The Contractor shall be entitled to receive progress payments as the Works proceed in accordance with the provisions set out hereunder.
1.1 The Contract Sum shall be payable in installments as follows:
1.1.1 50% on signature of this Agreement, which is based on a valid quote.
1.1.2 The remaining 50% on completion of the Works.
1.1.3 The Contractor has the right to increase the deposit amount if required.
1.1.4 All contracts up to and including the total amount of Rand 5,000.00 are payable in full and up front.
1.2 Any installments not paid on the due date shall bear interest thereon at a rate of 2% greater than the minimum lending rate charged by
the contractor’s registered commercial bankers, which interest shall accrue as from the due date for payment. In addition, any discounts in terms
of this Agreement will be forfeited.
2. COMMENCEMENT AND COMPLETION
2.1 The Employer shall supply electricity and toilet facilities to the Contractor, free of charge.
2.2 For purposes of this Agreement, except where expressly stated otherwise, the date of completion shall be the date on which the
installation is completed and when the site has been cleared of all rubble and building debris.
2.3 If completion of the Works is delayed as a result of vis major or unforeseen circumstances, including but without being limited to any
strike, lock out, shortages of materials, riot, political or civil disturbance, exceptionally inclement weather or any variation, act or omission on the
part of the Employer or any other cause beyond the Contractor’s control, then
2.3.1 the Employer shall not for such reason have any claim against the Contractor whether for damages or otherwise,
2.3.2 the Contractor shall be entitled to a fair and reasonable extension of time for the completion of the Works.
2.4 Should the Contractor not be able to commence or proceed with the execution of the Works due to any act or omission on the part of
the Employer then, in such event
2.4.1 the Employer shall pay 50% of the contract sum in the event of the Contractor not being able to deliver the materials and commence
the Works, or
2.4.2 the Employer shall pay 40% of the contract sum in the event of the Contractor not being able to complete the Works, provided, that
the Contractor is not in breach of his obligations in terms of this Contract.
2.5 If the Contractor fails to complete the Works within the period stipulated in the preceding sub-clause or any extended period authorized
in writing by the Employer, then the Contractor shall pay the Employer as liquidated and ascertained damages, the sum of R 150.00 per day for
the period during which the said Works shall so remain incomplete and the Employer may deduct such damages from any monies due to the
2.6 Should the Employer interfere with the execution of the Works and the completion of the Works is thereby delayed, the Contractor
shall be paid liquidated and ascertained damages by the Employer, in the sum of R 400.00 per day for the period during which the said Works is
3. DEFECTS LIABILITY:
Subject to the provisions of the following paragraph, the Contractor undertakes that:
Any patent defects or other faults which may appear within 6 months of completion of the Works due to materials, but not exceeding the
manufactures guaranty and 12 months due to workmanship not in accordance with this Contract, shall within a reasonable time after receipt of
the Employer’s written instruction be made good by the Contractor and unless otherwise mutually agreed upon, at his own cost, provided that
the Contractor shall not be required to make good at his own cost any damage, unless it is agreed that such damage is due to injury which took
place before completion.
The Contractor shall only be responsible in terms of the preceding paragraph for damages sustained by the Employer under conditions of normal
use and service and shall under no circumstances be responsible for damage or loss caused by wear and tear, misuse, neglect, negligence,
insects, weather and rain, abuse or accident or in respect of or arising from any risk insured against in terms of homeowner’s insurance policies
normally issued by a leading South African Insurance company in respect of residential properties and the contractor shall under no
circumstances be liable for any consequential loss or damage.
The parties agreed to the following exceptions to the Contractors liabilities:
4. OWNERSHIP OF MATERIALS:
Any unfixed materials required for the Works and delivered to the Property shall remain the property of the Contractor until they have been paid
for by the Employer in terms of Clause 2 and any unfixed surplus materials shall become the property of the Contractor.
The Employer shall not have the right, either personally or through his agent, to issue instructions to, interfere, hinder or obstruct any of the
Contractor’s workmen or any sub-contractors employed on the Works or other persons employed by or acting on behalf of the Contractor.
5.1 Should the Contractor incur any expenses or loss beyond that provided for in, or reasonably contemplated by, this Contract, due to the
actions on the part of the Employer as described in Clause 3.4 or Clause 7, then the value of such expense or loss shall be assessed between the
Employer and the Contractor and such agreed value shall be paid to the Contractor on completion of the Works.
6. EMPLOYER’S DEFAULT:
If the Employer does not pay the Contractor as provided for in Clause 2 or is in default in any other manner, the Contractor shall be entitled to
forthwith cease work under this contract until the Employer has made payment or until such default has been rectified.
6.1 The time during which such work shall cease shall operate as an extension of the time for completion of the Works.
6.2 In addition to suspending work in terms of this Clause, the Contractor may, in the event of non-payment by the Employer after giving 7
days written notice, or if the Employer’s Estate is sequestrated as insolvent or, in the case of a company, it is placed in under voluntary or
compulsory liquidation, or if the Employer’s estate is placed under judicial management, or if the whole or substantially the whole of the Works
(other than Works in respect of defects under Clause 4 hereof) is delayed for three months, by written and registered notice to the Employer
determine this Contract and thereon without prejudice to the accrued rights of either party their respective rights and liabilities shall be as follows:
6.3 The Contractor shall with all reasonable dispatch remove from the site all his goods, machinery and plant.
6.4 The Contractor shall be paid by the Employer:
6.4.1 the Contractor value of the Works completed at the date of such determination as aforesaid subject to Clause 10 hereof:
6.4.2 the value of work commenced and executed but not completed at the date of such determination the value being ascertained mutatis
mutandis in accordance with the provisions of Clause 10 hereof;
6.4.3 the cost of materials or goods properly ordered and delivered for the Works actually paid for by the Contractor of which he is legally
bound to accept delivery and on such cost being paid by the Employer the same shall become his sole property;
6.4.4 liquidated and ascertained pre-estimated of damages in the sum of 20% of the Contract sum provided that the above provisions shall
in no way prejudice any other right or remedy that the Contractor may have in law.
6.5 A Certificate signed by the Contractor’s Auditor specifying the amount due by the Employer to the Contractor shall be sufficient proof
of any amount due to the Contractor in terms of the Contract and may be used by the Contractor for the purposes of obtaining judgment
whether by default or otherwise, summary judgment or provisional sentence against the Employer in any Court of Law having jurisdiction in
7. CONTRACTOR’S DEFAULT:
If the Contractor shall make default in any of the following respects
7.1 without reasonable cause wholly suspend the Works before completion or
7.2 refuses to proceed with the Works with reasonable diligence or
7.3 refuses or to a substantial degree persistently neglects after notice in writing from the Employer, to remove defective work or improper
materials, then, if such default shall continue for 14 days after a registered letter to the Contractor from the Employer specifying the same, the
Employer may, without prejudice to any other rights he may have in terms of this contract or in Law, by registered post, determine the
employment of the Contractor under this Contract, provided no dispute has been declared in terms of Clause 12. In such event the Contractor
shall be liable for all damages incurred by the Employer by reason of such default.
8. MATERIALS IN SHORT SUPPLY:
8.1 In the event of the materials set out in the Specification hereto being in short supply or unavailable from the manufacturer for an
unreasonable period of time, then the Employer may select substitute material from samples provided by the Contractor. Any difference in price
shall be for the account of the Employer.
8.2 Where the Employer does not select a substitute material within 7 days after being notified by the Contractor of such short supply or
unavailability, then either the contractor or the Employer may elect to cancel this contract by giving the other party 7 days written notice of such
cancellation. Any deposit or other moneys paid to the Contractor by the Employee must be refunded to the Employer within 7 days of such
notification and the parties will have no further claim against each other.
All variations, authorized or required by the Employer, which shall be writing and signed by both parties, shall be carried out and the Contract
Sum adjusted, the valuation being assessed on the basis of valuation of similar work included in this Contract. Where this basis cannot be
applied, a valuation agreed by the Employer and the Contractor shall be made, failing which the Contractor shall be allowed the cost of the
materials use at the then current market value, plus 10% (ten per centum) thereof, together with the labour cost of the materials involved,
specifically excluding persons administratively employed in the Contractor’s organization, to which labour costs shall be added 40% (forty per
centum). The above percentage shall cover foreman’s supervision and all other overhead costs and profit. In addition, all other direct costs
reasonably incurred shall be allowed to the Contractor. The onus to prove such costs shall be on the Contractor.
9.1 The Employer agrees that any increase in the cost of materials and/or any statutory increases in labour costs which may come into effect
after signature of this Agreement by the Contractor shall be payable by the Employer and added to the Contract Sum. For purposes of this
Agreement statutory labour costs shall be those applicable to the Building Industry.
9.2 The Contractor shall provide documentary proof of such increases to the Employer on request.
10.1 The parties hereby expressly consent to the jurisdiction of the Magistrate’s court even though such claim may otherwise exceed that
Court’s jurisdiction to adjudicate on any dispute arising out of this Contract which is not otherwise subject to arbitration in terms hereof. This is
subject to the provision that if a party elects to institute action in the Supreme Court, he shall be entitled to do so.
10.2 It is agreed between the parties that the Law of the Republic of South Africa shall be the only law of this contract.
Any disputes or difference between the Contractor and the Employer arising out of and during the currency of the Contract or upon termination
or cancellation thereof shall be referred to arbitration. Such disputes may however in the first instance be decided by mediation as follows:-
11.1 The parties shall agree in writing within seven (7) days of the date on which the dispute is declared upon the person to be appointed by
them as the mediator.
11.1.1 The mediator shall convene a hearing of the parties and their witnesses and may hold separate discussions with either or both parties
and shall assist the parties in attempting to reach a mutually acceptable settlement of their differences through means of reconciliation,
interpretation, clarification, suggestion and advice. The mediator shall have the discretion whether to allow the parties to be assisted or
represented by advisors at the hearing.
11.1.2 If and when the parties reach a mutually acceptable settlement of their differences they shall record such agreement in writing and
thereafter they shall be bound by such agreement.
11.1.3 The mediator is authorized to end the mediation process whenever in his opinion further effort at mediation would not contribute to a
solution of the dispute between the parties.
11.1.4 The cost of the mediation and the apportionment thereof shall be determined by the mediator and shall be binding on the parties.
11.2 The arbitration shall be held in terms of the Arbitration Act. The arbitrator is expressly authorized to determine the format and
procedure of the arbitration and in so doing and more particularly with regard to pleadings, discovery of documents and other matters of that
kind, the arbitrator shall in his sole discretion determine the procedure to be adopted and shall have regard in that connection to the primary
need to determine the dispute or difference as expeditiously and as cheaply as possible with resort to as little formality as is reasonably
11.2.1 The arbitrator shall in his sole discretion determine the costs of the arbitration, direct the same to be taxed as between attorney and
client or between party and party and direct by whom and to whom and in what manner the same shall be borne and paid.
11.2.2 The Arbitrator shall be appointed at the request of either party by the President for the time being of the Master Builders Association
that has jurisdiction.
This is the entire Agreement between the parties and there are not terms, conditions, warranties, representations or other understandings other
than what is contained in this document. No alteration or variation of this agreement shall be of any effect unless it is recorded in writing.
By accepting the quotation or order from, I acknowledge having read, understood and accepted the conditions and specifications appearing
above as binding.