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Water Sector Policy Database (WSPD)

Policy Detail Information

Open Policy Document Open Policy Document
This document has been opened: 3 405 times to date.
Date Of Release: 01 Dec 2003
Date Of Expected Review: 01 Dec 2007
Date Last Updated: 18 Jul 2008
Policy Type: Contract
Policy Level: National
Department: Department of Water Affairs: Water Services Policy and Strategy
Contact Name: Mbentse Bekubuhle / Ndlovu Siboniso
Phone Number: 012 336 7451 / 336 7391
Fax Number: 012 336 6560
Email: /
Directorate: Water Services Sector Development
Contact Name: Phindile Mlangeni / Humbulani Nevondo
Phone Number: (012) 336 6503 / 336 6612
Fax Number: (012) 336 6672 / 6560
Email: /
Topics covered:
WS Tools and Guidelines
Policy Precis:

This document is a template for a bulk water supply contract between a municipality and a water board. Guidelines in the form of notes are included within this model contract where necessary.

Section Summary

  Section Number Section Heading Section Description
1. SECTION A: INTRODUCTION The introduction summarises the roles of the municipality and the water board, defines the terms used in the contract and sets out the objectives of the contract.
2. SECTION B: APPOINTMENT, SCOPE, DURATION AND REVIEW This section defines the timelines for the contract, such as start date, duration and review arrangements.
3. SECTION C: WATER SUPPLY STANDARDS This section sets out the requirements regarding water quality, quantity, flow rates and pressure and the number of customer connections.
4. SECTION D: SYSTEM OPERATING STANDARDS This sections sets out performance requirements and procedures for normal maintenance and repairs, supply failure, drought, leaks emergencies and issues relating to meters.
5. SECTION E: NEW OR INCREASED WATER SUPPLY REQUIREMENTS This section defines the rights and responsibilities of each party with regard to new or increased water requirements, such as an increase in customer connections.
6. SECTION F: COMMUNICATION AND COORDINATION This section sets out the arrangements for communication with the end consumers of the water supply, through mass media or any other means.
7. SECTION G: INFORMATION AND REPORTING This section sets out the requirements for the relationship with regard to access to relevant information and the timeframes in which such information must be provided to each party by the other when requested, including financial statements and annual reports.
8. SECTION H: BULK WATER SUPPLY CHARGES AND PAYMENT This section covers permissible changes, capital contribution charges, the procedure for setting charges, the issuing of accounts and special payment arrangements.
9. SECTION I: PERFORMANCE MANAGEMENT This section defines the roles and responsibilities for measurement and monitoring of performance, the standards required and covers the procedure to be followed when standards and requirements are not met.
9.a SECTION J: OTHER WATER RELATED ACTIVITIES IMPACTING ON THE PARTIES This section covers the issues relating to the supply and consumption of water where other parties are involved
9.b SECTION K: RISK MANAGEMENT This section covers liabilities and indemnities, disconnection of water supply and permits, permission and approval with respect to risk management for both parties, as well as guarantees and warranties.
9.c SECTION L: BREACH AND VIS MAJOR This section defines the responsibility and indemnification of each party in the case of breach of contact or unavoidable occurrences, such as acts of god.
9.d SECTION M: TERMINATION This section covers the situation and procedures relating to termination of the contract.
9.e SECTION N: PROCESS FOR ADDRESSING MATTERS IMPACTING ON MUNICIPAL CUSTOMERS This section covers the requirements and procedures to be followed where matters concerning the water board and municipality impact on municipal customers
9.f SECTION O: DISPUTE RESOLUTION This section defines the required processes to be followed for resolution of disputes, including negotiation, mediation and arbitration.
9.g SECTION P: GENERAL This section covers general matter with relation to the agreement between the parties, such as confidentiality, prevention of corruption, liability for expenses and so on.

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