Starndard contracts
CONSTRUCTION PROCUREMENT
BEST PRACTICE GUIDELINE #C2
Construction Industry Development Board
Pretoria
Tel: 012 343 7136 or 012 481 9030
Fax: 012 343 7153
E-mail: cidb@cidb.org.za
1.
Choosing an appropriate form of contract for engineering and construction works September 2005
Second edition of CIDB document 1010
Background
The Green Paper on Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry has a vision for a construction industry policy and strategy that promotes stability, fosters economic growth and international competitiveness, creates sustainable employment and addresses historic imbalances as it generates new industry capacity. This paper, when considering what is needed to promote new industry capacity and the emerging sector calls for, amongst others:
•
•
•
the simplification of contract documents to enable them to be more readily comprehensible, particularly to persons whose mother tongue is not English; the streamlining of payment procedures and surety arrangements; and the continued review of contract documentation to ensure that conditions do not constitute barriers to increased participation.
It also suggests that a partnering approach within the framework of public sector procurement may enhance industry performance.
In order to make procurement reform effective in the manner intended, employers in the engineering and construction industry need, amongst others, to revisit the standard forms of contract which are in use. The current approach of having, probably, as many standard forms of contract as there are disciplines in the industry, together with a considerable number of in-house forms of contract, neither makes for efficiency nor does it enable a focussed approach to skills training necessary for development and growth. This applies to both private and public sector work.
Whilst the ideal of standardisation on one system of standard forms
BEST PRACTICE GUIDELINE #C2
Construction Industry Development Board
Pretoria
Tel: 012 343 7136 or 012 481 9030
Fax: 012 343 7153
E-mail: cidb@cidb.org.za
1.
Choosing an appropriate form of contract for engineering and construction works September 2005
Second edition of CIDB document 1010
Background
The Green Paper on Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry has a vision for a construction industry policy and strategy that promotes stability, fosters economic growth and international competitiveness, creates sustainable employment and addresses historic imbalances as it generates new industry capacity. This paper, when considering what is needed to promote new industry capacity and the emerging sector calls for, amongst others:
•
•
•
the simplification of contract documents to enable them to be more readily comprehensible, particularly to persons whose mother tongue is not English; the streamlining of payment procedures and surety arrangements; and the continued review of contract documentation to ensure that conditions do not constitute barriers to increased participation.
It also suggests that a partnering approach within the framework of public sector procurement may enhance industry performance.
In order to make procurement reform effective in the manner intended, employers in the engineering and construction industry need, amongst others, to revisit the standard forms of contract which are in use. The current approach of having, probably, as many standard forms of contract as there are disciplines in the industry, together with a considerable number of in-house forms of contract, neither makes for efficiency nor does it enable a focussed approach to skills training necessary for development and growth. This applies to both private and public sector work.
Whilst the ideal of standardisation on one system of standard forms