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Construction Agreement

R1 499

Create a detailed construction agreement for building, civil, engineering, infrastructure, renovation, or project works, covering scope, programme, payment, variations, safety, defects, completion, delays, insurance, and dispute resolution.

A Construction Agreement is used for larger or more formal construction works, including building projects, renovations, extensions, civil works, engineering works, infrastructure, commercial construction, residential construction, and project-based construction services. It should regulate scope, drawings, specifications, programme, price, payment, variations, completion, delays, defects, health and safety, insurance, performance security, and disputes.

South African legal context (2026 checklist)

Construction projects require clear risk allocation. The agreement should avoid vague descriptions of the works and should include a clear process for variations, delays, defects, certification, retention, completion, and final account. For public-sector work, CIDB registration, procurement rules, tender conditions, performance guarantees, and statutory compliance may be required. For private residential home building, NHBRC-related requirements may also be relevant.

  • South African common law of contract
  • Consumer Protection Act 68 of 2008
  • Occupational Health and Safety Act 85 of 1993
  • Construction Regulations, 2014
  • National Building Regulations and Building Standards Act 103 of 1977
  • Construction Industry Development Board Act 38 of 2000
  • Housing Consumers Protection Measures Act 95 of 1998
  • Preferential Procurement Policy Framework Act 5 of 2000, where public procurement is involved
  • Preferential Procurement Regulations, 2022
  • Local Government: Municipal Finance Management Act 56 of 2003, where a municipality is involved
  • Public Finance Management Act 1 of 1999, where a public entity is involved
  • Protection of Personal Information Act 4 of 2013
  • Prescription Act 68 of 1969
  • Arbitration Act 42 of 1965

Use this as a starting point only. Verify current gazetted amendments, tribunal rules, and SARS / DOL circulars that may apply to your matter.

Typical questions we'll walk you through

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Who is the employer, client, developer, or owner?
Who is the employer, client, developer, or owner?
Who is the contractor?
Who is the contractor?
What construction works must be performed?
What construction works must be performed?
What site or property does the project relate to?
What site or property does the project relate to?
Are drawings, bills of quantities, specifications, schedules, or designs attached?
Are drawings, bills of quantities, specifications, schedules, or designs attached?
What contract price, rates, provisional sums, or cost-plus arrangement applies?
What contract price, rates, provisional sums, or cost-plus arrangement applies?
What payment milestones, progress claims, retention, or certificates apply?
What payment milestones, progress claims, retention, or certificates apply?
What start date, practical completion date, and final completion date apply?
What start date, practical completion date, and final completion date apply?
What extension-of-time rules apply?
What extension-of-time rules apply?
How will variations be instructed, priced, and approved?
How will variations be instructed, priced, and approved?
What performance security, guarantees, insurance, or warranties are required?
What performance security, guarantees, insurance, or warranties are required?
Who is responsible for permits, approvals, safety files, method statements, and inspections?
Who is responsible for permits, approvals, safety files, method statements, and inspections?
What defects liability period applies?
What defects liability period applies?
What happens if there are delays, defects, non-payment, or abandonment?
What happens if there are delays, defects, non-payment, or abandonment?
Will disputes be referred to negotiation, adjudication, mediation, arbitration, or court?
Will disputes be referred to negotiation, adjudication, mediation, arbitration, or court?

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