Midiro Civils and Construction CC and Another v Engineerex (Pty) Ltd and Another (HCAA03/2024 ; A5472/2018) [2025] ZALMPPHC 46 (14 March 2025)

Midiro Civils and Construction CC and Another v Engineerex (Pty) Ltd and Another (HCAA03/2024 ; A5472/2018) [2025] ZALMPPHC 46 (14 March 2025)

The court held that the Engineer is contractually bound to issue a payment certificate within seven days of receiving the Contractor's monthly statement, regardless of the extent of work performed. The process for raising dissatisfaction is clearly set out in the contract, allowing the Employer to object only after certification. The court a quo erred in finding that the relief sought negated the contract and in treating certification as a jurisdictional requirement for payment. The issuance of the payment certificate is a prerequisite for the Contractor to submit an invoice and for the Employer to pay. The appeal was upheld, and the Engineer was ordered to issue the payment certificate...

Citation
[2025] ZALMPPHC 46
Parties
Appellant: Midiro Civils and Construction CC; Appellant: Lebaka Construction (Pty) Ltd; Respondent: Engineerex (Pty) Ltd; Respondent: Collins Chabane Local Municipality
Court
Limpopo High Court, Polokwane
Jurisdiction
South Africa
Judgment Date
14 March 2025
Case Number
HCAA03/2024 ; A5472/2018
Procedural Posture
Civil Appeal / Appeal From Order of Court a Quo
Outcome
Appeal upheld; order of court a quo set aside and replaced.
Judges
Ngobeni, G. Muller, M. Makoti
Legal Topics
Specific Performance, Construction Contracts, Payment Certification, Contractual Obligations
Commercial and Corporate Civil Procedure Specific Performance Construction Contracts Payment Certification Contractual Obligations

Case Brief

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Parties

Midiro Civils and Construction CC

Appellant

Lebaka Construction (Pty) Ltd

Appellant

Engineerex (Pty) Ltd

Respondent

Collins Chabane Local Municipality

Respondent

Procedural Posture

Civil Appeal / Appeal From Order of Court a Quo

Legal Issues

  1. 1 Whether the Engineer is obliged to issue a payment certificate after receipt of the Contractor's monthly statement, regardless of the extent of work performed.
  2. 2 Whether the court a quo erred in finding that the relief sought negates the contract provisions.
  3. 3 Whether the certification process is a jurisdictional requirement for payment under the contract.

Ratio Decidendi

The court held that the Engineer is contractually bound to issue a payment certificate within seven days of receiving the Contractor's monthly statement, regardless of the extent of work performed. The process for raising dissatisfaction is clearly set out in the contract, allowing the Employer to object only after certification. The court a quo erred in finding that the relief sought negated the contract and in treating certification as a jurisdictional requirement for payment. The issuance of the payment certificate is a prerequisite for the Contractor to submit an invoice and for the Employer to pay. The appeal was upheld, and the Engineer was ordered to issue the payment certificate...

Court Disposition

Appeal upheld; order of court a quo set aside and replaced.

Orders

  • Engineerex (PTY) LTD (First Respondent) is ordered to issue a signed payment certificate number 15 to the Employer (Second Respondent) and the Contractor or JV (First and Second Appellants) for the amount the Engineer considers due, within seven days of this order.
  • The Contractor shall submit the tax invoice, if required by law, to the Employer for payment as required by clause 6.10.4 of the GCC.