4) "What's included in the Building Alteration- or Renovation Contract between Property Owner and Building Contractor" (Your FREE Building Alteration- or Renovation Contract between Property Owner and Building Contractor Contract Template!)

GENERAL TERMS AND CONDITIONS for the RENOVATION/ BUILDING ALTERATION Contract:In this agreement, unless inconsistent with or otherwise indicated by the context: "the/this agreement" means this building renovations contract to effect the specified alterations, the schedule of particulars, the general terms and conditions, the plan and specifications; "occupation date" means the date on which occupation of the dwelling or part thereof shall be given to and taken by the Owner; "plans and specifications" mean the plans and specifications of the renovations/ alterations to be effected to the specified dwelling in accordance with the Design Manual and Guidelines and drawn by one of the panel of Architects, a copy of which remains filed in the offices of the Contractor; "the works" means the building works to be executed by the Building Contractor to effect the renovations or alterations on the property in accordance with the provisions of this agreement.

CONTRACT DISPUTES:

- A dispute between the parties relating to any matter arising out of this agreement or the interpretation thereof, may be referred to arbitration by either of the parties by way of a notice to the other party in which notice particulars of the dispute are set out;

- When arbitration proceedings are held it shall not be necessary to observe or carry out the usual formalities of procedure;

- Arbitration shall be held immediately and with a view to it being completed within 21 (twenty one) calendar days after it is demanded;

- The Arbitrator for such arbitration proceedings shall be a suitably qualified person agreed upon by both the parties, failing such agreement, nominated by the chair person for the time being of the Association of Arbitrators;

- The decision of the Arbitrator shall be final and binding on the parties who shall summarily carry out that decision and either of the parties shall be entitled to have the decision made an Order of the Court with competent jurisdiction;

- This arbitration clause, shall remain effective between the parties after this agreement has been terminated;

- No clause in this agreement which refers to arbitration shall mean or deem to mean or be interpreted to mean that either of the parties shall be precluded from obtaining interim relief on an urgent basis from a Court of competent jurisdiction pending the decision of the Arbitrator.

Describe special conditions not encapsulated in this contract:

- Describe additional work to be completed by the Contractor and what needs to be done, step by step. Leave nothing out and prevent misunderstandings!

- Who's preparing the site? e.g. tearing down old walls or removing old shingles

- What building materials can be salvaged for re-use especially in older houses? e.g. doors, bathroom fixtures, mouldings.

- Who'll be responsible for waste disposal? This includes removing to a landfill site, special treatment of classified or hazardous wastes like old lead paint.

- What structural details will be the responsibility of the Renovating Contractor? This may include framing, sheathing, insulation, sub-floors, ductwork, hook-up for plumbing and electrical services,

- What specific brand-name items must be purchased, in other words; no generic fireplaces, furnaces, windows, fixtures, siding or roof tiles. Refer to a specification list.

- What will be the size and location of the windows and floor coverings... refer to the building plans or purpose-drafted drawings.

- Specific instructions regarding finishing work (e.g. number of coats of paint & stain on windows). Some building materials require specific installation instructions to which the Renovator must adhere. This is to protect yourself from damage caused by the Contractor. For example, when installing airconditioning units care must be taken to properly seal pipes. Failure to do so by the Contractor will result in an inoperative air conditioner at the worst time!

RENOVATION CONTRACT INTERPRETATION:

- Describe the functions of the Building Contractor: The Contractor shall effect the alterations to the dwelling on the property for and on behalf of the Owner in a good and proper and workmanlike manner and fully in accordance with the plans and specifications as well as the timetable and payment schedule given.

- Describe what the Contractor shall provide in terms of labour and building materials necessary for the proper execution of the works.

- Describe the Completion date of the Renovations (Date of Completion): When is it anticipated that the alterations to the dwelling will be complete and ready for occupation by the date specified in the timetable and payment schedule as per Annexure B? Does the Contractor warrant completion on that date? WHat happens if the Contractor overruns the date of completion? What constitutes all reasonable costs incurred by the Owner because of the late delivery?

- When will occupation after completion of the alterations to the dwelling be given to and taken by the Owner? Is it on the date that the alterations of the dwelling is complete and ready for beneficial occupation? Will a certificate signed by the supervising architect or quantity surveyor contracted by the Owner certifying that the dwelling is complete and ready for beneficial occupation determine the occupation date?

- Shall the Contractor be responsible for paying any amount due or otherwise, to any regulatory authority in the building industry having jurisdiction, and of all applicable legislation?

- Shall the Contractor be responsible and accountable for any deviation from the plan, specifications and tolerances that are stipulated on the building plan?

- Shall the Contractor see to it that there is no overrun of the budgeted amount for the building works?

- Describe how the Contractor indemnifies the Owner against any liability, loss, claim or proceedings of whatever nature, whether arising under common law or by statute arising out of or in the course of or caused by the execution of the works unless due to any act or omission of the Owner or his employees or agents.

- Describe how the Contractor accepts risk: does the Renovations Contractor indemnify the Owner against any liability, loss, claim or proceeding whatsoever arising out of poor workmanship, non-compliance with the plan, specifications and implied tolerances, damage caused thereto and undertakes to insure against loss against all risks normally included in a "contractor's all risks policy"?

These clauses stipulate the obligations of the Building Contractor:

- What period must the Contractor from the occupation date, make good any material latent or patent defects, shrinkage or other faults in the alterations to the dwelling which became apparent and brought in writing to the notice of the Contractor during that period and which arise from defective materials, workmanship or design?

- What period must the Building Contractor from the occupation date, carry out such building or renovation repairs and/or make such replacements as may be necessary to eliminate any roof or other leakages which may become apparent and brought in writing to the notice of the Contractor during that period and which arise from defective materials, workmanship or design?

- What period must the Renovations Contractor from the occupation date carry out such work as may be necessary to rectify any major structural building defects in the dwelling caused by the non-compliance with NHBRC technical building contract requirements within the above period on condition that the above defects are brought in writing to the notice of the Contractor?

- What guarantees as may be received by the Contractor from the Manufacturers of any building materials and fitting installed in the top structure shall, to the extent that the Contractor is entitled to do so, be passed onto the Owner?

This section describes the contract sum, and to whom it should be paid to safeguard your money.

- Contract Sum amount will be invested on behalf of the Owner and the Owner hereby authorises the said trust to withdraw from such investment an amount equal to the amount specified on the progress payment certificate as well as the timetable and payment schedule given in Annexure B, as is issued monthly by the Architect and to pay such amount to the Contractor.

- When will contract payments, as set out from the date a certificate was issued and supplied by the Owner’s architect or quantity surveyor certifying that the work was duly executed up to the stage claimed for; be effected?

- What's the best method for secure and safe, reliable payment to the Renovations Contractor? Must payment referred to above be made in cash or by the provision of an acceptable bank cheque, free of exchange levy?

- What increases or deductions will be allowed on the Contract Sum unless so advised by the supervising architect or quantity surveyor and agreed to by and between the Owner and the Contractor in writing?

- What happens if the Owner is acting as a Trustee for a Company, Closed Corporation, a Trust or a Body Corporate (hereinafter referred to as a legal person) to be formed, when in the event of the said legal person not being formed and ratifying and adopting this Agreement within 30 (thirty) days after the date hereof, the person signing as Owner confirms that he shall become the Owner in his personal capacity hereunder and shall be bound by all terms and conditions of this Agreement?

- If the legal persona is formed and duly adopts and ratifies this Agreement as aforesaid, then the person signing as Owner, hereby binds himself as surety and co-principal debtor jointly and severally with the legal persona to the Contractor for the due fulfilment of all the terms and conditions of this Agreement with renunciation of the legal acceptors of excussion and division.

- If either party commits a breach of any of the provisions of this agreement and fails to remedy such breach within 7 (seven) days (or if the breach in question is not capable of being remedied within 7 (seven) days within such extended period as the defaulting party may prove to be reasonable in the circumstances) then the other party shall be entitled, without prejudice to any other rights which it may have at law or in terms hereof, to cancel this agreement and to claim such damages as it may have sustained from the defaulting party.

- The parties choose as their domicilium citandi et executandi the addresses set out above on page 1 of this agreement. No street address mentioned in this subclause shall be changed to a post office box or poste restante.

- Any notice given in terms of this agreement shall be in writing and shall be deemed to have been duly received by the addressee on the date of delivery by hand or fax or e-mail; and if posted by prepaid registered post be deemed to have been received by the addressee on the 5th (fifth) day following the date of such posting unless the contrary is proved;

- No addition to or variation, consensual cancellation or novation of this agreement and no waiver of any right arising from this agreement or its breach or termination shall be of any force or effect unless reduced to writing and signed by all the parties or their duly authorised representatives.

- No latitude, extension of time or other indulgence which may be given or allowed by any party to the other party in respect of the performance of any obligation hereunder, and no delay or forbearance in the enforcement of any right of any party arising from this agreement, and no single or partial exercise of any right by any party under this agreement, shall in any circumstance be construed to be an implied consent or election by such party or operate as a waiver or a novation of or otherwise affect any of the party's rights in terms of or arising from this agreement or estop or preclude any such party from enforcing at any time and without notice, strict and punctual compliance with each and every provision or term hereof.