Common use of PAYMENT OF THE CONTRACT SUM Clause in Contracts

PAYMENT OF THE CONTRACT SUM. 3.1 Payment of the contract sum shall be made by the Employer to the Contractor in progress payments either via the Transferring Attorney (cash transaction) or via the Bank in building draws (Building Loan). 3.2 Should there be any dispute between the parties as to the amount due in terms of any one of the progress payments then the matter will be referred to the Principal Agent, who shall act as an expert and not as an arbitrator and whose determination shall be final and binding on the parties. 3.3 In the event of the contract sum being entirely financed by a building loan secured by a mortgage bond obtained from a bank or other approved financial institution then: 3.3.1 payment of the contract sum shall be made in accordance with the standard procedure of the financial institution concerned. 3.4 In the event of the contract sum being paid in cash then the contractor must receive payment as follows: Event Percentage of the contract sum Window sill Height 25% Roof Plate Height 25% Complete installation of roof 15% Practical completion The balance 3.5 as security for due payment the Employer irrevocably cedes to the Contractor the total proceeds of the building loan; 3.6 the Contractor is hereby irrevocably authorised and empowered to receive direct payment of the progress payments and final payment from the financial institution concerned and the Employer agrees, on demand, to sign the necessary authorities for such payments as and when required to by the Contractor. Should the Employer neglect and/or refuse to sign the authority for such payments and/or final payment and remain in default for a period of 3 days after receiving written notification by the Contractor to sign same, then the Principal Agent appointed by the Contractor is hereby irrevocably instructed to sign the progress payments and/or the final payment on behalf of the Purchaser. The signature of the Purchaser to this agreement constitutes an irrevocable Power of Attorney to the Principal Agent to sign same. 3.7 Should only a portion of the contract sum be financed by a building loan, the progress payments shall at the request of the Contractor be made directly by the transfer attorneys to the Contractor until that portion of the contract sum, which is financed by the Employer, has been paid in full and the balance of the progress payment shall be made as set out herein. Should the whole of the contract sum be financed by the Employer, the progress payments shall be made as indicated in clause 3.4. 3.8 Any payments not paid on due date will bear interest in accordance with the provisions of Clause 7 below from due date to date of final payment.

PAYMENT OF THE CONTRACT SUM. 3.1 Payment of the contract sum shall be made by the Employer to the Contractor in progress payments either via the Transferring Attorney (cash transaction) or via the Bank in accordance with the building draws (Building Loan). 3.2 Should there be any dispute between the parties as to the amount due in terms of any one of the progress payments then the matter will be referred to the Principal Agent, who shall act as an expert and not as an arbitrator and whose determination shall be final and binding on the parties. 3.3 In the event of the contract sum being entirely financed by a building loan secured by a mortgage bond obtained from a bank or other approved financial institution then: 3.3.1 payment of the contract sum shall be made in accordance with the standard procedure of the financial institution concerned. 3.4 In the event of If the contract sum is being paid in cash then the contractor must receive payment Building draws will be made as follows: follows Event Percentage of the contract sum Window on completion of cement slab 10% Widow-sill Height 25height 10% All inside and outside walls 20% Roof Plate Height 25and Ceiling 20% Complete installation of roof Build-inn closets 20% Sanitary ▇▇▇▇ and tiles 15% Practical On completion The balance 3.5 as security for due payment the Employer irrevocably cedes to the Contractor the total proceeds of the building loan;loan on building amount. 3.6 the Contractor is hereby irrevocably authorised and empowered to receive direct payment of the progress payments and final payment from the financial institution concerned and the Employer agrees, on demand, to sign the necessary authorities for such payments as and when required to by the Contractor. Should the Employer neglect and/or refuse to sign the authority for such payments and/or final payment and remain in default for a period of 3 days after receiving written notification by the Contractor to sign same, then the Principal Agent appointed by the Contractor is hereby irrevocably instructed to sign the progress payments and/or the final payment on behalf of the Purchaser. The signature of the Purchaser to this agreement constitutes an irrevocable Power of Attorney to the Principal Agent to sign same. 3.7 Should only a portion of the contract sum be financed by a building loan, the progress payments shall at the request of the Contractor be made directly by the transfer attorneys to the Contractor as determined in the Contract until that portion of the contract sum, which is financed by the Employer, has been paid in full and the balance of the progress payment shall be made as set out herein. Should the whole of the contract sum be financed by the Employer, the progress payments shall be made as indicated in clause 3.4. 3.8 Any payments not paid on due date will bear interest in accordance with the provisions of Clause 7 below from due date to date of final payment.