The Conflict Between the Client and the Building Contractor - Research Paper Example

?CONSTRUCTION CONTRACTS Content Introduction Findings Earlier possession of part of the Project Access to the Site Delay to allow for archaeological investigations Additional Information for the construction of the ceiling Conclusions Recommendations Introduction New university seeks to construct a building that will serve both an accommodation, and teaching function. The building will also offer restaurant facilities to the university community. The estimated cost for this five-storey building project is ?30.0 million, and the client wants to ensure strict financial control in the building process. In the course of construction, there are four events that occur, and lead to conflict between the client, and the building contractor. The tender document involved in this case contains a given completion date. Prior to signing of the contract, however, the client inquires of the possibility of taking possession of portions of the building prior to the given completion date. The client is considering taking ownership of the third and fifth floors before the completion date. The client, therefore, wants to know the means that may ensure this endeavour, and the pitfalls that may be met. This is the first scenario faced. The second situation involves hindrances to the building process as instigated by the client. The contractors on the starting day find materials blocking the entrance to the building site. These materials are not removed from the main entrance of the site for a period of one week, and this hampers the execution of earlier laid out plans. This is the second situation that arises in this particular case. The third issue arises when construction is underway. As the construction workers excavate the substructure works, they find ancient Roman coins. This is a matter of interest to archaeologists, and they visit the site to do more analysis of the discovered cons. This process delays the project by one month, to permit the archaeological investigation work to be completed. The fourth occurrence is encountered during the stage of making internal finishes. The contractor seeks for more information from the client, in regards to the suspended ceiling system. This report has the objective of examining the different scenarios that arose during the building process. This report finds basis in the fact that there was a contract between the construction company contracted for the project, and management of the university. This report seeks to analyze the issues that led to conflict between the concerned parties, and identify possible solutions. In addition to these aspects, the report also has the objective of formally advising the client on the contract clauses, provisions, and common law authorities that are applicable to the different issues encountered during the construction process. Findings Earlier possession of part of the project The completion date may be adjusted at the request of the client. In making such a request, however, the client has to give the contractor a twelve-week period to respond to the request. This condition may present either a challenge or advantage for the client, depending on the response obtained from the contractor. The pitfall that is evident in this scenario is; there is no assurance of the contractor being able to make such adjustments. In this particular project, the client desires to take ownership of the third and fifth floors before the indicated completion date. If the floors required were the initial ones, this proposition would seem likely. The client, however, seeks to occupy the middle, and the top-most floors. The challenge is as to how the building process will proceed once the client occupies these floors. To make it easier, the floors that would increase the feasibility of the proposition would be the bottom floors of the building. Access to the site On the day scheduled for the building project to commence, the contractors encounter a problem. The client has some materials blocking the main entrance to the site. According to the empowerment clause, the contractor can only issue instructions under his mandate. Going against this is an act indicating breach of contract1. The only way that it is possible for the contractor to order for these materials blocking the main entrance to the site is by consulting the Architect/ Contract Administrator (A/CA). The A/CA then issues instructions in writing allowing for the contractor to execute the instructions. The materials in this issue were left by the client, thus full responsibility for the consequences. For the one week that these materials hindered access to the building site, the contractor is not to be held accountable. The contractor will follow the given time schedule. There will, however, be a delay of the one week lost waiting for the entrance to be cleared. Delay to allow for archaeological Investigations In the course of the project, the contractors encounter a discovery that interests the archaeological authorities. Archaeological investigation works to look into the matter of ancient Roman coins found in the course of the project lead to a one month delay in the program of the contractor. This delay, however, is not catered to in the initial contract since the discovery is an unseen matter. Such an experience entitles the Contractor to time extension, as Clause 2.20 provides2. In order to obtain an extension of time, however, the contractor should liaise with the archaeology department to get documents indicating time frame for their investigations. Failure to do so, under clause 2.20, the contractor has no assurance of time extension. Additional Information of the Ceiling Clause 2.3 necessitates the Architect to provide the Contractor with instructions including the Contract drawings3. the building of the suspended ceiling requires precision on the part of the contractor. The contractor also follows specifications of the drawings from the client. If the contractor observes the need of additional information or clarification for the project to be completed as required, the concerned parties should comply. If discrepancies arise in future the contractor may be entitled to claim expense and loss. The contractor faces serious risks if he does the finishes without having a written document to support his actions. Conclusion Of the four incidences that arise in the building project of the university, the contractor has guidelines on how to approach the matter. Though the needs of the clients have to be carried out, there are other factors that are to be considered. The contractor has authorities to address concerns that may result in delays of the project completion. Before signing the contract, all parties involved should express their concerns in the matter. An example is the inquiry on the possibility of completion by sections to enable ownership for the client. Delays are bound to occur from any of the involved parties, or unforeseen sources. When the need for delay arises, the contractor should contact the A/CA. The A/CA offers a means for which the contract is upheld, while at the same time catering to variations in the project. The contractor should ensure that the relevant documents to allow for the completion of the project are available. If the client or architect fails to offer such documents, any eventuality is viewed as an error in the contract that all parties are aware of. Recommendations Earlier possession of part of the project Taking possession of parts of the works before completion is possible. It is advisable that the client expresses his wishes to the contractor prior to signing of the contract. The contract will indicate how the different sections will be completed. It will also state the expected dates for the possession, and completion of works. Extensions of time are given for the different sections. This guides the contractor in the execution, and management of the project activities. Access to the site With the client causing inaccessibility to the building site by leaving materials at the main entrance, he is liable for the eventual delays. The contractor, however, has a responsibility in the issue too. As per the provisions of the JCT/05, the contractor is mandated to notify the A/CA of any delays4. It is the first day of work, and since the contractor is aware of the incident, he has an obligation of notifying the A/CA. By failing to do so, the Contractor is considered to have breached this obligation. The client is, thus, advised to contact the A/CA once aware of the consequences of his actions. In so doing, the client is informed of the implications o the estimated project time. Archaeological Investigations The archaeological investigations to be made by the department of archaeology cause a delay in the project time by one month. The contractor is advised to liaise with the relevant authorities and obtain the legal documents proving the same. The authorities also ought to present documents indicating the time expected to be sufficient for their investigations. With all the supporting documents, the contractor should present the matter to the A/CA who will reach a decision on the matter5. Additional Information for ceiling construction In observance of Clause 1.3, the client is advised to offer the contractor with drawings that will enable the construction of the suspended ceiling. Such drawings constitute Contract Documents. Since the Contractor is held responsible only as per the documents availed to him, provision of the Contract drawings is necessary. The contract will also be the only indicator of the performance expected of the contractor6. References Atkinson, D., 2000. Billof Quantities. [Online] Available at: http://www.atkinson-law.com/library/article.php?id=125#JCT%201998 [Accessed 16 March 2012]. Doig, D., 2006. Changes, Revisions, and Amenments Arsing from the Update to the JCT Suite of Contracts Published in the JCT 05 Form. [Online] Available at: http://www.solomonseurope.co.uk/uploadedfiles/PDFs/JCT_Suite.pdf [Accessed 16 March 2012]. Dunn, M. H., 2011. Brief Notes on the JCT standard building Contract 2005 (SBC/ Q05), Bradford: Rex Procter & Partners. Murdoch, J. & Hughes, W., 2008. Construction Contracts: Law and Management. 4th ed. New York, NY: Routledge. Read More