Road building contracts worth millions under threat

Poor performance of contractors flagged by department

- THAMI MAGUBANE

THE KwaZulu-Natal Department of Transport has cancelled two contracts, one of which was valued at over R80 million, and is on the verge of cancelling several other contracts due to poor contractor performance.

These contractors could also face penalties and recoveries for failed projects, the department warned.

The department said 30 contracts are at risk of cancellation due to the poor performance of the awarded contractors.

Transport MEC Siboniso Duma warned that the cancellation of contracts is just the beginning for contractors who fail to deliver.

The department declined to comment on how much the contractors were paid for the two contracts which have been cancelled. It said it will first need to assess how much work has been done.

"We have projects that are underway, valued at R5 billion. What we want is value for money from those projects," Duma stated.

Duma confirmed the termination of a contract for the construction of road P577-02, which links Cowie's Hill and New Germany to the M13 and M19. The R87.8m contract was awarded to a contractor on 9 June 2023, with work beginning on August 2, 2023. The project was due to be completed by May 24, 2024.

However, more than 14 months later, Duma said the contractor had failed to make adequate progress.

In his recent budget presentation, the MEC disclosed that over R3.8bn would be allocated for constructing new infrastructure projects, while over R4.3bn would be dedicated to maintaining the road network.

Duma emphasised the importance of instituting recoveries against companies that fail to deliver.