And 2020 started with a bang! Disputes were flying left, right and centre with Contractors struggling to stay afloat in these trying economic times. 

A pertinent issue at the start of the year was the ever-looming construction mafia. Although we’ve been talking about them for ages, mainstream media is starting to catch on, and the fact that these guys are a huge threat to our construction industry is starting to be realised. Click on this link for some interesting reads on the construction mafia. 

However, all that aside, the Corona virus is the current challenge for all! Several governments around the world have chosen to implement a complete lockdown to prevent the spread of the virus. It is estimated that currently a third of the world’s population is on lockdown.

So…what have we at CAASA been up to this year? We had some exciting things planned which are now all hanging in the balance.  

As you know, we are a developing non-profit organisation run by volunteers. As we believe that adjudication is one of the most effective ways of resolving disputes, one of our main goals is to ensure that we promote the most highly qualified and experienced adjudicators out there – we feel that the adjudicator is absolutely key to the success of an adjudication. Hence, we have quite a few requirements for making it onto our panel. Currently we have 25 members on the panel, and we are receiving applications regularly. Thank you for your support!

Last year we finalised the drafting of our “standard documents”, which include a suggested adjudication clause, a set of adjudication rules and a template adjudicator’s agreement. We introduced these at our Annual General Conference.

Now that we have a great panel and all our documents in order, our focus for 2020 is marketing CAASA. While CAASA has been named in quite a few contracts as the nominating body we want to increase this number. The plan is to embark on lots of marketing campaigns this year, some of which will include public conferences, which our members will all be invited to.  

Our next function will be the annual general meeting. Given the current uncertainty we’re all in, we will be announcing the date for this at a later stage – watch this space.

As CAASA membership is growing, we’re looking for some new volunteers to serve on our executive committee. So, if you’re interested in adjudication and share the same goals as us, please come along to the AGM as voting will take place then.

We’ll be in touch as soon as the time is right to announce dates for upcoming events. For now, stay safe and enjoy some light reading – see all the links below. 

Kelly Meijers, CAASA Secretary

Kathu Solar Park (RF) (Pty) Ltd v Terry Mahon (First Respondent) and Liciastar (Pty) Ltd (Second Respondent)

The applicant, Kathu Solar Park (RF) (Pty) Ltd contracted with the second respondent, Liciastar (Pty) Ltd in terms of an Engineering Procurement and Construction contract (the contract) to construct a solar power plant. A dispute arose between the parties regarding the imposition of Delay Liquidated Damages (DLDs) by the applicant. Read 
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The MDA Adjudication Survey is now in its fifth year. This is the only survey of its type in South Africa and provides some anecdotal statistical insight regarding the use of adjudication in our local industry. In 2019, MDA handled 56 adjudications, an increase from 2018 where we handled 35 adjudications.
View survey 


Common disputes and how to minimise/avoid them

The choice of an appropriate standard form construction/building contract (SfC), or a bespoke contract, must be determined at project initiation when the scope and parameters are defined. The more information and the greater the resolution of direct and peripheral matters the better the ultimate delivery of the project in accordance with defined quality and performance criteria for delivery on time and within budget and to limit/avoid possible disputes.
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The parties’ rights and obligations to resolve contractual disputes
In the typical (employer design/contractor execution) standard-form contract (SfC) the principal contractor’s obligations  vis-a-vis the employer and subcontractors are described and likewise the respective rights and obligations between the principal contractor and a subcontractor are described in the standard-form subcontract (SfS). Similar provisions are included in standard professional services contracts (PSC) between the employer and each consultant. Read more.