The changing landscape for civil engineering contracts:

moving on from SABS 1200

This article has been prepared by
the ICE-SA Committee under the
authorship of Ron Watermeyer, Mike
Lomas, Hylton MacDonald, Alain
Jacquet, Andy Griffiths, Andrew Baird
and Michael Cullen

INTRODUCTION
Dr Martin Barnes, the originator of the
NEC Engineering and Construction
Contract, in his Smeaton Lecture (1999),
pointed out that virtually no civil engineering was carried out in the UK after
the Romans left until the seventeenth
century; the two notable major works
being the Exeter Ship Canal (1567) and
the drainage of the Fens. This all changed
between the 1760s and the 1850s. John
Smeaton, who is often regarded as the
founder of civil engineering and whose
largest project was the Forth and Clyde
Canal linking the East side of Scotland
to the West, developed his approach to
managing works. In 1768 he set down his
management scheme for the construction
phase with detailed tables of responsibility. His team comprised the engineerin-chief, the resident engineer and the
surveyors for the various geographical
sections working under him, and contractors (as opposed to direct labour). This
20

January/February 2012 Civil Engineering

master-servant model has remained in

use for the majority of civil engineering
projects for more than two hundred years,
and is still used on projects managed in
the traditional way.
Sir Joseph Bazalgette, who was
responsible for constructing the major
sewer projects and the embankments
on the Thames in London, developed a
standard form of contract in the 1860s
which was adopted by the Metropolitan
Board of Works. This form of contract
remained as the principal model for contracts for more than a hundred years and
was the model for the rst edition of the
ICE contract published in 1945. The 1945
ICE form of contract in turn served as a
model for forms of contract in many parts
of the world, including South Africa, entrenching the master-servant relationship
into civil engineering practice.

THE 1970s APPROACH TO CIVIL

ENGINEERING CONTRACTS
Overview
Civil engineering works were delivered
during the 1970s using the traditional preplanned approach to delivery, which required that the design and specications
be adequately developed and approved by
clients before tenders were invited and
contractors appointed.

The 1970s approach to civil engineering contracts is set out in a number

of documents, all of which were published
during the 1970s and early 1980s, namely:
General Conditions of Contract for
Use in Connection with Works of
Civil Engineering Construction (Fifth
Edition) (GCC 1982)
South African Association of
Consulting Engineers Model Form 1
All Disciplines, Articles and Conditions
of Agreement
Civil Engineering Quantities (Third
Edition) (CEQ73)
SABS 1200, Standardised specication
for civil engineering construction
SABS 0120, Code of practice for use
with standardised specications for
civil engineering and contract documents
GCC 1982
This form of contract reected the
master-servant thinking of the day. For
example, the general obligations of the
Contractor were to execute, complete and
(where specied) maintain the Works in
strict accordance with the Contract and
to the satisfaction of the Engineer and
shall comply with and adhere strictly to
the Engineers instructions and directions on any matter (whether mentioned

in the Contract or not). Another example

of this philosophy may be found in the
dispute resolution provisions which
required disputes between the Employer
or the Engineer and the Contractor to be
referred to and settled in the rst instance
by the Engineer and thereafter through a
mediator.
Monthly payments were based on the
Engineers estimated value of the work,
measured in terms of the schedule of
quantities. The works were measured in
accordance with the procedures set forth
in the Standard System of Measurement
of Civil Engineering Quantities, except
where otherwise stated in the specications or the detailed descriptions of the
work items in the schedule of quantities.
SAACE Model Form 1
This Model Form of Agreement for engineering services established, amongst
other things, the Consulting Engineers
responsibilities to the client. This
Model Form also reflected the thinking
of the day the Consulting Engineer
shall exercise two distinct and separate
functions in terms of these Conditions.
He is the Clients agent employed to use
his skill and knowledge to do what the
Client himself chooses not to do, i.e.
report on, design and to administer the
construction of the Works. In terms of
the Contract between the Client and the
Contractor he is the Engineer who is to
act as an adjudicator and the limitations of his power in this respect are defined by the terms of the contract. There
is no contract between the Consulting
Engineer and the Contractor. The
Consulting Engineer is obliged to hold
the scales fairly between the Client
and the Contractor and to act in accordance with the ethics and general
practices of his profession.
CEQ73
CEQ73 states that The Schedule of
Quantities is a list of items giving the estimated quantities and brief descriptions
of the work to be performed and materials
to be provided under the Contract, the
quantities and the descriptions being derived from the drawings and specication
and space being provided for the insertion
of price rates against each item and the
extension and totalling of the prices.
Schedule of Quantities prepared in accordance with the CEQ73 were expected
to provide:

tenderers with adequate information regarding the extent of the work

required to enable them to accurately
and condently prepare tenders which
could then be readily compared with
other tenders, and
a sound basis for the valuation of work
carried out at any stage of a contract.
CEQ73 makes it clear that the Schedule
of Quantities should be prepared on the
understanding that, in the absence of
specic directions to the contrary, the
rates and prices that will be inserted will
be considered as being the full inclusive
rates and prices for the nished work
described under the respective items as
covering, not only all labour, materials,
temporary work, plant, on-cost items and
other overhead charges and prot, but also
the general liabilities, obligations and risk
arising out of the conditions of contract
and specication.
CEQ73 established units and methods
of measurement in Chapter VII under
the following headings: scope, general
principles, units of measurement, separate
items, descriptions, unit rates and general
remarks. The section unit rates itemised
what should be included in the unit rates,
i.e. it gave guidance on what the tenderer
should include in his tendered rates.
SABS 1200 Standardised Specifications
The preface to SABS 1200 states that the
prime purpose in the production of these
standardised specications was to arrive
at a set of standard and unambiguous
documents acceptable to employer,
engineering, and contractor bodies, and
thereby to save money through lower
contract prices and to reduce the number
of engineering hours spent in administering contracts by establishing, for all
classes of civil engineering construction,
practical standards of workmanship and
administrative control that would be
adequate but not excessive and with which
all parties would in due course become
familiar. Prior to the publication of SABS
1200, no standardised specications for
civil engineering works existed in South
Africa. Each client or rm of consultants
had their own bespoke set of specications and applied their interpretation of
the standard system of measurement for
civil engineering quantities in the form of
CEQ73.
Each part of SABS 1200 was drafted
around the standard set of headings
contained in SABS 0120-1. SABS 1200-A,

General, or SABS 1200-AA, General

(Small Works), were developed as supporting specications for all other parts
of SABS 1200. These parts of SABS 1200
establish the following general principles
which apply to all parts:
The rate or price tendered by the
Contractor for a scheduled item shall
be deemed to cover the Contractors
prot plus cost to him of all labour,
materials, plant, equipment and
facilities required by him to carry out
the operations or activities stated in
the relevant subclause of Clause 8 of the
applicable standardised specication,
in addition to the cost to the Contractor
of carrying out such ancillary and associated activities as the Contractor
deems necessary for the completion of
the Works in accordance with the said
specication, the conditions of contract
and the drawings.
The Contractors charges for completing
an item scheduled in the preliminary
and general section of the schedule shall
be interpreted to be his rate or price
to cover his direct cost plus overheads
and to include his prot and all costs
and expenses that he requires for the
item specied and for all general risks,
liabilities and obligations set forth or
implied in the documents on which the
tender is based.
Except where otherwise specied in
Clause 8.1 of a standard specication
or in the project specications or in
the preamble, all items in the schedule
shall be measured and shall cover the
operations as recommended in the
standard system of measurement of
civil engineering quantities for South
Africa and South West Africa under
the title Civil Engineering Quantities as
approved and recommended for general
use by the South African Institution of
Civil Engineers .......
The clauses on Measurement and Payment
are divided into Principles and Scheduled
Items. The scheduled items create standard
text which may be readily included in a
schedule of quantities. What is covered
in the rate or sum for a scheduled item is
specied in detail. Accordingly, any change
to what is usually included in a scheduled
item needs to be stated in the Project
Specications. This introduced uncertainties in the application of the measurement
system does one provide everything that
is necessary to achieve the nished (permanent) work or does one provide what is
Civil Engineering January/February 2012

21

The International Federation of

Consulting Engineers (FIDIC)
brought out a new family of
contracts in 1999. The role of
the Engineer in these forms
of contract was confined to
performing duties assigned to
him in terms of the contract,
and duties were placed on the
Contractor to promptly give
notice to the Engineer of specific
probable future events which
may adversely affect the work,
increase the contract price or
delay completion. The FIDIC
1999 contracts also signalled a
departure from the adversarial
relationships embedded in
the traditional master-servant
relationship model
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January/February 2012 Civil Engineering

specied for the item in clause 8 of SABS

1200? It also requires clause 8 of SABS 1200
to be read with the Project Specication.
SABS 1200 is based on the masterservant thinking of the day. The specications assign duties to the Engineer and
the Contractor. Terms such as in the
opinion of the Engineer, as the Engineer
may direct, approved by the Engineer,
the Engineer considers, obtain specic
instructions from the Engineer before
proceeding, the Engineer allows to be
incorporated, the Engineer is satised,
ordered by the Engineer and to the satisfaction of the Engineer are frequently
encountered in the standards. This introduces subjectivity and uncertainty as
to what the actual requirements are. How
can a Contractor price something for
which he is at the mercy of the Engineer?
SABS 1200 was also developed around
the design by employer strategy, i.e. a
contracting strategy whereby a contractor undertakes only construction
on the basis of full designs issued by the
employer. The specifying of the responsibilities of the engineer and contractor
not only locks the specications into
this contracting strategy, but also makes
subcontracting dicult, as the Engineer
is an agent of the Employer and not the
Contractor.
SABS 0120 Code of Practice
SABS 0120 provides guidance on the
compilation of contract documents where
use of the SABS 1200 specication is
made. This code of practice, which was
rst published in 1981, comprises ve
Parts, namely:
Part 1, Format and contents
Part 2, Project specication
Part 3, Guidance for design
Part 4, Typical schedule of quantities
Part 5, Contract administration
SABS 0120-1 covers the format and
contents of project specications, standardised specications and particular
specications which, together with
schedules of quantities, are required
in the preparation of contract documents. It requires that the headings in a
standardised or particular specication
be provided in a specic sequence, i.e.
Scope, Interpretation, Materials, Plant,
Construction, Tolerances, Testing and
Measurement, and Payment.
SABS 0120-1 also requires contract
documents to be developed using the following sequence:

Cover and introductory pages

Conditions of tender
Schedule of drawings
General conditions of contract
Special conditions of contract
Specications
Schedule of quantities
Data sheets (details of certain materials
which the contractor has to supply
under the contract, or of the types of
plant which he proposes to employ)
Tender
Appendix to tender
Bonds
SABS 0120-2 provides guidance on the
preparation of the two portions of a
project specication Portion 1 which
covers the description of the works and
includes general matters aecting the
project, and Portion 2 which covers variations and additions to the standardised
specications which form part of a
contract. SABS 0120-3 covers matters
which should be dealt with by the project
engineer or the senior design engineer,
i.e. aspects of design that were assumed
in the framing of the relevant SABS 1200
specications, and aspects of the design
which must be considered in the control
of work executed in terms of a relevant
SABS 1200 specication.
SABS 0120-4 covers typical schedules
of quantities relating to the work covered
by standardised specications and provides a uniform framework within which
a schedule of quantities may be developed.
This part of SABS 0120 requires the following wording to be included in the
preamble to a schedule of quantities:
Descriptions in the schedule of
quantities are abbreviated and
the schedule has been drawn up
generally in accordance with the
latest issue of Civil Engineering
Quantities. Should any requirement of the measurement and
payment clause of the applicable
standardised specification, or
the project specifications, or the
particular specification conflict
with the terms of the schedule or,
when relevant, Civil Engineering
Quantities, the requirements
of the standardised, project or
particular specification, as applicable shall prevail.

SABS 0120-5 covers recommendations

and suggestions intended to assist the

engineer and the contractor in executing

work covered by the standardised specications.

THE CHANGES BROUGHT INTO

CIVIL ENGINEERING CONTRACTS
DURING THE 1990s
GCC 1990
The sixth edition of the General
Conditions of Contract for Works of Civil
Engineering Construction was published
by SAICE in 1990. This document was
sponsored by the Civil Engineering
Advisory Council and prepared under the
auspices of SAICE, the SA Association
of Consulting Engineers (now CESA)
and SAFCEC (SA Federation of Civil
Engineering Contractors). GCC 1990
started to soften the master-servant relationship. The Engineers function was
described as being to administer the contract as agent of the Employer in accordance with the provisions of the Contract.
Whenever the Engineer intends, in terms
of the Contract, to exercise any discretion,
or make or issue any ruling, contract interpretation or price determination, he shall
rsts allow the Contractor a reasonable
opportunity of submitting to him representations relating to the matter concerned
and he shall decide thereon as agent of the
Employer but by the application of his own
independent judgement and professional
standards. It also changed the obligation
of the Contractor regarding the provision
of the works from in strict accordance
with the Contract and to the satisfaction of
the Engineer to as specied in or reasonably inferred from the Contract.
GCC 1990 made provision for the
design of the permanent works by the
Contractor, but retained monthly measurement by the Engineer based on a
schedule of quantities. It required that
the work be measured in accordance with
the methods and procedures described
in the contract, or failing which, in accordance with the standard systems of
measurement laid down in the SABS 1200
Standardised Specications.
Civil Engineering Quantities 1990
Civil Engineering Quantities 1990,
A Guide for Determining and Using
Quantities for Civil Engineering and
Construction Contracts, was published
in 1990 as a companion to SABS 1200,
SABS 0120-4 and GCC 1982. CEQ90
became necessary, as the largest portion
of CEQ73, namely Chapter VI (units

and methods of measurement), were

incorporated into SABS 1200 and needed
to be removed. The bulk of CEQ90 was
accordingly dedicated to the recommended method of booking dimensions
from drawings, taking o quantities and
listing the quantities in a formal schedule
of quantities that quanties the work to
be done for a civil engineering works contract. Accordingly, CEQ 1990 is a companion document to the standard system
of measurement embedded in Chapter8
of each part of SABS 1200 and cannot
stand as a standard system of measurement in its own right.
Procurement reform
The South African government embarked
on a procurement reform process during
1995. The Green Paper on Public Sector
Procurement Reform in South Africa
(1997) recognised that currently methods
of measurement are incorporated in civil
engineering construction standards and
this presents a barrier to the standardisation of specications. It proposed that
there should be complete separation in
contract documentation between conditions of tender, conditions of contract specications and terms of payment (including
methods of measurement).
The Recommendations on Renements
in Public Sector Procurement Policy,
Practices and Procedures in the
Construction Sector, made by Focus
Group 6 (an industry group of interested parties) to the Inter-ministerial
Task Team for Construction Industry
Development, conrmed this position in
2000 following an intense series of meetings with the teams secretariat There
must be a complete separation in such
documentation between conditions of
tender, conditions of contract and specications. Terms of payment must not be
included in the specications.
New international forms of contract
The New Engineering Contract (NEC)
was launched by the Institution of Civil
Engineers (ICE) in 1995. This innovative
form of contract was drafted on a relational contracting basis, based on the belief that collaborative working across the
entire supply chain optimises the likely
project outcomes when compared with a
typically fragmented and non-integrated
approach to designing and constructing
projects. The NEC3 contracts are accordingly designed to encourage collaboration

and teamwork rather than a confrontational approach to the management of a

contract. This changed the master-servant
relationship to a simple collaboration between two specialist contributors.
The International Federation of
Consulting Engineers (FIDIC) brought
out a new family of contracts in 1999. The
role of the Engineer in these forms of contract was conned to performing duties
assigned to him in terms of the contract,
and duties were placed on the Contractor
to promptly give notice to the Engineer
of specic probable future events which
may adversely aect the work, increase
the contract price or delay completion.
The FIDIC 1999 contracts also signalled
a departure from the adversarial relationships embedded in the traditional masterservant relationship model.
Both these families of contracts allowed the Contractor to assume design
responsibilities for the permanent work.
These forms of contract provided alternative pricing strategies to enable design
and construct, or develop and construct
contracting strategies to be implemented,
as a bill of quantities is not suitable for use
in such contracting arrangements.
Amendment to SABS 1200 and SABS 0120
Very few amendments of a very minor
nature were made to Parts D (earthworks), DA (earthworks small works), H
(structural steelwork) during 1990, whilst
Parts DK (gabions and pitching), M (roads
general), MFL (base light pavement structures) were either revised or published
during 1996.
No amendments during the 1990s
were made to the 1986 editions of the
supporting specications SABS 1200A
and SABS 1200AA, which apply to all
the other parts, despite the publication of
CEQ90. The master-servant relationship
embedded in GCC 1982 remained in the
SABS 1200 standards, as well as the assigning of responsibilities to the Engineer
and Contractor for a design by employer
contracting strategy.
Very few revisions were made to parts
of SABS 0120 during this period.

THE CHANGES BROUGHT INTO CIVIL

ENGINEERING CONTRACTS POST-2000
CIDB Standard for Uniformity in
Construction Procurement
The Construction Industry Development
Board, drawing upon the work of
the Inter-ministerial Task Team for
Civil Engineering January/February 2012

23

Construction Industry Development,

published the Standard for Uniformity in
Construction Procurement during 2004.
This standard conned the selection of a
form of contract for construction works
to the GCC and FIDIC, and JBCC and
NEC families of contracts. It also established a standard for the formatting and
compiling of procurement documents
which was more fully described in SANS
10403 (2003), Formatting and compilation
of construction procurement documents.
This standard required that component
documents be as follows:
Tendering procedures (Tender Notice and
Invitation to Tender and Tender Data)
Returnable Documents (List of Tender
Returnable Documents, Returnable
Schedules)
Contract (Agreements and Contract
Data, Pricing Data, Scope of Work and
Site Information)
The Pricing Data is broken down into
Pricing Assumptions and Pricing
Schedules / Activity Schedules / Bills of
Quantities. The scope of work is dened
as the document that species and describes the goods, services, or engineering
and construction works which are to be
provided, and any other requirements and
constraints relating to the manner in which
the contract work is to be performed.
Next generation of South African
National Standards
The SANS 2001 and SANS 1921 families
of standards were developed to replace
SABS 1200. All reference to the responsibilities of the Engineer and the Contractor
were removed from the text and no
measurement and payment items were
included. This enables these standards to
be used with any pricing or contracting
strategy at main or subcontract level, and
with any conditions of contract in an objective manner.
The SANS 2001 family of standards,
parts of which were published from 2005
onwards, provides technical descriptions
of the standard of materials and workmanship that will be used in the works
that are executed or in the performance
of the works when completed (or both).
These standards do not make reference
to the actions of those responsible for
executing the works or the parties to a
contract, i.e. to the constraints relating to
the manner in which contract work is to
be performed. All the standards relating
to structural materials (masonry, timber,
24

January/February 2012 Civil Engineering

concrete and steel), site clearance, general

earthworks and pipelines have been published. These standards incorporate new
standards that have been published since
SABS 1200 was developed, e.g. cement
and pipe standards. All that remains is the
conversion of the piling and roadworks
specications to the new format, and the
revision of these standards to reect current standards and practices.
SANS 1921, all six parts of which were
published in 2004, describe generic construction and management requirements
for engineering and construction works,
i.e. the constraints to providing the works.
Annex D of SANS 10403 provides
comprehensive guidance on the items
which should be addressed in the scope
of work. Parts of SANS 1921 and SANS
2001 enable a large portion of the scope of
work to be developed by reference to these
standards and the completion of specication data which make these generic specications contract-specic. Annex A of these
standards provide comprehensive guidance
on the preparation of specication data.

(excavation of trenches and temporary

earthworks) that needed to be addressed
to make CESMM3 suitable for use in
southern Africa. ICE granted permission
for the customisation of CESMM3.
Work on the CESMM3 was suspended due to delays in the publication of SANS 2001, as it was felt that
there needed to be a critical mass of
SANS 2001 standards available before
launching CESMM3. A southern African
version of CESMM3 was launched in
2011 following its nalisation by industry. Th is edition of CESMM3 aligns
with the terminology used in the CIDB
Standard for Uniformity in Construction
Procurement and may be used with any
form of contract in use in South Africa.
CESMM3 is based on the philosophy
that a Bill of Quantities is no more than a
price list for the permanent works. Items
should be described in sucient detail for
it to be possible to distinguish between the
dierent types of work and between work
of the same nature carried out in dierent
locations or in any other circumstances
which may give rise to dierent pricing
considerations. At the same time, all work
that is required should be covered in the
Bill of Quantities. CESMM3 provides all
the information relating to the measurement of items on two A4 pages which
face each other the three divisions for
breaking items down are shown on the
left-hand page, while the measurement
rules, denition rules, coverage rules and
additional description rules are located on
the right-hand page.

GCC 2004 and GCC 2010

In 2004, SAICE published the General
Conditions of Contract for Construction
Works which removed all reference to
SABS 1200 and simply stated that All
the work shall be measured in accordance with the provisions of the Pricing
Data. This approach has been retained
in the 2010 edition of this document. The
adjudicator role of the Engineer has been
retained, but the scope of matters being
referred to the Engineer for resolution
further diminishing in the 2010 edition.

THE FUTURE OF SABS 1200

CESMM3
Industry representatives met during
2008 to discuss the way forward regarding a standard system of measurement should SABS 1200 be withdrawn.
The Civil Engineering Standard Method
of Measurement published by the
Institution of Civil Engineers (ICE)
(London) (CESMM3) became a logical
choice as a base document for the successor to the current system of measurement embedded in the SABS 1200, as
it is a document founded on the same
thinking and philosophy as the system
that has evolved in South Africa and
is widely used in Africa. There were,
however, a number of issues relating to
terminology, references to BS standards and regional earthworks practices

The conversion of SABS 1200 to SANS

2001 and SANS 1921 has been a long
and frustrating process. All six parts
to SANS 1921 were published well
before the rst part of SANS 2001 was
published in 2007. Most of the pipeline
standards were stable and ready for
processing during the early half of 2008,
but were only nally published at the end
of 2010 with very minor adjustments.
The foreword to the SANS 2001-CC1
(2007), Concrete works (structural), which
was published in 2007, states that this
standard replaced and cancelled SABS
1200G, GA, GB, GE and GF. This caused
some confusion as the system of measurement was still embedded in SABS 1200, and
until such time that an alternative system
was in place, industry would have no access to these SABS standards. At the April

2009 meeting of the TC59 (SABS Technical

Committee 59 Construction Standards)
it was agreed that the SANS 1200 standards that are withdrawn will be re-published
as technical specications so that they will
still be available to the industry.
Issues were again raised during 2010
at a TC59 meeting. The TC59 agreed to
meet and discuss these issues in detail.
The SABS secretariat, however, decided
not to convene a meeting with industry
stakeholders and experts, but to rather
conduct a straw poll without consulting
TC59 on the matter or contextualising the
issues SABS is now proposing that we
continue to support, develop and maintain
the SANS 1200 series of Standards. These
would be developed in parallel with the
SANS 2001 docs, so that end users have
a choice of which to use. This was done
without considering what the new-look
SANS 1200 would look like and without
answering basic questions such as would
it continue with the master-servant approach, would it be suciently exible to
accommodate any contracting and pricing
strategy, would it be suitable for use in

subcontracts, how will the ever increasing

constraints imposed to delivering the
works be handled, will measurement and
payment clauses be separately published
in another document, will supporting
documentation be required, etc? What also
needs to be considered is SABSs capability
and capacity to undertake this work. It
is not a simple matter of updating a few
clauses, modifying a few references to
standards and changing SABS to SANS. A
fundamental overhaul is required.
It is clear that SABS 1200 has served
its purpose and run its course. One must
move on. The question is: Will industry
move on or resist change?

Editors Note
The future of SABS 1200 is obviously an
important debate in the civil engineering
industry. Opinions held by various protagonists vary widely and are strongly held.
If you would like to respond to the article
or express your views on the subject,
we would be happy to hear from you.
You may send your views to the editor
([email protected]).

Work on the CESMM3 was

suspended due to delays in
the publication of SANS 2001,
as it was felt that there needed
to be a critical mass of SANS
2001 standards available before
launching CESMM3. A southern
African version of CESMM3
was launched in 2011 following
its finalisation by industry. This
edition of CESMM3 aligns with
the terminology used in the
CIDB Standard for Uniformity in
Construction Procurement and
may be used with any form of
contract in use in South Africa
Civil Engineering January/February 2012

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