Construction World September 2016

Protecting the RIGHTS of BUILDINGOPERATORS > MARKETPLACE The Joint Building Contracts Committee (JBCC) has become synonymous with the compilation of documents that protect the rights of all parties involved in building contracts. Here Uwe Putlitz, CEO of JBCC, tells Construction World more about the JBCC, its origins, operations – and challenges.

Uwe Putlitz, CEO of JBCC.

Who decides that it is time for a review of a document? Delegates from the constituents suggest to the committee as a whole that new editions or other documents are required by the industry. Are the contractual needs and input of the increasing number of small builders/sub- contractors now operating in SA catered for in your documents? The use of language and the style of writing in the 2014 edition of JBCC Agreements is considerably simpler compared to earlier editions. Future editions will include further improvements in choice of wording, with more sub-clauses instead of long clauses and also a simplification in the layout of the text. Are these smaller subcontractors – who mainly don’t have funds for legal action – more in danger of being ‘ripped off’ by other parties in a project? Some emerging contractors lack communication and administrative skills in addition to limited technical skills and use of labour-saving equipment. Subcontractors are often abused by main contractors – commonly by late, partial or no payments, and unfair imposition of penalties. Both categories of contractors often work without being appointed with recognised forms of contract. And even when they are properly appointed, they tend to only read the document when things have gone wrong. Is there sufficient awareness among these smaller companies about the need to protect their interests via your contract documentation? The potential audience dealing with contracts in the building industry is probably in excess of 100 000 persons … but many have very limited knowledge of any of the contracts in common use or procedures to be followed. How many JBCC documents have been produced since JBCC was founded? Six editions of the building contract have been published since 1991 with supporting documentation in the form of guides, certificate forms, etc. The JBCC standard building agreements have been drafted to equitably share the risk between the employer and the contractor: the clauses in the contract provide a ‘checklist’ of the rights and obligations of each party. Can anyone obtain copies? Is there a charge involved? JBCC publications are sold in hard copy country-wide by the constitu- ents’ regional offices (called vendors). These vendors purchase stock

When was the Joint Building Contracts Committee established and what led to its establishment? The first ‘standard building contract’ was written in 1879 by the Royal Institute of British Architects (RIBA) and the Association of Master Builders in London. This document was revised in 1931 by the RIBA and published in SA by the Institute of SA Architects (ISAA) in the same year. In 1963, the RIBA substantially revised the document in conjunction with others under the umbrella of the ‘Joint Contracts Tribunal’ which continues to publish contract documents in England. In 1981, South Africa followed the trend in England under the banner of the Joint Study Committee with the ISAA (now SAIA) inviting other role players to join the committee which was replaced by the Joint Building Contracts Committee in 1984. The JBCC was registered as non-profit company in 1997 with its own office and permanent staff. Who serves on the JBCC now? The current constituents are the Association of Construction Project Managers, Association of SA Quantity Surveyors, Consulting Engineers South Africa, Master Builders South Africa, Institute of Landscape Archi- tecture in SA, SA Black Technical + Allied Trades Association, SA Insti- tute of Architects, SA Property Owners Association, and the Specialist Engineering Contracts Committee. How regularly do you meet? The Technical Committee generally meets monthly to deliberate the content of JBCC publications and future editions. The Board meets twice a year, and the Executive Committee, four times a year. Is it sometimes difficult to reach consensus? The various committees seek to reach consensus on all decisions – but it’s not always easy.

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CONSTRUCTION WORLD SEPTEMBER 2016