The importance of precision: Major win under FIDIC adjudication in South Africa
We are proud to share that the Construction Team at LnP Beyond Legal has secured a significant victory in a high-stakes FIDIC adjudication. The adjudicators dismissed the Contractor’s multi-billion rand claim – accepting our legal team’s interpretation and application of the FIDIC provisions governing extension of time and associated cost claims.
The DAB preferred our interpretation of clause 2.1 [Right of Access to Site] to be given its ordinary meaning, with its application limited to access to and possession of Site or a part of the Site. It does not extend to the provision of equipment or supply of material or goods to enable the Contractor to progress its works in accordance with a clause 8.3 programme.
We relied on the 1993 South African appellate division case of Imprefed v National Transport Commission – once the Employer provides access to Site or a portion of the Site by the dates contemplated that obligation is discharged.
Our team also argued that under South African law the imposition of implied terms when dealing with express terms under FIDIC: means there is no need to interpret an implied term of “preventative conduct” into clause 2.1, where the entitlement and appropriate remedy lies in clause 8.4(e) of FIDIC, which allows an extension for time (but no costs) for any delay or impediment caused by the Employer.
It would be contrary to the express meaning of the terms under FIDIC to read-in an implied term of preventative conduct into clause 2.1, where there is a remedy to recover costs, where an entitlement exists under clause 8.4(e) – which excludes costs. Reading in such an implied term would be contrary to the express meaning of the well-established standard form contract.
The DAB’s decision confirms that the express terms of the FIDIC contract must be given effect as written—without implying remedies or forms of relief that contradict or override the plain language of the contract.
This outcome is a significant win not only for our client, but also for the integrity of using standard form contracts in infrastructure and construction projects in South Africa.
It reinforces a vital principle: where parties have adopted the FIDIC standard, the risk allocation and remedies provided must be respected as agreed—not reconstructed by implication. This is in keeping with the Golden Principles as well.
At LnP Beyond Legal, we continue to support our clients in complex disputes where clarity, precision, and a deep understanding of standard form contracts make all the difference.
This outcome represents a massive cost saving for our client and reinforces the importance of precision in both contractual drafting and legal strategy when it comes to construction and infrastructure disputes.
Our team’s technical understanding of the FIDIC suite, paired with a deep appreciation of the project’s facts and commercial drivers, ensured that our client’s position prevailed.
For more insight on navigating FIDIC provisions, book a session with construction law specialists Ricardo Pillay and Nikita Lalla.