The Johannesburg Roads Agency (JRA) has announced that it terminated the contract for repairs to Lilian Ngoyi Street with the initial contractor, Step Up Engineering, on 14 August 2024.
This follows several delays in the rehabilitation of the damaged road due to Step Up Engineering’s failure to meet contractual obligations.
The JRA is in the process of appointing a new contractor to undertake the remedial work, which will significantly impact the project timeframe.
Phase one of the rehabilitation is now only expected to be completed by 30 June 2025, six months later than the initial deadline.
The phase includes the reconstruction of 450m of collapsed road and associated infrastructure, the 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.
Phase two is subsequently scheduled to be completed on 30 June 2026 – just under two years away from today.
This phase comprises road surface upgrades and sidewalk adjustments along the 1.8km stretch of tarmac.
If the new contractor manages to adhere to this timeline, it will mean that Lilian Ngoyi Street (formerly Bree Street) will have been in a state of disrepair for just under three years, severely impacting the flow of traffic as well as the daily lives of residents and businesses in the area.
Residents have complained of a spike in criminal activity since the street suffered from a gas explosion in July 2023 that killed one person and injured at least 40 others.
Businesses have also lamented the lack of foot and vehicular traffic in the area which has led to a drastic drop in clientele, therefore hampering their ability to earn an income.
The JRA and other entities within the City of Johannesburg said they are committed to partake in quarterly stakeholder meetings to address challenges faced by road users, residents, and business owners in the affected wards.
Due processes followed
The JRA contends that it followed due processes to ensure that Step Up Engineering was in a good financial position to complete the rehabilitation of Lilian Ngoyi Street, and it ensured that the contractor held a valid CIDB 9CE grading in terms of the Construction Industry Development Board grading system, which is a prerequisite to be appointed for contracts in excess of R200 million.
Additionally, before the company was awarded the job, all bidders and directors of the shortlisted bidders were checked on the National Treasury Register of restricted suppliers and tender defaulters.
The JRA confirmed that it invited five contractors to the bidding process but only three responded, one of which was Step Up Engineering.
After a “thorough, transparent, and fair” review of the various company’s proposals, Step Up Engineering was given the contract.
However, it soon became apparent that it wasn’t capable of meeting the given deadlines.
The JRA subsequently undertook several interventions to hold the contractor accountable and ensure the project remains on track, including sending warning letters relating to non-adherence of project requirements, contract breach correspondence, and poor performance notices.
With these interventions going unheeded, the JRA issued Step Up Engineering with a 14-day notice of intent to terminate the contract, and the termination came into effect on 14 August 2024.
“JRA is sensitive to the impact this sectional closure of Lilian Ngoyi Street has on road users, business owners, residents, and other stakeholders,” said JRA acting CEO, Lufuno Mashau.
“Consequently, 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.”
Join the discussion