Contract Document Pricelists

MBSA  Pricelist

Jbcc Pricelist

  Procsa Pricelist

OHS Pricelist

1.  Could you please clarify the following?

Selected Sub-Contractor- this is when the contractor selects his own sub-contractor eg the Plumber

Nominated Sub-Contractor - this is in the case of the sub-contractor being nominated by the Client or the Principal Agent.  When the contractor accepts his appointment then the same rules apply in terms of eg: the responsibility for the nominated s/c becomes the contractors problem. eg: Specialist s/c for example Air conditioning, Landscaper/Pool

Direct Sub-Contractor -  This is a contractor appointed by the client... The contractor should not accept any responsibility for performance from such a s/c. Payment is made directly to the s/c by the Client.

Principal Agreement Clause 3-  Why does the Agreement require a Payment Guarantee to be provided by the employer 

 In the past it has not been customary or thought necessary that the employer (no matter how financially stable he may appear to be) should, in turn, provide security to the contractor.  Correctly this unfair practice is addressed in the JBCC Contract.  However there is much debate on the quantum of cover that is seen as being reasonable withthe industry "ducking the issue" on setting criteria for such a guarantee.  In addressing the above we are of the opinion that the two highest contiguous projected cash flow months to the contractor should form the basis of the guarantee provided that such amount should not be more than 12.5% of the contract sum.  This method seems to provide a practical solution in most instances and should be addressed in the Payment Guarantee in terms of 3.1.