Construction Contracts

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Many forms of contract exist in construction, but the cidb recommends the use of only four (4) forms of contract for construction procurement in the public sector.  This promotes standardization and uniformity of documentation. It reduces escalation of tendering and contracting costs in the industry. It also benefits the emerging sector which lacks resources and capacity to be constantly adapting to new forms of contract, by different clients.  

The cidb Standard for Uniformity makes it mandatory for public sector clients to use GCC, JBCC, NEC and FIDIC. These forms of contracts are owned privately by independent organsiations. Information on them can be accessed on the websites listed below:

www.jbcc.co.za

www.fidic.org.za

www.neccontract.com

www.saice.co.za

 

Standard Contract Documents:

The following contract related guidelines are recommended for consideration and use by public sector clients:

NEC Related Documents:

 

Supply of Goods (Short Contract) (1020) - Second Edition
September 2005
This standard form of contract, based on the NEC system, establishes the risks, liabilities and obligations of the parties to a simple supply contract.

The Supply Contract (1021) - Second Edition
September 2005
This standard form of contract, based on the NEC system, establishes the risks, liabilities and obligations of the parties to a complex supply contract. 

 

A5: Managing Construction Procurement Risks (1005) - First Edition                                                                            March 2004
This practice guide outlines the main elements of the risk management process. It identifies the generic sources of construction related risks, presents a range of options for risk allocation between the employer and the contractor and discusses the question of insurances. It also provides guidelines for the management of risk. 

 

Subcontract For Labour Only Engineering and Construction Works (1016) - Second Edition
September 2005
This standard form of contract establishes the risks, liabilities and obligations of the parties to a labour only subcontract involving engineering and construction works. 
 

Contract for the Supply and Delivery of Goods (1019) - Third Edition
August 2008
This standard form of contract establishes the risks, liabilities and obligations of the parties to a simple supply contract.

 

Standard Professional Services Contract (1014) - Second Edition
September 2005
This standard form of contract establishes the risks, liabilities and obligations of the parties to a professional services contract.

 

Standard Professional Services Contract (1015) - Third Edition
July 2009
This standard form of contract establishes the risks, liabilities and obligations of the parties to a professional services contract. 

 

General Conditions of Purchase (1018) - Third Edition
January 2009
This standard form of contract establishes the risks, liabilities and obligations of the parties to very basic supply contracts.