BUSINESS AND TRAINING
Executing your first contract as a plumbing subcontractor – what ( not ) to do . Part 2
9
By
Uwe Putlitz
Uwe carries on with his series again showing how essential the detail is , after all “ the devil is in the detail .”
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 , etc , timeously – monitor progress against the programme , expenses , amounts claimed to ensure a positive cash flow balance – consciously identify any delays or 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 .
• Assess the implication of contractor ’ s instructions .
• Identify potential delays in the time for completion or 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 of 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 .
May 2022 Volume 28 I Number 3 www . plumbingafrica . co . za