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 JBCC SERIES 2000
Principal Building Agreement - Edition 5.0

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Preface

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JBCC documents are compiled in the interests of standardisation and portray the consensus view of the Joint
B u ilding Contracts Committee of good practice and an equitable distribution of contractual risk. T h e
d o c u mentation sets out a clear, balanced and enforceable set of procedures, rights and obligations wh ich ,

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when competently managed and administered, protect the employer, contractor and subcontractors alike. It
should be noted that each of the documents has been formulated for use specifically as part of the Series 2000
and is most unlikely to be suitable for use with other forms of contract

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The Agreement Structure
The JBCC document suite has been structured for use by both the Private and State sectors. However it has

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been found that the direct inclusion of State requirements as was the case in previo u s editions produced
d ifficulties in accommodating the necessary differences in a single document. Therefore when th e em p lo yer
is a State institution the document will require an Addendum to be compiled of all the substitu tions that are
required to the standard clauses as published

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The Agreement, in catering for both bills o f quantities and lump sum contracts, brings about a strong
consistency in the contractual language used an d th e administrative procedures required. The agreement
clauses are divided in to sections that correspond as closely as possible to the project execution sequence.
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The previously separately published Preliminaries has been incorporated into this Agreement with the variables
dealt with therein being replaced by Contract Data Addendums for both Employer and Contractor requirements

The N/S Subcontract Agreement covers both nominated and selected subcontractors and mimics the Principal
Building Agreement w ith all common clauses retaining the same numbering. A few ‘blank’ clause numbers
occur to maintain the common numbering system . ‘No clause’ is used where this occurs. A comprehensive
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set of legally compatible certificates and fo rm s for use in administering the Agreement and other primary
documents are available
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Warning!
This Edition 5.0 results in most support documents having been revised to remain c o mp a tib le . Persons
entering into or preparin g c o ntracts using the JBCC Series 2000 are warned of the dangers inherent in
modifying any part of it. W here it is considered essential to make changes, users are advised to ensure that
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such changes are drafted by qualified legal persons with extensive knowledge of the JBCC documentation and
the construction industry. Experience has shown that changes drafted by others, including members of the
building professions, often have results very different from those intended which may be prejudicial to either
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or both parties

JBCC Documentation Services

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Series 2000 documents are obtainable through most regio n al o ffices of JBCC constituents as listed on the
cover of this document. The JBCC supplies documents exclusively to constituents and does not sell direct to
users. JBCC can be contacted at jbcc@ mweb.co.za in relation to these services
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Copyright Reserved
The Joint Building Contracts Committee claims authorship of this work. All rights are reserved. No part of this
publication may be reproduced, stored in any retrieval system, or transmitted, in any form or by any means,
electronic, mechanical, photocopying, scanning, recording, or otherwise, without the prior permission of the
Joint Building Contracts Committee. Unauthorised reproduction of the work is an infringement of the copyright
in the work. Judicial proceedings can and will be instituted to obtain relief and the recovery of damages
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 PRINCIPAL BUILDING AGREEMENT

TABLE OF CONTENTS

Section Clause No Title Page

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DEFINITIONS 1.0 Definitions and Interpretation 1

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OBJECTIVE AND PREPARATION 2.0 Offer, Acceptance and Performance Obligations 4
3.0 Documents 4
4.0 Design Responsibility 5

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5.0 Employer’s Agents 5
6.0 Contractor’s Site Representative 6
7.0 Compliance with Laws and Regulations 6
8.0 W orks Risk 6

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9.0 Indemnities 7
10.0 General Insurances 8
11.0 Special Insurances 8
12.0 Effecting Insurances 8

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13.0 Assignment 9
14.0 Security 9

EXECUTION 15.0 Preparation for and Execution of the W orks 10

16.0
17.0
18.0
19.0
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Site and Access
Contract Instructions
Setting out of the W orks
Temporary W orks and Plant
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12
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20.0 Nominated Subcontractors 14
21.0 Selected Subcontractors 15
22.0 Em ployer’s Direct Contractors 15
23.0 Contractor’s Domestic Subcontractors 16

COMPLETION 24.0 Practical Completion 16

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25.0 W orks Completion 17

26.0 Final Completion 18
27.0 Latent Defects Liability Period 18
28.0 Sectional Completion 19
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29.0 Revision of Date for Practical Completion 19

30.0 Penalty for Late or Noncompletion 21

PAYMENT 31.0 Interim Payment 21

32.0 Adjustment to the Contract Value 23
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33.0 Recovery of Expense and Loss 25

34.0 Final Account and Final Payment 26
35.0 Payment to Other Parties 27
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TERMINATION 36.0 Termination by Employer - Contractor’s Default 27

37.0 Termination by Employer - Loss and Damage 28
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38.0 Termination by Contractor - Employer’s Default 29

39.0 Termination - Cessation of the W orks 30

DISPUTE 40.0 Settlement of Disputes 30

CONTRACT AGREEMENT 41.0 Post Tender Provisions 32

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42.0 Contractual Agreement 33

ADDENDA Notes 35
Schedule of Changes to Previous Edition 37
 DEFINITIONS
1.0 DEFINITIONS AND INTERPRETATION
1.1 The definitions u sed in th is document and the interpretation thereof are listed below. The word or
phrase of a definition is highlighted in the text and shall bear the meaning assigned to it in this 1.1.
W here such word or phrase is not highlighted it shall bear the meaning consistent with the context
of its use. The listed d efin ed w o rd o r phrase does not qualify as a definition where information

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required to be stated in the contract data has not been provided

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A D J U D IC A TOR: The person appointed by the parties to decide any dispute arising out of th is
agreem ent

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A D V A NCE PAYMENT GUARANTEE: A guarantee at call obtained by the contractor from an
institution approved by the employer on the JBCC Advance Payment Guarantee form in the amount
as stated in the contract data

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AG ENT: A party named in the contract data and/or appointed by the employer to deal with specific
aspects of the works

AG REEM ENT: This JBCC Principal Building Agreement and other contract docum ents that

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together form the contract between the parties

ARBITRATOR: The person appointed by the p a rties to decide any dispute arising out of this
agreem ent

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BILLS OF QUANTITIES: The document drawn up in accordance with the measurin g system as
stated in the contract data. The contractor shall have priced the document to reflect the contract
sum
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BUDGETARY ALLOW ANCE: A sum of money included in the contract sum for work intended for
execution by the contractor, the extent of which is identified but not detailed

CALENDAR D A Y S : Twenty-four (24) hour days commencing at midnight (00:00) which include
working and non-working days
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CERTIFICATE OF FINAL COM PLETION: A certificate issued by the principal agent to the
contractor stating the date on which final completion of the works was achieved
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CERTIFICATE OF PRACTICAL COM PLETION: A certificate issued by the princ ipal agent to the
contractor stating the date on which practical com pletion of the works was achieved

CERTIFICATE OF W OR KS CO MPLETION: A certificate issued by th e principal agent to the

contractor stating the date on which works com pletion of the works was achieved
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CONSTRUCTION GUARANTEE: A guarantee at call obtained by the contractor from an institution

approved by the employer in terms of the JBCC Constructio n G u arantee form as elected in the
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contract data

CONSTRUCTION PERIOD: The period commencing on the intended date as stated in the contract
data that possession of the site shall be given to the contractor and ending on the date of practical
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completion

CONTRACTOR: The party contracting with the employer for the execution of the works as named
in the contract data
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CONTRACT DATA: The defined listed variables applicable to this agreem ent

C O N T RACT DOCUMENTS: This document, the contract drawings, the priced docum ent and
such other documents as are identified in the contract data

CONTRACT DRAWINGS: The drawings stated in the contract data upon which the accepted tender
or negotiated amount was based

Principal Building Agreement Page 1

 CONTRACT INSTRUCTION: A written instruction which may include drawings and other
c o n struction information signed and issued by or under the authority of the principal agent to th e
contractor

CO NTRACT SUM : The tender or negotiated amount, inclusive of tax, as accepted by the employer
and stated in the contract data that is not subject to adjustment

CONTRACT VALUE: A monetary value that initially is equal to the contract sum that is subject to
adjustment

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CPAP: The JBCC Contract Pric e Adjustment Provisions used for the adjustment of the contract

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value as stated in the contract data

DEFECT: Any aspect of materials and workmanship forming part of the works that, in the opinion

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of the principal agent, is due to the failure of the contractor to comply with his obligations in terms
of the agreem ent

DIRECT CONTRACTOR: A party appointed directly by the em p lo ye r to do specialist work on site

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prior to practical com pletion

EMPLOYER: The party contracting with the contractor for the execution of the works as named
in the contract data

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FINAL ACCOU NT: The document, prepared by the principal agent, which reflects th e contract
value of the works at final com pletion or termination

FINAL COM PLETION: The stage of completion w h ere th e w o rk s is free of all defects as certified
by the principal agent
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INTEREST: The bank rate that is applicable from time to time to registered banks when borrowing
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m o n ey from the Central or Reserve Bank of the country named in the contract data. The ruling
b an k rate on the first calendar day of each month shall be used in calculating the interest due for
such month

JBCC: The Joint Building Contracts Committee Incorporated

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

LAW : The law of the country stated in the contract data

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MATERIALS AND GOODS: Materials and goods delivered to the contractor or his subcontractors
for inclusion in the works whether stored on or off the site or in transit but not yet part of the works

MEDIATOR: The party appointed by the parties to mediate any dispu te arisin g out of this
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agreem ent

NOMINATED SUBCONTRACTOR : The party executing work provided for in a nominated

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

N/S AGREEM ENT: The J B CC Nom inated / Selected Subcontract Agreement and the n/s contract
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documents that together form the contract between the c o n tra c tor and the nominated
subcontractor or selected subcontractor

N/S SUBCONTRACTOR: A nominated subcontractor or a selected subcontractor

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PARTY: The employer and/or contractor

PAYMENT CERTIFICATE: A document issued monthly by the principal agent certifying the amount
due and payable by the em ploye r to th e c o ntractor or vice versa in terms of the JBCC Payment
Certificate form

PAYMENT GUARANTEE : A guarantee in the amount as stated in the contract data obtained by
th e e m ployer from an institution approved by the contractor in terms of the JBCC Paymen t
G uarantee form

Principal Building Agreement Page 2

 PENALTY: A monetary value determ ined at a rate per calendar day as stated in the contract data

P R A CTICAL COM PLETION: The stage of completion where the works or a section thereof, as
certified by the p rin c ipal agent, is substantially complete and can effectively be used for the
purposes intended

PRICED DOC UM ENT: Bills of quantities, schedule of rates or other documents as are appropriate
to this agreem ent

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PRIME COST AMOU NT: An amount included in the contract sum for the delivered co st o f
m aterials and goods obtained from a supplier as instructed by the principal agent

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PRINCIPAL AG ENT: The party named in the contract data and/or appointed by the employer with
full authority and obligation to act in terms of the agreem ent

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PROGRAMM E: A diagrammatic representation of the p lan ned execution of units of work or events
of the works indicating the dates for commencement and completion thereof

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RECOVERY STATEM ENT: The statement prepared monthly by the principal agent in terms of the
JBCC Recovery Statement form

S E C T IO N : A defined portion of the works for which practical com pletion is required on the date

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stated in the contract data that is earlier than that required for the works as a whole

SECURITY: The form of guarantee provided by the em p lo ye r or contractor, as stated in the

contract data, from which a party may recover expense and loss in the event of default

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SELECTED SUBCONTRACTOR: A party executing work provided for in a selec ted subcontract
amount inclu d ed in th e c ontract sum or, in respect of additional specialist work, a subcontractor
appointed as a selected subcontractor in terms of a contract instruction
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SITE: The land or place on, over, under, in or through which the works is to be executed as defined
in the contract data

TAX: Value-added tax, sales tax or any other statutory tax, duty or levy applicable by law
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W ORKIN G D A YS: Twenty-four (24) hour days commencing at midnight (00:00) which excludes
Saturdays and Sundays, statutory holidays and any recognised annual building holiday period

W ORKS: The works described in gen eral term s in the contract data, detailed in the contract
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docum ents, ordered in contra ct instructions and including the contractor’s and n/s
subcontractors’ tem porary works. W orks includes m aterials and goods and those supplied free
or otherwise by the employer to the contractor and excludes work o r installations to be executed
by direct contractors
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W ORKS COMPLETION: The stage of completion where the work on the works com pletion list has
been completed as certified by the principal agent
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1.2 The parties each choose their physic al address as stated in the contract data where notices or
processes arisin g o u t o f or concerning this agreem ent may validly be delivered to and served on
them. Either party may, at any time, by notice to the other change its physical address provided that
it is in the same country as that initially stated in the contract data
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1.3 Documents an d legislation referred to in this agreem ent shall mean the current edition thereof with
all amendments thereto at the date of submission of the contractor’s tender unless otherwise stated

1.4 In the interpretation of second level subclauses (e.g. 1.6.4) in this document:
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1.4.1 W here one of several subclause options is to be selected, the word ‘or’ links suc h
subclauses

1.4.2 W here consecutive subclauses apply these are linked by the word ‘and’

1.4.3 All other such subclauses are interpreted on a ‘stand alone’ basis - any or all apply

1.5 In this document, unless inconsistent with the context:

Principal Building Agreement Page 3

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

1.5.2 The words “accept, appoint, approve, certify, decide, grant, inform, in stru c t, issue, notice,
object, record, reduce, refuse, request, state” and their derivatives indicate an act carried
out in writing

1.5.3 The masculine gen d er inc ludes the feminine and neuter genders and vice versa, the
singular includes the plural and vice versa, and a person includes corporate bodies

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1.5.4 Clause numbers written as [54.1.5] means “in terms of” to such referenced clauses where

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[54.1.5-8] means the subclauses 5, 6, 7 and 8 inclusively and [5 4 .1 .5,8] means the
subclauses 5 and 8 only

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

1.6 Notice shall be presumed to have been duly given when:

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1.6.1 Hand delivered - on the working day of delivery

1.6.2 Sent by registered post - five (5) working days after posting

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

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

1.7
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For the purposes of sentence in relation to a paym ent certificate only, the parties consent to the
jurisdiction of any court of the country as stated in the contract data although the amou nt of th e
claim by either of the parties against the other may exceed the jurisdiction of such court
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1.8 T h is agreem ent is the entire contract between the parties regarding the matters addressed in th is
agreem ent. No representations, terms, conditions or warranties not contained in this agreem ent
shall be bindin g o n the parties. No agreement or addendum varying, adding to, deleting or
terminating this agreem ent including this clause shall be effective unless redu c ed to writing and
signed by the parties
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OBJECTIVE AND PREPARATION

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2.0 OFFER, ACCEPTANCE AND PERFORMANCE OBLIGATIONS

2.1 The objective of this agreem ent is the execution of and payment for the works for which there has
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been an offer by the contractor and an acceptance thereof by the employer

2.2 In pursuance of the objective the parties undertake to carry out their reciprocal obligations
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3.0 DOCUMENTS
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3.1 The employer shall provide a paym ent guarantee where required by the contractor in the accepted
tender. The guarantee sh all be according to the relevant JBCC Payment Guarantee form in the
amount as stated in the contract data and shall be provided within twenty-one (21) calendar days
of acceptance of the tender. Such security shall be for the due fulfilment of the em ployer’s liability
only and the contractor hereby waives all common law rights to recover from or set-off against such
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security

3.2 The contractor shall provide:

3.2.1 A construction guarantee [14.3-4] where so elected in the Form of Offer and Acceptance

3.2.2 An advance paym ent guarantee where so required in the contractor’s accepted tender.
The guarantee shall be according to the JBCC Advance Payment Guarantee form in th e
amount as stated in the contract data

Principal Building Agreement Page 4

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

3.4 No clause

3.5 The principal agent shall complete the contract data and arrange the formal sig n in g of this
agreem ent once the contract docum ents have been provided and effected. Formal signatures are

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not required to render this agreem ent binding

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3.6 The parties shall sign, in original, the number of sets of contract docum ents required by the
parties. The c o n tractor shall be entitled to receive one (1) set of contract docum ents for this
agreem ent and two (2) sets of contract docum ents for each n/s subc o n tract agreement at no

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expense to the contractor. The original signed set of contract docum ents shall be held by the
principal agent or such other party as stated in the contract data

3.7 The principal agent shall provide the number of copies of drawings, unpriced b ills o f quantities

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and documents as stated in the contract data at no cost to the contractor. The c o n tra cto r shall
keep on site a copy of such documents and any other documents required for construction as well
as contract instructions to which the employer, p rin c ipal agent and agents shall have access
at all times

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3.8 Information contained in the contract docum ents and other documents flowing from this agreem ent
shall be used only for the purposes of this agreement and shall not be published or disclosed without
the prior written consent of the employer

3.9
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The priced document shall not be used as a specificatio n of m a te rials and goods or methods
unless so selected in the contract data
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3.10 W here the priced document is not a bills of quantities the contractor shall provid e a sc h ed u le
of rates in the contract data which meets with the principal agent’s approval

3.11 T h e p rincipal agent shall identify in detail any changes m ade to the provisions of JBCC standard
documentation in the contract data
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4.0 DESIGN RESPONSIBILITY

4.1 The contractor shall not be responsible for the design of the works other than the contractor’s or
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his subcontractors’ temporary work s. T h e c o ntractor shall not be responsible for the coordination
of design elements

4.2 Any design responsibility undertaken by a n/s subcontractor shall not devolve upon the contractor.
T h e righ ts flowing from a warranty regarding such design responsibility are hereby ceded to the
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employer. All contractual or other rights the contractor has against such n/s subcontractor arising
from any design responsibility undertaken are hereby ceded to the employer [26.7]
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4.3 The contractor shall be resp o nsible for ensuring the timeous preparation of the design
documentation undertaken by a selected subcontractor for acceptance by the principal agent to
avoid delay to the intended date for practical com pletion or any revision thereof [29.0]
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5.0 EMPLOYER’S AGENTS

5.1 The employer warrants that the principal agent as stated in the contract data has full authority and
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obligation to act in terms of the agreem ent

5.2 The employer shall appoint agents as stated in the contract data and may appoint further agents
with the contractor being informed thereof

5.3 The principal agent shall be the only party having the authority to bind the employer, except where
agents issue contract instructions under delegated authority [5.3.2]. W ithout detracting from the
above, the principal agent shall be the only party empowered to:

5.3.1 Issue contract instructions, except as provided [5.3.2]

Principal Building Agreement Page 5

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

5.3.3 Receive notices on behalf of the employer

5.4 Should th e principal agent or any agent be unable to act or cease to be an agent, the employer
shall inform th e contractor of the new principal agent or agent to be appointed. The employer
shall not appoint such a principal agent or agent against whom the contractor makes a reasonable

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objection in writing within five (5) working days of receipt of such notice

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5.5 Should the principal agent or any agents have a legal interest or involvement in the project
constituting the works, other than a professional interest, such shall be stated in the contract data
or immediately upon the acquisition of such interest or involvement

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5.6 The employer shall not interfere with or prevent the principal agent from exercising his independent
judgem ent when performing his obligations in terms of this agreem ent

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6.0 CONTRACTOR’S SITE REPRESENTATIVE
6.1 The contractor shall keep a representative competent to administer and control the works

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continuously on the site during the execution of the work s. The contractor shall inform the
principal agent of the name of the representative

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

7.0
contractor

COMPLIANCE WITH LAWS AND REGULATIONS

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7.1 The parties shall comply with all laws, regulations and bylaws of local or o th er au thorities having
ju risd ic tio n regarding the execution of the works. The parties shall give all notices and pay all
charges required by such authorities. The principal agent shall deal with the amounts th u s paid
[32.4, 33.2.1]
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8.0 WORKS RISK

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8.1 The contractor shall take full responsibility for the works from the date on which possession of the
site is given to the contractor and up to the date of issue of the certificate of practical com pletion
or deemed achievement of practical com pletion. Thereafter responsibility for the works shall pass
to the employer
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8.2 The contractor shall make good physical loss and repair damage to the works, including clearing
away and removing from the site all debris resulting therefrom , which occurs after the date on which
possession of the site is given and up to the date of final com pletion [26.0] and resulting from:
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8.2.1 Any cause arising up to the date of practical com pletion [24.0]

8.2.2 The carrying out of any operation complying with the contractor’s obligations after the date
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of practical com pletion

8.3 The liability of the contractor [8.2] shall include:

8.3.1 The cost of such making good physical loss and repairing damage
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8.3.2 T h e replacement value of m aterials and goods supplied by the employer to the
contractor

8.3.3 The additional professional services of the em ployer’s agents

8.4 The limit of the contractor’s liability shall not exceed the amount of the contract works insurance as
stated in the contract data

Principal Building Agreement Page 6

 8.5 The co n tractor shall not be liable for the cost of making good physical loss and repairing damage
to the works where this results from any of the following circumstances:

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

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

8.5.3 Civil com m o tio n , riot, strike, lockout or disorder by persons other than the contractor’s
personnel and other em ployees or his subcontractors

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

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8.5.5 S o n ic sh o c k waves caused by aircraft or other aerial devices and ionising radiation or
contamination except where attributable to the contractor’s use of such technology

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

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8.5.7 An act or omission of the em ployer, the em ployer’s servants or agents and those for
whose acts or omissions they are responsible

8.5.8 An act or omission by a direct contractor appointed [22.0]

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8.5.9 Design of the works where the contractor is not responsible [4.0]

8.5.10 A latent defect in m aterials and goods specified by trade name where the contractor has
no right of substitution. The contra cto r h ereby cedes any right of action to the employer

8.6
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that may exist against the supplier and/or manufacturer of such m aterials and goods

W here the contractor is not liable for the costs [8.5] suc h m aking good physical loss and repairing
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damage shall be measured and valued [32.0] and added to the contract value

8.7 T h e c o n tractor shall forthwith notify the principal agent and insurer of any physical loss and
damage to the works that comes to his attention
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9.0 INDEMNITIES
9.1 Subject to the 9.2 provisions the contra c tor indemnifies and holds the employer harmless against
any loss in respect of all claims, proceedings, damages, costs and expenses arising from:
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9.1.1 Claims from other parties consequent upon death or bodily injury or illness of any person
or physical loss or dam ag e to any property, other than the works, arising out of or due to
the execution of the works or occupation of the site by the contractor
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9.1.2 Noncompliance by the contractor with an y law, regulation or bylaw of any local or other
authority arising out of or due to the execution of the works or occupation of the site by the
contractor
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9.1.3 Physical loss or damage to any plan t, equipment or other property belonging to the
contractor or his subcontractors
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9.2 The employer indemnifies and holds the c o ntra cto r harmless against loss in respect of all claims,
proceedings, damages, costs and expenses arising from:

9.2.1 An act or omission of the em ployer, the em ployer’s servants or agents and those for
whose acts or omissions they are responsible
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9.2.2 An act or omission of a direct contractor appointed [22.0]

9.2.3 Design of the works where the contractor is not responsible [4.0]

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

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

Principal Building Agreement Page 7

 9.2.6 Interference with any servitu d e o r o ther right that is the unavoidable result of the execution
of the works including the weakening of or in terference with the support of land adjacent
to the site u n less resulting from any negligent act or omission by the contractor or his
subcontractors

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

9.2.8 Physical loss or damage to the conten ts of the works where practical com pletion has

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been achieved [24.0]

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9.2.9 The use or occupation of the site by the works

9.2.10 Advance payments where certified [31.6.5] and du ly m ade by the contractor to n/s

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subcontractors

9.2.11 A d efect in materials or goods supplied by the employer for incorporation in the works
including any consequential damage caused by such defect

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10.0 GENERAL INSURANCES

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10.1 Th e fo llo w ing general insurances are required to be effected in the joint names of the parties in
terms of this agreem ent:

10.1.1 C o n trac t works insurance which shall include the contractor’s subcontractors and the full

10.1.2
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value of m aterials and goods supplied by the employer to the contractor

Supplementary insurance for the works in respect of civil commotion, riot and strike
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10.1.3 Public liability insurance generally covering accidental injury or death of a person and
accidental loss or damage to material property

10.2 The insured amounts, deductibles and durations of cover shall be as stated in the contract data

10.3 W here this agreem ent is cancelled [37.0] and the contractor is not required to make good the
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physical loss or repair damage to the works, the right to the proceeds of a contract works insurance
claim shall vest in the employer

10.4 Subject to 10.3 the right to any claims paid or payable in terms of the insurances [10.1] shall vest in
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the party entitled to indemnity thereunder and such party shall be liable for the deductible

11.0 SPECIAL INSURANCES

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11.1 The following special insurances m ay be required to be effected. Such insurances shall be in the
joint names of the parties in terms of this agreem ent:
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11.1.1 Temporary lateral support insurance where the employer considers that the execution of
the works could cause the weakening of or interferenc e w ith the support of land adjacent
to the site and the consequences thereof
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11.1.2 Geotechnics insurance where the employer considers that the ground conditions of the site
could be unsuitable to support the works

11.1.3 Such other spec ialised insurance as the employer deems necessary as stated in the
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contract data

12.0 EFFECTING INSURANCES

12.1 The party responsible as stated in the contract data [12.6] shall effect and keep in force:

12.1.1 General insurance [10.1] from the date of the handover of the site and until the contractor’s
responsibility [8.0] has ended, and

Principal Building Agreement Page 8

 12.1.2 Special insurances where required [11.1] until the date of practical com pletion

12.2 The party responsible [12.6] for effecting such insurances shall make available to th e other party,
before the commencement of the construction period, documentary evidence that insurances have
been effected. A copy of the insurance policies shall be provided to the other party within thirty (30)
calendar days of the commencement of the construction period. Approval by the other party shall
be deemed unless a reasonable objection is lodged with in fo u rteen (14) calendar days of receipt
of such policies. W here required, the party responsible shall provide evid en c e o f renewal to the
other party before the expiry of the current period of insurance

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12.3 W here the party resp o n sib le [12.1] fails to effect any of the required insurances or to keep them in

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force, the other party may effect such insurances. W here the employer effects su c h in surances,
consequent on the contractor’s default, the employer may recover expense and loss resulting
therefrom [33.0]. W here the contractor effects or keeps in fo rc e such insurances, consequent on

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the em ployer’s default, the cost thereof shall be addressed [32.4]

12.4 Before effecting su p p o rt insurance [11.1.1] the employer shall engage an engineer or technologist
as an agent [5.3.2] to design and insp ec t the p ro vision of the necessary support. The principal

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agent shall delegate to such engineer or technolo g ist the authority to issue contract instructions
in relation to the support provisions

12.5 W here the employer has not ascertained the need for or effected any o f the insurances [11.0] the

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contractor, on demonstrating reasonable cause, may give the employer five (5) wo rk ing days
notice to do so. W here the employer fails to act thereon the contractor may give three (3) working
days notice of suspension of the work s. W here the employer fails to act on such notice the
contractor may give notice of termination [38.1.4]

12.6
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W here practic a l co m p le tion in sections is required [28.0] or the works is for alterations or
renovatio n s to an existing building(s) the effecting of contract works insurance [10.1.1] shall be the
responsibility of the employer
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13.0 ASSIGNMENT
13.1 Neither party shall assign or cede his rights or o b lig atio n s w ithout the written consent of the other
party, which consent shall not be withheld without good reason
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13.2 The contractor shall n o t consent to a nominated subcontractor assigning or ceding his rights or
obligations in terms of the JBCC Nominated Subcontract Agreement without obtaining the prior
approval of the principal agent
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14.0 SECURITY
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14.1 The contractor shall have the right to choose th e s e c urity to be provided [14.3-4] as stated in the
contract data. The choice of security shall be included in the contractor’s tender, failing which a
variable construction guarantee [14.3] shall be deemed to have been chosen. Such security shall
be provided to the em ployer within twenty-o
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ne (21) calendar days of acceptance of the contractor’s tender

14.2 No clause
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14.3 W here security as a variable construction guarante e h as b een chosen the following shall apply:

14.3.1 The contractor shall provide the employer with a variable construction guarantee initially
equal in value to ten per cent (10% ) of the contract sum
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14.3.2 The variable construction guarantee shall come into force, be administered and expire in
terms of the JBCC Construction Guarantee form

14.3.3 The employer shall return the variable co n s tru ction guarantee to the contractor within
fourteen (14) calendar days of its expiring

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

Principal Building Agreement Page 9

 14.4 W here security as a fixed construction guarantee and payment reduction of the value certified has
been chosen the following shall apply:

14.4.1 The contractor shall provide a fixed construction guarantee to the employer equal in
value to five per cent (5% ) of the contract sum

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

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14.4.3 The employer shall return the fixed construction guarantee to the contractor within
fourteen (14) calendar days of its expiring

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14.4.4 The payment reduction to the value certified in a paym ent certificate shall be made [31.8,
34.8]

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

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

14.5.1 The guaranteed amount shall b e eq ual in value to the cash advance requirement stated in

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the accepted tender, and

14.5.2 Such guarantee shall co m e into force, be administered and expire in terms of the JBCC
Advance Payment Guarantee form, and

14.5.3
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The employer shall return such guarantee to the contractor within fourteen (14) calendar
days of its expiring
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14.6 Payments made by the guaran to r to the employer in terms of a construction guarantee or an
advance paym ent guarantee shall not prejudice the rights of the employer or contractor

14.7 Should the contractor fail to pro vid e the security [14.1] the employer, in his sole discretion, may
either:
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14.7.1 Hand over the site to the contractor and withhold payment from the c o n tractor until the
amount withheld is equal to ten per cent (10% ) of the contract sum . Such amount shall be
reduced to two per cent (2% ) of the contract sum on the achievem en t of p ractical
completion [24.0] and to zero per cent (0% ) in the final paym ent certificate [34.8], or
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14.7.2 Terminate this agreem ent [36.1.1]

14.8 A s e c u rity held by the employer [14.3-5] shall be for the due fulfilment of the contractor’s liab ility
only and the employer hereby waives all comm on law rights to recover from or set-off against such
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security
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EXECUTION
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15.0 PREPARATION FOR AND EXECUTION OF THE WORKS

15.1 After acceptance of the tender or negotiated amou n t the contractor shall submit to the principal
agent within the period stated in the contract data:
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15.1.1 The priced document with all item s properly priced, extended and cast. Priced item s are
deemed to include all costs, overheads and profit. The princ ip a l agent may instruct the
contractor to adjust prices which are considered to be imbalanced or unreasonable and to
eliminate errors or discrepancies. Such adjustm ents shall be effected to the approval of the
principal agent and shall not change the contract sum , and

15.1.2 Such other documents and information identified in the contract data

15.2 The employer shall:

Principal Building Agreement Page 10

 15.2.1 Give possession of the site to the contractor on the date stated in the contract data, and

15.2.2 W here required in the contract data, provide an advan c e p aym ent on receipt of an
advance paym ent guarantee from the contractor, and

15.2.3 Inform the contractor of all cash advances and the quantum of each to be provided to n/s
subcontractors, and

15.2.4 Make payment to the contractor [31.0, 34.0]

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15.3 On being given possession of the site the contractor shall commence the works within the working

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days period stated in the contract data and, subject to 31.15-16, shall proceed continuously,
industriously and with due skill and appropriate physical resources to bring the works to:

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15.3.1 No clause

15.3.2 Practical com pletion [24.0], and

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15.3.3 W orks com pletion [25.0], and

15.3.4 Final com pletion [26.0]

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15.4 W here completion in sections is required in terms of the contract data the further provisions of 28.0
shall be applicable

15.5 The contractor shall p ro vid e everything necessary for the proper execution of the works and shall
carry out and complete the works in compliance with the contract docum ents, using materials and
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workmanship of the quality and standards specified therein, provided that such quality and standards
shall be to the reasonable satisfaction of the principal agent
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15.6 The contractor shall:

15.6.1 Prepare a program m e of the wo rk s to g ether with a schedule of outstanding construction

information in su fficient detail to enable the principal agent to assess the progress of the
works and timeously provide the necessary contract instructions, and
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15.6.2 C o o rdinate the n/s subcontractors’ and direct contractors’ programmes with his own,
and

15.6.3 Continuously revise and modify the program m e and the schedule of outstanding
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construction information and issue copies timeously to the principal agent

15.7 The contractor shall provid e all reasonable assistance to the principal agent in the preparation of
cash flow projections where req u ired by the employer. The projections shall be based on the
contractor’s program m e and shall be updated as and when necessary
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15.8 The principal agent and contractor shall hold regular meetings related to the progress of the works
and at such other times as may be necessary. The principa l ag e n t shall record and distribute the
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minutes of the meetings. At the request of the principal agent or the contractor meetings shall be
held to deal with technical and n/s subcontractors' coordination matters

15.9 The contra cto r sh all maintain daily records of the number and categories of persons and plant
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employed on the works and shall provide copies thereof to the principal agent on request

16.0 SITE AND ACCESS

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16.1 The contractor shall have unrestricted access to the site on being given possession thereof to fulfil
h is o b ligations [15.2.1]. Any restrictions to the site area, including servitudes and the like, that the
contractor may not occupy are defined in the c o n tract data. The contractor shall not extend his
operations into such defined areas

16.2 The employer, principal agent and agents shall have reasonable access to the works, workshops
and other places where work in terms of this agreem ent is being prepared, executed or stored

16.3 The contractor and n/s subcontractors shall be given reaso n ab le access to the works and any
section thereof subsequent to practical completion to fulfil their obligations [25.0, 26.0]
Principal Building Agreement Page 11
 16.4 W here a geotechnic investigation has been undertaken by the employer the results thereof shall be
provided in the contract data

16.5 The contractor shall be deemed to have inspected the site and any existing structures thereon and
to be thoroughly acquainted with the conditions under which the works is to be executed including
the means of access to the works, the condition of the roads and generally of all matters which may
influence the execution of the works

16.6 W here th e existing premises will be in use and occupied during the execution of the works the

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contra cto r shall execute the works with the least interference with the general routine of the
occupants of the premises and minimise any nuisance from dust, noise or other causes. Specific

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requirements of the employer are described in detail in the contract data

16.7 The employer has recorded all known services in the contract docum ents and an n o tated as to

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whether such services are to be terminated, diverted or continue in use either temporarily or
permanently. W here undocumented services are encountered the contractor shall immediately
suspend all affected work in the vicinity and req uest the principal agent to issue a contract
instruction in regard thereto

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16.8 Trees and shrubs shall not be removed, cut back or disturbed withou t a contract instruction from
the principal agent. Specific requirements of the employer are described in the contract data

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16.9 Any relics, treasure or other articles of potential value found on the site sh all remain the property of
the employer and shall be handed over to the principal agent who shall be the sole arbiter of what
is an article of value

17.0 CONTRACT INSTRUCTIONS rp

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

17.1.1 Alteration to desig n , q uality or quantity of the works provided that such contract
instructions shall not substantially change the scope of the works

17.1.2 R ectification of discrepancies, errors in description or omissions in contract docum en ts

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other than this document

17.1.3 Removal of any m aterials and goo d s from the site and the substitution of any other
m aterials and goods therefor
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17.1.4 Removal or re-execution of any work

17.1.5 Opening up of work for inspection

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17.1.6 Provision and testing of samples of m aterials and goods, specimens of finishes and
assemblies of elements of the works
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17.1.7 Protection of the works

17.1.8 Making good physical loss and repairing damage to the works [8.0]
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17.1.9 Removal from the site of any party employed on the works

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

17.1.11 The appointment of n/s subcontractors, the n/s subcontract amounts and the work to be
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executed thereunder

17.1.12 Proof of payment to n/s subcontractors [20.6 and 21.6]

17.1.13 Notices to nom inated subcontractors

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

17.1.15 Budgetary allowances and work executed by the contractor thereunder

Principal Building Agreement Page 12

 17.1.16 Contingency and other monetary provisions included in the contract sum

17.1.17 W ork by a direct contractor [22.0]

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

17.1.19 Compliance with laws, regulations and bylaws [7.0]

17.1.20 Access for previous contractors and subcontractors to rem edy defective work

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17.2 The contractor shall comply with and duly execute all contract instructions subject to 24.6

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17.3 An oral instructio n given by the principal agent or any other agent shall be of no force or effect.
Neither the contractor nor the employer may rely upon an oral instruction for any purpose

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17.4 Should the contractor fail to proceed with due diligence with a contract instruction, the principal
agent may notify the contractor to proceed within five (5) working days from receipt of such notice.
W ithout further notice, on default by the contractor, the employer may employ other parties to give

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effect to such contract instruction in addition to any other rights that the employer may have. The
employer may recover expense and loss [33.0] resulting from such employment

17.5 The contractor shall cooperate with and assist the principal agent where execution of a contract

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instruction could cause an adjustment to the contract value [32.2]

18.0 SETTING OUT OF THE WORKS

18.1 rp
The employer shall appoint an agent to establish the boundary pegs or beacons identifying the site
and the correctness of the datum level. At the commenc ement of the construction period such
agent shall p o in t o u t the pegs, beacons and datum level to the contractor in the presence of the
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principal agent

18.2 The principal agent shall define the levels required for the execution of the works and provide such
information as shall enable the contractor to set out the works correctly

18.3 The contractor shall provide all assistance and everything necessary to enable the accuracy of the
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settin g out to be checked. Checking of the setting out by others shall not relieve the contractor of
his responsibility fo r c o rrectness thereof. The contractor shall rectify any errors in the works that
arise from incorrect setting out without adjustment to the contract value. The contractor shall not
be liable for incorrect setting out should information given [18.1-2] cause incorrect setting out of the
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works

18.4 The contractor shall take all precau tio n s to preserve such pegs, beacons, datum levels and other
aid s u sed in setting out the works and should any be disturbed have them replaced by th e
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em ployer’s agent at the contractor’s expense

19.0 TEMPORARY WORKS AND PLANT

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19.1 W here required in the priced do c u m e n t the contractor shall erect, maintain and remove at
completion:
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19.1.1 Hoardings with gantries, fans, safety screens, barriers, access gates, covered gangways
and the like as necessary for the enclosure of the works and elements thereof all for the
protection of th e public and others or to meet the specific hoarding requirements of the
employer, and
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19.1.2 Office accommodation for meetings held on the site which shall be kept clean and fit for use
at all times

19.2 All advertising rights on the site and the hoardings are reserved exclusively for the employer.
Specific requirements of the employer are described in the priced document. The contractor shall
provide and erect notice boards of an approved d esign as instructed by the principal agent. No
individ u al boards or advertising material shall be allowed on the site without the principal agent’s
approval

Principal Building Agreement Page 13

 19.3 T h e contractor shall provide, maintain and remove on completion all plant, equipment, scaffolding ,
tools, tem porary sheds, enclosures and the like required by the contractor for the due and proper
fulfilment of the works

20.0 NOMINATED SUBCONTRACTORS

20.1 The principal agent shall:

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20.1.1 Prepare tend er d o c u ments in conformity with the n/s agreem ent and this agreem ent for

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work intended to be executed by a nominated subcontractor and th ereafter call for
tenders, and

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20.1.2 Nominate a subcontractor and instruct the contractor to appoint such subcontractor as a
nominated subcontractor in terms of the n/s agreem ent and other tender requirem ents,
and

20.1.3 Inform the contractor that an advance payment shall be made to the nominated

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subco n tractor where such requirement is included in the accepted tender and that
recovery thereof will be effected [33.2.4]

20.2 The contractor may refuse to appoint such subcontractor:

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20.2.1 Against whom the contractor makes a reasonable objection, or

20.2.2 W ho refuses to enter into a subcontract in terms of the n/s agreem ent and other tender

20.2.3
requirements, or
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W ho is unable to provide security in terms of the n/s agreem ent
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20.3 W here such subcontractor is not ap p o in ted b y the contractor for reasons [20.2] another
subcontractor shall be nominated and appointed [20.1]

20.4 The contractor shall provide a payment guarantee in terms of the n/s agre em e n t w here required
by the nominated subcontractor
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20.5 The contractor shall make payment to the nom inated subcontracto r o f the amount certified and
identified [31.13.1] in terms of the n/s agreement

20.6 The contractor shall, within five (5) working days of receipt of a contract instruction provide proof
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to the principal agen t [17.1.12], that the contractor’s payment obligations [20.5] have been
discharged. Failure b y the contractor to provide such proof to the satisfaction of the principal
agent shall entitle the employer to instruct the principal agent to certify payment direct to the
nominated subcontractor [35.1.2]. The contractor shall have no recourse to recover such
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amounts from the employer. Such direct payment shall not create privity of contrac t b etw een the
employer and the nominated su b c o n tractor. The employer may recover such direct payment
from the contractor [33.2.8]
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20.7 W h ere, after notification by the contractor, the principal agent agrees that the nominated
subcontrac to r is in default of a material term of the n/s agreem ent the principal agent shall
instruct the contractor to notify the nominated subcontractor to rectify such default. The principal
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agent may instruct the contractor to terminate the n/s agreem ent should such default continue for
five (5) working days after such notice

20.8 W here termination of the nominated subcon tract occurs another subcontractor shall be nominated
and appointed to carry out and complete the balance of the nominated subcontract works
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20.9 W here the n/s agreem ent is terminated due to default or insolvency of the nominated
subcontractor, or default by the employer or his agents, any variation in the cost of carrying out
and completing the nominated subcontract works shall be adjusted [32.5-6]

20.10 W here the n/s agreem ent is terminated due to default or insolvency of the contractor, any variation
in the cost of carrying out and completing the nom inated subcontract works shall be for the account
of the contractor. Expense and loss suffered by the employer from such terminatio n m ay be
recovered [33.2.3]

Principal Building Agreement Page 14

 21.0 SELECTED SUBCONTRACTORS
21.1 The principal agent shall:

21.1.1 Prepare tender documents in confo rm ity w ith the n/s agreem ent and this agreem ent for
work intended to be executed by a se le c te d su b contractor. Such preparation shall be
carried out in consultation with and to the reasonable approval of the contractor, and

21.1.2 Call for tenders from a list of tenderers agreed between the contra c tor and the principal

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agent, and

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21.1.3 In consultation with the contractor, choose the successful tenderer to be appointed as a
selected subcontractor in terms of the n/s agreem ent and other tender requirements, and

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21.1.4 Inform the contractor that an ad van ce payment shall be made to the selected
subcontractor where such an advance payment requirement is included in th e accepted
tender and that recovery thereof will be effected [33.2.4]

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21.2 The contractor shall within ten (10) w o rk in g d a ys of such selection [21.1.3] determine that such
subcontractor can:

21.2.1 Meet the requirements of the n/s agreem ent and other tender requirements, and

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21.2.2 Provide security in terms of the n/s agreem ent

21.3 The contractor [21.2] shall forthwith either:

21.3.1 rp
Appoint such subcontractor as a selected subcontractor and inform the principal agent
accordingly, or
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21.3.2 P ro vid e reasonable cause to the satisfaction of the principal agent for not m aking su c h
appointment in which event another subcontractor shall be chosen [21.1.3]

21.4 The contractor shall provide a payment guarantee in terms of the n/s agreem ent wh ere required
by the selected subcontractor
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21.5 The contractor shall make payment to the selected subcontractor of the am o u n t certified and
identified [31.13.1] and in terms of the n/s agreem ent

21.6 The contractor shall, within five (5) working days of receipt of a contract instruction provide proof
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to the principal agent [17.1.12] that the contractor’s payment obligations [21.5] have been
discharg ed . Failure by the contractor to provide such proof to the satisfaction of the principal
agent shall entitle the employer to instruct the p rincipal agent to certify payment direct to the
selected subcontractor [35.1.2]. The contractor shall have no recourse to recover such am ounts
from the employer. Such direct payment shall not create privity of contract between the employer
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and the s e le c te d subcontractor. The employer may recover such direct payment amounts from
the contractor [33.2.8]
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21.7 W here the selected subcontractor is in default of a material term of the n/s agreem ent the decision
of whether or not to terminate the n/s agreement is that of the contractor
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21.8 W here termination of the selected subcontract occurs the contractor shall appoint another
subcontractor subject to the approval of the principal agent

21.9 W here the n/s agreem ent is terminated due to default by the employer or his agents, any variation
in the cost of carrying out and completing the selected subcontract works shall be adjusted [32.5-6]
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21.10 W here the n/s agreem ent is terminated, other than due to employer default [21.9], any variation in
the cost of carrying out and c o m p leting the selected subcontract works shall be for the account of
the contractor

22.0 EMPLOYER’S DIRECT CONTRACTORS

22.1 On instruction of the principal agent [17.1.17] the contractor shall permit work to be executed and
installed in the works by a direct contractor. The direct contractor, the work or installation to be

Principal Building Agreement Page 15

 undertaken, the insuran c es related thereto and the associated risks shall be the direct responsibility
of the employer [9.2.2]

22.2 The type and extent of such work shall be described in the contra c t d a ta. The contractor shall
make reasonable allowance in his programme for such work or installation

22.3 A direct contractor executing such work or installation shall be su b jec t to reasonable controls as
required by the contractor

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22.4 The contractor shall be entitled to claim expense or loss caused by a direct contractor [32.5.4]

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22.5 The payment of a direct contractor shall be the responsibility of the employer and shall not be dealt
with in terms of this agreem ent

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23.0 CONTRACTOR’S DOMESTIC SUBCONTRACTORS
23.1 The contractor shall appoint all domestic subcontractors in term s of an agreement that pro vid es

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for fair and equitable conditions of contract compatible with this agreem ent

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

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COMPLETION
24.0 PRACTICAL COMPLETION
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24.1 The principal agent at appropriate intervals shall:

24.1.1 Inspect the works to give the contractor interpretations and guidance on the building
standards and the state of completion of the works w hich the contractor will be required
to achieve for practical com pletion, and
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24.1.2 W here necessary timeously issue a contract instruction [17.1.4] consequent up o n such
inspection, and

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

24.2 The contractor shall inspect the works to satisfy h im self that the state of completion of the works
[24.1] has been achieved
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24.3 The contractor shall give timeous notice of the anticipated date of practical com pletion to the
principal agent to inspect the works so as to meet such date. W here, in the opinion of the
principal agent, after such inspection the works either:
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24.3.1 Has reached practical com pletion, the principal agent shall forthwith issue a certificate
of practical com pletion to th e c o n tra ctor with a copy to the employer. The certificate
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of practical com pletion, unless otherwise agreed by the parties, shall not be issued before
the date for practical com pletion as stated in the contract data or the revised date [29.0],
or

24.3.2 Has no t reac h ed practical com pletion, the principal agent shall forthwith issue a
practical com pletion list to the contractor defining the incomplete work and defects to be
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rectified to achieve practical com pletion

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

24.4.1 Has been satisfactorily completed, the principal age nt shall forthwith issue a certificate
of practical com pletion [24.3.1], or

Principal Building Agreement Page 16

 24.4.2 Has not been satisfactorily completed, the principal agent shall forthwith identify the items
on the practical co m p letion list that are not yet complete and inform the contractor
thereof. The contractor shall repeat the procedure [24.4]

24.5 Should the principal agent not issue a practical com pletion list [24.3.2] or the updated list [24.4.2],
within seven (7) calendar days of the end of the inspection perio d , the contractor shall notify the
employer and principal agent. Should the principal agent not issue such practical com pletion
list within seven (7) calendar days of receipt of such notice practical com pletion shall be deemed
to have been achieved either:

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24.5.1 On the date that practical com pletion was anticipated [24.3], or

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24.5.2 On the date of expiry of the notice given by the contractor [24.5]

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

24.7 Upon the issue of the certificate of practical com pletio n the employer shall be entitled to

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possession of the works and the site subject to the c o n tra c tor’s lien or right of continuing
possession of the works

24.8 W here the employer at any time takes possession of the whole or part of the works by agreement

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with the contractor [24.3.1, 28.2.2] prior to the applicable date for practical com pletion [24.0, 28.0]
then practical com pletion sh all b e deemed to have taken place and the applicable certificate of
practical com pletion shall be issued

24.9 Upon the achievement of practical com pletion the contractor shall h and over to the principal
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agent all operating and instruction manuals, product guarantees and manufacturers’ instructions as
stated in the contract data and information for the preparation of as b u ilt d rawings as required by
the principal agent
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24.10 On practical com pletion of a section of the works [28.0] and where the principal agent instructs
that tenant installation work is to be executed by others therein [22.0]:

24.10.1 The contractor shall allow reasonable access to such section, and
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24.10.2 The principal agent shall inspect and record the state of completion to such section and
include a list of defects pertaining thereto
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25.0 WORKS COMPLETION

25.1 W ithin seven (7) calendar days of the date of practical com pletion the principal agent shall issue
to the contractor a works com pletion list defining the incomplete work and defects apparent at the
date of practical com pletion to be completed or rectified to achieve works com pletion
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25.2 W here, in the opinio n of the contractor, the works com pletion list has been completed the
contractor shall notify the princip a l ag e n t who shall inspect within seven (7) calendar days of
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receipt of such notice. W here, in the opinion of the principal agent, the works com pletion list
either:
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25.2.1 Has been satisfactorily completed, the principal agent shall forthwith issue a certificate
of works com pletion to the contractor with a copy to the employer, or

25.2.2 Has not been satisfactorily completed, the principal agent shall forthwith identify the items
on the works com pletion list that are not yet complete and inform the contractor thereof.
The contractor shall repeat the procedure [25.2]
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25.3 Should the principal agent not issue a works com pletion list [25.1, 25.2.2] with in seven (7)
calendar days of the end of the inspection period, the contractor shall notify th e em p loyer and
principal agent. Should the principal agent not issue such works com pletion list within seven (7)
calendar days of receipt of such notice, the certificate of works com pletio n sh all be deemed to
have been issued on the date of expiry of th e in itial n o tice period and works com pletion shall be
deemed to have been achieved on such date

Principal Building Agreement Page 17

 25.4 Should the works com pletion list not be completed within a period of twenty (20) working days of
the issue thereof the contractor shall not be entitled to compensatory interest [3 1 .1 0 ] o n th e value
of the outstanding work so listed

25.5 The defects liability p eriod [26.1] shall commence with the issue of the certificate of works
completion or deemed achievement of works completion [25.2.1 or 25.3]

26.0 FINAL COMPLETION

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26.1 The defects liability period for the works shall commence on the date of works com pletion and end

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at midnight (00:00) ninety (90) calendar days from such date

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

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where the works either:

26.2.1 H as reached final com pletion the principal agent shall forthwith issue a certificate o f
final com pletion to the contractor with a copy to the employer, or

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26.2.2 Has not reac hed fin al com pletion the principal agent shall forthwith issue a defects list
to the contra cto r defining the defects, which have appeared during the defects liability
period, to be rectified to achieve final com pletion

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

26.3.1 rp
Has been satisfactorily completed the principal agent shall forthwith issue a certificate of
final com pletion to the contractor with a copy to the employer, or
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26.3.2 Has not been satisfactorily completed or where further defects have become apparent, the
p rin c ipal agent shall forthwith identify such items on the updated defects list and in form
the contractor thereof. The contractor shall repeat the procedure [26.3]

26.4 Should the principal agent not issue a defects list [26.2.2, 26.3.2] within seven (7) calendar days
from the end of the defects liability period, the contractor shall no tify the em ployer and principal
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agent. S hould the principal agent not issue such defects list within seven (7) calendar days of
receipt of such notice, the certificate of final com pletion shall be deemed to have been issued on
the date of expiry of the initial notice period and final com pletion sh all b e d eem ed to have been
achieved on such date
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26.5 W here a n/s subcontractor’s defects liability period extends beyond the contracto r’s defects
liability period [26.1]:

26.5.1 The contractor’s obligations and liability concern in g such subcontractor’s defects shall
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nevertheless end on the issue of the certificate of final com pletion, and

26.5.2 The remaining portion of such subcontractor’s defects liability p eriod shall be subject to a
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direct agreement between the employer and the subcontractor and shall no longer be the
responsibility of the contractor
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26.6 A n issu ed certificate of final com pletion [26.2.1, 26.3.1] shall be conclusive evidence as to th e
su fficiency of the works and that the contractor’s obligations [2.2, 15.3] have been fulfilled other
than for latent defects

26.7 W here a subcontractor is required to give a guarantee, warranty or indemnity related to subcontract
work, other than a security to the contractor, the rights under such guarantee, warranty or indemnity
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shall be ceded to the employer on the date of issue of the certificate of final com pletion [4.2]. This
cession shall not prejudice any other rights that the employer may have

27.0 LATENT DEFECTS LIABILITY PERIOD

27.1 The latent defects liability period for the w o rk s shall commence at the start of the construction
period and end five (5) years from the date of achievement of final com pletion [26.0]

Principal Building Agreement Page 18

 27.2 W here termination of this agreem ent occurs before the achievement of final com pletion the latent
defects liability period shall end either:

27.2.1 Five (5) years from the date of termination [36.0, 39.0], or

27.2.2 On the date of termination [37.0, 38.0]

27.3 The contractor shall make go o d all d e fects that appear up to the date of final com pletion [24.0-
26.0]

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28.0 SECTIONAL COMPLETION
28.1 W here sections are required to be completed as stated in the contract data, terms and conditions

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applicable to the works without s e c tions shall apply to each section. The following documents,
which shall include each section, shall be issued by the principal agent for the works as a whole:

28.1.1 Interim paym ent certificates [31.1]

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28.1.2 Recovery statem ents [33.1]

28.1.3 Final account [34.1]

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28.1.4 Final paym ent certificate [34.5]

28.1.5 Certificate of final com pletion [26.0] that shall incorporate th e certificate of final

28.2
completion of the last section
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The following documents shall be issued by the principal agent individually for each section:
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28.2.1 No clause

28.2.2 A certificate of practical com pletion [24.0]

28.2.3 A certificate of works com pletion [25.0]

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

29.0 REVISION OF DATE FOR PRACTICAL COMPLETION

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29.1 The circumstances for which the contractor is en titled to a revision of the date for practical
completion and for which revision the principal agent shall not ad just the contract value [32.12]
are delays to practical com pletion caused by one or more of the following:
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29.1.1 The adverse effect of weather conditions

29.1.2 The inability to ob tain m a te rials and goods where the contractor has taken all practical
ef

steps to avoid or reduce such delay

29.1.3 Making good physical loss and repairin g damage to the works [8.0] where the contractor
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is at risk

29.1.4 An event that neither party could prevent, civil commotion, riot, strike or lockout

29.1.5 Late supply of a prim e cost amou nt item where the contractor has taken all reasonable
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steps to avoid or reduce such delay

29.1.6 Default by a nominated s u b c o n trac tor where the contractor has taken all reasonable
steps to avoid or reduce such delay

29.2 The circumstances for which the contractor is entitled to a revision o f the date for practical
completion and for which revision the principal agent sh all adjust the contract value [32.12] are
delays to practical completion caused by one or more of the following:

29.2.1 Failure to give possession of the site to the contractor [15.2.1]

Principal Building Agreement Page 19

 29.2.2 Making good physical loss and repairing damage to the works [8.0] where the contractor
is not at risk

29.2.3 Contract instructions [17.0] not occasioned by default by the contractor

29.2.4 Failure to issue construction information timeously [15.6]

29.2.5 Late acceptanc e by the principal agent of a design undertaken by a selected

subcontractor where the contractor’s obligations [4.3] have been met

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29.2.6 Suspension or termination invoked by a n/s subcontractor due to default by the employer

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or the principal agent [38.1]

29.2.7 Insolvency of a nominated subcontractor

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29.2.8 A direct contractor

29.2.9 Opening up and testing of work and materials and goods [17.1.5-6] where such work is in

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accordance with the contract documents

29.2.10 The execution of additional work for which the quantity included in the bills of quantities
is not sufficiently accurate

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

29.2.12 Suspension of the works [12.5, 31.15]

29.3
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Further circumstances for which the contractor is entitled to a revision of the date for practical
completion are delays to p ra c tic a l com pletion by any other cause beyond the contractor’s
reasonable control that could not have reasonably been anticipated and provided for. The principal
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agent shall adjust the contract value where such delay is due to the employer exercising his rights
in terms of the agreem ent or by the default of the employer

29.4 Should a circumstance as listed [29.1-3] occur which could, in the opinion of the contractor, cause
a delay to practical com pletion the contractor shall:
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29.4.1 Give the principal agent reasonable and timeous notice of such circumstance, and

29.4.2 Take all reasonable steps to avoid or reduce the delay

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29.4.3 W ithin twenty (20) working days from the date upon which the contractor became aware
or ought reasonably to have become aware of the potential delay notify the principal agent
of his intention to submit a claim for a revision to the date for practical com pletion or any
previous revision thereof resulting from such delay, failing which the contracto r’s right to
claim shall lapse
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29.5 The contractor shall, within forty (40) working days of the delay ceasing, submit such claim to the
principal agent, failing which the contractor shall forfeit such claim
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29.6 W here the contractor req u ests a revision of the date for practical com pletion the claim shall in
respect of each circumstance separately state:
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29.6.1 The relevant clause or clauses [29.1-3] on which the contractor relies, and

29.6.2 The particulars of the effect of the delay on critical progress towards practical com pletion,
and
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29.6.3 The extension period claimed in working days, and the calculation thereof

29.7 The principal agent shall within fifteen (15) working days of receipt of a claim [29.6] grant in full,
reduce or refuse the working days claimed. The principal agent shall:

29.7.1 Determ ine the revised date for practical com ple tion in relation to the working days
granted, and

29.7.2 Identify each circ u m stan ce and relevant subclause for each revision granted or amended,
or

Principal Building Agreement Page 20

 29.7.3 Give reasons for refusing such claim

29.8 W here the principal agent fails to act [29.7] the claim shall be deemed to be refused

30.0 PENALTY FOR LATE OR NONCOMPLETION

30.1 W here the contractor fails to bring the works or sections thereof to practical com pletion on the
date or dates stated in the contract data or revision thereof [29.0], the contractor shall be liable to

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the employer for the determined penalty

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30.2 W here the em ployer elects to levy such penalty [33.1.1] the principal agent shall detail the penalty
amount due at the rate(s) per calendar da y stated in the contract data from the current date of
practical com pletion [29.0] up to and including:

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30.2.1 The actual or deemed date of practical com pletion of the works [24.8] or section thereof
[28.2], or

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30.2.2 The date of termination [36.3]

30.3 W here possession of part of the works is taken [24.8] and no penalty related to sections is stated
in the contract data the principal agent shall prorate the penalty as stated for the works as a

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whole in the ratio of the contract value of the occupied part of the works to that of the works as a
whole

PAYMENT rp
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31.0 INTERIM PAYMENT
31.1 The principal agent shall issue an interim payment ce rtific a te every month until the issue of the
final paym ent certificate. The paym ent certificate sh all b e based on a valuation prepared within
seven (7) calendar days before the date stated [31.3] and may be for a nil or negative amount
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31.2 The contractor shall cooperate with and assist the prin c ip a l agent in the preparation of the
payment claim information for an interim paym ent certificate by providing to the principal agent
all relevant documents and assessments of quantified amounts of work com pleted. For a contract
without bills of quantities the contractor shall c o m p ile such information for work completed and
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m aterials and goods in such form as agreed by the principal agent. The prin c ipal agent shall
not be relieved of his responsibility to issue an interim p a ym ent certificate [31.4] whether or not
such information is provided by the contractor
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31.3 An interim paym ent certificate shall be issued to the contractor with a copy to the employer by
not later than the day of the month stated in the contract data

31.4 The value certified in an interim paym ent certificate shall separately include:
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31.4.1 A reasonable estimate of the value of the work executed taking into account the information
submitted by the contractor [31.2] and making d u e allowance for adjustments to the
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contract value [32.0], and

31.4.2 A reasonable estimate of the value of m aterials and goods [31.6], and

31.4.3 The total of amounts previously certified [31.4.1-2]

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31.5 T h e following adjustments shall be made to the amounts certified [31.4.1-2] and shall separately
include the following:

31.5.1 No clause

31.5.2 Security adjustment [14.0, 31.8]

31.5.3 CPAP adjustment where elected in the contract data

Principal Building Agreement Page 21

 31.5.4 The amounts due to the em ployer or contractor in the recovery statement [33.1]
excluding interest amounts [31.5.6]

31.5.5 Tax on the net total of the amounts [31.4, 31.5.1-4]

31.5.6 Interest amounts included in the recovery statement [33.1]

31.6 The value of m aterials and goods [31.4.2] shall be included in the value certified only where, to the
satisfaction of the principal agent, the m aterials and goods are:

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31.6.1 Not prematurely delivered or offered for delivery in terms of the program m e, and

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31.6.2 Timeously delivered or offered for d elivery where the placing of the order was in terms of
the requirements of the principal agent, and

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31.6.3 Stored and protected against loss or damage, and

31.6.4 Covered by insurance [10.1], and

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31.6.5 W here stored off the site, covered by an advance paym ent guarantee or such other
security as may be accepted by the em ployer

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31.7 Materials and goods certified [3 1 .6] shall become the property of the employer and shall not be
removed without the written authority of the principal agent

31.8 W here security as a fixed construction guarantee and payment reduction [14.4] has been chosen
the value of the works [31.4.1] and m aterials and goods [31.4.2] that exceeds the c o ntract sum
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and any CPAP adjustm ent shall be certified in full. The value certified th at d o es not exceed the
contract sum shall be subject to the following percentage adjustments:
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31.8.1 Ninety-five per cent (95% ) o f su ch value in interim paym ent certificates issued up to the
date of practical com pletion

31.8.2 Ninety-seven per cent (9 7 % ) o f such value in interim paym ent certificates issued on the
date of practical com pletion and up to but excluding the date of final com pletion
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31.8.3 Ninety-nine per cent (99% ) of such value in interim paym ent certificates issued on the date
of final com pletion and up to but excluding the final paym ent certificate [34.6]

31.8.4 One hundred per cent (100% ) of such value in the final paym ent certificate except where
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the amount c ertified is in favour of the employer. In such an event the payment reduction
shall remain at the adjustment level applicable to the final paym ent certificate [ 34.6]

31.9 The employer shall pay to the contractor the amount certified in an interim p aym ent certificate
within seven (7) calendar days of the date for issue of the paym ent certificate
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31.10 The employer shall pay the contractor compensatory interest on all amounts certified in an interim
paym ent certificate issued after thirty-one (31) calendar days of the date of practical com pletion.
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Subject to 25.4 the principal agen t sh all calculate such compensation at the interest rate
compounded monthly from the date of practical com pletion up to and including the date on which
payment is due to the contractor and include such amount in the recovery statement [33.0]
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31.11 W here the contractor does not receive payment of the amount due by the due date [31.9], the
e m p lo ye r sh all be liable for default interest on the am ount without prejudice to any other rights the
contractor may have. Such interest amount shall b e c o mpounded monthly from the due date for
payment up to and including the date on which the contractor is to receive payment and included
in the recovery statement [33.0]. The principal agent shall calculate such default interest at the
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rate of one hundred and sixty per cent (160%) of the interest

31.12 W here a paym ent certificate reflects an amount in favour of the employer, the contractor shall pay
th e am ount certified within twenty-one (21) calendar days of the date of issue of the p a ym e n t
certificate. W here such amount has not been paid, the contractor shall be liable for default interest
[31.11] and the principal agent shall include such amount in the next recovery statement [33.0].
The principal agent shall calculate such interest at the rate of one hundred and sixty per cent
(160% ) of the interest

Principal Building Agreement Page 22

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

31.13.1 A statement to the contractor showing the formulation of the amount identified and certified
for each n/s subcontractor

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

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31.13.3 A statement to the parties showing the total am ount certified to date of all adjusted am ounts
[31.5]

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31.14 An interim paym ent certificate shall not be evidence that the works and m aterials and goods are
in terms of this agreem ent

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31.15 W here the principal agent fails to issue a paym ent certificate [31.1] or the employer fails to make
payment [31.9] the contractor may give three (3) working days notice to suspend the works to the
em ployer, with a copy to the principal agent

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31.16 W here the employer has not paid or has made a partial payment only o f th e am o u n t due in an
issued paym ent certificate [31.1] the contractor may:

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31.16.1 Issu e a d em and to the employer in terms of the paym ent guarantee where such is
provided [3.1], or

31.16.2 Exercise his lien or right of continu ing possession where this has not been waived in terms
of the contract data and where practical com pletion has not been achieved, or

31.16.3
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Give notice of suspension of the works [31.15]. W here the employer fails to act in relation
to such notice the contractor may give notice of term ination [38.1.4,6]
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32.0 ADJUSTMENT TO THE CONTRACT VALUE
32.1 The principal agent shall determine the value of adjustments to the contract value according to the
priced document. W here items of additional work are req u ired the principal agent and the
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contractor may agree on the adjustm ent before the commencement of such work

32.2 Adjustment to th e c o n tra ct value resulting from a contract instruction [17.5] for additional work
shall be determined as follows:
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32.2.1 W ork of similar c h aracter executed under similar conditions shall be priced at the rates in
the priced document, or

32.2.2 W here 32.2 .1 is n ot applicable at rates based on those in the priced document and
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adjusted to suit the changed circumstances, or

32.2.3 W here 32.2.1-2 cannot be used such work shall be priced at new rates that take into
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account the labour, engineering, drawings, material, transpo rt and plant necessary for
executing the work plus an allowance of ten per cent (10% ) markup thereon
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32.2.4 W ork omitted shall be valued at the rates in the priced document, but where the omission
of such work alters the circumstances in which the remaining work is carried out, the value
of the remaining work shall be determined by the method [32.2.2]

32.3 W here work has been identified in the p ric ed docum ent as provisional, the principal agent shall
omit the value thereof from the contract value and the work as executed shall be valued [32.2] and
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added to the contract value

32.4 W here the contractor has made payment for items that are not included in the priced docum e n t,
the actual amounts paid plus a ten per cent (10% ) markup shall be added to the contract value for
the following:

32.4.1 Charges by authorities [7.1]

32.4.2 T he cost of opening up and testing [17.1.5-6], provided that the contractor shall bear the
cost thereof should the test show that the work is not according to the contract docum ents
Principal Building Agreement Page 23
 32.4.3 The cost of insurance [12.3]

32.4.4 The cost of support insurance [11.1.1]

32.5 W here the contractor has incurred expense and loss due to no fault of the contractor for which
provision was not required in the contract sum and for which reasonable compensation has not
been made [32.2,12], the contractor shall provide details of such expense and loss to the principal
agent [32.6]. Such circumstances are:

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32.5.1 The issue of a contract instruction

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32.5.2 Failure to issue or the late issue of a contract instruction following a timeous request from
the contractor [15.6]

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32.5.3 Nondisclosure of changes m ade to the provisions of JBCC standard documentation [3.11]

32.5.4 Expense and loss caused by a direct contractor [22.4]

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32.5.5 Default by the employer or his agents

32.5.6 Suspension or termination of a n/s subcontract due to default by the employer or his agents

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32.5.7 Default or insolvency of a nominated subcontractor

32.5.8 Suspension of the works [31.15]

32.6 The contractor shall notify the principal agent within forty (40) working days from becoming aware
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or from when he ought reasonably to have become aware of such expense and loss [32.5] failing
which no compensation will be made. W here such notification has been given:
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32.6.1 The contractor shall subm it d etails of the expense and loss once these can be quantified,
and

32.6.2 The principal agent shall make a reasonable assessment of the compensation to be added
to the contract value within twenty (20) working days of receipt of such details
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32.6.3 The claim sh all b e deemed to have been refused where the principal agent fails to make
such an assessment

32.7 The principal agent shall omit the n/s subcontract amounts from the contract value and determine
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the am ounts as the final account value of the respective su b c o ntract works to be added to the
contract value

32.8 The principal agent shall prorate th e contractor’s attendance and profit provision on the n/s
subcontractor amounts in the contract sum to the value of each subcontract [32.7] excluding any
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allowance for CPAP

32.9 The principal agent shall omit budgetary allowances and any other monetary provisions [17.1.15,
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16] from the contract value and determ ine the value of work related thereto [32.0] to be added to
the contract value

32.10 The principal agent shall omit prime cost am ounts [17.1.14] from the contract value and the
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actual delivered cost of such item s, including a reasonable allowance for waste, shall be added to
the contract value

32.11 The principal agent shall p ro rate the contractor’s allowances for overheads and profit on prim e
cost am ounts in the contract sum to the value of each item [32.10]
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32.12 T h e p relim in ary and general amounts in the priced document shall be adjusted and paid in term s
of the alternative chosen by the contractor as stated in the contract data

32.13 W here applicable the contract value shall be adjusted according to C P A P u sin g the information
stated in the contract data

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

Principal Building Agreement Page 24

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

33.0 RECOVERY OF EXPENSE AND LOSS

33.1 The principal agent shall issue a recovery statement monthly to th e p a rtie s simultaneously with

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the paym ent certificate. Explanatory documentation as may be necessary to support the calculation
of the amounts stated shall accompany the recove ry s tatement. The principal agent shall show

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on the recovery statement amounts due to the employer for:

33.1.1 Penalties levied where the em ployer so elects [30.2]

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33.1.2 Default interest [31.12]

33.1.3 Expense and loss [33.2]

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and amounts due to the contractor for:

33.1.4 Compensatory interest [31.10]

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33.1.5 Default interest [31.11]

33.1.6 Damages [38.5.6]

33.1.7

33.2
Advance payments granted [14.5]
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The employer may recover expense and loss incurred or to be incurred resulting from:
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33.2.1 The employer paying charges or effec ting insurance upon the contractor’s default [7.1,
12.3]

33.2.2 W ork executed by other parties [17.4]

33.2.3 Termination of a nominated subcontract [20.10]

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33.2.4 Recoupment of advance payments [14.5, 20.1.3, 21.1.4]

33.2.5 The contractor not paying the amount due to the employer [31.12]
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33.2.6 The agreem ent being terminated [36.0]

33.2.7 Default by the contractor where not less than seven (7) calendar days notice detailing
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such defau lt h as b een given before the issue of the next recovery statement to allow the
contractor the opportunity to remedy such default

33.2.8 Am ounts paid direct to n/s subcontractors [20.6, 21.6]

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33.3 The principal agent shall include an amount due in terms of the recovery statement in the
accompanying paym ent certificate. W here the paym ent ce rtific ate reflects an amount in favour
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of the employer and the contractor has n ot p aid [31.12], such amount may be recovered by the
employer from any or all of the following in no specific sequence:

33.3.1 Subsequent paym ent certificates

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33.3.2 Security [14.0]

33.3.3 The contractor as a debt

33.4 W here the employer decides to recover amounts due [33.3] from a payment reduction [14.4.5], the
employer shall notify the contractor and the principal agent thereof. Should such amount not be
paid to the employer within seven (7) calendar days of the date of receipt of such notice by th e
contractor, the employer may recover such amount from the security

Principal Building Agreement Page 25

 33.5 W here the employer decides to recover an amount d u e [33.3] from a construction guarantee or
advance paym ent guarantee held as security, the em plo ye r shall issue a written demand to the
contractor in terms of such guarantee

33.6 W here a provisional sequestration or provisional liquidation order has been granted or where an
order has been granted which commences seq u estration, liquidation, bankruptcy, receivership,
winding-u p o r any similar effect against the contractor or this agreem ent is terminated [36.0], the
employer may issue a demand to the guarantor in terms of the construction guarantee or advance
paym ent guarantee held as security

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34.0 FINAL ACCOUNT AND FINAL PAYMENT
34.1 The contractor shall cooperate with and assist the principal agent in the preparation of the final

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account by timeously providing all relevant documents on request. The principal agent shall issue
the final account to the contra c tor within ninety (90) working days of the date of practical
completion

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34.2 No clause

34.3 The contracto r shall accept or object to the final account within forty-five (45) working days of
receipt thereof. On acceptance, or should the contractor not object w ith reaso n s to the final

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account within such period, the principal agent shall issue the final paym ent certificate [34.5]

34.4 Should the contractor dispute the correctness of the final account and such dispute not be resolved
within the period [34.3], or such an extended period as the principal agent may allow on a request

34.5
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from the contractor, the final paym ent certificate shall nevertheless be issued [34.5]

The principal agent shall issue the final payment certificate within seven (7) calendar days to the
contractor [34.3-4]. Notwithstanding the foregoing such final paym ent certificate shall not be issued
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before the issue of the certificate of final completion other than where termination occurs [36.0 or
39.0]

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

34.6.1 The gross amount of the final account, and

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34.6.2 The am ounts previously certified [31.4.1-2]

34.7 W here applicable the following adjustments shall be made to the net amount certified [34.6] and shall
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separately include:

34.7.1 No clause

34.7.2 Amounts due to the employer or contractor in the final recovery statement [33.1] excluding
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interest amounts [34.7.4], and

34.7.3 Tax on the net total of the amounts [34.7.2], and

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34.7.4 Interest amounts included in the final recovery statement [33.1]

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34.8 The principal agent shall certify one hundred per cent (100% ) of the amount of the final account in
the final paym ent certificate

34.9 No clause

34.10 The employer shall pay the contractor the amount certified in the final paym ent certific ate within
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seven (7) calendar days of the date of issue of the final paym ent certificate

34.11 S u b jec t to 25.4 the employer shall pay the contractor compensatory interest on the net am o u n t
certified in the final paym ent certificate. The prin cipal agent shall calculate the compensatory
interest amount due to the contractor at the ruling interest rate compounded monthly from the date
of practical com pletion up to and including the date on which payment is due to the contractor as
stated in the recovery statement [33.0]

34.12 W here the contractor does not receive payment of the amount due in the final paym ent certificate
by the due date [34.10], the employer shall be liable for default interest on such am ount. The interest
Principal Building Agreement Page 26
 shall be calculated from the due date for payment up to and including the date on which the
contracto r receives payment. The am ount due and the interest thereon shall be recoverable by the
contractor from the employer as a debt. Such interest shall be calculated at the rate of one hundred
and sixty per cent (160% ) of the interest

34.13 W here the final paym ent certificate reflec ts an amount in favour of the employer, the contractor
shall pay the am ount certified within twenty-one (21) calendar days of the date of issue o f th e final
paym ent certificate

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34.14 W here such an amount certified [34.10, 13] has not been paid the defaulting party shall be liable for
default interest [34.12]. The amount due and the interest thereon shall be recoverable as a debt

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35.0 PAYMENT TO OTHER PARTIES

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35.1 The principal agent shall issue separate payment certification to other parties w ith copies to the
contractor where the employer:

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35.1.1 Engages other parties to execute work [17.4, 36.5.5]

35.1.2 Elects to pay a n/s subcontractor direct [20.6, 21.6]

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35.2 The employer may recover expense or loss resulting from such payments [33.2]

TERMINATION
36.0 TERMINATION BY EMPLOYER - CONTRACTOR’S DEFAULT
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36.1 The employer may terminate this agreem ent where the contractor:

36.1.1 Fails to comply [3.3, 14.1, 15.1,3]

36.1.2 Refuses to comply with a contract instruction subject to 17.2

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36.2 W h ere the employer considers terminating this agreem ent, the principal agent shall be instructed
to notify the contractor of su c h d efault [36.1]. The issuing of such notice shall be without prejudice
to any rights that the employer may have
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36.3 The employer may give notice of termination should the contractor remain in d efault for ten (10)
working days after the date of receipt of such notice of default
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36.4 No clause

36.5 W here this agreem ent is terminated the following shall apply:
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36.5.1 The employment of the contractor shall be terminated and exec ution of the works shall
cease. The contractor shall vacate the works and the site [36.5.6]. The contractor shall
remain responsible for the works [8.1] until possession is relinquished to the employer
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36.5.2 The principal agent shall forthwith compile a report on the status of the portion of the works
executed by the contractor and shall issue such report to the parties

36.5.3 The principal agent shall timeously commence and complete a final account [34.0]
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36.5.4 The con tra cto r shall not be relieved of any of his liabilities concerning that portion of the
works executed by the contractor

36.5.5 The employer may employ other parties to safeguard the works, complete the outstanding
work and to rectify defects in that portion of the works executed by the contractor. The cost
o f work thus carried out shall be certified by the principal agent and paid direc t to su c h
parties [35.0]

36.5.6 The employer may use the contractor’s m aterials and goods, temporary buildings, plant
and machinery on the site for proceeding with the works
Principal Building Agreement Page 27
 36.5.7 W hen instructed by the principal agent, the contra cto r shall remove from the site his
tem porary build ings, plant, machinery and surplus m aterials and goods within such
reasonable time as determined by the principal agent, in default o f w h ic h th e employer,
without being responsible for any loss or damage, m ay h ave the same removed and sold.
The net profit or loss of such sales shall be for the account of the contractor

36.5.8 W h ere applicable [30.1] the employer shall be entitled to apply the penalty up to the date
of termination and thereafter may recover damages from the contractor including, but not

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limited to, extra costs incurred in the completion of the outstanding work

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36.5.9 W here the current practical com pletion date [30.1] has not occurred th e employer may
recover damages [36.5.8]

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36.5.10 The principal agent shall continue to issue interim paym ent certificates in a nil amount until
th e quantum of damages [36.5.8] has been determined and the final account [36.5.3 ] has
been completed. The final paym ent certificate shall then be issued

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36.5.11 The latent defects liability period shall end [27.2.1]

36.6 The right to terminate may not be exercised where the employer is in material b reach of this
agreem ent

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37.0 TERMINATION BY EMPLOYER - LOSS AND DAMAGE
37.1

37.1.1
The employer may terminate this agreem ent where:
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The completed portion of the works constructed has been substantially destroyed howsoever
caused, or
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37.1.2 The works is for alterations and/or add itio n s to an existing building(s) which has been
substantially destroyed howsoever caused

37.2 W here the employer considers terminating this agreem ent [37.1] the principal agent shall notify the
contractor accordingly
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37.3 W here this agreem ent is terminated the following shall apply:

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

37.3.2 Execution of the works shall cease. The contractor shall remain responsible for the works
[8.1] until possession is relinquished to the employer
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37.3.3 O n relinquishing possession of the works, the contractor shall remove from the s ite his
temporary buildings, plant and machinery without delay
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37.3.4 The principal agent shall forthwith compile a report on the status of the portion of the works
executed by the contractor before the destruction occurred [37.1] including all work executed
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[37.3.1] and shall issue such report to the parties

37.3.5 The principal agent shall timeously commence and complete a final account [34.0]

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

37.3.7 The principal agent shall continue to certify the valu e o f th e w o rk executed and the value
of m aterials and goods for payment until the issue of the final paym ent certificate [31.1]

37.3.8 The latent defects liability period shall end [27.2.2]

37.4 Neither party shall be liable for any expense and loss resulting from this term ination other than the
liabilities [37.3] related hereto
Principal Building Agreement Page 28
 38.0 TERMINATION BY CONTRACTOR - EMPLOYER’S DEFAULT
38.1 The contractor may terminate this agreem ent where:

The employer fails to:

38.1.1 Provide a paym ent guarantee [3.1], or

38.1.2 Appoint a principal agent or agents [5.1-2, 4], or

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38.1.3 Allow the principal agent to exercise his judgement [5.6], or

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38.1.4 Effect special insurances [11.0,12.5], or

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38.1.5 Give possession of the site to the contractor [15.2], or

38.1.6 Pay the amount certified [31.9, 31.16.3, 34.10], or

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The principal agent fails to:

38.1.7 Issue a statement to the contractor [31.13.1], or

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38.1.8 Issue any paym ent certificate [2.1, 15.2.4], or

38.1.9 Issue any completion certificate [2.1, 15.3]

38.2
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W h ere the contractor considers terminating this agreem ent, notice shall be given to the employer
and the principal agent of the default [38.1]. Should such default persist for ten (10) working days
after the date of issue of such notice the contractor may give n o tic e of termination to the employer
and the principal agent. Such termination shall be without prejudice to any rights that the contractor
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may have

38.3 W here default is due to non-performance of the principal agent [38.0] the contractor may take such
actions as are deemed necessary to fulfil the obligations of the principal agent [38.5]

38.4 No clause
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38.5 W here the contractor terminates this agreement the following shall apply:

38.5.1 Execution of the works shall cease. The contractor shall remain responsible for the works
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[8.1] until possession is relinquished to the employer

38.5.2 O n relinquishing possession of the works, the contractor shall remove from the s ite his
temporary buildings, plant and machinery without delay
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38.5.3 The principal agent shall forthwith compile a report on the status of the portion of the works
executed by the contractor and shall issue such report to the parties
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38.5.4 The principal agent shall timeously commence and complete a final account [34.0]

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

38.5.6 The employer shall be liable to the contractor for damages resulting from such termination
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38.5.7 The principal ag e n t sh all continue to certify the value of the work executed and the value
of m aterials and goods for payment by the employer [31.1]

38.5.8 The security [14.3-4] shall expire and be returned by the employer to the contractor

38.5.9 The latent defects liability period shall end [27.2.2]

38.6 The right to terminate may n o t be exercised where the contractor is in material breach of the
agreem ent

Principal Building Agreement Page 29

 39.0 TERMINATION - CESSATION OF THE WORKS
39.1 Either party may terminate this agreem ent on the cessation of the works for a continuous period of
ninety (90) calendar days, or an interm ittent period totalling one hundred and twenty (120) calendar
days, due to circumstances beyond their control. The terminating party shall give notice to the other.
Such termination shall be without prejudice to any rights that either party may have

39.2 No clause

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39.3 W here this agreem ent is terminated the following shall apply:

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39.3.1 The principal agent shall forthwith issue a contract instruction specifying the continuation
of work and protective measures required to bring the works to specific points of cessation.
The contractor may cease work should the contractor be prevented from carrying out such

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contract instruction due to reasons entirely beyond his control

39.3.2 Execution of the works shall cease. The contractor shall remain responsible for the works
[8.1] until possession is relinquished to the employer

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

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39.3.4 The principal agent shall forthwith compile a record of the status of th e w o rk s executed
before the termination and shall issue such record to the parties

39.3.5 The principal agent shall timeously commence and complete a final account [34.0]

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

39.3.7 The prin c ip a l agent shall continue to certify the value of the work executed by the
contractor and the value of m aterials and goods for payment by the employer until a final
paym ent certificate is issued
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39.3.8 T h e s e c u rity [14.0] shall reduce to the value applicable after the issue of the certificate of
practical com pletion

39.3.9 The latent defects liability period shall end [27.2.1]

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39.4 Neither party shall be liable to the other for any expense and loss resulting from this termination
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DISPUTE
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40.0 SETTLEMENT OF DISPUTES

40.1 Should any disagreement arise between the em ployer, including his principal agent or agents, and
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the contractor arising out of or concerning this agreem ent or its term ination, either party may give
notice to the other to resolve such disagreement

40.2 W here such disagreement is not resolved within ten (10) working days of receipt of such notice it
shall be deemed to be a dispute and sh all b e referred by the party which gave such notice to either:
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40.2.1 Adjudication [40.3] where the adjudicatio n sh all be conducted in terms of the edition of the
JBCC Rules for Adjudication current at the time when the dispute was declared, or

40.2.2 Arbitratio n [4 0 .4 ] w h ere the arbitrator is to be appointed by the body selected by the parties
[41.3] whose rules shall apply. W here nobody is stated or where the stated body is unab le
o r u n w illing to act, the appointment shall be made by the chairman for the time being of the
Asso c iation of Arbitrators (Southern Africa). The appropriate rules current at the time when
the dispute is declared shall apply

40.3 W here a dispute is referred to adjudication the following shall apply:

Principal Building Agreement Page 30
 40.3.1 The adjudicator shall be appointed in terms of the Rules [40.2.1]

40.3.2 The adjudicator shall not be eligible for subsequent appointment as the arbitrator

40.3.3 The adjudicator's decision shall be binding on the parties who shall give effect to it without
delay unless and until it is subsequently revised by an arbitrator [40.4]

40.3.4 Should either party be dissatisfied with the decision given by the ad ju d icator, or should no
decision be given within the period set in the Rules, such party m ay give notice of

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dissatisfaction to the other party and to the adjudicator within ten (10) working days of
receipt of the decision or, should no decision be given, within ten (10) working days of expiry

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of the date by which the decision was required to be given th e dissatisfied party shall refer
the dispute to arbitration

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40.4 W here a dispute is referred to arbitration the following shall apply:

40.4.1 The arbitrator shall be appointed at the request of either party by the body stated in 40.2.2

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40.4.2 The arbitration shall be conducted by the arbitrator in accordance with the rules of the body
stated in the contract data

40.4.3 The arbitrator shall have the power to open or revise any certificate, opinion, dec ision,

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req u isition, or notice relating to the dispute as if no such certificate, opinion, decision,
requisition or notice had been issued or given

40.4.4 T h e a rb itra tor's decision shall be binding on the parties who shall give effect to it withou t
delay

40.5
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The above provisions [40.2-4] shall not be construed as a waiver of the parties' entitlement to resolve
a dispute by mediation at any time
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40.6 W here a dispute is submitted to mediation the following shall apply:

40.6.1 The parties shall agree o n an d appoint the m ediator within ten (10) working days of the
date on which the dispute was declared. W hether or not the mediation resolves the dispute,
the parties shall bear their own costs concerning the mediation an d share the costs of the
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m ediator and related costs equally

40.6.2 The m e d iator shall agree the procedures, representation and dates for the mediation
process with the parties. The m ediator may meet the parties together or individually to help
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reach a settlement

40.6.3 W here the p a rtie s reach settlement of the dispute or any part thereof, the m ediator shall
record such agreement an d on signing thereof by the parties the agreement shall be final
and binding
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40.7 Recording of a dispute [40.1] sh all not relieve the parties from liability for the due and timeous
performance of their obligations
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40.8 The employer consents to the joining of any n/s subcontractor with the contractor as a party to any
of the proceedings contem plated in terms of this 40.0
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40.9 The termination of this agreem ent shall not affect the validity of this clause 40.0
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Principal Building Agreement Page 31

 CONTRACT
AGREEMENT
41.0 POSTTENDER
PROVISIONS
41.1 All infoftation providedin lhis seclion r€qulr63consultationwith the p.rlle3 to lh€ agre€ment. Th€
prlnclp.l eg.nl shall not pres€lectany ot lh6 alt€mativesavailabl€lo tt|€ oontrac'aol

41.2 The complot€dCo||llacl Data . Employrr and Conilacl data . Contl.clor addendaand such other

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p€rtinentdocumenb as listed bdow shall form part of lhis agreemont
'rs:

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41-3 The dbpute rcaolutionbody [,().2.4 selectedby the parties

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41.4 Theomployorshallprovide
a PaymontGuannlee(arrourf)

41.5 Anannualbulldlng
industry p€dod15appllcable
holiday *r,,f----l

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41.6 Fudh€rprovbloflsandinformalion4re€d bylhe parli€6:

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Prbcbal Bouhe agt .n.nt Page32

 42.0 CONTRACTUALAGREEMENT
42.1 Thisagreementistheentirecontractbeh,veen thepartiesregarding lhe maltersaddressed herein.No
representations,terms,conditionsofwafianliesnol containedin lhis agreementshallbe bindingon
the parties. No agrcement or addendum varying,addingto, deletingor terminating
thisagreemenl
includingthis clauseshallbe effectiveunlessreducedlo wriiingandsignedby the parties

42.2 ContractingParties

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(1) Employ€r

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Tel E-mail

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(2) Contractor

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Physicaladdress

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Tel E-mail

42.3 Theacceptedcontractsum
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(Amourtinclusiveof tax)
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42.4 parties:
Signalureof the contmcting
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Thusdoneandsignedat

Nameof signatory for and on behalfof the emDlover who bv

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sionaturehereofwarEnts authorisalionheleto

Capacityof signatory
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Thusdoneandsignedat
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Nameof signatory for andon behalfof the contractorwhobv

sionaturehereofwarranisauthorisationhere'io
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Capacityof signatory
as Witness(2)
Detailsof Witness(1) Detailsof Witness(2)

Name:
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JBCCSe es 2000PrincipalBuildingAgreementEdition5.0 Reprint1 Code2101@July2007

Ptincipal Buildhg Agrcanant Page 33

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Principal Building Agreement Page 35

 DELIVERING
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 SCHEDULE OF MODIFICATIONS IN EDITION 5.0

Legend

A Amended A clause has been changed or reworded

D Deleted A clause has been rem oved or designated as “No clause”
N New A clause has been added

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R A clause has been renumbered or renamed
2.1-5, 8 The sequence of clauses from 2.1 to 2.5 and 2.8

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Note: 1 Inconsequential wording, grammar and previous typographical corrections are not listed
2 Reprints of this edition may include further inconsequential corrections that will not be listed

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Table of modifications to definitions listed in clause 1.0:

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A Arbitrator D Lump Sum Document N Priced Document
A Bills of Quantities A Mediator A Principal Agent
D CIDB N N/S Agreement N Program m e
N Contract Data N N/S Subcontractor A Section

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A Contract Documents N Party D State
A Contract Instruction A Payment Certificate A W orking Days
A CPAP A Penalty
A Defect A Practical Completion

Table of modifications to clauses:

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N 1.4 R 10.0 N 15.5-9 A 26.1 D 31.11.1-2 N 38.3
A 1.5.2 R 10.1,4 A 16.0 D 26.1.1-2 A 31.12 A 38.5.4
A 1.5.4 R 11.0 N 16.1 N 27.3 D 31.12.1-2 R 39.0
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D 1.5.6 N 11.1 R 16.2-3 A 29.2.4 A 31.15 A 39.1

A 1.6.1 N 11.1.1-3 N 16.4-9 A 29.3 A 31.16.3 A 39.3.7
D 1.9 N 12.1.1-2 A 17.5 A 29.7 A 32.2.1-2,5 A 40.2-7

A 3.1 N 12.5-6 R 19.0 A 29.7.1-3 A 34.1 R 40.9

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D 3.4 N 13.0 N 19.1-3 R 30.0 A 34.3 D 40.10-11

A 3.6 N 13.1-2 A 20.4-5,7 A 30.1 A 34.5 N 41.0

D 3.6.1-2 A 14.3.1 A 24.1 A 30.2 A 34.13 N 41.1-4

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A 3.10 A 14.4.1 A 24.1.1-2 N 30.2.1-2 R 36.0 N 42.0

R 3.11 A 14.7.1 A 24.1.3 N 30.3 A 36.5.9-10

A 5.1 A 15.1 N 24.8-10 A 31.8.2-3 R 37.0

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N 5.5-6 A 15.1.2-3 N 24.10.1-2 A 31.9 A 37.3.5

N 9.2.11 A 15.3 D 25.3.1-2 A 31.11 R 38.0
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Principal Building Agreement Page 37

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Build the Future.

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Witha pfoudheritage
datingbackto 1952,BasilReadcombines
experlence
w th itsvisionof thefuture

Acrossbuilding,
developments,
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we'reBuilding
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