Completion of the 17-storey Braamfontein South Point student accommodation project, in Jorissen street, will, most likely, be delayed by a year and only be ready in time for the start of the 2021 academic year, South Point CFO Johan Wheeler told Engineering News Online this week.
Construction on the building, which will provide 1 200 beds for University of the Witwatersrand students, has been stopped as the main contractor Liviero Building is likely to be liquidated.
Only two of the 17 storeys have been completed.
The project, valued at about R276-million, was initially expected to be completed in time for the 2020 academic year.
South Point is uncertain as to when construction will resume at the site.
Wheeler told Engineering News Online that South Point is reviewing its legal options.
“Looking ahead, these steps would most likely entail a termination of the contract and putting the project out to tender again and, upon completion of that process, the appointment of a new principal construction contractor,” he noted.
Liviero entered into business rescue in July, as a result of financial difficulties, Wheeler told Engineering News Online.
The appointed business rescue practitioner has since determined that there is no reasonable prospect of Liviero trading out of its financial difficulties and has launched an application in the High Court for its liquidation.