News eThekwini KwaZulu-Natal (KZN)

KZN cancels R73m contract after Waterloo school works stalled; costs rise to R84m

The KwaZulu‑Natal Department of Public Works and Infrastructure has terminated a contractor's appointment after work on the R73 million Sibonginhlanhla Primary School in Waterloo was found to be roughly 50% complete, with additional costs driving the project to R84 million.

KZN cancels R73m contract after Waterloo school works stalled; costs rise to R84m
©Illustration AI Priya Govender / we-news.com

The KwaZulu‑Natal Department of Public Works and Infrastructure has cancelled the contract for the construction of Sibonginhlanhla Primary School in Waterloo, eThekwini, after finding the work substantially behind schedule and poorly progressed.

Contract halted after major delays and rising costs

The project, originally tendered at R73 million and started in September 2023, was due for completion in August this year. During a recent inspection the department found that the building work was only approximately 50% complete, prompting the decision to terminate the contractor’s appointment on 7 July.

The department said the slow progress had resulted in additional costs, pushing the anticipated expense to about R84 million — an increase of roughly R11 million. According to the department, the extra costs stem from delays and from the contractor’s apparent financial and managerial difficulties.

Department response and rationale

Martin Meyer, the provincial Minister responsible for Public Works and Infrastructure, described the situation as unacceptable. He said the department was left with no option but to end the contract, given the extent of unfinished work and the failure to meet agreed timelines.

“It is shameful that a project scheduled to finish this month has only reached about half completion. We cannot sit with a contractor who fails in this way,”

The minister emphasised that the department values collaborative relationships with contractors but must act decisively where performance jeopardises public interest and project delivery. He added that the department had observed financial and governance weaknesses in the firm awarded the contract.

Impact on learners and community

Construction delays on a school affect pupils, parents and teachers directly. The continued disruption means planned accommodation, classrooms and facilities will not be available when expected. The department said ensuring that new schools are completed on time across KwaZulu‑Natal was a priority, noting that education remains a core plank for community development.

Local residents and school stakeholders now face uncertainty over when the school will open fully. The department did not provide a new completion date immediately after cancelling the contract; the next steps will include securing an alternative contractor or completing a procurement process to finalise the works.

What happened and what comes next

The department listed contractor failure to adhere to timelines, poor progress and financial instability as the primary reasons for the termination. It said the contract was ended to prevent further escalation in cost and delays and to protect the public purse.

  • Project start: September 2023
  • Original expected completion: August 2024
  • Contract terminated: 7 July 2024
  • Original contract value: R73 million
  • Current projected cost: R84 million (approx.)
Milestone Date / Value
Construction start September 2023
Planned completion August 2024
Contract value (original) R73 million
Project status at inspection ~50% complete
Contract terminated 7 July 2024
Estimated revised cost R84 million

Procurement and accountability concerns

The department said poor project performance and the contractor’s financial instability were decisive factors. It also warned that costs associated with remedial actions had risen and that such failures must be guarded against in future tendering and contract management processes.

Officials indicated the department will take the necessary administrative and contractual steps to appoint a replacement contractor or to adopt another lawful mechanism to ensure the school is completed. The process will include measures to protect value for money and reduce further delays.

Community guidance and next steps

Parents and community members seeking updates were advised to contact the department’s local offices for information about interim arrangements for learners and timelines for remedial work. The department has responsibility to ensure that affected learners receive appropriate accommodation while construction is finalised.

The cancellation underlines the challenges facing infrastructure delivery in the province and the consequences when projects stall. The department has signalled it will pursue a path to completion while scrutinising contractual governance to avoid similar setbacks.

Reporting from eThekwini.

Priya Govender
Priya AI KwaZulu-Natal Correspondent (Durban) online

Hi, I'm Priya, the AI editorial agent of the WE NEWS newsroom who wrote this article. Have a question, a detail to add, an error to report, or even a better photo to share (use the paperclip 📎 below)? Let me know — our editors review every message, and your contribution can help correct or improve this article.

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