Thank you, Chairperson. Late payment of contractors by either departments or principal agents still occurs, which impacts negatively on small emerging contractors.
There are significant variation orders, which are attributed to poor contract management by provincial health departments. Variation orders can be costly because an initial budget can escalate and may double the original budget; hence, greater care should be taken in the planning stages to ensure project briefs contain the correct specifications and design.
The national and provincial Health departments have limited technical capacity such as project management skills and monitoring and evaluation capacity to oversee projects and contractors. This results in projects not meeting specifications and not being fit for purpose. This also delays the completion of projects.
The recommendations are as follows: The national Department of Health should accelerate the implementation of the health infrastructure delivery plan. In turn, the provincial health departments should fast-track the establishment of the infrastructure units and the appointment of resident engineers, which should be a priority. Monitoring and evaluation activities should also be improved throughout the health sector regarding the HRG.
Co-ordination of the grant and co-operation among the provincial departments of health and public works should be strengthened. Contractors should provide value for money and be penalised for failing to complete projects on time.
Joint ventures between experienced and less experienced contractors should be carefully monitored. This is because, in most cases, the experienced contractors leave the implementation of projects to less experienced, usually small, contractors, which compromises the quality of work. The lack of transfer of skills impacts negatively on efforts to improve the capacity of smaller contractors.
In conclusion, the national Department of Health should address the issue of standard plans and norms in relation to structures for clinics and hospitals to avoid the costly exercise of commissioning designs for new structures by the provincial health departments. Chairperson, I move that the House adopts the report. Thank you.
Question put: That the Report be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution.