Building Services

A: Purchase of property

Depending on the choice of property, an agreement will be drafted specifically for the building of a house on the property. The Deed of Sale Contract will be drawn up between the Client and the Seller. Golden Mask Properties 24 will do the necessary and complete facilitation for this purchase. 

B: Building Contract

1. A Building Contract will be drawn up between the Developer and the Client. The essentials of the Contract are given below.

2. Preliminary plans (sketch plans) will be drawn up by the Architect on the requirements of the Client. The architect will make use of a questionnaire to guide the Client. The preliminary plans will show dimensioned basic elevations and sections. The spatial relationships and appearance of the unit will be available. This information will enable the Quantity Surveyor to produce a 10% accurate cost estimate of the entire project. It will also enable the Client to decide and make changes to the design of the Architect. After all the parties are satisfied, the information will be sufficient for the Client for the raising of finance to fund the project. Once the funding is secured, the;

· Architect will commence with detailed and construction drawings

· Quantity Surveyor will commence with a detailed schedule of quantities and a tender document for the purpose of the appointment of a builder for the project. 

3. A finishing schedule will be drawn up and discussed with Client for his approval. The purpose of the finishing schedule is to decide on all the finishing's of the unit beforehand.

4. The building contract sum will include VAT and allows for the cost of the building the unit according to the building contract. It includes professional fees, connection fees, commissions, but not financing cost related to the Client’s funding of the unit, i.e. bond registration costs and interim interest on progress draws from the bank loan during construction. An estimate can be calculated once the contractual and financing details of a transaction are known.

The building contract sum is fixed for a period of 90 days after which it will be escalating at a rate based on the BEI index. The Quantity Surveyor will allow for escalation in his estimate.

5. The building contract sum for the unit including all options and extras will be funded as follows:

An initial deposit of 10% of the building contract is required. This must be deposited in the trust account of the Attorney within 10 days after the signing of the building contract to secure the building of the unit.

The cash contribution by the Client will be secured by a bank guarantee before commencement of the building operations.

Loan funding from a financial institution will be secured by a bank guarantee before commencement of building operations. In addition to proceed from such a bank loan, the loan will be ceded to the Developer.

· Before the preliminary plan stage will commence, the Client must be prepared to stand in for the cancellation cost of the building contract should the Client fail to acquire the necessary funding within an agreed period. The cancellation cost will be for the development work of the professional team of the said stage and will be equal to approximately 0.5% (only direct cost of the team) of the estimated project cost.

6. Payment will be against progress in predefined stages against certification by the Quantity Surveyor and Architect that the work has been completed.

7. There will be a penalty for late completion. 

8. Inspections on the completed product will be held with the Client and a time will be given to the building contractor to make good. This will be over and above the inspections which will be held during the duration of the contract. After the signing of the completion certificate, a time of 7 days will be allowed after which time the Client must take occupation.

9. The guarantee for faulty workmanship and/or material will be for a period of three months after the completion certificate is signed.

C: Specifications 

Elements of the finishing schedule that must be agreed between the Developer and the Client are, amongst other things, summarized as follows: