Principal

Building
Agreement
This agreement is for use
with
Bills of Quantities

PROJECT

EMPLOYER

CONTRACTOR

CONTRACT DATE

JUNE 1991 EDITION

Incorporating November 1992 amendments
DEFINITIONS
1.0 DEFINITIONS AND INTERPRETATION
1.1 Where the words and phrases are highlighted in the text of this agreement they shall bear the meaning
assigned to them in clause 1 and where such words and phrases are not highlighted they shall bear the
meaning consistent with the context
1.1.1 “ARCHITECT” means the person so named in the schedule who shall be registered in terms of the
Architect’s Act of 1970 or the partnership, the incorporated company, the limited company or the close
corporation so named in the schedule which shall comply with the terms of the aforementioned Act
1.1.2 “ARCHITECT’S INSTRUCTIONS” means instructions issued by the architect to the contractor in
accordance with the architect’s authority in terms of this agreement and includes instructions issued by
other agents of the employer which instruction shall be duly authorised by the architect
1.1.3 “BILLS OF QUANTITIES” means the document drawn up in accordance with the edition of the Standard
System of Measuring Builders’ Work issued by the Association of South African Quantity Surveyors as
stated in the schedule, priced by the contractor in terms of the accepted tender or negotiated sum to
reflect the value of the works
1.1.4 “BUDGETARY ALLOWANCE “ means a sum of money provided in the bills of quantities for work
intended for execution by the contractor , the extent of which is not defined
1.1.5 “CERTIFICATE OF FINAL COMPLETION” means a certificate issued by the architect to the contractor
accepting that final completion of the works has been achieved
1.1.6 “CERTIFICATE OF PRACTICAL COMPLETION” means a certificate issued by the architect to the
contractor accepting that practical completion of the works has been achieved
1.1.7 “CONSTRUCTION GUARANTEE” means a guarantee at call obtained by the contractor from an
institution approved by the employer on the form issued by the JBCC for the maximum amount stated in
the schedule
1.1.8 ”CONSTRUCTION PERIOD” means the period of time commencing on the day after the date on which
possession of the site is given to the contractor and ending on and including the date on which it is
intended to achieve practical completion . The construction period shall include all extensions granted
in terms of clause 23. The above dates are stated in the schedule
1.1.9 “CONTRACT DOCUMENTS” means this agreement, the contract drawings , the bills of quantities, and
such other documents as are identified in the schedule
1.1.10 “CONTRACT DRAWINGS” means the drawings identified in the schedule
1.1.11 “CONTRACTOR” means the contracting party so named in the schedule
1.1.12 “CONTRACT SUM ” means the value of the works as reflected in the bills of quantities and as stated in
the schedule
1.1.13 “DEFECT” means any aspect of the works which is not to the reasonable satisfaction of the architect
and, without limiting the generality of the aforegoing, includes the lack of an essential element of
completeness of any aspect of the works
1.1.14 “EMPLOYER” means the contracting party so named in the schedule
1.1.15 “FINAL ACCOUNT” means the document prepared by the quantity surveyor in which is schedule the
valuations of all the variations to the contract sum in terms of clause 28 reflecting the adjusted contract
sum which in the opinion of the quantity surveyor is the value of the works at final completion
1.1.16 “FINAL COMPLETION” means the state of completion of the works where in the opinion of the architect
the works are complete and free of all patent defects
1.1.17 “INTEREST” means in monetary terms a rate which is one-hundred-and-ten percent (110%) of the current
rate of interest applicable from time to time to prime borrowers of the non-defaulting party’s bank name d in
the schedule
1.1.18 “JBCC” means the Joint Building Contracts Committee
1.1.19 “LATENT DEFECT” means a defect which a reasonable inspection of the works by the architect
would not disclose
1.1.20 “LATENT DEFECTS LIABILITY PERIOD” means the period which begins on the date of commencement
of the construction period and terminates five (5) years from the date of the certificate of final
completion
1.1.21 MATERIALS AND GOODS” means materials and goods delivered to the contractor or his sub-
contractors for inclusion in the works whether stored on site , adjacent to the site , off site or in transit to
the site but not yet part of the works
1.1.22 “NOMINATED SUB-CONTRACT AMOUNT” means a sum of money provided in the bills of quantities
for work to be executed by a nominated sub-contractor
1.1.23 “PATENT DEFECT” means a defect which a reasonable inspection of the works by the architect would
disclose
1.1.24 “PATENT DEFECTS LIABILITY PERIOD” means the period commencing on the day after the date of
issue of the certificate of practical completion and terminating at midnight (00:00) ninety (90) days from
that date
1.1.25 “PAYMENT CERTIFICATE” means a certificate indicating the amount due and payable by the employer
to the contractor in terms of clause 30
1.1.26 “PRACTICAL COMPLETION” means the state of completion where in the opinion of the architect the
works is substantially complete and can effectively be used for the purpose intended
1.1.27 “PRIME COST AMOUNT” means a sum of money provided in the bills of quantities for materials and
goods to be obtained from a supplier nominated by the architect and to be fixed by the contractor
1.1.28 “PROVISIONAL AMOUNTS” means nominated sub -contract amounts, selected sub-contract
amounts, prime cost amounts and budgetary allowances and any other monetary provisions
1.1.29 “QUANTITY SURVEYOR” means the person so named in the schedule who shall be registered in terms
of the Quantity Surveyor’s Act of 1970 or the partnership, the incorporated company, the limited company
or the close corporation so named in the schedule which shall comply with the terms of the
aforementioned Act
1.1.30 “RECONCILIATION STATEMENT” means the document drawn up by the quantity surveyor assisted by
the architect and other agents of the employer listing all items in favour of either of the contracting
parties and not included in the final account by which the amount certified in the final payment
certificate shall be adjusted in order to reflect the final amount due by one contracting party to the other in
final settlement of all claims in terms of this agreement which claims shall exclude claims arising out of
latent defects
1.1.31 “SCHEDULE” means the items related to this agreement as listed in clause 38
1.1.32 “SELECTED SUB-CONTRACT AMOUNT” means a sum of money provided in the bills of quantities for
work to be executed by a selected sub-contractor
1.1.33 “SITE” is the place so described in the schedule
1.1.34 “WORKS ” means the works and temporary works designed by the employer, the architect or other
agents of the employer as described in the schedule and detailed in the contract documents and
variations in terms of clause 17 including the contractor’s and his sub-contractor’s temporary works
1.1.35 In the context of clauses 8 to 13, works shall further include materials and goods as defined in clause
1.1.21 as well as materials and goods supplied free or otherwise by the e mployer to the contractor
1.2 The employer and the contractor choose domicilium citandi et executandi at their respective addresses as
stated in the schedule where notices or processes or both arising out of or in connection with this agreement
may be validly delivered to or served on them. Either contracting party may, at any time, by notice to the
other contracting party, change its domicilium citandi et executandi to some other address, provided that such
new address shall be in the Republic of South Africa
1.3 References in this agreement to other documents shall mean the latest edition thereof with all amendments
thereto at the date for submission of tender
1.4 The date of issue of any certificate referred to in this agreement shall be the date on which the certificate is
signed by the party authorised in this agreement to issue such certificate and unless the contrary is proved,
the date of signature shall be the date appearing on the certificate
1.5 All references to days shall mean days of twenty-four (24) hours duration commencing at midnight (00:00)
and which shall include non-working days unless otherwise stated
1.6 The headings of clauses in this agreement are for reference purposes only and shall not be taken into
account in construing the context thereof
1.7 In this agreement, unless inconsistent with the context, the words “notice”, “notify”, “notification”, “certify”,
“certification” and “issue” shall connote an act to be carried out in writing
1.8 In this agreement, unless inconsistent with the context, the masculine includes the other gender, the singular
includes the plural and vice versa, and persons shall include bodies corporate
1.9 Any document or notice sent by a party in terms of this agreement by prepaid registered post addressed to
the other party at his domicilium citandi et executandi shall be deemed to have reached the other party within
seven (7) days from date of posting
1.10 This agreement constitutes the whole agreement between the parties and no variation, amendment or
addition to any of the terms and conditions shall have any force or effect unless reduced to writing and signed
by both the contractor and the employer
1.11 The only law applicable to this agreement is the law of the Republic of South Africa

OBJECTIVE
2.0 EXECUTION OF AND PAYMENT FOR THE WORKS
2.1 This agreement is made between the contractor and the employer who is desirous of having the works
executed by the contractor
2.2 The contractor shall provide everything necessary for the works and shall execute the works in terms of this
agreement to the reasonable satisfaction of the architect
2.3 The employer shall pay the contractor for the execution of the works in terms of this agreement

PREPARATION
3.0 DOCUMENTS
3.1 The architect shall arrange for the formal signing of this agreement once the construction guarantee and
the insurance provisions have been effected
3.2 This clause shall not be construed as requiring a formal signature by the parties to render such agreement
valid
3.3 The contract documents shall be held by the architect and shall be produced as and when required by the
employer, the contractor or the quantity surveyor. The architect shall furnish to the contractor one (1)
copy of the signed contract documents at the expense of the employer. The number of copies in terms of
the schedule of the drawings and the unpriced bills of quantities and other documents shall be supplied to
the contractor by the architect at the expense of the employer. The contractor shall keep one (1) copy of
all drawings, one (1) copy of the unpriced bills of quantities and all architect’s instruct ions at the site to
which the employer, the architect and the quantity surveyor shall have access at all reasonable times
3.4 None of the previously mentioned documents shall be used by either contracting party, their servants or
agents, for any purpose other than for this agreement and none of the information contained in the bills of
quantities shall be divulged or used except for the purpose of this agreement

4.0 DESIGN
4.1 The contractor shall not be responsible for the design of the works undertaken by the employ er or the
employer’s agents nor shall the contractor be responsible for the primary co-ordination of design elements
4.2 Any design responsibility undertaken by a nominated or selected sub-contractor shall not devolve upon the
contractor and the contractor hereby cedes to the employer all contractual or other rights he shall have
against such nominated or selected sub-contractor arising from any design responsibility undertaken by such
nominated or selected sub-contractor. Any warranty regarding such design responsibility is hereby ceded to
the employer whether or not such design warranty is referred to in the sub-contract agreement

5.0 EMPLOYER’S AGENT

5.1 The employer shall for the purpose of this agreement appoint at his own cost:
5.1.1 an architect as principal agent and in the event of his inability to act or ceasing to be the architect for the
purpose of this agreement, another architect
5.1.2 a quantity surveyor as agent and in the event of his inability to act or ceasing to be the quantity
surveyor for the purpose of this agreement, another quantity surveyor
5.2 The employer may also appoint at his own cost:
5.2.1 other agents for the purpose of this agreement as named in the schedule
5.2.2 a clerk of works who shall act solely as inspector on behalf of the employer under the direction of the
architect
5.3 The architect shall be the sole agent:
5.3.1 empowered to issue an architect’s instruction unless the architect delegates this authority in writing to
other agents as identified in clause 5.2.1, and
5.3.2 on whom notices in terms of this agreement shall be served except notices in terms of clauses 35, 36 and
37 which shall be served on the employer in terms of clause 1.2
5.4 An agent appointed after the signing of this agreement shall not be a person against whom the contractor
shall make reasonable objection
5.5 The contractor shall afford all agents of the employer appointed for the purpose of this agreement every
reasonable facility for the performance of their duties in terms of this agreement

6.0 CONTRACTOR’S REPRESENTATIVE

6.1 The contractor shall keep continuous ly on site during the execution of the works a competent person to
administer and control the works. The name of such representative shall be advised in writing to the
architect by the contractor. Any instruction given to such representative by the architect shall be deemed
to be an architects instruction
7.0 COMPLIANCE WITH REGULATIONS
7.1 The contractor shall comply with all of parliament and all regulations and by-laws of local or other authorities
having jurisdiction regarding the execution of the works and the contractor hereby indemnifies the employer
in this connection except where the employer is responsible for design in terms of clause 4. The contractor
shall give all notices and pay all charges required by the above authorities and the amounts thus paid shall be
dealt with in terms of clause 28.4
7.2 Before making any departure from contract documents necessitated by such compliance, the contractor
shall give notice to the architect stating the reason for such change and requesting an architect’s
instruction
Where the contractor does not receive such architect’s instruction within seven (7) days after receipt by
the architect of the contractor’s notice, he shall proceed to execute or alter the works in order that the
works shall comply with the act of parliament, regulation or by-law in question and any change necessitated
as aforesaid shall be deemed to be authorised as if by an architect’s instruction

8.0 WORKS RISK

Clause 8.1 – revised
8.1 The contractor shall take full responsibility for the care of the works from and including the date of the
contractor taking possession of the site up to and including the date of issue of the certificate of practical
completion. On the day after the date of issue of the certificate of practical completion responsibility for
the care of the works shall pass to the employer. In the case of sectional completion in terms of clause 26,
responsibility for care of that portion of the works for which a certificate of practical completion has been
issued shall likewise pass to the e m ployer
8.2 Subject only to the provision of clause 34, the contractor shall make good physical loss or repair damage to
the works, which shall include clearing away and removing from site all debris resulting therefrom, occurring
after the commencement of the construction period and prior to or on the date of issue of the certificate of
final completion and resulting from any cause whatsoever arising:
8.2.1 prior to or on the date of issue of the certificate of practical completion
8.2.2 after the date of issue of the certi ficate of practical completion and prior to or on the date of the issue of
the certificate of final completion and arising in the course of an caused by the contractor or his sub-
contractors carrying out any operation for the purpose of complying with the contractor’s obligations in
terms of this agreement
Where sectional completion is required in terms of clause 38.3.3 of the schedule the above also applies to
each section
8.3 The contractor shall be liable for the cost of making good physical loss or repairing damage to the works
except where such loss or damage results from the following circumstances:
8.3.1 war and related risks as recited in the standard South African Insurance Association Exceptions or any
occurrences provided for in terms of the War Damage Insurance and Compensation Act
8.3.2 riot and related risks as insurable under and recited in a policy offered by or on behalf of the South African
Special Risks Insurance Association, unless such insurance is provided for in terms of clause 10.1
8.3.3 nuclear risks as referred to in the relevant standard exclusions incorporated in a construction risks policy
offered by a member of the South African Insurance Association
8.3.4 confiscation, nationalisation or requisition by any public or local authority
8.3.5 sonic shock waves caused by aircraft or other aerial devices
8.3.6 the use or occupation of any part of the works by the employer or the employer’s servants or agents
8.3.7 an act or omission of the employer, the employer’s servants or agents and those for whose acts or
omissions they are responsible
8.3.8 An act or omission by others engaged by the employer in terms of clause 22 and those for whose acts or
omissions they are responsible
8.3.9 Design by the employer, the architect, other agents of the employer, a nominated sub-contractor, a
selected sub-contractor or any of their servants or agents
8.3.10 a latent defect in materials and goods specified by trade name subject to the contractor ceding to the
employer any right of action that may exist against the supplier or manufacturer or both of such materials
and goods . The contractor shall not be liable for latent defects in such materials and goods whether
part of the works or not
8.4 Where the contractor is liable for the cost of making good physical loss or repairing damage to the works
and where such cost exceeds the amount of the construction risk insurance arranged in terms of clause 10,
the contractor shall not be liable for that cost in excess of such amount irrespective of the cause of such loss
or damage
8.5 Where the contractor is liable for the cost of making good physical loss or repairing damage to the works,
such cost shall include the cost of additional professional services of the employer’s agents in terms of
clause 5, necessitated by such loss or damage which shall form part of the contractor’s limit of liability in
terms of clause 8.4
8.6 Where the contractor is not liable for the cost of making good physical loss or repairing damage to the works
such loss or damage shall be measured and valued in terms of clause 28 and added to the contract sum
8.7 The contractor shall immediately notify the architect or physical loss or damage to the works

9.0 INDEMNITIES
9.1 Subject only to the exclusions in terms of clause 9.2, where a third party claim has been made against either
the contractor or the employer or both consequent upon the death of or bodily injury to or illness of any
person or loss or damage to any property (other than the works ) arising out of or by reason of the execution
of the works or occupation of the site by the contractor , then:
9.1.1 the employer shall not be liable for any loss of whatsoever nature suffered by the contractor as a result
thereof and
9.1.2 the contractor hereby indemnifies the employer against any loss in respect of all claims, proceedings,
damages, costs and expenses
9.2 Where such loss suffered by the employer or contractor or both originates from any of the excluded
circumstances as listed in clause 9.3 then:
9.2.1 the contractor shall not be liable for any loss of whatsoever nature suffered by the employer as a result
thereof and
9.2.2 the employer hereby indemnifies the contractor against any loss in respect of all claims, proceedings,
damages, costs and expenses
9.3 The excluded circumstances referred to in clause 9.2 are:
9.3.1 an act or omission of the employer his servants or agents and those of whose acts or omissions they are
responsible
9.3.2 an act or omission of others engaged by the employer in terms of clause 22 or those for those whose acts
or omissions they are responsible
9.3.3 design by the employer, the architect, other agents of the employer, a nominated sub-contractor,
selected sub-contractor or any of their servants or agents
9.3.4 the use or occupation of land by the works
9.3.5 the right of the employer to execute the works or any part thereof on, over, under, in or through any land
9.3.6 interference with any servitude or other right which is the unavoidable result of the execution of the works
which shall include the weakening of or interference with the support of land unless resulting from any
negligent act or omission on the part of the contractor, his sub-contractors, or others for whose acts or
omissions the contractor and his sub-contractors are responsible
9.3.7 physical loss or damage to an existing structure in respect of which this agreement is for an alteration or
addition thereto where such loss or damage is caused by fire, explosion, earthquake, malicious damage
and special perils as insurable by
9.3.8 physical loss or damage to the contents of an existing structure in respect of which this agreement is for
an alteration or addition thereto and / or the contents of the works or the section thereof in terms of clause
26 where practical completion has been achieved in terms of clause 24 where such contents are owned
by or are the responsibility of the employer and where such loss or damage is caused by fire, explosion,
earthquake, ma licious damage and special perils as insurable by a member of the South African
Insurance Association
9.4 The employer hereby indemnifies the contractor against any loss resulting from:
9.4.1 insurance arranged in terms of this agreement being prejudiced as a result of the occupation of any part of
the works by the employer or his tenants or as a result of any act or omission of the employer or his
tenants and their servants or agents
9.4.2 insurances of the works arranged in terms of clause 10.1 proving to be inadequate as to the amount
9.5 The contractor shall hold the employer harmless in respect of physical loss or damage to any plant,
equipment or other property belonging to the contractor or for which he is responsible and he hereby
indemnifies the employer against any loss in respect of all claims, proceedings, damages, costs and
expenses consequent upon the loss of or damage to any plant, equipment or other property belonging to, or
which is the responsibility of, any sub-contractor, agent or employee of the sub-contractor

10.0 WORKS INSURANCES

10.1 Construction risk insurance, and where required, insurance with the South African Special Risks Insurance
Association shall be effected by the contracting party for the amounts and deductibles, all as stated in the
schedule in the joint names of the employer, the contractor and the contractor’s sub-contractors from the
date of possession of site by the contractor. Such insured amounts shall include the full value of the
materials and goods supplied free or otherwise by the employer to the contractor. These insurances shall
be kept in force until the responsibility of the contractor in terms of clause 8 has terminated
10.2 The contracting party responsible for effecting the aforesaid insurances shall make available to the architect
as soon as possible documentary evidence of the insurances to the extent required by the other contracting
party, for that party’s approval within fourteen (14) days. Such approval shall not be unreasonably withheld
and if not dissented from within the said fourteen (14) days such approval shall be deemed to have been
given
10.3 The contracting parties shall comply with any conditions of the insurances relative to the notification and
subsequent handling of claims
10.4 Subject only to clause 10.5 the right to any claims paid or payable under the insurances referred to in clause
10.1 shall vest in the contracting party which is entitled to indemnity thereunder and such contracting party
shall also be liable for the deductible
10.5 Where the agreement is cancelled in terms of claus e 34 and where the contractor is not required to make
good the physical loss and repair the damage to the works the rights to claims paid or payable under the
insurances referred to in clause 10.1 shall vest in the employer who shall be liable for the deductible

11.0 LIABILITY INSURANCES

11.1 In addition to workmen’s compensation insurance, the contractor shall effect employer’s liability insurance.
The contracting party named in the schedule shall effect public liability insurance for not less than the
amount and the deductible as stated in the schedule to insure the joint interests of the contractor and
employer from the date of possession of site by the contractor. These insurances shall be kept in force
until the date of the issue of the certificate of final completion and, where sectional completion is required
in terms of the schedule, shall be kept in force until the date of the issue of the last certificate of final
completion.
11.2 The contracting parties responsible for effecting the aforesaid insurances shall make available to the
architect as soon as possible, documentary evidence of the insurances to the extent required by the other
contracting parties for their respective approval within fourteen (14) days. Such approval shall not be
unreasonably withheld and if not dissented from within the said fourteen (14) days such approval shall be
deemed to have been given
11.3 The contractor shall ensure that his sub-contractors effect their own similar insurances and the contractor
hereby indemnifies the employer in this regard

12.0 SUPPORT INSURANCE

12.1 Where the execution of the works could cause the weakening of or interference with the support, lateral or
otherwise, of land or property or structure other than the works, a support insurance shall be effected by the
employer for not less than the amount and the deductible both as stated in the schedule to insure the joint
interests of the employer, the contractor and the contractor’s sub-contractors. The insurance shall be kept
in force until the issue of the certificate of final completion
12.2 Prior to effecting the aforesaid insurance the employer shall:
12.2.1 engage a professional engineer in terms of clause 5.2 to design and inspect the provision of the
necessary support. Instructions issued by such engineer shall be architect’s ins tructions
12.2.2 make available to the architect as soon as possible documentary evidence of the insurance to the extent
required by the contractor, for the approval of the contractor within fourteen (14) days. Such approval
shall not be unreasonably withheld and if not dissented from within the said fourteen (14) days such
approval shall be deemed to have been given

13.0 FAILURE TO EFFECT INSURANCES

13.1 Where a contracting party fails to effect any of the required insurances or fails to keep any of them in force,
then the other contracting party may effect and keep in force such insurances
13.2 Where the employer effects or keeps in force such insurances consequent upon the contractor’s default the
employer may recover expense or loss resulting therefrom in terms of clause 31
13.3 Where the contractor effects or keeps in force such insurance consequent on the employer’s default, the
cost of such insurance shall be dealt with in terms of clause 28.4

14.0 CONSTRUCTION GUARANTEE

14.1 The contractor shall furnish the construction guarantee whic h shall be handed to the architect for
safekeeping
14.2 The construction guarantee shall come into force on the date of the commencement of the construction
period or on such later date as the architect may allow and shall remain in force until payment of the f inal
amount has been made in terms of clause 30.9. Where sectional completion is required in terms of clause
38.3.3 the final amount shall be that of the last section to be completed
14.3 The architect shall immediately return the construction guarantee to the contractor for surrender to the
guarantor in the event of the guarantor’s liability having been met in full or upon the construction guarantee
lapsing whichever is the earlier
14.4 The contractor accepts that any payment made by the guarantor in terms of the construction guarantee
shall be conclusive evidence that the guarantor is liable to make such payment which shall not prejudice any
rights that the contractor may have in terms of this agreement

EXECUTION
15.0 EXECUTION OF THE WORKS
15.1 Immediately on commencement of the construction period the contractor shall:
15.1.1 begin the works, and proceed with due skill, diligence, regularity and expedition
15.1.2 bring the works to practical completion at the end of the construction period
15.1.3 bring the works to final completion in terms of clause 25

16.0 ACCESS TO THE WORKS

16.1 The employer and the employer’s agents in terms of clause 5 and their representatives shall have
reasonable access to the works, workshops and other places where work in terms of this agreement is being
prepared, executed or stored
16.2 The contractor shall, for the purpose of fulfilling his obligations under this agreement, have reasonable
access to any section of the works already handed over to the employer

17.0 ARCHITECT’S INSTRUCTIONS

17.1 The architect may issue written architect’s instructions to the contractor in regard to:
17.1.1 alteration of the design, quality or quantity of the works provided that such instruction shall not
substantially change the scope of the works
17.1.2 removal from the site of any materials and goods brought thereon and the substitution of any other
materials and goods therefor
17.1.3 removal or re-execution of any work
17.1.4 removal from the site of any person employed on the works
17.1.5 opening up for inspection of any work
17.1.6 provisional amounts
17.1.7 practical and final completion lists
17.1.8 testing of work and materials and goods
17.1.9 making good for loss and repairing of damage to the works in terms of clause 8
17.2 The contractor shall comply with and duly execute all architect’s instructions . Should the architect issue
an oral instruction the contractor shall likewise comply with and duly execute such oral instruction which
shall be confirmed in writing within fourteen (14) days by the architect, alternatively the contractor may
confirm such oral instruction in writing and if such confirmation is not disputed by the architect within seven
(7) days then such confirmation by the contractor shall be deemed to be an architect’s instruction
17.3 Where after fourteen (14) days of receipt of a notice from the architect requiring compliance with a previous
architect’s instruction , the contractor has not proceeded therewith, then the employer may engage others
to give effect to such architect’s instruction. The employer may recover expense or loss resulting from
such engagement of others in terms of clause 31
17.4 Where exec ution of an architect’s instruction causes a variation to the contract sum it shall be dealt with in
terms of clause 28

18.0 SETTING OUT OF THE WORKS

18.1 The employer shall appoint a registered land surveyor to establish the boundary pegs or beacons identifying
the site and the correctness of datum level on which the architect’s drawings are based. The pegs, beacons
and datum level shall be pointed out to the contractor by the land surveyor in the presence of the architect
prior to the commencement of the works
18.2 The contractor shall take all necessary precautions to preserve such pegs, beacons, datum levels and other
aids used in setting out and should they become disturbed, the contractor shall, at his own expense, have
them replaced by a registered land surveyor
18.3 The architect shall define the levels which are required for the execution of the works and shall furnish to the
contractor by way of accurately dimensioned drawings and, if required by the contractor, by personal
explanation such information as shall enable the contractor correctly to set out the works
18.4 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 shall not relieve the contractor of his responsibility for
correctness thereof and the contractor shall rectify any errors in the works that may arise from incorrect
setting out without any adjustment to the contract sum

19.0 ASSIGNMENT
19.1 The contractor shall not cede, assign or delegate any of his rights or obligations under this agreement
without the written consent of the employer, which consent shall not be unreasonably withheld

20.0 NOMINATED SUB-CONTRACTORS

20.1 A nominated sub-contractor shall be a sub-contractor executing work for which a nominated sub-contract
amou nt is included in the bills of quantities or a sub-contractor executing additional specialist work which
arises as a result of an architect’s instruction
20.2 Such sub-contractor shall be nominated by the architect and shall be employed by the contractor as a
nominated sub-contractor in terms of the JBCC nominated/selected sub-contract agreement. The contractor
may refuse to employ such sub-contractor:
20.2.1 to execute work included in the contract sum for execution by the contractor
20.2.2 against whom the contractor shall make reasonable objection
20.2.3 who refuses to enter into the JBCC nominated sub-contract agreement
20.2.4 who is unable to produce a construction guarantee in terms of the nominated sub-contract agreement
20.3 The sum of money indicated for payment to a nominated sub-contractor in terms of clause 30.6 shall be paid
over by the contractor to the nominated sub-contractor less any deductions which the contractor shall be
entitled to make, all in terms of the nominated sub-contract agreement
20.4 The contractor shall, if requested by the architect, furnish proof that payment in terms of clause 20.3 has
been made. If such payment has not been made, the employer may instruct the architect to certify for
payment direct to the nominated sub-contractor in terms of clause 32 such sum of money as was included in
the architect’s previous payment certificate . Such direct payment shall not create privity of contract
between employer and nominated sub-contractor and the employer may recover such direct payment in
terms of clause 31
20.5 Where a nominated sub-contract has a patent defects liability period which extends beyond the contractor’s
patent defects liability period in terms of clause 25, the contractor’s obligations and liability in connection
with patent defects of the nominated sub- contract shall nevertheless terminate at the end of the
contractor’s patent defects liability period
The remaining portion of the nominated sub-contractor’s extended patent defects liability period shall be
subject to a direct agreement between the employer and the nominated sub-contractor and shall not form
part of this agreement
20.6 Where, after notification by the contractor, the architect agrees that the nominated sub-contractor is in
default due to any of the reasons referred to in clause 33.1 mutatis mutandis then the architect shall instruct
the contractor to give notice to the nominated sub-contractor of such default. If such default shall continue
for fourteen (14) days after such notice, the architect may further instruct the contractor to cancel the
nominated sub-contract agreement
20.7 Where the nominated sub-contract agreement is cancelled whether by:
20.7.1 the contractor in terms of the sub-contract agreement due to default by the nominated sub-contractor in
terms of clause 20.6 or
20.7.2 the nominated sub-contractor in terms of the sub-contract agreement due to default by the employer or
the architect in terms of clause 35.1
the architect shall nominate and the contractor shall employ another nominated sub-contractor in terms of
clause 20 to carry out and complete the balance of such nominated sub-contract works
20.8 Any difference between the original nominated sub-contract sum, adjusted where necessary in terms of this
agreement and the cost of carrying out and completing the nominated sub-contract works in terms of clause
20.7 shall be for the account of the employer and the contract sum shall be adjusted in terms of clause 28
20.9 Where the nominated sub-contract agreement is cancelled in terms of clause 20.7.1 and where the difference
in terms of clause 20.8 reflects expense or loss to the employer , the employer may recover such expense or
loss in terms of clause 31
20.10 Where the nominated sub-contract works is suspended by the nominated sub-contractor due to default by the
contractor , no extension to the construction period shall be granted in terms of clause 23. Where the
nominated sub-contract agreement is cancelled by the nominated sub-contractor due to default by the
contractor the architect shall nominate and the contractor shall employ another nominated sub-contractor
in terms of this clause to carry out and complete the balance of the nominated sub-contract works
 Any expense or loss to the employer resulting from such suspension or cancellation shall be for the account
of the contractor and the employer may recover such expense or loss in terms of clause 31

21.0 SELECTED SUB-CONTRACTORS

21.1 A selected sub-contractor shall be a sub-contractor executing work for which a selected sub-contract
amount is included in the bills of quantities or a sub-contractor executing additional specialist work which
arises as a result of an architect’s instruction
21.2 Tender documents for such work shall be prepared by the architect, quantity surveyor or other agent of the
employer in consultation with and to the approval of the contractor and such tender document shall be
issued by the architect to a list of tenderers agreed upon between the contractor and the architect.
Tenders shall be submitted to the architect
21.3 The selected sub-contractor shall be chosen by the architect together with the contractor
The contractor shall:
21.3.1 satisfy himself that such selected sub-contractor can meet the requirements of the JBCC nominated /
selected sub-contract agreement
21.3.2 employ such sub-contractor as a selected sub-contractor in terms of such agreement and
21.3.3 inform the architect accordingly
21.4 Where a selected sub-contract has a patent defects liability period which extends beyond the contractor’s
patent defects liability period in terms of clause 25, the contractor’s obligations and liability in connection
with the patent defects of the selected sub-contract shall nevertheless terminate at the end of the
contractor’s patent defects liability period
The remaining portion of the selected sub-contractor’s extended patent defects liability period shall be subject
to a direct agreement between the employer and the selected sub-contractor and shall not form part of this
agreement
21.5 Where the selected sub-contractor is in default due to any of the reasons referred to in clause 33.1 mutatis
mutandis, then the contractor may cancel the sub-contract agreement without an instruction from the
architect
21.6 Where the selected sub-contract agreement is cancelled whether by:
21.6.1 the contractor in terms of the sub-contract agreement due to the insolvency of the selected sub-
contractor, or
21.6.2 the selected sub-contractor in terms of the sub-contract agreement due to default by the employer or the
architect in terms of clause 35.1
another selected sub-contractor shall be selected in terms of clause 21 and employed by the contractor to
carry out and complete the balance of such selected sub-contract works
21.7 Any difference between the original selected sub-contract sum, adjusted where necessary in terms of this
agreement and the cost of carrying out and completing the selected sub-contract works in terms of clause
21.6 shall be for the account of the employer and the contract sum shall be adjusted in terms of clause 28
21.8 Where the selected sub-contract agreement is cancelled in terms of clause 21.6.1 and where the difference in
terms of clause 21.7 reflects expense or loss to the employer, the employer may recover such expense or
loss in terms of clause 31
21.9 Where the selected sub-contract agreement is cancelled for any reason other than those referred to in clause
21.6 then another selected sub-contractor shall be selected and employed by the contractor subject to the
approval of the architect and any consequences shall be for the account of the contractor

22.0 WORK BY OTHERS

22.1 The contractor shall, subject to clause 22.2, permit artwork, processing or manufacturing installations or
similar work not provided for in this agreement to be executed and installed in the works during the
construction period by others engaged by the employer
22.2 Such work or installation including the insurance thereof shall be the direct responsibility of the employer.
The consent of the contractor to such work or installation shall be procured in writing by the employer and
such consent shall not be unreasonably withheld

COMPLETION
23.0 EXTENSION OF CONSTRUCTION PERIOD
23.1 Should a circumstance as listed in clauses 23.2, 23.3 or 23.4 occur which, in the opinion of the contractor,
could cause a delay of practical completion, the contractor shall immediately notify the architect thereof
Within thirty (30) days from when the contractor became aware or ought reasonably to have become aware
of such occurrence, the contractor shall notify the architect of his intention to request an extension of the
construction period resulting from such delay, failing which no extension of the construction period shall
 be entertained. At the earliest practical opportunity, depending on the nature of the circumstances of the
delay, the contractor shall submit to the architect full details of cause and effect to substantiate such
request
23.2 The circumstances of potential delay to practical completion for which the contractor may request an
extension of the construction period and for which extension the contract sum shall not be adjusted to
compensate the contractor for expense or loss, are:
23.2.1 inclement weather
23.2.2 non-availability of materials where the contractor timeously placed orders and the contractor has taken
all practical steps to avoid or reduce such delay
23.2.3 delay in the supply of a prime cost item and where the contractor has taken all practical steps to avoid or
reduce such delay
23.2.4 delay due to default by a nominated sub-contractor where the contractor has taken all practical steps to
avoid or reduce such delay
23.2.5 insolvency of a selected sub-contractor
23.2.6 making good physical loss or repairing damage to the works in terms of clause 8 where the contractor is
at risk for such loss or damage
23.2.7 vis major
23.2.8 civil commotion, riot, local combination of workmen, strike or lockout
23.3 The circumstances of potential delay to practical completion for which the contractor may request an
extension of the construction period and for which extension the contract sum shall be adjusted in terms of
clause 28.6 to compensate the contractor for expense or loss, are:
23.3.1 making good physical loss or repairing damage to the works in terms of clause 8 where the employer is
at risk for such loss or damage
23.3.2 delay caused by the suspension or cancellation of sub-contract works by a nominated or selected sub-
contractor due to default by the employer or the architect in terms of clause 35.1
23.3.3 architect instructions which have not been occasioned by the default of the contractor
23.3.4 default or delay in issuing an architect’s instruction
23.3.5 delay caused by others employed by the employer in terms of clause 22
23.3.6 failure by the employer to grant possession of the site to the contractor on the date stated in the
schedule
23.4 Notwithstanding any of the circumstances of potential delay to practical completion in terms of clauses 23.2
and 23.3, the contractor may request an extension of the construction period due to any other cause
beyond the control of the contractor and which he could not have foreseen at the date of submission of the
tender and which the architect may consider sufficient
23.5 Subject to the provisions of clause 23 being complied with by the contractor, the contractor shall be entitled
to an extension of the construction period on the grounds of any or all of the circumstances set out in
clause 23
23.6 The architect shall, as soon as possible but not later than thirty (30) days after receipt of the full details of
cause and effect, grant or refuse an extension to the construction period in writing. Where the architect
grants an extension, he shall identify the relevant circumstances and where the architect refuses such
extension, he shall give reasons for such refusal. The additional time granted in terms of this extension shall
be the architect’s assessment of the resultant delay to the practical completion of the works by taking into
account:
23.6.1 the details of cause and effect as provided by the contractor in terms of clause 23.1
23.6.2 all holidays whether statutory or recognised as customary in the building industry
23.7 Clause 23.7 - new
Reference to days in clause 23 shall exclude the annual building industry holidays whether statutory or
recognised as customary

24.0 PRACTICAL COMPLETION

24.1 The architect shall from time to time inspect the works to inform the contractor of the standard and state of
completion required for the contractor to achieve practical completion
24.2 The architect shall inform the contractor of the period required for inspection of the works related to the
issue of the certificate of practical completion. The contractor shall give the architect reasonable and
timeous notice of his anticipated date of practical completion so that the architect can complete such
inspection prior to or on this date
24.3 Where, in the opinion of the architect, after the inspection in terms of clause 24.2, the works:
24.3.1 has reached practical completion , the architect shall forthwith issue to the contractor a certificate of
practical completion with a copy to the employer, provided that the certificate of practical completion,
 unless otherwise agreed by the contracting parties, shall not be issued prior to the intended date for
practical completion stated in the schedule or an extension thereof granted in terms of clause 23
24.3.2 has not reached practical completion the architect shall issue a practical completion list defining the
outstanding work and the patent defects to be rectified in order to achieve practical completion
24.4 Upon completion of the work on the practical completion list the contractor shall give notice to this effect to
the architect who shall, within seven (7) days of receipt of such notice, inspect such work and, if satisfied,
issue a certificate of practical completion in terms of clause 24.3.1 or otherwise issue an updated
practical completion list in terms of clause 24.3.2

25.0 FINAL COMPLETION

25.1 Simultaneously with the issue of the certificate of practical completion the architect shall issue a final
completion list defining the outstanding work and patent defects still to be rectified in order to complete the
works which the contractor shall satisfactorily complete within twenty (20) days, excluding non-working
days, of the date of issue of the final completion list or a longer period upon which the architect shall decide
if so requested by the contractor. The contractor shall notify the architect of the date on which he has
completed the items on the list of the outstanding work
25.2 Once the final completion list has been issued, the contractor shall not be obliged to execute any work not
so listed other than making good physical loss or damage to the works in terms of clause 8 and patent
defects in terms of clause 25.4.2
Any defects in the materials and workmanship and any damage caused to the works thereby which has
become apparent within the patent defects liability period due to materials or workmanship not being in
accordance with this agreement shall be made good by the contractor without adjustment to the contract
sum
25.3 At the end of the patent defects liability period the architect shall inspect the works and where, in the
opinion of the architect, the works:
25.3.1 has reached final completion, the architect shall forthwith issue to the contractor a certificate of final
completion, with copy to the employer
25.3.2 has not reached final completion the architect shall issue a defects list defining all patent defects which
have become apparent during the patent defects liability period
25.4 Upon completion of the work on the defects list the contractor shall give notice to this effect to the architect
who s hall inspect such work within seven (7) days of receipt of such notice and where, in the opinion of the
architect, the work on the defects list:
25.4.1 has been satisfactorily completed, the architect shall issue a certificate of final completion in terms of
clause 25.3.1
25.4.2 has not been satisfactorily completed, the architect shall issue a revised defects list giving the items from
the previous list which have not yet been satisfactorily attended to, together with any other patent defects
which have become apparent subsequent to the issue of the defects list in terms of clause 25.3.2
25.5 A certificate of final completion issued in terms of clause 25 save as regards latent defects shall be
conclusive evidence as to the sufficiency of the said works and shall be evidence that the contractor has
fulfilled his obligations in terms of clause 2
25.6 The contractor shall not be liable for latent defects which become apparent after the latent defects liability
period nor for the consequences thereof
The contractor’s latent or patent defects liability periods shall not be influenced by the length of such
periods as are applicable to nominated or selected sub-contractors in terms of their sub-contract agreements
25.7 Where a sub-contractor is required to give a guarantee or surety related to such sub-contract works other
than the sub-contract construction guarantee, such guarantee, warranty or surety shall be deemed to be
ceded to the employer after the date of issue of the certificate of final completion. This cession shall not
prejudice any other rights which the employer may have

26.0 SECTIONAL COMPLETION

26.1 Sectional completion means the bringing to practical completion sections of the works on the dates stated
in the schedule
26.2 That which would have applied to the works as a whole in terms of this agreement where sectional
completion would not have been required in terms of clause 38.3.2 of the schedule shall apply to each
section of the works where sectional completion is required in terms of clause 38.3.3 of the schedule

27.0 PENALTY FOR NON-COMPLETION

27.1 Where the contractor fails to bring the works to practical completion on the date stated in the schedule or
any later date in terms of clause 23, he shall be liable to the employer for the penalty for non-completion as
stated in the schedule for the full period during which the works or each section thereof shall remain
incomplete
27.2 Notwithstanding any other rights the employer may have, where the contractor fails to complete the work
set out in the final completion list in terms of clause 25.1 in a satisfactory manner, he shall be liable to the
employer for a penalty for non-completion thereof. The rate of such penalty shall be ten percent (10%) of the
penalty in terms of clause 27.1
27.3 Where an extension to the construction period has been granted in terms of clause 23.2.4 and 23.2.5 the
contractor shall nevertheless be liable to the employer for such penalty for delay as is reflected in the
relevant sub-contract tender document for the full period of such extension
27.4 The architect shall certify to the employer the periods to which the penalties in terms of clauses 27.1, 27.2
and 27.3 are applicable and shall concurrently issue a copy of such certification to the contractor. The
employer may recover the penalties applicable to such periods in terms of clause 31

PAYMENT
28.0 ADJUSTMENT TO THE CONTRACT SUM
28.1 Adjustments to the contract sum shall be valued on the basis of the bills of quantities by the quantity
surveyor except where otherwise expressly stated
28.2 Where a variation results from an architect’s instruction such variation shall be measured and valued as
follows:
28.2.1 items of additional work of similar and executed under similar conditions shall be priced at the rates in the
bills of quantities
28.2.2 items of additional work not of a similar character or not executed under similar conditions shall be priced,
where applicable, at comparable rates adjusted to suit the changed circumstances
28.2.3 where rates are not applicable and cannot be adjusted in terms of clause 28.2.2 to value a variation for
additional work, the items of w ork shall be priced at new rates which take into account the labour, material
and plant necessary for executing the work as well as an allowance for contractor’s overheads and profit
which overheads and profit shall relate to those included in the contract sum for items of a similar
character
28.2.4 in the case of the omission of an item of work, such work shall be valued at the rates as in the bills of
quantities, but where the omission of such work varies the circumstances in which the remaining work is
carried out, the remaining work shall be valued in terms of clause 28.2.2
28.3 Where work has been identified as being provisionally measured in the bills of quantities the value of this
work shall be omitted from the contract sum and the work as actually executed shall be measured and
valued in terms of clause 28 and added to the contract sum
28.4 Where the contractor has paid charges in terms of clause 7.1 or the cost of insurance in terms of clause 13.3
and where these charges or costs are not included in the contract sum , the actual amounts paid by the
contractor plus a tem percent (10%) mark-up shall be added to the contract sum
Clause 28.5 revised
28.5 Where compliance with an architect’s instruction or delay in the issue of such instruction or failure to issue
such instruction has caused the contractor expense or loss for which the contractor was not required to
make provision in the contract sum, such expense or loss shall be assessed by the contractor and if
verified as reasonable by the quantity surveyor added to the contract sum. The contractor shall submit
such assessment within thirty (30) days from when the contractor became aware or ought reasonably to
have become aware of the onset of the occurrence of such circumstances causing expense or loss, failing
which no adjustment to the contract sum shall be made. Should the quantity surveyor consider the
assessment to be unreasonable the quantity surveyor shall determine a reasonable assessment of the
expense or loss. Reference to days in the clause 28.5 shall exclude the annual building industry holidays
whether statutory or recognised as customary
28.6 The amount for preliminaries in the contract sum shall be adjusted in terms of the method chosen by the
contractor as stated in the schedule
28.7 The nominated sub-contract amounts and selected sub-contract amounts shall be omitted from the
contract sum and the amounts determined by the architect, quantity surveyor or other agents of the
employer as the final account value of the respective sub-contract works in terms of the respective sub-
contract agreements, shall be added to the contract sum
28.8 The contractor’s attendance and profit on the nominated and selected sub-contractors shall be adjusted pro
rata to the final account value of each sub-contract in terms of clause 28.7 less any allowance in such final
account for contract price adjustments in terms of clause 28.11
28.9 The budgetary allowances shall be omitted from the contract sum and such work shall be measured and
valued in terms of clause 28 and added to the contract sum
28.10 The prim e cost amounts shall be omitted from the contract sum and the amounts actually paid by the
contractor in respect of the purchase of such items including delivery to site shall be added to the contract
sum
Where the contractor has incurred expense for special packing, carriage or storage, the contractor shall be
allowed such expense in addition to the amount actually paid
28.11 Unless otherwise stated in the schedule the contract sum shall be adjusted in terms of the Contract Price
Adjustment Provisions (CPAP) recommended by the building Industries Advisory Council using the base
month and region as stated in the schedule
28.12 Where it is necessary for variations to be measured on site the contractor shall be given the opportunity to
be present and shall be supplied with a copy of the measurement of the variations

29.0 FINAL ACCOUNT

29.1 The quantity surveyor shall prepare and complete a final account for the works within one hundred and
eighty (180) days after the date of issue of the certificate of practical completion and shall hand it to the
architect and the contractor for acceptance by the contractor within ninety (90) days of receipt thereof
29.2 If after the said ninety (90) days the final account has not been accepted by the contractor, the architect
may issue the final payme nt certificate based upon the quantity surveyor’s final account
29.3 Where the architect, quantity surveyor or other agent of the employer has prepared the tender document
for a nominated or selected sub-contract, the responsible agent shall determine the final value of such sub-
contract works in terms of clause 28.7, in sufficient time for inclusion in the final account
29.4 The contractor shall co-operate with and assist the quantity surveyor, the architect and other agents of the
employer to meet their respective obligations in terms of clause 29 by supplying them timeously with all
relevant documents as requested

30.0 PAYMENT TO CONTRACTOR

30.1 The architect shall issue payment certificates to the contractor for payment by the employer as follows:
30.1.1 a monthly interim payment certificate issued by not later than the day of the month stated in the
schedule
30.1.2 a final payment certificate issued within fourteen (14) days of acceptance of the final account in terms
of clause 29 but not before the issue of the certificate of final com pletion or, where sectional completion
is required in terms of the schedule, after acceptance of the last final account but not before the issue of
the last certificate of final completion
A copy of each payment certificate shall concurrently be issued to the employer
Clause 30.2 – revised
30.2 The amount certified by the architect for payment in an interim payment certificate shall be based on
timeous valuations prepared by the employer’s agents reflecting the total value of the works satisfactorily
executed and materials and goods as provided for in clause 30.4 at a date not earlier than the day of the
month stated in the schedule and shall separately include:
30.2.1 a reasonable estimate of the total value of the works satisfactorily executed making due allowance for
variations to the contract sum in terms of clause 28
30.2.2 a reasonable estimate of the total value of all materials and goods in terms of clause 30.4
30.2.3 a deduction of the amounts previously certified
30.3 The amount certified for payment by the architect in the final payment certificate shall be the amount stated
in the final account less the amounts previously certified
30.4 Materials and goods whether stored on or off site shall only be included in the amount authorised for
payment in terms of clause 30.2.2, if in the opinion of the architect, they are:
30.4.1 not prematurely delivered or offered for delivery, and
30.4.2 stored and protected against loss or damage, and
30.4.3 covered by insurance in terms of clause 10.1,
and in addition where stored off site are:
30.4.4 covered by an approved guarantee, or
30.4.5 in an independent person’s warehouse from which they can only be released upon a written order from
the architect given in an arbitral capacity, or
30.4.6 subject to an agreement on the transfer of ownership thereof to the employer on the JBCC transfer of
ownership form
30.5 Where materials and goods have been paid for in terms of clause 30.7 they shall become the property of
the employer and shall not be removed without the written authority of the architect other than for inclusion
in the works. Should such materials and goods not have become the property of the employer and have
been removed by their true owner, the amount paid for such materials and goods in terms of clause 30.7
may be recovered by the employer in terms of clause 31
30.6 The architect shall concurrently with the issue of each payment certificate also issue the following:
30.6.1 a statement to the contractor indicating the formulation of the payment certificate and identifying the
amounts due to all nominated and selected sub-contractors
30.6.2 a notification to each nominated and selected sub-contractor indicating the amount included in the
payment certificate in respect of his sub-contract and also the date of issue of the payment certificate
30.7 The employer shall pay to the contractor within fourteen (14) day s of the date of issue of an interim
payment certificate the amount certified for payment less deductions in terms of clause 31 subject to the
presentation of such interim payment certificate to the employer by the contractor
30.8 Where the issue of an interim payment certificate by the architect is delayed or where payment of such
certified amount in terms of clause 30 is delayed the employer shall be liable without prejudice to any rights
the contractor may have in terms of clause 35, to pay interest to the contractor on such amount from the
due date for payment as stated in the schedule up to and including the date on which payment is received by
the contractor
30.9 Concurrently with the issue of the final payment certificate in terms of clause 30.1.2 the architect shall issue
a reconciliation statement to the contracting parties for agreement and final settlement within fourteen (14)
days of date of receipt of such reconciliation statement by both parties
30.10 The agreement of such final amount in the reconciliation statement where the contractor is liable to pay
the employer or on settlement of such final amount where the employer is liable to pay the contractor shall
signify that the employer has fulfilled his obligations in terms of clause 2.3
30.11 Where the reconciliation statement for whatever reason reflects a balance in favour of the employer and
where the contractor has not paid such agreed amount to the employer in terms of clause 30.9, the
employer may recover such amount in terms of clause 31
30.12 The employer shall pay interest on all amounts payable to the contractor after the date of issue of the
certificate of practical completion . This interest shall be calculated at seventy percent (70%) of the
current rate of interest applicable from time to time to prime borrow ers of the contractor’s bank as named in
the schedule and shall be calculated from the date of issue of the certificate of practical completion up to
an including the dates on which the payments are received by the contractor
30.13 The issue of a payment certificate shall not be evidence that the works and materials and goods to which
it relates are in accordance with this agreement

31.0 EMPLOYER’S RECOVERY OF EXPENSE OR LOSS

31.1 The employer may deduct, in terms of clause 31.4, expense or loss incurred or anticipated where such
expense or loss results from:
31.1.1 the employer effecting insurance upon the contractor’s default in terms of clause 13.2
31.1.2 work executed by others in terms of clause 17.3
31.1.3 amounts paid direct to nominated sub-contractors in terms of clause 20.4
31.1.4 the employment of another nominated or selected sub-contractor to complete the sub-contract works in
terms of clauses 20.9, 20.10 or 21.8
31.1.5 Non-payment by the contractor of penalties due in terms of clause 27
31.1.6 materials and goods which have been authorised for payment in terms of clause 30.5 and paid for in
terms of clause 30.7
31.1.7 the employment of others to complete the outstanding work where the contract is cancelled in terms of
clause 33
31.1.8 the final amount on the reconciliation statement being in favour of the employer in terms of clause
30.11
31.2 Where the employer is entitled to recover monies from the contractor for any or all of the reasons in terms
of clause 31.1 the architect shall draw up a statement indicating the make-up of the actual or estimate
maximum amount which the employer may recover and shall issue such statement to both the employer
and the contractor. The employer shall within thirty (30) days of receipt of such statement decide upon the
amount to be recovered and shall notify the architect and contractor of his decision. Such amount shall not
exceed the maximum amount stated above
31.3 Should the employer fail to notify the contractor of such decision within the thirty (30) day period the
entitlement of the employer to recover monies for any or all of the reasons covered in the architect’s
statement shall lapse
31.4 The employer shall, in the first instance, recover the actual amount determined in terms of clause 31.2, in
whole or in part, from monies due to the contractor in the next interim payment certificate . Any balance not
so recovered may be recovered from any or all of:
31.4.1 subsequent payment certificates ,
31.4.2 the construction guarantee
31.4.3 the contractor as a debt
provided that the total amount so recovered shall not exceed such balance
31.5 Where the employer recovers such amount from monies due to the contractor in a payment certificate any
amount still outstanding to the contractor shall be paid in terms of clause 30.7
31.6 Where the employer decides to recover any balance in terms of clause 31.4 from the construction
guarante e the contractor and the guarantor shall be notified thereof by the architect on receipt of written
instruction by the employer. If after fourteen (14) days of date of receipt of such notice by the contractor
such balance is still due to the employer, then the employer may issue a demand in writing to the guarantor
at the guarantor’s domicilium citandi et executandi calling up the construction guarantee in such amount.
Such demand shall include a copy of the statement by the architect in terms of clause 31.2
31.7 Where monies are received following a demand on the construction guarantee such monies shall only be
used by the employer to secure fulfilment of the contractor’s obligations in terms of clause 31. As soon as it
is practically possible the employer shall draw up a statement of account for presentation to the guarantor,
with a copy to the contractor, indicating how the amount called up from the construction guarantee was
expended. Such statement of account shall take into account monies recovered for this purpose from any
other source. Any resulting surplus shall immediately be refunded to the guarantor
31.8 Where the employer recovers expense or loss in terms of clause 20.9 or 21.8 or penalties in terms of clause
27.3, the employer shall recover such expense or loss or penalty, in the first instance, from monies due to
the nominated or selected sub-contractor in an interim payment certificate and, thereafter, from the
contractor in terms of clause 31.4 provided that the total amount recovered from the contractor shall not
exceed the amount of the sub-contract construction guarantee in terms of the nominated or selected sub-
contract tender documents

32.0 PAYMENT TO OTHERS

32.1 The architect shall issue a special payment certificate to a third party for payment by the employer where
the employer:
32.1.1 engages others to execute work in terms of clause 17.3
32.1.2 engages others to complete the outstanding work where the contract is cancelled in terms of clause 33
32.1.3 elects to pay the nominated sub-contractor direct in terms of clause 20.4

CANCELLATION
33.0 CANCELLATION BY EMPLOYER – CONTRACTOR’S DEFAULT
33.1 This agreement may be cancelled by the employer in the event of:
33.1.1 failure by the contractor to provide a construction guarantee by the commencement of the
construction period or by such later date as the architect may allow
33.1.2 failure by the contractor to proceed with or execute the works in terms of clause 15
33.1.3 persistent refusal by the contractor to comply with an architect’s instruction
33.1.4 the insolvency or liquidation of the contractor where the trustee or liquidator elects not to proceed in
terms of this agreement with the works
33.2 Should the contractor default due to any event listed in clauses 33.1.1 to 33. 1.4 then the employer may
instruct the architect to notify the contractor of his intention to cancel this agreement without prejudice to
any other rights he may have. Should the contractor remain in default for a period of fourteen (14) days after
receipt of such notice then the architect may notify the contractor of the cancellation
33.3 Where this agreement is cancelled in terms of clause 33 then:
33.3.1 execution of the works shall forthwith cease, the contractor shall, subject to the provisions of clause
33.3.5, vacate the works and the site thereby relinquishing possession thereof and care of the works in
terms of clause 8.1 shall pass to the employer
33.3.2 a final account shall immediately be prepared in terms of clause 29 for that portion of the works
executed by the contractor
33.3.3 the employer may employ others to complete the outstanding work and to rectify patent defects in that
portion of the works executed by the contractor
33.3.4 the contractor shall not be relieved of any of his obligations and liabilities in connection with that portion
of the works executed by the contractor
33.3.5 the employer may use the contractor’s materials and goods , temporary buildings, plant and machinery
on site for the purpose of proceeding with the works
33.3.6 the cost of work carried out by others in terms of clause 33.3.3 shall be certified by the architect and paid
by the employer direct to others in terms of clause 32
33.3.7 the contractor shall be liable for expense or loss to the employer resulting from such cancellation other
than expense or loss related to non-completion in terms of clause 33.3.9. The employer may recover
such expense or loss in terms of clause 31
33.3.8 the contractor shall, where instructed by the architect, remove from site his temporary buildings, plant,
machinery and surplus materials and goods within such reasonable time as determined by the architect,
in default of which the employer, without being responsible for any loss or damage, may have same
 removed and sold and the proceeds from such sale, less the cost of such removal, shall be for the credit
of the contractor
33.3.9 the architect shall determine the delay to practical completion of the works which such cancellation
shall have caused and the contractor shall be liable to the employer for the penalty in terms of clause
27.1 for such delay
33.3.10 no further payments shall be made in terms of clause 30 until the reconciliation statement has been
drawn up and agreed upon in terms of clause 30.9. From date of cancellation the employer shall not be
liable for any interest
33.3.11 the construction guarantee shall remain in force in terms of clause 14.2
33.4 The employer may not exercise his right in terms of clause 33 if he himself is in breach of a material term of
his agreement

34.0 CANCELLATION BY EMPLOYER - LOSS OR DAMAGE

34.1 This agreement may be cancelled by the employer in the event of either of the following:
34.1.1 where the whole of the works has been substantially destroyed, howsoever caused, other than the
outbreak of hostilities in terms of clause 36, or
34.1.2 where this agreement is for alteration and / or addition to an existing building and the whole existing
building has been substantially destroyed by whatever cause other than the outbreak of hostilities in terms
of clause 36
34.2 Should either of the events listed in clause 34.1 occur, the employer may instruct the architect to cancel this
agreement forthwith by notice to the contractor
34.3 Where this agreement is cancelled in terms of clause 34, then:
34.3.1 the architect shall forthwith issue an architect’s instruction specifying such protective measures as the
architect may deem necessary which instruction shall be executed by the contractor before cessation of
work
34.3.2 execution of the works shall forthwith cease and care of the works in terms of clause 8.1 shall remain the
responsibility of the contractor until he relinquishes possession of the works
34.3.3 on relinquishing possession of the works, the contractor shall immediately remove from site his
temporary buildings, plant and machinery
34.3.4 a final account shall immediately be prepared in terms of clause 29 for that portion of the works
executed prior to the occurrence of loss or damage in terms of clause 34.1 and which final account shall
also include all work executed in terms of clause 34.3.1
34.3.5 the contractor shall not be relieved of any of his obligations in connection with that portion of the works
executed by the contractor
34.3.6 the employer shall be liable to the contractor for the cost of materials and goods including those
materials and goods ordered by the contractor prior to the cancellation of this agreement in terms of
clause 34.1 and for which the contractor is bound to accept and make payment, provided that such
materials and goods are delivered to the site and handed over to the employer in good order
34.3.7 the value of the works executed by the contractor and the value of materials and goods in terms of
clause 34.3.6 shall continue to be certified by the architect and paid for by the employer
34.3.8 the construction guarantee shall be reduced to the value applicable after the issue of the certificate of
final completion and may be used only to recover an overpayment to the contractor reflected on the
reconciliation statement

35.0 CANCELLATION BY CONTRACTOR – EMPLOYER’S DEFAULT

35.1 This agreement may be cancelled by the contractor in the event of:
35.1.1 failure by the employer to pay the amount in terms of clause 30.7
35.1.2 interference by the employer with the issue of any payment certificate in terms of clause 30
35.1.3 failure by the architect to issue any payment certificate in terms of clause 30
35.1.4 the insolvency or liquidation of the employer where the trustee or liquidator elects not to proceed in terms
of this agreement with the works
35.2 Should default occur due to any event listed in clauses 35.1.1 to 35.1.4, then the contractor may notify the
employer and the architect of his intention to cancel this agreement without prejudice to any other rights he
may have. Should the employer or the architect as the case may be remain in default for a period of
fourteen (14) days after receipt of such notice then the contractor may notify the employer of the
cancellation
35.3 Where this agreement is cancelled in terms of clause 35 then:
35.3.1 execution of the works shall forthwith cease and care of the works in terms of clause 8.1 shall remain the
responsibility of the contractor until he relinquishes possession of the works
35.3.2 on relinquishing possession of the works the contractor shall immediately remove from the site his
temporary buildings, plant and machinery
35.3.3 a final account shall immediately be prepared in terms of clause 29 for that portion of the works
executed by the contractor
35.3.4 the employer may employ others to complete the outstanding works but the rectifying of patent defects
in that portion of the works executed by the contractor shall remain the responsibility of the contractor
35.3.5 the contractor shall not be relieved of any of his obligations in connection with that portion of the works
executed by the contractor
35.3.6 the employer shall be liable to the contractor for the cost of materials and goods including those
materials and goods ordered by the contractor prior to the cancellation of this agreement in terms of
clause 35.1 and for which the contractor is bound to accept and make payment provided that such
materials and goods are delivered to the site and handed over to the employer in good order
35.3.7 the employer shall be liable to the contractor for expense or loss resulting from such cancellation
35.3.8 The value of the works executed by the contractor and the value of materials and goods shall continue
to be certified by the architect and paid for by the employer
35.3.9 the construction guarantee shall lapse and shall immediately be returned to the contractor by the
architect
35.4 The contractor may not exercise his right in terms of clause 35 if he himself is in breach of a material term of
this agreement

36.0 CANCELLATION – OUTBREAK OF HOSTILITIES

36.1 This agreement may be cancelled due to an outbreak of hostilities as described in clause 8.3.1 which results
in:
36.1.1 the general mobilisation of the armed forces of the state
36.1.2 the works being suspended for a continuous period of ninety (90) days
36.2 Should either of the events listed in clause 36.1 occur the employer may instruct the architect to cancel or
the contractor may canc el this agreement by notice to the other party without prejudice to any other rights
either party may have
36.3 Where there is an outbreak of hostilities in terms of clause 36.1.1 such notice of cancellation shall not be
given:
36.3.1 before the expiration of fourteen (14) days after the date on which the order for general mobilisation of the
armed forces is given
36.3.2 after the date of issue of the certificate of practical completion unless loss or damage resulting from
such hostilities has occurred to the works after this date
36.4 Where this agreement is cancelled in terms of clause 36, then:
36.4.1 the architect shall forthwith issue an architect’s instruction specifying such continuation of work as the
architect shall deem necessary to bring the works to specific points of cessat ion and such protective
measures as the architect may deem necessary
36.4.2 the contractor may cease work should the contractor be prevented, due to reasons entirely beyond his
control, from carrying out an architect’s instruction in terms of clause 36.4.1 but only after having given
the employer fourteen (14) days prior notice of such intended cessation
36.4.3 execution of the works shall thereafter cease and care of the works in terms of clause 8.1 shall remain
the responsibility of the contractor until he relinquishes possession of the works
36.4.4 on relinquishing possession of the works , the contractor may remove from site his temporary buildings,
plant and machinery
36.4.5 the cancellation of this agreement in terms of clause 36.1 shall not relieve either party of his obligations in
connection with that portion of the works executed by the contractor
36.4.6 a final account shall immediately be prepared in terms of clause 29 which shall include the work
executed prior to the cancellation of this agreement and prior to the occurrence of any loss or damage
resulting from the outbreak of hostilities and which shall also include all work executed in terms of clause
36.4.1
36.4.7 the value of the works executed by the contractor and the value of materials and goods shall continue
to be certified by the architect and paid for by the employer in terms of this agreement
36.4.8 the construction guarantee shall be reduced to the value applicable after the issue of the certificate of
final completion and may be used only to recover an overpayment to the contractor as reflected on the
reconciliation statement
DISPUTE
37.0 SETTLEMENT OF DISPUTES
37.1 Should any disagreement between the employer or his agents on the one hand and the contractor on the
other arise out of this agreement the architect shall determine such disagreement by a written decision given
to the employer and the contractor within fourteen (14) days of a written request so to do
Such decision shall be final and binding on the parties, unless either party within fourteen (14) days of receipt
thereof disputes the same by notice to the other party and to the architect in which case the disagreement
shall be deemed a dispute
Should the architect fail to give a written decision within the said period of fourteen (14) days, then either
party may give notice to the other party that such disagreement be declared a dispute
37.2 A dispute may in the first instance be decided by mediation as follows:
37.2.1 should the parties be unable to agree in writing within fourteen (14) days of the date on which the dispute
is declared upon the use of mediation as a means of settling the dispute, or upon the person to be
appointed by them as mediator, the dispute shall be resolved by the submission thereof to arbitration
37.2.2 should both parties agree upon mediation, such dispute shall be referred within a further period of fourteen
(14) days for opinion to a mediator mutually selected by the parties. The parties shall not be entitled to be
represented at such mediation by a practising advocate or attorney
37.2.3 the parties shall within fourteen (14) days of the appointment of the mediator or such other period as the
mediator considers reasonable submit written representation to him. Thereafter the mediator shall give
his opinion in writing on the matter and furnish the employer and the contractor each with a copy thereof,
provided that the mediator may, in his discretion, convene a hearing of the parties and their witnesses, or
may hold discussions with either or both parties, before giving his opinion, with the objective of reconciling
the opposing views
37.2.4 in giving this opinion in writing the mediator shall be deemed to be acting as an expert and not as
arbitrator with the proviso that no claim for damages shall be made against him at the instance of either
party for any want of care, skill or diligence in the exercise of his duties
37.2.5 the cost of the mediation and the apportionment thereof shall be determined by the mediator
37.3 The opinion of the mediator shall be binding on the parties unless either party disputes the opinion of the
mediator in writing to the other party within thirty (30) days of the furnishing to them by the mediator of his
opinion, in which event the dispute shall be resolved by the submission thereof to arbitration
Where the dispute is submitted to arbitration, the arbitration shall be held in terms of the Arbitration Act and
shall be conducted in accordance with the current Rules for the Conduct of Arbitrations published by the
Association of Arbitrators and shall be heard by a sole arbitrator unless otherwise agreed by the parties
37.4 The arbitrator shall be the person named in the schedule. Should no person be named or should the person
named be unwilling or unable to act then the arbitrator shall be chosen by the contractor from a panel of
three (3) persons nominated by the chairman of the Association of Arbitrators at the written request of either
party within seven (7) days of receipt of notice advising the names of the said panel. Failing this the chairman
shall appoint the arbitrator
37.5 In the arbitration the rights of the parties shall not be prejudiced in any manner whatsoever by anything said
or done at the mediation or by the opinion of the mediator
37.6 The arbitrator shall have power to open up, review and revise any certificate, opinion, decision, requisition or
notice relating to all matters in dispute submitted to him and to determine all such matters in the same
manner as if no such certificate, opinion, decision, requisition or notice had been issued
37.7 Reference to either mediation or to arbitration shall not relieve either party from any liability for the due and
timeous performance of his obligations in terms of this agreement
37.8 The validity of clause 37 shall not be affected by the cancellation of this agreement in terms of clauses 33 and
36
Clause 37.9 – new
37.9 Reference to days in clause 37 shall exclude the annual building industry holidays whether statutory or
recognised as customary

CONTRACT DETAILS
38.0 THE SCHEDULE
38.1 This schedule contains all variables referred to in this agreement. Reference clauses are bracketed. Spaces
requiring information must be filled in, indicated as being not applicable or deleted. Where block choices are
offered, the non-applicable block is to be deleted