Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)

Notices

Best Practice Project Assessment Scheme: Standard for Contract Participation Goals for Targeting Enterprises and Labour through Construction Works Contracts

12. Sanctions
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In the event that the principal contractor fails to substantiate that any failure to achieve the contract participation goal was due to reasons beyond the contractor's control which may be acceptable to the employer, the sanctions provided for in the contract or order between the employer and the principal contractor shall apply.

 

Note: The contract establishes the sanctions that will apply. These are set out in a tender evaluation schedule, the scope of work or contract data. Sanctions where tender evaluation points are granted with respect to a tendered CPG or where a minimum CPG is specified are usually applied in the form of:

(a)financial penalties (low performance damages), typically formulated on the difference between the contracted CPG and the CPG achieved in the performance of the contract; and
(b)the issuing of completion certificates only after the certificates described in Section 9 are received.