CONDITIONS OF CONTRACT

1.00 DEFINITIONS

Definitions of words used in this contract are set out below

1.01 Acceptance of tender

means the signing of the contract by the employer which brings this contract into force

1.02 Builder

means the person, partnership, company, close corporation, community of builders or other legal body that contract to build the works and is so identified in the schedule

1.03 Certificate of final completion

means the certificate to be issued by the principal agent when the works have been fully completed in terms of clause 1.11 hereof

1.04 Certificate of practical completion

means the certificate to be issued by the principal agent when, in his opinion, the works have reached the stage of practical completion in terms of clause 1.17 hereof

1.05 Contract documents

means this contract document, preliminaries, drawings, specifications, bills of quantities or schedule of materials; also any documents annexed to the contract documents by agreement between the parties

1.06 Contract guarantee

means the guarantee in the exact words of the guarantee form as provided with this document and to be provided by one or more guarantors on behalf of the builder. This guarantee is to provide for the guarantor(s) to be responsible to finish the contract and/or for payment of the employer of an amount of up to a maximum of 10% (ten percent) of the contract sum, in the event that the builder does not complete the works

1.07Contract sum

means the amount entered on page 3 of this document

1.08 Days

means calendar days (that is actual days including Saturdays, Sundays, public holidays and builders' holidays, etc)

CONDITIONS OF CONTRACT (CONTINUED)

1.09 Employer

means the person, partnership, company, close corporation, community body or other legal body so defined in the schedule

1.10 Final account

means the amount to be paid to the builder in terms of clause 10.00 hereof

1.11 Final completion

means the completion of all work in this contract including rectification of all defective and incomplete work to the reasonable satisfaction of the principal agent

1.12 Notice in writing

means a written notice delivered by either party to the other, together with reasonable proof of the date of delivery

1.13 Payment

means payment by the employer to the builder of the amount(s) so certified by the principal agent within 10 days of the issuing of the payment certificate

1.14 Payment certificate

means a certificate issued by the principal agent entitling the builder to payment by the employer for work done and materials on site

1.15 Penalty

means the amount to be paid by the builder to the employer for each day the works are finished late due to the builder's default at the amount Per day stated in the schedule

1.16 Period of liability for defects

means the period commencing on the date of issue of the certificate of practical completion and ending on the 10th day thereafter

1.17 Practical completion

means that stage of completion when the works are, in the opinion of the principal agent, completed sufficiently for it to be properly used for the purpose for which it was constructed

1.18 Principal agent

means the person stated in the schedule or his nominee who will inspect the works and perform the other duties so provided for in this contract

1 .19 Site

means the place where the works are to be constructed. The builder is to build the works only on the land so defined in the contract documents

1.20 Specialist builders

means those other builders directly paid by the employer to do work on the site and not forming part of this contract

1.21 Tender closing date and time

means the date and time of day on that date when the employer will open tenders for the works

1.22 Variations

means changes to the works that the principal agent issues to the builder as instructions in writing. Should the builder do extra work not described in a written instruction from the principal agent, such work will not be paid for by the employer

1.23 Works

means the construction which is to be done by the builder in terms of this contract and as set out in the contract documents

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+ site created on : 19 May, 1997 + site updated on : 28 Sep, 2011 +