Pro-Serve Consulting Botswana has set out a detailed account of events leading to the termination of its contract with Tau Grading and Building Construction on the Modipane-Mabalane road project, maintaining that it acted strictly within the contract and in the public interest.
According to Pro-Serve, the dispute traces back to 29 August 2025, when Tau Grading submitted Interim Payment Certificate (IPC) 10. Under the parties’ agreement, Pro-Serve pays subcontractor invoices after receiving corresponding funds from the Ministry of Transport and Infrastructure, a practice that had been followed consistently for nine prior payments since the contract commenced on 1 October 2024. Pro-Serve says it acknowledged receipt of IPC 10 and promptly arranged for a joint valuation by government representatives, which took place on 16 September 2025.
However, on 2 September 2025, Pro-Serve representatives on site were confronted with an unexpected suspension of works after Tau Grading trucks were instructed to park and stop operations. Pro-Serve says it immediately queried the instruction, only to be informed shortly thereafter that it had come from Tau Grading’s directors. Pro-Serve maintains the suspension was unlawful and in breach of the contract, which requires a 21-day notice before any stoppage of works.
Pro-Serve emphasises that, at the time of termination, there was no payment breach, noting that it had previously advanced P10 million to Tau Grading to ease cash-flow pressures and accelerate progress on site.
Tau Grading later wrote to Pro-Serve citing delayed payment and asserting that payment was due within five days of invoice submission. Pro-Serve responded that this demand was inconsistent with the contract and reiterated that no government valuation had yet been completed at that time. On 9 September, Pro-Serve issued a formal “Notice to Correct,” calling on Tau Grading to resume work by 16 September. No response was received.
Pro-Serve further alleges that Tau Grading began unauthorised demobilisation of equipment from the site, compounding what it describes as abandonment of the project. After repeated warnings went unanswered, Pro-Serve issued a Notice to Terminate on 16 September, giving Tau Grading 14 days to vacate. The contract was ultimately terminated on 1 October 2025 for failure to remedy breaches.
Pro-Serve emphasises that, at the time of termination, there was no payment breach, noting that it had previously advanced P10 million to Tau Grading to ease cash-flow pressures and accelerate progress on site.
Meanwhile Tau Grading has maintained that it submitted a substantial invoice for work done and that non-payment triggered its decision to suspend operations.
Tau Grading approached the High Court on 11 November 2025 on an urgent, ex parte basis and obtained an interim interdict halting works. Pro-Serve says the case has been postponed three times, each at Tau Grading’s instance, and argues that the repeated delays amount to an abuse of process. Judgment, which was expected to be delivered on December 22, 2025, has been postponed to the 9th of January2026. Pro-Serve warns that prolonged inactivity has left completed works exposed to damage from seasonal rains, potentially costing millions of pula. The consultant says it reserves the right to pursue a damages claim for deterioration of the site, arguing that basic care and protection should have continued despite the legal dispute.
Meanwhile Tau Grading has maintained that it submitted a substantial invoice for work done and that non-payment triggered its decision to suspend operations. Its director has argued that the company was entitled to protect its interests, insisting that the amount invoiced was due and that suspension was justified. Tau Grading has said it retains rights over improvements made on site pending settlement and has questioned the lawfulness of the termination.
Pro-Serve, however, rejects these claims, insisting that contractual procedures were ignored and they only acted after sustained non-compliance.
