Construction World September 2016

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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.

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.

CONSTRUCTION WORLD SEPTEMBER 2016