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2.5 Contract for the Supply and Delivery of Goods as published by the
Construction Industry Development Board (1019).
2.6 General Conditions of Contract for Construction Works (Third Edition
2015) as published by the South African Institution of Civil Engineering.
2.7 General conditions Of purchase as published by the Construction
Industry Development Board (1018).
2.8 JBCC Series 2000 Principal Building Agreement (Edition 6.1: March
2014) as published by the Joint Building Contracts Committee.
2.9 JBCC Series 2000 Minor Works Agreement (Edition 5.1: March 2014)
as published by the Joint Building Contracts Committee.
GCC 2015 (Third
Edition)
JBCC 6.1
CIDB Supply
Contract Centric Systems 6
Normative Reference
• Natural
• Major
• Minor
• Artificial
• Company
• Close Corporation
• Partnership
• Joint Ventures
• Agents
Lawful & Possible
Possible
Lawful
• conclusion • Absolute
• performance • Ab Initio / Supervening
• object • Relative
• legislative enactment • Obligation
• common law • alternative
• good morals/public policy • facultative
• generic
• Divisible
What is a works contract?
Essential Terms Natural terms
• Duties of Contractor (Lessee)
• Agreement to let and hire • Commence work in a reasonable time
• Complete work in a reasonable time
work
• Use reasonable skill, care and diligence
• Work relates to a corporeal • Use suitable materials
thing • Comply with legislation
• Time (agreed or • Repair patent defects
determinable) • Warranty against latent defects
• Remuneration (agreed or • Return premises in similar condition in which
received
determinable)
• Independence • Duties of Lessor (Employer)
• Provide access to site in reasonable time
• Co-operate to enable completion and delivery
• Pay Remuneration
Contracts are projects
Scope
[aka
Performance
Quality
Technical]
Risk
Time
Schedule
Cost
Negative Mal-
performance
Damages
Contracts are …
• Business inputs and outputs
• Risk & Quality Management documents Accept
Control
The Basis of
Contract Management & Drafting
The Risk Management Process Model
Tenders & Formation
Under CIDB Regulations
Clause 6.10.1.5: - The percentage advance on materials not yet built into the Permanent Works is ... A percentage.
Clause 6.10.3: - The limit of retention money is ... A monetary value usually decided in conjunction with the security to be provided
in terms of Clause 6.2. 1. For financially stronger contractors the liability for the performance guarantee is usually a
higher percentage with the limit of retention money at a lower amount
Clause 8.6.1.1.2: - The value of Plant and materials supplied by the Employer to be included in the insurance sum is ... Monetary
value.
Clause 8.6.1.1.3: - The amount to cover professional fees for repairing damage and loss to be included in the insurance sum is ...
Monetary value.
Clause 8.6.1.3: - The limit of indemnity for liability insurance is ... Monetary value.
Clause 10.5.3 - The number of Adjudication Board Members to be appointed is ... Either one or three.
Optional data Only the statements applicable to the options chosen should be completed
Clause 1.3.2: - If the governing law is not the law of South Africa then: The governing law is ... the law of the applicable country or
jurisdiction.
Clause 1.3.3: - If the language of the Contract and for written communications is not English, then:
The language of the Contract and for written communications is ... the applicable language.
Clause 3.1.3: - If the Engineer must get specific approval from the Employer for the execution of any part of his functions or duties
then:
The Engineer shall obtain the specific approval of the Employer before executing any of his functions or duties
according to the following Clauses of the General Conditions of Contract:
1.Clause ... number, function or duty and if required, the financial or other limit applicable.
2 Further Clauses as required
Please note that getting specific approval from the Employer will delay decision-making and this may increase the
completion time and cost of the Works.
Clause 5.4.2: - If the access and possession of the Site is not exclusive to the Contractor then:
The access and possession of Site shall not be exclusive
Contract Centricto the Contractor but as set out in the Site Information.
Systems 39
Contract Data the Employer provides
Clause 6.8.2: - If the value of payment certificates is to be adjusted by a Contract Price Adjustment Factor then:
The value of the certificates issued shall be adjusted in accordance with the Contract Price Adjustment Schedule with
the following values: If the value of x is not 0.1 then:
The value of “x” is ... the portion, expressed as a decimal of unity, not subject to adjustment.
The values of the coefficients are:
a = … Labour
b = … Contractor's equipment
c = …. Material
d = … Fuel Please note that the total of all the coefficients must equal 1.0
The province wherein the larger part of the Site is located is ... Select the province for which the Labour Index would be
applicable from Statistical News Release, P0141, Table A.
The applicable industry for the Producer Price Index for materials is ... Select the applicable industry from Statistical
News Release, PO 142. 1, Table 11.
The area for the Producer Price Index for fuel is ... Select the area from Statistical News Release, P0142. 1, Table 12.
The base month is ... month and year prior to the closing of the tender.
Clause 6.8.3: - If price adjustments for variations in the costs of special materials are allowed then:
Price adjustments for variations in the costs of special materials are allowed.
Clause 8.6.1: - If a completely different type of insurance scheme than the scheme, with additions, stated in the General Conditions of
Contract is required, then:
Delete Clause 8.6.1 and replace it with ... The requirements and/or details of the insurance scheme. If the Employer is
to arrange the insurance, details of the insurance should be given to allow the Contractor to arrange further insurance
he might require.
Clause 8.6.1.2: - If special risk insurance from SASRIA is not required then:
A Coupon Policy for Special Risks Insurance issued by the South African Special Risks Insurance Association is not
required.
Clause 8.6.1.5: - If additional insurance is required then:
In addition to the insurances required in terms of General Conditions of Contract Clauses 8.6.1.1 to 8.6.1.4 the
following insurance is also required ... The requirements and/or details of the additional insurance.
Clause 8.6.5: - If insurance is to be effected with an insurance company not necessarily in South Africa then:
The insurances shall be effected with an insurance company registered in ... any country or name of country. Clause
10.5.1:- If the preferred method of dispute resolution is by standing adjudication instead of ad-hoc adjudication
then: Dispute resolution shall be by standing adjudication.
Clause 10.7.1: - If the preferred method for the determination of disputes is arbitration instead of litigation then: The determination of
disputes shall be by arbitration.
(The type of special materials may be listed, leaving the unit and rate or price to the tenderers to fill
in or the tenderers are allowed to state the type of special materials, the unit and the rate or price.)
• “Commencement Date” means the date that the Agreement, made in terms
of the Form of Offer and Acceptance, comes into effect. [1.1.1.5]
• “Practical Completion” means that the whole or portion of the Works has
reached a state of readiness, fit for the intended purpose, and occupation
without danger or undue inconvenience to the Employer, although some
work may be outstanding. [1.1.1.24 ]
• “Certificate of Practical Completion” means the certificate issued by the
Engineer stating the date on which Practical Completion was achieved.
• “Due Completion Date” means the date of expiry of the time stated in the
Contract Data for achieving Practical Completion of the Works, calculated
from the Commencement Date and as adjusted by such extensions of time
or acceleration as may be allowed in terms of Contract. [1.1.1.14 ]
Contract Centric Systems 45
Time (agreed or determinable)
• “Contract Price” means the Contract Sum subject to such addition thereto or
deduction therefrom as may be made from time to time under the provisions of
the Contract.
• “Contract Sum” means the accepted amount provided for in the agreement
made in terms of the Form of Offer and Acceptance.
• “Bill of Quantities” means the document so designated in the Pricing Data, if any.
• “Pricing Data” means the document that sets out the Pricing Strategy and
provides the criteria and assumptions which it will be assumed in the Contract
were taken into account by the Contractor when developing the Contract Sum.
• “Pricing Strategy” means the strategy stated in the Contract Data which is
adopted to secure prices and to remunerate the Contractor in terms of the
Contract.
• “Fixed Price Contract” means the Contractor is paid the Contract Sum for
execution of the Works subject to adjustments in accordance with the Contract.
• ''Re-measurement Contract” means the Contractor is paid an amount
determined from the actual quantities of work completed multiplied by the rates
or prices for such work subject to adjustments in accordance with the Contract.
• Reception theory
• “Writing”
• Written communication under GCC
• Hand delivered or
• Delivered at address provided in Contract Data (or the notified changed address)
1.2.1
• In English (or as in Data)1.3.3
• Communications Include
• Types of …
• Notifications for submitting data or information:
• Requests for consent approval of a matter or permission to do something
• Submitting a claim or insisting on a right
• Giving an instruction with authoritative directions as how to take actions
• Party who …
• Written actions required from the Contractor
• Written actions required from the Employer
• Written actions required from the Engineer
3. ENGINEER
3.1 Functions of the Engineer
3.2 Engineers Representative
4. CONTRACTORS GENERAL OBLIGATIONS
4.1 Extent of obligations and liability
4.2 Engineers instructions
4. 3 Legal provisions
4.4 Subcontracting
4.5 Notices and Fees
4.6 Patent rights
4.7 Fossils
4.8 Facilities for others
4.9 Construction Equipment
4.10 Contractors employees
4.11 Competent employees
4.12 Contractors superintendence