BUSINESS AND TRAINING
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schedule in accordance with the current programme, a revision of the date for practical completion and / or an adjustment of the contract value is probably not justified.
• If a delay event occurs – all SfCC / SfSC require that the( sub) contractor give notice to the PA / CA( PCr) within the stipulated period to assess the event speedily and / or instruct remedial action, or the( sub) contractor loses the opportunity to claim.
• The PA / CA may involve the SC, where applicable, in the preparation of a claim for the revision of the date of practical completion and / or an adjustment of the contract value. The PCr must inform the SC of the outcome of a claim and update the programme where the date for practical completion has been revised.
• The( sub) contractor must submit a detailed claim as soon as a claim can be quantified to the PA / CA( PCr) – who must accept, reduce or reject such claim within the stipulated period.
Note: The PCr is entitled to an extension of time and additional costs to complete the subcontract-works due to the insolvency of a nominated subcontractor [ 23.2.9 ], or termination of a nominated, or selected subcontractor due to default of the employer and / or agents.
Note: The PCr is not entitled to an extension of time and / or additional costs to complete the subcontract-works due to termination and replacement of a subcontractor where the employer and / or agents are not in default.
Damages and penalties Note: Time is defined to be‘ of the essence’ by specifying the‘ period for construction’ or the intended‘ date for completion’ of the( sub) contract works at the tender stage. Failure to complete the works is a breach of contract in‘ delict’( SfS), entitling the employer to recover a stated penalty amount from the contractor, and / or the contractor may recover‘ proven damages’ from the SC, and vice versa, to be no worse off had this breach not occurred.
Note: Where the SC fails to meet the agreed dates for interim, practical or final completion of the works as a whole – or a section thereof – the PCr may be entitled to recover damages.
The subcontractor may:
• If delayed by the PCr and other subcontractors, recover damages from all other contractors.
• Be liable to the PCr for damages where the( revised) date for interim or practical completion of the subcontract works as a whole – or a section thereof – is not achieved.
Note: Only JBCC contracts differentiate between‘ penalties’ applicable in the relationship between the employer and the PCr and( proven)‘ damages’ in the relationship between the contractor and the subcontractor.
Note: Recent international editions of SfCC refer to‘ stated damages’ – equivalent to‘ penalties’ in the South African( and Namibian) context of the Conventional Penalties Act 15 of 1962.
Note: If a VAT-registered entity imposes a fine or penalty, the transaction will be subject to VAT if the fine or penalty relates to the supply of goods or services.
Note: FIDIC contracts refer to‘ delay damages’ per day not exceeding the amount stated in the CD.
Note: GCC contracts refer to‘ penalty for delay’ per day not exceeding the amount stated in the CD.
Note: NEC contracts refer to‘ damages’ per day not exceeding the amount stated in the CD. PA
October 2025 Volume 31 I Number 08 www. plumbingafrica. co. za