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Builders Cape Town General Guide

This a generalised summary of how a building project should be taken on by a building contractor, that will be performing building work in the greater Cape Town area. We perform Renovations in Cape Town, Home renovations cape town, Southern Suburbs, Home improvements in Cape town, Northern suburbs ,Home renovations in Durbanville, Home improvements in Constantia, building alterations in cape town.

There must be a formal contract completed and signed by the client and the building contractor prior to any work commencing. It is always advisable not to pay any deposits in advance, but rather work according to a proper drawn up schedule of payments for the proposed, renovation, building alteration, home renovations or home improvements.


A basic format building renovations agreement can be laid out as follows

The contract documents shall mean: -

The agreement; The drawings as approved by the Municipality concerned; Any other sketch plan initialled by the parties; The schedule of finished specifications to which the parties have agreed;and the aforementioned shall be initialled by the parties and annexed to this agreement as an integral part hereof.


The drawings as approved by the Municipality concerned, any other sketch plan initialled by the parties and schedule of finished to which the parties have agreed, shall be initialled and annexed as an integral part of this agreement. The said specifications shall be the specifications for the completion of the works. The signing of this contract by the employer before the commencement of the works shall be deemed to be the final instruction for the works by the employer to the contractor.


Any variation and/or modification, that leads to an increase of labour, material or management time, to the above mentioned specifications shall be deemed to be extra works in accordance with Clause 8 hereof by the contractor. Should such variation influence the contract sum, as described in Clause 6 hereof, the parties must reduce the amended contract sum to writing and initial the same and annex the said amendment to this agreement after reaching agreement regarding the costs involved.


The contractor reserves the right to replace materials / items (as specified in Clause 3 above), should such materials / items not be available at any time with similar / alternative materials / items which have been agreed upon by the parties. The contractor shall notify the employer of such unavailability of such materials / items, prior to installation. The employer shall be liable for any escalation of costs incurred as a result of the occurrence in terms of Clause 5.1 above at a rate to be agreed upon by the parties at the time, should such escalation occur, unless negligence on contractor not ordering timeously. Many suppliers do deliver to most of the suburbs in Cape Town, like Durbanville, Tableview, Milnerton, Bergvliet, Constantia, Tokai including the Cape Town Southern Suburbs.

Provisional sums

The contract sum included the prime cost (P.C.) sums in which the provision is made for a budget for the buying of items that are specified but not qualified in any other way as by the (P.C.) amount allowed for them. Both material and labour must be borne by the above mentioned (P.C.) amounts unless otherwise specified. Where the real cost may be less that the specified amount the difference shall be paid by the contractor to the employer, and vice versa. All PC amounts shall have defined "Labour" vs "Material" estimates, unless the PC is for the work to be completed by a sub-contractor.


Change to Contract Sum for building alterations

If construction work does not commence within three months from the date of the signing this Building Contract, the Contract Sum will be subject to review and possible change due to escalation in costs, however should the contractor not commence within the three month period then escalation will be for contractors account.


This building contract is subject to the employer, or the Estate Agent of the employer, procuring a building loan or bond from a financial institution. The employer undertakes to without delay, provide and sign all the necessary documentation to this effect. The employer shall furnish to the contractor within seven days after the signing hereof a Banker's Guarantee for the full amount of the correct sum. Should the building contract be based on a cash deal, a schedule of payments will be drawn up between both parties. Should this building contract be based on a project management style, all relative documentation will be provided by Caland development, furthermore a schedule of payments will be drawn up between both parties. All progress payment forms will be signed by the employer at the request of the contractor and submitted to the Bank within 24 hours. A minimum of six progress payments will be processed. All progress payments will be made payable to: Caland Where work is effected or delayed by a delay in processing a progress payment the contractor will not be held liable. Interim Interest incurred during the construction period does not form part of the contract Sum. The employer is responsible for all Interim Interest.


All works not explicitly stipulated in the contract will be deemed to be extra works and will only be done on the following basis: -

All extra works and modifications to the works which do not comply with the specifications as aforesaid, must be reduced to writing prior to being undertaken. Any verbal agreement must be conformed by means of a written notification to the employer by the contractor. Unless the employer informs the contractor of his objection thereto in writing seven (7) days of the forwarding thereof, the aforesaid extra works and / or modifications to the works shall be deemed to be acceptable to the employer.

The written notification as aforesaid shall specify the following: -

A description of the extra works or modifications; The compensation attached to it;That the payment for the extra works is due and payable to the contractor prior to any work been done for that specified extra work; ( excludes extras on schedule of finishes) Lengthening of the construction time. Any written agreement in terms of the above mentioned shall be considered to be part of this agreement; Where the reference is made in the schedule of finished to extra works, this clause shall be applicable.


The contractor shall and hereby does indemnify the employer against liability, loss, claim or proceedings whatsoever, whether arising out of common law or by statute, consequent upon personal injuries to or the death of any person whosoever arising out of our execution of the works unless due to any act or omission of the employer or his servants or agents. The contractor shall insure against public liability in order to give effect to the indemnities referred to above.

This is a general overview of what needs to be covered in the contract between the client and the building contractor.

City of Cape Town Corobrik Plascon