The new GCC Short Form fills a gap in the SAICE’s portfolio of contract documents, where a more streamlined document, suitable for “Minor Works” projects and without the need for extensive detailed contract conditions which are required in larger, more complex projects, often extending over long time frames. “Minor Works” projects are not only those which cost little, or are repetitive, or are of short duration, or are confined to only engineering or only building, or the design is fully complete, but are those projects which are usually characterised by more than one single criterion or a combination of the criteria described above. “Minor Works” means a type of construction project which can be determined from certain characteristics or attributes as described below. If out of the 5 main criteria shown below, criterion 1 strictly applies, together with any one or more of the other four, then the Short Form is suitable.
Do the Works strictly comply with the following?
1. Straightforward or repetitive work, where:
a) “Design by Contractor” does not apply, and
b) No mechanical and electrical plant are to be built into the works, and
c) Back-to-back subcontracting does not apply, and
d) “Targeted Enterprises” do not apply
Do the Works also comply with any one or more of the following?
2. Time to achieve completion after commencement does not exceed 12 months, or
3. No requirement for sophisticated management techniques, or
4. Impose only low risk on both the procurer and the Contractor, or
5. The design of the Works is almost complete when construction starts.
This means that for example, if “Design by Contractor” applies, which is a violation of Criterion 1(a), then GCC Short Form is not recommended, and GCC 2015 should rather be used.
The GCC Short Form has been developed from the full GCC 2015 document to facilitate compatibility. It contains the same sequence of Sections as GCC 2015, but significantly fewer clauses and sub-clauses (240 vs. 330) have been condensed or omitted.
The GCC Short Form is to be used with the contract documentation format as prescribed by legislation, SANS 10845 and in conjunction with SANS 1921. This is to set out the requirements and constraints relating to the manner in which the contract work is to be performed.
Following on from the publication of the SAICE General Conditions of Contract for Construction Works, Third Edition 2015 (abbreviated to GCC 2015) SAICE has now introduced the First Edition 2018 of the “General Conditions of Subcontract for Construction Works” (abbreviated to GCSC 2018). This subcontract agreement is in a “back-to-back” form, suitable for use alongside the GCC 2015 – to ensure a seamless integration. It replaces earlier forerunners published by SAFCEC for use with earlier versions of the SAICE GCCs and it is similar to forms of subcontract published by FIDIC, JBCC and NEC. It is intended for this First Edition to be developed further by SAICE in time. It will be tested in practice through the experience of users of the document.
Thereafter a Second Edition of the GCSC Conditions of Subcontract will be published by SAICE. It is further intended for the GCSC Conditions of Subcontract to be used with the contract documentation format as prescribed by the Standard for Infrastructure Procurement and Delivery Management (SIPDM) published by National Treasury, the Standard for Uniformity in Construction Procurement published by the Construction Industry Development Board (cidb), SANS 10845, and, SANS 1921, to set out the requirements and constraints relating to the manner in which the Subcontract Work is to be performed
The contract is especially suited for small works, of a short duration, irrespective of whether a Construction Work Permit under the Construction Regulations is required.
The SGCC 2018 was compiled by arbitrators, engineers, specialists, SIPDM-certified experts, and is maintained by the 14-member SAICE Committee for Conditions of Contract of the Project Management and Construction Division of SAICE. The SGCC 2018 is SIPDM and CIDB SFU-compliant.
The new third edition of the General Conditions of Contract for Construction Works (the GCC 3rd Edition 2015) will replace the GCC 2010. By clarifying certain contract administration procedures and refining some of the risk appropriation clauses, amongst other things, the new GCC 3rd Edition 2015 states that the Contractor’s time risk allowances must be indicated on the Programme of Works.
It also permits the Contractor to suspend the Works if the Employer fails to make payment on a payment certificate, and includes delay and cost due to excepted risks as an entitlement that the Contractor may claim. A Variable Performance Guarantee is added to the list of securities and it allows for the selection of inflation indices that are appropriate to the type of Works to be carried out.
The amendments and use of simpler and more concise wording in the latest edition should also ensure that GCC 3rd Edition 2015 will remain relevant in the future and will provide supportive contract administration and the equitable appropriation of risks. The GCC 3rd Edition 2015 are to be used with the contract documentation format as prescribed by the Construction Industry Development Board in the Standard for Uniformity in Construction Procurement and in conjunction with SANS 1921 to set out the requirements and constraints relating to the manner in which the contract work is to be performed.
The South African Institution of Civil Engineering (SAICE), has now released the new Guide to the General Conditions of Contract for Construction Works GCC 2015.
The General Conditions of Contract for Construction Works, third Edition (GCC 3rd Edition 2015) a number of amendments to GCC are mentioned. These include that the Contractor may suspend the Works if the Employer fails to make payment on a payment certificate, also included are that strikes and electricity cuts are the Employer’s excepted risks and recognizing the Contractor’s time risk allowances in his programme. And then, there is the controversial name change. After many years of calling the person who must administer the Contract on behalf of the Employer the “Engineer”, this person is now called the “Employer’s Agent” This change was necessary because GCC 3rd Edition 2015 is also suitable and extensively used by other discipline engineering contracts.
- The first observation:
The relevant GCC 3rd Edition 2015 Clause is now included in the Guide.
- The second observation:
The “Engineer” of erstwhile was not required to be a registered professional. This was exploited and had to be stopped.
- The third observation:
You may use GCC 3rd Edition 2015 knowing that it is relevant for construction contracts.
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