Building Contract Memorandum Of Agreement And Conditions Of Contract (Page 3 of 8) in pdf

Building Contract Memorandum Of Agreement And Conditions Of Contract Page 3

Page 3.

4.1.2 shall be payable in periodic payments to the BUILDER only on

signature by the OWNER of draw forms in respect of work

completed in terms of clause 4.2 or in terms of clause 4.5.

4.2

The periodic payment of the CONTRACT SUM in respect of work

completed shall be made as follows:

4.2.1 25% When the floor slab is cast.

4.2.2 25% When the buildings are roof height.

4.2.3 25% When the windows and doors have been fitted.

4.2.4 25% On the COMPLETION DATE.

4.3

Where cash is payable, same shall be paid to the BUILDER'S

Conveyancer, who is irrevocably authorised:

4.3.1 to invest it in an interest-bearing account for the OWNER

4.3.2 to release funds in accordance with Clause 4.1.2 and 4.2.

4.4

Where the PROPERTY is bonded, the OWNER irrevocably cedes and

assigns the proceeds from the said mortgage bond to the BUILDER and

undertakes to sign, upon request to do so, draw forms including the final

draw form.

4.5

In respect of progress draws where a dispute arises in respect of the

amount that the BUILDER is entitled to draw, or payment is not made

timeously, a certificate by an engineer or quantity surveyor to the effect

that building constructions works to the value indicated on the said

certificate have been erected on the PROPERTY shall be final and

binding on both parties. The costs of issuing such certificate shall be for

the OWNER'S account and shall be payable on demand.

DRAWINGS AND SPECIFICATIONS

After the signing hereof the original building plans and specifications shall

remain in the custody of the BUILDER for the duration of the contract. The

working drawings shall be effected by the BUILDER or his agent unless

otherwise specified herein.

BUILDER'S OBLIGATION

The BUILDER shall:

6.1

provide everything necessary for the construction of the home, to the

reasonable satisfaction of the OWNER and substantially in accordance

with the building plans and specifications;

Building Contract Memorandum Of Agreement And Conditions Of Contract Page 3