10 BUSINESS AND TRAINING
Procurement practices for the plumbing subcontractor
By Uwe Putlitz
Uwe Putlitz is a registered professional Architect and Construction Project Manager , a Fellow of the Royal Institute of Chartered Surveyors ( RICS ) and is a visiting lecturer at the School of Construction Economics and Management at the University of the Witwatersrand . Having recently retired as the Chief Executive Officer of the Joint Building Contracts Committee ( JBCC ) he specialises in the avoidance of construction disputes by way of lectures , technical articles dealing with aspects of contract administration for various industry publications arising from the use of Standard-form Contracts including the Federation Internationale des Ingenieurs-Conseils ( FIDIC ), the General Conditions of Contract ( GCC ), the JBCC or the New Engineering Contract ( NEC ) to find an acceptable settlement without resorting to legal processes , where possible . More info : info @ buildstrat . co . za
“ The subcontractor must maximise his / her position as an expert in the stipulated field …”
Contractual disputes that arise during or toward the end of a project often have their origin in the inception phase when the plumbing subcontractor is not involved .
From published regular surveys of the building and construction industries , most contractual disputes are about money due , more time to complete the works , or that the quality or performance of the finished product does not meet the expectations of the employer .
A plumbing subcontractor , and / or other specialist subcontractors , may be appointed during the design phase , usually as a ‘ design-supply and install ’ subcontractor .
The employer organisation may have procurement policy – or checklist – that must be followed . Typically , the first criteria of the procurement process would be to solicit bids from contractors who are able to handle a project of a given magnitude , possess the necessary expertise and would be able to meet a fixed completion date .
The employer organisation would also have to consider :
• How important is performance of the Works by a particular date ?
• Is certainty of the final cost more important than the lowest cost ?
• Where can the risk best be managed ?
• What is the total tolerable risk for contractors ?
• How important is cross contract co-ordination to achieve project objectives ?
Another important consideration is how bids are to be solicited – would this be from the market , or only from a selected group of deemed to be competent contractors ; or is the contract is to be negotiated with a single chosen contractor . For work of a specialised nature , the employer may appoint the specialist as a ‘ direct contractor instead of nominated , selected or even a domestic subcontractor and accept the associated performance risk .
If the employer is an Organ of State the published processes for open tenders must be followed , in accordance with the National Treasury Standard for Infrastructure Procurement and Delivery Management .
To invite bids , the employer and internal or independent professionals must prepare a performance specification
Pixabay
Generic image please
with reference to applicable local or international standards describing the intended final product .
The subcontractor should be ‘ appointed ’ as a nominated ‘ specialist ’ subcontractor by the employer as the principal contractor is less likely to have been appointed at this stage . While no privity of contract exists between the employer and the nominated subcontractor , the subcontractor has the advantage of direct contact with the employer through the employer ’ s professional team . The subcontractor must maximise his / her position as an expert in the stipulated field to develop the optimum design solution that is practical , cost effective , and low in maintenance , among other advantages .
As such design solution would have been evolved by involvement with the relevant stakeholders , there should be no debate when the project is implemented about the chosen design concept , product selection or quality and operational or maintenance specifications .
Early involvement of a specialist design contractor provides an opportunity to timeously develop the optimum solution and source better ‘ constituent products ’, at a competitive price , particularly if large quantities of or many products and accessories are involved .
www . plumbingafrica . co . za @ plumbingonline @ plumbingonline @ PlumbingAfricaOnline July 2023 Volume 29 I Number 5