The Proposal Background A real estate consortium - "Trading for the Future" have identified the need for mix use buildings consisting of office and retail space in rural CBDs. The Executive Committee of the consortium have indicated at the board meeting that they want to enlarge their footprint in rural South Africa by providing opportunities for entrepreneurs to trade in the CBDs. This initiative is supported by the Department of Trade Industry (DTI), who also aim to promote the growth of businesses especially through public private partnerships. The Minister of Trade & Industry has indicated in a major parliamentary address the need to re-engineer trade in rural areas through the implementation of financial incentives such as tax reduction incentives, financial support and mentoring programs in entrepreneurship. The Department of Education will support the mentor program initiatives offered through Tertiary Educations. The Faculty of Education at the University of Pretoria has responded positively to these challenges and will be contributing towards the development of practical models to implement entrepreneurial mentorship programs. The above was defined as the "The Rural Trade Programme (RTP)" which will be rolled out nationally over the next five years. The University of Pretoria in collaboration with the Department of Education, the Department of Infrastructure Development (Department of Public Works), Department Trade Industry, the Provincial Governments and Local Municipalities have joined forces and are supported financially by Government Funding. The envisaged way in effecting the above, university students will be assigned to each project to assist the real estate consortium as part of their community engagement projects. The longitudinally of this programme makes it invaluable for university students in the sense that they are provided an opportunity to gain practical experience. They are not merely onlookers but become participating active team members. In this way students may become multi-skilled, creative, responsible, productive citizens and future leaders. Quantity Surveying-, Engineering-, Construction Management-, Architecture-, Landscape Architecture-, Interior Architecture-, Town & Regional-, Financial Management students will be earmarked by the various University Departments. The Rural Trade Programme objective The total number of ""Rural rading for the Future" buildings needs to be rolled out nationally over the next five years with an estimate of 10 buildings per province, resulting in 90 buildings nationwide. The objective of phase one is to develop the design framework and procurement of suitable land , followed by the construction of the buildings for the second phase and the allocation and mentoring of traders during the third phase. It is envisaged that each phase to be completed per year (in other words 3 years per building will be allocated inclusive of all 3 phases). The client's construction need for the building The objective of the project is to provide a green, self-sustaining high tech low maintenance structure. Furthermore, it was decided to make use of an innovative building method by using the latest alternative light steel construction and cladding methods. In addition the project should concentrate on energy and water saving concepts. All of these must be implemented in such a way that the building could be transformed to serve a different purpose with minimum structural changes, should the original objective of the consortium change. With reference to the concept of green structures as defined by Porter (2008), the design, done by the Architect and emphasized by the Project Manager, should consider environmental sustainability and operating efficiency at every possible opportunity.

Scenario

Due to the "Trading for the Future" project being constructed in phases over 3 years, it was decided to construct all the earthworks platforms during the first year. It is also decided to divide the project into two main contracts: one for the earthworks, and one for the super structure since it could provide the client with maneuvering room for sourcing and appointing the superstructure main contractor for another year. The finishing off of the light civil works such as the paving, fencing and water and sewerage connections will be done at the end of the project by a subcontractor appointed to the main building contractor. For the earthworks main contract, GCC 2015 is chosen and for the super structure building contract, JBCC 6.2 is selected. Question The site is handed over to the JBCC main contractor 4 months after the GCC contractor has handed over the earthworks portion to the client. Practical completion for the GCC contract was awarded. 6 months after completing the works to the foundations, a storm ravages the site. A portion of the earthworks at the northwest corner is washed away, leaving the foundations severely compromised. The architect, civil engineer and structural engineer all agree that for safety, the compromised foundation has to be demolished, the earthworks platform in that area re-instated and the foundation re-constructed. Analyse and explore this scenario from the viewpoint of the Civil Main Contractor, who performed these works GCC 2015:

1) Write down which contractual issues could arise from this situation.

2) Flowing from your observations in (1), which rules in GCC 2015 would be applicable to the client, Building Main Contractor and Civil Main Contractor.