Project Employer Contractor Contract Date File Code prepared by the JOINT BUILDING CONTRACTS COMMITTEE Inc RECOMMENDED BY THE JBCC CONSTITUENTS. Association of Construction Project Managers Association af South African Quantity Surveyors Building Industries Federation South Africa South African Association of Consulting Engineers South AMican Institute of Architeots South African Property Owners Association Specialist Engineering Contractors Committee EDITION 4.1 CODE 2101 © MARCH 2005 Public and Private Sector Compatible Ree CMe iar SERIES 2000JBCC SERIES 2000 Principal Building Agreement - Edition 4.1 Preface Cenciecements sre compiled the interests of standarelsation and portray the consensus view ofthe Joint Building Gontracts Committee of good practice and an equitable distbution of contractual skin the building incostey Th documentation sels out a clesr, Balanced and enforceable set of procedures, nights and obligations. whieh when competently managed and administered, protect the employer, contracior and subcontractors alte, Tho Series 2000 overs all aspects of contract for most types of building projects and should consequently simply ine admiration ofbuiiding contracts. It should be noted that each document has been formulated for use specifcelly ae pat ofthe Series 2000 and is most unlikely o be suitable for use with other forms of contract Warning! BGC has undertaken this Eeltion 4.1 primarily o update the Series 2000 documents with @ comprehensive set of State provisions, improved drafting, grammar and the elimination of minor errors where appropri. However: there Persons entering into er preparing contracts using the JBCC Series 2000 are warned ofthe dangers inherent in ‘modifying any part oft. ifs considered essential fo make changes, The Principal Building Agreement Structure The Agreement has been specifically structured for usage by both the State and Private sectors ‘The Agreements made up of ten sections starting withthe definitions of al the primary elements and phrases that {eaulerly occur inthe document, The sections thal follow are ordered as closely as possible to the project executions sequence When the employer is a State institution clause 41.0 is enacted with all the substitulions that are required to the $andard clauses. All clauses that are effected by State provisions are marked with a #” and such reloronces ancl substitute clauses are printad in green Bing orgie of al the required contractual variables completes the Agreement. The Agreement. catering for both fils of quantities and lump sum contracts, brings about a strong consistency in the contractual language deed snd {he administrative procedures required. The N/S Subcontract Agreement covers both nominated and selected Copyright Reserved Fre Jolot Burling Contracts Committee claims authorship ofthis work. llrightsreserved. No part ofthis publication ray be reproduced, stored in any retrieval system, or transmited, in any form or by any means, electrone CennaIcal Photocopying, scanning, recording, or otherwise, without the prior permission of the Joint Bulding Contracts Committee. Unauthorised reproduction of the work isan inringment of ne copyrightin the werk. eee Proceedings can and wil be instituted to obtain rie! and the recovery of damages COPYING OF INTELLECTUAL PROPERTY IS PIRAC’ Use of JBCC original documents benefits all building industry participants This page does not form part of the Principal Building Agreement Principat Buiting Agreoment 5SCHEDULE OF CHANGES TO THE PREVIOUS EDITION LEGEND New clause has been added ‘ erative clauses, See 41.0 ‘Amondes The clause has been changed . The clause has been renumbered Doleted The lause has been removed -—«40.177_The sequence of clauses 40.1 to 40.7 Redrafied The lavse has been reword No clause Clause number retained or inserted 19 avoid renumbering or provide for State alternates Definitions Revision | [Definitions Revision Arbitrator Recrated | | interest “Amonded Adjdicator Redrated | | Modiator Redrated Construction Gusrantee Amended | | Payment Guarantee Amended Contract Sum Amended |_| Section Amended clause [Revision | [ciause [Revision | [ciause [Revision | [clause | Rovision sat [amended | [2972 [amended | [34.12 [amondoa] [ato [azo gets [New 1304 Jato 301 amended | Jaatze |: a0 te 343” | Amended 1474 [amended | |3152 [amended | [38 |amonded | [4225 | Redratea 317 amended | 311 Amended | [4227 | Rearatea 1716 Aamendes | [31102 | Amended 2228 | Redratted 175 | Amended 36.138 [amended | 2232 | Amended azeze | siate 2234 [Now 262 | Redrated | 328 Jamencea | [ovr |rewiiten | Jarse | amences aoa |New 2034 | siate 334 | amonded Note: inconsequential wording and typographical corections have not been listed This page does not form part of the Pri pal Building Agreement Principe! Buieing AgreementTABLE OF CONTENTS Section Clause Description Page DEFINITIONS. 4.0 Definitions and interpretation 1 OBJECTIVE AND PREPARATION 2.0 Offer Acceptance and Performance 4 3.0 Documents 4 4.0 Design Responsibility 5 5.0 Employer's Agents 5 6.0 Site Representative 5 7.0 Compliance with Regulations 5 8.0 Works Risk 6 8.0 Indemnities 6 10.0 Works Insurances 7 14.0 Liability Insurances 7 12.0 Effecting insurances 8 13.0 No Clause 8 14.0 Security 8 ry EXECUTION 18.0 Preparation for and Execution of the Works 8 ts 16.0 Access to the Works 10 17.0 Contract instructions 10 18.0 Selling out of the Works 4 1.0 Assignment "1 20.0 Nominated Subcontractors 1 21.0 Solacted Subcontractors 12 22.0 Employer's Direct Contractors 3 23.0 Contractor's Domestic Subcontractors 13 ‘COMPLETION 24.0 Practical Completion 14 250 Works Completion 14 26.0 Final Completion 18 27.0 Latent Defects Liability Period 16 28.0 Sectional Completion 16 28.0 Revision of Date for Practical Completion 16 30.0 Penalty for Noncampletion 8 PAYMENT 31.0 Interim Payment to the Contractor 18 32.0 Adjustment to the Contract Value 20 33.0 Recovery of Expense and Loss 2 34.0 Final Account and Final Payment 2 ay 35.0 Payment to Other Parties 2 CANCELLATION 36.0 Cancellation by Employer - Contractor's Default 24 37.0 Cancellation by Employer - Loss and Damage 25 38.0 Cancellation by Contractor - Employer's Default 25 38.0 Cancellation - Cessation of the Works 6 DispuTE 40.0 Settlement of Disagreements and Disputes a SUBSTITUTE PROVISIONS 41.0 State Clauses 28 SCHEDULE OF VARIABLES 420 Pre-tender Information 421 Contracting and other Parties 32 422 Contract Details 33 423 Insurances: 34 424 Documents, 34 Posttender Information 425 Contract Detai's 35 426 Documents, 36 427 Dispute Resolution 36 4a Signatures of the Contracting Parties a This page does not form par of the Principal Building Agreement Principat Buising Agreement Page iiPRINCIPAL BUILDING AGREEMENT DEFINITIONS 1.0 14 DEFINITIONS AND INTERPRETATION ‘The definitions used inthis 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. Where such word fr phrase is not highlighted it shall bear the meaning consistent with the context of ts use ‘The listed defined word or phase does not qualify asa definition where information required to be stated in the schedule has not been provided “ADVANCE PAYMENT GUARANTEE” means a guarantee at call obtsined by the contractor from an institution approved by the employer on the JBCC Advance Payment Guarantee form for the amount as slated inthe schedule “AGENT” means the person of entity named in the schedule or appointed by the employer to deal with specific aspects of the works “AGREEMENT” means this JBCC Principal Bulding Agreement and other contract documents that together form the contract between the employer and contractor “ADJUDICATOR” means the person appointed, where so stated in the schedule, to decide any cispute arising in terms of this agreement “ARBITRATOR” means the person or tlaunal appointed, where so stated in the schedule, to decide any dispute arising in terms of this agreement “BILLS OF QUANTITIES" means the document drawn up acco‘ding to the measuring sysiemas stated inthe schedule. The contractor shall have priced the document to reflect the contract sum. The JBCC Preliminaries shall form part of the bills of quantities. “BUDGETARY ALLOWANCE” means 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 SALENDAR DAYS" means twenty-four (24) hour days commencing at midnight (00:00) which include ‘working and non-working days. “CERTIFICATE OF FINAL COMPLETION” means a certificate issued by the principal agent to the contractor stating the date on which final completion of the works was achieved “CERTIFICATE OF PRACTICAL COMPLETION" means a certificate issued by the principal agent io the contractor stating the dale on which practical completion of the works was achieved “CERTIFICATE OF WORKS COMPLETION” means a certificate issued by the principal agent to the contractor stating the date on which works completion of the works was achieved “CONSTRUCTION GUARANTEE" means a guarantee at call obtained by the contractor from an institution approved by the employer in terms of the JBCC Construction Guarantee form as elected in the schedule “CONSTRUCTION PERIOD” means the period commencing on the date on which possession of the site is, given to the contractor as slated 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 as stated in the schedule "CONTRACT DOCUMENTS" means this document, the contract drawings, the bills of quantitiesiiump sum document ans such other dacuments as are identified in the schedule “CONTRACT DRAWINGS" means the drawings stated in the schedule upon which the accepted tender or negotiated amount was based CONTRACT INSTRUCTION” means a written instruction signed and issued by or under the authority of the principal agent to the contractor “CONTRACT SUM" means either the tender or negotiated amount, inclusive of tax, as accepted by the employer and stated in the schedule that is nol subject to adjustment Principa) Quang Agreement Page 7“CONTRACT VALUE" means a monetary value that initially s equal to the contract sum that is subject to agjustment CPAP" means such contract price adjustment provisions used for the adjustment of fluctuations in the cost of labour, plant and materials and goods as stated in the schedule “DEFECT” means any aspect of the works that, in the opinion of the principal 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 party appointed directly by the employer to do specialist work on site prior to practical completion “EMPLOYER” means the party contracting with the contractor for the execution of the works as stated in the schedule “FINAL ACCOUNT” means the document, prepared by the principal agent, which reflects the contract value of the works al final completion or cancellation “FINAL COMPLETION” means the stage of completion where, in the opinion of the principal agent, the works are free of all defects “INTEREST” means the bank rate thal is applicable from time to time to registered banks when borrowing money from the Central or Reserve Bank of the country named in the schedule. The ruling bank rate on the first ealendar day cf each month shall be used in calculating the interest due for such month "JBCC” means the Joint Building Contracts Committee Incorporates “LATENT DEFECT” means a defect that a reasonable inspection of the works by the principal agent would not have revealed before the issue of the defects lst LAW" means the law of the country stated in the schedule SLUMP SUM DOCUMENT” means the document providing the lump sum amount priced by the contractor to reflect the contract sum and is based upon the contract documents where bills of quantities are not Used. Such a document may include the JBCC Preliminaries and a schedule of rates drawn up according to the measuring system as stated in the schedule “MATERIALS AND GOODS" means materials and goods delivered to the contractor or his subcontractors for inclusion in the works whether stored on or aff the site or in transit but not yet par of the works, “MEDIATOR” means the person appointed, where so stated in the schedule, to mediate any dispute arising interms of this agreement “NOMINATED SUBCONTRACTOR” means a subcontractor executing work provided for in a nominated subcontraci amount included inthe contract sum or, in respect of additional specialist work, 2 subcontractor ‘appointed a5 a nominated subcontractor in terms of @ contract instruction “PAYMENT CERTIFICATE” means a document issued by the principal agent certifying the amount due ang payable by the employer lo the contractor of vice versa “PAYMENT GUARANTEE" means a guarantee obtained by the employer from an institution approved by the contractor in terms of the JBCC Payment Guarantee form in the amount as stated in the schedule “PENALTY” means a penalty as stated in the schedule “PRACTICAL COMPLETION” means the stage af completion where, in the opinion of the principal agent, completion ofthe works has substantially bees reached and can effectively be used for the purposesiintended “PRIME COST AMOUNT" means an amountincluded in the contract sum for the delivered cost of materials, and goods obtained from a supplier as instructed by the principal agent “PRINCIPAL AGENT" means the person or entity appointed by the employer and named in the schedule “RECOVERY STATEMENT" means the statement, prepared monthly by the principal agent in terms of the JCC Recovery Statement form “SCHEDULE” means the listed variables applicable to this agreement Principat Busing Agreement Pags 212 1a 18 154 152 153 184 16.1 162 163 SECTION” means & defined portion of the works for which practical completion is required on the date slated in the schedule “SECURITY” means the form of guarantee provided by the employer or contractor, as stated in the Schedule, from which the contractor or employer may recover expense and loss “SELECTED SUBCONTRACTOR" means @ subconiracior executing work provided for in a selected ‘subcontract amount included in the contract sum or, in respect of addtional specialist work, a subconttector ‘appointed as a selected subcontractor in terms of 2 contract instruction SITE" means the land or place on, over, under, in or through which the works is to be execuled and as stated inthe schedule “STATE” means any department of state or administration in the national, provincial or local spheres of government and any other functionary or institution exercising 2 public power or performing a public function in terms of legislation “TAX” means value-added tax, sales tax or any other statutory lax, duty or levy applicable by law “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 descrbedin general termsin the schedule, detailed in he contract documents, ordered in contract instructions and including the contractor's and his eubcontractors' temporary works Works shall further include materials and goods and those supplied free or otherwise by the employer lo the contractor and exclude work or installations to be executed by direet contractors “WORKS COMPLETION" means the stage of completion where, in he opinion ofthe principal agent, the work on the works completion list has been completed ‘The employer and the contractor each choose their physical address as stated in the schedule where nolices or processes arising out of or concemming this agreement may validly be delivered to and served on them. Either contracting patty may, at any time, by notice o the other change its physical address where it is in the same country 2s that intially stated in the schedule Documents and legislation referred to in this agreement shall mean the current edition thereof with al! ‘amenciments thereto at the date of submission of the contractor's tender unless otherwise stated ‘The date of issue of any certificate referred to in this agreement shall be the date on which an authorised signatory signs the certificate In this document, unless inconsistent with the context ‘The word “deemed” shall be conclu that something is fact, regardless of the objective truth The words “appoint’, ‘approve’, ‘cerlfy’, “decide, “infor “record ‘instruct’, “issue, “notice” ‘request’, “stale” and their derivatives indicate an act carried oul in writing ‘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 Numbers, generally preceded by “in terms of, indicate references to clause numbers ofthis document The headings of cleuses are for reference purposes only and shall not be taken as construing the context thereof ‘Tax shall be applied as required by law Any notice given may be delivered by hand, sent by prepaid registered post, telefax ore-mail, Notice shall be presumed to have been duly given when, Delivered - on the date of delivery ‘Sent by registered post - seven (7) calender days stter posting Sent by telefax - one (1) working day after transmission ‘Sent by e-mail - one (1) working day after transmission Princios!Bulting Agreement Pege 3 a178 18 19 For the purposes of sentence in lation to a payment certificate only, the amployer and contractor consent to the jurisdiction of any court of the country as stated in the schedule although the amount of the claim by either of the parties against the other may exceed the jursciction of such court ‘This agreementis the entire contract between the parties regarding the matters addressed inthis agreement 'No representations, terms, conditions or warranties nol contained in this agreement shall be bincing on the parties. No agreement or addendum varying, adding to, deleting or cancelling this agreement shall be effective unless reduced to writing and signed by the panties, Where this agreement is used fora State contract a clause number marked with @ hash "W#"indicates that the substitute clause of the same number in terms of 41.0 shall apply OBJECTIVE AND PREPARATION 2.0 24 22 3.0 348 32 324 3.2.28 ast 34 35 36 36.18 36.2% 37 38 39 OFFER, ACCEPTANCE AND PERFORMANCE The objective ofthis agreement is the execution of and payment for the works for which there has been an offer by the contractor and an acceptance thereof by the employer In pursuance of the objective the parties undertake fo carry out their reciprocal obligations DOCUMENTS ‘The employer shall provide @ payment guarantee where required by the contractor in the accepted tender. ‘The guarantee shall be according to the relevant JBCC Payment Guarantee form in he amount as stated in the schedule and shall be provided within twenty-one (21) calendar days of acceptance of the tender ‘The contractor shall provide A construction guarantee in terms of 14.1 where so elecied in his tender ‘An advance payment guarantee where so required in the contractor's accepted tender. The guarantee shail be according to the JBC Advance Payment Guarantee form in the amount as stated Where the employer requires the contractor to waive his lien or right of continuing possession of the works as slated in the schedule, the contractor shall do so within seven (7) calendar days of having received a Payment guarantee from ne employer in terms of 3.1, The waiver shall be according to the JBCC Waiver ‘of Contractor's Lien form or such other form as stated in the schedule Where required by the principal agentas statedin the schedule, the JBCC Engineering General Conditions shallbe includedin the contract documents foran aspect of the works to be executed according i a design by an engineer appointed as an agent in terms of 5.2 ‘The principal agent shall complete the schedule and arrange the formal signing of this agreement once the contact documents have been provided and effected. Formal signatures are not required to render this, agreement valid The parties shall sign, in original, the number of sets of contract documents required by the parties. The contractor shall be entitled to receive one (1) set of contract documents for this agreement and two (2) sels of contract documents for each nominated or selected subcontract agreement al no expense to the Contractor. The original signed set of contract dacuments shall be held by: ‘The principal agent of other person as stated in the schedule No clause The principat agent shail supply the number of copies of drawings, unprices bills of quantities/lump sum document and documents as stated in the schedule at nocastto the contractor. The contractor shall keep 2 copy of all drawings, schedules, unpriced bills of quantitiesilump sum document and contract instructions on the site to which the employer, principal agent and agents shall have access al all times Information contained in he contract documents and ther documents flowing from this agreement shall be used only for the purposes of this agreement The bills of quantities/lump sum document shall nol be used as a specification of materials and goods oF methods unless s0 instructed by the principal agent Princibat Buiding Agreement Page +3.10 4.0 44 42 43 5.0 5 B1A SA28 52 53 534 532 83.3 5A 6.0 61 62 7.0 TA 72 The principal agent shall identity in detail in the schedule any changes made to the provisions of JBCC Standard documentation. Shoulé nondisclosure of such changes cause the contractor expense andoss, then the principal agent shail determine such expense and loss in terms of 32.5 and 32.6 DESIGN RESPONSIBILITY The contractor shail not be responsible for the design of the works other than the contractor's or his subcontractor’s temporary works. The contractor shall not be cesponsible for the primary coordination of design elements ‘Any design responsibilty undertaken by a nominated or selected subcontractor shall not devolve upon the contractor. All contractual or other rights the contractor shall have against such nominated or selected ‘subcontractor arising trom any design responsibility undertaken by them are ceded to the employer. The rights flowing from a warranty regarding such design responsibiiy are caded to the employer wheter or not such a design warranty is referred to in the subcontract agreement The contractor shall be responsible for ensuring the limeous preparation of the design documentation undertaken by a selected subcontractor for acceptance by he principal agent i avoid delay to the intended date for practical completion or any revision thereat in terms of 29.0, EMPLOYER'S AGENTS ‘The employer shall appoint the principal agent as stated in the schedule. ‘The employer warrants that: The principal agent has full authority and obligation ta actin terms of the agreement No clause The employer may appoint agents as stated in the schedule and may appoint further agents with the contractor being informed thereot The principal agent shall be the only person who shail have the aulhoriy o bind the employer, except where agents issue contract instructions under delegated authority in terms of 5.3.2. Without detracting ftom the ‘above, the principal agent shall be the only person empowered to: Issue contract instructions, except as provided in terms of 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 thal the contractor is given notice of such delegation Receive notices on behalf of the employer ‘Should the principal agent or any agent be unable to act or cease to be an agent, the employer shal inform the contractor of the new principal agent or agent to be appointed. The employer shall not appaint such @ principal agent or agent against whom the contractor makes a reasonable objection in writing within five (8) working days of receipt of such natice SITE REPRESENTATIVE ‘The contractor shall keep a representative competent to administer and control the works continuously on {he site during the execution of the works. The contractor shall inform the principal agent of the name of the representative A contract instruction given to such representative shall be deemed to be given to the contractor COMPLIANCE WITH REGULATIONS The parties shall comply with all laws and all regulations end bylaws of local or other authorities having jurisdiction regarding tne execution ofthe works. The partes shall give alinotices and pay all cherges requires by such authorities. The principal agent shall deal with the amounts thus paid in terms of 32.4 and 33.2.1 ‘The contractor shall request 2 contract instruction required by such compliance Principal Building Agreement Page $8.0 84 a2 24 8.22 83 834 832 833 eas 85 8.4 852 as3 asa 855 856 87 58 asa 85.10 86 Br 9.0 ot WORKS RISK The contractor shall take full responsibilty for he works from the date on which possession of the site is given to the contractor and up to the issue or deemed issue of the certificate of practical completion. ‘Therestter responsibility for the works shail pass to the employer ‘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 issue or deemed issue of the certificate of final completion and resulting from: ‘Any cause arising upto the date of issue of the certificate of practical completion The contractor or his subcontractors carrying out any operation complying with the contractor's obligations after the date of issue of the certificate of practical complation ‘The lisbilty ofthe contractor in terms of 8.2 shall include: ‘The cost of such making goad loss and repsiring damage ‘The replacement value of materials and goods supplied by the employer to the contractor ‘The additional professional services of the employer's agents ‘The limit of the contractor's liability shall not exceed the amount ofthe contract works insurance as stated in the schedule The contractor shall not be liable for the cost of making good physical ioss and repairing damage to the works where this resulls fram the following circumstances: Wer, whether dectared or not, invasion and hostile acts of foreign enemies Rebellion, insurraction, revolution, terrorism, military or usurped power or civil war Civil commotion, riot, strike, lockout or disorder by persons other than the contractor's personnel and cother employees or his subcontractors Confiscation, nationalisation or requisition by any public or local authority Sonic shock waves caused by aircraft or other aerial devices and ionising radiation or contamination except where attributable to the contractor's use of such technology ‘The use or occupation of any par of the works by the employer. the employer's servants or agents and those for whose acts or omissions they are responsible ‘An act or omission af the employer, the employer's servants or agents and those for whose acts or ‘omissions they are responsible ‘An act or omission by a direct contractor appointed in terms of 22.0 Design of the works where the contractor is nat responsible in terms of 4.0 ‘Alatent defect in materials and goods specified by trade name, where the contractor has no right ‘of substitution. The contractor hereby cedes any righ! of action to the employer thal may exist against the supplier and/or manufacturer of such materials and goods ‘Where the contractor is not lable for the costs in terms of 8.5 such making good and repairing shall be measured and valued in terms of 32,0 and added to the contract value ‘The contractor shall forthwith inform the principal agent and insurer of any physical oss and damage to the works that comes to his attention INDEMNITIES Subjectto the provisions in terms of 8.2 the contractor indemnifies and holds the employer harmiess against any loss in respect ofall claims, proceedings, damages, costs and expenses arising from: Principal Buiding Agrott 9.2% 924 922 923 aa 9.2.58 a6 9278 92.8H 92.9% 9.2.10% 93H 10.0 10.18 10.24 10.38 10.48 11.0 wae Claims from other perties consequent upon death or bodily injury orllness of any person or physical loss ‘oF damage to any property, other than the works, arising out of ordue tothe execution al the works or ‘occupation of the site by the contractor Nancempliance by the contractor with any law , regulation or bylaw of any local or other authority arising out of or due (0 the execution of the works or eccupalion of the site by the contractor Physical loss or damage to any plant, equipment or other property belonging to the contractor or his subcontractors, ‘The employer indemnifies and holds the contractor harmless against loss in respect of all ciaims, proceedings, damages, costs and expenses arising from: ‘An act or omission of the employer, the employer's servants ar agents and those for whose acts or ‘omissions they are responsible {An act or omission of @ direct contractor appointed in terms of 22.0 Design of the works where the contractor is nat responsible in terms of 4.0, ‘The occupation of any part of the works by the employer or his tenants ‘The right of the employer to have the works or any part thereof executed at the site Interference with any servitude or other right thats the unavoidable resultof the execution of the works including the weakening of or interference with the support of land adjacent tothe site unless resulting ‘fom any negligent act or omission by the contractor or his subcontractors Physical loss or damage to an existing structure and the contents thereof in respect of which this agreement is for alteration or addition fo the existing structure Physical loss or damage to the contents of he works where practical completion has been achieved in terms of 24.0, ‘The use or occupation of the site by the works ‘Advance payments where certified in terms of 31.6.5 and duly made by the contractor to nominated subcontractors or selected subcontractors No clause WORKS INSURANCES The party responsible in terms of 12.1 shall effect contract works insurance and, where available, Supplementary insurance in respect of civil commotion, rit and strike for the works in the joint names of the employer and contractor, for the amounts and deductibles, all as stated in the schedule. Such insured ‘amounts shal include the contractor's subcontractors and tha fll value of materials and goods supplied by the employer to the contractor. Supplementary insurance shall not be effected where the employer makes such an election as stated in the schedule ‘The employer shall effect the contract works insurance where completions in sections in terms of 28.0 or alterations or additions to an existing structure are required all as stated in the schedule Where this agreement is cancelied in terms of 37.0 and the contractor is nol required to make good the physical ioss and repairing damage to the works, the right to the proceeds of a contract works insurance claim shall vest in the employer Subject to the provisions of 10.3 the right to any cisims paid or payable in terms of the insurances referred to in 10.1 shal vest in the party entitled to indemnity thereunder and such party shail be liable forthe deductible LIABILITY INSURANCES The party responsible shail effect public liability Insurance to cover the joint interests of both parties fornotless than the amount ang the deductible as stated in the schedule, In addition the contractor shall effect any selevant workmen's compensation or similar insurances as are required by law. The contractor shall ensure that his subcontractors effect their own similar insurances Princisal Bviding Agraement Page 714.28 12.0 rate qeaa 42.12 1243 12.28 12.98 12.48 43.0 14.0 144 142 143 143.1 143.2 143.3 14.3.4 144 ‘The employer shal effect support insurance in the joint names of the employer and the contractor, and in addition, covering the contractor's subcontractors where the employer considers that the execution of the works could cause the weakening of or interference with the support of land adjacent to the site and the consequences thereof EFFECTING INSURANCES, ‘The party responsible as stated on the schedule shall effect and keep in force: Contract works insurance in terms of 10.1 from the date of the handover of the site and until the contractor's responsibilly in terms of 8.0 has ended Publcliabiliyinsurance and such other insurances in terms of 11.1 from the date of the handoverof the site to the dale of issue of the certificate of final completion Support insurance where required in terms of 11.2 until the date of issue of ihe certificate of final completion The party responsible for effecting such Insurances shall make available to the other party, before the commencement of the construction period, documentary evidence that insurances have been effected. A Copy of the insurance policies shell be provided to the other party within thirty (30) calendar days of the commencementofthe construction period. Approval by the ather party shallbe deemed unless a reasonable ‘objection is lodged within fourteen (14) calendar days of receipt of such policies. Where required, the party responsible shall provide evidence af renewal to the other party before the expiry of the current period of insurance Where the party responsible in terms of 12.1 fails to effect any of the required insurances or o keep them in force, the other party may effect such insurances. Where the employer effects such insurances, consequent con the contractor's default, the employer may recover expense and loss resulting therefrom interms of 33.0. Where the contractor effects or keeps in force such insurances, consequent on the employer's default, the ‘cost thereat shall be addressed in terms of 32.4 Belore effecting support insurance in terms of 11.2 the employer shall engage an engineer or technologist in {ems of 5.2 to design and inspect the provision of the necessary support. In terms of 5.3.2 the principal ‘agent shail delegate to such an engineer or technologist the authorily to issue contract instructions in ‘alation to the support provisions No Clause SECURITY “The contractor shall have the right to select the security to be provided in terms of 14.3 oF 14.4 as stated in the schedule. The choice of security shall be included in the contractor's tender, failing which the seeurity in terms of 14.3 shall be deemed to have been selected. Such security shall be provided to the employer within twenty-one (21) calendar days of written acceptance of the contractor's tender No clause ‘Where security as a variable construction guarantee has been selected: The contractor shall furnish the employer with a variable construction guarantee equal in value to twelve point five (12.5%) of the contract sum The variable construction guarantee shall come into force, be administered and expire in terms of the JBCC Construction Guarantee form ‘The employer shall return the variable construction guarantee to the contractor within fourteen (14) calendar days of it expiring Where the employerhas a sight of -ecovery against the contractor terms of 33.0, he employer may issue a written demand in terms of the variable construction guarantee Where security as a fixed construction guarantee and payment reduction of the value cerified has been selected: Principa! Buiting Rgroement Page 814.4.1 ‘The contractor shall furnish a fixed construction guarantee lo the employer equal in value to seven point five per cent (7.5%) of the contract suum 14.42 The fixed construction guarantee shall come into force, be administered and expire in terms of the JBCC Construction Guarantee form 144.3 The employer shall return the fixed construction guarantee to the contractor within fourteen (14) calendar days of it expiring 1488 The payment reduction of the value cerified in a payment certificate shall bein tems of 31.8 and 34.8 1445 Where the employer has a right of recovery against the contractor in terms of 33.0, the employer may issue a written demand in terms ofthe fixed construction guarantee or may recover from the payment reduction in terms of 33.4 or both 14.5 Where security as an advance payment guarantee is to be provided by the contractor: 451 The contractor shall furnish the employer with an advance payment guarantee equal in value to the cash advance requirement stated in the accepted tender 1452 The advance payment guarantee shall come into force, be administered and expire in terms of the JBC Advance Payment Guarantee form 145.3 The employer shall return the advance payment guarant calendar days of it expiring to the contractor within fourteen (14) 146 Payments made by the guarantor to the employer in terms of a construction guarantee or advance Payment guarantee shall not prejudice the rights of the employer or contractor 14.7 Should the contractor fail to furnish the security in terms of 14.1 the employer, in his sole discretion, may either: aaa Hand over the site to the contractor and withhold payment from the contractor until the amount withheld is equal to ten per cent (10%) ofthe contract sum. Such amount shall be adjusted to two point five per cent (2.5%) of the contract sum on the achievement of practical completion in terms of 24.0 and to zero per cent (0%) inthe final payment certificate in terms of 34.8 1472 Cancel this agreement in terms of 36.1.1 14.8 A security held by the employer in terms of 14.3 oF 14.4 and 14.5 shall be for the due fulfilment of the contractor's liability only and the employer hereby waives all common law rights lo recover from or set-off against such security EXECUTION 15.0 PREPARATION FOR AND EXECUTION OF THE WORKS 15.1 The contractor shall submit lo the principal agent on acceptance of the tender or negotiated amount: 18.4.1 ‘The priced bills of quantities/lump sum document within the period slated in the schedule 16.1.2 ‘The security selected in terms of 14.1 and where required in terms of 14.5, 16.1.3# The waiver of lien or right of continuing possession of the works where required in the schedule 15.2 The employer shall 152.12 Give possession of the site to the contractor on the date stated in the schedule: 15.2.28 Where required in the schedul ‘guarantee from the contractor provide an advance payment on receipt of an advance payment Inform the contractor of all cash advances and the quantum of each to be provided to nominated subcontractors or selected subcontractors which notification shall effect the indemnification in terms 9.2.10 15.24 Make payment to the contractor in terms of 31.0 and 34.0 Principat Busing Agroament Page 9153 1831 1832 1933 1834 184 16.0 16.4 16.2 17.0 wa Aa 1942 1743 1414 1745 17.18 war 1748 17.49 47.4.0 aaa waz 14.13 anasa an4.98 1.16 waar 171.48 174.19 On being given possession of the site the contractor shall commence the works within the period stated in the schedule and proceed with due skill, cligence, regularity and expedition and bring the works to: No clause : Practical completion in terms of 24.0, Works completion in terms of 25.0, Final completion in terms of 26.0 ‘Where completion in sections is required in terms of the schedule the further provisions of 28.0 shall be applicable ACCESS TO THE WORKS The employer and agents shall have reasonable access to the works, workshops and other places where ‘work in terms of this agreement is being prepared, executed or stored The contractor shall have reasonable access to the works and any section thereof that has achieved practical completion to full his obligations. CONTRACT INSTRUCTIONS ‘The principal agent may issue contract instructions to the contractor regarding: Alteration to design, quality or quantity of tie works provided that such contract instructions shall not ‘substantially change the scope of the works Rectification of discrepancies, ertors in description or omissions in contract documents otherthan this document Removal of any materials and goods from the site and the substitution of any other materials and goods therefor Removal or re-execution of any work Opening up of work for inspaction Provision and testing af samples of materials and goods and assembles of elements ofthe works Protection of the works Making good physical loss and repairing damage tothe works in terms of 8.0 Removal rom the site of any person employed an the works Removal rom the site of any person not engaged on or nat connected with the works Nominated and selected subcontract amounts and the work to be executed thereunder and the ‘appointment of nominated and selected subcontractors Furnishing proof of payment to nominated and selected subcontractors in terms of 20.5 and 21.5 Notices to nominated subcontractors Prime cost amounts and the purchase of materials and goods included therein Budgetary allowances and work executed by the contractor thereunder Contingency and other monetary provisions included inthe contract sum Work by @ direct contractor in terms of 22.0 ‘The fists for practical completion, works completion, final compl tion and defects Compliance with laws, regulations and bylaws in terms of 7.0 Prncipa Busing Agreement Pape 10171.20 Access for previous contractors and subcontractors to remedy detective work a2 174 18.0 18.1 18.2 183 19.4 19.0 19.4 19.2 20.0 20.18 20.1.1 20.1.2 20.1.3 ‘The contractor shail comply with and duly execute all contract instructions except any contract instruction for adsitional work issued after the date of practical completion other than making good physical loss and repairing damage to the works in terms of 8.0 and defects in terms of 25.0 and 26.0 ‘An oral instruction issued by the principal agent or any other agent shail be of noforce or effect. Neither the: ‘contractor nor the employer may rely upon an oral instruction for any purpose ‘Should the contractor filto proceed with due diigence with a contract instruction, the principal agant may Notiy the contractor to proceed within five (5) working days from receipt of such notice. Without further notice, on default by the contractor, the employer may employ other parties to give effect to such contract Instruction in addition to any other rights thatthe employer may have. The employer may recover expense and loss in terms of 33.0 resulting from such employment Execution of a contract instruction thal causes a variation to the contract value shallbe addressed in terms of 32.0. The contractor shall cooperate with and assist the principal agent in the pricing of such contract instructions. SETTING OUT OF THE WORKS ‘The employer shall appoint an agent to establish the boundary pegs or beacons identifying the site and the correctness ofthe datum level. Al the commencement ofthe construction period such agent shall point out the pegs, beacons and datum level fo the contractor in the presence of the principal agent 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 The contractor shall provide all assistance and everything necessary to enable the accuracy ofthe setting out to be checked. Checking of the setting out by others shall not relieve the contractor of his responsibily for correctness thereof. The contractor shall rectify any errors inthe works that may arise from incorrect setting ‘utwithout adjustment tothe contract value. Should incorrectinformation be given tothe contractor in terms of 18.1 and 18.2, which causes the incorrect setting out of the works, the contractor shall not be liable for such incorrect setting out ‘The contractor shall take all precautions to preserve such pegs, beacons, datum levels and other aids used in setting out the works and should any be disturbed have them replaced by the employer's agent at the contractor's expense ASSIGNMENT "Neither the employer nor contractor shall assign or cade his rights or obligations without the written consent of the other party, which consent shall not be withheld without good reason ‘The contractor shallnot consent to 2 nominated subcontractor assigning or ceding his rights or obligations in terms of the nominated subcontract agreement without obtaining the prior approval ofthe principal agent NOMINATED SUBCONTRACTORS The principal agent shall Prepare tender documents in conformity with the JBCC Nominated | Selected Subcontract Agreement and this agreement for work intended to be executed by @ nominated subcontractor and tnereatter call for tenders Nominate a subcontractor and instruct the contractor to appoint such a subcontractors 2 nominated subcontractor in terms of the JBCC Nominated / Selected Subcontract Agreement and other tender requirements Inform the contractor that an advance payment wille made to the nominated subcontractor where such an advance payment requirementis includedin the accepted tender and that recovery thereof will bbe effected in terms of 33.1.7 Principat Building Agreement Page 1120.2 2021 20.22 2023 20.3 204 208 206 20.18 208 209 20.10 2na2 2143 aaa 212 ‘The contractor may refuse to sppoint such a subcontractor ‘Against whom the contractor makes a reasonable objection ‘Thatrefuses to enter a subcontract in terms of the JBCC Nominated Selected Subcontract Agreement ‘and other tender requirements ‘That is unable to provide security in terms of such Agreement Where such 2 subcontractor is not appointed by the contractor for reasons in terms of 20.2 another subcontractor shall be nominated and appointad in terms of 20.1 ‘The contractor shall provide @ payment guarantee in terms of the JBCC Nominated | Selected Subcontract ‘Agreement within twenty-one (21) calendar days of a request by the nominated subcontractor. The payment guarantee shallbe for an amount of ten per cent (10%) of the contract sum for the subcontract works a instructed by the principal agent, and according to the JBCC N/S Payment Guarantee form The contractor shall make payment to the nominated subcontractor of the amaunt certfied and identlied in terms of 31.13.1 and the JBCC Nominated / Selected Subcontract Agreement ‘The contractor shall, within five (5) working days after receipt of contract instruction in terms of 17.1.12, {umish proof to the principal agent that the contractor's payment obligations in terms of 20.5 have been discharged. Failure by the contractor io provide such proof to the satisfaction of the principal agent shall {enitle the employer to instruct the principal agent to certify payment direct tothe nominated subcontractor interms of 35.1.2. The contractor shall have no recourse to recover such amounts from the employer. Such direct payment shall not create priviy of contract between employer and nominated subcontractor. The ‘employer may recover such direct payment in terms of 33.2.8 ‘Where, aiter notification by the contractor, the prinelpal agent agrees thal the nominated subcontractor is in default due to any of he reasons referred 10 in 36.1 mutatis mutandis, the principal agent shall instruct the contractor to notify the nominated subcontractor to rectify such default. The principal agent may instruct the contractor to cancel the nominated subcontract should such a defaull continue for five (5) working days after such notice ‘Where cancellation ofthe nominated subcontract occurs in terms of 20.7 or otherwise, another subcontractor shall be nominated and appointed in terms of 20.0 to carry out and complete the balance of the nominated subcontract works ‘Where the nominated subcontract is cancelled due to default or insolvency ofthe nominated subcontractor, ‘or default by the employer or his agents, any variation in the cost of carrying out end completing the nominated subcontract works shall be adjusted in terms of 32.8 and 32.6 ‘Where the nominated suocontract is cancelled due to default or insolvency of the contractor, any variation in the cost of carrying out and completing the nominated subcontract works shall be for the account of the ‘contractor. Expense and loss suffered by the employer trom such cancellation may be recovered in terms 0f 332.3 SELECTED SUBCONTRACTORS The principal agent shall: Prepare tender documents in conformity with the JBCC Nominated / Selected Subcontract Agreement {and this agreement for work intended to be executed by selected subcontractors, Such preparation shall be carried outin consultation with and to the reasonable approval of the contractor Call for tenders from a list of tenderers agreed between the contractor and the principal agont |nconsultation with the contractor, choose a subcontractor and instruct the contractor to appoint such ‘a subcontractor as a selected subcontractor in terms of the JBCC Nominated Selected Subcontract, ‘Agreement and other tender requirements Inform the contractor that an advance payment will be made to the selected subcontractor where such an advance payment requirements included in the accepted tender and that recovery thereof will be effected in terms of 33.1.7 ‘The contractor shall within ten (10) working days of such an instruction in terms of 21.1.3 determine that such a subcontractor can Principat Buising Agreement Page 122124 21.22 21a 2131 21.32 214 218 216 218 219 21.10 22.0 22.4 222 23 22.4 28 23.0 23.1 23.2 ‘Meet the requirements of the JBCC Nominated / Selected Subcontract Agreement and other tender requirements Provide security in terms of such an Agreement In terms of 21.2 the contractor shall either: Appoint such a subcontractorasa selected subcontractor and inform the principal agent accordingly Provide reasonable cause to the satisfaction of the principal agent for not making such appointment in which event another subcontractor shall be chasen in terms of 21.1.3 ‘The contractor shall provide a payment guarantee in terms of the JBC Nominated / Selected Subcontract ‘Agreement within twenty-one (21) calendar days of a request by the selected subcontractor. The payment ‘guarantee shall be for an amount of ten per cent (10%) of the contract sum for the subcontract works as instructed by the principal agent, and according to the JBCC N/S Payment Guarantee form ‘The contractor shall make payment to the selected subcontractor of the amount certified and identified in tems of 31.131 and in terms of the JBCC Nominated / Selected Subcontract Agreement ‘The contractor shall, within five (5) working days after receipt of a contract instruction in terms of 17.1.12, furnish proof to the principal agent that the contractor’s payment obligations in terms of 21.5 have been discharged. Failure by the contractor to provide such proof to the satisfaction ofthe principal agent shall eile the employer to instruct the principal agent to certify payment direct to the selected subcontractor interms of 35.1.2. The contractor shall have no recourse to recover such amounts fram the employer. Such direct payment shall not create privity of contract between employer and selected subcontractor. The employer may recover such direct payment in terms of 33.2.8 ‘Where the selected subcontractor is in default for whatever reason, the decision whether to cancel the selected subcontract is that of the contractor ‘Where cancellation of the selected subcontract occurs the contractor shall appoint another subcontractor ‘subject to the approval of the principal agent Where the selected subcontract is cancelled, 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 in terms of 32.5 and 226 ‘Where the selected subcontract is cancelled, other than in terms of 21.9, any variation in the cost of carrying ‘oul and completing the selected subcontract warks shall be far the account of the contractor EMPLOYER'S DIRECT CONTRACTORS On instruction of the principal agent in terms of 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 Undertaken, the insurances related thereto and the associated risks shall be the direct responsibilly of the ‘employer in terms of 9.2.2 ‘The type and extent of such work shal be described in the schedule. The contractor shall make reasonable allowance in his construction programme for such work or installation ‘Adirect contractor executing such work or installation shall be subject to reasonable controls 2s requited by the contractor Expense or oss caused by a direct contractor shall be dealt with in terms of 32.5 The payment of a direct contractor shall be the responsibilty of the employer and shall nol be dealt with in terms of 31.0 or 34.0 CONTRACTOR'S DOMESTIC SUBCONTRACTORS The contractor shall appoint all his domestic subcontractors in terms of an agreement that provides for fair and equitable conditions of contract compatible with this agreement {All work or installations and the associated risks related to domestic subcontractors shall be the direct responsibilty ofthe contractor Principal Suising Agreement Page 12COMPLETION 24.0 28.4 2444 24.12 242 243 24.34 24.32 284 244.4 24.42 245 2454 245.2 246 247 25.0 254 252 25.2.1 PRACTICAL COMPLETION ‘The principal agent shall: From time to time inspect the works to give the contractor interpretations and guidance on the building standards and state of completion of the works that the contractor will be required to achieve for practical completion Inform the contractor of the period required for inspection of the works related to the issue of the certificate of practical completion The contractor shall inspect the works to saiisty himself thatthe stage of completion of the works in terms of 24.1 has been achieved The contractor shail give timeous notice to the principal agent of the anticipated date of practical completion to enable the principal agent to inspect the works on or before such date. Where, in the opinion of the prineipal agent, after such inspection the works: Has reached practical completion, the principal agent shall forthwith issue a certificate of practical ‘completion to the contractor with 3 copy to the employer. The certificate of practical completion, Unleas otherwise agrees by the parties, shall not be issued before the date for practical completion ag siated in the Schedule or revised in terms of 29.0 Has not reached practical completion, the principal agent shall forthwith issue @ practical completion list defining the outstanding work and defects to be rectified to achieve practical ‘completion to the contractor Where, in the opinion of the contractor, the work on the practical completion lst has been completed. the contractor shalt inform the principal agent who shall inspect such work within seven (7) calendar days of receipt thereof. Where, inthe opinion of the principal agent, the work on the practical completion list Has been satisfactorily completed, the principal agent shall forthwith issue a certificate of practical ‘completion in terms of 24.3.4 Has nat been satisfactorily completed, the principal agent shall forthwith identily the items on the practical completion list that are not yet complete and inform the contractor thereof, The contractor hall repeal the procedure in terms of 24.4 Should the principal agent notissue a practicat completion ist, in terms of 24.3.2 orthe updated lstin terms (of 24.4.2, within seven (7) calendar days of the end of the inspection period, the contractor shail notify the ‘employer and principal agent. Should the principal agent not issue such a lst within seven (7) calendar days of receip! of such 2 notice practical completion shall be deemed to have been achieved either: On the date that practical completion was anticipated in terms of 24.3 (On the date of expiry of the notice given by the contractor in terms of 24.5, ‘The contractor shall nat be obliged to carry oul any contract instruction for additional work in terms of 17.2 issued after the date of practical completion Upon the issue of the certificate of practical completion the employer shal be entilled to possession of the works and the site subject to the contractor's lien or right of continuing possession of the works WORKS COMPLETION Within seven (7) ealendar days of the date of practical completion the principal agent shall issue to the contractor 2 works completion list defining tne outstanding work and defects apparent at the date of practical completion fo be completed or reciied to achieve works completion, Where, in the opinion of the contractor, the works completion list has been completed the contractor shall oly the principat agent who shall inspect within seven (7) calendar days of receipt of such a notice. ‘Where, in the opinion of the principal agent, the works completion Ist Has been satisfactorily completed, the principal agent shall forthwith issue 2 certificate of works ‘completion to the eontractor wilh 2 copy to the employer Princiat Buding Agrasorant Page 1s25.22 Has not been satistactoily completed, he principal agent shall forthwith identify he works completion, Ist tems that are nat yet complete and inform the contractor thereof. The contractor shall repeal the procedure in terms of 25.2 25.3% Should the principal agent not issue @ works completion Ist, in terms of 25.1 or 25.2.2, within seven (7) calendar days of tne end of the inspection period, the contractor shall notify the employer and principal agent, Should the prineipal agent not issue such works completion list within seven (7) calendar days of receipt of such a notice, the certificate of works completion shali be deemed to have been issued on the ‘date of expiry ofthe initial notice period and works completion shall be deemed io have been achieved on such date 253.110" No clause 25.4 Should the works complation lst nat be completed within a period of twenty (20) working days of the issue thereof the contractor shall nol be entilled to compensatory interest in terms of 31.10 on the value of the outstanding work so listed 25.8 The defects liability period in terms of 26.1 shall commence with the issue or deemed issue of the certificate of works completion in terms of 25.2.1 or 25.3 26.0 FINAL COMPLETION 26.1 The defects labilty period for the works shail commence on the date of warks completion and end at ‘miiight (00:00) 26.1.4 sinety (90) calendar days from such date 26.1.2 No clause 26.2 _Atthe end of the defects lability period the principal agent shall forthwith inspect the works and where the works: 26.2.1 Has reached final completion the principal agent shall forthwith issue a certificate of final completion to the contractor with 2 copy to the employer 26.22 Has not reached final completion the principal agent shall forthwith issue 8 defects fist to the contractor defining the defects, which have appeared during the defects liability period, to beectified (o achieve final completion 26.3. Where, in the opinion of the contractor the defects list has been completed, the contractor shall notify the Principal agent who shail inspect within seven (7) calendar days of receipt of such a notice. Where, in the opinion of the principal agent, the defects lst 26.3.1% Has been satisfactorily completed the principal agent shall forthwith issue 2 ce completion to the contractor with a copy to the employer jeate of final 26.3.2 Has not been satisfactorily completed or where further defects have become apparent, the principal agent shall forthwith identify such lems on the updated defects lst and inform the contractor therect. ‘The contractor shall repeat the procedure in terms of 26.3, 26.4# Should the principal agent not issue a defects lst, in terms of 26.2.2 oF 26.3.2, within seven (7) calendar days from the endof the defects liabilty period, the contractor shall notify the employer and principalagent. ‘Should the principal agent not issue such defects lst within seven (7) calondar days of receipt of such 3 notice, the certificate of final completion shall be deemed to have been issued on the date of expiry of the initial notice period and final completion shall be deemed to have been achieved on such date. 26.4.12# — Noclause 26.5# Where s nominated or selected subcontractor's defects liability period extends beyond the contractor's defects liability period in terms of 26.1 26.5.18 The contractor's obligations and ability concerning such a subcontractor's defects shall nevertheless ‘end on the issue of the certificate of final completion 26.5.2# The remaining portion of such 2 subcontrattor's defects liabilty period shall be subject to a direct agreement between the employer and the subcontractor and shalino longer be the responsibilty of the contractor Principat Building Agreement Page 1826.69 26.7 27.0 rte 2728 w2Ae 272.28 28.0 28.4 rans pare 2013 zara 28.1.5 282 20.2.1 2022 2023 2824 29.0 29.18 29.4.4 29.1.2 29.13 29.1.4 A certificate of final completion issued in terms of 26.0 shall be conclusive evidence as to the sufficiency of the works and that the contractor's obligations in terms of 2,0 and 15.0 have been futfiled other than for latent defects Where a subcontractors required to give a guarantee, warranty orindemnily related to subcontract wark, other than a security to the contractor, the rights under such guarantee, warrenty or indemnity shall be deemed to be ceded to the employer on the date of issue of the certificate of final completion, This cession shall not prejusice any other rights that the employer may have LATENT DEFECTS LIABILITY PERIOD ‘The latent defects lability period for the works shall commence at the start of the construction period and lend five (5) years (rom the date of achievement of final completion in terms of 26.0. Defects thal appear up {o the dale of final completion shall be addressed in terms of 24.0 t0 26.0 Where cancellation of this agreement occurs: Interms of 36.0 oF 39.0 before the achievement of final completion the latent defects liability period shall end five (5) years from the date of cancellation Interms of 37.0 or 38.0 the latent defects liability period shall end on the date of cancellation SECTIONAL COMPLETION Where sections are required to be completed as stated in the schedule, terms and conditions applicable to the works without seetions shall apply mutatis mutandis to each section. The following documents, which shall include each section, shall be issued by the principal agent for the works as a whole Interim payment certificates in terms of 31.1 Recovery statements in terms of 33.1 Final account in terms of 34.4 Final payment certificate in terms of 34.5 Cert section 1e of final completion in terms of 26.0 that shall incorporate the final completion of the last “The principal agent shall issue the following documents individually for each section No clause A certificate of practical completion in teams of 24.0 A certificate of works complotion in terms of 25.0 {A certificate of final completion in terms of 26.0 other than in terms of 28.1.5 REVISION OF DATE FOR PRACTICAL COMPLETION ‘The circumstances for which the contractor is entitled to a revision of the date for practical completion and for which revision the prineipal agent shall nol adjust the contract value in terms of 32.12 are delays to practical completion caused by Inclement weather The inabilly to oblein materials and goods where the contractor has taken all practical steps to avoid or reduce such delay Making good physical loss and repairing damage to the works in terms of 8.0 where the contractor is al risk Vis major, civil commation, riot, strike or lockout Principat Butaing Agreament Page 1629.15 Late supply of a prime cos! item where the contractor has taken all practical sieps to avoid or reduce such delay 29.1.6 Default by a nominated subcontractor where the contractor has taken all practical steps to avoid or reduce such delay 29.2 The circumstances for which the contractor is entilled o a revisian ofthe date for practical completion and forwhich revision the principal agent shall adjust he contract value in terms of 32.12 are delays to practical completion caused by: 29.2.1 Failure to give possession of the site to the contractor in erms of 15.2.1 282.2 king good physical loss andrepaining damoge othe work in tems of BO where the contractors not ati 29.23 Contract instructions not occasioned by default by the contractor 29.24 Feillure to issue or the late issue of @ contract instruction following a request from the contractor 292.5 Late acceptance by the principal agent ofa design undertaken by a selected subcontractor where the contractor's obigations in tems of 4.3 have been met 292.6 Suspension or cancellation invoked by # nominated or selected subcontractor due to defaultby the employer or the principal agent in tems of 38.1 29.2.7 Insolvency of @ nominated subcontractor 2928 Adirect contractor 282.8 Opening up and testing of work and materials and goods in terms of 17.1.5 and 17.1.6 where such work is according to 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 29.2.11 Late oF failure to supply materials and goods for which the employer is responsible 29.3 Further circumstances for which the contractor is entitled to 8 revision ofthe date for practical completion are delays lo practical completion caused by any other cause beyand the contractor's reasonable control that could not have reasonably been anticipated and provided for 29.4 Shoulda circumstance as listed in 29.1, 23.20r29.3 occur which could, inthe opinion of the contractor, cause 8 delay lo practical completion the contractor shall: 29.4.1 Give the principal agent reasonable and timeous notice of such @ circumstance 29.4.2 ‘Take any reasonable practical steps to avoid or reduce the delay 29.4.3" Within 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 @ revision to the date for practical completion or any previous revision thereof resulting from such delay, failing which the principal agent shall not consider such claim 29.5 The contractor shall, within sixty (60) working days of the delay ceasing, submit such claim to the principal agent, failing which the contractor shall forfeit such claim 29.6 Where the contractor requests a revision of the date for practical completion the claim shall in respact of each circumstance separately state: 29.6.1 ‘The relevant clause or clauses of 29.1, 29.2 or 28.3 on which the contractor relies 29.6.2 ‘The particulars of the cause of the delay 23.6.3 ‘The extension period claimed in working days, and the calculation thereof 28.7 The principal agent shail in wriling, within twenty (20) working days after receipt of a claim in terms of 29.6 29.7.4 Grant, reduce or refuse the working days claimed Pemcine! Bulding Agreement Page 1729.7.2 Determine the revised date for practical completion in relation to the working days granted making due allowance for the holiday period where such is noted in the schedule 29.73 Identity each circumstance and relevant subclause for each revision granted or give reasons for amending oF refusing such claim 29.74 ‘Assess a claim in terms of 29.3 in the same manner and principles as ere applicable to 29.1 and 29.2 29.8: Where the principal agent fails to actin terms of 29.7 the claim shall be deemed to be refuses 30.0 PENALTY FOR NONCOMPLETION 30.1. Where the contractor fails to bring the works or sections thereof to practical completion on the date or dates stated in he schedule or revision thereof in terms of 29.0, the contractor shallbe liable to he employer {or the penalty per calendar day for noncampletion of the works or each section thereof at the rate stated in the schedule. The principal agent shall calculate the penalty due trom the date or revised date in terms (of 28.0 up to and including the aciuel date of practical completion of the works or section thereof or cancellation in terms of 36.3 30.2 Where the employer levies such a penalty the principal agent shall detal the amount for recovery in terms of 33.1.1 PAYMENT 31.0 INTERIM PAYMENT TO THE CONTRACTOR 31.1. The principal agent shall issue an interim payment cettificate every month until the issue of the final payment certificate. ‘The payment certificate may be for anil ornegative amount and shall be based on a Valuation prepared within seven (7) calendar days before the stated date 31.2. The contractor shall cooperate with and assist the principal agent in the preparation of the payment claim Invonnation for an interim payment certificate by provicing to the principal agent all relevant documents and Sssessments of quantified amounts of work completed. For slump sum contract the contractor shell compile Such information, for work completed and materials and goods, if applicable, in such form as agreed by the principal agent, Tho principal agent shall not be relieved of his responsibilly 10 issue an interim payment Certificate in lerms of 31.4 whether or not such information is provided by the contractor 31.3. The principal agent shall issue each inférim payment certificate to the contractor with a copy to the ‘employer by not later than the day of thé month stated in the schedule 31.4 The value certified in an interim payment certificate shall separately include: wat ‘A reasonable estimate of the value of the work executed taking into account the information submitted by the eontractorin terms of 31.2 and making due allowance for adjustments tothe contract value in terms of 32.0 3142* reasonable estimate of the value of materials and goods jn torms of 31.5. 3143 The total of amounts previously certified in terms of 31.4.1 and 31.4.2 31.5. The following adjustments shall be made to the amounts certified in terms of 31.4.1 and 31.4.2 and shall separately include 315.1 Noclause 318.2 Securly adjustment in terms of 14.7.1 oF 31.8 3153 CPAP adjustment where stated in he schedule 31.54 The amounts due tothe employer or contractor in the recovery statement in terms of 23.1 excivcing interest amounts in terms of 37.5.6 3155 Taxonthe net total of the amounts in terms of 31.4 and 91.5 31.56 Amounts included in the recovery statement in terms of 33.1 Princina! Bulsing Agreement Page 1831.6 The value of matertals and goods in terms of 31.4.2 shall be included in the value certified only where, to the satisfaction of the prineipal agent, the materials and goods are: 31.64 Not prematurely delivered or offered for delivery 31.8.2 Prematurely delivered or offered for delivery where the placing of the order was in terms of the requirements of the principal agent 31.6.3 Stored and protected against loss or damage 3164 Covered by insurance in terms of 10.1 316.5% Covered by an advance payment guarantee or such other security as may be accepted by the a a 31 31 3 a 34 u 31 31 a 3 31 3 a ‘employer where stored off the site 7 Materials and goods certified shall become the property of the employer and shall not be removed without the written authority of the principal agent 8 Where securityas a fixed construction guarantee and paymentreduction in terms of 14.4has been selected the value of the works in terms of 31.4.1 and materials and goods in terms of 31.4.2 that exceeds the contract sum and any CPAP adjustment shall be certified in full, The value certified that does not exceed the contract sum shall be subject to the following percentage adjustments: BA Ninety-five per cent (95%) of such value in interim payment certificates issued up to the date of practical completion 82 Ninety-seven point five per cent (97.5%) of such value in interim payment certificates issued on the: date of practical completion and up to bul excluding the date of final completion 83 ‘Ninety-sight point seven per cent (98.7%) of such value in interim payment certificates issued on the date of final completion and up to but excluding the final payment certificate in terms of 34.6, 84 ‘One hundred per cent (100%) of such value in the final payment certificate in terms of 34.6 except where the amount certified is in favour of the employer. In such an event the payment reduction shall remain at the adjustment level applicable to the final payment certificate 9# The employer shall pay to the contractor the amount certified in an interim payment certificate within seven (7) calendar days of the date for issue of the payment certificate, Payment shall be subject to the ‘contractor giving the employer a tax invoice for the amount cue 40 The employer shall pay the contractor compensatory interest on all amounts certified in eninterim payment certificate issued afer thirty-one (31) calendar days of the date of practical completion. Subject to 25.4 the principal agent shal calculate such compensation atthe ulingrate ofinterest compounded monthly from the dale of practical completion up to and including the date on which paymentis due to the contractor and include such an amount in the recovery statement in terms of 33.0 14, Where the contractor does not receive payment of the amount due by the due date in terms of $1.9, the ‘employer shall be liable for default interest on the amount without prejudice to any other rights the contractor ‘may have. Such interest amount shall be compounded monthly from the due date for payment up to and including the date an which the contractor is to receive payment and included inthe recovery statement in ters of 33.0. The principal agent shall calculate such interest at the rate: 111# Of one hundred and sixty per cent (160%) of the interest 14.2 No clause 12. Where a payment certificate reflects an emount in favour of the employer, the contractor shall pay the ‘amount cerified within seven (7) calendar days of the date of issue of the payment certificate. Where such {an amount has not been paid, the contractor shall be liable for default interest in terms of 31.11 mutatis ‘mutandis and the principal agent shall include such an amount in the next recovery statement in terms of 33,0. Payment shall be subject to the employer giving the contractor a tax invoice for the amount due, The principal agent shall calculate such interest at the rate: 42.1% Of one hundred and sixty per cent (160%) ofthe interest 12.28 No clause 13. The principal agent shall concurrently with the issue of each interim payment certificate issue the folowing: Principe! Butéing Agreement Page 193113.4 31.132 31.133 3n.44 31.15 31.16% {A statement to the contractor showing the formulation of the amount certified and identifying the ‘amounts certified for each nominated or selected subcontractor ‘A notification to each such subcontractor shawing the formulation of the subcontract amount included inthe payment certificate and its date of issue {Astatement to the employer and the contractor showing the total certified to date of sil adjustment ‘amounts in terms of 34.5 ‘The issue of an inierim payment certificate by the principal agent shall not be evidence that the works and materials and goods are in terms ofthis agreement, Where the principal agent fails to issue @ payment certificate in terms of 31.1 the contractor may give notice to the employer with a copy to the principal agent in terms of 38.2 Where the contractor has provided a tax invoice and the employer has not paid or has made a parti ‘payment only of the amount due to the contractor in terms of a payment certificate issued in tetm of 31.1 the contractor may: 31.16.14 Issue 8 written demand to the employer in terms of the payment guarantee provided in terms of 3.1 31.16.24 Exercise his lien or right of continuing possession where this has not been waived in terms of the 31.163 32.0 5218 322 3221 322.2 3223 32.24 323 324 324.1 32.4.2 324.38 32.4.4 ‘schedule and where practical completion has not been achieved Give notice of cancellation in terms of 38.1.4 oF 38.1.6 ADJUSTMENT TO THE CONTRACT VALUE “The principal agent shall determine the value of adjustments to the contract value according tothe bills of ‘quantiiestlump sum document, Where items of additional work are required the principal agent and the Contractor may agree on the adjustment before the commencement of such work ‘Adjustment to the contract value resulting from a contract instruction shall be determined as follows: Items of additional work of similar character and executed under similar conditions shall be priced atthe rates in te bills of quantitiesitump sum document Items of additional work not of a simile character or not executed under similar conditions shall be priced, where applicable, at rates based on those inthe bills of quantities/lump sum document and adjusted to suit the changed circumstances Where 32.2.1 and 32.2.2 cannot be used lo determine the value of additional work, such work shall be priced atnew rates that take into accountthe labour, engineering, drawings, material, transport andplant necessary for executing the work plus an allowance of ten per cent (10%) markup thereon Items of work omitted shall be valuad atthe rates in the bills of quantities/lump sum document, bul ‘wfiere the omission of such work varies the circumstances in which the remaining work is carried out, the value of the remaining work shall be determined by the method in terms of $2.2.2 Where work has been identified in the bills of quantitiesilump sum document as provisional, the principal agent shall omit the value thereof [rom the contract value and the work as executed shall be valued in terms (01 32.2 and added to the contract value Where the contractor hes paid charges for items that are not included inthe bills of quantities/lump sum document, the actual amounts paid by the contractor plus @ten per cent (10%) markup shall be added tothe ‘contract value forthe following: ‘Charges in terms of 7.1 ‘The costof opening up and testing in terms of 17.1.Sand 17.1.6, provided thatthe contractor shall bear tne cost thereat should the test show that the work is not according to the contract documents The cost of insurance in terms of 12.3 subject to. 410 The cost of suppor insurance in terms of 11.2 325 Where the contractor hasincurred expanse and loss arising rom a circumstance for which provision was nol required inthe contract sum and for which reasonable compensationhss not been madein terms of 32.2 and Principal Busing Agrorment Page 20281 2252 3253 3254 2285 2256 32.8.7 326 32.6.1 32.6.2 32.63 27 328 32.9) 32.10 32.1 32.12 32.13) 32.44 92.15 33.0 33.1 33.14 32.12, the contractor shall provide details of such an expense and loss to the principal agent in terms of 32.6. Such circumstances are: ‘The issue of # contract instruction Failure to issue or the late issue of 3 contract instruction following a request from he contractor Nondisclosure of changes made to the provisions of JBCC stancard documentation in terms of 3.10 Expense and loss caused by a direct contractor in terms of 22.0, Default by the employer or his agents ‘Suspension or cancellation of a selected or nominated subcontract due to defauit by the employer or his agents Default or insolvency of a nominated subcontractor ‘Tne contractor shall notify the prinefpal agent within forty (40) working days from becoming aware or from uwhien he ought reasonably to have became aware of such expense and loss in terms of 32.5 failing which no ‘compensation will be made. Where such notification has been giver: The contractor shall submit deals of the expense and loss once these can be quantified ‘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 The cleim shall be deemed to have been refused where the principal agent fails to make such an assessment “The principal agent shall omitthe nominated and selected subcontract amounts from the contract value and determine the amounts as the final account value of the respective subcontract works to be added to the contract value ‘The principal agent shall prorate the contractor's attendance and profit on the nominated and selected subcontracts in the contract sum to the value of each subcontract in terms of 32.7 excluding any allowance for CPAP ‘The principal agent shall omit budgetary allowances and any other monetary provisions from the contract value and determine the value of work related thereto in terms of 32.0 to be added to the contract value ‘The principal 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 ‘The principal agent shall prorate the contractor's allowances for overheads and profit on prime cost amounts in the contract sum to the value of each item in terms of 32.70 ‘The preliminaries amounts inthe bills of quantities/iump sum document shall be paid andadjustedin terms of the JECC Preliminaries alternatives selected by the contractor and stated in the schedule Unless otherwise stated the contract value shall be adjusted according to CPAP using the information stated inthe schedule ‘Where 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 ‘The principal agent shall rectify all identifies discrepancies, errors in description or quantity, or omission of items from the contract documents. Such rectification shall be treated as an adjusiment to the contract value where there is a monetary implication RECOVERY OF EXPENSE AND LOSS ‘The principal agent shall issue @ recovery statement monthly to the employer and contractor simultaneously wth the payment certificate. Explanatory documentation as may be necessary to support the Calculation of amounts stated shall accompany the recovery statement. The principal agent shall show on the recovery statement amounts due to the employer for, Penalties levied in terms of 30.0, Princip! Buiting Agreement Page 21 €33.4.2 33.13 aa 33.15 2346 3347 39.2 33.21 3322 93.28 3324 33.25 3326 33.27 33.28 33.3 33.3.1 33.32 33.83 33.4 235 336 34.0 3a Default interest in terms of 31.12 Expense ang loss in terms of 33.2 and amounts due to the contractor fr Compensatory interest in terms of 31.10 Default interest in terms of 31.11 Damages in terms of 38.5.6 Advance payments in terms of 14.5 “The employer may recover expense and loss incurred or to be incurred resulting from: The employer paying charges or effecting insurance upon the contractor's default in terms of 7.1 oF 123 Work executed by other parties in terms of 17.4 ‘Cancellation of a nominated subcontract in terms of 20.10 Recoupment of advance payments in terms of 14.5 ‘The contractor not paying the amount due to the employer in terms of 31.12 ‘The agreement being cancelled in terms of 36.0 Default by the contractor if not less than seven (7) calendar days notice detailing such default has been given before the issue of the next recovery statement to allow the contractor the opportunity to remedy such default ‘Amounts paid direct to nominated subcontractors or selected subcontractors in terms of 20.6 or 216 ‘The principal agent shall include an amount due in terms of the recovery statement in the accompanying payment certificate, Where the payment certificate reflects an amount in favour of the employer and the ‘contractor has not paid in terms of 31.12, such amount may be recovered by the employer from any or all of the following in no specific sequence: ‘Subsequent payment certificates: Security in terms of 14.0 The contractor as a debt \Where the employer decides to recover an amount due in terms of 33.3 from a payment reduction applied in terms of 14.4.5, the employer shall notity 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 receiplof such a notice by the contractor, the employer may recover such an amount from the security Where the employer decides to recover an amount due in terms of 33.3 from a construction guarantee or advance payment guarantee hold 2s security, the amployer shall issue a written demand to the contractor in terms of such guarantees Where a provisional sequestration or pravisional liquidation order has been granted or where an order has been granted which commences sequestration, quidation, bankruptcy, receivership, winding-up or any similar effect against the contractor or this agreement is cancelled in terms of 36.0, the employer may issue & demand to the guarantor in terms of the construction guarantee or advance payment guarantee held 2s security FINAL ACCOUNT AND FINAL PAYMENT ‘The contractor shall cooperate with and assist the principal agent in the preperation of the final account bytimeously supplying all relevantddocuments on request, The principal agent shall submit the final account to the contractor within: Principal Busing Agreement Page 2234.11% ninety (90) working days of the date of practical completion 341.22 No clause 34.2 Noclause 34.3 The contractor shall give written acceptance of the final account within fory-five (45) working days of receipt thereof. On acceptance or should the contractor not record an objection to the final account with ‘good reason within such period, the principal agent shall issue the final payment cortificate in terms of 34.5 34.4 Should the contractor dispute the correctness of the final account and such dispule not be resolved within the fony-five (45) working days interms of 34.3, orsuch an extended period as the principal agent may allow ‘ona request irom the contractor, the final payment certificate in terms of such final account shall be issued interms of 34.5 34.5 The final payment certificate shail be issued within seven (7) calendar days to the contractor in lerms of 34.3 oF 34.4, Notwithstanding the foregoing such a final payment certificate shall not be issued before the ‘issue ofthe certificate of final completion other than where cancellation occurs in terms of 36.0, 37.0, 38.0, 0r 39.0. The final payment certificate shall be issued by: 345.1% The principal agent 345.22 No clause 34.6 The amount certified in the final payment certificate shall separately include: 34.6.1 The gross amount of te final aecount 34.6.2 The amounts previously carified in terms of 31.4.4 and 31.4.2 34.7 The following adjustments shall be made to the net amount certified in terms of 34.6 and shall separately include: 347.41 No clause 347.2 The amounts due to the employer or contractor in the final recovery statement in terms of 33.1 excluding interest amounts in terms of 34,7.4 34.7.3 Tax on the net total of the amounts in terms of 34.7.1 and 34.7.2 3474 Interest amounts included in the final recovery statement in terms of 33.1 34.8 The principal agent shall certify one hundred per cent (100%) of the amount ofthe final account in the final payment certificate where security as a fixed construction guarantee in terms of 14.4 has been selected (or where payment reduction has been applied in terms of 14.7.1 34.9% The principal agent shall concurrently with the issue of the final payment certificate issue a statementto the employer and the contractor showing the total amount of tax certified 34.10# The employer shall pay to the contractor the amount certified for payment inthe final payment certificate within seven (7) calendar days ofthe date of issue of the final payment certificate subject to the contractor giving the employer a tax invoice for the amount due 34.11 Subject to 25.4 the omployer shall pay the contractor compensatory interest on the net amount certified in the final payment certificate. The principal agent shall calculate such compensation at the ruling rate of interest compounded monthly fram the date of practical completion up to and including the date on which payments due to the contractor. Such compensatory interest shall be included in the recovery statement Interms of 33.0 34.12 Where the contractor does not receive payment ofthe amount due in the final payment certificate by the due date in terms of 34.10, the employer shiall be liable for default interest on the amount. The interest shall be calculated from the due date for payment up to and including the date on which the contractor receives payment. The amount due and the interes! thereon shall be recoverable by the contractor from the employer ‘as. debt. Such interest shall be calculated at the rate: 34.12.1# Of one hundred and sixty por cant of the interest 34122% — Noclause Prmeipal Building Agreement aWhere the final payment certificate reflects an amount in favour of the employer, the contractor shall pay the amount certified within seven (7) calendar days of the date for issue of the final payment certificate subject to the employer giving the contractor a tax invoice for the amount due 34.14 Where such an amount certified in terms of 34.10 or 34.13 has not been paid by the relevant party, the defaulting party shall be liabie for defauitinterest in terms of 34.12 mutatis mutandis. The amount due and the interest thereon shall be recoverable as a debt 35.0 PAYMENT TO OTHER PARTIES 35.1 The principal agent shall issue special payment certification to other parties with copies to the contractor where the employer: 35.14 Engages other parties to execute work in terms of 17.4 oF 36.5.5 35.1.2 Elects to pay a nominated or selected subcontractor direct in terms of 20.6 oF 21.6 35.2 The employer may recover expense or loss resulting fram such payments in terms of 33.2 CANCELLATION 36.0 CANCELLATION BY EMPLOYER - CONTRACTOR'S DEFAULT 36.1% The employer may cance! this agreement where the contractor: 36.1.1 Falls to comply in terms of 15.1 oF 15.3 36.1.2 Refuses to comply with a contract instruction subject to 17.2 36.2! Where the employer considers cancelling this agreement, the principal agent shall be instructed to notify 36.35 36.4 36.5 36.5.1 36.5.2 36.5.3 36.5.4 36.5.5 36.5.6 36.5.7 the contractor of such defoultin terms of 36.1, The issuing of such a notice shall be without prejudice to any rights that the employer may have ‘The principal agent may give notice of cancellation should the contractor remain in default for ten (10) working days after the date of issue of such a notice of default No clsuse Where this agreement is cancelled in terms of 36.0 the following shall apply The employment of the contractor shall be cancelled and execution of the works shall cease. The contractor shail vacate the works and the site subject o the provisions of 36.5.6. The contractor shall remain responsible for the works in terms of 8.1 until passession is relinquished lo the employer The principal agent shall forthwith compile @ report an the status ofthe portion of the works executed by the contractor and shall issue such a epor to the employer and the contractor ‘On completion of the status report the principal agent shall commence forthwith and complete a final account within a reasonable time ‘The contractor shail not be relieved of any of his labilties concerning that portion of the works executed by the contractor ‘The employer may employ other parties to safeguard the works, complete the outstanding work and toreciify defects in that portion of the works executed by the contractor. The costof warkthus carried ut shail be certified by the principal agent and paid directo such partes in terms of 35.0 The employer may use the contractor’s materials and goods, temporary buildings, plant and ‘machinery on the site for proceeding with the works When instructed by the principal agent, the contractor shall remove from the site his temporary buildings, plant, machinery and surplus materials and goods within such reasonable time as determined by he principal agent, in default of which the employer, without being responsible for any loss or damage, may have the same removed and sold. The nel profi or oss of such sales shall be for the account af the contractor Principal Bulaing Agreement Page 243658 36.59 36.5.10 97.33 37.3.4 3735 37.36 or seencibal agent shat issue, eet Payment cortiicates 359 aLeNtUM Of damagesin terms 430.5 8 has been deters ve the final accountin tea °186.5.3has been comptaicy The finay Where the employer Considers canceling this yor coment in terms of 37.4, the Principal agent shail be sincled fo notty the comtrare ofthe employer's intention «2 ‘cancel this agreement’ coneaeeuted bythe contac Defore cessation of vert Canestation shall ony take eres after the Completion thereor 5 outlon ofthe works sha algneg 2 €Ontractor shal remain “sponsible for tha works in toons of 8.1 until possession it ‘slinguished tothe employ sin linauishing possession ine Works, the contractor Shall remove from the site his temporary uildings, plant ana ‘machinery without delay ne Principal agent shay forthwith commence and Complete the final account within Dinety (90) ng days ofc rt ine SMPlayer shal bs tbe (oahe Contractor tor the cost of materials and goods including those contre’ beore such cancenei” orate 228 Contractor is Boe yee cSePt and make paymane ose Contractor shal daliver suck msterials and goods is ne employer in good orde: 7 Principal agent shay 0 C8 the value of the “erkexecvted and materials and goods {or Payment unt the scone ‘he final payment contccne The latent defects “ably period shalt end in terms of 27,22 374 Neither party shat be able or any expense ang {088 resulting rom this fanceliation cher than the abilities interms of 37.3,