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This is often the most neglected part of the service.
Below is a document that was specifically developed to address Stage 5: Construction. This document gives the client the opportunity to decide what they expect from you and details how you will be paid for your work.
Please note, that this document is kept personal (use of the word I), on housing projects as the personal service is what is important to the clients.
PROJECT TITLE: HOUSE………….
FEE PROPOSAL FOR VARIOUS SERVICE OPTIONS
Thank you for the opportunity to do a fee proposal for the Building Contract Coordination on your planned project. I am of the opinion that these types of services must be customised for every building project, as each building project has its own limitations and goals. I therefore encourage you to re-think the appointment continuously and to clearly identify the specific needs and requirements so the service can be adapted accordingly. The proposals below were developed as a result of our conversations …………………….(date).
This service would include one formal site meeting a month. I prepare a formal agenda, chair the meeting, compile and circulate the minutes and action on contractual matters as and when applicable. Contractual matters would include the evaluation of NOD’s (Notification of Possible Delays), formal EOT’s (Extension of Time claims, including the time and cost implications), issuing of CI’s (Contract Instructions – ‘site instruction’ is not the correct term, contractually), etc. All the above mentioned items have both cost and time implications, which directly affect the client – I keep you informed and indicate risks.
The required attendees at these meetings are usually the client, main contractor and in some cases the subcontractors. Should the client prefer appointing direct subcontractors, then they will definitely have to attend these meetings – these are the highest risk items that must be managed vigilantly (if you don’t know what I am referring to, then you need to consider the appointment of a building contract coordinator more seriously than you realise).
The downside of this option is that I would have to rely on the information provided to me by others at the meeting. If I only go to site once a month I cannot anticipate risks as effectively as when I go to site more often. I can therefore administer the issues once they have occurred, but there would be ample room for issues to arise, without the client being aware, in one month.
This service would include one formal site meeting and one walkabout per month. With this option I go to site roughly bi-weekly. The formal site meeting would be dealt with as in option 1, additionally, at the site walkabout the matters that were of concern in the previous site meeting are raised and discussed with the contractor and client. Furthermore a quality inspection is done with the appointed contractor present. The items that are discussed and agreements made are recorder and circulated. The CI’s are usually issued after these walkabouts. The procedure of issuing the CI’s include quantifying the cost and time implications the instruction would have (the QS confirms) and then the client is informed to approve the instruction. This procedure is often neglected in building projects, resulting in long delays and large budget overruns.
This service would include one formal site meeting and three walkabouts per month. With this option I go to site weekly and keep an eye on developments continuously. I follow up with the contractor regularly, I will be able to pick up if the subcontractors are not performing according to the original agreements, manage quality better, etc. I would recommend this option as it would take a lot of pressure off the client and ensure that all possible risks are known upfront and can be managed before it becomes issues, and costs unnecessary money. I can also issue instructions far quicker and ensure that all the required documentation and information is available as and when required. A contractor, typically, does not encourage you to make a decision on the tile spec, as he qualifies for additional time for everyday that you and your wife can’t decide, this costs you money in terms of P&G’s – there is absolutely no reason for him to encourage you to decide – this is what I prevent and manage. Off-course everything is continuously recorded and the information circulated.
I have developed this service because clients often do not understand the need for a building contract coordinator until it started costed them money. Usually I am approached once there is enough trouble on site that an outsider’s objective opinion is needed, as a SACAP registered Professional Architect it is part of my code of conduct to deliver this service. In a formal meeting new agreements are reached between the client and contractor and then I assist in managing that relationship until the project is complete, the contractor is off site and the final account has been settled. This is the more costly option and it is usually an uncomfortable relationship – but it happens more often than not, on building projects, that this service is required.
Typical items discussed at a meeting/walkabout – note the list is shortened
CONTRACTUAL MATTERS
– Start date:
– Completion date:
6.1.2 Contract amount (Incl. VAT)
6.1.3 Penalties for late completion: R per calendar day
Additional copies for the contractor’s own account
6.2 Contract Instructions (CI)
6.3 Existing services: a)Sewer; b) Storm water; c) Water; d) Electrical
INFORMATION PROVIDED
INFORMATION REQUIRED FROM CONTRACTOR
SITE MATTERS
MAIN CONTRACTOR
SUBCONTRACTORS
List of subcontractors and their actions
CLIENT
CONSULTANTS
GENERAL
List your own here. Encourage clients to contact previous clients as reference.
I would seriously recommend that a JBCC Principal Building Agreement (PBA) is signed between the client and the contractor. The contract would continue to protect the client, especially on a project of this nature. When clients manage the contractual process themselves they often fall into pitfalls as the contractors they work with have far more experience with these types of issues. The services were specifically developed to protect the client and contractor from each other.
I hope we can work together in the future!
Do not hesitate to contact me if you have any comments or questions.
This document was compiled by Anneke Schriek
082 470 0342 // anneke@schriek.co.za
