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MDA in the news

Exceptional international events and construction contracts – the nightmare continues

There’s no doubt that several exceptional international events have occurred over the last few years, particularly from the start of 2020, which have had and will continue to have long-lasting effects on the entire construction industry.

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Covid-19: Rethinking public sector tenders and contracts

Despite the likelihood that the Covid-19 virus will be with us for many months to come, it appears that public sector construction tenders are not including clauses in their contracts to deal with the global outbreak. MDA Attorneys recently reviewed several tender packages and their accompanying contract conditions posted for public sector work.

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Rise of the South African “construction mafia”.

The construction industry is one of the sectors which contributed to the recession in SA. One of the reasons for the decline in the sector, is the so-called construction mafia. MDA Attorneys director, Odette Potgieter, talks to Kyknet Verslag correspondent Lourensa Eckard.

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Aveng: State’s approach to construction mafia is ‘contradictory’

Government moots using Prevention of Organised Crime Act; listed group claims Sanral wants to pass all the risk onto contractors…. Construction and technology law specialist MDA Attorneys warned last month that amendments to Sanral’s standard contract will make it much more difficult for contractors to deal with disruptions related to the construction mafia.

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Infrastructure projects could save SA’s ailing construction sector

However, policy certainty and commitment to resolving critical issues are first required from the government, writes MDA Attorneys director Euan Massey

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Coronavirus hits South African construction firms

Local construction projects are being impacted by indefinitely delayed shipments of construction material due to the Coronavirus. MDA director, Natalie Reyneke, discusses the impact with Cathy Mohlahlana of Newzroom Afrika.

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Sanral`s new standard contract raises force majeure threshold

Amendments to the South African National Roads Agency Limited`s (Sanral`s) standard contract have made it significantly more difficult for contractors to deal with disruptions caused by the construction mafia, warns construction and technology law specialist MDA Attorneys.

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Fairer alternatives to on-demand bonds needed to help distressed contractors

CONSTRUCTION projects are complex and risky. For this reason, the viability of the industry requires forms of securities, including on-demand bonds, says Kelly Stannard of MDA Attorneys.

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Junk status – what it means for the construction industry

Recently SA’s credit rating was downgraded by two rating agencies. MDA Director, Chris Bennett, talks to eNCA correspondent Duduzile Ramela, about the possible impact on the construction industry.

Adjudicator appointments under the NEC Option W1 – when do the time lines start to run?

Different contractual arrangements for construction contracts require different dispute resolution processes. This is therefore not a “one size fits all” situation.

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Polarisation leads to serious problems in SA construction industry

Why are so many construction contracts in SA over budget, late and being carried out at the expense of good relationships between the parties? Ian Massey, MDA Director, believes that polarisation in the construction industry is at the root of the problem.

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Arbitrations and adjudications are on the rise in the construction industry

MDA Director, Euan Massey, talks to eNCA’s Motheo Kgoripe, about the need for more trained adjudicators in South Africa.

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More adjudicators needed for new regulations

With the implementation of the Prompt Payment Regulation and Adjudication Standard for construction contracts imminent, MDA Attorneys laments the lack of adjudicators in the industry to deal with disputes. `The proposed regulations require that all dispute…

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Payment rules set to change sector

This type of security- for-payment regulation that regulates aspects of the payment processes and also introduces a system of statutory adjudication as a mandatory first step in the dispute resolution process on construction projects is important for the sustainable development of the construction industry in SA, according to Vaughan Hattingh, Director and specialist adjudication practitioner with MDA Attorneys.

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Be careful who you contract with

Chris Bennett, MDA Director, talks to CNBC Africa’s Guguletu Cele, on the growing rate of liquidations in the construction industry. Contractors and sub-contractors are warned that payments can be clawed back from them if their contracting counter-party winds up in liquidation.

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Construction companies and liquidation

As bankruptcies of contactors in the construction industry rise at a rate of five liquidations a month, contractors and subcontractors are being warned that payments can be clawed back from them if their contracting counter-party winds up in liquidation.

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Four ways to ensure a successful contract

Ian Massey, Director, says that there are four ways to ensure the satisfactory outcome of any construction contract.

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Increased Demand for Adjudicators in the Construction Sector

Vaughan Hattingh, Director and adjudication practitioner with MDA, says: “For several years, South African courts have supported the adjudication procedure by implementing a robust approach in enforcing adjudicators’ decisions repeatedly.

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Increased demand for adjudicators in the construction sector

Vaughan Hattingh, Director and adjudication practitioner with MDA, says that adjudication has been implemented by the South African construction industry for many years as the preferred dispute resolution procedure.  He explains that enforcement of the adjudicator’s decision is critical to the success of the prompt payment regulations.

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Alternative dispute resolution can stimulate construction industry

Vaughan Hattingh, Director and adjudication practitioner with MDA, says there are many lessons from Malaysia as well as the UK, Singapore and Hong Kong, that can be applied in South Africa. “The SA regulations are well crafted and the development of alternative dispute resolution will assist the construction industry to grow by providing binding guiding principles accepted by individuals, corporations and state-owned entities,” he said.

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