DELAYS CAUSED THROUGH INDUSTRIAL ACTION

Members may be aware that there is no Bargaining Council or minimum wage for the Building Industry in KwaZulu-Natal.

Union representatives have however indicated that they wish to have the Sectoral Determination for wages in the Civil Engineering Industry extended to the Building Industry.

As SAFCEC, (the South African Federation of Civil Engineering Contractors) on behalf of the Civil Engineering Industry, reports a deadlock with current wage negotiations, there is concern about labour unrest spilling over from the Civil Engineering Industry to the Building Industry.

With the above in mind, Members are reminded of the following relevant provisions of the JBCC Principle Building Agreement:

• Clause 29 provides that the Contractor is entitled to a revision of the date for Practical Completion (but not an adjustment of the contract value) where delays are caused inter alia through civil commotion, riot, strike or lockout.
• Clause 29.4  provides that where the contractor is of the opinion that there are circumstances that will cause a delay then the contractor shall:
  • Give the Principal Agent reasonable and timely notice of the circumstances and
  • Take reasonable steps to avoid or reduce the delay and
  • Within 20 working days of becoming aware of the potential delay, notify the Principal Agent of his intention to submit a claim for a revision of the date for Practical Completion. A failure to do this will result in the claim lapsing

Important

• Clause 29.5 provides that the contractor must submit the claim for delays within 40 working days of the delay ceasing. A failure to do this will result in the claim being forfeited.

Bruce Lyle | Member Services Manager