Eskom rejects Murray & Roberts payment claims

Posted On Tuesday, 01 February 2011 02:00 Published by Commercial Property News
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Eskom defended itself against claims by Murray & Roberts of late payment for work done at the Medupi and Kusile power stations.

Brian Bruce Murray and RobertsPower utility Eskom yesterday defended itself against claims by Murray & Roberts of late payment for work done at the Medupi and Kusile power stations, saying it was using global best practice in dealing with contractual claims.

Murray & Roberts, which is doing civil work for Eskom at the multibillion-rand Medupi power station and steel work for its Kusile power station, complained on Friday about delays in payments, saying it was not prepared to continue working without getting paid.

The company said it was a constant battle to get payment for the work it was doing for Eskom because of constant variations and design changes.

Murray & Roberts vowed to get the money owed to it, but it looks like Eskom is not prepared to give first preference to an individual contractor when it has a couple of contractors working on its projects.

SA’s second-largest construction group blamed the "slow and arduous progress" in resolving final accounts with customers for its expected loss in the six months to last month.

Eskom finance director Paul O’Flaherty said yesterday it was inevitable that there were going to be variations in projects because of the size of the projects.

"These are probably the biggest projects in southern Africa and these changes are going to happen and we are dealing with each and every claim according to the global best practice in civil engineering."

Mr O’Flaherty said the public entity was following the letter of the law in dealing with contractual disputes.

"If Murray & Roberts has a claim, we have to reply and adjudicate, and if that fails we have to go for dispute resolution. They are entitled to talk to me and the CEO because we are always open to discuss these issues."

He said Eskom needed to ensure that its projects were finished within budget without overruns, which would cost the public.

"As far as we are concerned, our projects are within budget and on track."

Murray & Roberts CEO Brian Bruce said Dubai Airport, the Gautrain and Medupi were public sector projects that had all suffered increases in their scope of works, above what had originally been designed and contracted.

He said it was a constant battle to get paid by Eskom for extra work that Murray & Roberts was doing at Medupi.

Last modified on Friday, 21 June 2013 19:31

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