Substituting Security for a Lien
It frequently occurs that a contractor exercises a lien over construction works because of non-payment by an employer. The court has a discretion, if it considers that it is equitable to do so, to compel the contractor to deliver the works provided that the contractor’s rights are safeguarded by means of adequate security being provided […]
Setting Aside a Tender Award
UNFAIR TENDERS CAN BE SET ASIDE The High Court of South Africa, Transvaal Provincial Division, recently set aside a tender award by the Mpumalanga Tender Board and awarded the tender to the tenderer that had achieved the most points. In March 2001 tenders were invited for the rehabilitation and construction of a road in the […]
“Pay when paid” clauses
Having regard to the reasoning applied in a recent English court decision, “pay when paid” clauses may not be quite the source of comfort to main contractors as previously thought. A “pay when paid” clause is the clause that is typically put into contracts between main contractors and subcontractors stipulating that the subcontractor will only […]
Removal of an Arbitrator
If an arbitrator unreasonably delays the issue of an award, he may, upon application to the High Court, be removed as arbitrator and forfeit his remuneration. To remove an arbitrator from office, a party is required to show good cause in terms of the Arbitration Act. The Act provides that good cause includes failure on […]