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CONSTRUCTION WORLD
JUNE
2017
8
MARKETPLACE
Uwe Putlitz, CEO of the JBCC, says in the
JBCC’s free ‘Frequently Asked Questions’
service to users of JBCC agreements, most
frequent queries and disputes relate to:
• Late changes to the specified works;
• Consequent revision of the construction
period;
• Partial or late payment to the contractor;
and,
• Termination of the contractor’s
appointment – when all else have failed.
“JBCC has found that a significant
number of queries relate to incomplete
or inadequate design documentation or
specifications issued late in terms of the
contractor’s programme. These issues
should have been dealt with speedily - and
at little cost – in the pre-contract phase
of a project while the employer was still
initiating a project,” Putlitz states.
He says essential questions to be asked
– and answered – right at the outset to
manage contractual risk include:
• When is the facility required? “This is to
ensure realistic expectations: invariably
employers and consultants believe the
inception, design, procurement and
execution of the works can be completed
in ridiculously short periods.”
• Are specialist design and execution skills
required, ranging from geotechnical
engineers, town planning, urban design,
acoustics, kitchen design, interiors, and
landscaping so that these disciplines
can be integrated timeously in the final
solution?
• Will the use of new materials and/or the
specification of untried construction
technologies be involved
• Who does the ‘design’ – will it be done
within the employer’s organisation, or by
professional consultants appointed by the
employer, or by the contractor in a ‘design
and build’ method or similar solution?
“Buildings have become more complex to
cater for more sophisticated technological
operating systems and to deal with
environmental performance criteria
during construction and during operation.
Generally, this requires a larger number
of skilled designers whose work must be
coordinated and integrated before the
procurement documentation is issued and
contractors are appointed. Quality design
takes time. Such professional consultants
must be fairly rewarded for their skills and
the professional risks they assume on
behalf of their clients.
“Failure to respect the design process in
terms of the time and the skills required –
and payment for appropriate professional
fees – may result in the late issue of
incomplete construction information to
the contractor who may consequently
be entitled to a revision of the date for
practical completion, and possibly also
additional costs. And delays in completion,
mean delays in tenant income for the client.
“Then will follow the search in the
building contract agreement for a clause to
blame someone who can be made to pay
for the expense and loss incurred. If the
professional designers are singled out for
blame – should their professional indemnity
insurance compensate the client for
expense and/or loss incurred? Remember,
the more avoidable claims are submitted to
the insurers, the higher the premiums will
be in future.”
Putlitz says the situation could get even
worse if the parties sought restitution by
resorting to legal action, calling for money
and time to resolve issues that should have
been dealt with in the project initiation and
design phases.
He adds that it must be remembered
that professional fees are not like a
manufactured product that can be
discounted provided the overhead costs
have been recovered once a new range
is introduced. Excessively discounted
professional fees also hamper the
advancement of skills and the updating
of computers and associated software
that are an integral part of the building
professional’s career.
“Thus potential delays as a result of
inadequate design solutions, incomplete
construction information, under-budgeted
obligations, poor contract management, and
efforts to have fees cut, must be eliminated
to achieve timeous project delivery, within a
realistic budget,” Putlitz added.
The dangers of poor
DESIGN
DOCUMENTATION
and
LATE CHANGES
Queries regarding incomplete or inadequate design documentation,
or specifications issued late during the construction phase, seem to
crop up more often than any other issues the Joint Building Contracts
Council (JBCC) has to face.