Agribusiness Development Agencyvolume 3

Agribusiness Development AgencyVolume 3

Thokazi Feedlot - NongomaContract

VOLUME 3

CONTRACT

CONTENTS

ItemHeading Colour Page

Part 1Agreements and Contract Data-3-3

C1.2Contract Data

Part 2Pricing Data-3-12

C2.1Pricing Instructions

Part 3Scope of Work-3-18

C3Scope of Work

Part 4Site Information-3-73

C4Site Information

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Agribusiness Development AgencyVolume 3

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PART 1 – AGREEMENTS AND CONTRACT DATA

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Agribusiness Development AgencyVolume 3

ThokaziFeedlot - NongomaContract

C1.2 - CONTRACT DATA

CONTENTS

ItemDescription Page

1. Conditions of Contract3-5

1. Amplifications of the General Conditions of Contract3-5

1. Additional Special Conditions or Amendments to the General

Conditions of Contract3-8

1. Priority of Documents3-11

1. CONDITIONS OF CONTRACT

The conditions of contract are the General Conditions of Contract for Construction Works (2st edition 2010) published by the South African Institute of Civil Engineering, Private Bag x 200, Halfway House, 1685, tel:0118055947.

The General Conditions of Contract make several references to the Contract Data. The Contract Data shall have precedence in the interpretation of any ambiguity or inconsistency between it and the General Conditions of Contract.

Where applicable, items of data given here below are cross-referenced to the clause or sub clause in the General Conditions of Contract to which it applies.

1. AMPLIFICATIONS OF THE GENERAL CONDITIONS OF CONTRACT

2.1General

The following clauses amplify the General Conditions of Contract and highlight areas in this document that require specific attention.

2.2Data Provided by the Employer

2.2.1Special non-working days (1.1.1.12 & 5.8.1)

The special non-working days are statutory holidays.

2.2.2Delivery of Notices to the Employer (1.2)

The Employer’s address for receipt of communications is:

Postal:Private Bag X9059

Telephone:033 – 355 9172

2.2.3Engineer (1.1.15)

“Engineer” means any Director, Associate or Professional Engineer appointed by a Director of EVN Africa Consulting Services (Pty) Ltd (EVN) to fulfill the functions of the Engineer in terms of the Contract Data.

2.2.4Delivery of Notice to Engineer (1.2)

The Engineer’s address for receipt of communications is:

Postal :PO Box 13982, CASCADES, 3201

Telephone :033-347 2396

Facsimile :033-347 5466

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E-mail :

2.2.5Governing Law (1.3.2)

The governing law is the law of the Republic of South Africa.

2.2.6Information in respect of Employees (4.10.2)

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2.2.7Commencement of the Works (5.3.1)

The Contractor shall commence executing the Works within 7 days of the Commencement Date.

2.2.8Time for Practical Completion (5.5)

The whole of the Works shall be completed within 4 calendar months calculated from the Commencement Date.

2.2.9Program of the Works and Supporting Documents (5.6.1 & 5.6.2)

The Contractor shall deliver to the Engineer, within 10 days calculated from the Commencement Date, a realistic program in terms of Clause 5.6.1 and supporting documents in terms of Clause 5.6.2.

2.2.10Penalty for Delay (5.13.1)

The penalty for failure to complete each phase of the Works is R2000 per calendar day.

2.2.11Performance Guarantee (6.2.1)

The type of security required for the due performance of the Contract shall be restricted to one of the following:

Performance Guarantee of 10 (ten) percent of the Contract Sum, issued by a Commercial Bank registered in the Republic of South Africa,

or

Performance Guarantee of 10 (ten) percent of the Contract Sum, issued by an Insurance Company registered in terms of the Short-term Insurance Act (Act 53 of 1998).

Whenever a Joint Venture constitutes the contracting party (Contractor) to this Contract, the Performance Guarantee shall be issued on behalf of the Joint Venture.

2.2.12Daywork Schedule (6.5.1)

If work is to be executed on a daywork basis, the Contractor shall be paid for such work set out in the Daywork Schedule included in the Pricing Data.

2.2.13Information in respect of Construction Equipment

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2.2.14Special Risks Insurance (8.6.1.2)

A Coupon Policy for Special Risks is required.

2.2.15Liability Insurance (8.6.1.3)

The limit of indemnity for liability insurance required is R1000 000.00.

2.2.16Contract Price Adjustment (6.8.2)

Not applicable.

2.2.17Variation in Cost of Special Materials (6.8.3)

Price adjustments for variations in the costs of special materials are not permitted.

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2.2.18Percentage Limit on Materials (6.10.2)

The percentage limit on materials not yet built into the Permanent Works is 80 percent.

2.2.19Retention (6.10.3)

1. Retention shall comprise of a reduction in the amount payable to the Contractor.

2.The percentage retention on amounts due to the Contractor is 10percent.

3.The limit of retention money is 5 percent of the Contract Price.

2.2.20Retention Money Guarantee (6.10.3)

A Retention Money Guarantee is not permitted.

2.2.21Dispute Resolution by ad-hoc Adjudication (10.5.2)

Disputes are to be referred to mediation.

2.2.22Reference to Court (10.8)

Disputes are to be referred to Court for final settlement.

2.2.23Defects Liability Period (7.8)

The Defects Liability Period is 12 calendar months calculated from the date of the Certificate of Completion.

2.3Data Provided by the Contractor (when concluding the contract)

2.3.1Contractor (1.1.1.9)

To be provided when concluding the contract.

2.3.2Delivery of Notices to the Contractor (1.2.1)

The Contractor’s address for receipt of communication to be provided when concluding the contract (Postal, Telephone, Facsimile and email).

1. ADDITIONAL SPECIAL CONDITIONS OR AMENDMENTS TO THE GENERAL CONDITIONS OF CONTRACT

3.1General

The following clauses add to, vary or otherwise amend the General Conditions of Contract:

3.1.1Facilities for Others (4.8.2)

Not applicable.

3.1.2Program of the Works (5.6.2)

Add the following sub clause 5.6.2.8 to Clause 5.6.2:

“Failure on the part of the Contractor to deliver to the Engineer, the

• program of the Works in terms of Clause 5.6.1 and

• supporting documents in terms of Clause 5.6.2

within the period stated in the Contract Data, shall be sufficient cause for the Engineer to retain 25 percent of the value of the Permanent Works and General Items in assessment of amounts due to the Contractor until the Contractor has submitted aforementioned first Program of the Works and Supporting Documents”.

3.1.3Contractor’s Designs and Drawings (5.9.7)

Add to Clause 5.9.7 the following:

“All designs, calculations, drawings and operation and maintenance manuals shall be fully endorsed by a third party registered engineer, accomplished in such specific field of practice and the cost thereof shall be borne solely by the Contractor.

Once the alternative design has been approved, the Contractor shall indemnify and hold harmless the Engineer, the Employer, their agents and assigns, against all claims howsoever arising out of the said design, whether in contract or delict”.

3.1.4Suspension of the Works (5.11)

Add the following sub clause 5.11.3 to Clause 5.11:

“If the Contractor does not receive from the Employer the amount due under an Interim Payment Certificate within 28 days after expiry of the time stated in sub clause 6.10.4 within which payment is to be made (except for deductions in accordance with sub clauses 6.10.1.6 and 6.10.1.7), the Contractor may, after giving 14 days written notice to the Engineer, suspend the progress of the Works.

The Contractor’s action shall not prejudice his entitlements to a claim in terms of Clause 10 and to cancellation of the Contract in terms of Clause 9.3.

If the Contractor subsequently receives full payment of the amount due under such Interim Payment Certificate before giving a notice of cancellation of the Contract, the Contractor shall resume normal working as soon as is reasonably practicable.”

3.1.5Extension of Time Arising from Abnormal Rainfall (5.12.2.2)

Add the following to sub clause 5.12.2.2:

“The extension of time to be allowed due to abnormal rainfall shall be calculated separately for each calendar month or part thereof in accordance with the following formula:

Rw Rn

V=(Nw Nn)+()

x

V=Extension of time in calendar days for the calendar month under consideration

Nw=Actual number of days during the calendar month on which a rainfall of 10 mm or more has been recorded

Nn=Average number of days for the calendar month on which a rainfall of 10 mm or more has been recorded, as derived from existing rainfall records

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Rw=Actual recorded rainfall for the calendar month

Rn=Average rainfall for the calendar month, as derived from existing rainfall records

x=20

The rainfall records which shall be accepted for calculation purposes are:

(Based on records taken at the Rainfall Station: Mkuze No. 0375/037 7)

Rainfall Records
Month / Average rainfall (mm) / Average number of days on which rainfall of 10mm or more were recorded
January / 64 / 2.1
February / 88 / 2.7
March / 30 / 0.8
April / 28 / 1.0
May / 31 / 0.8
June / 9 / 0.3
July / 16 / 0.2
August / 28 / 0.6
September / 50 / 1.3
October / 77 / 2.4
November / 80 / 3.2
December / 77 / 1.6

The factor (Nw - Nn) shall be considered to represent a fair allowance for days during which rainfall exceeds 10 mm and the factor (Rw - Rn)/x shall be considered to represent a fair allowance for those days when rainfall does not exceed 10 mm but wet conditions prevent or disrupt work.

The total extension of time shall be the algebraic sum of all monthly totals for the contract period, but if the algebraic sum is negative the time for completion shall not be reduced due to subnormal rainfall. Extensions of time for a part of a month shall be calculated using pro rata values of Nn and Rn.”

3.1.6Guarantee (6.2.1)

Delete the contents of the first paragraph of Clause 6.2.1 and insert:

“Not required”

3.1.7Insurances (8.6)

Add the following paragraph to sub clause 8.6.6:

“The Engineer shall be empowered to withhold all payment certificates until the Contractor has complied with his obligations in terms of this Clause.”

3.1.8Claims Procedure (Clause 10)

In sub-clause 10.1.1.2 omit the words, “within 28 days” and replace with the words “as soon as possible but no later than 7 days”.

In sub-clause 10.1.1.2.1 and 10.1.1.3, 10.1.2, 10.1.4, 10.2.2 omit the words “28 days” and replace with the words “7 days”.

1. PRIORITY OF DOCUMENTS

The documents forming the Contract are to be taken as mutually explanatory of one another. For the purpose of interpretation, the priority of the documents shall be in accordance with the following sequence:

1the Form of Offer and Acceptance.

2amplifications of the General Conditions of Contract within the Contract Data.

3additional special conditions or amendments to the General Conditions of Contract within the Contract Data.

4the General Conditions of Contract.

5the Specifications, Drawings, Schedules and other documents forming part of the Contract (in that order) contained in the Scope of Work and the Site Information.

If any ambiguity or discrepancy is found in the documents, the Engineer shall issue any necessary clarification or instruction.

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