Third building firm sues for millions

THE Port Elizabeth High Court has ordered the Nelson Mandela Bay Municipality to pay damages to a construction company after it terminated a contract because it believed the company was not able to complete the project timeously.

Primat Construction CC argued that it was not allowed back on site despite informing the municipality of the reasons for the delays – which included low cash flow due to numerous late payments by the municipality and weather disruptions.

Primat Construction also said it had suffered losses of nearly R11-million and that the reasons for being behind schedule had been acknowledged by the municipality.

By agreement, the matter went to trial on two issues – the first being if the court could rule on whether the company would be entitled to claim damages.

According to the judgment, Judge Elna Revelas said the municipality should pay the firm's costs to date, including the costs of senior counsel. - Lee-Anne Butler