Core Notes

Chapter 4:
Conditions of
Contract

FACULTY OF ENGINEERING &TECHNOLOGY

Faculty:

DEPARTMENT OF CIVIL ENGINEERING

Department:

DIPLOMA: ENGINEERING: CIVIL

Course:

Title: DOCUMENTATION I: ECDOC1A

Compiled By: APA BARNARD

Year: Semester 1 - 2021

Reference: Syllabus Guide – Section 4: Conditions of Contracts

Literature: The “General Conditions of Contract for Construction Works” - 3rd

Edition 2015, will be used.

Note it is required that the student buys a copy of this publication to

work and study from. This publication is also made available by
SAICE, which offers it at a special ‘student’ price.

Assignment: Various other literature exists regarding this topic, and students are
advised to consult these.

Note: The entire General Conditions of Contract for Construction Works

(GCC) will be covered, but certain sections (Clauses) will be identified
for the students to concentrate on.

In an assessment, the type of question that will be asked can be the

following:

 Define “Certificate of Practical Completion” and explain the

embedded concepts.
 Explain the difference between the Contract Sum and the
Contract Price.
 Summarize the dispute resolution procedure.
 Identify the issues and the course of actions in a given case
study.

Students are advised to pay particular (learn) the definitions of the

various terms used in the GCC, to the extent that they can explain the
meaning of the particular term or word.

Chapter 1 – GCC: General

Learn and understand the Definitions, Interpretations and General Provisions. Learn the
key-words and be able to explain the particular concept / definition.

Chapter 2 – GCC: Basis of Contract

The student must have an understanding of the whole of this chapter to understand the
context. But in particular the student should:

Clause 2.1: Be able to write down and then explain the requirements of this clause, and
in particular be able to list and explain the particular site information the
Contractor should be knowledgeable of.
Clause 2.2: Explain what an adverse physical condition might be, and the responsibility
of the Contractor should the contractor encounter such an adverse physical
condition – Clauses 2.2.1
Clause 2.5: Explain the requirement of this clause and the implications thereof.

Chapter 3 – GCC: Employer’s Agent

Clause 3.1: State and explain the qualification requirements of the Employer’s Agent.
Clause 3.2: State the function of the Employer’s Agent and the requirements the
Employer’s Agent must comply with when he / she exercise discretion, make
any ruling, etc.
Clause 3.3: Sub-clauses 3.3.1 to 3.3.3 and 3.3.6: State and explain the limitations to the
authority of the Employer’s Agent’s Representative; and the right the
Contractor has to refer issues to the Employer’s Agent.

Chapter 4 – GCC: Contractor’s General Obligations

Clause 4.1: Sub-clause 4.1.1: State and explain the extent of the Contractor’s
obligations.
Clause 4.2: Sub-clauses 4.2.1 and 4.2.2: State the obligation of the Contractor to
comply with the Employer’s Agent’s instructions.
Clause 4.4: Sub-clauses 4.4.1 to 4.4.4: State and explain the conditions for appointing a
sub-contractor.
Clause 4.7: What are the requirements if fossils, coins, articles of value or antiquity is
found.
Clause 4.9: State and explain the prohibition on the removal of Construction Equipment.
Clause 4.10: What are the requirements for the engagement of the contractor’s
employees.
Clause 4.11: What are the requirements regarding the competency of the contractor’s
employees.
Clause 4.12: What are the GCC’s requirements in terms of the Contractor’s
superintendence, Construction Manager and the Construction Manager’s
authority to receive instructions.

Chapter 5 – GCC: Time and Related Matters

Clause 5.3: What are the requirements for the commencement of the Works,
documents to be submitted and the time frames.
Clause 5.4: What are the Employer’s obligations in terms of giving access and
possession of the site, and the consequences in delaying giving access.
Clause 5.5: Explain ‘time for practical completion’.
Clause 5.6: What are the requirements for a ‘programme of works’ and the content of
such a ‘programme of works’.
Clause 5.7: (Sub-clause 5.7.1): What is required in terms of the ‘rate of progress’ of the
Works.
Clause 5.9: (Sub-clauses 5.9.1 and 5.9.2): Instructions by the Employer’s Agent.
Clause 5.12: (Sub-clause 5.12.2): State and explain under what circumstances can the
Contractor claim extension of time.
Clause 5.13: (Sub-clause 5.13.1): What are the consequences of the Contractor fails to
complete the Works.
Clause 5.14: Sub-clause 5.14.1 and 5.14.2: What are the requirements for the
Employer’s Agent to issue a Certificate of Practical Completion.
Sub-clause 5.14.2: What are the consequence of Practical Completion.
Sub-clause 5.14.4 and 5.14.5: When can a Certificate of Completion be
issued, and what are the consequences of such completion.
Clause 5.16: What are the requirement for issuing a Final Approval Certificate and the
Contractor’s liability for any latent defects ?

Chapter 6 – GCC: Payment and Related Matters

Clause 6.1: What are the Employer’s obligation in terms of payment to the Contractor ?
Clause 6.3: Explain ‘variations’ and what can be required from the Contractor ?
Clause 6.7: (Sub-clauses 6.7.1 and 6.7.2): Quantities and Work to be measured.
Clause 6.9: (Sub-clauses 6.9.1; 6.9.2 and 6.9.4): Vesting of Plant and Materials;
Definition of ‘Materials’; and Removal of Plant and Materials.
Clause 6.10: Sub-clause 6.10.1 and Sub-clause 6.10.1.1: Interim payments
Sub–clause 6.10.4: Delivery, dissatisfaction with and payment of payment
certificate.
Sub-clause 6.10.5: Payment of retention money.
Sub-clause 6.10.7: Corrections to payment certificates.
Sub-clause 6.10.9: Final Payment Certificate.

Chapter 7 – GCC: Quality and Related Matters

Clause 7.1: Quality of Construction Equipment.

Clause 7.2: Quality of Plant, workmanship and materials.
Clause 7.3: Access to the Works.
Clause 7.5: (Sub-clause 7.5.1): Examination of work before covering up.
Clause 7.6: Sub-clause 7.6.3: Removal of improper work and materials.
Sub-clause 7.6.4: Default of the Contractor in compliance with Employer’s
Agent’s orders.

Chapter 8 – GCC: Risks and Related Matters

Clause 8.1: Sub-clause 8.1.1: Protection of the Works.

Clause 8.2: Sub-clause 8.2.1: Care of the Works.
Clause 8.3: Excepted Risks – list excepted risks.
Clause 8.4: Indemnifications – injury to persons and damage to property.

Chapter 9 – GCC: Termination of Contract

Clause 9.1: (Sub-clause 9.1.1 and sub-clause 9.1.2): Under what circumstances can
the Contract be terminated.
Clause 9.2: (Sub-clause 9.2.1): Under what circumstances can the Contract be
terminated.
Clause 9.3: (Sub-clause 9.3.1): When can the Contractor terminate the Contract.

Chapter 10 – GCC: Claims and Disputes

Clause 10.1: (Sub-clause 10.1.1.1): What provisions apply for a claim by the Contractor
of extension of time ?
Clause 10.2 to Clause 10.8: Summarise the process from a Dissatisfaction Claim to Court
Proceedings.

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