{
  "id": 18288785,
  "title": "City of Cape Town’s non-payment threatens survival of construction company",
  "url": "https://urgent.news/2026/11/05/city-of-cape-towns-non-payment-threatens-survival-of-construction",
  "topic": "world",
  "section": "World",
  "published": "2026-11-05T09:52:32.000Z",
  "source": {
    "name": "The Citizen",
    "slug": "the-citizen",
    "url": "https://www.citizen.co.za/business/city-of-cape-towns-non-payment-threatens-survival-of-construction-company/"
  },
  "original_language": "en",
  "account": "The Cape-based construction firm Baseline Civil Contractors is in financial distress and currently undergoing business rescue. They are currently facing a significant dispute over a final payment of approximately R10 million owed to them by the City of Cape Town. This dispute pertains to the Macassar housing project, which spanned five years and concluded in June 2024. Baseline's director, DC Geldenhuys, explained that the company agreed to adhere to the adjudicator's ruling, which involves making any due payments while retaining the right to seek further legal action if necessary. According to Geldenhuys, the adjudication process is crucial for contractors to meet their commitments and maintain operations while disputes are being resolved.\n\nA disagreement over the final account was escalated to an independent adjudicator under the terms of the contract's dispute resolution clause. Subsequently, Baseline sought to enforce the adjudicator's decision through the high court. The court ruled in Baseline's favor in August 2026, overturning the city's appeal and awarding Baseline's legal costs. However, the city has appealed the high court's judgment, extending the uncertainty surrounding the resolution of this payment dispute. The city has refused to make the alleged final payment while its appeal is pending. Despite this, the city has claimed that it has already paid the amounts due, with the dispute centered around a second adjudicator's ruling, which the city asserts is not enforceable due to the adjudicator exceeding his jurisdiction. The city maintains that it has complied with its obligations and disputes the validity of the adjudicator's corrected decision and the subsequent Contract Price Adjustment (CPA) determination. The ongoing legal proceedings have put Baseline in dire financial straits, threatening its survival and the livelihoods of its employees and suppliers.",
  "summary": "City paid R5m - despite adjudicator and high court agreeing that a corrected amount of R11.5m applies.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "IOL",
        "title": "Elderly couple, 94-year-old woman robbed as Cape Town’s northern suburbs fear linked attacks",
        "url": "https://urgent.news/2026/11/02/elderly-couple-94-year-old-woman-robbed-as-cape-towns-northern",
        "published": "2026-11-02T14:20:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}