Firm says the case is significant for SA’s construction sector, ‘which is plagued and held ransom by unlawful community actions’
Aveng says it will appeal a court ruling that the SA National Roads Agency can go ahead with claiming damages from the construction group over an incomplete R1.7bn project.
However, a court blocked the construction company’s bid to stop Sanral from claiming damages for not completing the project. The contractors said the matter was “critically important … to the broader South African construction industry, which is plagued and held ransom by unlawful community actions of the nature experienced by the Aveng-Strabag joint venture”.“Sanral, despite itself having suspended the works on site for 83 days for the same reasons, took the approach that there was no force majeure and that the Aveng-Strabag joint venture’s termination constituted an abandonment of the contract.
Aveng said the joint venture had a right to terminate the contract after being prevented from working on the site by “community unrest, protest action and threats of violence against its personnel related to community demands made against Sanral”.The decision to end the contract “will be vindicated by the facts when properly ventilated and considered through the dispute resolution provisions of the contract”, it said.
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