City of

Johannesburg Development Agency

No 3 Helen Joseph Street Tel +27(0) 11 688 7851 (O)

The Bus Factory Fax +27(0) 11 688 7899/63
E-mail: info@jda.org.za
, 2000 2107

www.jda.org.za
To: All news editors www.joburg.org.za
For immediate release
20 March 2020

ORCHARDS CLINIC UPDATE

Construction of the Orchards Clinic state-of-the-art primary health care facility in Orange
Grove has once again been suspended after the main appointed contractor, Fikile
Construction (Pty) LTD, failed to meet the September 2019 deadline to complete
construction of the clinic.

The Johannesburg Development Agency (JDA), on behalf of the City of Johannesburg, has
been implementing the construction the clinic and appointed Fikile Construction (Pty) LTD,
who took over site in April 2019, after a specialist subcontractor was appointed to create a
design solution for construction as a corrective measure following allegations of structural
under-design by the previously appointed engineer.

Directors
M Ntanga (Chairperson) F Brink (Acting CEO) S Moonsamy (CFO) S Jensma TG Sambo JW Karuri -Sebina EF Peters K Govender P Zagaretos R Shirinda (Company Secretary)
Registration Number: 2001/005101/ 07
Remedial works were undertaken by the specialist subcontractor and all efforts were
focused on ensuring that the structure complies with the new structural design. Additional
steel beams and columns were added throughout the building to create a stronger structure
and the remedial works were completed in March 2019.

Since the remedial works completed, Fikile Construction (Pty) LTD were appointed in April
2019 to ensure the completion of the project by September 2019. With the September 2019
deadline missed, the JDA placed the main contractor on terms for failure to complete the
new clinic.

This resulted in Fikile Construction (Pty) LTD submitting a recovery programme, for the
construction of the clinic, which also resulted in a failure to complete the clinic as part of the
recovery plan.

The JDA had issued Fikile Construction (Pty) LTD with a final warning, with Fikile proposing
to bring a credible contractor to undertake the completion of the clinic on their behalf.
Negotiations between Fikile Construction and the new contractor were completed by end of
January 2020.

The JDA exercised due diligence in respect to the management of the contract with Fikile
Construction (Pty) Ltd, as it stands Fikile Construction has now ceded the construction to
another contractor and work at the clinic has resumed.

Ends

Issued by:
Johannesburg Development Agency
Susan Monyai
Email: smonyai@jda.org.za