New contractor to be appointed for Chantelle Housing Project

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06-06-2025
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Pretoria Rekord
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Tshwane says the original contractor failed to meet key milestones despite multiple attempts to resolve the issues through the project’s principal agent.

The Chantelle social housing project is no longer expected to experience delays after standing incomplete for months.

The delays had frustrated residents, however, the Tshwane metro recently confirmed that a new contractor is expected to be appointed in the next financial year.

The housing development, which was expected to alleviate the growing demand for affordable rental units in the north of Pretoria, has been at a standstill for months after the metro terminated the contract of the previous service provider due to slow progress and ongoing performance issues.

Metro spokesperson Lindela Mashigo said no units are currently occupied.

“Some shell units are still incomplete, and Housing Company Tshwane (HCT) cannot accommodate tenants prior to finalising construction and securing all necessary approvals.”

According to Mashigo, the original contractor failed to meet key milestones despite multiple attempts to resolve the issues through the project’s principal agent.

Eventually, the decision was made to terminate the contract, as described by the metro, in the best interests of all stakeholders, including the community, HCT, and the municipality.

With construction completely halted, residents and potential tenants were left disheartened.

Community members say the unfinished structures have become an eyesore and a symbol of mismanagement.

“It’s heartbreaking. We were promised homes and dignity, but all we have are empty shells and broken promises,” said Mecha Ramorula.

The metro now claims that the entire development will only be completed during the 2026/27 financial year, pushing the timeline back significantly.

“It feels like we’re being strung along. Every year, there’s a new excuse. How much longer must we wait?” asked David Mofokeng.

While the metro confirmed that only approved work has been paid for, concerns remain about the project’s financial sustainability.

Additional funding has been requested from the Social Housing Regulatory Authority (SHRA), but a response is still pending.

“The final stages of the project are dependent on SHRA’s allocation of funds,” said Mashigo.

“However, steps are being taken to ensure tight budget control once construction resumes. This includes deploying a qualified resident engineer and a dedicated HCT site representative to monitor progress and approve work.”

Despite the reassurances from the metro, many residents are calling for greater transparency and community consultation. “This project was meant to change lives. Now it’s just another government project lost in bureaucracy. We need to know who is being held accountable.”

The metro initially set the budget at R52.8-million, but it has been scaled down to R20-million due to several challenges, primarily associated with the contractor’s performance.

The reduction has also led to a decrease in the annual target for housing units, causing delays and impacting the overall timeline for the project’s completion.

Metro spokesperson Selby Bokaba previously told Rekord that the primary reason for the budget reduction is the slow progress by the contractor responsible for the project.

The contractor failed to meet the agreed timelines, affecting both the financial and non-financial targets outlined in the project’s business plan.

“This underperformance necessitated a reassessment of the budget to reflect on the contractor’s capabilities and the realistic progress of the project,” said Bokaba.

He added that the annual target for building the Chantelle social housing units has been decreased from 156 to 50.

Out of the 156 units planned for Phase 1A, only 82 units have reached the shell level.

The project aims to make housing affordable for residents earning between R1 850 and R22 000 per month.

Designed to cater to a variety of accommodation needs, it will consist of 930 two-bedroom, 112 bachelor and 56 studio units as well as a variety of amenities and services for residents.

These include playgrounds and sports fields, as well as landscaped areas for residents to enjoy.

Despite the budget reduction and lowered targets, HCT remains committed to addressing the housing needs of low-income residents.

Bokaba reaffirmed that the plan to deliver 1 098 units at Chantelle remains intact.

“To mitigate potential negative economic impacts due to these changes, HCT has implemented initiatives such as prioritising local labour, supporting small and medium-sized enterprises through subcontracting opportunities. It is also launching community development programmes that provide skills training and business support,” he said.