Building contracts, a means to manage the construction process: a South African perspective

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Date
2017
Authors
Du Plessis, Hendri Blignaut
Journal Title
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Publisher
University of the Free State
Abstract in other languages 𝘚𝘤𝘳𝘰𝘭𝘭 𝘥𝘰𝘸𝘯 𝘧𝘰𝘳 𝘈𝘧𝘳𝘪𝘬𝘢𝘢𝘯𝘴
Abstract
𝑬𝒏𝒈𝒍𝒊𝒔𝒉 The construction contract, in particular the building contract, is reviewed in this study. Some view risk management and protection of the parties’ interests as being the main objectives of this contract. This research investigates the structure of the building contracts used most often in South Africa, while comparing them with the main project and construction management areas. Four contract suites are recommended by the Construction Industry Development Board (CIDB) to be used in public projects in South Africa, namely the Joint Building Contracts Committee (JBCC), the New Engineering Contract (NEC), the General Conditions of Contracts for Construction Works (GCC) and the Fédération Intranationale des Ingénieurs-Conseils (FIDIC). The research focused on the contracts suitable for building work. The structure of these contracts revealed that they are similar to the structure proposed by the Project Management Body of Knowledge (PMBOK). The contract is formed between two parties, the employer or client, and the contractor. This agreement takes place early on in the implementation phase of the project life cycle (PLC) and is the result of a procurement process. The four contracts reviewed vary in the way they address the project management knowledge areas and the study revealed that knowledge and experience are vital to compile a sound procurement document. The goal of the building contract should be to protect the parties who enter into the agreement. The study recommends that the contract should be seen as the project implementation plan (PIP) and that the implementation phase is only a section within the greater PLC. Parties should be familiar with it and know their responsibilities. The employer’s agent should take responsibility as the project manager on the project and guide the parties through the processes stipulated in the PIP. The PIP or the contract can, however, only be effectively implemented if the required time, budget, and experience is devoted to its implementation and maintenance. ___________________________________________________________________
𝑨𝒇𝒓𝒊𝒌𝒂𝒂𝒏𝒔 Die konstruksiekontrak, spesifiek van geboue, word in die studie ondersoek. Die bestuur en die beskerming van die partye se belange word as die belangrikste funksies van ’n boukontrak beskou. Hierdie navorsing ondersoek die strukture van die mees algemene boukontrakte in Suid-Afrika. Die kontrakte word met die projek- en konstruksiebestuursareas vergelyk. Vier stelle of groepe kontrakte word deur die Konstruksie-industrie Ontwikkelingsraad of te wel die “Construction Industry Development Board” (CIDB) voorgestel: die Joint Building Contracts Committee (JBCC), die New Engineering Contract (NEC), die General Conditions of Contract for Construction Works (GCC) en die Fédération Intranationale des Ingénieurs-Conseils (FIDIC). Die studie fokus spesifiek op elkeen van hierdie boukontrakte. By nadere ondersoek is gevind dat die kontrakte se strukture ooreenstem met dié van die “Project Management Body of Knowledge” (PMBOK). Die toepaslike kontrak word tussen twee partye gesluit, naamlik die werkgewer of die kliënt, en die kontrakteur. Die ooreenkoms vind aan die begin van die implementeringsfase van die projeklewensiklus plaas en is die gevolg van ’n spesifieke aankoopproses. Die vier kontrakte verskil wel in die manier waarop projekbestuur se kennisafdelings aangespreek word. Die studie het getoon dat ondervinding en kennis nodig is om die aankoopdokument saam te stel. Die doel van die kontrak is om beide partye te beskerm. Die studie stel voor dat die kontrak as die projekimplementeringsplan beskou moet word en dat die implementeringsfase slegs ’n deel is van die groter projeklewensiklus. Partye moet die plan ken en weet wat hulle verantwoordelikhede is. Die kliënt se agent moet verantwoordelikheid as die projekbestuurder aanvaar en moet die partye ten opsigte van die projekimplementeringsplan lei. Die projekimplementeringsplan oftewel die kontrak, kan slegs suksesvol geïmplementeer word indien die nodige tyd, geld, en ondervinding aangewend word om die plan te implementeer en te monitor. ___________________________________________________________________
Description
Dissertation (M.Sc. (Quantity Surveying and Construction Management))--University of the Free State, 2017
Keywords
Project management, Building contract, Project life cycle, Project implementation plan, Construction contracts -- South Africa
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