GUIDE TO COMPLETION, VALUATION, …

1 GUIDE TO completion , valuation , CERTIFICATION AND PAYMENT1 EXPLANATORY NOTES AND INSTRUCTIONS !Introduction !This composite and updated GUIDE includes earlier publications by the JBCC as a desktop reference manual for consultants and contractors alike. This GUIDE seeks to simplify the tendering for and the administration of building agreements and to avoid/minimise disagreements arising from poor contract administration - in the interests of standardisation of documentation and good practice in the building industry. The JBCC accepts no liability for loss, damage or expense incurred as a result of information provided in good faith in this GUIDE How this document is structured Definitions: This is a composite collection of definitions used in the three JBCC Agreements.

2 There may be minor variations in some definitions as the wording, for example, in the Principal Building Agreement may not totally match that in the Minor Works Agreement albeit the intent is the same Contract Data: The 2014 edition of JBCC Agreements introduced a single contract data to be completed by the principal agent to invite tenders, and to be completed by the contractor as the form of tender / offer Completed contract data for the Principal Building Agreement, (similar for the N/S Subcontract Agreement and the Minor Works Agreement) are included to illustrate how these forms must be used Completed agreement form on appointment of a (sub)contractor = the last page of each of the agreements, signed by the parties as a record of the project data for the Principal Building Agreement, (similar for the N/S Subcontract Agreement and the Minor Works Agreement)

3 Completed waiver of the contractor s lien and certificate of site possession forms follow The completion process is described in five stages with completed certificates of interim, practical and final completion of the works as a whole or in sections. The concept of latent liability of the contractor is explained in detail Aspects of the payment process are described in notes and illustrated with completed payment and related certificates supplemented by the calculation of interest and the administration of the various securities !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! JBCC GUIDE to completion , valuation , Certification and Payment - Edition , March !Only key definitions used in JBCC agreements are repeated for ease of reference; - there may be minor differences in wording !

4 A word or phrase in bold type in a JBCC Agreement or this GUIDE shall have the meaning assigned to it in these definitions. A word or phrase not in bold type shall be interpreted in the context of its usage ! Numbers, generally preceded by in terms of , indicate references to clause numbers [ ] in that document Headings of clauses are for reference purposes only and shall not be used in the interpretation of such clauses ADJUSTMENT AMOUNT: The amount calculated in terms of the applicable adjustment formula using the tax exclusive method applicable in the CPAP GUIDE ! AGENT: The entity dealing with specific aspects of the works appointed by the employer or delegated by the principal agent AGREEMENT: The JBCC Principal Building Agreement, the JBCC Nominated/Selected Subcontract Agreement or the JBCC Minor Works Agreement and the respective completed JBCC contract data, or the corresponding JBCC Public Sector Agreements and the respective completed JBCC contract data !

5 BASE MONTH: The calendar month during which tenders closed applicable in the CPAP GUIDE !BILLS OF QUANTITIES: The document drawn up in accordance with the measuring system [CD] BUDGETARY ALLOWANCE: An amount included in the contract sum for work intended for execution by the contractor, the extent of which is identified but not detailed ! BUDGETARY ALLOWANCE: An amount included in the n/s subcontract sum for work intended for execution by the subcontractor the extent of which is identified but not detailed !CALENDAR DAYS: Twenty four (24) hour days commencing at midnight (00:00) which include Saturdays, Sundays, proclaimed public holidays and recorded annual builders holiday periods [CD] !

6 CERTIFICATE of FINAL completion : A certificate issued by the principal agent to the contractor with a copy to the employer stating the date on which final completion of the works, or of a section thereof, was achieved !CERTIFICATE of INTERIM completion : A certificate issued by the contractor to the subcontractor stating the date on which interim completion of the n/s subcontract works, or a section thereof, was achieved !CERTIFICATE of PRACTICAL completion : A certificate issued by the principal agent to the contractor with a copy to the employer stating the date on which practical completion of the works, or of a section thereof, was achieved !CONSTRUCTION EQUIPMENT: Equipment and/or plant provided by or belonging to the contractor and/or the subcontractor used during the construction period !

7 CONSTRUCTION INFORMATION: All information issued by the principal agent and/or agents including the contract documents, specifications, drawings, schedules, notices and contract instructions required for the execution of the works !CONSTRUCTION PERIOD: The period commencing on the intended date [CD] of possession of the site by the contractor and ending on the date of practical completion (Private Sector Agreement only) !CONSTRUCTION PERIOD: The period commencing on the date of the letter of appointment to the contractor and ending on the date of practical completion (Public Sector Agreement only) !CONTRACT DATA: The document listing the contract variables ![CD]: The notation used where project specific information is recorded in the contract data !

8 CONTRACT DOCUMENTS: This agreement, the contract drawings, the priced document and other identified documents [CD] !CONTRACT DRAWINGS: The drawings listed on which the accepted tender or the negotiated amount was based [CD] ! CONTRACT INSTRUCTION: A written instruction issued by or under the authority of the principal agent to the contractor, which may include drawings and other construction information CONTRACT MINUTES: A comprehensive set of minutes prepared by the principal agent in which all pertinent contractual information that arises at meetings is progressively recorded (defined in MWA, applicable to all agreements) JBCC GUIDE to completion , valuation , Certification and Payment - Edition , March 20143 CONTRACT PRICE ADJUSTMENT: Provision used for the adjustment of the contract value [CD] (using information published monthly by Statistics South Africa) !

9 CONTRACT SUM: The accepted tender amount, inclusive of tax, that is not subject to adjustment [CD] !CONTRACT VALUE: A monetary value initially equal to the contract sum that is subject to adjustment in terms of the agreement CONTRACTOR: The party [CD] contracting with the employer for the execution of the works (PBA + MWA only) CONTRACTOR: The party contracting with the subcontractor for the execution of n/s subcontract works [CD] (NSSA only) !CONTRACTUAL DATE FOR completion : The actual date for practical completion of the works or any revision of the initial contractual date for practical completion in terms of the agreement, whichever occurs first, provided that if no revision is granted, it shall mean the initial contractual completion date (used in CPAP GUIDE ) !

10 CPAP: The Contract Price Adjustment Provisions used for the adjustment of fluctuations in the cost of labour, plant, materials and goods that are required to construct the works (used in CPAP GUIDE ) !DAMAGES: Proven financial loss claimed or awarded to compensate the contractor where the subcontractor has not completed the subcontract works in accordance with the contract documents !DEFECT: Any aspect of materials and workmanship forming part of the works that does not conform to the contract documents !DEFECT: Any aspect of materials and workmanship forming part of the n/s subcontract works that does not conform to the n/s subcontract documents !DIRECT CONTRACTOR: An entity appointed under separate agreement by the employer to do work on site prior to practical completion [CD] !