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South Africa: Huge Tender For Hospital Terminated
Publish Date : 22-Feb-2010
The North West Department of Public Works has terminated its R456million construction contract with Ilima Projects/Tsoga Developers Joint Venture – because of non-compliance. The company was awarded the tender to build the Brits hospital in the Bojanala district in July 2008 –and construction began four months later.
According to the department’s spokesperson, the contract was terminated because of the provisional liquidation of the majority partner in the joint venture, Ilima Projects. Mfoloe said Ilima had the necessary construction industry development board (CIDB) grade of GB9 – whereas their junior partner, Tsoga Developers only has the grade GB5.
Tsoga Developers, being the remaining contractor on site, does not have the required CIDB grading and this amounts to non-compliance to the contract. The department is considering various options to avoid a vacuum being created that could stall construction work and the speedy delivery of the project.
