If a building contractor has not built a structure as the client had planned, the contractor will probably be blamed for what could be a costly “mistake”. But the contractor’s response is likely to be: “I just built what was described in the contract documents”.

So, what exactly is a “mistake” when it comes to building contracts? Uwe Putlitz, Chief Executive Officer of the Joint Building Contracts Committee (JBCC), here provides some guidelines on a rather complex matter:

The building industry and may other industries generally use standard-form contracts that have evolved over time with input from all users to cover most scenarios thereby making mistakes in the execution of the contract less likely. But project-specific conditions may well end up being exceptions to this rule and require special attention. In such cases, all parties concerned must consider if the following criteria had been attended to and clearly described:

How well did the client describe the project requirements to the architect and other members of the professional team – not only the size of spaces and the relationship to one another, but also the choice of finishes or, for example, the use of technology to optimise the use of energy?

• Has the project budget been clearly defined – with an allowance for unforeseen items?
• Have all necessary statutory approvals been obtained?
• Where applicable, have neighbouring owners or users of properties been consulted?
• How complete are the drawings?
• How complete is the specification?

Industry practice is to call for quotations and so it must also be asked whether the lowest priced tender is realistic for the proposed project? The owner of the proposed structure should also inquire about the experience and reputation of the proposed contractor in this particular construction field and location.  

After a contractor has been appointed, his or her work should be monitored:  does he or she regularly carry out the work or are there stoppages due to poor management of staff, equipment on site, or availability of materials? And is the quality of the contractor’s work as described in the specification and on the drawings?

To avoid mistakes, the parties involved including the client, the professional team and the contractor and subcontractors must also communicate regularly to ensure compliance and to avoid possible problems. And, should problems arise, they must be swiftly dealt with.

When delays occur on site, the question must be whether they are caused by lack of information, non-payment of certified amounts to the contractor, or changes in the scope of the project – all ‘mistakes’ by the client? If so, the contractor would be entitled to a revision of the date for practical completion, probably also an adjustment of the contract value, as well as interest on late payments.

Where stoppages occur due to poor management of the contractor’s staff, equipment on site, or non-availability of materials on site – and where the quality of the work is not as described in the specification and on the drawings - the errors are probably caused by the contractor. If so, the client may be entitled to recover damages from the contractor for late completion of the works and insist on him or her rectifying poor workmanship.