Key roles of key personnel and obligations
This report has been produced by myself miss Swann who is acting as a representative on behalf of The Gallagher brothers. Due to there inexperience of building contracts I have compiled a short report identifying the key roles of key personnel on a JCT 2005 SBC/Q and there obligations under the contract on the project ‘The Oasis leisure complex’. I have also identified possible conflicts so they can be avoided.
Standard Building Contracts
Where a building project is to be undertaken, the employer will have to engage a considerable number of individuals to provide him with advice, services, and goods. To ensure that the work progresses smoothly, it is essential that all the parties involved have clear guidelines as to their rights and obligations throughout the project. This is achieved through contractual agreements.
Over the years there has been a increase in the development and publication of standard forms of contract, this could be said to be due to the diversity of procurement methods that clients are able to use(design an build, project management etc.).There are numerous contracts available for client to choose today some of the most popular being the JCT 2005,ICE 7th, an NEC with each one having many variations.
The joint contracts tribunal was established in 1931 and for 78 years produced standard forms of contract, guidance notes and other standard documentation for use in the construction industry. The RICS ‘contracts in use survey’ of 2004 found that the JCT contracts are used in 85% of all construction projects. The latest is the JCT 2005 second revision contract. In this Report the contract being used is the JCT 2005 SBC/Q although many variations of the contract are available, this contract best suites all parties.
Roles of key personnel on the ‘Oasis’ development
The new leisure complex the Gallagher brothers wish to build is going to be a large development with numerous professionals taken part due to its complexity and high amount of risk. The main roles of the employer is to fund the project signing any interim certificates making sure they sent on the correct dates and higher the relevant parties needed to complete it.
The main contract agreement is between the employer and the contractor in this case the Gallagher brothers an duck construction UK ltd(DCUK). The Gallagher brothers will need to employ a Architect to produce drawings for the contractors an to also to help over see the project providing any instructions and inspecting the contractors works. Its also possible the architect can help draw up the contract unless a contracts administrator is employed. An as the contract being used includes quantities a quantity surveyor needs to be employed to produce a bill of quantities and material advice.
It is important for the Gallagher brothers in the recitals section of the contract to identify the work they wished to be carried out an at the specific location. A bill of quantities is then produced by a QS to be read and signed by both parties. Also a priced schedule of activities is produced an attached to the contract. The architect produces the drawings to be numbered an listed attached to the contract he should make any agreed modification and consult the contractor on these changes.
The contractors main role is to carry out construction to the employer requirements proceeding regularly and diligently. It is also possible for the contractor to include there own designs involved in the project in the contract . If DUCK are to provide there own designs the Gallagher brothers need to provide there requirements for the design, also the contractor should provide an analysis of the portion of the contract sum relating to the contractors design portion. As part of the project for the purposes of the CDM regulations the CDM co-coordinator is identified as the architect and the principle contractor is the contractor. The contractor should then carry out necessary CDM planning and preparation for the works.
Key personnel’s responsibilities under the contract
Joint fire code, the employer or contractor or both can share the liability.
Employer is responsible for producing for contractor interim certificates in full on specified date
Employer should make sure the CDM co-ordinate carries out all his duties
Its in the employers best interest they make sure the contractor is carrying out work to the employer requirements identified in the contract.
The employer may enable the contractor or other persons to carry out any extra works not identified in the contract.
The contract is a lump sum so the risk is on the contractor if costs come over what they tendered they must pay the extra costs.
Contractor should make sure phase plan is prepared an received by employer and welfare facilities comply with regulations from commencement of construction.
Materials, goods, workmanship, works, should be to standard identified in the contract bills, and the employers requirements
Contractor should take all reasonable steps to encourage contractors persons to be registered card holders under the construction skills certification scheme
Contractor shall begin construction on date of site possession identified on the contract
Contractor may give consent for the employer to arrange works not identified in the contract bills.
The contractor is liable for materials, lost, stolen or removed from sites even though they are legally the possession of the employer as soon as they are on site.
If work is to be delayed the contractor should give notice to the contract administrator in this case the architect of any circumstances, including causes or cause of delay or expected delay.
Contractor should always he has a competent person in charge on site at all time.
Contractor should carry out all reasonable instructions from architect within 7 days.
Responsibility to amend any defects
Architect/ contract administrator
Can be liable for his designs not the contractor.
The architect can decide if application of delay of works fro the contractor is accepted, is so he should set a completion date and amend it in the contract.
Architect at all reasonable times has access to the site, he can investigate all materials and works, all defects shrinkages and faults shall be specified in a schedule of defects and delivered to the contractor. After contractor amends issues the architect issues them with a ‘certificate of making good’.
Architect has responsibility of issuing postponement of any works to be executed under the contract.
The architect can issue instructions for the contractor to open up any orks to carry tests on goods an materials, the contractor is not liable all costs are added to the contract sum.
If any works, materials, goods on site are not in accordance ith the contract the architect may instruct removal until consulting the employer and contractor.
Identify any unsatisfactory executed work, and give reasons to the contractor.
Provide a accurate bill of quantities based upon the drawings proved by the architect using the current Standard Method of Measurement of Building Works.
Specify materials to be used by the contractor.
Make any amendments or provide quantities for any extra works that have been carried out and should be covered in the contract.
Maybe asked by the architect to carry out a vaulation on works not more then 7 days before a date of a interim certificate.
Potential conflicts, due to personnel carrying or not carrying out there responsibility.
If the contractor reviews the contract and find discrepancies they may wish to stop works and ask the architect for instruction, this means the contractor is not liable for loss of time and cost but the architect may have the view the contractor is not proceeding regularity and diligently.
The employer may defer possession of site for a period of up to 6 weeks, the contractor might fell aggrieved by this if they have already set up resources and funds for specific dates, any delays could affect other contracts they have.
Employer may wish to occupy part of site for storage, offices etc. an contractor does not agree due to the lack of space available.
Architect might not find circumstances for the delay of works from the contractor and instruct them they have no time extension. The contractor may then feel he cant carry the work out to the specified employer requirements.
Contractor has not followed architects instructions on variations or work unsatisfactory, so employer has to employ someone else to carry them out, and contractor is therefore liable for extra costs.
Architect may issue instruction to the contractor of variation of the employers requirements which the contractor finds unreasonable so has no obligation to carry these variations out, the employer might find this unacceptable an be unhappy but there cannot be any changes to the contract document without agreement.
Contractor refuses to carry out works regularly and diligently, the employer can terminate the contract.
The employer doesn’t pay using method identified in the contract an the contractor needs the funds to continue works and pay debts.
Employer interferes or obstructs the issue of certificate under the contract, termination by contractor.
The contract need to be followed to protect each party involved on the project. It is in the best interest of all parties that the contractors proposal and the employers requirements are fully understand and agreed by all parties so the expectations of each party can be adhered too. The relationship between the parties should never be stressed by unreasonable instructions or failure to produce work to the required standard as the aggrieved might find it hard to carry on working under the contract and a independent adjudicator might need to step in and provide decisions on disagreements which are binding unless referred to arbitration or litigation.
Each party needs to fully understand there responsibilities and obligations under the contract to produce a good working relationship with a profitable outcome. I advice that regular contract meeting should take place to keep strong communication between all parties and also the I advise the use of contract consultants or representatives if any part is unsure of there contract obligations.
Joint Contracts Tribunal (JCT) Contracts, Sweet & Maxwell [online].(2005:second Revision).Standard Building Contract with Quantities. Available:
http://moodle.bcu.ac.uk/tee/mod/resource/view.php?id=29285. Last Accessed: 15th January 2010