No explanation was given by the Ekurhuleni Metro on what the penalties are or the reasons behind the penalties.
However, the completion date remains November 30.
Read: Problems with pipeline solved
Excavation started in July when the old water pipeline was replaced with a high density polyethic pipe which has a lifespan of 100 years.
Contractors were digging a 5.9km trench with a diameter of 500m x300m along Welgedacht Road between Bakerton and Persida.
“In May we reported phase two was planned for the 2017/18 financial year and construction of the new reservoir, the design of which has been completed, is due to commence in 2018,” says metro spokesman Themba Gadebe.
Also read: Pipeline project to be completed in January
A new 7.5 megalitre reservoir will be built next to the old reservoir in Stoffberg Street, Persida.
“The installation of a 10km parallel bulk main from Rand Water will complement the new reservoir,” says Gadebe.