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JBCC SERIES 2000

Principal Building Agreement - Edition 4.1

Preface
JBCC documents are compiled in the interests of standardisation and portray the consensus view of the Joint Building
Contracts Committee of good practice and an equitable distribution of contractual risk. The documentation sets out
a clear, balanced and enforceable set of procedures, rights and obligations, which when competently managed and
administered, protect the employer, contra c to r a nd subcontractors alike. It should be noted that each of the
documents has been formulated for use specifically as part of the Series 2000 and is most unlikely to be suitable for
use with other forms of contract

Warning!
This Edition 4.1 updates the this document with a comprehensive set of State provisions. This has resulted in certain
support documents having to be revised to remain compatible. A Schedule of Revisions can be found at the end of
the document. Persons entering into or preparing contracts using the JBCC Series 2000 are warned of the dangers
inherent in modifying any part of it. If it is considered essential to make changes, users are advised to ensure that
such changes are drafted by qualified legal persons with extensive knowledge of the JBCC documentation and the
construction industry. Experience has shown that changes drafted b y o thers, including members of the building
professions, often have results very different from those intended which may be prejudicial to either or both parties

The Agreement Structure

The Agreement has been specifically structured for usage by b o th the Private and State sectors. The clauses are
divided into sections that correspond as closely as possible to the projec t exec u tion sequence. W hen the employer
is a State institution clause 41.0 is enacted which results in all th e su b stitutions that are required to the standard
clauses. All affec ted c lauses are marked with a “#” and such references and substitute clauses are printed in green

A schedule of all th e required contractual variables completes the Agreement. The Agreement, in catering for both
bills of quantities and lump sum contracts, brings about a stro n g c o n sistency in the contractual language used and
the administrative procedures required. The N/S Subcontract Agreement covers both nominated and selected
subcontractors and mimics the Principal Building Agreement with all common clauses retaining the same numbering.
A few ‘blank’ clause numbers occur to maintain the common numbering system. ‘No clause’ is used w h ere th is
occurs. A comprehensive set of certificates and forms for use in ad m inistering the Agreement and other primary
documents is available

JBCC Documentation Services

Query Answering: This unique and free service is offered to all users of JBCC documentation. As a first step users
are advised to visit the JBCC web site at www.jbcc.co.za where the most frequent queries related to the interpretation
and implem entation of the Series 2000 provisions are co n tin u ally being published. Should this not resolve the issue
a query can be sent from the site or submitted by em ail to jbcc2@ mweb.co.za Queries are only answered in writing -
generally within a few working days. This service is offered as an initial guide only and m u st n ot be seen as a
substitute for professional services that may be required in relation to disputes

Docum ents Availability: Series 2000 documents are obtainable through most regional offices of JBCC constituents
as listed on the cover of this document. The JBCC supplies exclusively to constituents and does not sell d irec t to
users. JBCC can be contacted at jbcc@ mweb.co.za in relation to these services

Definitions Index: All defined words and phrases listed in 1.0 DEFINITIONS AND INTERPRETATION are also listed
on page 39 where they are cross referenced to the pages where the d efin itio n is used in the text. It is a useful aid in
finding all occurrences of the defined element

Schedule of Changes: Changes introduced to since the previous edition are tabled on page 41

Copyright Reserved
The Joint Building Contracts Committee claims authorship of this work. All rights reserved. No part of this publication
may be reproduced, stored in any retrieval system, or transmitted, in any form or by any means, electro n ic,
mechanical, photocopying, s canning, recording, or otherwise, without the prior permission of the Joint Building
Contracts Committee. Unauthorised reproduction of the work is an infringement of the copyright in the work. Judicial
proceedings can and will be instituted to obtain relief and the recovery of damages

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TABLE OF CONTENTS

Section Clause Description Page

DEFINITIONS 1.0 Definitions and Interpretation 1

OBJECTIVE AND PREPARATION 2.0 Offer, Acceptance and Performance Obligations 4

3.0 Documents 4
4.0 Design Responsibility 5
5.0 Employer’s Agents 5
6.0 Site Representative 5
7.0 Compliance with Laws and Regulations 5
8.0 W orks Risk 6
9.0 Indemnities 7
10.0 W orks Insurances 7
11.0 Liability Insurances 8
12.0 Effecting Insurances 8
13.0 No Clause 8
14.0 Security 8

EXECUTION 15.0 Preparation for and Execution of the W orks 9

16.0 Access to the W orks 10
17.0 Contract Instructions 10
18.0 Setting out of the W orks 11
19.0 Assignment 11
20.0 Nominated Subcontractors 11
21.0 Selected Subcontractors 12
22.0 Employer’s Direct Contractors 13
23.0 Contractor’s Domestic Subcontractors 13

COMPLETION 24.0 Practical Completion 14

25.0 W orks Completion 14
26.0 Final Completion 15
27.0 Latent Defects Liability Period 16
28.0 Sectional Completion 16
29.0 Revision of Date for Practical Completion 16
30.0 Penalty for Noncompletion 18

PAYMENT 31.0 Interim Payment to the Contractor 18

32.0 Adjustment to the Contract Value 20
33.0 Recovery of Expense and Loss 21
34.0 Final Account and Final Payment 22
35.0 Payment to Other Parties 24

CANCELLATION 36.0 Cancellation by Employer - Contractor’s Default 24

37.0 Cancellation by Employer - Loss and Damage 25
38.0 Cancellation by Contractor - Employer’s Default 25
39.0 Cancellation - Cessation of the W orks 26

DISPUTE 40.0 Settlement of Disagreements and Disputes 27

SUBSTITUTE PROVISIONS 41.0 State Clauses 28

SCHEDULE OF VARIABLES 42.1 Pre-tender Information 32

42.5 Post-tender Information 36

INDEX OF DEFINITIONS 39

SCHEDULE OF CHANGES TO THE PREVIOUS EDITION 41

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PRINCIPAL BUILDING AGREEMENT

DEFINITIONS
1.0 DEFINITIONS AND INTERPRETATION
1.1 The definitions used in this d o c u m en t and the interpretation thereof are listed below. The word or phrase of
a definition is highlighted in the text and shall bear the meaning assigned to it in this 1.1. W here such word
or phrase is not highlighted it shall bear the meaning consistent with the context of its use

T h e listed defined word or phase does not qualify as a definition where inform ation required to be stated in
the schedule has not been provided

“AD VA NCE PA YM EN T GUARANTEE” means a guarantee at call obtain ed by the contractor from an
institution approved by th e employer on the JBCC Advance Payment Guarantee form for the amount as
stated in the schedule

“AGEN T ” m ean s th e person or entity named in the schedule or appointed by the employer to deal with
specific aspects of the works

“AGREEM ENT” means this JBCC Principal Building Agreement and other contract docum ents that together
form the contract between the employer and contractor

“ADJU D IC A T OR” means the person appointed, where so stated in the schedule, to decide any dispute
arising in terms of this agreem ent

“ARBITRATOR” means the person or tribunal appointed, where so stated in the schedule, to decid e any
dispute arising in terms of this agreem ent

“BILLS OF QUANTITIES” means the document drawn up according to the measuring system as stated in
the schedule. The contractor shall have priced the document to reflect the contract sum. T h e JBCC
Preliminaries shall form part of the bills of quantities

“BUDGETARY ALLOW ANCE” means a sum of money included in the contract sum for work intended for
execution by the contractor, the extent of which is identified but not detailed

“CALENDAR DAYS” means twenty-four (24) hour days commencing at midnight (00:00) which include
working and non-working days

“CERTIFICATE OF FINAL COM PLETION” means a certificate issued by the principal ag e n t to the
contractor stating the date on which final com pletion of the works was achieved

“CERTIFICATE OF P R A C TICAL COM PLETION” means a certificate issued by the principal agent to the
contractor stating the date on which practical completion of the works was achieved

“CERTIFICATE OF WO RKS COM PLETION” means a certificate issued by the principal agent to the
contractor stating the date on which works completion of the works was achieved

“CONSTRUCTION GUARANTEE” means a guarantee at call obtained by the contractor from an institution
approved by the employer in terms of the JBCC Construction Guarantee form as elected in the schedule

# “CONSTRUCTION PERIOD” means the period commencing on the date on which possession of the site is
given to the contractor as stated in the schedule and ending on the date of practical com pletion

“CONTRAC T O R ” m ean s the party contracting with the employer for the execution of the works as stated
in the schedule

“CONTRACT DOCUMENTS” means this documen t, the contract drawings, the bills of quantities/lum p
sum document and such other documents as are identified in the schedule

“CONTRACT DRAWINGS” means the drawings stated in the schedule upon which the accepted tender or
negotiated amount was based

“CO NTRACT INSTRUCTION” means a written instruction signed and issued by or under the authority of the
principal agent to the contractor

“CO NT R A C T SUM ” means either the tender or negotiated am ount, inclusive of tax, as accepted by the
employer and stated in the schedule that is not subject to adjustment

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“CONTRACT VALUE” means a monetary value that initially is equal to the c o n tra ct su m that is subject to
adjustment

“CPAP” means such contract price adjustment provisions used for the adjustment of fluctuations in the cost
of labour, plant and m aterials and goods as stated in the schedule

“DEFECT” means any aspect of the works that, in the opinion of the principal agent, is not according to this
agreem ent and, without limiting the generality of the forego ing , inc ludes an imperfection that impairs the
structure, composition or function of any aspect of the works

“DIRECT CONTRACTOR” means a party app o inted directly by the em ployer to do specialist work on site
prior to practical com pletion

“EMPLOYER” means the p arty c o n tracting with the contractor for the execution of the works as stated in
the schedule

“FINAL ACCOU NT” means the document, prepared by the principal agent, which reflects the contract
value of the works at final com pletion or cancellation

“FINAL COM PLETION” means the stag e o f completion where, in the opinion of the principal agent, the
works are free of all defects

# “IN T E R E S T ” m eans the bank rate that is applicable from time to time to registered banks when borrowing
money from the Central or Reserve Bank of the country named in the schedule. The ruling bank rate on the
first calendar day of each month shall be used in calculating the interest due for such month

“JBCC” means the Joint Building Contracts Committee Incorporated

“LATENT DEFECT” means a defect that a reasonable inspection of the works by the principal agent would
not have revealed before the issue of the defects list

“LAW ” means the law of the country stated in the schedule

“LUM P SUM DOC UM ENT” means the document providing the lump sum amount priced by the contractor
to reflect the contract sum and is based up o n th e c o ntract docum ents where bills of quantities are not
used. Such a document may include the JBCC Preliminaries and a schedule of rates drawn up according to
the measuring system as stated in the schedule

“MATERIALS AND GOODS” means m aterials and goods delivered to the contractor or his subcontractors
for inclusion in the works whether stored on or off the site or in transit but not yet part of the works

“MEDIATOR” means the person appointed, where so stated in the schedule, to mediate any dispute arising
in terms of this agreem ent

“NOM INATED SUBCONTRACTOR” means a subcontractor executin g w o rk provided for in a nominated

subcontract amount included in the contract sum or, in respect of additional specialist work, a subcontractor
appointed as a nominated subcontractor in terms of a contract instruction

“PAYMENT CERTIFICATE” means a document issued by the principal agent certifying the amount due and
payable by the employer to the contractor or vice versa

“PAYMENT GUARANTEE” means a guarantee obtained by the em ploye r fro m an institution approved by
the contractor in terms of the JBCC Payment Guarantee form in the amount as stated in the schedule

“PENALTY” means a penalty as stated in the schedule

“PRACTICAL COM PLETION” means the stage of completion where, in the opinion of the principal agent,
completion of the works has substantially been reached and can effectively be used for the purposes intended

“PRIME CO ST AMOU NT” means an amount included in the contract sum for the delivered cost of m aterials
and goods obtained from a supplier as instructed by the principal agent

“ P R INCIPAL AG ENT” means the person or entity appointed by the employer and named in the schedule

“RECOVERY STATEMENT” means the statement, prepared monthly by the principal agent in terms of the
JBCC Recovery Statement form

“SCHEDULE” means the listed variables applicable to this agreem ent

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“SECTION” means a defined portion of the works for which practical com pletio n is required on the date
stated in the schedule

“SECURITY” means the form of guarantee provided by th e e m p loyer or contractor, as stated in the
schedule, from which the contractor or em ployer may recover expense and loss

“SELECTED SUBCONTRACTOR” means a subcontractor exec uting work provided for in a selected
subcontract amount included in the contract sum or, in respect of additional specialist work, a subcontractor
appointed as a selected subcontractor in terms of a contract instruction

“S ITE” means the land or place on, over, under, in or through which the works is to be executed and as
stated in the schedule

“STATE” mean s any department of state or administration in the national, provincial or local spheres of
government and any other functionary or institution exercising a public power or performing a public function
in terms of legislation

“TAX” means value-added tax, sales tax or any other statutory tax, duty or levy applicable by law

“W ORKING DAYS” means twenty-four (24) hour days commencing at midnight (00:00) which excludes
Saturdays and Sundays, statutory holidays and any annual building holiday period stated in the schedule

“W ORKS” means the works described in general terms in the sch e d u le, d etailed in the contract
docum ents, ordered in contract instructio n s an d including the contractor’s and his subcontractors’
tem porary works. W orks shall further include m aterials and goods and those supplied free or otherwise by
the employer to the contractor and exclude work or installations to be executed by direct contractors

“W ORKS COMPLETION” means the stage of completion where, in the opinion of the princ ip al agent, the
work on the works com pletion list has been completed

1.2 The employer and the contractor each choose their physical address as stated in the schedule where
notices or processes arising out of or concerning this agreement may validly be delivered to and served on
them. Either contractin g p arty may, at any time, by notice to the other change its physical address where it
is in the same country as that initially stated in the schedule

1.3 Documents and legislation referred to in this agreem ent shall mean the current edition thereof with all
amendments thereto at the date of submission of the contractor’s tender unless otherwise stated

1.4 The date of issue of any certificate referred to in this agreem ent shall be the date o n w h ich an authorised
signatory signs the certificate

1.5 In this document, unless inconsistent with the context:

1.5.1 The word “deemed” shall be conclusive that something is fact, regardless of the objective truth

1.5.2 The words “accept”, “appoint”, “approve”, “certify”, “decide”, “inform”, “instruct”, “issue”, “notice”,
“record”,“request”, “state” and their derivatives indicate an act carried out in writing

1.5.3 The masculine gender includes the feminine and neuter genders and vice versa, the singular includes
the plural and vice versa, and persons include corporate bodies

1.5.4 Numbers, generally preceded by “in terms of”, indicate references to clause numbers of this document

1.5.5 The headings of clauses are for reference purposes only and shall not be taken as constru ing the
context thereof

1.5.6 Tax shall be applied as required by law

1.6 Any notice given may be delivered by hand, sent by prepaid registered post, telefax or e-mail. Notice shall
be presumed to have been duly given when:

1.6.1 Delivered - on the date of delivery

1.6.2 Sent by registered post - seven (7) calendar days after posting

1.6.3 Sent by telefax - one (1) working day after transmission

1.6.4 Sent by e-m ail - one (1) working day after transmission

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1.7# For the purposes of sentence in relation to a paym ent certificate only, the employer and contractor consent
to the jurisdiction of any court of the country as stated in the schedule although the amount of the claim by
either of the parties against the other may exceed the jurisdiction of such court

1.8 This agreem ent is the entire contract between the parties regarding the matters addressed in this agreem ent.
No representations, terms, conditions or warranties not contained in th is a g re e m ent shall be binding on the
parties. No agreem ent or addendum varying, adding to, deletin g o r c an c elling this agreem ent shall be
effective unless reduced to writing and signed by the parties

1.9 W here this agreem ent is used for a State contract a clause number marked with a hash “#“indicates that the
substitute clause of the same number in terms of 41.0 shall apply

OBJECTIVE AND PREPARATION

2.0 OFFER, ACCEPTANCE AND PERFORMANCE OBLIGATIONS
2.1 The objective of this agreem ent is the execution of and payment for the works for which there has been an
offer by the contractor and an acceptance thereof by the employer

2.2 In pursuance of the objective the parties undertake to carry out their reciprocal obligations

2.3 The contractor undertakes to maintain in confidence any and all information regarding the project for which
the works are to be executed and shall obtain app ro p riate similar undertakings from all subcontractors and
suppliers. Such in fo rm ation shall not be used in any way except in connection with the execution of the
works. No information regarding this project shall be published or disclosed without the prior written consent
of the employer

3.0 DOCUMENTS
3.1# The employer shall provide a paym ent guarantee where required by the contractor in the accepted tender.
The guarantee shall be according to the relevant JBCC Payment Guarantee form in the amo unt as stated in
the schedule and shall be provided within twenty-one (21) calendar days of acceptance of the tender

3.2 The contractor shall provide:

3.2.1 A construction guarantee in terms of 14.1 where so elected in his tender

3.2.2# An advance paym ent guarantee where so req u ired in the contractor’s accepted tender. The
guarantee shall be according to the JBCC Advance Payment Guarantee form in the amount as stated

3.3# W here the employer requires the contractor to waive his lien or right of continuing possession of the works
as stated in the schedule, the contractor shall do so within seven (7) calendar days of having received a
paym ent guarantee from the employer in terms of 3.1. The waiver shall be according to the JBCC W aiver
of Contractor’s Lien form or such other form as stated in the schedule

3.4 W here required by the principal agent as stated in the schedule, additional clauses shall be included in the
contract docum ents for an aspect of the works to be executed according to a design by an engineer
appointed as an agent in terms of 5.2

3.5 The principal agent shall complete the schedule and arrange the formal signing of this agreem ent once the
contact docum ents have been provided and effected. Formal signatures are not required to render this
agreem ent valid

3.6 The parties shall sign , in o riginal, the number of sets of contract docum ents required by the parties. The
contractor shall be entitled to receive one (1) set of contract documents for this agreem ent and two (2) sets
o f c o n tra c t docum ents for each nominated or selected subcontract agreement at no expense to th e
contractor. The original signed set of contract docum ents shall be held by:

3.6.1# The principal agent or other person as stated in the schedule

3.6.2# No clause

3.7 The principal agent shall supply the number of copies of drawings, unpriced bills of quantities/lum p sum
docum ent and documents as stated in the schedule at no cost to the contractor. The contractor shall keep
a copy of all drawings, schedules, unpriced bills of quantities/lump sum docum ent and contract
instructions on the site to which the employer, principal agent and agents shall have access at all times

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3.8 Information contained in the contract docum ents and other documents flowing from this agreem ent shall
be used only for the purposes of this agreem ent

3.9 The b ills of quantities/lum p sum docum ent shall not be used as a specification of m aterials and goods
or methods unless so instructed by the principal agent
3.10 The principal agent shall identify in detail in the schedule any changes m ad e to th e p ro visions of JBCC
standard documentation. Should nondisclosure of such changes cause the c o n tra cto r expense and loss,
then the principal agent shall determ ine such expense and loss in terms of 32.5 and 32.6

4.0 DESIGN RESPONSIBILITY

4.1 T h e c o ntractor shall not be responsible for the design of the works other than the contractor’s or his
subcontractor’s temporary wo rk s. T h e c ontractor shall not be responsible for the primary coordination of
design elements

4.2 Any design responsibility undertaken by a nominated or selected subcontractor shall not devolve upon the
contractor. All contractual or other rights the contractor shall have against such nominated or s ele cte d
subcontractor arising from any design responsibility undertaken b y th em are ceded to the employer. The
rights flowing from a warranty regarding such design responsibility are ceded to the employer whether or not
such a design warranty is referred to in the subcontract agreement

4.3 The contractor shall be responsible for ensurin g th e tim eo us preparation of the design documentation
undertaken by a selected subcontractor for acceptance b y the principal agent to avoid delay to the
intended date for practical com pletion or any revision thereof in terms of 29.0

5.0 EMPLOYER’S AGENTS

5.1 The employer shall appoint the principal agent as stated in the schedule. The employer warrants that:

5.1.1 The principal agent has full authority and obligation to act in terms of the agreem ent

5.1.2# No clause

5.2 The employer may appoint agents as stated in the schedule and may appoint further agen ts w ith the
contractor being informed thereof

5.3 The principal agent shall be the only person who shall have the authority to bind the employer, except where
agents issue contract instructions under delegated authority in terms of 5.3.2. W ithout detracting from the
above, the principal agent shall be the only person empowered to:

5.3.1 Issue contract instructions, except as provided in terms of 5.3.2

5.3.2 Delegate to other agents authority to issue contract instructions and perform such duties as may be
required fo r specific aspects of the works, provided that the contractor is given notice of such
delegation

5.3.3 Receive notices on behalf of the employer

5.4 Should the principal agent or any agent be unable to act or cease to be an agent, the employer shall inform
the contractor of the new principal agent or agent to be appointed. The employer shall not appoint such
a principal agent or agent against whom the contractor makes a reasonable objection in writing within five
(5) working days of receipt of such notice

6.0 SITE REPRESENTATIVE

6.1 The contracto r sh all keep a representative competent to administer and control the works continuously on
the site during the execution of the works. The contractor shall inform the principal agent of the name of
the representative

6.2 A contract instruction given to such representative shall be deemed to be given to the contractor

7.0 COMPLIANCE WITH LAWS AND REGULATIONS

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7.1 The parties shall comply with all laws and regulations and bylaws of loc al o r o ther authorities having
jurisdiction reg ard in g the execution of the works. The parties shall give all notices and pay all charges
required by such authorities. The principal agent shall deal with the amounts thus paid in terms of 32.4 and
33.2.1

7.2 The contractor shall request a contract instruction required by such com pliance

8.0 WORKS RISK

8.1 The contractor shall take full responsibility for the wo rk s fro m th e d ate on which possession of the site is
given to the contractor and up to the issue or deemed issue of the c e rtific a te o f practical com pletion.
Thereafter responsibility for the works shall pass to the employer

8.2 The contractor shall make good physical loss and repair damage to the works, including clearing away and
removing from the site all debris resulting therefrom, which occurs after the date on which possession of the
site is given an d u p to the issue or deemed issue of the certificate of final com pletion and resulting from:

8.2.1 Any cause arising up to the date of issue of the certificate of practical com pletion

8.2.2 The contractor or his subcontractors c arrying out any operation complying with the contractor’s
obligations after the date of issue of the certificate of practical com pletion

8.3 The liability of the contractor in terms of 8.2 shall include:

8.3.1 The cost of such making good loss and repairing damage

8.3.2 The replacement value of m aterials and goods supplied by the employer to the contractor

8.3.3 The additional professional services of the employer’s agents

8.4# The limit of the contractor’s liability shall not exceed the amount of the contract w o rk s insurance as stated
in the schedule

8.5 The contractor shall not be liable for the cost of making good physical loss and repairing d am age to the
works where this results from the following circumstances:

8.5.1 W ar, whether declared or not, invasion and hostile acts of foreign enemies

8.5.2 Rebellion, insurrection, revolution, terrorism, military or usurped power or civil war

8.5.3 Civil commotion, riot, strike, lockout or disorder by persons other than the contractor’s personnel and
other em ployees or his subcontractors

8.5.4 Confiscation, nationalisation or requisition by any public or local authority

8.5.5 Sonic shock waves caused by aircraft or other aerial devices and ionising radiation o r contamination
except where attributable to the contractor’s use of such technology

8.5.6 The use or occupation of any part of the works by the employer, the em ployer’s servants or agents
and those for whose acts or omissions they are responsible

8.5.7 An act or omission of the em plo ye r, th e e m ployer’s servants or agents and those for whose acts or
omissions they are responsible

8.5.8 An act or omission by a direct contractor appointed in terms of 22.0

8.5.9 Design of the works where the contractor is not responsible in terms of 4.0

8.5.10 A latent defect in m aterials and goods specified by trade name, where the contractor has no right
of substitution. The contractor hereby cedes any right of action to the employer that may exist against
the supplier and/or manufacturer of such m aterials and goods

8.6 W h ere the contractor is not liable for the costs in term s of 8.5 such making good and repairing sh all b e
measured and valued in terms of 32.0 and added to the contract value

8.7 The contractor shall forthwith inform the principal agent and insurer of any physical loss and damage to the
works that comes to his attention

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9.0 INDEMNITIES
9.1 Subject to the provisions in terms of 9.2 the contractor indemnifies and holds the employer harmless against
any loss in respect of all claims, proceedings, damages, costs and expenses arising from:

9.1.1 Claim s fro m o ther parties consequent upon death or bodily injury or illness of any person or physical
lo ss o r d am ag e to any property, other than the works, arising out of or due to the execution of the
works or occupation of the site by the contractor

9.1.2 Nonco m p lian ce by the contractor with any law , regulation or bylaw of any local or other authority
arising out of or due to the execution of the works or occupation of the site by the contractor

9.1.3 Physical loss o r d am ag e to any plant, equipment or other property belonging to the contractor or his
subcontractors

9.2# The employer indemnifies and holds the contractor harmless against loss in respec t of all claims,
proceedings, damages, costs and expenses arising from:

9.2.1 An act or omissio n of th e e m ployer, the employer’s servants or agents and those for whose acts or
omissions they are responsible

9.2.2 An act or omission of a direct contractor appointed in terms of 22.0

9.2.3 Design of the works where the contractor is not responsible in terms of 4.0

9.2.4 The occupation of any part of the works by the employer or his tenants

9.2.5# The right of the employer to have the works or any part thereof executed at the site

9.2.6# Interference with any servitude or other right that is the unavoidable result of the execution of the works
including the weakening of or interference with the support of land adjacent to the site unless resulting
from any negligent act or omission by the contractor or his subcontractors

9.2.7# Physical loss or damage to an existing structure and the conten ts thereof in respect of which this
agreem ent is for alteration or addition to the existing structure

9.2.8# Physical loss or damage to the contents of the works where practical com pletion has been achieved
in terms of 24.0

9.2.9# The use or occupation of the site by the works

9.2.10# Advance payments w here certified in terms of 31.6.5 and duly made by the contractor to nominated
subcontractors or selected subcontractors

9.3# No clause

10.0 WORKS INSURANCES

10.1# The party responsible in terms of 12.1 shall effect contract works insurance and, w h ere available,
supplementary insurance in respect of civil commotion, riot and strike for the works in the joint names of the
employer and contractor, for the amounts and deductibles, all as stated in the schedule. S u c h in su red
amounts shall include the contractor’s subcontractors and the full value of m aterials and goods supplied
by the employer to the contractor. Supplementary insurance shall n ot be effected where the employer
makes such an election as stated in the schedule

10.2# The employer shall effect the contract works insurance where completions in sections in terms of 28.0 or
alterations or additions to an existing structure are required all as stated in the schedule

10.3 W h ere this agreem ent is cancelled in terms of 37.0 and the contractor is not required to make good th e
physical loss and repairing damage to the works, the right to the proceeds of a contract works insurance claim
shall vest in the employer

10.4# Subject to the provisions of 10.3 the right to any claims paid or p ayab le in terms of the insurances referred
to in 10.1 shall vest in the party entitled to indem nity thereunder and such party shall be liable for the
deductible

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11.0 LIABILITY INSURANCES

11.1# T h e p arty responsible shall effect public liability insurance to cover the joint interests of both parties for no t
less th an the amount and the deductible as stated in the schedule. In addition the contractor shall effect
any relevant workmen’s compensation or similar insurances as are required by la w . The contractor shall
ensure that his subcontractors effect their own similar insurances

11.2# The employer shall effect support insurance in terms of 12.1.3 and 12.4 in the joint names of the employer
and the contractor, and in addition, covering the contractor’s subcontractors where the employer considers
that the execution of the works could cause the weakening of or interference with the support of land adjacent
to the site and the consequences thereof

12.0 EFFECTING INSURANCES

12.1# The party responsible as stated on the schedule shall effect and keep in force:

12.1.1 Contract works insurance in terms of 10.1 from the date of the handover of the site an d un til the
contractor’s responsibility in terms of 8.0 has ended

12.1.2 Public liability insurance and such other insuran ces in terms of 11.1 from the date of the handover of
the site to the date of issue of the certificate of final com pletion

12.1.3 Support insurance where required in terms of 11.2 until the date of issue of the certificate of final
completion

12.2# The party responsible for effecting such insurances shall make available to the other p arty, b efo re the
commenc ement of the construction period, documentary evidence that insurances have been effected. A
copy of the insurance polic ies sh all b e provided to the other party within thirty (30) calendar days of the
commencement of the c o n s tru c tio n period. Approval by the other party shall be deem ed unless a
reasonable objection is lodged within fourteen (14) calendar days of receipt of such policies. W here required,
the party responsible shall provide evidence of renewal to the other party before the expiry of the current
period of insurance

12.3# W here the party responsible in terms of 12.1 fails to effect any of the required insurances or to keep them in
force, the other party may effect such insurances. W here the employer effects such insurances, consequent
on the contractor’s default, the employer may recover expense and loss resulting therefrom in terms of 33.0.
W here the contractor effects or keeps in force such insurances, consequent on the em ployer’s default, the
cost thereof shall be addressed in terms of 32.4

12.4# Before effecting support insuran c e in terms of 11.2 the employer shall engage an engineer or technologist
in terms of 5.2 to design and inspect the provision of the necessary support. In terms of 5.3 .2 the principal
agent shall delegate to such an engineer or technologist the au th o rity to issue contract instructions in
relation to the support provisions

13.0 No Clause

14.0# SECURITY
14.1 The contractor shall have the right to select the security to be provided in terms of 14.3 or 14.4 as stated
in th e sc h ed u le. The choice of security shall be included in the contractor’s tender, failing which the
security in terms of 14.3 shall be deemed to h ave been selected. Such security shall be provided to the
employer within twenty-one (21) calendar days of written acceptance of the contractor’s tender

14.2 No clause

14.3 W here security as a variable construction guarantee has been selected:

14.3.1 T h e c o n tractor shall furnish the employer with a variable construction guarantee equal in value to
twelve point five (12.5% ) of the contract sum

14.3.2 The variable construction guarantee shall come into force, be administered and expire in term s of the
JBCC Construction Guarantee form

14.3.3 The employer shall return the variable construction guarantee to the contractor within fourteen (14)
calendar days of it expiring

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14.3.4 W here the employer has a right of recovery against the contractor in terms of 33.0, the employer may
issue a written demand in terms of the variable construction guarantee

14.4 W here security as a fixed construction guarantee and payment reduction of the value certified has been
selected:

14.4.1 The contractor shall furnish a fixed construction guarantee to the employer equal in value to seven
point five per cent (7.5% ) of the contract sum

14.4.2 The fixed construction guarantee shall come into force, be administered and expire in term s of the
JBCC Construction Guarantee form

14.4.3 The employer shall return the fixed c o n s tru ction guarantee to the contractor within fourteen (14)
calendar days of it expiring

14.4.4 The payment reduction of the value certified in a paym ent certificate shall be in terms of 31.8 and 34.8

14.4.5 W here the employer has a right of recovery against the contractor in terms of 33.0, the employer may
issue a written demand in terms of the fixed construction guarantee or may recover from the payment
reduction in terms of 33.4 or both

14.5 W here security as an advance paym ent guarantee is to be provided by the contractor:

14.5.1 The contractor shall furnish the employer with an advance paym ent guarantee equal in value to the
cash advance requirement stated in the accepted tender

14.5.2 T he advance paym ent guarantee shall come into force, be administered and expire in terms of the
JBCC Advance Paym ent Guarantee form

14.5.3 The employer shall return the advance paym ent gua ra n te e to the contractor within fourteen (14)
calendar days of it expiring

14.6 Payments made by the guarantor to the employer in terms of a construction guarantee or advance
paym ent guarantee shall not prejudice the rights of the employer or contractor

14.7 Should the contractor fail to fu rn ish the security in terms of 14.1 the employer, in his sole discretion, may
either:

14.7.1 Hand over the site to the contractor and withhold payment from th e contractor until the amount
withheld is equal to ten per cent (10% ) of the contrac t su m . Such amount shall be adjusted to two
p o in t five per cent (2.5% ) of the contract sum on the achievement of practical com pletion in term s
of 24.0 and to zero per cent (0% ) in the final paym ent certificate in terms of 34.8

14.7.2 Cancel this agreem ent in terms of 36.1.1

14.8 A security held by the employer in term s o f 1 4.3 or 14.4 and 14.5 shall be for the due fulfilment of the
contractor’s liability only an d the employer hereby waives all common law rights to recover from or set-off
against such security

EXECUTION
15.0 PREPARATION FOR AND EXECUTION OF THE WORKS
15.1 The contractor shall submit to the principal agent on acceptance of the tender or negotiated am ount:

15.1.1 The priced bills of quantities/lum p sum document within the period stated in the schedule

15.1.2 The security selected in terms of 14.1 and where required in terms of 14.5

15.1.3# The waiver of lien or right of continuing possession of the works where required in the schedule

15.2 The employer shall:

15.2.1# Give possession of the site to the contractor on the date stated in the schedule

15.2.2# W here required in th e s c h e d ule, provide an advance payment on receipt of an advance paym ent
guarantee from the contractor

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15.2.3# Inform the contractor of all cash advances and the quantum of each to be provided to nominated or
selected subcontractors which notification shall effect the indemnification in terms 9.2.10

15.2.4 Make payment to the contractor in terms of 31.0 and 34.0

15.3 On being given possession of the site the contractor shall commence the works within the period stated in
the schedule and proceed with due skill, diligence, regularity and expedition and bring the works to:

15.3.1 No clause

15.3.2 Practical com pletion in terms of 24.0.

15.3.3 W orks com pletion in terms of 25.0

15.3.4 Final com pletion in terms of 26.0

15.4 W here completio n in s e c tions is required in terms of the schedule the further provisions of 28.0 shall be
applicable

16.0 ACCESS TO THE WORKS

16.1 The employer and agents shall have reasonable access to the wo rk s, w o rk shops and other places where
work in terms of this agreem ent is being prepared, executed or stored

16.2 The contrac to r sh all have reasonable access to the works and any section thereof that has achieved
practical com pletion to fulfil his obligations

17.0 CONTRACT INSTRUCTIONS

17.1 The principal agent may issue contract instructions to the contractor regarding:

17.1.1 Alteration to design, quality or quantity of the works provided that such contract instructions shall not
substantially change the scope of the works

17.1.2 Rectification of discrepancies, errors in description or omissions in contract docum ents other than this
document

17.1.3 R em o val of any m aterials and goods from the site and the substitution of any other m ateria ls a n d
goods therefor

17.1.4 Removal or re-execution of any work

17.1.5 Opening up of work for inspection

17.1.6 Provision and testing of samples of m aterials and goods and assemblies of elements of the works

17.1.7 Protection of the works

17.1.8 Making good physical loss and repairing damage to the works in terms of 8.0

17.1.9 Removal from the site of any person employed on the works

17.1.10 Removal from the site of any person not engaged on or not connected with the works

17.1.11 Nominated and selected subcontract amounts and the work to be executed thereunder and the
appointment of nominated and selected subcontractors

17.1.12 Furnishing proof of payment to nominated and selected subcontractors in terms of 20.5 and 21.5

17.1.13 Notices to nom inated subcontractors

17.1.14 Prime cost am ounts and the purchase of materials and goods included therein

17.1.15 Budgetary allowances and work executed by the contractor thereunder

17.1.16 Contingency and other monetary provisions included in the contract sum

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17.1.17 W ork by a direct contractor in term s of 22.0

17.1.18 The lists for practical com pletion, works com pletion, final com pletion and defects

17.1.19 Compliance with the law, regulations and bylaws in terms of 7.0

17.1.20 Access for previous contractors and subcontractors to remedy defective work

17.2 The contractor shall comply with and duly execute all contract instructions except any contract
instruction for additional work issued after the date of practical com pletion other than making good physical
loss and repairing damage to the works in terms of 8.0 and defects in terms of 25.0 and 26.0

17.3 An oral in stru c tion issued by the principal agent or any other agent shall be of no force or effect. Neither
the contractor nor the employer may rely upon an oral instruction for any purpose

17.4 Should the contractor fail to proceed with due diligence with a contract instruction, the principal agent may
notify the contractor to proceed within five (5) working days from receipt of such notice. W ithout further
notice, on default by the contractor, the em ployer may employ other parties to give effect to such contract
instruction in addition to any other rights that the em ployer may have. The employer may recover expense
and loss in terms of 33.0 resulting from such employment

17.5 Execution of a contract instruction that causes a variation to the contract value shall be addressed in terms
of 32.0. The contractor shall cooperate with and assist the principal agent in the pricing of such contract
instructions

18.0 SETTING OUT OF THE WORKS

18.1 The employer shall appoint an agent to establish the boundary pegs or beacons identifying the site and the
correctness of the datum level. At the commencement of the construction period such agent shall point out
the pegs, beacons and datum level to the contractor in the presence of the principal agent

18.2 The principal agent shall define the levels required for the execution of the w o rk s an d provide such
information as shall enable the contractor to set out the works correctly

18.3 The contractor shall provide all assistance and everything necessary to enable the accuracy of the setting
out to be checked. Checking of the setting out by others shall not relieve the contractor of his responsibility
for correctness thereof. The contractor shall rectify any erro rs in the works that may arise from incorrect
setting out without adjustment to the contract value. Should incorrect information be given to the contractor
in terms of 18.1 and 18.2, which causes the incorrect settin g out of the works, the contractor shall not be
liable for such incorrect setting out

18.4 The contractor shall take all precautions to preserve such pegs, beacons, datum levels and other aids used
in setting out the works and should an y b e d isturbed have them replaced by the em ployer’s agent at the
contractor’s expense

19.0 ASSIGNMENT
19.1 Neither the employer nor contractor shall assign or cede his rights or obligations without the written consent
of the other party, which consent shall not be withheld without good reason

19.2# The contractor shall not consent to a nominated subcontractor assigning or ceding his rights or obligations
in terms of the nominated subcontract agreement without obtaining the prior approval of the principal agent

20.0 NOMINATED SUBCONTRACTORS

20.1# The principal agent shall:

20.1.1 Prepare tender documents in conformity with the JBCC Nominated / Selected Subcontract Agreement
and this agreem ent for work intended to be executed by a nominated subcontractor and thereafter
call for tenders

20.1.2 Nominate a subcontractor and instruct the contractor to appoint such a subcontractor as a nominated
subcontractor in terms of the JBCC Nominated / Selected Subcontract Agreement and other tender
requirements

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20.1.3 Inform the contractor that an advance payment will be made to the nominated subcontractor where
such an advance payment requirement is included in the accepted tender and that recovery thereof will
be effected in terms of 33.1.7

20.2 The contractor may refuse to appoint such a subcontractor:

20.2.1 Against whom the contractor makes a reasonable objection

20.2.2 That refuses to enter a subcontract in terms of the JBCC Nominated / Selected Subcontract Agreement
and other tender requirements

20.2.3 That is unable to provide security in terms of such Agreement

20.3 W here such a subcontractor is not appointed by the contractor for reasons in terms of 20.2 another
subcontractor shall be nominated and appointed in terms of 20.1

20.4 The contractor shall provide a payment guarantee in terms of the JBCC Nom inated / Selected Subcontract
Agreem en t within twenty-one (21) calendar days of a request by the nominated subcontractor. The
payment guarantee shall be for an amount of ten per cent (10% ) of the contract sum for the subcontract works
as instructed by the principal agent, and according to the JBCC N/S Payment Guarantee form

20.5 The contractor shall make payment to the nominated subcontractor of the amount certified and identified
in terms of 31.13.1 and the JBCC Nominated / Selected Subcontract Agreement

20.6 The contractor shall, within five (5) working days after receipt of a contract instruction in terms of 17.1.12,
furnish pro o f to th e principal agent that the contractor’s payment obligations in terms of 20.5 have been
discharged. Failure by the contractor to provide such proof to the satisfaction of the prin c ip a l ag e n t sh all
entitle the employer to instruct the principal agent to certify payment direct to the nominated subcontractor
in terms of 35.1.2. The contractor shall have no recourse to recover such amounts from the employer. Such
direct payment shall not create privity of contract between employer and nominated subcontractor. The
employer may recover such direct payment in terms of 33.2.8

20.7# W here, after notification by the contractor, the principal agent agrees that the nominated subcontractor
is in default due to any of the reasons referred to in 36.1 mutatis mutandis, the principal agent shall instruct
the contractor to notify the nom inated su b c on tra cto r to rectify such default. The principal agent may
instruct the contractor to cancel the nominated subcontract sh o u ld such a default continue for five (5)
working days after such notice

20.8 W here cancellation of the nominated subcontract occurs in term s of 20.7 or otherwise, another subcontractor
shall b e n o minated and appointed in terms of 20.0 to carry out and complete the balance of the nominated
subcontract works

20.9 W here the nominated subcontract is cancelled due to default or insolvency of the nominated subcontractor,
or default by the em p lo ye r or his agents, any variation in the cost of carrying out and completing the
nominated subcontract works shall be adjusted in terms of 32.5 and 32.6

20.10 W here the nominated subcontrac t is cancelled due to default or insolvency of the contractor, any variation
in the cost of carrying out and completing the nominated subcontract works shall be for the ac c o u n t o f the
contra c tor. Expense and loss suffered by the employer from such cancellation may be recovered in terms
of 33.2.3

21.0 SELECTED SUBCONTRACTORS

21.1 The principal agent shall:

21.1.1 Prepare tender documents in conformity with the JBCC Nominated / Selected Subcontract Agreement
and this agreem ent for work intended to be executed by selected subcontractors. Such preparation
shall be carried out in consultation with and to the reasonable approval of the contractor

21.1.2 Call for tenders from a list of tenderers agreed between the contractor and the principal agent

21.1.3 In consultation with the contractor, choose a subcontractor and instruct the contractor to appoint such
a subcontractor as a selected subcontractor in terms of the JBCC Nom inated / Selected Subcontract
Agreement and other tender requirements

21.1.4 Inform the contractor that an advance payment will be made to the s e le cted subcontractor where
such an advance payment requirement is included in the accepted tender and that recovery thereof will
be effected in terms of 33.1.7

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21.2 The contractor shall within ten (10) working days of such an instruction in terms of 21.1.3 determine that
such a subcontractor can:

21.2.1 Meet the requirements of the JBCC Nominated / Selected Subco n trac t A g reement and other tender
requirements

21.2.2 Provide security in terms of such an Agreement

21.3 In terms of 21.2 the contractor shall either:

21.3.1 Appoint such a subcontractor as a selected subcontractor and inform the principal agent accordingly

21.3.2 Provide reaso n able cause to the satisfaction of the principal agent for not making such appointment
in which event another subcontractor shall be chosen in terms of 21.1.3

21.4 The contractor shall provide a payment guarantee in terms of the JBCC Nom inated / Selected Subcontract
Agreement within twenty-one (21) calendar days of a request by the selected subcontractor. The payment
guarantee shall be for an amount of ten per cent (10% ) of the contract sum for the subcontract works as
instructed by the principal agent, and according to the JBCC N/S Payment Guarantee form

21.5 The contractor shall make payment to the selected subcontractor of the amount certified and identified in
terms of 31.13.1 and in terms of the JBCC Nominated / Selected Subcontract Agreement

21.6 The contractor shall, within five (5) working days after receipt of a contract instruction in terms of 17.1.12,
furnish proof to the principal agent that the contractor’s payment ob lig atio n s in terms of 21.5 have been
discharged. Failure by the contractor to provid e su c h pro o f to the satisfaction of the principal agent shall
entitle the employer to instruct the principal agent to certify payment direct to the selected subcontractor
in terms of 35.1.2. The contractor shall have no recourse to recover such amounts from the employer. Such
direct payment shall not create privity of contract between employer and selected subcontractor. The
employer may recover such direct payment in terms of 33.2.8

21.7 W here the selected subcontractor is in default for whatever reason, the decision whether to c an c el the
selected subcontract is that of the contractor

21.8 W here cancellation of the selected subcontract occurs the contractor shall ap p o int another subcontractor
subject to the approval of the principal agent

21.9 W here the selected subcontract is cancelled , d u e to default by the employer or his agents, any variation in
the cost of carrying out and completing the selected subcontract works shall be adjusted in terms of 32.5 and
32.6

21.10 W here the selected subcontract is cancelled, other than in terms of 21.9, any variation in the cost of carrying
out and completing the selected subcontract works shall be for the account of the contractor

22.0 EMPLOYER’S DIRECT CONTRACTORS

22.1 On instruction of the principal agent in terms of 17.1.17 the contractor shall permit work to be executed and
installed in the works by a direct contractor. The direct contractor, the w o rk or installation to be
undertaken, the insurances related thereto and the associated risks shall be the direct responsibility of the
employer in terms of 9.2.2

22.2# The type and extent of such work shall be described in the schedule. The contractor shall make reasonable
allowance in his construction programme for such work or installation

22.3 A direct contractor executing such work or installation shall be subject to reasonable c o n tro ls as required
by the contractor

22.4 Expense or loss caused by a direct contractor shall be dealt with in terms of 32.5

22.5 The paymen t of a d ire c t contractor shall be the responsibility of the employer and shall not be dealt with
in terms of 31.0 or 34.0

23.0 CONTRACTOR’S DOMESTIC SUBCONTRACTORS

23.1 The contractor shall appoint all his domestic subcontractors in terms of an agreemen t th at provides for fair
and equitable conditions of contract compatible with this agreem ent

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23.2 All work or installations and the associated risks related to d om estic subcontractors shall be the direct
responsibility of the contractor

COMPLETION
24.0 PRACTICAL COMPLETION
24.1 The principal agent shall:

24.1.1 From time to time inspect the works to give the contractor interpretations and guidance on the building
standards and state of completion of th e w o rk s th at the contractor will be required to achieve for
practical com pletion

24.1.2 Inform the contractor of the period required for inspection of the works related to the issue of the
certificate of practical com pletion

24.2 The contractor shall inspect the works to satisfy h im self that the state of completion of the works in terms
of 24.1 has been achieved

24.3 The contractor shall give timeous notice to the principal agent of the anticipated date of practical
completion to enable the principal agent to inspect the works on or before such date. W here, in the opinion
of the principal agent, after such inspection the works:

24.3.1 Has reached practical com pletion, the principal agent shall forthwith issue a certificate of practical
completion to the contractor with a copy to the employer. The certificate of practical com pletion,
unless otherwise agreed by the parties, shall not be issued b efore the date for practical com pletion
as stated in the schedule or revised in terms of 29.0

24.3.2 Has not reached practical com pletio n , the principal agent shall forthwith issue a practical
completion list defining the outstanding work and defects to be rec tified to achieve practical
completion to the contractor

24.4 W here, in the opinion of the contractor, the work on the practical com pletion list has been completed, the
contractor shall inform the principal agent who shall inspect such work within seven (7) calendar da ys of
receipt thereof. W here, in the opinion of the principal agent, the work on the practical com pletion list:

24.4.1 Has been satisfactorily completed, th e p rincipal agent shall forthwith issue a certificate of practical
completion in terms of 24.3.1

24.4.2 Has not been satisfactorily co m p leted , the principal agent shall forthwith identify the item s on the
practical com pletion list that are not yet complete and inform the contractor thereof. The contractor
shall repeat the procedure in terms of 24.4

24.5 Should the principal agent not issue a pra c tical com pletion list, in terms of 24.3.2 or the updated list in
term s of 24.4.2, within seven (7) calendar days of the end of the inspection period, the contractor shall notify
the em ployer and prin c ip a l ag e n t. Should the principal agent not issue such a list within seven (7)
calendar days of receipt of such a notice practical com pletion sh all b e d eemed to have been achieved
either:

24.5.1 On the date that practical com pletion was anticipated in terms of 24.3

24.5.2 On the date of expiry of the notice given by the contractor in terms of 24.5

24.6 The contractor shall not be obliged to carry out any contract instruction for additional work in terms of 17.2
issued after the date of practical com pletion

24.7 Upon the issue of th e c e rtificate of practical completion the employer shall be entitled to possession of
the works and the site subject to the contractor’s lien or right of continuing possession of the works

25.0 WORKS COMPLETION

25.1 W ithin seven (7) calendar days of the date of practical com pletion the principal age n t shall issue to the
contractor a w o rk s co m p le tion list defining the outstanding work and defects apparent at the date of
practical com pletion to be completed or rectified to achieve works com pletion.

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25.2 W here, in the opinion of the contractor, the works com pletion list has been completed the contractor shall
notify the principal agent w h o shall inspect within seven (7) calendar days of receipt of such a notice.
W here, in the opinion of the principal agent, the works com pletion list:

25.2.1 Has been satisfactorily completed, the principal agent shall fo rth w ith issue a certificate of works
completion to the contractor with a copy to the employer

25.2.2 Has not been satisfactorily completed, the prin c ipal agent shall forthwith identify the works
completion list items that are not yet complete and inform the contractor thereof. The contractor shall
repeat the procedure in terms of 25.2

25.3# S h ould the principal agent not issue a works completion list, in terms of 25.1 or 25.2.2, within seven (7)
calendar days of the end of the inspection period, the contractor shall notify the em ployer and principal
agent. Should the principal agent not issue such works com pletion list within seven (7) calendar days
of receipt of such a notice, the certificate of works com pletion shall be deemed to have been issued on the
d ate o f expiry of the initial notice period and works com pletion shall be deemed to have been achieved on
such date

25.3.1/2# No clause

25.4 Should the works com pletion list not be completed within a period of twenty (20) working days of the issue
thereof the co n tra cto r sh all not be entitled to compensatory interest in terms of 31.10 on the value of the
outstanding work so listed

25.5 The defects liability period in terms of 26.1 shall commence with the issue or deemed issue of the certificate
of works com pletion in terms of 25.2.1 or 25.3

26.0 FINAL COMPLETION

26.1 T h e defects liability period for the works shall commence on the date of works com pletion and en d at
midnight (00:00):

26.1.1 ninety (90) calendar days from such date

26.1.2# No clause

26.2 At the end of the defects liability period the principal agent shall forthwith inspect the works and where the
works:

26.2.1 H as reached final com pletion the principal agent shall forthwith issue a certificate of final
completion to the contractor with a copy to the employer

26.2.2 Has not reached final com pletion the principal agent sh all fo rth w ith issue a defects list to the
contractor defining the defects, which have appeared during the defects liability period, to be rectified
to achieve final com pletion

26.3 W here, in the opinion of the contractor the defects list has been completed, the contractor shall notify the
principal agent who shall inspect within seven (7) calendar days of receipt of such a notice. W here, in the
opinion of the principal agent, the defects list:

26.3.1# Has been satisfactorily completed the principal agent shall forthwith issue a certificate of final
completion to the contractor with a copy to the employer

26.3.2 Has not been satisfactorily completed or where further defects have become apparent, the p rin c ipal
agent shall forthwith identify such items on the updated defects list and inform the contractor thereof.
The contractor shall repeat the procedure in terms of 26.3

26.4# Should the principal agent not issue a defects list, in terms of 26.2.2 or 26.3.2 , w ith in seven (7) calendar
days from the end of th e d e fe c ts liability period, the contractor shall notify the em ployer and principal
agent. Should the principal agent not issue such defects list within seven (7) calendar days of receipt of
such a notice, the certificate of final com pletion shall be deemed to have been issued on the date of expiry
of the initial notice period and final com pletion shall be deemed to have been achieved on such date:

26.4.1/2# No clause

26.5# W here a nominated or selected subcontractor’s defects liability period extends beyond the contractor’s
defects liability period in terms of 26.1:

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26.5.1# The contractor’s obligations and liability concerning such a subcontractor’s defects shall nevertheless
end on the issue of the certificate of final com pletion

26.5.2# The rem aining portion of such a subcontractor’s defects liability period shall be subject to a direct
agreement between th e e m p lo ye r and the subcontractor and shall no longer be the responsibility of
the contractor

26.6# A certificate of fin a l com pletion issued in terms of 26.0 shall be conclusive evidence as to the sufficiency
of the works and that the contractor’s obligations in term s of 2.0 and 15.0 have been fulfilled other than for
latent defects

26.7 W here a su b c o n trac tor is required to give a guarantee, warranty or indemnity related to subcontract work,
other than a security to the contractor, the rights under such guarantee, warranty or indemnity shall be
deemed to be ceded to the employer on the date of issue of the certificate of final com pletion. This cession
shall not prejudice any other rights that the employer may have

27.0 LATENT DEFECTS LIABILITY PERIOD

27.1# The latent defects liability period for the works shall commence at the start of the construction period and
en d five (5) years from the date of achievem ent of final com pletion in terms of 26.0. Defects that appear
up to the date of final com pletion shall be addressed in terms of 24.0 to 26.0

27.2# W here cancellation of this agreem ent occurs:

27.2.1# In term s of 36.0 or 39.0 before the achievement of final com pletion the latent defects liability period
shall end five (5) years from the date of cancellation

27.2.2# In terms of 37.0 or 38.0 the latent defects liability period shall end on the date of cancellation

28.0 SECTIONAL COMPLETION

28.1 W here sections are required to be completed as stated in the schedule, term s and conditions applicable to
the works without sections shall apply mutatis mutandis to each section. The following documents, which
shall include each section, shall be issued by the principal agent for the works as a whole:

28.1.1 Interim paym ent certificates in terms of 31.1

28.1.2 Recovery statem ents in terms of 33.1

28.1.3 Final account in terms of 34.1

28.1.4 Final paym ent certificate in terms of 34.5

28.1.5 Certificate of final com pletion in terms of 26.0 that shall incorporate the final com pletion of the last
section

28.2 The principal agent shall issue the following documents individually for each section:

28.2.1 No clause

28.2.2 A certificate of practical com pletion in terms of 24.0

28.2.3 A certificate of works com pletion in terms of 25.0

28.2.4 A certificate of final com pletion in terms of 26.0 other than in terms of 28.1.5

29.0 REVISION OF DATE FOR PRACTICAL COMPLETION

29.1# The circumstances for which the contractor is entitled to a revision of the date for practical com pletion and
for which revision the principal agent shall n o t ad ju st the contract value in terms of 32.12 are delays to
practical com pletion caused by:

29.1.1 Inclement weather

29.1.2 The inability to obtain m aterials and goods where the contractor has taken all practical steps to avoid
or reduce such delay

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29.1.3 Makin g g ood physical loss and repairing damage to the works in terms of 8.0 where the contractor
is at risk

29.1.4 Vis major, civil comm otion, riot, strike or lockout

29.1.5 Late supply of a prime cost item where the contractor has taken all practical steps to avoid or reduce
such delay

29.1.6 Default by a nominated subcontractor where the contractor has taken all practical steps to avoid or
reduce such delay

29.2# The circumstances for which the contractor is entitled to a revision of the date for practical com pletion and
for wh ic h revision the principal agent shall adjust the contract value in terms of 32.12 are delays to
practical com pletion caused by:

29.2.1 Failure to give possession of the site to the contractor in terms of 15.2.1

29.2.2 Making good physical loss and repairing damage to the works in terms o f 8.0 where the contractor
is not at risk

29.2.3 Contract instructions not occasioned by default by the contractor

29.2.4 Failure to issue or the late issue of a contract instruction following a request from the contractor

29.2.5 Late acceptance by the principal agent of a design undertaken by a selected subcontractor where
the contractor’s obligations in terms of 4.3 have been met

29.2.6 Suspension or cancellation invoked by a nominated or selected subcontractor due to default by the
employer or the principal agent in terms of 38.1

29.2.7 Insolvency of a nominated subcontractor

29.2.8 A direct contractor

29.2.9 Opening up and testing of work and m aterials and goods in terms of 17.1.5 and 17.1.6 where such
work is according to the contract docum ents

29.2.10 The execution of addition al w ork for which the quantity included in the bills of quantities is not
sufficiently accurate

29.2.11 Late or failure to supply m aterials and goods for which the employer is responsible

29.3 Further circumstances for which the contractor is entitled to a revision of the date for practical com pletion
are delays to practical com pletion caused by any other cause beyond the contractor’s reasonable control
that could not have reasonably been anticipated and provided for

29.4 Should a circumstance as listed in 29.1, 29.2 or 29.3 occur which could, in the opinion of the contractor,
cause a delay to practical com pletion the contractor shall:

29.4.1# Give the principal agent reasonable and timeous notice of such a circumstance

29.4.2 Take any reasonable practical steps to avoid or reduce the delay

29.4.3# W ithin twenty (20) working days from the date upon which the contractor became aware o r ought
reasonably to have beco m e aware of the potential delay notify the principal agent of his intention to
submit a claim for a revisio n to the date for practical com pletion or any previous revision thereof
resulting from such delay, failing which the principal agent shall not consider such claim

29.5 The contractor shall, within sixty (60) working days of the delay ceasing, submit such claim to the principal
agent, failing which the contractor shall forfeit such claim

29.6 W here the c o n tra cto r requests a revision of the date for practical com pletion the claim shall in respect of
each circumstance separately state:

29.6.1 The relevant clause or clauses of 29.1, 29.2 or 29.3 on which the contractor relies

29.6.2 The particulars of the cause of the delay

29.6.3 The extension period claimed in working days, and the calculation thereof

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29.7# The principal agent shall, in writing, within twenty (20) working days after receipt of a claim in terms of 29.6:

29.7.1 Grant, reduce or refuse the working days claimed

29.7.2 Determ ine the revised date for practical completion in relation to the working days granted making
due allowance for the holiday period where such is noted in the schedule

29.7.3 Identify each circumstance an d relevant subclause for each revision granted or give reasons for
amending or refusing such claim

29.7.4 Assess a claim in terms of 29.3 in the same m anner and principles as are applicable to 29.1 and 29.2

29.8# W here the principal agent fails to act in terms of 29.7 the claim shall be deemed to be refused

30.0 PENALTY FOR NONCOMPLETION

30.1 W here the contractor fails to bring the works or sections thereof to practical com p le tio n o n th e d ate or
dates stated in the schedule or revision thereof in term s of 29.0, the contractor shall be liable to the
em p loyer for the penalty per calendar day for noncompletion of the works or each section thereof at the
rate stated in the schedule. The principal agent shall calculate the penalty due from the date or revised
date in terms of 29.0 up to and including the actual date of p ractical com pletion of the works or section
thereof or the date of cancellation in terms of 36.3

30.2 W here the em ployer levies such a penalty the principal agent shall detail the am ount for recovery in terms
of 33.1.1

PAYMENT
31.0 INTERIM PAYMENT TO THE CONTRACTOR
31.1 The principal agent shall issue an interim payment certifica te every m o n th until the issue of the final
paym ent certificate. The paym ent certificate shall be based on a valu ation prepared within seven (7)
calendar days before the stated date in the schedule which may be for a nil or negative amount

31.2 The contractor shall cooperate with and assist the principal agent in th e p reparation of the payment claim
information for an interim paym ent certificate by providing to the principal agent all relevant documents and
assessments of quantified amounts of work completed. For a lump sum contract the contractor shall compile
such information, for work completed and m aterials and goods, if applicable, in such form as agreed by the
principal agent. The principal agent shall not be relieved of his responsibility to issue an interim paym ent
certificate in terms of 31.4 whether or not such information is provided by the contractor

31.3 The principal agent shall issue each interim paym ent certificate to th e contractor with a copy to the
employer by not later than the day of the month stated in the schedule

31.4 The value certified in an interim paym ent certificate shall separately include:

31.4.1 A reasonable estimate of the value of the work executed taking into account the information submitted
by the contractor in terms of 31.2 and making due allowance for adjustments to th e c o n tra c t value
in terms of 32.0

31.4.2# A reasonable estimate of the value of m aterials and goods in terms of 31.6

31.4.3 The total of amounts previously certified in term s of 31.4.1 and 31.4.2

31.5 The following adjustments shall be made to th e amounts certified in terms of 31.4.1 and 31.4.2 and shall
separately include:

31.5.1 No clause

31.5.2 Security adjustm ent in terms of 14.7.1 or 31.8

31.5.3 CPAP adjustment where stated in the schedule

31.5.4 The amounts due to the employer or contractor in the recovery statement in terms of 33.1 excluding
interest am ounts in terms of 31.5.6

31.5.5 Tax on the net total of the am ounts in terms of 31.4 and 31.5

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31.5.6 Amounts included in the recovery statem ent in terms of 33.1

31.6 The value of m aterials and g oo d s in terms of 31.4.2 shall be included in the value certified only where, to
the satisfaction of the principal agent, the m aterials and goods are:

31.6.1 Not prematurely delivered or offered for delivery

31.6.2 Prematurely delivered or offered for delivery where the placing of the order was in terms of the
requirements of the principal agent

31.6.3 Stored and protected against loss or damage

31.6.4 Covered by insurance in terms of 10.1

31.6.5# Covered by an advance paym ent guarantee or suc h o th er security as may be accepted by the
employer where stored off the site

31.7 Materials and goods certified shall become the property of the employer and shall not be removed without
the approval of the principal agent

31.8# W here s e c u rity as a fixed construction guarantee and payment reduction in terms of 14.4 has been
selected the value of the works in terms of 31.4.1 and m aterials and goods in terms of 31.4.2 that exceeds
the contract sum and any CPAP adjustment shall be certified in full. The value certified that does not exceed
the contract sum shall be subject to the following percentage adjustments:

31.8.1# Ninety-five per c en t (9 5 % ) of such value in interim paym ent certificates issued up to the date of
practical com pletion

31.8.2# Ninety-seven point five per cent (97.5% ) of such value in interim paym ent certificates issued on the
date of practical com pletion and up to but excluding the date of final com pletion

31.8.3# Ninety-eight point seven per cent (98.7% ) of such value in interim paym ent certificates issued on the
date of final com pletion and up to but excluding the final paym ent certificate in terms of 34.6

31.8.4# One hundred per cent (100% ) of such value in the final paym ent certificate except where the amount
certified is in favour of the employer. In such an even t the payment reduction shall rem ain at the
adjustment level applicable to the final payment certificate in terms of 34.6

31.9# The employer shall pay to the contractor the amount certified in an interim paym ent certificate within seven
(7 ) c a le n d a r days of the date for issue of the paym ent certificate. Payment shall be subject to th e
contractor giving the employer a tax invoice for the amount due

31.10# The employer shall pay the contractor compensatory interest on all amounts certified in an interim paym ent
certificate issued after thirty-one (31) calendar days of the date of practical com pletio n. Subject to 25.4
the principal agent shall calculate such compensation at the ruling rate of interest compounded monthly from
the date of practical com pletion up to and including the date on which payment is due to the contractor and
include such an amount in the recovery statem ent in terms of 33.0

31.11 W here the contractor does not receive payment of the amount due by the due date in terms of 31.9, the
employer shall be liable for default interest on the amount without prejudice to any other rights the contractor
may h ave. Such interest amount shall be compounded monthly from the due date for payment up to and
including the date on which the contractor is to receive payment and included in the recovery statement in
terms of 33.0. The principal agent shall calculate such interest at the rate:

31.11.1# Of one hundred and sixty per cent (160% ) of the interest

31.11.2# No clause

31.12 W here a paym ent certificate reflec ts an amount in favour of the employer, the contractor shall pay the
amount certified within seven (7) calendar days of the date of issue of the paym ent certificate. W here such
an amount has not been p aid , the contractor shall be liable for default interest in terms of 31.11 mutatis
mutandis and the principal agent shall include such an amount in the next recovery statement in terms of
33.0. Payment shall be subject to the em ployer giving the contractor a tax invoice for the amount due. The
principal agent shall calculate such interest at the rate:

31.12.1# Of one hundred and sixty per cent (160% ) of the interest

31.12.2# No clause

31.13 The principal agent shall concurrently with the issue of each interim paym ent certificate issue the following:

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31.13.1 A statement to the contractor showing the formulation of the am ount certified and identifying th e
amounts certified for each nominated or selected subcontractor

31.13.2 A notification to each such subcontractor showing the formulation of the subcontract amount included
in the paym ent certificate and its date of issue

31.13.3 A statement to the employer and the contra cto r showing the total certified to date of all adjustment
amounts in terms of 31.5

31.14 The issue of an interim paym ent certificate by the principal agent shall not be evidence that the works and
m aterials and goods are in terms of this agreem ent

31.15 W here the principal agent fails to issue a paym ent certificate in term s o f 3 1 .1 the contractor may give
notice to the employer with a copy to the principal agent in terms of 38.2

31.16# W here the contractor has provided a tax in voice and the employer has not paid or has made a partial
payment only of the amount due to the c o n tractor in terms of a paym ent certificate issued in term of 31.1
the contractor may:

31.16.1# Issue a written demand to the employer in terms of the paym ent guarantee provided in terms of 3.1

31.16.2# Exercise his lien or righ t o f c ontinuing possession where this has not been waived in terms of the
schedule and where practical com pletion has not been achieved

31.16.3 Give notice of cancellation in terms of 38.1.4 or 38.1.6

32.0 ADJUSTMENT TO THE CONTRACT VALUE

32.1# The principal agent shall determine the value of adjustments to th e c o n tract value according to the bills
of q u a n tities/lum p sum docum ent. W here items of additional work are required the principal agent and
the contractor may agree on the adjustm ent before the commencement of such work

32.2 Adjustment to the contract value resulting from a contract instruction shall be determined as follows:

32.2.1 Items of additional work of similar character and executed under similar conditions shall be priced at
the rates in the bills of quantities/lum p sum document

32.2.2 Items of addition al w o rk n o t of a similar character or not executed under similar conditions shall be
priced, where applicable, at rates based on those in the bills of quantities/lum p sum docum ent and
adjusted to suit the changed circumstances

32.2.3 W here 32.2.1 and 32.2.2 cannot be used to determine the value of additional work, such work shall be
priced at new rates that take into account the labour, engineerin g , d raw in g s, material, transport and
plant necessary for executing the work plus an allowance of ten per cent (10% ) markup thereon

32.2.4 Items of work omitted shall be valued at the rates in the bills of quantities/lum p sum docum ent, but
where the omission of such work varies the circumstances in whic h th e rem aining work is carried out,
the value of the rem aining work shall be determined by the method in terms of 32.2.2

32.3 W here work has been identified in the bills of quantities/lum p sum docum ent as provisional, the principal
agent shall omit the value thereof from the contract value and the work as executed shall be valued in terms
of 32.2 and added to the contract value

32.4 W here the contractor has paid charges for items that are not included in the bills of quantities/lum p sum
docum ent, the actual amounts paid by the con trac to r p lus a ten per cent (10% ) markup shall be added to
the contract value for the following:

32.4.1 Charges in terms of 7.1

32.4.2 The cost of opening up and testing in terms of 17.1.5 and 17.1.6, provided that the contra cto r shall
bear the cost thereof should the test show that the work is not according to the contract docum ents

32.4.3# The cost of insurance in terms of 12.3

32.4.4# The cost of support insurance in terms of 11.2

32.5 W here the contractor has incurred expense and loss arising from a circumstance for which provision was not
required in the contract sum an d for which reasonable compensation has not been made in terms of 32.2

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and 32.12, the contractor shall provide details of such an expense and loss to the principal agent in terms
of 32.6. Such circumstances are:

32.5.1 The issue of a contract instruction

32.5.2 Failure to issue or the late issue of a contract instruction following a request from the contractor

32.5.3 Nondisclosure of changes m ade to the provisions of JBCC standard documentation in terms of 3.10

32.5.4 Expense and loss caused by a direct contractor in terms of 22.0

32.5.5 Default by the employer or his agents

32.5.6 Suspension or cancellation of a selected or nominated subcontract due to default by the employer or
his agents

32.5.7 Default or insolvency of a nominated subcontractor

32.6 The contractor shall notify the principal agent within forty (40) working days from becoming aware or from
when he ought reasonably to have become aware of such expense and loss in terms of 32.5 failing which no
compensation will be made. W here such notification has been given:

32.6.1 The contractor shall submit details of the expense and loss once these can be quantified

32.6.2# The principal agent shall make a reaso nable assessment of the compensation to be added to the
contract value within twenty (20) working days of receipt of such details

32.6.3 The claim shall be deemed to have been refused where the principal agent fails to make such an
assessment

32.7 The principal agent shall omit the nominated and selected subcontract amounts from the contract value and
determine the amounts as the final account value of the respective subcontract works to be added to the
contract value

32.8 The principa l ag ent shall prorate the contractor’s attendance and profit on the nominated and selected
subcontracts in the contract sum to the value of each subcontract in terms of 32.7 excluding any allowance
for CPAP

32.9 The principal agent shall omit budgetary allowances and any other monetary provisions from the contract
value and determine the value of work related thereto in terms of 32.0 to be added to the contract value

32.10 The principal agent shall omit prime cost am ounts from the contract value and the actual delivered cost
of such items, including a reasonable allowance for waste, shall be added to the contract value

32.11 The principal agent shall prorate the contractor’s allowances for overheads and profit o n p rim e cost
am ounts in the contract sum to the value of each item in terms of 32.10

32.12 The preliminaries amounts in the bills of quantities/lum p sum docum ent shall be paid and adjusted in terms
of the JBCC Preliminaries alternatives selected by the contractor and stated in the schedule

32.13 Unless otherwise stated the contract value shall be adjusted according to CPAP using the information stated
in the schedule

32.14 W here adjustments need to be measured on the site the contractor shall be given the opportunity to be
present and shall be supplied with a copy of the measurement

32.15 The principal agent shall rectify all identified discrepancies, erro rs in description or quantity, or omission of
items from the contract docum ents. Such rectification shall be treated as an adjustment to the contract
value where there is a monetary implication

33.0 RECOVERY OF EXPENSE AND LOSS

33.1 The principal agent shall issue a recovery statement monthly to the em ployer and contractor
simultaneously with the p a ym e n t ce rtificate. Explanatory documentation as may be necessary to support
the calculation of amounts stated shall accompany the recovery statement. The principal agent shall show
on the recovery statement amounts due to the employer for:

33.1.1 Penalties levied in terms of 30.0

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33.1.2 Default interest in terms of 31.12

33.1.3 Expense and loss in terms of 33.2

and amounts due to the contractor for:

33.1.4 Compensatory interest in terms of 31.10

33.1.5 Default interest in terms of 31.11

33.1.6 Damages in terms of 38.5.6

33.1.7 Advance payments in terms of 14.5

33.2 The employer may recover expense and loss incurred or to be incurred resulting from:

33.2.1 The employer paying charges or effecting insurance upon the contractor’s default in terms of 7.1 or
12.3

33.2.2 W ork executed by other parties in terms of 17.4

33.2.3 Cancellation of a nominated subcontract in terms of 20.10

33.2.4 Recoupment of advance payments in terms of 14.5

33.2.5 The contractor not paying the amount due to the employer in terms of 31.12

33.2.6 The agreem ent being cancelled in term s of 36.0

33.2.7 Default by the contractor if not less than seven (7) calendar days notice detailin g su c h d efault has
been g iven before the issue of the next recovery statement to allow the contractor the opportunity
to remedy such default

33.2.8 Am ounts paid direct to nominated or selected subcontractors in terms of 20.6 or 21.6

33.3 The principal agent shall include an amount due in terms of the recovery statement in the accompan ying
paym ent certificate. W here the paym ent certificate reflects an amount in favour of the employer and the
contractor has not paid in terms of 31.12, such amount may be recovered by the employer fro m an y or all
of the following in no specific sequence:

33.3.1 Subsequent paym ent certificates

33.3.2 Security in terms of 14.0

33.3.3 The contractor as a debt

33.4 W here the employer decides to recover an amount due in terms of 33.3 from a payment reduction applied
in terms of 14.4.5, the em ploye r sh all n o tify the contractor and the principal agent thereof. Should such
am o u n t n o t be paid to the employer within seven (7) calendar days of the date of receipt of such a no tice
by the contractor, the employer may recover such an amount from the security

33.5 W here the employer decides to recover an amount due in terms of 33.3 from a construction guarantee or
advance paym ent guarantee held as security, the employer shall issue a written demand to the contractor
in terms of such guarantees

33.6 W here a provisional sequestration or provisional liquidation ord er h as been granted or where an order has
been granted which commences sequestration, liquidation, bankruptcy, receivership, winding-up or any similar
effect against the contracto r o r this agreem ent is cancelled in terms of 36.0, the employer may issue a
demand to the guarantor in terms of the construction guarantee or advance paym ent guarantee held as
security

34.0 FINAL ACCOUNT AND FINAL PAYMENT

34.1 T h e c o ntractor shall cooperate with and assist the principal agent in the preparation of the final ac co u n t
by timeously supplying all relevant documents on request. The principal agent shall issue the final account
to the contractor within:

34.1.1# ninety (90) working days of the date of practical com pletion

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34.1.2# No clause

34.2 No clause

34.3 The contractor shall accept the final account within forty-five (45) working days of the issue thereof. On
acceptance, or should the contractor not record an objection to th e final account with good reason within
such period, the principal agent shall issue the final paym ent certificate in terms of 34.5

34.4 Should the contractor dispute the correctness of the final account and such dispute not be resolved within
the forty-five (45) working days in term s o f 3 4 .3 , or such an extended period as the principal agent may
allow on a request from the contractor, the final paym ent ce rtificate in terms of such final account shall
be issued in terms of 34.5

34.5 The final paym ent certificate shall be issued within seven (7) c a le ndar days to the contractor in terms of
34.3 or 3 4 .4 . N o tw ithstanding the foregoing such a final paym ent certificate shall not be issued before the
issue of the certificate of final com pletion other than where cancellation occurs in term s of 36.0, 37.0, 38.0
or 39.0. The final paym ent certificate shall be issued by:

34.5.1# The principal agent

34.5.2# No clause

34.6 The amount certified in the final paym ent certificate shall separately include:

34.6.1 The gross amount of the final account

34.6.2 The am ounts previously certified in terms of 31.4.1 and 31.4.2

34.7 The following adjustments shall be made to the net amount certified in terms of 34.6 an d sh all separately
include:

34.7.1 No clause

34.7.2 The amoun ts due to the employer or contractor in the final recovery statement in terms of 33.1
excluding interest am ounts in terms of 34.7.4

34.7.3 Tax on the net total of the am ounts in terms of 34.7.1 and 34.7.2

34.7.4 Interest amounts included in the final recovery statement in terms of 33.1

34.8 The principal agent shall certify one hundred per cent (100% ) of the amount of the final account in the final
paym ent certificate where security as a fixed construction guarantee in terms of 14.4 has been selected
or where payment reduction has been applied in term s of 14.7.1

34.9# T h e p rincipal agent shall concurrently with the issue of the final paym ent certificate issue a statement to
the employer and the contractor showing the total am ount of tax certified

34.10# The employer shall pay to the contractor the am o unt certified for payment in the final paym ent certificate
within seven (7) calendar days of the date of issue of the final paym ent certificate subject to the contractor
giving the employer a tax invoice for the amount due

34.11# Subject to 25.4 the employer shall pay the contractor compensatory interest on the net amount certified in
the final paym ent certificate. The principal ag en t shall calculate such compensation at the ruling rate of
interest compounded monthly from the date of practical com pletion up to and including the date on which
payment is due to the contractor. Such compensatory interest shall be included in the recovery statement
in terms of 33.0

34.12 W here the contractor does not receive p aym en t of the amount due in the final paym ent certificate by the
due date in terms of 34.10, the employer shall be liable for default interest on the amount. The interest shall
be calculated from the due date for payment up to and including the date on which the co n tra cto r receives
payment. The amount due and the interest thereon shall be recoverable by the co ntractor from the
employer as a debt. Such interest shall be calculated at the rate:

34.12.1# Of one hundred and sixty per cent of the interest

34 12.2# No clause

34.13 W here the final paym ent certificate reflects an amount in favour of the employer, the contractor shall pay
the amount certified with in seven (7) calendar days of the date for issue of the final paym ent certificate
subject to the employer giving the contractor a tax invoice for the amount due

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34.14 W here such an amount certified in terms of 34.10 or 34.13 has not been paid by the relevant party, the
defaulting party shall be liable for default interest in term s of 34.12 mutatis mutandis. The amount due and
the interest thereon shall be recoverable as a debt

35.0 PAYMENT TO OTHER PARTIES

35.1 T he principal agent shall issue special payment certification to other parties with copies to the c o n tra cto r
where the employer:

35.1.1 Engages other parties to execute work in terms of 17.4 or 36.5.5

35.1.2 Elects to pay a nominated or selected subcontractor direct in terms of 20.6 or 21.6

35.2 The employer may recover expense or loss resulting from such payments in terms of 33.2

CANCELLATION
36.0 CANCELLATION BY EMPLOYER - CONTRACTOR’S DEFAULT
36.1# The employer may cancel this agreem ent where the contractor:

36.1.1 Fails to comply in terms of 15.1 or 15.3

36.1.2 Refuses to comply with a contract instruction subject to 17.2

36.2# W here the employer considers cancelling this agreem ent, the principal agent sh all b e instructed to notify
the contractor of such default in terms of 36.1. The issuing of such a notice shall be without prejudice to any
rights that the employer may have

36.3 The principal agent may give notice of cancellation should th e c o n tra c tor remain in default for ten (10)
working days after the date of issue of such a notice of default

36.4 No clause

36.5 W here this agreem ent is cancelled in terms of 36.0 the following shall apply:

36.5.1 The employment of the con tra cto r sh all be cancelled and execution of the works shall cease. The
contractor shall vacate the works and the site subject to the p ro visions of 36.5.6. The contractor
shall remain responsible for the works in terms of 8.1 until possession is relinquished to the employer

36.5.2 The principal agent shall forthwith compile a report on the status of the portion of the works executed
by the contractor and shall issue such a report to the employer and the contractor

36.5.3 On completion of the status report the principal agent shall commence forthwith and complete a final
account within a reasonable time

36.5.4 The contractor shall not be relieved of any of his liabilities concerning that portion of th e works
executed by the contractor

36.5.5 The employer may employ other parties to safeguard the works, complete the outstanding work and
to rectify defects in that portion o f th e w o rk s executed by the contractor. The cost of work thus
carried out shall be certified by the principal agent and paid direct to such parties in terms of 35.0

36.5.6 The employer may use the contra c to r’s materials and goods, temporary buildings, plant and
machinery on the site for proceeding with the works

36.5.7 W hen instructed by the principal agent, the contractor shall remove from the site his tem porary
buildings, plant, machinery and surplus materials and goods within such reasonable time as
determined by the principal agent, in default of which the employer, without being responsible for any
loss or damage, may have the same rem o ved and sold. The net profit or loss of such sales shall be
for the account of the contractor

36.5.8 W here applicable in terms of 30.1 the employer shall be en titled to apply the penalty up to the date
o f c an c ellation and thereafter may recover dam ages from the contractor including, but not limited to,
extra costs incurred in the completion of the outstanding work

36.5.9 No clause

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36.5.10 The principal agent shall issue no further paym ent certificates until the quantum of damages in terms
of 36.5.8 has been determined and the final account in terms of 36.5.3 has been completed. The final
paym ent certificate shall then be issued

36.5.11 The latent defects liability period shall end in terms of 27.2.1

36.6 The em ployer’s right to cancel in terms of 36.0 may not be exercised should the employer be in material
breach of this agreem ent

37.0 CANCELLATION BY EMPLOYER - LOSS AND DAMAGE

37.1 The employer may cancel this agreem ent where:

37.1.1 The c ompleted portion of the works constructed has been substantially destroyed howsoever caused

37.1.2 The works is for alterations and/or additions to an existing buildin g w h ic h has been substantially
destroyed howsoever caused

37.2# W here the employer considers cancelling this agreem ent in term s o f 37.1, the principal agent shall be
instructed to notify the contractor of the em ployer’s intention to cancel this agreem ent

37.3 W here the employer cancels this agreem ent in terms of 37.0 the following shall apply:

37.3.1 The principal agent sh all issue a contract instruction specifying protective measures necessary to
be executed by the contractor before cessation of w ork. Cancellation shall only take effect after the
completion thereof

37.3.2 E xec ution of the works shall cease. The contractor shall remain responsible for the works in term s
of 8.1 until possession is relinquished to the employer

37.3.3 On relinquishing possession of the works, the con tra cto r shall remove from the site his tem porary
buildings, plant and machinery without delay

37.3.4 The principal agent shall forthwith compile a report on the status of the portion of the works executed
by the contractor before the destruction in terms of 37.1 occurred and includin g all w ork executed in
terms of 37.3.1 and shall issue such a report to the employer and the contractor

37.3.5 The principal agent shall forthwith c o m m en c e and complete the final account within ninety (90)
working days of completion of such a report

37.3.6 The employer shall be liable to the contractor for the cost of materials and goods including those
ordered before such cancellation where th e contractor is bound to accept and make payment. The
contractor shall deliver such m aterials and goods to the employer in good order

37.3.7 The principal agent shall continue to certify the value of the work executed and m aterials and goods
for payment until the issue of the final paym ent certificate

37.3.8 The latent defects liability period shall end in terms of 27.2.2

37.4 Neither party shall be liable for any expense and loss resulting from this cancellation other than the liabilities
in terms of 37.3

38.0 CANCELLATION BY CONTRACTOR - EMPLOYER’S DEFAULT

38.1 The contractor may cancel this agreem ent where:

38.1.1 The employer fails to appoint a principal agent or agents in terms of 5.1.1, 5.2 or 5.4

38.1.2 The employer fails to give possession of the site to the contractor in terms of 15.2

38.1.3# The employer fails to provide a paym ent guarantee in terms of 3.1

38.1.4 The principal agent fails to issue any payment certificate in terms of 31.0 or 34.0

38.1.5 The principal agent fails to issue a statement to the contractor in terms of 31.13.1

38.1.6 The employer fails to pay the am ount certified in terms of 31.9 or 34.10

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38.1.7# The employer prevents the principal agent from exercising his independent judgement regarding the
performance of his duty and the contractor being prejudiced by such action

38.2 W here the contractor considers cancelling this agree m ent, notice shall be given to the employer and the
principal agent of the default in term s of 38.1. Should such a default persist for ten (10) working days after
the date of issue of such a notice the contractor may give notice of cancellation to the employer and the
principal agent. Such cancellation shall be without prejudice to any rights that the contractor may have

38.3/4 No clause

38.5 W here the contractor cancels this agreem ent in terms of 38.0 the following shall apply:

38.5.1 Execution of the works shall cease. The contractor shall remain resp o n sib le for the works in terms
of 8.1 until possession is relinquished to the employer

38.5.2 On relinquishing possessio n o f the works, the contractor shall remove from the site his tem porary
buildings, plant and machinery without delay

38.5.3 The principal agent shall forthwith compile a report on the status of the portion of the works executed
by the contractor and shall issue such a report to the employer and the contractor

38.5.4 The principal agent shall forthwith c o m m en c e and complete the final account within ninety (90)
working days of completion of such a report

38.5.5 The emp loyer shall be liable to the contractor for the cost of materials and goods including those
ordered before such cancellation where the contra c tor is bound to accept and make payment. The
contractor shall deliver such m aterials and goods to the employer in good order

38.5.6 The employer shall be liable to the contractor for damages resulting from such cancellation

38.5.7 The principal agent shall continue to certify the value of the work executed by the contractor and the
value of m aterials and goods for payment by the employer

38.5.8 The security in terms of 14.0 shall expire and shall be returned to the contractor by th e p rin c ipal
agent

38.5.9 The latent defects liability period shall end in terms of 27.2.2

38.6 The contractor’s right to cancel in terms of 38.0 may not be exercised should the contractor be in material
breach of this agreem ent

39.0 CANCELLATION - CESSATION OF THE WORKS

39.1 Either party may cancel this agreem ent on the cessation of the works for a continuous period of ninety (90)
calendar days, or interm ittent period totalling one hundred and twenty (120) calendar days, due to
circumstances beyond the control of either party. W here such party con sid ers cancelling this agreem ent,
notice shall be given to th e o th er. S hould the party receiving the notice not object in writing within ten (10)
working days of the date of issue of such a notice the cancelling party may give notice of cancellation. Such
cancellation shall be without prejudice to any rights that either party may have

39.2# No clause

39.2.1/3# No clause

39.3 W here either party cancels this agreem ent in terms of 39.1 or 39.2 the following shall apply:

39.3.1 The principal age n t shall forthwith issue a contract instruction specifying the continuation of work
an d p ro tective measures required to bring the works to specific points of cessation. The contra cto r
may cease work should the contractor be prevented from carrying out such contract instruction due
to reasons entirely beyond his control

39.3.2 E xec u tion of the works shall cease. The contractor shall remain responsible for the works in term s
of 8.1 until possession is relinquished to the employer

39.3.3 On relinquishing possession of the works, the contractor may remove from the site his tem porary
buildings, plant and machinery

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39.3.4 The principal agent shall forthwith compile a report on the status of the portion of the works executed
by the contracto r before the cancellation of this agreem ent and shall also include all work executed
in terms of 39.2.1 and shall issue such a report to the employer and the contractor

39.3.5 The principal agent shall timeously commence and complete a final account

39.3.6 The employer shall be liable to the contractor for the cost of materials and goods including those
ordered before such cancellatio n where the contractor is bound to accept and make payment. The
contractor shall deliver such m aterials and goods to the employer in good order

39.3.7 The principal agent shall continue to certify the value of the work executed by the contractor and the
value of m aterials and goods for payment by the employer

39.3.8 The security in terms of 14.0 shall reduce to the value app lic ab le after the issue of the certificate of
practical com pletion

39.3.9 The latent defects liability period shall end in terms of 27.2.1

39.4 Neither party shall be liable to the other for any expense and loss resulting from this cancellation

DISPUTE
40.0 DISPUTE SETTLEMENT
40.1 Should any disagreement arise between the employer or his principal agent or agents and the contractor
as to any matter arising out of or concerning this agreem ent either party may give notice to the other to
resolve such disagreement

40.2 W here such disagreement is not resolved w ithin ten (10) working days of receipt of such notice it shall be
deemed to be a dispute and shall be submitted to:

40.2.1# Adjudication in terms of the edition of the JBCC Rules for Adjudicatio n c u rrent at the time when the
dispute is declared. The adjudicator shall be appointed in terms of such Rules

40.2.2# No clause

40.3# The adjudicator's decision shall be binding on the parties who shall give effect to it without delay unless and
until it is subsequently revised by an arbitrator in terms of 40.5. Should notice of dissatisfaction not be given
within the period in terms of 40.4, the adjudicator's decision shall become final and binding on the parties.

40.4# Should either party be dissatisfied with the decision given by the adjudicator, or should no decision be given
within the period set out in the Rules, such party may give notice of dissatisfaction to th e o ther party and to
the adjudicator within ten (10) working days of receipt of the decision or, should no decision be given, within
ten (10) working days of expiry of the date by which the decision was required to be given

40.5# A dispute which is the subject of a notice of dissatisfaction shall be finally resolved by the arbitrator as stated
in the schedule. W h ere su c h person is unwilling or unable to act, or where no person has been stated, the
arbitrator shall be chosen and appointed by mutual agreement between the parties. W here no agreement
is reached within ten (10) working days of such notic e, th e a rb itrator shall be the person appointed at the
request of either party by the chairman, or h is nominee, of the Association of Arbitrators (Southern Africa).
The adjudicator appointed in terms of 40.2.1 shall not be eligible for appointment as the arbitrator

40.6# The provisions o f 4 0 .2 to 40.5 shall not be construed as a waiver of the parties' entitlement to resolve a
dispute by mediation at any time

40.7 W here a dispute is submitted to mediation:

40.7.1 The parties shall agree on and appoint the mediator within ten (10) working days of the date on which
the dispute was declared

40.7.2 The parties shall meet the m e d ia tor to decide the procedures, representation and dates for the
mediation process. Thereafter the m ediator may meet the parties together or individually to help reach
a settlement

40.7.3 W here the parties reach settlement of the dispute or any part thereo f, the m ediator shall record such
agreement and on signing thereof by the parties the agreement shall be final and binding unless either
party issues a notice disputing the decision within ten(10) working days

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40.8 No clause

40.9 Recording of a dispute in terms of 40.1 shall not relieve the parties from liability fo r the due and timeous
performance of their obligations

40.10 The cancellation of this agreem ent shall not affect the validity of this clause 40.0

STATE PROVISIONS
41.0 STATE SUBSTITUTIONS
41.1 W here the employer is an organ of state as stated in the schedule:

41.1.1 The provisions listed hereunder shall be applicable

41.1.2 All standard clauses having a related state clause have the clause number marked with a “#”

41.1.3 The following clauses are to be substituted for the standard clauses printed in the body of the text:

“CONSTRUCTION PERIOD” means the period commencing on the date of acceptance of the bid as stated
in the schedule and ending on the date of practical com pletion

“INTEREST” means the interest rate in terms of legislation applicable to the State

All references to the word “tender” are replaced by the word “bid”

1.7 No clause
3.1 No clause
3.2.2 No clause
3.3 No clause
3.6.1 No clause

3.6.2 The employer

5.1.2 In terms of the clauses listed hereunder the employer has retained its authority and has no t given a
mandate to the principal agent. The employer shall sign all documen ts in relation to clauses 19.2,
20.1, 20.7, 26.2.1, 26.3.1, 29.1/2, 29.4.1, 29.4.3, 29.7, 29.8, 32.1, 32.6.1/3, 32.15 and 34.3. Copies
of the signed documents shall be provided to the principal agent

8.4 The contractor shall bear the full risk of damage to and/or destruction of the works by whatever cause during
construction of the works and hereby indemnifies and h o ld s h arm less the employer against any such
damage. The contractor shall take such precautions and security measures and other steps for the protection
and security of the works as the contractor may deem necessary

9.2 The em ployer shall bear the risk of loss in respect of all claims, proceedings, damages, costs and expenses
arising from:

9.2.5/10 No clause

9.3 The em ployer’s rights to claim damages for the contractor’s omissions and actions will not be affected

10.1 The contractor shall effect contract works insurance and, where available, supplementary insuranc e in
respect of civil commotion, riot and strike shall be effec ted for the works for contractor’s all risk and, in
ad d ition, covering the contractor’s subcontractors. Such insured amounts shall include the full valu e of
m aterials and goods supplied by the employer to the contractor. Supplementary insurance shall not be
effected where the employer makes such an election as stated in the schedule

10.2 No clause
10.4 No clause

11.1 The contractor shall effect public liability insurance for not less than the amount and the deductible as stated
in the schedule. In addition the contractor shall effect an y relevant workmen=s compensation or similar
insurances as are required by law. The contractor shall ensure that his subcontractors effect their ow n
similar insurances

11.2 Should the employer decide that the execution of the works could cause the weakening or interference with
the support of the land adjacent to the site, the employer shall state in the schedule that the contractor shall
effect support insurance

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12.1 The contractor shall effect and keep in force:

12.2 T h e c ontractor shall, prior to taking possession of the site, make available to the employer documentary
evidence that insurances have been effected. A copy of the insurance policies shall b e p rovided to the
employer within thirty (30) calendar days of possession of the site. Approval by the employer shall be
deemed unless a reasonable objection is lodged within fourteen (14) calendar days of receipt of such
policies. W here required, the contractor shall provide evidence of renewal to the employer before the expiry
of the current period of insurance

12.3 W here the contractor fails to effect any of the required insurances or to keep th em in force, the employer
may cancel this agreement in terms of 36.0

12.4 Before effecting support insurance in terms of 11.2 the contractor shall engage an engineer or technologist
to design and inspect the provision of the necessary support

14.0 No clause. See Replacement Addendum

15.1.3 No clause

15.2.1 Give the contractor possession of the site within ten (10) working days of the commencement of the
construction period provided that the contractor has complied with the terms of 15.1.1 and 15.1.2

15.2.2/3 No clause

19.2 See 5.1.2 above

20.1 See 5.1.2 above
20.7 See 5.1.2 above

21.0 No clause

22.2 No clause

25.3 Should the prin c ipal agent not issue a works completion list, in terms of 25.1 or 25.2.2, within seven (7)
calendar days from the end of the inspection period, the contractor shall notify the em ployer and principal
agent. Should the principal agent not issue such works com pletion list within seven (7) calendar days
of receipt of such notice, the em ployer may within seven (7) calendar days issue to the contractor a works
completion list. Should the employer:

25.3.1 Not issue such works com pletion list within seven (7) calendar days, then the certificate of works
completion shall be deemed to have b een issued on the date of expiry of the initial notice period and
works com pletion shall be deemed to have been achieved on such date

25.3.2 Issue a works com pletion list and the work on the works com pletion list not h ave b een completed
or where further defects have become apparent, the employer shall forthwith identify su c h item s on
the updated w o rks com pletion list and notify the contractor. The contractor shall repeat the
procedure in terms of 25.2.2 until such items have been completed to the satisfaction of the employer

26.1.2 Three hundred and sixty-five (365) calendar days from such date for items stated in the bills of
quantities

26.3.1 See 5.1.2 above

26.4 Should the principal agent not issue a defects list, in terms of 26.2.2 or 26.3.2, within seven (7) calendar
days from the end o f th e d e fe cts liability period, the contractor shall notify the em ployer and principal
agent. Should the principal agent not issue such defects list within seven (7) calendar days of receipt of
such notice, the em ployer may within seven (7) calendar days issue to the contractor a defects list. Should
the employer:

26.4.1 Not issue such defects list within seven (7) c a le n d ar days, then the certificate of final com pletion
shall be deemed to have been issued on the date of expiry of the initial notice period and final
completion shall be deemed to have been achieved on such date

26.4.2 Issue a defects list and the work on the defects list has not been completed or where further defects
have become apparent, the employer shall forthwith identify such item s on the updated defects list
and notify the contractor. The contractor shall repeat the procedure in terms of 26.3.2 until such items
have been completed to the satisfaction of the employer

26.5 No clause
26.5.1/2 No clause

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26.6 A certificate of final com pletion issued in terms of 26.0 shall be prima facie evidence as to the suffic ien cy
of the works and that the contractor’s obligations in terms of 2.0 and 15.0 have been fulfilled other than for
latent defects

27.1 The latent defects liability period shall commence at the start of th e c o n struction period and end ten (10)
years from the date of final com pletion where final com pletion in terms of 26.0 is achieved

27.2 W here cancellation of this agreem ent occurs before the achievement of final com pletion the latent defects
liability period shall end ten (10) years from the date of cancellation

27.2.1/2 No clause

29.1 See 5.1.2 above

29.2 See 5.1.2 above
29.3 See 5.1.2 above
29.4.1 See 5.1.2 above
29.4.3 See 5.1.2 above
29.7 See 5.1.2 above
29.8 See 5.1.2 above

31.4.2 A reasonable estimate of the value of m aterials and goods in terms of 31.6 unless the e m p lo yer
elects not to pay for such as stated in the schedule

31.6.5 No clause

31.8 See Addendum

31.9 The employer shall pay the contractor the amount certified within twenty-one (21) calendar days of the date
for issue of the paym ent certificate. Payment shall be subject to the contractor giving the employer a tax
invoice for the amount due

31.10 No clause
31.11.1 No clause

31.11.2 Applicable in terms of the relevant State legislation as indicated in the schedule

31.12 W here a paym ent certificate reflects an amount in favo u r of th e employer, the contractor shall pay the
amount certified within twenty-one (21) calendar days of the date of issue of the paym ent certificate. W here
such an amount has not been paid, the contractor shall be liable for default interest and the principal agent
shall include such an amount in the recovery statement in terms of 33.0. Payment shall be subject to the
em ployer giving the contractor a tax invoice for the amount due. The principal agent sh all calculate such
interest at the rate:

31.12.1 No clause

31.12.2 Applicable in terms of the relevant State legislation as indicated in the schedule

31.16.1/2 No clause

32.1 See 5.1.2 above

32.4.3/4 No clause

32.6.2 See 5.1.2 above

34.1.1 No clause

34.1.2 One hundred and twenty (120) working days

34.2 The principal agent shall allow the employer twenty (20) working days, within the period provided in 34.1.2
to accept the final account before presentation to the contractor in terms of 34.3

34.5.1 No clause

34.5.2 The employer

34.9 The em ployer shall concurrently with the issue of the final paym e n t ce rtific a te issue a statement to the
contractor showing the total am ount of tax certified

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34.10 The emp lo yer shall pay to the contractor the amount certified for payment in the final paym ent certificate
within twenty-one (21) calendar days of the date of issue of the final paym ent ce rtificate subject to the
contractor giving the employer a tax invoice for the amount due

34.11 No clause
34.12.1 No clause

34.12.2 Applicable in terms of the relevant State legislation as indicated in the schedule

36.1 The employer may, without prejudice of any other rights available to him, cancel this a g re em e n t where the
contractor:

36.2 W h ere the contractor is in default, the employer may notify the contractor, either directly or through th e
principal agent, of his default and of the em ployer’s intention to can c el this agreem ent in terms of 36.1,
should the default not be remedied

37.2 W here the employer considers cancelling this agreem ent in terms of 37.1, the employer shall notify the
contractor of the em ployer’s intention to cancel this agreem ent

38.1.3 No clause
38.1.7 No clause

39.2 The employer shall b e entitled at any time to unilaterally terminate or cancel this agreem ent or any part
thereof. Save for the following the contractor shall not b e en titled to claim any other amounts whatsoever
in respec t o f su ch termination or cancellation of this agreem ent. The employer shall be obliged to pay the
contractor as damages and/or loss of profit the lesser of:

39.2.1 An amount not exceeding ten per cent (10%) of the contract sum

39.2.2 Ten per cent (10% ) of the value of incomplete work

39.2.3 T h e c o ntractor’s actual damage or loss as determined by the em ployer after receipt of evidenc e
substantiating any such dam age or loss

40.2.1 No clause

40.2.2 Litigation where the em ployer so elects in terms of the schedule. Institu tion of the action shall be
c o m m en c ed and process served within one (1) year from the date of existence of the dispute, failing
which the dispute shall lapse

40.3 to 6 No clause

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CONTRACT VARIABLES
THE SCHEDULE
This schedule contains all variab les referred to in this document and is divided into pre-tender and post-
tender categories. The pre-tender category must be completed in full and included in the tender documents.
Both the pre-tender and post-tender categories form part of this agreem ent

Spaces requiring information must be filled in, shown as ‘not applicable’ or deleted and not left blank. W here
choices are offered, the non-applicable item s are to be d eleted . W here insufficient space is provided the
information should be annexed hereto and cross referenced to the applicable clause of the schedule.

Key cross reference clauses are italicised in [ ] bra c k e ts a s an aid to the user and cannot be relied upon
exclusively as indicating all related clauses

42.0 PRE-TENDER INFORMATION

42.1 CONTRACTING AND OTHER PARTIES
Macho group
42.1.1 Em ployer

Postal address

Code

Tel Fax E-mail

Tax / VAT registration No

[1.2] Physical address

42.1.2 Principal Agent

[5.1]
Postal address

Code

Tel Fax E-mail

42.1.3 Agent (1)

[5.2]
Agent’s service

Postal address

Code

Tel Fax E-mail

42.1.4 Agent (2)

[5.2]
Agent’s service

Postal address

Code

Tel Fax E-mail

42.1.5 Agent (3)

[5.2]
Agent’s service

Postal address

Code

Tel Fax E-mail

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42.1.6 Agent (4)

[5.2]
Agent’s service

Postal address

Code

Tel Fax E-mail

42.1.7 Agent (5)

[5.2]
Agent’s service

Postal address

Code

Tel Fax E-mail

42.1.8 Agent (6)

[5.2]
Agent’s service

Postal address

Code

Tel Fax E-mail

42.1.9 Agent (7)

[5.2]
Agent’s service

Postal address

Code

Tel Fax E-mail

42.2 CO NTRACT DETAILS

42.2.1 W orks description

42.2.2 Site description

42.2.3 W ork or installations

[22.2] by direct contractors

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42.2.4 Specific options that are applicable to a State organ only

[41.0] W here so:
[31.11.2#] (1) Interest rate legislation

[11.2#] (2) Lateral support insurance to be effected by the contractor (yes/no)

[31.4.2#] (3) Payment will be made for m aterials and goods (yes/no)

[40.2.2#] (4) Dispute resolution by litigation (yes/no) Vredefort Dome

[26.1.2#] (5) Extended defects liability period applicable to the following elem ents:

42.2.5 Possession of the site is to be given on

[15.2.1#] (date)

42.2.6 Period for the commencement of the works after

[15.3] the contractor takes possession of the site (working days)

42.2.7 For the works as a whole: Date Penalty am ount

[24.3.1] The date for practical com pletion
[30.1] and the penalty per calendar day
or
42.2.8 For the works in sections:
[24.3.1] The date for practical com pletion Date Penalty am ount
[28.1] and the penalty per calendar day
Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

42.2.9 The law applicable to this agreem ent shall be that of

[1.2] (country)

42.3 INSURANCES

42.3.1 Contract works insurance to be effected by

[10.1#, 10.2#, 12.1#] (Employer/Contractor)

For the sum of (amount)

W ith a deductible of (amount)

42.3.2 Supplementary insurance is required

[10.1#, 10.2#, 12.1#] (yes/no)

(W here ‘yes’ state requirement)

42.3.3 Public liability insurance to be effected by

[11.1#,12.1#] (Employer/Contractor)

For the sum of (amount)

W ith a deductible of (amount)

42.3.4 Support insurance to be effected by the employer

[11.2#,12.1#]
For the sum of (amount)

W ith a deductible of (amount)

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42.4 DO CUMENTS

42.4.1 W aiver of the contractor’s lien or right of continuing possession is required

[3.3, 15.1.3, 31.16.2#] (yes/no)

42.4.2 Construction document copies to be supplied

[3.7] to the contractor free of charge (N o of)

42.4.3 Bills of quantities/Lum p sum docum ent schedule of rates drawn up in accordance with

(state measuring system)

42.4.4 On acceptance of the tender the bills of quantities/lum p sum docum ent
[15.1.1] is to be submitted within working days (N o of)

42.4.5 JBCC Engineering General Conditions are to be included

[3.4] in the contract docum ents (yes/no)

42.4.6 The contract value is to be adjusted using CPAP indices

[31.5.3] (yes/no)

[32.13] W here CPAP is to be used (base month)

Alternative Indices (if applicable)

42.4.7 Details of changes made to the provisions of JBCC standard documentation

[3.10] [An addendum referenced to this clause is to be attached should the space provided be insufficient]

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42.0 POST-TENDER INFORMATION

Note: All information for this sectio n re q u ires consultation with the contractor. The principal agent shall not
preselect any of the alternatives available to the contractor

42.5 CO NTRACT DETAILS

Vredefort Dome
42.5.1 Contractor

Postal address

Code

Tel Fax E-mail

Tax / VAT registration No

[1.2] Physical address

42.5.2 The accepted contract sum inclusive of tax is (amount)

In words

42.5.3 The latest day of the month for the issue

[31.3] of an interim paym ent certificate (day of month)

42.5.4 The preliminaries amounts shall be

[32.12] paid in terms of (Alternative A or B)

42.5.5 The preliminaries amounts shall be

[32.12] adjusted in terms of (Alternative A or B)

42.5.6 The paym ent guarantee to be effected by the employer

[3.1#] for the sum of (amount)

42.5.7 The securities to be provided by the contractor are:

[14.3] (1) Variable construction guarantee (yes/no)

[14.4] (2) Fixed construction guarantee (yes/no)

[14.5] (3) Advance paym ent guarantee (yes/no)

42.5.8 The annual building holiday period after the

[29.7.2] commencement of the construction period (dates ) to

42.6 DO CUMENTS

42.6.1 Contract docum ents marked and annexed hereto:

Priced bills of quantities (yes/no) (marked)

Lum p sum docum ent (yes/no) (marked)

Guarantees (yes/no) (marked)

Contract drawings (yes/no) (marked)

Other documents (yes/no) (marked)

42.6.2 Signed set of contract docum ents originals held by principal agent (yes/no)
[3.6.1#]
If “No” held by

Postal address

Code

Tel Fax E-mail

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42.7 DISPUTE RESOLUTION

42.7.1 The default dispute resolution process is adjudication

[40.2.1#] (Insert arbitration only where adjudication is not to apply)

Note: It is considered good practice to name the person to be appointed or the body to make such appointment

42.7.2 W here adjudication is elected:

(1) Adjudicator

Postal address

Tel Fax E-mail

or

(2) Adjudicator to be appointed by (name body)

42.7.3 W here arbitration is elected or is required in terms of 40.5:

(1) Arbitrator

Postal address

Tel Fax E-mail

or

(2) Arbitrator to be appointed by (name body)

42.7.4 W here mediation is elected in terms of 40.6:

(2) Mediator

Postal address

Tel Fax E-mail

or

(2) Mediator to be appointed by (name body)

42.8 SIGNATURES OF THE CONTRACTING PARTIES

Thus done and signed at on

Name of signatory for and on behalf of the employer who by

signature hereof warrants authorisation hereto

Capacity of signatory
as W itness

Thus done and signed at on

Name of signatory for and on beh alf of the contractor who

by
signature hereof warrants authorisation hereto

Capacity of signatory
as W itness

JBCC Series 2000 Edition 4.1 Code 2101 © March 2005

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INDEX OF DEFINITIONS
Note: Multiple occurrences of the defined item may occur on the listed pages

Defined Item Pages

Adjudicator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 27, 37
Advance Payment Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 4, 9, 19, 22, 36
Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-6, 8-33, 36

Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5, 7, 9-13, 15, 16, 20, 22, 24-32, 34

Arbitrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 27, 37
Bills of Quantities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 2, 4, 5, 9, 17, 20, 21, 29, 35, 36

Budgetary Allowance(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 10, 21

Calendar Day(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 3, 4, 8, 9, 12-15, 18, 19, 22, 23, 26, 29-31
Certificate of Final Completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 6, 8, 15, 16, 23, 29, 30

Certificate of Practical Completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 6, 14, 16, 27

Certificate of W orks Completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 14-16, 29
Construction Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 4, 8, 9, 19, 22, 23, 36

Construction Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 8, 11, 16, 28-30, 36

Contract Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5, 10, 17, 20, 21, 35, 36
Contract Drawings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 36

Contract Instruction(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1- 6, 11-14, 17, 20, 24-26

Contract Sum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3, 8-10, 12, 13, 19-21, 31, 36
Contract Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 6, 11, 16-18, 20, 21, 35

Contractor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-31, 34-37

CPAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 18, 19, 21, 35
Defect(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 6, 10, 11, 14, 15, 24

Direct Contractor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 6, 7, 10, 13, 17, 21

Employer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-32, 34, 36, 37
Final Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 16, 21-27, 30

Final Completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 2, 6, 8, 10, 15, 16, 19, 23, 29, 30

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 15, 18, 19, 21-23, 28, 30, 34
JBCC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 2, 4, 5, 8, 9, 11-13, 21, 27, 35, 37

Latent Defect(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 6, 16, 25, 27, 29, 30, 34

Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 3, 7-9, 28, 34
Lump Sum Document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 2, 4, 5, 9, 20, 21, 35, 36

Materials and Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 3, 5-7, 10, 16-20, 24-28, 30, 34

Mediator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 27, 37
Nominated Subcontractor(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 11, 12, 17, 21

Payment Certificate(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 4, 9, 16, 18-25, 30, 31, 36

Payment Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 2, 4, 9, 12, 13, 19, 20, 22, 25, 36
Penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 18, 24, 34

Practical Completion . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3, 5-7, 9-11, 14, 16-20, 22, 23, 27, 28, 34
Prime Cost Amount(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 10, 21
Principal Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-6, 8-32, 36

Recovery Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 18, 19, 21-23, 30

Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-10, 13, 14, 16-18, 20, 21, 27, 28, 30-32, 35
Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3, 10, 16, 18, 34, 36

Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 8, 9, 12, 13, 16, 18, 19, 22, 23, 26-28

Selected Subcontractor(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 5, 12, 13, 17, 19, 24
Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-11, 14, 17, 19, 21, 24-26, 28, 29, 33, 34

State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 4, 14, 17, 28, 30, 31, 34, 35

Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 3, 17-20, 23, 30-32, 36
W orking Day(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 3, 5, 11-13, 15, 17, 21-27, 29, 30, 34, 35

W orks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-21, 24-26, 28-30, 33, 34

W orks Completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 3, 10, 14-16, 29

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SCHEDULE OF CHANGES TO THE PREVIOUS EDITION

Legend

New A clause has been added # State alternative clauses. See 41.0
Amended The clause has been changed º The clause has been renumbered
Deleted The clause has been rem oved 40.1/7 The sequence of clauses 40.1 to 40.7
Redrafted The clause has been reworded No clause No retained or inserted to avoid
renumbering or provide for alternatives

Definitions Revision Definitions Revision

Arbitrator Redrafted Interest Amended

Adjudicator Redrafted Mediator Redrafted
Construction Guarantee Amended Payment Guarantee Amended
Contract Sum Amended Section Amended

Clause Revision Clause Revision Clause Revision Clause Revision

1.5.2 Amended 24.2 Redrafted 32.4.3# Amended 36.3# State

2.0 Amended 26.1 Amended 32.6# State 38.1.1 Amended
2.3 New 26.1.2 State 32.6.1# State 38.1.3 Amended

3.4 Amended 26.2 Redrafted 32.6.2# State 38.6 Redrafted

5.1.2# Amended 27.1# Amended 32.6.3# State 40.1 Amended
7.1 Amended 29.4.1# State 32.6.1# State 40.2/6# Redrafted

9.2.10 Amended 29.5 Amended 32.8 Amended 40.7.1 Amended

10.3 Amended 29.7.2 Amended 33.4 Amended 40.8/10 New
11.2 Am ended 30.1 Am ended 34.1# Am ended 41 º 42.0

13.0 º 41.0 31.1 Amended 34.1.1# New 41.0 Substitutions

14.7.1 Amended 31.5.2 Amended 34.1.2# Amended 5.1.2 Amended
17.1.6 Amended 31.7 Amended 34.3 Amended 26.1.2 Amended

17.5 Am ended 31.8# Am ended 34.8 Am ended 31.8 See Addendum

19.2# State 31.10# Amended 34.11# Amended

Note: 1 Inconsequential wording and typographical corrections have not been listed
2 Reprints of this edition may include further inconsequential wording and typographical
corrections

22 April 2024