Cape Town approves seven-year road contracts
31st July 2023
By: Irma Venter
Creamer Media Senior Deputy Editor
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Cape Town’s Urban Mobility Directorate has received the green light from the city council to enter into long-term road contracts, spanning seven financial years, to facilitate the “uninterrupted and regular maintenance and rehabilitation of approximately 10 400 km of roads under the city’s management”.
“I am elated that council approved our request to enter into contracts with six companies for a period of seven financial years,” says Urban Mobility MMC Rob Quintas.
“This will allow the roads infrastructure management department to do planned routine road maintenance without any interruptions or delays, until 30 June, 2030, when the seven-year period comes to an end.
“Our road network is one of our biggest assets,” adds Quintas
“It ensures that people, goods and services are mobile, and facilitates economic growth and job creation. We have to look after this asset, as failing to do so has dire consequences.”
Quintas and his team believe that the existing framework contract for professional services is sufficient for smaller projects.
However, a three-year framework contract becomes problematic when considering larger rehabilitation, reconstruction and upgrade projects.
Typically the investigation and design stages in these projects can take up to 24 months to complete, followed by a procurement process that consumes roughly 12 months before construction starts.
Construction itself can take anywhere between 12 and 24 months, depending on the project size, resulting in a total project life cycle of between three and five years.
“For projects of this scale, a three-financial year contract period is inefficient and carries inherent continuity risks,” says Quintas.
“A new service provider has to be appointed during one of the project stages, typically during procurement or execution.
“Not only does this make for awkward transitions of project leadership, it can lead to costly delays and contractual claims if a replacement service provider is not secured before the existing contract expires.”
“Thus, it is critical that the services of a consistent team of specialist civil engineering professionals are in place, with contract periods not exceeding seven financial years.”