Road contractors suspend works
COMPANIES contracted by Harare City Council to carry out road maintenance projects under the Emergency Road Rehabilitation Programme (ERRP) have suspended works citing the unavailability of bitumen and high price of stone.
Companies like Bitumen World and Tencraft have since written to council informing it of the development.
Bitumen World said, “Due to the uncertain economic and financial conditions prevailing in the country, Bitumen World was to suspend works involving bitumen and crushed stones until the situation becomes clearer.
“Concern was raised over the slow pace of processing Interim Payment Certificate (IPC) and the problems of effecting payment of approved IPCs.”
Tencraft wrote to council saying they could only proceed with works if the costs were adjusted given the prevailing economic situation.
“We are advising you that with effect from October 1, there has been a very significant increase in the cost of inputs due to the volatility triggered by the recent monetary policy. Major increases have been seen in imported materials like bitumen products, spare parts, oils and paints,” reads the letter.
“Unfortunately, the import costs increases have resulted in increases of key supplies to surfacing works like aggregates. The increase will substantially increase the cost of the rehabilitation programme. We believe that the rates used in the addendum of September 2017 are no longer sustainable and should be adjusted to reflect the current scenario.”
The company said due to the price increases, suppliers were now issuing proforma invoices valid for 24 hours such that the rates would have to be adjusted almost daily.
Tencraft said it can proceed with works on the understanding that daily prices are variable and variation in costs will be paid in the subsequent IPCs under escalation of prices.
Harare Mayor Councillor Herbert Gomba confirmed the development.
“It’s sad that the contractors have suspended works due to the volatility in the financial market, they wrote to us saying the costs of materials used in road making are increasing and affecting their ability to provide us with service,” he said.