Contract Procedures

Contract Procedures

Introduction

Formation of the construction contract to ensure that the contract is equitable and the specifications and timetable feasible, and that liability and obligations are clearly defined. Properly prepared contractors, subcontractors, architects, engineers, and developers can avoid anticipated problems, reduce performance disputes and receive payment for work performed. In this three-day course the focus will be on practical solutions for today's construction problems. Actual case examples are discussed, explaining contract performance, how to resolve construction disputes, how to prepare for a litigation case, and the bidding process. (UK Council for Construction Management, 2006)

The course covers legal issues from the formation of the contract to the final payment, and is designed to assist construction professionals and their lawyers in day-to-day construction activities. The construction industry faces unique challenges requiring employment standards that differ from other industries. Termination, general holidays, minimum wage and hours of work/overtime are examples of areas where legislated minimum standards are unique to the construction industry.

This article will explore the overtime obligations in the construction industry and provide employers with some suggestions on controlling overtime liability. (UK Council for Construction Management, 2006)

The Contractor's Project Manager of the contracting organization should understand the roles, responsibilities and practices of other parties working alongside the principal Contractor in managing the construction project.

Overtime Obligations

All employers must pay overtime wages for any hours worked in excess of an employee's regular hours of work. The Construction Industry Minimum Wage Regulation (the "Regulation"), passed under The Construction Industry Wages Act (the "Act"), defines what an employee's "regular hours of work" are. (UK Council for Construction Management, 2006)

Pursuant to the Regulation, "regular hours of work" differ according to the sector of the construction industry in which an employee works.The "regular hours of work" in the Industrial, Commercial and Institutional Sector (the "ICI Sector") or on a "Major Building Construction Project", are forty (40) hours in a week and ten (10) hours in a day. This is now a Sector-wide standard. The distinctions between trades and locations of work have been removed from the legislation.

In the Heavy Construction Sector, the regular hours of work are forty-eight (48) in a week if the work occurs within the City of Winnipeg between November 1 and March 31 and fifty (50) if the work occurs within Winnipeg between April 1 and October 31. Outside of Winnipeg the standard weekly hours of work are always fifty (50). There are no legislated daily regular hours in the Heavy Construction Sector.

Any hours worked outside of the daily or weekly maximums described above must be paid at one and a half times the employee's regular wage rate. If an employment contract or a collective agreement provides for a greater overtime wage rate, the greater rate prevails. (UK Council for Construction Management, 2006)

"ICI Sector", "Heavy Construction Sector" and "Major Building Project" are all defined by Act or Regulation. Due to spatial constraints, the definitions as they appear in the legislation cannot be reproduced here. Generally, the Sectors are divided as follows: (UK Council for ...