Every builder and contractor needs an
effective and robust inclement weather management system. Whether it is summer,
winter, spring or autumn, the Australian weather can get bad. When quoting a
job, I have not come across any way of predicting how the weather will impact
the construction program, the sequence of work or the increase in costs which
stems from inclement weather delay.
Inclement Weather Defined – Construction Contracts
In building and construction contracts, the
term inclement weather is often defined. Inclement weather is any weather that
may impede or prevent works from being conducted in accordance with the
contract. This definition is broad for many reasons.
In this definition, I use the term impede
loosely to include interruptions to or slowing down of work. Prevent means just
that, to stop. Both apply to a period of time and both apply to works being
conducted in accordance with the contract.
3
Limbs to Define Inclement Weather
For construction contracts, the definition
of inclement weather can be broken down into 3 limbs.
1.
There must be a weather event.
2.
That event must either
interrupt or impede works.
3.
The works being interrupted or
impeded must be the subject of a construction contract.
The
Small Builders Inclement Weather Management System
Small Builders and commercial contractors
should have an effective inclement weather management system in place to help
them run a sustainable business. There are many obvious reasons for having an
inclement weather management system. These reasons include to deliver on your
gross margin estimate (noting overhead costs continue to accrue) and to prevent
exposure to delay damages.
“Small Builders and commercial contractors should have an effective
inclement weather management system in place to help them run a sustainable
business.”
Contracts
You must ensure you draft your head
contracts, subcontracts, and supply contracts to manage the inclement weather
risks. You need to ensure you understand the rights the contract provides you
and the other contracting parties. You need to understand how to comply with
your contractual obligations.
The Small Builders Inclement Weather
Management System can help you manage inclement weather risks.
Construction
Program
Often your contract requires updating the
construction program after an inclement weather event. Even if updating your
construction program is not contractually required, it is good business practice
to communicate effectively with all project stakeholders. Part of good
communication is to update the construction program and any sequence of work
regularly to ensure these documents are up-to-date.
Small Builders software has a construction
program that can help small builders and contractors make and maintain updated
construction programs.
Project
Administration
It is absolutely critical to construction
work that the builder, all contractors, all suppliers and all workers are
communicating. Verbal communication has been the industry norm for very many
years. However, in recent years it has become critical to also formally send
notices to ensure proper documentation.
The Small Builders software can help you
serve compliant notices to manage weather risks.
Variations
Depending on what your contract says, you
may be entitled to a variation to your original contract sum. The basis for the
variation includes:
1.
out of sequence work;
2.
increased costs like industry
change and overhead costs accrued; and
3.
damage to works.
An effective inclement weather management
system can help you manage your risks and costs and claim for variation works.
Out
of Sequence Work
Out of sequence work is important to
consider in carrying out the project after a weather event. Some trades, for
example, may be able to continue with their program but others may not be able
to continue for some days after the weather event passes.
It is important that all interested parties
to the project communicate with each other to ensure they can best manage any
out of sequence work.
Efficiency
It is important that your inclement weather
management system is easy to use and can be carried out quickly. If the system
is either difficult to use or too time consuming, you may have less
stakeholders complying with their obligations. Also, a lack of compliance and a
delayed project has often caused or contributed to disputes.
Work
Health and Safety
You may be required to update the project
safety management plan if the weather event changed the nature or condition of
the project site. Your site work health and safety officer and team should
consult with all stakeholders after a significant inclement weather event to
determine if the WHS plan or WHS control measures need to be updated.
Quotes
A construction contract is important. However, the basis for the parties
contracting often arises from the quote. A good inclement weather system
addresses possible weather risk starting from the quote.
Small
Builders Inclement Weather Management System
Small Builders building software has an
excellent inclement weather management system in the standard package. One
inclement weather event during your project will make having the Small Builders
software an excellent investment.
Small Builders can help if you want to find
out more about inclement weather or inclement weather systems.
Good information.
ReplyDeletesmall builders