Building Contract Memorandum Of Agreement And Conditions Of Contract (Page 2 of 8) in pdf

Building Contract Memorandum Of Agreement And Conditions Of Contract Page 2

Page 2.

1.6

"SERVICES" shall mean water and electricity supply, sewerage and

roads to the boundary of the PROPERTY.

INTRODUCTION

2.1

The BUILDER has agreed to construct a home for the OWNER on the

PROPERTY for the CONTRACT SUM.

2.2

The CONTRACT SUM shall (if applicable) be secured in terms of the

mortgage bond referred to in the agreement of sale.

2.3

The CONTRACT SUM shall not be subject to increase unless

commencement of the home is delayed by the OWNER beyond six (6)

months after the date of signature hereof; (In the event of such delay, the

contract sum shall be increased by the amount equivalent to the

consumer price index change from the date of signature hereof to the

date of commencement of the building.)

AGREEMENT

3.1

The BUILDER and the OWNER agree that the construction of the home

shall be undertaken and completed by the BUILDER within a period of 12

months from the date hereof.

3.2

The construction shall be carried out in accordance with this agreement

which shall include:

3.2.1 the general building and design requirements set out in Annexure

"C";

3.2.2 the building plans as set out in Annexure "F";

3.2.3 the specifications as set out in Annexure "G".

PAYMENT

4.1

The CONTRACT SUM:

4.1.1 shall be secured in terms of the mortgage bond referred to in the

agreement of sale or a bank guarantee, or cash paid into trust to the

BUILDER'S attorney, or any other security acceptable to the

BUILDER prior to commencement of the construction of the home;

Building Contract Memorandum Of Agreement And Conditions Of Contract Page 2