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Abstract
This article reviews construction project management and building contracts in South Africa. It introduces general information and findings on the topic, forming part of a broader in-depth study, which proves difficult to encapsulate in one single article. The novice might perceive contract management, project management, and construction management to be the same concept. To clarify these concepts, the evolution of construction contracts and project management was studied to identify possible similarities between these concepts. This article commences with a brief history prior to a schematic analysis of the general characteristics of construction contracts and project management. It investigates the application of these concepts within South Africa and compares the general structure of the main contracts used within South Africa. This general investigation clearly shows that the standard conditions of contracts used in South Africa have similar structures to the main construction project management knowledge areas recognised by the Project Management Institute (PMI). The article also reviews the four general conditions of contracts endorsed by the Construction Industry Development Board (CIDB) in South Africa and investigates the general clauses and themes of these contracts. The Construction Contract should consider all the Project Life-Cycle (PLC) stages. The Construction Contract should further be regarded as the Project Implementation Plan (PIP), on which the control procedures during construction are based. With the understanding of the evolution of the two streams (contracts and management), their relevance, goal, dependencies and responsibilities may be understood better. This may enhance the professional manner in which the management of the entire Project Life-Cycle (PLC) is implemented and approached. Keywords: Agreement, construction, contract(s), general conditions, project management, project life cycle
Highlights
The subsequent literature review focuses on the four main construction conditions of contracts currently utilised in South Africa and their relationship with respect to the Project Management Knowledge Areas (PMKA), as recognised by the Project Management Institute (PMI)
This general investigation clearly shows that the standard conditions of contracts used in South Africa have similar structures to the main construction project management knowledge areas recognised by the Project Management Institute (PMI)
To determine the potential of the construction contract as a means to manage the construction project, it was necessary to find a relationship between the construction contracts most commonly used in South Africa and the project management knowledge areas as defined by the PMI
Summary
Each construction project will dictate the type of agreement that is needed for the specific project (CIDB, 2005: 1-2) It is generally agreed in the construction environment that a successfully completed construction project will comply with the specified quality and will be completed within the allowed time and budget (Cooke & Williams, 2009: 23; Knipe, Van der Waldt, Van Niekerk, Burger & Nell, 2002: 18; Winch, 2010: 71), as agreed upon prior to the commencement of the project. To determine the potential of the construction contract as a means to manage the construction project, it was necessary to find a relationship between the construction contracts most commonly used in South Africa and the project management knowledge areas as defined by the PMI. The construction contract’s ability to assist in the management of the project could be a valuable realisation for all parties involved with the construction contract and could, make an important contribution to the construction industry
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