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Timely meeting averts standoff

One of the contractors confirmed that they a had reached an agreement on the standing rate

Eskom successfully averted a standoff between their contractor, Aveng Grinaker and 12 small, medium and micro-sized local enterprises (SMMEs) over payment rates last Wednesday.

According to the contractors, they began work on 4 May after months of postponement for them to transport ballast from the crushers to the site of the Majuba Rail Project.

They received e-mails last Tuesday informing them that their services would be stopped on Thursday for three weeks as the ballast was finished.

They said the problem began when the contractor refused to pay them a standing rate, which means that, should there be a problem on the part of the contractor and work cannot proceed as per agreement, contractors would be paid a standing rate, which is half of the normal daily rate.

On Wednesday, Eskom convened a meeting with Aveng Grinaker along with the 12 contractors to stabilise the situation. The parties eventually resolved the issues and work was resumed.

One of the contractors confirmed that they had reached an agreement on the standing rate. However, there are some items on their contracts that still require looking into.

Eskom’s Communication and Stakeholder Manager, Khululiwe Xulu conceded that there had been a production miscalculation between their contractor and its supplier.

She confirmed that everything was back to normal and added that the appointment of the SMMEs was to benefit local economic development in Msukaligwa.

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