Contractors working for the department of public works & infrastructure will be blacklisted if they do not meet their obligations on time and within budget.
This will not only include the businesses involved but also the individuals. It is one of the measures that public works & infrastructure minister Dean Macpherson intends to take to address delays in the execution of public works projects. He outlined his plan of action in a statement in the National Assembly on Thursday.
“Our blacklisting policy is straightforward: contractors who underperform or engage in noncompliant practices will no longer have the privilege of working on public projects. This decisive action ensures that only competent, reliable contractors participate in our national infrastructure initiatives,” Macpherson said.
A preapproved panel of contractors who had demonstrated a capacity to complete projects on time and within budget was being developed.
“It will allow the department to select contractors with proven track records, reducing the risk of project delays and budget overruns,” the minister said. These contractors would also get involved in finishing incomplete projects.
Macpherson said that working through the Construction Industry Development Board, only contractors of the appropriate size and with an adequate level of expertise would be awarded large construction projects. And new regulations for tender evaluation was being enforced to ensure transparency and accountability.
“Let me be clear: I will not tolerate or accept shoddy work, delayed projects, or excuses — whether from officials or contractors,” the minister told MPs.
Macpherson noted that construction delays was costing the state close to R3bn over a number of financial years. An estimated R1.3bn had been invested this financial year in projects that are yet to reach completion.
These delays impact essential services, public safety and community wellbeing: from homes and police stations to correctional facilities and hospitals.
— Public works & infrastructure minister Dean Macpherson
“In this financial year alone, out of the current 206 infrastructure projects overseen by the department of public works & infrastructure, 164 projects are experiencing delays for a number of reasons. This represents an alarming 79% delay rate across our portfolio,” Macpherson said.
“These delays impact essential services, public safety and community wellbeing: from homes and police stations to correctional facilities and hospitals.
“These incomplete projects don’t just stand as unfinished structures — they are monuments to inefficient management, corruption, lost opportunities, deferred dignity and unfulfilled promises to the public.”
As well as the R1bn wasted over 10 years on upgrades to the Telkom Towers in Tshwane with little to show for it, R247m had been spent on the Sarah Baartman Centre of Remembrance project in Hankey, Eastern Cape, which was launched in 2014 but remains only 37% complete.
The blacklisting of contractors was just one of the measures the department is implementing to overhaul the way it manages, executes and oversees projects. Tender processes would be recorded and open to the public to prevent any bias or irregularity in the awarding of contracts.
Macpherson said the Council for the Built Environment would be empowered to set mandatory standards across the sector and legislation would require registration for all practitioners in the built environment to ensure that only qualified, accountable professionals were appointed to infrastructure projects.
A contract management unit would be created in the department to actively manage all contracts and monitor contractor performance. Macpherson said a key contributor to delays had been the lack of enforceable oversight standards.
“By centralising contract oversight, we will identify potential issues early, implementing corrective actions and holding contractors accountable at every phase of a project,” the minister said.
Payment protocols would ensure government departments — which owe the public works department R14bn — paid their bills promptly. If not, they would be treated as debtors and debtor policies would be applied, which may include debt collection and eviction, the minister said.
To address the skills deficit in the department, experienced engineers, project managers and construction specialists would be invited in a recruitment drive to rejoin it.
“We are reaching out to seasoned professionals with the skills needed to oversee complex projects and help us deliver results,” Macpherson said.
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