Form Dow020B – Fill Out and Use This PDF

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 KwaZulu-Natal Provincial Administration, in its Department of

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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