VIDEO: Local SMMEs close down site due to non-payment
'No money, no work,' say sub-contractors.
The Small Medium Micro Enterprises (SMME’s) are at loggerheads with the Basil Read construction company, which is responsible for construction at Julius Sebolai Primary School in Bramfischerville.
According to the site Community Liaison Officer (CLO) Laurence Thobejane, the local SMME’s closed down the site because of non-payment of retention and Bill of Quotation (BOQ) fee by the main construction company.
Thobejane said, “Phase One of construction at the school was completed by March and comprises of 40 classrooms.
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“Due to the SMME’s strike, the second phase of the project couldn’t commence as they are demanding their retention fee. We have 11 SMME’s on site with a workforce of 120 labourers who have downed tools because of the ongoing strike and the school gates are locked.”
According to Thobejane, there is a communication breakdown between the site manager and the SMME’s who have stopped construction of Phase Two on May 23.
He said that despite the ongoing strike action, the school is ready for occupation by pupils expected to enroll by June 11 when education MEC Panyaza Lesufi declared the school officially opened.
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Thobejane added, “The second phase comprises of sporting facilities, refuse house, change rooms, water reserves and the connection of running water. We are expecting about 1200 pupils to enroll in this school by June this year.”
Mcdeez Trading director, McDonald Nakana said he employed eight labourers on the site and has not paid back his retention fee by the main contractor.
“Since I started working here in May last year, the main contractor has been deducting 10 percent of the retention fee from my company every fortnight.
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“My retention fee is R 34 000 which is owed to my company. By law, the retention fee should have been paid after we completed Phase One of the project.
“We suspect that they are using our money to keep their company afloat due to their financial problems,” said Nakana.
Director of Hulabela Holdings, Genesis Phasha said his company painted all 40 classrooms, ceilings, doors and window frames at the school.
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He said his dispute centres around the contractor’s Bill of Quotation (BOQ) which does not correspond with the work he did on the site.
“According to their calculations, I did work which covers 4 200 square meters, but my calculations show that I’ve completed 7800 square meters of work.
“This means, there are 3 800 square meters of work which the main contractor is not prepared to pay me for,” said Phasha.
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He has already paid R 300 000 on salaries for his labourers and an additional R 400 000 on material he bought for executing his work.
Gauteng Infrastructure Development spokesperson, Theo Nkoki said they were aware of the ongoing strike.
“Stoppage is a matter between the main contractor and sub-contractors. The retention fee is paid after the department has established that the work has been done in accordance with the contract,” said Nkoki.
He said they have received the invoice from the main contractor and the outstanding amount would be paid within 30 days. At the time of going to print, Basil Read representatives were not available for comment.
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