Gauteng roads department places Lubbe construction on terms
The Gauteng Department of Roads and Transport today placed Lubbe Construction (Pty) Ltd on terms stating that if the contracted company did not take urgent remedial steps to improve its performance, its contract will be terminated within 14 days.
Lubbe Construction was contracted by the provincial roads department to construct the K46 along Diepsloot to the N14 freeway.
Gauteng MEC for Roads and Transport, Ismail Vadi, emphatically said that the Department “regards non-delivery of contract requirements by contractors as a serious matter”.
“What it means practically is that the public is not getting what it is paying for. In this instance, Lubbe Construction has consistently failed to deliver on the construction milestones and the project has gone beyond the established completion date, which calls for more drastic action,” said Vadi.
In his letter to the contractor, the Head of Department, Ronald Swartz, claimed that based upon the construction schedule for the project, work on site is now far behind schedule and appears to be falling further behind.
He said that in spite of being placed on formal notice on numerous occasions in the past year to increase capacity and to arrange for timely material deliveries, the company has not been able to demonstrate an ability to meet its scheduled targets.
Swartz warned that if a reputable company with a Level 9CE CIDB rating is not appointed to assist Lubbe Construction to complete the project, his department will terminate the contract.
“In that event, your company would be responsible for additional costs incurred for the completion of the project as well as any and all damages the department might sustain because of your company’s failure to complete the project,” he warned Lubbe.
The department has given Lubbe construction until 5 March 2018 to act on its recommendations.
Earlier this year sub-contractors and employees staged a protest against Lubbe Construction claiming that they were not paid for work done since October last year.
It was later confirmed that Lubbe construction (Pty) Ltd has applied to the courts for “business rescue”.
Enquiries:
Melitah Madiba
Cell: 073 644 9935
E-mail: PressOffice.GPDRT@gauteng.gov.za
