ZA  Market guide

Construction payment in South Africa

South African contracts are usually JBCC, NEC or FIDIC. There is no statutory security-of-payment regime, so the payment cycle and the dispute timetable come from the contract itself rather than from an Act. VAT applies at 15%, and the certificate rather than a statutory notice drives payment.

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10 guides for South Africa

South Africa The interim payment certificate under JBCC in South Africa On a JBCC contract the principal agent issues an interim payment certificate, and that certificate, not the application, is what fixes the sum the employer must pay. 6 min read South Africa JBCC payment terms versus the government thirty days in South Africa A JBCC certificate is payable in about fourteen days. A state invoice under the PFMA is payable within thirty days. Two regimes, two clocks, both counted in calendar days. 6 min read South Africa Valuing variations on a JBCC contract in South Africa A variation only becomes money when it is valued and certified. On JBCC the principal agent instructs, the quantity surveyor prices, and the certificate carries it. 6 min read South Africa Retention on a JBCC contract in South Africa Retention is money the employer holds back on each certificate as security. On JBCC it comes off the gross, and it releases in stages tied to completion. 5 min read South Africa VAT at 15 per cent on a payment certificate in South Africa VAT sits on the net figure of a payment certificate, after retention, at 15 per cent. Knowing net from gross keeps the SARS return and the certificate in step. 5 min read South Africa Cash flow forecasting on the South African payment cycle A cash flow forecast turns the JBCC certificate cycle and the government thirty day rule into dated money in and money out, in calendar days. 6 min read South Africa Closing the final account on a JBCC contract in South Africa The final account settles the contract sum against everything that happened, the variations, remeasures, retention and adjustments, in one agreed figure. 6 min read South Africa Extension of time and delay notices on a JBCC contract in South Africa An extension of time moves the completion date and protects the contractor from penalties. On JBCC it starts with a timely notice and stands on records. 6 min read South Africa Practical completion on a JBCC contract in South Africa Practical completion is the point the works are handed over and put to use. On JBCC it stops penalties, starts the defects period and releases retention. 5 min read South Africa Payment timeline, recovery statement and adjudication in South Africa Counting the payment timeline in calendar days, using the JBCC recovery statement, and reaching a decision through contractual adjudication rather than a statute. 6 min read

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