Lacamorra Trading (Pty) Ltd

E1116 Masosobane Section

Phokeng
0335

c: 061 473 8726 | f: 086 234 1317

e: omolose@gmail.com
obakeng.molose@lacamorragroup.co.za

LACAMORRA-ROB-CW-P-004

05 December 2023
O MOKOTEDI ENTERPRICE PTY LTD

Contact No: 083 949 7154

Attention: Mr Obakeng Mokotedi
Email: obakengmokotedi22@gmail.com

Subcontract order number LACAMORRA-ROB-JB-002 Letter of Appointment for Excavations.

1. We are pleased to inform you of your appointment as a Domestic Subcontractor for supply
and installation of bedding and blanket including the remedy defects.

2. The Subcontract award amount is R 135 000 subject to the provisions of the Subcontract.

3. This appointment is subject to your company entering into a Subcontract Agreement with
Lacamorra Trading (Pty) Ltd (hereinafter referred to as the “Contractor”), wherein the terms
and conditions of the relationship between the Parties shall be contained. You assume the
same liabilities for your work as are imposed upon us in terms of the main contract. The
preamble and the main contract conditions are available for inspection. You will be deemed
to have satisfied yourself with regards to these amended conditions and to have ascertained
local conditions on site.

4. The main contract conditions are the General Conditions of Contract for Construction Works
(2015) 3rd edition, published by South African the Institution of Civil engineering.

5. The Subcontract commencement date is to be confirmed. The work is to be carried out under
our direction and to the entire satisfaction of the Contractor.

DIRECTOR: IO MOLOSE
6. All previous correspondence and/or communications (either verbal or written) that have
taken place in connection with the Works shall be deemed to be null and void and of no force
or effect and are replaced by the terms and conditions of this letter, all of which constitute
the only terms and conditions which will be recognized in connection with the Works.

7. Notwithstanding the signature date of the aforesaid Subcontract Agreement, it should be

noted that you may be required to commence with the works imminently.

8. Approval of your SHE plans, risk assessments, competency of employees and equipment,
method statements, Project Quality Management Plan, completion of safety inductions,
medical examinations and successful screening is a condition before you may enter the work
site to commence with the Works.

9. Kindly sign and initial all pages of this letter and return it within 3 days working days from the
date of this letter together with:

a. Company registration documents

b. CIDB registration

c. Directors/owners/members ID’s

d. Proof of address for the company

e. Valid SARS Tax Clearance Certificate

f. Letter of Good Standing (COIDA)

g. Current UIF registration certificate

h. Proof of a valid bank account (cancelled cheque / official, valid letter from the bank)

i. BBBEE Certificate

j. Health and Safety Plan

k. Company Profile

a. Proof of the Subcontractor’s force number or a confirmation letter from the

Department of Military Veterans if applicable

b. Proof from a medical practitioner of the Subcontractor’s disabilities if applicable

DIRECTOR: IO MOLOSE
 c. Proof of residence if applicable

10. Please note that failure to provide any of the aforesaid documents to the Contractor as
required, may render your appointment invalid. No payment will be made pending receipt of
the above documents. We reserve the right to cancel the Subcontract pending failure by you
to produce the documents referred to above.

11. Your appointment is subject to the Conditions of Appointment detailed below and the signed
acceptance thereof.

12. We look forward to further engagements with you and to a cooperative and mutually
prosperous relationship going forward.

Regards

Matome Mohlabeng

Project Manager

_________________________

Conditions of Appointment

1. Subcontract time for completion

a. Award date: 08 January 2024

b. Establishment on site: 10 January 2024

c. Commencement of works: 12 January 2024

d. Completion of works: 08 March 2024

e. Defects period: 365 days after completion

DIRECTOR: IO MOLOSE
2. Compliance with all regulations, standards, codes and specifications including but not limited
to:

a. The Main Contract Conditions (available on request) including Client Policies.

b. The Local Government Ordinance as amended and the municipal by-laws and any
special requirements of the local supply authority.

c. Compliance with Government Legislation and the Government laws of the Republic
of South Africa.

d. Occupational Health and Safety Act 1993, (act 85 of 1993)

e. Protection of Personal information Act (POPIA) no 4. Of 2013

f. All applicable environmental legislation.

g. All drawings and related project specifications.

3. Payment terms

a. Subcontractor shall submit an interim application for payment by the 10th of the
month. Said application shall clearly indicate the total sum claimed for the month and
the total cumulative amount claimed to date.

b. At the end of the month (no later than the 25th). The Subcontractor shall submit his
final claim for the month. This claim shall be reviewed and assessed by the
Contractor’s quantity surveyor. The subcontractor’s invoice shall only be submitted
once consensus has been reached between representatives from the Contractor and
Subcontractor in terms of the agreed assessment. Payment will be processed 7 days
after receipt of invoice.

4. New rates procedure if applicable

The Value of new rate shall be calculated by the Contractor in accordance to the following
provisions:

a. Where work is of a comparable type and carried out under similar conditions to
work priced it shall be valued at such rates or prices including General Items
contained therein should be applicable.

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 b. Where work is not of a comparable type or is not carried out under similar
conditions, the rates or prices shall be used as the basis for valuation.

c. Where work cannot reasonably be valued in accordance with Clauses (a) or (b)in this
contract, the value result from all expenditure, including profit essential for
carrying out the work shall be concluded after due consultation by the
Contractor with the Engineer.

5. Health and Safety

a. Subcontractor is to comply with the requirements of the Occupational Health and

Safety Act 1993, (act 85 of 1993)

b. A detailed method statement and risk assessment is required prior to works

commencement.

c. All required Personal Protective Equipment shall be for the responsibility and cost of
the subcontractor (hard hat, overalls/reflector vest, safety boots, safety harnesses,
Knee-guards, Safety goggles and life lines).

d. The Subcontractor is responsible for providing CV’s of staff.

e. Prior to Commencement of their works the Subcontractor shall provide a detailed OHS
File.

6. Rates included in the Subcontract price

a. All prices and rates entered in the Bill of Quantities must be excluding Value
Added Tax (VAT). VAT will be added last on the summary page of the Bill of
Quantities.

b. The prices and rates in these Bills of Quantities are fully inclusive prices for the
work described under the items. Such prices and rates cover all costs and
expenses that may be required in and for the execution of the work described
in accordance with the provisions of the Scope of Work, and shall cover the
cost of all general risks, liabilities, and obligations set forth, as well as overhead
charges and profit. These prices will be used as a basis for assessment of
payment for additional work that may have to be carried out.

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 c. All rates include inter alia

i. All Labour costs including but not limited to, basic salary, payroll burdens,
bonus payments, subsistence, overtime and shift premiums necessary for the
proper performance of the Subcontract Works and all other payments made
under international, national or local agreements and all other costs
associated with the use of labour.

ii. All costs associated with the employment of personnel at site including
temporary accommodation, travel and home leave if applicable.

iii. All construction equipment costs including but not limited to mobilisation,
demobilisation, maintenance, fuels and oils, consumables, permits, licences,
taxes and all other costs associated with the use of equipment.

iv. Direct Site Supervision

v. Offsite Preparation

vi. Handling and double handling of materials on site

vii. Measures for reasonably expected temperature and weather conditions

viii. Small tools and the like.

ix. Provision of all other equipment and materials and all costs in connection
therewith

x. Protection of the permanent and temporary works

xi. Checking of all dimensions, clearances and measurements on site including

notification of any error.

xii. Interface, liaison and scheduling co-operation with other Subcontractors on

site.

xiii. QA/QC, safety, environmental compliance(Including The Safety File).

7. Retention

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 a. The retention percentage is 10% of the subcontract amount excluding Value Added
Tax. The amount retained is halved in the assessment made at completion of the
whole of the works. The amount retained remains at this amount until the defects
certificate is issued.

8. Penalties

a. Penalties for late completion shall be calculated at R 3,000.00 per calendar day.

9. Measurement of the works

a. The final value is subject to re-measurement of quantities against the tendered rates
contained in the attached BOQ.

b. Quantities shall be based on net measurements of work calculated in accordance

with the relevant provisions of COLTO 1998 Edition for Road and Bridgework for
State Road Authorities.

10. Contract Price Adjustment

a. Not applicable. All rates are fixed and firm for the duration of the contract and shall
not be adjusted.

11. Insurance

a. Subcontractor to provide proof of relevant insurance cover.

12. Quality

a. Subcontractor is responsible for providing all relevant quality documentation

including testing and providing necessary test results.

13. The Subcontractor ( O MOKTEDI (PTY) LTD ) is responsible for the following:

a. Providing all necessary tools, plant and supervision required to complete the works.

b. Installation of works as detailed in the Construction drawings.

c. Provide all necessary Certificates/guarantees.

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 d. Carrying out safety inspections.

e. Ensuring that materials delivered to site are fully compliant.

f. Securing all materials including protecting against loss/theft.

g. Transporting the materials from the laydown/storage area to the works.

h. Reducing wastage. The Subcontractor shall cover the cost of any damaged bricks. No
claims for additional monies shall be entertained.

i. Ensuring that they do not pack sub-standard bricks.

j. Securing Materials including against Loss/Theft.

General

k. Subcontractor is responsible for daily transport, accommodation and meals of all

personnel.

14. The Contractor (Lacamorra) is responsible for the following:

General

a. Provide water and electricity.

b. Lacamorra Trading shall avail a lockable storage container to allow the Subcontractor
to store his tools.

c. You are required to bring your own machinery.

15. Wastage allowances on free issue materials

a. Not Applicable.

16. Additional Work

a. The Contractor may at any time issue an instruction to the Subcontractor regarding
the execution of additional works. The Subcontractor shall forthwith comply with such
instruction. All such instructions shall be in writing.

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 b. Prices for additional works must be submitted for assessment to the Contractor and
shall be agreed upon prior to the commencement of such works.

c. In the event that the Subcontractor carries out any additional works without receiving
the necessary approval of costs, the Contractor shall carry out his own assessment
and pay the Subcontractor based on this assessment.

17. Dayworks/Standing time

a. Under no circumstance will payment against day work rates be tolerated. The
Subcontractor acknowledges that the rates included in this Subcontract include the
necessary allowances for reasonably expected weather conditions. The Subcontractor
agrees that this includes for down time due to rain. As such, no standing time shall be
paid to the Subcontractor for non-productive time due to rain delays.

18. Programme requirements

a. The Subcontractor is to adhere to all programme requirements communicated by

the Contractor.

b. Where the Subcontractor fails to achieve and maintain reasonable progress in

accordance with the Programme within five working days of a written instruction to
do so, the Contractor may amend the extent of the Subcontract Works and employ
others to perform a portion of the Subcontract Work in order that the Programme is
maintained. The Subcontractor will have no recourse against the Contractor if such
failure is due to its own fault. If the Contractor incurs additional costs, the
Subcontractor shall pay these costs to the Contractor, in addition to delay damages
(if any).

19. Default and Termination

a. Upon the occurrence of a default, the Contractor may give the Subcontractor notice
in writing to remedy the default within three (3) Days. If such default continues for
three (3) Days after such notice, the Contractor may terminate the employment of
the Subcontractor.

b. Should the default be incapable of remedy within such specified period, and the
Subcontractor can demonstrate that it has taken reasonable steps to remedy the

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 default, the Contractor may at its discretion agree to grant the Subcontractor further
remedial time or terminate the Subcontract.

c. Clause 19 shall apply if the Subcontractor:

i. Fails to commence the Subcontract Works on the scheduled date;

ii. Without reasonable cause wholly suspends the Subcontract Works before
completion;

iii. Fails to proceed with the Subcontract Works with reasonable skill, diligence
and expedition;

iv. Refuses or to a substantial degree persistently neglects after notice in writing

from the Contractor to remove defective work or improper materials;

v. Fails to pay employed labour timeously.

vi. Has failed to proceed with the Works in accordance with the approved
programme

vii. Has failed to remove Plant or materials from the Site, or to demolish and
redo work, within fourteen (14) days after receiving from the Contractor.

20. Maintenance/Repairing of defects

a. The Contractor shall notify the Subcontractor in writing of any defects in the
Subcontract Work and within 5 working days of such notification, the Subcontractor
shall make good at his own expense those defects which are due to faulty
workmanship or a failure of the Subcontractor to comply with his obligations under
this Subcontract.

b. The defects liability period in respect of the Subcontract Works is stated in clause
1.1.1.13 and shall be calculated from the Time of Completion of the Subcontract

Works, or dates of completion of notified defects.

SUBCONTRACTOR’S ACCEPTANCE

DIRECTOR: IO MOLOSE
I acknowledge and accept the terms and conditions of this appointment:

Date
____________________________________________________

Signature
____________________________________________________

Name & Surname ____________________________________________________

Designation
____________________________________________________

Duly authorized for and on behalf of ____________________________________________________

DIRECTOR: IO MOLOSE
Attached: Annexure A Bill of Quantities

ITEM NO DESCRIPTION UNIT QUANTITY RATE AMOUNT

2.2 EXCAVATION

(a) Excavate in all

materials for
trenches, backfill,
compact, and dispose
of surplus/ unsuitable
material, for pipes:
400 mm for total
trench depth:

2.2.1 a) up to 1,5 m deep m³ 3000,0 R 45,00 R 135 000

2.2.2 b) over 1,5 m and up m³ Rate only R 50,00

to 2,0 m deep

2.2.3 c) over 2, m and up to m³ Rate only R 65,00

3,0 m deep

(b) Extra-over items

8.3.2(a) for

excavation in:

2.2.4 Intermediate m³ Rate only R 65,00

excavation

2.2.5 Hard rock excavation m³ Rate only R 230,00

2.2.6 Excavate and dispose m³ Rate only R 30,00

of unsuitable material
from trench bottom
(Provisional)

2.3 EXCAVATION.
ANCILLARIES

2.3.1 a) from other m³ Rate only R 32,00

necessary
excavations on site

2.3.2 b) by importation from m³ Rate only R 40,00

designated borrow
pits

2.3.3 c) by importation from m³ Rate only R 90,00

commercial or off-site
sources selected by
the Engineer

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DIRECTOR: IO MOLOSE