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Draft Directive Consultation: Transfer of Commissions

The transfer of commissions, projects and tasks from one perit to another is generally a delicate and potentially complex transition which can give rise to a number of issues related to ethics, commercial interests, and intellectual property rights.

In 2009, the Council of the Kamra had, at the behest of the General Meeting, issued a Directive that sought to govern the transition from an ethical perspective. The focus at the time was not to stifle the possibility for the incoming periti from delivering their professional services and not to unduly harm clients who may be victims of vexatious requests for payments from outgoing periti. As a result, Directive 04/09 had stipulated that outgoing periti must hand over projects to the incoming perit even if there are outstanding payments due.

Over time, however, the original intentions of the directive were thwarted to the point where periti frequently end up not getting paid for their services by their clients, who exploit the directive to move projects from one perit to another, sometimes more than once, to avoid paying for professional services.

 

The current Council has thus decided to redraft a new Directive to govern the transfer of commissions between periti that shall replace the 2009 Directive. The draft directive seeks to strike a fairer balance between the rights of periti to get paid, and the protection of clients from vexatious claims for payment.

The draft Directive changes many of the dynamics that we have been hitherto accustomed to, including:

  1. The right for the outgoing perit to refuse to release the commission subject to certain conditions being satisfied;
  2. The requirement to provide a handover;
  3. The processes to be undertaken depending on the stage of the project.

 

The Council has approved the text of the Directive and is hereby publishing it for consultation with members of the profession. There was, however, a minority position within Council on certain parts of the text which members of the profession are being specifically requested to express their opinion about through an online poll.

 

The two lines of thought are as follows:

 

Version 1

The outgoing perit may refuse to release the commission if any professional fees clearly established in a written agreement are still due, and the incoming perit shall desist from taking over a project in such situations. If a dispute on the settlement of the fees arises between the outgoing perit and his/her client, the transfer of the commission shall remain pending until the dispute is resolved by the Courts or any other adjudicating body.

 

Version 2

The incoming perit may take over the commission from the outgoing perit, if the latter institutes formal legal action against the client to recover any outstanding fees within an established period of time, and the incoming perit is duly informed of such action. In such case, the incoming perit may freely take over the commission in the knowledge that the dispute will be settled by the Courts or any other adjudicating body.

 

Members of the profession are invited to participate in the online poll by selecting their preferred direction for the final text of the Directive.

 

The poll closes on 25th April 2022.

 

Full draft Directive text

You can review the two versions of the full text by clicking on the links below. The differences are highlighted in yellow.

Version 1

Version 2

 

Online Poll

Participate in the online poll by selected your preferred version, and drop any additional feedback you may have in the comment box.

 

 

Poll is now closed.

DIR 04/19 | Publication of List of Licensed Masons

The Kamra tal-Periti notes the belated publication of a list of current licensed masons by the Building Regulation Office (BRO) on its website. This is in response to the Kamra’s repeated requests over several years. The publication of this list on the evening of Friday 21st June 2019 is therefore a step forward; however the usefulness of the published list is very limited since the relative ID numbers, which would allow identification of the person holding the licence, and the validity period of the licence have not been published at the same time. This is in breach of the Services Directive (Article 22).

Nevertheless, it is now expected that the BRO will not permit works to continue on any site where the appointed mason is not on the list.

The Code of Police Laws stipulates that “It shall not be lawful to exercise the trade of mason without a licence …”. This licence, which must be renewed annually, is required to give assurance to the owner of the site, the perit in charge of the project, and society at large that such person is indeed qualified to carry out this trade and has received the appropriate training. The Code of Police Laws also states that “If any mason, through unskilfulness, imprudence or carelessness, shall, in the construction of any work entrusted to him, and appertaining to his trade, cause any injury to any person or property, it shall be lawful for the Court of Magistrates to interdict such mason from the exercise of his trade for any time to be stated in the sentence, ordering, at the same time, the withdrawal of the licence.” The responsibilities arising out of the Code are very clear, and no lesser legal instrument can be used to infer otherwise.

It is also to be noted that various Court sentences have determined that the “ownerqua employer” or “developer” is obliged to ensure that the persons engaged on a construction project are duly qualified to exercise such role.

 

Directive regarding ongoing works

In view of the publication of this list, periti are advised to:

  1. Inform their clients that the list of licensed masons has been published and that, in view of their obligation to ensure that persons engaged on a construction site are duly qualified, they should check that the person listed as a “mason” on the Commencement Notice submitted to the Planning Authority is in fact included on the list – periti may, if they so wish, offer to undertake this check themselves on behalf of their clients;
  2. If it is found that a person claiming to be a mason is engaged on an ongoing project and is not on the list, then the perit is to immediately order the suspension of the Works, verbally and in writing, and to notify the owner / employer / client of the situation in writing – no works are to be carried out under the direction of the perit until such time as a duly licensed mason is appointed;
  3. If the perit notes that works are continuing following the order to suspend the Works, then said perit is to immediately notify in writing the Building Regulation Office and the Commissioner of Police, keeping the Kamra tal-Periti in copy.

 

It is to be noted that the Kamra tal-Periti has received reports that the list may not be fully updated. It is therefore recommended that, if a mason’s name is not on the list, the client is to contact the BRO for further guidance, following which the appropriate action may be taken as outlined above.

Periti are reminded of the protection afforded to them through Directive 03/19 regarding their right to refuse to sign a Change of Architect Form when the interest of public safety is being safeguarded by the Perit.

The Kamra tal-Periti fully endorses the notion that there should be no compromises on public safety.

 

ADDITIONAL REMARKS:

A. Future works

In the case of building works for which a Commencement Notice has not yet been submitted as at the date of this Directive, the Kamra tal-Periti will be insisting with the BRO that it should not permit any works to commence on a site where the person indicated as the appointed mason in the Commencement Notice is not duly licensed. The onus to verify whether a mason is licensed, and therefore competent, lies with the owner / employer / developer, and with the regulator, in this case the BRO.

 

B. The list published by BRO

The Kamra tal-Periti will be writing to the BRO to request that the published list contain, as a minimum, the ID Card Number and address of the licensed mason, as well as the validity period of such licence, to enable owners to verify that the licence number matches the person identified in the list. This will avoid the current practice of persons claiming to be masons and listing the number of someone else.

This requirement is in line with Article 22 of the Services Directive which states that:

  1. Member States shall ensure that providers make the following information available to the recipient:
  • The name of the provider, his legal status and form, the geographic address at which he is established and details enabling him to be contacted rapidly and communicated with directly and, as the case may be, by electronic means;
  • Where the provider is registered in a trade or other similar public register, the name of that register and the provider’s registration number, or equivalent means of identification in that register; …
  1. Member States shall ensure that the information referred to in paragragh 1, according to the provider’s preference:
  • Is supplied by the provider on his own initiative;
  • Is easily accessible to the recipient at the place where the service is provided or the contract concluded;
  • Can be easily accessed by the recipient electronically by means of an address supplied by the provider;
  • Appears in any information documents supplied to the recipient by the provider which set out a detailed description of the service he provides.

 

C. Licensing and registration of contractors

It is also pertinent to note that the Civil Code places the onus for structural integrity jointly on the perit and the contractor. The Building Regulation Act also places the obligation on the BRO to issue “licences and registration of masons, fire consultants, other consultants in the building industry, building contractors and tradespersons.

Following the approval by the Extraordinary General Meeting, the Kamra tal-Periti is demanding that the registration and licensing of building contractors and tradespersons is implemented by the date of coming into force of the amendments to Legal Notice 72 of 2013.

 

Perit Simone Vella Lenicker

President

 

DIR 03/19 | Change of Perit in cases of Public Safety

Following the Extraordinary General Meeting of the Kamra tal-Periti held on Friday 21st June 2019, wherein it was unanimously agreed that public safety must be given priority over any other concern, the Kamra tal-Periti is hereby giving notice to all members of the profession of a directive that was also unanimously approved during said EGM.

Periti are hereby authorised to refuse to sign a Change of Architect Form in cases where they have submitted a report to the Building Regulation Office stating that the Developer qua owner/employer or the Contractor/mason have refused to follow their instructions on matters related to structural integrity. In line with the EGM’s decision, the Council of the Kamra tal-Periti will consider any actions by another Perit to take over the works concerned as constituting “supplanting” in terms of Provision 4 of the Code of Professional Conduct.

Periti are reminded that the Council of the Kamra tal-Periti is empowered to take appropriate action in terms of the Periti Act in case of breach of this Directive.

 

Perit Simone Vella Lenicker

President

 

CIR 02/09 | Procedure for when a Perit discontinues a commission and/or when another Perit is engaged to take over

The Kamra tal-Periti would like to draw the attention of all Warrant Holders to the correct procedure to be adopted by Periti in cases when a commission undertaken on behalf of a Client is discontinued for any reason and/or when a Perit assumes responsibility for a commission originally undertaken by another Perit.

Warrant Holders are to note that these procedures apply equally to all cases across the board irrespective of whether the Client has decided not to retain the services of his original Perit any further or whether the Perit has decided to withdraw from the work for his own reasons. Moreover, the procedure also applies irrespective of whether there remain any outstanding issues between the original Perit and the Client or whether the Client decides to retain the services of another Perit or not.

Upon being informed by the Client that his services are no longer required or upon deciding not to pursue the commission any further, the Perit shall furnish the Client with a formal letter notifying his withdrawal and stating that he is no longer acting on behalf of said Client on the commission in question. A copy of the covering letter is also to be sent to the appropriate authorities (where applicable), and any stakeholders involved.

All Periti are to note that the withholding of the ‘Change of Architect’ form in such cases is considered to be a breach of Professional Conduct as is the resulting (or any other form of) obstruction of assumption of the work by any other Perit that the Client may subsequently wish to engage. Any pending issues such as outstanding fees or similar, that may exist between the Client and the original Perit are to be dealt with separately and do not constitute an acceptable reason for with holding the necessary documentation or for obstructing another Perit from resuming the work.

In cases where a Perit accepts a commission originally commenced by another Perit, correct procedures are also to be followed. Upon being engaged by the Client, the second Perit shall contact the first Perit and inform him formally in writing that he has been engaged by the Client to continue the works and shall also forward an endorsed ‘Change of Architect’ form (where applicable) unless this has already been furnished.

It is to be noted that the failure to inform a colleague of the intention to assume a commission originally commenced by the said colleague or the obstruction of the continuation of a commission by a colleague when on e discontinues the said commission or is no longer retained by the client, are considered to be a breach of professional conduct. The Kamra tal-Periti will take a serious view of any such incidents and any such cases brought to its attention will be dealt with accordingly.