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South Africa decisions
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Housing Development Agency v Khavhakone Construction Group (Pty) Ltd (22632/2022) [2025] ZAGPPHC 506 (16 May 2025)
Leave to appeal was refused after the court found no reasonable prospects of success in a dispute over interim payment certificates and contract valuation.
Alto Management CC v Wingtip Crossing Shopping Centre (Pty) Ltd (59545/2018) [2024] ZAGPPHC 808 (12 August 2024)
The court held that interim payment certificates under a JBCC building contract bound the employer, rejected arbitration and factual-dispute defences, and ordered payment.
Umlazi Civils Pty Ltd v Concor Construction t/a Conradie Development and Another (20967/2021) [2023] ZAWCHC 161 (10 July 2023)
The court held that the FIDIC contract did not confer on interim payment certificates an absolute or temporarily final right to payment in the face of a dispute. The contract's arbitration and adjudication provisions expressly allow for certificates to be opened up, reviewed, and revised by the arbitrator. The authorities relied on by the applicant do not establish a general rule of binding effect for interim certificates; rather, the effect depends on the specific contract terms. The employer retains the right to raise contractual defences and set-off, and the disputes regarding the certifie…
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Lonerock Construction v South African National Roads Agency (SOC Limited) [2023] ZAGPPHC 527; 89831/2018 (27 June 2023)
The court found that the contract did not entitle the defendant to object to or amend an Interim Payment Certificate once issued by the engineer. The plaintiff was entitled to payment as certified in IPC 36, as the contract only allowed for corrections in subsequent certificates, not withdrawal or cancellation of an existing certificate. The defendant's refusal to pay P&Gs and CPA was not contractually justified, and the differential treatment of SMMEs did not alter the plaintiff's rights under the main contract. The subsequent signing of a revised IPC 36 did not amount to waiver or acquiesce…
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Riverside Chuene Construction CC v MEC, Department of Education Limpopo Province (70284/2013) [2014] ZAGPPHC 357 (12 June 2014)
The High Court ordered the respondent to pay a contractor under JBCC interim certificates, holding that dispute resolution was not compulsory on these facts.
Shamla Chetty t/a Nationwide Electrical v TBP Building and Civils (Pty) Ltd and Another (13677/2010) [2011] ZAKZDHC 67 (8 June 2011)
The court dismissed an application for production of payment certificates, holding that a contractual dispute had arisen and had to go to arbitration.
Khasu Engineering (Pty) Ltd v Naledi Local Municipality and Others (1201/10) [2010] ZANWHC 26 (30 September 2010)
The court found that the applicant's claim for payment under interim certificates issued pursuant to the first contract survives the termination of that contract. However, the respondent Naledi Local Municipality established, on the papers and applying the Plascon-Evans rule, that it had overpaid the applicant by R46,094,026.75. The law and the terms of the first contract permit Naledi to set off this overpayment against the applicant's claim. The limitation of set off to 10% per certificate in the second contract does not apply to claims arising under the first contract, as the applicant's c…
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Shelagatha Property Investments CC v Kellywood Homes (Pty) Limited, Shelfaerie Property Holdings CC v Midrand Shopping Centre (Pty) Ltd (542/93, 558/93) [1994] ZASCA 190; [1995] 2 All SA 135 (A) (1 December 1994)
The Supreme Court of Appeal held that the contractor's right to payment under interim certificates issued prior to cancellation of the building contract due to the employer's breach constitutes an accrued right, independent of the executory part of the contract. Clause 23 of the contract, which governs cancellation by the contractor, preserves accrued rights and provides for a final accounting, but does not extinguish the contractor's entitlement under prior interim certificates. The Thomas Construction case does not establish a general rule barring enforcement of interim certificates after c…
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