When clients do not pay : a critical analysis of the legal remedies available to the South African building and civil engineering contractors and consultants

Abstract

Smooth cash flow ensures the effective delivery of projects and is essential to develop and sustain a healthy, professional and competitive construction industry. The adverse effect of late or non-payment of contractors and consultants are well known to all in the construction industry. Late and non-payment problems have forced countries like the United Kingdom, Singapore, New Zealand and Australia to introduce legislation to regulate the payment of contractors and consultants in terms of a building or a construction contract. From South African specific surveys conducted by the Construction Industry Development Board (CIDB) and Consulting Engineers South Africa (CESA) it appears that South African building and construction contractors and consultants have similar problems, if not more so, than their international counterparts when it comes to payment of work completed or services rendered.