10 BUSINESS AND TRAINING
• Note: The subcontract contract period – not defined in JBCC agreements – extends from the date of acceptance of the tender until the expiry of the latent defects liability period, five years from the date of final completion of the works.
• Note: Unfortunately the date of practical completion is the key date in the contract after which the employer( subject to the issue of the statutory occupation certificate) may occupy the premises.
Subcontractor payments
• Payment criteria should be recorded in the contract data of all standard-form( sub) contracts – defining the interval and / or the due dates for payment applicable until the final payment is made. Some SfSC provide a payment certificate proforma, others list‘ items’ to be included in a payment certificate;
• The PCr must timeously co-ordinate the payment claims from all subcontractors and submit these with its regular claim to the principal agent / contract administrator( pa / ca) for payment by the employer by the date stipulated in the SfCC;
And
• The PCr must make payment to all subcontractors and suppliers within the period stipulated in the SfCC, failure to do so is a breach of the SfSC;
• The subcontractor is entitled to interest( at the rate recorded in the SfCC-CD or SfSC-CD) on the outstanding balance from the due date for payment until the actual date of payment. is received from the employer after following the non-payment procedures in the SfCC.
• The CA / PA must issue a‘ recovery statement’ to the pcr with every payment certificate showing set-off transactions between the parties;
• The PA must issue a‘ payment notification’ to each subcontractor with every payment certificate to record the amount included for each( nominated / selected) subcontractor in the current payment certificate due to the PCr;
• The PCr must, with every‘ payment advice’, issue a‘ subcontract recovery statement’ to each subcontractor showing set-off transactions between the parties;
• The amount in a‘ payment notification’ and a‘ payment advice’ may differ, shown in the‘ subcontract recovery statement’,“ with reasons”; for exampe, PCr deducting‘ charges’, or interest on late payment;
• A‘ payment advice’ is a‘ liquid document’ in law enabling the subcontractor to apply to the court for‘ summary judgment’ if no payment is received after following the non-payment procedures in the SfSC;
• The PCr may delay payment to subcontractors by up to 30 days to resolve non-payment by the employer to the PCr. 2018 JBCC NSSA Edition 6.2 Clause 15.14( Author’ s comment: Unfair to the SC who is entitled to payment by the PCr regardless of payment to the PCr – beware!).
If JBCC SfCC is used, following JBCC terminology: Note: The JBCC payment certificate form is the most comprehensive of such forms of all SfCC – permitting easy tracking of payments, deductions, etc.
• A payment certificate is a liquid document in law enabling the PCr to apply to the court for‘ summary judgment’ if no payment
Note: The concept of a‘ pay less notice’ from the employer to the PCr, and / or the PCr to a subcontractor, is not recognised or incorporated in local SFCC / SfSC in South Africa as its legality is dubious. The purpose is to allow the employer, or the PCr, to motivate‘ why and how much money’ is to be withheld from the amount certified for payment – to be rectified before the next payment cycle. PA
www. plumbingafrica. co. za @ plumbingonline @ plumbingonline @ PlumbingAfricaOnline February 2026 Volume 31 I Number 12