Appendix C : Model Memorandum of Understanding

Memorandum of Understanding (MOU)

Between

___________ (the Employer)

and

___________ (the Community Project Committee)

for

___________ (the Project)

Date:                                  

Update definitions

Check that all are used

Agreement:

means this Agreement, including any Annexures attached hereto.

Employer:

means the [insert name of employer].

Contractor:

means the principal contractor that will be appointed to undertake the construction works project.

contract amount:

the financial value of the contract at the time of the award of the contract, exclusive of all allowances and any value added tax or sales tax which the law requires the employer to pay to the principal contractor.

Community Project Committee (CPC):

the appointed representatives of the affected communities, including Ward Councillors.

contract participation goal (CPG):

mediation:

a process where a neutral third party assists disputing parties in resolving conflict.

Parties:

means the [insert name of employer] and the Community Project Committee.

practical completion certificate:

a certificate issued in terms of a contract by the employer, signifying that the whole of the construction works have reached a state of readiness for occupation or use for the purposes intended, although some minor work may be outstanding.

project:

means the [insert name of construction works project].

signature date:

means when the last signing party has signed the agreement.

targeted enterprise:

a sole trader, partnership or legal entity which is

targeted labour:

individuals who

targeted manufacturer:

targeted enterprise that operates or maintains a factory or establishment that produces on its premises materials or goods required by the contractor for the performance of the contract.

targeted supplier:

targeted enterprise that

Note: Adapted from SANS 10845-7:2015, definition 2.14

targeting strategy:

an approach which is pursued to make a contract participation goal an obligation of contract.

C2.        Background

The [insert name of employer] aims to enter into a contract with a cidb registered contractor for the construction of the [insert name of construction works project], which will be constructed in the following municipality/municipalities [delete which is not applicable]:

The construction will take place within the following Wards:

The construction works will target the use of local enterprises and local labour.

C3.        Objectives of this Agreement

The objectives of this Agreement are to obtain agreement with the Community Project Committee, representing the affected communities:

C4.        Roles and Responsibilities

C4.3        Agreement:

C5.        Deliverables and Timeframes

This Agreement will come into effect on the date of signing of this agreement, and shall remain in effect until issuing of a practical completion certificate.

C6.        Sole Agreement

This Agreement constitutes the sole record of understanding between the Parties with respect to the subject matter and supersedes any previous agreement between parties.

Signatures

Annex 1: Community Agreement