37 2 Contractors Agreements

The rules define a client as a person for whom the construction work is performed. For a client who does not work in the construction industry or who does not have the expertise and experience to complete a construction project, meeting these obligations may be impractical. Moreover, it is apparent from the wording of the rules that those obligations cannot be `delegated` to a `principal contractor` or to a appointed `contractor`. Sub-regulations 5 (6) and (7) of the regulations provide for the written designation of a competent person acting as an agent on behalf of the client. However, clients would be advised to consider whether a written date and the terms of an underlying mandate agreement are sufficient to protect themselves from possible liability that may result from an infringement within the meaning of OHASSA. An agreement with the agent should, inter alia, concern: for the purposes of the Common Law of Agency, the agent must act in accordance with and within the limits of the power conferred by his sponsor. If the holder does not fulfil or does not fulfil the mandate correctly, i.e. causes a loss to the procuring entity, the holder may be held liable for damages to the procuring entity. Given the potential liability that can be attributed to the client with regard to the conduct of his agent, it would be desirable for a similar agreement to be concluded in order to settle the relationship between the client and the agent. In cases where the client may not have the necessary expertise and experience for a construction project, such an agreement would be indispensable to protect the client`s interests. Failure to enter into a contract with an agent within the meaning of Article 37(2) of OHASA may lead to potential liability.

Ensuring a clear and clear agreement in place in this regard provides a higher level of security and a means for the parties to settle their relationship for the duration of the construction project. With the advent of the 2014 building rules (the ”Rules”), which are mandatory within the meaning of the Occupational Health and Safety Act 1993 (OHASA), the ”customer” is now subject to additional obligations that did not exist under the previous regulatory system. . . .

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