Model agreement - The NHBRC

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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. 4
Appendix A: Basic contract where parties contract in terms of common law The attached documents satisfy the requirements of the Act and permit the parties to contract in terms of common law. This approach is, however, not recommended. 5
Page 1 and 2: National Home Builders Registration
Page 3: # Title of proforma document Commen
Page 7 and 8: 1. Description of the works SCOPE O
Page 9 and 10: Item Date by which it will be suppl
Page 11 and 12: CONTRACT FOR THE CONSTRUCTION OF A
Page 13 and 14: Agreement comes into effect. Failur
Page 15 and 16: Description of the works ………
Page 17 and 18: The Adjudicator is Name ………
Page 19 and 20: C1.2 CONTRACT DATA (for use with th
Page 21 and 22: 15.3 Arbitration The Rules are the
Page 23 and 24: 11 Masonry to top of windows R R R
Page 25 and 26: Title Date or revision Available SA
Page 27: PART 4 : SITE INFORMATION Provide i

Model agreement - The NHBRC

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