Several contractors at the Savannah City housing project in Midvaal are up in arms after a middle-man company that subcontracted them filed for liquidation before paying them.

Yesterday, about 36 contractors brought their workforce to the offices of Savannah City Development, the main contractor based at the development to protest. Workers burnt tyres and blocked the road with rocks.

Johnny Moeketsi, who is part of the committee representing contractors, said they were contracted to Dryden Construction - a main contractor at Savannah City Development.

"Dryden Construction filed for liquidation. we got paid for October and in November we continued to work. At the end of the month we did not get paid. In December we could not work and the project came to a standstill," he said.

The contractors said they are owed R1.1m which they have to use to pay salaries for their workers and the expenses of buying equipment and material.

Moeketsi said meetings have already taken place in which the main contractor committed to resolving the problem.

Savannah City is the biggest housing project under construction in Gauteng. It is expected to yield 18,000 housing units. These include fully and partially subsidised houses and bonded assets. The development is expected to cost about R24bn.

The contractors said they were expected to build 500 houses and have already built about 300. The protest got ugly yesterday as workers attempted to tear down the fence, demanding that managers come and address them.

Management at Savannah City Development had to call the police, saying they were being held hostage.

Project manager Dumisani Zitha said they were doing all they could to resolve the problem.

"We do not owe these contractors but it is Dryden that owes them money. Unfortunately [he] has filed for liquidation and has failed to pay them. We are meeting the liquidator on Tuesday to find a way to pay these contractors," Zitha said.

"As the main contractor we are concerned about this situation because it has halted the project."