www . refrigerationandaircon . co . za RACA Journal I September 2023 11
Associations price , masquerading as an innocent request . The all-toofamiliar scenario of being complimented on your exceptional work , only to be asked for a price reduction , is yet another example of these scope games . Moreover , the issue of change orders and their associated costs often emerges , wherein owners or others involved in a project argue that the changes were foreseeable and , therefore , the additional work should not be remunerated .
One particular trend gaining momentum is stealth design delegation , a practice where engineers are burdened with last-minute design changes imposed by owners or architects . In a rush to meet deadlines , some resort to including clauses in contracts , transferring design responsibilities to manufacturers or contractors . While this approach may appear expedient , it undermines the integrity of the design process and further severs the connection between scope and price .
The core lesson we must learn from these recurring challenges is to never allow scope to be disconnected from price . It is essential to establish a firm policy within your organisation that clearly communicates the principle : if the scope changes , the price must change accordingly . By adhering to this principle , we protect our margins and ensure fairness in our dealings .
Anytime a general contractor or owner approaches me with a request to lower my price , my response has always been centred on the importance of maintaining the integrity of the scope . It is crucial to understand that performing additional work without proper compensation is simply not feasible .
To illustrate this point , let ' s consider the responsibility for unforeseen and unknown conditions within the scope game .
The answer to who should bear this responsibility depends on the contract ' s provisions . In my view , if the contract is wellwritten , the owner should be accountable for such conditions . After all , it is their building , and they hold the vision for its purpose . Any unforeseen or unknown conditions should rightfully fall under the owner ' s responsibility . This is why it is essential to have a contract clause that addresses the discovery of concealed physical conditions or unusual physical conditions , ensuring that contractors , engineers , and manufacturers ' representatives receive an equitable adjustment in contract time or cost .
The key lesson here is to thoroughly read and understand your contract . It is crucial to identify clauses that enable price adjustments when scope conditions change . However , there are cases where contracts , either intentionally or inadvertently , shift the responsibility onto contractors . This can occur when contracts lack a provision addressing unforeseen or unknown conditions , and an express provision to the contrary is absent . It is important to be vigilant and ensure that such clauses are not removed , as they can significantly impact your scope and liabilities .
While I am not a lawyer but an engineer , I believe it is generally legal for contracts to allocate responsibility for unforeseen and unknown conditions . However , from an ethical standpoint , transparency and integrity should prevail . If a party wants you to assume responsibility , they should openly communicate it rather than burying it in a contract or removing critical clauses . Upholding ethical boundaries and fostering honesty is essential in our industry .
Continued in Part 2 … RACA
www . refrigerationandaircon . co . za RACA Journal I September 2023 11