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Memo GCC Tutorial 2 - Motorway Levels Case Study

The Construction Manager considers that the levels of a completed section of crusher run base course meets tolerances, but the Employer's Agent's Representative rejects it. [1] During an argument on site about this, the Construction Manager punches the Representative. [2] The Employer's Agent can order the base course to be regraded and recompacted despite any approval by the Representative. [3] The Agent can also order the removal of the Construction Manager due to misconduct.

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47 views

Memo GCC Tutorial 2 - Motorway Levels Case Study

The Construction Manager considers that the levels of a completed section of crusher run base course meets tolerances, but the Employer's Agent's Representative rejects it. [1] During an argument on site about this, the Construction Manager punches the Representative. [2] The Employer's Agent can order the base course to be regraded and recompacted despite any approval by the Representative. [3] The Agent can also order the removal of the Construction Manager due to misconduct.

Uploaded by

hendrybraz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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MEMO

DOCUMENTATION 3: GENERAL CONDITIONS OF CONTRACT (DOC303S)

CASE STUDY:

ABC Contractors are constructing a new motorway for SANRAL under the General
Conditions of Contract 2015.

Halfway through the Contract, the Employer’s Agent’s Representative rejects a completed
section of crusher run base course because he considers that the final levels are outside the
specified tolerances.

The Construction Manager considers that the levels are close enough to these tolerances
and that the Employer’s Agent’s Representative is being unnecessarily fussy. The
Construction Manager points out that the final black top will eliminate the inaccuracies about
which he is concerned and that it will not cost any more as the black top is payable on a
square metre basis. The Employer’s Agent’s Representative is adamant and orders that the
base course be regraded and recompacted.

The two get into a heated argument on site resulting in the Construction Manager punching
the Employer’s Agent’s Representative in the face and the employer’s Agent’s
Representative ends up with a black eye.

Required:

Quote the relevant Clauses of the General Conditions of Contract 2015 to support your
answers. Determine the following:

1. Under which clause of the General Conditions of Contract 2015 is the Contractor’s
representative appointed. What are his/her duties and authority. (7)

Clause 4.12.2- appointment of Construction Manager (CM) by written approval


from the EA.
their duty is to provide supervision over the works being done on site – Clause
4.12.2
CM has authority to receive communication from EA – Clause 4.12.3

2. The circumstances, if any under which the Employer’s Agent’s Representative can
reject work. (4)

The Employer's Agent’s Representative can only reject work if the power to do
so was within his written delegated authority as provided for under Clauses
3.3.2 and 3.3.4

3. Any redress that the Contractor may have over the ruling given by the Employer’s
Agent’s Representative. (5)

Clause 3.3.6 gives Contractor the right to refer to the Employer’s Agent if he is
not happy with the Employer’s Agent’s Representative’s order or instruction. If
he is still not satisfied with EA’s ruling the Contractor can register dispute and
follow the dispute resolution procedures outlined in Clause 10. If he fails to do
so he is bound by the rejection and loses his right of dispute under Cl 10
because he has not pursued the remedy open to him.
4. What action can the Employer’s Agent take if his Representative had accepted the
Contractor’s plea and the Employer’s Agent is not in agreement with such a decision.
(5)
Clause 3.3.3.1 states that Employer's Agent’s Representative has no
power to "relieve the Contractor of any of his duties or obligations unless
authorized under Clauses 3.3.2 and 3.3.4. Even if he has been delegated,
Clause 3.3.3.2 gives EA the power to still disapprove the work and exercise his
powers to do so and reverse the decision of the Employer’s Agent’s
Representative. The EA can therefore order the base course to be regraded
and recompacted despite the approval by the Employer's Agent’s
Representative.
5. What action can the Employer’s Agent take against the Construction Manager. (4)

The EA can exercise his authority to order removal of the Construction


Manager from site due to his unruly behavior. By punching the EAR, the CM is
guilty of misconduct and hence Clause 4.11.2 may be applied by EA.

6. What redress the Contractor has in the event of the Employer’s Agent’s ruling being
unfavourable to Contractor. (10)

Contractor can try and state that this be treated as a Variation Order (VO)
Clause 6.3.2.1. If it was verbal, Contractor should confirm it "as soon as
possible and within 7 days". If EA still rejects this, Contractor may dispute the
EA's decision as to the redoing of the work and proceed in terms of Cl 10.
clause 10.2.1 gives any of the parties opportunity to raise objections within 28
days to any of the decisions made by the EA. This is the EA’s formal decision
mediation, Contractor contending that the additional work must valued and
paid for as a VO.

Further the Contractor must preserve his rights by giving notice as required
under 10.1 if applicable and complying with Clause 10.3.1 if necessary. It is
Contractor’s right to go through all the dispute resolution opportunities
provided for in GCC 2015 i.e Amicable settlement – Clause 10.4

Adjudication – Clause 10.5

Arbitration – Clause 10.7

Court – Clause 10.8

[TOTAL MARKS = 35]

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