BUSINESS AND TRAINING 15
BEFORE SIGNING A CONTRACT
• Check : is it a printed industry SfC or a typed ‘ bespoke contact ’?
Note : The advantage of an SfC is that the content and its interpretation are generally known . A bespoke contract prepared by one party is not invalid but the risk to the other party is increased as the content and its interpretation are relatively ‘ unknown ’ with items that may be added or omitted compared to an equivalent SfC .
MAKE A COPY TO SCRIBBLE ON
• Highlight in one colour your rights ( to get paid ) and your obligations ( to execute the works )
• Highlight in another colour the other party ’ s rights ( take delivery of a specified product or the works ) and its obligations ( to make ( interim ) payments within a stipulated period ).
LIST YOUR OBLIGATIONS TO IDENTIFY ANY :
• Deviations from the tender advertisement or invitation to tender
• Obligations not in accordance with the contract or tender documents
• These may be hidden in ‘ other documents ’ – as a note on a drawing
• Unidentified modifications to the standard SfC text
• What is the implication of such alterations ?
• Alterations or specifications not recorded in the contract data but possibly on a drawing
• Do you understand each listed obligation ? If not , consult the author of the document .
• Obligations that must be carried out within a stipulated time
• Time bars must be adhered to ( unless otherwise agreed )
Note : From your experience : If critical information is omitted , that you are aware of , you will be expected to provide such a service . To protect yourself , query this ‘ item ’ before tender closing and / or include it at a cost .
Note : Alterations to an SfC may contradict the base text resulting in unintended interpretations – the alterations , if accepted , being of a more recent date , may be enforceable even if ‘ non-sensible ’
Note : Deviations to an SfC may be necessary for the execution of a particular project – they should be drafted by a competent person in the writing style of the SfC and checked that no legal conflicts are created . Such changes must be listed in the contract data or an appendix and signed by both Parties before work commences .
• If you are the principal contractor :
• Are you expected to undertake any project design work ? If so , the four listed SfC may not be the appropriate form of contract .
• Is the appointment of nominated subcontractors ( for the design , supply and installation of services or other work ) required ? If so , for what proportion of the whole works ?
• The employer remains responsible for the instruction to appoint / non-performance of nominated subcontractors , while the principal contractor is responsible for the performance of domestic and selected subcontractors .
• As the principal contractor , you are responsible for the administration and implementation of all subcontractor contracts , and the payment of subcontractors .
• Permit use of construction equipment while erected or available on site to all ( sub ) contractors as described in the ASAQS ‘ Standard System of Measuring Building Work ’ guide .
• Has the employer stated the intention to appoint direct contractor ( s ) for aspects of the works ? If so , will this influence the execution of the principal contract ?
• Are you or your staff qualified to design the temporary works for this project ?
• Do you have sufficient information to realistically price and plan the project ?
• What Community Participation Goals must you comply with ? At what cost to you ?
• Do you have the required resources or skills available when needed for the project ?
• Can the project realistically be executed within the specified time ?
• Do you have the financial resources needed for the project ?
• Are you required to provide a security for construction ?
• Are you required to provide ‘ Insurance ’ for the works , if so , what type , value and duration ?
February 2024 Volume 29 I Number 12 www . plumbingafrica . co . za