Following the contract termination of the initial contractor, Step Up Engineering, on 14 August 2024, the Johannesburg Roads Agency (JRA) is in the process of appointing a new contractor to undertake the rehabilitation project of Lilian Ngoyi Street.
The rehabilitation of the Lilian Ngoyi (formerly Bree) Street project in the inner city incurred delays due to the contractor’s failure to meet several contractual obligations. The JRA undertook several interventions to hold the contractor accountable and ensure the project remains on track including letters issued by the JRA and CoJ.
These include:
– The Contractor was non-compliant in terms of the General Conditions of Contract 2015 for not submitting the required documentation within the 14 working days of site handover;
– Notices relating to non-adherence to project requirements;
– Contractor’s failure to submit contractual deliverables; and
– Poor performance notices as well as various poor performance meetings.
This led to the JRA’s issuing a 14-day notice of intent to terminate the contract, and the subsequent termination of the contract effective from 14 August 2024.
Due process was followed during the appointment of Step-Up Engineering. JRA conducted financial ration analysis to assess the financial health of the company and the outcome of the exercise indicated that the company is in good financial standing to complete the project.
The company also holds a valid CIDB 9CE grading in terms of the Construction Industry Development Board (CIDB) grading, which is a prerequisite to be appointed for contracts more than R200m.
Before the appointment, the bidders and directors of the shortlisted bidders were checked on the National Treasury Register of restricted suppliers and tender defaulters report. Step Up Engineering and its director do not appear on the National Treasury’s list of defaulters.
The panel appointment was done in a thorough, transparent and fair process. During the panel we can confirm that five bidders were invited and only three responded and based on the bidding process, Step Up Engineering was the successful bidder.
JRA acting CEO Lufuno Mashau said: “JRA is sensitive to the impact this closure of Lilian Ngoyi Street (between Harrison and Wanderers streets) has on road users, business owners, residents, and other stakeholders. We are taking swift action to ensure the quick resumption of construction through the appointment of a new contractor to prevent any further unnecessary delays and inconvenience to the public.”
The remaining work of the project’s first phase includes the reconstruction of the 450 metres of collapsed road and associated infrastructure during the gas blast, construction of a new reinforced concrete tunnel, reinstallation and relocation of stormwater and sewer pipes, installation of lighting, detection, and ventilation systems, as well as the essential implementation of lateral support for structural stability.
The projected duration for the remainder of this phase is nine months and the timeline of its completion is on 30 June 2025 extending the initial deadline by six months.
The new contractor will also undertake the second phase of the project, inclusive of the road surface upgrades and sidewalks adjustment along the 1.8km stretch of Lilian Ngoyi Street. This phase duration remains 12 months, however, due to delays in phase 1, the second phase will be completed on 30 June 2026.
JRA extends its gratitude to road users, residents, business owners and other stakeholders for their active participation in the public meetings and appeals for their continued patience and cooperation for the duration of the project.
SOURCED FROM THE JOBURG WEBSITE.
