When selecting a building contractor for your next building project, whether planning new construction or renovating an existing building, you should consider teaming up with a registered member of the Master Builders Association.
Master Builders South Africa (MBSA) is the leading national representative body in the building and construction industry in South Africa. It operates as a federation of registered employer associations representing contractors and employers in the construction industry and is regulated in terms of Section 107 of the Labour Relations Act 66 of 1995. The federation's nine master builders associations and three affiliate associations represent more than 4 000 building contractors and employers countrywide.
MBSA represents its members on national bodies and lobbies the national government on legislative and other policy issues. It also provides a range of services to members, including ongoing training, legal, labour relations, building codes and standards and regulatory compliance matters that affect the construction industry.
Executive director of the Master Builders & Allied Trades Association of the Western Cape (MBAWC), Allen Bodill, says that by employing a master builder, homeowners are assured of working with a contractor whose principal’s credentials have been verified by experienced industry professionals.
“There are many potential risks to erecting a new building or carrying out alterations and additions to existing structures. Contractors affiliated with the MBSA commit to complying with the association's code of ethics, which is designed to achieve a high standard of workmanship and customer satisfaction," he says.
Members include companies across the spectrum of service providers, such as builders, building sub-contractors, material suppliers and manufacturers of building materials. All members are required to comply with the Building Industry Bargaining Council Collective Agreements, which regulate rates of pay and terms and conditions of employment in the local construction industry.
“The association also offers constant skills, supervisory and management training programmes for members’ employees,” says Bodill.
He emphasises that meticulous attention to detail is crucial in any building project's planning and design stage. This results in comprehensive and clear drawings, specifications and schedules of finishes when presenting information to prospective builders.
“When inviting tenders and appointing contractors, you need to review the track record of each tenderer - including financial standing and recent references - and those of the appointed professional agents administering the project on your behalf.
“Make sure you get detailed cost estimates before committing to any contractor. A detailed priced bill of quantities should be prepared by a qualified quantity surveyor. Any plan and specification tender must describe the scope of work in detail and must contain descriptions of materials and schedule of finishes permitted in the builder’s price.”
He advises homeowners to exercise extreme caution when paying out deposits before any work has been done or before ownership of any materials has been legally handed over by a contractor.
“If you don’t employ a professional agent to administer the project on your behalf, you should at least get professional advice concerning the appropriate form of contract to sign with the builder. You should ensure that all this documentation is in place before work starts and before making any payments.
“You should also ensure that the work is carried out under cover of standard contractual documents which are widely used in the industry and which have been tested in law.”
These standard documents are available from the regional MBSA offices. They set out in detail the rights and obligations of each party and cover vitally important aspects such as completion dates, payment intervals, retentions, insurance risks, penalties for late completion and workmanship guarantee periods, among many other often overlooked aspects of building projects.
Bodill says caution should also be exercised when making any changes to these standard documents, as this may result in significant and unintended consequences - particularly when balancing risk between the contracting parties.
Legalities
He says you should ensure the contractor you choose is registered with the necessary statutory bodies, such as the South African Revenue Service (SARS), the National Home Builders Registration Council (NHBRC) - when building a new home - as well the Building Industry Bargaining Council (BIBC). You can verify the contractor’s registration and compliance status on the BIBC’s website.
You should also ensure that the appropriate risk insurances have been placed by the parties, obligated in terms of the building contract for arranging this cover. It’s important to get written confirmation of this in letters of good standing from the relevant insurance broker or underwriter.
In terms of the Occupational Health and Safety Act (OHSA), it is a legal requirement that any contractor carrying out work in the industry has COIDA Insurance Cover (Compensation for Occupational Injuries and Diseases Act) in place for the duration of the project. You should also insist on a letter of good standing confirming that this policy is in full force and effect for the project's duration.
If you are altering or adding to an existing building, you should also advise your own insurer in writing of the cost, nature and anticipated duration of the works. Find out whether you need to take out any special cover to secure your risk.
“It is highly advisable to keep in touch with the project by attending site meetings and communicating regularly with your contracting team, by means of the appropriate format and channels, in keeping with the details described in the building contract document.
“If you follow these guidelines, making your desired building project a reality is within your reach,” says Bodill.
Visit www.mbawc.org.za for a directory listing containing useful information on using a standard building contract document and all MBAWC members.
Writer: Sarah-Jane Meyer