Project performance affecting claim events under the JBCC Principal Building Agreement in South Africa

Abstract

The JBCC Principal Building Agreement is the leading construction contract in South Africa, and it is common for claims to arise during The Joint Building Contracts Committee Principal Building Agreement is the leading construction contract in South Africa, and it is common for claims to arise during projects where this agreement is used. This research aimed to investigate the claim events that most severely impact project performance under the agreement in the South African construction industry. The study employed a quantitative research approach and distributed an online structured questionnaire that was completed by 380 respondents, which included principal agent practitioners and contractors in South Africa. The collected data was analysed using descriptive statistics. The results revealed that the most impactful claim events are contract instructions, additional work, and adverse weather. On the other hand, the least impactful claim events are the exercise of statutory power, opening and testing of work, materials and goods, and the insolvency of a nominated subcontractor. This study addresses the knowledge gap around the types of claims that most severely impact project performance under the Joint Building Contracts Committee Principal Building Agreement in South Africa. It provides especially principal agents with a good base level understanding of the critical claims under this agreement, assisting them to prevent and effectively manage such claims to mitigate potential damages for all parties involved. Although this study focused on South Africa, the findings may also be applicable to users of the agreement in other contextual settings especially neighbouring countries.