Poor supervision of a building contract

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 Poor supervision of a building contract can have serious financial consequences.

Anybody involved in a build project will undoubtedly have heard of a JCT Contract.  In fact, a suite of contracts have been prepared by the Joint Contracts Tribunal. They are designed to “facilitate the process of delivering a building project. In simple terms they set out the responsibilities of all the parties within the process and their obligations to each other”.

One of the recommendations in a JCT Contract is the appointment of a Contract Administrator (known as a Project Manager under NEC Contracts) to act as the client’s representative throughout the project and oversee the works.  Customarily, the role will go to the likes of a surveyor or an architect, but it can be any number of professions.

The work they undertake will invariably be to:

  • invite and process tenders;
  • oversee construction progress;
  • co-ordinate with site inspectors;
  • identify and agree defects;
  • issue the various certificates required; and
  • generally act as liaison between all the parties.

Their brief can be as wide or as limited as the client wishes, but if a Contract Administrator or Project Manager fails to supervise or administer the contract, things can go seriously wrong.

Among the problems arising from poor supervision of a building contract are:

  • Failure to ensure the contract is signed;
  • Failure to notice or report on building defects;
  • Failure to comply with the timetable;
  • Biased decisions;
  • Allowing an overrun on costs;
  • Negligently issuing Interim or Final Certificates;
  • Failure to ensure insurance was in place; and
  • Recommending unreliable contractors.

All of those (and more) could be considered negligent.

And where there is negligence, invariably a financial loss will result. An overrun on the project; additional build costs; inability to recover against the main contractor; having a build fail due to incompetence are all factors that are likely to have far reaching costs consequences for the client.

If you suffer financial losses exceeding £10,000 due to poor supervision of a building contract then call us for a free case assessment on 0808 139 1606 or email us at [email protected]