The realm of construction is a small one, when one considers the relatively limited number of participants in the industry.
A joint venture partner on one contract may be a competitor in the tendering process on the next.
A situation may arise where, as an example, a Contractor (lets call it Tardy Construction) to a particular contract fails to complete the works on time, rendering it liable to the Employer (lets call it Impecunious Employer) for penalties. At the same time, Tardy Construction and Impecunious Employer may be parties to an entirely separate second contract where, the Engineer having issued a payment certificate, Impecunious Employer fails to make timely payment.
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Written by Michelle Kerr.
Kerr was admitted as an attorney in 2008. She is currently employed as an associate at MDA Consulting (Pty) Ltd, who provide specialist services in the formulation, motivation and quantification, both for the promotion as well as the defense of, all forms of construction contract claims. Kerr completed a Bachelor of Laws (LLB) degree, cum laude, in 2005 and a Master of Laws (LLM) degree, in medical law, in 2007.
Edited by: Niel Coertse