Infrastructure
With reference to the housing development at farm 694, New Woodlands:
(1) Who is the main contractor for this project;
(2) whether the main contractor employs subcontractors; if not, why not; if so, (a) how many external subcontractors are employed, (b) how many subcontractors are from the local community, (c) what is the standing agreement on per-hour wages for subcontractors and (d) what was the agreed wage rate for subcontractors at the start of the project;
(3) (a) what is the total cost of the project and (b) what is the timeline for its expected completion;
(4) whether there were any delays in the completion of this project; if so, (a) what factors lead to these delays and (b) how are further delays mitigated;
(5) whether construction is being delivered within the initial budget calculations; if not, why not?
[1] PowerSmart Joint Venture [PSJV].
[2] Yes, sub-contractors are employed.
[2] [a] 42
[b] 34 [24 currently still on site]
[c] All subcontractors appointed for the construction of the houses at Farm 694 for PSJV are appointed on rates agreed to between the main contractor and the sub-contractors prior to them starting on site. The rates form part of a subcontractor agreement entered between each subcontractor and Power Construction. The rates are not an hourly rate, but rates relating to building industry norms and productions. [i.e., per brick or per square meter of plaster) The only people that PSJV pay an hourly rate are the labourers appointed by PSJV to work in their stores and these rates are as per the BIBC schedule of rates. No subcontractor is appointed on an hourly rate. Each subcontractor is provided with a copy of their signed agreement.
[d] As stated, the rate for the various trades is agreed with the different subcontractors prior to them starting on site. These rates are included and signed for in the contract entered between PSJV and each subcontractor.
[3] [a] R299m which has been increased in value due to project related delays including Covid-19.
(b] October 2022 was the latest programmed completion date submitted by the contractor and currently being assessed by the professional team.
[4] [a] There have been delays related to:
- Design approvals and plans approvals,
- changing of project scope, including design and materials,
- delays caused by external factors such as covid-19 pandemic,
- Delays caused by external facilities such as the Mitchells Plain Wastewater Treatment Plants maintenance issues.
- Sub-contractor disputes causing work stoppages.
[b]) Risk Mitigation meetings are held regularly and, on an ad-hoc basis where required, further engagements are held with specific role players to resolve or mitigate specific issues and delays.
[5] No, the project is not within the initial budget due to reasons outlined in 4[a].
