Build contractors compensated?

build contractors compensated?

building contractors may seek compensation for time lost and costs incurred by power cuts, master builders south africa (mbsa) said on tuesday.

in a statement, mbsa president eunice forbes said eskom's power generation problems and the implications for the building sector were a "huge cause for concern".

"building contractors may well seek compensation for the time loss and costs incurred due to the electricity supply problem.

"this issue also impacts significantly on health and safety conditions on building sites," said forbes.

she said it appeared that one worker may have died "directly as a result of load shedding".

no further details about the incident were immediately available.

"mbsa has commissioned an investigation into the potential contractual liabilities," forbes said.

the mbsa had not been able to quantify the potential negative impact on the industry and contractors, but a survey was underway to gather more information from members about the estimated overall effect on their contracts.

mbsa chief executive pierre fourie said the challenges facing employers did not stop with the unreliable supply of electricity.

"the industry, particularly the residential sector, is already under pressure from rising interest rates and is starting to show more than just a slowdown in growth," he said.

developers regularly experienced delays in building plan approvals and re-zoning applications, which had an effect on builders' programmes, in addition to the required ancillary services.

"moreover, builders may face potential uncertainties concerning the availability of building materials in future because of load shedding's effect on material manufacturers."

the mbsa and its member companies supported eskom's call to south african industries to reduce electricity consumption, fourie said.