The City\u00a0of Joburg has introduced a number of updates to its standard tender contracts that will, most notably, allow for the early termination of contracts if contractors fail to stay within their budgets or are unlikely to meet deadlines.<\/p>\n
The decision was made\u00a0after the Johannesburg Development Agency (JDA), a City of Joburg entity, was forced to terminate four contracts for poor performance by contractors working on projects, including the Nancefield Transit-Orientated Development, Langlaagte Pharmacy Depot, Thoko Ngoma Clinic, and the Rabie Ridge Sports Centre.<\/p>\n
“During investigations, it was found that issues related to cash-flow, which affected production and the quality of work, were evident in all four projects,” said\u00a0Funzela Ngobeni, the City of Joburg’s MMC for Development Planning<\/p>\n
“It became clear that the contractors over-stretched their resources, and in many instances, used money allocated to JDA to cross-fund other projects.”<\/p>\n
New contractors have been appointed to the projects and commenced with the project in March and April 2017, said Ngobeni, with a new completion date scheduled for August 2017.<\/p>\n
“It needs to be stated that there is a need to review industry-based contracts. This will mean that contractual performance and terms of termination based on specific project timelines will become a reality.”<\/p>\n
“We are committed to ensuring that every cent of public money is accounted for and well spent.”<\/p>\n