Building Agreement Template Page 8
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132.3.
Exclusion of other Agreements
This Agreement cancels and superseded all other contracts entered into by the Parties before the
date of this Agreement and any amendment, addition hereto or consensual cancellation thereof will
be of no force of effect unless it appears in writing and is signed by the Parties hereto.
2.4.
Clause Headings
The head notes in this Agreement are used only for the purpose of reference and shall in no way
effect or govern the construction or interpretation of this Agreement.
3.
THE WORKS
3.1.
The Contractor undertakes to execute the Works in a proper and workmanlike manner against
payment of the Contract Price referred to in Clause 4 of this Agreement.
3.2.
The Works shall be substantially in accordance with the Plan and Basic Specifications. The
placement of the Works will be in accordance with the approved Building Plan.
3.3.
In the event of any discrepancy arising from the Plan and the Basic Specifications, the provisions of
the Basic Specifications shall prevail.
3.4.
The Employer irrevocably grants a power of attorney to the Contractor to sign and submit
the necessary drawings and specifications to the Local Authority for its approval.
4.
CONTRACT PRICE
The Contract Price shall be the amount referred to in Clause 3.1 of the Covering Schedule. The
Upgrade to Specifications and Additional Costs shall be the amounts stipulated in Clause 3.2 of the
Covering Schedule.
The employer will be liable for interim interest from date of registration until final draw.
5.
PAYMENT OF THE CONTRACT PRICE
5.1.
Payment of the Contract Price shall be made by the Employer to the Contractor in progress
payment instalments as Works progress as follows:
5.1.1. 25% on completion of the floor slab
5.1.2. 25% on completion of the roof construction
5.1.3. 25% on completion of ceilings, plaster work, windows and external doors
5.1.4. 15% on completion of cupboards and sanitary ware
5.1.5. The balance (10%) before completion and occupation of the dwelling
5.2.
If the building works are financed by a Bank the Employer herewith 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 interim interest charged by the Bank.
5.3.
This agreement is subject to the purchaser being offered a loan to be secured by a first mortgage
bond over the property and improvements for an amount reflected in the Schedule or such lesser
amount as the Purchaser may accept, within 30 (thirty) days of the date of the Sellers signature
hereto “the initial period” which period may be extended in the Sellers sole discretion.
5.4.
If building works are not financed by a Bank the Employer will provide guarantees for the full
contract sum within 14 (fourteen) days after signing of this Contract to the offices of
Contractor.
5.5.
In the instance where a bond has been registered by the Employer the payment of the Contract
Price will be made according to the standard procedure of the financial institution concerned.
5.6.
If part of the Contract Price is financed by a bond, the Employer undertakes to pay the cash portion
of the Contract Price according to the progress payment instalments as referred to in Clause 5.1
above and the bond will be utilized for the subsequent payments.
5.7.
The Upgrade to Specifications and Additional Costs which is not included in the bond amount shall
be payable by the Employer to the Contractor in cash within 24 (Twenty Four) hours after
determination of these amount by the Parties, failing to do so, the Contractor will not be obliged to
execute the work as specified under Upgrade to Specifications and Additional Costs, and the Basic
Specifications as stipulated in Annexure C will prevail.
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