WHAT ARE OUR MAIN ISSUES & CONCERNS WITH GFIP CONSTRUCTION COSTS?

In this paper, OUTA goes broader than a benchmarking exercise to expose the extent of the exorbitant inflation of the GFIP cost to society. This time around, OUTA engaged with experienced industry experts (road construction engineers and quantity surveyors) and conducted a range of price estimation methodologies to arrive at its “fair value” price-tag for GFIP. This was made possible by using tender documents of one of the work packages it obtained, as well as other key quantity details and significant input obtained from a number of GFIP presentations given by SANRAL and the construction companies between 2008 and 2013.

In addition, OUTA gathered more information on other road construction projects (internationally and closer to home), which offered further benchmarking evidence pointing to an excessively inflated price of R17,9bn paid by SANRAL for the GFIP.

Today, OUTA reiterates its opinion that the GFIP has been overpriced. Using more accurate information, OUTA calculates the price of the project to be between R8bn and R8,7bn , resulting in an estimated overpayment to the tune of between R9bn and R10bn for this project.

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