Dispute: No end in sight

2015-05-13 06:00

THERE is no end in sight in resolving the longstanding dispute which saw construction work halted at the Merriespruit Community Residential Units Complex in Meloding, Virginia.

The construction came to an abrupt halt earlier this year following a dispute between subcontractors and the main contractor, Reder Construction.

The bitter dispute was centred on the outstanding payment of subcontractors, job reservation and the allocation of work to contractors. About 27 aggrieved subcontractors plunged the construction work into chaos when they protested, demanding better treatment by the main contractor and intervention by the department in question.

Following the deadlock, a new completion date is yet to be determined, after construction work could not be completed on the due date of end of March 2015.

According to the contractual agreement and project schedule, the contractor was obliged to have completed work by end March. Furthermore, it was stated that penalties would be imposed if the main contractor failed to deliver the project by the agreed-on completion date.

“The project has to be completed before end 2015. It has been agreed that verification of payments would be completed early in April – after these holidays. Only a small number of payments verification is outstanding and once this is completed work should resume,” Senne Bogatsu, spokesperson of the Department of Local Government and Housing, said.

Bogatsu said a decision had been taken that the contractor would complete the outstanding work after the work had been verified as agreed upon.

“Verification of the quantity of work has been done and agreed upon by all parties. This will be equally shared among subcontractors. Most of the problems have been addressed and resolved amicably, especially regarding payments.”

The multi-million venture is a Public Private Partnership (PPP) development emanating from a tripartite agreement between the Free State Provincial Government Department of Human Settlements, the Matjhabeng Local Municipality and Harmony Gold Mines.

Express Goldfields andamp; NFS reliably learnt that a series of crucial meetings were still being held to resolve other issues relating to the main contractor and subcontractors, including the workers. The series of meetings, set to involve Olly Mlamleli, the MEC for Local Government and Housing, and stakeholders that include Harmony Gold Mines, have been ongoing since mid-February.

The multi-million rand housing project is for people earning between R800 and R3 500

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

How much food do you need to concentrate?

We have been taught that we need three meals a day in order to make it through the day and while most of us indulge in more than our fair share there is a large portion of South Africans who are living off barely enough to sustain them.


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.