News & Info: Contractual & Legal

Amended clauses in contractual agreements

Friday, 22 November 2019   (0 Comments)
Posted by: MBA KZN

The Association has noticed a marked increase of clients and main contractors amending the Principal Building Agreement and the N/S Subcontractor Agreement respectively. The main reason for amending the contractual clauses is the transferral of risk to the other contracting party.

The following clauses are the most commonly amended clauses in the JBCC PBA. These, however, relate to the same clauses in the JBCC N/S Subcontractor Agreement.

The Association urges all members to take cognisance of the below mentioned clauses and check for amendments to them in future tender documents. Also be aware that some amendments are made post tender closing and before awarding to the contractor. We therefore encourage members to read every document thoroughly before placing a signature on it.

For the purposes of this article we will only look at the JBCC PBA 6.2 document.

(Note: All clauses must be read in conjunction with the original clause in the contract document to fully appraise the changes that have been made)

Amended Clauses

5.1 Documents referred to in this agreement shall mean the JBCC 5.0 with all amendments thereto

5.2 The parties shall sign the offer of acceptance and acknowledge that the basis of this Contract shall be JBCC 5.0 with the amendments referred to in Clause 5.1

6.6 The employer reserves the right to review any document or variation to the contract

7.1 The contractor shall be responsible for the design of the works. The contractor shall be responsible for the coordination of design elements

8.5 The contractor shall be liable for the cost of making good physical loss and repairing damage to the works caused by or arising from: ( All clauses from 8.5.1 to 8.5.7 )

9.2.1 to 9.2.4 Deleted from the contract agreement

11.5 to 11.1 Deleted from the contract agreement

12.1.1 Deleted from the contract agreement

13.1 The contractor shall

14.7.1 Due to default or insolvency of the subcontractor (23.2.10) or default of the employer, the principal agent and/or agents (23.2.11) any variation in the cost of completing such subcontract works shall be for the account of the contractor

15.7.1 As clause 14.7.1 above

16.1.3 Shall no be entitled to claim expense and/or loss caused by direct contractors

17.4 The contractor shall not be obliged to execute contract instructions for additional work issued after the date of final completion

23.1.1 Entire clause deleted

23.2 The contractor is entitled to a revision of the date for practical completion by the principal agent for a delay to practical completion caused by one or more of the following events:

23.3 Entire clause deleted

25.10 The employer shall pay the contractor the amount certified in an issued payment certificate within sixty (60) calendar days of the date for issue of the payment certificate

25.14 – 25.14.3 All clauses deleted

28.0 – 28.4 All clauses deleted

29.14 – 29.18 All clauses deleted

The above are the most punitive amendments and deleting of clauses which have been noted. We urge all members to be vigilant when reading through the contractual documents and to look for the above changes. Please report onerous amendments to the Association in order for us to address them in the future.

RH Stembridge | Building Services Manager