JBCC® agreements provide that materials and goods supplied to the contractor or a subcontractor, become property of the employer when their value has been included in an interim Payment Certificate – and payment has been made (to the contractor) – and may not be removed without the written permission of the principal agent
Note:McKenzie’s Law of Building and Engineering Contracts and Arbitration; Ramsden, PA; Juta’& Co 2014; Page 39-41] Technically is this is a ‘vesting clause’ in compliance with SA law where ownership is deemed to pass by fictitious (constitutum possesorium) delivery.
Note: The contractor cannot pass ownership of materials and goods he does not own … the supplier may have reserved ownership until the purchase price has been paid in full! Where a private sector project is financed by a bank payment unfixed materials and goods is generally not paid by the bank;
Note: In State contracts unfixed materials and goods are excluded from an interim payment certificate
See: 6.1P-25; 5P-31.7