LIMPOPO DEPARTMENT OF PUBLIC WORKS PRESENTATION TO INFRASTRUCTURE SUMMIT ON:

1. LIMPOPO DEPARTMENT OF PUBLIC WORKS PRESENTATION TO INFRASTRUCTURE SUMMIT ON: Labour Intensive Construction (LIC ) principles and Requirement in Infrastructure Delivery Peter Mokaba Stadium 5 October 2010

2. Presentation Outline • Background to EPWP • Labour Intensive Construction(LIC) Definition • International Experiences • Areas of LIC Focus in Infrastructure Works • LIC Design Principles • Re-alignment of Tender Documents to LIC/EPWP requirements • Challenges • Way Forward and Conclusion

3. Background to EPWP • EPWP is a nation-wide programme which will draw significant numbers of the unemployed into productive work, so that workers gain skills while they work, and increase their capacity to earn an income • To utilise public sector budgets to alleviate unemployment • The first phase of the Expanded Public Works Programme achieved its 1 million work opportunities targets a year ahead of schedule • The second phase of the EPWP to scale up further to contribute significantly to halving unemployment by 2014 • DPW has set targets for provinces and municipalities and for them to report to DPW • EPWP 2 implementation has been launched Nationally, and Provincially in April 2009 • The Premier has signed a pledge committing the Province to its set target.

4. National Goal of EPWP Phase 2 • To create 4.5 million Work Opportunities (WO) in 5 years [2 million Full Time Equivalent (FTE) work opportunities] for poor and unemployed people in South Africa so as to contribute to halving unemployment by 2014, through the delivery of public and community services. • Employment Targets: 55% Women; 40% Youth, 2% People with Disability. • Limpopo’s contribution in 5 years is 441,993 WO or 10% of the national target. • EPWP to enable government to act as an employer of last resort as part of the Anti-Poverty Strategy • EPWP is being implemented in four sectors namely; Infrastructure, Environmental, Social and Non-state sectors.

5. Labour Intensive Construction (LIC) • The Infrastructure Sector involves the use of Labour Intensive Construction (LIC) methods to deliver medium to large scale public infrastructural projects. Covers the bulk (48%) of employment opportunities. • LIC Definition: • The LIC method involves the use of an appropriate mix of labour and machines for infrastructure delivery, with a preference for labour where technically and economically feasible, without compromising the quality of the finished product.

6. International Experiences China: Labour-based rural Roads Programme in China aimed at employment creation and stimulating the local economy Used cobblestone pavement to provide all weather access to remote rural areas In Yunnan Province alone over 5,000 km or roads have been paved using this technique Yuanjiang – Wadie Rural Access Road

7. International Experiences Cont’d • India: • Rural Road Connectivity Programme: • The Government of India launched the Programme in Dec. • 2000 to improve road connectivity in rural areas with the • aim of improving the livelihood of the rural community and • jumpstart the local economy. • The target of Programme is to provide connectivity to • every habitation that has population more that 500 • persons (250 in hilly and desert area). • The programme is fully funded by the central government • and implemented by the various state Governments using • LIC methods • Under the programme some 160,000 unconnected • settlements will be provided with all weather (black top) • roads at an estimated cost of $13 billion.

8. International Experiences Cont’d • UnitedStates of America: • Current $787 billion Economic Stimulus Package • to create most needed employment, and jumpstart the economy which is currently in recession. • $ 250 billion allocated for Fixing the US Infrastructure • "Over the next two years, this plan will save or create 3.5 million jobs. More than 90% of these jobs will be in the private sector – jobs rebuilding our roads and bridges; constructing wind turbines and solar panels; laying broadband and expanding mass transit." • (President Barak Obama – Feb. 24, 2009)

9. AREAS OF LIC FOCUS IN INFRASTRUCTURE WORKS • Roads & Storm-water • Water Works • Waste Management • Sewers • Haul of material • Electricity • Building Works

10. LIC PROJECT SELECTION, DESIGN & CONSTRUCTION PRINCIPLES • In general, projects to be selected, designed and constructed as EPWP/LIC with the aim of maximizing employment creation, should satisfy the following basic principles/criteria: • Socio-economic Conditions: Projects should be in areas with high unemployment and poverty levels with low wage rates. LIC is competitive up to a break-even point daily wage rate of about R105. Note: To prevent unnecessary labour unrest and ensure smooth operation, it is of paramount importance that applicable wage rates are standardized and regulated on all EPWP projects in a province or region. • Availability of Local Labour in Geographical locality: The project location should be in close proximity (say within 5km radius) of large settlements where abundant labour supply can be obtained. Absence of abundant labour within the project vicinity can result in increased project costs (e.g. in transportation/accommodation) and administration.

11. LIC PROJECT SELECTION, DESIGN & CONSTRUCTION PRINCIPLES CONT’D • Site/terrain Conditions and complexity of project: • The nature and scope of the project should not be too sophisticated and difficult i.e. LIC is not quite conducive for very hard/rocky ground conditions; as well as entailing massive earthworks which may require heavy machines. Care must also be taken in the selection of construction materials to ensure quality and durability of infrastructure works. • For roadworks, LIC is more appropriate and conducive to low-volume roads – traffic < 250 vehicles per day

12. LIC PROJECT SELECTION, DESIGN & CONSTRUCTION PRINCIPLES Cont’d • Availability and use of Local Materials: The selection of construction materials during design should emphasize more on materials that will maximize employment creation during construction; and the use of locally-available resources. e.g. stone masonry and grouted stone pitching should be included wherever suitable material is available to the exclusion of pre-cast or cast in-situ concrete stormwater structures. Where there is an indication of local skills, e.g. bricklaying, structures should be designed to make use of such skills.

13. Bridge built using labour-intensive methods Before – Collapsed structure Use of stones for Construction Completed Structure

14. Drainage Structures built using LIC methods Ditch Lining Construction using Stone Masonry Culvert Headwall constructed using Stone Masonry

15. LIC PROJECT SELECTION, DESIGN & CONSTRUCTION PRINCIPLES Cont’d • Prompt Payments: • By Client to Contractor The Client’s procurement and payment processes must be streamlined to ensure prompt payment to Contractors for certified work done. Success or failure of any LIC/EPWP project, no matter how well planned and implemented, is dependent on prompt payments. This is because unlike machine-based projects, human beings are the main producing units on LIC projects who need to be paid promptly The absence of prompt payment often leads to frequent strikes/industrial action and social chaos.

16. LIC PROJECT SELECTION, DESIGN & CONSTRUCTION PRINCIPLES Cont’d • Prompt Payments: • By Contractor to Workers Experience has shown that some contractors on EPWP projects often fail to pay their workers which result in serious social unrest, with workers ultimately demanding payment from Client Bodies. The clause below is inserted under the Special Conditions of Contract: “Contractor’s default in Payment to Labourers and Employees Any dispute between the Contractor and labourers, regarding delayed payment or default in payment of fair wages, if not resolved immediately may compel the Employer to intervene. The Employer may, upon the Contractor defaulting payment, pay the moneys due to the workers not honoured in time, out of any moneys due or which may become due to the Contractor under the Contract”.

17. LIC PROJECT SELECTION, DESIGN & CONSTRUCTION PRINCIPLES Cont’d • Use of Good Quality Hand tools The use of good quality hand tools is very crucial if the workers are not to be unduly strained and productivity is to be optimised on and LIC/EPWP project. For tendered projects, the onus is on the Contractor to provide hand tools and it is equally the responsibility of the Client Body to ensure that the Contractor provides his/her Workers with good quality hand tools, since the cost of the tools are included in the project cost and paid for by the Client Body. To enforce this all-important issue, the following clause is added under the Special Conditions of Contract: “Provision of Hand tools The Contractor shall throughout the project duration, provide his labour force with hand tools of adequate quality, sufficient in numbers and make the necessary provisions to maintain the tools in good and safe working conditions”

18. LIC PROJECT SELECTION, DESIGN & CONSTRUCTION PRINCIPLES Cont’d. • Earthworks (i) must be designed taking consideration of the method of construction, namely labour intensive. e.g. in LIC road works, it is more cost-effective to ensure transverse balancing instead of longitudinal balancing of earthworks as in Machine-Base Construction (MBC). (ii) Vertical and horizontal alignment of the works (roads, trenches, pipelines and stormwater channels) should be such as to optimize cut and fill, minimize deep or hard excavation or areas requiring specialist engineering input for example dewatering or specialist ground stabilization.

19. LIC PROJECT SELECTION, DESIGN & CONSTRUCTION PRINCIPLES(cont.…) • Drainage Considerations • Trapezoidal (open) side drains are more conducive to excavation by hand and hydraulically more efficient than ‘V’ drains, which are more easily excavated by machines • Setting out and Quality control • Use of simplified tools and equipment for setting out and quality control e.g. • Ranging rods & profile boards • Shutters for layer works • Concrete mixers • Pedestrian rollers for compaction • Etc.

20. Earthworks using labour-intensive methods Trenching Sloping

21. LIC PRINCIPLES (cont..…) Use of Steel Shutters for LIC Layer works

22. LIC PROJECT SELECTION, DESIGN & CONSTRUCTION PRINCIPLES (cont..…) • Priming by hand Sprayer • Cold Asphalt Sealing by hand

23. LIC PROJECT SELECTION, DESIGN & CONSTRUCTION PRINCIPLES (cont..…) • Chip Spreading on Hot seals Spreading by Hand Spreading by “Chippy” Spreader

24. LIC/EPWP Qualification Requirements • Consultant: • Engineer – NQF Level 7 Qualification • Consultant’s RE – NQF Level 5 • Contractors • Should have Employees Qualified in Labour Intensive Construction (NQF Level 4); OR • Employees are Registered for Training in LIC works.

25. RE-ALIGNMENT OF TENDER DOCUMENTS TO EPWP REQUIREMENTS • The same conventional Tender documents are used on EPWP Projects but certain project-specific clauses related to the use of LIC methods, are incorporated into the tender/contract documents under special conditions of contract, specifications, schedule of quantities, and drawings, as outlined in the “Guidelines for the implementation of Labour Intensive Infrastructure Projects under the EPWP” (Second Edition, July 2005). • These special clauses are meant to contractually bind the Contractor to those project activities to be executed labour-intensively thereby maximizing employment creation.

26. RE-ALIGNED EPWP TENDER DOC. Cont’d • A summary of clauses inserted in the project document are: • Project Cover Document – EPWP logo inserted, as a means of branding the project is an EPWP Project. • Under Instructions to Tenderers – In the Tender Notice - “Eligibility is restricted to tenderers with CIDB registration in the specified classification and who have staff with the requisite qualifications in LIC”. • Under Special Conditions of contract – Applicable labour laws extracted from the Ministerial Determination for Special Public Works Programmes containing the “Code of Good Practice” (e.g., demographic consideration, prompt payment, labour standards and safety, task work system, protective clothing, community participation, etc.); observance of human rights, democratic, social and cultural values, gender equality, labour welfare and safety and equal opportunities for disabled; the provision of complaint mechanism for workers’ grievances such as, Community Liaison Officer, community-based Steering Committees, monthly workers welfare assessment forms, etc.

27. RE-ALIGNED EPWP TENDER DOC. Cont’d • Under Project Specifications – The Client body would specify in the contract, the applicable daily wage rate for the project. In accordance with the Code of Good Practice for Employment and Conditions of Work for Special Public Works Programmes, clause 10.4 requires that the following should be considered when setting rates of pay for workers: • The rate set should take into account wages paid for comparable unskilled work in the local area per sector, if necessary. • The rate should be an appropriate wage to offer an incentive for work, to reward effort provided and to ensure a reasonable quality of work. It should not be more than the average local rate to ensure people are not recruited away from other employment and jobs with longer-term prospects. • Men, women, disabled persons and the aged must receive the same pay for work of equal value.

28. RE-ALIGNED EPWP TENDER DOC. Cont’d • Task (Productivity) Rates • i. LIC must be based on task rate system • ii. Appropriate task rates must be agreed upon & assigned. • A “task rate” is an approved quantity of work to be assigned to a worker(s) to complete within 5- 6 hours working day, whilst the “wage rate” is the set wage to be paid to a worker who completes an assigned daily task. i.e. task rate relates to assigned daily work whilst wage rate relates to the daily wage earned for completing a daily task.

29. RE-ALIGNED EPWP TENDER DOC. Cont’d • Hand Excavation Clauses: • The relevant LIC specification clauses pertaining to Hand Excavation of different types, and consistencies of soil, hand compaction; haulage by wheelbarrows; and pre-cast concrete works, are inserted. • Under Preamble to the Schedule/Bill of Quantities: • Clauses are inserted indicating that all works or part thereof on the bill specified to be done labour-intensively as “LI” must be constructed by labour intensive methods; and payments for such ‘LI’ designated items will not be made unless they are constructed using labour intensive methods.

30. RE-ALIGNED EPWP TENDER DOC. Cont’d • Under the preliminaries & General Items of the Bill of Quantities • Training Allowance – A bill item for cost allowance provision for training of workers on the project is inserted. • On the Bill of Quantity sheets • To indicate or mark every bill item specified to be done labour-intensively as “LI” • Client bodies would ensure that: • During implementation of the project, all itemized works to be done labour-intensively, are so carried out by the Contractor. • Workers’ skills audits and the requisite training are carried out for the workers. • Contractors’ produce regular monthly reports on employment creation - reporting – to tie reporting with payment for works done.

31. Challenges/Risks and Mitigation

32. Challenges/Risks and Mitigation Cont’d

33. Challenges/Risks and Mitigation Cont’d

34. Way forward and Conclusion • It is mandatory for all Public Bodies to implement EPWP using LIC methods to increase labour intensity on projects. • Set targets are the barest minimum and all Public Bodies must endeavour to exceed the set targets. • Projects should be deliberately designed to maximize employment • Implementing Bodies whose annual projects and budgets are inadequate to achieve the minimum set targets must either get more projects or increase the labour intensity on their projects • Accounting Officers of Government Bodies to sign an MoU to achieve their set targets • Accurate reporting is essential to capture the employment created. • Use of CIDB requirement of mandatory reporting – to tie reporting with payment for works done. • The Executive to ensure all institutions to make EPWP a success

35. Thank YouAugustus Asare ILO Technical Adviser Limpopo EPWP Tel: 015 284 7111 Fax: 086 593 1502 Email: asarea@dpw.limpopo.gov.za