Construction World June 2017

MARKETPLACE

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.

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. 

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

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

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CONSTRUCTION WORLD JUNE 2017