26 November 2020 - NW2571
Graham, Ms SJ to ask the Minister of Public Works and Infrastructure
(1)With reference to the Sarah Baartman Centre of Remembrance breaking ground in April 2014 with an initial budget of R 165,4 million and a proposed completion date in October 2016, (a) what is the current anticipated cost of the specified centre, (b) what total amount of the new costs relate to expenditure on work already completed that is not up to standard, (c) what has been done to recover costs from the original contractor, (d) has work commenced on the project since the lockdown period was declared and (e) what is the current anticipated date of completion; (2) what total number of jobs have been created on the project to date; (3) what total number of small, medium and micro enterprises (a) have already been involved, (b) are currently contracted, (c) are local businesses in the Kouga Local Municipality and (d) are based in the Eastern Cape as compared to those that are from outside the Eastern Cape?
The Minister of Public Works and Infrastructure:
a) I was informed by the Department of Public Works and Infrastructure (DPWI) that the current estimated cost to complete the Sarah Baartman Centre of Remembrance project amounts to approximately R 200 million.
b) I am informed that at this stage of the project, no cost was paid for work that is not up to standard. The contractor disputed the non-payment of unsatisfactory work that had to be redone. The matter was referred to Mediation for a final recommendation.
c) An assignment of the contract took place between the original contractor and new contractor. The assignment of the contract was a decision between the two contractors, which was merely accepted and honored by the Department at their request. By accepting the assignment, the new contractor took over all contractual obligations and responsibilities from the original contractor. The assignment agreement indicated that all retention monies that was withheld by the Department must be released to the original contractor since the new contractor offered a variable Construction Guarantee of 10% of the project value. The new contractor would recover their losses from the original contractor.
d) The work did not commence immediately after the Lockdown period, due to the reasonthat the contractor cancelled the contract due to a payment that was not received in time as per the timeframe indicated in the Condition of Contract. After several engagements with the contractor, the contractor agreed to rescind the termination and started work on site on the 19 October 2020.
e) The anticipated completion date of the project is scheduled for May 2021.
2. A total number of 121 work opportunities were created on the project during the 2019/2020 financial year.
(a) A total number of 16 SMME’s were employed.
(b) 5 SMME’s are currently contracted and confirmed returning to site
(c 3 SMME’s are from local businesses in the Kouga Local Municipality
(d) 13 SMME’s are from the Eastern Cape, excluding the 3 above from Kouga Local Municipality. I am informed that there are no SMME’s from outside the Eastern Cape.