Materials supply

N3 Cato Ridge Quarry

R600 million of materials supply into national road construction. Lion Bee managed the procurement — a supply contract prices differently from a works contract.

The mandate

Supply is measured by the tonne, and certified against the record.

The unit is mass, not an activity. That changes what the documentation has to say and what the monthly control actually is.

01

Estimate off the works

Quantities taken from the road works bills, then built up with production and haul, so the supply budget matches what the paving front will actually consume.

02

Schedules of rates

Rates by material class, delivered against ex-bin, with testing, rejection, stockpile and production obligations written in.

03

Evaluation and award

Rates tested against the estimate and against the delivered cost of alternative sources, then a written recommendation to award.

04

Reconcile and certify

Monthly reconciliation of certified tonnage against weighbridge and delivery records, with non-compliant material kept off the certificate.

Cost drivers

On a supply contract, the control is the record.

Three things decide whether R600 million of material is money well certified.

The weighbridge is the measurement

Value certified is a direct function of what was weighed and delivered. The integrity of the weighbridge and delivery-note regime is the cost control — there is no second opinion later.

Quality is a payment condition

Material outside specification is not a defect to be fixed later. It is tonnage that must not be certified, which means the testing regime has to sit upstream of the certificate.

Haul is a priced variable

Where haul is measured separately from supply, distance must be recorded per delivery rather than averaged. And a plant that falls behind the paving front puts the works contractor on standing time — a supply risk that lands as a works claim.

R600m

Contract value

Supply

Materials for national road construction