NJPC 2000 (Zimasco) 1

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NJPC BUILDING CONTRACT

ARTICLES OF AGREEMENT made the day of January 2007

BETWEEN

of

(hereinafter called "the employer") of the one part, and

of

(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
________________________________
NJPC 2000 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 2000 BUILDING CONTRACT

CONSULTANT TEAM

(43.7) Administrator Zimasco (Pvt) Ltd

Postal address P. O. Box 489 Kwekwe

Physical address Stand 2950 Birmingham Road, Kwekwe

Telephone 055 24041/8 Facsmail 055 23909

E-Mail makurumidz@zimasco.co.zw

(43.18) Architect: Not applicable

(43.18) Quantity surveyor: Not applicable

(43.18) Civil engineer: Not Applicable

(43.18) Structural engineer: Not applicable

(43.18) Electrical engineer: Not applicable

(43.18) Mechanical engineer: Not applicable

CONTRACT PARTICULARS

(43.83) The works: Construction of proposed single storey extension of


electrical and mechanical workshop

(43.73) The site: Stand 2590 Brirmingham Road, Kwekwe

COMMENCEMENT, COMPLETION AND LIQUIDATED DAMAGES

(43.14) Commencement date: 20 November 2006

(43.23) Date for completion: 28 August 2007

Liquidated & Ascertained Damages per week: To be


Ascertained

Sectional Completion of work: Not Applicable

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NJPC 2000 BUILDING CONTRACT

(43.21) Contract sum : $484,060,406.66 (Four Hundred Eight Four


Million Sixty Thousand Four Hundred and Six Dollars Sixty
Cents)

(33.3/43.48) Lump sum contract: Not Applicable

(36.1/43.46) Interim payment interval: Monthly

(36.1) Stage payments: Not Applicable

(37.1/43/39) Fluctuation provisions to apply

Firm Price: Not Applicable

(43.58) Pricing document : Bill of Quantities

Schedule of rates: Not Applicable

Contract sum Analysis: Priced Specifications.

(43.70) Retention percentage: NIL (Principal Contractor to provide


bond in lieu of retention

(43.46) Interim payment certificate date: 10th of the month

(36.6) Period for payment of interim payments the employer from


date of Interim: Payment certificate: 10 days

(32.1) Date and amount of advance payment

27 November 2006 $200,000,000.00


29 January 2007 $50,000,000.00

(32.4) Rules for repayment: Principal Contractor to start repaying


advance payment when the when the gross valuation of the
project exceeds 25% of the Contract Sum. Principal Contract to
furnish Employer with details of how the advance payment was
expended

(39.1) Currency of account : Zimbabwean Dollars

CONTRACT VARIABLES

(43.24) Working week: 5 days

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NJPC 2000 BUILDING CONTRACT

(43.28) Defects liability period : 6months including a rainy season

(38.3/43.37) Final account: 60 days

(43.75) Snagging period : 10 days

(5.1) Period for production of programme: 15 days

(5.4) Number of copies of reviewed programme to be produced by


the Principal Contractor: 4

(6.10) Number of copies of drawings etc. to be produced by the


principal Contractor:

(14.1) Insurance: Contractor’s All Risks Insurance Cover

Excesses for each and every loss form storm, tempest, floodwater damage,
subsidence collapse and resultant damage caused by defective design,
plan, and specification Workmanship or material: Included in 14.1

Each and every other loss: Included in 14.1

(14.7) Percentage to cover professional fees: Not applicable

(41.1) Cancellation after opening of suspension: 90 Days

(14.16/36.12.1) Financial institution opening of joint accounts: Not


applicable

(37.3) Limit on administration fee: Not applicable

DOCUMENTATION

(43.19) Contract documents (To consist of the documents stated here,


in the order of precedence listed)

 Drawing
 Priced Bill of Quanitites
 Programme of works
 Performance bond

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NJPC 2000 BUILDING CONTRACT

(43.20) Contract drawings (The drawings used to prepare the tender


documents as listed here)

 Priced Bill of Quantities

(43.81) Tender documents (the following documents comprising the


principal contractor's tender)

 Drawing No. 329-A-01-58 dated September 2006

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NJPC 2000 BUILDING CONTRACT

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 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
Completion
26.1 Acceleration
27.1 Deceleration

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NJPC 2000 BUILDING CONTRACT

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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NJPC 2000 BUILDING CONTRACT

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, reenactment 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.

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NJPC 2000 BUILDING CONTRACT

1.8 This agreement supersedes any previous agreements or arrangements


between he 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
payment for the employer who is desirous of having the works executed by the
Works principal contractor.

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
Contractor's out 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

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NJPC 2000 BUILDING CONTRACT

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

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NJPC 2000 BUILDING CONTRACT

programme to ensure completion of the works by the date for


completion.

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 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

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NJPC 2000 BUILDING CONTRACT

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.

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.

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NJPC 2000 BUILDING CONTRACT

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
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, liabilities, loss, claim or proceedings suffered or incurred.

Royalties, 7.1 The principal contractor shall indemnify the employer from and against all
Patent, Rights claims, proceedings, damages, costs and expenses to which the employer
And copyright may be 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

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NJPC 2000 BUILDING CONTRACT

restriction shall continue to apply, without limitation in point of time, unless


and until such information comes properly into the public domain.

Consultant 9.1 The employer has appointed the consultant team as detailed in the
Team 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.

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.
Representative The principal contractor shall notify the name(s) of such representative(s)
to the administrator in writing.

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

Regulations 11.2 If the principal contractor shall find any divergence between the contract
documents or instructions and the statutory requirements, the principal

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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, 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.

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:

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 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


Insurance under clause 13.1 the 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 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 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
Contractors names policy for all risks Insurance for the full reinstatement
Insurance value of the works plus the percentage, 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

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certificate or the date of cancellation of the principal contractor's employment


under the cancellation provisions whichever is the earlier.

14.7 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.

14.8 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.

14.9 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.

14.10 If any loss or damage affecting work executed or materials on site is


occasioned by anyone or more of the risks covered by the joint names policy
then upon discovering the same the principal contractor shall immediately
given notice to the administrator of the extent and nature of the loss of
damage

14.11 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.

14.12 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.
.
14.13 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.

14.14 The monies paid into the Insurance fund shall be held on deposit at interest.

14.15 14.16 Where the employer, in interim payment certificates, provides


payment to the principal contractor in respect of the costs of restoration,

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NJPC 2000 BUILDING CONTRACT

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.

14.16 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.

14.17 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.

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 works the 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 purpose of the
obligations under this agreement, have access to any
section of the works handed over to the employer.

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NJPC 2000 BUILDING CONTRACT

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 Instructions 18.1 Where the administrator intends to issue an


instruction
the administrator may 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

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NJPC 2000 BUILDING CONTRACT

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.

21
NJPC 2000 BUILDING CONTRACT

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 I 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.

22.3 This agreement may necessitate the appointment of


selected subcontractors in 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
NJPC 2000 BUILDING CONTRACT

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


Subcontractor nominated 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:

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;

23
NJPC 2000 BUILDING CONTRACT

22.10.4. if a nominated subcontractor's


employment is cancelled the administrator
shall take immediate steps to appoint
another.

Direct Contractors 23.1 This agreement may necessitate the engagement by the
employer, incidental to, 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

24
NJPC 2000 BUILDING CONTRACT

 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.

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.

25
NJPC 2000 BUILDING CONTRACT

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.

Acceleration 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

26
NJPC 2000 BUILDING CONTRACT

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.

Adjustment of 28.1 Upon it becoming apparent, the principal contractor


Time shall give notice to the 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.

27
NJPC 2000 BUILDING CONTRACT

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


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
NJPC 2000 BUILDING CONTRACT

.
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

.
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 works: 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.

29
NJPC 2000 BUILDING CONTRACT

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.

29.3 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.

30
NJPC 2000 BUILDING CONTRACT

Early 30.1 The employer may at any time cause the


Occupation administrator to give to the principal contractor an
early occupation notice of the employer's intention to
take early occupation of tt1e 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 period shall be specified in 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 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
NJPC 2000 BUILDING CONTRACT

31.3 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


Payment presentation by the principal 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


The contract sum contract sum, it shall be measured and valued as
follows:

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

32
NJPC 2000 BUILDING CONTRACT

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.

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
NJPC 2000 BUILDING CONTRACT

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 34.1 If the principal contractor considers that he has


Costs 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
Non-completion the date for 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 payor allow to the employer a sum

34
NJPC 2000 BUILDING CONTRACT

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
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


Principal application to the administrator to be received no later
Contractor than 8 days before the date stated in the 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;

35
NJPC 2000 BUILDING CONTRACT

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 no 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

36
NJPC 2000 BUILDING CONTRACT

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 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

37
NJPC 2000 BUILDING CONTRACT

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 36.15 If, upon application being made to the administrator


Payment 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.

38
NJPC 2000 BUILDING CONTRACT

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 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.

37.8 If at any time between the tender date and the completion
date, statutory fluctuation takes place arid 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 37.9 If at any time between the tender date and the completion
Price of date, fluctuation takes place in materials incorporated in the
Materials and works or fuel for site plant or transport then the contract
Fuel sum shall be adjusted.

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

39
NJPC 2000 BUILDING CONTRACT

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.

37.14 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.

Final Account 38.1 Within 60 days, or such other period stated in the appendix,

40
NJPC 2000 BUILDING CONTRACT

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 (ull 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.

41
NJPC 2000 BUILDING CONTRACT

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


Account entitled to receive payment 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 40.1 Without prejudice to any other rights or remedies the


By Employer employer may have, this 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

40.2 Should the principal contractor default due to any of these


events then the employer mail 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.

42
NJPC 2000 BUILDING CONTRACT

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.

43
NJPC 2000 BUILDING CONTRACT

40.9 The principal contractor shall allow or pay to the employer


the amount of any loss and/or extremes 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 41.1 Without prejudice to any other rights or remedies the


By Principal principal may have, this agreement may be cancelled by
Contractor he contractor in the event 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 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

44
NJPC 2000 BUILDING CONTRACT

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.

45
NJPC 2000 BUILDING CONTRACT

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.

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.

46
NJPC 2000 BUILDING CONTRACT

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 tbe 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.

47
NJPC 2000 BUILDING CONTRACT

43.6 'adjustment of time' means: a change of the date for completion


specified in the appendix.

43.7 ‘administrator’s 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 risk insurance means insurance that provides cover against
and 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. 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 listh which
were not contemplated at tender but which have arisen as a
result of instruction.

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 B means: a certificated


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.

48
NJPC 2000 BUILDING CONTRACT

43.15 ‘completion certificate’ means : the certificate issued the 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 works’ means: the state of the works when


the administrator is satisfied that the works are complete,
snagging list 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.

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 simplify a lump-sum price given as the
contract sum.

43.23 'date for completion' means: the date as specified in the

49
NJPC 2000 BUILDING CONTRACT

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 CI


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 it) 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

50
NJPC 2000 BUILDING CONTRACT

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' mean: 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
 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

43.35 '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.

51
NJPC 2000 BUILDING CONTRACT

43.36 'final account'- means: the final statement of account issued


by the administrator.

43.37 'final payment certificate' means the final financial certificate


issued after preparation of the final account.

43.38 'fluctuation' means: an increase or decrease in the cost of


labour and/or materials, which are incorporated in the works.

43.39 'fluctuation return' means: a return submitted by the


principal contractor with each payment application with
details of fluctuations.

43.40 'handover certificate' means the certificate issued by the


administrator certifying that direct works are ready for
handover to the principal contractor.

43.41 'handover date' means the date on which direct works are
due to be ready for handover from the direct contractor to the
principal contractor.

43.42 'Insurance fund' means: a fund established into which any


monies receivable under an insurance claim are paid.

43.43 '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

52
NJPC 2000 BUILDING CONTRACT

 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 authorizing 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.

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.

53
NJPC 2000 BUILDING CONTRACT

43.53 'NJPC building employer I 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.

54
NJPC 2000 BUILDING CONTRACT

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, Le. 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.

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 anyone 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.

55
NJPC 2000 BUILDING CONTRACT

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. The NJPC will from time to 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.

43.74 '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.

43.75 '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 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.

56
NJPC 2000 BUILDING CONTRACT

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.

ADJUDICATOR'S AGREEMENT

THIS AGREEMENT is made on the... ... ... ... ..day of ... ... ... ... ... ..20... ... .....

between (the first Party):

of:

57
NJPC 2000 BUILDING CONTRACT

and (the second Party):

of:

(herein after called "the Parties") of the one part and:

of:

(hereinafter called "the Adjudicator") of the other part.

Disputes or differences may arise/have arisen* between the Parties under a

Contract dated... ... ... ... ... ... ... ... and known as:... '" ... ... ... ... ... ... .. . . . . ... ...
.. . ... ... ... .

and these disputes or differences shall be/have been'" referred to adjudication in


accordance with NJPC Adjudication Rules (2000 edition) (hereinafter called "the
Rules.") and the Adjudicator has been requested to act.

IT IS NOW AGREED as follows:

1. The rights and obligations of the Adjudicator and the Parties shall. be as set out in
the Rules.

2. The Adjudicator hereby accepts the appointment and agrees to conduct the
adjudication in accordance with the Rules.

3. The Parties bind themselves jointly and severally to pay the Adjudicator's fees
and expenses in accordance with the Rules as set out in the attached
Schedule.

4. The Parties and the Adjudicator shall at all times maintain the confidentiality of the
adjudication and shall endeavor to ensure that anyone acting on their behalf or
through them will do likewise, save with the consent of the other Parties which
consent shall not be unreasonably refused.

Page 1 of 1
5. The Adjudicator shall inform the Parties if he intends to destroy the documents
which have been sent to him in relation to the adjudication and he shall retain
documents for a further period at the request of either Party.

* Delete as necessary

58
NJPC 2000 BUILDING CONTRACT

Signed on behalf of:

Page 1 of 2

First Party:

Name:

Signature:

Date:

Second Party:

Name:

Signature:

Date:

Adjudicator:

Name:

Signature:

Date:

SCHEDULE to the ADJUDICATOR'S AGREEMENT

1. The Adjudicator shall be paid at the hourly rate to be calculated at four times the
consumer price index as issued by the central statistic office as at the date of issuing
adjudication in respect of all time spent upon or in connection with, the adjudication,
including time spent traveling.

2. The Adjudicator shall be reimbursed in respect of all disbursements properly


made including, but not restricted to:

(a) Printing, reproduction and purchases of documents, drawings, maps,


records and photographs.
(b) Telegrams, telex, faxes, and telephone calls.
(c) Postage and similar delivery charges.
(d) Travelling, hotel expenses and other similar disbursements.

59
NJPC 2000 BUILDING CONTRACT

(e) Room charges.


(f) Charges for legal or technical advice obtained in accordance with the
Procedure.

3. All payments, shall become due 7 days after receipt of invoice, thereafter interest
shall be payable at 5% per annum above the annual effective yield of treasury bills
for every day the’ amount remains outstanding.

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