10 BUSINESS AND TRAINING
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Understand your sub contract . ( FIDIC ) published in Switzerland in English and French , the General Conditions of Contract ( GCC ) published by the South African Institution of Civil Engineering , the Joint Building Contracts Committee ( JBCC ) representing ten local industry bodies , and the New Engineering Contract ( NEC ) published by Telfords on behalf of the Institution of Civil Engineers in London to appoint contractors to undertake building and engineering work generally , and for organs of state .
FIDIC 2017 |
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FIDIC 1999 |
subcontract |
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GCSC 2018 Aligned with GCC 2015 , comprehensive
GCC 2010
No subcontract form published
JBCC SfS 2018 : Refers to ‘ Interim Completion ’ before practical completion , ‘ damages ’ instead of ‘ penalties ’ and a ‘ payment advice ’ issued by the contractor as an acknowledgement of debt ( liquid document ), including clause 25.14 to delay the subcontractor ’ s payment by 30 days if the Contractor has not been paid JBCC SfS 2005 : Similar to 2018 but more onerous conditions to delay the Subcontractor ’ s payment by 90 days if the contractor has not been paid JBCC Direct Contractor Contract 2020 : As a stand-alone contract with the employer
NEC4
NEC3 subcontract No information is available at the time of writing subcontract No information is available at the time of writing
Also , refer to the CIDB “ Best Practice Guideline # D1 dealing with ‘ subcontracting arrangements ’”.
b . In the typical ( build only ) or ( employer design / contractor execution ) SfC the PCr ’ s obligations vis-a-vis the employer and contractors are described as are the respective rights and obligations between the PCr and a subcontractor are described in a SfS . All publishers of SfC offer synchronised standard-form subcontracts ( SfS ) aligned with the respective PCt .
Execution of the subcontract works – on appointment - the contractor must ( JBCC procedure ): a . on instruction from the CA / PA appoint each nominated and / or selected subcontractor using the SfS aligned with the SfC that must be signed before the subcontract works commence , after all listed returnables ( a unique South African building industry term for supporting documents to a tender ) have been received , and : i . Provide an area for the subcontractor to use as or erect temporary storage , workshop and / or a site office ii . Define restrictions to the site applicable to the subcontractor iii . Permit the use of personnel welfare facilities iv . Provide a guarantee for payment ; ( if specified in the subcontractor ’ s tender submission ) v . Allow the use of electricity / water within 50m of the subcontract works b . Allow all subcontractors to use at no cost erected scaffolding , hoisting facilities , etc while erected on site and give timeous notice before removing construction equipment from the site / works in terms of the programme : i . Where the subcontract works is late in terms of the current programme , the subcontractor may be liable for the cost of the extended use thereof ii . Where the subcontract works is delayed through no fault of the subcontractor , the subcontractor is entitled to continued use thereof at no additional cost c . Hold regular meetings to monitor progress and to deal with technical and coordination matters – and to record and timeously distribute minutes ; d . On receipt of a contract instruction , issue a ‘ contractor ’ s instructions ’ ( unique JBCC terminology ) to all ( involved ) subcontractors ; e . Remain responsible for the works including the subcontract works except on default ( after notice ) of a nominated subcontractor ; f . Where changes to the standard form contract are deemed necessary – such changes must be clearly stated in the tender documentation – and the particular conditions . When using JBCC agreements changes must be recorded in the contract data – as B15 for the PBA and NSSA and B13 for the MWA .
Execution of the subcontract works . On appointment the subcontractor : a . Is deemed to be familiar with the site / works before submitting a tender ; b . Must , on appointment by the PCr , submit the priced document , indicative programme , specified guarantees , and where applicable , design information , or queries relating to the design specification , within the stipulated period ; c . Must comply with applicable statutory regulations ; d . Must coordinate the subcontract-works with the works programme to enable the CA / PA to monitor the progress of the whole works , or a section thereof , and submit regular progress reports in terms of the current programme ; e . Is not required to insure the subcontract works ( included in the contract works insurances ), but is responsible for statutory insurance , tools etc .
Execution of the subcontract works - the Subcontractor must : a . Designate a competent person to administer , control and permit access to the subcontract-works , maintain daily site records , keep accessible a current copy of all subcontract
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