Risks Pertaining to Contractors in the JBCC Building Contract

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Contractors Risk in the JBCC (PBA)

Construction projects have an abundance of risk, contractors cope with it and owners pay for it.

The construction industry is subject to more risk than any other industry.

Taking a project from initial investment appraisal to completion and into use is a complex and time-consuming design and construction process.

It requires a multitude of people with different skills and a great deal of effort to co-ordinate a wide ranges of disparate, yet interrelated, activities.

For years the South African building industry had a very poor reputation in managing construction risks.

These risks could be prevented or reduced if management takes action at early stages of the project life cycle.

In order to overcome these limitations and improve the image of the South African construction industry, this research developed an innovative framework to enable construction contractors to identify, quantify and classify the risks associated with the Joint Building Contracts Committee (JBCC) Principal Building Agreement (PBA).

This will assist contractors to make informed decisions and enable them to develop a particular course of action to mitigate the effects of these risks.

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