The JBCC building contract in plain English

If you build or renovate with an architect involved, there is a good chance your contract will be a JBCC agreement. The documents are long and full of defined terms, which can be off-putting. This is a plain-English guide to what they are and what matters to you as the owner. It is not legal advice, and for a large project it is worth having the contract reviewed.

What is the JBCC?

The Joint Building Contracts Committee is a body made up of organisations from across the South African building industry, representing architects, quantity surveyors, engineers, contractors and employers. It publishes standard building contracts that are widely used and understood. Because the wording is standard and balanced between the parties, everyone knows where they stand.

Which agreement?

The two most relevant to homeowners are:

The Principal Building Agreement (PBA): for larger projects, typically new houses and major renovations, with a principal agent (usually the architect) administering the contract.
The Minor Works Agreement (MWA): a shorter, simpler agreement for smaller and less complex projects, such as alterations and additions.

Your architect or quantity surveyor will usually recommend which to use.

The key players

The employer: you, the owner.
The contractor: the builder.
The principal agent: the professional who administers the contract on your behalf, usually the architect. They issue instructions, certify payments and decide on extensions of time.

Terms that matter

Contract value and contract documents. The agreement sets out what is being built (drawings, specification, bills of quantities) and for how much. Anything not in the contract documents is extra.

Contract instructions and variations. Changes must be instructed in writing by the principal agent. This protects both sides: you know what you are paying for, and the builder knows what was asked.

Payment certificates. The builder is paid monthly, against work done, as certified by the principal agent. You do not pay on invoice alone.

Retention. A portion of each payment is held back until the work is complete and defects have been fixed. It gives you security that the builder will return to finish the snags.

Practical completion. The point at which the work is complete enough to use for its purpose, with only minor items outstanding. This triggers the release of part of the retention and the start of the defects period.

Defects liability period. A period after practical completion during which the builder must fix defects that appear. At the end, the final completion certificate is issued.

Extensions of time and penalties. The contract sets a completion date. The builder can claim more time for reasons beyond their control, such as exceptional rain or late instructions. If the builder is late for their own reasons, the contract can provide for penalties.

Guarantees and insurance. The builder may be required to provide a construction guarantee and must insure the works.

Why a standard contract is good for you

A recognised contract means disputes are less likely, and if they do happen, there is a clear process to resolve them. It also means your payments are linked to certified progress, not to the builder’s cash flow.

How we work

We regularly contract under the JBCC agreements and are comfortable working with architects and quantity surveyors as principal agents. On smaller projects without a principal agent, we use a clear written agreement with a scope, price, programme and payment schedule. If you have questions about the contract for your project, ask us.