Annexure A 1
ENTERED BY AND BETWEEN:
CANNISTRARO INVESTMENTS (PTY) LIMITED
(hereinafter referred to as the “Contractor”)
(hereinafter referred to as the “Employer”)
WHEREAS the Employer requires a house to be erected on the premises mentioned hereunder;
AND WHEREAS the Contractor renders their professional services, the parties hereby agrees as
1. UNDERTAKING TO BUILD
For the contract price as contained in paragraph 3, the Contractor undertakes to complete the
building in accordance with the building plans and specifics according to general approved
building conditions in terms of the rules of the “National Home Builders Association”.
The premises will be situated at
3. CONTRACT PRICE
3.1 The contract price will be R _______________________ (in words
_______________________________________________ Rand) payable as follows:
3.2 This agreement is subject to the suspensive condition that the Employer (or the estate agent
for and on behalf of the Employer) obtain an approved building loan by not later than
______________ by a registered bank of no less than R ____________________ (in words
___________________________________________ Rand), a bond to be registered over
the property with such interest rates and conditions as stipulated by the Bank who grants the
bond and on condition that the Employer’s spouse (or any of the directors and/or
shareholders and/or members, which ever the case might be) bind themselves as surety and
co-principal debtor jointly and severely with the Employer for the fulfillment of all the
Employer liabilities in terms of the loan.
3.3 An irrevocable guarantee’s acceptable to the contractor for an amount of
R _____________________ (in words ________________________________________
Rand ) shall be paid in cash free of exchange against registration of transfer. The employer
shall deliver such guarantee to the contractor’s conveyancers within 7 days after clause 3.2
4. SUSPENSIVE CONDITIONS
This Agreement is subject to the stand being registered in the name of the Employer.
5. TIME PERIOD
5.1 The estimate time of completion will be _________________ in accordance with the
building plan instructions. A certificate of occupancy will be handed after the full purchase
price is settled. If a temporary occupation certificate is issued to accommodate the employer,
it is without prejudice.
5.2 Should the building construction of any particular house not be completed, for any reason,
within the time period mentioned in 5.1, the Contractor shall not be held liable for any
interest or any other damages suffered by any of the Employer, any purchaser or occupier of
the particular house.
6. PLANS AND SPESIFICATIONS
6.1 The Employer agrees to the plans as drafted by the Contractors Architect and initialed by him
for identification purposes, forms part of the Building Contract, marked Annexure “B”.
6.2 The Contractor is compelled to complete the work according to the plans.
7. VARIATION OF PLANS AND SPESIFICATION
7.1 No variation shall be applicable unless confirmed in writing and signed by all the parties.
7.2 A Management Fee of 20% will be raised on all variations.
8. RIGHTS AND OBLIGATIONS OF CONTRACTOR
8.1 The contractor will supply all building material and implements on its own expense.
8.2 The contractor has the right to instruct sub-contractors to do the whole or complete part of
the work, the contractor being responsible for the proper fulfillment of such work and the
payment of such sub-contractors fees for work done.
8.3 Notwithstanding anything to the contrary contained herein, the Contractor shall have a right
of retention over the property and any construction and improvements on the property until
such time the contract price has been paid in full.
8.4 The contractor shall not be bounded by any representation and/or undertaking made by the
Employer or sub-contractor to do any work, or to supply building material for free or the
delivery thereof at a reduced price, unless such suggestions and/or undertaking has been put
in writing and signed by the Contractor.
No retention by the employer.
A Construction guarantee shall be issued, 3 months for patent defaults and 1 year for latent
The Contractor accepts no liability for any loss incurred by the Employer due to any cracks
in the construction, caused by vis major or any other reason for which the Contractor had no
The Contractor is liable to take out sufficient insurance coverage for the construction period
only for the erection of the building and as the erection progresses.
12. BREACH OF CONTRACT
12.1 Should the Employer fail to comply with any of the conditions or stipulations of this contract
within the specific time period contained in the building agreement and not respond on a
written notice within 10 (TEN) working days, the Contractor has the right to:
12.1.1 cancel the agreement by a written notice to the Employer and to claim for damages
incurred by the Contractor; or
12.1.2 claim immediate payment of the contract price and demand immediate compliance of all
the terms and conditions of this contract.
12.2 Should any legal actions arise from any of the stipulations in terms of this contract, the
parties agree that costs will be payable on an attorney and client scale.
The Contractor and Employer hereby consent to the jurisdiction of the Magistrates Court
having jurisdiction over its person in respect of all proceedings connected with this
Agreement, the breach thereof or relating to the property or any part thereof.
No amendment of this Agreement will be binding unless put in writing and signed by both
15. LAPSE OF CONDITIONS BY EMPLOYER
Notwithstanding any specific or silent condition of this agreement, any latitude or extension
of time which may be allowed by any of the parties, or the acceptance of any amount less
than the amount due in terms of this Agreement, or the failure to comply with any rights in
terms of this Agreement timeously, will not prejudice the rights of the other party in terms of
this agreement and shall not be construed as a notation of this Agreement or any part thereof.
All headings in the contract is merely for purposes of convenience and must not be taken into
account with the interpretation of this contract.
18. SPESIFICATIONS, PRIME COST ITEMS AND PROVISIONAL SUMS OF
The specifications, prime cost items and provisional sums for completion are attached hereto
and marked Annexure “A”, initialed for identification purposes.
19. CIVIL ENGINEER PROFESSIONAL INDEMNITY
In the event of failure by the contractor to execute the work in accordance with the
construction contract, resulting in damages being suffered by the employer, the employer
undertakes to exhaust all of its remedies against the contractor, being exercising any
contractual rights it may have against the consultant.
SIGNED AT THIS DAY OF 2005.
SIGNED AT THIS DAY OF 2005.