South Africa construction industry was on hold for five weeks due to the Covid-19 pandemic. These has made the construction industry to suffer with contractor been affected the most.
Even before the temporary closure of activities in the sector, it was already having a steep decline as only few company has the cash reserves to remain sustainable in the current environment.
These was made know by construction and technology law specialist MDA Attorneys. According to the firm, the most pressing concerns for contractors are surviving the lockdown and navigating the impact of the ‘construction mafia’, where work is halted by local business groups demanding work or financial reward.
The firm also said taking cost recovery action is crucial for contractors during the this period, where contracts make provision for it.
MDA Attorneys said contractors are advised to submit required notices timeously, keep detailed records and ensure these are signed off by the relevant responsible person. The speedy submission of certificates for payment is also advised.
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