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I
Standard Form of Building Contract
1998 Edition

I!

Private
With Quanti

y
& ContractsTribunal Limited
ThroughouttheArticlesofAgreementand Conditions,
Contents referencesto footnotesaremadebysmallletters insquare
brackets.

ARTICLES OF AGREEMENT Page5 6A Provisionsfor use wherethe Appendixstates 21


that all theCDfVlRegulationsapply
-
Recitals(First Seventh) 6 6A1 -
Employer'sobligation PlanningSupervisor -
PrincipalContractor
Articles 7 6A.2 Contractor- compliancewith dutiesof a
1 Contractor's obligations principalcontractor
2 Contract Sum 6A.3 Successorappointedto the Contractoras
3 Architect PrincipalContractor
4 Quantity Surveyor 6A.4 Healthand safety file
5 -
Disputeordifference adjudication
61 PlanningSupervisor 7 Levelsandsetting out 22
6-2 PrincipalContractor
7A -
Dispute or difference arbitration 8 Work, materialsand 22
78 -
Disputeor difference legal proceedings 8.1 e113 Kindsandstan
e 4 ConstructionSk
Attestation 11

CONDITIONS: PART 1: 8.2


GENERAL
8.3
9 Interpretation, definitions etc. 13 8.4
1.1 Method of referencetoclauses
1.2 Articles etc. to be readas a whole 85
1*3 Definitions
1*4 [Number not used1 8.6 . .
1e5
1*6
Contractor'sresponsibility
Reappointmentof PlanningSupervisoror
-
PrincipalContractor notificationto Contractor
P e m\ 23
1-7 Givingor serviceof noticesorother documents indemnityto
1e 8 Reckoning periodsof days
1*9 Employer's Representative uctions -treatment of royalties
1.10 Applicable law
1.11 Electronicdata interchange
1.12 Contracts(RightsofThirdParties) Act 1999 - 24
contractingout
chflecttothe Works 24
a Contractor's obligations
2.1 Contract Documents 24
2-2 a 1 Contract Bills
e2 Preparationof Contract Bills riations andprowisionelsums 24
2.3/2-4 Discrepanciesin or divergences between efinition of Variation
documents requiringavariation
Instructionson provisionalsums
3 -
ContractSum additionsor deductions - Valuationofvariations and provisionalsum
-
adjustment Interim Certificates work and workcovered by an Approximate
Quantity
Valuation rules
Contractofs rightto be presentat
measurement
-
Valuations Employer/Contractor
-
agreement 13AQuotationforaVariation and
than inwriting -
Variations thereto additionto or deduction
from Contract Sum
issueof certificates -
Wariation instruction Contractof squotation 29
in compliancewith the instruction
Contractortosubmit his quotation('13A
Quotation')
13A.2 Content of the Contractor's 13AQuotation
13A.3 -
Acceptanceof 13AQuotation Architect's
confirmedacceptance
13A.4 Contractor's 13A Quotation not accepted
13A.5 Paymentfor a 13A Quotation
13A6 Restrictionon use of a 13A Quotation
13A.7 Numberofdays -clauses 13A.1.1 and/or
13A.1.2
13A8 Variationstowork forwhich aconfirmed
acceptanceof a 13AQuotationhas been
issued - valuation

94 ContreePSurn 31
14.1 Qualityand quantityof work included in
tatutory Requirements and Contract Sum
or's Statement 14.2 -
Contract Sum only adjustedunderthe
e 7 Change in Statutory Requirements after -
Conditions errors in computation
Base Date
62 Fees or charges 15 -
Walueadddtan supplementalprowisions 31
63 Exclusionof provisionson Domestic Sub- 15.1 Definitions - VATAgreement
Contractorsand NominatedSub-Contractors 15.2 Contract Sum - exclusiveofVAT

P With 98 (9D3) @TheJoint Contracts Tribunal Limited 2003 7


15.3 Possible exemptionfrom VAT -
22C.lA Terrorism cover existingstructuresand
- -
contents non-availability Employefs
16 Materialsand goods unfixedor offsite 32 - options
16.1 Unfixedmaterialsand goods on site - 22c.2 Works in or extensionsto existingstructures -
16.2 Unfixed materialsandgoods off-site - -
All Risks Insurance Employertotakeout and
maintainJoint Names Policy
17 PracticalCompletionand defectsliability 32 22C.3 Failureof Employertoinsure rightsof -
17.1 Certificateof Practical Completion Contractor
I 17.2
17.3
Defects, shrinkages or other faults
Defects etc. - Architect's instructions
22C.4 Loss ordamageto Works - insuranceclaims
-
Contractor'sobligations payment by
-
17.4 Certificateof Completionof MakingGood Employer
Defects -
22C.5 .l Terrorism cover non-availability
17.5 Damage by frost -2 Employer's options
18 Partialpossessionby Employer 33 220 Insurancefor Employefs 45
18.1 Employefs wish - Contractor'sconsent
-1 Practical Completion relevantpart - -
damages clause254.3

-
-
-2 Defectsetc. relevant part
*3 Insurance relevantpart
22FC -
Joint FireCode CO 46
-1 Application of
.4 Liquidateddamages relevantpart - e2 Compliancewi
-3 Breachof Join
19 Assignment and sub-contracts 33
I 19.1 Assignment
19.2 Sub-letting - Domesticsub-Contractors -
Architect's consent
I 19.3 -
Sub-letting list in Contract Bills 23 46
19.4 Sub-letting - conditionsof any sub-letting
19.5 NominatedSub-Contractors 23.1
20 Injury to personsand property and indemnity 35 2302
to Employer 23-3
20.1 -
Liabilityof Contractor personalinjury or ( b y x y e v
-
death indemnitytoEmployer
20.2 Liabilityof Contractor - injury or damageto 47
-
property indemnityto Employer
20.3 Injuryordamageto property exclusion ofthe -
Works and Site Materials
48
21 Insuranceagainstinjurytopersons or property 36
21.1 Contractor's insurance- personal injury or A
-
death injury or damageto propem-
21.2 Insurance - liabilityetc. of Employer
21.3 ExceptedRisks
ndexpense causedby matters materially 51
22 lnsuranceofthe Works
22.1 -
Insurance of the Works alternativeclauses
22.2 Definitions
22.3 Nominatedand Domestic
benefitof Joint Names Policies Specifie - Relevanceofcertain extensionsof Completion
Perils Date
NominatedSub-Contractors matters -
22A materially affecting regular progressof the sub-
-
contractworks dkesloss an&lorexpense
22A-1 -
Amounts ascertained addedto Contract Sum
26-6 Reservationof rightsand remediesof
Contractor
22A.2
27 Determinationby Employer 53
22A-3 27.1 Notices underclause27
27.2 Default by Contractor
22A.4 27.3 Insolvency of Contractor
27.4 Corruption
27.5 -
Insolvencyof Contractor option to Employer
22A.5 27.6 Consequencesof determinationunder clauses
27.2 to 27.4
/ \ -
27.7 Employer decides nottocomplete the Works
27.8 Other rightsand remedies
47
28 Determinationby Contractor 57
28.1 Notices underclause28
28.2 -
Default by Employer suspension of

%, w
uncompletedWorks

Wa
t67
2 8.2 Failu ofEmpl ertoi sure- ri 28.3 Insolvencyof Employer
U t $ 28.4 Consequencesof determination under clause
2 *3 Lossor maaeto or -insuranceclaims- 28.2 or 28.3
- paymentby 28.5 Other rightsand remedies
228.4

22C
.1
a2
-
T rorismcov
ployefs tions
-
non-availability

Insuranceofexistingstructures insuranceof
Works inor extensionsto existing structures
- 42
288
28A.1
Determinationby Employeror Contractor
Groundsfor determination oftheemployment
ofthe Contractor
28A.2/ Consequencesof determinationunder clause
-
28A.6 28A.1.1 clauses 28A.3 to 28A.6
59

22C.1 Existingstructuresand contents - Specified 28A.7 Amountsattributabletoany NominatedSub-


-
Perils Employertotakeout and maintainJoint
Names Policy
Contractor

2 Ofhe Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


29 Works by Employeror personsemployedor 61 Payment of NominatedSub-Contractor 76
engagedby Employer -
35.13 e1 Architect directionas to interim
29.1 Informationin Contract Bills and .2 paymentfor NominatedSub-Contractor
29.2 Information not in Contract Bills *3 Direct paymentof NominatedSub-
to 5 contractor
30 Certificatesand payments 61 -
*6 Agreement NSCMl pre-nomination
30A Paymentssubjecttoclause31 paymentstoNominatedSub-Contractor
30.1 a1.1 Interim Certificates and valuations - by Employer
-
to e1.5 final datefor payment interest
-1.6 Advance payment 35.14 Extensionof period or periodsfor completion 77
a2.1 Interim valuations of nominatedsubcontract works
-
a2.2 Application by Contractor amount of
gross valuation 3515 Failuretocompletenominatedsubcontract 77
93 Issue of Interim Certificates works
.4 Rightof suspension of obligations by
Contractor 35.16 Practicalcompletionof n 78
30.2 Ascertainmentof amounts due in Interim contract works
Certificates
30.3 Off-sitematerialsor goods - the 'listed items' 35.17 78
30.4 -
Retention rulesforascertainment to ml9 Contractors
30*4A Contractor's bond in lieu of Retention 35.17
30.5 Rulesontreatmentof Retention 35.18
30.6 a1 FinaladjustmentofContractSum -
documentsfrom Contractor
+2 Items includedin adjustmentof Contract 35.19
Sum
30.7 Interim Certificate- final adjustmentor 35.20 79
ascertainmentof nominatedsub-contractsums
30-8 Issueof Final Certificate
30-9 Effect of FinalCertificate 35.21 79
3010 Effect of certificatesotherthan Final Certificate

31 ConstructionIndustry Scheme (CIS) 70 79


31.1 Definitions
31.2 Whether Employerisa'contractor'
31.3 -
Payment by Employer valid Authorisation
essential 79
31.4 Validity of Authorisation - Employer'squery. .
31.5 Authorisation: CIS 4 registrationcard where re-nomination 79
31.6 Authorisation: CIS 5 or CIS 6 or a certifying
document
31-7 Change of Authorisation 81
31.10 Vouchers
31.12 Correctionof errors in makingthestatutory
deduction
31.13 Relationto other clauses OMINATEDSUPPLIERS 82

-
31.14 Disputes or differences efinition of a NominatedSupplier
32 [Number not usedl Ascertainment of coststo be set against prime
cost sum
33 [Numbernot usedl -
Sale contractprovisions Architect's right to
34 Antiquities
34.1 Effect of find ofantiquities exclusionof liability
342
34.3 Directloss and/or expense CONDITIONSPART3:
FLUCTUATIONS
CONDITIONS: PART2:

NOMINATEDSUPPLIERS
37 -
Choice of fluctuation provisions entry in 85
Appendix
35 NOMINATEDSUB- Note: Clauses38,39and40are published
separarely
73
351 38 CONTRIBUTION, LEVY AND TAX
35.2 FLUCTUATIONS
38.1 a1 Deemed calculationof Contract Sum -
types and ratesofcontribution etc.
73 a2 Increasesor decreasesin rates of
contribution etc. - paymentorallowance
a3 Personsemployedonsiteotherthan
and $4 'workpeople'
~517Refundsand premiums
.8 Contracted-out employment
a 9 Meaning of contributionetc.
38.2 Materials- dutiesandtaxes
Architec
383 - -
Fluctuations worksub-let Domestic
Sub-Contractors
38.3 *1 Sub-letwork - incorporationof provisions
clause35.8 to like effect
3510
3511
[Number not usedl
[Nurnbernotusedl
38.3 - -
*2 Sub-letwork fluctuations paymentto
or allowance by the Contractor
35.12 [Numbernot usedl

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 3


384 Provisionsrelatingto clause 38 41A.7 Effect of Adjudicator's decision
to 06 41A.8 Immunity
38.4 a1 Written notice by Contractor
*2 Timing and effect of written notices 418 Arbitration 88
.3 Agreement - QuantitySurveyorand
Contractor 41C Legalproceedings 89
*4 Fluctuationsadded to or deducted from
Contract Sum CONDITIONS PART5
a5 Evidenceandcomputationsby Contractor PERFORMANCESPECIFIED WORK 90
.6 No alterationtoContractofs profit 42.1 Meaningof PerformanceSpecifiedWork
.7 Positionwhere Contractor in default 42.2 Contractor's Statement
and -8 overcompletion 42.3 Contents of contractor's Statement
38.5 Worketc. towhichclauses38.1toe3 not 42.4 Timefor Contractor's Statement
applicable
386 Definitionsforusewithclause38 Statement
42-6 Architect's noticeof defic
38.7 Percentageaddition t o fluctuation paymentsor Statement
allowances

39 LABOUR AND MATERIALSCOST AND TAX


FLUCTUATIONS
39.1 a 1 DeemedcalculationofContractSum -
rates of wages etc.
-2 Increasesor decreasesin rates of wages
-
etc. paymentor allowance
a3 Persons employedon site otherthan
and -4 'workpeople'
-
.5 Workpeople wage-fixing body -
and -6 reimbursementoffares
39.2 Contributions,leviesand taxes
39.3 Materials,goods, electricity and fuels
394 - -
Fluctuations worksub-let Domestic
Sub-Contractors
39.4 -
e 1 Sub-letwork incorporationof provisions -
ork Contractor's
to like effect
-
-2 Sub-letwork -fluctuations paymentto
or allowanceby the Contractor
93
39.5 Provisionsrelating to clause 39
to 'I
39.5 -1 Written notice by Contractor 94
e2 Timing and effect of written notices
-
e3 Agreement QuantitySurveyorand 1TO APPENDIX TERMS OF BONDS 98
Contractor
a4 Fluctuationsaddedto ordeductedfrom respectof paymentfor off-site
Contract Sum
a5 Evidenceandcomputationsby Contr
-6 NoalterationtoContractor's profit SUPPLEMENTALPROVISIONS 104
-7 Positionwhere Contractor in default (theVATAgreementJ
39.6
and -8 overcompletion
Worketc.towhichclauses39~1to4not
-
Interimpayments addition ofVAT
applicable
39.7 Definitionsfor use with clause
1.2 Employertocalculateamountoftaxdue -
398 Percentageaddition tofluctu Employer's right of reasonableobjection
allowances 1.3 -
Written final statement VATliabilityof
Contractor - recoveryfrom Employer
40 USEOFPRICEADJUS 1.4 Contractortoissue receiptastax invoice
40.1 AdjustmentofContra 2 -
Value of supply liquidateddamagesto be
disregarded
3 Employer's righttochallengetaxclaimed by
Contractor
4 Dischargeof Employerfrom liability to paytax
tothecontractor
5 Awards in dispute procedures
6 Arbitration provisionexcluded
7 Employer's rightwhere receiptnot provided
VATon determination

ANNEX 2 TO THE CONDITIONS: 108


SupplementalProvisionsfor EDI

ANNEX 3 TOTHE CONDITIONS: 109


Bondin lieu of Retention
86 List of amendmentsincorporatedinthis reprint 172

-
cator inabilitytoadjudicate
41A.4 -
Disputeordifference noticeof intentionto
-
referto adjudication referral
41A.5 Conduct ofthe adjudication
41A.6 Adjudicator's feeand reasonableexpenses -
payment

4 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


Articles of Agreement

madethe day of 20

Footnote Ial Where the Contractoris nota limitedliability


company incorporatedunderthecompaniesActs, see
footnote lqqltoclause 3513534.

@The Joint Contracts Tribunal Limited 2003 5


Whereas

Recitals First the Employer is desirous of ibi

and has caused Drawings and Bills of Qua owand describe the
work to be done;

Second the Contractor has suppliedthe E py of the said Bills of


Quantities (whichcopy is here

[e] and has provided

Third the said Drawingsn

,for the purposesofthe ConstructionIndustryScheme (CIS) under


n Taxes Act 1988 or any statutory amendment or modification
e is stated inthe Appendix;

e applicationof the Construction (Designand Management) Regulations 1994


lations')to the work referredto in the First recital is stated in the Appendix;

as providedthe Contractor with a schedule ('Information ReleaseSchedule')


hat informationthe Architect will releaseand the time of that release;

ifthe Employer requires any bondto be on terms otherthanthose agreed betweenthe JCT
and the British Bankers' Association, the Contractor has been given copies of these terms;

Footnotes Ibl State nature of intendedworks. IflSee the notesontheJCT8O Fifth recital in Practice
Note 27 The application of the Construction (Designand
Icl [dl Not used. Management)Regulations 1994toContractsonJCT
StandardForms of Contract' for the statutory
[e] Delete if not provided. obligations which must have beenfulfilled beforethe
Contractor can begin carrying outthe Works.

6 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


Now it is hereby agreed as follows

Article 1
Contractor’s Fortheconsiderationhereinaftermentionedthe Contractorwillupon and subjecttothe
obligations Contract Documentscarry out and completethe Works shown upon, describedby or
referredto in those Documents.

Article 2
ContractSum The Employerwill paytotheContractorthesum of

hereunder atthe times and in the manners

Article 3
Architect The term ‘the Architect’ in the Condit

to be the Architectforthe purposeofthisContract,

cessation forthat purpose, not being a personto


s after such nominationshall object for reasons
ppointedpursuantto the proceduresunderthis

or opinionor decisionor approvalor instructiongiven or


tforthetime being.

Footnotes Igl Ihl lil Not used.

P With 98 (9D3) @The Joint Contracts Tribunal Limited 2003 7


Article 4
Quantity The term 'the Quantity Surveyor' in the Conditionsshall mean
Surveyor

or, in the event of his death or ceasi

Article 5
Dispute ordifference-
adjudication in accordance with clause41A.

Article 6.1 lkl


Planning
Supervisor

r or his ceasing to be the Planning


ppoint as the PlanningSupervisor

meanthe Contractor, or, in the


Contractor her contractor asthe Employer
actor pursuantto regulation6(5) ofthe CDM Regulations.

Footnotes ljl Not used. [kl Deletearticles6 1 and62 when onlyregulations7


end 13oftheCDM Regulationsapp1y;seeAppendix
underthe referencetothe Fifth recital.

8 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


Article 7A
Disputeor difference- Where the entry in the Appendix statingthat "Clause 418 applies" has not been deletedthen,
arbitration subject to article 5, if any dispute or differenceas to any matter orthing of whatsoever nature
arising underthis Contract or in connectiontherewith, except in connectionwith the
enforcement of any decision of an Adjudicator appointedto determine a dispute or
difference arising thereunder, shall arise betweenthe Parties either during the progress or
after the completion or abandonmentof the Works or after the determinationof the
employment of the Contractor, except under clause 31 (ConstructionIndustry Schemeho
the extent provided in clause31.14 or under clause 3 of the VATAgreement, it shall be
referredto arbitration in accordance with clause 41B and the JCT 1998edition of the
ConstructionIndustry Model Arbitration Rules (CIMAR). III

Article 7 8
Disputeor difference- Where the entry in the Appendix statingthat "Clause 41
legal proceedings subject to article 5, if any dispute or differenceas to any
arising underthis Contract or in connectiontherewith s
during the progressor afterthe completion or aband
determinationof the employmentof the Contractor it
proceedings.

[IITheJCT1998editionoftheConstructionIndustry disputes. The JCT 1998 editionof the Construction


Model Arbitration Rules (CIMAR)contains procedures Industry ModelArbitration Rules (CIMARIincludes
for beginning an arbitration andtheappointmentofan additional rulesconcerning thecalling of preliminary
arbitrator, the consolidation or joinder of disputes meetings and supplementaland advisory procedures
includingrelateddisputes between different parties which may, with the agreement of the parties, be used
engaged under different contracts on the same project, with Rule7 (short hearing), 8 (documentsonly) or 9 (full
andfortheconduct of arbitralproceedings.The procedure).
objective of CIMAR is the fair, impartial, speedy, cost-
effective and binding resolution of construction Iml Not used.

P With 90 19/03) @The Joint Contracts Tribunal Limited 2003 9


10 @The Joint Contracts Tribunal Limited 2003 This page blank P With 98 (9103)
Notes [AI] AS WITNESSTHE HANDSOFTHE PARTIESHERETO

[ A l l For Agreement [AI] Signed by oron behalfoftheEmployer


executedunder hand and
NOTasadeed.
in the presenceof:

[AI] Signed by oron behalfoftheContractor

in the presenceof:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[A21For Agreement [AZI EXECUTEDAS A DEEDBY THE EMPLOYER
executedas a deed under hereinbeforementionednamely
the law of Englandand
Wales by acompany or
other body corporate: [w by affixing hereto its commonseal
insertthe nameofthe
party mentionedand
identifiedon page 1and [A41 in the presenceof:
then use eitherIA31and
[A41or[A51.
Ifthe party is an
individualseenote [AS].

[A31For use if the party is


using itscommonseal,
which should be affixed
underthe party's name.
[A41For use of the party's
officers authorisedto
affix itscommon seal.
* OR-----
[A!j]Foruseifthepartyis [A51 acting by adire
acompanyregistered
under the Companies
Acts which is not using a
commonseal: insertthe
namesofthetwoofficers
bywhomthecompanyis
acting whoMUSTbe
eithera directorand the
companysecretaryor
twodirectors, and insert
their signatures with SECRETARY*/DIRECTOR*
'Directof or 'SecretaM as
appropriate. This method
ofexecutionis NOTvalid
for localauthoritiesor
certain other bodies
incorporatedbyActof
Parliamentor bycharter if
exemptedunders. 718(2)
ofthe CompaniesAct
1985.

Other attestation clauses


are requiredunderthe and
law of Scotland.
'Deleteas appropriate [Signature] SECRETARPDIRECTO

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 IT


12 @The Joint Contracts Tribunal Limited 2003 This page blank P With 98 (9/03)
The Conditions

Part 1: General
1 Interpretation, definitions etc.

Methodof 1.1 Unlessotherwise specificallystated a referencein the Articles of Ag


referenceto or the Appendix to any clause meansthat clauseof the Conditions.
clauses

Articles etc. to be 1.2 The Articles of Agreement, the Conditions an


read asa whole the effect or operation of any article or clause i
Appendix must therefore unlessotherwise sp
qualification or modification in any other artic
item in orentry in the Appendix.

Definitions 1-3 Unlessthe context Otherwise requiresorthe Arti


in the Appendix specifically otherwise provides,
Articles of Agreement, the Conditions and the
below or as ascribed in the article, clauseor Appendix

nu
Q,yL
Wordor phrase Meaning

3.3A Quotation: a
clau 3.3A of
--contractor
nditions I C (Conditionspursuantto
of Nominated

su Cornctl.

13A Quotation: A &dylQ


Activity Schedule: Appendix with
the sum of those prices being
provisional sums, prime cost
thereon and the value of
are included in the

Adjudicator: appointed pursuantto clause H A a s the

AII
n I ~ I ' see clause22-2.

Anal sis: see clause 42-13.

the Appendix to the Conditionsas completed by the parties.

a quantity in the Contract Bills identified therein as an


approximate quantity.

the personappointed under clause 416 to be the Arbitrator.

the personentitled to the use of the name'Architect' and


named in article3 or any successor duly appointed under
article3 or otherwise agreed as the personto be the
Architect.

79 rticles or
Articles of Agreement:

Base Date:
the Articles of Agreementto which the Conditions are
annexed, and referencesto any recital are to the recitalsset
out beforethe Articles.

the date stated in the Appendix.

Footnote In1 [Not used].

P With 98 (9B3) @The Joint Contracts Tribunal Limited 2003 13


Word orphrase Meaning

CDM Regulations: the Construction(Designand Management)Regulations


1994oranyremakingthereoforanyamendmenttoa
regulationtherein.

Certificate of Completion of see clause 17-4.


MakingGood Defects:

CompletionDate: the Datefor Completion as fixed and stated in the Appendix


or any date fixed either under clause25 or in a confirmed
acceptance of a 13A Quotation.

Conditions: the clauses 1to 37, either clau


416,41Cand42andtheSupp
Agreement') annexedto the

confirmedacceptance: see clause 13A.3.2.

Contract Bills: the Billsof Quantitie


have been pricedby
behalfofthe Parties

Contract Documents: the Contr


Agreeme

Contract Drawings:

Contract Sum:

Contractor:

Contractor's

Datefor Completion: in;theAppendix.

din the Appendix underthe referenceto

ed in the Appendix under the referenceto

Domesty&&%%ycto v see clause 19.2.

the person named as Employer in the Articles of Agreement.

ionising radiationsor contamination by radioactivityfrom


any nuclear fuel or from any nuclear waste from the
combustionof nuclearfuel, radioactivetoxic explosiveor
other hazardous propertiesof any explosivenuclear
assembly or nuclear component thereof, pressurewaves
caused by aircraft or other aerial devices travelling at sonic
or supersonic speeds.

the certificateto which clause30.8 refers.

where it is stated in the Appendixthat all the CDM


Regulations apply, the plan providedto the Principal
Contractor and developed by himtocomply with regulation
15(4)oftheCDM Regulationsand,forthe purposeof
regulation 10of the CDM Regulations, received bythe
Employer before any constructionwork underthisContract
has started; and any further developmentof that plan by the
PrincipalContractor duringthe progressof the Works.

14 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


Word or phrase Meaning

Information Release the schedule referredto in the Sixth recital or as varied


Schedule: pursuantto clause5.4.1.

Interim Certificate: any one of the certificatesto which clauses30.1 and 30.7 and
the entry in the Appendix under the referenceto clause
3001.3refer.

Joint Fire Code: the Joint Code of Practice on the Protectionfrom Fire of
ConstructionSites and Buildings UndergoingRenovation
which is published b
the Fire ProtectionA
Associationof Britis
Fire OfficersAssociationan
is current at the Base Date,
from timeto time.

Joint Names Policy: see clause22.2.

NominatedSub-Contract: ed Sub-Contract

Nominated Sub-

NominatedSub-Contractor:

Nominated Supplier:

NumberedDocuments: annexedto Agreement NSC/A


Agreement).

Parties: A as the EmDlover


in the Articles of Agreement.
. .

Contractor named as the Employeror


Articles of Agreement.

Periodof interim riod named in the Appendix underthe referenceto


Certificates:

person:- or body corporate.

the Architect orthe other person named in article6-1or any


successor duly appointed by the Employer as the Planning
Supervisor pursuantto regulation6(5) of the CDM
Regulations.

tical b p l e t i o n : seeclause17.1.

see clause 13.4-1.2 Alternative A.

&I Cfitractor: the Contractor or any other contractor duly appointed by the
Employeras the PrincipalContractor pursuant to regulation
6(5) of the CDM Regulations.

s m : includesa sum providedforwork whether or not identified


as being for defined or undefinedwork and a provisional
sum for PerformanceSpecifiedWork see clause 42.7.

Christmas Day, Good Friday ora daywhich underthe


Bankingand FinancialDealingsAct 1971is a bank
holiday. 10)

Footnote to] Amendes necessalyifdifferent PublicHolidaysare


applicable.

P With 98 (9B3) @The Joint Contracts Tribunal Limited 2003 15


~~
~~

Word orphrase Meaning

Quantity Surveyor: the person named in article4oranysuccessorduly


appointed under article 4or otherwiseagreed as the person
to be the QuantitySurveyor.

RelevantEvent: any one of the events set out in clause25.4.

Retention: see clause30.2.

RetentionPercentage: see clause30~4~1.1and any entry in the Appendix underthe


referenceto clause3Om4.1-1.

Site Materials: all unfixed materialsand goods


adjacenttothe Works and inten
therein.

SpecifiedPerils: fire, lightning, explosio


overflowing of water
aircraftand otheraer
therefrom, riot and ci
Excepted Risks.

Standard Methodof
Measurement:

Statutory Requirements:

Valuation:
Date/ aupQ1.
see KV Surveyor pursuantto clause
amount of any Price Statement
cceptedpursuantto clause 13-4-1-2
ended Price Statementor any part
rsuantto clause 13.4-1.2 paragraph

ibed in the First recitaland shown


describedby or referredto in the Contract Documents
ing any changes made to these works in
e with this Contract.

Contractor's ion of the Architect to the Employerand whether or not the


responsibility works, the Contractor shall remainwholly responsiblefor
inaccordancewith the Conditions,
he Architect orthe clerk of works, if appointed, at any time goes on to the
workshop or other placewhere work is being preparedto inspectthe same
the Architect includesthevalue of any work, materialsorgoods in a
ayment or issuesthe certificate of PracticalCompletionor the Certificateof
Making Good Defects.

y a further appointment replaces


rsuant to, article 6.1 or replacesthe
ncipal Contractor, the Employer
immediately upon suchfurther appointmentnotify the Contractor in writing of the
e and address of the new appointee.

I
16 @The Joint Contracts Tribunal Limited 2003 P With 98 (9B3)

- .
~~ ~

d
Giving or service 1-7 Where the Contract does not specificallystatethe manner of giving or service of any notice
of noticesorother or other document required or authorised in pursuanceof this Contract such noticeor other
documents
document shall be given or served by any effective means to any agreedaddress. If no
address has been agreedthen if given or served by being addressed, pre-paidand delivered
by postto the addressee's last known principal businessaddressor, where the addressee is
a body corporate, to the body's registeredor principaloffice it shall be treatedas having been
effectively given or served.

Reckoning 1-8 Where underthis Contract an act is requiredto be done within a specified period of days after
periodsof days or from a specified date, the period shall begin immediatelyafterthat date. Where the period
would include a day which is a Public Holidaythat day shall be excluded.

Employer's 1*9 The Employer may give written notice to the Contractor that fro
Representative the individual identified in the notice will exerciseall thefunctio
in the Conditions subject to any exceptions stated in the notice.

Applicable law 1.10 Whatever the nationality, residenceor domicile of th


contractor or supplier and wherever the Works are si
law applicableto this Contract.I ~ I

Electronicdata 1.11 Where the Appendix so states, the 'Supplemental Pr


interchange Conditions shall apply.

Contracts(Rights 1.12 Notwithstandingany other provision of this Contract n


of Third Parties) purportstoconferany rightto enforce any
Act 1999 -
contractingout

2 Contractor's obligations
Contract 2.1 The Contractorshall upon and s rryoutandcompletethe Works
Documents workmanshipofthe
re and to the extent that approval
hip isa matterforthe opinion of
e satisfaction of the

Contract Bills - 2.2 II override or modifythe applicationor


relationto the Articles of Agreement, the Conditions or
Articles,
Conditionsand
Appendix
2.2

Preparationof dum bill issuedas part ofthe information referredto


Contract Bills - ining a 13AQuotation),unless otherwise
errorsin
preparation etc. ny specifieditem or items, are to have been
rd Method of Measurement;

bill issued as part ofthe information


rposeof obtaining a 13A Quotation which
mployer)there is any departurefrom the
tion referredto in clause 2.2.2.1 orany error in descriptionor in
ing any error in or omission of information in
which is the subject of a provisionalsum for definedwork) then such
e or error or omission shall not vitiate this Contract but the departureor
r omissionshall becorrected;where the description of a provisional sum for
ed work does not providethe information required by the Standard Methodof
t the correctionshall be made by correctingthe descriptionso that it
such information; any such correction underthis clause 2.2.2.2 shall
reavariation required by an instructionofthe Architect under

y discrepancy in or divergencebetween any two or more of the


een partsof any one of them or between

Footnotes IplToavoidany possibleconfusionoverthequite Iql Where the Partiesdo notwishthe law applicableto
distinctrolesofthe Architect and QuantitySurveyor and thiscontractto bethe law ofEnglandappropriate
the role of the Employer's Representativeneither the amendmentstoclauseVlOshould be made.
Architect northe Quantity Surveyor should be
appointed asthe Employer'sRepresentative.

P With 98 19/03} @The Joint Contracts Tribunal Limited 2003 17

~
2.3 .I the Contract Drawings,

2.3 -2 the Contract Bills,

2.3 -3 any instruction issued bythe Architect underthe Conditions (save insofar as any such
instruction requires a Variation in accordance with the provisionsof clause 13-21.

2.3 .4 anydrawingsordocuments issued bythe Architect underclause5.3.1.1,5.4-1,5-4.2 or7,


and

2.3 -5 the Numbered Documents,

heshall immediatelygivetothe Architecta written notice specify


divergence, and the Architect shall issue instructionsin regardth

2.4 a1 lfthe Contractorshall find any discrepancy o


respect of PerformanceSpecifiedWork and
receipt by the Architect of the Contractor's Statem
Architect a written notice specifying the discrepan
shall issue instructionsin regardthereto.

2-4 -2 If the Contractoror the Architect shall find an


Statement,the Contractor shall correctthe S
inform the Architect in writing
- of the correct shall be at no cost
to the Employer.

3 -
Contract Sum additions or ded erim Certificates
'
Where in the Conditions it is pr added to or deductedfrom the
Contract Sum or dealtwith b m then as soon as such amount
is ascertained in w into account in the computation
of the next Interim Iascertainment.

4 Architect's instru

Compliance with 4.1 e1 The Contrac th all instructionsissuedto him bythe


Architect's respectof which the Architect is expressly
instructions
sue instructions;save that:

requiring a Variation within the meaning of clause


ot complyto the extent that he makes reasonable
g tothe Architect to such compliance;

clause 13.2-3clause 13Aappliestoan instruction, thevariation to

mw
tion refersshall not be carried out until

ect has issuedto the Contractor aconfirmed acceptance of the 13A

struction in respect of thevariation has been issued under clause 13A.4.1.

ys after receiptof a written noticefrom the Architect requiring compliance


uctionthe Contractor does not comply therewith, then the Employer may
pay other personsto executeany work whatsoeverwhich may be
ve effectto such instruction; and all costs incurred in connection with
ent may be deducted by him from any monies due orto become due to
the Contractor underthis Contract or may be recoverablefrom the Contractor by the
Employerasa debt.

hat purportsto be an instruction issuedto him by the Architect the


empowering Contractormay requestthe Architect to specify in writing the provision of the Conditions
instructions
which empowersthe issueof the said instruction.The Architect shall forthwith complywith
I
any such request, and if the Contractorshall thereafter comply with the said instruction
(neitherParty beforesuch compliance having invokedthe proceduresunderthis Contract

18 @The Joint Contracts Tribunal Limited 2003 P With 98 19/03)


4.2 continued
!

relevantto the resolutionof disputesor differencesin order that it may be decidedwhether


the provision specifiedby the Architect empowersthe issueof the said instruction), then the
issue of the same shall be deemedfor all the purposes of this Contract to have been
empowered by the provision of the Conditionsspecified by the Architect in answerto the
Contractor's request.

Instructionsto be 4.3 .1 All instructions issued by the Architect shall be issued in writing.
in writing
Procedureif 4-3 .2 If the Architect purportsto issue an instructionotherwisethan in writing it shall be of no
instructionsgiven immediate effect, but shall be
otherwisethan in
writing within 7 days, and if not dissentedfrom in writing bythe Archit
within 7 days from receiptof the Contractor's confirmation
expiration of the latter said 7 days. Providedalways:

writing shall himself confirm the same,in,wri


obligedto confirm as aforesaid, and thesaid
date of the Architect's confirmation: and

.2 I -2 that if neitherthe Contractor


themannerand atthetimea

deemedto havetaken effect on th


writing bythe Architect.

5 Contract Documents other -


Custodyof 5.1 The Contract Drawi in the custodyofthe Architect or
ContractBills and the Quantity Survey le times for the inspectionof the
Contract
Drawings Employerand ofthe

e Architectwithout charge to the


Contractor shall pr ave been previously so provided)with:

5.2 -1 onecopyce yer of the Contract Documents;

5.2 -2 two further c

5.2 -3 two

Descriptive
schedulesetc. -
master
programmeof
Contractor
I

thoutcharge tothe Employershall providethe Architect (unlesshe


reviouslyso provided)with 2 copies of his master programmefor
he Works and within 14 days of any decision by the Architect under
or ofthe date of issueof a confirmed acceptance of a 13A Quotation

tained in the descriptive schedulesor other like documents referredto in


.1 (norinthe master programmefortheexecution ofthe Works or any
t to that programmeor revision therein referredto in clause 5.3.1.2) shall
imposeany obligation beyondthose imposed by the Contract Documents. lsl

copies of the information referredto in the InformationRelease Scheduleare releasedat


the time stated in the Schedule providedthat the Employerand Contractor may agree,
which agreement shall not be unreasonablydelayed orwithheld, tovary any suchtime.
I
Footnotes IrlTo be deleted if no master programme is required. [slWords in parenthesesto bedeleted if nomaster
programmeis required.

I P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 19


Provisionof 5.4 -2 Except to the extent included in the InformationReleaseSchedulethe Architect as and
further drawings when from time to time may be necessary without charge to the Contractorshall provide
or details
him with 2 copies of such further drawings or details which are reasonablynecessaryto
explain and amplify the Contract Drawings and shall issue such instructions(including
those for or in regardto the expenditureof provisionalsums)to enablethe Contractorto
carry out and completethe Works in accordance with the Conditions. Such provision
shall be made or instructionsgiven at a time when, having regardto the progress of the
Works, or, where in the opinion ofthe Architect PracticalCompletionof the Works is
likely to be achievedbeforethe Completion Date, having regardto such Completion
Date, it was reasonably necessary forthe Contractorto receive suchfurther drawings or
details or instructions.Wherethe Contractor is aware and has reasonablegroundsfor

Contractor to receivesuch further drawings or details or instruc


shall, if and to the extentthat it is reasonably practicab

Availability of 5.5 The Contractor shall keep one copy of the Contract
certain of Quantities, one copy of the descriptiveschedule
documents

clause 5.4.2 uponthe site so as to be availableto the


reasonabletimes.

Return of
drawings etc.
likenaturewhich bearthenameoftheArc

Limitsto use of 5-7 Noneofthe documents providedin a tion Release Schedule or


documents mentionedin clauseSshall be ose otherthan this
Contract, and neither the Empl
useexceptforthe purposes of

lssueof 5.8 Except where 0th cate to be issued by the Architect


Architect's under the Conditi mmediatelyupon the issueof
certificates
y thereof to the Contractor.

Supply of as-built actor shall without further charge to the


drawingsetc. -
Performance
SpecifiedWork

struction on the expenditure of the provisional sum

ices, fees and charges

Statutory the Contractor shall comply with, and give all notices required by,
Requirements any instrument, rule or order made under any Act of Parliament,
aw of any local authority or of any statutory undertaker which
regardto the Works or with whose systems the same are or will
requirementsto be socomplied with being referredto in the
as 'the Statutory Requirements').

actor shall find any divergencebetweenthe Statutory Requirementsand all


e documents referredto in clause 2.3 or betweenthe Statutory Requirements
truction ofthe Architect requiringa Variation issued in accordancewith
he shall immediatelygive to the Architect a written noticespecifyingthe

lfthe Contractor gives notice under clause 6.1-2or ifthe Architect shall otherwise
discover or receive notice of a divergence betweenthe Statutory Requirementsand all

c or any of the documents referredto in clause2-3or betweenthe Statutory


Requirementsand any instruction requiring a Variation issued in accordancewith
clause 13.2, the Architect shall within 7 days ofthe discovery or receipt of a notice issue
instructionsin relation to the divergence. If and insofar as the instructions requirethe
Works to bevaried, they shall be treated as ifthey were Architect's instructions requiring
a Variation issued in accordance with clause 13-2.

20 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


6.1 If in anyemergencycompliancewithclause6-1.1 requirestheContractortosupply
materials or executework before receiving instructionsunder clause6-1-3the
Contractor shall supply such limited materialsand executesuch limited work as are
reasonably necessary to secure immediatecompliancewith the Statutory
Requirements.

The Contractorshall forthwith inform the Architect of the emergency and of the
stepsthat he istaking underclause6.1.4.1.

Workexecuted and materialssuppliedbythe Contractor underclause6.1-4.1shall


betreated as ifthey had been executedand supplied pursuantto an Architect's
instruction requiring a Variation issued in accordance
the emergency arose because of a divergencebetwee
and all or any of the documents referredto in clause2.
Requirementsand any instruction requiringa Variati
clause 13.2, and the Contractor hascompliedwith cla

6-1 Providedthat the Contractor complies with clause6


liableto the Employer underthis Contract if the W
Requirementswhere and to the extent that such
from the Contractor having carried out work in
referredto in clause 2.3 or with any instruction
Architect in accordance with clause 13.2.

Divergence
Statutory
- 6-1 Ifthe Contractor or the Architect sha
Requirementsand any Contractor's
Requirementsand
the Contractor's written notice specifyingthe diverge
Statement writing of his proposedamendmen ence;and the Architect shall
issue instructionsin regardthe ance with such instructions
shall besubjecttoclause 42.15 r save as provided in clause
6.1-7.

Change in 6.1 Requirementswhich necessitates


Statutory Worksuch alterationor
Requirements
1
after Base Date underclause 13-2
requiring a Variation.

Feesorcharges 6.2 The Contractor against liability in respect of any fees


ndable under any Act of Parliament,
arliament, or any regulationor byelaw
undertaker in respectof the Works. The amount of
any such fees or c ratesortaxes otherthan value addedtax) shall be
added to the Cont

6.2 or materialsor goods supplied by a local authority or


sa NominatedSub-Contractoror as a NominatedSupplier; or

6.2

6.2 rovisionalsum in the Contract Bills.

Exclusionof 19and35shall notapplytotheexecutionofpartoftheWorks bya


provisionson such work solely in pursuanceof its
DornesticSub-
Contractorsand sub-contractorswithin the terms ofthis
NominatedSub-
contractors

use where the Appendix states that all the CDM Regulations apply

that the PlanningSupervisorcarries out all the duties of a planning supervisor under the
CDM Regu1ations;and

where the Contractor is not the PrincipalContractor,that the PrincipalContractorcarries


out all the duties of a principalcontractor underthe CDM Regulations.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 21

~~ __
Contractor - 6A.2 Where the Contractor is and while he remainsthe PrincipalContractor, the Contractorshall
compliancewith complywith all the duties of a principalcontractorset out in the CDM Regulations; and in
dutiesof a
principal particularshall ensure that the Health and Safety Plan has the features requiredby regulation
contractor 15(4)of the CDM Regulations.Any amendment by the Contractor to the Healthand Safety
Plan shall be notifiedto the Employer, who shall where relevantthereuponnotifythe
PlanningSupervisorand the Architect.
'

Successor 6A.3 Clause 6A-3appliesfrom the time the Employer pursuantto article 6.2 appoints a
appointedto the successortothe Contractor as the PrincipalContractor. The Contractorshall comply at no
Contractoras
Principal cost to the Employer with all the reasonablerequirementsof the PrincipalContractorto the
Contractor extentthat such requirementsare necessaryfor compliancewith the CDM Regulations;

Health andsafety 6A.4 Within the time reasonably required in writing bythe Plannin
file

not the PrincipalContractor, to the PrincipalCont


reasonably requiresfor the preparation, pursuan

7 Levels and setting out of the Works

The Architect shall determineany level


Works, and shall providethe Contract0
such informationas shall enable the C

arisingfrom hisown Employerthe Architect


may instructthat suc ate deductionfor such
errors not requiredt

Kindsand 8.1 -1 Allma e of the kinds and standards


standards etc. any Performance SpecifiedWork, in

8.1 *2 All

providedthatworkmanshipshall be tothe reasonable

carriedout in a proper and workmanlike mannerand in accordance

ctor shalltake all reasonablesteps to encourage employees and agents of the


and sub-contractorsemployedinthe executionof the Works to be registered
s under the ConstructionSkills CertificationScheme (CSCS)or any
,or qualified under an equivalentrecognisedqualificationscheme.
ctor shall not substituteany materialsor goods describedin any
's Statementfor PerformanceSpecifiedWork without the Architect's

-1 The Contractor shall uponthe request of the Architect provide him with vouchersto
provethatthe materialsand goods comply with clause 8.1.
goods

22 @.The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)

~~
Executedwork 8-2 -2 In respectof any materials, goods or workmanship, as comprised in executedwork,
which are to be to the reasonablesatisfactionof the Architect in accordancewith clause
2.1. the Architect shall expressany dissatisfactionwithin a reasonabletime from the
execution of the unsatisfactorywork.

Inspection -tests 8.3 The Architect may issue instructionsrequiringthe Contractortoopen up for inspectionany
work covered up or to arrange for or carry out any test of any materials or goods (whetheror
not already incorporated in the Works)or of any executedwork, and the cost of such opening
uportesting (togetherwith the cost of making good in consequencethereof)shall be added
to the Contract Sum unless providedfor in the Contract Bills or unlessthe inspectionor test
shows that the materials, goods orwork are not in accordance with this Contract.
n
Powersof 8.4 If anywork, materials orgoods are not in accordance with this
-
Architect work without prejudiceto the generality of his powers, may:
not inaccordance
with the Contract
8.4 notwithstandingthe power of the Architect under clause
regardto the removal from the site of all or any of such

8.4
NominatedSub-Contractor)and with the agre I

such work, materials or goods to remain and c


I

8.4 after consultationwith the Contractor

h instructionsare so
necessary and notwithstanding itionto the ContractSum
shall be made and no extension

8.4 d to these Conditions (following


clause 42), issue
as are reasonabl
the Architect the

r test, and notwithstanding


II be made. Clause 25.4.5.2 shall

Powersof 8.5 Where there is a clause8.1-3inregardtothecarryingoutofthe


-
Architect non- he Architect, without prejudiceto the generality
compliance with
clauseE.l.3 h the Contractor (who shall immediatelyconsult
ctor), issuesuch instructionswhether requiring a
essary as a consequencethereof. To the extent
notwithstandingclauses 13.4and 25 and 26 no
and no extensionof time shall be given in

Exclusionfrom 8.6 /ot unreasonably orvexatiously) issue instructionsrequiring the


the Works of employedthereon.
persons
employedthereon

n
respectofthesupplyand useincarryingoutthe

relationto any such articles, processes or inventions.

Architect's
U9.2 Providedthat where in compliancewith Architect's instructionsthe Contractor shall supply
instructions - and use in carrying outthe Works any patentedarticles, processes or inventions, the
treatmentof
royaltiesetc. Contractorshall not be liable in respect of any infringementor alleged infringement of any
patent rights in relationto any such articles, processes or inventionsand all royalties

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 23


~~

9.2 continued.

damages or other monieswhich the Contractor may be liable to pay to the persons entitled to
such patent rights shall be addedto the Contract Sum.

10 Person-in-charge

The Contractorshall constantly keep upon the site a competent person-in-chargeand any
instructionsgivento him by the Architect or directionsgivento him by the clerk of works in
accordancewith clause 12 shall be deemed to have been issuedto t h m

11 Access for Architect to the Works

The Architect and his representative


and to the workshops or other places of the Con
Contract, and when work is to be so preparedin
Sub-Contractoror a NominatedSub
contractso faras possiblesecureas
the Architect and his representativesan
such right effective. Access in accordan such reasonable
restrictionsof the Contractor or any Dome
Contractoras are necessaryto protectany
Domestic or NominatedSub-Contractorin

12 Clerk of works

owered by the Conditionsto issue

onfirmed then as from the date of

13

Definition of 13.1 Conditions means:


Variation
13.1 of the design, quality or quantity of the Works including

su bstitution of any work,

-2 th alteration of the kind or standardof any of the materials or goods to be used in


h $ o r k s ,

from the site of any work executedor materials or goods brought


e Contractor for the purposes of the Works other than work materials
h are not in accordance with this Contract;

e Employer of any obligationsor restrictionsin regardto the matters


-1.2.1to 13.1-2.4orthe addition to or alteration or omission of any
restrictionsso imposed or imposed by the Employer in the Contract

-2 -1 accesstothesiteoruseofanyspecific partsofthesite;

-2 -2 limitations of working space;

-2 -3 limitations of working hours;

24 @The Joint Contracts Tribunal Limited 2003 P With 98 19/03)


13.1 e2 -4 the executionor completion of the work in any specific order;

but excludes

13.1 -3 nomination of a sub-contractorto supply and fix materialsor goods or to executework


of which the measuredquantities have been set out and priced bythe Contractor in the
Contract Bills for supply and fixing or execution bythe Contractor.

Instructions 13.2 -1 The Architect may issue instructionsrequiring a Variation.


requiringa
Variation
13.2 -2 Any instruction under clause 13.1-2shall be subject to the Contractor's right of
reasonableobjectionsetout inclause 4.1-1.

13.2 e3 Thevaluation of a Variation instructedunder clause 13-2-1


clause 13.4.1-1 unlessthe instructionstatesthat the treat
Variation are to be in accordance with clause 13Aor unle
clause 13A-8applies. Where the instructionso states'cla
Contractorwithin 7 days (or such other periodas may beagre
instruction states in writing that he disagreeswith th
instruction. If the Contractor so disagrees, claus
and thevariation shall not becarried out unless
Variation is to be carried out and is to be valued p

13-2 e4 The Architect may sanction in writing anyvariati ractor othewise


than pursuanttoan instructionofthe Arch'

13-2 a 5 No Variation required byth


A- tioned by him shall vitiate
this Contract.

Instructionson 13.3 The Architect shall issue instru


provisional sums
13.3 e1 theexpendit

13.3 .2 the expendit

Valuationof 13.4 .1 -1 Subjectt


Variations and
provisionalsum
workandwork ructionof the Architect or su bsequently
covered by an
Approximate
Quantity
Conditionsis to be treated as if itwere a Variation
noftheArchitect underclause13.2,and

Contractor in accordance with instructions by the


diture of provisionalsums which are includedin the
ontra Bills, and

I or exe uted bytheContractorforwhich an Approximate Quantity has


b n in lud d in the Contract Bills
- .
agreed bythe Employer and the Contractor, bevalued (in

that the Price Statement or amended Price Statement is


B in clause 13.4.1.2. Clause 1341.1 shall not apply
the Architect has issued a confirmed acceptance
/7
( m q r a p
Alt

h
atiw@A: Contractor's Price Sfaf@ment

A1 Without prejudiceto his obligation to comply with any instruction or to execute


anyworktowhichclause 13.4-1.1 refers,theContractormaywithin21 days
from receipt ofthe instructionorfrom commencementofwork forwhich an
Approximate Quantity is included in the Contract documents or, if later, from

Footnotes [tl Alonger period than7daysmayneedto beagreed [ul If the Architect nominates a subcontractoror
where the Variation involvesa major input from sub- supplierby any instructionsunderclause 13.3.1,then
contractors. the provisionsof Part2oftheConditionsapplytosuch
nominations.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 25


I 13.4 .1 -2 A1 continued

receipt of sufficient informationto enablethe Contractorto prepare his Price


Statement, submit to the Quantity Surveyor his price ('Price Statement') for
such complianceor for such work.

The Price Statement shall state the Contractor's price for the work which shall
be based on the provisionsof clause 13.5 (valuationrulesland may also
separatelyattach the Contractor's requirementsfor:

-1 any amountto be paid in lieu of any ascertainmentunderclause26-1of


direct loss and/or expense not includedin an
in any previous ascertainment under clause 26;

a2 any adjustmentto the timeforthecompletio


that such adjustment is not included in any r
that has been made bythe Architect underc
acceptance of any 13A Quotation. (Seepara

A2 Within 21 days of receiptof a Price


consultationwiththe Architect,

either

-1 thatthe Price Statement isac

or
m u
-2 that the Price Statem
F \ W ,or a art there is t accepted.

en acceptedthe price in that


been acceptedshall in
ed from the ContractSum.

reof has not been accepted:

in his notificationtothe Contractorthe

an amended Price Statementwhich is


urveyor after consultationwith the Architect;

ceipt of the amended Price Statement the Contractor


ot he accepts the amended Price Statementor part
paragraphA3 shall apply to that amendedPrice
of; if no statementwithin the 14day period is made
epted, in whole or in part,

entthatthe amended Price Statement is not accepted by the

of clause41A.

ragraphA2 the Price


the Contractor may, on or
2 refers, refer his Price
r in accordancewith the

A6 Where a Price Statement is not accepted by the Quantity Surveyor after


consultation with the Architect or an amended Price Statement has not been
accepted by the Contractor and no referenceto the Adjudicator under
paragraphA4.3 or paragraphA5 has been made, Alternative 6 shall apply.

A7 .1 Where the Contractor pursuantto paragraphA1 hasattachedhis


requirementsto his Price Statementthe Quantity Surveyor after
consultation with the Architect shall within 21 days of receiptthereof notify
the Contractor

26 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/031


eitherthatthe requirement in paragraphA1-1in respectofthe amount
to be paid in lieu of any ascertainment under clause26.1 is accepted or
thatthe requirementis not accepted and clause 26.1 shall apply in
respectof the ascertainmentof any direct loss andlor expense; and

-1 -2 eitherthatthe requirement in paragraphAl-2in respect of an


adjustmentto the time for the completionof the Works is acceptedor
that the requirement is not accepted and clause 25 shall apply in
respectof any such adjustment.

A7 -2 If the Quantity Surveyor has not notifiedthe Contractorwithin the 21 days


specified in paragraphA7-1,clause25andclause26 ply as if no
requirementshad been attachedto the Price State-

-1 -2 Alternative6

The Valuation shall be made by the Quantitv


provisionsof clauses 13.5.1 to13.5.7.

-1 .3 Thevaluation of Variationsto the sub-contr


t
instructionsissue
Contractorfor wh

Emdoyer) be made in accordance


NSCIC:

13.4 .2 Where underthe instructionoft iture of a provisional sum


tendersforthe work
ted byoron behalfofthe
the accepted tender of the
struction of the Architect

Valuation rules 13.5 a1 To the extent th ecution of additional or substitutedwork


or to the execution of workfor which an
ontract Bills such workshall be measured and

e1 -1 wheret work is of similar characterto, is executed under


s not significantlychangethe quantity of, work set out
nd pricesfortheworksosetoutshall determinethe

k is of similar character to work set out in the


similar conditionsthereto andlor
gesthe quantity thereof, the ratesand pricesforthe workso set
sis for determiningthe valuation and the valuation shall include a
rence in conditions and/or quantity;

itional or substituted work is not of similar character to workset out in


illstheworkshall bevalued atfair ratesandprices;

ntity is a reasonablyaccurate forecast of the quantity of


eforthe Approximate Quantityshall determine the

the Approximate Quantity is not a reasonablyaccurateforecast of the


ty ofwork requiredthe rate or price forthat Approximate Quantity shall be the
ordeterminingtheVaIuation and thevaluation shall includeafairallowance
for such differencein quantity.

Providedthatclause 13-5-1.4andclause 13.5-1.5shallonlyapplytotheextentthatthe


work has not been altered or modified otherthan in quantity.

13.5 -2 To the extent that the Valuation relatesto the omission of work set out in the Contract
Bills the rates and pricesfor such worktherein set out shall determine thevaluation of
the work omitted.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003


13.5 .3 In any valuation of work under clauses 13-5.1and 13.5-2:

-3 -1 measurement shall be in accordance with the same principlesas thosegoverning


the preparationof the Contract Bills as referredto in clause 2.2.2.1;

.3 -2 allowance shall be madefor any percentage or lump sum adjustmentsin the


Contract Bills; and

-3 .3 allowance, where appropriate, shall be made for any additionto or reductionof


preliminaryitemsof the type referred to in the Standard Methodof Measurement;
providedthat no such allowanceshallbe made in respectofcompliancewith an
Architect's instructionforthe expenditure of a provisionals

13.5 -4 To the extentthatthe Valuation relatesto the executionof


which cannot properly bevaluedby measurement theVal

Contractor inthe Contract Bills; or

-4 -2 where the work is within the province e said Institution

and issueda defi


calculated in acc

Providedthat in any case daily spent uponthe work, the


workmen's names, the pl ed shall be deliveredfor

13.5 -5 If

as to the expenditureof a provisionalsum for


e instructionforthat workdiffersfrom the
nthe Contract Bills or

kfor which an ApproximateQuantity is includedinthe Contract


s the quantity is more or lessthan the quantity ascribed to that

eated as if it had been the subjectof an instructionofthe Architect


under clause 13.2 which shall be valued in accordance with the

of Performance SpecifiedWork shall includeallowanceforthe


work involvedin the preparationand
other documents;

or substitutedwork relatedto PerformanceSpecified


the rates and prices of work of a similar character set
out in the Contract Bills or the Analysis making due allowance for any changes in the
conditions underwhichthe work iscarriedoutand/orany significantchange in the
quantityof the workset out in the Contract Bills or in the Contractor's Statement.
Wherethere isnoworkof asimilarcharactersetoutinthecontract Billsorthe
Contractor's Statement afairvaluationshall be made;

Footnote [VIThere are three Definitions to which clause 13.5.4.2 the Royal Institutionand the ElectricalContractors
refers namely those agreed betweenthe Royal AssociationofScotlandandthe Royal Institutionandthe
Institutionand the Electrical ContractorsAssociation, Heatingandventilating ContractorsAssociation.

28 @The Joint Contracts Tribunal Limited 2003 P With 98 i9/03)


13.5 continued

-6 -3 the Valuation of the omissionof work relatingto PerformanceSpecifiedWorkshall


be in accordance with the rates and prices for such workset out inthe Contract Bills
or the Analysis;

-6 -4 anyvaluationofworkunderclauses 13.5.6.2and 13.5.6.3shall includeallowancefor


any necessaryadditionto or reductionof preliminaryitems ofthe type referredto in
the Standard Methodof Measurement;

.6 -5 where an appropriatebasis of a fair valuation of additionalor substitutedwork


relatingto PerformanceSpecifiedWork is dayworkthe Val
accordancewith clauses 13.5.4-1or 13.5.4.2 and the provis
apply;
-6 -6 if

compliancewith any instructionunderclau


PerformanceSpecifiedWork or

compliancewith any instructionas to th

42.7.2 andlor 42.7.3 for such Pe

substantially changes the conditi


(includingany other Performa erwork (including
as if it had beenthe subject
er clause 13.2 or, if
relevant, underclau rdancewith the

13.5 -7 Tot executionof additionalor


ent that the valuationof any work

Providedthat no all erclause 13.5foranyeffectuponthe regular

would be reimbur

Contractor's right 63.6 Where it is necess


to bepresentat
measurement

Valuations - aluation under clause 13.4.1.1, to an agreement by the Employer


Employed clause 13-4.1-1refers, to a 13AQuotationforwhich the Architect
Contractor
agreement -
13A Quotationfor
aVeriationend
I Variations
I thereto - addition
toor deduction
from Contract
-
uction Contractor's quotation in compliance with the instruction

Contractorto Ionly applyto an instructionwhere pursuanttoclause13.2-3the Contractor


eed with the applicationof clause 13Atosuch instruction.

ion to which clause 13A is to apply shall have providedsufficient

Quotationfrom the NominatedSub-Contractor in accordance with clause 3.3A.1.2 of the


ConditionsNSC/C. lfthe Contractor reasonably considersthatthe informationprovided
is not sufficient, then, not later than 7 days from the receiptofthe instruction, he shall
request the Architectto supply sufficientfurther information.

Footnote [wlTheinformationprovidedtotheContractorshould inanaddendum billofquantitiesendforina


norrnallybeinasimilarformattothetprovidedetthe specificationor otherwise. If an addendumbill is
tenderstege;and may be intheformofdrawing sandfor providedseetherelevant provisionsinclause2-2.2.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 29


13A-1 -2 The Contractor shall submittotheQuantity Surveyor his 13AQuotationincompliance
with the instructionand shall include therein 3.3AQuotations in respectof any parts of
the Variation which relate tothe workof NominatedSub-Contractorsnot laterthan 21
daysfrom

the date of receiptof the instruction

or if applicable,the date of receipt bythe Contractorof the sufficientfurther


information to which clause 13A.1-1refers

whichever date is the later and the 13AQuotationshall remainopen for acceptance by
the Employerfor 7 days from its receiptbythe Quantity Survey

13A-1 .3 The Variation for which the Contractor has submitted his 13
carried out by the Contractor or as relevant by any Nomina
receipt by the Contractor of the confirmed acceptance iss
toclause 13A-3.2.

Content of the 13A-2 The 13A Quotation shall separately comprise:


Contractor's
13A Quotation
13A.2 e1 the value of the adjustmentto the Contract Sum
13A.2-3refers)includingtherein the effect of th erwork including

reference,where relevant,to the ra


where appropriate, allowancesfor

13A.2 e 2 any adjustmentto the time require orks (includingwhere


relevantstating an earlier Corn Completiongiven in the
Appendix) to the extent that su in any revision of the
Completion Datethat has bee er clause 25.3 or in his
confirmed acceptance of an

13A-2 -3 the amount to b r'clause26.1 of direct loss and/or


ion or in any previous
ascertainment

13A-2 .4 a fair and reaso cost of preparingthe 13A Quotation;

tion, shall provide indicative information in


statements on

13A.2 .5 theaddition res

13A-2 -6 them
tu? rces(if y) quiredtocarryouttheVariation;and

hall contain reasonably sufficient supporting information to


by oron behalfofthe Employer.

Acceptanceof o accept a 13A Quotationthe Employershall so notify the


13AQuotation - t later than the last day of the period for acceptance stated in
Architect's
Confirmed
acceptance
ect shall, immediately uponthat
writing to the Contractor (in clause
irmed acceptance'):

Contractor isto carry outthevariation;

stment ofthe Contract Sum, includingtherein any amounts'to which clause


and clause 13A-2.4refer, to be made for complying with the instruction

equired bythe Contractor for completion ofthe Works


and the revisedCompletion Date arising therefrom (which, where relevant, may be
a date earlier than the Datefor Completion given in the Appendix) and, where
relevant, any revisedperiod or periodsforthe completion of the NominatedSub-
Contract work of each NominatedSub-contractor; and

30 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)

~
13A-3 continued

.2 - 4 that the Contractor, pursuantto clause3.3A-3oftheConditions NSC/C, shall accept


any3-3AQuotationincludedin the 13A Quotationfor which the confirmed
acceptance has been issued.

Contractor's 13A.4 IftheEmployerdoes notacceptthe 13AQuotationbytheexpiryofthe period foracceptance


13AQuotation stated in clause 13A.1-2,the Architect shall, on the expiry of that period,
notaccepted

either

13A-4 -1 instructthatthevariation isto becarriedoutand isto bevalued pu


13-4-1; Rau
I

Payment fora 13A-5 If a 13A Quotation is not accepted a fair and rea
13A Quotation Contract Sum in respectof the cost of preparat
Quotation has been preparedon a fair and reas
Employerof a 13A Quotationshall not of itself be evi
preparedon a fair and reasonablebasis.

Restrictionon use 13A.6 lfthe Architect has not, underclause 13A.3-


of a 13A Quotation Quotation neitherthe E
purposewhatsoever.

Numberofdays- 13A-7 The Employer and the Contractor m e the number of days stated
clauses 13A.1.1 in clause 13A-1.1and/o ent shall beconfirmed in
and/or 13A.1.2
writing bythe Employerto the the Contractorshall notify each
Nominated Sub-Contractorof ction pursuantto thisclause
13A.7.

Variations towork 13A-8 lfthe Architect toworkforwhich a 13AQuotation


forwhich a a confirmed acceptance to
confined
acceptance of a
13AQuotationhas
been issued -
valuation

the Variation.

Quality and included in the Contract Sum shall be deemedto be that


quantity of work
included in
ContractSum

Contract Sum - be adjusted or altered in any way whatsoever otherwisethan in


only adjusted provisionsof the Conditions, and subject to clause 2-2-2.2any
underthe
Conditions - not in the computationof the Contract Sum shall be deemedto
errors in
computation

x - splppDementral provisions
D nthe supplemental provisionspursuant hereto (hereinaftercalledthe 'VAT
A ' means the value addedtax introduced by the Finance Act 1972which is
der the care and management ofthe Commissionersof Customs and Excise (hereinafter
nd intheVATAgreementcalled 'theComrnissioners').

P With 98 (9/031 @The Joint Contracts Tribunal Limited 2003

-~ ~~~ ~~ -~
I Contractsum - 15-2 Any referencein the Conditionsto 'Contract Sum'shall be regardedas such Sum exclusive
exclusiveof VAT of any tax and recovery by the Contractor from the Employerof tax properly chargeableby
thecommissioners on the Contractor underor byvirtue ofthevalue AddedTax Act 1994or
any amendmentor re-enactmentthereof on the supply of goods and services underthis
Contractshallbe underthe provisionsofclause 15andOftheVATAgreement. Clause 1Aof
theVATAgreement shall only apply where so stated in the Appendix. [XI

Possible 15-3 To the extent that after the Base Datethe supply of goodsand servicesto the Employer
exemptionfrom becomes exempt from the tax there shall be paidto the Contractoran amount equal to the
VAT
loss of credit (inputtax)on the supply to the Contractor of goods and serviceswhich
contribute exclusivelyto the Works.

16 Materials and goods unfixed or off-site

Unfixedmaterials 16.1 Unfixed materials and goods delivered to, placed on or adjace
and goods - on
site

withheld. Wherethevalue of any such mate


been included in any Interim Certificateund

Unfixedmaterials 16-2 Where thevalueof any'listed items' has in


and goods -
off-site
the Employer, such listed items

storage, handlinga
ause 16.1 (exceptthe

Certificateof 17.1 When in the op ical Completion of the Works is achieved and the
Practical clause 6A.4, and, if relevant, the Contractor has
Completion
uilt drawings etc. - Performance Specified Work),
ffect and PracticalCompletionof the Worksshall
act to havetaken place on the day named in such

Defects, ther faults which shall appearwithin the Defects Liability Period

I shrinkagesor
other faults

o otherwise instructthen an appropriatedeductionin respectof any such


f-7 ages or other faults not madegood shall be madefrom the Contract Sum.

g clause 17.2theArchitect maywhenever he considers it necessarysoto do


requiring any defect, shrinkage or other fault which shall appearwithin
Periodand which is dueto materialsorworkmanship not in accordance
ith this Contract orto frost occurring before PracticalCompletion of the Works, to be made
shall within a reasonabletime after receipt of such instructions
Employer unlesstheArchitectwith theconsent ofthe
U
Footnote IxlClause 1Acanonlyapplywhere thaContractor is
satisfied atthedatethe Contractisenteredintothat his
outputtaxonellsuppliestothe Employerunderthe
Contractwillbeeteithera positiveorazero rateoftex.

32 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


17-3 continued

Employershall otherwise instruct; and if the Architect does so otherwise instruct then an
appropriate deduction in respectof any such defects, shrinkages or other faults not made
good shall be made from the Contract Sum. Providedthat no such instructionsshall be
issuedafterdeliveryofascheduleof defectsorafter 14daysfrom theexpirationofthe
DefectsLiability Period.

Certificate of 17.4 When in theopinion oftheArchitectanydefects,shrinkagesorotherfauItswhich he may


Completionof have requiredto be made good under clauses 17.2 and 17-3shall have been made good he
Making Good
Defects shall issue a certificateto that effect, and completion of makinggood defects shall be
deemedforall the purposesofthisContractto have taken pl
certificate (the'certificate of Completion of Making Good Defects').

Damageby frost 17.5 In nocaseshalltheContractorbe requiredto makegoodat his


which may appear after PracticalCompletion, unlessthe Arch
damage is due to injury which tookplace before PracticalCO

18 Partial possession by Employer

Employer's 98-1 If at anytime ortimes beforethe date of issue bythe


wish - Completionthe Employerwishes to tak e Works and the
Contractor's
consent consent of the Contractor(whichconse orwithheld) has
been obtained, then, notwithstandinga
Contract,the Employermay take posses ct shall thereupon issueto
the Contractoron behalf of the Ernp the part or parts of
the Workstaken into possessionan took possession(in
clauses 18,20-3,22.3.1 and22C.1 re e relevant date'
respectively).

Practical 18.1 2 PracticalCompletionof the


Completion - e Defects Liability Periodin
relevantpan

Defectsetc. - 118.1 inkagesor other faults in the


relevant part e good under clause 17-2orclause

Insurance - 18.8 hecontractor underclause22Aorofthe


relevant part -2whichever is applicableto insure shall
not further or otherwise; and where clause

@Z;;ies;.the
Liquidated 18.1 paid by the Contractor or withheld or deducted by the Employer
damages -
relevantpart
ect of any period during which the Works may remain incomplete
ant date there shall be paid such sum as bearsthe same ratio to
be paid apart from the provisionsof clause 18as the Contract Sum
st amount ntainedtherein in respectofthe relevant part bearsto the Contract
ployer may give a notice
Contractor.
pursuanttoclause30~1~1~4that hewill deduct

A s Q w c o either e Employer
ntract. nor the Contractorshall, without the written consent of the other,

Where clause 19-12is stated in the Appendix to apply then, in the event of transfer by
the Employerof hisfreehold or leasehold interest in, or of a grant bythe Employer of a
leaseholdinterest in, the whole ofthe premisescomprisingthe Works, the Employer
may at any time after PracticalCompletion of the Works assignto any such transferee or
lesseethe right to bring proceedingsin the nameof the Employer (whetherby
arbitration or litigation)toenforceanyofthetermsofthisContract madeforthe benefit
of the Employerhereunder.The assignee shall be estoppedfrom disputing any
enforceable agreements reachedbetweenthe Employerand the Contractor and which

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 33


19.1 *2 continued I
arise out of and relateto this Contract (whetheror not they are or appear to be a
derogationfrom the right assigned)and made priorto the date of any assignment.

Sub-letting - 19.2 *1 A personto whom the Contractor sub-lets any portion of the Works other than a
DomesticSub- NominatedSub-Contractoris in this Contract referredto as a 'Domestic Sub-
Contractors - contractor'.
Architect's
consent
19.2 a2 The Contractorshall not without the written consent of the Architect (which consent
shall not be unreasonablydelayedor withheld) sub-let any portion ofthe Works. The
Contractor shall remainwholly respon
in all respects in accordance with clause
portion ofthe Works.

Sub-letting - list 19-3 -1 Where the Contract Bills providethat certain work measur
inContrectBills those Bills and priced by the Contract0
or annexedto the Contract Bills and se
the Contractortheprovisions of clause 19.3shall a

19.3 *2 .1 The list referredto in clause 19.3.1


Eitherthe Employer(ortheArchitec
entitled with the consent oftheothe
delayedor withheld, to add iviadditi
execution of a binding sub-contracta
Y - Y W
*2 .2 If at any time prior tot ct agreement and for
whatever reason less are able and willing to

reement (which agreement


d [vi the namesof other

ontractor who may sub-let to a


e with clause 19.2.

19-3 -3

19.4 ltshall beacondi to which clause 19-2or 19.3 refersthat:

b-Contractorunder the sub-contractshall determine


n (for any reason)of the Contractor's employment

6.1 oftheseconditions (inclauses19-4-2.2to.4called'theMain


ds deliveredto, placedon or
ntendedthereforshall not be
the Works unlessthe Contractor has consentedin
hich consent shall not be unreasonablydelayedor

accordance with clause 30.2 of the Main Contract Conditions, the value of
materialsor goods shall have been included in any Interim Certificate
ich the amount properlydue to the Contractor shall have been paid bythe
ods shall be and becomethe
shall not deny that such materials
are and have becomethe propertyofthe Employer;

Footnote IylAnysucheddition must beinitialledby oron behalfof


the Parties.

34 @The Joint Contrects Tribunal Limited 2003


-2 -3 providedthat if the Contractor shall paythe sub-contractor for any such materials or
goods beforethe value therefor has, in accordance with clause 30-2of the Main
Contract Conditions, been included in any Interim Certificateunder which the
amount properlydue to the Contractor has been paid bythe Employertothe
Contractor, such materials or goodsshall upon such payment by the Contractor be
and becomethe property of the Contractor;

*2 .4 the operation of clauses 19.4.2.1 to -3hereof shall be without prejudice to any


property in any materials or goods passingto the Contractor as provided in clause ~

30-3of the Main Contract Conditions (off-sitematerials or


I
19.4 -3 the sub-contractshall providethat if the Contractor fails
any partthereof, duetothesub-c
sub-contract, the Contractor shal
properly paid simple interestthe
payment of such simple interest shall be treated as
the Contractor;that the rate of
Rate of the Bankof Englandwhich iscurrent at
became overdue; and that any payment of sim
be construed as a waiver by th
principal amountsduefrom theC
and within the time stated in, the su
underthe sub-contractin regardto
the Contractor under the sub-contrac
by the contractor properlyto pay any e sub-contractto the sub-
contractor#

NominatedSub- 19.5 -1 The provisions of this Contra Sub-Contractorsare set out in Part
contractors e Conditionsthe Contractorshall
the Works in all respectsin
n of a sub-contractorto

19.5 -2 self required, unless otherwiseagreed, to


work which is to be carried out by a

20 Injury to perso d indemnity to Employer

Liabilityof II indemnifythe Employeragainst, any expense,


Contractor- oeverarising under any statute or at common law
personal injury or
-
death indemnity
toEmployer
h of any personwhomsoever arising out of or in the
the Works, exceptto the extent thatthe same is due
any personfor whom the Employer is responsible
d or otherwise engagedbythe Employerto whom clause 29

IIindemnifythe Employer against, any expense,


Contractor - aim or proceedingsin respect of any loss, injury or damage whatsoever to
injury or damage
alorpersonal insofarassuch loss, injury ordamagearisesoutofor inthe.
reasonofthecarryingoutofthe Worksandtothe extentthatthesame isdue
ence breach of statutory duty, omission or default of the Contractor, his
or of any personemployed or engagedupon or in connection with the
gents or of any other personwho may properly be
Works or any part thereof, his servantsor agents,
ployed, engagedor authorisedby him or by any
uting work solely in pursuanceof its statutory
nity is subject to clause 20.3 and, where clause
to any property requiredto be insured

P With 98 (9/03)
Injury or damage 20.3 -1 Subjectto clause 20-3.2the referencein clause20.2 to 'property real or personal'does
to property - not includethe Works, work executedand/or Site Materials up to and including the date
exclusionofthe
Works and Site of issue of the certificate of PracticalCompletion or up to and including the date of
Materials determinationof the employmentof the Contractor (whetheror not the validity of that
determination is disputed) under clause 27 orclause 28 or clause 28A or, where clause
22Capplies, underclause27 or clause 28orclause28Aor clause22C-4~3,whicheveris
the earlier.

20.3 .2 If clause 18 has been operated then, in respectof the relevant part and as from the
relevantdate, such relevant part shall not be regardedas 'the Works'or 'work executed'
for the purposeof clause20-3.1.

21 Insurance against injury to persons or property

Contractofs
insurance -
personal injury or
-
death injuryor
damageto
21.1.1.2 in respectof claims arising out of his li
20.2.
property

under a contract of service or appr


and in the course of such person's

cover 151:

- shall indemnifythe actor but onlyto the


extent that the Cont Employer underthe

ndix laalfor any one occurrence

send to the Arc entaryevidencethatthe


and are being maintained,

21.1 -3 lfthe Contrac ut or in maintaininginsuranceas provided in clause

ums therefor may be deducted by him from any


econtractor underthisContractorsuch amount may

Insurance - ndix thatthe insuranceto which clause 21.2.1 refers may be


liabilityetc.of Contractor shall, if so instructed by the Architect, take out a
Employer
e names of the Employerand the ContractorIbbi for such amount
as is stated inthe Appendix in respect of any expense, liability, loss,claim
gs which the Employermay incur or sustain by reasonof injury or damage
rty caused by collapse, subsidence, heave, vibration, weakening or removal
r lowering ofground water arising out of or in thecourseof or by reasonof
gout of the Works exceptinginjury or damage:

h the Contractor is liable under clause20.2;

-3 which can reasonably beforeseento be inevitable having regardtothe natureofthe


work to be executedand the manner of its execution;

FOOtnOteS Izl It should benoted thatthecovergrantedunderpublic IaalTheContractormay,if hesowishes,insurefora


liabilitypoliciestakenoutpunuanttoclause21~1~1 may sumgreaterthanthatstatedinthe Appendix.
not beco-extensive with the indemnity givento the
Employer inclauses20.1and 20.2forexampleeach lbbl Apolicyof insurancetaken out forthe purposesof
claim maybesubjecttotheexcessinthepolicyand clause 21*2shouldnot haveanexpirydateearlierthan
covermay not beavailablein respect of lossor damage theend of theDefects Liability Period.
duetogradual pollution.

36 @The Joint Contracts Tribunal Limited 2003 P With 98 (9IO.7)


~ ~~~

21-2 continued

-1 .4 which it istheresponsibilityoftheEmployertoinsureunderclause22C~1 (if


applicable);

-1 -5 to the Works and Site Materialsbroughton to the site of the Contract for the purpose
of its executionexcept in so far as any part or parts thereof are the subject of a
certificateof Practical Completion;

-1 -6 arisingfrom any consequence ofwar, invasion, act of foreign enemy, hostilities


(whetherwar be declared or not),civil war, rebellionor revolution, insurrectionor
militaryor usurpedpower;

.I a 7 directlyorindirectlycaused byorcontributedto
Risks;

.I .8 directlyor indirectlycausedbyorarisi
buildingsorotherstructureorofwate
the periodof insurance; save that this exc
pollutionor contaminationcaused by a sud
unexpected incidentwhich takes place
and place during the periodof insuranc
contaminationwhich arisesout of one inci
of this insurance to have occurredatthe time

-1 .9
other sums being payable byth
n-h4
which results in any costs or expen s being in rred y e Employeror in any
amagesfor breach of
or damageswould have

21.2 -2 Any such insurance as is refe all be placedwith insurersto be

21.2 -3 The amountsex eout and maintainthe insurance

21.2 .4 If the Cont maintainingthe Joint Names Policy as


y himself insure againstany risk in respect of

ExceptedRisks ses20.1,20.2and 21~1~1,theContractorshall


notbe

he effect of an ExceptedRisk.

lnsuranceofthe or clause 22C shall apply whicheverclause is statedto apply in the


works -
alternative
clauses

Footnote IcclClause~isapplicabletotheerectionof new structuresunderwhichthe Employer is required totake


buildingswherethecontradorisrequiredtotakeouta outa Joint NamesPolicyforAll Riskslnsuranceforthe
Joint Names Policyfor All Risks lnsurencafortheWorks Worksand alsoa Joint Names Policytoinsurethe
andclause228 isapplicable wherethe Employer has existingstructuresand theircontentsownedby him or
electedtotekeout such Joint NamesPolicy. Clause22C forwhich heis responsibleagainst lossordamage
is to be usedforalterationsofor extensionstoexisting thereto bythe Specified Perils.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 37


Definitions 22.2 Inclauses22A, 228,22C and, so far as relevant, in other clausesof the Conditions the
following phrases shall havethe meaningsgiven below:

All Risks Insurance: lddl insurancewhich providescover againstany physical loss or


damage to work executedand Site Materials and against
the reasonablecost of the removaland disposal of debris
and of any shoring and propping of the Workswhich results
from such physicalloss or damage but excludingthe cost
necessarytorepair, replaceor rectify

1 propew which is defectivedue to

.1 wear andtear,

-2 obsolescence,

.3 deterioration, rust or

ich was defective;

r, invasion, act of foreign


her war be declaredor

unicipalor local authority;

an Excepted Risk (asdefined in clause 1.3).

Joint Names Poli

any act of any person acting on behalf of or in connection


with any organisationwith activitiesdirected towards the
overthrowing or influencingof any government dejureor de
factobyforce orviolence.

insurance providedundera Joint Names Policy to which


clauses22A, 228 and 22C refer for physical loss or damageto
workexecuted and Site Materials and to an existing structure
and/or itscontentsdue to fire or explosion caused by
terrorism.

-0 Policiesissued by insurers are not standaidisedand


therewill besomevariationin thewaythe insurancefor
those risks isexpressed. See also Practice Note22 and
Guide,Part A.
[eelIn any policyfor 'All Risks Insurance'taken out under
clauses22A.22Bor22CZ cover should not be leduced
clausesandof thedefinitionof'Al1 Risks Insurance'.
Coverwhich goes beyondthe terms oftheexclusionin
paragraph 2 may be available though not standard in all
policiestaken outto meettheobligationinclauses22A.
22Bor22C.2: and leading insurerswhounderwrite'All
Risks'coverforthe Works haveconfirmed thatwhere
such improved cover is being given itwill not be
bytheterms of any exclusionwritten in the policy withdrewn asaconsequence of the publication of the
beyond the termsof paragraph2; thusan exclusion in termsof the definitionin clause 22.2 of 'All Risks
terms "This Policy excludesall lossof or damageto the Insurance'.
property insuredduetodefectivedesign, plan,

38 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


L Nominatedand 22.3 -1 The Contractorwhere clause22Aapplies, and the Employerwhere either clause 228 or
1
DomesticSub- clause 22C applies, shall ensurethat the Joint Names Policy referredto in clause 22A.1
Contractors - orclause22A-3ortheJoint Names Policies referredto in clause 22B-1or in clauses
benefit of Joint
Names Policies - 22C.1 and 22C-2shall
Specified Perils
either provide for recognitionof each sub-contractornominatedby the Architect as
an insured under the relevantJoint Names Policy

or include a waiver by the relevant insurersof any right of subrogationwhich


they may haveagainst any such NominatedSub-Contractor

in respect of loss or damage by the SpecifiedPerilsto the Wor


where clause 22Aor clause228 or clause 22C.2 applies and, w
in respect of loss or damage by the SpecifiedPer
include from the relevantdate any relevant partt
with thecontents thereof owned bythe Employe

of Conditions NSC/C)orthe date of deterrnin


(whether or notthevalidityofthatdetermina

Employer under clause22C.2.

22.3 e2 Exceptin respectof the Joint Na se 22C.1 (ortheJoint


Names Policy referredto in clau It by the Employer under
clause 22C.1) the provisionsof gnition orwaiver shall

New buildings - 22A-1 The Contractors tawa Joint Names Policy for All Risks Insurancefor
Contractorto take
out and maintaina
cover no lesstha e222 Iddllfflforthefull reinstatementvalueofthe
Joint Names over professionalfees stated in the Appendix) and
Policyfor All Risks mesPolicy uptoand including the
Insurance or up to and includingthe date of
nder clause 27 or clause 28 or clause
ntested),whichever is the earlier.

us for VAT purposes is exempt or partially exempt the full


ch thisclause refersshallbeinclusiveofanyVATon thesupply of
which the Contractor ischargeable by

Single policy - Policy referredto in clause22A-1shall be taken out with insurers approved
rchitectfor deposit with the
rand also any relevant endorsement
y be required tocomplywith the obligation to maintainthat
d the premium receiptstherefor. lfthe Contractordefaults in
Joint Names Policy as required by clauses 22A.1 and 22A.2
nt Names Policy against any risk in
sum or sums equivalent to the
erefor may be deducted by him
r under this Contract or such
mount may be recoverablebythe Employerfrom the Contractoras a debt.

Footnote IfflIn some cases it may not be possiblefor insuranceto the risks actually covered should replacethis definition;
betakenoutagainstcertainoftheriskscovered by in the lanercasecIause22A.l.clause 22A.3orclause
thedefinitionof'All RisksInsurance'.This matter 22B.l.whichever isapplicable,and other relevant
should be arranged betweenthe parties prior to clausesin which the definition 'All RisksInsurance'is
!ntering intotheContractandeitharthedefinitionof used should beamendedto includethewords usedto
All Riskslnsurance'given inclause222amendedor replacethis definition.

P With 98 (9/031 @The Joint Contracts Tribunal Limited 2003 39


, Useof annual 22A-3 -1 If the Contractor independentlyof his obligations underthis Contract maintainsa
policymaintained policy of insurancewhich provides finteralia)All Risks Insurancefor cover no lessthan
by Contractor -
alternative to use that defined in clause22.2 forthe full reinstatementvalue of the Works (plusthe
of clause22A.2 percentage, if any, to cover professionalfees stated in theAppendix1then the
maintenance bythe Contractor of such policy shall, if the policy is a Joint Names Policy
in respect of the aforesaidWorks, be a discharge of the Contractor's obligation to take
out and maintain a Joint Names Policyunderclause22A.l. If and so long asthe
Contractor is able to send to the Architect for inspection by the Employer as and when
he is reasonably requiredto do so by the Employerdocumentary evidencethat such a
policy is being maintainedthen the Contractor shall be dischargedfrom his obligation
under clause 22A.2 to deposit the policy and the premium receipt with the Employer
but on any occasionthe Employer may (but not unreasonably orve sly) requireto
have sent to the Architect for inspection by the Employerthe poli to whic lause
22A-3.1 refersand the premium receiptstherefor. The annual r&ede
bv the Contractor, ofthe insurance referredto in clause22A.3J s ated i
Appendix.

22A.3 -2 The provisionsof clause 22A.2 shall apply in regardto any de


maintaining insurance under clause 22A.3-1.

Lossor damageto 22A.4 -1


claims
--
Works insurance is occasionedby any one or more of the risks
Contractor3 referredto in clause 22A-1or clause 22A-2or
-
obligations use
of insurance
monies

22A-4 a 2 The occurrence of such loss or damag in computing any amounts


payableto the Contractor under orb

22A-4 -3

22A-4 - 4 d and Domestic Sub-Contractorswho

tor by instalments under certificates of the Architect

entitled to any payment in respect of the restoration,


ch loss or damageand (when required)the removal and
n the monies received underthe aforesaid insurance.

Terrorismcover - in the Joint Names Policy notify the Contractoror the Employer
non-availability that, with effectfrom a date stated by the insurers (the
will cease and will no longer be available, the
inform the Employerorthe Employer shall immediately

but before the EffectiveDate,

the Effective Date clause22A.5-3 shall apply in respect of physical


loss or damageto work executedandlor Site Materialsdue to fire or explosion
caused by terrorism;

U or

40 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/V3)


22A.5 continued

-2 -2 that on a date stated by the Employerin his notice (which date shall be afterthe date
of the Insurers' Notificationand on or beforethe EffectiveDate)the employment of
the Contractor under this Contract shall be and is determined; and that upon such
determinationthe provisionsof this Contractwhich require any further paymentor
any release or any further releaseof Retentionto the Contractorshall not apply and
the provisionsof clauses 28A*3,28A4and 28A.5 (exceptclause 28A.5-5) and, where
relevant, clause28A.7 shall thereupon apply.

22A-5 -3 Where clause 22A.5.2.1 appliesthen if work executedand/or Site Materialssuffer

Employershall not reduceany amount payable


22A.5.3 by reasonof any act or neglect ofthe CO
may have,orisalleged bythe Employerto have
damageto which thisclause refers.

Premium rate 22A-5 -4 .1 lfthe rate on which the premium is basedfo


changes -
terrorismcover
renewal of the cover, the Con
difference in the premium pa
would have been paid butfor

not to renewthe

228 Erection of new rance of the Works by the Employer ICCI

New buildings -
Employer to take 22-2 Iddllfflforthefull reinstatementvalueofthe
out and maintaina
Joint Names
Policyfor All Risks
Insurance

Failure of as and when reasonably requiredto do so by the Contractor, produce


Employer to and receipts showing thatthe Joint Names Policy required under
-
insure rights of
out and is being maintained.Ifthe Employer defaults in taking
Contractor
Names Policy required underclause 228.1 then the
and maintaina Joint Names Policy against any risk in
adefault shall haveoccurredandasumorsumsequivalenttotheamount
y him in respect of the premiumsthereforshall be addedto the Contract

r damage affectingwork executedor any part thereof or any Site Materials is


occasioned by any one or more of the risks covered by the Joint Names Policy
referredto in clause 228-1 or clause228.2 then, upon discovering the said loss or
damage, the Contractor shallforthwith give notice in writing both to the Architect and to
Employer the Employerofthe extent, natureand location thereof.

228.3 .2 The occurrence of such loss or damage shall be disregardedin computing any amounts
payableto the Contractor under or by virtue of this Contract.

P With 98 (9/031 @The Joint Contracts Tribunal Limited 2003 41


228.3 .3 After any inspectionrequired by the insurers in respectof a claim under the Joint
Names Policy referredto in clause 228.1 or clause 228.2 has been completed the
Contractor with due diligence shall restoresuch workdamaged, replace or repair any
such Site Materialswhich have been lost or damaged, remove and dispose of any debris
and proceedwith the carrying out and completion of the Works.

228.3 -4 The Contractor, for himself and for all Nominatedand Domestic Sub-Contractorswho
are, pursuantto clause22.3, recognisedas an insured under the Joint Names Policy
referredto in clause22B.1 or clause228.2, shall authorisethe insurers to pay all monies
from such insurance in respectofthe loss or damage referredto in clause 228.3-1to the
Employer.

228.3 -5 The restoration, replacement or repair of such loss or dama


removaland disposal of debrisshall be treated as ifthey we
an instruction ofthe Architect under clause 13.2.

Terrorismcover 226.4 -1 lfthe insurers named in the Joint Names Policy n


non-availability (the 'Insurers' Notification')that, with effectfrom
'Effective Date'), terrorism cover will cease and WI
shall immediatelyso inform the Contractor orthe
inform the Employer.

Employer's 226.4 -2 The Employer, after receipt ofthe Insurers' Notifi


options shall give noticeto the Contractor in writing:

either

.2 a1 that on andfrom the Effective pply in respectof physical


loss or damageto work exec to fire or explosioncaused
by terrorism;

or

e2 .2 that on a da (which date shall be after the date


ffective Date)the employmentof

hall not apply and the provisions of


28A-5.5)and, where relevant, clause

n if work executedand/or Site Materialssuffer


or explosion caused byterrorism the Contractor shall
rk damaged, replaceor repair any such Site Materials

disposal of debris shall be treated as if


n ofthe Architect under clause 13-2.The
ctor pursuant tothis clause
any sub-contractorwhich
to the physical loss or

-
xisting structures insurance of Works in or extensions to existing

II take out and maintaina Joint Names Policy in respect of theexisting

e or more ofthe SpecifiedPerils[gal up to and includingthe date of issueof the certificate


PracticalCompletionor up to and includingthe date of determinationof the employment

himself and forall NominatedSub-Contractorswho are, pursuantto clause22.3.1,


recognisedas an insured under the Joint Names Policy referredto in clause 22C.1 or clause

See next pagefor footnote [ggl.

42 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


22C-1 continued

22C.3,shall authorisethe insurersto pay all moniesfrom such insurancein respect of loss or
damageto the Employer. Ihhl

Where the Employer's statusfor VAT purposesis exempt or partially exempt the full cost of
reinstatement, repair or replacementof loss or damage to which this clause refers shall be
inclusive of any VATchargeable on thesupply of such reinstatement, repair or replacement.

Terrorismcover - 22C-1 A.1 If the insurers named in the clause 22C.1 Policy notify the Employeror the Contractor
existing structures (the'Insurers' Notification')that, with effect from a date stated by the insurers(the
andcontents -
non-availability- 'Effective Date'), terrorism cover undertheclause22C.1 P
Employefs longer be available, the Employershall immediatelyso in
options Contractorshall immediately so inform the Employer.The
Insurers' Notificationbut beforethe Effective Date, shall gi
writing:

either

A-1 -1 that on and from the Effective Date clause


occursto the structures andortheconten
terrorism;

or

hall be afterthe date

the Contractor under this Cont

22C-1 A.2 Whereclause22C-1A-1.1applie e to requirethe Works to be

lossor damageduet ofire


C-1A-2shall not be

ofthe Contractor underthis Contract is


rovisionsofthiscontract which require

8A.3,28A.4 and 28A.5 (except clause 28A.5-5)


shall thereupon apply.

Works in or 226.2 TheEmployersh ain a Joint Names Policy for All Risks lnsurancefor
extensions to cover no less tha e 22.2IddlIgglforthe full reinstatementvalueofthe
existing
structures -All ver professionalfees stated in the Appendix) and
Risks Insurance - such Joint Names Policy up to and including the
Employertotake
out and maintain ICompletionor up to and including the date of
Joint Names yment of the Contractor under clause 22C.4-3or clause 27 or
Policy hether or not the validity of that determination is contested),

sutat-- for VAT purposes isexempt or partiallyexemptthefull


thisclause refersshallbeinclusiveofany VATonthesupplyof
to in clause22C.4-4-1for which the Contractor is chargeable

so by the Contractor, produce


Names Policy required under
and is being maintained. lfthe Employer
Names Policy required under clause22C.1
a Joint Names Policy against any risk in
for that purposeshall have such right

Footnotes lggl In some cases it may not be possible for insurance relevantclausesinwhich the definitions 'All Risks
to betakenoutagainstcertainoftheSpecifiedPerilsor Insurance'andlor'Specified Perils'areusedshould be
the riskscovered bythedefinition of'All Risks amendedto includethewords usedto replacethose
Insurance'.This matter should bearranged betweenthe definitions.
parties priortoentering intothecontract and eitherthe
definitions of Specified Perilsandlor All Risks Insurance Ihhl Some Employerse.g. tenants may not be ableto
giveninclauses13and22.2amendedortherisks fulfil the obligations inclause22C.l. If soclause22C.l
actuallycoveredshould replace thedefinitions;in the should be amendedaccordingly.
lattercaseclause22C.l andorclause22G2andother

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 43


22C.3 continued

ofentryand inspectionas may be requiredto makeasunreyand inventoryoftheexisting


structures and the relevantcontents. If the Employer defaults intaking out or in maintaining
the Joint Names Policy required under clause 22C-2the Contractor may take out and
maintain a Joint Names Policy againstany risk in respectofwhich the default shall have
occurred. Asum or sums equivalentto the premiumspaid or payableby the Contractor
pursuantto clause 22C.3 shall be addedto the Contract Sum.

Lossordamageto 22C-4 Ifany loss or damage affecting workexecutedor any part thereof or any Site Materialsis
Works - insurance occasionedby any one or more of the riskscovered by the Joint Names Policy referredto in
claims-
Contractor's
obligations-
paymentby
Employer natureand locationthereof and

22C.4 -1 the occurrence of such loss or damage shall be disregarde


payabletotheContractor under or by virtue ofthiscontra

22C-4 -2 theContractor,for himself andfor all Nominated


are, pursuantto clause22.3, recognisedas an ins
referredto in clause 226.2 or clause22C.3, shall a
from such insurancein respect of the loss or dam
Employer;

whether such determi

notice of determination, orwhere

e provisionsof clauses28A.4and 20A.5

er clause226.4.3.1, or where the relevant


have been invokedand the notice of

acement or repair of such loss or damage and (when required)


posal of debris shall be treated as if they were a Variation
ction ofthe Architectunder clause 13.2.

Terrorismcover - ed in the Joint Names Policy notify the Employerorthe Contractor


non-availability fication') that, with effect from a date stated by the insurers(the

E
0

-1 that on and from the Effective Date clause22C-5.3shall apply in respect of physical
loss or damageto work executedand Site Materialsdue to fire or explosioncaused
by terrorism;

or

44 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


226.5 continued

-2 -2 that on a date stated by the Employerin his notice (which date shall be after the date
of the Insurers' Notificationand on or beforethe Effective Date)the employmentof
the Contractor shall be and is determined; and that upon such determinationthe
provisions of this Contractwhich require any further payment or any releaseor any
further release of Retentionto the Contractor shall not apply and the provisionsof
clauses 28A-3,28Am4and 28A.5 (exceptclause28A-5-51shall thereupon apply.

22C-5 -3 Where clause 22C.5.2.1 applies then ifwork executedand/or Site Materialssuffer
physical loss or damage due to fire or explosion caused byterrorism the Contractorshall

the carrying out of the Works; and the restoration, replace


damage and (whenrequired)the removal and disposalof

220 Insurance for Employer's loss of liquidated dam

Architect shall either inform the is required or instructthe


shall be foran insurance

calculatedby refere e to the Works, work


executed, Site Mate for use in connection

t shall obtain from the Employer


to obtain such quotation.The

ructthe Contractor whether or notthe


quotation and such instruction shall not be

entsthereof and the premium receiptstherefor.

insuranceshall be calculatedatthe rate referredto in clause


e producedbythe application of clause 18.1.4)forthe period of any
given bythe Architect as referredto in clause22D.l or forthe
he Appendix, whichever isthe less.

~~

Footnote IiilTheadoptionofanagreedvalueistoavoidany satisfiedthat the sum referred to in clause22D.2 is not


dispute overtheamount ofthe payment due underthe more than agenuinepre-estimateofthedamages
insuranceonce the policy is issued.Insurers on which the Employerconsiders,atthe time heenters into
receivinga proposalfortheinsurancetowhichclause theContract,hewillsufferasa resultofanydelay.
22Dreferswillnormallyreservetherighttobe

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 45


22FC Joint Fire Code - compliance

Applicationof 22FC .1 Clause 22FC applies where it is stated in the Appendix that the Joint Fire Code applies.
clause
Compliancewith 22FC .2 .1 The Employershall comply with the Joint Fire Code and ensure such compliance by
Joint Fire Code his sewants or agents and by any person employed, engaged or authorisedby him
upon or in connectionwith the Works or any part thereof other than the Contractor
and the personsfor whom the Contractor is responsiblepursuant toclause
22FC.2.2.

e 2 -2 The Contractorshall comply with the Joint Fire Code and ensure such compliance

other personwho may properly be on the site upon or i


or any part thereof other than the Employeror any pe
authorised by him or by any local authorityorstatuto

Breachof Joint 22FC -3 -1 If a breach ofthe Joint Fire Code occu


FireCode- Policy in respectof the Works specify
Remedial
Measures
which such RemedialMeasuresa
Completion Date'), the Party recei
and the Employershall copy such

the Works the Contractor


ut by the Remedial

Variation to the Works as

ergency, compliance with the


iresthe Contractorto supply
nstructionsunder this clause, the

Joint FireCode -
amendments/ ised is, under the Joint Names Policy, applicableto the Works, the cost, if

Sum or by the Contractor.

shall thereupon begin the Works and regularlyand diligently proceedwith the same and
progressto
CompletionDate shall complete the same on or beforethe Completion Date.

46 @The Joint Contracts Tribunal Limited 2003 P With 98 (9D3

~~~~
23.1 .2 Where clause 23.1-2is stated in the Appendix to apply the Employer may defer the
giving of possessionfor a period not exceedingsix weeks or such lesser period stated
in the Appendix calculatedfrom the Date of Possession.

Architect's 23-2 The Architect may issue instructionsin regardto the postponementof any workto be
instructions- executed under the provisionsof this Contract.
postponement

Possessionby 23.3 a1 Forthe purposesof the Works insurancesthe Contractorshall retain possessionof the
-
Contractor use site and the Works upto and includingthe date of issueof the certificateof Practical
or occupationby
Employer Completion, and, subjectto clause 18, the Employershall not be entitledto take
possessionof any part or parts of the Works until that date.

23.3 -2 Notwithstandingthe provisionsof clause23.3.1 the E


writing of the Contractor, use or occupy the site or the
the purposes of storage of his goods or otherwise bef
certificate of PracticalCompletion bythe Architect. Be
consent to such use or occupa
insurers under clause22A or c
applicableand obtain confirm
insurance. Subjecttosuch CO
unreasonablydelayed or withheld.

23.3 .3 Whereclause 22A.1 orclause22A.3appliesand the confirmation


referredto in clause 23.3.2 have made it a conditlo
additional premium is requiredthe Contr yeroftheamount of
the additional premium. If the Empl occupation under
clause 23-3-2the additional premiu Contract Sum and
the Contractorshall providethe Em eadditional premium
receipttherefor.

24 Damages for non-

Certificateof 24.1 If the Contractor fa tion Date then the Architect shall
Architect issue a certificate t etion Date being fixed afterthe
certificate and the Architect shall issue
such further certific

Paymentor 24-2 -1 Provided:


allowance of
liquidated
damages ificateunderclause24.1;and

e Contractor in writing before the date of the Final


re payment of, or may withhold or deduct, liquidated

,not later than 5 days beforethe final date for payment of the

iting the Contractor to pay to the Employer liquidatedand ascertained


he rate stated in the Appendix (or at such lesser rate as may be
riting bythe Employer)forthe period betweenthe Completion Date
f PracticalCompletion andthe Employermay recover the same as a

otice pursuanttoclause30~1~1~4orclause 30.8-3tothe Contractorthat he


will deductfrom monies due to the Contractor liquidatedand ascertaineddamages
at the rate stated in theAppendix(orat such lesser rate as may be specified in the
period betweenthe Completion Date and the date of Practical

24.2 -2 If, under clause 253.3, the Architect fixes a later Completion Date or a later Completion
Date is stated in a confirmed acceptance of a 13AQuotation,the Employer shall pay or
repayto the Contractor any amounts recovered, allowed or paid under clause 24.2-1for
the period up to such later Completion Date.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 47


24-2 a3 Notwithstandingthe issueof any further certificate of the Architect under clause 24-1
any requirement of the Employerwhich has been previouslystated in writing in
accordancewith clause24.2.1 shall remain effective unlesswithdrawn by the
Employer.

25 Extension of time [ijl


Interpretationof 25.1 In clause 25 any referenceto delay, notice or extensionof time includes further delay,
delay further notice or further extension of time.

Notice by 25.2 -1 .1 If and whenever it becomes reasonably apparent t


Contractorof being or is likelyto be delayedthe Contractor shall
delay to progress
the Architect of the materialcircumstances includi
delay and identify in such notice any event which in hi

.1 -2 Where the material circumstancesofwhic


clause 25.2-1.1 include referencetoa Nom
shall forthwith send a copy of such written no
concerned.

25.2 .2 In respect of each and every Relevant Event ident en in accordance


with clause 25.2.1.1 the Contractor shall, if pra

a2
writing as soon as possibleafter such noti

-1 give particularsof the expectedeff


nu
-2 .2 estimatethe extent, if an mpletion of the Works
beyond the Complet er or not concurrentlywith
delay resultingfrom

minatedSub-Contractorto whom

25.2 -3 The Contractor oticestotheArchitect,andsend acopyto


tice has been given
ryorasthe Architect may
lars and estimate referredto in
hange insuch particularsor

Fixing Completion 25.3 -1 If, in pon receiptof any notice, particularsand estimate
Date

cause of the delay is a

the Works is likelyto be delayedthereby beyondthe Completion

Iin writing to the Contractor give an extension of time by fixing such


ompletion Date as he then estimatesto be fair and reasonable.The
,in fixing such new Completion Date,state:

of the Relevant Events he has taken into account and

nt, if any, to which he has had regardto any instructions issued under clause

rformanceSpecifiedWorkwhich results in the omission of any such work,

and shall, if reasonably practicablehaving regardto the sufficiency of the aforesaid


notice, particularsand estimate,fix such new Completion Date not laterthan 12 weeks
from receipt of the notice and of reasonablysufficient particulars and estimate, or,
where the period between receiptthereof and the CompletionDate is less than 12 weeks,
not laterthan the Completion Date.

Footnote Ijjl See clauses38-4.7.395.7 and 40.7 (restrictionof


fluctuationsor price adjustmentduring periodwhere
Contractor is in default over completion).

48 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


25-3 .1 continued

If, intheopinion ofthe Architect, upon receiptofany such notice, particularsand


estimate, it is not fair and reasonableto fix a later date as a new CompletionDate, the
Architect shall if reasonably practicablehaving regardto the sufficiency ofthe aforesaid
notice, particulars and estimate so notify the Contractor in writing not laterthan 12
weeksfrom receiptofthe notice, particulars and estimate, or, where the period between
receiptthereof and the Completion Date is lessthan 12 weeks, not laterthan the
CompletionDate.

25.3 -2 After the first exercise by the Architect of his duty under clause 25-34or after any
revisionto the Completion Date stated by the Architect i
13A Quotationin respect of a Variation the Architect ma
Date earlierthan that previouslyfixed under clause 250

issued afterthe last occasion on which the Architectfixed

- underclause 13.2which requireorsanction a


or obligation; and/or

- underclause 13-3inregardtotheexpenditu for definedwork


orfor PerformanceSpecifiedWork which re

Providedthat no decision under cla


the time required by the Contractor
Variationforwhich a 13AQuotation
ariation orwork forwhich
en acceptedpursuantto
clause 13.4.1.2 paragraphA7.

s after the date of Practical

uslyfixed if in hisopinion thefixing of

an that previouslyfixed under clause25 or stated in a


Quotation if in his opinion the fixing of such earlier

13.2 which requireor sanction as a Variation the omission of any

in regardto the expenditure of a provisionalsum for defined


mance SpecifiedWork which result in the omission of any

m tothe ContractortheCompletion Date previouslyfixed or stated in a


med acceptance of a 13A Quotation.

that no decision under clause 25-3.3-1or clause 25.3-3-2shall alterthe length of


thetime required bythe Contractor forthe completion of the Works in
on forwhich a 13AQuotationhas been given and which has been
ed acceptance of a 13A Quotation.

w 2y Providedalwaysthat:

.4 -1 the Contractor shall use constantly his best endeavoursto prevent delay in the
progressof the Works, howsoevercaused, and to preventthe completion of the
1 Works being delayed or further delayedbeyondthe Completion Date;

-4 .2 theContractorshalldoallthat may reasonably be requiredtothesatisfactionofthe


Architect to proceedwith the Works.

P With 98 19/03) @The Joint Contracts Tribunal Limited 2003


25.3 .5 The Architect shall notify in writing to every Nominated Sub-Contractoreach decision
of the Architect under clause25-3fixing a Completion Date and each revised
Completion Date stated in theconfirmed acceptance of a 13A Quotationtogether with,
where relevant, any revisedperiod or periodsforthe completion of the work of each
NominatedSub-Contractorstated in such confirmed acceptance.

25.3 -6 Nodecision ofthe Architect under clause 25.3-2 orclause 25.3.3.2shallfixa Completion
Date earlierthan the Datefor Completionstated in the Appendix.

Relevant Events 25.4 The following are the Relevant Events referredto in clause25:

25.4 a1 force majeure;

25.4 -2 exceptionally adverseweather conditions;

25.4 -3 loss or damage occasionedby any one or more of the Spe

25-4 -5 compliancewith the Architect‘s instructions

Quotation), 13.3 (exceptcompl


expenditure of a provisionalsu
PerformanceSpecifiedWork),

-5 .2 in regardtothe

25.4 -6 -1 whereanln s been provided,failure ofthe Architect

-6 -2 failureoft

25.4 .7 delayonthe
le steps to avoid or reduce;

25-4 -8 -1 g part ofthis Contract by the Employer himself or


se engaged bythe Employeras referredto in

yer of materials and goods which the Employer has agreed


orthefailuresoto supply;

rgy as are essentialto the propercarrying out of the Works;

ntractor’s inabilityfor reasons beyond his control and which hecould not
onably have foreseen at the Base Dateto secure such labour as is essentialto
ropercarrying out of the Works; or

tor’s inability for reasonsbeyond hiscontrol and which he could not


haveforeseen atthe Base Date to securesuch goods or materials as are
essential to the proper carrying out of the Works;

statutory obligations in relationto the Works, orthe failure to carry out such work;

50 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


25-4 -12 failure of the Employerto give in due time ingressto or egress from the site of the Works
or any part thereof through or over any land, buildings, way or passage adjoining or
connectedwith the site and in the possessionand control of the Employer, in
accordancewith the Contract Bills and/orthe Contract Drawings, after receipt by the
Architect of such notice, if any, as the Contractor is requiredto give, or failure of the
Employerto givesuch ingress or egressas otherwiseagreed betweentheArchitect and
the Contractor;

25.4 .13 where clause 23.1.2 is stated in the Appendix to apply, the deferment by the Employerof
giving possessionof the site under clause23-1-2;

25.4 -14 by reasonoftheexecution ofworkforwhich an ApproximateQ


Contract Billswhich is not a reasonablyaccurateforecast of the
required;

25-4 -15 delay which the Contractor has taken all practicablesteps
upon a change in the StatutoryRequirementsafter the Bas
some alterationor modificationto any PerformanceSpeci

25-4 -16 the use orthreat of terrorism and/or the activity ofmt frelevant
i v ea ahori
l i n g with
such use or threat;

25.4 -17 complianceor non-compliancebythe Employer ith

25.4 -18 delay arisingfrom a suspens


underthe Contracttothe Em

25.4 -19 save as providedfor in claus


whether by act or omission,
responsibleexceptto the e
whether by act or omissio

26 Loss and expense regular progress of the


Works

Matters materially 26.1 e Architect statingthat he has incurredor is


affecting regular the Contractor may give his quantification)
progressof the
-
Works direct in the execution ould not be reimbursed by a payment under
lossand/or rment of giving possessionof the site under
expense
e Appendix to be applicableor because the
artthereof has been or is likelyto be materially
ferredto in clause 26.2; and if and as soon as the
and/or expense has been incurred or is likelyto
possessionor thatthe regular progressof
ely to be so materially affectedas set out in
from time to time thereafter shall
e QuantitySurveyortoascertain,the amountofsuch lossand/or
s being incurredby the Contractor; providedalwaysthat:
on shall be madeas soon as it has become, or should
,apparentto himthatthe regular progressofthe Worksorof
or was likelyto be affected as aforesaid; and

ctor shall in support of his application submit to the Architect upon request
tion as should reasonablyenablethe Architect to form an opinion as

torshall submittothe Architectorto the Quantity Surveyor upon request


such loss and/or expense as are reasonably necessary for such

he following are the matters referredto in clause 26.1:

-1 .I where an InformationRelease Schedulehas been provided,failure of the Architect


to complywith clause 5.4-1;

.1 -2 failure of the Architect to comply with clause 5-4.2;

P With 98 (9D3) @The Joint Contracts Tribunal Limited 2003 51


26.2 -2 the opening upfor inspectionofanyworkcovered uporthetesting ofany ofthework,
materials or goods in accordance with clause8.3 (including makinggood in
consequence of such opening up ortesting), unlessthe inspectionortest showed that
the work, materialsor goods were not in accordance with this Contract;

26.2 -3 any discrepancy in or divergencebetweenthe Contract Drawingsand/orthe Contract


Bills and/orthe NumberedDocuments;

26.2 .4 .1 the execution ofwork not forming part ofthis Contract bythe Employer himself or
by persons employed or otherwise engaged by the Employer as referredto in
clause 29 or the failure to executesuch work;

.4 -2 the supply by the Employerof materialsand goodswhich


to provideforthe Works or the failure so to supply;

26.2 -6 failureofthe Employertogiveinduetimeingre


or any part thereof through or over any land, bu

notice, if any, as thecontractor is requi


ingressor egress as otherwise agreed

26-2 -7 Architect’s instructionsissued

underclause 13.2orcla (exceptfor a Variation for


which the Architect has a 13A Quotation or for a
Variation thereto) or

provisional sums (otherthan


struction forthe expenditureof a

26.2 .8 the executionof wo Quantity is included in the Contract Bills

26.2 -9 compliance ployerwithclause6A.l;

26.2 .10 suspension e performanceof his obligations underthe Contract


e 30.1.4 providedthe suspensionwas not frivolous or

26-2 *1 26.2.1 to 26-2.10anyimpediment, preventionor default,


ssion, by the Employeror any personforwhom the Employer is
the extent that it was caused or contributedto by any default,
ssion, of the Contractor or his servants, agents or subcontractors.

Relavanceof s necessary for ascertainmentunder clause 26.1 of loss


certain extensions itect shall state in writing to the Contractor what extension of time, if
of Completion
Date er clause 25 in respect of the Relevant Event or Events referredto in
thatclause referstoclauses2.3,13.2,13.3and 23-21and in clauses

Y e C tractor upon receiptof a written application properly made bya Nominated


Su ontractor under clause 4.38-1 of Conditions NSC/C shall pass tothe Architect a
opy o at written application. If and as soon as the Architect is of the opinion that the
10 and/ expense to which the said clause 4-38.1 refers has been incurredor is likely to
be inc ed due to any deferment of the giving of possessionwhere clause 23.1-2 is
stated in the Appendixto apply orthatthe regular progressof the subcontract works or
of any part thereof has been or is likely to be materiallyaffected as referredto in clause
4.38-1of Conditions NSC/C and as set out in the application of the NominatedSub-
Contractorthenthe Architect shall himself ascertain, or shall instructthe Quantity
Surveyorto ascertain,the amount of loss and/or expense
to which the said clause 4.38-1refers.

52 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


26.4 -2 If and to the extent that it is necessaryfortheascertainmentof such loss and/or
expense the Architect shall state in writing to the Contractor with a copy to the
NominatedSub-Contractorconcernedwhat was the length of the revisionof the period
or periodsfor completionof the sub-contractworks or of any part thereof to which he
gave consent in respectof the Relevant Event or Events set out in clause2.6.5.1 (sofar
as that clause refersto clauses 2.3,13.2,13.3and 23.2 of the Main Contract Conditions),
2.6-5.2,2,6.6,2.6.8,2-6-12and 2-6-15of Conditions NSCIC.

Amounts 26-5 Any amount from time to time ascertained underclause26shall be added to the Contract
ascertained - Sum.
added to Contract
Sum

Reservationof 26.6 The provisionsof clause26are without prejudiceto any other


rightsand Contractor may possess.
remedies of
Contractor

27 Determination by Employer

Noticesunder 27-1 Any notice or further noticeto which clauses


clause 27 writing and given by actual delivery or by
specialdelivery or recorded
contrary, be deemed to have been
Saturday and Sunday and Public Holidays).

Default by 27.2 .1 If, beforethe date of PracticalCompleti- ,the


w Con e a default in anyone
Contractor or more of the following respects:
-1 .I without reasonablecause h pendsthe carrying out of
the Works; or

-1 .3 he refuses noticeor instructionfromthe


ds not in accordance
materially affected;

ofclause 19.1-1orclause 19-2.2;or

ions to comply with the requirements of the CDM

ractor a notice specifying the default or defaults (the

esa specifieddefault for 14daysfrom receiptofthe notice


theEmployer may on, orwithin lOdaysfrom,theexpiryof that
the Contractor determinethe employmentof the
ct. Such determination shall take effect on the date of

ntractorendsthe specifieddefault or defaults, or

mployer does not give thefurther notice referredto in clause 27.2-2

ractor repeats a specifieddefault (whether previously repeatedor not)then,


er such repetition,the Employer may by noticeto
ymentoftheContractor underthiscontract. Such
he date of receiptof such notice.

use 27-2-2or clause 27.2-3 shall not be given


unreasonablyor vexatiously.

P With 98 i9/03) @The Joint Contracts Tribunal Limited 2003 53


Insolvency of 27.3 -1 If the Contractor
Contractor
makesa compositionor arrangementwith his creditors, or becomes bankrupt, or,

beinga company,

makes a proposalfor a voluntary arrangement fora compositionof debts or scheme


of arrangementto be approved in accordancewith the CompaniesAct 1985or the
InsolvencyAct 1986asthecase may be or any amendment or re-enactmentthereof,
or

has a provisional liquidatorappointed, or

has a winding-uporder made, or

passesa resolutionfor voluntary winding-up(except


amalgamation or reconstruction), or

under the Insolvency Act 1986oranyamendme


administratoror an administrativereceiver

then:

proposalfor a voluntary arrange


arrangement to be approved in a
Insolvency Act 1986asthecase ma

ed or a winding-up
winding-up(except
for the purposes of amalga ment of the Contractor

27-3 - 4 where clause r may at any time, unless an agreement


y noticeto the Contractor determine
is Contract and such determinationshall

Corruption inethe employmentof the Contractor, under this or


1
I have offered or given or agreed to giveto any
kindas an inducementor rewardfor doing or

cts 1889to 1916.


Insolvency of
Contractor -
optionto
Employer
the Employer, subjectto clause 27-53.

with clause2.1.

Footnote IkklSee JCTPracticeNote24after certaininsolvency


events an Insolvency Practitioneracts for the
Contractor.

54 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


27.5 .2 Clause 27.5-1shall apply until

either

-2 -1 the Employer makes an agreement (a'27 1agreement') with the Contractor on


the continuationor novationor conditional novationof thiscontract, in which case
thisContractshall besubjecttothetermssetoutin the27-5.2.1agreement

or

-2 -2 the Employerdeterminesthe employment ofthe Contractor underthis Contract in


accordancewith clause27-3.4, in which case the provisions
27.7 shall apply.

27.5 -3 Notwithstandingclause 27.5-1, in the period beforeeither


orthe Employerunderclause27.3.4determ
Employerand the Contractor may make an i
out. Subject to clause27.5-4 any right of set-

27.5 a4 Fromthe date when, under clause 27-3.4, the Em

27.5.2.1 or arrangement
reasonable measuresto
adequately protectedan
the Works as the case may
delay the taking of the aforesaidm ydeductthe reasonable
cost oftaking such measuresf me due to the Contractor
under this Contract (including
27-5-2-1,or under an interi

Consequencesof 27-6 Inthe event ofthe de Contractor under clause 27.22,


determination 27*2*3,27*3*3,27.3.4 t has not been reinstatedthen:
under clauses 27.2
to 27.4
27-6 -1 carry out and complete the Works
ause 17 and heorthey may enter

ofto chuseiso ainedbytheEmployer;


-%
nw
O
olvency event listed in clause 27.3.1 (otherthan the Contractor
aking a proposalfor a voluntary arrangementfor a
scheme of arrangement to be approved in accordance
1985orthe insolvencyAct 1986asthecasemay beorany
enactment)has occurred the Contractor shall, if so required by
ythe Architect on behalf of the Employerwithin 14days of the
ssign to the Employerwithout paymentthe benefit of any
pply of materialsor goods and/orforthe execution of any
orthe purposes ofthiscontracttothe extentthatthe same is assignable;

twhere the Contractor has atrustee in bankruptcyappointed or being a


as a provisional liquidator appointedor has a petition alleging
led against itwhich is subsisting or passes a resolutionfor voluntary
otherthan forthe purposes of amalgamationor reconstruction)which
sa creditors'voluntary liquidation, the Employer may pay any supplier
any materials or goods delivered or works executedforthe
purposesof this Contract before or after the date of determinationin so far as the
price thereof has not already been paid by the Contractor. Paymentsmade under
clause 27-6-24may be deductedfrom any sum due or to becomedue to the
Contractoror may be recoverablefrom the Contractor by the Employer as a debt;

27-6 .3 the Contractorshall, when requiredin writing bythe Architect so to do (but not before),
removefrom the Works any temporary buildings, plant, tools, equipment, goods and
materials belongingto him and the Contractor shall have removedbytheir owner any
temporary buildings, plant, tools, equipment, goods and materials not owned by him.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 55


27.6 -3 continued

lfwithin a reasonabletime after such requirementhas been made the Contractorhas


not compliedtherewith in respect of temporary buildings, plant, tools, equipment,
goods and materialsbelongingto him, then the Employermay (butwithoutbeing
responsiblefor any loss or damage) removeand sell any such propew of the
Contractor, holdingthe proceeds less all costs incurredto the credit of the Contractor.

27.6 4 -1 Subject to clauses 27-5-3and 27.6.4.2 the provisionsof this Contractwhich require
any further paymentor any release or further release of Retentionto the Contractor
shall not apply; providedthat clause 27.6.4.1 shall not be construedso as to
preventthe enforcement by the Contractor of any
respect of amountsproperlydue to be paidby the
which the Employer has unreasonably not paid a

Contractor or, where clause 27.3.4 does not apply, w


more beforethedat

-4 e2 Uponthecompletion
clause27.6.1 (butsub
17-2and/or clause 17.
requiredefectsofthe
reasonabletime thereafteran a redto in clause
27.6.5 shall be set out either in a
certificate issued by the Archite

-3 the total ari&Q&~\k,eyayableforthe Works in accordance with


this Contract.

27.6 -6 Ges 27-6-54and 27-6-5.2exceedsor is less


5.3the differenceshall be a debt payable by
mployertothe Contractoras the case may be.

Employerdecides 27-7 -1 ination of the employmentof the Contractor


notto complete mpleted, he shall so notifythe Contractorin
the Works
such determination.Within a reasonabletime
icationthe Employer shall send to the Contractora

othe Employerasaresultofthedetermination.

od referredto in clause 27-74 the Employerhas not

pursuanttoclause 27.7.1 the Contractor may requireby notice inwriting to the


Employerthat he states whether clauses 27.6.1 to 27.6.6 are to apply and, if not to apply,
requirethat a statement of account pursuantto clause 27-7.1 be preparedby the
Employerfor submissionto the Contractor.

Other rightsend 27-8 The provisionsof clauses 27.2 to 27.7 are without prejudiceto any other rights and
remedies remedies which the Employer may possess.

56 @The Joint Contracts Tribunal Limited 2003 P With 98 19/03)


28 Determination by Contractor

Noticesunder 28.1 Any notice or further noticeto which clauses 28-2-1,28-2.2,28.2-3,28.2.4and 28.3 refer shall
clause 28 be in writing and given by actual delivery or by specialdelivery or recordeddelivery. If
sent by special delivery or recorded delivery the notice or further notice shall, subject to
proofto thecontrary, be deemed to have been received48 hours after the date of posting
(excludingSaturdayand Sunday and Public Holidays).

Defaultby 28.2 -1 lfthe Employershall make default in any one or more of the following respects:
Employer -
suspensionof
uncompleted a1 -1 he does not pay by the final date for paymentthe amount properly due to the
works Contractor in respectof anycertificateand/orany VATon th
the VAT Agreement: or

.1 .2 he interfereswith or obstructsthe issue of any


or

~1 -3 hefailstocomplywith the provisionsofclause 19.1.l;or

-1 -4 he fails pursuantto the Conditionstocomply


n \\
Regulations,

28.2 -2 If, beforethe date of PracticalCompl


the whole of the uncompletedWorks nuous period ofthe
length stated in the Appendix by re

-2 -1 -1 wherean Information

.1 .2 failure

-2 a2 Architect'si .3,13.2 or 23.2 unlesscaused by

NominatedSub-Contractor,the
ged by the Employer; or

not forming part of this Contract by the Employer


ed or otherwise engaged bythe Employeras referred
executesuch workordelay in the supply bythe
dswhich the Employerhas agreedto supply for the

ith the relevantContract Documents, after receipt by


,ifany,astheContractoris requiredtogive,orfailureof

may give to the Employera noticespecifying the event or events ('the


ension event or events').

loyer continues a specifieddefault, or

for 14daysfrom receiptof the notice under clause28-2.1or clause 28.2.2 then the
Contractor may on, orwithin lOdaysfrom,theexpiryofthat 14daysbyafurthernotice
to the Employerdeterminethe employmentof the Contractor under this Contract. Such
determinationshall take effect on the date of receiptof such further notice.

I
P With 98 (9103) @The Joint Contracts Tribunal Limited 2003 57
28.2 .4 If

- the Employerends the specifieddefaultor defaults, or

- thespecifiedsuspension event or eventscease, or

- the Contractor does not give the further notice referredto in clause 28.2.3

and

- the Employerrepeats(whetherpreviously repeatedor not) a specifieddefault, or


- a specifiedsuspension event is repeatedfor whatever p
repeatedor not), whereby the regular progress of the W
materially affected

then, upon or within a reasonabletime after such


notice to the Employerdeterminethe employme
Contract.Such determination shall take effect on

28.2 -5 A notice of determination under clause28.2-3or


unreasonably or vexatiously.

lnsolvencyof 28-3 .1 lfthe Employer[iii


Employer
makes a compositionor arrange omes bankrupt, or,

being a company,

makes a proposalfor a position of debts or scheme


of arrangementto be a ompanies Act 1985 orthe
InsolvencyAct 1986 as

ding-up (exceptfor the purposesof

6 or any amendment or re-enactmentthereof has an


rative receiver appointed

ately inform the Contractor in writing if he has made a


nt with his creditors, or, being a company, has made a

or any amendment or re-enactmentthereofas the case may be;

ctor may by noticeto the Employerdeterminethe employment of the


underthis Contract.Such determination shall take effect on the date of
uch notice. Providedthat after the occurrenceof any ofthe events set out in
3.1 and beforethe taking effect of any notice of determination of his
ent issued by the Contractor pursuantto clause 28-3-3the obligation of the

/Y.,!.,\h- Con ctor to carry out and completethe Works in compliancewith clause 2.1 shall be

the e v s t h e determinationof the employment of the Contractor under clause 28.2.3,


8-2.4or 28-3-3and so long as that employment has not been reinstatedthe provisions of
28.4.1,28-4-2and 28.4.3 shall apply; such application shall be without prejudice to
theaccrued rightsorremediesofeitherpam/ortoanyliabilityoftheclassesmentioned in
clause 20 which may accrue either beforethe Contractoror any sub-contractors, their
servants or agents or others employed on or engaged upon or in connection with the Works

Footnote IlllSeeJCTPracticeNote24:aftercertaininsolvency
eventsen InsolvencyPractitioneracts for the Employer.

58 @The Joint Contrects Tribunal Limited 2003 P With 98 (9/03)


28.4 continued
or any partthereof other than the Employeror any personemployed or engaged by the
Employershall have removed his or their temporary buildings, plant, tools, equipment,
goods or materials (includingSite Materials)or by reasonof his or their so removing the
same. Subject to clauses 28.4-2 and 28-4.3the provisionsof this Contractwhich requireany
payment or releaseor further release of Retentionto the Contractor shall not apply.

28-4 -1 The Contractorshall, with all reasonabledispatchand in such manner and with such
precautionsas will prevent injury, death or damage of the classes in respect of which
beforethe date of determination he was liableto indemnifythe Employer under clause
20, removefrom the site all his temporary buildings, plant,
materials (includingSite Materials)and shall ensure that h
same, but subject always to the provisionsof clause28.4.3

28.4 -2 Within 28 days ofthe determination of the employm

of the Contractor’s employment.

amounts in respectofall NominatedS

Conditions as if the employ


togetherwith any amounts
in such total value; and

or expense under clauses 26 and


of determination); and

-3 -3 the reason clause28-4-1;and

-3 -4 anydirectlo the Contractorby the determination; and

.3 .5 theco ing Site Materials)properly orderedfor the


have paid or for which the Contractor is legally
. 1
, ent in full by the Employersuch materials or goods

ntractorthe amount properly due in respectof this


ubmissionbythe Contractortothe Employer butwithout

Other rightsand
remedies actor may possess.

A n & Determ ati by Employer or Contractor

by reasonof one or more of the following events:

wd
e2 loss or damage to the Works occasionedby anyone or more ofthe Specified
Perils; or

.1 .3 civi1commotion;or

.I e 4 Architect‘s instructionsissued underclause 2.3.13.2 or 23-2whichhave been


issued as a result ofthe negligence or default of any local authority or statutory
undertaker executingwork solely in pursuanceof its statutory obligations; or

P With 98 19/03) @The Joint Contracts Tribunal Limited 2003 59


28A.1 -1 -5 hostilitiesinvolvingthe UnitedKingdom (whetherwar be declared or not); or

-1 -6 terrorist activity

then the Employer or the Contractor may upontheexpiryof the aforesaid relevant
periodof suspension give notice in writing to the other by actual delivery or by special
delivery or recordeddeliverythat unlessthe suspension isterminatedwithin 7 days
after the date of receipt of that noticethe employment of the Contractor underthis
Contractwill determine7days after the date of receipt of the aforesaid notice; and the
employmentof the Contractor shall sodetermine7days after receiptof such notice. If
sent by special delivery or recorded deliverythe noticeshall, subject to proofto the
contrary, be deemed to have been received 48 hours after thed
(excludingSaturday and Sunday and Public Holidays).

agents otherthan the Employer or any person


or by any localauthority or statutory undertak
its statutory obligations.

28A-1 a3 A noticeof determinationunder clause 2


vexatiously.

COnSeqUenCES Of 28A-2 Upon determinationof the employm ause 28A-1.1 the


determination
under clause
provisionsof this Contract which req ny releaseorfurther
-
28A.1.1 C h S E S releaseof Retentionto the Contract0 isionsof clauses 28A-3to
28A-3to 28A.6 28A.6 shall apply.

sses in respectof which before


indemnifythe Employer under

same, butsubjectal

28A.5.5, which shall includeas relevant amounts in respect of

lue of work properly executed atthe date of determinationof the


nt of the Contractor, such value to be ascertainedin accordance with the
as if the employment of the Contractor had not been determined, together
mounts due to the Contractor undertheconditionsnot includedin such total

certained in respect of direct loss and/or expense underclauses 26 and 34.3

pay, and on such payment in full by the Employer such materialsor goods shall
becomethe propertyof the Employer; and

60 @The Joint Contracts Tribunal Limited 2003 P With 98 19B3)


28A.5 -5 any direct loss and/ordamagecausedto the Contractor by the determination.

After taking into account amounts previously paidto the Contractor under this Contract the
Employer shall paytothe Contractortheamount properly due in respectofthis account
within 28 days of its submissionby the Employerto the Contractor but without deductionof
any Retention.
28A-6 Where determinationof the employmentofthe Contractor has occurred in respect of the
matter referredto in clause 28A-1.1.2 and the loss or damage to the Works occasioned by
anyoneor more of the Specified Perilswascaused by some negligence or default ofthe
Employer or of any personfor whom the Employer is responsible, th
determinationof the employmentof the Contractor the account pre
28A.5 shall includethe amount, if any, to which clause 28A.5-5refers

Amounts 28A.7 The Employer shall informthe Contractor inwriting which pa


attributable to any or payable under clause 28A-5is or are fairly and reasonably a
NominatedSub-
contractor Sub-Contractor and shall so inform each NominatedSub-Contract

29

Informationin 29.1 actandwhich is


Contract Bills

executionof such work.

Informationnot in 29.2
Contract Bills
oyer, then the Employer
unreasonably delayed or

29.3 Employer as referredto in clauses


med to be a person for whom the

30 Certificates and

Payments subject 30A Where it is stated Employer is a 'contractor' forthe purposes of the
to clause31 the payment of the Final Certificatethe
of the Employer to make any payment
ntract is subjecttoclause31.

Interim 30.1 as provided in clause 30 issue Interim


Certificates and from the Employer specifying
valuations - nt relates and the basis on which that amountwas calcu1ated;and
final date for
payment - payment pursuanttoanInterimCertificateshallbe 14daysfrom
interest
of each InterimCertificate.

ay the amount, or any part thereof, due to the


bythe final date for its paymenttheEmployershal1
totheamount not properlypaid simple interest
payment is made. Paymentof such simple interest
e Contractor by the Employer. The rate of interest
overthe Base Rate of the Bank of Englandwhich
at the date the payment by the Employer becameoverdue. Any payment
of simple interestunderthisclause3O.l.l-1shall not in any circumstances be
construed as a waiver by the Contractor of his rightto proper paymentofthe
principalamount due from the Employerto the Contractor in accordancewith, and
within the time stated in, the Conditionsor of the rightsof the Contractor in regardto
suspension of the performance of his obligations underthisContracttothe
Employer pursuant to clause 30.1 -4or to determinationof his employment
pursuanttothedefaultreferredtoinclause28-2-1.1.

P With an iamm
30.1 -1 -2 Notwithstandingthe fiduciary interest of the Employerin the Retentionas stated in
clause 30.5.1 the Employeris entitledto exerciseany right underthis Contractof
withholding and/or deductionfrom moniesdue or to becomedue to the Contractor
against any amount so due under an Interim Certificatewhether or not any
Retentionis included in that Interim Certificateby the operation of clause30-4.Such
withholding and/or deduction is subject to the restriction in clause35.13.5.3.2.

.1 .3 Not laterthan 5 days after the date of issue of an Interim Certificatethe Employer
shall giveawritten noticetotheContractorwhichshall, in respectoftheamount
stated as due in that Interim Certificate, specify the amount of the payment

which that amount is calculated.

.1 .4 Not laterthan 5 days beforethe final date for payme


toclause30.1-1.1theEmployer maygivea written n

amount of withholding and/or deduction attr

*1 -5 Wherethe Employer does notgive anywri


and/ortoclause30~l~l~4the Employersha he amount due
pursuantto clause30.1.1.1.

Advance payment 30.1 *1 -6


identified in the Appendix
Appendix and such advan
Contractor on the terms st
states that an advance
if the Contractor has
the Employeron the Bankers' Association and the
JCTand annexedto he Seventh Recital a bond on

Interimvaluations 30-1 *2 -1 uantity Surveyorwheneverthe Architect


rpose of ascertainingthe amountto be

Application by -2 *2 e Architect to issue Interim Certificatesas


Contractor -
amountof gross
not laterthan 7 days beforethe date of an
valuation uantity Surveyor an applicationwhich sets
ders to be the amount of the gross valuation pursuant
shall include with his applicationany application
ominated Sub-Contractorwhich sets out what the
or considersto be the amount of the grossvaluation
tions NSC/C. If the Contractorsubmits such an
or shall makean interimvaluation.Totheextent
eyor disagreeswith the grossvaluation in the Contractor's
ted Sub-Contractor'sapplicationthe Quantity
aking thevaluation shall submittotheContractora
h shall be in similar detailto that given in the application, which

Issueof Interim rtificates shall be issuedon the dates provided for in the Appendix and which
Certificates I continue uptothe date of PracticalCompletionor to within one month
Thereafter Interim Certificatesshall be issuedas and when further amounts
ined as payabletothe Contractor from the Employerand afterthe expiration
Liability Period named in the Appendix or upon the issue of the Certificate
of Making Good Defects (whicheveris the later)provided always that the
not be requiredto issue an Interim Certificatewithin one calendar month
a previous Interim Certificate.

Footnote Imml Where formula adjustmentunderclause40 accordinglythe words "whenevertheArchitect


applies, clause 40.2.1 provides:'Interim valuations shall considersthem to be necessary"shal1be deemed to
bemade before the issueof each Interim Certificateand have been deleted inclause30.1.2.1.'

67 mTho .hint CnntraFtc Trihiinnl I imitrrl 713137 P with QR mm?i


Right of 30.1 -4 Without prejudice to any other rights and remedieswhich the Contractor may possess, if
suspension of the Employer shall, subjectto any notice issuedpursuanttoclause30~1~1~4,fail to pay
obligations by
Contractor the Contractor in full (includingany VATdue pursuanttotheVATAgreement) by the
final date for payment as required bythe Conditionsand such failure shall continuefor7
days after the Contractor has given to the Employer,with a copy to the Architect, written
noticeof his intentionto suspendthe performanceof his obligations underthis Contract
to the Employer and the ground or grounds on which it is intendedto suspend
performancethen the Contractor may suspendsuch performanceof his obligations
underthis Contract to the Employer until payment in full occurs. Such suspensionshall
not betreated as a suspensionto which clause27-2-1.1refersor a failureto proceed
regularly and diligentlywith the Worksto which clause 27-2.1.2 refers.

Ascertainment of 30.2 The amount stated as due in an Interim Certificate, subject to a


amountsduein parties as to stage payments,shall be the gross valuationas re
Interim
Certificates
any amountwhich may be deducted and retainedbythe E
clause 30.4 (inthe Conditionscalled'the Retention') Imm-11

thetotal amount of any advance payment duefor r


accordancewith the terms for such reimburseme
clause 30.1.1-6 and

thetotal amount of any advance paymentdue for


accordancewith the terms of such reimbursement rt 1 Dursuantto
clause 4.1.2 of Conditions NSC/Cand

the total amount stated as due in lnteri


/ i -
sly issued underthe
.
Conditions.

The gross valuation shall be th clauses30.2.1 and 30-2-2


lessthetotal oftheamounts re d up to and including a

30.2 .1 There shall be in ct to Retention:

.1 .1 the total va by the Contractor including anywork


13.4-1-2appliesortowhicha Price
d pursuanttoclause 13.4.1-2 paragraphA2or
thereof accepted pursuanttoclause 13.4.1.2
mentor repair of loss
uses 228.3.5and

o the pricefor that work as stated in the Activity Schedule;

e materials and goods deliveredto or adjacent to the Works for


in bythe Contractor but not so incorporated, providedthatthe
rials and goods shall only be includedas and from such times as
y, properly and not prematurely so delivered and are adequately

alue of any materials or goods or items pre-fabricatedwhich are 'listed


value of which is required pursuantto clause 30.3 to be included in the
ated as due in the Interim Certificate;

unts referredto in clause4.174 of ConditionsNSC/Cin respect of each


Sub-Contractor;

-5 the profit of the Contractor upon the total ofthe amounts referredto in clauses
30.2.1.4 and 30.2.2-5 less the total of the amount referredto in clause 30.2.3-2 at the
rates includedin the Contract Bills, or, in the case where the nomination arises
from an instructionas to the expenditureof a provisionalsum, at rates related
thereto, or, ifnone, at reasonablerates.

Footnote Imm~llOptionalclause30~4Aprovidesfora standard should be made in the Appendixtostatewhether or not


bond to be given in lieu of Retention.The terms of the this optionalclause applies.
bond are set out in Annex 3 to the Conditions.An entry

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 63


30.2 -2 There shall be includedthe following which are not subject to Retention:

a2 .1 any amountsto be includedin InterimCertificates in accordance with clause 3 as a


resultof payments made or costs incurredby the Contractorunder clauses 6.2,8.3,
9.2,21.2-3,228.2 and 22C-3;

-2 -2 any amountsascertained underclause 26.1 or34.3 or in respect of any restoration,


replacementor repair of loss or damage and removaland disposal of debriswhich
inclauses 228.3.5 and 22C.4.4.2 are treatedas if they were a Variation;

.2 -3 anyamounttowhichclause35~17refers;

.2 -4 any amount payabletotheContractorunderclause38or

e2 -5 the amounts referredto in clause 4.17-2of Condition


NominatedSub-Contractor.

30-2 -3 There shall be deducted the following which ar

4 e1 any amount deductibleunder clause7 or


allowable bythe Contractorto the Employ

.3 -2 any amount referredto in clause 4-17.3 of


NominatedSub-Contractor.

Off-sitematerials 30-3 The materialsor goods or items p hichthis clause


orgoods - 'the refers('the listed items') shall hav
listeditems'
Contractorand annexed to the Con ue in an Interim

the Works providedthat the follo

30.3 -1 the Contractor able proof that the property in

oyer, the uniquely identified listed items


,if so stated inthe Appendix, has also

enth recital a bond on otherterms is requiredby

30.3 -2 thecontract items which are not uniquelyidentifiedhas provided

ted items shall becomethe property of the Employer; and

therterms is requiredby the Employer;

items are in accordance with this Contract;

items at the premises wherethey have been manufacturedor assembled or

have been clearly and visibly marked individually or in sets by lettersorfigures or by


referenceto a pre-determinedcode

and identify

I 64 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


c
r 30-3 .4 a1 the Employer and to whoseordertheyare held;and

-4 -2 their destinationas the Works;

30.3 -5 the Contractor has providedthe Employerwithreasonable proof that the listeditems are
insuredagainst loss or damage fortheir full value under a policy of insurance protecting
the interestsof the Employer and the Contractor in respect of the SpecifiedPerils, during
the periodcommencing with the transfer of property in the listed itemsto the Contractor
until they are deliveredto, or adjacent to, the Works.

-
Retention rules
for ascertainment
30.4 ~1 The Retentionwhich the Employer may deduct and retainas referredto in clause 30.2
shall be such percentage ofthe total amount includedundercla
InterimCertificate as arisesfromthe operationof the followin

-1 e1 the percentage(inthe Conditionsand Appendixcalle


deductibleunderclause30~4~1~2shaII be5 percent (u
been agreed betweenthe parties and specified in the
Percentage);and the percentagedeductibleun

I .1
of the Retention Percentage; inn]

.2 the Retention Percentage may be deduct


1001
i amount as relatesto:

work which has not reached PracticalC


17.1,18-1.1 or35.16);and

amounts in respect of th
nu luded under clauses
30.2.1.2,30.2.1.3and30 o materialsand
goods as referredto in c

-1 -3 ioolhalfth m so muchof the said total

304 .2 The Retention deduct


I
and specifiedin the statements
to as the 'Contractor's retention' and
3 ,

I
Contractor's bond 304A -1 Where it is st clause 30.4A applies, the provisionsin clauses
in lieu of Retention Employer may deduct and retaina percentageof
e 30.2.1 in any InterimCertificate('the Retention')
son treafmentofRetention)shallnot apply;save thatthe
eof each InterimCertificate prepare, or instructthe Quantity
statement specifyingwhat deductionin respect of the
and of the NominatedSub-ContractRetention for each
ractorwould have been made, usingthe percentagestated in the
oclause30~4~1~1,inarrivingattheamountstatedasdueinsuch
ad the provisions in clauses30-2.1and 30-4applied.100~11

re the Date of Possessionthe Contractor shall provideand thereafter


bond infavouroftheEmployerinthetermssetoutatAnnex3 tothe
incorporatingin clause 2 (maximumaggregatesumlandin clause 6(iii)
he bond, the sum and date stated in the Appendix. The bondexecuted
named in the bond ('the Surety') shall be suppliedto the Employer.

V
the Employer atthe tenderstage estimates of the Certificate of Completion of Making Good Defects,
t Sum to be €500,000 or over, the Retention whicheveristheleter,the balancaoftheRetentionon
should not be more than 3 percent. the wholeortheappropriate part. When Retentionisso
includedin InterimCertificates it becomes a 'sum due' to
U 1001 By theoperationof clauses30~4-1.2and 30.4.1.3the
Contractorwillhave releasedto him by the Ernployer
uponpaymentofthenextlnterimCertificateafter
theContractorand thereforesubjecttotherightsofthe
Employertodeducttherefrominaccordancewiththe
rightsoftheEmployersotodeductasset outinthe
PracticalCompletionofthewholeorpartoftheWorks Conditions.
approximately one half of the Retention on the whole or
theappropriatepart;and upon paymentof the next lw11Thissaving provisionis included inview ofthe
InterimCertificate afterthe expiration of the Defects provisionsinclauses4(ii)and4(iii)ofthe'Bondinlieuof
Liability Periodnamed in the Appendix, or after the issue Retention'atAnnax3.

I P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 65


30-4A -3 If the Contractor is in breach of clause30.4A.2 by not providingand maintainingthe
bondthe provisionsof clauses 30.2-1,30-4and 30.5 which referto the deductionand
treatment of the Retention shall apply in respect of the next InterimCertificateand
subsequent InterimCertificatesissuedafterthedate of the breachatthe percentage
stated in the Appendix pursuantto clause 30-4.1.1. If laterthe Contractorprovidesand
thereafter maintainsthe required bondthe Employershall, in the next InterimCertificate
after such compliance, have releasedto the Contractor andto any Nominated
Sub-ContractortheRetention deductedduring the periodofthe breach.

30.4A a 4 If at any time the Retentionthat would have been deductedhadthe provisionsof clauses
30.2.1 and 30.4appliedexceedsthe amountof the aggregate sum stated inthe bond,

30.4A -5 Where the Employer has required


in respectof any default to which t
which the Employercould make a

Ruleson 30-5 The Retentionshall be subject to the following rules:


treatmentof
Retention
Contractorand for

30.5 -2 .I atthedateof each InterimCertifi prepare, or instructthe


QuantitySurveyortoprepar Contractor’s retention
inatedSub-Contractor
deducted in arriving at the

e Employer,to the Contractor

30.5 -3 The Employer ercises his right underclause


or so requests, at the date of

y such interestto the Contractoror any sub-

of any NominatedSub-contractorby referencetothe latest

Final adjustment months after Practical Completionof the Works the Contractor
ofContractSum
documentsfrom
- e Architect, or, if so instructed by the Architect,the Quantity
Contractor

actors and NominatedSuppliers.

Architect, or, if the Architect has so instructed,the Quantity Surveyor,shall


ertain (unlesspreviously ascertained) any loss and/or expense under
clauses26.1,26.4.1 and 34.3, and

-2 -2 the QuantitySurveyorshall prepare a statement of all adjustmentsto be made


to the Contract Sum as referredto in clause30.6.2 other than any to which
clause30.6.1-2.1 applies

and the Architect shall forthwith send a copy of any ascertainmenttowhich clause
30.6.1-2-1refersand of the statement preparedin compliancewith clause 30.6-1-2.2
tothecontractorandthe relevantextracttherefromtoeach NominatedSub-
contractor.
66 @The Joint Contracts Tribunal Limited 2003 P With 98 (9D3)
ltemsincluded in 30.6 e2 The Contract Sum shall be adjustedby:
adjustmentof
ContractSum
- the amount of any Valuations agreed bythe Employer and the Contractortowhich
clause 13.4-1-1refers, and

- the amountsstated in any 13A Quotationsforwhich the Architect has issuedto the
Contractora confirmedacceptance pursuantto clause 13A-3.2and for the amount
of any Variationsthereto asvaluedpursuantto clause 13A.8, and

- the amount of any Price Statement or any partthereofaccepted pursuantto clause


13.4.1.2 paragraph A2 or amended PriceStatement or any part thereof accepted
pursuanttoclause13.4.1.2 paragraphA4-2

and as follows:

there shall be deducted:

-2 -1 all primecost sums, all amounts in respectof


in clause 35.1, the certifiedvalue of any
whose employment has been determined
was not in accordancewith the
the Employer, and any

-2 -2 all provisionalsums and the value Quantity is


includedin the Contract Bills;

.2 e3 theamount ofthevaluation U omitted in accordance with


avariation required bythe Ar or subsequentlysanctioned
by him inwriting, togethe eContract Billsforany .
otherwork as referredto i lued underclause 13.5;

-2 -4 any amount deducted 7 or 8.4.2 or 17-2or 17.3 or any


amount all derclause 38,39 or 40, whichever
isapplicab

-2 -5 anyotheramoun Contracttobedeductedfromthe
Contract Sum;

thereshall be
QA ded:
V
sted or ascertained under all relevant provisionsof

use 35.2 has been accepted;

but shall exclude any value addedtax which is treated, or is


t tax by the Contractor;

it of the Contractor upon the amounts referredto in clauses 30.6-2-6,


and 30-6-2.8atthe rates includedinthe Contract Bills or inthe cases where
inationarisesfrom an instructionas to the expenditureof a provisional

ounts paid or payable by the Employertothe Contractoras a result of


paymentsmade or costs incurredby the Contractorunderclauses 6.2,8.3,9.2 and
2 1.2.3;

-11 the amount of thevaluation under clause 13-5of any Variation, includingthe
valuationofotherworkasreferred toinclause 13.5.5,otherthan theamountofthe
valuationof any omissionunder clause 13-5.2;

I P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 67


30.6 .2 .12 the amount of the Valuationof work executed by, or the amount of any
disbursementsby, the Contractor in accordancewith instructionsofthe Architect
as to the expenditureof provisionalsums includedin the Contract Bills and of all
work for which an Approximate Quantityis includedin the Contract Bills; .

-2 ~ 1 3any amount ascertained underclause26.1or34.3;

.2 e14 any amount paid bytheContractorunderclause 22Borclause22Cwhichthe


Contractoris entitledto have addedto the Contract Sum;

.2 -15 any amount paid or payableto the Contractorunder clause 38,39 or 40, whichever is
applicable;

-2 -16 any other amountwhich is required bv this Contract to be a


Sum;

-2 -17 any amountto be paid in lieu of any ascertainment und


pursuanttoclause 13.4-1.2paragraph A7.

Interim 30.7 So soon as is practicablebut not less than 28 days


-
Certificate final
I adjustment or
ascertainmentof
Certificatereferredto in clause 30.8 and notwithst
not have elapsed since the issue ofthe previous In
nominatedsub- an Interim Certificatethe grossvaluationfor which s
contractsums
contract sumsfor all NominatedSub-Contrac
relevantprovisionsof ConditionsNSC/C.

lssueof Final 30.8 .1 The Architect shall issuethe FinalC NominatedSub-


Certificate Contractor of the date of its issue) whichever of the
following occurs last:

the end of the Defects Lia

MakingGood Defects under

A to thecontractor of any ascertainmentto


tement preparedin compliancewith

ready stated as due in InterimCertificatesplusthe


yment paid pursuanttoclause30.1.1.6, and

accordance with clause30-6.2, and

ount relates and the basis on which the statementinthe Final


been calculated

hall (without prejudiceto the rightsof


s which have subjectto any notice
paid in full by the Employerby the final date
t of such Certificate)be expressed in the said Certificateas a balance due to
tor from the Employer or to the Employer from the Contractoras the case

I an 5 daysafterthedate of issue of the FinalCertificatethe Employershall give


to the Contractor which shall, in respectof any balancestatedas due to
romthe Employerin the FinalCertificate, specifythe amount of the
sed to be made, to whatthe amount ofthe paymentrelates and the basis
I
ble by the Employertothe Contractor
y beshall be28daysfromthedateof
issue of the said Certificate. Not laterthan5days beforethe final date for payment of the
balancethe Employer may give a written noticeto the Contractorwhich shall specify any
amount proposedto be withheld and/ordeductedfrom any balancedue to the
Contractor, the groundorgroundsforsuch withholdingand/ordeductionand the
amount of withholdingand/or deductionattributableto each ground.

I 68 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


30-8 -4 Where the Employerdoes not give a written notice pursuantto clause30.8.2 and/or
clause 30-8-3the Employershall pay the Contractor the balancestated as due to the
Contractor in the Final Certificate.

30.8 -5 If the Employeror the Contractor fails properlyto pay the said balance, or any part
thereof, bythe final date for its paymentthe Employerorthe Contractor asthecase may
be shall payto the other, in additionto the balancenot properly paid, simple interest
thereon for the period until such payment is made.The rate of interest payableshall be
five percent (5%)overthe Base Rateofthe Bankof Englandwhich iscurrent atthedate
the payment by the Employeror by the Contractor as the case may be becameoverdue.
Any payment of simple interest underthis clause30.8 shall not in any circumstances be
construed as a waiver bythe Contractoror by the Emp
right to proper paymentof the aforesaidbalancedue f
Contractoror from the Contractorto the Employerin a

30.8 -6 Liabilityfor payment ofthe balancepursuanttoclaus


pursuanttoclause30.8-5shall betreatedasa debtdu
or to the Employer by the Contractoras the case may

Effectof Final 30.9 .I Exceptas provided in claus


Certificate Certificateshall have effect
with this Contract (whether

-1 -1 conclusiveevidencethatwhere particular qualities


of any materials or goods or any
wasdescribedexpressly in the C
the Architect underthe
itect under clause

eductedfrom the
t Sum save where there

I haveeffect asconclusiveevidenceastoall other

thatthe reimbursementof direct loss and/orexpense, if any,


suantto clause26.1 is in final settlement of all and any claims
as or may have arising out ofthe occurrence of any of the
n clause26.2 whether such claim be for breach of contract,
ry duty or otherwise.

ication, arbitration or other proceedings have been commenced by either


e the Final Certificatehas been issuedthe Final Certificateshall haveeffect as
evidenceas provided in clause 30.9.1 after either

proceedingshave beenconcluded, whereuponthe FinalCertificateshall be


ctto the terms of any decision, award or judgment in or settlement of such

afterthe issueof the FinalCertificateduring which neither


Party hastaken any further step in such proceedings,whereupon the Final
Certificate shall be subjectto any terms agreed in partial settlement,

whichever shall bethe earlier.

30.9 .3 If any adjudication, arbitration or other proceedings have beencommenced byeither


Partywithin 28 days afterthe FinalCertificatehas been issued, the Final Certificateshall
have effect as conclusiveevidenceas provided in clause30-9-1save only in respect of all
mattersto which those proceedingsrelate.

I P With 98 (9B3) @The Joint Contracts Tribunal Limited 2003 69


30.9 -4 Where pursuant to clause 41A-7-1either Partywishes to have a disputeor differenceon
which an Adjudicator hasgiven his decision on a date which is after the date of issue of
the Final Certificate finally determinedby arbitrationor legal proceedings, either Party
may commence arbitrationor legal proceedingswithin 28days of the date on which the
Adjudicator gave his decision.

Effectof 30-10 Save as aforesaid no certificateof the Architect shall of itself be conclusiveevidence that
certificatesother
thanFinal
Certificate 30-10 -1 any works, materials or goods

or

30.10 -2 any PerformanceSpecified Work

to which it relates are in accordance with this Contract.

31 Construction Industry Scheme (CBI

Definitions 31.1 Inthisclause and inthe Appendix:

'the Act'meansthelncomeand CorporationTaxesA


modificationthereof;

'Authorisation' means:

either 'CIS 4', the hich has an expiry date or


the Regulations appearing

or
Regu l a t i o n t p e a ~ ~ b d u1ofthe
l e Regulations and issued by
thelnland ven e-
A tractor's letter headedstationery, not a
y regulation34 of the Regulations;

ionsdefinedin S.567 ofthe Act as construction

'contractor' mea ontractorforthe purposesof the Act and the

the Contractor or to any other person of


truction operationsto which the contract
s made relates as provided in regulation7 of the Regulations;
e IncomeTax (SubContractorsin the ConstructionIndustry)
43 as amended by the IncomeTax (Sub-Contractors in the
mendment) Regulations 1998S.I. No. 2622 or any amendment or

n force at the time of paymentreferred


d (4A)of the Act;

meansa personwho isa sub-contractor forthe purposesoftheAct and the

ns:

ither a tax payment voucher in the form CIS 25 provided by regulation7 and appearing as
shown in Schedule 1ofthe Regulationsand issued by the InlandRevenue;

a gross payment voucher CIS 24 in the form providedby regulation 29 and


appearing as shown in Schedule 1ofthe Regulationsand issued by the Inland
Revenue.

I 70 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


Whether 31.2 Where it isstated in the AppendixthattheEmployeris nota'contractor'clauses31~3to31-14
Employerisa shall not apply. Neverthelessif, at any time up to the payment of the FinalCertificate, the
'contractor'
Employer becomessuch a 'contractor', the Employershall so inform the Contractor and the
provisions of clauses 31.3 to 31.14 shall thereupon becomeoperative.

Payment by 31.3 The Employershall not make any payment under or pursuantto this Contract unless a
Employer -valid valid Authorisation has been providedto him or his nominated representativeby the
Authorisation
essential Contractor.

Validityof 31.4 -1 lfthe Employeror his nominated representativeis not satisfied with the validity of the
Authorisation - Authorisation providedby the Contractor, he shall thereupon notify the Contractor in
Employer's query
writing of hisgrounds for consideringthat the Authorisation is

31.4 -2 Where a notification has been given underclause31.4.1, t


any payment under or pursuantto this Contract until

either the Employeror his nominated representativeh


which heconsidersto bevalid

or the Contractor has re-submittedthe Au


Contractor's tax off ice, confirming that

Authorisation: 31.5 -1 Where the Authorisation is a CIS 4 registrationc rethefinal datefor


CIS 4 registration payment of any sum due:
card

-1 -1 theContractorshallgivetotheE owing the direct cost of


materialsto the Contractorand t be includedin the payment;
and

-1 .2 the Employershall make

31-5 -2 Where the Con 1 he shall indemnifythe Employer

31-5 -3 Where the Co h clause31-5-1-1,orwherethe Employer has

r shall make a fair estimate of the direct cost of

Authorisation: 31.6 Wherethe Auth 5 or CIS 6or a certifying document the Employershall
CIS 5 or CIS 6
or a certifying
document

is a CIS 4 butthe Contractor is subsequentlyissuedwith a CIS 5 or


Authorisation the Contractorshall immediatelyinform the Employerand
IS 6 in personto the Employeror his nominatedrepresentative
is nominatedrepresentativea certifying document. Providedthe
epresentative is satisfiedwith the validity of the changed
Ithereupon apply.

ion CIS 5 orClS 6 is withdrawn bythe Inland Revenuefor any reason,the


Ithereupon notify the Employeror his authorised representative and the
all make no further paymentstothe Contractor under or pursuant tothis
e Contractor providesthe Employeror his authorised representativewith a
ion CIS 4.Aftersuch provisionclauses31~5~1,31~5~2 and 31-5-3shallapply.

ion CIS 5 or CIS 6 expires, the Employershall make no further paymentsto the
o this Contract until the Contractor:

either shows in personto the Employeror his nominated representativean Authorisation


CIS 4and if soclauses31~5~1,31~5~2
and31.5.3shall apply;

or providesto the Employeror his nominated representativean Authorisation CIS 5 or


CIS 60r a certifying document and if so clause31.6 shall apply.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 71


Vouchers 31.10 Where AuthorisationCIS 4applies and the Employer has made payments to the Contractor,
i,
theEmployershallwithin 14daysoftheendoftheincometaxmonth[oO21inwhich the
paymentis made providethe Contractor with a copy of the CIS 25voucherthat he has sentto
the InlandRevenueshowingall the payments made in the tax monthconcernedand the total
tax deducted.

31-11 Where AuthorisationCISGappliesandthe Employer has made paymentstothe Contractor,


the Contractorshall within 14days of the end of the incometax month1-21 in which the
paymentis made providethe CIS 24voucherto the Employer who shall add thereto his tax
reference and sendthe voucher to the InlandRevenuewith a copy to the Contractor.

Correctionof 31-12 Where the Employerhas made an error or omission in calculatingthe


errors in making he may correctthe error by repaymentor further deductionfrom p
thestatutory
deduction Contractor, subject only to an instructionby the InlandRevenueto
such a correction.

Relationto other 31.13 If compliancewith thisclause31 involvesthe Emp


clauses with any other ofthe Conditions, then the provisio

Disputesor 31-14 The relevantprocedures applicableunder this Contra


differences differencesbetween the Employer and the Contrac
! betweenthe Employerand the Contractor as to the
the Act orthe Regulations oranyotherAct of Parlia
order made under any Act of Parliament providefors
dispute or difference.

32 [Number not used]

33 [Number not used]

34 Antiquities

Effectof find of ue which may be found on the site


antiquities rks shall becomethe property of the
ctor shall forthwith:

34.1 .1 usehisbe object and shall ceasework if and insofar as


he object or preventor impede its excavation

34.1 -2 takeallste aryto preservetheobject in the exact positionand

rks ofthe discoveryand precise locationof the

Arc hiteds structions in regardto what isto be done concerningan object


instructionson under clause 34.1, and (withoutprejudicetothe generalityof his
antiquities found
may requirethe Contractortopermitthe examination, excavation
byathird party.Anysuchthird partyshallforthepurposesof
be a personfor whom the Employer is responsibleand notto be a

nion of the Architect compliancewiththe provisionsof clause34.1 or with an


issued under clause 34.2 has involvedthe Contractorin direct loss and/or
imbursedby a payment made under any other
thiscontractthen the Architect himselfshall ascertainor shall instructthe
rveyorto ascertain the amountof such lossand/orexpense.

forthe ascertainment of such loss and/or


in writing to the Contractor what extensionof time, if
n respect ofthe RelevantEvent referredto in
clause 2545.1 so far as that clause refersto clause34

34.3 -3 Any amountfrom time to time so ascertainedshall be added to the Contract Sum.

Footnote I m 2 l T h e incometaxmonthendson the 5thdayofthe


month.

72 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


Part 2: Nominated Sub-Contractors and
Nominated Suppliers

Nominated Sub-Contractors
35 GENERAL

Definition of a 35-1 Where


NominatedSub-
Contractor
35-1 -1 in the Contract Bills; or

35.1 .2 in any instructionof the Architect under clause 13.3 on th


sum includedin the Contract Bills;or

35.1 -3 in any instructionofthe Architect under clause 13


but not further or otherwise,

-3 .1 that it consistsof work additionalto that s

e3 .2 that any supply and fixing of


NominatedSub-Contractori
kindto any supply and fixing o
tea sub-contractor;or

35.1 .4 by agreement (whichagre

the Architect has r by naming a sub-contractor,


ub-contractorto the Contractor
work, the sub-contractorso

ovisions of clause 35.1 shall apply


thod of Measurementfor a PC sum to

Contractor's 35.2 -1 course of his business directly carries out works


tender forworks hichclause 35 applies, and where items of such
otherwise
reservedfor a and the Architect is preparedto receive tendersfrom
NominatedSub- nthecontractor shall be permittedtotender forthe
Contractor without prejudiceto the Employer's right to rejectthe lowest
ractor'stender isaccepted, heshall notsub-lettheworktoa

issued underclause 13.3itshallbedeemedforthepurposesof


en includedin the Contract Bills and the item of work to which it

aconditionofanytenderaccepted underclause35~2thatclause13shall
ofthe items of work includedin the tender as if for the referencetherein
ntract Drawingsand the Contract Bills there were referencesto the equivalent
ents includedin or referredto in thetendersubmittedunderclause35.2.

provisionsof clause 35 otherthanclause 35.2 shall apply to works for which


Contractor is accepted under clause 35.2.

PROCEDURE FOR NOMINATION OF A SUB-CONTRACTOR

The nominationof a sub-contractortowhich clause 35.1 appliesshall be effectedin


accordance with clauses 35.4 to 35.9 inclusive.

P With 98 W03) @The Joint Contracts Tribunal Limited 2003 73


Documents 35.4 The following documents relatingto NominatedSub-Contractors are issued by the JCTand
relating to are referredto inthe Conditionsand in those documentsby the use either of the name or of
NominatedSub-
Contractors the identificationterm:

Name of document Identificationterm

The Standard Form of NominatedSub-ContractTender NSC/T


1998Editionwhich comprises:
Part 1: The Employer'slnvitationtoTendertoa - Part1
Sub-Contractor

Part2: Tender by a Sub-Contractor

Part3: ParticularConditions(to be agreed by a Contractor


and a Sub-Contractor nominated under clause 35.6)

The Standard Formof Articles of Nominated


Sub-ContractAgreement between a Contractor and a
NominatedSub-Contractor, 1998Edition

The Standard Conditionsof NominatedSub-Contrac


Edition, incorporatedby reference into Agreement N

The StandardForm of Employer/Nominated


Sub-Contractor Agreement, 1998Edition
I
!
The Standard Form of Nominationlnstr omination NSC/N
Sub-Contractor

Contractor's right 35.5 .I No personagainstwhomth


of reasonable NominatedSub-Contractor.
objection

tor can then complywith clause


I such nomination instruction
I

Architect's
instructionon
Nomination
NSCIN-
documents bythe Architect and NSC/TPart2completedandsigned bythe
accompanying
the instruction ed by or on behalfofthe Employeras'approved'togetherwith a
ender documents listed in and enclosed with NSC/T Part 1
itionaldocumentsand/or amendments thereto as have been

completedAgreement NSCWenteredinto between the Employerand the

ions or restrictions imposedbythe Employer


f Works: Employer's requirements
d locationof access; and

Acopy of the instructionshall be sent by the Architectto the sub-contractortogetherwith a


instructionto sub- copy of the completedAppendixforthe MainContract.
contractor

@The Joint Contracts Tribunal Limited 2003 P With 98 (9/031

~ ~~
Contractots 35-7 The Contractor shallforthwith upon receiptof such instruction:
obligationson
receipt of
Architect's 35.7 -1 complete in agreementwiththe subcontractor NSCnPart3 and have that completed
instruction NSCFPart3signedby oron behalfoftheContractorand by oron behalf ofthesub-
contractor; and

35.7 -2 execute Agreement NSCIAwiththe subcontractor

and thereuponshall send a copy of the completedAgreement NSCIAandof the agreed and
signed NSC/TPart3(butnottheother AnnexurestoAgreement NSC/A)totheArchitect.

Non-compliance 35.8 If the Contractor, having used his best endeavours, has not, within 10
with clause35.7 - receipt of such instruction,compliedwith clause 35-7,the
Contractofs
obligationto noticein writing informthe Architect
notify Architect
either

35-8 .I of the date by which he expects to have compliedwith c l a u s e 3 q \


or

35-8 .2 that the non-compliance is due to other mattersi

Architect's duty 35-9 Within a reasonabletime after receiptof a notice undeh$ause&Sdeq/chitectshall:


on receipt of any
notice under
clause 35.8 35.9 -1 whereclause35.8-1amlies, after consn tationuWI a n d so far as he
considers it reasonable, fix a later date ctor shall have complied
with clause 35.7;

35-9 -2 where clause35-8.2 applies, inf

either that he does ntified in the noticejustify non-


inationinstruction, in which case

identifiedin the noticejustify non-

uefurther instructionssothatthe
clause 35.7 in respectof such nomination
nomination instructionand issue an instruction

35-10 [NU

35-11 [NU

~ ~~~

[ppl The 'other matters identifiedinthe Contractots to him bytheArchitectwithacopyofthenomination


noticeamayinclude: any discrepancyin or divergence instructiondiffering from those in the Main Contract
betweenthenumberedtenderdocumentsora Appendix attachedto tha Architect's InvitationtoTender
discrepancy in or divergence betweenthe numbered (NSWPart 1);or to any informationgivento
tender documents andthedocuments referredtoin himinitems7.8end9oftheArchitect'slnvitation to
clauses2.3.1 to2.3.4;and any reasonsgiventothe Tender having beenchangedasconfirmed by the
Contractor by the subcontractorfor not agreeingthe Architect when issuinghisnomination instruction(see
items in N S W Part 3 or for not being preparedto have clause 35-6-31,which changes haveto be identifiedin
NSWPart3signed by oron hisbehalfwhich may NSWPart 3.
relate to: the itemsin the Main ContractAppendix sent

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 75


C! PAYMENT OF NOMINATED SUB-CONTRACTOR

Architect 35.13 -1 The Architect shall on the issue of each InterimCertificate:


-direction a8 to
interim payment
for Nominated -1 .1 direct the Contractor as to the amount of each interim or final paymentto
Sub-Contractor NominatedSub-Contractorswhich is includedin the amount stated as due in

i InterimCertificates and the amount of such interimorfinal paymentshall be


computedbythe Architect in accordance with the relevant provisions of Conditions
NSCIC; and

-1 .2 forthwith informeach NominatedSub-Contractorof the amount of any interimor


final paymentdirectedin accordancewithclause35~13~1.1.

35.13 .2 Each paymentdirectedunder clause35.13.1.1 shall be paid b


date for its payment in accordancewith ConditionsNSC/C.

Direct paymentof 35.13 -3 Before the issue of each InterimCertificat


NominatedSub- of the FinalCertificate the Contractors
Contractor
of payment bythecontractor pursuan

35.13 a 4 If the Contractor is unabletoprovideth


becauseof somefailureoromissionof
document or other evidence to the Con
requireand the Architect is reasonablysatis
reasonableproof is not furnished byth
shall not apply andthe provisionsofcl
satisfied.

Architect shall issue


which the Contract0

-5 -2 Providedth cate underclause35.13-5.1, and


ture paymentotherwisedue to the

ontractor hasfailed to pay (togetherwith


would have been due to the Nominated

ctorwould otherwisebe entitledto paymentof an amount


n InterimCertificate under clause 30, the reductionand

30 or, if there is no such balance, not laterthanthe expiry of


ays within which the Contractor would otherwise be entitled

o the Contractor is the Retention or any part thereof, the


ent to the NominatedSub-Contractors referredto in clause
xceed any part of the Contractor's retention(asdefined in

ere the Employer hasto pay2 or more NominatedSub-Contractors but the


ount due orto become due to the Contractor is insufficient to enable the
Employerto pay the NominatedSub-Contractors in full, the Employer shall
applythe amount available pro rata to the amounts from time to time
remainingunpaid by the Contractor or adopt such other methodof
apportionmentas may appeartothe Employertobe fair and reasonable
having regard to all the relevantcircumstances;

76 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/031


35-13 -5 continued

-3 -4 clause35-13-5.2shall cease to haveeffect absolutely if at the date when the


reduction and payment to the NominatedSub-Contractorsreferredto in clause
35-13.5.2 would otherwise be madethere is in existence

either a Petitionwhich has been presentedto the Courtforthe winding up


of the Contractor

or a resolution properly passedfor the winding up of the Contractor other


than for the purposes of amalgamationor reconstruction

Agreement
whichever shall havefirst occurred. [qqi

35-13 -6 Where, in accordance with clause 2.2 of Agreement NSC/W, e mplo


n befor e
NSW- date of the issue of an instruction nominatinga sub-contr to ,h s paidto h
pre-nomination
paymentsto amount in respectof design work and/or materialsor go0< and/orv bricationh is/
NominatedSub- are included in the subject ofthe subcontract sum or tenders
contractorby
Employer
.6 -1 the Employershall send to the C o n t r a c t o r t h e e e & e A o m i n a t e d
Sub-Contractorof the amountto becredite

.6 -2 the Employermay make withholdi unt of such credit


from the amounts stated as due to
which include amounts of interim
Contractor; providedthat the am
due in anyone Interim Certificate
NominatedSub-Contractorinch

TlON OF NOMINATED

35.14 ~1 TheContrac Contractor any extension ofthe


s (orwherethesubcontract

35-14 .2 TheArchit

an extension ofthe period or


r any partthereof as referredto in

E NOMINATED SUB-CONTRACT WORKS

ontractor. Immediatelyupon the issue of such a certificate the Architect

ateofthe Architect underclause35.15-1shall be issued not laterthan 2


m the date of notificationto the Architect thatthe NominatedSub-
has failedto complete the sub-contractworks or any part thereof.

Footnote [qql Where the Contractor is a person subjectto require amendmentto referto theeventson the
bankruptcylaws and not the law relatingto the happeningof which bankruptcyoccurs.(See also
insolvencyofacompany,clause35.13.5.3.4will footnote [al.)

P With 98 (9D3) @The Joint Contracts Tribunal Limited 2003 77


PRACTICAL COMPLETION OF NOMINATED SUB-CONTRACT WORKS

35.16 When in the opinionof the Architect practicalcompletionof theworks executed by a


NominatedSub-Contractor is achieved and the Sub-Contractor has compliedsufficiently
with clause 5E.2.5 of Conditions NSCIC he shall forthwith issue a certificateto that effectand
practicalcompletionof such works shall be deemed to have taken place on the day named in
suchcertificate,aduplicatecopyofwhichshall besent bythe Architectto the Nominated
Sub-Contractor; where clause 18applies practicalcompletionof works executed by a
NominatedSub-Contractorin a relevant part shall be deemedto have occurredon the
relevant date to which clause 18.1 refers and the Architectshall send to the NominatedSub-
contractora copy of the written statement which he has issued pursuantto clause 18.1.

EARLY FINAL PAYMENT OF NOMINATED SUB-CONTRA

35.17 Providedclause 5 of Agreement NSCMlremains in fo


7”59\=)
the day named in the certificateissued under clause 3

final sub-contract sum as finally adjusted or ascerta


ConditionsNSCK; providedalwaysthat the Nomin

or other faults which have appeared an Contractor is bound


to remedy under the NominatedSub-C

35-17 .2 has sent throughthe Contractor tot


documents necessary for
computationof the ascert

Defects in 35.18 Uponpaymentbythe Contract0 to the NominatedSub-


nominated sub Contractor (’the orig
contractworb
after final
payment of 35.18 -1 -1 iftheorigin anydefect,shrinkage or other fault in
Nominated Sub- o remedy underthe NominatedSub-
Contractor- ue ofthe FinalCertificateunderclause
before issueof
FinalCertificate ction nominatinga person (’the substituted
ificationwork and all the provisionsrelating

ps as may be reasonableto recover, under the


ginal sub-contractor a sum equal to the sub-
subcontractor.The contractor shall payor allowto
recovered by the Employer
ntractor providedthat, before
r has agreed (which
hheld)to the subcontractprice

-18shalloverrideor modifytheprovisions ofclause35.21.

Final payment - ontractor under the provisions of


saving provisions

he date when the Employer takes


first occurs, the Contractor shall be responsiblefor

that part of the Works for which a paymentas aforesaid has not been
I

cableshallremain in full

78 @The Joint Contracts Tribunal Limited 2003 P With 98 19/03)


POSITION OF EMPLOYER IN RELATION TO NOMINATED SUB-CONTRACTOR

35.20 Neitherthe existence nor the exerciseofthe powers in clause35 nor anything else
contained in the Conditionsshallrenderthe Employerin anyway liableto any Nominated
Sub-Contractor except by way and in the terms of the Agreement NSCMI.

CLAUSE 2.1 OF AGREEMENT NSC/W - POSITION OF CONTRACTOR


35.21 The Contractorshall not be responsibleto the Employerfor:

-1 the design of any nominated sub-contractworks insofar ass


contract works have been designed by a NominatedSub-Co

e2 the selectionof the kinds of materials and goods for any n


insofar as such kinds of materials and goods have beens
Contractor;

.3 the satisfaction of any performancespecificatio


performancespecificationor requirement is incl
any nominatedsub-contractworks included in o
documentsenclosedwith any NSCn Part 1;

.4 the provision of any information req Agreement NSCMI


in reasonabletime sothatthe Archit ns of clauses5.4-1
and 5.4.2 in respectthereof.

RESTRICTIONS IN - LIMITATION OF LIABILITY OF


NOMINATED SUB

actorto the Contractor is limited under the


e liability of the Contractorto the Employer

35-23 [Numbe

RE RE-NOMINATION NECESSARY

ated Sub-Contract:
W
informs the Architect that in the opinion of the Contractorthe
de default in respectof any one or more of the
1to7.1.1.4of Conditions NSCK; and the Contractor
the Architect any observationsof the NominatedSub-Contractor in regard
on which the ContractorconsiderstheNominatedSub-Contractor is in
e Architect is reasonablyof the opinion thatthe NominatedSub-

ct that one of the insolvency events referredto in


(Insolvencyof Nominated Sub-Contractor)has
occurred and either that under clause7.2.3 of the aforesaid Conditionsthe employment
of the Nominated Sub-Contractorhas been automatically determinedor that under
clause7-2.4 of those Conditionsthe Contractor has an option, with the written consent
of the Architect, to determinethe employmentof the NominatedSub-Contractor; or

35.24 -3 the NominatedSub-Contractordetermineshisemployment underclause7.7 of


Conditions NSC/C; or

P With 98 (9D3) @The Joint Contracts Tribunal Limited 2003 79


35.24 .4 the Contractor has been required bythe Employerto determine the employmentof the
NominatedSub-Contractorunder clause 7.3 of Conditions NSC/C and has so
determinedthat employment; or

35-24 .5 work properly executedor materials or goods properly fixed or supplied by the
NominatedSub-Contractor haveto be taken down and/or re-executedor re-fixedor
re-supplied ('work to be re-executed')as a result of compliance by the Contractoror by
any other NominatedSub-Contractorwithany instructionor other exercise of a power
ofthe Architect underclauses7or8.40r 17.2or 17-3andthe NominatedSub-
contractor cannot be required under the NominatedSub-Contractand does not agree
to carry out the work to be re-executed;

then:

35.24 a6 Where clause35-24.1applies:

.6 -1 the Architectshall issuean instructionto

-6 .2 the Contractor shall inform the Architect whe

employmentof the Nominated


Contractor under clause 7.1-2o
instruction referredto in clause
Contractorshall confirm thatth
has been determined;then

a6 .3 if the Contractor informs at the employment of the


NominatedSub-Contra e Architect shall makesuch
ith clause 35 as may be
executethe work and to
work executed by or any

ator orthe administrativereceiverof the NominatedSub-

ordancewith the Companies Act 1985 orthe InsolvencyAct 1986 or any


endment or re-enactmentthereof as the case may be

he reasonablesatisfactionof the Contractor and the Architect, preparedand


ontinuetocarry outthe relevant NominatedSub-Contractand to meet the
sthereunder, the Architect may withhold his consent. Where continuation

Contractor unlessthe Employerand the Contractor otherwise agree.

ofthe NominatedSub-Contractor has been given and the Contractor has


determinedthat employmentor where, under clause 7.2.3 of the Conditions
NSC/C, the employment of the NominatedSub-Contractorhas been automatically
determinedthe following shall apply.The Architect shall make such further
nomination of a sub-contractorin accordance with clause 35 as may be necessaryto
supplyandfixthematerialsorgoodsortoexecutetheworkandtomakegoodorre-

80 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


~~

35-24 -7 -3 continued

supply or re-executeas necessary any work executed by or any materialsor goods


suppliedby the NominatedSub-Contractor whoseemploymenthas been
determinedwhich were not in accordancewith the relevant NominatedSub-
contract.

-7 -4 Where clause 35.24.4 applies the Architect shall make such further nominationof a
sub-contractorin accordancewith clause35 as may be necessary to supply and fix
the materialsor goods or to execute the work and to make good or re-supplyor
re-executeas necessary any work executed by or any materialsor goods supplied
by the NominatedSub-Contractorwhose employment ha
which were not in accordance with the relevantNominate

35-24 *8 -1 Where clause35-24.3applies the A


sub-contractorin accordance with
the materialsor goods or to execut
execute as necessary a
the NominatedSub-Co
not in accordancewith the relevantNom

-8 -2 Where elause35-24-5a r nominationof a


subcontractor in accordancewithcl
work to be re-executed referredto in

Sub-Contract resultingfrom such furt r clause 35.24.6.3 or


35.24.7.3 or 35-24-7.4sha
Certificatesand addedto
any extra amount, payab

ted Sub-Contract, and where


e bythe Employer, resulting
e after such amount is certified

due to the Contractorunderthis


ctor bythe Employerasadebt.

24.8.2 within a reasonabletime, having


ligationto make such further nomination

RMlNATlON OF EMPLOYMENT OF NOMINATED


S INSTRUCTIONS

ine any NominatedSub-Contract by virtue of any right to


e entitledwithout an instructionfrom the Architect so to do.

minatedSub-Contractor is determined underclauses


ons NSC/C, the Architect shall providethe Contractorwiththe
th the direction in an Interim Certificate to enable the Contractorto
ause 7.5.2 of ConditionsNSC/C: namelythe amount of expenses properly
the Employerand the amount of direct loss and/or damage causedto the
the determinationof the employmentof the NominatedSub-Contractor;
3.1, issue an InterimCertificatewhich certifiesthe
rgoods and materialssupplied by the NominatedSub-
o the extent that such value has not been includedin previousInterim

NominatedSub-Contractor is determined underclause


ause7.8of those Conditionsapplies, the Architect shall,
pursuantto clause 35.134. issue an InterimCertificate which certifiesthe value of any
work executed or goods and materialssupplied bythe NominatedSub-contractor to the
extentthat such value has not been includedin previousInterimCertificates.

P With 98 19/03) @The Joint Contracts Tribunal Limited 2003 81

~ ~~
Nominated Suppliers

Definition of a 36.1 a1 Inthe Conditions'Nominated Supplier' means a suppliertothe Contractorwho is


Nominated nominatedby the Architect in one ofthe following waysto supply materialsorgoods
Supplier
which areto befixed bythecontractor:

where a prime cost sum is includedinthe Contract Bills in respect of those


materialsor goods and the supplier is either named inthe
subsequently named bythe Architect in an instructioniss

where a provisionalsum is includedin the Contract Bill


the Architect in regardto the expenditureof such su
goods is madethe subject of a primecost sum and t
Architect in that instructionor in an instructioni

where a provisionalsum is includedin the C


the Architect in regardto the expenditureof

wherethe Architect requi


Variation and specifies m
referredto in clause 36.1-

olesuppliershall bedeemedto

36-1 -2 In the Condition pplier'shall not applyto a supplier of


ntract Billsto befixed by the Contractor
fa primecost sum in the ContractBills,
ed in the Contract Bills or thatthere is a
inclause36.1.1-3.

Architect's 36-2 the purpose of nominatinga supplier for any


instructions primecost sum is includedinthe ContractBills or

Ascertainment of 36.3 'properlychargeableto the Employer


coststo be set e Architect'shall includethe total
againstprime cost
sum Is or goods less any discount other
rlyso chargeable tothe Employer

ananyvalueaddedtaxwhichistreated,oriscapableof being
as inputtax bythe Contractor)or duty not otherwiserecoverableunderthis
is payable under or by virtue of any Act of
appropriation, processing, alteration,
or use ofthe materialsor goodsto be supp1ied;and

and deliveryafter allowingfor any

in full within 30 days of the end of the month during which delivery is made.

obtainingthe materialsorgoodsfrom the NominatedSupplier such expense shall be


addedto the Contract Sum.

82 @The Joint Contracts Tribunal Limited 2003 P With 98 19/03)


~~ ~~~

Salecontract 36.4 Save wherethe Architect and the Contractor shall otherwiseagree, the Architect shall only
provisions- nominateas a supplier a person who will enter into a contract of sale with the Contractor
Architect's rightto
nominate supplier which provides, inter alia:

36.4 -1 that the materialsor goodsto be suppliedshall be of the quality and standardspecified
providedthatwhereand to the extentthat approvalof the quality of materialsor of the
standardsofworkmanshipis a matter for the opinionof the Architect such quality and
standardsshallbe tothe reasonablesatisfactionofthe Architect;

36.4 -2 that the NominatedSupplier shall make good by replacement or otherwiseany defects
in the materialsor goods suppliedwhich appear upto and includingthe last day of the

*2 -1 where the materialsor goods have been used or fixed


that reasonableexamination by the Contractor ought
usingorfixing;

-2 a 2 such defects are due solely to defectivewor


or goods supplied and shall not have been c

responsibleor by any other personfor who


responsible;

36.4 -3
completed in accordanc reed between the
Contractorand the Nom nt agreed, the following
groundson which that p

force majeure; or

trike or lock-out; or

reasonably close to the date

36.4 -4
tractor makespaymentinfullwithin30daysoftheendofthe

uppliershall not be obligedto make any deliveryof materialsor


nywhich may have been paidfor in full less only any discountforcash)
ination (for any reason)of the Contractor's employmentunderthis

harge by the Contractorin respect of payments for materialsor goods


the NominatedSupplier shall be effected within 30 days of the end of the
g which deliveryis made less only a discountfor cash of 5 percent if so

rials or goods shall pass to the Contractorupon deliveryby


or to the order of the Contractor, whether or not payment
has been made infull;

ifferencebetween the Contractor and the NominatedSupplier is


referredto arbitrationthe provisionsof clause 41B shall apply;

P With 98 19/03) @The Joint Contracts Tribunal Limited 2003 83


~

36.4 -9 that no provisionin the contract of sale shall override, modify or affect in any way
whatsoevertheprovisions in thecontractof sale which are includedthereinto give
effect to clauses 36-44 to 36.4-9inclusive.

Contract of sale - 36.5 -1 Subject to clauses 36-5.2and 36.5.3, where the said contract of sale betweenthe
restriction, Contractor and the NominatedSupplier in any way restricts, limits or excludes the
limitationor
exclusion of liability ofthe NominatedSuppliertothe Contractor in respect of materialsor goods
liability supplied or to be supplied, and the Architect has specificallyapproved in writing the
said restrictions, limitationsor exclusions, the liability of the Contractorto the
Employerin respectof the said materialsor goods shall be restricted, limited or
excludedto the same extent.

36.5 -2 The Contractor shall not be obligedto enter into a


Supplieruntil the Architect has specifically
limitationsor exclusions.

36.5 -3 Nothing in clause 36.5 shall be construed


supplier otherwisethan in accordance

84 @The Joint Contracts Tribunal Limited 2003 P With 98 19/03)


Part 3: Fluctuations

Choiceof 37 .1 Fluctuations shall bedealt with in accordancewith whicheverofthe following


fluctuation
provisions - entry
alternatives
in Appendix clause 38; or
clause 39 [nl;or
clause 40 ISSI

Appendix.

in respect of a Variation to such work.

Clause 38: Contribution, levy and tax fluctuations

Private versions'.

IttJ Notwithstandingthe provisionsofclause37.1 on


deemedincorporation the parties may nevertheless
wish to incorporatetheagreed alternativefluctuation
Alternatively, clause 40 should be usedwhere the provisions in the executedContract.
parties have agreedthatfluctuationsshall bedealtwith
by adjustmentof the ContractSum underthePrice
Adjustment Formulae for BuildingContracts.
lsslClause 40is usedwhere the parties have agreed that
fluctuations shall be dealt with by adjustmentof the
Contract Sum underthe PriceAdjustment Formulaefor
BuildingContracts.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 85

~
Part 4: Settlement of disputes adjudication - -
-
arbitration legal proceedings

41A Adjudication Iuu.11

Application of 41A-1 Clause 41Aapplieswhere, pursuantto article 5, either Party refers any dispute or difference
clause41A arising underthis Contractto adjudication.

ldentityof 41A-2 The Adjudicator to decidethe dispute or differenceshall be either


Adjudicator Partiesor, on the application of either Party, an individualto be

41A.2 -2 where either Party has given notice of his intenti


adjudicationthen

- any agreement bythe Part


with the object of securing
differenceto, the Adjudica
refer (see clause 4 lA.4. I);

- any applicationto the nom ectof securingthe


appointmentof, and the re to, the Adjudicator
within 7 days of the date of

icator or upon receipt bythe


catorthe Partiesshall

Deathof leforsomeothercauseand isthus


Adjudicator - redto himthen eitherthe Partiesmay
inabilityto
adjudicate

ion Agreement with the agreed or nominated

Disputeor
difference - arty of his intention to refer
notice of intention
to refer to adjudication. If an Adjudicator
adjudication - Partygiving the notice shall
referral

ought and any materialhe wishes the Adjudicatorto consider.The referral and
panying documentationshall be copiedsimultaneously to the other Party.

[wlThe nominators named inthe Appendix have


agreedwith the JCTthattheywill comply with the
ractice Note 28 'Mediation on a Building Contractor requirements of clause 41Aon the nominationof an
adjudicator includingthe requirement in clause 41A.2.2
forthe nomination to be madewiththeobject of
Iuu.1I The time periodsgenerally specifiedinthis clause securing the appointment of, andthe referralof the
arethosedefinedby statute. Wherethenatureofthe disputeordifference to,the Adjudicatorwithin 7 daysof
disputeortheworkconcernedmay haveany significant thedateofthenoticeof intentiontorefer;andwillonly
effect uponthe progressorcostoftha Workssuchas nominateadjudicatorswho will enter into the 'JCT
works relatingto the primary structural elementsthe AdjudicationAgreement'.
Adjudicator should consider an acceleratedtime table
for the adjudication procedures: see JCT Practice Note 2 Iwwl The JCTAdjudication Agreement isavailablefrom
(Series2): Adjudication underJCT Forms. the retailersof JCTForms.
Aversionofthis Agreemantisalsoevailablaforuseif
the Partieshave namedanAdjudicator in their contract.

86 @The Joint Contracts Tribunal Limited 2003 P With 98 (9D3)


41A.4 -2 The referral by a Party with its accompanyingdocumentationto the Adjudicator and the
copies thereof to be providedto the other Party shall be given by actual delivery or by
FAXor by special delivery or recordeddelivery. If given by FAX then, for record
purposes, the referral and its accompanyingdocumentation must forthwith besent by
first class post or given by actual delivery. If sent by special delivery or recorded delivery
the referraland its accompanyingdocumentation shall, subjectto proof to the contrary,
be deemedto have been received48 hours after the date of posting subjectto the
exclusion of Sundaysand any Public Holiday.

Conductofthe 41A.5 -1 The Adjudicator shall immediatelyupon receiptofthe referral and its accompanying
adjudication documentation confirm the date of that receiptto the Parties.

41A-5 a 2

a written statementof the contentions on which he reliesan


Adjudicator to consider.

41A.5 -3

RegenerationAct 1996andnot as an expert or an


forthwith send that decision in writing to the Parti

been made a longer periodthan 28 days


Adjudicatorwithin which to reach his de

41A-5 -4 The Adjudicator shall not be obliged to

41A-5 -5 d set his own procedure;

as he considers necessary in

-5

-5 and revisingany certificate, opinion,


or made underthis Contract as if no
nt or notice had been issued, given or

*5
ocumentation or in any written statement provided
Its of any tests that have been made or of any

*5 t tests or additionaltests orto open up work or

*5 e Works or any workshop where work is being or has been

as he considers necessaryfrom any employee or


obtaining information from an
prior noticeto that Party;

and advice as he considers necessaryon


giving prior noticeto the Partiestogether
n
egard to any term of this Contract relating to the payment of interest,
the circumstances inwhich orthe periodfor which a simple rate of interest
shalbe paid.

Any failure byeither Partyto enter into the JCTAdjudicationAgreement orto comply
with any requirementof the Adjudicator under clause 41A.5.5 or with any provision in or
requirementunder clause 41Ashall not invalidatethe decision of the Adjudicator.

41A.5 -7 The Partiesshall rneettheir own costs of the adjudication except that the Adjudicator
may direct as to who should pay the cost of any test or opening up if required pursuantto
clause 41A-5.5.4.

P With 98 (9B3) @The Joint Contracts Tribunal Limited 2003

~ ~~ ~~ ~ ~-~ ~ -
41A.5 -8 Where any dispute or differencearises under clause 8.4.4 as to whether an instruction
issuedthereunder is reasonablein all thecircumstancesthe following provisions shall
apply:

.8 -1 The Adjudicator to decide such dispute or differenceshall (wherepracticable)be an


individual with appropriateexpertise and experience in the specialistarea or
discipline relevantto the instruction or issue in dispute.

-8 -2 Where the Adjudicator does not havethe appropriate expertise and experience
referredto in clause41A.5.8-1 abovethe Adjudicator shall appoint an independent
expert with such relevantexpertiseand experienceto advise and report in writing
e all the
on whether or not any instruction issued u n d e r c l a u s e 8 - 4 . 4 ~ a b lin
circumstances.

-8 .4 Notwithstandingthe provisionsof clause 4

s as soon as
practicable.

Adjudicator'sfee is fee and reasonable


and reasonable
expenses -
payment
proportions.

41A.6 -2 ThePartie djudicatorfor his feeand for all


rsuantto the adjudication.

Effectof 41A-7 -1 The decision o


Adjudicator's
decision
de afterthedecision of the Adjudicator has

41A.7 -2 Thepartie

41A.7 -3 lfeith ith thedecision ofthe Adjudicatortheother Partyshall


to secure such compliance pendingany final
e or differencepursuanttoclause 41A.7.1.

Immunity for anything done or omitted in the dischargeor purported


as Adjudicator unlessthe act or omission is in bad faith and this
similarly extendto any employee or agent of the Adjudicator.

n\ Arbitra 'on

e 41B to a Rule or Rules is a referenceto the JCT 1998editionof the


stry ModelArbitration Rules (CIMAR)current at the Base Date.

nt to article7Aeither Party requiresa dispute or differenceto be referred


n then that Party shall serve on the other Partya notice of arbitrationto such
ance with Rule2.1 which states:

"Arbitral proceedingsare begun in respectof a dispute when one party serves on


the other a written notice of arbitration identifying the dispute and requiring him to
agree to the appointment of an arbitrator";

Footnote I n l T h e arbitration or legal proceedingsare not an


appealagainstthedecisionofthe Adjudicator but area
considerationof thedisputeor differenceas if no
decision had been made by an Adjudicator.

88 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


418.1 -1 continued

and an arbitratorshall be an individualagreed bythe Partiesorappointedby the person


named in the Appendix in accordancewith Rule 2.3 which states:

"Ifthe partiesfailtoagreeonthe nameofanarbitratorwithin14days(oranyagreed


extension)after:
(i) the notice of arbitrationisserved, or
(ii) a previouslyappointedarbitrator ceasesto holdoffice for any reason,
either party may applyfor the appointmentof an arbitrator to the person so
empowered."

By Rule 2.5:

"the arbitrator's appointmenttakes effect upon his ag


appointment under Rule 2.3, whether or not histerms

41B-1 -2 Where two or more related arbitral proceedings in r


separate arbitrationagreements, Rules 2.6,2.7 and

41B.1 -3 After an arbitrator


arbitrationto the o
under article7Ato
thereto.

41B.2 Subjecttotheprovisionsof artic I,without prejudice


to the generalityof his powers, h
reflectsthe true agreement made surements and/or
valuationsas may in his opinion bed the rights of the Parties
and to ascertain and award any su bjectof or includedin
any certificateand to open up, rev
requirementor noticeand to det
him in the same mannepqif no s cision, requirementor notice
had been given.

41B-3 Subjecttoclause l41B.4the


lahQ
s*v be final and binding on the Parties.

41B-4 The Parties here and S. 69(2)(a)of the ArbitrationAct 1996


arty and to the Arbitrator):

418.4 .I apply to the c yquestion of lawarisingin thecourseofthe

n of law arising out of an award made in an arbitration

ation Act 1996or any amendment thereof shall applyto any


act whereverthe same, or any part of it, shall beconducted. 1w1

with the JCT 1998edition ofthe


I Arbitration Rules (CIMAR)current at the Base Date. Provided
e Rulessocurrenthave been issued bythe JCTafterthe Base
to the Arbitrator, state that theywish the
e Rulesas so amended.

applies any dispute or difference shall be determinedby legal proceedings

Footnote [w]It shouldbe notedthatthe provisionsofthe Committeewhich contain Scots proper law
Arbitration Act 1996do notextendtoScotland.Where adjudicationand arbitration provisionsare the
thesiteoftheWorksissituatedinScotlandthenthe appropriatedocuments.TheSBCC issuesguidancein
forms issued bytheScottishBuildingContract this respect.

P With 98 f9/03) @The Joint Contracts Tribunal Limited 2003 89


Part 5: Performance Specified Work [ z z ~

Meaningof 42.1 The term 'Performance SpecifiedWork' means work


Performance
SpecifiedWork
42.1 -1 identified in the Appendix, and

42.1 -2 which is to be provided by the Contractor, and

42.1 a3 for which certain requirements have been predeterminedan


Contract Drawings, and

42.1 -4 in respect ofwhich the performancewhich the E


which the Contractor, bythis Contract and subje
achieve has been stated in the Contract Bills and

such PerformanceSpecifiedWork

Contractots 42.2 Beforecarrying out any Performan


Statement Architectwith a document or set of
'Contractor's Statement'. Beforeso p
such Statementtothe Pla
as may have been necess the PlanningSupervisor.
Subject to the Conditions rmanceSpecifiedWork in

Contentsof 42.3 The Contractor


Contractor's
Statement

Architect on the clude information in drawn or


scheduledform

uses 5.4.1 and 5.4.2.

Timefor 42.4 The Contractor' rovidedto the Architect:


Contractor's
Statement

tefor its provision given in the instruction bythe Architect on the


isional sum for PerformanceSpecifiedWork.

Ibe providedat a reasonabletime before the Contractor


rmance SpecifiedWork.

Architect's notice s after receipt ofthe Contractor's Statementthe Architect may, if he is of the
to amend deficient in form and/or detail adequately to explainthe
Contractoh
Statement executionofthe PerformanceSpecifiedWork, by notice in
to amend such Statement so that it is in the opinion of the
of the Statement as so amended shall be providedto the
ether or not an amendment is required by the Architect, the Contractor is
accordance with the Conditionsfor any deficiency in such Statementand for
ce SpecifiedWork to which such Statement refers.

If the Architect shall find anything in the Contractor's Statement which appearsto the
Architect to be a deficiencywhich would adversely affectthe performance required by the
Employerfrom the relevant PerformanceSpecifiedWork, he shall immediately give noticeto
the Contractor specifying the deficiency. Whether or not a notice is given bythe Architect, the
Contractor is responsiblein accordancewith the Conditionsfor the PerformanceSpecified
Work.

Footnote [U] See PracticeNote 25'Performance SpecifiedWork'


paragraphs 2~6to2~8foradescriptionofworkwhich is
not to be treated as PerformanceSpecifiedWork.

90 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


~ ~~~
~~

Definition of 42.7 A provisionalsum for PerformanceSpecifiedWork means a sum provided in the Contract
provisionalsum Billsfor PerformanceSpecifiedWorkwhere the following information has been provided in
for Performance
specifiedWork the Contract Bills:

42.7 -1 the performancewhich the Employer requiresfrom such work;

42.7 -2 the location of such PerformanceSpecifiedWork in the building;

42.7 -3 information relatingthereto sufficientto have enabledthe Contractorto have made


due allowancein programmingfor the execution of such PerformanceSpecifiedWork
and for pricing all preliminary items relevantto such PerformanceSpecifiedWork.

instructionsofthe 42-8 No instruction of the Architect pursuanttoclause 13-3-1on the expe


Architecton other sums includedin the Contract Bills shall require Performance
provisionalsums
instructionon the expenditureof a provisionalsum included in
PerformanceSpecifiedWork.

Preparationof
Contract Bills

Provisionalsum
for Performance
SpecifiedWork -
errors or sum for PerformanceSpecifiedWork such ed so that it does
omissionsin provide such information;and any such CO
ContractBills

Variations in 42.11 Subjecttoclause 42.12theArchitec rclause 13.2 requiring a


respectof Variation to PerformanceSpecified
Performance
SpecifiedWork

Agreementfor 42.12 No instruction ofthe Architect U


additional the Contractor of
Performance
SpecifiedWork

Analysis
ontractor shall provide such an
d to do so by the Architect.

integration of
Performance ons necessaryfortheintegration of such
SpecifiedWork
the Works. The Contractorshall, subjectto
clause 42.15, com

Compliancewith ith any instruction of the Architect


Architect's pecifiedWork, he shall within 7 days of
instructions-
Contractofs n writingtothe Architectsuch injurious
noticeof injurious
affection
nreasonably delayed or withheld.

Delayby
Contractorin
providingthe
Contractofs re and to the extent thatthe cause of the progressof the Works having been
Statement d or suspendedis thatthe Architect has not receivedthe Contractor's
e time referredto in clause 42.4or any amendmentto the Contractor's
uant to clause 42.5.
n
or shall exercise reasonableskill and care in the provision of Performance
ork providedthat:

2.17 shall not beconstruedsoasto affecttheobligationsoftheContractor


underthis Contract in regardto the supply of workmanship, materials and goods;

in this Contract shall operate as a guaranteeof fitness for purposeof the


nce Specified Work.

42.17 -2 The Contractor'sobligationunderclause 42.17.1 shall in no way be modified by any


service in respectof any PerformanceSpecifiedWork which he has obtained from
others and, in particular, the Contractor shall be responsiblefor any such service as if
such services had been undertaken bythe Contractor himself.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 91


Nomination 42-18 PerformanceSpecifiedWork pursuantto clause 42 shall not be provided by a Nominated
excluded Sub-Contractorunder a Nominated Sub-Contract or by a Nominated Supplier under a
contract of sale to which clause 36 refers.

92 @The Joint Contracts Tribunal Limited 2003 P With 98 19/03)

~
~~ -- ~~ ~~ ~ ~

Code of Practice: referred to in clause 8-4-4

1 This is the Code of Practicereferredto in clause8-4.4. The purposeof the Code is to help in the
fair and reasonableoperation of the requirementsof clause8.4-4.

2 The Architect and the Contractor should endeavourto agree the amount and method of
opening up or testing but in any case in issuing his instructions
Architect is requiredto considerthe following criteria:

the need in the event of non-complianceto demonstrate at n


either that it is unique and not likely to occur in similar elem
alternativelythe extent of any similar noncompliance in th
constructed or still to be constructed;

failure ofworkmanship andor materialssuchtha


must take place; or where the non-complianceis i

testing the extent ofwhich must depend U

the significance of the non-compliance


it has occurred;

theconsequenceof any similar of the building, its effect


on users, adjoining property, th

the level and stan e Works by the Contractor;

the relevant reco relevantof any sub-contractor


resultingfrom the supe edto in paragraph2.5above or
otherwise;
/7\\
bya responsiblebodywhich are

nW
the r son forthe n-comdiancewhen this has been established:

Contractor has obtained in respect of the non-complying

sive testing in establishingwhether any similar non-

available,the time requiredfor and the consequential

s of the Contractor;

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 93


Appendix

Clause etc. Subject

Fourth recital ConstructionIndustry Scheme (CIS) Employerat the Base Date


and31 *is a 'contractoffis not a 'contractor'

Fifth recital CDM Regulations

Articles 7A and 78 Disputeor difference - settlement of


41B disputes
41C

1*3 Base Date

1e 3 Datefor Completion

1.1 1 Electronicdata interchange tal Provisionsfor EDI

reementto which the

e EuropeanModel EDI Agreement

15.2 Clause 1AoftheVATAgreement


*applies/does not apply 1x1

17.2

19-1-2 Clause 19.1.2


*applies/does not apply

r
21-1.1 L

Insurance
*may be required/is not required

Amount of indemnity for any one


occurrenceor series of occurrencesarising
out of one event

f Ieeal

Footnotes w 'Delete as applicable. laaal Iftheindemnityistobeforanaggregateamount


and not forany oneoccurrenceorseriesof occurrences
IxlClause 1AcanonIyapplywheretheContractoris the entryshouldmake thisclear.
satisfiedatthedatetheContract isenteredintothat his
outputtaxonallsuppliestotheEmployerunderthe
Contractwillbeateithera positiveorazerorateoftax.

This footnote repeats footnoteIxl forclause 152.

@The Joint Contracts Tribune1 Limited 2003


~~

Clause etc. Subject

22.1 Insurance of the Works - alternative *Clause 22NClause 22B/Clause 22C applies
clauses (Seefootnote Icclt o clause 22)

*22A, 22B-1.22C-2 Percentageto cover professional fees

22A.3.1 Annual renewal date of insurance as


supplied by Contractor

22D Insurancefor Employer's loss of liquidated Insurance


damages - clause 25.4-3 *may be requiredh

-4K-
220.2 Period of time

22FC.1 Joint Fire Code

A applies theseentries are


tion supplied bythe

22FC.5 any, of compliance with

23.1.1 Date of Possession

23*1-2,25-4.13,26.1 Clause23.1.2
*applies/does not apply

Period of deferment if it is to be less than 6


weeks is

24.2 at the rate of

f Per

28.2-2

28A.1.1.1 to 28A-

28A-1-

Footnote 'Delete as applicable.

P With 98 19/03) @The Joint Contracts Tribunal Limited 2003 95


Clauseetc. Subject

30.1-1.6 Advance payment Clause30-1-1-6


*applies/does not apply

If applicable:
the advance paymentwill be
**r I

% of the Contract Sum

30-1.3 Datesof issue of Int


(if none stated, Inter
issued at intervalsn
one month up to th
d thereafteron the same date in each
thereafterand th monthadjustedto the nearest working
is to be issued wi day in that monthlaaa.11

30-2-1-1 Gross valuation A pricedActivity Schedule


*is/is not attached to this Appendix

30.3.1 *For uniquelyidentified listed itemsa bond


as referredto in clause 30-3.1in respect of
paymentfor such items is requiredfor

*Delete if no bond is required

30-3-2 *For listed items that are not uniquely


identifieda bond as referredto in clause
30.3-2 in respect of paymentforsuch items
is requiredfor

*Delete if clause 30.3.2 does not apply

Footnotes , *Deleteasapplicable. [aaal1Thefirstdateshouldnotbemorethanonemonth


afterthe Dateof Possession.Where it is intendedthat
**Insert either a money amount ora percentagefigure InterimCertificatesbe issuedonthe last day ofeach
and deletethe other alternative. monthconsider inserting"the lastdayof-
linsefirnonthlandthereafterthelast day in each month
adjustedto thenearestworkingday in the month:

96 @The Joint Contracts Tribunal Limited 2003 P With 98 19/03]


Clause etc. Subject

30.4.1.1 RetentionPercentage
(if less than 5 percent)Ibbbl

30-4A Contractor's bond in lieuof Retention Clause30-4A


+applies/doesnot apply

30.4A.2 If clause 30.4A applies:

clause 2 of the bond


maximuma g g r e g a t a

ffl
clause G(iii1 oft bond
the expiry date is \ \

35.2 Work reserved for NominatedSub-


Contractorsfor whichthe contractor
desires to tender

37 Fluctuations:
(if alternativerequiredis not shownclause
38shall apply)

38.7 or 39.8 Percentageaddition

-
40-1 1-1 FormulaRules

20

'Part I/Part11 Idddl


of Section2 of the FormulaRules is to apply

41A-2 Adjudication - no Presidentor a Vice-Presidentor


(if no nominatoris Chairman or aVice-Chairman:
shall bethe Presid "Royal Instituteof BritishArchitects
"Royal Institutionof Chartered Surveyors
"Construction Confederation
"National SpecialistContractorsCouncil

"Deleteall butone

418.1 Presidentor a Vice-?resident:


"Royal Instituteof BritishArchitects
"Royal Institutionof Chartered Surveyors
"Chartered Instituteof Arbitrators

"Delete all but one

Identifybelow or on a separate sheet each


item of PerformanceSpecifiedWork to be
providedby the Contractorandinsertthe
relevantreference inthe Contract Bills in1

Footnotes bzLlT&e;:;;gwill be 5 per cent unlessa lower [zzl See PracticeNote25'Performance SpecifiedWork'
paragraphs2.6 to24fora descriptionofworkwhich is
notto betreatedasPerformanceSpecifiedWork.
Icccl Delete alternatives not used.
ThisfootnoterepeetsftnoteIztl forclause 42.
IdddlStrikeoutaccordingtowhichmethod offormula
adiustment(Part1- WorkCategoly Methodor
-
Part ll Work Group Method)has been stated in the
documentsissuedto tenderers.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 97


Annex 1 to Appendix: Terms of Bonds
agreed by the JCT and the British Bankers' Association

See clause30.1.1-6
"Advance PaymentBond", and

clause30-3:
"Bond in respect of paymentfor off-site materialsand/or goods"

Advance Payment Bond

1 THE partiesto this Bondare:

whose registeredoffice is at

('the Surety'), and

2 The Employera ('the Contractor')

r building works ('the Works') at

o pay the Contractorthe sum of [ . I as an advance

toyershall in making any demand providetotheSuretyacompleted notice of


in the form oftheschedule attached heretowhich shall be acceptedas
evidencefor all purposes underthis Bond.The signatures on any such
ust be authenticatedbythe Employer's bankers.

c) The Surety shall within 5 Business Daysafter receivingthe demand payto the Employer
the sum so demanded. 'Business Day' means the day (otherthan a Saturdayor a
Sunday)on which commercial banks are open for business in London.

4 Payments due under this Bond shall be made notwithstandingany dispute betweenthe
Employerand the Contractor and whether or notthe Employerand the Contractorare or
might be under any liabilityone to the other. Paymentby the Surety under this Bondshall be
deemed a valid paymentfor all purposesofthis Bond and shall dischargethesuretyfrom
liability to the extent of such payment.

98 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


5 The Surety consents and agreesthatthe following actions by the Employer may be made
and done without noticeto or consent of the Suretyandwithout in any way affecting
changingor releasingthe Suretyfrom its obligations underthis Bond and the liabilityof the
Surety hereunder shall not in anyway be affected hereby.Theactions are:

(a) waiver by the Employer of any of the terms, provisions, conditions, obligations and
agreementsof the Contractor or any failure to make demand uponortake action against
the Contractor;

(b) any modificationor changes to the Contract; and/or

6 The Surety's maximumaggregate liability underthis Bond wh


payment ofthe Advance Paymentbythe Employertothe Cont
[ 1which sum shall be reduced by the am
the Contractor to the Employer as advised by the Emp

7 The obligationsof the Surety and underthis Bond sh ever is the earliest
Of

(a) the date on which the Advance Payme


Surety bythe Employer;

(b) thedateon which the Advance of is repaidto the Employer


mployer)or bythe Surety;
and

(c) [longstopdare

and any claims here


earliest date.

9 Notwithstanding ofthis Bond nothing in this Bondconfers or purports


terms on any personwho is not a party to it.

reof this Bond has been executed as a Deedby the Surety and deliveredon

for and on behalf of the Surety:

EXECUTEDas a Deed by:


I
for and on behalf ofthe Employer:

Date:
I P With 98 19/03} @The Joint Contracts Tribunal Limited 2003 99
Schedule to Advance Payment Bond
(clause 3fbl of the Bond)

Notice of Demand

Date of Notice:

The Bond has come into effect.

We herebydemand paymentof the sum of

f
which does notexceed theamou
the date of this notice.

Address for payment

ho are authorised by the Employer to act for

Official Position:

CY
The abovesignatures to be authenticatedby the Employer's bankers

100 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/031

- -
~~
Bond in respect of payment for off-site
materials and/or goods

THE partiesto this Bond are:

/
n
whose registeredoffice is at

('the Employer').
/ \

The Employerand ('the Contractor')

orks ('the Works')

e amountstated as due in InterimCertificates


by the Employer the value of those materialsor
usion in the Works which have been listed bythe

periodcommencingwith the transfer of the property in the items


they are deliveredto or adjacent to the Works; and

sively relateto the amount paidto the Contractorin respect of the


have not been deliveredto or adiacentto the Works.

shall in makingany demand provideto the Surety a Noticeof Demand inthe


heretowhich shall be acceptedas conclusiveevidence for all
signatureson any such demand must be authenticatedby the

5 BusinessDays after receivingthe demand payto the Employerthe


Day' meansthe day (otherthana Saturdayor a Sunday) on
hichcommercial banks are open for business in London.

PaymentsdueunderthisBondshall be made notwithstandingany dispute between the


Employerand the Contractor and whether or not the Employer and the Contractor are or
might be under any liabilityone tothe other. Payment bythe Surety underthis Bondshall be
deemed a valid paymentfor all purposesof this Bond and shall discharge the Suretyfrom
liabilityto the extent of such payment.

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 101


~~

7 The Surety consents and agrees that the following actions bythe Employer may be made
and donewithout notice to orconsentoftheSuretyandwithout in anyway affecting
changingor releasingthe Surety from its obligations under this Bond and the liability of the
Surety hereunder shall not in any way be affected hereby. The actions are:

(a) waiver by the Employerof any of the terms, provisions, conditions,obligationsand


agreements of the Contractor or any failure to make demand upon ortake actionagainst
the Contractor;

(b) any modificationorchangestotheContract;and/or

(c) the granting of an extension of time to the terms of


clause 9(b)below.

8 The Surety's maximumaggregate liability

9 The obligations ofthe Surety

(a) the date on which all the


certifiedin writing to the Surety

(b) [longstopdare to be given],

and any claims hereunder must be receivedm the Surw o r beforesuchearlier


date.

10 The Bond is not transferable orassi en consent of the Surety.


Such written consentwill not be U

11 Notwithstandinga Bondconfersor purports


toconferanyrightt personwho is not a partyto it.

12 This Bondshall be go accordancewith the laws of England and


Wales.

eof this Bond has been executed as a Deed by the Surety and deliveredon

for and on behalf of the Surety:

EXECUTEDas a Deed by:

for and on behalf of the Employer:

I 102 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


Schedule to Bond
(clause 4 of the Bond)

Notice of Demand

Date of Notice:

due in an Interim Certificate(s1forpay


the Employer but such listed items ha

Address for payment:

who are authorised by the Employerto act for

atures to be authenticatedby the Employer's bankers I

P Wirh 98 (9/03) @The Joint Contracts Tribunal Limited 2003 103

~~
Supplemental Provisions
(the VAT Agreement)

The following are the supplementalprovisions(theVAT Agreement) referredto in clause


15.1 of the Conditions:

Interimpayments 1 The Employershall pay to the Contractor in the manner hereinafterset out any tax properly
- additionofVAT chargeable by the Commissionerson the Contractoron the supply to the Employer of any
goods and services by the Contractor under this Contract.
under this Contract are supplies under a contract providin
supplieswithin the meaningof Regulation93 ofthevalue
any amendment or re-enactmentthereof.

Alternative 1, '1 Where it is stated in the Appendix pursuantto clause 15.2 of the
provisionsto this Agreement appliesclauses 1-1to 1.2.2 inclusive hereof sha
clauses1.1to 1-2-2
inclusive any notice issued under clause 1A-4hereof becomeseffec
to give the written notice required under clause 1A
1-3toEofthisAgreementremain infullforceande

1A.2

FinalCertificateare to be issued. If the rate

send to the Employer,with a copy tot


given in his written notice and that no

1A-3

the Commissioners t the rate given in the


aforesaidwritten no notice)shall be shown on

the Contractorto the


f certificates set out in clause

1A-4 ay give written noticeto the other, with a copy to the


edateofthe noticeclause1Ashall no longerapply.
s 1.1 to 1-2.2inclusivehereof shall apply in place of

Written 1.1
assessment by
Contractor

chargea e, at the relevanttime of supply under Regulation930f the Value


Added Ta egu ions 1995on the Contractor at

m x t e g o r y ( i ) )and

te ratesoftaxotherthanzero(Category (ii)).

hall also specify the rate or rates of tax which are chargeableon those
d in Category(ii),and shall statethe grounds on which he considers such
hargeable.

t of such written provisionalassessmenttheEmployer, unless he has


reasonablegrounds for objectionto that assessment, shall calculatethe amount of tax
due by applyingthe rate or ratesof tax specified bythe Contractorto the amount ofthe
assessed value of those supplies included in Category(ii)of such assessment, and
remit the calculated amount of such tax, together with the amount of the Certificate
issued by the Architect, to the Contractor within the period for payment of certificates
set out in clause30-1-1.1of the Conditions.

104 @The Joint Contracts Tribunal Limited 2003

~~
1-2 -2 If the Employerhas reasonablegrounds for objectionto the provisionalassessment he
shall within 3 working days of receipt of that assessment so notifythe Contractorin
writing setting out thosegrounds. The Contractor shallwithin 3 working days of receipt
of the written notificationof the Employerreply inwriting to the Employereitherthathe
withdrawsthe assessment in which case the Employer is releasedfrom his obligation
underclause 1.2-1of this Agreement orthat he confirmsthe assessment. lfthe
Contractorso confirmsthen the Contractor may treat any amount receivedfrom the
Employerin respect of the value which the Contractor has statedto be chargeable on
him at a rate or rates of tax otherthanzero as being inclusiveof tax and issuean
authenticatedreceiptunder clause 1.4 of this Agreement.

Written final 1.3 -1 Where clause 1A is operatedclause 1.3 only applies if no amo
-
statement VAT clause 1A-3has beenshown on the FinalCertificate issued by
liabilityof
-
Contractor issue of the Certificateof Completionof MakingGood Defe
recoveryfrom Conditionsthe Contractor shall as soon as hecanfinally
Employer final statementof the respective values of all supplies of
certificates have been orwill be issued which are chargea

-1 -1 azerorateoftax(Category(i))and

.I -2 any rate or rates of tax

and shall issuesuchfinal statement to the Employ

The Contractorshall also

issued.

oyershall, subject toclause3ofthis


applyingthe rate or rates of tax
s includedin Category (ii)of the
taxalready receivedbythe
all pay the balanceof such tax to the

1.3 .4 IftheEm mount oftaxspecifiedinthe final statement as


of taxcalculatedunderclause 1.3.3 ofthis
he Contractorwhoshall refundsuch excess to
the notification,together with a receipt under

Contractorto paid under certificatesofthe Architect and anytax properly


issuereceiptas
tax invoice

aining the particulars required under Regulation14of the


ny amendmentor re-enactmentthereof to be containedin a tax

sobligedto make paymentunder clause 1.2 or 1*3ofthisAgreement,


rclause24of the Conditionsto deduct any sum calculatedat the rate
om sumsdue or to become

use 1.2 or 1-3ofthisAgreement.

e Contractorwhen ascertainingthe respective values of any supplies of goods and


servicesforwhichcertificateshave been orwill be issued undertheConditions in orderto
preparethefinal statement referredto in clause 1-3ofthisAgreementshall disregardwhen
statingsuch values any deduction by the Employer of any sum calculatedatthe rate stated
inthe Appendix as liquidatedand ascertained damages under clause 24 of the Conditions.

P With 98 f9/03) @The Joint Contracts Tribunal Limited 2003 105


~

2.3 Where clause IAis operatedthe Employer shall pay the tax to which that clause refers
notwithstandingany deduction which the Employer may be empowered to make under
clause24 of the Conditions from the amountcertifiedby the Architect in an InterimCertificate
or from any balancecertifiedbythe Architect as due to the Contractor under the Final
Certificate.

Employers' right 3.1 If the Employer disagrees with the final statement issued by the Contractor underclause 1.3
to challenge tax of this Agreement he may but before any payment or refund becomes due under clause
claimed by
Contractor 1.3.3 or 1.3.4 of this Agreement request the Contractor to obtain the decisionof the
Commissioners on the tax properly chargeable on the Contractor for all suppliesof goods
and services under this Contract and the Contractor shallforthwith requestthe
Commissionersforsuchdecision. lfthe Employer disagree
providedthe Employer indemnifiesand at the option of the
Contractor against all costs and other expenses, the Contractor
instructionsoftheEmployer makeallsuch appealsagainst

3.2 Where, before any appeal from the


amountofthetaxallegedtobecha
services under theconditions mus

obligation.

3.3
such decisionto
appeal)the Employer or II payor refundto the other
in accordancewith such overpaid, as the case may

Discharged 4 he Employer from the Contractor,


Employerfrom 1-3-4ofthis Agreement orwhere
liabiliito paytax
clause 1Aofthis
I tothe Contractor

accordancewith t any resultantpaymentor


refund underclau dischargedfromany

ontractor.under.thls Contractthe amount of any


.payment by the Employertothe Contractor or by the
Contractortuth

Awardsin dispute 5
procedures

ontractortothe Employer underthisContract or is an amount


w e e n so certifiedbut was not socertified, the provisionsof this
Agreem t shall so far as relevant and applicable apply to any such payments.

Arbitration a n Ttiepr tvisi sofarticle7Ashall


. notapplytoanymattersto bedealtwith underclause3of
provision
excluded

E m o l a Notw' andingany provisionsto the contraryelsewhere inthe Conditionsthe Employer

-1 the Employer can show that he requires such receipt tovalidate any claim for creditfor
tax paidor payable under this Agreementwhichthe Employer is entitledto maketo the
Commissioners, and .

106 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


7 -2 the Employer has

paidtax in accordance with the provisionalassessment of the Contractor under


clause 1 of this Agreement unless he has sustained a reasonable objection under
clause 1.2 of this Agreement; or

paid tax in accordancewith clause 1AofthisAgreement.

VAT on
determination

P With 98 (9/03) @The Joint Contracts Tribunal Limited 2003 107


Annex 2 to the Conditions:
Supplemental Provisionsfor EDI
(clausel-11)

The following are the Supplemental Provisions for EDI referredto in clause 1-11of the
Conditions.

1 The Partiesno later than when there is a bindingcontract betweenthe Employerand the
Contractor shall have entered intothe Electronic Data InterchangeAgreement identifiedin
the Appendix ('theEDIAgreem
underthisContract subject to thefollowing:

.1 except where expressly providedfor in these provisions


Agreement shall overrideor modifythe applicationor in

-2 thetypes and classes of co


Data') and the personsbetween whom the Data
Contract Documents or as subsequently agreed

-3 the Adopted ProtocolEDIMessage Standards echnical Annex*


are as stated in the Contract Documents or ass
the Parties;

- 4 where the Contract Docu nicationto which the


EDIAgreement applies to be in
accordancewith the EDIAgree shall not be valid unless in
writing in accordancewith

- 4 .I anydeterminationofth

.4 -2 any of his obligationsunder this

- 4 -3 the Final Certific

ures applicable underthisContracttothe

Parties amending the Conditionsor these provisions.

Contractto the resolutionof disputes or differences


concerning these provisionsor the exchange of any
dispute resolutionprovisionsin the EDI Agreement

Footnote The EDI AssociationStandard EDIAgreement refersto


an Adopted Protocoland User Manua1;theEuropean
ModelEDI Agreement refersto EDI Message Standards
and eTechnicel Annex. Deletewhichever is not
epplicable.

108 @The Joint Contracts Tribunal Limited 2003 P With 98 (9m3)


Annex 3 to the Conditions:
Bond in lieu of Retention

See Note 1 BOND dated the day of 20

1 By a buildingcontract ('the Contract') be

(hereinafter called the 'Contractor')

exercise his right under the Contract to deduct


Retentionfrom a rim Certificates providedthe Contractor hastaken
out this Bond inf

See Note 2 ployerin the maximum aggregate sum of

(figuresand words)

all, on a demandwhich complies with the requirements in clause 4, be

P With 98 (9#3) @The Joint Contracts Tribunal Limited 2003 109


4 Any demand by the Employer under clause 3shall:

(i) be inwriting addressedtotheSuretyatitsofficeat

refer to this Bond, and with the signature(s)therein authenticatedby the Employer's
bankers; and

(ii) state the amountof the Retentionthatwould have been held by the Employerat the date
of the demand had Retention been deductible; and

(iii)state the amount demanded, which shall not exceedthe amo


clause 4(ii), and identifyfor which one or moreof the follow
demanded:

(a) the costs actually incurredby the Employer by reas

accompanied by a statement by the Architec


Contractor has occurred;

he Contractoris due

ue and which certifies


thatthe Contractor hasfai contractualCompletion

usedto the Employer as a result of


actor bythe Employer;

e Contractor has been given 14days'written noticeof


hereunder by the Employer and that the
and that a copy of this notice has atthe same

See Note3 hall, for the purposesof this Bond but not further or otherwise, be
at the amount demanded is properlydue

gned or otherwisetransferredwith the benefit ofthis Bond, the


to assign or transfer this Bond only with the prior written consent
ent notto be unreasonablydelayed or withheld.

ce of a prior written demand made, shall be releasedfrom its liability


e earliest occurrence of either

(i) the date of issue undertheContract ofthe Certificate of Completionof MakingGood

(ii) satisfactionof a demand(s)uptothe maximumaggregate underthe Bond;or

See Note 4 (iii) (insertcalendardate).

110 @The Joint Contracts Tribunal Limited 2003 P With 98 (9/03)


7 Any demand made hereundermust be receivedby the Surety accompaniedbytha
documents as requiredby clause 4 aboveon or beforethe earliest occurrenceas stated
above, when this Bondwill terminate and become of nofurther effect whatsoever.

8 Notwithstandingany other provisions ofthis Bond nothing in this Bond confers or purports
to confer any rightto enforce any of its terms on any personwho is not a patty to it.

9 This Bondshall be governed and construedin accordance with the laws of Englandand
Wales.

IN WITNESS hereofthis B
the date below:

EXECUTEDas a Deed by:

for and on behalf ofthe Surety:

EXECUTED as a Deed by:

for and on behalf of the Emp

Date:

Oci\\v

Notes

TheseNotes will not 1 e British Bankers' Association and the Surety


appear on the Bond ibunal understandsthat a Bond which embodies
issued by the Surety. iscretion, available to Contractors where the
t o n the Standard Form of Building Contract
n, incorporating Amendments 1to ,the optional clause

be inserted here is the amount stated in the Appendixpursuantto clause 30-4A.2. It is


hata Suretywil1,atadditionalcosttotheContractor. andwhich may besubjecttoother
ety, provide for a greater sum than that stated in clause2 if, due to
een applicable, that amountwould have increased.The reduction by
aggregate sum at the date of issue of the next Interim Certificate after Practical
a similar reduction had Retention been applicable.

inclause4ofthewords "but notfurtherorotherwise"istomakeclearthatthe


uld not be prevented bythetermsofclause 4from alleging, undertheContract,that
honanyofthemattersstated inclause4(iii)(a)to(e).

Any demand by the Employer under clause 4 of this Bond must not exceedthe costs actually
incurred bytheEmployerandisnotto beinexcessoftheamountstated inclause4(ii).

4 TheSuretyrequiresan actualexpirydateor(ifear1ier)adatethatiscapableof being ascertainedon


the face of the Bond. Where this is not possible, alternative terms should be discussedwith the
Surety.

P With 98 (9/03) @TheJoint Contracts Tribunal Limited 2003 111

~~~
~

PrivateWith Quantities

This reprint incorporatesthe following amendments.

A Amendmentl.Junel999 7. aausezc
ConmuctlonlnQstrvScheme newcleuses22C.lAend22Q5
lclsl inserted
(incorporatedSeptember2000) 8. Clause2w:
clause22FC3 emended
clause22FC~4delated
1. Resireh clause22FCa5emended
Fourth recitalamended 9. Clause3DbA
2. &use30 clause304A.l amended
newclause30.4Ainserted 10. Clause31
3. a-31 clauses31~10end31~11 amended
redrafted footnote 1 ~ 2inserted
1
4. Appendix 11. clause35
entry on Fourthrecitalamended clause351emended
12. Appendhr
newemryonUFC5inserted

B Amdmanl2,JenueryZOOO
Sundryamendmenta
(incorporetedSeptember200) E

1. clsusel~l2
new cleuse inserted
2. clause30
clause30.1*3amended
3. ClausedlA
clause 41A.5.52 emended
newclause41A58 inserted
newfoomoteluwllinserted
4. Appendbc
entryon301.3 amended
newfootnotelwllinserted
entryon 41A.2emended

H AmendmenlS.JulyZOC3
Consbu*ion Skllla CertiRsatlon
sch0nle
(incorporatedSeptembar2003I

1. aeusee
cleuse81.4 renumberedasclause
newclause81~4
inserted
mendedfor'Joint Fire

3. Clause135
clauses 13533end 13564
4. Clause22.2
amended, end definitions inserted
for 'terrorism' end 'terrorism
cover'
5. clause22A
newclause22A.5 inserted
6. Clause22B
newclause228.4 inserted

112 @The Joint Contracts Tribunal Limited 2003 P With 98 (91031


For works which are to be carried out in Northern Ireland the Dated
,. Adaptation Schedule for use with this form of contract is
::. available from the Royal Society of Ulster Architects,
‘{I 2 Mount Charles, Belfast ET7 INZ. Standard Form of Building Contract
1998 Edition
Private With Quantities
incorporating Amendments
1: 1999 2:2000 3:200?

9
Published for the JCT by RI
1-3 Dufferin Street, Londo

Issued by The Joint Contracts Tribunal Limited

Members
Association of Consulting Engineers Limited
British Property Federation Limited
Construction Confederation
Local Government Association
National Specialist Contractors Council Limited
Royal Institute of British Architects
The Royal Institution of Chartered Surveyors
The Scottish Building Contract Committee
U

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