The contracts were awarded by the SA National Road Agency Limited (Sanral) and are spread over three years.
Group Five's share as the lead contractor will be about half of the total value.
The contracts form part of Sanral's seven contracts for the first phase of the Gauteng Freeway Improvement Project (GFIP), amounting to a total of R11,5bn. The work is scheduled to be substantially completed for the 2010 World Cup.
Group Five's contracts comprise lane additions and improvements to interchanges on the N1 freeway between Soweto and 14th Avenue, and the N3/N12/N17 freeway complex including Reading and Elands interchanges.
"These contracts are in line with our stated strategy of focusing on larger, higher-margin South African infrastructure contracts with longer lead times. Importantly, they are in close proximity to our construction materials quarries, which will allow for the efficient delivery of materials," said Group Five CEO, Mike Upton.
Group Five's acquisitions of raw materials makers Quarry Cats and Sky Sands last year will come in handy for the cost-efficient completion of these contracts.
In line with Sanral's request for a combination of large, medium and smaller contractors on the contracts, Group Five's joint venture partners include Power Construction, Liviero, Bophelong and Umso. The group has partnered with some of these companies before.
Power Construction is a Cape-based organisation which has recently established a foothold in the Gauteng market, specialising in road-surfacing and rehabilitation. Liviero Civils is a bulk earthworks and roadwork company operating in and around Gauteng. Bophelong Construction is a Gauteng-based BEE roads company. Umso Construction is an Eastern-Cape BEE construction company, which Group Five helped establish a number of years ago. – I-Net Bridge
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