Suspension and Termination | ||||
a . |
The Subcontractor may suspend |
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the Subcontract-works if the | ||||
Employer and / or the PCr has failed to comply with specified |
A comprehensive subcontract protects you and your business . |
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contractual obligations ( proof of | ||||
insurance / provision of securities / or appointment of Agents etc ) |
best practice guidelines , yet to be published ) to resolve payment |
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on expiry of such Notice ; |
and other technical issues speedily |
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b . |
The Subcontractor may suspend the Subcontract-works after |
III . |
Arbitration - as a determination is ' final ' without going to litigation |
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Notice , where the PCr has failed to make payment by the |
Note : Litigation is complex , time-consuming , expensive option with no |
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due date ; |
‘ win in court ’ guarantee , a last resort . |
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c . |
The Subcontractor may terminate the Subcontract-works where |
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suspension has failed to resolve a notified issue by following the |
Consider that … |
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procedures ( SfS ) in the relevant clauses ; ( suspension is not a |
a . |
The building industry to a greater extent , and the civil |
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prerequisite to give Notice of Termination of the Subcontract ); |
engineering contracting firms to a lesser extent , rely on |
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d . |
The PCr may terminate the appointment where the |
Subcontractors who provide specialised construction skills – |
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Subcontractor has failed to perform , – or |
sometimes involving sophisticated product-specific Construction |
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e . |
The Parties may agree to terminate the appointment where |
Equipment . The industry generally has a poor track record of |
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execution of the Subcontract-works has become impossible . |
looking after subcontractors : |
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Note : A party in breach of the contract cannot terminate that contract . |
I . |
not using SfS to appoint ‘ domestic ’, ‘ nominated ’ or ‘ selected ’ |
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Subcontractors ; |
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Dispute resolution |
II . |
issuing a letter of appointment with unilateral clauses in the |
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a . |
Where the Parties have not resolved a disagreement , the |
Contractor ’ s favour ; |
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aggrieved party may give Notice of Dispute to be resolved by |
III . |
unfair clauses include the introduction of ‘ pay when paid ’ terms ; |
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following the procedures in the SfC / SfS . |
IV . |
a Guarantee for Payment is rarely provided ; |
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b . |
The Parties must continue to perform their obligations |
V . |
Performance Guarantees are generally required – often |
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notwithstanding any disagreement or dispute that may exist |
retention is deducted – and the balance of such amounts at the |
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between them . |
Final Account stage is not repaid . |
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c . |
The JBCC SfS refers to “ the Employer consents to the joining of |
b . |
Subcontractors , for fear of losing work , accept such unfair |
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any Subcontractor with the PCr as a party to any proceedings ”. |
employment conditions and are not offered an original unaltered |
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SfS to sign ( and given a reference copy ) and don ’ t form a united |
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Note : There is no privity of contract between the Employer and a |
front on behalf of their industry : |
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nominated / selected Subcontractor . |
c . |
Application in SfC |
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Note : The Department of Justice in South Africa issued a directive |
I . |
Insist that each Subcontractor is appointed before Subcontractworks |
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on 03 May 2013 where the Employer is an Organ of State that |
commence using an unaltered recognised SfS , |
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dispute resolution procedures in a SfC | SfS must be used in |
II . |
Understand your obligations and responsibilities described in |
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preference to litigation , allowing for a settlement by : |
the tender documents , |
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I . |
Mediation - quick and inexpensive |
III . |
Create and maintain a comprehensive record of all |
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II . |
Adjudication ( provided for in the draft CIDB ' s ' prompt payment ' |
communications . PA |
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