BUSINESS AND TRAINING
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employer , or where the employer is unhappy to pay another consulting fee . There is nothing wrong with including provisional sums or prime cost amounts in the tender , but they must be converted into real appointments or specifications in tandem with the construction programme .
A consultant could provide a poor service such as the late issue of information and / or issue information containing errors , which , at worst , may only be discovered during construction . Similarly specified products or materials may be unsuitable for the intended application , or may not be available , or may not be available in time ( possibly due to COVID-19 ).
The AoC , particularly of he / she is the CA , may find it difficult to acknowledge that one or more consultants are the cause of delays or abortive work . If so , those involved must forthwith inform their respective professional indemnity insurers and the employer – and it is often the case that the insurer will manage this claims process .
4 . Changes initiated by the employer This does happen and may , at times , be unavoidable to secure a tenant or purchaser for the viability of a project .
Employer-initiated changes should be avoided – they almost certainly will entitle the ( sub ) contractor to an EOT and probably with costs . The best way to avoid disputes and claims is to allow enough time to define the project in as much detail as possible , and consider alternative materials , products , building layout options or alternative construction methods .
The nature of such claims is such that the formulation and assessment thereof by the AoC should follow as soon as the time and cost implications can reliably be quantified .
5 . Late , partial or non-payment of certified amounts All SfCs define payment procedures to be followed to avoid delay / interest claims and possible suspension by the ( sub ) contractor . The ( sub ) contractor should submit his / her regular payment claims in the stipulated format with supporting documentation by the contractual due dates – similarly the employer ( contractor as the employer of a subcontractor ) must pay by the contractual due dates . All SfCs also include a procedure to follow should the employer dispute a certified amount .
Payment procedures in SfCs are sometimes modified in the tender documentation to allow for an extended payment approval process in the employer ’ s organisation . By signing the contract , such contract modifications become binding .
Sometimes contractors introduce a ‘ pay when paid ’ clause in subcontract documents . This problem has been discussed at numerous international and local conferences to outlaw this practice – with limited success .
The AoC must assess each payment event solely in terms of the SfC used .
Conclusion The AoC must act in terms of the SfC used – but may have to interpret each event in the context of when , where , and how it occurred and what action was taken by those involved to avoid , minimise , or mitigate such an occurrence . PA
More info : info @ buildstrat . co . za
October 2022 Volume 28 I Number 8