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]