BUSINESS AND TRAINING 17
• The parties to the contract – reputation of the employer and the principal contractor , the likelihood of not getting paid based on previous experience / in the industry ?
• Any statutory restrictions ?
Guarantees
• Do you have to provide a ‘ performance guarantee ’? ( Costs money .)
• Do you need to provide an ‘ advance payment guarantee ’ to secure money to pay deposits ? ( Possibly to foreign suppliers .)
• What are the chances of the employer or the principal contractor providing a payment guarantee to you ?
• If retention applies – at what percentage / when repaid ? How likely is it that the retention will never be paid by the contractor ?
• An escrow account may solve the repayment of retention but costs money .
Insurances
• Are there any insurance obligations relating to the project – separate from the insurances required to operate your business ?
Personality issues – Are you aware of any persons / obligations / goods or activities that may cause ‘ personality clashes ’ and / or ‘ disagreements ?
If personality clashes are likely , do not tender – another project may be a pleasure to work on and earn a profit .
• Check that the information provided is as specified in the tender documents , that no items have been added , omitted , or changed without notification ( this could be fraud !) or if declared , assess the risk to you , for example unilaterally changing the payment conditions .
• Submit a draft programme for integration with the works programme .
• You may request proof of approved building plans and compliance , amongst others , with the Occupational Health & Safety Act .
• Confirm that the works have been insured by the employer , or the contractor , and that such insurances include ‘ your ’ subcontract works and insist on a copy of the insurance schedule .
• Ensure names + ID numbers of your permanent and contract staff working on this project are recorded on the project insurances .
• Confirm that space has been allocated as a site office / workshop / lay down area – and that such facilities , connection to utility services , use of personal hygiene facilities , access , and use of temporary works and construction equipment including hoists etc ., ‘ is suitable .’
• Clarify site security – and access control for staff and visitors .
• Clarify who has what authority in your team and similarly that of other contractors on site .
• Agree key dates for submission payment claims , deduction / release of retention ( consider an Escrow account to ‘ manage retention ’).
Dispute resolution – What provisions apply should a disagreement / dispute arise – as stipulated in the Standard-form Contract – if modified , beware ! Options should refer to negotiation between the parties , if not successful refer to mediation , if not successful refer to adjudication . Avoid arbitration if possible and resist litigation , which is lengthy and very expensive !
You have won your first tender as a plumbing subcontractor – what now ? Administration – You have received a notification from the Contractor and / or the Principal Agent or a specialist agent as a phone call and / or an email , or a WhatsApp message containing a list or requirements to be complied with and forms to be completed contingent on your acceptance – including :
‘ Returnables ’ – Confirm your status – to be appointed as a domestic , nominated or selected subcontractor , or even as a direct contractor by the employer . The ‘ letter of acceptance ’ written by the consultant , Contract Administrator or the Contract Manager should confirm that the tendered price is the accepted price , some key dates and contact persons with their details and confirm a time and date to sign the Standard-form ( sub ) Contract and the contract documents that may include the priced Bills of Quantities , drawings , any subcontract design information – if applicable , the health & safety plan , the quality management plan and a preliminary programme .
• Ensure you are provided with a reference copy of all contract documents within say a week !
March 2022 Volume 28 I Number 1 www . plumbingafrica . co . za