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NJPC 2000

NJPC Building Contract

SANCTIONED BY THE NATIONAL JOINT PRACTICE COMMITTEE


AND
THE ZIMBABWE CONSTRUCTION INDUSTRY COUNCIL
NJPC BUILDING CONTRACT

ARTICLES OF AGREEMENT made the day of


BETWEEN

of (or whose registered office is at)

(hereinafter called “the employer”) of the one part, and

of (or whose registered office is at)

(hereinafter called “the principal contractor”) of the other part:

WHEREAS:
the employer wishes to have provided the works as detailed in the appendix to this
agreement.

NOW IT IS AGREED THAT:


1. The principal contractor will provide the works in accordance with this agreement.

2. The employer will pay the principal contractor the amount due in accordance with this
agreement.

AS WITNESS our hand the day and year above written

WITNESS:

Employer

WITNESS:

Principal contractor

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NJPC BUILDING CONTRACT

APPENDIX
CONTRACTING AND OTHER PARTIES
(43.34) Employer

(1.10) Postal address

Physical address

Telephone Facsimile

E-mail

(43.59) Principal contractor

(1.10) Postal address

Physical address

Telephone Facsimile

E-mail

(43.5) Adjudicator

(1.10) Postal address

Physical address

Telephone Facsimile

E-mail

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NJPC BUILDING CONTRACT

CONSULTANT TEAM
(43.7) Administrator

(1.10) Postal address

Physical address

Telephone Facsimile

E-mail

(43.18) Architect

(1.10) Postal address

Physical address

Telephone Facsimile

E-mail

(43.18) Quantity surveyor

(1.10) Postal address

Physical address

Telephone Facsimile

E-mail

(43.18) Civil engineer

(1.10) Postal address

Physical address

Telephone Facsimile

E-mail

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NJPC BUILDING CONTRACT

(43.18) Structural engineer

(1.10) Postal address

Physical address

Telephone Facsimile

E-mail

(43.18) Electrical engineer

(1.10) Postal address

Physical address

Telephone Facsimile

E-mail

(43.18) Mechanical engineer

(1.10) Postal address

Physical address

Telephone Facsimile

E-mail

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NJPC BUILDING CONTRACT

CONTRACT PARTICULARS
(43.83) The works

(43.73) The site

COMMENCEMENT, COMPLETION AND LIQUIDATED DAMAGES

(43.14) Commencement
date

(43.23) Date for completion Liquidated & Per calendar


(no Sections) ascertained $ week
damages
Where there are
Sections:
Section 1 Per calendar
$ week

Section 2 Per calendar


$ week

Section 3 Per calendar


$ week

Section 4 Per calendar


$ week

Section 5 Per calendar


$ week

Section 6 Per calendar


$ week

Section 7 Per calendar


$ week

Section 8 Per calendar


$ week

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NJPC BUILDING CONTRACT

PAYMENT
(43.21) Contract sum $

(words)

(33.3/43.48) Lump sum contract (Delete as


appropriate) This is a lump sum contract

This is not a lump sum


contract

(36.1/43.46) Interim payment interval (Delete as


appropriate) Monthly

Stage payments

(36.1) Stage payments The following are the stages that the works shall have reached to
entitle the principal contractor to receive stage payments:

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

(37.1/43.39) Fluctuation provisions to apply (Delete as Firm price


appropriate)

Fluctuation

(43.58) Pricing document (Delete/complete


as appropriate) Bills of quantities

Schedule of rates

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Contract sum analysis

Priced specification

(Name other
document)

(43.70) Retention percentage


%

th
(43.46) Interim payment certificate date (10 of the month unless
otherwise stated here)

(36.6) Period for payment of interim payments (10 days unless otherwise
by the employer from date of interim stated here)
payment certificate

(Date) (Amount)
(32.1) Date and amount of advance payment

(32.4) Rules for repayment


of advance payment

(39.1) Currency of account Currency Percentage Fixed


exchange
rate

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NJPC BUILDING CONTRACT

CONTRACT VARIABLES
(43.24) Working week (5 days unless otherwise
stated here)

(43.28) Defects liability period (12 months unless otherwise


stated here)

(38.3/43.37) Final account (60 days unless otherwise


stated here)

(43.75) Snagging period (10 days unless otherwise


stated here)

(5.1) Period for production of (15 days unless otherwise


programme stated here)

(5.4) Number of copies of reviewed (4 copies unless otherwise


programme to be supplied by stated here)
principal contractor

(6.10) Number of copies of drawings etc. (3 copies unless otherwise


to be produced by the principal stated here)
contractor

(14.1) Insurance (Delete where appropriate) Project


insurance
Principal
contractor's
insurance
Excesses:
Each and every loss from storm,
tempest, floodwater damage,
subsidence collapse and resultant $
damage caused by defective
design, plan, specification,
workmanship or materials

Each and every other loss


$

(14.7) Percentage to cover professional


fees %

(41.1) Cancellation after period of (days)


suspension

(14.16/ Financial institution for opening of


36.12.1) joint accounts

(37.3) Limit on administration fee


$

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NJPC BUILDING CONTRACT

DOCUMENTATION
(43.19) Contract documents (To consist of the documents stated here, in the order of precedence
listed)

(43.20) Contract drawings (The drawings used to prepare the tender documents as listed here)

(43.81) Tender documents (the following documents comprising the principal contractor’s
tender)

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CONDITIONS OF CONTRACT
CONTENTS

Interpretation

1. 1 Interpretation
1. 9 Notices
1. 11 Law

Objective

2. 1 Execution and payment for the works


3. 1 Principal contractor's obligations

Preparation

4. 1 Documents
5. 1 Programme
6. 1 Design
7. 1 Royalties, patent rights and copyright
8. 1 Confidentiality
9. 1 Consultant team
10. 1 Principal contractor’s representative
11. 1 Compliance with regulations
12. 1 Works' risk
12. 3 Employer's risks
13. 1 Indemnities
14. 1 Insurance
14. 2 Project insurance
14. 7 Principal contractor's insurances

Execution

15. 1 Commencement
16. 1 Access to the works
17. 1 Site safety
18. 1 Draft instructions
19. 1 Instructions
20. 1 Setting out
21. 1 Assignment
22. 1 Subcontractors
22. 3 Selected subcontractors
22.10 Nominated subcontractors
23. 1 Direct contractors
24. 1 Antiquities
25. 1 Site meetings

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Completion

26. 1 Acceleration
27. 1 Deceleration
28. 1 Adjustment of time
29. 1 Completion
30. 1 Early occupation
31. 1 Defects liability period

Payment

32. 1 Advance payment


33. 1 Adjustments to the contract sum
34. 1 Additional costs
35. 1 Damages for non-completion
36. 1 Payment to principal contractor
36.11 Retention
36.15 Direct payment
37. 1 Fluctuations
37. 7 Firm price
37. 8 Fluctuation of wages
37. 9 Fluctuations in price of materials and fuel
38. 1 Final account
39. 1 Currency of account

Cancellation

40. 1 Cancellation by employer


41. 1 Cancellation by principal contractor

Disputes

42. 1 Disputes
42. 2 Adjudication
42.10 Arbitration

Definitions

43. 1 Definitions

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INTERPRETATION
Interpretation 1.1 Any reference in the contract documents to a provision in an Act of Parliament or
Statutory instrument or Regulation or Order shall include any modification, re-
enactment or extension of it for the time being in force.

1.2 Words incorporating the singular meaning shall include the plural and vice versa,
and where appropriate, words denoting the masculine gender include the feminine
gender and words denoting natural persons shall include firms and corporations
and all such words shall be construed interchangeable in that manner.

1.3 References in the contract documents to clauses refer to the clauses in these
Conditions of Contract unless otherwise stated.

1.4 When the administrator has issued any certificate under this agreement it shall be
issued to the principal contractor with a duplicate copy to the employer. Any
certificate, which has not been signed by the administrator, shall have no effect for
the purposes of this agreement.

1.5 Wherever under this agreement provision is made for the giving or issue of any
application, notice, consent, approval, certificate, confirmation or determination by
any person, unless otherwise specified such application, notice, consent, approval,
certificate, confirmation or determination shall be in writing. The words ‘notify’,
‘certify’, ‘confirm’ or ‘determine’ shall be construed accordingly. Any such notice,
consent, approval, certificate, confirmation or determination shall not be
unreasonably given, withheld or delayed.

1.6 In the event that any part or parts of this agreement is/are determined to be invalid
or unenforceable, such determination shall not affect the validity of any remaining
portion, which shall remain in force and effect as if this agreement had been
executed with the invalid part or parts deleted, and it is agreed that the intention of
the parties is that they would have executed the remaining portion of this
agreement without including any such part or parts which may for any reason be
declared invalid or unenforceable.

1.7 All additions, amendments and variations to this agreement shall be binding only if
in writing and signed by the duly authorised representatives of the employer and of
the principal contractor.

1.8 This agreement supersedes any previous agreements or arrangements between


the parties whether oral or in writing and represents the entire understanding
between the parties.

Notices 1.9 In respect of a notice to be given, written acknowledgement of receipt shall be


obtained.

1.10 The addresses, facsimile numbers or e-mail addresses for sending notices or
correspondence to the employer, the principal contractor, the administrator and
the other members of the consultant team shall be those stated in this agreement
or such other address, facsimile number or e-mail address as the recipient may
have previously notified in writing to all other relevant persons.

Law 1.11 The only law applicable to this agreement is the law of the Republic of Zimbabwe.

OBJECTIVE
Execution and 2.1 This agreement is made between the principal contractor and the employer who
payment for the is desirous of having the works executed by the principal contractor.
Works

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NJPC BUILDING CONTRACT

2.2 The employer shall pay the principal contractor for the execution of the works in
terms of this agreement.

Principal 3.1 The principal contractor shall provide everything necessary and shall carry out
Contractor’s and complete the works to the satisfaction of the administrator:
Obligations
• as shown and described by the contract documents
• by the date or dates for completion
• in accordance with the provisions of this agreement

3.2 The principal contractor, when requested by the administrator, shall provide the
administrator or any direct contractor with all such information in regard to the
works as may be required.

PREPARATION
Documents 4.1 The administrator shall arrange for the signing of this agreement.

4.2 The original contract documents shall be held by the administrator and shall be
produced as and when required by the employer, the principal contractor or any
member of the consultant team. The administrator shall furnish to the principal
contractor, the employer and the members of the consultant team one copy
each of the signed contract documents at the employer's cost. The
administrator will supply, at the cost of the employer, to the principal contractor
an additional set of the contract documents which shall be kept at the site and to
which the employer or any member of the consultant team shall have access.

4.3 The documents shall be mutually explanatory of one another. If either party or a
member of the consultant team finds any discrepancy between any parts of the
contract documents they shall inform the administrator. The administrator shall
issue an instruction as to the manner in which the difference shall be dealt with.

Programme 5.1 The principal contractor shall within 15 days, or such other period as may be
stated in the appendix, of the instruction to proceed submit to the administrator
two copies of the programme.

5.2 The programme shall contain the following:

• start and finish dates (including any known sectional completion dates)
• key activity dates
• information required dates
• subcontractor tender, start and finish dates
• information required under clause 6.4.2
• information required under clause 23.3

5.3 Upon receipt of the programme, the administrator will review the same within 5
days. One copy of the programme shall be returned to the principal contractor
marked either ‘reviewed’ or ‘resubmit’. In the case of resubmit, the administrator
shall state the reasons for resubmission and the principal contractor may amend
the programme and resubmit it within 5 days. No review of the programme by the
administrator shall relieve the principal contractor of the principal contractor’s
obligations under this agreement.

5.4 Within 2 days of the programme being reviewed, the principal contractor shall
supply to the administrator 4 copies of the programme or such other number as
may be specified in the appendix.

5.5 If at any time it appears to the administrator that actual progress of the works
does not conform to the programme which has been reviewed, the principal
contractor shall submit within 5 days at the request of the administrator, a
revised programme showing the modifications to such programme to ensure
completion of the works by the date for completion.

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NJPC BUILDING CONTRACT

5.6 Any revised programme shall follow the review procedure set out above.

Design 6.1 Except as provided in this clause, the principal contractor shall not be responsible
for the design of the works.

6.2 Where it is so stated in the contract documents, the principal contractor shall
carry out the design of the principal contractor’s designed works and shall, in so
doing, be fully responsible for the same and have the same liability to the employer
as that of an appropriate professional designer.

6.3 Where the principal contractor specifies a proprietary designed item the principal
contractor, through the supplier, is responsible for the design of the same and the
item shall form part of the principal contractor’s designed works.

6.4 The principal contractor shall, as part of the principal contractor’s designed
works, ensure:

6.4.1 co-operation with the administrator, the consultant team and such other
persons as may be necessary or as the administrator may instruct;

6.4.2 responsibility for the programming of the principal contractor’s designed


works. The principal contractor is to issue a design programme showing a
schedule of drawings and their issue dates and the dates by which review
under clause 6.11 is to be completed. If the principal contractor fails to issue
the design programme timeously, responsibility for delays as a result of late
review of drawings shall rest with the principal contractor;

6.4.3 the giving of all consents, comments, approvals or instructions required so as


not to delay or disrupt the progress of the works.

6.5 The administrator shall timeously issue to the principal contractor a full set of
co-ordinated drawings together with all subsequent revisions. The principal
contractor shall ensure that the principal contractor’s designed works are in
accordance with the latest revision of the co-ordinated drawings.

6.6 The administrator shall be entitled to issue instructions to the principal


contractor in respect of matters affecting the principal contractor’s designed
works and the principal contractor shall comply with the same.

6.7 Any drawing issued by either the administrator or the principal contractor shall
have on it the following items of information:

• revision number
• date of revision
• concise description of the change
• changes highlighted by clouding
• all earlier revision information.

6.8 The principal contractor shall, in relation to the principal contractor’s designed
works comply with all statutory requirements and obtain all necessary approvals,
consents and permissions required by the statutory requirements.

6.9 The principal contractor shall be responsible for all mistakes, inaccuracies,
discrepancies and omissions in the design of the principal contractor’s designed
works.

6.10 The principal contractor shall provide the administrator, free of charge, 3 copies
or such other number as may be specified in the appendix of all drawings, details,
specifications, levels, setting out dimensions and calculations as are necessary to
explain, amplify, show or describe the principal contractor’s designed works at
such times as not to delay or disrupt the progress of the works and having regard
to any schedule for the release of information which may be agreed between the
administrator and the principal contractor. The relevant number of copies
applies to each submission including all revisions.

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6.11 The administrator will review any design information submitted by the principal
contractor and shall return one copy of the same to the principal contractor. The
returned information shall be marked either ‘reviewed’, ‘reviewed as noted’ or
‘resubmit’. In the case of ‘reviewed’ the principal contractor may proceed to
fabrication or construction on the basis of the information as submitted. In the case
of ‘reviewed as noted’ the principal contractor may proceed to fabrication or
construction taking into account the notes provided by the administrator. In the
case of ‘resubmit’ the principal contractor must resubmit the information for
review prior to commencing fabrication or construction.

6.12 In the event of a resubmission of information for review, the review shall be carried
out within a time period equal to that allowed by the principal contractor in the
design programme.

6.13 No review carried out by, or instruction given by the administrator shall relieve
the principal contractor of any responsibility or liability.

6.14 Any error, divergence, omission or discrepancy in all or any of the documents
prepared by the principal contractor as part of the principal contractor’s
designed works shall be corrected and there shall be no addition to the contract
sum. The principal contractor shall indemnify the employer against any cost,
liability, loss, claim or proceedings suffered or incurred.

Royalties, Patent 7.1 The principal contractor shall indemnify the employer from and against all
Rights and claims, proceedings, damages, costs and expenses to which the employer may be
Copyright put by reason of the principal contractor infringing or being held to have infringed
any patent or other rights in relation to any patented articles, processes, inventions
or copyright or other intellectual property rights unless the principal contractor
uses the same as specified by the administrator. In which case all royalties,
damages or other monies for which the principal contractor may be liable to pay
shall be reimbursed by the employer.

7.2 In the event of any claims being made or proceedings instituted against the
employer to which the above indemnity applies, the employer shall promptly notify
the principal contractor of the same. The principal contractor may in the
employer’s name deal with such claim. If the principal contractor fails to notify
the employer within 20 days that the principal contractor intends to deal with the
same then the employer shall be free to deal with the claim.

Confidentiality 8.1 The principal contractor shall not, without the prior approval of the employer use
in any publicity or advertising or publish alone or in conjunction with any other
person, any articles, photographs or other illustrations relating to the works.

8.2 None of the contract documents shall be used by either contracting party, their
servants or agents, for any purpose other than in connection with this agreement.

8.3 Except where necessary for the execution of the works neither party shall at any
time for any reason disclose to any person or otherwise make use of any
confidential information which has come into that party’s possession relating to the
works or concerning the other party without that party’s consent. This restriction
shall continue to apply, without limitation in point of time, unless and until such
information comes properly into the public domain.

Consultant Team 9.1 The employer has appointed the consultant team as detailed in the appendix.
The employer may appoint such further persons to be members of the consultant
team.

9.2 The principal contractor shall afford the consultant team every facility for the
performance of their duties.

9.3 In the event of any member of the consultant team being unable to continue to
act, the employer shall timeously appoint a further person whose identity shall be
notified to the principal contractor in writing.

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9.4 A member of the consultant team appointed after the signing of this agreement
shall not be a person against whom the principal contractor shall make objection.

9.5 The administrator shall have authority to delegate any of the administrator’s
functions under this agreement to any other member of the consultant team,
which shall be within their normally accepted professional roles. The administrator
shall issue an instruction to the principal contractor specifying the exact nature
of any delegation and any limits placed on the authority of the member of the
consultant team to whom the delegation refers.

9.6 If it becomes necessary to appoint a new administrator, the person appointed


shall not be entitled to disregard or overrule any certificate, opinion, decision,
approval or instruction given or expressed by the previous administrator to the
prejudice of the principal contractor.

Principal 10.1 The principal contractor shall, during working hours, keep on site during the
Contractor’s execution of the works a competent person or persons to control the works. The
Representative principal contractor shall notify the name(s) of such representative(s) to the
administrator in writing.

Compliance with 11.1 The principal contractor shall comply with, and give all notices required by the
Regulations statutory requirements except to the extent that such notices shall have been
given by or on behalf of the employer.

11.2 If the principal contractor shall find any divergence between the contract
documents or instructions and the statutory requirements, the principal
contractor shall immediately notify the administrator specifying the divergence.
The administrator shall issue an instruction as to the manner in which any such
divergence shall be resolved.

11.3 The principal contractor shall pay and indemnify the employer against liability in
respect of any fees or charges legally demandable under any of the statutory
requirements with regard to the works.

11.4 The principal contractor shall comply with and shall ensure compliance by all
others on site with all the respective duties and obligations under and pursuant to
the statutory requirements. The principal contractor may issue directions to
those on site concerning the statutory requirements. Those on site shall comply
with all such directions.

Works' Risk 12.1 The principal contractor shall take full responsibility for the care of the works
from and including the date that the principal contractor obtains access to the
site under clause 15.2 up to and including the date of issue of the completion
certificate. Immediately following the issue of the completion certificate,
responsibility for the care of the works shall pass to the employer. In the case of
sectional completion, responsibility for the care of that portion of the works for
which a completion certificate has been issued shall likewise be passed to the
employer.

12.2 The principal contractor shall make good physical loss or repair damage to the
works, which shall include clearing away and removing from site all debris
resulting therefrom, occurring after the commencement date and prior to or on the
date of issue of the completion certificate. Where sectional completion applies,
this provision also applies to each section.

Employer’s 12.3 In the event of physical loss or damage occurring as a result of any of the
Risks employer’s risks the principal contractor shall, if and to the extent Instructed by
the administrator, rectify the loss or damage. The costs incurred by the principal
contractor shall be dealt with under the provisions relating to adjustment of the
contract sum and additional costs. In the case of a combination of risks causing
loss or damage, the proportional responsibility of the principal contractor and the
employer shall be taken into account.

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Indemnities 13.1 The principal contractor shall, in respect of the carrying out of the works, be
liable for and shall indemnify the employer against any expense, liability, loss,
claim or proceedings whatsoever:

• arising under any statute or at common law in respect of personal injury to or


the death of any person
• in respect of any injury or damage to any external property.

13.2 If under clause 13.1 the liability is due to any act or neglect of the employer or any
person for whom the employer is responsible, then the principal contractor shall
not be liable for the same. For the avoidance of doubt, the members of the
consultant team in the course of their duties on-site are persons for whom the
employer is responsible.

Insurance 14.1 Where it is stated in the appendix that the project insurance provisions apply
then clauses 14.2 to 14.6 apply. In any other case the provisions of clauses 14.7 to
14.17 apply.

Project 14.2 Without prejudice to the principal contractor’s obligations under clause 13.1 the
Insurance employer shall take out and maintain project insurance with insurers approved by
the principal contractor.

14.3 The principal contractor shall carry out the principal contractor’s obligations
under this agreement and shall ensure that all subcontractors carry out their
respective obligations in such manner that all requirements, terms, conditions,
stipulations and provisos of project insurance are, at all times, fully complied with.

14.4 Upon the happening of any event which results in any claim being made under
project insurance the principal contractor shall restore work damaged, replace
or repair any unfixed materials or goods which have been destroyed or injured,
remove and dispose of any debris and proceed with the carrying out and
completion of the works.

14.5 The properly incurred costs of the principal contractor as valued by the
administrator shall be paid by the employer to the principal contractor under
interim payment certificates.

14.6 The employer shall produce for inspection full details of and receipts for premiums
paid in respect of project insurance to the administrator and the principal
contractor.

Principal 14.7 The principal contractor shall take out and maintain a joint names policy for all
Contractor's risks insurance for the full reinstatement value of the works plus the percentage,
Insurances if any, stated in the appendix to cover professional fees. The principal contractor
shall maintain the joint names policy up to and including the day of issue of the
completion certificate or the date of cancellation of the principal contractor’s
employment under the cancellation provisions whichever is the earlier.

14.8 Where the full reinstatement value increases above the sum stated in the tender,
the employer will reimburse the principal contractor for any additional premium
payable. If the full reinstatement value decreases any refund of premium shall be
repaid to the employer.

14.9 The joint names policy shall be taken out with insurers approved by the employer
and the principal contractor shall send to the administrator for deposit with the
employer that policy and the cover note.

14.10 If the principal contractor defaults in taking out or in maintaining the joint names
policy the employer may himself take out project insurance and the contract
sum shall be adjusted in respect of the amount paid for premiums.

14.11 If any loss or damage affecting work executed or materials on site is occasioned by
any one or more of the risks covered by the joint names policy then upon
discovering the same the principal contractor shall immediately give notice to the

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administrator of the extent and nature of the loss or damage.

14.12 The principal contractor shall restore work damaged, replace or repair any
unfixed materials or goods which have been destroyed or injured, remove and
dispose of any debris and proceed with the carrying out and completion of the
works.

14.13 In respect of any monies payable arising from an insurance claim, there shall be
opened in the financial institution named in the appendix an account in the joint
names of the employer and the principal contractor. That joint account shall
have three signatories, being a representative of each of the employer and the
principal contractor together with the adjudicator. The account shall require any
two signatories to allow withdrawal of the funds.

14.14 The principal contractor shall authorise the insurers to pay all monies from such
insurance in respect of loss or damage to the account that shall be termed the
insurance fund.

14.15 The monies paid into the insurance fund shall be held on deposit at interest.

14.16 Where the employer, in interim payment certificates, provides payment to the
principal contractor in respect of the costs of restoration, replacement or repair of
the loss or damage arising in respect of the insurance claim, then the employer
shall be entitled to be reimbursed the same from the insurance fund together with
accrued interest.

14.17 The principal contractor shall not be entitled to any payment in respect of the
restoration, replacement or repair of such loss or damage and the removal and
disposal of debris other than the monies received under the insurance.

14.18 The principal contractor shall take out and maintain insurance in respect of
claims arising under clause 13.1.

EXECUTION
Commencement 15.1 The commencement date shall be stated in the appendix.

15.2 The employer will, subject to clause 15.4, on the commencement date give to the
principal contractor access but not exclusive or uninterrupted access to so much
of the site as may be required to enable the principal contractor to commence
and proceed with the works and will, from time to time as the works proceed give
to the principal contractor access to such further portions of the site as may be
required to enable the principal contractor to proceed with the works and to meet
the date for completion.

15.3 The principal contractor shall be deemed to be in control of any building


operations at the site.

15.4 The administrator may, before the commencement date, defer the
commencement date for a period of time not exceeding 60 days.

15.5 The administrator may instruct the principal contractor to suspend the whole or
any part of the works.

Access to the 16.1 The employer and the consultant team shall have access to the works,
Works workshops and other places of the principal contractor, and subcontractors
where any work is being prepared, executed or stored for the works during working
hours.

16.2 The principal contractor shall, by prior arrangement with the administrator, for
the purposes of the obligations under this agreement, have access to any section
of the works handed over to the employer.

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Site Safety 17.1 The principal contractor shall at all times comply with the statutory
requirements concerning site safety.

17.2 The principal contractor shall appoint a safety representative for the site, whose
identity will be made known to the administrator.

17.3 The principal contractor, prior to commencing work on site will supply the
administrator with a copy of the principal contractor’s safety policy.

17.4 The principal contractor shall inform the administrator of any safety-related
incident at the earliest opportunity.

Draft 18.1 Where the administrator intends to issue an instruction the administrator may
Instructions submit a draft instruction to the principal contractor with a request that the
principal contractor submit, within 5 days or such other period as may be agreed,
to the administrator:

• an assessment of any adjustment to the contract sum which may result from
the issue of an instruction
• an assessment of the amount of any additional costs which may arise
• an assessment of the time within which he would execute the instruction
• an assessment of any adjustment to the contract period
• such other information as the administrator may require.

18.2 Any agreement to the principal contractor’s assessments shall be confirmed in


writing by the administrator and shall be binding on the principal contractor and
the employer.

18.3 If agreement is not reached on all or any of the matters set out in clause 18.1, then:

18.3.1 the administrator may nevertheless issue the instruction. The provisions of
this agreement with regard to adjustment of time and additional costs may
apply to any matters not agreed; or

18.3.2 the administrator may decide not to issue the instruction, in which case the
principal contractor will have no claim whatsoever.

Instructions 19.1 The principal contractor shall comply with all instructions issued by the
administrator.

19.2 All instructions shall be in writing.

19.3 Where in any instruction a time period is specified for compliance with the
instruction the principal contractor shall comply with the same.

19.4 If the principal contractor fails to comply with any time period specified in an
instruction, the administrator may, after first giving the principal contractor 5
days notice of the intention, cause others to be employed to carry out such work as
may be necessary to comply with the instruction. All costs incurred in obtaining
compliance with the instruction shall be ascertained by the administrator and
shall be for the principal contractor’s account.

19.5 For the avoidance of doubt, it is confirmed that the administrator shall have power
to issue instructions to the principal contractor prior to but not after the issue of
the completion certificate.

Setting out 20.1 Prior to the commencement date, the administrator shall arrange for the site to
be identified by beacons and benchmarks or any other method as may be agreed
with the principal contractor and physically handed over to the principal
contractor.

20.2 The administrator shall furnish to the principal contractor, by either dimensioned
drawings or supervision such information as shall enable the principal contractor
to set out the works.

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20.3 The principal contractor shall be responsible for and shall at the principal
contractor’s cost amend any errors arising from the principal contractor’s
inaccurate setting out.

20.4 The principal contractor shall at the principal contractor's cost reinstate any
disturbance to the setting out under clause 20.1.

Assignment 21.1 Neither the employer, nor the principal contractor, shall assign any rights or
obligations under this agreement without the written consent of the other party.

Subcontractors 22.1 Any subcontractor appointed by the principal contractor shall enter into a
contract with the principal contractor incorporating either the NJPC building
subcontract or the NJPC building nominated subcontract which conditions shall
not be amended. A nominated subcontractor shall also enter into an NJPC
building employer / nominated subcontractor agreement. The administrator
shall ensure that an agreement is in place prior to a nominated subcontractor
commencing work.

22.2 No sub-letting by the principal contractor shall in any way relieve the principal
contractor from responsibility for the execution and completion of the works.

Selected 22.3 This agreement may necessitate the appointment of selected subcontractors in
Subcontractors which case the following provisions shall apply.

22.4 Where it is stated in the contract documents that certain work or the supply of
certain materials or goods shall be carried out by a subcontractor to be agreed
between the administrator and the principal contractor such subcontractor
shall be called a selected subcontractor.

22.5 A list of potential subcontractors shall be drawn up. Both the administrator and
the principal contractor may place names on the list subject to the agreement of
the other party.

22.6 The consultant team shall prepare documentation sufficient for obtaining tenders
for work to be carried out, or goods or materials to be supplied by a selected
subcontractor. The principal contractor shall be consulted over the preparation
of the documentation and shall approve the same prior to tenders being sought.
Tenders shall be sent out by and returned to the administrator for opening in the
presence of the principal contractor.

22.7 The administrator, after consultation with the principal contractor, shall choose
the tenderer to be appointed. The administrator shall issue an instruction to
confirm the appointment.

22.8 If a selected subcontractor’s employment is cancelled the administrator and


principal contractor shall, jointly, take immediate steps to appoint another using
the procedures set out above to continue and complete the work let under the
earlier contract.

22.9 Once appointed any selected subcontractor shall become the contractual
responsibility of the principal contractor

Nominated 22.10 This agreement may necessitate the appointment of nominated subcontractors
Subcontractors in which case the following provisions shall apply:

22.10.1. where it is stated in the contract documents that certain work or the supply of
certain materials or goods shall be carried out by a subcontractor to be
nominated by the administrator then such subcontractor shall be called a
nominated subcontractor;

22.10.2. no nominated subcontractor shall be appointed where the principal


contractor makes objection;

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22.10.3. the employer shall be liable for and indemnify the principal contractor
against any failure to perform on the part of the nominated subcontractor;

22.10.4. if a nominated subcontractor’s employment is cancelled the administrator


shall take immediate steps to appoint another.

Direct 23.1 This agreement may necessitate the engagement by the employer, incidental to,
Contractors but not as part of the works, direct contractors to execute works at the site or to
supply materials or goods, in respect of which the principal contractor shall have
the obligations set out in this clause.

23.2 The principal contractor shall have no obligation to allow any contractor on site
who has not been engaged by the employer as a direct contractor under the
terms of the NJPC building direct contract.

23.3 The administrator shall ensure that each direct contractor will:

• provide the principal contractor with all necessary detailed programming


information
• provide the principal contractor with a copy of the direct contractor’s
method statement
• in carrying out the direct works have regard to the works
• consult, liase and co-operate with the principal contractor.

23.4 The principal contractor shall in respect of the works to be executed by or the
materials or goods to be supplied by any direct contractors:

• incorporate into the programme provisions for the execution of such works or
supply of such materials or goods and provide all necessary programming
information to the direct contractors
• consult liase and co-operate with direct contractors, and co-ordinate the
execution of such works or the supply of such materials or goods with the
works
• monitor the progress of such works or supplies and report to the administrator
any deviation from the programme
• permit the direct contractors the use of such site facilities as the principal
contractor may have available on site.

23.5 Where works by a direct contractor are to be handed over to the principal
contractor in order that the works may continue, the following provisions shall
apply as to handover either of the whole of the direct works or, if appropriate,
sections of the direct works:

23.5.1 the direct contractor shall give 5 days notice to the administrator and the
principal contractor of the date that either a section or the whole of the
direct works are anticipated to be ready for handover (‘the handover date’);

23.5.2 the principal contractor, direct contractor and administrator shall on the
handover date carry out an inspection of the sections or whole of the direct
works.

23.6 Where the section or the whole of the direct works, as appropriate, are ready for
handover the administrator shall issue a handover certificate and, if appropriate,
the principal contractor shall accept the same.

Antiquities 24.1 All antiquities, fossils, coins or articles of value and structures and other remains or
things of geological, archaeological or historical interest discovered on the site
shall be the property of the employer.

24.2 The principal contractor shall take precautions to prevent workmen or any other
persons from removing or damaging any article and shall, immediately on discovery
notify the administrator.

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24.3 The administrator shall issue instructions for dealing with antiquities. If the
principal contractor, as a result of such instructions, suffers delay and/or
additional costs then the provisions relating to adjustment of time and
additional costs shall apply.

Site Meetings 25.1 The minutes of all site meetings and other relevant meetings are to be circulated
within 3 days of the meeting.

COMPLETION
Acceleration 26.1 The administrator may subject to the provisions of this clause instruct the
principal contractor to accelerate the works.

26.2 Where the administrator considers that the provisions of this clause should apply
the administrator shall issue to the principal contractor an acceleration
enquiry. Upon receipt of the acceleration enquiry the principal contractor shall:

• confirm that acceleration is achievable


• provide an assessment of any adjustment to the contract sum and/or any
additional costs
• confirm that all subcontractors and direct contractors affected by the
acceleration enquiry have been consulted.

26.3 The principal contractor shall reply to the acceleration enquiry within 10 days,
or such other period as may be agreed between the administrator and the
principal contractor.

26.4 The administrator and the principal contractor shall then timeously agree the
revised date for completion or acceleration against progress and the cost
implications.

26.5 If the administrator and the principal contractor agree to accelerate and the cost
implications then the administrator shall issue an instruction confirming details of
the acceleration and fix the date for completion. The agreed cost implications
shall be included in interim payment certificates.

Deceleration 27.1 The administrator may, subject to the provisions of this clause, instruct the
principal contractor to decelerate the works.

27.2 Where the administrator considers that the provisions of this clause should apply
the administrator shall issue to the principal contractor a deceleration enquiry.
Upon receipt of the deceleration enquiry the principal contractor shall:

• confirm that deceleration is achievable


• provide an assessment of any adjustment to the contract sum and/or any
additional costs
• confirm that all subcontractors and direct contractors affected by the
deceleration enquiry have been consulted.

27.3 The principal contractor shall reply to the deceleration enquiry within 10 days,
or such other period as may be agreed between the administrator and the
principal contractor.

27.4 The administrator and the principal contractor shall then timeously agree that
deceleration is possible and the cost implications.

27.5 If the administrator and the principal contractor agree to decelerate and the cost
implications then the administrator shall issue an instruction confirming details of
the deceleration and fix the date for completion. The agreed cost implications
shall be reflected in interim payment certificates.

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Adjustment of 28.1 Upon it becoming apparent, the principal contractor shall give notice to the
Time administrator of any event which it is considered may cause a delay to
completion.

28.2 It shall be a prerequisite to an adjustment of time that the principal contractor


shall within 10 days of the event (or, if appropriate, of the event having become
apparent) submit an application for an adjustment of time together with a concise
statement of the reasons why delay to completion may result.

28.3 Upon receipt of the application, the administrator shall notify the principal
contractor within 5 days whether or not the administrator considers the event in
principle may entitle the principal contractor to an adjustment of time.

28.4 Within 10 days, or such other period as may be agreed between the administrator
and the principal contractor, after the administrator’s consideration the
principal contractor shall give particulars of the expected effects and estimate the
extent of the expected delay to completion.

28.5 The principal contractor shall give such further notices, particulars and estimates
as may be necessary or as the administrator may require for keeping up to date
such particulars and estimates as may previously have been given.

28.6 If, in the opinion of the administrator the date for completion has been or is likely
to be affected by reason of one of the grounds specified in clause 28.10 then the
administrator shall, within 10 days of having received from the principal
contractor all adequate notices, particulars and estimates, make in writing an
adjustment of the date or dates for completion.

28.7 The principal contractor shall not be entitled to an adjustment of time where the
delay was caused by negligence, omission or default of the principal contractor.
Where the delay was caused partially by the principal contractor the right to an
adjustment of time shall be reduced accordingly.

28.8 The administrator shall inform the principal contractor of the reasons for
refusing or reducing an application for an adjustment of time.

28.9 The administrator may give to the principal contractor notice that an
adjustment of time proposed by the administrator may result in a reduction in
time for completion. The principal contractor shall, within 10 days of receipt of
such a notice reply to the administrator giving any reasons why the administrator
should not, in issuing an adjustment of time certificate, reduce the time for
completion. The administrator shall take into consideration any reasons given by
the principal contractor prior to issuing the adjustment of time certificate.

28.10 The grounds for adjustment of time are:

28.10.1 any circumstances arising from either the provisions of this agreement or from
the execution of the works; or

28.10.2 weather conditions which cause a suspension of the whole or part of the
works; or

28.10.3 any breach or act of prevention on the part of the employer or for which the
employer is responsible; or

28.10.4 shortage of labour and/or materials where the principal contractor timeously
placed orders and the principal contractor has taken all practical steps to
avoid or reduce such delay; or

28.10.5 force majeure; or

28.10.6 civil commotion, industrial action, riot, war, strike or lockout; or

28.10.7 any change in the statutory requirements; or

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28.10.8 the carrying out by a local authority or statutory undertaker of work in


pursuance of its statutory obligations in relation to the works, or the failure to
carry out such work; or

28.10.9 delay on the part of a nominated subcontractor.

28.11 If the administrator grants an adjustment of time, the adjustment of time


certificate shall specify in days the adjustment under each and every ground
applied for and shall in addition fix the revised date for completion.

28.12 The administrator shall have power to grant an adjustment of time after the date
for completion in respect of grounds for adjustment arising both before and after
the date for completion.

Completion 29.1 The principal contractor shall complete the works by the date or dates where
there are dates stated for part of the works for completion stated in the appendix,
subject to the acceleration, deceleration or adjustment of time provisions.

29.2 Where there are dates for completion of parts of the works the provisions of
clauses 29.3 to 29.5 shall apply to both the parts of the works and to the whole of
the works and shall be construed accordingly.

29.3 The principal contractor shall give to the administrator 2 days notice of the
snagging period. On the first day of the snagging period the administrator
jointly with the principal contractor shall commence an inspection of the works.
The administrator shall prepare snagging lists.

29.4 The administrator shall, within 2 days of the end of any inspection, deliver copies
of the snagging lists to the employer and the principal contractor. After the date
for completion where the employer does not wish the principal contractor to
carry out all or any of the items in the list the administrator may make an
adjustment to the contract sum.

29.5 When, in the opinion of the administrator, the items listed in the snagging lists
have been carried out and the works are complete and have satisfactorily passed
any final test that may be prescribed by the contract documents, the
administrator shall immediately issue a completion certificate. Completion of
the works shall be deemed to have taken place on the date named in such
certificate.

29.6 The principal contractor shall hand over to the administrator all as-built
drawings, local or statutory authority approved drawings, permits, occupation
certificate, manuals and other documentation due to be supplied in accordance with
the contract documents. The principal contractor shall submit the same no later
than 30 days after issue of the completion certificate.

Early 30.1 The employer may at any time cause the administrator to give to the principal
Occupation contractor an early occupation notice of the employer's intention to take early
occupation of the relevant part of the works. Early occupation shall not take place
until such date as may be agreed between the administrator and the principal
contractor.

30.2 The provisions of clause 29.4 and 29.5 shall apply to the relevant part.

30.3 If the employer does not require the administrator to issue an instruction under
clause 29.4 the administrator shall instruct the principal contractor to carry out
the matters on the snagging list within such time period as the administrator may
specify.

Defects Liability 31.1 Any defects that appear within the defects liability period shall be specified in
Period defects lists, which the administrator may deliver to the principal contractor
and the employer from time to time during the defects liability period. The
principal contractor shall within 20 days, or such other period as the
administrator may specify, of the issue of the defects list make good all matters

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referred to at no cost to the employer. The employer may require the


administrator to instruct that all or some of the matters in a defects list are not
carried out by the principal contractor. The retention shall be adjusted.

31.2 If the principal contractor fails to make good any matters referred to on a defects
list, the employer may employ and pay other persons to carry out and complete
the same. The retention will be adjusted to take account of any costs incurred by
the employer under this provision.

31.3 For the avoidance of doubt, items appearing on snagging lists should not be
carried forward to a defects list, but should be dealt with under the snagging
procedures.

31.4 No defects list shall be issued after the expiry of the defects liability period.

31.5 When, upon expiry of the defects liability period and in the opinion of the
administrator all defects specified in defects lists have been made good the
administrator shall issue a certificate of making good defects and completion of
making good defects shall be deemed to have taken place on the date named in
such certificate.

PAYMENT
Advance 32.1 Where an advance payment applies, following the presentation by the principal
Payment contractor of a guarantee, if required, in terms approved by the administrator the
amount of the advance payment shall be certified by the administrator for
payment to the principal contractor.

32.2 The advance payment shall be payable to the principal contractor on the date or
dates stated in the appendix.

32.3 The advance payment will not be subject to retention.

32.4 The advance payment shall be repaid and the guarantee reduced in the manner
stated in the appendix.

32.5 Upon the issue of a completion certificate or operation of the cancellation


provisions any balance of the advance payment then outstanding shall immediately
become due and payable by the principal contractor to the employer.

Adjustments to 33.1 Where an instruction results in an adjustment to the contract sum, it shall be
the Contract measured and valued as follows:
Sum
33.1.1 items of additional work of similar character and executed under similar
conditions shall be priced at the rates in the pricing document;

33.1.2 items of additional work not of a similar character or not executed under
similar conditions shall be priced, where applicable, at comparable rates
adjusted to suit the changed circumstances;

33.1.3 in the case of the omission of an item of work, such work shall be valued at the
rates in the pricing document, but where the omission of such work varies
the circumstances in which the remaining work is carried out, the remaining
work shall be valued in terms of clause 33.1.2;

33.1.4 in any circumstances in which the administrator considers that the


measurement and valuation under the above would be inappropriate a fair
valuation shall be used to ascertain the adjustment to the contract sum.

33.2 Where a bill of quantities is, in total or in part, approximate or where it is clearly
stated in the contract documents that work will be remeasured, clause 33.1 shall
be used to determine the value of such remeasured work.

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33.3 Where in the appendix it is stated that the works shall be carried out on the basis
of a lump sum contract, the provisions of clause 33.1.4 shall be used to determine
the value of any additional or varied work, save where the subcontractor has
provided a contract sum analysis which will be used to determine the value of the
same.

33.4 Where work has been identified under a provisional sum in the pricing
document the value of this work shall be omitted from the contract sum and the
work as actually executed shall be measured and valued in terms of clause 33.1
and added to the contract sum.

33.5 Where work has been identified as being executed by a direct contractor payment
for the costs incurred by the principal contractor shall be ascertained in terms of
clause 33.1.4.

33.6 Where it is required that the contract sum or the retention shall be assessed or
adjusted, the provisions of clause 33.1 shall apply to such assessment or
adjustment.

Additional Costs 34.1 If the principal contractor considers that he has incurred additional costs and
provided that such additional costs were not as a result of one of the matters set
out in clause 34.2 then the principal contractor shall be entitled to make a claim
for additional costs.

34.2 The principal contractor shall not be entitled to make a claim for additional costs
in respect of:

• weather conditions
• a shortage of labour or materials, unless supplied by the employer
• force majeure
• omission, default or any breach of this agreement by or on behalf of the
principal contractor
• civil commotion, industrial action, riot, war, strike or lockout.

34.3 The principal contractor’s notification of a claim shall be made within 10 days of
it becoming apparent that additional costs have been incurred.

34.4 The principal contractor shall in support of the application submit to the
administrator upon request such concise information as the administrator may
require.

34.5 Upon receipt of all necessary information from the principal contractor, the
administrator shall within 10 days ascertain the amount if any to be paid to the
principal contractor.

34.6 Any amount so ascertained shall be added to the next interim payment
certificate.

Damages for 35.1 If the principal contractor fails to complete the works by the date for
Non-completion completion, then the administrator shall issue a certificate of non-completion.

35.2 Subject to the issue of a certificate of non–completion the principal contractor


shall pay or allow to the employer a sum calculated at the rate or rates specified in
the appendix as liquidated and ascertained damages for the period between the
date for completion and the completion date. Where the period is part of a week
the sum shall be calculated pro-rata.

35.3 The employer may deduct the same from any monies due or to become due to the
principal contractor under this agreement or the employer may recover the
same from the principal contractor as a debt.

35.4 Where an early occupation notice is in effect, the rate or rates specified in the
appendix as liquidated and ascertained damages shall be adjusted pro-rata to the
value of the part of the works occupied. The value shall be ascertained from

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information in the interim payment certificate issued immediately prior to the


adjustment being made.

Payment to 36.1 The principal contractor shall submit a payment application to the
Principal administrator to be received no later than 8 days before the date stated in the
Contractor appendix for issue of interim payment certificates.

36.2 The administrator shall issue interim payment certificates as stated in the
appendix to the principal contractor for payment by the employer. A copy of
each interim payment certificate shall concurrently be issued to the employer.
The administrator shall issue interim payment certificates whether or not the
principal contractor has submitted a payment application.

36.3 The amount valued and certified for payment by the administrator in an interim
payment certificate shall include:

36.3.1 an estimate of the total value of the work properly executed by the principal
contractor;

36.3.2 an estimate of the total value of materials and goods delivered to the site for
incorporation into the works, provided that the value of such materials and
goods shall only be included as and from such times as they are properly and
not prematurely delivered and are adequately protected;

36.3.3 any amount payable under the fluctuation provision;

36.3.4 an estimate of the total value of all materials and goods in terms of clause
36.4;

36.3.5 interest due under this agreement;

36.3.6 ascertained additional costs;

36.3.7 a deduction of the amounts previously certified;

36.3.8 a deduction of any amount which may be deducted and retained by the
employer in terms of clause 36.11.

36.4 The amount stated as due in an interim payment certificate may, at the discretion
of the administrator, include the value of any materials or goods before delivery to
the site, provided that, where required, the principal contractor provides to the
administrator with the payment application a bond for the full value of the
materials or goods being claimed for. The bond shall be in such a form as the
administrator may require. The bond may be called upon in respect of non-
delivery or incorrect or defective delivery of the materials or goods.

36.5 Where the amount stated as due in an interim payment certificate is not the
same as contained in the payment application the administrator shall, at the time
of issue of the interim payment certificate, provide to the principal contractor a
brief explanation of the differences.

36.6 Upon the issue of an interim payment certificate the employer shall pay to the
principal contractor or in the case of a negative certificate the principal
contractor shall pay to the employer within the period stated in the appendix the
full amount certified for payment subject to any deductions in accordance with this
Agreement.

36.7 Where the issue of an interim payment certificate by the administrator is


delayed or where payment of such certified amount is delayed, the employer shall
be liable, without prejudice to any rights the principal contractor may have in
terms of clause 41.1 to pay interest at the annual effective yield of treasury bills
plus five percent to the principal contractor on such amount from the due date for
payment up to and including the date on which payment is received by the
principal contractor. In the case of a negative certificate, if the principal

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contractor does not make the repayment in the period stated the principal
contractor shall be liable to pay the employer interest on the same basis.

36.8 Without prejudice to any other rights and remedies which the principal contractor
may possess, if the employer fails to make any payment to the principal
contractor as provided and such failure shall continue for 5 days after the
principal contractor shall have given the employer notice of the same, then the
principal contractor may suspend the works until such payment including interest
shall have been made and such suspension shall not be deemed a failure on the
part of the principal contractor to proceed with the works.

36.9 The administrator shall issue interim payment certificates as stated in the
appendix after the completion date and up to the issue of the final payment
certificate.

36.10 The issue of an interim payment certificate or the final payment certificate shall
not be evidence that the work and materials and goods to which it relates are in
accordance with this agreement.

Retention 36.11 In respect of any interim payment certificate issued the employer will be entitled
to retain the retention. The amount that may be retained by the employer shall be
the retention percentage of the value of the work and materials.

36.12 The retention fund shall be dealt with in the following manner unless otherwise
agreed between the parties:

36.12.1 the administrator shall open in the financial institution named in the appendix
an account in the joint names of the employer and the principal contractor.
That joint account shall have three signatories, being a representative of each
of the employer and the principal contractor together with the adjudicator.
The account shall require any two signatories to allow withdrawal of the funds;

36.12.2 all amounts that constitute the retention fund shall immediately as they are
retained be paid into the said account, on deposit at interest, and the principal
and interest shall be held in trust for the employer as security for the due
completion of the works and the making good of defects during the defects
liability period.

36.13 The principal contractor shall on the issue of the certificate of making good
defects be entitled to release of the fund including all interest accrued.

36.14 If, upon application being made by the principal contractor for early release of the
retention monies being held against work carried out by a subcontractor, the
administrator considers that such retention monies may be released then the
same shall be released together with all interest accrued. The retention monies
released shall be included in the next interim payment certificate issued.

Direct Payment 36.15 If, upon application being made to the administrator by a selected or nominated
subcontractor there appears to be grounds for payment to be made direct by the
employer to the selected or nominated subcontractor, the employer may pay
monies due to the selected or nominated subcontractor upon a certificate issued
by the administrator and deduct the amount from any sums otherwise payable to
the principal contractor.

Fluctuations 37.1 Where it is stated in the appendix that this agreement is a firm-price contract, the
provisions of clause 37.7 shall apply. Where it is stated in the appendix that under
this agreement fluctuation of wages and materials is allowable, the provisions of
clauses 37.8 to 37.15 shall apply.

37.2 Any adjustment to the contract sum as a result of a fluctuation shall be net after
discounts and excluding any addition for profit.

37.3 A fluctuation shall be subject to an addition of a single five percent administration


fee which shall be limited in respect of any single item to the figure stated in the

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appendix. The principal contractor shall pay to the subcontractors such part of
the fee as relates to the sublet works.

37.4 A fluctuation occurring after the date for completion will not be taken into
account when calculating the adjustment to the contract sum.

37.5 The principal contractor shall, on request, make available to the administrator,
all documentation deemed necessary to verify the fluctuation.

37.6 Scaffolding, formwork, plant, small tools, and items not incorporated into the works
shall not be subject to fluctuation.

Firm Price 37.7 Under a firm-price, no adjustment to the contract sum shall be made in respect of
fluctuation or any statutory change.

Fluctuation of 37.8 If at any time between the tender date and the completion date, statutory
Wages fluctuation takes place and the principal contractor has submitted with each
payment application to the administrator timesheets together with a weekly
return of the number of productive hours worked, then the contract sum shall be
adjusted. Only Government Gazetted labour rates will be considered for
fluctuation purposes.

Fluctuation in 37.9 If at any time between the tender date and the completion date, fluctuation
price of takes place in materials incorporated in the works or fuel for site plant or transport
Materials and then the contract sum shall be adjusted.
Fuel
37.10 If the principal contractor wishes to be protected against fluctuation in the cost
of any basic materials incorporated in the works or from fluctuation in transport
costs of materials from local merchants or suppliers to the works or fuel for site
plant or transport the principal contractor is to attach to the tender a base price
list showing material and transport prices separately.

37.11 In support of the base price list the principal contractor is to furnish, either with
the tender or when instructed, current merchants’ quotations for quantities required
for the whole of the works.

37.12 Orders for materials on the base price list shall be placed timeously after the date
of acceptance of the tender; otherwise no fluctuation will be allowed.

37.13 Should the principal contractor find it necessary to purchase materials at prices in
excess of those on the base price list then the principal contractor must obtain
the most favourable current price at the time of placing the order. The principal
contractor shall maintain a record of the steps taken to obtain such price, which
the administrator may call for at any time.

37.14 Adjustment to the contract sum will not be considered for fluctuation of materials,
transport or fuel not included in the base price list. The principal contractor may
apply to the administrator to add items to the base price list that have arisen as a
result of instructions.

37.15 The principal contractor shall provide a fluctuations return with each payment
application which will set out every item in the base price list which has been
affected by fluctuation since the last payment application and show the rates
actually paid as compared to the base price list. The return shall have annexed to
it copies of signed orders on suppliers, signed delivery notes, suppliers’ invoices
and suppliers’ monthly statements in respect of each item where a claim is being
made. The fluctuations return may, when necessary contain details of
fluctuations which have occurred at any time since the submission of the previous
two fluctuation returns to allow for information which was late. The principal
contractor shall afford the administrator every facility in obtaining written
confirmation from the supplier that the fluctuation has occurred and the reasons
for them.

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Final Account 38.1 Within 60 days, or such other period stated in the appendix, after the completion
date, the principal contractor shall send to the administrator all documents
necessary for the purpose of the final measurement and valuation.

38.2 If the principal contractor fails to send the necessary documentation within the
time specified in clause 38.1, the administrator shall prepare the final
measurement and valuation based on information known.

38.3 Within the period stated in the appendix of receipt of the documentation under
clause 38.1 or a failure to provide the documentation under clause 38.2 the final
account shall be prepared by the administrator. Within 20 days of its preparation
discussions with the principal contractor with a view to agreeing the same shall
be concluded and the final account shall be submitted to the principal
contractor. The principal contractor shall signify acceptance by signature and
return of the final account within 5 days of receipt. Such signature shall be
conclusive evidence that the amounts shown are accepted by the principal
contractor in full and final settlement of all financial claims arising out of or in
connection with this agreement.

38.4 If the administrator fails to prepare the final account within the period stated
under clause 38.3 the principal contractor will be entitled to interest on the
outstanding sum due from the expiry of the stated period as if it were a due date for
payment under clause 36.7.

38.5 If the principal contractor fails to sign and return the final account in the stated
period the final payment certificate shall be issued in the figure stated in the final
account.

38.6 By the date stated in the appendix for issue of an interim payment certificate
following the return by the principal contractor of the final account the
administrator shall issue the final payment certificate which shall state the sum
of the amounts already paid to the principal contractor under interim payment
certificates; and the contract sum adjusted as necessary in accordance with the
terms of this agreement.

38.7 The difference between the two sums shall be expressed in the said certificate as a
balance due to the principal contractor from the employer or to the employer
from the principal contractor. Subject to any deductions or set-off authorised by
this agreement or otherwise by law, the said balance shall, as from the date for
payment stated in the appendix, be a debt payable by the employer to the
principal contractor or by the principal contractor to the employer.

Currency of 39.1 Where it is so stated, the principal contractor shall be entitled to receive payment
Account of the amounts due under this agreement in the foreign currencies and proportions
as set out in the appendix.

39.2 The exchange rate(s) to be used for calculation of the amounts payable shall be as
stated in the appendix, which shall be, fixed by the employer prior to the tender
date.

CANCELLATION
Cancellation by 40.1 Without prejudice to any other rights or remedies the employer may have, this
Employer agreement may be cancelled by the employer in the event of:

• the insolvency or liquidation of the principal contractor


• the principal contractor without cause under this agreement wholly
suspending the carrying out of the works before completion
• the principal contractor refusing or neglecting to comply with an instruction
and by such refusal or neglect the works are materially affected
• it becoming apparent that the principal contractor will fail to complete the
works by the date for completion.

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40.2 Should the principal contractor default due to any of these events then the
employer may direct the administrator to notify the principal contractor of the
intention to cancel this agreement. Should the principal contractor remain in
default for a period of 10 days after receipt of such notice then the administrator
may notify the principal contractor of the cancellation.

40.3 Where this agreement is cancelled and so long as it has not been reinstated or
continued then the following provisions shall apply.

40.4 Execution of the works shall cease immediately and the principal contractor
shall, subject to the provisions of this clause, vacate the site and care of the works
shall pass to the employer.

40.5 The employer may employ and pay other persons to carry out and complete the
works and rectify all defects in that part of the works executed by the principal
contractor and may use all temporary buildings, plant, equipment, and materials
intended for, delivered to and placed on or adjacent to the site, and may purchase
all materials and goods necessary for the carrying out and completion of the
works .

40.6 The principal contractor shall, unless prohibited by law, if so required by the
administrator within 10 days of the date of cancellation assign to the employer,
without payment, the benefit of any agreement for the supply of materials or goods
and/or for the execution of any work for the purposes of this agreement. The
assignment shall be on terms that a supplier or subcontractor shall be entitled to
make objection to any further assignment by the employer. In any case, the
employer may pay any supplier or subcontractor for any materials or goods
delivered or works executed whether before or after the date of cancellation if not
already paid for by the principal contractor. Payments made under this provision
may be deducted from any sum due or to become due to the principal contractor.

40.7 The principal contractor shall when requested but not before remove from the
site any temporary buildings, plant, equipment, and materials. If the principal
contractor does not comply then the administrator may remove and sell any such
property of the principal contractor, the proceeds less all costs incurred being
held to the credit of the principal contractor.

40.8 The administrator shall determine the delay to completion of the works which
such cancellation shall have caused and the principal contractor shall be liable to
the employer for liquidated and ascertained damages.

40.9 The principal contractor shall allow or pay to the employer the amount of any
loss and/or expense caused to the employer by the cancellation. Until completion,
the employer shall not be bound by any provision of this agreement to make any
further payment to the principal contractor. Within 60 days of completion, the
administrator shall certify the amount of such loss and/or expense caused to and
properly incurred by the employer by the cancellation. If such amounts when
added to the monies paid to the principal contractor before the date of
cancellation exceed the total amount which would have been payable on due
completion in accordance with this agreement, the difference shall be a debt
payable by the principal contractor to the employer and if the said amounts when
added to the said monies be less than the said total amount, the difference shall be
a debt payable by the employer to the principal contractor.

40.10 The principal contractor shall not be relieved of any obligations and liabilities in
connection with that portion of the works executed prior to cancellation.

Cancellation by 41.1 Without prejudice to any other rights or remedies the principal contractor may
Principal have, this agreement may be cancelled by the principal contractor in the event
Contractor of:

• the insolvency or liquidation of the employer where the trustee or liquidator


elects not to proceed in terms of this agreement with the works
• failure by the employer to pay the amount due to the principal contractor on

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NJPC BUILDING CONTRACT

any interim payment certificate by the due date


• interference or obstruction by the employer with the issue of any certificate
due under this agreement
• failure by the administrator to issue any interim payment certificate
• failure to give possession of the site after the deferment of possession
provided for in clause 15.4
• the works being suspended for an aggregated total of more than the number
of days stated in the appendix for any reason other than by the default of the
principal contractor.

41.2 Should the employer be in default due to any of the above events then the
principal contractor may give notice to the employer and the administrator of
the principal contractor’s intention to cancel this agreement without prejudice to
any other rights he might have. Should the employer or the administrator as the
case may be remain in default for a period of 10 days after receipt of such notice
then the principal contractor may notify the employer of the cancellation of this
agreement.

41.3 Where this agreement is cancelled in terms of this clause then the following
provisions shall apply.

41.4 Execution of the works shall cease immediately and the principal contractor shall
vacate the site and care of the works shall pass to the employer.

41.5 A final account shall timeously be prepared for that portion of the works
executed by the principal contractor.

41.6 The principal contractor shall not be relieved of any obligations and liabilities in
connection with that portion of the works executed prior to Cancellation.

41.7 The employer shall be liable to the principal contractor for the cost of materials
and goods including those materials and goods ordered by the principal
contractor prior to the cancellation of this agreement and for which the principal
contractor is bound to accept and make payment provided that such materials and
goods are delivered to the site and handed over to the employer in good order.

41.8 The employer shall be liable to the principal contractor for additional costs
resulting from such cancellation.

41.9 The value of the works executed by the principal contractor and the value of
materials and goods supplied shall continue to be certified by the administrator
and paid for by the employer.

DISPUTES
Disputes 42.1 Any dispute arising out of this agreement shall be resolved in accordance with this
clause.

Adjudication 42.2 The administrator shall, prior to the issue of the instruction to proceed obtain
from the NJPC the name of the adjudicator to be appointed.

42.3 When any dispute referred to in clause 42.1 arises, which cannot be resolved
between the parties, it shall be referred in writing to and settled by the adjudicator.

42.4 The adjudication shall be conducted in accordance with the NJPC adjudication
rules.

42.5 If a dispute referred to the adjudicator also concerns a dispute between the
principal contractor and any subcontractor, the principal contractor may
submit the subcontract dispute to the adjudicator at the same time as the dispute
under this agreement. The adjudicator shall then settle the two disputes together
and references to the parties shall be deemed to include the subcontractor.

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42.6 The adjudicator settles the dispute as an independent adjudicator and not as an
arbitrator. The adjudicator’s decision is enforceable as a matter of contractual
obligation between the parties and not as an arbitral award.

42.7 The adjudicator’s powers include the power to review and revise any action or
inaction of the administrator relating to the dispute. The adjudicator shall have
full power to review and revise any decision, opinion, instruction, valuation,
certificate or notice and to order such measurements and valuations as may in the
adjudicator’s opinion be necessary to determine the respective rights of the
parties.

42.8 If the adjudicator resigns, dies, is otherwise unable to act, or fails to issue a
decision as provided for under the NJPC adjudication rules either party shall
apply to the NJPC for the nomination of a new adjudicator. The NJPC shall
appoint a new adjudicator. The new adjudicator has power to settle disputes that
were currently submitted to the predecessor, but had not been settled. Disputes
previously settled may not be re-opened before the new adjudicator.

42.9 No reference to adjudication may be made later than 10 days after the issue of the
final payment certificate save in respect of matters concerning defects and the
release of retention.

Arbitration 42.10 If, after the adjudicator notifies the decision, a party is dissatisfied, that party may
give notice to the other party of an intention to refer the matter to arbitration.

42.11 Any notice shall be made within 10 days of the notification of the adjudicator’s
decision.

42.12 No arbitration proceedings shall be commenced earlier than either 10 days after
the issue of the final payment certificate or the conclusion of any outstanding
references to adjudication whichever is the later.

42.13 No matter may be referred to arbitration that has not previously been the subject of
a decision by the adjudicator.

42.14 Any arbitration proceedings shall be subject to the UNCITRAL rules current at the
date of the reference to arbitration.

42.15 The NJPC shall be the appointing body for the purposes of the UNCITRAL rules.

42.16 The cancellation of this agreement shall have no effect on the provisions of this
clause.

DEFINITIONS
Definitions 43.1 In this agreement, the following words and expressions shall have the meanings
given to them in this clause.

43.2 ‘acceleration’ means: the acceleration of the works following an acceleration


enquiry.

43.3 ‘acceleration enquiry’ means: an enquiry issued by the administrator where it is


intended to accelerate the works.

43.4 ‘additional cost’ means: costs and/or losses incurred by the principal contractor
over and above those that are recoverable under the adjustment of contract sum
provisions or elsewhere in the conditions of contract.

43.5 ‘adjudicator’ means: the person appointed to act as adjudicator under this
agreement, who shall be assigned by the NJPC and who shall be a person
registered on the NJPC list of adjudicators.

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43.6 ‘adjustment of time’ means: a change of the date for completion specified in the
appendix.

43.7 ‘administrator’ means: the person named as such in the appendix or such other
person as the employer shall from time to time appoint as the employer’s
representative who shall be a member of a constituent body of the NJPC, and who
is notified to the principal contractor as acting as the administrator.

43.8 ‘agreement’ means: this agreement entered into between the employer and the
principal contractor incorporating the NJPC building contract.

43.9 ‘all risks insurance’ means insurance that provides cover against any physical
loss or damage to work executed and materials on site and contractor’s plant on
site.

43.10 ‘appendix’ means: the appendix to this agreement.

43.11 ‘base price list’ means: a list submitted with the tender detailing those items in
respect of which the principal contractor wishes the fluctuation provision to
apply. The list shall contain the base price for each item included on the list. The
base prices shall be current market prices as at the tender date. The principal
contractor may apply to the administrator to add items to the base price list
which were not contemplated at tender but which have arisen as a result of
instructions.

43.12 ‘bill of quantities’ means: a document, drawn up in accordance with the edition of
the System of Measurement of Building Work in Zimbabwe approved by the
Zimbabwe Institute of Quantity Surveyors current at the tender date.

43.13 ‘certificate of making good defects’ means: a certificate issued by the


administrator at the end of the defects liability period when all items on defects
lists have been rectified.

43.14 ‘commencement date’ means: the date on which the works are to commence on
site.

43.15 ‘completion certificate’ means: the certificate issued by the administrator upon
completion of the works and attendance to the snagging lists by the principal
contractor.

43.16 ‘completion date’ means the date on which the administrator certifies that the
works are complete. Where appropriate the term shall also apply to completion of
a part or section of the works.

43.17 ‘completion of the works’ means: the state of the works when the administrator
is satisfied that the works are complete, snagging lists have been attended to and
the completion certificate is issued.

43.18 ‘consultant team’ means: collectively those consultants listed in the appendix and
any other consultants engaged by the employer and notified in writing to the
principal contractor. The term consultant team includes servants, agents, and
others for whom they are responsible.

43.19 ‘contract documents’ means: this agreement, and such other documents as are
identified in the appendix. In the event of inconsistency the documents shall be
construed to have precedence in the following order:

• this agreement
• the appendix
• the documents in the order in which they are listed in the appendix

43.20 ‘contract drawings’ means: the drawings used to prepare the tender documents
as listed in the appendix;

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43.21 ‘contract sum’ means: the value of the works as stated in the appendix and as
adjusted from time to time under this agreement.

43.22 ‘contract sum analysis’ means: a document drawn up by the principal


contractor to amplify a lump-sum price given as the contract sum.

43.23 ‘date for completion’ means: the date as specified in the appendix or as
subsequently changed in accordance with the acceleration, deceleration or
adjustment of time provisions.

43.24 ‘day’ means: working day. There will be 5 working days in a week unless otherwise
stated in the appendix. For the purposes of calculating periods in respect of any
payments to be made under this agreement, statutory holidays and the annual
construction industry shutdown shall be deemed to be working days.

43.25 ‘deceleration’ means: the deceleration of the works following a deceleration


enquiry.

43.26 ‘deceleration enquiry’ means: an enquiry issued by the administrator where it is


intended to decelerate the works.

43.27 ‘defect’ means: materials or workmanship not in accordance with the contract
documents. Provided that the principal contractor shall not be required to make
good at the principal contractor’s cost any damage by action of the elements
which may appear after completion unless the administrator shall decide that
such damage is due to injury which took place before completion.

43.28 ‘defects liability period’ means: the period ending 12 months from the date of the
completion certificate or such lesser period stated in the appendix.

43.29 ‘defects list’ means: any list issued by the administrator during the defects
liability period detailing defects arising during this period.

43.30 ‘direct contract’ means: an agreement entered into between the employer and a
direct contractor incorporating the NJPC building direct contract.

43.31 ‘direct contractor’ means: a contractor employed by the employer to carry out
works or to supply goods or materials incidental to but not forming part of the
works.

43.32 ‘direct works’ means: works to be carried out or goods or materials to be supplied
by a direct contractor incidental to but not forming part of the works.

43.33 ‘early occupation notice’ means a notice issued by the administrator to enable
the employer to take early occupation of part of the works.

43.34 ‘employer’ means: the person named as such in this agreement.

43.35 ‘employer’s risks’ means:

• war, hostilities, invasion, act of foreign enemies


• rebellion, revolution, insurrection, or military or usurped power, or civil war
• ionising radiation, or contamination by radio-activity from any nuclear fuel, or
from any nuclear waste from the combustion of nuclear fuel, radio-active toxic
explosive, or other hazardous properties of any explosive nuclear assembly or
nuclear component thereof;
• pressure waves caused by aircraft or other aerial devices travelling at sonic or
supersonic speeds
• riot, commotion or disorder, unless solely restricted to employees of the
principal contractor or subcontractors and arising from the conduct of the
works
• loss or damage due to the use or occupation by the employer of any part of
the works under the early occupation provisions or under sectional completion
arrangements specified in the contract documents

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• loss or damage to the extent that it is due to the design of the works except in
respect of the principal contractor’s designed works
• any operation of the forces of nature against which the principal contractor
could not have been expected to take precautions.

43.36 ‘external property’ means: any property, real or personal, excluding the works,
work executed and/or materials on site up to and including the date of issue of the
completion certificate or the date of cancellation of the principal contractor’s
employment under the cancellation provisions whichever is the earlier.

43.37 ‘final account’ means: the final statement of account issued by the administrator.

43.38 ‘final payment certificate’ means the final financial certificate issued after
preparation of the final account.

43.39 ‘fluctuation’ means: an increase or decrease in the cost of labour and/or materials,
which are incorporated in the works.

43.40 ‘fluctuation return’ means: a return submitted by the principal contractor with
each payment application with details of fluctuations.

43.41 ‘handover certificate’ means the certificate issued by the administrator certifying
that direct works are ready for handover to the principal contractor.

43.42 ‘handover date’ means the date on which direct works are due to be ready for
handover from the direct contractor to the principal contractor.

43.43 ‘insurance fund’ means: a fund established into which any monies receivable
under an insurance claim are paid.

43.44 ‘instruction’ means: any instruction issued by the administrator under the
provisions of this agreement in regard to:

• variation or modification of the design, quality or quantity of the works or the


addition, omission or substitution of any work (including the appointment of a
selected or nominated subcontractor the nature of whose work was not
described in the tender documents)
• the expenditure of a provisional sum
• works to be executed by direct contractors
• any discrepancy in or divergence between the contract documents
• removal from the site of any materials and their substitution by other materials
• removal and/or re-execution of any work executed by the principal contractor
• suspension of any work to be executed under the provisions of this agreement
• dismissal from the works of any person employed thereon
• opening up for inspection of any work covered up
• testing of work and materials
• protection of the works
• amending and making good of any defects
• the delegation of functions to members of the consultant team
• compliance with safety legislation or safe working practices
• environmental issues
• antiquities
• any breach of contract.

No instruction shall vitiate this agreement.

43.45 ‘instruction to proceed’ means: an instruction by the administrator to the


principal contractor confirming acceptance of the principal contractor’s tender
and authorising the principal contractor to take such steps as are necessary to
proceed with the works.

43.46 ‘interim payment certificate’ means: a certificate for payment to the principal
contractor issued at the time stated in the appendix.

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43.47 ‘joint names policy’ means: a policy of insurance that includes the employer, the
principal contractor and all subcontractors, direct contractors and the
consultant team.

43.48 ‘lump sum’ means: a price based on a single tendered amount which shall not be
subject to remeasurement.

43.49 ‘NJPC’ means: the National Joint Practice Committee.

43.50 ‘NJPC adjudication rules’ means: the current edition of the rules as issued by the
NJPC.

43.51 ‘NJPC building contract’ means: the current edition of the contract as issued by
the NJPC.

43.52 ‘NJPC building direct contract’ means: the current edition of the contract as
issued by the NJPC.

43.53 ‘NJPC building employer / nominated subcontractor agreement’ means: the


current edition of the contract as issued by the NJPC.

43.54 ‘NJPC building nominated subcontract’ means: the current edition of the
contract as issued by the NJPC.

43.55 ‘NJPC building subcontract’ means: the current edition of the contract as issued
by the NJPC.

43.56 ‘nominated subcontractor’ means: a subcontractor who is nominated by the


administrator. The term nominated subcontractor includes servants, agents,
suppliers and others for whom the nominated subcontractor is responsible.

43.57 ‘payment application’ means: an application for payment submitted to the


administrator by the principal contractor.

43.58 ‘pricing document’ means: either a bill of quantities, a schedule of rates, a


contract sum analysis, a priced specification or other document as detailed in the
appendix.

43.59 ‘principal contractor’ means: the person named as such in this agreement who
shall be a member of either the Construction Industry Federation of Zimbabwe or
the Zimbabwe Building Contractors Association or any other body recognised from
time to time by the NJPC. The term principal contractor includes servants,
agents, subcontractors, suppliers and others for whom the principal contractor
is responsible.

43.60 ‘principal contractor’s designed works’ means: work specified in the contract
documents as being designed by the principal contractor.

43.61 'productive hours' means: actual hours worked which excludes any additional
percentage added for the purposes of calculating overtime payments.

43.62 ‘programme’ means: the programme produced by the principal contractor.

43.63 ‘project’ means all works required by the employer to be carried out at the site
including the works and any other works to be carried out by direct contractors.

43.64 ‘project insurance’ means: insurance in the joint names of the employer, the
principal contractor and subcontractors, all direct contractors and the
members of the consultant team. The property insured is the permanent works
and materials or equipment for incorporation therein; the temporary works, i.e.
other works erected or constructed for the purpose of making possible the erection
or installation of the permanent works; constructional plant and equipment buildings
or other property owned or supplied by the employer. The risks insured shall be in
two sections.

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Section one will be in respect of all risk insurance together with the employer’s
risks. The sum insured shall be the project value. Policy excesses, to be borne in
accordance with their contractual responsibilities by the principal contractor
and/or subcontractors, and/or direct contractors and/or the members of the
consultant team shall be the sums stated in the appendix for:

• each and every loss arising from storm, tempest, flood water damage,
subsidence collapse and resultant damage caused by defective design, plan,
specification, workmanship or materials
• each and every other loss.

Section two will be in respect of public liability, namely, all sums for which the
insured shall become legally liable to pay as damages in respect of death of or
injury or illness or disease to third parties and/or loss of or damage to third party
property, obstruction, loss of amenities, trespass, nuisance, or any like cause
happening during the period of insurance and arising out of or in the course of the
project. The sum insured shall be the sum stated in the appendix for any one
occurrence, unlimited in all.

43.65 ‘project value’ means: the full reinstatement value of the project including the
contract sum together with the value all direct contract works, fees and other
charges. Where works involve an existing building the project value should also
include the reinstatement value of the building.

43.66 ‘provisional sum’ means: a sum included in the pricing document and so
designated for the execution of works or the supply of goods or materials which
could not be entirely foreseen, defined or detailed prior to the tender; which sum
may be used at the instruction of the administrator.

43.67 ‘relevant part’ means: the part of the works to which an early occupation notice
relates.

43.68 ‘retention’ means: monies retained from interim payment certificates by the
employer as security for completion of the works and the making good of
defects.

43.69 ‘retention fund’ means: the fund established into which all retention monies are
paid.

43.70 ‘retention percentage’ means: the percentage stated in the appendix for
retention. The NJPC will from time to time issue a recommended scale of retention
percentages to be used.

43.71 ‘schedule of rates’ means: a document drawn up by the administrator to be


priced by the principal contractor.

43.72 ‘selected subcontractor’ means: a subcontractor selected by the principal


contractor and the administrator. The term selected subcontractor includes
servants, agents, suppliers and others for whom the selected subcontractor is
responsible.

43.73 ‘site’ means: the site as described in the appendix.

43.74 ‘snagging lists’ means lists of items to be executed prior to completion of the
works.

43.75 ‘snagging period’ means: the period commencing 10 days, or such other period
as may be specified in the appendix, before the principal contractor anticipates
that completion of the works will be achieved.

43.76 ‘statutory fluctuation’ means: only specific increases or decreases stipulated in


the Government Gazette in the standard rate of wages, cost of living allowances or
other statutory compulsory contributions of the staff employed on the works,
whether on the site or in the workshops of the principal contractor and

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subcontractors but not in respect of suppliers or merchants.

43.77 ‘statutory requirements’ means: any act of Parliament, any instrument, rule or
order made under any act of Parliament and any regulation or by-law of any local
authority or statutory undertaker which has any jurisdiction with regard to the works
or with whose services the same are or will be connected.

43.78 ‘subcontractor’ means: a subcontractor appointed by the principal contractor,


and shall, where the context requires include suppliers, selected and nominated
subcontractors. The term subcontractor includes servants, agents, suppliers and
others for whom the subcontractor is responsible.

43.79 ‘tender’ means: the principal contractor’s tender.

43.80 ‘tender date’ means: the date 5 days before the date on which the principal
contractor is due to submit the tender. In the event of a negotiated contract shall
mean the date 5 days before the conclusion of negotiations and agreement of the
contract sum as stated in the appendix or such other date as may be agreed
between the parties.

43.81 ‘tender documents’ means the documents comprising the principal contractor’s
tender as listed in the appendix. In the case of a negotiated contract shall mean
the documents on which the negotiations have been based.

43.82 ‘timeously’ means: in connection with any action to be taken by a party, at such
time, having regard to the programme as is not detrimental to the completion of
the works by the date for completion.

43.83 ‘works’ means: the work to be carried out by the principal contractor as
described in the appendix including instructions.

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ACKNOWLEDGEMENTS

This document was produced by the Building Contracts Committee of the


National Joint Practice Committee, established to produce a new building
contract for Zimbabwe.

Members of the Building Contracts Committee were nominated by the


member bodies of the National Joint Practice Committee, and they were as
follows:

Chairman:
Julian Conrad Institute of Architects Zimbabwe

Vice Chairman:
Neil Bradshaw Construction Industry Federation of Zimbabwe

Members:
Raymond Kay National Property Association
Neil Kaplan Zimbabwe Institute of Quantity Surveyors

Insurance subsection
Phillip Nhekairo Institute of Architects Zimbabwe
David Coleman Construction Industry Federation of Zimbabwe
L. Maraya Insurance Council

Co-opted for legal and drafting:


Martin King
Drafts were prepared and funded by Martin King of CDMS Associates.

The Zimbabwe Construction Industry Council acknowledges the contribution of all


these people with gratitude as well as the many others who assisted the Building
Contracts Committee.

Edition One

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