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The KwaZulu-Natal Department of Public Works and Infrastructure announced the termination of the contract with the company responsible for constructing the Sibonginhlanhla Primary School in Waterloo, Vereulam. This decision was made following an inspection conducted by the Department's Minister (MEC), Martin Meyer.

The project, valued at 73.9 million rand, which began in September 2023 and was originally scheduled for completion in August of this year, is now projected to be ready only in June 2027, with the total cost increasing to 84.3 million rand.

Meyer indicated that significant project delays were caused by cash flow problems experienced by the contractor. Despite receiving multiple notifications and agreeing to recovery plans, the contractor failed to meet its obligations. Consequently, the department issued a notice of intent to terminate the contract on July 7, 2026, and the termination process was officially initiated after this deadline passed.

In an official statement, the department reported that the termination followed thorough discussion and consultation with the Tenders and Evaluation Committee. During a site visit last Tuesday, Meyer highlighted several deficiencies on the part of the contractor:

• Ignoring corrective measures proposed by the department;
• Constant delays that resulted in the project being only 52% complete and increased costs;
• Violation of safety standards;
• Construction of structurally unsound facilities.

The statement noted that as this matter could become subject to litigation, the department would not make further comments until the issue was finally resolved.

During the inspection, Meyer emphasized the importance of critical engineering work on installing supports, noting that any failure in its execution could endanger people's lives. He stated: 'If we hadn't noticed this and finished this school, children's lives would have been in danger, and that is simply unacceptable.'

He also listed factors hindering progress: constant delays and threats, including payment delays to the contractor, which in turn affected timely payments to local subcontractors; low quality and poor performance of the contractor; the contractor's financial constraints, despite the 9GB grading; inconsistent site management; disagreements over work packages between the contractor and local subcontractors; and extortionist activities.

Nevertheless, Mbongiseni Duma from Khulakwande Construction attributed the project's failure to the department's inability to make timely payments, forcing the contractor to self-finance the work. Although the department later promised timely payments, delays continued, including a 90-day wait for the first claim.

Duma added that payment issues require Extensions of Time (EOTs), but the department refused to consider such requests, including 15-month EOTs (related to payments, material changes, weather conditions, public or business forum disruptions), to which they did not respond.

Furthermore, repeated attempts to meet with the MEC and the head of the department to resolve these issues proved unsuccessful.

Political commentator Rebone Tau suggested that the government should investigate the issue of disruptions related to business forums, where criminals sometimes disguise themselves as these structures to disrupt projects and pressure contractors. He noted that this can significantly slow down projects, as contractors are sometimes forced to comply with demands or make payments to these groups.

Tau warned: 'The problem is that these extra costs can ultimately affect the quality of the project. Contractors may be forced to cut costs elsewhere, including purchasing cheaper materials, which compromises the standard and quality of the work. The result is a situation where millions of rand have been spent, but the completed project does not reflect the value of the money invested.'

He concluded that the government must find an appropriate way to engage with legitimate business participation while preventing criminal elements from using business forums to derail public infrastructure projects.