Contractor sought to complete R161million George bridge expansion
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More than a year after the N2 Gawaing River bridge in George was meant to be completed the South African National Roads Agency is in the process of finding a new contractor to finish the job.
Minister of Transport Fikile Mbalula highlight the new contract in a written response to a Parliamentary question from DA MP Geordin Hill-Lewis on the status of the three-year long project.
The project was meant to have been completed in July last year after construction began in January 2018. But this was delayed after the initial contractor KPMM Roads and Earthworks, filed for business rescue a year after being awarded the R161million contract.
“The Contractor ran into financial difficulty around November/December 2018 and declared the commencement of business rescue proceedings in May 2019,” said Mbalula in the response.
“Up to the present date KPMM is still in business rescue and this has significantly slowed the N2 Gwaing River bridge construction progress.
“ SANRAL has provided the necessary support during this process in the interest of ensuring that the project is completed. The Contractor has now informed SANRAL that they cannot continue with the works.”
According to Mbalula just over half of the construction has been completed despite R96.2million having been spent to date.
“The contract duration was for a 30 months period. At this stage, the works are 58.4% complete with a total of R 96 238 948.87 (including VAT) spent to date,” he said.
“Sanral has been in continuous discussions with the contractor regarding performance and has been applying all applicable contractual penalties. Sanral is taking the necessary actions in terms of the contract to assign the contract to a replacement contractor to complete the outstanding works.”