Question NW2308 to the Minister of Human Settlements

Reply:

1. The implementation of housing delivery as well as appointment of contractors is the function of the provinces. The list of contractors has been requested and obtained from the provinces since they are responsible for appointment and contract management.

The details of all the housing contractors who have entered into business with Government in the past five financial years in all provinces are as follows:

A total of 2 970 contractors have entered into business with Provinces. The details of those contractors per province are attached as Annexure A.

2. (a) 95 contractors defaulted in the completion of the projects; contractors that have not defaulted have completed or are still constructing the projects that are not yet complete.

(b) Reasons for defaulting include:

• Poor performance by the contractor;
• Lack of bulk infrastructure;
• Contractor Cash flow challenges;
• Untraceable beneficiaries;
• Legal land requirements;
• Replacements of beneficiaries;
• Change of local authorities;
• Scarcity and price escalation of building material;
• Project surrendered due to cost escalation;
• Covid-19 challenges;
• Unbuildable sites and missing beneficiaries;
• Delays with beneficiary administration;
• Social issues;
• Change of local authorities;
• Delays in Water Licence (WULA) approval and variation order delays.

The details of defaulting contractors per province are attached as Annexure A.

PROVINCE	(1) NUMBER OF CONTRACTORS	(2a) NUMBERS OF DEFAULTERS	(2b) SUMMARY OF REASONS
EC	818	4	Poor performance and cash follow constrains
FS	123	0	No defaulters reported by the Province
GP	97	3	Poor performance
KZN	652	62	Poor performance; Bulk infrastructure; Cash flow; Untraceable beneficiaries; Legal land requirements; Replacements of beneficiaries; Change of local authorities; Scarcity and price escalation of building material; Project surrendered due to cost escalation; Covid-19 challenges; Unbuildable sites and missing beneficiaries; Delays with beneficiary administration; Social issues; Change of local authorities; Delays in Water Licence (WULA) approval and Variation order delays
LP	400	14	Poor performance
MP	182	5	Contractors failed to commence with the work after site hand over and poor performance
NC	66	0	No defaulters reported by the Province
NW	285	0	No defaulters reported by the Province
WC	347	7	Poor performance and cash flow challenges
TOTAL	2 970	95