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Article From Article Directory Database Substance Is Essential In Notifications Of Claims Substance Is Essential In Notifications Of Claims August 26, 2013 | Author: Dirk Markhen | Posted in Legal
The primary role in the execution of the contract as “Engineer” (within the GCC) or “Principle Agent” (within the JBCC) necessitates regular decisions and judgements on the actions on location. This function can be often undervalued and will attract considerable liabilities.


Specialists in the construction and engineering industry are usually employed as the Engineer or Principle Agent. It is required of the specialist fulfilling this important function to be au fait not only with the terms of the contract nike air max 90 clearance , but also the execution thereof.


What are the ramifications of inadequate decision making by the Engineer or Principle Agent under these kinds of construction contracts? One particular example in which the courts talked about the yardstick with which the Engineer or Principle Agent is to be assessed is inside the case of Hawkins & Osborn (South) (Pty) Ltd vs Enviroserve Waste Management. The decision not only sets the current standard in this regard, but also appears to be a warning to Engineers and Principle Agents to act in a sensible manner when conducting themselves as the Employer’s spokesperson on location.


In cases like this, like in many other instances in the building and engineering sector, the Employer (Enviroserve Waste Management) concluded an oral agreement with the Engineer. The Engineer was appointed to watch over and manage particular contract functions.


The Employer then signed a written agreement with a Contractor to perform digging on a particular site. The written contract between the Employer as well as the Service provider included the General Conditions of Contract for Works of Civil Engineering Construction – 6th edition.


The contractor raised a dispute in terms of a “notification” of potential claims communicated to the Engineer within a letter. The Engineer did however not consider the letter as sufficient notification. The outcome of the Engineer’s decision would be a deadlock involving the Employer as well as the Contractor that had to be sorted out by an Arbitrator. The Arbitrator determined that the letter was definitely appropriate notice and that the builder was eligible to lay claim as informed therein.


Because of the Arbitrator’s decision, the Employer had to pay the Contractor’s claim cheap nike air max 90 , but then claimed damages for breach of agreement from the Engineer in the High Court. The Employer structured its claim on an allegation that the Engineer broke the contract by failing to construe the Contractor’s letter as an acceptable notice of the intent to claim payment for additional work as contemplated in clause 50(1) of the GCC.


The initial court established that no break of contract had happened as the Contractor’s letter didn’t constitute proper notice as contemplated in clause 50(1) within the GCC.