Model agreement - The NHBRC

Guidance notes and flow charts are available for the ECSC.
5.2 The FIDIC Short Form of Contract (First edition)
The FIDIC (French initials for International Federation of Consulting Engineers) Short Form of Contract is
recommended for engineering and building work that is relatively straightforward, fairly simple or of short
duration where there is no need for specialist sub-contracts.
The parties to the contract are the employer and the contractor. The Short Form requires the employer to
nominate an authorised spokesman.
Employer liabilities provided for in the contract include:
any operation of the forces of nature affecting the site and / or works, which was foreseeable or against
which an experienced contractor could not reasonably have been expected to take precautions;
physical obstructions or physical conditions other than climatic conditions encountered on the site
during the performance of the works, which obstructions or conditions were not reasonably foreseeable
by an experienced contractor and which the contractor immediately notified to the employer; and
damage which is an unavoidable result of the contractor’s obligations to execute the works and to
remedy defects.
Performance securities and retention of monies due to the contractor until the works are completed are provided
for.
The contract makes provision for design by the contractor, should this be required.
Notes for Guidance are included at the back of the Short Form of Contract.
5.3 BIFSA House Building and Small Contracts Agreement (where no agent is employed)
The BIFSA House Building Contract has been drafted specifically to suit the needs of the South African housing
market.
The contract is based on the assumption that the contractor is not responsible for the design of the house, the
preparation of plans and specifications or the obtaining of approvals from the local authority. The contract does,
however, make provision for the contractor to engage an engineer to make the necessary engineering inputs.
The contract requires that:
the employer furnish the contractor a banker’s guarantee or other acceptable security for not less than
the contract sum; and
the contractor furnish a performance guarantee in an amount of 10% of the contract sum.
The contract does make provision for the retention of monies due to the contractor.
6 Some practical considerations regarding the foundations
Frequently the price of the house is agreed with the contractor before a geotechnical investigation has been
undertaken to classify the house and determine the foundation requirements. Where this is the case, the
contractor should price for normal foundations and agree a change in contract price when the foundation
requirements are known.
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