In the landscape of construction and contractual agreements, the DOW020B Fixed Construction Guarantee emerges as a pivotal document, underpinning the robust framework of the JBCC 2000 Principal Building Agreement, specifically the Edition 4.1 of March 2005. This document, serving as a direct communication to the KwaZulu-Natal Department of Public Works, delineates the obligatory assurances provided by a guarantor—representing an assurance entity—to ensure the due fulfillment of contractual obligations by a contractor towards an employer. The commitment is quantified as a financial guarantee, pegged at 5% of the contract sum, exclusive of VAT, safeguarding the employer against potential contractual non-fulfillment. The form is stringent in its renunciation of traditional legal defenses which might otherwise be invoked to resist the enforcement of the guarantee, thus buttressing the employer's position. It further outlines the conditions under which the guarantee can be executed, the rights reserved by the employer to modify contractor agreements without impacting the guarantee, and the eventual settlement between the guarantor and the employer post-fulfillment of contractual terms. Notably, the document emphasizes its non-negotiable, non-transferable nature and establishes a clear process for its conclusion, underscoring the legal and procedural preciseness pivotal to formal construction agreements. Such documents play an essential role in maintaining the integrity and accountability of construction projects, ensuring that all parties are adequately protected and obligations are clearly defined and upheld.
| Question | Answer |
|---|---|
| Form Name | Form Dow020B |
| Form Length | 2 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 30 sec |
| Other names | fixed construction guarantee, pecunia, aforegoing, duobus |
DOW020B
FIXED CONSTRUCTION GUARANTEE – JBCC 2000 PRINCIPAL BUILDING
AGREEMENT (Edition 4.1 of March 2005)
Regional Manager
KZN Department of Public Works Private Bag X________
_____________
________
Sir,
FIXED CONSTRUCTION GUARANTEE FOR THE EXECUTION OF CONTRACT IN TERMS OF JBCC
2000 PRINCIPAL BUILDING AGREEMENT (4.1 EDITION OF MARCH 2005)
1.With reference to the contract between ______________________________________________________
______________________________________________________________________________(hereinaft er referred to as the “contractor”) and the
Public Works, (hereinafter referred to as the “employer”), Contract/Tender No: ___________, for the
_____________________________________________________________________ (insert name of institution and description of service) (hereinafter referred to as the “contract”) in the amount of
R……………………………… (hereinafter referred as the contract sum),
I/We, _________________________________________________________________________________
In my/our capacity as __________________________________________________________ and hereby
representing ______________________________________________________ (hereinafter referred to as the “guarantor”) advise that the guarantor holds at the employer’s disposal the sum of R R……………………………… being 5% of the contract sum (excluding VAT), for the due fulfilment of the contract.
2.The guarantor hereby renounces the benefits of the exceptions non numerate pecunia; non causa debiti; excussionis et divisionis; and de duobus vel pluribus reis dependi which could be pleaded against the enforcement of this guarantee, with the meaning and effect whereof I/we declare myself/ourselves to be conversant, and undertake to pay the employer the amount guaranteed on receipt of a written demand from the employer to do so, and which demand the employer may make if the employer has a right of recovery against the contractor in terms of 33.0 of the contract.
3.Subject to the above, but without in any way detracting for the employer’s rights to adopt any of the procedures provided for in the contract, the said demand can be made by the employer at any stage prior to the expiry of this guarantee.
4.The amounts paid by the guarantor in terms of this guarantee may be retained by the employer on condition that upon the issue of the last final payment certificate, the employer shall account to the guarantor showing how this amount has been expended and refund any balance due to the guarantor.
5.The employer shall have the absolute right to arrange his affairs with the contractor in any manner which the employer deems fit and the guarantor shall not have the right to claim his release on account of any
conduct alleged to be prejudicial to the guarantor. Without derogating from the aforegoing, any compromise, extension of the construction period, indulgence, release or variation of the contractor’s obligation shall not affect the validity of this guarantee.
6.The guarantor reserves the right to withdraw from this guarantee at any time by depositing the guaranteed amount with the employer, whereupon the guarantor’s liability ceases.
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DOW020B
7.This undertaking is neither negotiable nor transferable, and
(a)must be surrendered to the guarantor at the time when the employer accounts to the guarantor in terms of clause 4 above, or
(b)shall lapse on the date of the last certificate of practical completion; and
(c)shall not be interpreted as extending the guarantor’s liability to anything more than the payment of the amount guaranteed.
SIGNED AT ______________________________ ON THIS _________________________________ DAY OF
____________________________________________ 200__
AS WITNESSES
1.____________________________________
2.____________________________________
_________________________________
By and on behalf of
__________________________________
__________________________________
__________________________________
(insert the name and physical address of the guarantor)
NAME: ___________________________________
CAPACITY: ________________________________
(duly authorised thereto by resolution attached marked Annexure A)
DATE: ____________________________________
A.No alterations and/or additions of the wording of this form will be accepted.
B.The physical address of the guarantor must be clearly indicated and will be regarded as the guarantor’s DOMICILIUM CITANDI ET EXECUTANDI, for all purposes arising from this guarantee.
C.This GUARANTEE must be returned to: ___________________________________________________
_________________________________________________________________________________________
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