KZN contractors face blacklisting for substandard, incomplete work

Delivering incomplete and substandard work is over, as such contractors are to be blacklisted by the Department of Public Works and Infrastructure in KwaZulu-Natal.

At least seven contractors are currently at risk of being blacklisted, as revealed by MEC Martin Meyer yesterday.

The move was welcomed by the Public Works and Infrastructure Committee, which stated that the government will not tolerate poor service delivery.

But contractors have said the government must be fair when holding them accountable for incomplete projects. MEC Meyer noted that substandard work by contractors has been very costly for the department, as it often has to be redone by different contractors.

He made these remarks while addressing members of the media yesterday on various matters concerning the department, including the progress being made to ensure that contractors who have completed work for the government are paid on time.

“The issue of shoddy contractors continues to be a thorn for us, as KZN Public Works and Infrastructure. Contractors have become too comfortable delivering substandard work with full pay and zero consequences. This has created a legacy of undesirable projects, many of which end up costing more than they should because a new contractor has to be brought in to complete the job of the first contractor,” said the MEC.

He said this pattern resulted in the department losing money and credibility. "The client loses trust in us, and the public loses faith that their hard-earned taxes are being used effectively. Well, those days are now officially over."

“Under the new KZN Public Works and Infrastructure policy, every contractor that delivers substandard quality work will face consequences, starting with blacklisting to ensure they don’t return to do business with us. In this regard, seven contractors have been identified and will be blacklisted in adherence to the Public Finance Management Act,” he added.

MEC Meyer explained that under the law, the department had afforded the entities the opportunity to provide submissions. He revealed that some entities had responded, and budget constraints and poor cash flow were among the reasons given for them being unable to complete the scope of works. Furthermore, he stated that his department is also working to address the issue of non-payment of contractors.

“Over the past few weeks, it has emerged that a number of contractors were negatively affected by non-payment. They had not been paid for work completed at various stages and amounts. The primary cause of this issue was that KZN Public Works had not received payment for several projects completed on behalf of client departments.

"At various intervals or stages of construction, KZN Public Works and Infrastructure would receive payment from the client, which would then go towards paying the contractors. Therefore, when payment for a particular stage is not received from the client, we are unable to pay the contractor, resulting in the contractor walking off the site."

He stated that their inter-departmental accounts balance as of 31 March 2025 was just over R800 million. The department successfully received payments totalling R300 million in May, reducing the balance to R500 million.

The department concluded the financial year with R491 million in payments owed to service providers and municipalities that could not be released. Additional payments were captured during April and May 2025, increasing the amounts owed to service providers and municipalities to R543 million. The department successfully released payments totalling R374 million in May, reducing the amounts owed to service providers and municipalities to R169 million.

“This achievement means that the Department of Public Works and Infrastructure will now be in a position to settle payments within the 30-day period as stipulated by the Treasury. This is a first for the department in a long time,” he said.

Wonder Jaca, the secretary general of the Black Business Federation, said while the government should deal with contractors who fail to complete projects, it should also be aware that departments don’t pay on time.

“The government must be fair; it must deal with negligent contractors not completing projects. But it should take into account that departments don’t pay on time. There are departments that have not paid contractors since November last year. How can you hold people accountable for incomplete projects on the one hand while also not paying them to work on those projects?” he questioned.

Chairperson of the Public Works and Infrastructure Committee Nhlanhla Msimango said those contractors that were not performing must be dealt with. “We cannot play with service delivery; when you have been given an opportunity, you must perform. What we will not accept is when business people are being ill-treated and are not paid on time.

"That is why we appreciate the department's improvement in paying service providers because failing to pay them, especially the emerging contractors, affects their cash flow and damages their business.”

THE MERCURY