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ECA(SA) CONTRACTUAL COMMITTEE FIGHTS UNFAIR BUSINESS PRACTICES | ECASA
ECA(SA) CONTRACTUAL COMMITTEE FIGHTS UNFAIR BUSINESS PRACTICES By Lucas Bowles, Regional Director, ECA(SA) East/South Cape The ECA(SA)'s National Contractual Committee met on 22 November 2018 to discuss a number of issues, including performance guarantees and to consider the request from the Joint Building Contracts Committee (JBCC) that all its constituent members respond to proposals from its Drafting Panel. The proposals include the introduction of a new clause in the JBCC contract documents to provide for retention monies to be invested in an interest-bearing account administered by Federated Employers Mutual Trust (FEM), for deposit and release based on certificates issued by the principal agent. The perception, now firmly established in the minds of principal contractors, is that retention monies belong to them. As a result, specialist subcontractors have been prejudiced and deprived of millions due to this unfair business practice. The ECA (SA) is of the view that this amendment