The Sarah Baartman Centre of Remembrance in the small town of Hankey, Eastern Cape, has faced numerous delays since the construction tender was awarded a decade ago.
The project was intended to honour Sarah Baartman and the Khoi and San communities. It has drained over R5-million in funds from the Department of Sports, Arts, and Culture (DSAC) .
Despite three different contractors and 10 years of work, it remains incomplete.
Report paints a grim picture
According to a report presented to Parliament’s Portfolio Committee on Tuesday, construction was initially set to begin on April 14, 2014 and finish by October 14, 2016.
The centre was planned to include classrooms, a multi-purpose hall, a reading room and a gatehouse. Also dormitories, a reception area, a living heritage section and a restaurant. A pump house, road upgrades, a museum, and a roadway to the burial area.
Lubbe Construction was the first contractor, with a budget of R168-million (including VAT). However, due to cash-flow problems, they fell 10 months behind schedule. They eventually handed over the project to Transtruct Building and Civil Contractors.
At the time of the hand over, the contract value had risen to R189-million. Transtruct was supposed to start work in October 2017 and complete it by October 2018. However, this was extended to August 28, 2020. The revised contract value was R225-million.
Transtruct also faced delays due to poor quality work that required an additional R9-million to fix.
Various factors caused delay
Other factors contributing to the delays included bad weather and Covid-19 lockdowns. Also contract terminations, holding costs, community unrest, taxi strikes, and annual shutdowns.
“The delay in payment of some certificates issued towards the end of 2020 and the beginning of 2021 led to the termination of the contract by the contractor on July 21, 2021. This occurred several days after the Department of Public Works and Infrastructure (DPWI) made payments. It paid those certificates on July 1 and 2, 2021, totalling R3.1-million,” the report says.
“Even after payment, the contractor was unwilling to return to the site, citing unresolved issues with the DPWI. These include… disputes over remedial work and adjudication of extensions of time. All disputes have been referred to mediation and, subsequently, arbitration, as mediation was unsuccessful. The arbitration process is ongoing,” the report adds.
However, a third contractor was appointed on January 15, 2024. And the site was handed over on February 21, 2024.
This contractor has already been faced with delay challenges due to his unbalanced Bill of Quantities (BoQ). But he was eventually accepted after several engagements.
The two departments believe that this would cause great risks that is likely to affect the project.
Dispute with contractors
“During a progress meeting … on 20 August 2024, the contractor informed the meeting that they have not yet been paid their invoice no 2 which was submitted on the 09th of July 2024. It was to the value of R2,3-million. And as a result, progress on site has been affected. This as sub-contractors could not be appointed to execute specialist services.
“The project manager from DBSA informed the meeting that DBSA could not process the invoice. This as they were experiencing cashflow problems. He further explained that DBSA is owed more than R100-million by DPWI. This is from the entire infrastructure programme Implemented on behalf DPWI,” reads the report.
On August 19 2024, the contractor issued a Notice of Default to DBSA for late payment. This was under Clause 38.1 of the JBCC. The notice was not sent to the DSAC or NDPWI. And DBSA did not address the issue within the 10-day period, only responding on September 2 2024.
The contractor then issued a Notice of Cancellation on September 3 2024 under Clause 38.0. However, an urgent Project Steering Committee meeting between DPWI and DSAC was set to address these matters.
