SUBCONTRACTING DO’S & DON’TS

Validated for 1 CPD point SAICEcon13/01403/16

Overview

In today’s world of increasingly complex and costly projects in the built environment, the need for more and more work to be handled by subcontractors has become paramount. The reasons for this are generally twofold, namely the subcontracted work is of a specialised nature requiring special skills, or the subcontract is used as a vehicle to promote the development of emerging contractors and small businesses engaged in the industry. Problems frequently arise in the contract between main and subcontractors, stemming from poor administration of the subcontract, and abuse of the subcontracting system by either party, aggravated by the influence of the parties to the main contract, where the subcontractor is excluded. The one day course looks at best practice to be observed on both sides of the subcontract table towards fair and equitable arrangements between the parties, against the background of GCC 2010, JBCC, FIDIC, and NEC main contract conditions.

The GCC 2010 Subcontract Trial Edition

The General Conditions of Contract 2010 were introduced by SAICE nearly three years ago. A feature of the GCC 2010 document is that it is suited not only to the Employer supplying the design, but it can be used for Design-Build contracts with design undertaken by the Contractor. Also, while GCC 2010 can be used for civil engineering projects (the traditional use of earlier GCC editions), it is suitable for mechanical or electrical work and for building projects. In short, GCC 2010 can be used for multi-discipline assignments. This versatility brings with it a need to cater for subcontracts in all these spheres and which can form a significant portion of the overall contract value. Hence the need for GCC subcontract conditions which relate closely to, and are compatible with the main GCC conditions.

In cooperation with the SAICE, BCA have produced a Trial Edition. Part of the one day course will be devoted to looking closely at this new document, as a prelude to its becoming widely used alongside GCC 2010 main contract conditions.

Anticipated Outcomes

The course is aimed at main contractors and subcontractors, being the parties in the subcontract. The focus is on the obligations and contractual relationships between these parties. These aspects are considered not only for GCC 2020, but also for JBCC, FIDIC, and NEC conditions of contract. Delegates attending the course will gain a greater understanding of the contractual relationship between Main and Subcontractor, plus a higher awareness of employer interventions in the subcontract and an appreciation of how subcontractors are dealt with in each of the four main contract conditions.

Course Content

The course is presented in two main parts. Part One comprises general considerations of subcontracts relating to Parties’ obligations, Quality, Time and Payment aspects, Nominated vs. Selected subcontractors, Claims, Variations, Insolvency issues and Dispute resolution.

Part Two is devoted to examining the approach to subcontracting in each of the four general conditions mentioned above. The section on GCC 2010 includes a commentary on the new Trial Edition of the GCC Subcontract. Delegates receive a Training Manual containing Parts One and Two, including short case studies illustrating some typical problems often encountered. Recommendations embodying best practice for main and subcontractors, with pitfalls to be avoided, are made throughout the manual.

Who should attend ?

The course is intended to be of value to all players involved in subcontracting in building and engineering projects, including: 

  • Employers
  • Contract Managers
  • Contract Administrators
  • Project Managers
  • Procurement Officers
  • Subcontractors from a specialist background
  • Subcontractors from a development background

Learning Objectives

  • Understanding of the different types of subcontractors and their characteristics
  • Understanding the roles of the parties and associated persons in the subcontract
  • Identification of the obligations of the parties in the subcontract
  • Importance of the programme and claims arising from delays
  • Fit for Purpose vs. Due Skill and Care, and the liability gap
  • Latent and patent defects – identifying and dealing with them
  • Understanding of the payment process as it affects subcontractors
  • The different approaches to subcontracting in GCC 2010, JBCC, FIDIC and NEC

COST:

Prices vary according to venues. Please consult the regional registration forms.

DISCOUNTS:

The following discounts are available:

  • Group Discounts of 10% available for a Company simultaneously registering 3 or more delegates. 

Discounts are subject to payment being received prior to the seminar.

REGISTRATION PROCESS:

Complete the registration form & send to Norah at fax (011) 888 1068
email: norah@bca.co.za  or call Sue at (011) 888 6141 or www.bca.co.za