NW terminates road construction contract

Tuesday, April 5, 2011

Pretoria - The North West Department of Public Works, Roads and Transport has terminated a road construction contract worth R208 million.

"We have fired Kaulani Civils (Pty) Limited, the company contracted to construct the road between Koster and Lichtenburg, for non- performance and failure to meet the targets. Indeed the writing was on the wall for Kaulani Civils, since the beginning of March this year," said the department on Tuesday.

The department had expressed its dissatisfaction with the company on several occasions after work commenced on the construction in February 2009.

The road is important for the general public as well as the farming community among others. "The strategic importance of the Koster-Lichtenburg road to our province cannot be over-emphasised," said the department, adding that on 14 March a notice of intention to terminate the contract was issued. 

The company was given 14 days to improve its performance on site or give reasons why the contract should not be terminated. A termination letter was issued on 29 March.

The road was due to be completed in November 2010 after which it was revised to June 2011 for the approximate 80km stretch of road of which the company was responsible for 50km.

Kaulani Civils has been paid approximately R110 million for their services with an interim company being appointed to manage the site.

"To this end, the department will begin a process to finalise arrangements to invite and appoint a new and competent contactor to complete the remainder of the work," said the department's spokesperson Matshube Mfoloe.

The department has dismissed allegations of late payments.

"We are made to understand that Kaulani Civils are alleging that late payments due to them and or the non payment for work performed contributed to the situation they now find themselves in. Payments due to Kaulani Civils were processed within a reasonable period," explained Mfoloe. - BuaNews

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