. In the Eastern Cape, the provincial Department of Health did not take prompt action to cancel contracts where contractors did not show the required progress and/or where the quality of work did not meet the standards. Four projects were identified where contracts were only terminated approximately two years after the planned completion dates of the projects. The actual construction cost of one project amounted to R142 million at the time of the termination, which was 36% more than the original contract amount of R105 million. The tender was advertised to appoint a replacement contractor. However, as the tender for the completion of the project was R57,6 million, additional construction costs owing to the non-performance of the original contractor was estimated at R95 million which was 90% more than the original contract amount.