Contractual agreements to use in sub-Saharan Africa projects

by Ofentse Sefolo
Contractual agreements to use in sub-Saharan Africa projects

There is substantial scope for contractors to use the South African produced Standard Form of Contract (SFC) for projects throughout the African continent. While The principle of an equitable distribution of project risks between the employer and the contractor as covered in the JBCC’s SFC applies outside local borders, but this may require more intensive control and management, says CEO of the JBCC, Uwe Putlitz.

“Most major South African contractors cannot survive on only local work and are already using JBCC contracts for projects throughout Africa, often working with South African developers and consultants, sometimes in conjunction with a local company in a joint venture,” says Uwe.

Regardless of the country of use, the principles of contracting are essentially the same. Depending on the nature and location of a project, however, the control and management by “remote control” may require additional collaboration agreements with local consultants and contractors. This means that the contract documentation may have to be more comprehensive to capture available product specifications, construction techniques, and local building and safety regulations.

“A point to consider is whether the building/construction project could be carried out in the ‘conventional manner’ or if it may be preferable to follow a ‘design and build’ option with a local contractor,” says Uwe.

“The maxim that a project is not complete until all relevant paper work has been done” is the same throughout Africa. This applies to as-built documentation, all product or service warranties, and operational information to use and maintain a building competently over its lifespan. Therefore it is important that such information is safely filed where it can easily be retrieved and passed on to successive owners,” adds Uwe.

For more information, contact the JBCC on Tel: +27 (11) 482 3102 or via www.jbcc.co.za.

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