The South African Institution of Civil Engineering (SAICE), in partnership with the Construction Industry Development Board (CIDB), has formally launched the General Conditions of Contract 2025 (GCC 2025), marking the first major update to the standard form since 2015.

The revised document has been described as a “homegrown contract” designed to balance risk more equitably and to reflect the evolving needs of the construction industry.

Speaking at the launch, SAICE CEO Sekadi Phayane-Shakhane explains that the revision comes with a new understanding of how the industry operates. “It’s been about ten years since the contract was last updated. GCC 2015 was a well-understood contract, but practices and challenges have changed. GCC 2025 is about ensuring our industry has a document that is relevant, practical, and fair.”

SAICE President Friedrich Slabbert highlights the significance of the endorsement process.

“This was not a quick exercise. Drafts were reviewed, debated, and tested over several years before receiving official endorsement from the CIDB in June 2025. The robustness of the process means that the industry can have confidence in GCC 2025 as a contract that works for all parties.”

CIDB endorsement

CIDB CEO, Bongani Dladla, emphasises that GCC 2025 plays a crucial role in supporting infrastructure delivery.

“The CIDB’s endorsement followed extensive consultation with stakeholders and testing of the clauses against real-world challenges. GCC 2025 provides a solid foundation for the public and private sector to work together with greater certainty,” he noted.

The work behind the document

According to Norman Milne, a member of SAICE’s Contractual Affairs Subcommittee (CAS), the process of developing GCC 2025 was extensive and highly collaborative.

“The CAS committee is a small group of nine people – engineers, contractors, and lawyers – all with decades of experience. We championed different clauses, tested revisions through working groups, and debated every change thoroughly.”

The committee worked through ten iterations and five further revisions before a final draft was agreed upon. After circulation to stakeholders in 2023, the draft underwent further refinement before being submitted to the CIDB.

Milne adds, “We held weekly sessions, sometimes lasting hours, to work clause by clause. It was a rigorous process, but necessary. The final product is one we believe will serve the industry well for years to come.”

Some key changes

Several updates distinguish GCC 2025 from its predecessor:

• Gender-neutral language has been adopted throughout.
• A new clause requires advance warning between parties as a project management tool.
• More detailed requirements for programme preparation and updates have been included.
• Contractors now have clearer rights to suspend or terminate works for non-payment.
• Interest on late payments is set at the prescribed rate plus 3%.
• Failure by an employer’s agent to deliver determinations on time is now deemed a rejection, allowing disputes to move forward.
• Greater emphasis has been placed on amicable settlement and dispute boards to resolve conflicts early and cost-effectively.

For a full account of the changes SAICE recommends attending a training session to better understand the updates.

“Any contract is ultimately about the allocation of risk,” Milne notes.

“The South African construction industry faces unique risks. GCC 2025 provides a fair balance, and while not every issue can be solved within the contract, such as persistent late payment by employers, the new clauses create stronger protections and management tools.”

The launch of GCC 2025 comes at a time when South Africa is under pressure to deliver large-scale infrastructure. Stakeholders believe the contract will help to create a more stable and fair environment for both employers and contractors.