MAHIKENG MAIL - MAHIKENG: Sub-contractors appointed to construct Phase 3 of the Bophelong Psychiatric Hospital worth R820 million, have stopped work on the project due to non-payments from the main contractor nominated by the department.
The contractors, who were hired to work on various aspects of the project, have been left with no choice but to halt work until the outstanding payments have been effected. Outstanding funds were due from October 2024 to date. This development is likely to further delay the completion of the hospital, which was already facing significant delays as it was at only 38% complete for Phase 3 - expected to be completed by June 2026.
The contractors have expressed frustration and disappointment over the non-payment, stating that they have been working tirelessly to complete the project despite numerous challenges. They warned that if the payments were not made promptly, they may be forced to abandon the project altogether - which will affect the local employees. Other factors that were raised by the contractors were that they have suppliers who have demanded their monies from them, befroe being issued any more supplies.
The suspension of work has also raised concerns about the project’s overall viability and the department’s ability to manage large-scale infrastructure projects.
The hospital’s construction has been a long-awaited project, and its completion is crucial for the community. The suspension of work by the contractors has added another layer of uncertainty to the project’s timeline and budget.
It remains to be seen how the department will resolve this issue and get the project back on track. In the meantime, the project is slow in progress, while contractors demand their payments.
In response, the Departmental Spokesperson, Lucas Mothibedi, said the Department has proactively intervened by convening meetings with the contractor and the professional team to formulate a recovery and acceleration plan. Furthermore, a proposal has been requested for the partial completion of critical sections of the facility. This will allow for the early delivery of essential healthcare services while construction on the remainder of the hospital continues. The contractor has experienced delays in payment, which has resulted in the project moving slowly, especially in the last two months.
The most recent payment from the department was made in February 2025. The delay in payment has been a result of the budget being exhausted in the last quarter of the financial year. The department has experienced budget cuts in the last financial year. Currently, the department is in the process of processing all outstanding invoices. The current scheduled completion date remains 24 June 2026.
An assessment of the impact of the delays is currently underway, and the contractor is in the process of preparing formal extension of time (EOT) claims. These assessments will determine the revised completion date.
The delays were also caused by technical and system-related issues, which affected the timely processing and disbursement of payments to the contractor. To date, the Department has not received any formal complaints from the contractor regarding non-payment of employee salaries.
The contractor has confirmed, in response to enquiries, that “all employees have continued to receive their salaries on time despite the payment delays.”
The Department further indicated that the project has experienced several delays resulting from: Work stoppages linked to local business forums, demands from SMMEs for project involvement, disruptions by learner participants in the incubation programme, delayed payments, and prolonged periods of adverse weather.
The contractor has submitted initial notifications of delays, and the detailed EOT claims are currently being prepared and assessed.
The outcome of this process will determine the full impact on the project timeline and a revised completion date.
