Construction World January 2017

Putlitz says silence is decidedly not golden when it comes to avoiding strife on building sites. ‘’All signatories to a contract – no matter how low they may feel they are in the pecking order – must immediately give notice when aware of a looming potential problem. The key is to speak up immediately: once resentment has started growing, conflict is difficult to avoid,” Putlitz warns. He says all standard construction contracts include procedures in individual clauses to deal with items that may become a dispute if not resolved timeously. These incidents could include: • Provision of inadequate or incorrect information to the contractor; • Delays to the project for various reasons; • Additional costs; • Appointment of subcontractors; • Performance by subcontractors; • Performance by the principal contractor; • Changes by the employer; • Changes for statutory compliance; • Late or nonpayment by the employer; and • Late or nonissue of payment and completion certificates by the contract administrator. “The contract administrators must fulfill their own contractual duties as well as coordinate the obligations and rights of the contractor and employer. If the administrator learns of a potential problem, he or she must act immediately to hopefully resolve the issues raised. Where an identified problem is not resolved, a further notice is generally required before the contractor – and possibly the employer – can invoke the suspension or termination clauses. Similarly, the dispute resolution clauses may be invoked.” Putlitz says it is crucial that the contract administrator, as well as the contractual parties, promptly communicate in writing and keep records of relevant information (site photos, delivery notes) to create an auditable information trail should dispute events need to be proved later. “Keeping minutes of all meetings in an agreed format and the prompt issue of such minutes – and the approval of minutes, or the noting of corrections – are equally crucial. The parties must resolve contractual claims as they occur and the persons involved approached to find a solution. Leaving this to the end of a contract creates uncertainty, and will end up as a dispute as either party are likely to offer a myriad of excuses.’’ His advice is to keep accurate records in a format that can easily be accessed; agree on communication procedures (and stick to them) and speedily deal with all notifications of any potential problem – and hastily find a solution by consensus.  Speak up – and create an information trail All parties involved in a building contract should not hesitate to speak up the moment they spot a potential dispute, advises Uwe Putlitz, CEO of the Joint Building Contracts Committee (JBCC).

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CONSTRUCTION WORLD JANUARY 2017