14 BUSINESS AND TRAINING
When all else has failed
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 Standardform 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
“ Simple errors can often be avoided by following the“ four eyes principle” – getting an outsider to review the text, calculations and / or the drawings without being immersed in the project’ s day-today activities.”
Uwe Putlitz guides us through what alternative dispute resolutions are available after we have already tried everything else.
All Standard-form Construction Contracts( SfCC) and Standard-form SubConstruction Contracts( SfSC) in common use recognise that disputes may occur during the construction process, necessitating an interruption or even termination of the construction process, if the parties are unable to resolve a disagreement with the involvement of a third party as a facilitator. Most recently published SfCCs and SfSCs actively promote dispute avoidance before dispute resolution.
Why do projects fail?“ Good project management will not necessarily deliver a good project – but the lack of it can pretty much guarantee failure.” EC Harris( Russel Gates): Effective Project Management Enables Better Service Outcomes.
Simple errors can often be avoided by following the‘ four eyes principle’ – getting an outsider to review the text, calculations and / or the drawings without being immersed in the project’ s day-to-day activities.
Most projects fail for the same reasons:
• The project objectives lack of alignment with the strategic direction of the business
• A lack of clarity around the objectives of the project
• An understated or unrealistic budget and timescale
• A project management structure that stifles decision making
• Inexperienced resources or a general lack of resources to execute the project
• A lack of engagement with the key stakeholders
• Decisions late in the project life cycle are generally costly and cause delays – which can often be avoided with a little forethought and planning
Value of project definition, Bas & Mayhew, 1994: Guide to Successful Project and Asset Delivery( ACIF) 2015 p9.
Suspension and termination The principal contractor may choose to suspend or terminate the works, often due to non-payment issues but not exclusively so; then the work of all other contractors is suspended and resumed, or terminated, by notice from the PCr.
• The subcontractor may suspend the subcontractworks if the employer and / or the PCr has failed to comply with specified contractual obligations( proof of insurance / provision of securities / or appointment of agents etc) on expiry of such notice.
• The SC may suspend the SC-works after the notice where the PCr has failed to make payment by the due date.
• The SC may terminate the SC-works where suspension has failed to resolve a notified issue by following the procedures( SfSC) in the relevant clauses. Suspension is not a prerequisite to give notice of termination of the subcontract.
• The PCr may terminate the appointment where the SC has failed to perform, or the parties may agree to terminate the appointment where execution of the SC-works has become impossible.
Note: A party in breach of the contract cannot terminate that contract.
Dispute resolution
• Where the parties have not resolved a disagreement, the aggrieved party may give Notice of Dispute to be resolved by following the procedures in the SfC / SfS
• The parties must continue to perform their obligations notwithstanding any disagreement or dispute that may exist between them
• The JBCC SfS refers to‘ the employer consents to the joining of any subcontractor with the PCr as a party to any proceedings’
Note: There is no privity of contract between the employer and a nominated / selected subcontractor.
www. plumbingafrica. co. za @ plumbingonline @ plumbingonline @ PlumbingAfricaOnline January 2026 Volume 31 I Number 11