Subcontractors are often last in queues when it comes to recognition and legitimate treatment, despite their tackling of important fractions of building and construction work.
Uwe Putiltz, CEO of the Joint Building Contracts Committee (JBCC), speaks of the JBCC’s Principal Building Agreement (PBA) and the Selected Subcontract Agreement (NSSA) that are both designed to link the employer with the contractor and sub-contractor for the execution of the works.
The documents also contain the respective responsibilities as well as each party’s rights. Penalties for failure to uphold one’s responsibilities have also been clearly outlined.
However, Putlitz says that in spite of these agreements, sales statistics and liaison with the building industry shows that many contractors do not appoint subcontractors using the NSSA.
On the other hand when they do refer to the agreement they are quick to put on record that some of the listed clauses do not apply to the subcontractor. In most cases, the said clauses generally contain important rights of the sub-contractor like the period for and method of payment.
All JBCC agreements require a principal agent be appointed by the employer as a neutral party in order to administer the agreement fairly between the employer and the contractor and subcontractors. However, when this role is fulfilled by the employer or a main contractor as it is the case more often than not, its execution will most likely be partial, with the subcontractor the most likely to suffer.
As a result, many subcontractors start work without necessarily having seen a signed copy of the original subcontract agreement. Various administration forms dealing with payment are also rarely issued with time limits stipulated in the contract and as a result end up making late payments- if any.
JBCC Agreements are designed to serve both contractors and subcontractors fairly and to prevent unfair practices in both their interests. Conversely, subcontractors sadly fear lack of work should they query the lack of comprehensive contract documentation and procedures.
Putlitz insists that since they carry out a major portion of building and construction work, subcontractors must insist on inclusive treatment when it comes to contractual agreements.
