Abstract:
Smooth cash flow ensures the effective delivery of projects and is fundamental 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
(UK), 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 local building and construction
contractors and consultants have the same problems as their international counterparts (if not
more so) when it comes to payment of work completed or services rendered. In light of the
above this article investigates the legal remedies available to enforce right of payment for work
completed or services performed, to determine the effectiveness of the said remedies, and to
suggest what possible solutions there are in order to improve payment practices in the South
African building and construction industry.
