Page 5 - KZN Business Sense-11.5 - Lesedi Metsoamere-ABSA - eBook

NO TIME LIKE THE PRESENT

WHEN CAN CONSULTANTS CHARGE TIME-BASED FEES?

Peter Barnard, Lead apply to an agreement unless of Professional Fees Quantity
Partner, Construction they are expressly agreed to Surveying Profession Act
Law, Cox Yeats between the parties. 2000 (the Quantity Surveying
Guidelines).
Where they are specifically
rojects often incorporated, there are specific Clause 4.3 of the Quantity
run into circumstances which must be Surveying Guidelines entitles
Pdelays. A met before time-based fees can be Quantity Surveyors to charge
common question charged. I deal with each below. time-based fees if the actual
that arises is construction period less any
whether Architectural Services extension of time allowed for
consultants/ Government Gazette No. 51352 additional measured work
professionals dated 4 October 2024 provides exceeds the initial contractual
can claim for a Guideline for Professional construction period by more than
additional Fees in terms of Section 34 (2) 10 per cent, through no fault of
fees due of the Architectural Profession the quantity surveyor, then an
to the period of delay. Often, Act, 2000 Act 44 of 2000 (the additional fee shall be charged,
consultants agree to a value-based Architectural Guidelines). which fee shall be calculated at
fee, meaning that the amounts Clause 27 of the Architectural the hourly rates according to
they can charge are linked to the Guidelines entitles Architects the guidelines together with all
overall value of the work. related reimbursable expenses.
to charge time-based fees if the
In circumstances of delay, initial contract period is extended The additional fee must, that Project and Construction additional services are calculated
consultants often feel that they by more than 10%, through no however, be agreed to in writing Managers may only charge time- on the basis of time and actual
are automatically entitled to fault of the architect. with the client prior to the based fees for additional services costs.
revert to and claim time-based The Architectural Guidelines commencement of additional in the event of the extension of the The application of time-based
fees. This is not always the case. further record at clause 19 work and/or extension of time. initial contract period where there fees for additional services in the
has been agreement in this regard.
Peter Barnard, a partner at Cox that where the fees for the Project and Construction event of an extension of the initial
Yeats, clarifies the circumstances architectural professional services Management Services Engineering Services contact period should therefore
under which time-based fees are time-based fees, the hourly Government Gazette No. 42697 Government Gazette No. 44333 be agreed in advance.
can be claimed across various rates as set out in the guideline dated 13 September 2019 and dated 26 March 2021 and titled All professionals should
disciplines. for professional fees may apply. titled Amended Guideline Scope Guideline Scope of Services keep the above in mind
Whenever these rates are revised, prior to signing Consultancy
Each professional discipline the new rates may apply to work of Services and Recommended and Tariff of Fees for Registered
is governed by its own performed after the effective date Guideline Tariff of Fees for Persons 2021 records at clause Agreements. 
Act. Government Gazettes of such revision. Construction Health and Safety 3.3 that the agreement on the
containing guidelines and Professionals Registered in terms scope of additional services and Learn more about the firm:
tariffs are published in terms of Quantity Surveying Services of the Project and Construction remuneration must be agreed www.coxyeats.co.za
applicable Acts. Government Gazette No. 52152 Management Professions Act, in writing, preferably before the
services are rendered. Clause
2000, apply to professional
The first crucial point is that dated 21 February 2025 details construction project management 4.3 records that unless agreed
the tariffs do not automatically the amended Guideline Tariff services, records at clause 6.5 otherwise in writing, the fees for

REFORMING SOUTH AFRICA’S FAILING WATER

INFRASTRUCTURE

Michael Jackson, Senior is comprehensive water South Africa’s outdated legislative under current law, private entities Services. While this change
Partner, Cox Yeats infrastructure reform, aimed at framework governing water can only provide water services may promote more consistent
Attorneys improving water governance and supply and sanitation. with municipal approval, a regulation, there are concerns
ensuring reliable access to clean, The Water Services Act of 1997, requirement that has often stalled about whether the Department
peration safe water. introduced shortly after the investment and innovation. will be more efficient than local
Vulindlela democratic transition, sought to Another pressing issue is the authorities, given historical
Owas The water reform agenda under guarantee access to basic water ability of municipalities to impose delays in issuing water use
introduced by the Operation Vulindlela Phase 2 and sanitation services for all surcharges on water services licences that have impeded
South African seeks to: South Africans in an efficient, supplied by water boards, even development in the past.
Government ■ Address the root causes of equitable, and sustainable when the municipality does not
to remove service delivery failures manner. However, despite its good actually provide the service. This In conclusion, Phase 2 of
structural ■ Protect the quality of drinking intentions, the Act’s objectives practice undermines the financial Operation Vulindlela and the
barriers that water have not been fully realised. viability of major water projects, Water Services Amendment Bill
have long ■ Strengthen institutional Many municipalities, designated inflates costs for bulk consumers, mark an important step toward
hindered inclusive and sustainable capacity and the management under the Act as water services and deters private sector reforming South Africa’s failing
economic growth. Since its of water resources authorities, have since become involvement. It is widely viewed as water infrastructure. However,
the current proposals may not go
inception, the initiative has ■ Improve regulatory oversight of financially and operationally wasteful and counterproductive
focused on accelerating reforms water services dysfunctional, leading to to national economic policy. The far enough. Unless long-standing
in key sectors such as energy, ■ Encourage greater private sector widespread service delivery new Water Services Bill will need issues such as municipal surcharges
transport, and water. participation and investment in breakdowns. to confront and eliminate this and bureaucratic inefficiencies
are decisively addressed, the
Phase 2, announced in the water sector Historically, outside municipal practice to restore confidence in country’s water sector risks
May 2025, shifts attention to In November 2023, the boundaries, industries such as the water sector. remaining trapped in a cycle of
addressing the widespread Minister of Water and Sanitation sugar mills, paper mills, and The Bill also introduces a underinvestment, mismanagement,
dysfunction in municipalities published the Water Services mining companies operated new licensing framework for and declining service delivery. 
and the collapse of critical Amendment Bill for public their own water purification and water service providers. Instead
infrastructure that has comment. In September 2025, wastewater treatment facilities. of municipalities granting Should you require advice or assistance,
undermined service delivery Cabinet approved the Bill for In many cases, these privately approvals, the authority to issue please contact Michael Jackson on
across the country. A submission to Parliament which is managed systems continue to operating licences will shift T: +27 (0)31 536 8512
E: mjackson@coxyeats.co.za
central pillar of this phase a significant step toward updating provide essential services. Yet to the Department of Water W: www.coxyeats.co.za

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