9
CONSTRUCTION WORLD
SEPTEMBER
2016
from the JBCC in Johannesburg at ‘wholesale price’ and sell same at a
markup. JBCC publications may also be purchased in electronic format
by following the link on the JBCC website – allowing users to complete
contract specific information without changing the contract text.
Are JBCC contractual documents used elsewhere in
Africa?
JBCC documents are used throughout Africa, mostly in the old
‘Commonwealth’ – countries who speak English, and to a lesser extent
in Francophone Africa – mostly where South African developers,
consultants and/or contractors are involved.
Do all our national, provincial authorities and
municipalities use your documents?
Organs of State (OoS) generally use JBCC documents for building work.
JBCC does not publish an agreement for civil or engineering works. OoS
use one of the other CIDB approved agreements for engineering work.
Do our courts refer to your documents in reaching
verdicts?
JBCC agreements form a binding contract between the parties. Where
serious disputes have arisen some have been settled successfully in
South African Courts. There have been no instances where the JBCC
agreement or the wording was the cause of a dispute.
What are your biggest problems when it comes to
building contracts?
Often employers make changes that are unfair on contractors, and
contractors imposing totally unfair performance and payment condi-
tions on subcontractors. At JBCC training seminars we concentrate on
dispute avoidance, and the unintended consequences of changes. Such
problems can in almost every instance be avoided by following the
provisions in the contract.
Do you get a lot of approaches about what are seen
as breaches of contracts?
The JBCC offers a free ‘frequently asked questions’ service where
users can email the JBCC for guidance but we do not get involved in
individual disputes.
Do disputes tend to crop up in some sectors of the
industry more than others?
Simplistically, if both parties and the principal agent followed the
content of the clauses within the stipulated time limits, there would be
no disputes.
Contract administration is a time-consuming activity requiring
compliance with statutory and contractual provisions: inspections
on site, keeping records, issuing instructions and various certificates,
keeping to dates stipulated in the contract, and making payments by
the contractual dates.
Poor performance by subcontractors, not progressing in terms
of the programme, and poor finishes are frequent problems causing
disagreements about payments and delays. Late and partial payments
are also a significant problem.
How many training seminars do you present?
The JBCC presents 10 to 12 seminars throughout the country – twice a
year in Cape Town, Durban and Johannesburg and once a year in the
smaller centres to about 1 000 person per annum. JBCC also presents
in-house seminars to 16 or more persons tailoring the content to
suit the user for example focusing on clauses relevant to contractors/
subcontractors or developers.
In your direct dealings with the delegates to the
seminars, what strikes you the most?
Bascially it all comes to ‘what are my rights?’ – and how to deal with
claims for additional time and money.