The implementation of projects within the construction industry is a complex activity and not an exact science. In most cases, the structure is the result of joint efforts and close cooperation between various construction stakeholders, each with their own specific roles/tasks.
On the one hand, ‘contracting operations’ relate to the intellectual services provided by architects, engineers or engineering agencies, but on the other hand, they refer to the physical activities/operations executed by the contractor(s) on site.
Irrespective of which role the construction stakeholder fulfils, a carefully worded agreement will be the basis for ongoing cooperation, and for any possible liabilities resulting from a potential failure to provide the agreed services.
Traditionally, this involves a ten-year liability clause and joint responsibility for minor hidden defects. In practice, however, it has been demonstrated that it is not always limited to this.
In other words, the construction stakeholders will be confronted with various problems of a diverse nature, including professional liabilities, disciplinary proceedings, bankruptcies, etc. Moreover, every construction stakeholder will be familiar with their own specific difficulties and particularities.
The architect’s profession, for example, has been protected and highly regulated since the introduction of the Act dated 20 February 1939. Since the introduction of the Act dated 15 February 2006, also referred to as the ‘Laruelle Act’, the protection of the architect’s profession within the framework of a legal entity has changed.
The Breyne Act also provides extensive protection for a client who relies on the services of a general contractor to execute building works. The law compels the contractor to notify the client concerning important aspects of the agreement, to set a guarantee, etc. It also requires the developer, in addition to complying with several specific notification obligations, to only request payment in instalments depending on the claim associated with the operations.
The FPS Economy has also laid down a number of conditions contractors have to comply with in order to qualify for public procurement projects. They include, among others, technical ability, financial resources and professional integrity.
This is by no means a comprehensive list. There are many more regulations in place that apply to this, which is why our offices, using our experience and expertise, would like to support you in all aspects of ‘contracting operations’ within the construction industry.