2T09 Interdepartmental Services Agreement

Explanatory Note: This is an interdepartmental service delivery agreement within government between a Client Department (e.g. Education) and Public Works for Public Works to implement infrastructure projects on behalf of the client department. It is different from a service delivery agreement between a Client Department and an implementing agent (such as the IDT).

XinsertXPROVINCIAL GOVERNMENT

INTERDEPARTMENTAL SERVICE LEVEL AGREEMENT

BETWEEN

THE DEPARTMENTS OF ……………………….

“CLIENT DEPARTMENT”

AND

PUBLIC WORKS

“PDPW”

ENTERED INTO BY …………………………….

IN HIS/HER CAPACITY AS

ACCOUNTING OFFICER OF DEPARTMENT OF ………………..

AND

……………………………

IN HIS/HER CAPACITY AS

ACCOUNTING OFFICER OF DEPARTMENT OFPUBLIC WORKS

1.PREAMBLE

1.1This service delivery agreement (SDA) will govern the relationship between the Provincial Department of Public Works (PDPW) and the Client Department with regard to the provision of accommodation through construction, maintenance works, acquisition of sites and buildings, operation of facilities, installations and installed equipment as well as leasing which PDPW manages as a service for The Client Department.

This agreement excludes programmes in which other programme implementing agents (PIAs) have been engaged. In these cases Public Workswill also provide a supportive role to the Client Department, including provision of technical advise and support services such as quality control. Such services will be defined on a case by case basis.

1.2The SDA is necessary to:

  • Clearly spell out the roles and responsibilities of each Department.
  • Provide service delivery standards, which must be met by PDPW.
  • Set standards of Client behaviour that must be met by the Client Department
  • Set standards of training, qualifications and experience of officials undertaking responsibilities on behalf of Client Department pertaining to the management, control and operation of buildings, facilities, installed equipment and systems provided by PDPW to Client Department for the pursuing of its statutory mandate and to govern the standard of use and operation thereof which will have to remain within relevant legislation procedure and criteria.
  • Determine which of the specialised facilities, installed equipment and systems provided by PDPW (such as sewage effluent purification works and steam generating boilers, or any other equipment) will be operated by Clients’ personnel or appointed contractors under the control of PDPW.
  • To agree on key milestones to be met by both Client and PDPW.

2.ROLES AND RESPONSIBILITIES

The general roles and responsibilities for each of the two Departments are set out below:

2.1Roles and Responsibilities of Client Department

Capital, Maintenance and Leasing

The Client Department shall:

2.1.1Involve PDPW in its strategic planning for infrastructure.

2.1.2Compile user Asset Management Plansand related Infrastructure Plans as required by the PFMA assisted by inputs from PDPW, with regard to accommodation requirements and utilisation, in accordance with the approved asset management policy guideline document.

2.1.3Prioritise Capital and Maintenance Works by means of an annual Infrastructure Plan i.e. building programme), in consultation with PDPW, aligned to the agreed Asset Management Plan.

2.1.4Develop needs assessment for Capital Works, Maintenance Works and Leasing (certified by its Accounting Officer) with the advice of PDPW aligned to the following planning schedule:

  • Submission of Infrastructure Plans defining needs for Capital projects and major refurbishments – 2 (two) years in advance after the site has been cleared for development.
  • Submission for Planned Maintenance projects – 1 (one) year in advance.
  • Submission of Leasing needs – 1 (one) year in advance.
  • Prioritisation of projects for implementation submitted between April and June in the preceding financial year.

2.1.5Budget for Capital Works, including cost of any private sector, professional services, which might be necessary for the implementation of the projects.

2.1.6Compile an annual Infrastructure Plan (including a building programme) that will specify exactly which Capital Works, Planned Maintenance and Leasing projects have to be implemented within the financial year and submit to the Accounting Officer of PDPW or his/her delegate according to the following timeframes in the preceding financial year:

  1. Capital Projects- April to June
  2. Maintenance Works- April to June
  3. Leasing- September

2.1.6Finalise the budget with Treasury for the execution of projects in the Infrastructure Plan and shall make those funds available to PDPW. The Accounting Officer of the CLientr Department or a delegated person, must sign off the Infrastructure Plan and any necessary changes thereto in consultation with PDPW.

2.1.8Send representatives to site meetings, particularly when specifically requested in writing by PDPW.

2.1.9Report, in writing to the Accounting Officer of PDPW or his/her delegate, defects that may require maintenance or repair work.

2.1.10Budget for all major maintenance activities.

2.1.11Carry-out routine day-to-day maintenance of under R30 000,00 as per the attached Annexure A.

The Client Department shall carry-out routine day-to-day maintenance referred to herein subject to:

(i)the relevant maintenance is carried out in accordance with the standards set by PDPW by way of standard specifications, the National Building Regulations (SABS 0400), Fire Regulations of the relevant local authorities and the Occupational Health and Safety Act, 1993 (Act 85 of 1993) (hereinafter referred to as “OHSA, 1993”) and its Regulations and Incorporated Standards; and,

(ii)the relevant maintenance be supported by appropriate quality control measures.

2.1.12Approve and fund or reject variation orders within 5 (five) working days of submission to the Client Department in writing. In the absence of such approval or rejection, PDPW will be authorised to make such decision on behalf of the Client Department.

2.1.13Effect all necessary liaison and agreements with local communities, prior to submission of its needs to PDPW.

2.1.14Approve the recommended project development proposals for each project specified within the Infrastructure Planwithin 14 (fourteen) calendar days from it being officially presented to the Client Department. Failing which PDPW will be authorised to make the decision on behalf of the Client Department

2.1.15The Client Department shall be present for first and final delivery of all projects executed by PDPW on behalf of the Client Department.

2.1.16Budget and prioritise leased accommodation, according to the MTEF cycle, in consultation with PDPW.

2.1.17Comply to tenant contractual obligations as per office leases, land leases and lease agreements for official quarters.

2.1.18Timeously inform PDPW, in writing, of the intention to vacate State accommodation or termination of lease agreements. This notice must be accompanied by its certified needs assessment:

  • State-owned: 6 (six) months.
  • Leased: 3 (three) months prior to the notice period stipulated in the termination clause of the contract.

2.1.19Z59 claim will be instituted should the Client Department pre-maturely vacate leased buildings or deliberately or negligently cause damage to property or occupy area space in the lease buildings in excess of that leased.

2.1.20Manage and control the usage of services and resources (mainly water, electrical power and fuel pertaining to the operation of the facilities and embedded systems of such facilities required for the operation of the Client Department in the facilities) in such a way that optimal usage is ensured, wastage is prevented and that the impact of the related operations on the environment is kept to within the limits set in relevant legislation and in line with the requirements of the PFMA.

General

2.1.21The Client Department will be responsible for cleaning and gardening services in facilities accommodated by the Client Department unless such services are specifically stipulated in the lease agreement to be the responsibility of a lessor to a leased building.

2.1.22As determined by Section 16 of the OHSA, 1993 the Accounting Officer of theClient Department bears the responsibility for the compliance by the Client Department with the provisions of that Act and its Regulations and Incorporated Standards, SABS 0400, or any other such acts in the executing of the processes, operations work and occupancy of the facilities provided by PDPW associated with the functions of the Client Department.

2.1.23In view of what has been stated in 2.1.22 above, the Client Department is obliged to ensure inter alia that:

(a)Health and Safety Committees are established per workplace and function as determined by the relevant legislation;

(b)First aid officials are appointed, trained and equipped;

(c)Fire safety officers are appointed and trained;

(d)Emergency evacuation plans are developed and approved by the Department of Labour and subsequently be exercised as may be required for it to be effective;

(e)That the facilities, sites and buildings are only used in accordance with the approved usages and applicable zoning;

(f)Storage of fuel and chemicals as well as laboratory operations only be undertaken in suitably designed, constructed and equipped areas;

(g)Occupational injuries and/or diseases attributable to the facilities not meeting legislation requirements, in addition to being reported to the Department of Labour, also simultaneously be reported to PDPW;

(h)Ensure that all officials undertaking responsibilities on behalf of the Client Department pertaining to the management, control and operation of buildings, facilities, installed equipment and systems provided by PDPW comply with the standards of training, qualifications and experience and that such officials follow the procedure set in the OHSA, 1993 and its Regulations and Incorporated Standards, SABS 0400, or any other such acts. and ensure that the relevant requirements of that Act and the relevant regulations as well as Chapter 3 Part 4 of the National Water Act, 1998, the Environmental Conservation Act, NEMA and such other relevant legislation which regulate the activities and operations referred to, are complied with during such management, control and operation of buildings, facilities, installed equipment and systems;

(i)Should at any point in time, it be detected that facilities, installed equipment and systems are, or has become non-compliant with the water conservation, pollution and environmental conservation and management legislation which may be or become current at that time the Client Department, to provide resources, mainly finances, to PDPW to remedy such non-compliant conditions.

2.1.24The Client Department shall indicate the need for which of the specialised facilities, installed equipment and systems provided by PDPW (such as sewage effluent purification works and steam generating boilers, and other such equipment) are to be operated by Clients’ personnel or appointed contractors under the control of PDPW.

2.2Roles and Responsibilities of PDPW

Submit inputs to the Client Department for inclusion in Asset Management Planand related Infrastructure Plan as required by the PFMA in accordance with the approved asset management policy guideline document, with regard to accommodation requirements and utilisation.

Capital and Maintenance

PDPW shall:

2.2.1On the basis of the annual Infrastructure Plan provided by the Client Department, PDPW shall prepare an Infrastructure Programme Implementation Plan (IPIP) in a format agreed with the Client Department which sets down how PDPW will manage the infrastructure programme on behalf of the Client Department. The IPIP shall be prepared and issued to the Client Department within two months of PDWP being issued with the Infrastructure Plan by the Client Department.

2.2.2Identify and undertake suitability and feasibility studies pertaining to availability of services, structural and topographical suitability and the legal clearance and acquisitions of sites before the commencement of any development.

2.2.3Provide the Client Department with technical advice and support to inform the needs assessment carried out by the Client Department.

2.2.4Provide the Client Department with technical advice to inform the prioritisation of works by the Client Department.

2.2.5Undertake investment analysis studies to select best options for new needs.

2.2.6Provide the Client Department with cost estimates of works, inclusive of life cycle costing as requested.

2.2.7Execute the work in terms of the properly authorised building programme priority list of the Client Department and/or any authorised changes in the priority list.

2.2.8Procure professional and building related contract services, in terms of prevailing procurement regulations, with regard to BEE appointments, contract adjudication, and any other relevant regulations, which has been drawn up to give effect to enabling legislation and strategies outlined in the:

(a)Public Finance Management Act, 1999 (Act 1 of 1999) (as amended).

(b)Preferential Procurement Policy Framework Act, 2000 (Act 5 of 2000).

(c)Preferential Procurement Regulations, 2001.

(d)Regulations in terms of the Public Finance Management Act, 1999: Framework for Supply Chain Management.

(e)Construction Industry Development Board (CIDB) Act 2000 (Act 38 of 2000) and its Regulations.

2.2.9Manage all projects from inception to completion including pre-design, design development, documentation, execution and defects liability period.

2.2.10Implement its policy for termination/cancellation (Annexure C), as part of this agreement for projects awarded by PDPW under delegations from the Tender Committee.

2.2.11Submit a monthly progress reports to the Accounting Officer of the Client Department or his/her delegate on or before the twentieth (20th) of each month for the previous month, with the provision of cash flow forecasts per project for the remainder of the financial year for each project. Such reports shall be in the form of Treasury’s Monitoring and Reporting Guidelines for Infrastructure Programmes and Projects

2.2.12Certify payment of consultants and contractors payment certificates.

2.2.13Prepare and certify final completion certificates in accordance with the terms and conditions of the contract.

2.2.14the Client Departmentis not to negotiate directly with the landlord with regard to alterations in leased buildings or any contractor for capital and maintenance projects.

2.2.15Be responsible for the execution of works in terms of the specification, through the contractors, including dealing with defects during the defect liability periods. PDPW undertakes to make good any unapproved deviations from approved specifications.

2.2.16Provide the Client Department with minimum maintenance standards for infrastructure and with schedules for the required planned routine and preventative maintenance.

2.2.17Advise the Client Department on the budgetary requirements for planned maintenance in the Client Department facilities.

2.2.18Recommend variation orders to the Client Department in terms of the contract, for approval prior to any work being done, and inform the Client Department of extension of contract period and any financial implications.

2.2.19Procure services of built environment consultants once an official request from the Client Department is received and the subsequent procurement instruction is issued to an executing unit within PDPW. The appointment follows the following timelines (depending on the category of site clearance and inclusive of processing of norm document and investment analysis):

  • If existing site clearance certificate is available: 8 (eight) –10 (ten) weeks
  • Extension of existing facilities if no certificate is available: 10 (ten) – 14 (fourteen) weeks
  • Clearance of existing state owned sites: 16 (sixteen) – 24 (twenty-four) weeks (should change in land use be necessary).
  • Acquisition and clearance of a private site: 40 (forty) weeks.
  • Acquisition and clearance if township establishment is required: 54 (fifty-four) weeks.

2.2.20Appoint contractors within 8 (eight) weeks of tender closing dates.

Leasing

PDPW shall:

2.2.21Procure suitable leased accommodation within 16 (sixteen) weeks depending on the availability of suitable facilities available for rent and occupation in the area indicated by the Client Department.

2.2.22Negotiate tenant installation to be completed within 8 (eight) weeks dependant on extent of requirements.

2.2.23Monitor the lease agreements to ensure that operational efficiency of buildings is maintained and landlords comply to terms and conditions agreed upon.If necessary, PDPW will take appropriate actions against the landlord should the landlord not be complying with the terms and conditions of the lease agreement.

Other Maintenance Requirements

2.2.24PDPW shall provide the measures and support required by the Client Department to be able to manage and control the usage of services and resources (mainly water, electrical power and fuel pertaining to the operation of the facilities and embedded systems of such facilities required for the operation of the Client Department in the facilities) and to point out to the Client Department where it is observed that these services and resources are not used in such a way that optimal usage is ensured, wastage is not prevented and that the impact of the related operations on the environment is not kept to within the limits set in relevant legislation and in line with the requirements of the PFMA.

2.2.25As determined by Section 16 of the OHSA, 1993 the Accounting Officer of PDPW bears the responsibility for the compliance of the buildings, facilities, installed equipment and installations and with the requirements set by the OHSA, 1993 and its Regulations and Incorporated Standards, SABS 0400, and any other such acts in providing for the executing of the processes, operations work and occupancy of the facilities to be used by the Client Department.

2.2.26PDPW shall undertake that specialised facilities, installed equipment and systems provided by PDPW (such as sewage effluent purification works and steam generating boilers and any other such equipment) be operated by personnel or appointed contractors under the control of PDPW as required by the Client Department and as stipulated in 2.1.25 above and to ensure that the relevant requirements of the OHSA, 1993, its regulations and other relevant legislation are complied with during such operation of facilities, installed equipment and systems.

Emergencies

2.2.27PDPW shall respond to emergencies within two working day of being notified by the Client Department of an emergency. PDPW shall assess the emergency and determine in consultation with the Client Department what actions shall be undertaken and provide the Client Department with the action plan within a five days of the initial assessment carried out by PDPW.

3.INSTITUTIONAL ARRANGEMENTS

Bilateral meetings shall be held monthly, unless otherwise agreed to between the two Departments, to ensure smooth communication between the Client Department and PDPW. The Accounting Officers of both Departments commit themselves to attending meetings, or send delegates to the meetings who have authority to make decisions. The meetings shall entail discussions of, inter alia, the following:

3.1The Asset Management Plan, Infrastructure Plan, leasing needs and possible vacation of premises for the following financial year.

3.2Prioritisation of projects on sound technical grounds and legislated requirements and standards in addition to the Client Department needs analysis.