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chemicals to the meeting by Mkhululi Mamba (Chief Building Officer).

“In attendance at the meeting were the Quantity Surveyor of the Ministry of Public Works and Transport, Mpendulo Mvubu; the Director of Tornado Construction, Abner Shongwe; representatives from Kamanga & Associates; and representatives from Global Professional Services (Pty) Ltd,” he added.

It was mentioned in the application that at this meeting it was agreed that in view of the certificate of practical completion and the final account having been issued after the defects period, the first and third respondents were to issue out the retention release certificate to facilitate the release of the retention money due to the applicant.

VARIOUS ENGAGEMENTS

“However, notwithstanding various engagements over the years, this directive has not been adhered to and consequently, the applicant has not been able to facilitate the release of its retention monies withheld by the second respondent due to the unjustifiable non-release of the retention release certificate,” mentions the application.

Retention is the customary practise of withholding monies to cover defects and incomplete work, due from the payer to the payee in construction contracts that are deducted from stage payments during the construction phase and then released when the project is completed.

The first half of the retention is paid when the project is completed, whereas the second half is paid following the expiration of the defect liability period.

The purpose of retention is to ensure that the contractor properly completes the activities required of them under the contract. Retention can also be applied to nominated sub-contractors, and the main contractor may also apply retention to domestic sub-contractors.

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