N-SSUBCONTRACT

AGREEMENT
Contract
DataSE

Project

Contractor

N-SSubcontractor

Contract
Date Flle UOOC

prepared
bytheJoINTBUILDING
CoNTRACTS Inc
CoMMITTEE
RECOMMENDED BYTHEJBCC CONSTITUENTS
Arso.iariono'Corsr-ction Proje.rValagers
Association of SouthAfricanQuantitySuNeyors
l\,4aster
BuildersSoulhAfr ca
SoLll-AliicarAssocidto_ or ConsuirS Ensireers
SouthAfricanlnsiituteof Archtects
SouthAfricanPropedyOwnersAssociaton
SpeciallstEngineerlng Contraciors Committee

J B C CS E R T E S
2 0 0 0 E d i t i o n5 , 0 C o d e 2 1 0 2 - S Eo JULY2007
CONTRACT DATA - CONTRACTOR

1.0 CONTRACTING PARTY

1.1 N/S Subcontractor

Postal address

Code

Tel Fax E-mail

Tax / VAT registration No

[1.2] Physical address

Tel Fax E-mail

2.0 SECURITIES
2.1 Security
The security provision selected is:

2.1.1 Variable Construction Guarantee (yes/no)

[14.3]

2.1.2 Fixed Construction Guarantee and Payment Reduction (yes/no)

[14.4]

2.1.3 Advanced Payment is required. W here “Yes”

[14.5] (Amount)

2.1.4 An Advance Payment Guarantee to be provided

[14.5] (yes/no)

2.1.5 Note: W here neither 2.1.1 nor 2.1.2 are elected the contra cto r, in his sole discretion, may apply
a payment reduction in terms of 14.7.1 of the n/s agreem ent

3.0 PAYMENT AND ADJUSTMENT OF PRELIMINARIES

3.1 Paym ent of Prelim inaries
The payment of preliminaries shall be according to the o p tion selected by the contractor. The
am ount included in each m o n th ly paym ent certificate in respect of preliminaries as stated in the
contract data shall be:

3.1.1 Option A
Assessed by the principal agent as an amount prorated to th e valu e of the work duly
executed in the same ratio as the preliminaries bears to the contract sum excluding:
C The amount for preliminaries
C Any contingency sum
C Any am ount in respect of CPAP
All inclusive of tax

3.1.2 Option B
Calculated from the priced items in the b ills of quantities/lum p sum docum ent. The
contractor and the principa l a g e n t shall agree on a division of the priced preliminaries
items into:
C An initial or establishment charge
C A monthly charge
C A final or disestablishment charge
All inclusive of tax

In arriving at such a division cognisance shall be taken of such factors as:

C Premiums for annually renewable insurance policies
C Plant, scaffolding and the like remaining the property of the contractor or the hiring
company and the capital costs thereof not treated as part of the initial charge

W here the initial construction period is extended the monthly charge shall be recalculated
on the same basis as was originally applied but taking into account the revised construction
period and the amounts already paid to the contractor

N/S C ontract D ata - N /S Subcontractor - Page 2

 Should th e c o ntractor and the principal agent be unable to agree such division then the
principal agent shall make a division of the am ount of preliminaries to be incorporated in the
valuations for each monthly paym ent certificate

3.2 Adjustm ent of prelim inaries

The amount or items of preliminaries shall be adjusted to take account of the theoretical financial effect
which changes in time and/or value have on preliminaries. Such an adjustm ent shall be based on the
particulars provided by the contractor fo r this purpose in terms of Option A or B and shall preclude
any further adjustment of preliminaries

Adjustment of preliminaries in terms of Options A or B shall apply notwithstand ing the actual
employment of resou rces by the contractor in the execution of the works. The adjustment of
preliminaries shall be based on the option as selected in the contractor’s tender

For the adjustment of the preliminaries both the contract sum and the contract value shall exclude:
C The amount of preliminaries
C Any contingency sum
C Any am ount in respect of CPAP
All inclusive of tax

3.2.1 Option A
The amount of preliminaries shall be adjusted in the following categories:
C An amount which shall not be varied
C An amount which sh all b e varied in proportion to the contract value as compared
with the contract sum
C An amount which shall b e varied in proportion to the construction period as
compared to the initial construction period excluding revisions to the
construction period fo r w h ich the contractor is not entitled to adjustment of the
contract value in terms of the agreem ent

The contractor shall, within fifteen (15) working days of taking possession of the site, give
the principal agent a break d own, subdivided into the above categories, of the amount for
preliminaries in tabulated form, all to the satisfaction of the principal agent

Should the contractor fail to provide such information within the period stipulated then the
am ount for preliminaries shall be deem ed to be subdivided into the following proportions:
C 10% (ten per cent) which amount shall not be varied
C 15% (fifteen per cent) which amount shall be varied in proportion to the contract
value as compared with the contract sum
C 75% (seventy-five per cent) which amount shall be varied in proportion to th e
construction period as compared with the initial construction period

For a lump sum document, should th e contractor fail to identify the amount for preliminaries,
then such an amount shall be deemed to be 7,5% (seven and a half per cent) of the contract
sum excluding:
C Any contingency sum
C Any amount in respect of CPAP
All inclusive of tax

W here sectional completion is required in term s of the agreement, the contractor shall
provide the principal agent with the division of the above categorised amounts into sections.
Should the contractor fail to provide such info rmation within the period stipulated the
categorised amounts shall be prorated to the value of each section

3.2.2 Option B
The contractor shall, within fifteen (15) w o rk in g days of taking possession of the site,
provide the principal agent with a detailed breakdown of the amount for preliminaries. This
breakdown shall set out, among others, full particulars o f ad m in istrative, supervisory and
other personnel, plant, transport and other resources and charges included in the am ount for
preliminaries. The contractor shall show the periods to which the individual item s relate with
the charge rate for such items by mean s o f a p ro g ram m e all to the satisfaction of the
principal agent

W here sectional completion is required in terms of the agreem ent, the contra cto r shall
provide the principal agent with details of the resources required for each section and those
that are c o m mon to sections. Should the contractor fail to provide such information within
the period stipulated, Option A shall apply

3.2.3 Paym ent certificate cash flow

The contractor shall provide all reasonable assistan c e to the principal agent in the
preparation of c ash flow projections of claims for paym ent certificates where required by
the em p lo yer. The projections shall be based on the program m e and shall be updated as
and when the program m e requires updating. The cooperation of the contractor in terms
of this item shall not prejudice his right to receive payment in terms of the agreem ent

N/S C ontract D ata - N /S Subcontractor - Page 3

3.2.4 The contract value shall be adjusted according CPAP[3.1] (yes/no)

3.2.5 Payment of preliminaries [3.1.1-2] (A or B)

3.2.6 Adjustment of preliminaries [3.2.1-2] (A or B)

4.0 EMPLOYER CHANGES TO JBCC STANDARD DOCUMENTS

4.1 Changes (if any) in terms of the N/S Contract Data - Employer are accepted
W here “No” an addendum referenced to this clause is to be attached (yes/no)

5.0 THE TENDER

5.1 This tender is to be submitted to the principal agent at the street ad d ress provided in the invitation to
tender before the tender closing date and time stated therein

5.2 By the submission of this tender to the employer the tenderer offers and agrees to contract for,
execute and complete the works for the tender sum as stated below

5.3 Tenders will be opened in p u b lic d irec tly after the stated closing time. Only the total tender sum as
stated in each tender will be announced

5.4 The lowest or any tender will not necessarily be accepted

5.5 This tender shall rem ain in full legal fo rc e fo r th irty (30) calendar days. The tenderer accepts liability
for damages as m ay b e suffered by the employer should the tender validity period not be honoured

5.6 This tender takes into accoun t all listed items [4.0] for the purpose of preparing and submitting this
tender

5.7 The successful tenderer will be appointed in terms of the JBCC N/S Subcontract Agreement

5.8 TENDER SUM COMPILATION Am ount

5.8.1 Tenderer’s work including prime cost am ounts

5.8.2 Em ployer allowances stated by the principal agent

5.8.3 SUB TOTAL

5.8.4 Add tax on 5.4.3

5.8.5 TO TAL TENDER SUM inclusive of tax

In words

Thus done and signed at on

Place Date

Name of signatory Capacity of authorised signatory

As witness for and on behalf of the tenderer who

warrants authorisation hereto

N/S C ontract D ata - N /S Subcontractor - Page 4