Doubts over force majeure claims due to strikes leave contractors vulnerable
Appeal court creates grey area by casting doubt on aspects of high court ruling in claim against Sanral
In a country such as SA, where industries are highly unionised and aggrieved, unskilled and semiskilled labourers constitute a large proportion of the workforce, and strikes frequently threaten the successful completion of a construction project on time and within budget.
The Construction Industry Development Board has reported that strikes in the industry are responsible for 8% of the total loss of productivity across all economic sectors. According to the labour department’s 2014 annual industrial action report the construction industry contributed 128,516 collective working hours and 8% of working days lost to strikes...