Contract administrators’ perspective on claim events under the JBCC principal building agreement in South Africa

Abstract

The JBCC Principal Building Agreement is widely used as the primary building agreement in South Africa, and claims are frequently encountered in construction projects where this contract is implemented. This study, therefore, set out to determine the perspective of principal agents, who are professional consultants acting as contract administrators within the South African construction industry, regarding the magnitude of claim incidents under the JBCC Principal Building Agreement. The research adopted a quantitative approach, involving the completion of a virtual structured questionnaire by 164 respondents who were practising principal agents in South Africa. The collected data was thereafter analysed by means of descriptive statistics. The following claim events were identified as noteworthy in terms of regularity and severity: adverse weather, the execution of additional work, rectification of physical losses and damages to the works where contractors are not at risk, causes beyond the reasonable control of contractors, and the inability to obtain materials and goods in time. By identifying the knowledge void regarding the frequency and impact of claims in South Africa under the JBCC Principal Building Agreement, this study provides contracting parties with updated insights that can assist them in averting and effectively managing such claims, thereby minimising damages to all parties involved. Furthermore, while the study was confined to South Africa, the findings may still hold relevance for users of the contract in other countries.