BUSINESS AND TRAINING 11
Standard-form Subcontracts ( Part 3 )
By
Uwe Putlitz
Uwe Putlitz takes us through the ins and outs of standard form subcontracts to broaden our understanding of the topic . We head into part three of this series .
We continue with our series on subcontracts . In part three we dive into what the subcontractor may or may not do . We also go into the certificate of completion and what delays may occur .
The subcontractor may : a . If delayed by the PCr and / or other subcontractors , recover damages from all other contractors ; b . Be liable to the PCr for damages where the ( revised ) date for interim or practical completion of the subcontract-works as a whole , or a section thereof , is not achieved .
Completion of the subcontract works – the contractor must : a . Invite the CA / PA and / or agents to inspect the subcontract-works in terms of the current programme ; b . Issue a list for interim completion / practical completion for the subcontract-works .
Completion of the subcontract works – the subcontractor must : a . Regularly monitor and report the progress of the terms of the current programme ; b . In preparation for practical completion invite the contractor , CA / PA and / or agents to inspect the subcontract-works , and where applicable , witness commissioning procedures ; c . Issue the list for interim ( JBCC )/ practical completion to each subcontractor ; d . Where the PCr fails to issue a certificate of interim completion , after notice to do so , interim completion is deemed to have occurred on the expiry of the stipulated notice period ; e . Attend to items on the list for interim completion ( JBCC only ) and / or practical completion ; f . Provide to the CA / PA and / or agents ( information for the preparation of ) as-built documentation and provide to the CA / PA and / or agents all operating manuals and product warranties .
After the certificate of practical completion has been issued , the subcontractor must : a . Attend to items on the list for ( subcontract ) completion ; b . Invite the PCr , CA / PA and / or agents to inspect the final subcontract-works , and where applicable , witness final commissioning procedures ; c . Be aware that commissioning of some equipment ( HVAC , etc ) may require checking and adjustment during the next four seasons ; Note : Only JBCC contracts [ 21.1 ] define the defects liability as ( 90 ) ninety calendar days from the date of practical completion . Any seasonal adjustments must be covered in a separate “ equipment maintenance agreement ”. d . Attend to items on the list for final completion ; e . Cede to the employer any outstanding guarantees , product warranties and design indemnities .
After the certificate of final completion has been issued , the subcontractor must : a . Co-operate with the PCr and the CA / PA to determine the value of work completed and applicable adjustments , including measurements on-site where required ; b . Agree the subcontract final account with the PCr , CA / PA and / or agents , if not done already ; c . And on receipt of the final payment , submit all certificates of compliance or the like withheld as a lien for outstanding payments .
Delays and claims a . As the works progress , the subcontractor may become aware of ‘ events ’ that could delay the subcontract works or result in additional expenses or possible savings ( or faster / better methods of construction ?); b . Where authorised changes to the scope of the subcontract-works are instructed during the execution and / or completion phases , the ( sub ) contractor may be entitled to a revision of the
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
“ Only JBCC contracts differentiate between ‘ penalties ’
applicable in the relationship between the employer and the PCr and ( proven ) ‘ damages ’ in the relationship between the contractor and the subcontractor .”
October 2024 Volume 30 I Number 8 www . plumbingafrica . co . za