P. 1
Contract 1

Contract 1

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Published by Umar Khan
Sample of contract document
Sample of contract document

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Published by: Umar Khan on Feb 16, 2013
Copyright:Attribution Non-commercial


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Contractor Contract CONTRACTOR AGREEMENT [Language: Where he or his is used in this Contractor Agreement document text it will also

pertain to she or hers and vice versa. This Agreement concerns equally across gender.] ARTICLES OF AGREEMENT Made the _______________day of _________________________20______ THE PARTIES ENTERING INTO THIS CONTRACTOR AGREEMENT ARE: (hereinafter referred to as "the Owner") (hereinafter referred to as "the Contractor") For reason of delivery of any notice or notification or for payment of any monetary value, and therefore legal proceedings can be instituted, the parties confirm the above detailed addresses as their physical addresses. Change of the physical addresses information will be entitled at any time by one of the parties contacting the other through written notice. Whereas the Owner is desirous of constructing a ________________________ _______________________________________________________________ (hereinafter referred to as "the Works") Which will be constructed at the following address ______________________ _______________________________________________________________ _______________________________________________________________ (hereinafter referred to as "the Property") The _________________________________ will be constructed in accordance with the plans, drawings and specifications occupied hereto, and signed by the parties: In addition the Contractor has agreed to implement and undertake the said Works on the said Property in agreement with the plans, drawings and specifications occupied and relating to this Contractor Agreement, which is signed by the parties. THIS AGREEMENT IS ENTERED INTO BY THE PATRIES WHO WILL BE BOUND BY THE FOLLOWING TERMS AND CONDITIONS: 1. For the attention hereinafter stated, the Works will be implemented and undertaken by the Contractor in agreement with the plans, drawings and the specifications and the terms and conditions occupied and relating to this document. 1.1. The sum of __________________ will be paid by the Owner to the Contractor

drawings and specifications without obtaining the receipt of prior written consent from the other party. Interest at the rate of 2%. and 3. The residual 10% on reception of contract. should be undertaken and obtained by The Contractor. 3. the Owner. Furthermore it is agreed that there will be no additional accompaniments. as specified in this document. In agreement with the requirements set out hereunder.1. 40% on supply of all material and onset of work 3. Building Society.1. drawings or specifications that involves the Contractor in an additional expense. thus the Contractor shall accordingly indemnify the Owner. alternatives or variants to the said final plans. any discounts or concessions in terms of this Contractor Agreement will be forfeited. labour and / or manufacturers assurance warranty and/or guarantee. The acquirement of the necessary approval and consent from the local authority or any other relevant statutory body concerned for the Works. Furthermore. the Local Authority.1. at any time. thus they form an essential part of this Agreement. The Owner will be harmless with regard to any violations. The instalments of the Contract Sum will be met as follows: 3.(hereinafter denoted as the "Contract Sum") In this Contractor Agreement it is agreed that any plans. If for any reason. to enable the Contractor to obtain payment as per the agreed timetable set out in section 3. . the said interest shall accrue from stipulated due date for payment. It is agreed that The Owner certifies that he has registered ownership of the Property.1. shall be accrued if any instalment is not paid on the due date. the Contractor shall be permitted to collect progress payments as the Works advance: 3. drawings and specifications of the Works. adaptations or amendments shall be endured and funded by the Owner.2. then the outlay of fulfilling with such modifications.1. 50% within seven days of the Works completion. during or after the construction of the Works.1 of this document.3. adaptation or amendment to the said plans. The Owner shall be responsible for signing all the necessary and relevant documentation when the Contract Sum is to be paid on the Owner's behalf by a finance company. Bank or other financial institution. drawings and specifications mentioned in this document are the final plans. Mortgager or any other relevant statutory requires any modification. greater than the lowest lending rate charged by commercial banks to their customers. whether before. The Contractor shall be informed by the Owner in writing in the event of the property not being registered in the name of the Owner.

and / or 4. If any act.1.1. water and sanitation on the Property and free of charge.3. The Contractor obtains the compulsory sanction. then the date of completion shall be extended by _______________ days. lock out. as generated during the construction. where applicable. the Contractor will not be liable for damages or otherwise and the Owner shall not for such reason have any claim against the Contractor 4.4. exceptionally extreme weather or any adaptation. act or oversight on the part of the Owner or any other reason outside of the Contractor's jurisdiction. including but not restricted to any shortages or deficiencies in materials.3.1. for the determinations of this Contractor Agreement.1.1. strike action. political or civil disturbance or riots. a rational and reasonable extension to the original schedule of works shall be granted to the Contractor. decree.1. other forms of finance have been permitted appropriate and the mortgage bond. and/or 4. the date of completion shall be the date on which the Works are finished and all building debris.3. there is availability of the mandatory facilities including electricity.1. ordinance.2. or oversight on the part of the Owner prevents the Contractor commencing or proceeding with the implementation of the Works then. then: 4. has been legally registered. If the seasonal holiday period of the Building Industry coincides with the completion phase. estimated from the date of possession.2.COMMENCEMENT AND COMPLETION: shall be given The Contractor shall complete the Works within ___________________ weeks. in such event: 4. by-law and regulation).1 in the event of the Contractor not being able to deliver the materials and commence the Works. Excluding where specifically stated otherwise. consent or other authority approval required under any law (including any statute. If the Works completion is delayed as a result of unforeseen circumstances. the Owner shall conform with Clause 3. or .1. 4. The Works cannot be commenced by the Contractor until: 4. has been removed from the Property. amendment.

2. under no circumstances be responsible for loss or damage caused by general wear and tear. The Contractor shall indemnify against all risks and hazards to 100% of the insurable . the Contractor undertakes the following: Any patent deficiency or other errors. and the Contractor shall. as liquidated and ascertained damages. Additionally any unfixed excess materials remain the property of the Contractor. the Owner shall conform with Clause 3. Subject to the requirements of the proceeding paragraph. shall within a rational time after delivery of the Owner's written instruction be amended by the Contractor and. until the Works have been completed. as per the terms of clause 3. unless it is agreed that the said damage is owing to injury which took place before completion. be the responsibility of the Contractor. which may appear within 24 months following the completion of the Works.2. habitual shrinking or geological instabilities will not. the insurance against Public Liability on or about the works will remain the responsibility of the Contractor. negligence. Any faults or defects triggered by sub-surface water. neglect. as detailed in Clause 4. mistreatment or accident.1. misappropriation. provided that the Contractor is not in contravention with his obligations in terms of this Contractor Agreement. the said materials will remain the property of the Contractor until payment by the Owner is complete.4. If during the period stipulated in the foregoing sub-clause or any extended period sanctioned in writing by the Owner. From the date of commencement. OWNERSHIP OF MATERIALS: 6. In the event that the Contractor is unable to complete the Works. The Contractor shall not be liable for loss or damage in respect of or occurring from any risk insured against the terms of home owner's insurance policies.4. The Contractor shall possess any unfixed materials that are delivered to the Property and required for the construction of the Works under this Contractor Agreement. the Contractor fails to complete the Works. for the period within which the said Works remains incomplete. provided that any damage after completion shall not be required to make good at the Contractors cost. any such damages may be deducted from the monies due to the Contractor by the Owner. unless otherwise agreed upon by both parties. typically dispensed by a reliable insurance company in respect of residential properties and any consequent loss or damage will not be the responsibility of the Contractor. The Contractor shall only be responsible for damages sustained by the Owner under conditions of normal use and service in terms of the preceding paragraph. at the Contractors own cost. The Contractor categorically guarantees assurance that Workman’s Compensation is paid up and complied with. under any circumstances. 7. settlement occurring in the ground below. then the Contractor shall pay the Owner the penalty amount of ___________ per day. due to materials or workmanship not in accordance with this Contract.

if the Owner's estate's conditionally sequestrated or provisionally wound up as insolvent. or be hindered or obstructed by the Owner either personally or through his agent. 9. determine the Agreement. or beyond that rationally considered by or provided for in this Contractor Agreement. or is defaulting in any other way. as proof of any amount owed to the Contractor in terms of this Agreement. sub-contractors.worth of the Works. suffer interference. cease work under this agreement if the Owner does not pay the Contractor. Any expense or loss incurred by the Contractor. CONTRACTOR'S DEFAULT: 10. of his intentions to terminate the Contractor Agreement if the default as detailed in clause 9 should continue for 14 days or more. summary judgment or provisional sentence against the Owner in any Court of Law which has jurisdiction in respect thereof. then the Contractor shall receive payment of a liquidated and established pre-estimate of compensations in the amount of 20% of the Contract Sum. exclusive of prejudice to any additional rights which the Contractor may have in terms of this Agreement or in law. The Contractor shall be permitted to give the Owner 7 days written notification. as detailed in Clause 3.4 or Clause 8. until the said default has been resolved or the Owner has made payment. Workmen. the Contractor may. provided that the above necessities shall in no way impede any other right or solution that the Contractor may have in law. shall be assessed and a value decided upon by the Owner and the Contractor and the said value shall be paid to the Contractor by the Owner on completion of the Works. In addition to a cease of Works in terms of this Clause. for the reasons of attaining judgment whether by default or otherwise. due to the actions on the part of the Owner. The period that the Works cease shall operate as an extension of the time stipulated for completion of the Works. 8. after providing 7 days written notice. The Contractor may use a Certificate signed by the Contractor's Auditor stipulating the sum due by the Owner to the Contractor. A performance bond will be issued by the Contractor in favour of the Owner to pay for losses or damages in the event of the Contractor defaulting. Should this Contractor Agreement be determined by the Owner defaulting. or should the Owner commit a violation of any of the terms of this Contractor Agreement. The Contractor is seen to be defaulting in any of the subsequent respects if he undertakes the following: . all of which terms shall be material. forthwith. by registered/recorded post. as per Clause 4. or other Works personnel employed by or acting on behalf of the Contractor shall not be issued instructions. The Contractor shall be entitled to.

suspends the Works before completion without rational or reasonable cause. 10. worker's compensation and withholding of tax for Contractor's employees. . Both parties hereby explicitly consent to the jurisdiction of the Local Court albeit such entitlement may otherwise surpass that specific Court's jurisdiction to arbitrate on any disagreement occurring out of this Contractor Agreement. or 10. refuses to proceed with the Works with competency and conscientiousness. The valuation adjustment shall be assessed on the basis of other valuations of similar work detailed under this Contractor Agreement. exclusive of prejudice to any other rights he may have in terms of this Contractor Agreement or in law. these variations shall be carried out and the Contract Sum shall be adjusted accordingly. This is subject to the prearrangement that a party will be entitled to introduce action in a Higher Court. by written and registered notification determine the employment of the Contractor under this Agreement if the Contractor's estate is appropriated as insolvent or if. 12. by registered/recorded post.1.3. Confirmation of the amended Contract Sum must be agreed on by both parties and sanctioned in writing. unavailable. the Owner may. 13. being a company.10.4. or 10. then the Owner shall be responsible for choosing substitute materials of a similar quality from an array of comparable materials which the Contractor deems readily procurable. determine the employment of the Contractor under this Agreement. The Contractor shall hold the Owner harmless and thereby indemnify the Owner for any claims involving but not restricted to liability insurance. which is not otherwise subject to arbitration in terms hereof. If the Contractor and the Owner have any form dispute or disagreement resulting from and/or during the currency of the Agreement. exclusive of prejudice to any additional rights covered herein. if after receiving written notification from the owner. In such event all damages incurred by the Owner by reason of the said default will be the responsibility of the Contractor. If any of the materials agreed upon and detailed in the said Specification are. the said dispute or disagreement shall be referred to arbitration. the Contractor persists in refusing to eliminate faulty or substandard areas of work or inappropriate materials. and the said default continues for more than 14 days then.2. rather the Contractor is working in his faculty as an independent contractor. in short supply or undeliverable in accordance with the Works deadlines. The Owner may. 15. MATERIALS IN SHORT SUPPLY: 11. 14. it is retained under voluntary or obligatory liquidation. The Owner does not have employer status where the Contractor is concerned. The Owner may require and authorise variations. providing no disagreement has been professed in terms of Clause 14. The arbitrator can be assigned by either one of the parties through the relevant Association having jurisdiction in the area. or upon termination or cancellation thereof.

the Owner and the Contractor. 18. and signed by both parties. No waiver of any right under this agreement or no variation. 18. Cancellation within this time period will incur no penalties whatsoever. 18. No reduction by either party of any of its rights in terms of this agreement during in any period shall prejudice or be a relinquishment of its rights (unless it is a waiver in writing) and it shall be authorised to practice its rights henceforth as if such reduction had not taken place. Signed at __________________on this _________day of________________20____ SIGNATURE _____________________________(Owner) WITNESS 1: _____________________________ WITNESS 2: _____________________________ SIGNATURE _____________________________(Contractor) Contractor's Legal Name: WITNESS 1: _____________________________ WITNESS 2: _____________________________ . 17.16. 18. No party may relinquish any of its rights or assign any of its responsibilities in terms of this Contractor Agreement without the prior consent of the other parties in writing.2.1.1. In writing. When they are due the immediate provision of receipt of payments. 18. Written cancellation must be delivered to the other party at their physical stated address. the Owner and the Contractor.1.2. deletion or cancellation to or of this agreement shall be effective or valid unless it is: 18. The Contractor or the Owner have the right to cancel this Contract agreement within 72 hours (3 days) of signing it. agreed to by both parties. This document and any attached appendices comprise the sole and absolute Contractor Agreement between the Owner and the Contractor with regard to the subject matter hereof and the parties waive the right to rely on any assumed direct provision not covered herein. addition.3. lien releases and final lien releases from all subcontractors and suppliers must be provided by the Contractor directly.

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