BUSINESS AND TRAINING 19
Standard-form Subcontracts ( Part 2 )
By
Uwe Putlitz
Uwe Putlitz takes us through the ins and outs of standard form subcontracts to broaden our understanding of the topic . We continue with part two in this series .
Last month we looked at what a subcontractor is and what they do . We continue with the execution of subcontracted work .
On the Execution of the Subcontract Works – on appointment – the Contractor must on instruction from the CA / PA appoint each ‘ nominated ’ and / or ‘ selected ’ subcontractor using the SfS aligned with the SfC that must be signed before the Subcontract Works commence , after all listed returnables ( a unique South African building industry term for supporting documents to a tender ) have been received . They must also provide an area for the Subcontractor to use or erect for temporary storage , workshop and / or a site office . They should also define restrictions to the site applicable to the Subcontractor , permit the use of personnel welfare facilities , provide a Guarantee for Payment ; ( if specified in the Subcontractor ’ s tender submission ); and allow the use of electricity / water within 50m of the Subcontract Works .
They must also : a . allow all Subcontractors to use at no cost erected scaffolding , hoisting facilities , etc while erected on site and give timeous notice before removing construction equipment from the site / works in terms of the programme : i . where the Subcontract Works is late in terms of the current programme , the Subcontractor may be liable for the cost of the extended use thereof ; ii . where the Subcontract Works is delayed through no fault of the Subcontractor , the Subcontractor is entitled to continued use thereof at no additional cost ; b .
c . hold regular meetings to monitor progress and to deal with technical and coordination matters – and to record and timeously distribute minutes ; on receipt of a Contract Instruction , issue a ‘ Contractor ’ s Instructions ’ ( unique JBCC terminology ) to all ( involved ) Subcontractors ; d .
e . remain responsible for the works including the Subcontract Works except on default ( after Notice ) of a nominated Subcontractor ; Where changes to the standard form contract are deemed necessary – such changes must be clearly stated in the tender documentation – and the ‘ particular conditions ’. When using JBCC agreements changes must be recorded in the Contract Data – as B15 for the PBA and NSSA and B13 for the MWA .
Execution of the Subcontract Works – on appointment – the Subcontractor : a . is deemed to be familiar with the Site / Works before submitting a tender ; b . must , on appointment by the PCr , submit the priced document , indicative programme , specified guarantees , and where applicable , design information , or queries relating to the design specification , within the stipulated period ; c . must comply with applicable statutory regulations ; d . must coordinate the Subcontract-works with the Works Programme to enable the CA / PA to monitor the progress of the whole works , or a section thereof , and submit regular progress reports in terms of the current Programme ; e . is not required to insure the subcontract works ( included in the Contract Works Insurances ), but is responsible for statutory insurance , tools etc .
Execution of the Subcontract Works - the Subcontractor must : a . designate a ‘ competent person ’ to administer , control and permit access to the Subcontractworks , maintain daily site records , keep accessible a current copy of all Subcontract Construction Information ; permit access to other places where Subcontract-works is being prepared , executed or stored ; b . provide everything necessary for the proper execution of the Subcontract works , proceed with due diligence etc to bring the Subcontract-works
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
“ Where changes to the standard form contract are
deemed necessary – such changes must be clearly stated in the tender documentation – and the ‘ particular conditions ’.”
September 2024 Volume 30 I Number 7 www . plumbingafrica . co . za