These are the most common construction contracts used in South Africa:
- FIDIC (French acronym for International Federation of Consulting Engineers) 1999
- General Conditions of Contract for Construction Works (GCC 2004)
- The Joint Building Contracts Committee (JBCC series 2000)
- New Engineering Contract (NEC now referred to as the Engineering and Construction Contract
All kinds of engineering and construction projects can use GCC, NEC ECC and FIDIC forms of contract between contractor and client. The FIDIC, NEC and JBCC suite of documents contain short versions of engineering and construction works contracts. The frequently encountered contracting methods that are currently being used internationally are the four suites of documents collectively.
Note that JBCC 2000 is, however, limited to construction projects.
- FIDIC: An international standard form of contract for civil engineering construction. It also embraces mechanical and electrical sector.
FIDIC expanded its range in 1999 to include with the publication of first editions of a new family of contracts comprising four new standard forms of contract. The obligations by the parties, rather than the nature of the work, determine which contract is to be used.
Main features of the FIDIC “Red”, “Yellow” and “Silver” books:
Conditions of Contract for Construction (“Red Book”)
- Recommended for Building and Civil Engineering contracts
- Construction Building and Engineering works designed mainly by the employer.
- The design can be by either party. Primarilyby the employer but contract provides for design by the contractor to the extent specified in the contract. Parts designed by contractor to be fit for purpose.
- Employer carries quite a few risks with regard to financial risk allocation.
Conditions of Contract for Plant and Design-Build (“Yellow Book”)
- Recommended for Mechanical & Electrical process plant contract.
- Plant Design & Build for works designed mainly by the contractor.
- Design (fit for purpose) by contractor to Employer’s Requirements.
- Contractor carries most financial risk, but employer still carries some.
- One of the construction contracts used in South Africa.
Conditions of Contract for EPC/Turnkey Projects (“Silver Book”)
- Recommended for International major turnkey projects.
- Engineer-Procure-Construct Turnkey projects with all work (engineering, procurement and construction) by the contractor.
- Fit for purpose design by the contractor who shall also be responsible for the accuracy. and completeness of the Employer’s Requirements, with some limited exceptions.
- Contractor carries virtually all financial risk allocation.
Short Form of Contract (“Green Book)
Where tenders are invited, these are the forms of contract that are recommended. “Tender” is included as part of “Contract” in FIDIC – construction contracts used in South Africa.
ECS can assist contract management.