The Contractor Flashcards
Unit 11
Define Contractor
A person or company that undertakes the task of completing a project in accordance to tender on a client’s behalf.
Main Contractor Roles
- Complete works by a specific date
- Comply with staturotry requirements and stick to the contract
- Stick to the contract’s specifications and comply with any other obligations related to it
Main Contractor
Receives instructions from Principal Agents
- Cormercial economic entity
- Profit driven
- Can make use of sub-contractors to complete the project
Main Contractor Other Details
- May make use of personnel on site eg: site agent, foreman
- The Personnel is the bridge of communication between the works on site and the main contractor
Define Subcontractor
A firm or individual that specialises in a certain area of work, agreeing to do specialised work on site
Selected Subcontractor
- Selected when problems arise from the nominated contractor
- The main contractor and professional team agree on a list of suitable subcontractors
- Tenders are received by the main contractors
- The contractor is selectec by the main contractor but cannot be claimed against for non-performance shoudl issues arise
Nominated Subcontractor
- Contractors nominated or chosen by the professional team
- Main contractor has to appoint the subcontractor and remains contractually responsible for their work on site
- Main contractor would have to give strong argument if they wish to reject the nominated contractor
- Their tenders are submitted to the professional team, not main contactor
- Counted as Provisional Sums in the BOQ
- Only some contracts allow the main contractor to make claims against the nominated subcontractor
Domestic Subcontractor
- Tenders are sent to the main contractor and professional team
- The subcontractor is appointed by the main contractor
- No formal contract is required between the main and sub-contractor
- Main contractor is still held responsible for the work of the domestic contractor completed on site
- Main contractor may have to provide details of the sub-contractor to the Principal Agent depending on their requirements
Registar of Contracts
- Managed and initiated by the e Construction Industry Development Board Act
- Mandatory for contractors seeking out to perticipate in public sector projects
- Registered companies are each assigned a unique CRS number
- 9 Total Grades
- The grading is valid for 3 years
- After 6 years, documents need to be resumbitted to prove the given grading is still valid
Registration Grading System
Grade = Less than or equal to
2 – R 650 000
3 – R 2 000 000
4 – R 4 000 000
5 – R 6 500 000
6 – R 13 000 000
7 – R 40 000 000
8 – R 130 000 000
9 – No limit
Potentially Emerging Contractors
- PE Contractors may be awarded contracts one level above their grade
- As long as client is satisfied that the contractor has the potential to develop and qualify to be registered in higher grade
- Client ensures that financial management or other support is provided to enable the
contractor to successfully complete the contract
Class of works (1-10)
CODES
GB – General Building
CE – Civil Engineering
EB – Electrical Engineering Building
EP – Electrical Engineering Infrastructure
ME – Mechanical Engineering
SB – Asphalt works (supply and lay)
SC – Building excavations, shaft sinking, lateral earth support
SD – Corrosion protection
SE – Demolition and blasting
SF – Fire prevention and protection systems
Class of Works (10-20)
SG – Glazing and shop fronts
SH – Landscaping and horticulture
SI – Lifts, escalators and travellators
SJ – Piling and specialized foundations
SK – Road markings and signage
SL – Structural steelwork fabrication and erection
SM – Timber buildings and structures
SN – Waterproofing of basements, roofs and walls using specialist systems
SO – Water supply and drainage
SQ – Steel security fencing/precast concrete
Class of Works Determination
Measured by calculating:
* Financial capability (Turnover of last 2 years)
* Works Capability
Works Capability
- Largest contract completed during the past 5 years in the applicable class
- Compliance with statutory requirements
- The number of qualified professionals employed by the contractor as required by the
grade
