PAYMENT OF THE CONTRACT SUM. 5.1 Payment of the contract sum shall be made by the Employer to the Contractor in the following progress payment instalments: 5.1.1 The first instalment being 20% (Twenty percent) of the Contract Sum shall be paid on completion of the first section of the Works, namely: 5.1.1.1 All foundations completed, 5.1.1.2 Brickwork to plinth height, backfilling and floors cast. 5.1.2 The second instalment being 20% (Twenty percent) of the Contract Sum shall be paid on completion of the second section of the Works, namely: 5.1.2.1 Brickwork internal and external completed except gables and beam filling. 5.1.3 The third instalment being 30% (Thirty percent) of the Contract Sum shall be paid on completion of the third section of the Works, namely: 5.1.3.1 Roof trussed and roof covering; and 5.1.3.2 Brickwork gables and beam filling completed, and 5.1.3.3 Internal and external walls plastered, and 5.1.3.4 Ceilings and cornices fixed, and 5.1.3.5 External doors and windows installed, and 5.1.3.6 Electrical tubing fitted, and 5.1.3.7 Plumbing pipes and drainage fitted. 5.1.4 The fourth instalment being 35% (Thirty five percent) of the Contract Sum shall be paid on completion of the fourth section of the Works, namely: 5.1.4.1 Cupboards fitted; and 5.1.4.2 Painting and ▇▇▇▇▇▇ finished, and 5.1.4.3 Electrical and plumbing work completed, and 5.1.4.4 All remaining work done as per specifications, and 5.1.4.5 All builder’s rubble removed and site clean. 5.1.5 The fifth and final instalment being 5% (Five percent) of the Contract Sum shall be paid on completion of the Works prior to the Employer taking occupation of the Works. 5.2 The Upgrade to Specifications and Additional Costs will be included in the Contract Sum and be payable as set out above. 5.3 Any agreed payments not paid on due date will bear interest in accordance with the provisions of Clause 12 below from due date to date of final payment. 5.4 If the Building Works are financed by a Financial Institution, the Employer hereby empowers and authorises the Contractor to receive progress payments from the financial institution as determined by them, the Employer will furthermore be liable for any and all interim interest charges by the Financial Institution. 5.5 In the event of an Employer failing or refusing to authorize payment of any interim or final draws, the Contractor shall be entitled without prejudice to any other rights which he may have in terms of this contract in law to discontinue the Works forthwith and all damages arising, costs, including the additional interest accrued, shall be for the account of the Employer. 5.6 Should there be any dispute between the Parties pertaining to this Clause 5, the dispute will be referred to the Architect whose determination will be final and binding on the Parties.
Appears in 1 contract
Sources: Building Agreement
PAYMENT OF THE CONTRACT SUM. 5.1 The Contractor shall, upon reaching the various stages of completion of the Works for which payment is to be effected, make written application to the Employer for such payment. Payment of the contract sum Contract Sum shall be made by the Employer to the Contractor as set out below and the method of payment shall be determined by the manner in which finance has been secured.
10.1 Payment to the following progress Contractor, if financed by a Bank or Financial Institution, shall be made according to the methods and rules for interim payment instalmentsprescribed by them, and if the Contract Sum is financed by the Employer, payment of the Contract Sum shall be made as follows:
5.1.1 10.1.1 The first instalment being shall approximate 20% (Twenty percent) of the Contract Sum Sum, and shall be paid on within 7 (seven) days of completion of the first section of the Works, namelywhich includes:
5.1.1.1 All foundations 10.1.1.1 all structural concrete and brickwork completed,, internal and external walls plate high, chimney carried to full height;
5.1.1.2 Brickwork to plinth height10.1.1.2 all door frames, backfilling door jamb-linings and window cavities built in, except doors and windows;
10.1.1.3 all concrete floors cast.laid (but not screeded);
5.1.2 10.1.2 The second instalment being shall approximate 20% (Twenty percent) (Cumulative 40%) of the Contract Sum, and shall be paid within 7 (seven) days of completion of the second section of the Works, which includes:
10.1.2.1 all wall plates, roof trusses, roof covering, and beam filling installed;
10.1.2.2 all internal walls chased for electric conduiting, and plastered;
10.1.2.3 all floors screeded, ready for paving, tiling or other finish;
10.1.2.4 all internal ▇▇▇▇▇ completed.
10.1.3 The third instalment shall approximate 20% (Twenty percent) (Cumulative 60%) of the Contract Sum, and shall be paid within 7 (seven) days of completion of the third section of the Works, which includes:
10.1.3.1 all ceilings and cornices installed;
10.1.3.2 all doors hung with locks fitted;
10.1.3.3 all tiled floors laid;
10.1.3.4 all skirtings and pelmets (if any) fixed;
10.1.4 The fourth instalment shall approximate 30% (Thirty percent) (Cumulative 90%) of the Contract Sum, and shall be paid within 7 (seven) days of completion of the third section of the Works, which includes:
10.1.4.1 all kitchen and bedroom cupboard units installed;
10.1.4.2 all glazing completed and painting commenced;
10.1.4.3 all sanitary fittings installed. All water and drain pipes, gullies, vents, water and sanitary piping installed and in proper working order;
10.1.4.4 all finishing details for fireplaces, flower boxes, external window ▇▇▇▇▇, surface channels, steps and the like completed;
10.1.4.5 roof flashings, gutters and down pipes installed.
10.1.5 The fifth and final instalment comprising the outstanding 10% (ten percent) of the Contract Sum shall be paid on with 7 (seven) days of completion of the second fourth and final section of the Works, namelywhich includes:
5.1.2.1 Brickwork internal 10.1.5.1 all painting, colour washing and external completed except gables distempering completed;
10.1.5.2 all floor coverings installed;
10.1.5.3 all doors, fixtures and beam filling.ironmongery fitted and in good working order, including installation of sliding doors and windows;
5.1.3 The third instalment being 30% (Thirty percent) 10.1.5.4 all glass cleaned;
10.1.5.5 all electrical wiring, electric fittings, lights, stove, switches, geyser and plugs installed and in working order, Electrical Compliance Certificate issued and testing of the installation by the Local Authority concluded;
10.1.5.6 completion of fencing and removal of builders’ spoil and rubbish;
10.1.5.7 planting of lawn in specified areas;
10.1.5.8 laying of paving in specified areas;
10.1.5.9 receipt by the Employer of written notification from the Contractor that the Works are ready for occupation, followed by receipt by the Employer of a Certificate of Occupation issued by the Local Authority concerned;
10.2 In the event that the Contract Sum shall be paid on completion is payable from the proceeds of the third section of the Works, namely:
5.1.3.1 Roof trussed and roof covering; and
5.1.3.2 Brickwork gables and beam filling completed, and
5.1.3.3 Internal and external walls plastered, and
5.1.3.4 Ceilings and cornices fixed, and
5.1.3.5 External doors and windows installed, and
5.1.3.6 Electrical tubing fitted, and
5.1.3.7 Plumbing pipes and drainage fitted.
5.1.4 The fourth instalment being 35% (Thirty five percent) of the Contract Sum shall be paid on completion of the fourth section of the Works, namely:
5.1.4.1 Cupboards fitted; and
5.1.4.2 Painting and ▇▇▇▇▇▇ finished, and
5.1.4.3 Electrical and plumbing work completed, and
5.1.4.4 All remaining work done as per specifications, and
5.1.4.5 All builder’s rubble removed and site clean.
5.1.5 The fifth and final instalment being 5% (Five percent) of the Contract Sum shall be paid on completion of the Works prior to the Employer taking occupation of the Works.
5.2 The Upgrade to Specifications and Additional Costs will be included in the Contract Sum and be payable as set out above.
5.3 Any agreed payments not paid on due date will bear interest in accordance with the provisions of Clause 12 below from due date to date of final payment.
5.4 If the Building Works are financed a building loan secured by a First Mortgage Bond obtained from a Bank or approved Financial Institution, then the Employer hereby empowers and authorises irrevocably cedes to the Contractor a sum equal to the amount of such mortgage bond. The Contractor is hereby authorised to receive progress payments interim draws from the financial institution as determined by them, Mortgagee/s and the Employer will furthermore be liable agrees to sign the authority for any such payments as and all interim interest charges when required by the Financial Institution.
5.5 Contractor. In the event of an the Employer failing or refusing to authorize authorise payment of any such interim or final draws, the Contractor shall be entitled without prejudice to any other rights which he it may have in terms of this contract Annexure, or in law law, to discontinue the Works forthwith said Works, and all damages arising, costs, including the costs incurred and additional interest accrued, accruing shall be for the account of the Employer provided the Contractor himself is not in default in any way. The Employer hereby irrevocably authorises the Contractor to sign any release for and on behalf of the Employer and to accept all draws on the Employer.’s behalf. In the event that the Mortgagee/s, through error or otherwise, pay to the Employer or his agent, or assigns, any of the proceeds of the mortgage bond(s) hereby ceded, prior to the Contractor having been paid the full Contract Sum, plus any additional amounts herein contained, the Contractor may require the Employer forthwith to pay such amounts to the Contractor plus interest thereon at a rate of interest equivalent to 2% above the prime rate charged by the Contractor’s bank in respect of unsecured overdraft facilities from the due date of such payment to the Contractor until the date of payment thereof to the Contractor (both days included);
5.6 Should there 10.3 Any instalment not paid on the due date or date of occupation shall bear interest at 2% (two percent) above the prime overdraft rate charged by ABSA Bank to its clients, which interest shall accrue from the due date to actual date of payment (both days included);
10.4 The Contractor shall notify the Employer in writing 7 (seven) days before the completion of each section as set out above of the date of such completion, and failing such written notice, the penalty provisions of the preceding sub-clause shall not apply. Presentation of an invoice or statement for the amount due in respect of each phase completed shall constitute adequate notification for the purpose contemplated in this Clause;
11.1 Upon substantial completion of the Works, the Contractor shall notify the Employer in writing that the Works are ready for occupation, at which point the Works shall be deemed to have reached Practical Completion;
11.2 After occupation, the Employer shall inspect the Works, and provide the Contractor within 14 (fourteen) days from date of occupation with a comprehensive written list of any dispute between work still to be completed and / or defects to be remedied (referred to herein as “the snag list”). Such remedial work shall be undertaken and completed by the Contractor within a reasonable period after submission of the snag list by the Employer to the Contractor;
11.3 As soon as the work detailed on the snag list has been completed by the Contractor, and inspected and accepted by the Employer, the Works shall be deemed to have reached Completion. The defects liability period shall commence from the date of Completion;
11.4 For the purposes of this agreement, and except where expressly agreed otherwise in writing, the date of Practical Completion shall be the due date for payment of the fifth and final instalment by the Employer to the Contractor. The Employer may not take occupation of the Property prior to payment and unconditional receipt of this instalment, unless agreed otherwise in writing by the Parties pertaining to this Clause 5, the dispute will be referred to the Architect whose determination will be final and binding on the PartiesAgreement.
Appears in 1 contract
Sources: Building Contract