Govt scraps construction tender

The North West government has terminated a R137.5m tender contract with a construction company due to its "poor performance", the provincial public works department said on Wednesday. Ilima Projects-Tsoga Developers Joint Venture was awarded the tender to build a government office complex in Vryburg, said spokesperson Matshube Mfoloe.

"The decision to terminate the contract was informed by the company's poor performance on the project and their failure to meet targets as agreed in their 24-month contract with the department," said Mfoloe.

The start date for the building of the office was July 25 2006, and the expected completion date was July 25 2008.

"They did not finish on time and requested an extension, which was granted. They were supposed to at least finish the project by October 12, this year.

"Two months after the new deadline, they still have not finished the work," Mfoloe said.

He said the stalled project had been compounded by numerous stops and starts in the past two years with the department nearly terminating the contract last year.

The decision to show the joint venture the door followed a stern warning by public works MEC Mahlakeng Mahlakeng to other contractors that there would be no room for non-performance or shoddy workmanship.

"All contractors must begin to perform or risk being shown the door. We will be ruthless on under-performing contractors who waste valuable time and public funds and in so doing compromise government's ability to deliver services to the people," said Mahlakeng.

The department was expected to set-up a professional team to assess the balance of work at the stalled Vryburg project.

"This would give the department options to consider as a way forward in the next few months.

"These may include going on an open tender for the completion of the remainder of the work still to be done in the new year," said Mfoloe.

Meanwhile, Mahlakeng confirmed that Ilima Projects-Tsoga's performance would be closely monitored at the 200-bed hospital in Brits.

The same company was awarded a R465m contract by the department in July 2008 to build the health facility for the provincial health department in the Bojanala District.

He said the action against the company had nothing to do with the budget pressures his department was experiencing at the moment in the roads directorate.

This comes barely a week after Mahlakeng announced that the provincial government had been hit by a multi-million rand scandal related to road projects that might have been improperly and fraudulently awarded.

"I can confirm that a number of contracts issued by the department for several road projects in the province may have been improperly and fraudulently awarded," Mahlakeng said in a statement last Wednesday.

Comment from the company was not immediately available.

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