1. BRIEFING THE PORTFOLIO COMMITTEE ON WATER AND SANITATION ON THE
OVERVIEW OF CONSTRUCTION MANAGEMENT UNIT WITHIN THE NWRI BRANCH
Presented by:
Mr. Leonardo Manus
Acting Deputy Director-General NWRI
21 June 2017

2. 1. Background

3. History of Construction
As early as 1930, the development of water resource infrastructure required a labour intensive approach to construction.
The Water Act (No.54 of 1956) saw a more formalised formation of construction capacity. (1965: Orange-Fish River Project)
Subsequent to Democracy (1994), the National Water Act (1998) sought to amend recruitment.

4. National Water Act, Act No 36 of 1998
Section 76. Appointment of persons on contract.
(1) The Director-General may, when necessary, appoint employees on contract outside the provisions of the Public Service Act, 1994 (Proclamation No.103 of 1994).
(2) Appointments made under subsection (1) must be limited to persons to perform duties at sites where the Department—
(a) is engaged in actual construction or investigatory work; or
(b) is associated with specific projects relating to actual construction or investigatory work.
(3) The Director-General must, from time to time, and after consultation with the Department of Public Service and Administration, determine the conditions of employment of such employees.
(4) Such employees shall be remunerated from money appropriated for that purpose by Parliament.

5. CONSTRUCTION MANAGEMENT PURPOSE & MANDATE
The construction, rehabilitation, refurbishment and maintenance of National Water Resources Infrastructure, in order to ensure a sustainable supply of water to meet the social and economic needs of the people of South Africa.
The CD:CM resides within the NWRIB, and is mandated to construct new water resources infrastructure to meet industrial, agricultural and social (domestic) bulk water supply requirements and to facilitate economic growth and development, including the rehabilitation and upgrading of existing water supply infrastructure to comply with international dam safety standards.

6. CD:CM WITHIN THE DEPARTMENT
Minister
Director General
DDG: NWRI
CD: INFRASTRUCTURE DEVELOPMENT
CD: ENGINEERING SERVICES
CD: CONSTRUCTION MANAGEMENT
CD: OPERATIONS AND MAINTENANCE
CD: STATEGIC ASSET MANAGEMENT
CD: REGIONAL BULK INFRASTRUCTURE GRANT

7. 2. Construction Staffing

8. CD:CM PERSONNEL COMPLEMENT
AS AT JUNE 2017
Count of Pers.No.
Column Labels
Row Labels
Project Based
Specialist Contract
Standard Contract
Grand Total
CONST MNGMT SUPPORT 1 12 13
CONST NORTH SUPPORT
372 22
226
620
CONSTRUCTION CENTRAL 93 94
CONSTRUCTION EAST
948 41
298
1287
CONSTRUCTION SOUTH
126 33
145
304
CONSTRUCTION WEST
728 74
228
1030
FLEET MANAGEMENT SUP 5
2174
172
1007
3353

9. Contract vs. Permanent Appointments
Type of Appointment
No. of Employees
Levels
NWA Section 76 Employees
3353
Up to Level 12
PSA Employees
3 (+1 Vacant)
Level 13 Upwards
It would only be Director level upwards who are appointed as permanent staff to ensure continuity at management level.

10. CD:CM EMPLOYMENT PATTERN OVER THE 5 YEARS
Total Workforce in Construction No. as at May 2017
Engineers - 9 No. [1 Black, 3 Female]
Technicians No. [ 63 Black, 16 Female ]
Workforce Black - 85 %
Workforce Female - 25 %
Workforce Youth - 41 %

11. CD:CM OVERALL DEMOGRAPHIC OVER THE YEARS (Management Levels)
BLACK
COLOURED
INDIAN
WHITE
TOTAL 9 4 37 45 10 6 1 22 30 11 34 36 12
104
122
2008
LEVEL
BLACK
COLOURED
INDIAN
WHITE
TOTAL 9 52 2 83
137 10 23 4 61 88 11 12 3 47 64 31 33 89
222
322
2012
LEVEL
BLACK
COLOURED
INDIAN
WHITE
TOTAL 9
100 13 1 55
169 10 42 69
122 11 25 6 36 68 12 2 27 44
180 31 5
187
403
2016

12. 3. Transformation

13. Transformation of the Construction Unit:
CD:CM OVERALL DEMOGRAPHIC OVER THE YEARS (Management Levels)
Transformation of the Construction Unit:
There has been a concerted effort to transform the management of the unit to portray the demographics of the country (primary transformation initiative)
A Joint Transformation Committee was established in October 2015 to ensure that transformation is an inclusive project.
Part of the transformation process is to find the most viable option to ensure economic viability. (secondary transformation initiative)
Transformation is still work in progress.
Various (Business Model) options are currently being explored.
An example of one of the options….
LEVEL
BLACK
COLOURED
INDIAN
WHITE
TOTAL 9 4 37 45 10 6 1 22 30 11 34 36 12
104
122
2008
LEVEL
BLACK
COLOURED
INDIAN
WHITE
TOTAL 9 52 2 83
137 10 23 4 61 88 11 12 3 47 64 31 33 89
222
322
2012
LEVEL
BLACK
COLOURED
INDIAN
WHITE
TOTAL 9
100 13 1 55
169 10 42 69
122 11 25 6 36 68 12 2 27 44
180 31 5
187
403
2016

14. Business Unit Option Example
This would mean that the current could be sub-divided into the following sub-units
Sub-Unit Option
Function(s)
Possible Funding Source
1.)
Specialised Construction Unit
-Dam Construction
-Dam Rehabilitation (Advanced)
-Measuring Weir Construction
Project-based Augmentation
2.)
Project Management Support Unit
-Focus on support to all CAPEX projects incl. RBIG, ACIP, ROCS (or anywhere W1014WTE contracts used as means to assist with SMME development).
3.)
Rapid Response Unit
(lean and mean; fit-for-purpose)
-Respond to Drought and Flood related emergencies,
-Respond to Water Services (Supply and Sanitation) related emergencies.
Could be possibly funded by the Water Management Charges as part of the Catchment Management functions.
(There will be a need to differentiate between Government Water Scheme and Water Services emergencies).
4.)
Operations and Maintenance Support Unit
-Support with Maintenance
-Assist with maintenance requirement assessments to reduce outsourcing dependency.
-Respond to O&M related emergencies.
This function can be included in the WTE Revenue stream as part of the O&M function.

15. 4. Construction Projects

16. CD:CM PROJECT EXPENDITURE OVER 4 YEARS
* All values excluding VAT and R ‘000

17. Construction Project Allocation
Programme
2014/15 Budget (R`000)
2015/2016 Budget (R`000)
2016/2017 Budget (R`000)
RBIG R R R
Cluster Projects (Maintenance) R R R
Infrastructure Development R R R
Water Services Projects R R R
Dam Safety Rehabilitation R R R
Hydrological Services R R R
Intervention Projects R R R
TOTAL
R 1 
R 1 
R 1 

18. 1st Excel spread-sheet attached
CURRENT PROJECTS OVERVIEW
Main Account: RBIG
R330M
CD: SAM
R45.5M
CD: Infrastructure Operations & Maintenance
R78.3M
CD: Infrastructure Development
R9.4M
Main Account: WIM
R18M
Total
R481.2M
2017/2018 Projects
1st Excel spread-sheet attached

19. 5. Construction Assets

20. CD:CM PLANT AND EQUIPMENT AS AT JUNE 2017
Total Number of Yellow Fleet – 1 317 No.
Net Book Value – R
Acquisition Cost – R
Total Number of White Fleet No.
Net Book Value – R
Acquisition Cost – R
Total Number of Stationary Machines No.
Net Book Value – R
Acquisition Cost – R
Total Number of Equipment – 2745 No.
Total Net Book Value – R
Total Acquisition Cost –R

21. ASSETS: Buildings

22. Asset Management (Plant Management)
The Auditor General is generally concerned with the accurate verification of the fleet.
Part of the Construction Equipment system processes is the verification of the entire fleet, twice a year.
The last forensic audit done by PWC yielded a very good result with minor findings. PWC was also satisfied with the verification process and the result

23. Suppliers to Construction
Suppliers contracted to supply services to Construction are not necessarily confined to a specific project. Services are obtained from suppliers to serve various projects.
The spread-sheet provides details of suppliers providing services for the 2017/2018 financial year
Supplier List
2nd Excel spread-sheet attached

24. THANK YOU