Cash flow, unforeseen repair work blamed for delays

DELAYS in the refurbishment of the Northern Cape Provincial Legislature (NCPL) precinct have been blamed on cash flow problems and unforeseen repair work.

The legislature currently pays R681 026.53 per month for the BP Jones building, MetLife Towers building and the Kimberley Printing parking that it is occupying until the refurbishment project is complete.

Spokesperson for the office of the executive manager for committees, research, information systems, public education and communications, Nathalia Borchard, indicated that after the fixed-term lease had ended, the legislature had entered into month-to-month lease agreements.

“The intention is to move back to the main facility as soon as the buildings have been handed over.”

She explained that due to the nature of the repair and renovation project, additional work needed to be done that was not included in the original specifications.

“The additional works needed procedural approvals and scoping, that took four weeks to be completed and approved.

“Other delays that have affected the project completion time has been builders breaks, Christmas holidays, Easter weekends, weather interruptions, resolution of the Department of Labour prohibition order and periodic interruptions by contractor subcontractors due to late payments.”

Borchard indicated that repairs to the structural defects at the precinct were 72 percent complete.

“The outstanding work is mainly the external areas of the facility, specifically the patlelo that requires specialised concrete and formwork.”

She indicated that payment was only effected for work completed.

“The progress on site is estimated at 72 percent while amounts paid to the contractor constitutes only 71 percent of the construction budget. The remaining budget is in line with works outstanding towards completion of the project.”

Borchard said that the total value of the tender amounted to R28.7 million, where the original value of the tender awarded amounted to R26.4 million in the 2016/17 financial year and an additional R2.3 million was approved in the 2017/18 financial year for additional refurbishments.

“The R9 million allocated for the 2018/19 financial year was a rollover of unspent funds that were retained as a result of delays in the project.”

She stated that R20 million had been paid to the contractor, Prominent Emzansi, while the professional consultants, KDM Engineers, had received R3.9 million for work completed.

Borchard added that the legislature had consulted with the contractor about the claim of non-payment to a sub-contractor and the possible negative implications for the project.

“In this manner the matter was resolved.”

Borchard stated that the legislature had appointed the contractor after following a proper adjudication process.

“The legislature had every reason to believe that the contractor was competent and qualified to complete this project. However, additional work and cash-flow problems by the contractor were some of the major reasons why they fell behind the scheduled completion date.

“The NCPL is not aware of any negative history relating to unfinished projects by the contractor. The institution ensured that the screening of the company and its directors were done during the adjudication process. The technical adjudication for functionality, certified the contractor to be technically competent for this project.”

Borchard explained that all issues of non-compliance relating to the prohibition order that was issued by the Department of Labour, had since been addressed.

“It delayed the project by two months, but the entire project team ensured that these issues were addressed, which resulted in the Department of Labour revoking their order.

“The contractor has never been off-site during the contract period, although they have experienced many delays in completing the project by the scheduled date.”

Borchard said that the manager of security, records and facility was the administrative project manager, who was permanently on site.

“The structural engineer, who is the overall project manager, resides outside the Province and visits the site as per their programme. A safety officer has been appointed by the contractor and is on site full time. A reputable occupational health safety company has been contracted to the project to oversee occupational health and safety.”

Borchard indicated that regular progress reports were being submitted.