TO : The Director

SSIPHESIHLE INVESTMENTS
557 Roman Street,
Bohlokong,
Bethlehem,
Free State,
9701

DATE : 16 September 2022

Dear Sir/Madam

SUBJECT: THE APPOINTMENT OF SUB-CONTRACTOR FOR THE CONSTRUCTION OF INTERNAL WATER

RETICULATION FOR BAKENPARK EXT 7 IN DILHABENG LOCAL MUNICIPALITY (BETHLEHEM), FREE
STATE

1. We are pleased to inform you that SSIPHESIHLE INVESTMENTS has been appointed as
a sub-contractor for the water reticulation in Ext 7.

2. GENERAL

This Subcontract shall be subject to the General Conditions of Contract

(Third Edition 2015) which shall take precedence over the Sub-Contractor’s Conditions of
tender. The conditions of contract and specifications applicable to the main will also apply
to the sub-contractor. The sub-contractor must satisfy himself / herself that he/her fully
understands the condition of contract before signing the sub-contractors agreement.

3. Conditions of Main Contract

The sub-contractor acknowledges that he has been given reasonable opportunity to study all
the provisions of the main contract between the main contractor and the Employer. The sub-
contractor shall be deemed to be fully informed regarding all the conditions of the main
contract

All the provisions of the main contract shall apply to this sub-contract and shall be binding
on the sub-contractor insofar as they relate and apply to the sub-contract works (or any
portion of the same) and are not unacceptable to or inconsistent with the express provisions
of this sub-contract.

4. Indemnified

With respect to the sub-contract works, the sub-contractor indemnifies the contractor against
all claims, demands, damages, costs and expenses arising out of, or in connection with, any
failure to perform such obligations or to fulfil such liabilities, including any claim, demands
or proceedings in respect of any injury to, or death of any person whomsoever or damage to
property arising out of or in the course of, the execution of the sub-contract works.

5. Insurance

Director: Ntokozo Mhlongo - Registration No.: 2014/17495/07 - Tax No.: 9325341189

VAT No.: 4800275424 - Tel: 051 430 0477 & 010 210 7059 – E-mail: ntokozo@mskconstructionworks.co.za
Address: 01 Long Street, Hilton, Bloemfontein, 9301
 The sub-contractor shall effect and keep in force during the contract period policies of
insurance in such form and for such amounts as shall be approved by the main contractor
against the sub-contractors legal liability with respect to:

 Common Law in respect of injuries to persons or damage to property arising out of

and/or in the course of the execution of the sub-contract works

 The main contractor shall, in accordance with the provisions of the principal
contract, for the benefit of himself / herself and the sub-contractor, at all material
times insure the works, including the sub-contract works and materials properly on
site for use in the works but excluding the sub-contractor’s plant, tools, equipment,
and other property to procure the insurance of the works as aforesaid by the
Employer and keep it or have it kept so insured.

6. Value of Sub-contract

The appointment is valued at R 2 602 258.68 (Two million Six hundred two thousand two
hundred fifty-eight and sixty-eight cents) for water reticulation and related works as per
BOQ submitted.

7. Monthly progress claims

Sub-contractor shall in accordance with the main contract submit a monthly progress
payments based on the certified works by the main contractor, Engineers and agreed value
of the Sub-contractor works executed and for material delivered on site.

The amount due to the sub-contractor, as certified in accordance with the main contract, less
the appropriate proportion of retention money and any discount as negotiated, shall be paid
to the sub-contractor within the specified period.

8. Counter Claims

The main contractor shall be entitled to set-off any amount due to the sub-contractor
resulting from counter claims against the sub-contractor in terms of this sub-contract

9. Termination of Main Contract

Should the main contract be terminated (Whether by the main contractor or by the Employer
and whether due to any default by the contractor or otherwise) therefore sub-contractor shall
also be terminated. The sub-contractor shall be entitled to payment by the main contractor
for the
Completed works at the time of termination of the main contract.

Director: Ntokozo Mhlongo - Registration No.: 2014/17495/07 - Tax No.: 9325341189

VAT No.: 4800275424 - Tel: 051 430 0477 & 010 210 7059 – E-mail: ntokozo@mskconstructionworks.co.za
Address: 01 Long Street, Hilton, Bloemfontein, 9301
10. Non-Performance

If the Sub-contractor is in breach of his/her obligations in terms of this sub-contract and fails
to remedy the situation within 10 workings days after written notices from the main
contractor, or if he/her commits any act of insolvency, or if any of his assets are attached
pursuant to a warrant of execution, the main contractor shall be entitled, without prejudice,
to use any other remedy he may have, to forthwith terminate the employment of the sub-
contractor and recover from him any damages, loss or expense incurred by the main
contractor in completing the sub-contract ’s works.

The main contractor shall be entitled to retain and use materials and any other property of
the sub-contractor on the site, until the sub-contract’s works has been duly completed.

11. Additional works

No work will commence without written instruction from the main contractor. Works done
by the sub-contractor on the instruction (verbal or written) by the Engineer or his
Representative, will not be paid for by the main contractor.

12. Engineer and Engineers Representative

Sub-Contractor is not allowed to discuss rates, quantities or conditions of sub-contractor

with the Engineer and/or the Engineers Representatives. Technical discussions with the
Engineer and his/ her Representatives will be allowed provided that the main contractor is
present.

13. Quantities

All quantities will measured based on the BOQ submitted and the instruction by the main-
Contractor.

14. Materials and Plants

Sub-Contractor will be required to Supply, lay, bedding and testing of uPVC pressure pipes,
(conforming with SANS966-11976 specification) in 6m lengths each pipe fitted at one end
with socket for mechanical jointing as per the specifications.

Sub-Contractor will be required to supply his/her own plants and tools to execution of the
works.

15. Payment

The main contractor will make payments to the sub-contractor after his invoice has been
paid by the employer. The payments will made after the main contractor has received an

Director: Ntokozo Mhlongo - Registration No.: 2014/17495/07 - Tax No.: 9325341189

VAT No.: 4800275424 - Tel: 051 430 0477 & 010 210 7059 – E-mail: ntokozo@mskconstructionworks.co.za
Address: 01 Long Street, Hilton, Bloemfontein, 9301
 invoice from the sub-contractor. Maximum of 30 working days (Thirty working days) to pay
the sub-contractors.

Sub-contractor will be required to register for VAT before the first payment as the amount is
above 1 (one) million rand.

16. Retention

Retention as per main contractor will apply to sub-contractor or else agreed upon. Retention
of 10% (ten percent) will be withheld until completion of the main contract. 5% (Five
percent) retention will be released after practical completion. The defects period is 12
(Twelve) months from the date of completion on this contact.

17. Labourers

Sub-contractor required to employ an agreed number of local labourers residing within the
ward that the project is located in. The local labour to be sourced through the ward
councillor and the appointed CLO. The sub-contract will be responsible for the payment
of his/her key personnel and local labours. MSK will pay local labour and deduct it
from the sub-contract invoice to avoid none payment for the local labours.

18. Occupational Health & Safety

Sub-contractor required to abide by all health and safety regulations throughout the duration
of your appointment. You are required to submit a Health and Safety file before the
commencement of work on site.

19. Acceptance

Sub-contractor required to accept this appointment in writing within seven (7) days of
receipt.

20. Construction programme

Sub-contractor required to commit to working in line with the main contractor’s

construction programme, should you significantly fall behind schedule, MSK Construction
may after giving reasonable warnings, and we will give parts, all your work to another sub-
contractor or the main contractor will take over works.

Hope you will find the above in order, we look forward to a healthy work relationship.

Director: Ntokozo Mhlongo - Registration No.: 2014/17495/07 - Tax No.: 9325341189

VAT No.: 4800275424 - Tel: 051 430 0477 & 010 210 7059 – E-mail: ntokozo@mskconstructionworks.co.za
Address: 01 Long Street, Hilton, Bloemfontein, 9301
Kind Regards

…………………………..
Mr Johnson Ravhura
Contract Manager
Email : Johnson@mskconstructionworks.co.za
Tel No. : 010 210 7059
Cell No. : 082 496 4956

ACCEPTANCE:

I, ……………………………………………………………… (Full Name & Surname),

ID No. ………………………………………………………… on the behalf of

………………………………………………………………………………..… (Subcontractor)

hereby ACCEPT/REJECT the appointment as a sub-contractor for the

SUBJECT: THE APPOINTMENT OF SUB-CONTRACTOR FOR THE CONSTRUCTION OF INTERNAL WATER

RETICULATION FOR BAKENPARK EXT 7 IN DILHABENG LOCAL MUNICIPALITY (BETHLEHEM), FREE
STATE

I commit to undertake implementation of scope of work in all areas of my appointment with due
skill, diligence, regularity and expedition.

Full Name & Surname : ………………………………………………………….

Designation : ……………………………………

Signature : ……………………………………

Director: Ntokozo Mhlongo - Registration No.: 2014/17495/07 - Tax No.: 9325341189

VAT No.: 4800275424 - Tel: 051 430 0477 & 010 210 7059 – E-mail: ntokozo@mskconstructionworks.co.za
Address: 01 Long Street, Hilton, Bloemfontein, 9301
Date : ……………………………………

Director: Ntokozo Mhlongo - Registration No.: 2014/17495/07 - Tax No.: 9325341189

VAT No.: 4800275424 - Tel: 051 430 0477 & 010 210 7059 – E-mail: ntokozo@mskconstructionworks.co.za
Address: 01 Long Street, Hilton, Bloemfontein, 9301