Public Works Tender
Public Works Tender
Public Works Tender
CONDITIONS OF CONTRACT
The General Conditions of Contract for Construction Works, Second Edition, 2010, published by the South
African Institution of Civil Engineering, Private Bag X200, Halfway House, 1685, is applicable to this Contract
and is obtainable from www.saice.org.za
The following contract specific data, referring to the General Conditions of Contract for Construction Works, Second
Edition, 2010, are applicable to this Contract:
1.1.1.8 Amend Clause 1.1.1.8 to include the word “rights” to read as follows:
“Contract Data” means the specific data, which, together with these General Conditions of Contract, collectively
describe the rights, risks, liabilities and obligations of the contracting parties and the procedures for the
administration of the Contract.
1.1.1.13 Amend Clause 1.1.1.13 as follows, clarify when the defects liability period starts:
“Defects Liability Period” means the period stated in the Contract Data, commencing on the date indicated
on the Certificate of Completion or Certificates of Completion in the event of more than one Certificate of
Completion is issued for different parts of the Works, during which the Contractor has both the right and the
obligation to make good defects in the materials, Plant and workmanship covered by the Contract.
1.1.1.14 The time for achieving Practical Completion of the repair work is: 18 months measured from the
5.14.7 Commencement Date. The time thus stated includes special non-working days and the year-end break. The
total contract duration is 36 months measured from the commencement date.
Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 1 of 11
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Postal Address:
The Director General
Department of Public Works
Private Bag x65
Pretoria, 0001
Facsimile: 086 272 8641 - Telephone: 012 406 1127
Engineer’s address:
Physical Address:
993 Fredenharry Street
Strubensvalley
1724
Postal Address:
993 Fredenharry Street
Strubensvalley
1724
Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 2 of 11
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(b) The copyright of all documents, recommendations and reports compiled by the Contractor during the
course of and for the purposes of finalizing the Works will vest in the Employer, and may not be
reproduced or distributed or made available to any person outside the Employer’s service, or to any
institution in any way, without the prior written consent of the Employer. The Employer shall have the
right to use such material for any other purpose without the approval of information or payment to the
Contractor.
(c) The copyright of all electronic aids, software programmes etc. prepared or developed in terms of the
Contract shall vest in the Employer, who shall have the right to use such material for any other purpose
without the approval of, information or payment to the Contractor.
(d) In case of the Contractor providing documents, electronic aids, software programs or like material to
the Employer, the development of which has not been at the expense of the Employer, copyright
shall not vest in the Employer. The Contractor shall be required to indicate to which documents,
electronic aids, software programs or like material this provision applies.
(e) The Contractor hereby indemnifies the Employer against any action, claim, damages or legal cost
that may be instituted against the Employer on the grounds of an alleged infringement of any copyright,
patents or any other intellectual property right in connection with the Works outlined in this Contract.
Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 3 of 11
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(f) All information, documents, recommendations, programs and reports collected or compiled must be
regarded as confidential and may not be communicated or made available to any person outside the
Employer’s service and may not be published either during the currency of this Contract or after
termination thereof without the prior written consent of the Employer.
3.1.3 1. The Engineer’s authority to act and/or to execute functions or duties or to issue instructions are
expressly excluded in respect of the following:
(a) Appointment of nominated Sub-contractors – clause 4.4.3;
(b) Granting of an extension of time and/or ruling on claims associated with claims for extension of
time – clauses 5.12.3, 10.1.5;
(c) Acceleration of the rate of progress and determination of the cost for payment of such
acceleration – clause 5.12.4;
(d) Rulings on claims and disputes – clauses 10.1.5, 10.2.3 and 10.3.3;
(e) Suspension of the Works – clause 5.11.1;
(f) Final Payment Certificate – clause 6.10.9;
(g) Issuing of mora notices to the Contractor – clauses 9.1.1, 9.1.2.1 and 9.2.1;
(h) Cancellation of the contract between the Employer and Contractor – clauses 9.1.1, 9.1.2.1 and
9.2.1.
2. In order to be legally binding and have legal bearing and consequence, any ruling in respect of the
above matters (a) to (h) must be on an official document, signed and issued by the Employer to the
Contractor.
3. The Contractor must submit claims, demands, notices, notifications, updated particulars and reports
in writing, as well as any other supporting documentation pertaining thereto, in respect of any of the
above listed matters (a) to (h), to the Engineer within the time periods and in the format(s) as
determined in the relevant clauses of the Conditions of Contract. Failing to deliver such to the
Engineer timeous and in the correct format will invalidate any claim and the consequences of such
failure will mutatis mutandis be as stated in clause 10.1.4.
4. Clauses 6.10.9 and 10.1.5 shall be amended as follows to indicate the limitation on the Engineer’s
authority in respect thereof:
Clause 6.10.9 – Amend to read as follows:
Within 14 days of the date of final approval as stated in the Final Approval Certificate, the Contractor
shall deliver to the Engineer a final statement claiming final settlement of all moneys due to him
(save in respect of matters in dispute, in terms of Clauses 10.3 to 10.11, and not yet resolved). The
Employer shall within 14 days issue to the Contractor a Final Payment Certificate the amount of
which shall be paid to the Contractor within 28 days of the date of such certificate, after which no further
payments shall be due to the Contractor (save in respect of matters in dispute, in terms of Clauses 10.3
to 10.11 and not yet resolved).
Clause 10.1.5 – Amend to read as follows:
Unless otherwise provided in the Contract, the Employer shall, within 28 days after the Contractor
has delivered his claim in terms of Clause 10.1.1 as read with Clause 10.1.2, deliver to the
Contractor his written and adequately reasoned ruling on the claim (referring specifically to this Clause).
The amount thereof, if any, allowed by the Employer shall be included to the credit of the Contractor in
the next payment certificate.
5. Insert the following under 3.1.3:
Provided that, notwithstanding any provisions to the contrary in the Contract, the Employer shall
have the right to reverse and, should it deem it necessary, to amend any certificate, instruction,
Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 4 of 11
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decision or valuation of the Engineer and to issue a new one, and such certificate instruction,
decisions or valuations shall for the purposes of the Contract be deemed to be issued by the
Engineer, provided that the Contractor shall be remunerated in the normal manner for work executed
in good faith in terms of an instruction issued by the Engineer and which has subsequently been
rescinded.
3.2.2.1 Amend Clause 3.2.2.1 to insert the word “Plant” to read as follows:
Observe the execution of the Works, examine and test material, Plant and workmanship, and receive from
the Contractor such information as he shall reasonably require.
3.2.3.2 Amend Clause 3.2.3.2 to insert the word “Plant” to reads as follows:
Notwithstanding any authority assigned to him in terms of Clauses 3.2.2 and 3.2.4, failure by the Engineer’s
Representative to disapprove of any work, workmanship, Plant or materials shall not prejudice the power of
the Engineer thereafter to disapprove thereof and exercise any of his powers in terms of the Contract in respect
of thereof.
5.3.1 The documentation required before commencement with Works execution are:
Health and Safety Plan (Refer to Clause 4.3)
Initial programme (Refer to Clause 5.6)
Security (Refer to Clause 6.2)
Insurance (Refer to Clause 8.6)
5.3.2 The time to submit the documentation required before commencement with Works execution is: 21 days.
5.4.2 The access to, and possession of, the Site referred to in Clause 5.4.1 shall not be exclusive to the
Contractor. In the event of access to, and possession of, the Site is not exclusive to the Contractor, the
following limitations apply:
Buildings will be occupied by the User Client during the entire duration of the contract.
Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 5 of 11
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Contractor, of the drawings and any instructions required for the commencement of the Works. The cost of
any additional copies of such drawings and/or instructions, as may be required by the Contractor, will be for
the account of the Contractor.
5.13.1 The penalty for failing to complete the Repair Works is: R 850.00 per day
5.16.1 Amend Clause 5.16.1 to delete the proviso in the third paragraph of this clause.
5.16.3 The latent defect period for all works is: 12 months.
6.2.1 The type of security for the due performance of the Contract, as selected by the Contractor in the Contract
Data, must be delivered to the Employer.
Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 6 of 11
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The value of the certificates issued shall be adjusted in accordance with the Contract Price Adjustment
Schedule with the following values:
The value of “x” is 0.15.
The values of the coefficients are:
a = 0.35 (Labour)
b = 0.20 (Contractor’s equipment)
c = 0.35 (Material)
d = 0.10 (Fuel)
The urban area nearest the Site is Kimberley
The applicable industry for the Producer Price Index for materials is Civil Engineering Plant.
The area for the Producer Price Index for fuel is Coast and Witwatersrand Combined.
The base month is FEBRUARY 2021 (The month prior to the closing of the tender.)
6.8.3 Price adjustments for variations in the costs of special materials are not allowed.
6.10.1.5 The percentage advance on materials not yet built into the Permanent Works is: 85 %.
6.10.3 The limit of retention money is dependent on the security to be provided by the Contractor in terms of Clause
6.2.1.
In respect of contracts above R2 million, where the Contractor elects a security by means of a cash deposit
or a variable guarantee of 10% of the Contract Sum (excl. VAT), the cash deposit or the variable guarantee,
whichever is applicable, will be reduced to 5% of the Value of the Works (excl. VAT) when the Engineer issues
the Certificate of Completion in terms of Clause 5.14.4. The balance of the cash deposit shall become
due and payable or the variable guarantee shall expire when the Contractor becomes entitled in terms of
Clause 5.16.1 to receive the Final Approval Certificate.
Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 7 of 11
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amount may be determined and deducted by the Employer from any amount due to or that may become due
to the Contractor under this or any other previous or subsequent contract between the Contractor and the
Employer.
8.6.1.1.1 Amend Clause 8.6.1.1.1 to read as follows: Contract Sum plus 10%.
8.6.1.1.2 The value of Plant and materials supplied by the Employer to be included in the insurance sum is: Nil
8.6.1.1.3 The amount to cover professional fees for repairing damage and loss to be included in the insurance sum is:
Nil
8.6.1.3 Amend Clause 8.6.1.3 to delete reference to limit of indemnity, to read as follows:
Liability insurance that covers the Contractor against liability for the death of, or injury to any person, or loss
of, or damage to any property (other than property while it is insured in terms of Clause 8.6.1.1) arising from or
in the course of the fulfillment of the Contract, from the Commencement Date to the date of the end of the
Defects Liability Period, if there is one, or otherwise to the issue of the Certificate of Completion.
8.6.1.5 1. Public liability insurance to be effect by the Contractor to a minimum value of:
R5,000,000.00 (Five Million Rand)
8.6.8 Insert a new Clause 8.6.8 in provide for high-risk insurance for projects executed on areas classified as
“High Risk Areas”.
Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 8 of 11
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Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 9 of 11
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If the Contract is terminated on any account in terms of this Clause (provided that the circumstances in 9.1.3
is not due to the fault of the Contractor, his employees, contractors or agents) , the Contractor shall be paid
by the Employer (insofar as such amounts or items have not already been covered by payments on account
made to the Contractor) for all measured work executed prior to the date of termination, the amount (without
retention), payable in terms of the Contract and, in addition:
9.2.4 Insert a new Clause 9.2.4 as follows, to provide for unilateral termination by the Employer:
The Employer shall be entitled at any time to unilaterally terminate or cancel this Contract or any part
thereof. Save for the following, the Contractor shall not be entitled to claim any other amounts whatsoever in
respect of such termination or cancellation of this Contract. The Employer shall be obliged to pay the Contractor
as damages and/or loss of profit the lesser of:
9.2.4.1 An amount not exceeding 10% of the Contract Sum;
9.2.4.2 10% of the value of incomplete work; or
9.2.4.3 The Contractor’s actual damage or loss as determined by the Employer after receipt of evidence
substantiating any such damage or loss.
Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 10 of 11
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10.4.4 Amend Clause 10.4.4 to delete reference to “adjudication” and “arbitration” to read as follows:
Save for reference to any portion of any settlement or decision which has been agreed to be final and
binding on the parties, no reference shall be made by or on behalf or either party in any subsequent court
proceedings, to any outcome of an amicable settlement, or to the fact that any particular evidence was
given, or to any submission, statement or admission made in the course of the amicable settlement.
10.5 The entire provisions of these Clauses are not applicable to this Contract.
10.6
& 10.7
10.10.3 Amend Clause 10.10.3 as follows to reword and remove reference to “arbitrator”:
The court shall have full power to open up, review and revise any ruling, decision, order, instruction,
certificate or valuation of the Engineer and Employer and neither party shall be limited in such proceedings
before such court to the evidence or arguments put before the Engineer or Employer for the purpose of
obtaining his ruling.
Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 11 of 11
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Postal Address:
Facsimile:
Telephone:
6.2.1 The security to be provided by the Contractor shall be one of the following:
(a) Cash deposit of 10 % of the Contact Sum (excl. VAT) YES or NO
(b) Variable performance guarantee of 10 % of the
Contract Sum (excl. VAT) YES or NO
(c) Retention of 10 % of the value of the Works (excl. VAT) YES or NO
(d) Cash deposit of 5 % of the Contract Sum (excl. VAT) plus
retention of 5 % of the value of the Works (excl. VAT) YES or NO
(e) Performance guarantee of 5 % of the Contract Sum (excl. VAT)
plus retention of 5 % of the value of the Works (excl. VAT) YES or NO
NB: Guarantees submitted must be issued by either an insurance company duly registered in terms
of the Short-Term Insurance Act, 1998 (Act 53 of 1998) or by a bank duly registered in terms of the
Banks Act, 1990 (Act 94 of 1990) on the pro-forma referred to above. No alterations or amendments
of the wording of the pro-forma will be accepted.
Any reference to words “Bid” or Bidder” herein and/or in any other documentation shall be construed to have the same meaning as the
words “Tender” or “Tenderer”. Page 12 of 11
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