c1.1 ecc3 offer & acceptance (c) - ioptions.co.za€¦ · web viewthe conditions of contract...

Guidance notes (delete column when document has been compiled and change Page Setup from landscape to portrait)

(January 2016)

Insert employer’s logo or delete box Delete this page if documents C1, C2 and C3 are combined in a tender document

The drafters of these templates make no representations or warranties to the users of the templates (express, implied or statutory) with respect to the accuracy or completeness of any information or its suitability for any purpose and assume no responsibility for the content of such information or the consequences of using it, which shall be at the sole risk of its user.

Users are advised to obtain the necessary professional advice in developing contracts using these templates.

NOTE The contents of this template are aligned with South African requirements. Some of the data may require adjustment if used in other jurisdictions.

Insert name of employer

Tender No Insert contract or tender number project number

Insert title of contract

CONTRACT DOCUMENT(Based on NEC3 Professional Service Contract)

Insert date or month

Issued by:

Prepared by

Insert name of address of employers under “issued by” and name of consultant, if any, who prepared the document under “prepared by”, if applicable or appropriate

Insert address of employer and, if relevant, the address of the consultant who prepared the document.

Contact:

Name: Insert name of employer contact person and if relevant, the name of the consultant contact person

Telephone: Insert telephone number of employer contact person and if relevant, the telephone number of the consultant contact person

Name of Consultant: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Guidance notes (delete column when document has been compiled and change Page Setup from landscape to portrait).

Delete this page if documents C1, C2 and C3 are combined in a tender document


Insert project number

Insert title of project

Contents

Number Heading

THE CONTRACTPart C1: Agreements and Contract DataC1.1 Form of offer and acceptance

C1.2 Contract dataPart 1 – Data by the EmployerPart 2 – Data by the Consultant

C1.3 Securities Delete row if not required i.e. if secondary options X4, or X13 apply and adjust title if necessary.

Part C2: Pricing DataC2.1 Pricing Assumptions

C2.2 Activity Schedule Include where Option A or C applies. Delete row where Options C, E or G applies

C2.2 Task Schedule Include where Option G applies and lump sum items are included in the task Schedule or delete row

Insert employer’s logo or delete box and move column over to left

C2.3 Staff rates Renumber as C2.3 if Option E applies or if Option G applies without a Task Schedule

C2.4 Expenses Renumber if applicable or delete if no expenses are tenderers

Part C3: Scope of workC3 Scope of Work





C1.1 Form of Offer and Acceptance

Offer Guidance notes (delete column when document has been compiled and change Page Setup from landscape to portrait)

The Employer, identified in the Acceptance signature block, has solicited offers to enter into a contract for the provision of services as described in Part 1 of the Contract Data.

The tenderer, identified in the Offer signature block, has examined the documents listed in the Tender Data and addenda thereto as listed in the Returnable Schedules, and by submitting this Offer has accepted the Conditions of Tender.

Use this wording where tenders are called for using the standard conditions of tender. Delete row if not applicable.

The tenderer, identified in the Offer signature block, has examined the draft contract as listed in the Acceptance section and agreed to provide this Offer.

Use this wording where a contract is negotiated with a single tenderer. Delete row if not applicable.

By the representative of the tenderer, deemed to be duly authorised, signing this part of this Form of Offer and Acceptance the tenderer offers to perform all of the obligations and liabilities of the Consultant under the contract including compliance with all its terms and conditions for an amount to be determined in accordance with the conditions of contract identified in the Contract Data.

Contract 1 C1.1 Part C1: Agreement and Contract Data Form of Offer and Acceptance


THE OFFERED TOTAL OF THE PRICES INCLUSIVE OF VAT IS:

(in words) ……………………………………………………………………………………….. ……………………………….Rand;

R………………………(in figures)

Use where Options A and C applyDelete row where Options E applies

THE OFFERED TOTAL OF THE PRICES INCLUSIVE OF VAT AND EXPENSES, calculated in accordance with the conditions of contract, is not to exceed

Use where Option E and G applies. Delete row where Options A and C apply. Alternatively state: THE OFFERED TOTAL OF THE PRICES INCLUSIVE OF VAT AND EXPENSES does not apply as it is a cost reimbursable contract.

(in words) ……………………………………………………………………………………….. ……………………………….Rand;

R………………………(in figures)

This Offer may be accepted by the Employer by signing the Acceptance part of this Form of Offer and Acceptance and returning one copy of this document including the Schedule of Deviations (if any) to the tenderer before the end of the period of validity stated in the Tender Data, or other period as agreed, whereupon the tenderer becomes the party named as the Consultant in the conditions of contract identified in the Contract Data.


This Offer may be accepted by the Employer by signing the Acceptance part of this Form of Offer and Acceptance and returning one copy of this document including the Schedule of Deviations (if any) to the tenderer before the end of the agreed period of validity, or other period as agreed, whereupon the tenderer becomes the party named as the Consultant in the conditions of contract identified in the Contract Data.

Use this wording where a contract is negotiated with a single tenderer.

Signature(s)

Name(s)

Capacity

For the tenderer:

Name & signature of witness

(Insert name and address of organisation)

Date


Acceptance


By signing this part of this Form of Offer and Acceptance, the Employer identified below accepts the tenderer’s Offer. In consideration thereof, the Employer shall pay the Consultant the amount due in accordance with the conditions of contract identified in the Contract Data. Acceptance of the tenderer’s Offer shall form an agreement between the Employer and the tenderer upon the terms and conditions contained in this agreement and in the contract that is the subject of this agreement.

The terms of the contract, are contained in:

Part C1 Agreements and Contract Data, (which includes this Form of Offer and Acceptance)

Part C2 Pricing Data

Part C3 Scope of Work

and drawings and documents (or parts thereof), which may be incorporated by reference into the above listed Parts.

Deviations from and amendments to the documents listed in the Tender Data and any addenda thereto listed in the Returnable Schedules as well as any changes to the terms of the Offer agreed by the tenderer and the Employer during this process of offer and acceptance, are contained in the Schedule of Deviations attached to and forming part of this Form of Offer and Acceptance. No amendments to or deviations from said documents are valid unless contained in this Schedule.


Deviations from and amendments to the draft contract as well as any changes to the terms of the Offer agreed by the tenderer and the Employer during this process of offer and acceptance, are contained in the Schedule of Deviations attached to and forming part of this Form of Offer and Acceptance. No amendments to or deviations from said documents are valid unless contained in this Schedule.

Use this wording where a contract is negotiated with a single tenderer. Delete row if not applicable.

The tenderer shall within two weeks of receiving a completed copy of this agreement, including the Schedule of Deviations (if any), contact the Employer’s agent (whose details are given in the Contract Data) to arrange the delivery of any securities, bonds, guarantees, proof of insurance and any other documentation to be provided in terms of the conditions of contract identified in the Contract Data. Failure to fulfil any of these obligations in accordance with those terms shall constitute a repudiation of this agreement.

Notwithstanding anything contained herein, this agreement comes into effect on the date when the tenderer receives one fully completed original copy of this document, including the Schedule of Deviations (if any). Unless the tenderer (now Consultant) within five working days of the date of such receipt notifies the Employer in writing of any reason why he cannot accept the contents of this agreement, this agreement shall constitute a binding contract between the Parties.


Signature(s)Amend details if necessary

Name(s)

Capacity

for the Employer

Name & signature of witness

(Insert name and address of organisation)

Date: . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . .


Schedule of Deviations

1 Subject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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2 Subject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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3 Subject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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4 Subject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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5 Subject . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Guidance notes (delete column when document has been compiled and change Page Setup from landscape to portrait))

By the duly authorised representatives signing this agreement, the Employer and the Tenderer agree to and accept the foregoing schedule of deviations as the only deviations from and amendments to the documents listed in the Tender Data and addenda thereto as listed in the returnable schedules, as well as any confirmation, clarification or changes to the terms of the offer agreed by the Tenderer and the Employer during this process of offer and acceptance.

Use this wording where tenders are called for using the standard conditions of tender.Delete row if not applicable.

By the duly authorised representatives signing this agreement, the Employer and the Tenderer agree to and accept the foregoing schedule of deviations as the only deviations from the draft contract, as well as any confirmation, clarification or changes to the terms of the offer agreed by the Tenderer and the Employer during this process of offer and acceptance.

Use this wording where a contract is negotiated with a single tendererDelete row if not applicable

It is expressly agreed that no other matter whether in writing, oral communication or implied during the period between the issue of the tender documents and the receipt by the tenderer of a completed signed copy of this Agreement shall have any meaning or effect in the contract between the parties arising from this agreement.






Part C1.2 Contract Data The Conditions of Contract are the NEC3 Professional Services Contract (Third edition with amendments issued up to and including April 2013) published by the Institution of Civil Engineers, copies of which may be obtained from Engineering Contract Strategies (telephone 011-803 3008). (Amendments made since the publication of the Third Edition of June 2005 may be downloaded from www.neccontract.com/documents/PSC.pdf).

Each item of data given below is cross-referenced to the clause in the NEC3 Professional Services Contract which requires it.

Completion of this data in full, according to the Options chosen, is essential to create a complete contract.

Part one - Data provided by the Employer

1 General

Contract 7 C1.2 Part C1: Agreements and Contract Data Contract Data: Part 1


http://www.neccontract.com/documents/PSC.pdf

The conditions of contract are the core clauses and the clauses for main Option: Select the main Option that applies and delete rows that don’t apply.Usually only one main option is selected More than on option can be selected if the work associated with each option can be “ring fenced” see row after Option G

A: Priced contract with activity schedule Lump sum priced contract in which the risks of being able to provide the service at the agreed prices in the activity schedule are largely borne by the Consultant. The Employer carries some risk through the compensation event procedures. Only used when the scope of work is fully known and capable of being priced and programmed. Delete row if main Option does not apply.

C: Target contract Target contract in which the financial risks are shared by the Employer and the Consultant in agreed proportions.Adjusting the target share as between Employer and Consultant will vary the risk between one principally carried by the Employer to one principally carried by the Consultant, and to any stage in between those extremes. Used when fairly good estimates of scope and price can be made to set the target. Also used when the scope of work is finalised after some initial work is undertaken in terms of Option E. The target is adjusted for compensation events other than changes in Scope approved by the Employer which are proposed by the Consultant which reduce the total Time Charge. This provides an incentive to Consultants to propose changes to reduce costs.Delete row if main Option does not apply.

E: Time based contract Type of cost reimbursable contract in which the financial risk is largely borne by the Employer, who has complete flexibility. The Consultant carries some risk as he has to allow for the “disallowed costs”. Used when work is done on an ad hoc basis or has a high research component.Delete row if main Option does not apply.

G: Term contract A term contract is a contract in which various items of work are priced or stated to be on a time basis. Thus the risk of being able to perform the instructed tasks at the agreed rate or staff rates is largely borne by the Consultant, whilst the Employer retains control over the individual Tasks to be carried out.Delete row if main Option does not apply.

dispute resolution Option W1: Dispute resolution procedure

and secondary Options Select the secondary Options that apply and delete the rows of the secondary Options that don’t apply.


X1: Price adjustment for inflation Include where main Options A,C, E or G applies and where the contract period exceeds say one year or where it is desirable to allow for price adjustment for inflationDelete row if secondary Option does not apply.

X2 Changes in the law Omit where the Employer is not willing to take the risk associated with changes to the law that affect the Consultant’s costs. (Not normally omitted)Delete row if secondary Option does not apply.

X3: Multiple currencies Consider inclusion if payment is to be made in multiple currencies in main Options A and G only in order to protect the Consultant from currency fluctuationsDelete row if secondary Option does not apply. (The Employer should consider taking out forward cover to insure against currency fluctuations) when using this option.)

X4: Parent company guarantee Consider as an alternative to a performance bond (secondary option X13) if the Consultant has a parent company. Include the form of the guarantee in the Scope. (This option is seldom used)Delete row if secondary Option does not apply.

X5: Sectional Completion Include where parts of the services are to be completed before the whole of the services i.e. where the parts of the services are key milestone dates leading up to the Completion of the whole of the services. Not used with Option GDelete row if secondary Option does not apply.

X6: Bonus for early Completion Consider inclusion where it is desirable to provide an incentive to the Consultant to complete the works early. Not used with Option G.Delete row if secondary Option does not apply.

X7: Delay damages Omit if there are no penalties (liquidated damages) to be paid by the Consultant for achieving Completion later than the Completion Date.Delete row if secondary Option does not apply.

X8: Collateral warranty agreements Include where an agreement is entered into by the Consultant with purchasers and tenants or funding agents (who are not the Employer) of an industrial or commercial development. It has the effect of binding the Consultant in Contract and creating liability towards parties other than the Employer which may not otherwise exist (see NEC3 ECC Guidance Notes)Delete row if secondary Option does not apply.- not really applicable to projects that are fully funded with public funds


X9: Transfer of rights Include where the Employer is to own the rights over the materials prepared by the Consultants and his subconsultants. Delete row if secondary Option does not apply.

X10 Employer’s Agent Include where the Employer appoints an agent from within its own organisation or an external consultant to act on his behalfDelete row if secondary Option does not apply.

X11: Termination by the Employer Include if Employer may terminate the contract for a reason other than one of the reasons provided for in the contract (i.e. a reason which might not be due to any fault of the Consultant) and is willing to pay a premium upon termination.Delete row if secondary Option does not apply.

X12: Partnering Consider inclusion where the contract is to be managed as if it were a partnership (i.e. without creating a legal partnership. (Partnering is ideally suited to complex activities and large projects – see Bennet, J and Baird A. NEC and Partnering – the Guide to Building Winning Teams. Thomas Telford. London 2001. (Available from Engineering Contract Strategies telephone 011-803 3008)Delete row if this option does not apply

X13: Performance Bond Omit if a parent company guarantee (secondary option X4) is required or where no performance bond is required. Option seldom used.Delete row if secondary Option does not apply.

X18: Limitation of liability Include where liability of the Consultant is to be further limited beyond that already provided in core clause 82Delete row if secondary Option does not apply.

X20 : Key performance indicators Consider this secondary option where financial incentives are provided to achieve or improve upon a KPI. (Not to be used together with secondary option X12:Partnering)Delete row if secondary Option does not apply.

Z: Additional conditions of contract

of the NEC3 Professional Services Contract Delete if early stages of a construction project are to be executed as a time based contract (Option E) and the remaining stages as an Option A or C contract..

10.1 The Employer is the Enter the data

Address:

Postal Address:


Tel No. :

Fax No. :

Mobile No. :

E-mail address:

11.2(9) The services Describe the services clearly but briefly to enable the services to be identified

11.2(10) The following matters will be included in the Risk Register

Identify and insert any risks that are inherent to the project. It should be noted that the Risk Register is updated following the award of the contract. Inserting risks in the Risk Register does not change the allocation of risk; it is just a means of trying to shrink or remove it.

11.2(11) The Scope is in the document called Part 3: Scope of Work

12.2 The law of the contract is the law of the Republic of South Africa Consider amending the statement if contract is outside South Africa

13.1 The language of this contract is English

13.3 The period for reply is weeks Insert the number of weeks – usually 2.

13.6 The period for retention is years following Completion or earlier termination. This is the period after Completion the Consultant has to retain records for. Insert the number of years – usually 10. (A period of ten years aligns with ECSA’s code of conduct)

2 The Parties’ main responsibilities

25.2 The Employer provides access to the following persons, places and thingsProvide relevant data.Provision is made in Part 2 for the Consultant to state any additional accesses he will require together with the relevant access dates. Could consider deleting this row if only the Consultant is to specify in Part 2 when access is required.

access to access date

1

2

3

3 Time

30.1 The starting date is Provide a date or state “two weeks after the Consultant receives one fully completed original copy of this contract, including the schedule of deviations (if any) as contained in the Form of Offer and Acceptance”, as appropriate.


11.2(3) The completion date for the whole of the services is . Provide a date or state “……weeks after the starting date”

11.2(6) The Key Dates and the conditions to be met are: Provide dates by which the service is to reach the condition stated. . (Clause 23.3 allows the Employer to recover from the Consultant additional costs he has incurred as a result of the failure of the Consultant to achieve the stated condition by the key date.) Delete row if there are no key dates

Condition to be met key date

1

2

3

31.1 The Consultant is to submit a first programme for acceptance within weeks of the Contract Date. Insert the number of weeks from the time that the contract comes into existence – typically not more than about 5 weeks.Delete row where a programme satisfying the requirements of the contract has been submitted by the Consultant before contract formation and is identified in the Contract Data provided by the Consultant

32.2 The Consultant submits revised programmes at intervals no longer than weeks. Insert the number of weeks.

4 Quality

40.2 The quality policy statement and quality plan are provided within weeks of the Contract Date. Insert the number of weeks. (The Employer’s requirements, if any, for a quality management system are as stated in the Scope.If there are no requirements for a quality statement and quality plan, state ‘Not required for this contract” and delete the data.

41.1 The defects date is weeks after Completion of the whole of the services. Insert the number of weeks. (Period depends on type of services and is typically between 26 and 52 weeks).

5 Payment

50.1 The assessment interval is monthly on or before the day of each successive month. Amend as necessary

50.3 The expenses stated by the Employer areDelete row if the Employer does not wish to state any expenses and requires the Consultant to state them in his data. Expenses may include photocopies, travelling and hotel expenses, telephone costs etc. Expenses may also include disbursements which are fees and charges paid by the Consultant on behalf of the Employer.Expenses may be expressed in various forms such as: at net cost at cost plus …..%

Item Amount


lump sums and rates percentage of Prices reference to a published documente.g.

Item Amount advertising for site staff at costVehicle travelling costs, typing, photocopying, covers and binding and plan printing.

In accordance with the latest Rates for Reimbursable Expenses published on www.publicworks.gov.za/PDFs/consultants_docs/1205Rate.pdf

Parking charges, toll fees, a scheduled airline or a train, bus, taxi or hired car, non-scheduled or privately owned air transport, accommodation and subsistence expenses

At cost

Site traffic surveys, geotech-nical investigations, laborat-ory testing, topographical and land surveys, supply of spe-cific equipment, specialist sub-consultants, models, presentation materials, envir-onmental investigations and studies, land acquisitions, ex-propriation, way leaves, and servitudes.

At cost plus 10%

51.1 The period within which payments are made is weeks. State number of weeks if the default period of 3 weeks is not acceptable. If three weeks is acceptable, delete this row.

51.2 The currency of this contract is the South African Rand.

51.5 The interest rate is the Prime lending rate of the Employer’s Bank Modify a necessary

6 Compensation events

No data required for this section of the conditions of contract.

7 Rights to material


8 Indemnity, insurance and liability


81.1 The amounts of insurance and the periods for which the Consultant maintains insurance are

Event Cover Period following Completion of the whole of the services or earlier termination

failure by the Consultant to use the skill and care normally used by professionals providing services similar to the services

R . in respect of each claim, without limit to the number of claims

For as long as the Consultant remains in business

Enter minimum amount of professional indemnity cover. The minimum level of cover for construction projects should not be less than:- geotechnical, civil and structural engineering: R5,0 m - electrical and mechanical engineering: R3,0 m- architectural R5,0 m- other R2,0 m Employers have recourse to the insurers only during the period for which the premiums have been paid. Where consultants have uninterrupted cover for at least the required amount, the period is relatively unimportant as the Consultant will have cover so long as he is in business.. Where higher cover is required, the period becomes important. On some projects, it may be more appropriate for the Employer to take out the insurance for a given period. Typically enter “as long as the Consultant remains in business” where Consultant are most likely to have uninterrupted cover for the required amount or either state the number of years, typically 3 years (i.e. the period of prescription) where a higher than usual policy is required or arrange for the Employer to take out insurance cover in which case delete the row and include such insurance under insurance provided by the Employer.

death of or bodily injury to a person (not an employee of the Consultant) or loss of or damage to property resulting from an action or failure to take action by the Consultant

R million in respect of each claim, without limit to the number of claims

Enter amount and time periods.The act of neglect leading to liability will have taken place prior to completion. Claims, however, can be made afterwards. There is no need to maintain such a policy after the completion of the services. A “ 0 years” period should suffice in most instances.

death of or bodily injury to employees of the Consultant arising out of and in the course of their employment in connection with this contract

R million in respect of each claim, without limit to the number of claims

Enter amount and time period, or state: “That which is prescribed by the Compensation injuries and Diseases Act No. 130 of 1993 as amended and whatever the Consultant deems desirable in addition”“0 years” may be entered against the period as the cover may terminate upon completion. This cover is additional to workman’s compensation. .

81.1 The Employer provides the following insurances :


State insurances taken out by the Employer or state “None” if there are none.

failure by the Consultant to use the skill and care normally used by professionals providing services similar to the services

R in respect of each claim, without limit to the number of claims

Delete row if Employer does not take out professional indemnity cover.Enter minimum amount of professional indemnity cover and time period where the Employer takes out this insurance.

The Consultant provides these additional insurances. Delete row or enter particulars of additional insurances.

1 Insurance against: Delete row or enter data

Cover is: Delete row or enter data

Period of cover Delete row or enter data

The deductibles are: Delete row or enter data

2 Insurance against: Delete row or enter data

Cover is Delete row or enter data

Period of cover Delete row or enter data

The deductibles are Delete row or enter data

82.1 The Consultant’s total liability to the Employer for all matters arising under or in connection with this contract, other than the excluded matters, is limited to R

State value or “the amount of the insurance cover which this contract requires.”

9 Termination


10 Data for main Option clause

A Priced contract with activity schedule Delete row if Option is not selected

21.3 The Consultant prepares forecasts of the total of the expenses at intervals of no longer than weeks. Delete row if Option is not selected or enter number of weeks, typically 5 weeks.

C Target contract Delete row if Option is not selected

21.4 The Consultant prepares forecasts of the total Time Charge and expenses at intervals no longer than weeks.

Delete row if Option is not selected or enter number of weeks, typically 5 weeks.


50.4 The exchange rates are those published on on (date). Delete row if not applicable or state publication and date or give reference to where these figures are published on a website e.g. . the website www.xe.com/ict/ on 1 May 2012

54.1 The Consultant’s share percentages and the share ranges are Delete rows if Option is not selected or insert data. It is advisable not to provide too great an incentive for the Consultant to cut costs (and possibly sacrifice quality). The Consultant on the other hand will have to risk price in arriving at the target cost if they carry the full cost of cost overruns. It is important to obtain a reasonable balance when arriving at share percentages and share ranges e.g.

share range % commentLess than 80%

30 Creates a disincentive to cut the service. Significantly higher value would create an incentive to do so

From 80% to 90%

50 Creates incentive to work efficiently and make proposals to reduce costs.From 90% to

100%50

From 100% to 110%

75 Assuming the pre-tax profit is say 15%, a pain share of 75% for the fist twenty percent above the target will remove the profit for the service when the overrun is 20%. A pain share of 15% thereafter will allow the Consultant to continue with the work without any pre-tax profit.

From 110% to 120%

75

Greater than 120%

15

A 50% pain share in the first 10% band above the target cost would reduce risk pricing when arriving at the target. A 100% pain share above the target cost would create a guaranteed maximum price.

share range Consultant’s share percentage

less than % %

from % to % %

from to % %

greater than % %

E Time based contract Delete row if Option is not selected



G Term contract Delete row if Option is not selected



11 Data for Option W1


http://www.xe.com/ict/

W1.1 The Adjudicator is (Name)

Address

Postal Address

Tel No.

Fax No.

Mobile No.

e-mail

State name of adjudicator and provide data if appointed at the time that the contract is conclude or delete row if option below is selected

W1.1 The Adjudicator is the person selected by the Parties from the Panel of NEC Adjudicators set up by ICE-SA, a joint division of the Institution of Civil Engineers and the South African Institution of Civil Engineering (see www.ice-sa.org.za),

W1.2(3) The adjudicator nominating body is the Chairman of ICE-SA, a Joint Division of the Institution of Civil Engineers and the South African Institution of Civil Engineering (see www.ice-sa.org.za).

W1.3(4b) The main contract Adjudicator is Delete row if PSC is not used as a subcontract or state “the same Adjudicator as that appointed for contract no ……..”

W1.4(2) The tribunal is Insert “arbitration” or a “reference to a South African Court of Law”

W1.4(5) The arbitration procedure is as set out in the Rules for the Conduct of Arbitrations Fifth Edition 2005 published by the Association of Arbitrators (Southern Africa)

Delete rows associated with arbitration if the tribunal is reference to a South African Court of Law. Alternatively state “as set out in the Rules of the Arbitration Foundation of Southern Africa”

The place where arbitration is to be held is Insert town or city where arbitration is to be held

The person or organisation who will choose an arbitrator if the Parties cannot agree a choice or if the arbitration procedure does not state who selects an arbitrator, is the Chairman of the Association of Arbitrators (Southern Africa)

Alternatively state “the Chairman of the Arbitration Foundation of Southern Africa”

12 Data for secondary Option clauses Delete row if there are no secondary options.

X1 Price adjustment for inflation Delete row if secondary Option is not selected


http://www.ice-sa.org.za/


X1.1 The index is . Delete row if secondary Option is not selected or state index e.g. The index is the index published in “Consumer Price Index: index numbers and year on year rates ” as published in the Statistical News Release, P0141 Table B of Statistics South Africa.

The staff rates are

fixed at the Contract Date and are not variable with changes in salary are those that are based on a rate per hour.

variable with changes in salary paid to individuals are those derived from the total annual cost of employment.

Delete row if secondary Option is not selected Amend as necessary

X2 Changes in the law Delete row if secondary Option is not selected

X2.1 The law of the project is the law of the Republic of South Africa subject to the jurisdiction of the Courts of South Africa.

Delete row if secondary Option is not selected. Amend law if project is outside of South Africa.

X3 Multiple currencies Delete row if secondary Option is not selected

X3.1 The Employer will pay for these items or activities in the currencies stated Delete rows if secondary Option is not selected or enter data

Items and activities Other currency Maximum payment in other currency

X3.1 The exchange rates are those published in on (date) Delete rows if secondary Option is not selected or enter name of publication and date e.g. on the website www.xe.com/ict/ on 1 May 2012

X4 Parent company guarantee Delete rows if secondary Option is not selected

The form of the parent company guarantee is in the form set out in the document 1.3 Securities: Parent Company Guarantee

X5 Sectional Completion Delete row if secondary Option is not selected

X5.1 The completion date for each section of the services is: Delete rows if secondary Option is not selected or enter relevant data

section descriptioncompletion date


http://www.xe.com/ict/

1

2

3

X5 and X6 Sectional Completion and bonus for early Completion used together Delete row if secondary Option is not selected

X6.1X5.1

The bonuses for early Completion of each section of the services are: Delete rows if secondary Option is not selected or enter relevant data. (Note the bonus is always stated as an amount per day and not a percentage of something)

section description amount per day

1 R

2 R

3 R

Remainder of the services R

X5 and X7 Sectional Completion and delay damages used together Delete row if secondary Option is not selected

X7.1X5.1

Delay damages for late Completion of each section of the services are: Delete rows if secondary Option is not selected or enter relevant data

section description amount per day

1 R

2 R

3 R

Remainder of the services R

X6 Bonus for early Completion Delete row if secondary Option is not selected

X6.1 The bonus for early Completion of the whole of the services is R per day Delete row if secondary Option is not selected or enter data

X7 Delay damages Delete row if secondary Option is not selected

X7.1 Delay damages for late Completion of the whole of the services are R per day Delete row if secondary Option is not selected or enter data

X8 Collateral warranty agreements Delete rows if secondary Option is not selected or enter relevant data


X8.1 The collateral warranty agreements are:

agreement reference third party

X10 The Employer’s Agent Delete rows if secondary Option is not selected

X10.1 The Employer’s Agent is Delete row if secondary Option is not selected or enter data

Name:

Address

Postal Address

Telephone No.

Fax No.

Mobile No.

E-mail address:

The authority of the Employer’s Agent is Delete row if secondary Option is not selected or state authority of Employer’s Agent e.g. The authority of the Employer’s Agent is to carry out all actions of the Employer in this contract with respect to all matters except those required by clauses 51.1, 55.1, 81.1, 90 and 92.

X12 Partnering Delete row if secondary Option is not selected

X12.1 The Client is (Name) Delete row if secondary Option is not selected or enter data

Address

Postal Address

Tel

Fax

Mobile No.

E-mail address:

X12.1(4) The Partnering Information is in Delete row if secondary Option is not selected or identify the document where the Partnering Information is located


X12.2(1) The Client’s objective is Delete row if secondary Option is not selected or state Client’s objective

X13 Performance bond Delete row if secondary Option is not selected

The form of the performance bond is in the form set out in the document C1.3 Securities: Performance Bond

Delete row if secondary Option is not selected

X13.1 The amount of the performance bond is R . Delete row if secondary Option is not selected or enter data as an amount only

X18 Limitation of liability Delete row if secondary Option is not selected

X18.1 The Consultant’s liability to the Employer for indirect or consequential loss is limited to R Delete row if secondary Option is not selected or enter an amount e.g. R 2 million or an amount equal to twice the amount of the total of Prices or the amount or the amount of the insurance cover

X18.2 The Consultant’s liability to the Employer for Defects that are not found until after the defects date is limited to R

Delete row if secondary Option is not selected or enter data

X18.3 The end of liability date is years after Completion of the whole of the services. Delete row if secondary Option is not selected or enter data, typically between 2 and 5 years

X20 Key Performance Indicators Delete row if secondary Option is not selected

X20.1 The incentive schedule for Key Performance Indicators is in the document called Part 3 : Scope of Work Delete row if secondary Option is not selected

X20.2 A report of performance against each Key Performance Indicator is provided at intervals of months Delete row if secondary Option is not selected or enter data

Z Additional conditions of contract

The additional conditions of contract are


Z1 Tax invoices

The Consultant’s invoice.

Delete the first sentence of core clause 50.2 and replace with:

Invoices submitted by the Consultant to the Employer include the details stated in the Scope to show how the amount due has been assessed, and the details required by the Employer for a valid tax invoice.

Delete the first sentence of core clause 51.1 and replace by:

Each payment is made by the Employer within three weeks of receiving the Consultant’s invoice showing the details which this contract requires or, if a different period is stated in the Contract Data, within the period stated.

Include in all local contracts.

Z2 Communications

Add to the end of the first sentence in core Clause 13.1:

“excluding communication by a communications protocol allowing the interchange of short text messages between mobile telephone devices and a store-and-forward method of writing, sending, receiving and saving messages over the internet.”

Include in all local contracts if SMSs and emails cannot be managed effectively. Delete “and a store-and-forward method of writing, sending, receiving and saving messages over the internet” if emails are acceptable.

Z3 Selection and appointment of the Adjudicator

Add the following paragraph to clause W.1.2(1)

Within 2 weeks after declaring a dispute and if the Adjudicator was not yet appointed with a previous dispute, the notifying Party notifies the other Party of the names of two persons he has chosen from the Panel of NEC Adjudicators set up by ICE-SA, a joint division of the Institution of Civil Engineers and the South African Institution of Civil Engineering (see www.ice-sa.org.za), whose availability to act as the Adjudicator the notifying Party has confirmed. The other Party selects one of the two persons chosen to be the Adjudicator within four days of receiving the notice, failing which the person chosen by the notifying Party will be the Adjudicator for the Contract. The Parties appoint the selected Adjudicator under the NEC3 Adjudicator’s Contract (Third edition with amendments up to and including April 2013).

Z4 Acts or omissions by mandatories

In terms of Section 37(2) of the Occupational health and Safety Act of 1993 (Act 85 of 1993), the Consultant hereby agrees that the Employer is relieved of any and all of its liabilities in terms of Section 37(1) of this Act in respect of any acts or omissions of the Consultant and his employees to the extent permitted by this Act, and that this contract comprises the written agreement between the Employer and the Consultant contemplated in section 37(2).



http://en.wikipedia.org/wiki/Message

http://en.wikipedia.org/wiki/Store-and-forward

http://en.wikipedia.org/wiki/Message

http://en.wikipedia.org/wiki/Store-and-forward

http://en.wikipedia.org/wiki/Mobile_phone

http://en.wikipedia.org/wiki/Communications_protocol

Z5 Expenses

If the Parties agree, estimates of expenses may be included in the lump sum prices in the Task Schedule which are assessed as compensation events.






Part C1.2 Contract Data

The Consultant is advised to read the NEC3 Professional Service Contract (Third edition with amendments issued up to and including April 2013) and the relevant Guidance Notes and Flow Charts, published by the Institution of Civil Engineers, in order to understand the implications of this Data which is required. Copies of these documents may be obtained from the Engineering Contract Strategies (telephone (27) 011 803 3008).

Each item of data given below is cross-referenced to the clause in the NEC3 Professional Service Contract to which it mainly applies.

Part two - Data provided by the Consultant

Clause Statement

10.1 The Consultant is (Name):



Address

Postal address:

Tel No.

Fax No.

Mobile No.

Email:

22.1 The Consultant’s key persons are: Provide for additional key persons if necessary

1 Name:

Job:

Responsibilities:

Qualifications:

Experience:

2 Name:

Job

Responsibilities:

Qualifications:


Experience:

11.2(3) The completion date for the whole of the services is . . . . . . . . Delete row if Employer provides this data in Part 1

11.2(10) The following matters (if any) will be included in the Risk Register

11.2(13) The staff rates are as stated in the Pricing Data:

25.2 The Employer provides access to the following persons, places and things

access to access date

1

2

3

31.1 The programme identified in the Contract Data is in Annex ... to the document C3: Scope of Work Delete row if programme is not to be submitted with the tender.

50.3 The expenses stated by the Consultant are Alternative state that “The expenses are as stated in the Pricing Data” and delete rows. (See guidance for 50.3 in Data provided by the Employer

item amount


A Priced contract with activity schedule Delete rows if this Option does not apply

11.2(14) The activity schedule is in the Pricing Data

11.2(18) The tendered total of the Prices is in the Form of Offer and Acceptance

C Target contract Delete rows if this Option does not apply

11.2(14) The activity schedule is in the Pricing Data

11.2(18) The tendered total of the Prices is in the Form of Offer and Acceptance

G Term contract Delete rows if this Option does not apply

11.2(25) The task schedule is in the Pricing Data


Guidance notes (delete column when document has been compiled and change Page Setup from landscape to portrait))Delete this section if no security or type of security is not required

Insert name of Employer



Part C1.3 Securities: Parent company guarantee (for use with Option X4)(to be reproduced exactly as shown below on the letterhead of the Consultant’s Parent Company)

The organisation providing the guarantee does so by copying the proforma document onto their letterheads without any change to the text or format and completes the required details. The completed document is then given to the Employer within the time stated in the contract

{Insert name and registered address of the Employer}

Date: {insert date}

Dear Sirs,

Parent Company Guarantee for Contract No {insert contract number}

With reference to the above numbered contract made or to be made between

Contract 28 C1.3 Part C1: Agreements and Contract Data Securities


{Insert the name of the Employer} (the Employer) and

{Insert registered name and address of the Consultant} (the Consultant), for

{insert details of the works from the Contract Data} (the works)

I/We the undersigned

on behalf of the Consultant’s parent company

of physical address

and duly authorised thereto do hereby unconditionally guarantee to the Employer that the Consultant shall Provide the Works in accordance with the above numbered Contract.

1. If for any reason the Consultant fails to Provide the Works, we hereby agree to cause to Provide the Works at no additional cost to the Employer.

2. If we fail to comply with the terms of this Deed of Guarantee, the Employer may itself procure such performance (whether or not the Agreement be formally determined). The Employer is to notify us and we shall indemnify the Employer for any additional cost or expense it incurs.

3. Our liability shall be as primary obligor and not merely as surety and shall not be impaired or discharged by reason of any arrangement or change in relationship made between the Consultant and the Employer and/or between us and Consultant; nor any alteration in the obligations undertaken by the Consultant or in the terms of the Agreement; nor any indulgence, failure, delay by you as to any matter; nor any dissolution or liquidation or such other analogous event of the Consultant.

4. The Employer shall not be obliged before taking steps to enforce the terms of this Deed of Guarantee to obtain judgement against the Consultant in any court or other tribunal, to make or file any claim in liquidation (or analogous proceedings) or to seek any remedy or proceed first against the Consultant.

5. This Deed of Guarantee shall be governed by and construed in accordance with the laws of the Republic of South Africa and we hereby submit to the non-exclusive jurisdiction of Supreme Court of South Africa

Signed at . . . . . . . . . . . . . . . . . . . . . . . . on this . . . . . . . . . . day of . . . . . . . . . . . . . . . . . . . . . . .. . . 20. . . . .


Signature(s)

Names(s) (printed)

Position in parent company

Signature of witness(s)

Names (printed)


Guidance notes (delete column when document has been compiled and change Page Setup from landscape to portrait))Delete this section if no performance bond is required

Insert name of Employer



Pro forma Performance Bond – Demand Guarantee (for use with Option X13)(to be reproduced exactly as shown below on the letterhead of the Bank providing the Bond / Guarantee)

The organisation providing the guarantee does so by copying the proforma document onto their letterheads without any change to the text or format and completes the required details. The completed document is then given to the Employer within the time stated in the contract

[Insert Consultant’s name and registered address] Bank reference No.

Date:

Dear Sirs,

Performance Bond – Demand Guarantee for [insert name of Consultant] required in terms of contract [insert Consultant’s contract reference number or title]

1. In this Guarantee the following words and expressions shall have the following meanings:-



1.1 “Bank” means [Insert name of Bank, Branch (if applicable) and Registration Number]

Amend if Employer is not a company. E.g. an organ of state

1.2 “Bank’s Address” means [Insert physical address of Bank]

1.3 “Contract” means the written agreement relating to providing the works, entered into between the Employer and the Consultant, on or about the ….. day of …. 20… (Insert Contract Reference No.) as amended, varied, restated, novated or substituted from time to time;

1.4 “Consultant” means (insert name of Consultant), a company registered in accordance with the laws of the Republic of South Africa under Registration No (insert registration number).

1.5 “Employer” means (insert name of Employer), a company registered in accordance with the laws of the Republic of South Africa (insert name of country) under Registration Number (insert registration number)

1.6 “Expiry Date” means the earlier of

the date that the Bank receives a notice from the Employer stating that all amounts due from the Consultant as certified in terms of the contract have been received by the Employer and that the Consultant has fulfilled all his obligations under the Contract, or

the date that the Bank issues a replacement Bond for such lesser or higher amount as may be required by the Employer.

1.7 “Guaranteed Sum” means the sum of R. . . . . . . (in figures) and ………………………..in words

1.8 “works” means [insert details from Contract Data part 1]

2. At the instance of the Consultant, we the undersigned ______________ and ______________, in our respective capacities as _____________ and ___________ of the Bank, and duly authorized thereto, confirm that we hold the Guaranteed Sum at the disposal of the Employer as security for the proper performance by the Consultant of all of its obligations in terms of and arising from the Contract and hereby undertake to pay to the Employer, on written demand from the Employer received prior to the Expiry Date, any sum or sums not exceeding in total the Guaranteed Sum.

3. A demand for payment under this guarantee shall be made in writing at the Bank’s address and shall:

be signed on behalf of the Employer by a director of the Employer; state the amount claimed (“the Demand Amount’); state that the Demand Amount is payable to the Employer in the circumstances contemplated in


the Contract.

4. Notwithstanding the reference herein to the Contract the liability of the Bank in terms hereof is as principal and not as surety and the Bank’s obligation/s to make payment:

is and shall be absolute provided demand is made in terms of this bond in all circumstances; and is not, and shall not be construed to be, accessory or collateral on any basis whatsoever.

5. The Bank’s obligations in terms of this Guarantee:

shall be restricted to the payment of money only and shall be limited to the maximum of the Guaranteed Sum; and

shall not be discharged and compliance with any demand for payment received by the Bank in terms hereof shall not be delayed, by the fact that a dispute may exist between the Employer and the Consultant.

6. The Employer shall be entitled to arrange its affairs with the Consultant in any manner which it sees fit, without advising us and without affecting our liability under this Guarantee. This includes, without limitation, any extensions, indulgences, release or compromise granted to the Consultant or any variation under or to the Contract.

7. Should the Employer cede its rights against the Consultant to a third party where such cession is permitted under the Contract, then the Employer shall be entitled to cede to such third party the rights of the Employer under this Guarantee on written notification to the Bank of such cession.

8. This Guarantee:

shall expire on the Expiry Date until which time it is irrevocable; is, save as provided for in 7 above, personal to the Employer and is neither negotiable nor

transferable; shall be returned to the Bank upon the earlier of payment of the full Guaranteed Sum or expiry

hereof; shall be regarded as a liquid document for the purpose of obtaining a court order; and shall be governed by and construed in accordance with the law of the Republic of South Africa

and shall be subject to the jurisdiction of the Courts of the Republic of South Africa. will be invalid and unenforceable if any claim which arises or demand for payment is received

after the Expiry Date.

9. The Bank chooses domicilium citandi et executandi for all purposes in connection with this Guarantee at the Bank’s Address.


Signed at on this day of 20__


For and on behalf of the Bank

Bank Signatories(s)

Name(s) (printed)

Witness(s)

Bank’s seal or stamp






C2: Pricing Data .

C2.1 Pricing assumptions (Option A)

C.2.1.1 General

C.2.1.1.1 The Consultant is paid under Option A (Activity schedule) for the services on a lump sum basis where the work is broken down into activities. Each activity in the Activity Schedule is paid for as a lump sum. Only completed activities are assessed for payment at each assessment date; no part payment is made if the activity is not completed by the assessment date.

C.2.1.1.2 Expenses as provided for in the contract are paid in addition to the total of the Prices for each completed activity at each assessment interval.

C.2.1.1.3 The cost to the Consultant to Provide the Service is included in, or spread across, the Prices for all activities. There is no adjustment to the lump sum Activity Schedule price if the amount, or quantity, of work within that activity later turns out to be different to that which the Consultant estimated at the time that the total of Prices are accepted by the Employer. The only basis for a change to the Prices is as a result of a compensation event. (See Clause 60.1).

Use for Option A. Delete row if Options C, E or G are used

Contract 36 C2 Part C2: Pricing Data Pricing Data


C.2.1.1.4 If the Consultant has decided not to identify or to price a particular activity, it will be assumed that Consultant has included the cost to the Consultant of doing the work within the other Prices in order to fulfil the obligation to complete the service for the tendered total of the Prices.

C.2.1.1.5 The Consultant does not have to allow in his Prices for matters that may arise as a result of a compensation event.

C.2.1.1.7 The Employer has identified the items that are to be priced in the Activity Schedule. Delete row if Consultant identifies items. If the Employer does so, care needs to be taken to break the activities down in such a manner as to provide the Consultant with an adequate cash flow.

C.2.1.1.7 The Consultant is required to identify the items that are to be priced in the Activity Schedule. Delete row if Employer identifies items. Note the Services Information needs to be capable of being priced as a lump sum where this option is used. If not, tenders received may not be comparable

C.2.1.1.8 The Prices in the Activity Schedule exclude VAT

C2.1 Pricing assumptions (Option C)C.2.1.1 General

C.2.1.1.1 The Consultant is paid under Option C (Target contract) for the services. He is paid on a monthly basis his Time Charges (sum of the products for each of the staff rate multiplied by the time appropriate to that rate properly spent on work in the contract) and expenses provided for in the contract. He is also, after the Completion of the whole of the services, paid his share, if any, of the “gain” or pays the Employer his share, if any, of the “pain”, based on the difference between the total of Prices (lump sum prices for activities), adjusted in terms of the contract for compensation events, and his Time Charges and the share percentages contained in the Contract Data: Part 1 – Data provided by the Employer.

C.2.1.1.2 The cost to the Consultant to Provide the Service is included in, or spread across, the Prices for all activities. There is no adjustment to the lump sum Activity Schedule price if the amount, or quantity, of work within that activity later turns out to be different to that which the Consultant estimated at the time that the total of Prices are accepted by the Employer. The only basis for a change to the Prices is as a result of a compensation event (See Clause 60.1).

C.2.1.1.4 If the Consultant has decided not to identify or to price a particular activity, it will be assumed that Consultant has included the cost to the Consultant of doing the work within the other Prices in order to fulfil the obligation to complete the service for the tendered total of the Prices.

C.2.1.1.5 The Consultant does not have to allow in his Prices for matters that may arise as a result of a

Use for Option C. Delete row if Options A, E or G are used


compensation event.

C.2.1.1.7 The Employer has identified the items that are to be priced in the Activity Schedule. Delete row if Consultant identifies items

C.2.1.1.7 The Consultant is required to identify the items that are to be priced in the Activity Schedule. Delete row if Employer identifies items. Note the Services Information needs to be capable of being priced as a lump sum where this option is used. If not, tenders received may not be comparable

C.2.1.1.8 The Prices in the Activity Schedule exclude VAT

C2.1 Pricing assumptions (Option E) Use for Option E. Delete row if Options A, C or G are used

C.2.1.1 General

The Consultant is paid under Option E (Time Based Contract) i.e. Time Charges (sum of the products for each of the staff rates multiplied by the time appropriate to that rate properly spent on work in the contract) and expenses provided for in the contract at each assessment interval.

C2.1 Pricing assumptions (Option G)C.2.1.1 General

C.2.1.1.1 The Consultant is paid under Option G (Term Contract) i.e. on a combination of Time Charges (sum of the products for each of the staff rate multiplied by the time appropriate to that rate properly spent on work in the contract) and a proportion of the lump sum price for each item on the Task Schedule in proportion to the work completed on that item.

C.2.1.1.2 Expenses as provided for in the contract are paid in addition to the total of the Time Charges and lump sum prices.

C.2.1.1.3 There is no adjustment to the lump sums for items in the Task Schedule if the amount, or quantity, of work within that activity later turns out to be different to that which the Consultant estimated at the time that the Task Schedule was accepted by the Employer. The only basis for a change to the lump sum prices is as a result of a compensation event (See Clause 60.1).

Use for Option G. Delete row if Options A, C or E are used

C.2.1.2 Staff rates

C.2.1.2.1 The staff rates are the prices charged for staff excluding VAT including:

a) all the costs to the Consultant including total annual cost of employment, overhead charges incurred

Include for all Options and amend / adjust as necessaryStaff rates can be established in one of three ways:

rates for named staff, rates for categories of staff or rates related to salaries paid to staff.


as part of normal business operations including the cost of management, as well as payments to administrative, clerical, IT support and secretarial staff used to support professional and technical staff in general and not on a specific project only;

b) the time expended in travelling to and from a site, meetings or any other activity associated with the provision of the service, except for travel to . . . . .or a place outside the ……..Municipal Area required by the Employer;

c) non-recoverable expenses;

d) all protective clothing and all standard equipment such as office furniture, copiers, plotters, computers and software used to perform the services; and

e) profit.

C.2.1.2.2 The total annual cost of employment is the total amount borne by the Consultant in respect of the employment of a staff member per year comprising basic salary and fringe benefits not reflected in the basic salary, including:

a) normal annual bonus,

b) consultant’s contribution to medical aid, unemployment insurance fund, pension or provident fund,

c) group life insurance premiums borne by the Consultant; and

d) all other benefits or allowances payable in terms of a letter of appointment excluding any share of profit and payment for overtime.

The rates can be expressed as a rate / our or can be calculated from a parameter e.g. 1) Cents per hour for every R100 total annual cost of

employment (e.g. 12c/hr / R100 on a total cost of employment or R 200 000 will translate into 12/100 x 200 000 / 100 = R240 per hour)

2) Factor times average monthly total cost of employment (e.g.1,3 on a total cost of employment or R 200 000 will translate into 1,3 x R200 000 / 12 = R21 666,67 per month

Rate adjustment for inflation, if necessary, can be based either on actual salary adjustments or by using Option X1: Price adjustment for inflation.

C.2.1.2.3 The staff rates for staff whose rate is calculated shall not exceed the maximum staff rate.. Delete row if fixed hourly rates are required. Use where fixed hourly rates are required for senior staff and rates per hour for salaried staff are calculated on the basis of cents per hour for every R100 total annual cost of employment

C.2.1.2.4 The staff rates exclude VAT.

C.2.1.3 Expenses

C.2.1.3.1 The expenses that may be paid to the Consultant are as stated in the Contract Data. All other cost to the Consultant associated with Providing the Services is included within the staff rates.

C.2.1.3.2 All air travel shall be in economy class on a scheduled airline. Delete rows for air travel, accommodation and hired car if not required.


C.2.1.3.3 Accommodation means a

a) a bed and breakfast; b) a guest house;c) self catering; ord) hotel having a star rating of 1, 2 or 3 as defined by the Tourism Grading Council of South Africa (see

www.tourismgrading.co.za).

Note: A lodge, country house or 4 star or higher star rated hotel is not accommodation. Any stay in such a facility cannot be claimed as an expense.

C.2.1.3.4 A hired car means a motor vehicle having an engine capacity of not more than 1800cc.

Note: A hired car having an engine capacity greater than 1800cc is not a hired car and cannot be claimed as an expense

Amend as necessary.


http://www.tourismgrading.co.za/

C2.2 Activity Schedule

ItemNo.

Description Price

Total of Prices in the Activity ScheduleVAT @ 14%Total of Prices including VAT carried forward to the Form of Offer and Acceptance

.Use for Option A or C. Delete rows where Options E or G apply

C2.2 Task Schedule Use for Option G. Delete where Options A, C or E apply or where all the work undertaken in terms of Option G (which makes provision for Task Orders ) is undertaken only on a Time Charge basis

Time Charges Subtotal Total

Item number

Description of time based item Initial forecast of Time Charge

Modify as necessary depending upon how the Task Schedule is to be priced.

1 R

2 R

3 R

Total forecast of Time Charges excluding VAT R

Lump sum prices for items associated with a Task

Item number

Description of lump sum item Number of

Lump sum

Total for item

1 R R

2 R R


3 R R

Total lump sum prices for items excluding VAT R

Total of the Prices for items excluding VAT R

VAT @ 14% R

Total of the Prices for items including VAT R

C2.3 Staff rates Use for all Options. Renumber as 2.2 if Option E is used or where there is no Task Schedule where Option G is used.

C2.4 Expenses Delete row if not applicable or insert data and renumber heading if applicable.Amend / adjust / complete as necessary e.g.

Cat-egory

Description Basis of expense, excluding VAT

Applicable parameter

1 Factor applied to costs for special equipment ...

Factor times cost

Factor = . . . . . .

2 Pick up vans and bakkies

Cost per km in Rands

R /km

3 Factor applied to costs for specialist studies.

Factor times cost

Factor = . . . . . . . .

Category Description Basis of expense, excluding VAT

Applicable parameter






C3: Scope of work Develop Scope of Work using guidance provided in ISO 10845-2 and NEC3 How to write the PSC Scope for Use with a Professional Services Contract

Contract 43 C3 Part C3: Scope of Work Scope of Work


c1.1 ecc3 offer & acceptance (c) - ioptions.co.za€¦ · web viewthe conditions of contract...

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