South Africa: Department Welcomes Decision in Road Maintenance Contracts Dispute

The Gauteng Department of Roads and Transport has welcomed the ruling in a case involving a dispute between several contractors and the department’s Routine Road Maintenance (RRM).

The adjudicator in the matter dismissed the case of the claimants (the contractors) in respect of the RRM’s alleged breach of contract between the department and the contractors.

The decision was handed down by Advocate FJ Nalane-SC as the adjudicator.

Contractual disputes arose out of claims by 69 claimants, lodged in 2008 by Babazani Trading and Projects CC and 24 others, for alleged breach of contract.

The claimants were awarded contracts to perform routine road maintenance in Gauteng. Claimants were seeking payment for damages with interest collectively amounting to approximately R400 million.

These were contracted projects executed under the auspices of the Roads Infrastructure Strategic Framework for South Africa (RISFSA) routine road maintenance contracts. They are tendered contracts and winners are bound to facilitate active participation by small and emerging contractors.

Roads and Transport MEC Kedibone Diale-Tlabela welcomed the judgment in this matter.

“The department is pleased this judgment not only removes the uncertainty created by this legal challenge. The judgment further enables the department to focus its energies on pursuing its mandate of delivering a world-class road infrastructure that facilitates economic participation and growth, inclusivity as well as improve the lives of people in Gauteng,” the MEC said on Thursday.