SOUTH AFRICAN INSTITUTION OF CIVIL ENGINEERING
GENERAL CONDITIONS OF CONTRACT FOR CONSTRUCTION WORKS
(SIMPLIFIED FORM) FIRST EDITION (2018)
1st Print
PRO FORMA FORMS
in accordance with
CORRECTIONS TO THE 1st PRINT, Version 2.0–April2018
DISCLAIMER
The South African Institution of Civil Engineering (SAICE) provides this document in good faith. However, once a copy has been downloaded by a user, SAICE has no longer control over it, and therefore does not accept any liability whatsoever for the downloaded copy of the document or for any of its components.
General Conditions of Contract for Construction Works (Simplified Form)
First Edition (2018)
PRO FORMAS
The General Conditions of Contract for Construction Works (Simplified Form) First Edition (2018) has been compiled on the basis that the following supplementary documentation in the format of pro formas, once completed by the party or parties as relevant, shall form part of the Contract.
Pro Forma Form of Offer and Acceptance
Pro Forma Contract Data
Pro Forma Performance Guarantee
Pro Forma Advance Payment Guarantee
PRO FORMA
FORM OF OFFER AND ACCEPTANCE
(Agreement)
Offer
The Employer, identified in the Acceptance signature block, has solicited offers to enter into a contract in respect of the following works:
The Tenderer, identified in the Offer signature block below, has examined the documents listed in the Tender Data and addenda thereto as listed in the Tender Schedules, and by submitting this Offer has accepted the Conditions of Tender.
By the representative of the Tenderer, deemed to be duly authorised, signing this part of this Form of Offer and Acceptance, the Tenderer offers to perform all of the obligations and liabilities of the Contractor under the Contract including compliance with all its terms and conditions according to their true intent and meaning for an amount to be determined in accordance with the Conditions of Contract identified in the Contract Data.
THE OFFERED TOTAL OF THE PRICES INCLUSIVE OF VALUE ADDED TAX IS
Rand (in words); R (in figures).
This Offer may be accepted by the Employer by signing the Acceptance part of this Form of Offer and Acceptance and returning one copy of this document to the Tenderer before the end of the period of validity stated in the Tender Data, whereupon the Tenderer becomes the party named as the Contractor in the Conditions of Contract identified in the Contract Data.
For the Tenderer:
Signature
Name
Capacity
Name and address of organisation:
Signature and name of witness:
Signature
Name
Date
Acceptance
By signing this part of this Form of Offer and Acceptance, the Employer identified below accepts the Tenderer’s Offer. In consideration thereof, the Employer shall pay the Contractor the amount due in accordance with the Conditions of Contract identified in the Contract Data. Acceptance of the Tenderer’s Offer shall form an agreement between the Employer and the Tenderer upon the terms and conditions contained in this Agreement and in the Contract that is the subject of this Agreement.
The terms of the contract are contained in:
Part 1Agreements and Contract Data, (which includes this Agreement)
Part 2Contract Pricing Data
Part 3Contract Scope of Work
Part 4Contract Site Information
and drawings and documents or parts thereof, which may be incorporated by reference into Parts 1 to 4 above.
Deviations from and amendments to the documents listed in the Tender Data and any addenda thereto listed in the Tender Schedules as well as any changes to the terms of the Offer agreed by the Tenderer and the Employer during this process of offer and acceptance, are contained in the Schedule of Deviations attached to and forming part of this Agreement. No amendments to or deviations from said documents are valid unless contained in this Schedule, which must be duly signed by the authorised representative(s) of both parties.
The Tenderer shall within the time stated in the Contract Data after receiving a completed copy of this Agreement, including the Schedule of Deviations (if any), contact the Employer’s Agent (whose details are given in the Contract Data) to arrange the delivery of any bonds, guarantees, proof of insurance and any other documentation to be provided in terms of the Conditions of Contract identified in the Contract Data at, or just after, the date this Agreement comes into effect. Failure to fulfil any of these obligations in accordance with those terms shall constitute a repudiation of this Agreement.
Notwithstanding anything contained herein, this Agreement comes into effect on the date when the Tenderer receives one fully completed original copy of this document, including the Schedule of Deviations (if any). Unless the Tenderer (now Contractor) within five days of the date of such receipt notifies the Employer, in writing, of any reason why he cannot accept the contents of this Agreement, this Agreement shall constitute a binding contract between the parties.
For the Employer:
Signature
Name
Capacity
Name and address of organisation:
Signature and name of witness:
Signature
Name
Date
Schedule of Deviations
Notes:
1.The extent of deviations from the tender documents issued by the Employer prior to the tender closing date is limited to those permitted in terms of the Conditions of Tender.
2.A Tenderer’s covering letter shall not be included in the final contract document. Should any matter in such, letter, which constitutes a deviation as aforesaid become the subject of agreements reached during the process of offer and acceptance, the outcome of such agreement shall be recorded here.
3.Any other matter arising from the process of offer and acceptance either as a confirmation, clarification or change to the tender documents and which it is agreed by the Parties becomes an obligation of the contract shall also be recorded here,
4.Any change or addition to the tender documents arising from the above agreements and recorded here, shall also be incorporated into the final draft of the Contract.
1.Subject
Details
2.Subject
Details
By the duly authorised representatives signing this Schedule of Deviations, the Employer and the Tenderer agree to and accept the foregoing Schedule of Deviations as the only deviations from and amendments to the documents listed in the Tender Data and addenda thereto as listed in the Tender Schedules, as well as any confirmation, clarification or change to the terms of the offer agreed by the Tenderer and the Employer during this process of offer and acceptance.
It is expressly agreed that no other matter whether in writing, oral communication or implied during the period between the issue of the tender documents and the receipt by the Tenderer of a completed signed copy of this Agreement shall have any meaning or effect in the contract between the parties arising from this Agreement.
For the Tenderer: / For the Employer:Signature
Name
Capacity
Name and address of organisation: / Name and address of organisation:
Witness Signature
Witness Name
Date
CONFIRMATION OF RECEIPT
The Tenderer, (now Contractor), identified in the Offer part of this Agreement hereby confirms receipt from the Employer, identified in the Acceptance part of this Agreement, of one fully completed original copy of this Agreement, including the Schedule of Deviations (if any) today:
the (day)
of(month)
(year)
at(place)
For the Contractor:
Signature
Name
Capacity
Signature and name of witness:
Signature
Name
PRO FORMA
CONTRACT DATA
NOTE: The words in italics are guidance notes and do not form part of the Contract Data.
CONTRACT DATA FOR ……………………………………………..The title of the Works
CONDITIONS OF CONTRACT
The General Conditions of Contract for Construction Works (Simplified Form) First Edition (2018) published by the South African Institution of Civil Engineering (SAICE), Private Bag X200, Halfway House, 1685, is applicable to this Contract and is obtainable from
FORM OF OFFER AND ACCEPTANCE
This Contract was brought about by the signed Form of Offer and Acceptance, the signed Schedule of Deviations and the signed Confirmation of Receipt.
CONTRACT-SPECIFIC DATA
The following contract-specific data, referring to the General Conditions of Contract for Construction Works (Simplified Form) First Edition (2018) are applicable to this Contract:
Clause 1.1.4:
The Defects Liability Period is ……………………………... A time, usually 12 months, from the certified date of Completion.
If there is no Defects Liability Period required, for instance for maintenance contracts, then state ……………. "Not required"
Clause 1.1.5:
The number of working days for achieving Completion is ………………Use only working days as the time unit measured from the Starting Date.
Clause 1.1.10:
The Non-Working Days are:
……………..……..…….. Usually Sundays,
and
………………………….. Usually also all statutory public holidays proclaimed in terms of the Public Holidays Act,
and
………………….…….. Usually also allAnnual Construction Industry Shutdown periods (as determined by the South African Bargaining Council for the Civil Engineering Industry (BCCEI), as published by the South African Forum of Civil Engineering Contractors (SAFCEC)).
Clause 1.2.1.1:
The name of the Employer is ………………………………………………………………………....
The legal name of the Employer.
The address of the Employer is ……………………………………………………………………...
The physical address, postal address, e-mail address and/or other legal addresses where the Employer will receive notices.
Clause 1.2.1.2:
The Employer’s authorised natural person is ………………………………………………….…
The name of the natural person who will fulfil the duties of the Employer.
Clause 1.2.1.3:
The name of the Employer's Agent is ……………………………………………………………..
The legal name of the Employer's Agent.
The address of the Employer's Agent is …………………………………………………………..
The physical address, postal address, e-mail address and/or other legal addresses where the Employer's Agent will receive notices.
Clause 3.1:
If there are no limitations on the functions of the Employer’s Agent, then:
There are nolimitations on the functions of the Employer’s Agent.
Or, if the Employer's Agent must get specific approval from the Employer to carry out any part of his functions or duties then:
The Employer's Agent shall obtain the specific prior written approval of the Employer before carrying out any of his functions or duties according to the following Clauses of the Conditions of Contract:
1.Clause ………………………………….... number, function or duty and if required, the financial or other limit applicable.
2.Further Clauses as required.
Please note that getting specific approval from the Employer will delay decision-making and this may increase the completion time and cost of the Works.
Clause 4.2.8:
The access and possession of the Site shall not be exclusive to the Contractor, but shall… be as specified in the Scope of Work, etc. – Only use if access and possession of the Site is not exclusive to the Contractor.
Clause 5.1.1.2:
The documentation required by the Employer from the Contractor before commencing with the Works is……………………………………………………………………………………………
Usually a Health and Safety Plan, security, insurance and, if an advance payment is to be made,an advance payment guarantee.
Clause 5.1.1.3:
The documentation to be obtained by the Employer’s Agent from the Employer and to be submitted to the Contractor before the Starting Date is: …………………………….…………….
Usually one or more permits required in terms of legislation (such as a Construction Work Permit in accordance with the Construction Regulations 2014, to be applied for by the Employer through his Construction Health and Safety Agent).
Clause 5.1.3.2:
The format of and information to be submitted in the programme are: …………………………..
Usually a Critical Path Method programme that breaks down the project into the order in which the components will be carried out, the time it will take to carry it out, the critical path, float and the Contractor’s time risk allowances.
Clause 5.3.1.1:
The requirements for achieving Completion include all the following to be fully completed to a state of readiness, fit for the intended purpose and fit for permanent occupation without danger or undue inconvenience to the Employer: ……………………………………………….…
State all the requirements for the Works to reach a state of readiness, fit for the intended purpose and occupation without danger or undue inconvenience to the Employer.
Clause 6.1.1.1:
The allowable securities are: ………………………………………………………..………………
State the securities that would be acceptable from the following:
(Indicate if Value Added Tax is excluded from or included in the agreed contract sum and the certified value of the Works.)
- Cash deposit of … % of the agreed contract sum.
- Fixed Performance Guarantee of … % of the agreed contract sum.
- Variable Performance Guarantee of … % and … % of the agreed contract sum.
- Retention of … % of the certified value of the Works.
- Cash deposit of … % of the agreed contract sum plus retention of … % of the certified value of the Works.
- Fixed Performance Guarantee of …% of the agreed contract sum plus retention of …% of the certified value of the Works.
- Variable Performance Guarantee of … % and … % of the agreed contract sum plus retention of …% of the certified value of the Works.
The limit of retention money is ... A monetary value usually decided in conjunction with the other securities to be provided. For financially stronger contractors the liability for the performance guarantee is usually a higher percentage with the limit of retention money at a lower amount.
Note: In the 2016 edition of the Standard for Infrastructure Procurement and Delivery Management published by National Treasury, in section 14.5.6, and also in Clause 4.4.4.4 of the CIDB 2015 SFU it is stated that: "Retention monies that are held shall not exceed 10%of any amount due to a contractor. Where guarantees of an insurance company or bank that are provided are equal to or greater than 10%of the contract price, the total amount of retention monies held shall not exceed 5% of the contract price."
Clause 6.1.1.2:
The advance payment will be … % of the agreed contract sum, repayable in equal amounts in the subsequent … number of payment certificates exceeding … % of the agreed contract sum. The advance payment usually amounts to 10% of the agreed contract sum and is repayable in 4 equal amounts once the payments made exceed 10% of the agreed contract sum.
Clause 6.1.1.3:
The pricing strategy is … Either Re-measurement or Fixed Price.
Clause 6.1.2:
The application of a Contract Price Adjustment Factor is/is not permitted.
If permitted then:
The value of the certificates issued shall be adjusted in accordance with the Contract Price Adjustment Schedule with the following values:
The indices for X and Y are the following as published by Statistics South Africa: (If indices published by a different organization are to be used, for example SEIFSA, then delete "Statistics South Africa" and replace by the applicable publishing organisation).
X is the index which shall be the . . . give the name of the relevant indexe.g.Consumer Price Index for each relevant month as published in the . . . give the name of the statistical publication where the index can be found e.g. Statistical Publication P0141, Table A, Geographic Indices, CPI per Province, for the relevant province where the Site is located, or an equivalent successor publication.
Y is the same index as X, but for the base month.
The base month is … month and year prior to the closing of the tender.
Clause 6.2.1.1:
The penalty for failing to complete the Works is R ... per calendar day (including VAT).
Clause 8.2:
The Employer will/will not take out principal controlled insurance.
If the Employer is to arrange the insurance, details of the insurance should be given to allow the Contractor to arrange further insurance he might require.
Clause 8.5.6:
The Contractor must/need not take out insurance.
If the Contractor must take out insurance, select what is required from the following:
- Contractor’s All Risk Insurance.
- Special risk insurance by Sasria Limited.
- Liability insurance with a limit of liability of R ….
- Ground support insurance.
State who is liable for deductibles and the subcontractor’s insurance and whether proof of payment is required and the consequences if the Contractor does not pay the premiums.
PRO FORMA
PERFORMANCE GUARANTEE
NOTE: The words in italics are guidance notes and do not form part of the Performance Guarantee.
GUARANTOR DETAILS AND DEFINITIONS
“Guarantor” means:......
Physical address: ......
“Employer” means: ......
“Contractor” means: ......
“Employer’s Agent” means: ......
“Works” means: ......
“Site” means:......
“Contract” means: The Agreement made in terms of the Form of Offer and Acceptance and such amendments or additions to the Contract as may be agreed in writing between the parties.
“Contract Sum” means: The accepted amount of R...... (inclusive of value added tax)
Amount in words: ......
“Guaranteed Sum” means: The maximum aggregate amount of R......
Amount in words: ......
Type of Performance Guarantee: Variable or Fixed
“Expiry Date” means: ...... insert date or any other later date set by
Contractor and/or Employer provided such instruction is received prior to the Expiry Date as indicated here.
CONTRACT DETAILS
Employer’s Agent issues: Interim Payment Certificates, Final Payment Certificate and the Completion Certificate of the Works as defined in the Contract.
- VARIABLE PERFORMANCE GUARANTEE
1.1Where a Variable Performance Guarantee has been selected, the Guarantor's liability shall be limited during the following periods to diminishing amounts of the Guaranteed Sum as follows:
1.1.1From and including the date of signing the Performance Guarantee up to and including the date of the interim payment certificate certifying, for the first time, more than 50% of the Contract Sum:
R ......
(Amount in words ...... )
1.1.2From the day following the date of the said interim payment certificate up to and including the Expiry Date, or the date of issue by the Employer's Agent of the Certificate of Completion of the Works, whichever occurs first:
R......
(Amount in words ...... )
1.2The Employer's Agent and/or the Employer shall advise the Guarantor in writing of the date on which the interim payment certificate certifying, for the first time, more than 50% of the Contract Sum, has been issued and the date on which the Certificate of Completion of the Works has been issued.