1. INCA Summer School 2004 Contract Monitoring for Governance & Performance Anita Botha WZC (Pty) Ltd

2. Why do Contract Management & Monitoring? LEGAL COMPLIANCE LEGAL COMPLIANCE Municipal Systems Act Municipal Systems Act Municipal Finance Management Act Municipal Finance Management Act National Treasury Regulation 16 GG 25915 16/01/2004 National Treasury Regulation 16 GG 25915 16/01/2004 Expected Regulations ito MFMA Expected Regulations ito MFMA

3. Why do Contract Management & Monitoring? PUBLIC ACCOUNTABILITY PUBLIC ACCOUNTABILITY To obtain the services specified To obtain the services specified To ensure ongoing affordability To ensure ongoing affordability To get value for money To get value for money To ensure appropriate risk transfer To ensure appropriate risk transfer for the benefit of the community. for the benefit of the community.

4. Why do Contract Management & Monitoring? GOOD GOVERNANCE GOOD GOVERNANCE PPP Management & monitoring is a process that enables both parties to a contract to meet their respective obligations in order to deliver the objectives required from the contract. It is managing the contract terms pro-actively to anticipate future needs and to react appropriately to unforeseen situations that may arise. It involves building a good working relationship between the parties, which continues throughout the project term.

5. 8% 80% Lifespan of Contract Management & Monitoring 12% Plan, Design & ContractMonitor & Manage

6. Planning & Contracting - for good management and monitoring 8% 12% Plan, Design & Contract Feasibility Study - SLA or RFP Knowledge/Database Service Standards Performance Guarantee Contract Outcomes Based - Interpretative Monitoring Fee Penalties

7. 8% 80% Managing the Legal / Operational Interface 12% Monitor & Manage Legal / Operational - Transfer of Knowledge Internal or External Management & Monitoring? Skills & Expertise Commitment Capacity Neutrality

8. Structuring Contract Management & Monitoring Contract Administration Partnership Management Service Delivery/ Performance Management 80%

9. Structuring Contract Management & Monitoring Corporate Governance Trust and Attitudes Communication and Information Sharing Relationship Assessment Dispute Resolution Partnership Management

10. Structuring Contract Management & Monitoring Variation Management Contract Maintenance Financial Administration Contract Administration

11. Structuring Contract Management & Monitoring Monitoring Matrix with KPIs Service Delivery Human Resources Health & Safety Relevant Legal Issues Service Delivery/Performance Management Performance Management Review Asset Management & Maintenance Quality Assurance Management Risk Management

12. LEGAL, FINANCIAL, INSTITUTIONAL & HUMAN RESOURCE MONITORING MATRIX ANNEXURE A LEGAL MONITORING – HEALTH & SAFETY REF. NO.ACTION RESPONSIBLE PARTY REPORTING DATE & FREQCOMMENTS OCCUPATIONAL HEALTH & SAFETY ACT, 85 OF 1993KPIs of Performance Review HS1 Name and copy of appointment of designated responsible person CONTRACTOR When changes As per the Agreement of Indemnity Provided 24/06/2004 HS2Letter of Contractors good standing in terms of Compensation of Occupational Injuries and Diseases Act, 130 of 1993 CONTRACTORAnnuallyAs per the Agreement of Indemnity Provided 24/06/2004 HS3 Names and responsibilities of safety reps @ each plant CONTRACTOR When changes Provided 24/06/2004 HS4 Minutes of monthly/quarterly health and safety meetings CONTRACTOR Monthly/ Quarterly Provided 24/06/2004 – Monthly & Quarterly HS5 Training schedule of employees ito. duties, obligations CONTRACTOR Annually Provided 24/06/2004 incl. Training Man. Contractor to benchmark against ISO 18001 HS6Reporting of accidentsCONTRACTORWithin 24 hours Annual Report Written report with full details HS7Health and Safety PlanCONTRACTORQuarterly/AnnuallyProvided National H&S Plan on 24/06/2004.

13. Result of Structured & Dedicated Contract Management & Monitoring Meeting of the Minds Mutually Beneficial Relationship for the Benefit of the Community

14. INCA Summer School 2004 THANK YOU Anita Botha WZC (Pty) Ltd Tel: 011 476-5684 Fax: 011 678-8700