In construction projects undertaken in terms of the Joint Building Contractors Committee (JBCC) Principal Building Agreements, an employer may, in certain instances, depending on the size of the project, make separate appointments of both a project manager and principal agent, as opposed to a project manager assuming both roles, note law firm Cliffe Dekker Hofmeyr (CDH) Construction and Engineering Sector director Clive Rumsey and Construction and Engineering Sector associate Sethu Khumalo.

They state that, in a case where separate appointments have been made, there is frequently confusion as to where the responsibilities of the project manager start and end, and whether these overlap with the responsibility of a principal agent.

To clarify the scope and obligations for each party, it is important to unpack the general responsibilities associated with each role.

In standard forms of professional services contracts, which are commonly used in the construction industry, such as the Client/Consultant Professional Services Agreement (PROCSA), both the project manager and principal agent are required to provide services reasonably required as set out in Annexure B [Scope of Services] to that form of contract.
Both project managers and principal agents, in signing the PROCSA agreement, are under an overarching duty to exercise reasonable professional skill, care and diligence in the performance of their obligations in terms of that Agreement, note Rumsey and Khumalo.

However, where a project manager and a principal agent have separate appointments, a clear distinction needs to be made as to their respective scope of services and consequent obligations.

In terms of the scope of services provided for in the PROCSA agreement, the services are divided into the following stages: Inception, Concept and Viability, Design Development, Documentation and Procurement, Construction and, finally, Close Out, they explain.

In stages one through three, the principal agent does not provide any services and there are no deliverables expected.

The principal agent's first deliverable arises under Stage 4, or Documentation and Procurement, in terms of which the principal agent is to inter alia, advise the client in conjunction with the other consultants on appropriate insurances, the management and procurement processes and recommended contractor(s) for approval by the client.

The main functions of the principal agent start with Stage 5, or Construction.

In contrast, the project manager's responsibilities start from Stage 1, Inception, with inter alia the following responsibilities: The project brief, agreed scope of work, agreed services, signed agreements, project initiation programme, and recording of meetings.

Rumsey and Khumalo elaborate, noting that, at the Concept and Viability stage the project manager's deliverables include, inter alia, ensuring that there are signed client and other consultant agreements, preparing the development programme, attending to the preliminary documentation programme and the indicative construction programme.

During the Design Development stage, the project manager is required to attend to procurement and documentation, agree on formats and procedures for monitoring of cost controls by other consultants, facilitating design reviews for compliance and cost control and facilitate timeous technical coordination meetings and other meetings.

"Up to Stage 3, the project manager takes full responsibility for these services, and will be held responsible by the client should he/she fail to undertake the services in accordance with the terms of the Agreement and exercising reasonable professional skill, care, and diligence,” say Rumsey and Khumalo.

During Documentation and Procurement, the project manager has inter alia the following deliverables: prepare a clear procurement programme, tender and contract conditions being agreed and finalised, approval of tenders following on recommendations by the project manager, coordinate and assemble the contract documents for signature, advise the client on the appropriate insurances, and monitoring delivery of information to other consultants, among others.

Consequently, during Stage 4 the overlap between the services of the project manager and principal agent becomes apparent.

Once the project reaches Construction there is a distinct overlap between the project manager and principal agent as to their respective functions, with both being responsible for inter alia, the approved construction programme, payment certificates and progress reports. The same pattern of overlap applies at Stage 6 Close Out, say Rumsey and Khumalo.

As a result, it is important that, in any project where a project manager and principal agent are being separately appointed that both consultants understand the services that they are contractually required to provide and their respective obligations in terms of the agreement.

To demarcate the obligations more clearly, a responsibility matrix should be prepared in which a clear distinction is made between the consultants’ responsibilities. This matrix also assists the client in determining who is responsible for what services.