NATIONAL COUNCIL OF PROVINCES
QUESTION 180 (WRITTEN REPLY) 13 NOVEMBER 2009
Mr H B GROENEWALD (DA-NW) to ask the Minister of Public Works:
1) With regard to the construction of Schweizer Reneke office (details
furnished), what (a) was the original cost of this project (b) was the
original target date for the completion of this project and (c) is the
intended purpose of building these additional accommodation by his
department for the Department of Justice and Constitutional
Development;
2) how many main contractors have been employed on this project;
3) whether any of these contractorsâ contracts have been cancelled and/or
terminated; if so, (a) which contractors, (b) when and (c) why was
their contracts cancelled and/or terminated in each case;
4) (a) when will another contractor be appointed in respect of completing
this project and (b) what is the estimated final cost of this project;
5) whether there has been an estimate of fruitless and wasteful
expenditure on this project; if not, what is the position in this
regard; if so, how much?
REPLY
1. a) Tender was awarded in the amount of R 6 425 643.06 and the site
was handed over to the contractor on 30 August 2007.
b. Original target date of completion: 29/10/2008.
c. Additional accommodation was as a result of increased staff
complement including enhancing security by fencing and burglar
proofing.
2. Only one main Contractor
3. a. The main Contractorsâ contract was initially terminated on
29/01/2009. However the Contractor could not be located due to change
of address and contact numbers. This delayed the effecting of the
termination and was eventually received and signed on 24/07/2009. The
contract was terminated due to non-performance as a result of the
Contractor abandoning the site.The total payments to the Contractor
for the works done up and until termination was R1 073 235.00 Vat.
Inc. (17% of Contract amount.)
4 a) The tender documentation is complete and ready for the
invitation of fresh tenders but unable to advertise as the project is
not allocated funds in the current financial year.
b) Estimated final cost of project is R8 811 402.73. (Amount paid to
first Contractor; R1 073 235 plus revised estimate amount of R7 738
167.73 for the completion of the works). The increase is mainly due to
escalation on material.
5. There is neither fruitless nor wasteful expenditure
because the first Contractor was only paid for the work
done.