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BUSINESS AND TRAINING
the advantages of SfCC- possibly resulting in unanticipated legal challenges, delays and expenses.
In the typical( Build only) or( Employer design / Contractor builds) SfCCs the Principal Contractor’ s( PCr) obligations vis-a-vis the Employer and Contractors are described as are the respective rights and obligations between the PCr and a Subcontractor described in a SfSC. All publishers of SfCC offer synchronised SfSCs aligned with the respective SfCC.
The Contractor should be appointed using a new / original hard or soft copy SfCC( and contract data if applicable) signed by the parties using a wet or an advanced electronic signature. The same applies to each nominated, selected or domestic Subcontractor.
What / who is a subcontractor? A Subcontractor, like a PCr, undertakes to provide labour and materials to execute the described works within a defined period for an agreed payment in one or more instalments. The PCr is appointed by the Employer. A Subcontractor is appointed by the PCr using a‘ back-to-back’ ancillary agreement binding the Subcontractor to the same performance conditions applicable in the Principal Contract.
Subcontractors are chosen by following a procurement process appropriate to the project.
A‘ domestic subcontractor’( DS) is appointed by the PCr generally for‘ wet’ trades including bricklayers, plasterers, etc without instruction from the Principal Agent / Contract Administrator( PA / CA).
To suit the complexity of the project, it may be appropriate to invite potential specialist( sub) contractors during the early design phases as part of the procurement process – to be appointed as a nominated Subcontractor( NS) by the PCr. A provisional sum for the supply and installation of such work is included in the contract sum.
A NS is appointed by the PCr on Instruction from the PA / CA for specific work described in the tender documents. The PCr is not involved in the selection process – but may object to such an appointment on reasonable grounds where such NS may lack the competence and / or the capacity to execute the subcontract works within the specified period and / or budget. As the PCr is exposed to greater risk due to the poor or non-performance by a NS, the PCr may be entitled to an extension of time and / or additional costs in the event of NS default.
A‘ selected Subcontractor’( SS), a term only used in JBCC Agreements, is appointed by the PCr in consultation with and on Instruction from the PA / CA for specialised work that may include the design of services or finishes, etc. Such contracts are typically based on long-standing successful business relationships. The PCr is at risk for the correct and timely execution of the work by an SS.
Note: Some Employers seek to nominate a subcontractor and force the PCr to appoint him / her as an SS to pass the nonperformance risk to the PCr. This practice is unethical.( Stan Segal“ Finsen’ s the building contract-3rd edition 2018 Juta page 143 footnote 142) PA
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A draft contract specific to a project may need to be drafted.
www. plumbingafrica. co. za @ plumbingonline @ plumbingonline @ PlumbingAfricaOnline September 2025 Volume 31 I Number 07