Chapter 1 - PBA

Question 1

Purpose of PBA

Answer 1

Publish in interest of standardization/ good practice with fairness and minimum of contractual risk.

Question 2

PBA

Answer 2

Principal Building Agreement

Question 3

Structure of PBA

Answer 3

Agreement clauses follow project execution sequence.
Setting out clear balanced procedures of rights & obligations.
Protect contractor/ sub-contractor/ employer.

Question 4

Agent

Answer 4

Entity appointed by employer to deal with specific aspects of works (QS, architect, eng)

Question 5

Principal agent

Answer 5

Entity appointed by employer with full authority to act in terms of this agreement on behalf of client (PM)

Question 6

Contract instructions

Answer 6

Written instructions issued by authority of principal agent to contractor.
Drawings.
May lead to adjustment in contract value & extension of contract period.

Question 7

Adjustment

Answer 7

Reduction in cost/ time. Where items from works were omitted.

Question 8

Contract documents

Answer 8

PBA
Contract drawings
BoQ
Other identified documents (client specific)

Question 9

What is executed by contractors?

Answer 9

Extent of work described in contract documents & instructions.

Question 10

Work & installation to be executed by who?

Answer 10

Direct contractors

Question 11

Guarantee for construction

Answer 11

Security obtained by contractor from institution approved by employer.

Question 12

Guarantee for payment

Answer 12

Security obtained by employer from institution approved by contractor.

Question 13

Latent defect

Answer 13

Defect that reasonable inspection of works by principal agent would not have revealed.

Question 14

Defect

Answer 14

Any aspect of material/ workmanship forming part of works that does not conform to contract document.

Question 15

Works

Answer 15

Extent of work to be executed by contractor described in contract document and instructions.

Question 16

Practical completion

Answer 16

Stage of completion as certified by principal agent where works/ section has been completed free from patent defects (other than minor defects) & can be used for intended purpose.

Question 17

Final completion

Answer 17

Stage of completion of works certified by principal agent as being free from defects.

Question 18

Program

Answer 18

Diagrammatic representation of planned execution of units of work/ activities indicating dates for commencement & completion prepared & maintained by contractor.