Group Five Construction (Pty) Limited v Minister of Water Affairs and Forestry

Group Five Construction (Pty) Limited entered into a contract with the Minister of Water Affairs and Forestry for the construction of the Injaka Dam and related works. During execution, Group Five submitted several claims for additional payment or compensation under clause 51 of the contract after the engineer rejected those claims. Amendments to the contract introduced a dispute resolution mechanism requiring disputes to be referred to a dispute review board, whose recommendations would become final unless a party gave written notice within 60 days of its intention to refer the matter to court. Group Five gave such notices but only instituted action after completion of the works. The Minister raised a special plea that the claims had prescribed.

The appeal was dismissed with costs, including the costs of two counsel.

The case clarifies when contractual claims in construction disputes become 'due' for purposes of prescription, particularly where contracts provide for staged dispute resolution mechanisms. It affirms that prescription can commence before completion of the works if the contractual process renders the claim enforceable.