THE JOINT BUILDING CONTRACTS COMMITTEE

JBCC SERIES 2000

MINOR WORKS AGREEMENT

PROJECT

EMPLOYER

CONTRACTOR

CONTRACT DATE FILE CODE

Prepared by the JOINT BUILDING CONTRACTS COMMITTEE

RECOMMENDED BY THE JBCC CONSTITUENTS

Association of South African Quantity Surveyors
Building Industries Federation South Africa
South African Association of Consulting Engineers
South African Institute of Architects
South African Property Owners Association
Specialist Engineering Contractors Committee

CODE 2108 © JULY 1999

EXPLANATORY NOTES

JBCC has designed this agreement for use when:

 Minor works of simple content are to be carried out for an agreed lump sum.
 The employer appoints only one agent to administer the contract.

And considers it suitable for use where:

 The contractor is a small to medium enterprise.

 The employer carries the major liabilities related to the works.
 The employer is responsible for taking out construction risk and public liability insurances for the protection
of both parties.

This agreement is not designed and is not intended for use where:

 Full bills of quantities have been prepared for the works.

 The employer wishes to use nominated or selected subcontractors.
 Contract price adjustment provisions are required.

And is not considered suitable where:

 The works are of a complex nature.

 The contract value is estimated to exceed R 1 000 000.
 The construction period is anticipated to be more than nine months.
 The necessary working drawings are not complete and available at tender stage.

How the document is structured

 The Agreement is made up of eight sections starting with the definitions of all the primary elements and
phrases that regularly occur in the document. All definitions that are common to the Principal Building
Agreement and N/S Subcontract Agreement retain the wording used in those documents as far as doing so
is practical.

 The next sections are ordered as closely as possible to the project execution sequence. The final section is
a schedule of all the variables required to complete the agreement.

 It should be noted that although this Minor Works Agreement is part of the JBCC Series 2000 documents it
has been formulated for use specifically with its own supplementary documents. Documentation designed
for the Principal Building Agreement and N/S Subcontract Agreement is not suitable and should not be
used.

This page does not form part of the Minor Works Agreement
 Page ii
TABLE OF CONTENTS

Section Clause Description Page

DEFINITIONS 1.0 Definitions and Interpretations 1

PREPARATION 2.0 Security and Guarantees 3

3.0 Risk and Insurance 3
4.0 Documents, Design and Assignment 4

EXECUTION 5.0 Employer 5

6.0 Agent 5
7.0 Contractor 6
8.0 Direct Contractors 7

COMPLETION 9.0 Practical Completion 7

10.0 Final Completion 8
11.0 Extension of the Construction Period 8
12.0 Penalty for Non-completion 9

PAYMENT 13.0 Valuation and Payment to Contractor 9

14.0 Adjustment to the Contract Value 11

CANCELLATION 15.0 Cancellation by Employer 12

16.0 Cancellation by Contractor 13
17.0 Cancellation – Impossibility of Performance 13

DISPUTES 18.0 Settlement of Disputes 14

SCHEDULE 19.0 Schedule of Variables 15

20.0 Acceptance by the Contracting Parties 17

This page does not form part of the Minor Works Agreement
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MINOR WORKS AGREEMENT

DEFINITIONS

1.0 DEFINITIONS AND INTERPRETATIONS

1.1 Where words and phrases are highlighted in the text of this document they shall bear the meaning
assigned to them in this 1.1 and where such words and phrases are not highlighted they shall bear the
meaning consistent with the context.

“AGENT” means the person or entity named in the schedule. The employer warrants that the agent
has full authority and obligation to act in terms of this agreement.

“AGREEMENT” means this JBCC Minor Works Agreement and other documents in terms of 4.1,
which together form the contract between the employer and the contractor.

“CALENDAR DAYS” means consecutive twenty-four (24) hour days commencing at midnight.(00:00)
which include working and non-working days.

“CONSTRUCTION PERIOD” means the period commencing on the date of site handover to the
contractor as stated in the schedule and ending on the date of practical completion.

“CONTRACTOR” means the party contracting with the employer for the execution of the works and
named in the schedule.

“CONTRACT INSTRUCTION” means a written instruction signed and issued by the agent to the
contractor.

“CONTRACT MINUTES” means a comprehensive set of minutes prepared by the agent in which he
progressively records all the pertinent contractual information that arises at the meetings held in terms
of 6.1.4.

“CONTRACT SUM” means either the accepted tender or negotiated amount inclusive of VAT as
stated in the schedule which is not subject to adjustment.

“CONTRACT VALUE” means a monetary value which is subject to adjustment and initially is equal to
the contract sum.

“DEFECT” means any aspect of the works which, in the opinion of the agent, is not according to this
agreement and, without limiting the generality of the foregoing, includes an imperfection that impairs
the structure, composition or function of any aspect of the works.

“DIRECT CONTRACTOR” means a contractor employed by the employer to do a specialist aspect of

work for which the contractor is not responsible.

“EMPLOYER” means the party contracting with the contractor for the execution of the works and
named in the schedule.

“EMPLOYER ALLOWANCES” means contingency and other budget allowances included in the
contract sum.

“FINAL COMPLETION” means the state of completion where, in the opinion of the agent, the works
are free of all defects or, where a defects list has been issued in terms of 10.0, the work on such a list
has been satisfactorily completed.

“INTEREST” means one hundred and fifty per cent (150%) of the prime overdraft rate as applied by
the employer’s bank.

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 “JBCC” means the Joint Building Contracts Committee.

“LATENT DEFECT” means a defect which a reasonable inspection of the works in terms of 9.0 and
10.0 by the agent would not have revealed before the issue of the defects list.

“MATERIALS AND GOODS” means materials and goods delivered to the contractor for inclusion of
the works stored on the site but not yet part of the works.

“PAYMENT CERTIFICATE” means a document issued by the agent certifying the amount due and
payable by the employer to the contractor or vice versa.

“PENALTY” means a sum of money as stated in the schedule payable by the contractor for each
calendar day that practical completion occurs after the practical completion date determined in
terms of the agreement.

“PRACTICAL COMPLETION” means the state of completion where, in the opinion of the agent,
completion of the works has substantially been reached and can effectively be used for the purposes
intended and where the work on the practical completion list has been completed.

“PRIME COST AMOUNT” (PC Amount) means an amount included in the contract sum for the
delivered cost of materials and goods obtained from a supplier in terms of a contract instruction
issued by the agent.

“RETENTION” means the security selected by the contractor as a payment reduction from the value
certified in a payment certificate.

“SCHEDULE” means the variables in this document listed in 19.0.

“SECURITY” means the option selected for the due fulfilment of the contractor’s liability in terms of
this agreement as stated in the schedule.

“SITE” means the land or place as stated in the schedule on which the contractor is to carry out the
works.

“TENDER” means the completed JBCC Form of Tender submitted by the tenderer and accepted by
the employer.

“VAT” means the statutory tax applicable by law to the execution of this contract.

“WORKING DAYS” means twenty-four (24) hour days commencing at midnight (00:00) which
excludes Saturdays and Sundays, statutory holidays and any annual building holiday period stated in
the schedule.

“WORKS” means the works and temporary works detailed in the contract documents and ordered in
contract instructions. In 3.0 works shall further include materials and goods and those supplied
free or otherwise by the employer to the contractor.

1.2 The employer and the contractor choose their respective physical addresses as stated in the
schedule where notices or processes arising out of this agreement may be validly delivered to and
served on them. Each party must notify the other of any changes of address, provided such new
address is in the same country as that initially chosen.

1.3 In this document, unless inconsistent with the context:

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

1.3.2 The words “accept”, “appoint”, “approve”, “certification”, “certify”, “notice”, “notification”,
“notify”, “instruct”, “instruction”, “issue” and “request” shall indicate an act to be carried out in
writing.

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1.3.3 The masculine gender includes the feminine and neuter genders and vice versa, the singular
includes the plural and vice versa, and persons include corporate bodies.

1.3.4 The VAT exclusive method shall apply to all monetary amounts.

1.4 Any notice given in terms of this agreement shall be in writing and may be delivered by hand or sent
by registered post, telefax or e-mail.

1.5 No agreement or addendum varying, adding to, deleting from, or cancelling this agreement shall be
effective unless reduced to writing and signed by the parties.

1.6 The agent shall identify in detail to the contractor any changes made to the provisions of the JBCC
Minor Works Agreement in the schedule.

1.7 The only law applicable to this agreement shall be of the country stated in the schedule.

PREPARATION

2.0 SECURITY AND GUARANTEES

2.1 The contractor shall have the right to select the security to be provided in terms of 2.2 or 2.3. The
contractor shall state the choice of security in his tender, failing which he shall be deemed to have
selected the security in terms of 2.3.

2.2 Where security as the JBCC Minor Works Guarantee has been selected:

2.2.1 The contractor shall provide the guarantee to the employer within twenty-one (21) calendar
days of acceptance of the tender. Such guarantee shall be issued by a guarantor to the
reasonable approval of the employer.

2.2.2 The employer shall return the guarantee to the contractor within fourteen (14) calendar
days of it expiring.

2.3 Where security as retention has been selected the agent shall deduct such retention in terms of
13.9.

2.4 Should the contractor fail to provide the security in terms of 2.2 the employer, in his sole discretion,
shall either:

2.4.1 Apply the security provision in terms of 2.3.

2.4.2 Cancel this agreement in terms of 15.0 where the site has not been handed over.

2.5 The employer shall provide a JBCC Payment Guarantee to the contractor for the due fulfilment of his
liability in terms of this agreement within fourteen (14) calendar days of his acceptance of the tender.
Such guarantee shall be issued by a guarantor to the reasonable approval of the contractor.

2.6 The contractor shall provide a JBCC Waiver of Lien to the employer on receipt of the JBCC
Payment Guarantee.

3.0 RISK AND INSURANCE

3.1 The employer indemnifies the contractor against any loss in respect of claims from other parties
arising out of or due to the execution of the works or occupation of the site by the contractor
consequent upon:

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3.1.1 Death or bodily injury or illness of any person.

3.1.2 Physical loss and damage to any property other than the works.

3.1.3 Removal of or interference with lateral support of an adjoining property.

3.2 The employer shall in all circumstances be at risk for:

3.2.1 The cost of making good physical loss and repairing damage to the works, including existing
buildings and the contents thereof.

3.2.2 The support of structures being altered or added to.

3.3 The contractor shall in all circumstances be at risk for loss of, or damage to his construction plant or
vehicles.

3.4 The employer shall take out:

3.4.1 Public liability insurance to insure the interests of both parties for the amount stated in the
schedule.

3.4.2 Contract works insurance which shall be in the joint names of the employer and the
contractor for the amount stated in the schedule. Where applicable such amount shall
include existing buildings and their contents.

3.4.3 Sufficient insurance to cover the interests of both parties where lateral support of an adjoining
property is required in terms of 3.1.3.

3.5 The insurances are to remain in force from the date of site handover until the date of final
completion.

3.6 Where the cost of making good loss or damage to the works or the existing buildings and their
contents exceeds the amount recoverable under the insurance taken out in terms of 3.4 the
contractor shall not be liable for any cost greater than such an amount.

3.7 The contractor shall take out insurances in respect of his employees as are required by law.

3.8 The party responsible for taking out insurances in terms of 3.4 or 3.7 shall provide documentary
evidence that such insurances are in force to the party before site handover.

4.0 DOCUMENTS, DESIGN AND ASSIGNMENT

4.1 This agreement includes the drawings and other documents issued at tender stage as stated in the
schedule, the tender and the employer’s acceptance thereof.

4.2 This agreement applies and comes into force on acceptance in writing of the tender by the employer.

4.3 The agent shall complete the schedule and arrange for the formal signing of this agreement once the
parties have provided and taken out the security, insurances and payment guarantee. The parties
have not required formal signatures to render this agreement valid.

4.4 The parties shall sign, in original, the number of sets of contract documents required by the parties.
The agent shall hold a signed set of contract documents to be produced as and when required by the
parties.

4.5 The employer shall furnish the contractor without any charge with one (1) set of the signed contract
documents and as many copies of drawings and/or specifications and such additional drawings as are
reasonably necessary for the carrying out of the works.

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4.6 The contractor shall keep one (1) copy of all drawings and all contract instructions and contract
minutes at the site to which the agent shall have access at all reasonable times.

4.7 The agent shall correct any errors in the contract documents in terms of 6.2.2. Where applicable the
agent shall treat such correction as an adjustment in terms of 14.0.

4.8 The contractor shall not be responsible for the design of the works.

4.9 Neither the employer nor the contractor shall assign this contract without the written consent of the
other.

EXECUTION

5.0 EMPLOYER

5.1 The employer shall:

5.1.1 Provide the contractor with a JBCC Payment Guarantee in terms of 2.5.

5.1.2 Take out the necessary insurances in terms of 3.4.

5.1.3 Handover the site to the contractor by the date stated in the schedule. The construction
period and latent defects liability period shall commence with the handover of the site.

5.1.4 Arrange for the boundary pegs or beacons identifying the site and datum level to be pointed
out to the contractor at the handover of the site.

5.1.5 Arrange for water, sewer and electrical connections as required and pay all fees concerning
this.

5.1.6 Provide water and electricity as required for the execution of the works free of charge.

5.1.7 Make payment to the contractor in terms of 13.0.

5.1.8 At his own cost, appoint the agent and in case of the agent’s inability to act, or ceasing to be
the agent, another agent to the reasonable approval of the contractor.

5.1.9 Not issue instructions to, interfere with, hinder or obstruct any of the contractor’s workers or
any persons employed or acting on behalf of the contractor.

5.1.10 Not interfere with or prevent the agent from exercising his independent judgement regarding
the discharging of his duty to the prejudice of the contractor.

5.2 The employer may employ a direct contractor to rectify the default by the contractor in terms of 6.3
and recover expenses and loss resulting from such action in terms of 13.7.1.

6.0 AGENT

6.1 The agent shall:

6.1.1 Administer the contract, monitor the progress of the works and carry out the duties assigned
to him in terms of this agreement.

6.1.2 Define on drawings the levels and co-ordinates and any other information required by the
contractor which is required for setting out and the execution of the works.

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6.1.3 Hold regular meetings with the contractor to inspect and co-ordinate the progress of the
works.

6.1.4 At the periods stated in the schedule, record all the actions taken by the parties including
discussions held, progress of the works, contract instructions and drawings issued and
claims and decisions regarding delays and payment in the contract minutes. Such contract
minutes shall be issued to the employer and the contractor for action. The contract
minutes shall be tabled for approval at the following meeting.

6.1.5 Issue payment certificates and completion certificates in terms of the agreement.

6.1.6 Adjust the contract value in terms of 14.0.

6.2 The agent may issue contract instructions to the contractor regarding:

6.2.1 Alteration to design, quality or quantity of the works where such contract instructions do
not substantially change the scope of the works.

6.2.2 Rectification of discrepancies, errors in description or omissions in contract documents.

6.2.3 Removal of any materials and goods from the site and the substitution of any other
materials and goods therefor.

6.2.4 Removal or re-execution of any work.

6.2.5 Opening up of work for inspection and the testing of work and materials and goods.

6.2.6 Protection of the works.

6.2.7 Making good physical loss and repairing damage to the works in terms of 3.2.

6.2.8 Removal from the site of any person not engaged on or not connected with the works.

6.2.9 Prime cost amounts and the purchase of materials and goods covered thereby.

6.2.10 The use of employer allowances.

6.2.11 Work by direct contractors in terms of 8.0.

6.2.12 The lists for practical completion, final completion and defects.

6.3 The agent may notify the contractor to proceed within five (5) working days of receipt of such notice
should the contractor fail to proceed with a contract instruction. On default by the contractor the
employer may act in terms of 5.2

7.0 CONTRACTOR
7.1 The contractor shall:

7.1.1 Submit the security in terms of 2.2 and a JBCC Waiver of Lien in terms of 2.6 to the agent.

7.1.2 Provide adequate supervision and management of the works.

7.1.3 Provide toilet facilities for use by his workers except where provided by the employer.

7.1.4 Submit all local authority notices required by the works.

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7.1.5 Comply with all statutes, regulations and bylaws of local authorities having jurisdiction
regarding the execution of the works and obtain all certificates and other documents required
by such authorities.

7.1.6 Notify the agent where compliance with any statute, regulation or bylaw requires a change or
variation to the works upon which such change shall be deemed to be a contract
instruction.

7.1.7 Preserve the boundary pegs, beacons and datum pegs and should they become disturbed
have them replaced at his own expense to the satisfaction of the agent.

7.1.8 Immediately begin the works and continue at a rate of progress satisfactory to the agent in
terms of the agreement.

7.1.9 Comply with all contract instructions in good time.

7.1.10 Bring the works, within the construction period, to practical completion in terms of 9.0.

7.1.11 Bring the works to final completion in terms of 10.0.

8.0 DIRECT CONTRACTORS

8.1 The agent shall describe the type, extent and estimated value of work or installation to be undertaken
by a direct contractor in the schedule.

8.2 The contractor shall make reasonable allowance in his construction programme for such work or
installation.

8.3 On instruction of the agent the contractor shall allow such work to be carried out and installed in the
works.

8.4 A direct contractor shall be subject to reasonable controls as required by the contractor.

8.5 The contractor shall not be responsible for the performance of the direct contractor nor for risks
associated with his work or installation.

COMPLETION

9.0 PRACTICAL COMPLETION

9.1 The agent shall inspect the works from time to time to give the contractor interpretations and
guidance on the standard and state of completion of the works which he will require the contractor to
achieve for practical completion.

9.2 The contractor shall give the agent reasonable notice of the date on which he expects to achieve
practical completion.

9.3 The agent shall inspect the works on or before the date requested by the contractor. Where the
works:

9.3.1 Has reached practical completion the agent shall at once issue a certificate of practical
completion to the contractor.

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9.3.2 Has not reached practical completion the agent shall issue a practical completion list to
the contractor detailing the outstanding work to be done and defects to be rectified to
achieve practical completion.

9.3.3 Is not ready for a practical completion inspection the agent shall issue a list as a general
guide to the contractor of the outstanding areas of work and defects to be attended to
before he can request a further inspection.

9.4 Where practical completion has not been achieved in terms of 9.3.2 or 9.3.3 the contractor shall
continue with the works and may only request a further inspection once he has addressed the agent’s
requirements.

9.5 The agent shall make further practical completion inspections until the contractor achieves
practical completion in terms of 9.3.1.

9.6 When the contractor achieves practical completion the employer shall be entitled to possession of
the works and the site provided the employer is not in breach of a material term of this agreement.

10.0 FINAL COMPLETION

10.1 Within seven (7) calendar days of practical completion the agent shall prepare and issue to the
contractor a final completion list detailing the incomplete work and defects to be rectified within a
reasonable period.

10.2 The defects liability period of ninety (90) calendar days shall start on the date of practical
completion.

10.3 On the expiry of the defects liability period the agent shall immediately inspect the works for final
completion. Where the works:

10.3.1 Has reached final completion the agent shall at once issue a certificate of final completion
to the contractor.

10.3.2 Has not reached final completion the agent shall issue a defects list to the contractor
detailing any incomplete work and defects to be rectified before the agent will undertake a
further inspection.

10.4 Where the contractor has achieved final completion the latent defects liability period shall end five
(5) years from the date of final completion.

11.0 EXTENSION OF THE CONSTRUCTION PERIOD

11.1 On the contractor becoming aware of a delay caused by a condition, event or activity beyond his
control for which he believes he is entitled to a revision of the date for practical completion, the
contractor shall report the delay and the working days claimed to the agent at the next meeting held
in terms of 6.1.3.

11.2 The agent shall record the details of the delay in the contract minutes.

11.3 In considering the contractor’s claim the agent shall make allowance for any holidays recognised in
the building industry.

11.4 At intervals no greater than ten (10) working days the agent shall grant, reduce or refuse each
extension claimed and determine the revised date for practical completion accordingly.

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11.5 Where additional time is granted the agent shall also determine whether the contractor is entitled to
additional payment in terms of 14.8.2. The contractor shall be entitled to additional payment due to a
delay caused by:

11.5.1 The late handing over the site to the contractor.

11.5.2 Repairing damage to the works.

11.5.3 Contract instructions excluding those related to the contractor’s default.

11.5.4 Default by the agent or the employer.

11.5.5 A water or electricity supply or sewerage connection not being available.

11.5.6 Direct contractors appointed in terms of 8.0.

11.6 Where the contractor disputes a decision made in terms of 11.4 or 11.5 the agent shall give reasons
for his decision on both additional time and payment and shall record in the contract minutes such
reasons and the effect on the construction period and contract value.

12.0 PENALTY FOR NON-COMPLETION

12.1 Where practical completion is not reached by the date stated in the schedule or by the revised date
granted by the agent in terms of 11.4 the contractor shall be liable to the employer for the penalty
determined by the agent in terms of the penalty stated in the schedule.

12.2 Where the employer levies such a penalty the agent shall deduct the penalty due from the certified
amount in terms of 13.7.2 in any payment certificate still to be issued to the contractor.

12.3 Where the penalty causes the amount due in the payment certificate to favour the employer in terms
of 13.12 the employer may recover the amount due, in no specific sequence, from any or all the
following:

12.3.1 The amount due to the contractor in terms of 13.11 in subsequent payment certificates.

12.3.2 Security in terms of 2.0.

12.3.3 The contractor as a debt.

PAYMENT

13.0 VALUATION AND PAYMENT TO CONTRACTOR

13.1 The contractor shall within fourteen (14) calendar days from the date of site handover, submit to the
agent for agreement an analysis of the contract sum in sufficient detail to enable the agent to make
interim valuations of the works. Should the contractor fail to submit such an analysis the agent shall
prepare the analysis.

13.2 The contractor shall co-operate and assist in the preparation of the valuation for a payment
certificate by providing relevant documents and assessments of work completed and materials and
goods to the agent.

13.3 At the end of each valuation period as stated in the schedule the agent shall determine the contract
value of the works done and issued an interim payment certificate to the contractor within seven (7)
calendar days of the valuation date even if it is for a nil or negative amount.

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13.4 The agent shall issue interim payment certificates until the issue of the final payment certificate
whether or not the contractor provides the information required in terms of 13.2.

13.5 The contract value certified in each interim payment certificate shall separately include:

13.5.1 A reasonable estimate of the value of the work done taking into account the information
submitted in terms of 13.2 and adjustments in terms of 13.9 and 14.0.

13.5.2 A reasonable estimate of the value of materials and goods.

13.5.3 Amounts previously certified in terms of 13.5.1 and 13.5.2.

13.6 The agent shall adjust the net amount certified in terms of 13.5 to include separately:

13.6.1 Amounts due to the employer in terms of 13.7 or to the contractor in terms of 13.8.

13.6.2 VAT on the net total of the amounts in terms of 13.5 and 13.6.1.

13.6.3 Interest amounts due in terms of 13.13 and 13.14.

13.7 The agent shall include in the payment certificate amounts due to the employer for:

13.7.1 Work done by a direct contractor in terms of 6.3.

13.7.2 Penalties levied in terms of 12.2.

13.7.3 Expense and loss incurred due to default by the contractor on cancellation in terms of 15.0.

13.8 The agent shall include in the payment certificate amounts due to the contractor for expense and
loss incurred due to default by the employer on cancellation in terms of 16.0.

13.9 Where security in terms of 2.3 has been selected retention on the value in terms of 13.5.1 and 13.5.2
shall be deducted at:

13.9.1 Ten per cent (10%) of such value to the date of practical completion up to a limit of five per
cent (5%) of the contract sum.

13.9.2 Two and a half per cent (2.5%) of such value after the date of practical completion to, but
not including, the date of issue of the final payment certificate. The retention held shall be
increased to include any unpaid amount due in terms of 13.12 in the previous payment
certificate.

13.9.3 Nil per cent (0%) of the contract value in the final payment certificate. The retention held
shall be increased to include any unpaid amount due in terms of 13.12 in the previous
payment certificate.

13.10 The contractor shall within forty-five (45) calendar days of the date of practical completion in terms
of 9.0 submit to the agent a detailed final account reflecting the total contract value due in terms of
the agreement for acceptance or rejection within ten (10) working days. Provided the agent accepts
such final account he shall concurrently with the issue of the certificate of final completion, issue a
final payment certificate in such agreed contract value.

13.11 Where the amount certified in a payment certificate in terms of 13.3 or 13.10 favours the contractor
the employer shall pay the contractor the amount certified within seven (7) calendar days of the
date of issue of the payment certificate. Payment shall be subject to the contractor giving the
employer a VAT invoice for the amount due within such period.

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13.12 Where the amount certified in a payment certificate in terms of 13.3 or 13.10 favours the employer
the terms of 13.11 shall apply to the employer in a like manner.

13.13 Where the contractor does not receive payment of the amount due by the due date in terms of 13.11
the employer shall be liable for interest on the amount. The agent shall calculate the interest
compounded monthly from the due date for payment up to and including the date on which the
contractor receives payment. The agent shall include such interest in the next payment certificate
in terms of 13.6.3.

13.14 Where the employer does not receive payment of the amount due in terms of 13.12 the terms of 13.13
shall apply to the contractor in a like manner.

13.15 Where the contractor decides to recover an unpaid amount in terms of 13.13 from the Payment
Guarantee held as security, the contractor shall issue a demand in terms of the Payment Guarantee.

13.16 Where the employer decides to recover an unpaid amount in terms of 13.14 from a JBCC Minor
Works Guarantee held as security, the employer shall issue a demand in terms of the Guarantee.

13.17 The issue of a payment certificate by the agent.

13.17.1 Shall not be evidence that the works and materials and goods valued in an interim
payment certificate are in terms of this agreement.

13.17.2 Shall be regarded as a liquid document for obtaining a court order.

14.0 ADJUSTMENT TO THE CONTRACT VALUE

14.1 The agent and the contractor may agree upon the value of any contract instruction issued in terms
of 6.2 before the work is done. Failure to agree the value shall not relieve the contractor of his
responsibility to comply with the contract instruction.

14.2 Where agreement in terms of 14.1 has not been reached the agent shall determine value of the
contract instruction based on similar work, rates or conditions contained in the agreement and
adjust the contract value where necessary.

14.3 Where the value cannot be determined in terms of 14.2 or where such basis would result in an unfair
value the agent and contractor may agree upon the value failing which the agent shall determine the
value.

14.4 Where the contract sum includes employer allowances the agent shall omit the amount thereof
from the contract value and the work as done shall be valued in terms of 14.1 to 14.3 and added to
the contract value.

14.5 The agent shall omit prime cost amounts from the contract value and the actual delivered cost of
such items, including a reasonable allowance for waste, shall be added to the contract value.

14.6 The agent shall prorate the contractor’s allowances for overheads and profit on prime cost amounts
to the value of each item in terms of 14.5.

14.7 Where the contractor has paid charges for items which are not included in the contract sum the
actual amounts paid by the contractor plus a ten per cent (10%) markup shall be added to the
contract value for:

14.7.1 Compliance with regulations.

14.7.2 Opening up and testing where such tests show that the work is according to the agreement.

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14.8 Where the contractor has incurred expense and loss arising from a circumstance for which provision
was not required in the contract sum the contractor shall provide details thereof to the agent for
approval and adjustment of the contract value. Such circumstances are:

14.8.1 Unreasonable delay in or failure to issue a contract instruction following a request from the
contractor.

14.8.2 Extension of the construction period in terms of 11.5.

14.8.3 Work by a direct contractor appointed in terms of 8.0.

14.8.4 Default by the employer of his agent.

CANCELLATION

15.0 CANCELLATION BY EMPLOYER

15.1 The employer may cancel this agreement where the contractor defaults by failing to:

15.1.1 Provide the security in terms of 2.2 and the employer elects to cancel in terms of 2.4.2.

15.1.2 Execute the works in terms of 7.1.8 or 7.1.10.

15.1.3 Comply within a reasonable period with a contract instruction issued in terms of 6.2.

15.1.4 Continue work on site without reasonable cause for more than fourteen (14) calendar days.

15.2 Where the employer decides to cancel this agreement in terms of 15.1 the agent shall notify the
contractor of the default and of the employer’s intention to cancel this agreement should the default
continue for seven (7) calendar days.

15.3 Where the employer gives notice to the contractor of cancellation of this agreement:

15.3.1 The contractor shall immediately give up possession of the site and the works.

15.3.2 The agent shall prepare and complete the final account within thirty (30) working days.

15.3.3 The employer may appoint direct contractors to complete the works.

15.3.4 The agent shall inform the contractor when his plant, equipment and surplus materials are to
be removed from site.

15.3.5 The employer may, instead of any penalty that could be levied, recover expense and loss
resulting from this cancellation.

15.3.6 The employer shall not be required to make further payments to the contractor until the final
payment certificate is issued.

15.3.7 Where applicable, the security in terms of 2.2 shall remain in force at the value at the time of
cancellation until the final payment certificate is issued. Where the final payment certificate
favours the employer the security shall expire when the contractor makes payment.

15.3.8 Where applicable, the retention in terms of 2.3, at the value at the time of cancellation, shall
be retained until the final payment certificate is issued.

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15.4 The employer may not exercise his right of 15.0 if he is in breach of a material term of this
agreement.

16.0 CANCELLATION BY CONTRACTOR

16.1 The contractor may cancel this agreement where the employer defaults by failing to:

16.1.1 Provide the Payment Guarantee in terms of 5.1.1.

16.1.2 Take out the necessary insurances in terms of 5.1.2.

16.1.3 Hand over the site in terms of 5.1.3.

16.1.4 Make payment in terms of 5.1.7.

16.1.5 Appoint an agent in terms of 5.1.8.

16.1.6 Refrain from interfering with or preventing the agent from discharging his duty in terms of
5.1.10.

16.2 The contractor may also cancel this agreement where the agent fails to issue a payment certificate
or completion certificates in terms of 6.1.5.

16.3 Where the contractor decides to cancel this agreement in terms of 16.1 the contractor shall notify
the employer and the agent of the default and of the contractor’s intention to cancel this agreement
should the default continue for seven (7) calendar days.

16.4 Where the contractor thereafter notifies the employer of cancellation of this agreement.

16.4.1 Execution of the works shall stop.

16.4.2 The contractor shall remove his plant, equipment and materials from site without delay.

16.4.3 The agent shall prepare and complete the final account within thirty (30) working days.

16.4.4 The contractor may recover expense and loss resulting from this cancellation.

16.4.5 The agent shall continue to issue payment certificates to the contractor until the final
account has been determined and included in the final payment certificate.

16.4.6 The employer shall make payment in respect of payment certificates issued in terms of
16.4.5.

16.4.7 Where applicable, the retention in terms of 2.2 shall expire and be returned to the
contractor.

16.4.8 Where applicable, the retention in terms of 2.3 shall be reduced to nil per cent (0%) in all
subsequent payment certificates issued in terms of 16.4.5.

16.5 The contractor may not exercise his right in terms of 16.0 if he is in breach of a material term
of this agreement.

17.0 CANCELLATION – IMPOSSIBILITY OF PERFORMANCE

17.1 Either party may cancel this agreement where the works is:

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17.1.1 Stopped for forty-five (45) calendar days due to circumstances beyond the control of either
party.

17.1.2 Substantially damaged or destroyed.

17.2 Where either party decides to cancel this agreement in terms of 17.1:

17.2.1 The cancelling party shall give notice of cancellation to the other party.

17.2.2 The agent shall issue a contract instruction specifying such work and protective measures
as are required to bring the works to a specific point of cessation.

17.2.3 Where possible the agent shall prepare and complete the final account within thirty (30)
working days.

17.2.4 The agent shall continue to issue payment certificates to the contractor until the final
account has been determined and included in the final payment certificate.

17.2.5 The employer shall make payment in respect of payment certificates issued in terms of
17.2.4.

17.2.6 Where applicable, the security in terms of 2.2 shall reduce to the value applicable after the
issue of the practical completion certificate and shall further reduce and expire in terms of
the Guarantee.

17.2.7 Where applicable, the retention in terms of 2.3 shall reduce to the amount in terms of 13.9.2
and in the final payment certificate in terms of 13.9.3.

17.2.8 Neither party shall be liable to the other for any expense and loss resulting from this
cancellation.

DISPUTES

18.0 SETTLEMENT OF DISPUTES

18.1 Should any dispute between the employer or his agent on the one hand and the contractor on the
other arise out of this agreement, such dispute shall be referred to arbitration. The chairman of the
Association of Arbitrators (Southern Africa) shall appoint the arbitrator at the written request of either
party.

18.2 Such arbitration shall be conducted according to the Summary Procedure Rules for the Conduct of
Arbitrators as published by the Association of Arbitrators.

18.3 The arbitrator shall have the power to open or revise any certificate, opinion, decision, requisition or
notice relating to such dispute as if no such certificate, opinion, decision, requisition or notice had been
issued or given.

18.4 Reference of any dispute to arbitration shall not relieve the parties from any liability for the due and
timeous performance of their obligations in terms of this agreement.

18.5 The cancellation of this agreement in terms of 15.0, 16.0 or 17.0 shall not affect the validity of this
18.0.

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19.0 SCHEDULE OF VARIABLES
This schedule contains all variables referred to in this document. Spaces requiring information must
be filled in, shown as not applicable or deleted and not left blank. Where choices are offered, the
inapplicable items are to be deleted. Where insufficient space is provided the information should be
annexed hereto and cross referenced to the applicable clause of the schedule. Reference clauses are
bracketed in italics.

19.1 PRE-TENDER INFORMATION

19.1.1 Employer
(1.1)
Postal address

Code

Tel Fax E-mail

Physical address

19.1.2 Agent
(1.1)
Postal address

Code

Tel Fax E-mail

19.1.3 The Works

(1.1)

19.1.4 The site

(1.1)

19.1.5 Tender documents:

Drawing No’s

Other documents

19.1.6 Additions, deletions and alterations

(1.6) to the JBCC Minor Works Agreement:

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19.1.7 The law applicable to this agreement
(1.6) shall be that of (Name of Country)

19.1.8 Public Liability Insurance by the employer

(3.4.1) in the amount of

19.1.9 Contract Works Insurance by the employer

(3.4.2) in the amount of

19.1.10 Lateral Support Insurance by the employer

(3.4.3) in the amount of (Where required)

19.1.11 Date of site handover and

(5.1.3) start of the construction period

19.1.12 Schedule of Prime Cost Amounts

(6.2.9) Note: The amounts in this schedule are to be included in the tender amount

Description Amount
1

19.1.13 Schedule of employer allowances

(6.2.10) Note: The amounts in this schedule are to be included in the tender amount

Description Amount
1

19.1.14 Schedule of work by direct contractors

(8.0) Note: This schedule is for information purposes only and is not to be included in the tender amount

Description Estimated value

1

4 1

19.1.15 Intended date for practical completion

(7.1.10)

19.1.16 Penalty per calendar day for non-completion

(12.1) (rate/day)

19.1.17 Tender submissions shall close on (date) (time)

19.1.18 Tenders to be submitted to the agent:

Firm name

Physical address

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19.2 POST-TENDER INFORMATION
19.2.1 Security selected by the contractor
(2.1) (Minor Works Guarantee or retention)

19.2.2 Payment Guarantee provided by the employer

(2.5) (Guaranteed amount)

19.2.3 Meetings at which contract minutes are recorded

(6.1.4) shall be held on (Day) (Week/s No)

19.2.4 Valuation dates for payment shall be on (Day) (Weeks/No)

19.2.5 Additional conditions agreed by the parties

19.2.5 Contract sum inclusive of VAT (Amount)

(1.1)

(Amount in words)

19.2.6 Contractor
(1.1)
Postal address

Code

Tel Fax E-mail

Physical address

20.0 ACCEPTANCE BY THE CONTRACTING PARTIES

We the parties accept the above conditions and the offer in terms of 19.2.5 and hereby enter a
contract for the execution and completion of the works.

Thus done and signed at on

Name of signatory Capacity of signatory

As witness For and on behalf of the employer who by

signature hereof warrants authorisation hereto

Thus done and signed at on

Name of signatory Capacity of signatory

As witness For and on behalf of the contractor who by

signature hereof warrants authorisation hereto

JBCC Series 2000 Code 2108 © July 1999

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