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How to draw up a building contract  

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Whether you want to build your own home or just make extensions to your existing house, you will need to draw up a contract between you – the employer – and the contractor.

Our friends at Blue Designs helped us with this very basic contract which you can copy, paste and fill out for your next project.


1. DEFINITIONS AND INTERPRETATION

In this agreement, unless inconsistent with the context, the words and phrases defined hereunder shall bear the meanings assigned to them in this clause.

AGENT means the person or entity named in the schedule, who the

EMPLOYER hereby warrants ……….

CONTRACTOR means the party ……….

CONTRACT SUM means the sum ……….

DAYS means calendar ……….

DEFECT means a fault or insufficiency ……….

EMPLOYER means the party contracting ……….

LATENT DEFECT means a defect which a ……….

PATENT DEFECT means a defect which a ……….

WORKS means the Works as described ……….

1.1 The parties hereby choose their physical, legal address as set out

……………………………………………………………………………………………………………..

1.2 This Agreement constitutes the entire agreement between the

parties ……………………………………………………………………………………………

1.3 The law applicable to this Agreement is the law of the Republic of

South Africa.

2. OBLIGATIONS OF THE PARTIES

2.1 The Contractor has tendered the Contract Sum for carrying out the

Work shown ………………………………………………………………………………………..

2.2 The Employer has agreed to pay the Contractor the Contract Sum,

which shall  ………. ……………………………………………………………………………….

3 PREPARATION

3.1 The drawings and specifications, together with such other

Documents, ………………………………………………………………………………………….

4. SUNDRY COSTS

4.1 All charges for the items set out below are for account of the

4.1.1 Employer …………………………………………………………………………………….

5 WORKS RISK, INDEMNITIES AND INSURANCE

5.1 Subject to the provisions of 5.2 hereof the Works shall be at the

risk of the  ……………………………………………………………………………………………

 6. EXECUTION OF THE WORKS

6.1 The Contractor shall, to the reasonable satisfaction of the Employer, execute

and complete the  ………………………………………………………………………………….

7. VARIATION

7.1 The Employer may from time to time issue written instructions for variations

as to the alteration or modification of the design, ………………………………………………..

8. EXTENSION OF TIME AND PENALTY FOR LATE COMPLETION

8.1 Should the Works be delayed by inclement weather, variations or any other

cause for which the Contractor is not responsible, …………………………………………….

9. PRACTICAL COMPLETION

9.1 When the Works are substantially complete the Contractor shall notify the

Employer who shall within five (5) working days inspect the  ……………………………

10. DEFECTS LIABILITY

10.1 Any patent defects, which may appear within three (3) calendar months after

Practical Completion, ……………………………………………………………………………………………

11. PAYMENT

11.1 The Contractor shall within fourteen (14) calendar days from the date of site

handover, submit to the Agent for agreement an analysis  ……………………………….

12. DEFAULT

12.1 Should the Contractor make default in any of the following respects  ……….

13. SETTLEMENT OF DISPUTES

13.1 Any dispute or difference between the Contractor and the Employer arising

out of this Agreement shall be referred to Arbitration. ………..

14. SCHEDULE

This schedule contains all the variables referred to in this Agreement and all spaces requiring information should be completed by the parties or shown as not applicable and not left blank.

14.1   Contractor__________________________________________________

Postal Address________________________________________________________

____________________________________________________________________

Physical Address (domicilium)____________________________________________

____________________________________________________________________

Tel______________________fax__________________email___________________

VAT no_____________________ CC/PTY/ID No_____________________________

14.2   Employer___________________________________________________________

Postal Address________________________________________________________

____________________________________________________________________

Physical Address (domicilium)____________________________________________

____________________________________________________________________

Tel______________________fax__________________email___________________

14.3   Agent_______________________________________________________________

Postal Address________________________________________________________

____________________________________________________________________

Physical Address (domicilium)____________________________________________

____________________________________________________________________

Tel______________________fax__________________email___________________

14.4 Contract Sum inclusive of VAT___________________________________________

Amount in Words______________________________________________________

14.5 Site Address__________________________________________________________

14.6 Description of the Works________________________________________________

____________________________________________________________________

14.7 Contract Documents___________________________________________________

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

14.8 Possession of site shall be given on_______________________________________

14.9 Practical Completion shall be given on_____________________________________

14.10 Penalty per day for non completion________________________________________

14.11 Amount of Public Liability Insurance held by Contractor________________________

14.12 Details of Contractor’s Bank Account; Account number________________________

Bank______________________________ Branch Code_________________________

Account name___________________________________________________________

14.13 Name of Arbitrator/Conciliator____________________________________________

14.14 Payment schedule (only to be used if clauses 11.1 to 11.5 are replaced with

alternative clause 11.1).

Initial payment__________________________________________________

_____________________________________________________________

_____________________________________________________________

_____________________________________________________________

_____________________________________________________________

_____________________________________________________________

15. SIGNATURE BY CONTRACTING PARTIES

This done and signed at ___________________________on______of______________201__

_______________________________________ _____________________________

For and on behalf of Employer As Witness

This done and signed at ___________________________on______of______________201__

_______________________________________ _____________________________

For and on behalf of Contractor As Witness


Who is Claire Cardwell?

Claire Cardwell of Blue Designs is an architectural designer with over 15 years experience in the Johannesburg area. She has worked on small projects – double garages, swimming pools – and new houses from a 1,300m² house in Featherbrooke Estate, to houses of only 110m² in size. In 2015/2016 she worked on a small complex, a warehouse, a nursery school and new houses in the Waterfall Country Estate, Copperleaf Estate, and in Limpopo on an old-age home and frail care facility in North Riding.

 

hometimes@pixelbaste.com

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