Maykent (Pty) Ltd v Trackstar Trading 20 (Pty) Ltd

Maykent (Pty) Ltd, a KFC franchisee, concluded a construction contract with Trackstar Trading 20 (Pty) Ltd in February 2006 for alterations and additions to premises in New Town, Johannesburg. The contract was concluded partly orally, partly by conduct, and partly with reference to standard JBCC 2000 terms commonly used in the construction industry. Tertius Rabe Property Services CC (TRE) acted as the principal agent for Maykent. The agreed completion date was extended due to variation orders. Trackstar completed the works and submitted a final account, but Maykent failed to make final payment, alleging that no certificate of final completion and final payment certificate had been issued by TRE as required by the JBCC agreement. Trackstar instituted action for payment in 2008. A final payment certificate was only issued by TRE in 2013, shortly before trial.

The appeal was dismissed with costs. The High Court’s order directing Maykent to pay the amount certified, together with interest at the prescribed rate from the date of summons, was confirmed.

The case is significant for South African construction and contract law because it clarifies that standard-form construction contracts such as the JBCC do not automatically apply in full merely because they are commonly used or partially referenced. The judgment emphasises that the true terms of a contract must be determined from the parties’ conduct and evidence, and that employers cannot rely on formal certification requirements to unjustifiably delay payment.