Successful completion of building projects largely depends on the competence of the principal agent − it is essential that this key role player is properly equipped to handle this vital role , says Uwe Putlitz .
ASSOCIATIONS
Principal agents make or break building projects
Successful completion of building projects largely depends on the competence of the principal agent − it is essential that this key role player is properly equipped to handle this vital role , says Uwe Putlitz .
CEO of the Joint Building Contracts Committee ( JBCC ) Uwe Putlitz says poor principal agency functioning is increasingly causing disputes and disruptions in South African building projects . In many cases , the appointed agent does not have the necessary experience and is erroneously appointed , he feels .
“ There is no specialised training course or recognised qualification that a principal agent must complete . But to properly fulfil his or her duties , the agent must at the very least have a Bachelor ’ s degree in architecture , building science , engineering or quantity surveying . It is also necessary for the agent to have professional registration with a statutory body such as the South African Council for the Project and Construction Management Professions [ SACPCMP ].”
Training is vital – and so is the personality traits of the principal agent . “ This is not a job for the meek and mild , or the disorganised . Effective principal agents should be able to deal with those involved with the contract authoritatively and methodically . Contract administration requires the management of a vast amount information in a manner where it can be retrieved and monitored at short notice , using the appropriate technological aids to suit the nature of a project .”
Putlitz says today ’ s principal agent ’ s role is complex and a far cry from the ‘ employer ’ s agent ’ of old .
“ Building contracts traditionally included an employer ’ s agent to administer the execution of the works by the contractor and subcontractors . This agent was usually the consulting engineer or architect who designed the works . However , in recent years the execution function has been separated from the design function by the emergence of a ‘ principal consultant ’ to coordinate the numerous disciplines involved in modern buildings , and the ‘ principal agent ’ ( or ‘ contract administrator ’ in some standard form contracts ) to administer and manage the construction phase . In some standard form contracts , this person is referred to as the ‘ project manager ’ whose duties may be limited to the execution phase or include the pre- and post- construction phases .”
In a 2006 English court case ( Scheldebouw BV versus St James Homes ), it was held that the principal agent has , in the first place , an agency function to execute instructions from the employer and , secondly , a decision-making function when the employer and contractor may have opposing interests .
“ The principal agent must act proactively to avoid potential disputes . This requires regular monitoring of the execution of the works , liaison with all stakeholders , and dealing with all claims competently and within the time constraints of the standard form contract used . Here , the second professional obligation of the principal agent as laid down in court comes to the fore when the employer may have expectations not provided for in the contract documentation .
“ The execution of any building project requires team work , good communication and competent administration apart from the construction skills . Should any dispute arise , and the project records are incomplete or not easily accessible , it will be more difficult , time consuming and expensive to resolve such issues ,” Putlitz concludes .
In carrying out the agency function , the principal agent must ensure that :
1 . The parties to the contract have complied with legal and tender formalities ;
2 . The construction team have timeously been issued with all relevant construction information ;
3 . The construction team are working at the required pace to complete the project by the specified date ;
4 . The construction team are achieving specified quality standards ;
5 . The construction team is paid fairly – and on time – for work correctly completed ;
6 . Non-compliant aspects of the works are promptly dealt with as they arise :
7 . Potential claims for a revision of the date for practical completion is handled timeously ;
8 . Potential claims for an adjustment of the contract value is also promptly dealt with ; and
9 . The project is concluded as specified , all administrative and other compliance certificates are recorded , and all parties paid their due .
8 JUNE / JULY 2018 //