1. PPGS N3/1: Durban - Pinetown

2. PPGS N2/25,26 DURBAN OUTER RING ROAD

3. PPGS N2/25,26 DURBAN OUTER RING ROAD Pavement History Constructed: 1978 (northern last 3 km 1990) Pavement Structure:40 mmAS 125-145 mmBS 150 mmC2/C3 150 mmC3/C4 150 mmC4 SG SubgradeG7 Overlay 1990/93: 40 mm AS

4. PPGS N2/25,26 DURBAN OUTER RING ROAD Traffic AADTTAADT± Area m 2 Section A (South)482685 743500 000 Section B (North)170618 400260 000

5. PPGS N2/25,26 DURBAN OUTER RING ROAD

7. PPGS N2/25,26 DURBAN OUTER RING ROAD ROUND No 1

8. PPGS N2/25,26 DURBAN OUTER RING ROAD Tender Closure – October 2002 TendererPPGS*Non PPGS / Alternative AR26,5 m- BR28,3 m- CR74,3mR70,0 m* R71,8 m* R72,9 m R75,3 m D-R58,9 m* R60,8 m* R63,2 m*

9. PPGS SANRAL / SAFCEC WORKSHOP 5 FEBRUARY 2003 40 PARTICPANTS

10. PPGS Workshop Experiences with PPGS Risk sharing Quality Innovation and Product Certification Tender Procedures Procurement Partnering and subcontracting Performance guarantees Scope of PPGS Recommendations

11. PPGS Workshop Experiences with PPGS > 10 Projects to date. Generally successful BOT projects ( a form of PPGS?) tend to have lighter pavement structures than conventional. Money/risk? Whole life cost of PPGS = conventional projects. Could be less due to greater focus on quality and reduced cost during maintenance period? In general, little innovation observed on PPGS projects CAPSA 94 resolution: PPGS should be implemented incrementally

12. PPGS Workshop Risk Sharing Need to properly understand and quantify the risk profile. If known, more confidence to tender Industry perception that only high risk projects go PPGS SANRAL approach – generally low risk (existing pavement condition) Substantial number of variables may need to be controlled: difficult to quantify

13. PPGS Workshop Quality Contractor responsible for quality on conventional projects – more so on PPGS (incentive?) Contractor be left to decide how to do the work and not be directed by the employer. Professional partner to offer him guidance PPGS is all about building better quality into the works Control of sub-contractors and suppliers! ISO 9000 often a mere paper exercise? Contractors tendered quality plans must be enforced during project

14. PPGS Workshop Innovation and Product Certification Employers should not be too prescriptive and refrain from presenting benchmark designs, which could impede innovation Rather provide employers cost estimate Employers should refrain from specifying a product (e.g. single seal) as well as performance requirements? Product certification increases employers confidence? Although product certification is desirable, some problems at this stage (time /cost/market size)

15. PPGS Workshop Tender Procedures The purpose and objectives of any PPGS project must be made clear to tenderers To date, insufficient time for tendering on PPGS projects (6 weeks minimum) Need for a pre-site meeting to clarify technical issues? Volume 6 contract document should include all relevant information in Detailed Design Report Escalation and Rise and Fall on guarantee sum should either be part of risk (built in PPGS premium) or Contractor should specify and request in his tender

16. PPGS Workshop Procurement Concern that PPGS not fully aligned with current procurement policies? Does not necessarily fall outside procurement directives but may have a cost premium PPGS should be no exception to the promotion of capacity building, transformation and empowerment in the industry

17. PPGS Workshop Partnering and subcontracting Good working relationship and partnerships are considered essential Supplier to vet the application of his product? Sub contractor/Suppliers to participate in supply of guarantees?

18. PPGS Workshop Performance Guarantees Based on previous experience, premiums for PPGS range between 3-4% Size of premiums make PPGS a viable alternative to conventional? Insurance companies partake in risk assessment Reasonable performance criteria should be set over time. Employers do not expect a “new” road at end of guarantee period Obtaining guarantees is no longer a problem ! May however be difficult if period exceeds 8 years?

19. PPGS Workshop Scope of PPGS May need to redefine PPGS level 2 e.g. Level 2A – limited to surfacings Level 2B – includes reworking of support layers (may require longer guarantee periods) If risk profile is too high and cannot be adequately quantified, pricing of risk becomes impossible. Very long guarantee periods (20 years) not considered feasible

20. PPGS Workshop Scope of PPGS Consultants noted that pavement engineering is not an exact science and very little can be guaranteed (including traffic). Design engineers must however include design assumptions, which will be evaluated by employer

21. PPGS Workshop Recommendations PPGS requires a longer tender period All available info must be supplied to contractors All information should be supplied 2 weeks prior to site insp. Technical meeting desirable before or during tender period SANRAL to investigate accommodation of CPA & rise and fall SANRAL should look at wider spread (low/high risk) projects Further work needed to better understand and predict risks associated with PPGS projects

22. General feeling Contractors are generally supportive of PPGS (depending on risks). Favours alternative products and quality conscious contractors PPGS Workshop

23. PPGS N2/25,26 DURBAN OUTER RING ROAD ROUND No 2

24. PPGS N2/25,26 DURBAN OUTER RING ROAD Tender closure – March 2003 TendererPPGS*Non PPGS / Alternative AR17,6 m- BR77,9 m- CR124,9 mR79,6 m R82,6 m R67,0 m R66,7 m EstimateR69,5 m

25. PPGS Judges decision: Is it a slip? Is it a TKO? Is it a KO?