D1000 - Generic Proforma - 01 November 2022

SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LIMITED
CONTRACT SANRAL ………………………………………………………………………………………….. (insert contract number)

………………………………………………………………………………………………………………………….. (insert contract title)
SECTION D: STAKEHOLDER AND COMMUNITY LIAISON AND TARGETED LABOUR AND

TARGETED ENTERPRISES UTILISATION AND DEVELOPMENT
PROFORMA: GENERIC D1000
VERSION 3 (November 2022)
General Notes:
- Report all errors and/or comments to be
addressed in future versions to nel-
verweym@nra.co.za
- Notes to Compilers highlighted in blue is for
the information of Compilers of other
SANRAL documents who must include and
adopt the D1000 generic document
principles into their respective documents.
- Notes to Compilers highlighted in yellow, is
the standard notes to Compilers indicating
options to be selected, inserts to be made,
etc.
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CHANGES TO THE DOCUMENT
August 2022
D1001.01 Amend Principles for Project Liaison, Sub-contracting, and Labour Sourcing in
SANRAL Projects (Fourteen Point Plan)
D1002.01(h) Designate Group – Amend definition.
D1002.01(i) Domestic Sub-contractor – Add definition.
D1002.01(j) Final Contract Value – Add definition.
D1002.01(l) Labour – Amend definition.
D1002.01(n) Mobilisation Period – Amend definition.
D1002.01(o) Project Area – Amend definition.
D1002.01(s) Sub-contractor – Amend definition.
D1002.01(u) Targeted Enterprise – Amend definition.
D1002.01(w) Targeted Enterprise Monitor – Add definition.
D1002.01(z) Targeted Labour – Amend definition.
D1002.01(aa) Trainee Targeted Enterprise – Amend definition.
D1002.02 Add (i) The National Small Enterprises Act
D1003.02 Amend paragraphs 1 and 2.
D1003.03 Amend paragraph 1.
D1003.03 a) Add paragraphs 1, 2 and 3; amend paragraph 4.
D1003.03 c) Amend paragraph ii) and last paragraph.
D1003.03 d) Amend paragraph 1.
D1003.04 Amend CPGTotal and Final Contract Value
D1003.04 Add second last paragraph to explain sub-targets.
D1003.05 a) Amend CPP Bonus
D1003.05 b) Amend CPP Penalties
D1004.02 Amend last two paragraphs.
D1004.03 a) Add to paragraph.
D1004.03 Add paragraphs b) to d).
D1004.03 e) Paragraph b) becomes e); Amendments to new paragraph e).
D1004.03 Add paragraph f).
D1004.04 Amend paragraphs a) and b).
D1005 Amend paragraph 1 and delete paragraph 2.
D1005.01 Insert paragraphs deleted from D1005, paragraph 2.
D1005.02 a) Amend paragraph 6; delete paragraph 7.
D1005.02 c) Amend paragraph iii).
D1007.02 a) Amend paragraph ii).
D1007.02 b) Amend paragraph i).
D1008 Add paragraph a) The Employer’s Independent Targeted Enterprise Monitor
D1008 Add paragraph b) Failure to Comply with Responsibilities Towards Targeted
Enterprises
D1008.01 a) Add heading and paragraphs 2, 3 and 4.
D1008.03 a) Amend paragraphs a) and b).
D1008.04 Add paragraph b) Monitoring of Payment of Targeted Enterprises
D1008.05 Amend paragraphs a) to c).
D1008.05 Add paragraph d) Monitoring Execution of the Plan to Make Good
D1008.06 Amend paragraph 1
D1008.06 a) Add heading and amend existing paragraphs.
D1008.06 b) Add new paragraph b) Support to Targeted Enterprise during Dispute Resolution
Process
D1008.06 c) Add heading and amend existing paragraphs.
D1008.06 d) Add heading.
D1010 Amend paragraph 1.
D1010.05 b) Amend paragraph 1.
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D1010.05 h) Amend paragraph 2.

D1012.02 Amend paragraphs 1 and 2; Add new paragraphs a).
Previous paragraph a) becomes paragraph b); delete last three paragraphs.
Delete previous paragraphs b) and c).
D1013. Delete pay-item D10.07 (Community Development Component) and it sub-items.
Annexure X1 Add annexure – Contract Participation Goal (CPG) Plan Format
Annexure X2 Delete annexure – Project Liaison Committee Guidelines
Annexure X2 Add new annexure – Project Liaison Committee and Project Liaison Officer Forms
Form A1 – Project Liaison Committee – Member Nomination Form
Form A2 – Project Liaison Committee – Rules, Responsibilities and Duties
Form A3 – Checklist – Project Liaison Committee – Member Appointment
Form A4 – Checklist – Project Liaison Officer – Appointment
Form A5 – Checklist – Project Liaison Committee – Meetings
Form A6 – Project Liaison Committee – Declaration of Interest
Form B – Checklist – Targeted Enterprise Tendering Process
Form C – Checklist – Targeted Enterprise Contract Administration
Annexure 3 Add new Annexure – Proforma Sub-contract Document for Targeted Enterprises.
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Notes to Proforma Compilers:
1. This proforma, Section D of the Specifications, has been drafted to be inserted, as it is, into the
proforma for Conventional Construction Works tender documents.
2. Proforma Compilers of other SANRAL proforma documents are required to:
a) adopt this proforma into their respective proforma tender documents,
b) amend it to suit the type of proforma tender document,
c) workshop it with the relevant focus group and/or working group, and
d) submit it to the National Document Review Committee (NDRC) for their acceptance and
recommendation to the Regional Managers Committee (RMC) for approval.
3. Proforma Compilers of other SANRAL proforma tender documents may:
a) delete clauses from this Section D that are not relevant to the specific type of proforma
tender document; or
b) add clauses to this Section D that are relevant to the specific type of proforma tender
document.
4. The notion is that proforma Section D shall be amended to suit the respective contract types of
other proforma documents, but without diverting from the principles of Section D.
5. All notes to proforma Compilers must be removed from the draft and final proforma documents.
Notes to Compiler:
1. All notes to Compilers must be removed from the draft and final documents.
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SECTION D: STAKEHOLDER AND COMMUNITY LIAISON AND TARGETED LABOUR AND

TARGETED ENTERPRISES UTILISATION AND DEVELOPMENT
TABLE OF CONTENTS (Note to Compiler: Update Table of Contents – page no. only.) PAGE
D1001 SCOPE 6
D1002 DEFINITIONS AND APPLICABLE LEGISLATION 7
D1003 TARGET GROUP PARTICIPATION 13
D1004 STAKEHOLDER AND COMMUNITY LIAISON AND SOCIAL FACILITATION 18
D1005 MOBILISATION PERIOD 26
D1006 THE ROLE OF THE ENGINEER 28
D1007 TENDER PROCESS FOR TARGETED ENTERPRISES 29
D1008 GENERAL RESPONSIBILITIES OF THE CONTRACTOR TOWARDS
TARGETED ENTERPRISES 39
D1009 WORK SUITABLE FOR EXECUTION BY TARGETED ENTERPRISES 45
D1010 TRAINING, COACHING, GUIDANCE, MENTORING AND ASSISTANCE 46
D1011 LABOUR ENHANCED CONSTRUCTION 54
D1012 COMMUNITY DEVELOPMENT 54
D1013 MEASUREMENT AND PAYMENT 55
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D1001 SCOPE
Section D of the Specifications describes the structured engagement with project

Stakeholders and affected Communities to the project. It also guides the selection and the
enhanced utilisation and development of Targeted Labour and Targeted Enterprises.
D1001.01 Principles for Project Liaison, Sub-contracting, and Labour Sourcing in SANRAL
Projects (Fourteen Point Plan)
The scope of the work described in this Section D of the Specifications shall be based on
the Employer’s 14 principles for project liaison, sub-contracting, and labour sourcing in all
SANRAL projects, which are stipulated below:
1. SANRAL will establish a Project Liaison Committee (PLC) for every project to create
a platform for project communication with the aim to facilitate successful works
execution, subcontracting, procurement, participation with MOU partners, supply of
material, services and goods, and employment facilitation.
2. SANRAL will chair PLCs and provide secretarial support through the Consulting
Engineer or its Agent. Representation on the PLC will comprise SANRAL, the
Contractor, the Consulting Engineer or SANRAL’s Agent, business representatives,
traditional authority representatives, provincial and municipal government
representatives (not politicians), community representatives, and any other critical
local stakeholder that may be deemed necessary by SANRAL. While serving on
the PLC, PLC members must declare any conflict of interest and recuse themselves
if requested by the PLC Chairperson.
3. The selection of a Project Liaison Officer (PLO), who will be employed by the
Consulting Engineer, must be acknowledged, and supported by the PLC.
4. The definition of a target area (sometimes referred to as a local area or traffic area)
will be determined by SANRAL in consultation with the PLC.
5. The setup of databases for contractors, sub-contractors, consultants, and suppliers
will be conducted with the input and support of the PLC. The final database will be
disseminated to the PLC. The entities on the database must be assisted by the
Consulting Engineer and the Contractor to be compliant with the relevant legislation
required to conduct work for a SANRAL project.
6. The setup of databases for local labour in the target area will be done with the input
and support of the PLC. The final list will be disseminated to the PLC. Entities on
the database must be registered on the National Treasury Central Supplier
Database (CSD). A system of labour selection from the database must be agreed
at the PLC.
7. The databases for sub-contracting will be handed over to the Contractor for open
tender processes. The labour database will be disseminated to the PLC and handed
over to the Contractor to use for recruitment of local labour.
8. Tender processes for sub-contracting must be conducted by the Contractor using
government principles (e.g., public opening of received bids, announcement of
bidders and prices). Winning bidders shall be tabled, by the Contractor, in the PLC
meeting for information purposes.
9. Appeals to the tender process must be escalated to SANRAL for an independent
review which will be facilitated by the Transformation Unit.
10. Capability assessments of sub-contractors and suppliers will be done with the input
and support of the PLC, prior to the sub-contract tender stage commencing, to
identify any deficiencies in skills and experience. For labour, skills assessments will
be done at recruitment stage.
11. Sub-contractor development support and training must be coordinated and
conducted, prior to the sub-contract tender stage commencing, with the input and
support of the PLC.
12. The PLC may identify works areas that are deliverable by local service providers,
and areas where capabilities are not available locally. All works areas where
capabilities are not available locally will be imported and local service providers will
be given an opportunity to learn.
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13. The PLC and Consulting Engineer must ensure that formal contracting
arrangements between the main contractor and the sub-contractor are in place in
all projects.
14. Communication will be streamlined through the PLC and used to manage
expectations of local business and communities.
These principles must be applied to facilitate better project level liaison with project
Stakeholders and affected Communities. In addition, these principles serve to ensure
communication and transparency in the execution of the Works and to facilitate inclusivity
in the allocation of projects to benefit black business and local communities.
D1002 DEFINITIONS AND APPLICABLE LEGISLATION
The definitions and legislation listed below informs the requirements of this Section D of
the Specifications for Stakeholder and Community Liaison, Targeted Labour employment
and Targeted Enterprise sub-contracting.
a) Delete definitions and legislation which are not relevant to the type of proforma
tender document.
b) Add definitions and legislation which are relevant to the type of proforma tender
document.
c) Renumber sections and/or paragraphs after deletions and/or additions.
D1002.01 Definitions
Unless inconsistent with the context, in these specifications, the following words, terms or
expressions shall have the meanings hereby assigned to them:
a) Business Coaching
Business coaching establishes an atmosphere of mutual trust, respect,

responsibility, and accountability to motivate the emerging business owner and his
team. To that end, the business coach must conduct an ethical and competent
practice, based on appropriate professional experience and business knowledge.
b) Community1
South African Citizens, as defined in terms of the South African Citizenship Act,
1995 (Act 88 of 1995), who permanently reside within the Target and Project Area(s)
of the project.
c) Contract Participation
A process by which the Employer implements Government’s objectives by setting

targets to enhance Targeted Labour and Targeted Enterprises’ utilisation and
development, which the Contractor shall achieve as a minimum.
d) Contract Participation Goal (CPG)2
i) In the case of Targeted Enterprises, including manufacturers and suppliers,

the amount equal to the value of goods, services and works for which the
1
CIDB Standard for Contract Participation Goals for Targeting Enterprises and Labour through Construction Work Contracts,
Refer to latest version on www.cidb.org.za, and as adapted from SANS 10845, Suite for Construction Procurement, 2015.
2
Adapted from the CIDB Standard for Contract Participation Goals for Targeting Enterprises and Labour through Construction
Work Contracts, Refer to latest version on www.cidb.org.za, and as adapted from SANS 10845-5:2015 and SANS 10845-
8:20SANS 10845, Suite for Construction Procurement, 2015.
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principal Contractor contracts to engage Targeted Enterprises in the

performance of the Contract, expressed as a percentage of the tender value
excluding escalation, contingency and value added tax associated with the
targeting strategy that is identified in the Specification Data; or
ii) In the case of Targeted Labour:
a. the sum of the wages and allowances, for which the principal
Contractor, Sub-contractor, or Targeted Enterprises contract to engage
Targeted Labour in the performance of the Contract, expressed as a
percentage of the contract amount associated with the targeting
strategy that is identified in the Specification Data; or
b. the amount equal to the person days worked for which the principal
Contractor, Sub-contractors or Targeted Enterprises contract to
engage Targeted Labour expressed as a percentage of the total person
days worked associated with the targeting strategy that is identified in
the Specification Data.
e) Contract Participation Goal Plan (CPG Plan)
The plan which outlines how the Contractor intends to achieve the various CPG
targets as stated in the Contract Data and includes the detail of the Targeted
Enterprise work programme, as well as the contents and value of the work
packages. See Annexure X1 (insert annexure reference) for the CPG Plan
template.
f) Contract Participation Performance (CPP)
The measure of the Contractor’s progress in achieving the CPG.
g) Contract Skills Development Goals (CSDG)3
The number of hours or head count of skills development opportunities that a

Contractor contracts to provide in relation to work directly related to the contract or
order up to:
i) completion in the case of a professional service contract,

ii) the end of the service period in the case of a service contract, and
iii) practical completion in the case of an engineering and construction works
contract.
h) Designated Group4
Unless otherwise permissible in terms of procurement regulations or the PPPFA,

“Designated Group” means:
i) black designated groups,

ii) black people,
iii) women, or
iv) people with disabilities.
i) Domestic Sub-contractors
A Domestic Sub-contractor is one in whose selection and appointment the Employer

traditionally plays no part in other than simply giving consent when that is required
under the terms of the main contract. The appointment of the sub-contractor is
treated as something entirely for the benefit of Main Contractor and is a purely
"domestic matter".
3
CIDB Standard for Developing Skills through Infrastructure Contracts, Refer to latest version on www.cidb.org.za.
4
Preferential Procurement Regulations, 2017, Government Gazette N. 40553, 20 January 2017.
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j) Final Contract Value
Final Contract Value as defined under Section D1003.04 - Contract Participation

Goal (CPG) of the Specifications, also means Contract Price as defined in FIDIC,
sub-clause 1.1.4.2, (excluding CPA, adjustments for reduced payments, Rise and
Fall adjustments, penalties, and VAT)
k) Guidance
Guidance is anticipating where one might go wrong, or where one is doing a task in
a complicated, inefficient, or ineffective way, and giving help, advice, and direction
as to how to achieve a better result. Guidance is mostly given by a person in the
direct reporting line but can be given by anyone. Guidance is not imparting skills
but suggesting ways to improve performance.
l) Labour
Persons:
i) who are employed by the Contractor or a Sub-contractor in the performance

of the Contract, and
ii) whose monthly earnings are derived from hours worked for a fixed hourly rate
which is adjusted from time to time by legislation (as a statutory minimum)
and the Contractor’s or Sub-contractor’s employment policies, but
iii) who are not Targeted Labour as stated in the Specification Data.
The personnel employed by the suppliers of goods and material are not defined as
“Labour” for the purposes of this Contract.
m) Mentoring
Mentoring is a professional relationship in which an experienced businessperson

assists another by giving advice and imparting their knowledge in developing special
skills and knowledge that will enhance the less experienced businessperson’s
professional and personal growth. The objective is to equip the emerging business
owner and his team to improve their decision-making skills, being focussed and
make positive progress quickly.
n) Mobilisation Period
The period between the Commencement Date and the date of Access to Site, which
period (duration) is stated in the Contract Data. This part of Section D of the
Specifications describes the requirements of the Mobilisation Period.
o) Project Area
The area through which the road under construction traverse or which is adjacent to
and/or in proximity to project operations.
Based on market research and/or requisite resources availability, Project Areas

other than defined above may be identified where preference would be given to
Targeted Enterprises for sub-contracting opportunities.
p) Project Liaison Committee (PLC)5
5
CIDB Standard for Minimum Requirements for Engaging Contractors and Sub-Contractors on construction Works Contracts,
Refer to latest version on www.cidb.org.za.
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The Committee that represents the Employer, Engineer, Contractor, project

Stakeholders and the Communities affected by the project. It is important to note
that:
i) elected and/or nominated political office bearers shall not be members of the
PLC, and
ii) the Engineer and Contractor becomes members of the PLC on their
appointment and participate in the Committee within the scope of their
respective roles and responsibilities.
q) Project Liaison Officer (PLO)6
The person who acts as the liaison officer for the project. The PLO facilitates the
selection of Targeted Labour to be employed by the Contractor and attends to the
day-to-day project, Stakeholder, and Community matters that impact on the parties
to the PLC.
r) Stakeholders7
Any Stakeholder listed in the Employer’s Communication Policy who is affected by

the Employer’s operations in the Project Area(s) and/or who has an interest or
concern in the project, either as a decision maker, participant or affected party and
may include, amongst others, the following entities:
i) Relevant Provincial departments.

ii) Relevant Municipal departments.
iii) Traditional authorities.
iv) Community interest groups.
v) Organised youth representation.
vi) Organised women representation.
vii) Organised disabled people representation.
viii) Other structured community groups such as religion, education, farming, etc.
ix) Local transport industry forums, e.g., Bus and taxi.
x) Business sector forums.
xi) Road user forums.
xii) Environmental interest groups.
xiii) Road safety interest groups.
xiv) Any other recognised relevant and representative structure.
s) Sub-contractor
An entity appointed by the Contractor to execute a portion of the Works as defined

in the Conditions of Contract under FIDIC subclause 1.1.2.8. This includes both
Domestic Sub-contractors and Targeted Enterprises.
t) Target Area
The geographic area defined in the Specification Data for Targeted Labour, and
which typically are:
i) one or more Provinces,

ii) one or more Metropolitan or District Municipalities,
iii) one or more Local Municipalities,
iv) one or more Wards that are predominantly located within the Project Area, or
v) one or more of the areas listed in the definition of Designated Groups.
6
CIDB Standard for Minimum Requirements for Engaging Contractors and Sub-Contractors on construction Works Contracts,
Refer to latest version on www.cidb.org.za, CLO definition.
7
Derived from SANRAL communication Policy, Refer to latest version.
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u) Targeted Enterprise8
A Targeted Enterprise is an entity to which the Contractor sub-contracts a

percentage of the contract value as a condition of contract, and which is:
i) an EME or QSE which is at least 51% owned by black people; or

ii) an EME or QSE which is at least 51% owned by black people who are youth;
or
iii) an EME or QSE which is at least 51% owned by black people who are women;
or
iv) an EME or QSE which is at least 51% owned by black people with disabilities;
or
v) an EME or QSE which is at least 51% owned by black people who are military
veterans; or
vi) an EME or QSE which is 51% owned by black people living in rural or
underdeveloped areas or townships; or
vii) a cooperative which is at least 51% owned by black people; or
In addition, Targeted Enterprises must be:
a. CIDB registered where applicable,

b. registered with National Treasury’s Central Supplier Database,
c. tax compliant prior to award of the sub-contract, and
d. COIDA compliant prior to award of the sub-contract where applicable.
Targeted Enterprises are also Sub-contractors as defined in the Conditions of

Contract under FIDIC subclause 1.1.2.8.
v) Targeted Enterprise Construction Manager (TE Construction Manager)
The full-time, dedicated staff member or sub-service provider appointed by the

Contractor to develop, implement, and monitor the training, development and
support of Targeted Labour and Targeted Enterprises. The Targeted Enterprise
Construction Manager also mentors, guides and coaches the Targeted Enterprises.
w) Targeted Enterprise Monitor
The Targeted Enterprise Monitor is an independent service provider, or individual,

appointed by the Employer’s Transformation Unit, to audit the Contractor and his TE
Construction Manager’s activities with respect to their obligations to Targeted
Enterprises.
x) Targeted Enterprise Procurement Coordinator (TE Procurement Coordinator)
The staff member or sub-service provider appointed by the Contractor to facilitate

the procurement of Targeted Enterprise sub-contractors.
y) Target Group
It is a group of entities and/or persons selected from the Designated Group as

defined in the Preferential Procurement Policy Framework Act Regulations, 2017
and may include both Targeted Enterprises and Targeted Labour.
z) Targeted Labour9
8
Preferential Procurement Regulations, 2017 Pertaining to the Preferential; Procurement Framework Act, Act no 5 of 2000.
9 Derived from SANS 10845-7:2015, definition 2.12
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Persons:
i) who are unemployed, and

ii) who are then employed by the Contractor or a Sub-contractor (including
Targeted Enterprises) in the performance of this Contract, and
iii) whose monthly earnings are derived from hours worked for a fixed hourly rate
which is adjusted from time to time by legislation (as a statutory minimum)
and the Contractor’s or Sub-contractor’s or Targeted Enterprise’s
employment policies, and
iv) permanently reside in the Target Area(s) or who are recognized as being
residents of the Target Area(s) based on identification and association with,
and recognition by, the residents of the Target Area(s), and
v) who are stated as being Targeted Labour in the Specification Data.
The personnel employed by the suppliers of goods and material are not defined as
“Targeted Labour” for the purposes of this Contract.
aa) Trainee Targeted Enterprise
A Targeted Enterprise as defined in this Section D of the Specifications, but which

is selected and sub-contracted as a Trainee in terms of the Community
Development Project associated with this Contract.
bb) Training
Training refers to the process of teaching a Trainee, usually in a classroom or

simulated work environment situation where principles, theory, knowledge, and
skills are taught, and demonstrations are given. Assignments are set to ensure that
the Trainee can apply what has been taught. Training is done by a specialist in the
subject, and who is qualified and accredited to train. The objective is to improve the
competency of the Trainee.
cc) Training and Skills Development Programme
The programme which outlines how the Contractor intends to achieve the CSDG
targets, as per Section D1010 of the Specifications and in line with the CIDB
Standard for Developing Skills through Infrastructure Contracts (refer to latest
version on cidb.org.za), by applying the various training methods described in
Section D1010 of the Specifications.
D1002.02 Applicable Legislation, Regulations and Standards
The following Acts, as amended from time to time, are predominant amongst those which
apply to the Construction Industry and are listed here for reference purposes only:
a) The Constitution of South Africa.

b) Public Finance Management Act, 1999 (Act No. 1 of 1999).
c) Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000) and its
latest applicable regulations.
d) Construction Industry Development Board Act, 2000 (Act No. 38 of 2000).
e) Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003).
f) The South African National Roads Agency Limited and National Roads Act, 1998
(Act No. 7 of 1998).
g) The Skills Development Act, 1998 (Act No. 97 of 1998).
h) The Skills Development Levies Act, 1999 (Act no. 9 of 1999).
i) The amended Construction Sector Codes published in Notice 931 of 2017 of
Government Gazette No. 41287 on 1 December 2017 by the Department of Trade
and Industry.
j) The National Small Enterprises Act, 1996 (Act 102 of 1996) as amended.
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The following Standards and Practice Notes, as amended from time to time, are applicable
in terms of Targeted Labour and Targeted Enterprises and are used fully or portions
thereof in this Section D of the Specifications:
i) SANS 10845: 2015, Parts 5, 7 and 8; and

ii) CIDB Standard for Contract Participation Goals for Targeted Enterprises and Labour
through Construction Works Contracts (refer to latest version on www.cidb.org.za).
D1003 TARGET GROUP PARTICIPATION
This part of Section D of the Specifications describes the Employer’s requirements for the
establishment of Target Group databases from which participants in the project will be
selected for employment and sub-contracting.
It also describes the measurement of, and penalties or bonus to be applied, with respect
to the CPG as defined in the Specification Data.
a) Delete target groups, participation goals, sections and paragraphs, which are not
relevant to the type of proforma tender document.; and
b) add target groups, participation goals, sections and paragraphs, which are not
included but relevant to the type of proforma tender document.
c) Renumber sections and/or paragraphs after deletions and/or additions.
D1003.01 Objectives of Target Group Participation
Amongst others, the key objectives of Government are to extend economic opportunities
and build entrepreneurial capacity in rural and underdeveloped areas and townships by:
a) optimising the utilisation of local resources in the Project Area,

b) developing these local resources in the execution of the project, and
c) maximising the amount of funds retained within the Project Area.
To give effect to these objectives the Contractor shall, over the full duration of the contract,
from site establishment up to the completion of the works:
i) employ Targeted Labour from the Target Area(s) as stated in the Specification Data,
and
ii) sub-contract Targeted Enterprises as stated in the Specification Data, and
iii) give preference to Targeted Enterprises which are from rural and underdeveloped
areas and townships within the Project Area(s).
D1003.02 Targeted Labour Database
A system for the recruitment of Targeted Labour shall be agreed with the PLC prior to the
commencement of labour recruitment. This system shall be fair and transparent.
Based on the system for recruitment, a Targeted Labour Database shall be compiled by
the Contractor, with the assistance of the PLO and the input and support of the PLC, for
the Target Area(s) as stated in the Specification Data. If necessary, the assistance of the
Department of Labour may be called upon to provide a labour database of labourers with
the required skills and within the required designated groups and Target Area. Once the
Database has been disseminated to the PLC it shall be utilised to facilitate the selection of
Targeted Labour as per the resources and skills required by the Contractor during the
different construction stages.
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The Targeted Labour Database shall be updated as and when required to reflect new
employment seekers in the labour market.
Only Labour recruited from the Targeted Labour Database will be measured for Contract
Participation Performance (CPP).
D1003.03 Targeted Enterprise Database
The Contractor shall, with the assistance and inputs of the PLC, compile a Targeted
Enterprise Database from which Targeted Enterprises shall be sub-contracted to construct
portions of the work as described in this part of Section D of the Specifications.
a) Market Analysis and Requisite Resources Availability Audit
The Contractor shall conduct a market analysis and requisite resources availability
audit to determine the availability, expertise, abilities, and proficiency of Targeted
Enterprises in the Project Area.
To inform the market analysis and requisite resources availability audit, the
Contractor shall, as a minimum, use the National Treasury’s Central Supplier
Database (CSD) which can be obtained from the Employer’s Supply Chain
Management department via the Project Manager, as well as the CIDB contractor
database (if applicable).
The market analysis and requisite resources availability audit, and all updates
thereof for the duration of the Contract, shall be submitted to the Engineer and the
Employer’s Project Manager in a format acceptable to the Employer.
Following the market analysis and a requisite resources availability audit, the
Contractor shall apply the CPG Target Group criteria in the Specification Data to
compile a preliminary Targeted Enterprise Database (see D1003.03(c) below).
b) Call for an Expression of Interest
In addition to the CSD and the CIDB database, the Contractor shall call for an
expression of interest from Targeted Enterprises in the Project Area. The call for an
expression of interest shall outline the anticipated eligibility, functionality,
preference, and compliance criteria, as well as the anticipated Works content.
c) Preliminary Targeted Enterprise Database
Based on the information obtained from the CSD, CIDB and the call for an
expression of interest, the Contractor shall compile a Preliminary Targeted
Enterprise Database.
The purposes of the Preliminary Targeted Enterprise Database are:
i) for the Contractor to determine if the required resources and skills to execute
the identified Targeted Enterprise work packages are available in the Project
Area(s),
ii) for the PLC to verify that Targeted Enterprises on the Preliminary Targeted
Enterprise Database are authentic in terms of the Specification Data and
other Database criteria, and
iii) for the PLC to alert prospective Targeted Enterprises that are not on the
Preliminary Database of the opportunity.
Based on the market analysis and requisite resources availability audit, and the
information obtained from the call for an expression of interest, additional criteria for
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the Preliminary Targeted Enterprise Database may be tabled by the PLC to the
Contractor to ensure Target Group participation as intended by the Employer.
d) Final Targeted Enterprise Database
Once the Preliminary Targeted Enterprise Database has been disseminated to the
PLC, the Contractor shall invite Targeted Enterprises to tender for the Targeted
Enterprise work packages. The Preliminary Targeted Enterprise Database shall
remain a “live” database until the day of tender closure when a print-out of the CSD,
based on the Database criteria, shall become the Final Targeted Enterprise
Database for the tender and shall be disseminated to the PLC.
Any Targeted Enterprise may respond to the invitation to tender, but preference
shall be given to those Targeted Enterprises that satisfy the tender criteria.
The Targeted Enterprise Database shall be updated at every instance that a new
sub-contract tender or group of similar sub-contract tenders are to be let for
Targeted Enterprise work packages.
Targeted Enterprises within the Project Area shall be encouraged and assisted to
register on the CSD and to become compliant with all other statutory requirements.
D1003.04 Contract Participation Goal (CPG)
The CPG is the monetary value of the participation targets set by the Employer for
Targeted Labour and Targeted Enterprises expressed as a percentage of the Final
Contract Value. The participation targets comprise of the following:
% Targeted Labour (TLTotal%) = the sum of the % Targeted Labour employed by the
Contractor, Sub-contractors, and Targeted
Enterprises.
% Targeted Enterprises (TETotal%) = the % Targeted Enterprises, including the %

Targeted Labour employed by Targeted
Enterprises.
While the individual participation targets, i.e., TLTotal% and TETotal% must be met, the total
CPG (CPGTotal) is not the sum thereof, but are calculated as follows:
CPGTotal = Final Contract Value x [TLTotal% + (TETotal% - Targeted Labour

employed by the Targeted Enterprises))
Where:
Final Contract Value = the total value of the Contractor’s final certified work
measured at the date of issue of the Taking-Over Certificate.
The Final Contract Value includes the value of scheduled
work and extra work but excludes any Contract Price
Adjustment and adjustments for reduced payments, Rise and
Fall, Retention Money, Penalties and VAT.
The Contractor shall strive to distribute and implement the participation targets and
opportunities equally and continuously over the duration of the Contract. Where the
Contractor deems such an equal and continuous distribution of the participation targets to
be unachievable, he shall provide reasons and motivate it clearly in the preliminary CPG
Plan submitted with the tender document.
Both the Targeted Labour and Targeted Enterprise participation targets may consist of
sub-targets which are stipulated in the Specification Data, clause D1003. The Contractor
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is required to achieve these individual sub-targets. If the Contractor fails to achieve any
one of the individual sub-targets and does not substantiate that such failure is due to
quantitative underruns, the elimination by the Employer of items contracted to targeted
enterprises, or any other reason beyond the Contractor’s control which may be acceptable
to the Employer, penalties shall apply as stated in Section D1003.05 of the Specifications,
and as provided for in clause 8.7 of the FIDIC Conditions of Contract.
The value of the Provisional Sum scheduled under item D10.05 will not necessarily make
up the full value of the work required to meet the minimum target set by the Employer for
Targeted Enterprises. It is the Contractor’s responsibility to assess the work required to
meet the targets and, if necessary, to engage additional Targeted Enterprises to execute
work on the Contract as well to ensure that the minimum targets are achieved.
D1003.05 Contract Participation Performance (CPP)
The CPP is the monetary value of the Contractor’s actual progress towards achievement
of the CPG calculated as follows:
CPP = CPGActual
= total monetary value (excluding VAT) of Targeted Labour employed by the
Contractor + total monetary value (excluding VAT) of Targeted Enterprises
contribution, including Targeted Labour employed by the Targeted Enterprises.
The Contractor’s CPP shall be monitored monthly to determine the extent to which it is
striving to achieve the CPG. The basis of monitoring shall be a comparison of the actual
expenditure on Targeted Labour and Targeted Enterprises with the planned expenditure
for Targeted Labour and Targeted Enterprises as per the accepted CPG Plan. Monthly
returns, in the format required by the Employer, shall be submitted by the Contractor with
each interim Payment Certificate.
To assist in the measurement of the CPP the Contractor shall include the envisaged CPG
programme in its initial contract programme which is to be submitted within 28 days after
the Commencement Date. The CPG programme shall be updated in the accepted
construction programme on acceptance of the CPG plan and with every subsequent
revision.
As an incentive to encourage the Contractor to exceed the CPG, a bonus is offered,

measured as follows:
a) CPP Bonus
The bonus = 0.25 x (CPP – CPGTotal)
Any bonus due (or portion thereof) shall be calculated on the Final Contract Value
(excluding CPA). No bonus shall apply if either the Targeted Labour, Targeted
Enterprises and/or any individual sub-targets for Target Groups are not reached.
b) CPP Penalties
Conversely, failure to reach either the CPG or any individual Target Group targets
shall render the Contractor liable for a penalty as prescribed in clause 8.7 of the
FIDIC Conditions of Contract unless there are compelling reasons why the target or
sub-targets could not be achieved as stipulated in Section D1003.04 of the
Specifications. Penalties for Targeted Labour and for Targeted Enterprises shall be
calculated as follows:
Penalty Targeted Labour = 0.5 x ((TL – TG) + Sum (TL n – TG n) - 1.2 x L dp)
Where:
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n = Each lowest order sub-group of Targeted Labour stipulated in

the Specification Data.
TL = Monetary value of the Targeted Labour calculated at the
percentage stipulated in the Specification Data applied to the
final contract value (excluding VAT).
TG = Cumulative monetary value of Targeted Labour employed on
the contract by the Contractor and all Sub-contractors.
L dp = Cumulative monetary value of black Disabled Persons
employed on the Contract by the Contractor and all
Sub-contractors.
(TL n - TG n) = The monetary values calculated unless if any calculated value
is negative, then it shall be a zero value.
Penalty Targeted Enterprises = 0. 5 x ((TE – TGE) + Sum (TE n – TGE n) - 1.2 x TE

mv - 1.2 x TE dp)
Where:
n = Each lowest order sub-group of Targeted Enterprise stipulated
in the Contract Data.
TE = Monetary value (excluding VAT) of Targeted Enterprises
calculated at the percentage stipulated in the Specification Data
applied to the final contract value (excluding VAT).
TGE = Cumulative monetary value (excluding VAT) by Targeted
Enterprises sub-contracted to the contract by the Contractor and
50% of the cumulative monetary value (excluding VAT) by
Targeted Enterprise suppliers of goods and/or services.
TE mv = Cumulative monetary value (excluding VAT) by Targeted
Enterprises being majority owned by black Military Veterans,
sub-contracted to the Contract by the Contractor.
TE dp = Cumulative monetary value (excluding VAT) by Targeted
Enterprises being majority owned by black Disabled Persons,
sub-contracted to the Contract by the Contractor.
(TE n – TGE n) = The monetary values calculated unless if any calculated value is
negative, then it shall be a zero value.
The total Penalty value shall be the sum of the Targeted Labour and Targeted
Enterprises Penalty values unless the total Penalty value is negative then it shall be
a zero value.
Interim penalty valuations, based on the accepted CPG Plan, shall be calculated to
interim Payment Certificate values (excluding VAT) to establish the anticipated
outcome, and to plan corrective actions for non-adherence to the CPG Plan.
Interim penalty valuations shall not be applied to the interim certificate value, but the
Contractor shall by notice be placed on terms to correct as prescribed in sub-clause
15.1 of the FIDIC Conditions of Contract. Failure to correct by completion of the
Contract will lead to an Employer’s Claim in terms of sub-clause 2.5 of the FIDIC
Conditions of Contract.
Any Penalty payable shall be calculated on and applied to the Final Contract Value.
D1003.06 Accredited Registration
The CPP for Targeted Enterprises shall only be accepted if the respective Targeted
Enterprises comply fully with the definition of a Targeted Enterprise, and documentary
evidence to support the claim lodged with the Engineer before the work, goods or service
may be considered as having been performed by a Targeted Enterprise. The responsibility
for producing evidence of the respective documentation shall rest with the Contractor.
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The Contractor shall assume responsibility for the compilation and maintenance of
comprehensive records detailing each Targeted Enterprise’s progress.
D1003.07 Contractor’s Responsibility
In terms of the Conditions of Contract, all Targeted Labour recruitment and employment
and Targeted Enterprises sub-contracting, as well as its associated risks, shall remain the
sole responsibility of the Contractor.
The Employers CPG requirements, and the compulsory utilisation of project specific
Targeted Labour and Targeted Enterprises databases, shall not relieve the Contractor of
its obligations under the Contract and shall not attract any liability to the Employer.
D1004 STAKEHOLDER AND COMMUNITY LIAISON AND SOCIAL FACILITATION
This part of Section D of the Specifications describes the Employer’s requirements with
respect to Stakeholder and Community liaison and social facilitation. It also describes the
roles and responsibilities of the Project Liaison Committee (PLC) and the Project Liaison
Officer (PLO).
D1004.01 Purpose of Stakeholder and Community Liaison
To give effect to the need for transparency and inclusion in the process of delivering
services, the Contractor shall liaise with the project Stakeholders and affected
Communities for the duration of the Contract’s life cycle. This shall be achieved through
structured engagement with the PLC which was established by the Employer for this
purpose.
D1004.02 Contractor’s Responsibilities in Stakeholder and Community Liaison
The Contractor shall have the following general responsibilities in the Stakeholder and
community Liaison process:
a) Stakeholder and Community engagement shall be executed based on the

Employer’s social facilitation principles and processes described in this Section D of
the Specifications.
b) The Contractor shall make use of the PLC as the official communication channel,
and utilise it to facilitate harmonious relationships, with project Stakeholders and
affected Communities.
c) PLC members, to which the Contractor is a party, shall be held accountable to
disseminate project information discussed at the PLC meetings to the entities that
they represent.
d) As a party to the PLC, the Contractor shall delegate from among his site personnel
a responsible person to participate in the PLC and its business.
e) The Contractor shall provide the PLC with any assistance and information that it
requires to execute its duties, which amongst others, include training, providing a
meeting venue on site, provide Target Group reports, etc.
It is important to note that in terms of the Conditions of Contract, all Targeted Labour
recruitment and employment, and Targeted Enterprises’ selection and sub-contracting, as
well as its associated risks, shall remain the sole responsibility of the Contractor.
The Contractor shall take cognisance of the Employer’s PLC and PLO Forms, attached as
Annexure X2 (insert Annexure reference), which shall be provided to the Contractor by the
Engineer. While the Employer holds its own staff accountable for the deliverables listed in
the checklist, the Contractor and the Engineer shall assist the Employer in accomplishing
the deliverables.
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The Employer’s establishment of the PLC and the Engineer providing a PLO to the
Contractor shall not relieve the Contractor of its obligations under the Contract and shall
not attract any liability to the Employer.
D1004.03 Project Liaison Committee (PLC)
The PLC is the official communication channel through which the Employer, Engineer,
Contractor, and project Stakeholders and affected Communities communicates on project
matters. This platform is also used to communicate the impact that the project has or may
have on project Stakeholders and the affected Communities. This part of Section D of the
Specifications describes the general processes pertaining to the PLC, as well as its role
and responsibilities.
a) Establishment of the PLC
A PLC has either been established prior to commencement of the Contract or shall
be established as soon as possible by the Employer. The PLC consists of the
Employer, Engineer, Contractor, and representatives of project Stakeholders and
affected Communities. To ensure that all relevant Stakeholders are represented in
the PLC, the Employer did, or will, consult with the Executive Mayor’s office, as well
as with the LED Department of the Local Municipalities in the Project Area. Once,
the PLC has be established, the Employer’s further Stakeholder engagement
activities shall not prevent the Contractor from continuing with construction.
Typical Stakeholder representation on the PLC may include:
i) A PLC member from the relevant RRM PLC.

ii) Local Municipality LED Office.
iii) Traditional leadership representation.
iv) Forums representing people with disabilities.
v) Forums representing women.
vi) Forums representing youth.
vii) Forums representing business sector.
viii) Forums representing transport sector.
ix) Any other Stakeholder forum/organisation recognised by the Employer and
the Local Municipality’s LED Office.
Every forum/organisation/constituency shall have one (1) representative on the

PLC, which representation shall be confirmed by a duly signed nomination form.
It should be noted that the PLC is not a political platform. While Councillors may be
invited to some PLC meetings, they may not be PLC members and hence, will not
have voting rights when attending a PLC meeting.
b) Seating Allowance for PLC Members
PLC membership is voluntary and PLC members shall not be renumerated for any
time spent or work done associated with representing their constituency on the PLC.
Provision for the cost of liaison, social facilitation and PLC support has been made
under pay-item D10.02(a). This pay-item provides for the Contractor’s cost incurred
in executing his responsibilities w.r.t. Stakeholder and Community liaison.
This pay-item may also be utilised to pay an allowance to PLC members for actual
costs incurred in executing their PLC duties (other than time or work done related).
The Contractor will determine and table to the PLC a realistic seating allowance
which will be substantiated by an outline of the anticipated actual costs envisaged
to be incurred by PLC members.
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The seating allowance shall be increased annually based on the CPI figure
contained in Table B2 of Statistical Release P0141 by StatsSA.
c) Induction of the PLC
The Employer shall conduct an induction meeting with the PLC to acquaint PLC
members with the following information:
i) SANRAL’s Horizon 2030 Strategy.

ii) SANRAL’s Fourteen Point Plan.
iii) The role and responsibilities of PLC members.
iv) SANRAL’s Transformation Policy.
v) How the Transformation Policy impacts on SMMEs.
vi) Relevant details of the Contract, e.g.
a. Start and end dates
b. Important milestones
c. CPG targets
d. Envisaged Targeted Enterprise packages
e. Envisaged work for other SMMEs (non-CPG).
d) Rules of Engagement for the PLC
In the execution of their duties, members of the PLC shall adhere to the undertakings
listed below and the Contractor shall inform the Engineer of any transgression of
these undertakings.
i) General Matters and Membership
a. A PLC member may not be a politically elected representative and

political party representation will not be allowed in the PLC.
b. Ward Councillors may interact with the project team through the
Mayor’s Office.
c. If required, and in consultation with the Employer, a Political Steering
Committee (PSC) may be established to address political matters. A
PSC will only be established where the Project Area traverse over more
than one municipal area.
ii) Term of Office for the PLC
a. The duration of PLC members’ participating in the PLC (term of office)

shall depend on the duration of the project.
b. If the Employer finds the performance of a PLC member to be below
expectation or their conduct to be unacceptable, the affected member
will be discharged from their obligations and a new nomination process
shall commence.
iii) Targeted Enterprise and Targeted Labour
PLC members shall:
a. ensure that they, or companies in which they hold equity, will not tender
on the Contract for any work or sub-contract that may be issued.
Should they tender, this will be treated as a conflict of interest and the
tender proposal submitted will not be evaluated.
b. not have private or business interests in any of the sub-contract tenders
tabled to the PLC or considered in this Contract.
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c. shall recuse themselves from discussions that deal with a sub-contract

tender if any other member is of the opinion that a member’s
participation in deliberations, which is rightly or wrongly construe as
improper or irregular, may lead to the award of a sub-contract to a
tenderer known to the member or to the member itself.
d. recuse themselves from the operations of the PLC following a situation
as described in paragraphs ii) above and shall cease to be a PLC
member for this Contract.
e. during the tender and tender evaluation processes, neither deliberately
favoured nor prejudiced a person or tenderer, as intended, or
contemplated in treasury Regulation 16, A8.3 (a), (b) & (c).
f. ensure that no conflict of interest arises from members’ involvement in
the PLC and potential involvement in targeted labour recruitment
and/or targeted enterprises procurement and/or any other
supplier/sub-contractor/service provider procurement or involvement in
the contract.
iv) Confidentiality
a. PLC members shall accept that all information, documentation, and

decisions regarding any matter serving before the PLC are confidential
and undertake not to communicate decisions or discussions of PLC
meetings to external or internal parties unless so directed and
approved by the Project Manager.
b. Information for public dissemination shall be clearly indicated by the
committee to ensure that sensitive information is only disseminated to
the correct audience.
v) Removal from Office
a. PLC members who violate the provisions of these Rules of

Engagement for PLCs will be removed from their role as a PLC
member at the sole discretion of the Employer.
b. The Employer reserves the right to recover any costs from PLC
members whose actions can be regarded as detrimental to the
Employer or to the execution of the project.
c. The Employer also reserves the right to recommend criminal
prosecution if the offence warrants such action.
d. The Employer reserves the right to dissolve the entire PLC should it
believes that such an action is in its best interest, or that of the project.
The Employer will not be obliged to reconstitute the PLC if such a
dissolution occurs.
e) Responsibilities and Duties of the PLC
The PLC shall execute specific duties during the design and construction phases of
the project.
Some of the PLC’s duties during the design and construction stages overlap and
hence, for completeness, a description of the PLC’s duties in both project stages is
provided here.
The PLC shall execute the following duties:
i) Project Design Stage
a. Meet as often as required to discuss and resolve the project’s design

stage matters which are of interest or concern to the parties to the PLC.
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b. Peruse the Project Liaison Committee duties outlined in this Section D

of the Specifications and agree on the duties of, and procedures to be
followed by, the PLC to fulfil its duties.
Note: The principles outlined in this section shall not be amended, but
duties and procedures may be altered to be project specific and to
improve the functionality of the PLC.
c. Act in accordance with the agreed terms of reference for the PLC.
d. Inform the Employer’s Project Manager of any training that project
Stakeholder and affected Community representatives of the PLC
require to execute their duties.
e. Assist the Engineer to source suitable candidates, based on the
Employer’s qualifying criteria, for the position of PLO.
f. Observe and verify that the qualifying criteria and procedures applied
by the Engineer to select and employ the PLO were executed in a fair
and transparent manner and were within the prescripts of the relevant
labour legislation and regulations.
g. Assist the Engineer to identify the project’s Target and Project Area(s)
from which Targeted Labour and Targeted Enterprises could be
employed and sub-contracted, respectively.
h. Assist the Engineer to identify the project’s Target Groups for inclusion
in the Tender Documents and provide input and support the identified
Target Groups.
ii) Project Construction Stage
a. Meet formally prior to the Employer’s monthly site meeting, or as may

be required, to discuss and resolve project matters which are of interest
or concern to the parties to the PLC.
b. Assist the Contractor to establish the selection criteria and process to
employ Targeted Labour
c. Assist the Contractor to identify the eligibility, functionality, preference,
and compliance criteria to select and sub-contract Targeted
Enterprises.
d. Provide input and support for the Databases compiled by the PLO and
the Contractor from which Targeted Labour will be selected and
employed and Targeted Enterprises will be sub-contracted,
respectively.
e. Verify that the criteria and methodologies applied by the Contractor to
select and employ Targeted Labour and sub-contract Targeted
Enterprises are executed in a fair and transparent manner and are
within Government legislation and regulations and the Employer’s
Policies.
f. Verify that the conditions of employment and the conditions of sub-
contracting, in the employment of Targeted Labour and sub-contracting
of Targeted Enterprises are applied in a fair and transparent manner
and according to the Employer’s employment and sub-contracting
requirements.
g. Make recommendations to the Contractor on the training needs,
eligibility criteria and selection criteria for the provision of training to
Targeted Labour, Targeted Enterprises, Designated Groups, project
Stakeholders and the affected Communities.
h. Verify that training and skills development programmes, which the
Contractor committed to, are implemented, and executed as approved
and intended.
i. Inform the entities whom they represent of any project matters which
the respective party to the PLC wishes to communicate with each
other.
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j. Inform the entities whom they represent of any project matters that are
impacting or may impact, either positively or negatively, on the
respective parties to the PLC.
k. Inform the Contractor of Stakeholder and/or Community requests
and/or needs, which could possibly be addressed within the project’s
Scope of Work.
l. Inform the Employer’s Project Manager, Engineer, and Contractor of
any road safety concerns within the Project Area(s) and advise them of
possible mitigating measures and/or road safety programs that will be
most suitable for acceptance by the affected Communities to promote
road safety.
m. Assist parties to the PLC to agree on a dispute resolution mechanism
to resolve any disputes that may arise between the parties to the PLC.
n. Assist parties to the PLC to liaise with their respective entities to resolve
any disputes amongst the parties which may occur due to the project.
f) PLC Meetings
i) Frequency
a. Meetings will be conducted monthly or as required by the Stakeholders
or the project matters.
ii) Notice of Meetings

a. The notice of the PLC meeting shall be given at least seven (7)
calendar days prior to the meeting date.
b. Where meetings have been diarised over a period by the PLC, it shall
be the duty of each PLC member to ensure his/her attendance on the
set dates.
c. Where a PLC member has missed any meeting, he/she bears the onus
of establishing the date and venue of the next meeting.
iii) Venue
a. The venue for PLC meetings shall be the project site office or any other
venue agreed to by the members of the PLC and approved by the
Employer’ Project Manager.
b. During the COVID-19 lockdown, or any other lockdown as announced
by government, the meetings shall be held on an online platform such
as WhatsApp, MS Teams, Zoom or similar.
iv) Agenda
a. An agenda shall be made available or displayed to all participants at
the commencement of such meetings or the minutes of the previous
meeting will serve as the agenda of such meetings.
b. The agenda shall not be amended without prior approval from the
Employer’s Project Manager.
v) Chairperson
a. PLC meetings shall be chaired by the Employer which will typically be
the Employer’s Project Manager, or a SANRAL staff member, with
decision--making delegation, or the Engineer. The Chairperson shall:
i. chair all meetings of the PLC,
ii. co-ordinate all the activities of PLC,
iii. ensure that members are fulfilling their tasks as assigned by the
PLC,
iv. see to the execution of decisions taken by the PLC,
v. ensure the validity of members’ claim for allowance,
vi. ensure compliance of all activities of the PLC with current rules,
law and general SANRAL policy, and
vii. be a co-signatory to all official documents of the PLC.
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vi) Secretariate
a. The Engineer’s staff shall provide a secretarial service to take minutes
of PLC meetings.
b. Secretarial support other than taking minutes at PLC meetings shall be
provided by the PLO.
vii) Quorum
a. The quorum for PLC meetings shall be constituted by 50%+1 ratio
excluding co- opted members.
viii) Apologies and Non-attendance

a. Apologies shall be in writing except in emergency where the member
apologising cannot communicate the apology in writing.
b. Apologies may be sent through any media agreed to prior by the PLC
for example through SMS or WhatsApp messaging or similar
application.
c. The organization, represented by a member who fails to attend three
(3) consecutive meetings without an apology, will be informed in writing
and asked to nominate a replacement member.
ix) Language
a. The meetings will be conducted in English to enable all participants at
the meeting to understand the discussions of the meeting.
b. However, care and consideration must be given to provide non-English
speakers an opportunity to participate. Therefore, where desirable, any
of the 11 official languages maybe be used to conduct the meeting. If
another language other than English is used, the minutes of the
meeting will need to be transcribed, translated, and recorded in
English.
x) Other
a. The PMT shall provide a finger lunch for PLC members at PLC
meetings.
D1004.04 Project Liaison Officer
The PLO facilitates the selection and employment of Targeted Labour and coordinates
communication between the members of the PLC to address the day-to-day project,
Stakeholder, and Community matters that impact on the parties represented in the PLC.
a) Appointment of the PLO
The Engineer appoints the PLO in accordance with the Employer’s criteria for a
PLO. The appointment of the PLO must be acknowledged and supported by the
PLC.
Although the PLO provides social facilitation support to the Contractor, the PLO shall
report to the Engineer or his delegated representative, e.g., the Resident Engineer.
b) Duties of the PLO
The PLO shall execute specific duties during the design and construction phases of
the project. These duties include the following:
i) Except for taking the minutes of PLC meetings which is a duty of the Engineer,
the PLO shall provide a secretariat function to the PLC which includes,
amongst others, the following:
a. Schedule meetings.
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b. Compile meeting agendas.

c. Compile document packages for meetings.
d. Distribute minutes of meetings.
e. Assist representatives of project Stakeholders and affected Community
to formulate their communication to the PLC in writing.
f. Distribute written communication between the parties to the PLC.
g. Keep records of all PLC correspondence and documentation; and
h. Provide any other reasonable secretariat function required by the PLC.
ii) Attend all PLC meetings to report on the day-to-day project, Stakeholder and
Community matters that impact on the parties to the PLC.
iii) Attend all monthly project site meetings to report on the day-to-day project,
Stakeholder and Community matters that impact on the parties to the PLC.
iv) Attend any other meetings related to the project and in which any of the
project Stakeholders, affected Communities, Targeted Labour and Targeted
Enterprises are involved.
v) Maintain a full-time presence on site to monitor and address the day-to-day
project, Stakeholder and Community matters that impact on the parties to the
PLC.
vi) Maintain a full-time presence on site to assist the parties to the PLC in the
day-to-day liaison with each other.
vii) Assist the Engineer and the Contractor to disseminate information to PLC
members such as:
a. the basic Scope of the Works and how it will affect the Community,
b. the project programme and regular progress updates,
c. the anticipated employment and sub-contracting opportunities,
d. the project programme as it pertains to the employment of Targeted
Labour and sub-contracting of Targeted Enterprises,
e. Occupational Health and Safety precautions, and
f. any other information relevant to project Stakeholders and the affected
Communities.
viii) Be well acquainted with the contractual requirements as it pertains to
Targeted Labour employment and training.
ix) Assist the PLC to establish and agree the criteria to follow when selecting and
employing Targeted Labour.
x) Assist the Engineer and the Contractor in their resources and skills audits by
providing a coordinating function between the Engineer, the Contractor,
project Stakeholders and the affected Communities.
xi) Ensure that the Contractor compiles the Targeted Labour databases based
on the eligibility and selection criteria and that he updates it as and when
required.
xii) Coordinate the selection and employment of Targeted Labour based on the
agreed eligibility and selection criteria and based on the Contractor’s labour
and skills requirements.
xiii) Ensure that each Targeted Labourer enters an employment contract which
adheres to current and relevant Labour legislation.
xiv) Ensure that each Targeted Labourer understands the conditions of his/her
employment contract, with an emphasis on the employment start date, end
date and wages payable.
xv) Identify and inform the Contractor of any relevant training required by the
Targeted Labour.
xvi) Attend all disciplinary proceedings to ensure that hearings are fair and
conducted in accordance with the current and relevant Labour legislation.
xvii) Be proactive in identifying project Stakeholder and affected Communities’
(including Targeted Labour and/or Targeted Enterprise Sub-contractor),
requirements, disputes, unrest, strikes, etc., and bring it to the attention of the
PLC.
xviii) Assist the parties to the PLC to resolve any disputes, which may occur due to
the project.
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xix) Other than the document records to keep as mentioned above, keep record
of all other documents and processes pertaining to the employment of
Targeted Labour.
xx) Produce and submit a monthly report to the PLC on PLC and other meetings
attended by the PLO, as well as on Targeted Labour employment, and project
Stakeholder, affected Community and any other project matters that impact
on the parties to the PLC.
D1005 MOBILISATION PERIOD
The Mobilisation Period is defined in Section D1002 of the Specifications. This Section
describes the requirements of the Mobilisation Period.
D1005.01 Purpose of the Mobilisation Period
The Mobilisation Period was introduced as an aid to the Contractor to:
a) become acquainted with the Stakeholder and Community liaison requirements of

the Contract as prescribed in this Section D of the Specifications,
b) allow for the Contractor’s planning to obtain the CPG as required in the Specification
Data,
c) allow for the Contractor’s planning to obtain the Contract Skills Development Goals
(CSDG) as required in Section D1010 of the Specifications,
d) follow the processes prescribed in this Section D of the Specifications to employ the
initially required Targeted Labour and enter the first sub-contracts with Targeted
Enterprises, and
e) provide the training required by Targeted Labour and Targeted Enterprises to
commence with the construction of the Works.
Access to site for the Commencement of the Works shall thus only be issued once the
following deliverables have been submitted and/or completed by the Contractor:
i) Submission of the CPG Plan, followed by acceptance of the Engineer.

ii) Submission and the Training and Skills Development Programme, followed by
acceptance of the Engineer.
iii) Appointment of the initial Targeted Enterprise sub-contractors.
D1005.02 Duties of the Contractor
During the Mobilisation Period, the Contractor shall execute the following duties:
a) Compile a CPG Plan
The Contractor shall compile an acceptable CPG Plan, which sets out how he
intends to achieve the various CPG targets as stated in the Specification Data. The
Contractor shall distribute and implement the participation targets and Targeted
Enterprise work opportunities equally and continuously over the duration of the
Contract, i.e., from site establishment to completion of the Works. Where the
Contractor deems such an equal and continuous distribution of the participation
targets to be unachievable, he shall provide reasons and motivate it clearly in the
CPG Plan.
The CPG Plan shall provide the detail of the Targeted Enterprise work programme,
as well as the contents and value of the work packages. See Annexure X1 (insert
Annexure reference) for the CPG Plan format.
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The Targeted Enterprise work programme shall be in line with the Works
Programme and once the CPG Plan has been accepted by the Engineer, it shall be
captured in the Works Programme.
The Mobilisation Period shall only be concluded once the CPG Plan has been
accepted by, and all the duties above have been executed to the satisfaction of, the
Engineer after consultation with the Employer’s Project Manager.
The Employer’s Project Manager and the Engineer shall monitor progress and
adherence to the CPG Plan in the same manner as they would monitor the Works
Programme.
Should the Contractor require an extension of the Mobilisation Period due to a delay
not within his control, Contractual Procedure shall be followed, and the Contractor
shall submit his Claim for an extension of time through the relevant Contractual
Clauses of the Conditions of Contract.
b) Compile a Training and Skills Development Plan
The Contractor shall compile an acceptable Training and Skills Development Plan,
which sets out how he intends to achieve the various CSDG targets as per Section
D1010 of the Specifications and in line with the CIDB Standard for Developing Skills
through Infrastructure Contracts (refer to latest version on www.cidb.org.za).
The Training and Skills Development Plan shall provide the detail of the training
methods selected for implementation as described in Section D1010 of the
Specifications and shall include an execution programme for acceptance by the
Engineer, which shall demonstrate its correlation with the Works Programme.
The Mobilisation Period shall only be concluded once the Training and Skills
Development Plan has been accepted by the Engineer after consultation with the
Employer’s Project Manager.
The Employer’s Project Manager and the Engineer shall monitor progress and
adherence to the Training and Skills Development Plan in the same manner as they
would monitor the Works Programme.
c) Sub-contracting of Targeted Enterprises
During the Mobilisation Period the Contractor shall execute the following duties w.r.t.
the sub-contracting of Targeted Enterprises:
i) Liaise with the Employer’s Project Manager, the Engineer and the PLC to
structure and finalise the work packages to be sub-contracted to Targeted
Enterprises.
ii) Liaise with the Employer’s Project Manager, the Engineer, and the PLC to
determine the Targeted Enterprise Database criteria for the sub-contracting
of Targeted Enterprises.
iii) Compile the Targeted Enterprise Database(s) for input and support by the
PLC.
iv) Undertake a skills audit of the Targeted Enterprises which appear on the
Targeted Enterprise Database(s).
v) Based on the skills audit, and in consultation with the PLC, identify the pre-
tender training requirements of Targeted Enterprises.
vi) Provide an opportunity to Targeted Enterprises to receive the identified pre-
tender training.
vii) Tender the initial work packages and sub-contract the first group of Targeted
Enterprises for commencement of the Works.
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d) Employment of Targeted Labour
During the Mobilisation Period the Contractor shall execute the following duties w.r.t.
the employment of Targeted Labour:
i) Liaise with the PLC and the PLO on the compiled Targeted Labour
Database(s) for the employment of Targeted Labour.
ii) Undertake a skills audit of the Targeted Labour which appear on the Targeted
Labour Database(s).
iii) Based on the skills audit, and in consultation with the PLC, identify the training
requirements of Targeted Labour to enhance their employability.
iv) Provide an opportunity to eligible Targeted Labour to receive the identified
training to enhance their employability.
v) Select and appoint the first group of Targeted Labour for commencement of
the Works.
e) Training Requirements
The Contractor will not be able to address all the training requirements identified for
Targeted Labour and Targeted Enterprises during the Mobilisation Period and it is
accepted that training will take place over the duration of the Contract.
The training provided to both Targeted Enterprises and Targeted Labour during the
Mobilisation Period shall focus on the activities and/or skills required for the
commencement of the Works and shall include the mandatory Occupational Health
and Safety training.
D1006 THE ROLE OF THE ENGINEER
The role and responsibilities of the Engineer are clearly described in the Conditions of
Contract. This section elaborates on the Engineer’s duties with respect to Stakeholder
and Community Liaison, Targeted Labour Employment and Targeted Enterprise sub-
contracting.
Together with the Employer and the Contractor, the Engineer is also a party to the PLC
and hence, is co-responsible for successful project Stakeholder and Community liaison.
In addition, the Engineer shall play a supporting role to the Contractor in the successful
implementation of the Employer’s Targeted Labour and Targeted Enterprise utilisation and
development goals.
D1006.01 Duties During the Design Phase
During the design phase, the Engineer undertook a preliminary skills and resources audit
of the Targeted Enterprises in the Project Area. The purpose of the audit was to:
a) obtain an understanding of the Community’s skills, both academically and

occupationally,
b) obtain and understanding of the resources within the Community, i.e., Targeted
Enterprise availability and capabilities,
c) establish the CPG targets for Targeted Enterprises and Targeted Labour for
inclusion of the Specification Data; and
d) identify tender and other relevant training to be offered to Targeted Enterprises and
Targeted Labour to prepare them for tendering and to enhance their employability.
D1006.02 Duties During the Construction Phase
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To implement the Employer’s Targeted Labour and Targeted Enterprise goals the
Engineer shall provide support to the Contractor by executing the following duties:
a) Targeted Enterprise Sub-contracting
i) Make recommendations to the Contractor in identifying and structuring the

work packages to be sub-contracted to Targeted Enterprises and approve the
scope and extent of the work packages.
ii) Verify that the Targeted Enterprise Database(s) has been updated prior to the
letting of every new set of sub-contracts.
iii) Approve tender procedures, tender documents, tender submission
requirements and adjudication processes for the sub-contracting of Targeted
Enterprises.
iv) Review all tender adjudication reports and monitor that the criteria and
procedures applied by the Contractor to sub-contract Targeted Enterprises
are executed in a fair and transparent manner and are within the Employer’s
and Government’s Supply Chain Management Policies.
v) Verify that sub-contract agreements and the conditions of sub-contracting
with Targeted Enterprises are fair and transparent and within the prescripts
of the Contract requirements.
vi) Monitor the management of Targeted Enterprise sub-contracts and ensure
that conditions such as the application of penalties, the termination of
contracts, etc. are applied in a fair and transparent manner and within the
prescripts of the agreement.
b) Targeted Labour Employment
i) Verify that the Labour Database(s) from which Targeted Labour will be
employed is updated prior to every new Labour intake.
ii) Monitor that the criteria and procedures applied by the Contractor to employ
Targeted Labour are executed in a fair and transparent manner and is within
the Contract requirements.
iii) Monitor that the conditions of employment of Targeted Labour are applied in
a fair and transparent manner and within the prescripts of the current and
relevant Labour legislation.
c) Target Group Training Requirements
i) Make recommendations to the Contractor in identifying the training

requirements of Targeted Labour and Targeted Enterprises and approve the
proposed training programmes.
ii) Monitor that training programmes and support programmes, which the
Contractor committed to, are implemented, and executed as intended.
D1007 TENDER PROCESS FOR TARGETED ENTERPRISES
While the Contractor may utilise service providers, sub-contractors and suppliers of its
choice and selected via its own internal processes, for the sub-contracting of Targeted
Enterprises based on the Employer’s Contract Participation Goals, the Contractor shall
follow the prescripts of this Section D of the Specifications.
D1007.01 Targeted Enterprise (TE) Procurement Coordinator
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The Contractor shall appoint a TE Procurement Coordinator to facilitate the sub-

contracting of work to Targeted Enterprises as defined in the Specification Data. For
Contracts with a value of less than R 100 million the Contractor may appoint a TE
Procurement Coordinator from its site staff. For Contracts with a value of more than R 100
million the Contractor shall employ or sub-contract a dedicated TE Procurement
Coordinator, whose sole responsibility will be the management of Targeted Enterprise
procurement and sub-contracting matters.
The TE Procurement Coordinator shall be knowledgeable of, and has experience in, the
management of road construction and ancillary works, National Treasury supply chain
management legislation and regulations, and stakeholder relations management.
With the input and support of the PLC, the TE Procurement Coordinator shall conduct the
tender processes and procedures for Targeted Enterprise sub-contracting as prescribed
in this Section D of the Specifications and shall adhere to the Employer’s and
Government’s Supply Chain Management Policies and requirements.
D1007.02 Procedures for Targeted Enterprises Sub-contracting
The Contractor shall utilise the Employer’s proforma tender and contract document for
Targeted Enterprise sub-contracting. The proforma sub-contract document is attached as
Annexure X3 (insert annexure reference) and an electronic version will be provided to the
Contractor on award.
The identification and application of the eligibility and functionality criteria, and conducting
the tender processes and procedures for sub-contracting include, amongst others, the
following tasks:
a) Tender Preparation
i) Compile preliminary list of sub-contracting work packages.
Based on the Specification Data and the Scope of the Works, the Contractor
shall compile a preliminary list of the work packages (scope of work and
number of packages) that are anticipated to be sub-contracted to Targeted
Enterprises.
The Contractor shall refer to the construction activities that has been identified
as being suitable for construction by Targeted Enterprises as listed in Section
D1009 of these Project Specifications, and to any other construction activities
which are required to execute the Works in terms of this Contract, to
determine how to unbundle or package sub-contracts for Targeted
Enterprises.
ii) Conduct a market analysis and resources and skills audit.
Based on the preliminary list of work packages, the Contractor shall conduct
a market analysis and resources and skills audits to determine the availability
of the required resources and skills in the Project Area to execute the
anticipated Targeted Enterprise work packages. The Contractor shall consult
the following databases as a minimum:
a. Construction Industry Development Board (CIDB)’s contractor

database (not applicable to suppliers and non-construction services).
b. National Treasury’s Central Supplier Database (CSD) to be obtained
from the Employer’s Supply Chain Management Department.
iii) Call for an expression of interest.
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In addition to consulting the CIDB contractor database and National

Treasury’s CSD, the Contractor shall call for an expression of interest, which
shall be published in newspapers and at locations as agreed by the PLC.
For each group of work packages, the call for an expression of interest shall
outline:
a. evaluation and selection criteria such as eligibility, preference, and

functionality.
b. compliance requirements such as CSD and CIDB registration, tax
clearance and COID.
c. the anticipated scope of the works to be undertaken.
iv) Establish a Targeted Enterprise Helpdesk
Other than informing the Contractor’s market analysis and resources and
skills audits, the purpose of the call for an expression of interest is to alert
Targeted Enterprises of the sub-contracting opportunities and inform them of
the anticipated eligibility, preference, and functionality criteria, as well as of
the compliance requirements.
The Contractor shall enhance the readiness of Targeted Enterprises to

participate in the sub-contracting opportunities by establishing a helpdesk at
a suitable and easily accessible location in the Project Area.
The Contractor shall provide guidance to Targeted Enterprises in getting their

statutory requirements in order in anticipation of the sub-contracting
opportunities. The helpdesk shall assist with, or provide guidance in,
registering with the CSD and the CIDB, obtaining tax clearance and COID
compliance and any other relevant qualifying requirements.
v) Compile Preliminary Targeted Enterprise Database
Based on the CPG targets listed in the Specification Data and the information
obtained from the activities described in paragraphs ii) and iii) above, the
Contractor shall compile a Preliminary Targeted Enterprise Database.
In compiling the preliminary Targeted Enterprise Database, the Contractor

must bear in mind that the benchmark for an adequate number of tenderers
to ensure a competitive tender process is ten (10) tenderers that are able to
achieve the functionality threshold during the tender evaluation.
vi) Identify Targeted Enterprises, Target Groups and Project Area(s).
Based on the CPG targets listed in the Specification Data and the Preliminary
Targeted Enterprise Database, the Contractor shall identify the:
a. Targeted Enterprises (CIDB grades and types); and

b. Designated Groups (woman, youth, etc.) which are anticipated to
benefit from the sub-contracting opportunities; and
c. Project Area(s) from which Targeted Enterprises will be given
preference for sub-contracting opportunities.
vii) Compile a Contract Participation Goal (CPG) Plan.
The Contractor shall utilise all the information gathered from the activities
described in the paragraphs above to compile an acceptable CPG Plan. The
plan shall contain:
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a. a list of work packages (scope of work and number of packages) to be

subcontracted to Targeted Enterprises,
b. procurement, award and execution dates for the work packages,
distributed over the duration of the Works Contract (from site
establishment to completion of the Works) to ensure continuous work
opportunities,
c. the preliminary Targeted Enterprise Database(s) for each work
package,
d. the Targeted Enterprises (CIDB grades and types) and Designated
Groups (woman, youth, etc.) which are to benefit from the sub-
contracting opportunities,
e. the Project Area(s) from which Targeted Enterprises will be given
preference for sub-contracting opportunities, and
f. the tender evaluation and selection criteria for the respective work
packages.
viii) Acceptance of the CPG Plan
The Contractor shall submit the CPG Plan to the Engineer for acceptance
after which it shall be tabled to the PLC for their information.
The Contractor shall ensure that the tender requirements and the outcome of
different tendering scenarios are explained to the PLC, specifically with
respect to the outcomes of evaluating:
a. Eligibility criteria,
b. Functionality structuring and scenarios,
c. Price and Preference,
d. Compliance requirements, and
e. Negotiation processes (if applicable).
If required, the Contractor shall make amendments to the CPG Plan based
on the Engineer’s instructions.
ix) Compile tender documents.
The Contractor shall compile the tender documents for each Targeted
Enterprise sub-contract work package and shall utilise the Employer’s
proforma document for Targeted Enterprise sub-contracting (see Annexure
X3) (insert Annexure reference).
In compiling the sub-contract tender documents, the Contractor shall include

in each tender document relevant Conditions of Tender and the FIDIC sub-
contract agreement. The Contractor shall compile each sub-contract tender
document in a manner that facilitates the achievement of all objectives and
principles pertaining to the development of the Targeted Enterprises.
The draft sub-contract tender documents shall be approved by the Engineer

before letting the tender.
b) Tender Process
i) Advertise the sub-contract packages.
The Contractor shall advertise and invite tenders from Targeted Enterprises
for the respective sub-contract packages. Advertisements shall be placed in
local newspapers, on community notice boards, on SANRAL’s electronic
supply development desk portal (https://sanralesdd.co.za), and any other
place or medium as agreed with the PLC.
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If the Employer have a pro-forma Tender Notice available, the Contractor

shall use this document.
ii) Conduct a tender briefing and tender training session.
For each group of sub-contract packages, the Contractor shall conduct a

compulsory briefing session to explain the tender process, the evaluation and
selection criteria and the scope of the works to the Targeted Enterprises.
An Attendance Register shall be completed by all attendees and Minutes shall

be taken during the briefing session. The Minutes of the briefing session shall
be distributed to all attendees as an Addendum to the Tender Documents.
The Contractor shall conduct a “how to complete a tender document” training

session as a component of the tender briefing to interested Targeted
Enterprises. The level of detail and hence the duration, of the training session
shall be informed by the findings of the resources and skills audit conducted
during the Tender Preparation Phase.
The Contractor shall engage with the Employer’s Regional Transformation

Officer on the Employer’s SMME Pre-tender Training and Development
Programme and utilise this programme if it is available at the time in the
Project Area. The Regional Transformation Officer’s contact details shall be
provided by the Project Manager on award.
Notes of this training session shall be distributed to all attendees of the

briefing session as an Addendum to the Tender Documents, irrespective if
they have attended the training session or not.
A separate Attendance Register shall be completed for the training session

for future reference.
iii) Minimum tender submission documents.
It shall be a condition of tender that Targeted Enterprises include in their

tender submissions the following documentation (if applicable, based on the
sub-contract type, e.g., construction, supply, or services):
a. Proof of the Tenderer’s B-BBEE contributor level.

b. Proof that the Tenderer is an EME or QSE entity.
c. Proof that the Tenderer is registered on National Treasury’s CSD.
d. Proof of the Tenderer’s locality (address registered with the CIPC).
e. Proof that the Tenderer is registered with the CIDB in the required
grading and class (not applicable to suppliers).
f. Proof that the Tenderer is compliant with the COID act.
g. Proof that the Tenderer is tax compliant.
iv) Tender closure and opening of tenders.
Tenders for the sub-contract packages shall close at a stipulated time and
date. Tenders shall be submitted to the Contractor in the format and at the
address prescribed by the Contractor in the sub-contract Tender Data.
The tender opening shall be conducted by the Contractor who shall publicly
announce and record the names of all bidders and their tender prices.
v) Finalise Targeted Enterprise Database
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The purposes of the preliminary Targeted Enterprise Database are described

in the Tender Preparation phase above of which one is to alert Targeted
Enterprises to assess their readiness to participate in the project’s sub-
contractor opportunities.
The period between the Contractor’s call for an expression of interest and the
date of closure of the relevant sub-contract tender allows for prospective
Tenderers to become compliant to the database criteria. The preliminary
database is thus a “live” database until the date of tender closure.
On the date of tender closure, the Contractor shall request the Employer’s
Supply Chain Management Department to print out a list from National
Treasury’s CSD, of entities that adheres to the Targeted Enterprise Database
criteria. This list shall become the Final Targeted Enterprise Database for
relevant sub-contract tender and shall be submitted to the PLC for sign-off.
c) Tender Evaluation
The Contractor shall evaluate the tenders and it shall be a condition of tender that
tenders will only be accepted from Targeted Enterprises that fully comply with the
definition of a Targeted Enterprise as described in Section D1002 of the
Specifications.
The Contractor shall evaluate the tenders based on (1) Eligibility, (2) Functionality,
(3) Price and Preference, and (4) Compliance.
i) Stage 1 – Eligibility
Tenderers shall be checked for their eligibility to tender for the advertised sub-
contract packages based on the following eligibility criteria:
a. Proof that the Tenderer is registered with the CIDB (if applicable).
b. Proof that the Tenderer is registered on National Treasury’s CSD.
c. Proof that the Tenderer is registered with the CIPC.
d. Proof that the Tenderer is a level 1 to 4 B-BBEE contributor.
e. Proof that the Tenderer is an EME or a QSE.
Proof that the Tenderer falls within one or more of the designated
groups as per the Specification Data (if applicable).
Eligible Tenderers shall be further evaluated against the functionality criteria.
ii) Stage 2 – Functionality
No Targeted Enterprise may be prohibited from responding to the invitation

to tender, however, preference shall be given to those Targeted Enterprises
that adheres to the tender criteria, which amongst others, shall be measured
by means of a functionality evaluation.
To ensure Targeted Enterprise participation as it is intended by the Employer

and as defined in the Specification Data, Functionality shall be scored based
on the type of sub-contract package, e.g., construction or the supply of goods
or services and at least three (3) or more of the criteria listed below shall be
applied.
The points allocated for the listed criteria shall be clearly demonstrated to
tenderers as a matrix in the tender document. The functionality matrixes
provided in the Employer’s proforma document for Targeted Enterprise sub-
contracting (Annexure X3) (insert Annexure reference) shall be applied to
evaluate the functionality of Tenderers.
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Tenderers must score a minimum of 75% for functionality and Tenderers that
do not obtain the threshold shall not be evaluated further.
a. Locality
For lower CIDB grade packages, the points allocated for Locality
typically has a higher weighting in the total evaluation points but shall
not be more than 65% of the total evaluation points.
Points scored shall be based on the Targeted Enterprise’s registered

address with the CIPC.
i. If the Targeted Enterprise is more than twelve (12) months old

and the company address:
(a) was changed with the CIPC in the twelve (12) months
prior to the tender advertisement; or
(b) does not correlate with the company address recorded on
the CSD,
the Targeted Enterprise shall provide additional proof of its
address in the twelve (12) months preceding the tender
advertisement date and that the address is current by submitting
the following:
(i) for urban areas:
1. signed lease agreement confirming occupation in
the preceding twelve (12) months; or
2. mortgage statement confirming ownership in the
preceding twelve (12) months; and
3. a current utility bill (not older than three (3) months)
confirming that occupation is current; or
(ii) for semi-urban and rural areas
1. an affidavit from the relevant ward councillor or
traditional authority, signed and stamped by a
registered commissioner of oaths, which confirms
that the business has been operating from the said
address in the preceding twelve (12) months.
ii. If Targeted Enterprise is less than twelve (12) months old and
the company address:
(a) was changed with the CIPC in the twelve (12) months
prior to the tender advertisement; or
(b) does not correlate with the company address recorded on
the CSD,
the oldest registered address on either the CIPC or the CSD will
be accepted as the Targeted Enterprise’s address for the
purpose of scoring locality points.
iii. If the Targeted Enterprise intends to operate from a branch office

for the purpose of the anticipated sub-contract, the same
additional proof that the company has been operating from the
branch office in the twelve (12) months prior to the tender
advertisement date must be provided as listed in the paragraphs
above.
iv. If the above additional proof of address cannot be provided,

locality points shall be awarded based on the tenderer’s address
registered with the CIPC in the twelve months prior to the tender
advertisement date.
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b. Equipment
For lower CIDB grade packages, the points allocated for Equipment
typically has a lower weighting in the total evaluation points.
The combined points allocated for Equipment and Experience shall not
be more than 35% of the total evaluation points.
c. Experience
For lower CIDB grade packages, the points allocated for Experience
typically has a lower weighting in the total evaluation points.
The combined points allocated for Equipment and Experience shall not
be more than 35% of the total evaluation points.
d. CIDB grade and class
The points allocated for CIDB grade and class shall not be more than
35% of the total evaluation points.
CIDB grade and class shall not be used as an evaluation criterion for
packages pertaining to the supply of material, goods and/or services.
e. Project Specific Designated Groups, e.g., woman, youth, etc.
In addition to the eligibility criteria for preferential procurement

functionality points may also be allocated for the following Designated
Groups:
i. Tenderer is 51%+ owned by black people who are youth.

ii. Tenderer is 51%+ owned by black people who are women.
iii. Tenderer is 51%+ owned by black people with disabilities.
iv. Tenderer is 51%+ owned by black people who are military
veterans.
The points allocated for Designated Groups shall not be more than
15% of the total evaluation points.
One, two or three of the Designated Groups listed above may be

selected to count towards the score for Designated Groups.
If any one of the Designated Groups listed above is already an eligibility

criterion, it must not be included as a functionality criterion as well.
The inclusion of any of the Designated Groups listed above shall be

based on the Contractor’s Resources and Skills Audit.
Youth and veterans may not be selected together.
iii) Stage 3 – Price and Preference
Tenderers that obtained the minimum threshold for functionality shall be

further evaluated on their Price and Preference submissions, i.e.
a. Price = 80 / 90 %
b. Preference = 20 / 10 %
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The highest scoring tenderer for each sub-contract package shall be checked
for compliance.
The Contractor shall state in the tender advertisement and in the tender
documents that only one sub-contract package shall be awarded to an entity
at any one time for this project, meaning that a Targeted Enterprise may be
awarded a work package and on conclusion thereof may be awarded a
subsequent work package, but more than one work package may not be
awarded simultaneously for this project.
If a tenderer tendered for more than one sub-contract package and scored
the highest points in more than one package, the Contractor shall award to
the tenderer the work package that has the most economic benefit to the
Employer.
iv) Stage 4 – Compliance Check
The highest scoring tenderer for each sub-contract package shall be checked
for compliance with respect to the following criteria:
a. Proof that the Tenderer is compliant with the COID Act (excl. CIDB 1
and 2 CE sub-contractors).
b. Proof that the Tenderer is tax compliant.
If the highest scoring tenderer fails to meet any of the compliance criteria, he
will be given seven (7) calendar days to become compliant.
If the highest scoring tenderer fails to submit the requested compliance

information in the required timeframe, he shall be deemed non-compliant, and
the evaluator shall check the second highest tenderer for compliance. This
process is repeated until a compliant tenderer has been identified.
d) Appoint successful Targeted Enterprises
i) Table the Tender Report to the PLC.
The Contractor shall present the Tender Report for each sub-contract
package to the Employer’s Project Manager and the Engineer and thereafter
table it to the PLC prior to award of the sub-contract.
(Note to Proforma Compilers: Amend or omit paragraphs in the remainder of this

Section D1007 to suit the respective contract types.)
ii) Negotiating tender sum and/or rates with Targeted Enterprises.
a. Rates
If the Contractor choose to include work for which he has tendered

rates in the sub-contract package and the tenderer who scored the
highest points tendered higher rates than that of the Contractor, the
Contractor may negotiate rates and the final sum with the tenderer.
If the Contractor fails to negotiate a reasonable tender sum or rates

with the tenderer, he may:
i. approach the second highest points scoring compliant tenderer
for negotiation. This process may be repeated up to the third
highest points scoring compliant tenderer, where after the
package shall be retendered. the Contractor shall be limited to
negotiate down to 25% above his own rates (this process must
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be clearly explained prior to negotiation, when the tender report

is tabled to the PLC); or
ii. accept the highest points scoring tenderer’s higher rates and
total sum and remunerate the sub-contractor, at the sub-
contractor’s tendered rates, from the Lump Sum which the
Contractor has tendered for the fluctuation between the
Contractor’s rates and that of the Targeted Enterprise sub-
contractors.
b. Provisional Sum
If the Employer has provided a Provisional Sum for the work items in
the sub-contract package, the Contractor shall report on the feasibility
of the highest point scoring compliant tenderer’s tender rates and
tender sum to the Employer’s Project Manager and the Engineer.
i. If the highest points scoring compliant tenderer’s rates and
tender sum are deemed market related by the Engineer, the
Contractor shall obtain the Employer’s approval to utilise the
Provisional Sum provided for the work items.
ii. If the highest points scoring compliant tenderer’s rates and
tender sum are deemed not market related and the Employer
does not approve the utilisation of the relevant Provisional Sum,
the Contractor may negotiate with the tenderer for market related
rates and tender sum.
iii. If the Contractor fails to negotiate market related rates and a
tender sum with the tenderer, he may:
(a) approach the next highest point scoring compliant
tenderer for negotiation. This process may be repeated
up to the third highest points scoring compliant tenderer,
where after the package shall be retendered; or
(b) accept the highest points scoring tenderers rates and total
sum and remunerate the sub-contractor from the Lump
Sum which the Contractor has tendered for the fluctuation
between the Contractor’s rates and that of the Targeted
Enterprise sub-contractors. The Contractor shall not pay
rates or tender sums that is more than 15% higher than
what are deemed market related by the Engineer.
iii) Low tender sums submitted by Targeted Enterprises.
The Contractor shall report to the Employer’s Project Manager and the
Engineer on the feasibility of tendered rates, sums, or Provisional Sums of
tenderers who tendered exceptionally. Exceptionally low rates, sums or
Provisional Sums are those that are more than ten percent (10%) less than
what the Contractor tendered, or in the case of a Provisional Sum, what is
deemed market related by the Engineer.
a. If the tendered rates, sums, or Provisional Sums of those tenderers

who tendered exceptionally low are deemed by the Engineer to still be
feasible, the Contractor may continue to include these tenders in his
tender evaluation.
b. If the tendered rates, sums, or Provisional Sums of those tenderers
who tendered exceptionally low are deemed by the Engineer to not be
feasible, the Contractor may disqualify these tenders from his tender
evaluation.
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The Employer strongly discourages the appointment of Targeted Enterprises

that did not tender feasible rates, sums, or Provisional Sums. If all prices
submitted are deemed exceptionally low by the Engineer, the sub-contract
package shall be retendered.
The consequences of exceptionally low prices must be clearly outlined in the

Tender Report and clearly explained to the PLC prior to award or retendering
of the sub-contract packages.
iv) Payment to the Contractor
b. The Employer shall not remunerate the Contractor, other than what
have been provided for in the payment items, for accepting higher
tender sums tendered by Targeted Enterprises.
c. If the Contractor accepts tender sums that are higher than what have
been provided for in the Contractor’s tendered rates, or the Employer’s
provisional and/or prime cost sums, the costs shall be paid by the
Contractor from the Lump Sum which he tendered for the fluctuation
between the Contractor’s rates and that of the Targeted Enterprise sub-
contractors.
v) Entering the Sub-contract Agreement
The Contractor’s TE Procurement Coordinator shall assist successful

Targeted Enterprises to enter into a sub-contract agreement with the
Contractor as described in this Specifications.
D1008 GENERAL RESPONSIBILITIES OF THE CONTRACTOR TOWARDS TARGETED

ENTERPRISES
The Contractor shall have the responsibilities described in this Section, D1008 of the
Specifications, towards all Targeted Enterprises sub-contracted in terms of the CPG as
stated in the Specification Data.
a) The Employer’s Independent Targeted Enterprise Monitor
The Employer shall, through its Transformation Unit, appoint an independent

Targeted Enterprise Monitor, who shall audit the Contractor with respect to his
obligations to Targeted Enterprises and who shall report his findings to the
Employer’s Project Manager, the Engineer, and the Regional Transformation Officer
(RTO) monthly.
b) Failure to Comply with Responsibilities Towards Targeted Enterprises
If the Contractor, in the opinion of the Employer’s Project Manager or the Engineer,
fails to comply with its responsibilities towards Targeted Enterprises, the Engineer
shall issue a written warning to the Contractor, stating all the areas of
non-compliance. The Contractor’s time to correct shall be stated in the letter and
shall be in accordance with the relevant specifications for the aspects of non-
compliance.
A copy of the letter of warning shall be forwarded to the Employer’s Project Manager
and the Targeted Enterprise Monitor shall monitor that corrective action is taken by
the Contractor.
Failure by the Contractor to comply with a deadline, will be sufficient grounds for the
Employer to apply a penalty or institute a claim in accordance with the relevant
Conditions of Contract.
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D1008.01 Targeted Enterprise (TE) Construction Manager
The Contractor shall appoint a dedicated TE Construction Manager whose sole

responsibility shall be to assist the Contractor with the execution of his responsibilities
towards Targeted Enterprises and Target Groups as prescribed in this Section D of the
Specifications, with an emphasis on D1008 and D1010.
The TE Construction Manager may be appointed from the Contractor’s existing staff or
may be employed or sub-contracted for the purpose of this Contract. Irrespective of the
contractual relationship between the TE Construction Manager and the Contractor, the TE
Construction Manager shall not perform any other duties than that of a dedicated TE
Construction Manager on a full-time basis for this Contract.
a) TE Construction Manager’s Obligations
Amongst others, the TE Construction Manager shall facilitate the training,

mentoring, guidance, coaching, development, and support of Targeted Enterprises
as per the Contractors approved Training and Skills Development Programme (see
Section D1010 of the Specifications).
The TE Construction Manager shall submit monthly TE Progress Reports in the

Employer’s reporting format. The report shall be submitted to the Employer’s Project
Manager and Regional Transformation Officer, the Engineer and the Contractor, at
least one week prior to the monthly site progress meeting.
This report shall include, amongst others:
i) Details of TEs trained, e.g., number, hours, value, modules, credits obtained,
etc.
ii) Details of TEs sub-contracted, e.g., number, packages, values, etc.
iii) Details of TEs performance on the work packages, and skills gaps to be
addressed, etc.
iv) Details of TEs growth and sustainability, e.g., CIDB grading upgrades,
business success, etc.
v) Details of disputes and the associated interventions and/or resolutions.
b) TE Construction Manager’s Qualifications and Experience
The TE Construction Manager shall have as a minimum a National Diploma:

Management of Civil Engineering Construction Processes (NQF Level 5) or an
equivalent qualification.
He shall have at least 5 years’ experience as a Site Agent, managing construction

processes in the fields of roads maintenance, new roads construction, roads
rehabilitation, roads structures, etc. In addition, he shall have ample knowledge of,
and experience in, the requirements of training and mentoring in the road
construction environment.
c) TE Construction Manager’s Team
The TE Construction Manager shall have on his team one (1) TE Site Supervisor for
every six (6) Targeted Enterprises which are in their respective construction phases
and one (1) Senior TE Supervisor for every six (6) TE Site Supervisors.
The qualifications and/or experience of TE Site Supervisors and Senior TE

Supervisors shall be relevant and of a suitable level to enable them to supervise the
level of Targeted Enterprise and the specific works under construction. Below is an
indicative organogram of the TE Construction Manager and his team.
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TE
Construction
Manager
Senior TE Senior TE Senior TE

Supervisor 1 Supervisor 2 supervisor ...
TE Site TE Site TE Site TE site TE site TE Site

Supervisor 1 Supervisor 2 Supervisor 3 Supervisor 4 Supervisor 5 Supervisor 6
TE 1
TE 2
TE 3
TE 4
TE 5
TE 6
D1008.02 General Obligations
The Contractor shall, with the assistance of the TE Construction Manager, comply with the
following general obligations:
a) Assist the Targeted Enterprises in instituting a quality assurance system.

b) Provide adequate training, coaching, guidance, mentoring and any other identified
and approved assistance to Targeted Enterprises and their employees.
c) Provide support and any other identified and approved assistance to ensure that the
Targeted Enterprises meet their obligations and commitments with respect to their
sub-contracts.
d) Assist Targeted Enterprises to monitor and manage the schedules, costs, and cash
flows of their sub-contracts.
e) Endeavour to avoid sub-contract disputes and if disputes do arise, facilitate a
process to find an amicable solution.
f) Ensure that the CPG objectives are achieved.
D1008.03 Sub-contract Agreements
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The Contractor shall conclude sub-contract agreements with each sub-contracted

Targeted Enterprise and shall utilise the Employer’s proforma document for Targeted
Enterprise sub-contracting (see Annexure X3) (insert Annexure reference), which is based
on the 2011 FIDIC Conditions of Sub-contract for Construction and shall be in accordance
with the provisions of amended sub-clause 4.4 of the Conditions of Contract and shall be
consistent with the terms and conditions of this Contract.
a) Special Conditions of Contract
The following Special Conditions of Contract forms part of the sub-contract

agreement:
i) The Targeted Enterprise’s entitlement to receive the training contemplated in

this Contract (Part C1, C1.2.1, Part B, clause 6.8).
ii) The Targeted Enterprise’s obligation to participate and co-operate in the
training provided for in this Contract (Part C1, C1.2.1, Part B, clause 6.5).
iii) The allowable sources from which Labour may be drawn in terms of the
Contract (Part C1, C1.2.1, Part B, clause 6.8).
iv) The terms and conditions relating to the recruitment, employment and
remuneration of Labour engaged on the Contract (Part C1, C1.2.1, Part B,
clause 6.5).
v) The training to be provided to the Targeted Enterprise’s workforce (Part C1,
C1.2.1, Part B, clause 6.8).
vi) The terms and conditions related to payment of the Targeted Enterprise (Part
C1, C1.2.1, Part B, clauses 14.6 to 14.8 and 15.3).
vii) Sanctions in the event of failure by the Targeted Enterprise to comply with the
terms and conditions of the sub-contract agreement (Part C1, C1.2.1, Part B,
clauses 14.6 and 20.4 to 20.7).
viii) Dispute avoidance and resolution procedures (Part C1, C1.2.1, Part B,
clauses 20.4 to 20.7).
Further Special Conditions of Contract required by the Contractor shall only be

included into the sub-contract agreement once approved by the Employer and the
Engineer.
b) Monitoring of Sub-contract Agreements
The proforma sub-contract agreement for each group of work packages shall be
tabled to the Employer’s Independent Targeted Enterprise Monitor for his review
and confirmation that sub-contract agreements are in terms of the Employer’s
requirements and policies.
In addition, the PLC may request proof that sub-contract agreements were entered
into with the sub-contracted Targeted Enterprises. The PLC may request insight
into the Conditions of Subcontract and Sub-contract Data.
To protect Targeted Enterprises’ competitive advantage and/or tender strategy, only

the sub-contract agreement shall be available to the PLC for perusal and not the
pricing structure and/or Schedule of Quantities.
A copy of each sub-contract agreement shall be filed with the Engineer after
confirming that it is in accordance with the provisions of this Contract.
D1008.04 Payment of Targeted Enterprises
Targeted Enterprises shall be paid the rates and/or Provisional Sums, which they have
tendered, or which have been negotiated as described in this Section D of the
Specifications.
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a) Payment of Provisional and General Obligations
Provision shall be made in the sub-contract agreement for the Targeted Enterprise’s
preliminary and general obligations (P&Gs), which shall be calculated as a minimum
of 15% of the value of the scheduled sub-contract work items.
Where the Contractor’s sub-contract work is not paid from a Provisional Sum, the
P&Gs of the Targeted Enterprise shall be paid from the Lump Sum tendered by the
Contractor for the P&Gs of Targeted Enterprises.
P&Gs shall be paid to Targeted Enterprises as per Section PC1.3.1 of the COTO
specification payment items, i.e.:
C1.3.1.1 paid in 3 instalments of 50%, 35% and 15%.

C1.3.1.2 paid as a percentage of the total value progressively per certificate.
C1.3.1.3 paid monthly for the sub-contractor’s contract duration.
b) Monitoring of Payment of Targeted Enterprises
The Employer’s independent Targeted Enterprise Monitor shall audit the

Contractor’s Payment of Targeted Enterprises to ensure timeous and correct
payment in terms of the Employer’s requirements and Policies and shall report his
findings to the Employer’s Project Manager on a regular basis.
D1008.05 Quality of Work and Performance of Targeted Enterprises
a) Ensuring Quality of Work and Performance
The purpose of the Employer’s CPG is to, amongst others, enhance the utilisation
and development of Targeted Enterprises. Thus, while the Contractor remains
responsible for the quality of work and performance of Targeted Enterprises, he may
not neglect the developmental requirements in the sub-contracting of Targeted
Enterprises.
It is thus emphasised that the Contractor’s TE Construction Manager shall closely

monitor and supervise all Targeted Enterprises and shall train, coach, guide, mentor
and assist each Targeted Enterprise in all aspects of management, execution, and
completion of its sub-contract. This shall typically include assistance with planning
of the Works, sourcing and ordering of materials, labour relations, monthly
measurements, and invoicing procedures. The extent and level of such training,
coaching, guidance, mentoring, and assistance to be provided by the Contractor
shall commensurate with the level of sub-contract applicable and shall be directed
at enabling the Targeted Enterprise to achieve the successful execution and
completion of its sub-contract.
b) Failure by the Targeted Enterprise to Comply
If the Targeted Enterprise, in the opinion of the Engineer, fails to comply with any of
the criteria listed below, the Engineer shall issue a written warning to the Contractor,
stating all the areas of non-compliance. A copy of the letter of warning shall be
forwarded to the Employer's Project Manager and the Employer’s independent
Targeted Enterprise Monitor. The criteria are as follows:
i) Deliver acceptable standard of work as set out in the specifications.

ii) Progress in accordance with the time constraints in the sub-contract
agreement.
iii) Punctual and full payment of the workforce and suppliers.
iv) Site safety.
v) Accommodation of traffic.
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c) Assist the Targeted Enterprise to Make Good
The Contractor shall, in terms of the sub-contract agreement (Part C, clause 3.1.12),
give reasonable warning to the Targeted Enterprise when any contravention of the
terms and conditions of the sub-contract agreement has occurred or appears likely
to occur.
The Contractor shall, together with the Targeted Enterprise, identify the causes that
led to failure to comply and jointly develop a plan to rectify, which plan shall be
submitted to the Employer’s Project Manager and the Engineer for information
purposes.
Based on the plan to rectify, the Contractor shall give the Targeted Enterprise
reasonable opportunity to make good any such contravention, or to avoid such
contravention, and shall render all reasonable assistance to the Targeted Enterprise
in this regard.
d) Monitoring Execution of the Plan to Make Good
The Employer’s independent Targeted Enterprise Monitor shall review plans to

rectify and monitor the execution thereof to ensure that Targeted Enterprises are
given a fair opportunity to rectify within a developmental environment. He shall
report his findings to the Employer’s Project Manager monthly.
D1008.06 Dispute Avoidance and Resolution Procedures
When any disputes arise, the Contractor shall within seven (7) calendar days inform the
Employer's Project Manager, the Employer’s Targeted Enterprise Monitor, and the
Engineer, in writing, of the details of the dispute.
a) Facilitate Dispute Avoidance
Prior to taking any action, the Contractor shall commence with a facilitation process
by arranging a formal meeting with the Targeted Enterprise with the aim to find an
amicable solution to the dispute. The meeting shall be attended by the Employer’s
Project Manager, the Employer’s Targeted Enterprise Monitor, and the Engineer to
ensure a fair and transparent process in reaching a settlement.
If the parties are unable to find an amicable solution, the Contractor shall explain
fully to the Targeted Enterprise the provisions in the sub-contract agreement to
address disputes. If action is necessary, it shall be discussed with the Employer’s
Project Manager and the Engineer prior to any action being taken.
b) Support to Targeted Enterprise during Dispute Resolution Process
While the Employer’s Project Manager and the Engineer will observe the dispute
resolution process to ensure fairness and transparency, the Targeted Enterprise
may request consultation and assistance from the Targeted Enterprise Monitor. The
Targeted Enterprise Monitor will assist the Targeted Enterprise with the
interpretation of the Conditions of Sub-contract and will guide the Targeted
Enterprise during the dispute resolution process.
c) Issuing a Letter of Warning to Targeted Enterprise
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The Contractor shall issue a letter of warning to the Targeted Enterprise, whom shall
have 21 calendar days from the date of receipt of the letter of warning by the
Contractor to address and rectify the issues raised by the Engineer, except for
issues pertaining to Site Safety and Accommodation of Traffic, for which the reaction
time shall be in accordance with the relevant specifications for those aspects of the
Works, but which shall not be longer than 24 hours.
d) Failure by the Targeted Enterprise to Comply
Failure by the Targeted Enterprise to comply with a deadline, will be sufficient

grounds for the Contractor to apply a penalty or terminate the sub-contract
agreement provided that the Employer’s Project Manager and the Engineer are
satisfied that the Contractor has made every effort to correct the performance of the
Targeted Enterprise.
The Targeted Enterprise may dispute any ruling given or deemed to be given by the
Contractor or the Engineer, within 21 calendar days after receipt thereof by
submitting a written Dispute Notice to the Contractor, in terms of the relevant
Conditions of the Sub-contract.
On request by the Targeted Enterprise, the Targeted Enterprise Monitor will assist
the Targeted Enterprise with the interpretation of the Conditions of Sub-contract and
will guide the Targeted Enterprise during the dispute resolution process.
D1009 WORK SUITABLE FOR EXECUTION BY TARGETED ENTERPRISES
To assist the Contractor in achieving his CPG, the following work items have been
identified as being suitable for execution by Targeted Enterprises:
(Note to Compiler:
1. Insert relevant work types as informed by the market analysis in terms of the CIDB
guidelines that was conducted by the Engineer during the design phase.
2. Add additional work types including work that may form part of the main activities to
meet the minimum CPG target(s).
3. Add any other work identified by the Employer to be executed in the Project Area.)
a) Erection and maintenance of the Contractor’s camp site.

b) Clearing and grubbing.
c) Removal of trees.
d) Provision of traffic control facilities.
e) Management of traffic control facilities and traffic safety as part of the
accommodation of traffic.
f) Construction and clearing of drains.
g) Installation of prefabricated culverts including inlet and outlet structures.
h) Concrete channelling and concrete linings for open drains.
i) Construction of concrete paving, kerbs and channels.
j) Construction of small concrete and other structures.
k) Construction of concrete walkways.
l) Pitching, stonework and protection against erosion.
m) Construction of gabions.
n) Patching and repairing edge breaks.
o) Erection of guardrails.
p) Landscaping.
q) Fencing.
r) Road signs.
s) Road markings.
t) Finishing the road and road reserve.
u) Site Security Services.
v) Haulage of materials.
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w) Supply of plant.
x) Supply of fuel.
y) Specialised sub-contract work such as:
i) Construction of concrete pavements.
ii) Laying of asphalt using asphalt pavers.
iii) Structural concrete such as culvert and bridges.
iv) Crushing of materials.
v) Precast manufacture.
vi) Batch plant erection and operations.
vii) Earthworks, layerworks construction.
viii) Structural steel fabrication, erection.
From the above work items, the following have been identified as suitable for execution by
CIDB CE1 and CE2 Targeted Enterprises:
(Note to Compiler: Insert relevant work types.)
a. Concrete sidewalks.
b. Side drains.
c. Clearing and grubbing.
d. Construction and clearing of drains.
e. Any other work identified by the Employer to be executed in the Target Area.
The work to be carried out by Targeted Enterprises is not limited to the work listed above
and the Contractor may need to engage Targeted Enterprises on other aspects of the
Works to achieve the CPG.
A Provisional Sum for the work by CIDB 1 and 2 Targeted Enterprise sub-contractors is
allowed under pay-item D10.05.
D1010 TRAINING, COACHING, GUIDANCE, MENTORING AND ASSISTANCE
The Contractor shall with the input and support of the PLC develop a Training and Skills
Development Programme which shall be managed by the Contractor’s TE Construction
Manager
D1010.01 Purpose of the Training and Skills Development Programme(s)
Skills development forms an integral part of the Employer’s Transformation and

Community Development Policies and hence, it is important to the Employer that Targeted
Labour and Targeted Enterprises be equipped with skills that can be used to gain
meaningful future employment and secure sub-contracting opportunities.
It is, therefore, a requirement of this Contract that the Contractor provide adequate training,
coaching, guidance, mentoring and assistance to the Targeted Labour and Targeted
Enterprises, to ensure skills development within the Construction Industry.
D1010.02 Skills Audit and Analysis
To develop the Training and Skills Development Programme(s), the Contractor shall
conduct a skills audit and analysis of Labour on the Targeted Labour database and the
Targeted Labour of sub-contracted Targeted Enterprises to determine their levels of
education, existing qualifications, and skills sets. The outcome of the skills audit and
analysis shall be used to develop a Training and Skills Development Programme(s) that
will benefit both the employee and the Construction Industry at large.
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Included in the skills audit and analysis shall be a separate section, analysing the
education, qualifications and skills sets of the Targeted Enterprise’s owners and their
supervisors sub-contracted by the Contractor, to develop a Training and Skills
Development Programme that will develop and improve the ability of small business
owners and their supervisory staff to better manage their enterprises.
D1010.03 Developing the Training and Skills Development Programme
The Employer shall, through its Project Manager, be involved in the decision making and
quality control pertaining to the development and implementation of the Training and Skills
Development Programme facilitated through this Contract.
The Employer has no service agreement or memorandum of understanding with any

education and training quality assurance body and, therefore, does not function as the
“Employer” as defined under any three-party-agreement between the Trainee, the Training
Provider, and the Employer.
However, the Employer requires similar outcomes to that of formal learnership

programmes and the Contractor shall structure a Training and Skills Development
Programme in a manner that permits continued access to further learning and
qualifications within a defined programme.
The complete Training and Skills Development Programme shall be developed during the
Mobilisation Period, accepted by the Engineer after consultation with the Employer’s
Project Manager, and tabled to the PLC for their information before any training
commence.
D1010.04 The Training Service Provider
While the Contractor’s TE Construction Manager will manage the Training, Development
and Support Programme and mentor Targeted Enterprise sub-contractors from a practical
point of view, the Contractor shall sub-contract a Training Service Provider to implement
the theoretical training components of the Programme by applying the Employer’s Supply
Chain Management Policy for second tier procurement.
c) Accreditation of the Training Service Provider
The Training Service Provider entity shall be accredited, and have in its employ
Practitioners, Assessors and Moderators who are registered, with the Construction
Education Training Authority (CETA). Proof of accreditation and registration shall
be current, valid and list the NQF levels and Unit Standards for which the entity and
its staff are accredited.
d) Qualifications and Experience of the Training Service Provider
The training and competency levels required of the Training Service Provider and
his staff are outlined in the table below:
TABLE D1010/1: QUALIFICATIONS FOR TRAINING STAFF

Designation Title and Unit Standard No NQF Level Credit
Practitioner Train the trainer; No 7384 4 16
Assessor Conduct outcome base assessment; No 115753 5 15
Conduct moderation of outcome-based assessment; No
Moderator 6 10
115759
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In addition to the above qualifications, and in keeping with current CETA practical
experience requirements for registration as a Practitioner, NQF Level 4 Unit
Standards shall only be presented by Practitioners with NQF Level 5 (one level up)
credentials.
The Employer further requires that Assessors and Moderators shall have at least 5
years’ experience as a Site Agent, managing construction processes in the fields of
roads maintenance, new roads construction, roads rehabilitation and structures.
Elective Unit Standards are typically more vocational orientated and may require
specialist input. It is thus not a requirement that individual Practitioners and
Assessors shall have all the necessary skills for all the different categories of Unit
Standards. The Training Service Provider may and shall therefore, when
necessary, appoint Practitioners and Assessors on and ad hoc basis with the levels
of experience which are required for the Unit Standards to be presented.
(Note to Compiler: for projects with a Works Construction Period of less than 12
months, the training should apply as set out under D1010(e) and (f) below. Sub-
clause (g) should then be deleted)
D1010.05 Training and Skills Development Programme: General Requirements
The Training and Skills Development Programme shall consist of Learnerships that include
multiple, but related Unit Standards which are (1) relevant to the Works to be constructed,
(2) aimed at achieving the skills development objectives of the Programme, and (3) lead
towards a formal qualification in the Construction Industry.
Learnerships shall include both the theoretical and practical components of each Unit
Standard and shall be in accordance with the various laws and regulations contained in
the South African Qualification Authority (SAQA) statutes.
e) Training Programme Requirements and Considerations
The Skills Audit and Analysis shall inform the Contractor of every employee’s
Recognised Prior Learning (RPL) skills and competencies, which shall be taken into
consideration in the development of the Training and Skills Development
Programme so that the RPL skills and competencies, together with the Training
Programme Unit Standards offerings, will lead to a full Learnership outcome and
hence a formal qualification.
It is recognised that the Training and Skills Development Programme may consist
of several Unit Standards but totalling insufficient credits for a full Learnership
qualification. Nevertheless, the competencies and credits achieved in the
Programme shall contribute to a full Learnership by a later acquisition of the
outstanding Unit Standards required for the full Learnership.
The Training and Skills Development Programme shall be structured in a manner to

prioritise those Unit Standards that will equip Trainees with the minimum skills and
competencies required to become economically involved in the execution of the
Works as soon as possible.
The Training Service Provider shall apply the SAQA Learnership criteria of which
the basic elements are listed below to demonstrate the Employer’s requirements:
a. Minimum credits for qualification.

b. Fundamental Unit Standards and credit values.
c. Core Unit Standards and credit values.
d. Elective Units Standards and credit values.
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e. Assumption that NQF Level 3 literacy, numeracy, and computer

competencies exist.
f. RPL processes.
g. Exit level outcomes.
The above criteria are not exhaustive, and the Training Service Provider shall apply
the systems and processes required by the relevant SAQA and other related
legislation pertinent to training. The Training Service Provider shall regularly consult
the SAQA website (www.saqa.org.za) to ensure that the most current Unit
Standards are presented. In the event of any conflict, the legislated requirements
shall apply.
While structuring the Learnership offerings, the Training Service Provider shall
distinguish between the levels of learning required. The bulk of the training shall
focus on NQF Levels 4 and 3. NQF Level 5 training is not anticipated but may be
suitable for qualifying staff of established small contractors. The qualification titles
for the respective NQF Levels are:
a. NQF Level 3 National Certificate: Construction Roadworks.

b. NQF Level 4 National Certificate: Supervision of Construction Processes
c. NQF Level 4 National Certificate: Business Management
d. NQF Level 5 National Diploma: Management of Civil Engineering
Construction Processes
It may be necessary to include additional Core Unit Standards, e.g., “Tendering” or

“Entrepreneurship” as an additional Unit Standard for NQF Level 4, to achieve the
Contract’s development objectives. The identification of any additional Unit
Standards shall be discussed with the Engineer and shall not be implemented
without prior approval.
Before qualifying, Trainees will be expected to demonstrate competence in a

practical situation that integrates the assessment of all specific outcomes, for all Unit
Standards in the Learnership Programme.
All training shall take place within normal working hours, or as agreed with the
trainees.
f) Selection of Trainees
To complete a Learnership successfully requires minimum literacy and numeracy

competencies as defined by SAQA. The Training Service Provider shall utilise the
skills audit and analysis and conduct additional skills analysis to benchmark the
literacy and numeracy levels of Targeted Labour and Targeted Enterprises and their
employees. This information shall guide the Training Service Provider in formulating
the Trainee selection methodology(ies) and process(ess). The Training Service
Provider shall make provision for:
i) baseline assessments, e.g., conducting RPL enquiries and tests, and

ii) a skills gap programme consisting of Fundamental Unit Standards, to
facilitate the selection process.
Trainees identified as having already acquired some tertiary training, particularly in

the field of Civil Engineering, may be suitable for a specialised Trainee programme
or a higher NQF Level programme. The Training and Skills Development
Programme shall, therefore, make provision for Trainees with a variety of
competency levels and shall make provision for different levels of training.
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It should be noted that where this Section D of the Specifications refers to the
selection and training of Trainees, any person, employed by any national, provincial,
or local authority, being it full time or part time, is expressly excluded from being
considered for this training.
g) Learning Material
Learning material is required for each Unit Standard. This learning material is the
equivalent of prescribed textbooks for other qualifications. Each Trainees shall
receive a copy of the learning material to learn the contents and to use it as
reference source after obtaining the qualification.
The SAQA Unit Standard curriculums define the contents of the learning material.
The learning material shall not only comply with the SAQA and CETA guidelines but
shall be technically and practically aligned to road construction and/or road
maintenance. Any input from a subject matter expert required to ensure the
appropriateness of a learning material contents shall be included in the Training
Service Provider’s costs.
The requirements to be addressed in learning material as outlined by the SAQA Unit

Standard curriculums are, amongst others, the following:
i) Purpose of the Unit Standard.

ii) Specific outcomes (typically 4 per Unit Standard).
iii) Assessment criteria (typically 4 per specific outcome).
iv) Range as is defined for each specific outcome.
v) Critical cross-field outcomes for the Unit Standard.
vi) Unit Standard essential embedded knowledge.
h) Student Experiential Training or Learnerships or Internships
The Employer may deploy students to the construction site to obtain experiential
training. The Contractor shall provide experiential training to these students in
accordance with the relevant academic institution’s requirements, which is typically
a university, a university of technology, or a TVET.
The Contractor shall also provide students with all the tools (including appropriate
information technology hardware and software) and site office space necessary to
carry out engineering work as if they were the Contractor’s own permanent staff.
Reporting on training progress of each student shall be compiled according to the

formats and intervals set be the relevant academic institution.
i) Keeping of Records
The Training Service Provider shall keep comprehensive records of the training
provided to each Trainee and shall ensure that Trainees’ successful completion of
successive Unit Standards are entered onto the national SAQA database. After the
successful completion of generic skills courses each Trainee shall be issued with a
certificate indicating the course contents as proof of attendance and completion.
The Contractor shall keep a register of certificates issued. Whenever required, the
Contractor shall provide copies of such records to the Engineer.
(Note to Compiler: for projects with a Works Construction Period of 12 months or

more, the CIDB Standard for Developing Skills through Infrastructure Contracts
(August 2013) – Government Gazette No. 36760, should apply as set out under
D1010(g) below. Sub-clause (e) and (f) above should then be deleted and (g) and
the rest of the sub-clauses renumbered starting with (e).)
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j) Skills Development Requirements
i) Contract Skills Development Goals (CSDG)
This section establishes a minimum CSDG which is to be achieved in the

performance of a Contract (as per the CIDB Standard for Developing Skills
through Infrastructure Contracts August 2013) in relation to the provision of
different types of workplace opportunities linked to work associated with a
Contract which culminate in or lead to:
a. a part- or full occupational qualification registered on the National

Qualification Framework,
b. a trade qualification leading to a listed trade (GG No. 35625, 31 August
2012),
c. a national diploma registered on the National Qualification Framework,
and
d. registration in a professional category by one of the professional bodies
listed in Table 1 of the Standard.
The Contractor shall achieve or exceed the CSDG in the performance of the
Contract. The Contractor may, if need be, devolve their obligations onto Sub-
contractors.
The CSDG shall not be less than the contract amount multiplied by 0.25
percent (%) for Civil Engineering work (CE). For this reason, the Contractor
shall insert the CSDG amount in Form C.2.3 Summary of Pricing Schedule.
ii) Achieving Contract Skills Development Goal (CSDG)
The Contractor shall achieve the CSDG by providing employment

opportunities to Trainees requiring structured workplace learning using one
or a combination of any of the following methods in relation to work directly
related to the Contract:
Method 1: Structured workplace learning opportunities for Trainees

(LoL) towards the attainment of a part or a full occupational
qualification.
This training method shall apply to Targeted Enterprises and

Targeted Labour.
Method 2: Structured workplace learning opportunities for apprentices

or other artisan Trainees (LoA) towards the attainment of a
trade qualification leading to a listed trade (GG No. 35625, 31
August 2012) subject to at least 60% of the artisan Trainees
being holders of public FET college qualifications.
This training method shall apply to Targeted Enterprises and

Targeted Labour.
Method 3: Work integrated learning opportunities for University of

Technology or Comprehensive University students (LoUS)
completing their national diplomas.
This training method shall apply to P1 and P2 Trainees, or

Trainees with a 240 credits qualification. Both the
permanently employed and temporary employed Trainees
shall be considered under this training method.
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Method 4: Structured workplace learning opportunities for candidates

(LoC) toward registration in a professional category by a
statutory council listed in Table 1 of the Standards.
This training method shall apply to Candidates with 480

credits qualification. Both the permanently employed and
temporary employed Trainees shall be considered under this
training method.
No single method shall contribute more than 75 percent of the CSDG.

Permanently employed Trainees may not account for more than 33 percent
(%) of the CSDG, and not more than one method may be applied to any
individual concurrently in the calculation of the CSDG.
iii) CSDG Credits
The CSDG shall be calculated by multiplying the number of people employed

by the Contractor and placed for continuous training opportunities in a three-
month period by the notional values contained in Table 3 of the Standard, or
as revised in a Gazette notice.
The Contractor may source beneficiaries of the CSDG from a Skills

Development Agency (SDA) recognised by the CIDB.
All beneficiaries shall be registered with a construction Skills Development

Agency (SDA) recognised by the CIDB.
iv) Denial of Credits
Credits towards the CSDG shall be denied should the Contractor not fulfil all
the requirements listed in clause 3.4 (a) to (f) of the Standards.
v) Compliance with Requirements
The Contractor shall comply with the requirement as set out in clause 4 of the
Standards.
vi) Records
The Contractor shall submit all the documentation required in terms of clause
4 of the Standards, in a timely manner and according to a prescribed format
where applicable.
The Engineer shall certify the value of the credits counted towards the CSDG,
if any, whenever a claim for payment is issued to the Employer and shall notify
the Contractor of this amount.
The Contractor shall, upon termination of the opportunities provided to satisfy

the CSDG, certify the quantum and nature of the opportunity and submit the
certificate, counter-certified by the relevant individual, to the Engineer for
record-keeping purposes.
vii) Sanctions
Failure to achieve the CSDG shall render the Contractor liable for a penalty
as prescribed in clause 8.7 of the FIDIC Conditions of Contract. Penalties
shall be as follows:
a. Penalty = 0.5 x {[LoAs + LoLs + LoUSs + LoCs]}
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Where:
LoLs = Monetary Value of the shortfall for structured workplace
learning opportunities for Trainees towards the attainment
of a part or a full occupational qualification.
LoAs = Monetary Value of the shortfall for structured workplace
learning opportunities for apprentices or other artisan
Trainees towards the attainment of a trade qualification
leading to a listed trade (GG No. 35625, 31 August 2012)
subject to at least 60% of the artisan Trainees being
holders of public FET college qualifications.
LoUSs = Monetary Value of the shortfall for work integrated
learning opportunities for University of Technology or
Comprehensive University students completing their
national diplomas (LoUS).
LoCs = Monetary Value of the shortfall for structured workplace
learning opportunities for candidates towards registration
in a professional category by a statutory council listed in
Table 1 of the Standards (LoC).
b. Delay the issuing of the Performance Certificate until all the required
records described in clause 5 of the Standards are received.
k) Generic Skills Training
Generic skills shall be taught where the need has been identified and approved by
the Employer’s Project Manager and the Engineer.
The Contractor shall make representation to the Employer’s Project Manager and
the Engineer, who shall approve candidates that should attend such courses as they
deem appropriate. Those selected shall receive formal generic skills training in a
programmed and progressive manner. The PLC may also identify a need for
generic skills training.
Typical training programmes could comprise some or all the following modules:
i) Basic hygiene and HIV/AIDS awareness.

ii) Road safety.
iii) Basic management of the environment.
iv) Tourism awareness and opportunities.
v) Managing personal finance.
vi) Adult Basic Education and Training (ABET).
vii) Community based training programmes (e.g., knitting, computer skills, plant/
machine operator, etc.).
All generic skills training shall be accredited by the relevant Sector Education and
Training Authority (SETA) and shall be provided with accredited entities and/or
individuals.
l) Community Training
Community training shall be taught where the need has been identified. Affected
Communities may submit their training needs to the PLC for the Contractor’s
consideration and inclusion into the Training and Skills Development Programme.
While considering the training needs of affected Communities, the Engineer shall
inform the PLC of the Contract’s training limitations, as well as of the training that
could be undertaken through the Contract.
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Trainees from the Community shall be identified through the Community structures
and with the input and support of the PLC. Trainees selected from the Community
shall receive formal skills training in a programmed and progressive manner in
compliance with sub-clause (d). Priority shall be given to training that will equip
Community members with skills that will enhance their employability.
All community skills training shall be accredited by the relevant Sector Education
and Training Authority (SETA) and shall be provided with accredited entities and/or
individuals.
m) Training Facilities
The Contractor shall be responsible for providing everything necessary to offer the
various training workshops and modules including:
i) a suitable venue with sufficient furniture, lighting, and power,

ii) all necessary stationery consumables and study material,
iii) transport for attendees.
D1011 LABOUR ENHANCED CONSTRUCTION
The Contractor's attention is drawn to the fact that it is an objective of the Contract to
maximise the labour content of certain operations or portions thereof. In this regard, where
the specified work allows for a choice between mechanical or labour-enhanced means,
the former should generally be kept to the practical minimum.
Before commencing with any labour enhanced operations, the Contractor shall discuss his
intentions with the Engineer, and shall submit to the Engineer monthly, daily labour returns
indicating the numbers of temporary personnel employed on the Works and the activities
on which they were engaged.
It should be noted that activities that are conventionally done by labour methods, e.g.,
gabions, shall not qualify under this Section D of the Specifications.
D1012 COMMUNITY DEVELOPMENT
D1012.01 Corporate Social Investment (CSI)
The Contractor shall demonstrate its willingness to actively participate in the social
development initiatives for local Communities affected by the Contract. To this end, the
Contractor shall provide details of CSI initiatives it will actively pursue under Form D9:
Corporate Social Investment.
D1012.02 Community Development Projects
Community Development (CD) Projects are primarily training and skills development
programmes to benefit an identified Community and Trainee Targeted Enterprises
selected from the Community.
The owners and supervisors of Trainee Targeted Enterprises receive SAQA accredited
training towards an accredited qualification which consists of theoretical and practical
components.
The theoretical training, as well as the practical training, which is the construction of the
CD Works, is undertaken by the Trainee Targeted Enterprises under the mentorship and
supervision of a Training and Construction Manager.
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a) CD Project(s)’ Service Provider(s)
CD Projects identified for implementation in association with this Contract will be let
for tender by the Employer as separate Contracts.
The name(s) and contact details of the Service Provider(s) appointed for the
implementation of the CD Project(s) will be provided to the Contractor on award of
the Contract or as soon as the Service Provider(s) has/have been appointed.
The Contractor shall collaborate and cooperate with the CD Project(s)’ Service
Provider(s) and take cognisance of the CD Project(s)’ programme in compiling the
programme of the Works Contract.
(Notes to Compiler:
1. All CAPEX Projects must have at least one (1) CD Project associated with the
Contract with a value of at least ten percent (10%) of the Engineer’s estimate for the
CAPEX Project.
2. More than one (1) CD Project may be identified for implementation in association
with a Conventional Contract.
3. CD Projects associated with a Conventional Project may commence prior to, during
or after the Conventional Project, depending on the requirements for, or the timing
of, the Conventional Project
b) CD Project(s) Associated with this Contract
(Note to Compiler: If (a) CD Project(s) associated with this Contract has been identified,
include the following for each CD Project:)
The Employer identified a CD Project associated with this Contract with the CD
project number and description being SANRAL C.xxx-xxx-20xx/1 for xxx xxx xxx
(insert CD project number and description).
The CD Project commenced/is envisaged to commence (select relevant wording)

on xx Xxx 20xx (insert date) and has an estimated duration of xx (insert no.) months.
The CD Project Works entail the following: (insert a detailed description of the CD
Project Works below):
i) xxx
ii) xxx
iii) xxx
(Note to Compiler: If a CD Project associated with this Contract has not been identified
yet, include the following:)
The Employer will identify a CD Project associated with this Contract and will inform
the Contractor of the CD project number and description as soon as it has been
registered, together with all other relevant detail.
D1013 MEASUREMENT AND PAYMENT
Item Unit
D10.01 Target Group Participation
(a) Contract Participation Performance bonus. Prime Cost

(PC) Sum
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The prime cost sum for item D10.01(a) shall cover any CPP bonus due as specified in
clause D1003(e). The prime cost sum shall be expended in accordance with clause 13.5
of the FIDIC Conditions of Contract.
(Note to Compiler: The prime cost sum amount to be allowed in the pricing schedule
should be calculated by assuming that the CPG target is exceeded by 50% utilising
the CPP bonus calculation formula under D1003(e).)
Note:
No separate payment shall be made for any costs incurred by the Contractor, whether
direct or indirect, for his efforts in accomplishing the specified requirements, and which are
not recoverable from the pay-items allowed. Such costs shall be deemed to have been
included in the rate offered under pay sub-item C1.3.1.3 Contractor’s Establishment on
Site and General Obligations: Time Related Obligations.
Item Unit
D10.02 Stakeholder and Community Liaison and Social Facilitation
(a) Cost of liaison, social facilitation, and PLC support. Prime Cost
(PC) Sum
(b) Handling cost and profit in respect of sub-item D10.02(a). Percentage
(%)
The prime cost sum for item D10.02(a) shall cover the direct costs incurred by attending
members of the PLC. The rate of compensation shall be fair and agreed by the Engineer
in accordance with clause 13.5 of the FIDIC Conditions of Contract. The tendered
percentage for sub-item D10.02(b) shall include full compensation for all handling costs
and profit of the Contractor associated with sub-item D10.02(a).
The liaison with, and assistance provided by the Contractor to the PLC to perform its duties
shall not be paid from the prime cost sum. The Contractor’s costs to liaise with the PLC
and render such assistance shall be deemed to have been included in its rate offered for
pay sub-item C1.3.1.3, Contractor’s Establishment on Site and General Obligations: Time
Related Obligations.
Item Unit
D10.03 Tender Process for Targeted Enterprises
(a) Contractor’s charge for the management and execution of the

Targeted Enterprise procurement process:
(i) Procurement process for the totality of all tenders Number (No)
concluded for the appointment of Targeted Enterprise
sub-contractors of CIDB 1 and 2 contractor grading.
(ii) Procurement process for the totality of all tenders Number (No)
sub-contractors of CIDB 3 and 4 contractor grading.
(iii) Procurement process for the totality of all tenders Number (No)
sub-contractors of CIDB 5 and higher contractor
grading.
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(iv) Procurement process for the totality of all tenders Number (No)
suppliers.
(b) Targeted Enterprise Procurement Coordinator Month
The unit of measurement for item D10.03(a) shall be the number of individual sub-contract
agreements concluded with Targeted Enterprise sub-contractors and suppliers in
accordance with the procurement process described in this Section D of the Specifications.
The tendered monthly rate for sub-item D10.03(a) shall include full compensation for the
provision of the relevant personnel on a full-time basis to carry out the requirements in
terms of sub-item D10.03(a) and the full contents of this Section D of the Specifications.
Each tendered rate shall be in full compensation for the management and execution of the
Targeted Enterprise procurement process in the relevant CIDB contractor grading
designation scheduled, including for the appointment of a TE Procurement Coordinator (if
required), the pre-tender training of eligible Targeted Enterprises, the compilation, printing,
binding and issue of the tender documents for each tender, for the advertising of each
tender, for the provision of the venue and the conducting of each compulsory briefing
session for tenderers, for the conducting of each tender opening process, for the
adjudication of the tenders received for each tender, for the preparation of each tender
adjudication report and the review thereof in conjunction with the Employer, Engineer and
the PLC, for the award of each tender and for the conclusion of the sub-contract agreement
with each successful Targeted Enterprise tenderer, and any other relevant requirement
described in this Section D of the Specifications.
Item Unit
D10.04 Responsibilities of the Contractor towards Targeted Enterprises
(a) Contractor’s establishment, management, management Month

support, assistance, coaching, guidance, mentoring and
supervision of Targeted Enterprises.
(b) Targeted Enterprise Construction Manager Person Month
(c) Targeted Enterprise Site Supervisors Person Month
The tendered monthly rate for sub-item D10.04(a) shall include full compensation for the
registration of all the sub-contract agreements and the management of all the Targeted
Enterprise sub-contracts, including for the provision of the necessary management,
support, coaching, guidance, mentoring and supervision of the Targeted Enterprise sub-
contractors.
The tendered monthly rate for sub-items D10.04(b) and (c) shall include full compensation
for the provision of the relevant personnel on a full-time basis to carry out the requirements
in terms of sub-item D10.04(a) and the full contents of this Section D of the Specifications.
Item Unit
D10.05 Construction Works by Targeted Enterprises
(a) Payments associated with the construction works executed by Provisional

Targeted Enterprise sub-contractors of CIDB 1 and 2 (Prov) sum
contractor grading designation appointed in terms of Section D
of the Specifications.
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(Note to Compiler: The Prov sum allowance in the pricing

schedule shall be the CPG target percentage, for CIDB 1
and 2 contractors as stated in Section B clause D1003.04.
(b) Handling costs and profit in respect of payment associated with Percentage (%)
sub-item D10.05(a).
(c) Fluctuation between the main contractor’s rates and that of the Lump Sum (LS)
Targeted Enterprise sub-contractors.
(d) Preliminary and General Obligations of Targeted Enterprise sub- Lump Sum (LS)
contractors appointed in terms of Section D of the
Specifications.
Expenditure under sub-items D10.05(a) shall be in accordance with clause 13.5 of the
FIDIC Conditions of Contract.
The Provisional Sum for sub-item D10.05(a) is provided to cover the cost of the
construction works, including preliminary and general obligations, carried out by the
Targeted Enterprise sub-contractors of CIDB 1 and 2 contractor grading designation as
certified by the Engineer, in separate payments for each Targeted Enterprise in
accordance with Section D of the Specifications. Expenditure under sub-item D10.05(a)
shall be limited to the Provisional Sum amount stated in the Pricing Schedule. Construction
works by Targeted Enterprise sub-contractors of CIDB 1 and 2 contractor grading
designation, exceeding the Provisional Sum amount shall be measured for payment from
the applicable work items in the Contractor’s pricing schedule
The tendered percentage for sub-item D10.05(b) is the percentage of the amount spent
under sub-item D10.05(a) and shall include full compensation for the Contractor’s handling
costs, profit or any other costs associated with the work conducted by the Targeted
Enterprise sub-contractors, which are not provided for in other pay-items.
The Lump Sum tendered under item D10.05(c) is for fluctuation of the Targeted Enterprise
sub-contractor rates more than the contractor’s tendered rates, for work not paid under items
D10.05(a). Payment of the Lump Sum shall be on a prorata basis to provide compensation
for the fluctuation between the tendered rates of the Main Contractor and that of the Targeted
Enterprise sub-contractors until the Lump Sum is depleted. Any costs incurred due to
fluctuation in tendered rates more than that tendered for under item D10.05(c) will be for the
Contractor’s account. Item D10.05(c) is applicable where the Target Enterprise sub-
contractor’s tender amount is higher than the Main Contractor’s tender amount. The Lump
Sum will cover the fluctuation for all the tendered rates of the sub-contractors.
The Lump Sum tendered under item D10.05(d) is for the Preliminary and General
Obligations of Targeted Enterprise sub-contractors (excluding CIDB 1 and 2 contractor
grading designation) paid from the Provisional Sum. Payment of the Lump Sum shall be on
a prorata basis to provide compensation for the P&Gs of Targeted Enterprise sub-contractors
until the Lump Sum is depleted. Any costs incurred for the P&Gs of Targeted Enterprise
sub-contractors more than that tendered for under item D10.05(d) will be for the Contractor’s
account.
Item Unit
D10.06 Training, coaching, guidance, mentoring and assistance
(a) Training Costs

(i) Accredited NQF training. Provisional
(Prov) sum
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(ii) Accredited generic skills training. Provisional

(Prov) sum
(iii) Community skills training Provisional
(Prov) sum
(iv) Handling cost and profit in respect of sub-items Percentage (%)
D10.06(a)(i), (ii), and (iii).
(b) Student experiential training.
(i) Student stipends Prime cost
(PC) sum
(ii) Provision of experiential training Person month
(c) Other costs during training. Provisional
(Prov) sum
(d) Training venue. Lump Sum
(Note to Compiler: For contracts, with a duration of less than 12 months all the above
items are to be utilised. For contracts exceeding 12 months items D10.06(a)(i) and
D10.06(b) will not be applicable.)
The Provisional Sums under sub-items D10.06(a) shall be paid in accordance with the
provisions of sub-clause 13.5 of the FIDIC Conditions of Contract. The Provisional Sums
shall include all charges for the provision and delivery of the service including an accredited
Training Service Provider (if required), learning material and any other requirement as
described in Section D1010 of the Specifications.
The rate tendered under sub-item D10.06(a)(iv) shall be deemed to cover all costs required
to organise accredited trainers to provide training and shall include the Contractor's
handling cost, profit, record keeping, reporting and all other costs associated with sub-
items D10.06(a)(i), (ii), and (iii).
The prime cost sum under sub-item D10.06(b)(i) shall be paid in accordance with the
provisions of sub-clause 13.5 of the FIDIC Conditions of Contract. The prime cost sum
shall cover the monthly stipend as prescribed by the Employer to be paid to students
receiving experiential training.
The unit of measurement for sub-item D10.06(b)(ii) shall be the person-month, with pro-
rata payments made for partial months for training provided based on 23 workdays per
month.
The rate tendered under sub-item D10.06(b)(ii) shall include full compensation for the
Contractor to provide training to the students provided by the Employer inclusive of all
costs to communicate with the Employer and any other body or organisation in respect of
work assigned to the students. The rate tendered shall include telephone calls and
charges, stationery and information technology hardware, software, connection or licence
costs and lost production, profits, and all other incidentals as well as all administrative and
overhead costs.
The Provisional Sum under pay-item D10.06(c) shall be paid in accordance with the
provisions of sub-clause 13.5 of the FIDIC Conditions of Contract. The Provisional Sum
shall cover the Contractor’s costs for payment of wages of employed trainees attending
training courses during working hours, for the provision of meals to trainees, for provision
of transport and for all other incidentals required for the trainees and approved by the
Engineer. No mark-up is payable to the Contractor under this item.
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The unit of measurement for pay-item D10.06(d), shall be the Lump Sum. The sum
tendered shall include full compensation for the provision of the training venue, for all
necessary lighting, power, furniture, stationery, consumables and study material and all
other costs necessary to maintain the venue for the duration of the contract. Payment of
the Lump Sum shall be made in two instalments as follows:
The first instalment, 75% of the Lump Sum, shall be paid after the Contractor has met all
his obligations regarding the provision of the training venue as specified.
The second and final instalment, 25% of the Lump Sum, shall be paid after the provision
of all the accredited training as specified in the document.
No payment, nor pro rata payment, shall be made for trainees that, once selected, do not
attend or only partially complete structured training courses. The Contractor’s own staff
may attend the courses provided. However, such attendants from the Contractor’s staff
shall not be considered for measurement and payment purposes unless they also qualify
as Targeted Labour.
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ANNEXURE X1 – CONTRACT PARTICIPATION GOAL (CPG) PLAN FORMAT
CPG PLAN NOT

CPG PLAN NOT AREED
ACCEPTED BY SANRAL
BY PLC
AND ENGINEER
CONTRACTOR SUBMIT CPG PLAN ACCEPTED

CONTRACTOR PREPARE CONTRACTOR TABLE CPG PLAN AGREED BY
CPG PLAN TO SANRAL BY SANRAL AND
CPG PLAN CPG PLAN TO PLC PLC
AND ENGINEER ENGINEER
CONTRACTOR PREPARE
TENDER DOCUMENTS
CONTRACTOR SUBMIT
DOCUMENTS TO
ENGINEER
TENDER DOCUMENTS TENDER DOCUMENTS

NOT ACCEPTED BY ACCEPTED BY
ENGINEER ENGINEER
TENDER REPORT TO
TENDER TRAINING AND CONTRACTOR
SANRAL AND TENDER EVALUATION TENDER CLOSURE
BRIEFING SESSION ADVERTISE TENDER
ENGINEER
TENDER REPORT
TABLED TO PLC
TENDER REPORT
TENDER AWARDED
CONTRACT PARTICIPATION GOAL (CPG) FLOW CHART
APPEALS
ESCALATE TO SANRAL
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Contractor Logo and details
Contract Participation Goal Plan
SANRAL Contract Number: XXXX
Contract Name: XXXX
(SANRAL Logo)
Author:
Date:
Version
EDMS#6462666v3
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1. INTRODUCTION
2. OBJECTIVE
3. TARGETED ENTERPRISES
3.1 List of Work Packages for Targeted Enterprises
3.2 List of Work Packages for Main Contractor
Table 1: CPG Expenditure Breakdown

Project Number
Project Name
Final Contract Value R
Designated Groups Min (TE) CPG Target %
Min (TE CPG Target Amount R
CPG Target as per Contract CPP Planned Achievement
Description of CPG Min. Allocated %
Category Min. Target % as Expected
Target Amount as per Market
per Contract Amount
Analyses
Min. xx% of Final
Targeted Labour (TL) R % R
Contract Value
Youth
Women
Disabled
Other
Targeted Enterprise Min. xx% of Final
R % R
(TE) Contract Value
Youth
Women
Military Veterans
Disabled
CIDB 1 and 2
CIDB 3 and 4
Other
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3.3 Breakdown of Work Packages
The table below describes the work package breakdown with reference to Designated Groups and Functionality:
Table 1: Breakdown of Work Packages

Project Number
Project Name
Contract Price
CPG Target %
CPG Target Value
Proposed TE Target Group Amount CIDB Expenditure
Tender Value
EME or QSE
No. of Work
TE Amount
Black 3&4
Packages
Proposed
Proposed
Comment
% of CPG
Veterans
Disabled
Package
Grading
No.
Woman
Type of
Military
1&2CE
Youth
Value
Black
Black
Black
Black
Black
Other
Work
CIDB
Limit
CE
TE Sub-contractors
1
2
3
TE Suppliers and
Service Providers
4
5
6
TE Sub-contractor Sub-total
TE Supplier/Service Provider Sub-
total
Provisional Total
Provisional %
Target Amount
Target %
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3.4 Schedule of works and CPG Expenditure Plan
3.4.1 Schedule of work (Insert Programme)
3.4.2 CPG Expenditure Plan
Table 3: Example: CPG Expenditure Plan

Planned CPG Expenditure
Final Contract Value R 100 000 000
CPG (TE) Value R 30 000 000
Timeline 2021/2022 2021/2022 2021/2022 2021/2022 Total
Project Expenditure R 20 000 000 R 30 000 000 R 30 000 000 R 20 000 000 R 100 000 000
Work Packages
R 6 000 000 R 9 000 000 R 9 000 000 R 6 000 000 R 30 000 000
(CPG %) Expenditure
Cumulative % Spend 20% 50% 80% 100%
Cumulative Amount
R 6 000 000 R 6 000 000 R 6 000 000 R 6 000 000 R 6 000 000
Spend
Package 1 R 2 000 000
Package 2 R 2 000 000
Package 3 R 2 000 000
Total R 6 000 000 R R R R
3.5 Targeted Enterprises Procurement Program
Table 4: Example: Targeted Enterprise Procurement program

Item Activity Name Duration (Days) Start Finish
3.6 Procedures for Targeted Enterprises Sub-contracting (As Per Section D1000 of the
Specifications)
3.6.1 Tender Preparation
3.6.1.1 Compilation of TE Work Packages
3.6.1.2 Establishment of a Help Desk
3.6.1.3 Market Analysis and Resources and Skills Audit
3.6.1.4 Compilation of Tender Documents
3.6.2 Tender Process
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3.6.2.1 Advertising of Works Packages
3.6.2.2 Tender Briefing Sessions
3.6.2.3 Minimum Tender Submission Documents
3.6.2.4 Tender Closure and Opening of Tenders
3.6.3 Tender Evaluation
3.6.3.1 Eligibility
3.6.3.2 Functionality
3.6.3.3 Price and Preference
3.6.3.4 Compliance Check
3.6.4 Appointment of Successful Targeted Enterprise
3.6.4.1 Price and Rates Discussion
3.6.4.2 Sub-contract Agreement
4. TARGETED LABOUR
4.1 Appointment of Targeted Labour
5. TRAINING DEVELOPMENT AND IMPLEMENTATION PLAN
5.1 General Overview
5.2 Purpose of the Training Interventions
5.3 Proposed Training for Targeted Enterprises and Targeted Labour
The table below depicts the proposed training for the Targeted Enterprises.
Table 5: Proposed Targeted Enterprise Training

Training Summary
Course Facilitator No. of Duration of Training
No. Start Date Comments
Content or Mentor Participants the Course Type
1
2
3
4
5
Etc.
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The table below depicts the proposed training for the Targeted Labour.
Table 6: Proposed Targeted Labour Training

Training Summary
Course Facilitator No. of Duration of Training
No. Start Date Comments
Content or Mentor Participants the Course Type
1
2
3
4
5
Etc.
5.4 Training Methodology
5.5 Selection of Participants
5.6 Targeted Participants
5.7 Training Materials
5.8 Training Times
5.9 Training Implementation Plan
5.10 Supporting Documents
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ANNEXURE X2
PROJECT LIAISON COMMITTEE AND PROJECT LIAISON OFFICER FORMS
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FORM A1: PROJECT LIAISON COMMITTEE – MEMBER NOMINATION FORM
Notes to Nominators and Nominees:
a) General Principles of Membership:

i) Membership is open to any person residing within the boundaries of the Project Area and that
are duly nominated by their constituency.
ii) Persons nominated as co-opted members do not necessarily have to reside within the
boundaries of the Project Area (see explanation in c) below).
iii) The nomination process will be conducted in consultation with the Local Municipalities within
the Project Area.
b) Nominations for Membership

i) Nominators will submit this prescribed nomination form and include the following information:
a. Name of the nominee,
b. Name of the proposer and five (5) seconders,
c. Residential address of the nominee,
d. Constituency whom the nominee will represent, and
e. Acceptance of nomination by the nominee.
c) Co-opted Members
i) Co-opted members are members that the PLC chooses to add in addition to PLC members
selected through the representative nomination process.
ii) Co-opted members may include a PLC member from the RRM PLC within the Project Area,
Councillors, and specialists such as environmental specialists, etc.
iii) Co-opted members will have limited participation rights in PLC meetings, will not have voting
rights and will not receive any seating allowance for participating in the PLC meeting.
d) Duration of Membership
i) The duration of a nominee’s membership of the PLC will depend on the duration of the project
or the duration of the PLC, whichever occurs first.
ii) A nominee’s membership will end with immediate effect in terms of the Rules of Engagement
for PLC members.
1. Details of individual or organisation making the nomination:
I, ……………………………………………, representing …………………………………………………
hereby nominate …………………………………………………………………………………………….
to be a member of the PLC for Project …………………………………………………………………….
…………………………………………………………………………………………………………………
Signature ……………………………………………………………. Date ………………………………..
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2. Details of the seconders (individuals supporting the nomination):
Name Surname Organisation Signature
3. Details of the individual accepting the nomination (nominee):
Name and Surname
Organisation
Residential Address
Ward Number
Municipality
I, ……………………………………………, I.D. number …………………………………………………
hereby accept the nomination to be a member of the PLC for Project ………………………………….
…………………………………………………………………………………………………………………
I further accept to be bound by the rules, responsibilities and duties prescribed for the Project
Liaison Committee Members and the Project Liaison Officers and will always act in good faith.
Signature ……………………………………………………………. Date ………………………………..
Witnesses:
Name and Surname ……………………………………………….. Signature …………………………..
Name and Surname ……………………………………………….. Signature …………………………..
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FORM A2: PROJECT LIAISON COMMITTEE – RULES, RESPONSIBILITIES AND DUTIES

(Derived from D1004.03)
The PLC is the official communication channel through which SANRAL, the Engineer, Contractor and
project Stakeholders and affected Communities communicates on project matters. This platform is also
used to communicate the impact that the project has or may have on project Stakeholders and the
affected Communities. This part of Section D of the Specifications describes the general processes
pertaining to the PLC, as well as its role and responsibilities.
1. Establishment of the PLC
The PLC will be established prior to commencement of the Contract or as soon as possible by
SANRAL. The PLC consists of SANRAL, the Engineer, Contractor and representatives of project
Stakeholders and affected Communities. To ensure that all relevant Stakeholders are
represented in the PLC, SANRAL did, or will, consult with the Executive Mayor’s office, as well
as with the LED Department of the Local Municipalities in the Project Area. Once the PLC has
been established, the Employer’s further Stakeholder engagement activities shall not prevent the
Contractor from continuing with construction.
Typical Stakeholder representation on the PLC may include:
a) A PLC member from the relevant RRM PLC.

b) Local Municipality LED Office.
c) Traditional leadership representation.
d) Forums representing people with disabilities.
e) Forums representing women.
f) Forums representing youth.
g) Forums representing business sector.
h) Forums representing transport sector.
i) Any other Stakeholder forum/organisation recognised by SANRAL and the Local
Municipality’s LED Office.
Every forum/organisation/constituency may have one (1) representative on the PLC, which
representation will be confirmed by a duly signed nomination form.
It should be noted that the PLC is not a political platform. While Councillors may be invited to
some PLC meetings, they may not be PLC members and hence, will not have voting rights when
attending a PLC meeting.
2. Seating Allowance for PLC Members
PLC membership is voluntary and PLC members will not be renumerated for any time spent or
work done associated with representing their constituency on the PLC.
Provision has been made in the Contract for a seating allowance (stipend) to PLC members for
actual costs incurred in executing their PLC duties (other than time or work related). The
Contractor will determine and table to the PLC a realistic seating allowance which will be
substantiated by an outline of the anticipated actual costs envisaged to be incurred by PLC
members.
The seating allowance will be increased annually based on the CPI figure contained in Table B2
of Statistical Release P0141 by StatsSA.
3. Induction of the PLC
SANRAL will conduct an induction meeting with the PLC to acquaint PLC members with the
following information:
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a) SANRAL’s Horizon 2030 Strategy.

b) SANRAL’s Fourteen Point Plan.
c) The role and responsibilities of PLC members.
d) SANRAL’s Transformation Policy.
e) How the Transformation Policy impacts on SMMEs.
f) Relevant details of the Contract, e.g.
i) Start and end dates
ii) Important milestones
iii) CPG targets
iv) Envisaged Targeted Enterprise packages
v) Envisaged work for other SMMEs (non-CPG).
4. Rules of Engagement for the PLC
In the execution of their duties, members of the PLC shall adhere to the undertakings listed below
and the Contractor shall inform the Engineer of any transgression of these undertakings.
a) General Matters and Membership
i) A PLC member may not be a politically elected representative, and political party
representation will not be allowed in the PLC.
ii) Ward Councillors may interact with the project team through the Mayor’s Office.
iii) If required, and in consultation with SANRAL, a Political Steering Committee (PSC)
may be established to address political matters. A PSC will only be established
where the Project Area traverse over more than one municipal area.
b) Term of Office for the PLC
i) The duration of PLC members’ participating in the PLC (term of office) shall depend
on the duration of the project.
ii) If SANRAL finds the performance of a PLC member to be below expectation or their
conduct to be unacceptable, the affected member will be discharged from their
obligations and a new nomination process shall commence.
c) Targeted Enterprise and Targeted Labour
PLC members shall:
i) ensure that they, or companies in which they hold equity, will not tender on the
Contract for any work or sub-contract that may be issued. Should they tender, this
will be treated as a conflict of interest and the tender proposal submitted will not be
evaluated.
ii) not have private or business interests in any of the sub-contract tenders tabled to
the PLC or considered in this Contract.
iii) shall recuse themselves from discussions that deal with a sub-contract tender if any
other member is of the opinion that a member’s participation in deliberations, which
is rightly or wrongly construe as improper or irregular, may lead to the award of a
sub-contract to a tenderer known to the member or to the member itself.
iv) recuse themselves from the operations of the PLC following a situation as described
in paragraphs ii) above and shall cease to be a PLC member for this Contract.
v) during the tender and tender evaluation processes, neither deliberately favoured nor
prejudiced a person or tenderer, as intended, or contemplated in treasury
Regulation 16, A8.3 (a), (b) & (c).
vi) ensure that no conflict of interest arises from members’ involvement in the PLC and
potential involvement in targeted labour recruitment and/or targeted enterprises
procurement and/or any other supplier/sub-contractor/service provider procurement
or involvement in the contract.
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d) Confidentiality
i) PLC members shall accept that all information, documentation, and decisions
regarding any matter serving before the PLC are confidential and undertake not to
communicate decisions or discussions of PLC meetings to external or internal
parties unless so directed and approved by the Project Manager.
ii) Information for public dissemination shall be clearly indicated by the committee to
ensure that sensitive information is only disseminated to the correct audience.
e) Removal from Office
i) PLC members who violate the provisions of these Rules of Engagement for PLCs
will be removed from their role as a PLC member at the sole discretion of SANRAL.
ii) SANRAL reserves the right to recover any costs from PLC members whose actions
can be regarded as detrimental to SANRAL or to the execution of the project.
iii) SANRAL also reserves the right to recommend criminal prosecution if the offence
warrants such action.
iv) SANRAL reserves the right to dissolve the entire PLC should it believes that such
an action is in its best interest, or that of the project. SANRAL will not be obliged to
reconstitute the PLC if such a dissolution occurs.
5. Responsibilities and Duties of the PLC
The PLC will execute specific duties during the design and construction phases of the project.
Some of the PLC’s duties during the design and construction stages overlap and hence, for
completeness, a description of the PLC’s duties in both project stages is provided here.
The PLC will execute the following duties:
a) Project Design Stage
i) Meet as often as required to discuss and resolve the project’s design stage matters
which are of interest or concern to the parties to the PLC.
ii) Peruse the Project Liaison Committee rules, responsibilities and duties outlined in
this Form and agree on the rules, responsibilities, and duties of, and procedures to
be followed by, the PLC to fulfil its duties.
Note: The principles outlined in this Form shall not be amended, but duties and
procedures may be altered to be project specific and to improve the functionality of
the PLC.
iii) Act in accordance with the agreed terms of reference for the PLC.
iv) Inform SANRAL of any training that project Stakeholder and affected Community
representatives of the PLC require to execute their duties.
v) Assist the Engineer to source suitable candidates, based on SANRAL’s qualifying
criteria, for the position of PLO.
vi) Observe and verify that the qualifying criteria and procedures applied by the
Engineer to select and employ the PLO were executed in a fair and transparent
manner and were within the prescripts of the relevant labour legislation and
regulations.
vii) Assist the Engineer to identify the project’s Target and Project Area(s) from which
Targeted Labour and Targeted Enterprises could be employed and sub-contracted,
respectively.
viii) Assist the Engineer to identify the project’s Target Groups for inclusion in the Tender
Documents and agree to and support the identified Target Groups.
b) Project Construction Stage

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i) Meet formally prior to SANRAL’s monthly site meeting, or as may be required, to

discuss and resolve project matters which are of interest or concern to the parties
to the PLC.
ii) Assist the Contractor to establish the selection criteria and process to employ
Targeted Labour
iii) Assist the Contractor to identify the eligibility, functionality, preference, and
compliance criteria to select and sub-contract Targeted Enterprises.
iv) Agree to and support the Databases compiled by the PLO and the Contractor from
which Targeted Labour will be selected and employed and Targeted Enterprises will
be sub-contracted, respectively.
v) Verify that the criteria and methodologies applied by the Contractor to select and
employ Targeted Labour and sub-contract Targeted Enterprises are executed in a
fair and transparent manner and are within Government legislation and regulations
and SANRAL’s Policies.
vi) Verify that the conditions of employment and the conditions of sub-contracting, in
the employment of Targeted Labour and sub-contracting of Targeted Enterprises
are applied in a fair and transparent manner and according to SANRAL’s
employment and sub-contracting requirements.
vii) Make recommendations to the Contractor on the training needs, eligibility criteria
and selection criteria for the provision of training to Targeted Labour, Targeted
Enterprises, Designated Groups, project Stakeholders and the affected
Communities.
viii) Verify that training and skills development programmes, which the Contractor
committed to, are implemented, and executed as approved and intended.
ix) Inform the entities whom they represent of any project matters which the respective
party to the PLC wishes to communicate with each other.
x) Inform the entities whom they represent of any project matters that are impacting or
may impact, either positively or negatively, on the respective parties to the PLC.
xi) Inform the Contractor of Stakeholder and/or Community requests and/or needs,
which could possibly be addressed within the project’s Scope of Work.
xii) Inform the SANRAL, the Engineer and Contractor of any road safety concerns within
the Project Area(s) and advise them of possible mitigating measures and/or road
safety programs that will be most suitable for acceptance by the affected
Communities to promote road safety.
xiii) Agree on a dispute resolution mechanism to resolve any disputes that may arise
between the parties to the PLC.
xiv) Assist parties to the PLC to liaise with their respective entities to resolve any
disputes amongst the parties which may occur due to the project.
6. PLC Meetings
a) Frequency
i) Meetings will be conducted monthly or as required by the Stakeholders or the project
matters.
b) Notice of meetings
i) The notice of the PLC meeting shall be given at least seven (7) calendar days prior
to the meeting date.
ii) Where meetings have been diarised over a period by the PLC, it shall be the duty
of each PLC member to ensure his/her attendance on the set dates.
iii) Where a PLC member has missed any meeting, he/she bears the onus of
establishing the date and venue of the next meeting.
c) Venue
i) The venue for PLC meetings shall be the project site office or any other venue
agreed to by the members of the PLC and approved by SANRAL.
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ii) During the Covid 19 lockdown, or any other lockdown as announced by government,
the meetings shall be held on an online platform such as WhatsApp, Teams, Zoom
or similar.
d) Agenda
i) An agenda shall be made available or displayed to all participants at the
commencement of such meetings or the minutes of the previous meeting will serve
as the agenda of such meetings.
ii) The agenda shall not be amended without prior approval from SANRAL.
e) Chairperson
i) PLC meetings shall be chaired by SANRAL which will typically be the SANRAL’s
Project Manager, or a SANRAL staff member with decision--making delegation, or
the Engineer.
ii) The Chairperson shall:
a. chair all meetings of the PLC,
b. co-ordinate all the activities of PLC,
c. ensure that members are fulfilling their tasks as assigned by the PLC,
d. see to the execution of decisions taken by the PLC,
e. ensure the validity of members’ claim for allowance,
f. ensure compliance of all activities of the PLC with current rules, law and
general SANRAL policy, and
g. be a co-signatory to all official documents of the PLC.
f) Secretariate
i) The Engineer’s staff shall provide a secretarial service to take minutes of PLC
meetings.
ii) Secretarial support other than taking minutes at PLC meetings shall be provided by
the PLO.
g) Quorum
i) The quorum for PLC meetings shall be constituted by 50%+1 ratio excluding co-
opted members.
h) Apologies and Non-attendance

i) Apologies shall be in writing except in emergency where the member apologising
cannot communicate the apology in writing.
ii) Apologies may be sent through any media agreed to prior by the PLC for example
through SMS or WhatsApp messaging or similar application.
iii) The organization, represented by a member who fails to attend three (3) consecutive
meetings without an apology, will be informed in writing and asked to nominate a
replacement member.
i) Language
i) The meetings will be conducted in English to enable all participants at the meeting
to understand the discussions of the meeting.
ii) However, care and consideration must be given to provide non-English speakers an
opportunity to participate. Therefore, where desirable, any of the 11 official
languages maybe be used to conduct the meeting. If another language other than
English is used, the minutes of the meeting will need to be transcribed, translated,
and recorded in English.
j) Other
i) The PMT shall provide a finger lunch for PLC members at PLC meetings.
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7. Amendments or Additions
The rules, responsibilities, and duties for PLC members in this Form are adopted and will be in force
with effect from this ……………………. day of ……………………………………………………... 20………
Name and Surname Signature Date
Accepted for SANRAL
Accepted for Engineer
Accepted for Contractor
Accepted for PLC
Accepted by PLC
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FORM A3: CHECKLIST – PROJECT LIAISON COMMITTEE – MEMBER APPOINTMENT
Notes:
a) The checklist consists of several sections. Only print the relevant sections.
b) Indicate what has been completed and sign off at the end.
c) While other individuals can assist in this process, the Project Manager (PM) remains accountable
for all deliverables.
d) All forms/records to be kept by the PM and availed to line management upon request.
Complete
Form Explanatory Note for
Item Responsibility (Yes/No or
No. Compliance Check
N/A)
A3.1 PLC Member Appointment:
Form must indicate

Stakeholder
the nominee and the
Coordinator (SC)
a) individual or
/Contracts
organisation making
Engineer (CE)
the nomination.
Forms circulated with
Nomination forms
1 the assistance of
completed. b) SC/CE
Municipality's LED
office.
All completed forms
collected from the
c) SC/CE
Municipality's LED
office.
Confirm the SC/Project
a) membership of the Management
PLC. Team (PMT)
Where there are
multiple entries, the
team can select the
b) SC/PMT
member with the
highest number of
nominations.
Where there is an
equal number of
nominations, the team
will request the
2 Members selected.
c) nominating SC/PMT
organisation to
confirm the member
who should join the
PLC.
The last alternative is
to allow for a snap
d) SC/PMT
election in a
community meeting.
Communicate the
PLC membership to
e) SC/PMT
the affected
stakeholders.
Formal appointment Ensure that the PLC SC/Project
3 a)
to PLC signed. membership is Manager (PM)
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Complete
N/A)
confirmed in line with
Form A3.2
All members must be
provided with a copy
of the PLC Duties and
Responsibilities
(extract from
D1004.03). The
b) signed duties and SC/PMT
responsibilities must
be scanned and
shared with all
members. The PM
retains a copy for
future reference.
Document must be
signed again when the
membership changes.
The PM must add the
c) version of the PM
document to ensure
that the various
versions can be
tracked.
Stakeholder Coordinator:
Name Sign Date
Project Manager:
Name Sign Date
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FORM A3.2: PROJECT LIAISON COMMITTEE – MEMBER LIST
No. Sector/Entity/Forum Name and Surname Signature
10
11
12
13
14
15
16
17
18
19
20
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FORM A4: CHECKLIST – PROJECT LIAISON OFFICER – APPOINTMENT
Notes:
a) The checklist consists of several sections. Only print relevant sections.

Complete
N/A)
A4 PLO Appointment:
a) Job profile prepared. CE/PMT
Post advertised in Post advertised in the

1 b) CE/PMT
local media. media.
Copy of advert kept on
c) CE/PMT
file.
All CVs received
a) CE/PMT
collated.
Shortlisting Shortlisting done by
2 b) CE/PMT
completed. the PMT.
PLC provided with the
c) CE/PMT
final shortlist.
a) Candidates invited. CE/PMT
Interview grid
b) CE/PMT
prepared.
The PLC can
nominate a member to
sit on the interview
3 Interviews held. c) panel as an observer CE/PMT
to ensure
transparency in the
process.
Formal interviews
d) CE/PMT
carried out.
Interview scores
e) CE/PMT
collated.
PLO appointment
a) CE
letter issued.
Formal appointment PLO employment
4 b) CE
of PLO. contract signed.
PLO performance
c) CE
agreement signed.
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Complete
N/A)
Name Sign Date
Project Manager:
Name Sign Date
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FORM A5: CHECKLIST – PROJECT LIAISON COMMITTEE – MEETINGS
Notes:
a) The checklist consists of several sections. Only print relevant sections.

Complete
N/A)
A5 PLC Meeting Checklist:
All members of the

PLC to sign the
a) PLO/PM
attendance register in
ink.
Attendance register Where meetings are
1
completed. on an online platform
such as MS Teams,
b) PLO/PM
the attendance list
must be downloaded
from that platform.
The quorum for PLC
meetings shall be
2 Quorum met. a) constituted by 50% + PLO/PM
1 ratio excluding co-
opted members.
3 Agenda approved. a) PM
Minutes must be
prepared, signed off
Previous minutes
4 a) and dated by the PLO/PM
approved.
Chairperson at the
following meeting.
Minutes and
5 resolutions a) RE/PLO
captured.
All members of the
Declaration of
6 a) PLC to sign the DoL in PLO/PM
interest completed.
ink.
Name Sign Date
Project Manager:
Name Sign Date
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FORM A6: PROJECT LIAISON COMMITTEE – DECLARATION OF INTEREST
Notes:
a) This declaration of interest shall be signed by all attendees at every PLC meeting.
THE SOUTH AFRICAN NATIONAL ROADS ANGECY LTD
PROJECT LIAISON COMMITTEE - DECLARATION OF INTEREST

We, as members of the PLC and persons present in the meeting, hereby solemnly swear and declare
that we have no private or business interest or stake in any of the Work Packages or Tender Reports
tabled here today or to be discussed in this project.
If one of us is of the opinion/view that some people may, rightly or wrongly construe as
improper/irregular, his/her participation/involvement in deliberations that may lead to the award of a
tender to a tenderer known to him/her, that person shall then recuse himself/herself from the
proceedings/discussions that deal with that Work Package or Tender Report. Additionally, such a
member shall recuse himself/herself from the operations of this PLC going forward and shall cease
to be a PLC member for this project.
We certify that we, during the process neither deliberately favoured nor prejudiced and person or
tenderer, as intended or contemplated in treasury Regulation 16, A8.3 (a), (b) & (c).
We further accept that all information, documentation, and decisions regarding any matter serving
before the Committee are confidential. We, therefore, undertake not to communicate
decisions/discussions of the meeting to external or internal parties unless so directed and approved
by the Project Manager.
Members Signature Date
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FORM B: CHECKLIST – TARGETED ENTERPRISE TENDERING PROCESS
Complete Source Document

Form
Item Explanatory Note for Compliance Check Responsibility (Yes/No
No.
or N/A)
B1 Target Area:
Target Area for Targeted Labour

and Targeted Enterprises
a) PLO/PM
identified and disseminated to the
1 Target Area Defined by PLC. PLC.
Target Groups identified and
b) PLO/PM
disseminated to the PLC.
Database criteria setup and
a) PLO/PM
Database of Contractors and disseminated to the PLC.
2
Suppliers. Signed off database criteria
b) PLO/PM
handed over to PLC.
B2 Tender Phase:
a) Copy of advert on file. Contractor
Proof of publication in selected

1 Tender Advert. b) Contractor
local publications.
Proof of publication on SANRAL
c) Contractor
website.
Copy of specification available on
2 Tender Document. a) file, copy of the Tender CD, or Contractor
printed.
Attendance register signed by all
Clarification Meeting
3 a) attendees of the clarification Contractor
Attendance register.
meeting
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Form
No.
or N/A)
Minutes must be prepared, signed
off and dated by the Chairperson
4 Clarification Meeting Minutes. a) Contractor
within 14 days of the date of the
meeting
Clarification Meeting
5 a) Copy of the presentation on file. Contractor
Presentation.
All addenda issued must be
a) Contractor
recorded on the file.
6 Addenda Proof (e-mail) of those persons
b) that the addenda was sent to (if Contractor
applicable).
Record the names of persons /
Register of tenders issued (if
7 a) companies that collected tender Contractor
applicable).
documents (website/by hand).
B3 Tender Opening:
Record the names of persons /

1 Register of Tenders Received. a) companies that submitted tender Contractor
offers.
Tender Opening, Declaration of Declaration by SANRAL officials
2 a) Contractor
Interest. at the opening.
Tender Opening, Attendance Record the names of persons
3 a) Contractor
Register. present at the opening of tenders.
Register for late tenders Record names and time of late
4 a) Contractor
received. tenders received.
Register of the opening of the
5 Tender Opening, Opening Data. a) Technical Offer on the Tender Contractor
Data sheet.
B4 Tender Evaluation:
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Form
No.
or N/A)
Confirmation of issue of letters of
a) Contractor
extension of validity period.
1 Extension of validity period. Confirmation of response on
b) extension of validity period by the Contractor
bidders.
All members of the Bid Evaluation
2 Declaration of Interest. a) Contractor
Committee to sign the DoI in ink.
All members of the BEC to sign
3 Attendance Register. a) Contractor
the attendance register in ink.
4 Minutes a) Contractor
meeting.
Report signed by the Chairperson
of the BEC detailing deliberations
5 Signed evaluation report. a) Contractor
and discussions of the BEC
meeting.
a) Scoring sheet detailing the scores Contractor
6 PPPFA Scoring sheet of all tenders evaluated as per the
PPPFA.
Printout of the CSD Report for
7 CSD Compliance Report. a) compliance verification for the Contractor
successful tenderer.
a) Verification of active status. Contractor

CIDB grade confirmation (if
8
applicable).
b) JV calculator for Joint Ventures. Contractor
B-BBEE Certificate of winning

9 B-BBEE Certificate. a) tenderer on file for verification of Contractor
preference points.
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Form
No.
or N/A)
Verification that the winning
SANRAL List of Restricted
10 a) tenderer is not restricted from Contractor
Bidders.
doing business with SANRAL.
Clarification correspondence All correspondence relating to
11 after tender closing (individual a) RFT correction of arithmetic Contractor
tenderers or all). errors/balancing of rates etc.
Report detailing information from
tender phase to evaluation phase,
Report for the award of the
12 a) and a recommendation with Contractor
contract.
motivation for the approval of the
winning tenderer.
Receive high level reports and
ensure transparency in the Report
appointment of Targeted not to be
13 Review Report. a) PLC /PLO/PM
Enterprises. The reports must supplied
exclude sensitive evaluation to PLC*.
information.
B5 Award of Contract:
Project Bid Adjudication

All members of the BAC to sign
1 BAC Declaration of Interest. a) Committee Secretariat
the DoI in ink.
(PBAC)
All members of the BAC to sign
2 BAC Attendance Register. a) PBAC Secretariat
the attendance register in ink.
3 BAC Minutes. a) PBAC Secretariat
meeting.
EDMS#6462666v3 C-87
FORM C: CHECKLIST – TARGETED ENTERPRISE CONTRACT ADMINISTRATION

Form Item
Explanatory Note for Compliance Check Responsibility (Yes/No
No.
or N/A)
C Contract Administration Phase
Letter of award / Letter of Copy of letter issued to the

1 a) Contractor
Acceptance. successful bidder.
Standard letter informing
Letters to unsuccessful
2 a) unsuccessful bidders of the tender Contractor
bidder(s).
outcome with proof of emails.
Publication of award, within 7
Proof of publication on SANRAL Contractor / PLO / Project
3 working days from date of a)
website. Manager
award.
4 Contract document. a) Original signed contract on file. End-User / Contractor
5 Closure of contract. a) Copy of close-out report (SIPDM). End-User / Contractor
Performance report (for Copy of contractor performance

6 a) End-User / Contractor
Engineering contracts). report.
Project Manager:
Name Sign Date
EDMS#6462666v3 C-88
ANNEXURE X3 – PROFORMA SUB-CONTRACT DOCUMENT FOR TARGETED ENTERPRISES
https://docs.nra.co.za/otcs/cs.exe/link/19334307
EDMS#6462666v3
C-89

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SOUTH AFRICAN NATIONAL ROADS AGENCY SOC LIMITED

CONTRACT SANRAL ………………………………………………………………………………………….. (insert contract number)

SECTION D: STAKEHOLDER AND COMMUNITY LIAISON AND TARGETED LABOUR AND

PROFORMA: GENERIC D1000

VERSION 3 (November 2022)

EDMS#19991503v3 – 01 November 2022

CHANGES TO THE DOCUMENT

EDMS#19991503v3 – 01 November 2022

D1010.05 h) Amend paragraph 2.

EDMS#19991503v3 – 01 November 2022

Notes to Proforma Compilers:

EDMS#19991503v3 – 01 November 2022

SECTION D: STAKEHOLDER AND COMMUNITY LIAISON AND TARGETED LABOUR AND

EDMS#19991503v3 – 01 November 2022

Section D of the Specifications describes the structured engagement with project

EDMS#19991503v3 – 01 November 2022

D1002 DEFINITIONS AND APPLICABLE LEGISLATION

Notes to Proforma Compilers:

Business coaching establishes an atmosphere of mutual trust, respect,

A process by which the Employer implements Government’s objectives by setting

d) Contract Participation Goal (CPG)2

i) In the case of Targeted Enterprises, including manufacturers and suppliers,

EDMS#19991503v3 – 01 November 2022

principal Contractor contracts to engage Targeted Enterprises in the

e) Contract Participation Goal Plan (CPG Plan)

f) Contract Participation Performance (CPP)

The measure of the Contractor’s progress in achieving the CPG.

g) Contract Skills Development Goals (CSDG)3

The number of hours or head count of skills development opportunities that a

i) completion in the case of a professional service contract,

Unless otherwise permissible in terms of procurement regulations or the PPPFA,

i) black designated groups,

A Domestic Sub-contractor is one in whose selection and appointment the Employer

EDMS#19991503v3 – 01 November 2022

j) Final Contract Value

Final Contract Value as defined under Section D1003.04 - Contract Participation

i) who are employed by the Contractor or a Sub-contractor in the performance

Mentoring is a professional relationship in which an experienced businessperson

Based on market research and/or requisite resources availability, Project Areas

p) Project Liaison Committee (PLC)5

EDMS#19991503v3 – 01 November 2022

The Committee that represents the Employer, Engineer, Contractor, project

q) Project Liaison Officer (PLO)6

Any Stakeholder listed in the Employer’s Communication Policy who is affected by

i) Relevant Provincial departments.

An entity appointed by the Contractor to execute a portion of the Works as defined

i) one or more Provinces,

EDMS#19991503v3 – 01 November 2022

A Targeted Enterprise is an entity to which the Contractor sub-contracts a

i) an EME or QSE which is at least 51% owned by black people; or

In addition, Targeted Enterprises must be:

a. CIDB registered where applicable,

Targeted Enterprises are also Sub-contractors as defined in the Conditions of

v) Targeted Enterprise Construction Manager (TE Construction Manager)

The full-time, dedicated staff member or sub-service provider appointed by the

w) Targeted Enterprise Monitor

The Targeted Enterprise Monitor is an independent service provider, or individual,

x) Targeted Enterprise Procurement Coordinator (TE Procurement Coordinator)

The staff member or sub-service provider appointed by the Contractor to facilitate