalo Airport

Panel of Adjudicators / Arbitrators

• Adv. Ghandi Badela — Gauteng, +27 11 282 3700, [email protected]
• Mr. Errol Tate Pr.Eng. — Durban, +27 11 262 4001, [email protected]
• Adv. Saleem Ebrahim — Gauteng, +27 11 535-1800, [email protected]
• Mr. Sebe Msutwana Pr.Eng. — Gauteng, +27 11 442 8555, [email protected]
• Mr. Sam Amod — Gauteng, [email protected]
• Adv. Sias Ryneke SC — Gauteng, 083 653 2281, [email protected]
• Mr. Emeka Ogbugo (Quantity Surveyor) — Pretoria, +27 12 349 2027, [email protected]