The Gauteng Department of Roads and Transport has successfully resolved a multimillion-rand contract dispute involving Routine Road Maintenance (RRM) that had been ongoing since 2008. The dispute involved Babazani Trading and Projects CC and 24 other claimants who were awarded contracts for routine road maintenance in Gauteng under the Roads Infrastructure Strategic Framework for South Africa (RISFSA).
The Dispute
The claimants were seeking damages amounting to approximately R400 million, alleging that the department had breached the contract by failing to issue work orders, pay certain invoices and interest, and cover escalation costs. The contracts were tendered under RISFSA, a strategic framework aimed at facilitating active participation by small and emerging contractors in the road maintenance sector.
The Decision
The adjudicator dismissed the claims on procedural grounds, which effectively barred the claimants from pursuing their claims further. The decision removes the uncertainty created by the legal challenge and allows the department to continue its mission of delivering world-class road infrastructure to the people of Gauteng.
The Future
MEC Kedibone Diale-Tlabela expressed her satisfaction with the adjudicator’s decision, stating that it allows the department to focus on its mandate of delivering a world-class road infrastructure that promotes economic participation, growth, and inclusivity. The resolution of this dispute paves the way for the Gauteng Department of Roads and Transport to concentrate its efforts on providing a well-maintained road network for the province.
The resolution of the contract dispute is a significant step for the Gauteng Department of Roads and Transport in its mission to provide high-quality road infrastructure throughout the province. The department can now devote its full attention to the crucial task of developing and maintaining a world-class road network that will serve the people of Gauteng for years to come.
