Authorising transactions: Why directors can’t afford to get it wrong
In the corporate world, the way transactions are authorised is not mere red tape; it is the cornerstone of accountability, transparency, and compliance. Yet, in South Africa, many boards and shareholders treat it as an afterthought. The consequences of getting it wrong can be devastating, including invalidating transactions, personal liability for directors, and crippling shareholder […]
Arbitration Bulletin | Arbitration Time Bars
Introduction Many standard form contracts in the construction industry contain provisions to the effect that, if a party fails to take a given step in the dispute resolution process, the party is barred from taking the dispute forward for determination by arbitration. All is not lost, however, because section 8 of the Arbitration Act, 42 […]
Do You Know with Whom You Are Doing Business?
Companies are an excellent way to pool capital and to embark on business ventures whilst minimising personal exposure to business risks. Without them, many a budding entrepreneur would not be prepared to take the leap of faith necessary to change the world. However, the use of companies can also create confusion about who it is […]
The Sum of Scattered Parts: What Constitutes the Contract of Insurance?
AIG South Africa Limited and Others v Azrapart (Pty) Ltd and Another (898/2024) [2025] ZASCA 172 Azrapart (Pty) Ltd and Accelerate Property Fund Limited, the plaintiffs in the litigation, were co-owners of the Fourways Shopping Mall in Sandton. As a result of the Covid-19 pandemic in 2020, the plaintiffs and their tenants experienced disruptions to […]
Arbitration Bulletin | Sidestepping an Arbitration Agreement: Take Two
The Arbitration Act, 42 of 1965 (“the Act”), makes provision for the Court, on good cause shown, to: set aside an arbitration agreement; or direct that any particular dispute is not dealt with by arbitration. Eskom SOC Limited took out a management liability insurance policy with AIG South Africa Limited, which provided liability cover to […]
Is a contractor’s capacity a relevant factor to exclude their bid
It frequently happens that contractors may be working on a number of projects, which may limit their organisation’s capacity, either financially or in terms of its manpower, etc., to execute further works. It is also common that a particular employer may issue a number of projects simultaneously and may look to then provide varied work […]
No time like the present – when can consultants charge time-based fees?
Projects often run into delays. A common question that arises is whether consultants/professionals can claim additional fees due to the period of delay. Often, consultants agree to a value-based fee, meaning that the amounts they can charge are linked to the overall value of the work. In circumstances of delay, consultants often feel that they […]
Can a JBCC contract be cancelled where there is no Principal Agent?
The JBCC Contract requires the appointment of a Principal Agent, who acts as the employer’s representative and plays a key role in issuing contract instructions, certifying payment certificates, and adjudicating the contractor’s claims. The contract cannot operate as intended without an independent Principal Agent to fulfil this role. It is neither advisable nor permissible for […]
Municipal Water Delivery: Operation Vulindlela Phase 2
Introduction Operation Vulindlela was introduced by the Government to remove obstacles holding back economic growth. Phase 2, announced in May, seeks to address the problem of municipal dysfunction and infrastructure collapse. A key focus of Phase 2 of Operation Vulindlela is to achieve water infrastructure reform, which aims to: a. address the root causes of […]
Joint Ventures in Construction and Infrastructure Projects: Balancing Opportunity and Risk
Joint ventures have become a defining feature of the construction and mining landscape in South Africa. They are used by contractors to pool skills, resources and capital in order to secure and deliver large projects that may be out of reach for a single contractor. At their core, joint ventures are a means of cooperation. […]