STAKEHOLDERS FORUM REPORT - HELD AT THE OFFICES OF MASTER BUILDERS KWAZULU-NATAL

In Attendance:

Brandon Abdinor - Master Builders Association            (Facilitating)

Bruce Lyle - Master Builders Association

Neels Nortjé - Master Builders Association

Mike Vernon - FEM

Pat Draper -  Institute of Painting Contractors

Colin Armstrong - Institute of Timber Construction

Miles Pennington -  Institute of Architects

Garth Gamble - Concrete Society of SA

Chris Greager - Electrical Contractors Association

Thomas Drinkwater - Waterproofing Institution

Apologies :

Johan Richards - Institute of Quantity Surveys

Frans van der Walt - Institute of Quantity Surveyors

Steve Brown - I O P S A

Keith Kuhn - SAFCEC

P J Smith - Institute of Painting Contractors

Bruce Clark - Institute of Architects

Grant Smith - Sapoa

The Facilitator advised that the MBA had initiated the forum with a view to creating dialogue between various stakeholders in the construction industry in KwaZulu-Natal.  The first purpose of the forum would be for the various stakeholders to identify common challenges and have the opportunity to formulate a common response to the challenges where possible.  Where the overcoming of the challenges required the lobbying of other parties, there would be strength in the numbers and broad representation of the forum (note SAFCEC).

The second purpose of the forum was to allow for an opportunity to resolve issues between members of the stakeholders represented.  This would allow for the resolution of problems between contractors and subcontractors, or professionals and contractors, at an organised industry level without individual members or enterprises having to tackle these challenges on their own.

SPECIFIC ISSUES

Amendment to JBCC and other standard form contract documentation

 It was generally accepted that most standard form contract documentation, although occasionally flawed, was generally formulated to cater for fairness to all parties.  It was recognised that it is common practice for certain parties, often at the client's insistence, to insist on amendments to the documentation which often amounted to certain parties giving up various rights and protection.  It was generally accepted that such amendments ultimately placed certain parties in difficult or disadvantaged positions and that this may result in problems arising during the contract which could in turn result in all parties ultimately experiencing difficulties. 

Issues with local authorities

There was general acceptance of the fact that stakeholders often experience difficulties with local authorities, in particular with regard to the approval of plans.  It was generally agreed that it would be constructive for the forum to attempt to establish constructive relationships with the local authorities with a view to ironing out difficulties on an informal basis through the co-operation of a few key individuals.  It was generally agreed that the eThekwini Council would be a good starting point as the City Manager was going to be addressing the MBA at its AGM and that this may provide a platform for a constructive relationship going forward.

Unrealistic timelines

It was generally accepted that clients wanted work to be performed in the shortest time possible.  It was further recognised that an additional issue was that many contractors, particularly smaller ones, generally failed to provide programmes after a tender had been accepted and that this often placed principal agents in difficult positions.  It was suggested that the Association could embark on a campaign of educating and empowering its members to be able complete programmes with the appropriate guidance.  It was further suggested that perhaps the Association could enter into a commercial venture whereby it actually drew up programmes for members.  The Association undertook to explore these possibilities.

Bias by architects/quantity surveyors/ consulting engineers/principal agents

It was accepted that, given that these professionals were working on behalf of clients, there would generally be a degree of bias in favour of the client even though most professionals attempted to avoid this as much as possible.

Waiver of Liens

There was some discussion around this and general agreement that contractors who held Liens should not waive them if at all possible to protect their interests.  Some further research would be conducted on whether subcontractors generally held Liens or not.

JBCC

There was some discussion around the dispute resolution mechanisms of the JBCC documents.  One stakeholder advised that he had experienced certain findings which indicated that if a dispute existed purely out of non-payment, it was likely that the dispute would be found to be incapable of being arbitrated upon and that the contractor would need to approach a competent Court for assistance.

Health and Safety

It was pointed out that it was a legal requirement that tenders included provisions for health and safety specifications and it was generally agreed that a culture of health and safety would need to be engendered in role players in the industry. 

General

There was a concern expressed that standards are dropping generally and that mathematics was being done away with as an entrance requirement for engineering qualifications. It was agreed that the industry needed to play a role in the maintenance of standards generally.

Way forward

It was generally agreed that the forum was a constructive platform which could yield good results in future and that it would be worth attempting to hold the meetings on a two monthly basis in order to discuss these matters and attempt to address them.

Brandon Abdinor | Executive Director Master Builders KwaZulu-Natal