Razzmatazz Civil (Pty) Ltd and Another v MEC: Free State Provincial Government: Department of Police, Roads and Transport (2547/2019) [2023] ZAFSHC 375 (6 October 2023)

Razzmatazz Civil (Pty) Ltd and Another v MEC: Free State Provincial Government: Department of Police, Roads and Transport (2547/2019) [2023] ZAFSHC 375 (6 October 2023)

The court found that the suspension of works was not attributable to the court interdict, as instructions to suspend were issued prior to the granting of the interdict. The defendant acquiesced to the interdict, which does not constitute vis major. The plaintiffs' claim was not for damages arising from breach of contract, but for contractual entitlements under clause 5.11.2 of the GCC, which provides for compensation for proven additional costs due to suspension. The evidence established that the plaintiffs incurred costs for idle equipment as required by the contract, and the rates charged were in accordance with industry guidelines. The defendant's arguments regarding excessive...

Citation
[2023] ZAFSHC 375
Parties
Plaintiff: Razzmatazz Civil (Pty) Ltd; Plaintiff: Civil Tech Construction CC; Defendant: MEC: Free State Provincial Government: Department of Police, Roads and Transport
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
6 October 2023
Case Number
2547/2019
Procedural Posture
Civil Trial / Judgment After Trial
Outcome
Plaintiffs substantially succeeded in their claims for idle construction equipment and interest on late payment; claim for OHS costs not proven.
Judges
Daniso
Legal Topics
Construction Contracts, Standing Time Costs, Quantum of Damages, Interest on Late Payment, Contractual Entitlement, Proof of Loss
Commercial and Corporate Civil Procedure Construction Contracts Standing Time Costs Quantum of Damages Interest on Late Payment Contractual Entitlement Proof of Loss

Case Brief

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Parties

Razzmatazz Civil (Pty) Ltd

Plaintiff

Civil Tech Construction CC

Plaintiff

MEC: Free State Provincial Government: Department of Police, Roads and Transport

Defendant

Procedural Posture

Civil Trial / Judgment After Trial

Legal Issues

  1. 1 Whether the plaintiffs are entitled to compensation for idle construction equipment and Occupational Health and Safety costs following suspension of construction works.
  2. 2 Whether the suspension was attributable to a court interdict constituting vis major, thereby excusing the defendant's performance.
  3. 3 Whether the plaintiffs proved the quantum of their claims for idle equipment and OHS costs.

Ratio Decidendi

The court found that the suspension of works was not attributable to the court interdict, as instructions to suspend were issued prior to the granting of the interdict. The defendant acquiesced to the interdict, which does not constitute vis major. The plaintiffs' claim was not for damages arising from breach of contract, but for contractual entitlements under clause 5.11.2 of the GCC, which provides for compensation for proven additional costs due to suspension. The evidence established that the plaintiffs incurred costs for idle equipment as required by the contract, and the rates charged were in accordance with industry guidelines. The defendant's arguments regarding excessive...

Court Disposition

Plaintiffs substantially succeeded in their claims for idle construction equipment and interest on late payment; claim for OHS costs not proven.

Orders

  • The defendant shall pay the plaintiffs R46,475,379.04 in respect of idle construction equipment.
  • The defendant shall pay the plaintiffs R575,279.46 in respect of interest for late payment of the payment certificate rendered on 26 October 2016.