SA Affordable Housing July / August 2018 // Issue: 71 | Page 10

ASSOCIATIONS
Principal agents make
or break projects
Successful completion of building projects largely depends on the
competence of the principal agent and it is essential that this key role
player is properly equipped to handle this vital role.
“P
oor principal agency functioning is increasingly
causing disputes and disruptions in South
African building projects. In many cases, the
appointed agent does not have the necessary experience
and is erroneously appointed,” says Uwe Putlitz, CEO of the
Joint Building Contracts Committee (JBCC).
“There is no specialised training course or recognised
qualification that a principal agent must complete. But to
properly fulfil his or her duties, the agent must at the least
have a Bachelor’s degree in architecture, building science,
engineering or quantity surveying. It is also necessary for
the agent to have professional registration with a statutory
body such as the South African Council for the Project and
Construction Management Professions.”
The training is vital – and so is the personality traits of the
principal agent. “This is not a job for the meek and mild, nor
the disorganised. Effective principal agents should be able
to deal with all involved with the contract authoritatively
and methodically. Contract administration requires the
management of a vast amount information in a manner
where it can be retrieved and monitored at short notice,
using the appropriate technological aids to suit the
nature of a project.”
In carrying out the agency function, the principal agent
must ensure that:
1. The parties to the contract have complied with
legal and tender formalities;
2. The construction team have timeously been issued
with all relevant construction information;
3. The construction team work at the required pace to
complete the project by the specified date;
4. The construction team achieve specified quality
standards;
5. The construction team is paid fairly – and on time –
for work correctly completed;
6. Non-compliant aspects of the works are promptly
dealt with as they arise;
7. Potential claims for a revision of the date for
ractical completion is handled timeously;
8. Potential claims for an adjustment of the contract
value is also promptly dealt with; and
9. The project is concluded as specified, all
administrative and other compliance certificates
are recorded, and all parties are paid their due.
The principal agent must act proactively to avoid
potential disputes. This requires regular monitoring of
the execution of the works, liaison with all stakeholders,
and dealing with all claims competently and within the
time constraints of the standard form contract used.
Here, the second professional obligation of the
principal agent as laid down in court comes to the
fore when the employer may have expectations not
provided for in the contract documentation.
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JULY - AUGUST 2018
AFFORDABLE
SA HOUSING