DEVELOPMENTS AT JBCC AS OF SEPTEMBER 2015
The Technical Committee deals with updating and amendment of JBCC documents. Meetings continue to be held monthly, the last being held on 28 September.
Present business concerns:
· CIDB’s intended Adjudication Rules (which might replace the JBCC Adjudication Rules) and introduction of Regulations to make adjudication provisions compulsory in all construction contracts. The proposal to make compulsory the inclusion of adjudication provisions in all construction contracts is most welcome.
· CIDB’s notified intention to introduce Regulation outlawing “pay when paid” clauses in subcontracts.
· CIDB’s notified intention to introduce Regulations governing prompt payment, for both employer to contractor, and contractor to subcontractor.
· Introduction of a Public Sector/ Organs of State Contract Data with amendments to standard JBCC Edition 6.1 standard PBA provisions.
Unfortunately all of these subjects are moving very slowly.
CIDB has notified that they received many comments on their intended Adjudication Rules. This is not surprising because they were produced without any input from either the professional services sector or the contracting sector. CIDB has now notified that they are likely to take to the end of 2016 to consider and respond to the comments. Unfortunately, once again, there is no sign of allowing the industry to participate in the process.
It is a requirement of the CIDB Act that CIDB operates a ‘Construction Forum’, but no such forum is operational.
Prohibition of Pay when Paid clauses will come, but when is open to speculation. The same applies to Prompt Payment Regulations.
The finalisation of a Public Sector Contract Data document, or alternatively a separate Agreement for public sector use with JBC 2014, is also seriously delayed. Early in 2014 CIDB nominated DPW Pretoria to negotiate terms with JBCC and on 01 April 2014, after a short meeting, full agreement was reached, and only needed endorsement by JBCC. Since then the process has gone backwards, and there is presently no indication of if or when agreement will be reached. Only one meeting was held in the period April 2014 to September 2015.
The construction Industry needs the CIDB. Its objectives are both necessary and supported by the industry. Unfortunately the level of communication is seriously inadequate, much to the detriment of both emerging contractors and the extent to which the industry can serve the needs of the nation.
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