Many contractors have been enquiring how to handle the situation on existing sites as to the provision of additional OHS and PPE requirements.

As the current lockdown could not have been foreseen at the time of tender and the client’s OHS Plan does not make provision for the additional requirements that may come into force before a site will be allowed to reopen, the additional costs will need to be borne by one or both parties to the contract. Our members should therefore follow the following procedure in terms of the JBCC PBA 6.2.

Clause 17.1.4   Compliance with the law, regulations and bylaws (2.1)

OHS requirements will have changed and therefore to comply with the amended regulations and Variation Order should be issued by the Principal Agent.

Once the Variation Order has been received Clause 26 ADJUSTMENT OF THE CONTRACT VALUE AND FINAL ACCOUNT is used to determine the value of the Variation Order.

If the Principal Agent declines to issue a Variation Order a contractor should give notice to the Principal Agent in terms of the following clause:

Clause 26.5   The contractor shall give notice to the principal agent within twenty (20) working days of becoming aware, or ought reasonably to have become aware of expense and /or loss for which provision was not required in the contract sum failing which such claim shall be forfeited

The contractor must take cognisance of the above twenty day period or risk being time barred by the Principal Agent. Once the contractor is in receipt of the additional requirements that are required by law to open the site, notice must be submitted.

Within forty days of the notice being submitted to the Principal Agent the contractor must submit full and substantiated claim for the additional OHS costs all as per the clause below.

Clause 26.6   Following notice (26.5) the contractor shall submit a detailed and substantiated claim for the adjustment of the contract value to the principal agent within forty (40) working days, or such additional period as the principal agent may allow

As  contractors are operating under extremely low margins in this current economy the Association urges you not to neglect your contractual obligations through this very trying period.

Ross Stembridge | Building Services Manager