Tuesday 15 September 2015

Inclement Weather Management System

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.

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