Contracts - Rights, Responsibilities & Risks

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For uniformity and standardization, the cidb recommends the use of only 4 forms of contract for SA construction. These are GCC, JBCC, FIDIC and NEC

A limited number of contracts used by the industry minimizes wastage and reduces the high cost of tendering, which contractors face when different clients use different forms of contracts.

It is in the best interest of contractors to get familiar with the nature of each of the 4 recommended forms of contracts and to know where they are applicable.

A contract stipulates the rights, responsibilities and risks of the parties to a contract. Contractors often fall foul of the law because of limited understanding of their contractual obligations in a project. Contractors are better equipped to enforce their contractual rights if they understand what those rights are. One such right is the right to get paid for work done and to impose penalties on clients who pay invoices late.

The Minister of Public Works Minister Thulas Nxesi has published draft regulations on delayed payments in Government Gazetter 38822 of 29 May, 2015. When enacted the regulations will make payment of interest on delayed payments automatic. 

Click here to download cidb 3Rs document about contractual right, responsibilities and risks in a contract.