Building Contract Types

Building Contract Types

Building contracts can be complex. Depending on the level of expertise, or the level of safeguards (like having a professional team in place), you are in for a rough trip or an easy ride. Well, a slightly easier ride…

In many ways choosing the ideal contract will depend on the size of the job. You don’t want to use a sledgehammer when a panel pin hammer is all you need or vice versa.

But first, let’s understand firstly what a contract is.

A contract is defined by one party providing a service or goods to another party, and in return receives compensation, usually in the form of money.

With any contract, there are flows of Obligations and Rights . When it comes to a contract to build a house, the employer has the Right to have the house delivered according to the plans and specifications. In return, he has an Obligation to pay. The building contractor conversely has an Obligation to deliver the house, and the Right to receive payment for it. Depending on which side of the fence you are, the Right or Obligation will vary.

The problem with building contracts is that the level of detail available, at the commencement of the work, can vary.

And the more uncertainty there is, the more risk a contractor must carry.

Lump Sum Contract

If you have completed house plans, a full set of construction drawings, and a proper specification (detailing HOW things should be done), then your Architect (acting as your agent) can look at the LUMP SUM CONTRACT. This is a fixed sum of money, available in predetermined draw-down stages, that will be paid in return for delivery of a house that is built in accordance with the design documents.

In most building projects, one meets unexpected costs along the way. These costs have to be negotiated, but on what basis? Ideally, one can insert a basic schedule of rates into the Lump Sum Contract, which is a good starting point for any extra cost negotiation to have a basis in fairness.

The problem of course arises when there is no base rate. The builder will want to try and capitalize off unexpected costs. Your architect should always chat to a friendly Quantity Surveyor to get a sense of reasonable costs.

Lump Sum with Bills

Most building contracts do not offer the luxury of having enough time to complete all the documentation before one is on site. So, a contract can start with some uncertainty. The best way to protect all parties is to opt for a LUMP SUM WITH BILLS OF QUANTITIES. Basically, a BOQ is a shopping list that lists the various components of the house – brickwork, plumbing, plaster, excavation, roof timbers, steelwork etc., generally split into what are known as Trades. In most cases, there will be a professional Quantity Surveyor in charge of this aspect.

The Quantity Surveyor will have priced the unknowns at what he assesses to be fair rates. At the time of tender, the Contractor fills in the amount for each item on the shopping list, tots it up, and that is his tender. Generally, if he’s cheapest, he gets the job. And any changes during the works are assessed against the figures he inserted for the rates at the time of tender.

At the end of the job, the QS assesses the extras and omissions, and arrives at a final payment figure.

In the building industry, and on most bigger jobs, this contract is very common.

Cost-Plus Contract

The previous two examples normally have the Contractor using the client’s capital throughout,  apart from carrying the costs of the first month or so. Bigger contracts cannot reasonably expect the contractor to carry the financing costs.

However on smaller contracts, with a Cost-Plus contract, the Contractor uses his own capital, completes the work at an agreed rate for Labour and Materials, adds an agreed profit and management rate to that, and generally gets paid once the work is complete.

It’s a simple mechanism for controlling simpler, shorter contracts, but for longer periods the burden of carrying the finance costs can be too much for a smaller contractor.

Labour-Only Contract

Often, for smaller contracts, the builder has little capital. So, as a labour-only contractor, the contractor essentially becomes an employee of the client. The client obtains all the materials, and pays the contractor and his staff on a daily labour rate. Time restraints are not the contractor’s concern – the job takes as long as it takes.

At the end of the job, the contractor gets no further reward, unless that is built in as part of an incentive.

The problem with this contract is it can give rise to inefficiencies, as everyone will try and stretch out the time of employment, so management controls need to be in place.

SO WHICH CONTRACT, AND WHICH DOCUMENT?

The size and sophistication of the project will guide the selection of which contract one should consider.

Parallel with all these options are various Industry accepted documents that control the legalities of each contract. In larger contracts, one will use the suite of documents accorded by e.g. the JBCC contract, alternatively others like the NEC or FIDIC suites.

In choosing the correct contract type, and an appropriate document for signing up an agreement, just remember that smaller contractors tend to be less sophisticated. Too heavy a legal document can stifle progress. At the end of the day, as the Client’s agent, the Architect’s job is to guide the successful delivery of the project, and to find the right balance between all parties so that those Rights and Obligations flow smoothly.

Ideally, the best contracts are Handshakes – Covid Restrictions aside – as they are underpinned by moral obligation. Next best is signing the contract, and it then stays in the bottom of the drawer.

But then again… it’s not a perfect world!

The team at Design Scape make it our mission to stay on top of the latest architectural and interior design trends, and provide our readers with relevant architectural information.

For more information about our innovative architectural services and on how we can assist you, get in touch with our team of professional architects and designers in Durban and Cape Town.

By David Marriott February 4, 2025
South Africa has a rich and diverse architectural heritage that spans centuries, showcasing influences from indigenous cultures, colonial powers, and contemporary design. The country's architecture reflects its complex history, cultural diversity, and evolving identity. From ancient structures to modern landmarks, South Africa’s architectural heritage offers a fascinating journey through time via its built environment. Here's an overview of the key architectural styles and important sites: 1. Indigenous Architecture Indigenous architecture in South Africa dates back thousands of years and is defined by the materials and techniques available in the environment. Various communities have distinct architectural traditions: ● Zulu: Traditional Zulu homes are amakhaya (circular huts) made of thatch, with walls constructed from mud, clay, and reeds. ● Khoi-San: The Khoi-San people lived in temporary shelters, often consisting of woven reed huts that were designed to be mobile. ● Xhosa: Traditional Xhosa homes are round, with thatched roofs and walls made from mud or clay. These structures were designed for functionality, reflecting a close relationship with nature and the surrounding landscape. 2. Colonial Architecture South Africa's colonial history, shaped by the Dutch, British, and French, left a deep imprint on its architectural landscape. Key styles include: ● Cape Dutch Architecture: Emerging during the 17th and 18th centuries, this iconic style features whitewashed walls, curved gables, thatched roofs, and timber windows. Notable examples include the Iziko South African Museum in Cape Town and Vergelegen Wine Estate in Stellenbosch. ● Georgian Architecture: Introduced during the British colonial period in the early 19th century, Georgian architecture is characterised by symmetry, brick facades, and sash windows. An example is the Old Government Building in Cape Town. ● Victorian Architecture: Victorian structures, popular in the late 19th century, often included ornate detailing, high ceilings, and decorative elements such as wrought-iron verandas. St. George's Cathedral in Cape Town is a fine example. 3. 20th Century Modernism and International Styles The 20th century brought modernist influences to South African architecture, especially during the interwar period. These designs embraced new materials and technologies, such as concrete and steel: ● Art Deco: This style is visible in some early 20th-century buildings, characterised by bold geometric patterns, sleek lines, and decorative motifs. ● Modernism: Post-World War II, modernist architecture prioritised simplicity and functionality. Concrete was used extensively, and building forms became more abstract. An example is the University of Cape Town’s architecture, with designs by architects like Sir Herbert Baker. ● Brutalism: This mid-20th-century style focused on raw concrete and geometric forms. A notable example is the Breezeblock Building in Johannesburg. 4. Apartheid and Post-Apartheid Architecture During the apartheid era, architecture played a significant role in social engineering, especially with the forced removals and segregated spaces for black and white populations. Post-apartheid architecture focuses on healing, inclusivity, and social justice. ● Apartheid Architecture: The urban design and architecture of the apartheid period included racially segregated cities, townships, and the construction of sprawling housing complexes for non-white populations. District Six in Cape Town is an example of an area where residents were forcibly removed under apartheid policies. ● Post-Apartheid Architecture: After 1994, architecture began promoting healing and inclusivity. Projects like Constitution Hill in Johannesburg, a former prison turned into a museum, reflect this shift toward national unity. 5. Notable Heritage Sites and Buildings South Africa is home to numerous buildings and sites of architectural significance, many of which are recognized as national heritage sites. Some of the most important include: ● Robben Island: A symbol of South Africa’s struggle against apartheid, Robben Island, where Nelson Mandela was imprisoned, is an essential landmark of both history and architecture. ● The Union Buildings (Pretoria): Designed by Sir Herbert Baker, the Union Buildings house the offices of the President of South Africa and are a cornerstone of the country's political and architectural heritage. ● Castle of Good Hope (Cape Town): Built by the Dutch in the 17th century, the Castle is the oldest surviving colonial building in South Africa and serves as a military museum. ● Stellenbosch Village: Known for its well-preserved Dutch colonial buildings, Stellenbosch is often regarded as the best-preserved village in South Africa in terms of architectural heritage. ● The Apartheid Museum (Johannesburg): This museum is housed in a striking contemporary building designed to represent the harsh and brutal reality of apartheid, using concrete and steel to evoke the time period's emotional weight. ● Soweto: Home to some of the most significant events in South Africa's history, Soweto is an area where traditional African housing is juxtaposed with modernist and late 20th-century designs. 6. Conservation Efforts South Africa has made significant efforts to conserve its architectural heritage. The National Heritage Resources Act (No. 25 of 1999) was established to protect the country’s built heritage, including both historical buildings and cultural landscapes. Many historic sites and buildings are protected as national heritage sites, and a number of organizations work to maintain and restore these structures. ● Heritage Protection: The South African Heritage Resources Agency (SAHRA) is the government body tasked with safeguarding the country's cultural and architectural heritage. ● Adaptive Reuse: Many old buildings have been repurposed for new uses while maintaining their historical integrity. For instance, the V&A Waterfront in Cape Town has transformed from a working harbour to a vibrant retail and tourist destination while preserving many of its historic buildings. 7. Key Architects and Influences ● Sir Herbert Baker: An English architect, Baker had a significant influence on South African architecture, particularly in designing government buildings, including the Union Buildings. ● Norman Eaton: A South African architect known for his modernist designs and contributions to post-apartheid architectural thinking. ● Hans Hallen: Known for his work on the apartheid-era buildings that reflect the policies and social dynamics of that time. Conclusion South Africa's architectural heritage is a powerful narrative of the country's history, from the indigenous people who built with local materials to the European settlers who left their mark through colonial designs. Today, the blend of old and new, alongside efforts to conserve and reinterpret the past, shapes South Africa's contemporary identity. Whether through the grandeur of colonial architecture or the profound symbols of resistance, South Africa’s buildings continue to tell the story of a nation evolving and embracing its multifaceted heritage.
By David Marriott October 17, 2024
Colour psychology plays a vital role in interior design, influencing our emotions, behaviours, and the overall ambience of a space. Designers carefully select colour palettes to evoke specific feelings and create environments that support the intended use of each room. Understanding how different colours impact perception allows interior designers in Cape Town to enhance the aesthetic and emotional experience for occupants. Let’s explore how various colours influence mood and behaviour, and how interior designers, including Cape Town's Design Scape Architects, use these principles to create thoughtful and harmonious spaces.
Who works with an architect
By David Marriott April 17, 2023
Overwhelmed by all the people you need to hire to work on your design project? Read our simple guide to help you understand who works with an architect.
By David Marriott April 13, 2023
Get expert advice on designing an airport terminal from the architects who designed Africa’s best airport, Cape Town International Airport.
By Fred Acurero April 13, 2023
Want to know how the commercial design process works in Cape Town? Read our 6 simple steps from experienced architects, so you’ll know what to expect.
By Design Scape Architects March 13, 2022
Anyone living in South Africa can confirm that the country’s climatic conditions usually range from temperate in the interior plateau, to Mediterranean in the southwestern corner. Naturally, we cannot forget the small area in the  northwest which boasts a desert climate.
By Design Scape Architects February 14, 2022
In our two previous blog installments, we have explored the rich yet often inequitable history of the architecture of Cape Town. However, our journey is not yet at an end.
By Design Scape Architects January 27, 2022
In the previous installment of this blog, we left off discussing the impact of Sir Herbert Baker’s building designs on the overall architectural identity of Cape Town in the early 20th century.
By Design Scape Architects December 8, 2021
Cape Town is truly one of the most eclectic cities in the world when it comes to architectural design. Along a single street, its inhabitants experience everything from traditional Dutch gables to striking art deco facades.
More Posts
Share by: