Construction World July 2015

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CONSTRUCTION WORLD JULY 2015
default, (iv) stop the practice whereby clients
can withhold payments, (v) allow the charging
of interest on late payment and (vii) allow a rapid
and mandatory form of dispute resolution with
a specified timeframe.
Wilhelm du Plessis
Editor
@ConstWorldSA
>
COMMENT
EDITOR
Wilhelm du Plessis
ADVERTISING MANAGER
Erna Oosthuisen
LAYOUT & DESIGN
Lesley Testa
CIRCULATION
Karen Smith
TOTAL CIRCULATION:
(First Quarter ’15)
4 698
PUBLISHER
Karen Grant
PUBLISHED MONTHLY BY
Crown Publications cc
P O Box 140
BEDFORDVIEW, 2008
Tel: 27 11-622-4770 • Fax: 27 11-615-6108
The views expressed in this publication are not necessarily those of the editor or the publisher.
PRINTED BY
Tandym Cape
The Construction Industry Development Board’s
(cidb) Prompt Payment Regulations and Adju-
dication Standard appeared in the Government
Gazette on 29 May and is open for discussion for
the next 60 days. These regulations will dramati-
cally change the way in which the South African
construction industry operates.
The underlying reason for these regulations
is to ensure that there is positive cash flow in
the industry – this will obviously be beneficial
for much needed infrastructure development.
Without these regulations, and in the current
status quo, contractors often end up financing
projects. Or worse still: late payment has caused
the demise of many companies – or led to severe
financial constraints.
These regulations legislate a standard set of
payment provisions and introduce adjudication
as a first step of dispute resolution – within 28
days (which may only be extended by 14 days
– and only in certain circumstances). These
regulations will only be applicable to the public
and private sectors: home building contracts
(protected by the Housing Consumer Protection
Act of 1998) are excluded.
In summary, these regulations seek to:
(i) put an end to the ‘pay-when-paid’ practice,
(ii) enforce regular payments within a certain
time frame, (iii) allow for the suspension of
construction activities if there is payment
Sustainable supplement
Construction World will be publishing its
first supplement for sustainable construc-
tion – Sustainable Construction World –
in October this year. It will have the same
circulation as the main magazine and
also the same target audience. This is
the ideal opportunity to publicise excel-
lence in sustainability: projects, new prod-
ucts, equipment and techniques. Contact
me directly should you wish to discuss
editorial contributions.
It is also the ideal vehicle to reach
the target audience that will use these
very products, services and equipment.
For advertising enquiries contact Erna
Oosthuizen, our advertising manager,
whose contact details are elsewhere
on this page.
Thedeadlineforadvertisingbookings
is 31 July 2015.
In South Africa, but also elsewhere in
the world, the practice where payment
for construction projects is withheld
from contractors due to employer
budget constraints (the pay-when-paid
practice); the link to performance; and
only upon completion of a project (or
even only until after disputes have been
resolved) will soon come to an end.