Question NW1269 to the Minister if Sport, Arts and Culture

Reply:

(a). The incomplete projects implemented through DPWI include both the Sarah Bartmann Centre of Remembrance (SBCR) and the installation of Heating Ventilation and Air- Conditioning (HVAC) at the National Archive Building.

On SBCR (Sarah Bartman Centre of Remembrance)

(i) Site was handed over to the contractor to commenced on 14 April 2014.

(ii) Project was supposed to be completed on 14 October 2016.

(a). The first contractor experienced cash flow problems early in the project. The quality of work was, on many occasions, not up to standard and therefore works had to be redone which caused delays in the construction programme.

Three strikes occurred in July, September and October 2014.These strikes related to Hankey workers requesting to be subcontracted to the project.

Unfortunately, many of the SMME’s and workers who wanted to be subcontracted did not have paperwork in place, did not want to submit quotations for the work; as well as a misunderstanding between the salaries paid to workers on building vs civil works.

In early 2015, the contractor applied for a revision of the practical date of completion. Strikes were experienced in 2017 due to the fact that the workers had not been paid their August and a portion of their September 2017 salaries. After assigning of the contract to the second contractor, work progressed. However, delays in the approval of Extension of Time applications and other Variations by DPWI contributed to further delays under a new contractor. A dispute also arose between DPWI and assigned contractor over defective work, which the latter remedied, because that defective work was only discovered after a site was handed over.

Additionally, the dispute also includes overpayment to the first contractor, and these are now being recovered or subtracted from the current contractor claims. The due date for completion has moved every year since 2014.

On HVAC project

(i) Site was handed over to the contractor to commence on the 16 January 2013.

(ii) Project was supposed to have been completed on the 17 July 2014.

a) The delays experienced were as a result of:

• Cash flow problems experienced by the contractor and this delayed progress on the project, and in 2019, main contractor decided to assign the contract to a sub-contractor subject to approval by DPWI. Unfortunately, this approval from DPWI is still outstanding since 2019, and this delay have implication on the validity of the contract, and related transaction that have to be processed. This includes payment of outstanding invoices, as such transactions must have contractual basis.
• The last Extension of Time approved was in Mach 2018, and this is also another matter that has a negative bearing to payment of some invoices, and affects cash flow and seamless implementation of the project
• The sub-contractor appointed to provide shelving was liquidated, and this led to significant delays in delivery and installation shelving facilities required for archiving. The new main contractor could not find a suitable replacement sub-contractor in the country and resorted to importation of the shelves from China.
• No budget for handling/removal of material that require specialized services.

These materials are not removed in some storerooms because approved budget was spent in full and approval of additional budget is subject to finalization of the assignment.