Question NW1721 to the Minister of Transport

Reply:

The Department awarded a tender for the amount of R65,018M to Botong/Nkolele JV for the

upgrading from gravel to surface, a 10km road D206 from Molelema to Matsheng in the greater Taung Local Municipality. Prior to the awarding of the tender, the Contractor confirmed in writing that it will be able to complete the work within the tendered scope, price and timeframe.

Immediately after commencement of the project, the contractor demanded an additional amount of R 49M, citing that, with the costed amount, only 7km of road will be completed as supposed to the contracted 10km. This would have increased the project value from R 65,018M to R114M with a variance of R 49 M which constitute an increment of 77%. Acceptance of this deviation could be classified as an irregular expenditure. To this end, the department could not agree to the deviation hence the contract was terminated as per the provision of the contract. The Contractor took the department to Adjudication process wherein the outcome came out in their favour. The department is not in agreement with the outcome of the Adjudication Board after one the board members resigned sighting procedural matters. The department has now filed papers in court opposing the outcome of the Adjudication Board. For that reason, the project cannot proceed pending the outcome of the court process.