INGENIEUR
to the Forms G1-G21, the PSP has to look to the
employer for help in sanctioning delinquent or
dilatory third parties so that the CCC procedure
is not derailed. Hence, although he is ultimately
directly liable to his employer, the scope of his
duty of care is considerably wider because he
carries out more duties and liabilities.
The PSP is liable to other interested parties:
Furthermore, as for the previous CFO regime, the
PSP is potentially liable to other interested parties
such as purchasers, lenders, etc for any breach
in his duties vis-à-vis the issue of the CCC. Here
again he can be subjected to claims under the tort
of negligence; a very real possibility in view of the
PSP undertaking self-certification. In the event
of either the non-issue or late issue of the CFO
under the previous procedure, aggrieved parties
rarely ever proceeded against the LA concerned
as the latter was protected by immunities granted
statutorily and under the relevant case law.
The PSP has no Immunity: However under the CCC
procedure, since the PSP has no such immunity,
many an aggrieved party could be tempted to
proceed against him either directly or as a joint
defendant with the developer or vendor under
the law of tort should he default in his prescribed
certification duties. It is even more likely when
the PSP is seen to have 'deep pockets' and/or is
adequately covered by a Professional Indemnity
Insurance Policy. The sum total of which would be
the opening up of a floodgate of cases much to
the detriment of the professionals, however more
to the benefit of long suffering aggrieved parties
such as purchasers.
INADEQUACIES OF THE CCC PROCEDURE
Although much hyped as the definitive solution to
the contemporary incompetent and unfavourable
CFO regime, the CCC system in its existing form,
nevertheless is far from perfect and suffers
from a wide range of shortcomings, fluctuating
from measly trivial deficiencies at one end of the
spectrum to very serious lacunae that may render
the procedure in practice a minefield of disputes
and claims.
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JUNE 2013
Inadequate Checks and Balances: The power
to issue CCC rests predominantly upon the PSP,
without an adequate mechanism for checks and
balances. The perception of the public is that the
PSP would act more in the interest of their clients,
who are the developers/employers, than that
of the purchasers and endusers. This, and the
emergence of case laws and rise in complaints
by the public pertaining to the abuse or alleged
abuse of the system and breaches by the PSP in
the issuance of a CCC has seriously dampened
the confidence of the purchasers and the public at
large in the CCC system.
Non-technical issues left unaddressed: The
CCC leaves the non-technical issues to be
resolved between the developer/vendor and the
LA concerned or through any other alternate
mechanism to be worked out between the parties.
It effectively means that after the issuance of a
CCC, local authorities cannot ensure that the PSP
meets his obligations vis-à-vis the relevant non-
technical issues.
No quality control mechanisms: The CCC
regime does not preclude the issuance of a
certificate on the grounds of quality nor does
it provide a forum to do so. Such matters will
have to be taken up as a cause of action in a
breach of contract or tort of negligence through
arbitration or litigation.
Lack of flexibilit y in implementation:
Construction projects usually spread over a long
period of time and may witness a change in
circumstances from the initial project approval to
ultimate realisation calling for a review of technical
and non-technical conditions. The PSP has no
such powers, for non-technical conditions the
local authorities still retain some residual power
but their ambit remains ambiguous.
Consultants’ site supervisors are not included
in the CCC procedure: the consultant’s site
supervisor is precluded from the matrix of
responsibility under the CCC regime. The site
supervisors play a crucial role during the execution
and construction stage of a building and are the
real 'eyes and ears' of the respective consultants.
The very essence of the CCC which is to make all