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The Constitutional Court handed down judgment on 30 November 2022 in answer to this question. In a unanimous judgment, the Constitutional Court had to consider whether a tenderer, deprived of success in a tender by the State’s intentional misconduct, could claim damages in delict for loss of profit. The appeal to the Constitutional […]
CAN AN UNSUCCESSFUL TENDERER CLAIM DAMAGES FOR LOSS OF PROFITS? The Supreme Court of Appeal had to recently consider whether an unsuccessful tenderer could claim damages for loss of profits as a result of an Organ of State’s breach of its constitutional duties. The tender concerned the award of a contract to a joint venture in […]
The Construction Industry Development Board (CIDB) has implemented a new Standard for Minimum Requirements for engaging Contractors and Subcontractors on Construction Works Contracts (‘the Standard’). The Standard was published in the Government Gazette on 9 November 2018 and is now in effect. The Standard establishes minimum requirements in the appointment of principal contractors and subcontractors on construction works […]
The proposed amendments to the Regulations of the Construction Industry Development Board Act should have significant consequences for the construction sector. One of the stated aims of the regulations is to deal with late payment by employers resulting in the potential for contractors and subcontractors to "fund" the employer's contruction project. Main contractors usually insert […]
What happens when a main contractor enters into business rescue proceedings or liquidation and a subcontractor finds itself not being paid despite having carried out work? The Johannesburg Hight Court followed by the Supreme Court of Appeal had to deal with the issue a little while back. Buzzard Electrical had carried out work for a […]
NV PROPERTIES (PTY) LIMITED VS RADON PROJECTS (PTY) LIMITED The Grahamstown High Court delivered a judgment on 17 May 2012 which serves as a reminder that our Courts are strict in requiring claims procedures set out in building contracts to be followed. FACTS OF THE CASE Radon Projects ("the contractor") was employed by N V […]
