Validated for 1 CPD Point – CESA-217-09/2014
The JBCC contract is widely used in South Africa and the Committee reports that it sells in the region of 500 copies of the Principal Agreement per month. The JBCC contract is recognised by the Construction Industry Development Board (CIDB) as one of the four contracts for use in public sector contracts in South Africa and it has been adopted by many government and private sector agencies undertaking building work. The contract is not without its critics, however, and some argue that it is confusing and difficult to work with.
Two half day Modules.
Module 1: The JBCC Principal Agreement.
Module 2: The JBCC Subcontract Agreement
JBCC Principal Agreement
In this half day introductory workshop we consider key provisions in the JBCC contracts and discuss both the positive aspects of the contracts and the flaws to watch out for. An overview of key clauses is given, with special attention to risky, difficult to interpret or problematic clauses. Material is presented in an interactive manner, through case studies and practical examples. In this half day session, delegates gain an understanding of the overall structure of the JBCC contracts and an awareness some tricky areas they need to be alive to. Rather than taking a clause by clause walk through the contracts, key clauses and clauses which create problems in practice are discussed.
Some of the issues to be considered include the following:
- Terms to watch out for when reading the contract;
- Guarantees, payment reduction and security;
- Works risk;
- Instructions and variations;
- Contractor’s claims;
- Payment provisions;
- Stages of completion;
- Dispute resolution
- Dealing with defects;
JBCC Subcontract Agreement
In this new half day workshop we focus on the JBCC Nominated/Selected Subcontract agreement. This contract differs from the principal agreement in a number of key respects, and has important implications for contractors and subcontractors alike. Employers and their agents also need an understanding of this contract. Under JBCC, more perhaps than under any other contract, the provisions of the subcontract agreement have implications for the employer and his agent. Some topics covered in this half day seminar include:
- Different types of subcontractor recognised by JBCC;
- Remedies given to main contractor when subcontractor delays or breaches;
- Design responsibility;
- Programming the work of subcontractors under JBCC;
- Contractor’s instructions;
- Stages of completion with particular focus on interim completion;
- Damages for non-performance vs penalties;
- Termination of subcontract agreement.
This workshop focuses on the current latest version of the JBCC Contracts. In this workshop we critically evaluate the JBCC Contracts and focus on clauses which could lead to difficulties when they are applied on site.
Once you have completed this workshop you should:
- Be aware of the structure of the JBCC documents;
- Have an understanding of areas which call for special attention to when contracting under JBCC; and
- Be able to apply the knowledge gained on any JBCC project you work on.
In particular, you should gain an understanding of the following important contractual matters:
Module 1: JBCC Principal Agreement
- Structure of documents: Finding your way through the contract;
- Notices: Pitfalls around the service of notices and how to avoid problems when serving notices;
- Security: The different forms of security and some difficulties to be aware of when choosing;
- The difference between retention and the payment reduction;
- The Contractor’s lien and the payment guarantee;
- Works Risk and Insurance: Who is responsible for the care of the works, including potential risks which the contracts may expose the parties to;
- Instructions: Who may issue instructions, when these may be issued, what form these must take and how the Contractor is to be paid for instructions which increase the value of the work;
- Completion: Stages of completion under JBCC
- Some difficulties with the Practical Completion and Final Completion processes;
- The Contractor’s liability for latent defects;
- Extensions of Time: When the Contractor will get a revision to the date of practical completion and when the revised date brings additional money with it;
- Payment: The process for getting payment and the consequences if the Employer does not pay on time;
- Termination: When the parties may terminate the contract and what the consequences of termination are;
Module 2: JBCC Subcontract Agreement.
- Payment guarantees: When does the subcontractor get these?
- Design responsibility: Who is liable when a subcontractor does design work?
- Security: Retention vs payment reduction;
- Contractor’s instructions
- Employer’s agent: What role does the employer’s agent serve under the subcontract agreement?
- Subcontractors claims with particular focus on the procedure to be followed when claiming;
- Interim payment to subcontractors;
- Termination of the subcontract agreement
*All delegates registered for this course will receive a complimentary copy of the JBCC Nominated / Selected Subcontract Aug 2102 5th Ed. 2007
- COST Varied – depending on location – see Registration forms
- Should a Company register 3 or more delegates for this seminar, a 10% discount will apply.