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BUSINESS AND TRAINING
• Clarify the always contentious matter of ‘ contra charges ’.
• Agree key dates for submission of reports and notices .
• Agree how to manage ‘ quality ’ assurance .
• Agree how to manage ‘ commissioning ’ and certification .
• Agree how to manage ‘ completion ,’ defects liability , warranties .
• You may have to provide :
○ Business registration certificates including – CIPC , SARS , UIF , bargaining council if applicable .
○ Personnel names + ID numbers , health records and qualifications .
○ A guarantee for performance .
○ When in doubt – ask ! ( in writing , and keep a copy of all correspondence ).
Executing your first contract as a plumbing subcontractor – what NOT to do Administration – Ensure the office procedures are set up to manage the business – staff and other records , ‘ certificates ’ filed safely , and submission of statutory reports , payments etc ., ( SARS , UIF etc ).
• Ensure the office procedures are set up to manage the contract – and file staff time sheets , orders for materials and goods , invoices to keep track of costs incurred on site – and to make timeous payments to suppliers .
• Ensure the office procedures are set up to manage the contract – to submit payment claims , contractual notices and the like timeously – monitor progress against the programme , expenses , amounts claimed to ensure a positive cash flow balance – consciously identify any delays , cost overruns .
Project-site records Risk register – As work progresses review and update items in the risk register – and give notice to the contractor of items that may influence the project completion date / final account .
Health & Safety Plan – As work progresses review and update items in the plan .
Quality Management Plan – As work progresses review and update items in the plan – and give notice to the contractor of items that may influence the project completion date / final account .
Testing and commissioning procedures – As work progresses review and update items in the method statement – and give notice to the contractor of items that may influence the project completion date / final account .
Accepted / current works programme – As work progresses , monitor your work and that of others – are you behind schedule due to your ( in ) action – or will others delay your scheduled work ?
Construction documentation
• Do you have an up-to-date register of all construction information ? Is information outstanding or incorrect that will delay the works ?
• Is information issued ‘ for construction ’ or ‘ for information ’ or ‘ preliminary ’ – you can only work using ‘ for construction ’ information !
Minutes of site / progress / coordination meetings :
• Ensure minutes correctly record information you have provided or requested .
• Any material errors / omissions must be reported and corrected in the minutes of a subsequent meeting .
Record of all ( contract ) instructions :
• Do you have an up-to-date register of all ‘ instructions ’ issued on site , by phone , recorded in minutes …?
• Insist that all ‘ instructions ’ are formalised as “ contract instructions ” noting the effect on the programme and ./ or the contract value .
• Maintain a record of events – deliveries , use of construction equipment , weather , community action , etc ., that may delay your work and / or increase costs .
• Maintain a record of interactions with other ( sub ) contractors that may delay your work and / or increase costs .
Execution
• Monitor progress in terms of the ( current / revised ) programme .
• Asses the implication of contractor ’ s instructions .
• Identify potential delays in the time for completion / possible additional costs .
• Assess delays / costs if due to your ( in ) action or due to others and / or employer Instructions as you become aware of them .
• Deal with ( possible ) defects – easier now than after completion !
Note : You cannot benefit from your ( in ) action or mistakes – but you can obtain relief if others cause you harm , costs or delay the works – provided you have ‘ facts ’ in the form photographs , ( accepted ) minutes of meetings , the current programme updated to show the effect on the critical path , and deviations from the contract sum .
Payments
• Insist that payments are certified using the SfC format for payment certificates ( payment advice to subcontractors ) and recovery statements .
• Timeously submit all payment claims including supporting vouchers or invoices by ( before ) the due date .
• Monitor any security adjustments / withholding of retention / unilateral contra charges that should be ‘ highlighted ’ in the recovery statement and consolidated in the payment certificate .
• Monitor and submit all “ justified ” ‘ adjustments of the contract value ’ as claims within the period stated in the SfC used ;
• Monitor ( unauthorised ) deduction of penalties / damages that should be ‘ highlighted ‘ in the recovery statement and consolidated in the payment certificate .
Possible disputes ( Late , partial or non-payment ):
• Issue a ( polite ) Notice immediately on expiry of the period for payment in the SfC that no payment has been received by the due date – please advise when payment may be expected .
• If , by expiry of this Notice no payment has been received , issue a stern Notice ( and copy the principal agent ) that you will suspend your works on expiry of this Notice if payment in full is not received , and issue a demand on the guarantor of a Payment Guarantee .
www . plumbingafrica . co . za @ plumbingonline @ plumbingonline @ PlumbingAfricaOnline March 2022 Volume 28 I Number 1