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

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. ___________________________________________________________________