WARNING- NEW STANDARD FORM CONSTRUCTION CONTRACT OPTION NEEDS PROPER PREPARATION
South Africa’ s construction industry is preparing for significant change with the release of the General Conditions of Contract( GCC) 2025, a revised contract designed to improve the management of projects and the resolution of disputes.
Construction law specialists MDA Attorneys highlight that the new GCC, issued by the South African Institution of Civil Engineering( SAICE), introduces several updates that could catch both contractors and employers off guard if they are not fully prepared.
“ The GCC is one of the most widely used contracts in South African construction, so these changes will be relevant to a large portion of the industry,” explains Michelle Kerr, director at MDA Attorneys.“ Some of the provisions carry potentially serious financial consequences for those who don’ t take the time to understand them.”
One of the most comprehensive revisions relates to disputes. GCC 2025 introduces a new two-stage claims process, giving contractors more time to prepare detailed submissions. At the same time, it imposes stricter timelines on employer’ s agents, with claims automatically rejected if responses are not provided within the required timeframe.
“ The system is more structured but also more complex,” notes Kerr.“ This means parties will need to be disciplined about meeting deadlines and following procedures to avoid losing their rights.”
Another important change is that any party failing to comply with an adjudicator’ s decision will lose the right to challenge it until compliance has occurred. In addition, the grounds for terminating a contract have been expanded to include failure to comply with adjudicator rulings.
The contract also incorporates lessons from recent industry challenges. For example, government-declared states of emergency and disaster— such as those experienced during the COVID-19 pandemic— are now recognised as valid reasons for project delays.
“ These updates show that SAICE has been listening to industry concerns and responding to real-world issues,”
Michelle Kerr Director, MDA Attorneys
Kerr says.“ However, the fine print will be critical in determining how these provisions are applied in practice.”
With GCC 2025 expected to become the new industry standard, companies are encouraged to familiarise themselves with the changes and adjust their internal processes.“ Preparation is key,” concludes Kerr.“ Those who adapt early will gain a clear advantage.”
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