Epoxy and Tiling Report

In early May, Nathan presented me with an epoxy quotation submitted by Mike Sibanda for payment
to Concrete Flooring Solutions. The work was quoted at $52 000 and included the supply and
installation of epoxy floors for four structures (see attached). Nathan expressed concern that we had
no available funds in our CSR accounts and would need to finance the activity from other operations.
I reached out to the site QS for clarification, but they were unaware of this quotation.
We subsequently had a meeting with Mr. Sibanda at the Mberengwa site where I raised the issue of
the quotation. He gave us permission to seek other subcontractors if we could find a cheaper option.
During the meeting, I inquired if anyone knew of other epoxy contractors. It was brought to my
attention that they had previously worked with someone on the maternity ward, but their quality of
work was unsatisfactory.
After the meeting, I came across an advertisement for an epoxy contractor on our official Gateway
email. I requested that the team on site send me drawings so that I could forward them to the potential
contractor for pricing. Hadassah Construction then quoted $39000 for the same scope of work. I sent
the quotation to the team at site who approved of the lower price. (see attached)
The engagement of the contractor was to be expedited due the need to commence works on the 26
Bed Ward immediately as the program was now behind schedule. We conducted our due diligence
exercise and inspected some of Hadassah Construction’s work at Red Cross offices in Harare. After
verification, a contract was drafted and signed with Hadassah Construction on May 3rd, 2023.
Hadassah Construction required a deposit of $15000 to procure materials with the remainder to be
paid at month-end once work had been completed. The deposit was paid on May 4th, 2023 for
Hadassah Construction to begin procurement and mobilize to site the following week.
On May 8th, 2023 while I was away on study leave, Nathan called me to inform me of a scope
change. Instead of using epoxy flooring throughout all four structures, we were now using tiling on
three structures and epoxy for the theatre only. I immediately called Hadassah Construction to stop
them from procuring more epoxy materials due to the reduced scope. Hadassah had already purchased
some materials.
I renegotiated the contract to allow for an addendum to change the scope with Hadassah Construction
doing tiling work instead. Hadassah Construction agreed to this change and an addendum was signed
on May 15th, 2023 (see attached). I then requested that Hadassah Construction submit a new
quotation for supply and installation of tiling work while also asking Clement Shumba to submit a
build-up of rates for supply and installation of tiles which came in at $29/sqm. Hadassah
Construction’s rate came in at $30/sqm including transport.
On May 22nd, 2023, Mr. Sibanda requested a site meeting to discuss delay and quality issues on site.
At the meeting, I informed Mr. Sibanda that we were waiting for him to provide us with a sample of
the required tile so that procurement could begin. I also mentioned that the epoxy contractor had
raised concerns about the quality of screed in the theatre being unsuitable for epoxy and needing to be
redone and smoothed.
Mr. Sibanda indicated that he was procuring tiles for the Mortuary and Laundry while Gateway would
procure materials for the 26 Bed Ward. On May 30th, 2023, Mr. Sibanda and I met with Hadassah
construction at Union Hardware to pick out a tile sample. Mr. Sibanda then informed me that he was
now procuring materials for the 26 Bed Ward instead of the other two structures.
Hadassah Construction approached me and asked why their scope was being continuously reduced. I
renegotiated again stating that we would honor our contract with them but reduce their quotation by
the material cost. The final account of the contract was for supply and installation less the cost of free-
issued materials. (See attached)
Hadassah Construction commenced flooring work on June 2nd, 2023. Over the weekend, I received
reports from site that there had been delays due to inadequate clearance on aluminium doors for tiling
since they had been installed with epoxy flooring in mind. There was also a shortage of adhesive on
Sunday and Hadassah Construction were unable to work.
On June 5th, 2023, I received a call from Mr. E Msipa concerning progress on site. As I was
explaining the situation, I heard Mr. Sibanda responding in the background. He seemed unhappy with
my response as I was unaware that I was on a three-way call and speaking to Mr. Msipa in confidence.
Mr. Sibanda then stated that he was calling another subcontractor to do work in the 26 Bed Ward.
I asked if this was the correct course of action and who would pay for it since we had already
contracted someone for the work and had not communicated our grievances so that they could address
them. Another contractor was subsequently engaged for the 26 Bed Ward.
After these events, we had a meeting with Mr. E Msipa to discuss money owed to Gateway
Construction by Hadassah Construction since they did not complete all contracted work. We then had
another meeting with Mr. Sibanda where it was resolved that Hadassah Construction would have to
pay back the outstanding balance from the 26 Bed Ward works.