Which Contract - Choosing Appropriate Building Contract

RI BA
Publishing
Which Contract?
f Ì
vi H
riginal
Fourth Edition
Hugh Clamp, Stan
RIBA
Publishing
3
First Edition (1989) by Stanley Cox and Hugh Clamp
Second Edition (1999) by Stanley Cox and Hugh Clamp

Third Edition (2003) by Stanley Cox and Hugh Clamp
Fourth Edition (2007) by Sarah Lupton
Published by RIBA Publishing

15 Bonhill Street
London EC2P 2EA
ISBN-13 978
85946 237 9
Stock Code 58319
61L
The rights of Stanley Cox, Hugh Clamp and Sa
Lu pto
,
Desig
All rights reserved. No part of th publics i .nay be repi u ced, s

transmitted, in any form or by a mean , electronic, mechani I, phot
otherwise, without prior permissi p of th copyright o
British Library Catalogui
A catalogue record for
Publisher: Steven C
in
is
PO
avails
Data
e
from
Briti
Libra
ss
Commissioning Edit
Project Editor: Anna
T,Kompso
Millbank
Design and ty, iesettiA

Printed and ound by MP
omplet
cati
boo
revi s
pd by s
003.
le
F
ComW
Editi
Fou
of this boo which first appeared in 1989 and which was

e Second Edition was published in (1999) and the
eferred to are those believed to be current at the time
ents iri
rms of
riting:
hile
ake the
ould Iwa
,,missta ements made in
heck the accuracy of the information given in this book, readers

ether the Authors nor the Publisher accept any responsibility
isunde tandings arising from it.
madet
hecks.
i
Contents
Foreword
age 7
Introduction
Thinking about contracts
15
Establishing
Which procurement me
31
Which type of contract?
53
Which contract fo
61
Traditional procu
JCT
contract prgfil
truc on Contr
uil
GC/Works/ With
NEC Eng
st-Andard
Major Project Co
JCT Standard
23
ntrac
16
67
69
005
83
antitie
eering
96
Contract T
Traditiona
117
ilding
JCT
119
racts 2
JU
Reoal
107
andlMaAenanc
ontra
`t
130
(Commercial) 2006 Edition

(Third Edition 1998, 2003 Revision)
139
143
153
159
:C Engineering
LI
162
Aareerrientfor
168
ontra
s
172
of Con
179
Traditional procurement: consumer contracts
185
JCT
Agreement for Housing Grant Works HG(A) 2002 Edition
187
JCT
Building Contract for
194
JCT
Contract for Home Repairs and Maintenance
Home Owner/Occupier
200
Contents continued
Architecture and Surveying Institute Mini Form of Co `tract

and Mini Form of Contract (Home Improvement A ncies)
enera
Traditional procurement: measurement for

JCT
Standard Building Contract With Approxi
tities 2005
Conditions of Contract Measurement Ve ion Seve

(September 1999)
ICE
ICE
Conditions of Contract for Minor W
JCT
Measured Term Contract 2006 Edi
i~tion
13
itio`(200
227
10 Traditional procurement: cost p

JCT Standard Form
237
tract
itiori
239
Design and build procurem

Contr ;t 2005
JCT Design and Build

ICE
249
251
Design and Construct C nditi ns o Contract

Build
GC/Works/1 Two Sta
12 Management pr
JCT
urem
Works Contract
Standard Fo
JCT
JCT
nd 2 and 3
Contt
265
273
(1
(1999)
Des
of M
Standard For
ion (2001)
11
of Prime Cost
221
273
emertrrorms
279
ntr1998
281
998
trac
292
greeMent C/
JCT Trad
297
307
13 Partn
Framewo
partneringreements
313
A)
315
315
Fra
Par:`nering Option
dard Fo
rfi
318
act for Project Partnering PPC2000
321
335
347
349
Foreword
This is the fourth edition of the popu

that edition the book has increased Sid
formsth
in the number of standard

whereas this new edition inclu
new 2005 suite of JCT forms,. an
writing (the cut-off point
included. In addition the b
for example NEG and the Cl
The first three editio

Clamp, and much
is still relevant toda
developments and
chronology of
989. Since
uge growth
15 contracts,
ed to cover the
lished at the time of
opular ones are all
er publishing bodies,
by Stanley Cox and Hugh
ers has been retained, as it
been added to include recent

ocurement, together with a
contract.
Sarah Lupt
nal
Introduction
f standard
The last twenty-five years have seen

forms of contract available for use in th
range of forms currently availabl
development and refinement.
Conditions of Builder's Contrac
Builders Society. Subseque
ts. The wide
of invention,
first 'Heads of
BA with the London
tions of Contract in
ifty years, there was
his document has been
ew editions, its current
ndard Building Contract,
1895, intended for tradit

effectively only one standard
revised, expanded a
manifestation bein the 200
available in three v riants.
the Institut
for use on a r
Engineer u
andard form, the first available
measure men basil' The first edition of Keating on
rence to b( h the ICE and the JCT Conditions of
ad e r
the e
r Hu on's Building and Civil Engineering
legal corn entary on the interpretation of these
In 1945
t on
f-1
Constructio Contr'
Contract
d, to
provi
Contrac
forms.
ecb
follo
stry,
ng th
u
ing fro
,--r
in-
in
fl,
World War there were extensive changes in

an increased volume of construction, new
olo
and new m thods of working. From the 1960s alternative
re ent a
stand d forms began to appear. The JCT published the
act in 1967
d
e Agreement for Minor Building works in 1968,
ew forms in the 1980's; the Standard Form 'with contractor's
nd build procurement, the Intermediate Form of Building
form of Management Contract, and the Measured Term
es
L(1
((DD
,-4.
l0_
This upw
curv is reflected in the activity of other publishing organisations.
ng the p blic tion of its first edition of the Conditions of Contract in 1945, the
ICE wen on
publi a further three forms, including the New Engineering Contract
in 199 . FIDIC pu ished its first form in the 1950s, the Government published
GC/Works/1
3, and the ACA first published its form in 1982. The first edition
of Which Contract? in 1989 covered around X forms of contract.
The Latham Report (Constructing the Team, by Sir Michael Latham, HMSO (1994)) has
had a considerable effect on contract forms and procedures. This was a wide ranging
look at the industry as it then existed. It recommended better project strategy, more
-+,
Introduction
-'
integrated ways of working, fairer tendering, improved payme t pro duress

rapid resolving of disputes by adjudication. It stressed e plZns
of cl' nts the
force, the importance of a full brief, design quali to be
i
ere
Ion ide th
lowest price to determine best value, fair dealingtfo II partleVin an mosph
of
mutual cooperation, and the outlawing of unf it
d
ns. It laid
e fo
o
for new thinking about procurement, the pl ce of p neq, an he enefits f
long-term relationships.
i
.-+
The Egan Report (Rethinking Constructio, ,t

o
Coh uc n Tas Force
chaired by Sir John Egan, HMSO (199 , built on
o
poi
ra see by the
Latham Report, and took further the c f
rea
icu
it stressed
the need for improvements in con
sts,
on
truction m
edictability
concerning delivery, and a reductio in the
m
of tom, ding clef ts: It called for
the elimination of wastage through lea thinki
a n a re
i
he number of
site accidents. The idea of
er
rmanc me u re
nt indicators and
benchmarking as aids to ach ving plan d an onsis t
ro
ment, reflected a
changing climate of opinion on pr
ent.
fficiy.
l l
vii
two reports, together ith

rt II of t
srn
hts, Construction and
Regeneration Act 199
lowe as a dir t res It ofthe Latham Report, have
h
significantly affected rocur en
etho
and he to t of current contract forms.
The initiatives, org isatio rs an
u ications
at foll wed the Latham and Egan
reports are listed
the f owi p g ch no
, and dis
ssed further in Chapter 3.
.-+
-*,
.-t
These
In 1998 the Joint Con acts Tribunal ecam

body with a distinct legal persona, The
Joint Contra
ribu
L'
and a egiste db ness address. Its immediate concern
was to up ,lade and co oidate th d cumen previously published by the Joint
Contracts ibuna
ludin, the i-tegration o he changes required by the Housing
Grants A
a nd t
trod ced to ive eff ct to Latham's recommendations. This
resulted in t F- u blic ion of 1998 edit
of all its forms.
0QrCo
fl,
Oe five y rs N tween 999 and 2004 the 1CT published a further five new
near
o m s of u ntrac Three of these (the two contracts for Home
0 ner/ ccu r, an
for Repairs and Maintenance) took account of
e ontra
con simer protection legi ati
d were a response to the boom in the home
impro
ent mar
ey
e in nded for domestic work only. In addition the JCT
published a on- indin q Par nering Charter for a Single Project, and the suite of
documents for u
tion management procurement.
0rl-
.-+
.-+
fl,
fl,
.-+
fl,
st
fl,
,-+
In
fl,
ova
fl,
,-,..-+
At around this time

era
her publishing bodies produced new contracts. The ICE
publishing the third edition of the NEC form, considerably expanding the earlier suite.
The ACA published PPC2000, and subsequently SPC2005 and TPC2005. The Reading
Construction Forum published the BeCollaborative form of contract.
The most recent revision to the JCT suite of forms took place in 2005. Most of the
10
Introduction
then current forms were republished, with n

numbering, and with extensive re-drafti
and
addition two new forms for Framework green nts,6ppead,
tether
variants of the existing Intermedi

d Mift& Wo s bu di
incorporating provisions for contrac r de n. t the ti
of w tin
new editions of JCT forms are still t be issuA an t is un r ood th
Constructing Excellence form is to be
a
There are currently over 40
Figure
uildi
ndar'
emanating from eight publis ing sources

two
contract, including variants
Pro
contracts, warranties and gui
around 15 forms, including
riants,
ACA
suite of 23 documents, and
bodie
list of contact detail
evrk a
ract
w
e
is'hA
ent
Advisor
ph
e Civil Estate publish
contracts, plus the NEC

including PPC2005. A
appendix A.
s,
.1
t of stand
Chronology of dev
Dates show:
first pu
icati,on
ions
of in
first
ound
34
870
09
1931
1939
1945
1955
1963
1967
1968
tit
of Ci
ks
itutes
and rep
Engi eers
itish Ar itects
ute o
ads
Co itions of B ilders' Contract
RI A wit the Lo
on
ilders' Society
udson' Building a
Civil Engineering Contracts
RIBA/ BA Form of Contract
A / LB Form of Contract
r tives contracts with and without quantities included
RI=,o itio of Contract
tra s Tribunal
RIB Sta dard Form of Contract
Stan and Form of Contract
ICE Con itions of Contract
on Building Contracts
JCT Standard Form of Building Contract 1963 edition
Two versions, private and local authority, each with alternative editions for
use with or without bills of quantities
JCT Prime Cost Contract
JCT Agreement for Minor Building Works
Roya
ns
r+..
18 8
forms-(r luding
11
Introduction
1973
GC/Works/1
uildiw co
1981
1981
1982
1987
1988
1989
1989
1989
;::
Dog
The first government sponsored standard
Association of Consultant Architects (A

JCT SFBC With
Approximate Quantitie
Standard Form of Building Contr, ct

Six variants, private and local auth 'city
JCT Intermediate Form of Building C
trac
JCT Standard Form of Contract
racer's D
ACA Form of Building Agree
nt
JCT Standard Form of Manag ent Gontra`
Construction Industry Cou
(CI
JCT
.-f
1973
1979
1980
pan-industry forum repr entm

Which Contract?
JCT Measured Term
Association of Con
Utant ArE
itect
Amalgamation o the F
I
Construction Surv ors I stitute
1990
GC/Works/2
1991
Reading Co tr
oru
Private Fin ce In'
introd
Emphosi on red
blic seMTor borro
ICE De gn and ons u(
rtions of Co
1992
1992
1993
1993
1994
built
to
(governm t dec
G
sign and
first edi
onstrung th
it Mi aelIT tho
,sting
earn
-6
V)+
Construc on Forum
best practice guide to partnering
try Board (CIB)
over
ent, mainly concerned with the implementation of
ecomm
ions in e Latham Report and the Egon Report, ceased
to exist in June
i initiatives now mostly run by the Government
âg
throughhe-IC
1995
1996
1996
1997
1997
12
sec
ition
Housin Grants, Co
Partne
in the
CIB
Election of Tony Blair
PFI emphasis shifted to 'value for money'
Lean Construction Institute
Introduction
1998
The Seven Pillars of Partnering

Reading Construction Forum
1998
1998
formed
standard forms
Revised to comply with H CR
Rethinking Construction
Government sponsore revs
identified five drivers or
ng
which was partneri the supp
Movement for Innov 'on (NN
le
Established to ve e i
JCT
=ti
1998
JCT Ltd
1998
recom
indu
amour
in
of
recommendoti
1998
Construction Best
Working a
learnt fr
1999
1999
CPB
ons ation roject
t for Ho
Owne
ence launch(
JCf Buil
Achievin
Govemme
lent,
Guid
CIC, c
ctice
6onse to E an, r4cus

ving th effi
t Tea
r ering
heads of tJ
ted
tain.
editio 20 2
del P oject
win
P.
tractor Handbook of Supply Chain Management

Prime
long-term s ategic supply chain alliances
fishes
Aril
I I key performance indicators)
Health
tinge of initiatives to improve the NHS's planning, procurement,
of its estate
NH
Introd
NI
2000
2000
es
rtnering framework for the Department of Health and the
New part ering contract published by Association of Consultant Architects,

veto d by the CIC partnering task force
GC/Uorks amendment
Supplemental clauses: risk assignment, value engineering
Confederation of Construction Clients (CCC)
Formerly the construction Clients Forum, aims to encourage clients 'to
achieve value for money through best practice'
13
Introduction
4 (second series): Partneri

Construction Clients Charter launched
Construction Clients Forum
Strategic Forum Replaces CIB
JCT Building Contract for Home Owner/occ
ier'With consultants agfeeergen
Accelerating change
Strategic Forum. Sets out measurable rg
' g p erlorman
in
construction, including client
em %t1o egr ng
e teorr)l and
people issues
JCT Contract for Home Repair'
JCT Construction Manage
Architects and the Chan
JCT Practice Note
f_1
2001
2001
+''
2001
2002
2002
+,+
LL.
tap
2002
2002
2002
RIBA
2003
oundation
Working Group 2
+.,
2003
2003
2004
Be (Collaborating for
Reading Constructn Forum erg with
sign uil
Be Collaborative c ntracta ing Con
uctio
oru
JCT Major Projects
Constructing xcell
iii
Includes: R
Foun tion, Construction Best Practice
esikq, Bui
Programm Mli, e
sing
ethin ng Construction, Be, LGTF
Construc
NEC3
ORice of vernrravft Com erce recor sends the use of NEC3 by public
,
2005
sect
tr tion proc ers on hh' construction projects
JCT)Cons
by Constructing Excellence
fiction` ,:ccellence Contract (forthcoming)
2005
2005
2006
20W
14
The term 'procurement method'

relationships which are forme
companies, to enable a buildin
are formalised by entering in
parties), but are occasion y m
contracts develop, for ex ple c
contractor, main contractor-so ialist-
network of
construction
--K
ese relationships
ateral (ie with two
n-0
Often 'chains' of
ervice-provider-main
't-sub-contractor, subcoined to describe this
pN
cha
pa-1em is o
en mo
ally b
en there will
into sever-ar
It is important
ely described as a network.

network of bilateral contracts,
V),
contractor-supplier.
relationship, but in r
In any given project
with each individual
al re tionships from managerial links, and

m this is ometimes far from easy. A contract
onal offer unconditionally accepted (for a full
is usually f
explanati
see a
nt led
ch as F cus on Contract Formation). A legally
evidenced in writing, although it is good practice
binding cont ct doe not h
to en
is. Amo
gs, legislation such as the Housing Grants
enera
Act 19 6 only apply to contracts in writing. It has
(Co
b
the constructi on industry to use standard forms of contract,
itten
a
cume s are equally binding, and are often used on
larg
glow).
odern
rmed
ArcWii
ries of
rac
rocur
.^-+
in complex
professional consultants will be primarily concerned with two

ose under which professional services are provided and those
tion ork is carried out.
i ppdse, the two categories are essentially complementary. The

bli g tions of the professional acting for the client during the
iod
fight be significantly conditioned by the wording of the
bntract. Li ke ise, the part played by the professional during the pre-contract
hd ermined largely by the contract for services, will be influenced by
the type of procurement to be adopted and the role to be played by other
professionals and by the contractor. To this extent at least, the choice of the one
contract might be influenced by the content of the other.
and
r)'
hori
S'^
Although different
15
Contracts for professional services

Leaving aside the fact that many architects offer
directly building specific, it is for this latter rd
Nowadays, architects increasingly find thems
partial service, or a service which is not 'tradi onal' i
be the lead consultant. Sometimes they s rt out a
il ls
Vage
re
provid
alv
they/(night
l/)
nse th
mmis r
itial on
au,
to
eventually becoming part of the contracto '
o ssi
gladly rise to the challenge of an entre re
le
eve
suited to a construction management r le. But wh
services need to be covered by an ap,r op to c tracf
I
`-
0-0
ti
rte,
Some forms of appointment may quire

he nature of
becau
the services to be provided, and it increas
mbh,tt 'nd cl nts who insist
on their own forms or who will
ndme
to n
ms. However, in
this book it is assumed that ny ccontra for
ar
ervic s is likely to be on
one of the RIBA standard ap ointin
o uments ith its
dum of Agreement
or Letter of Appointment, =ondi ions of Enga e
dule of Services, and
Schedule of Fees etc. Itis im rta n that the
poi
ment clearly identifies
whether the commi io
es to
role ther s lead consultant, contract
administrator, or de gn lea
atib wit the procurement method.
d is co
It might be that e app ntm

stage, and will n -d to
ende
,-+
vii
ti-
'-'
p to a defined Plan of Work

roceeds. It might be that the
agreement will req ui amending if
the Architect changes, or if there are
shifts in the rocure
roced
tandard appointing documents are
flexible an can be adap
use inmost situ ions. An alternative from may be the
propose CIC
i tment, but
is document is not yet finalised at the
time of
ting.
-+,
`+-
C3)
o.-,
?gin
+-C
ntment is f r services as dsub-consultant, it is vital to check that the

k-to-b k form as far as terms are concerned, and that the
IS
o refe bly
patible with those of standard RIBA forms of
poi*Qe
dition forms are proposed, whether these relate to
eying charters or col
anties, then a careful check is essential to ensure
tobligati s e no more onerous than those which arise from the main
eement
nditi
uilding
ate.
Building construction -to-day often entails complex and intensive site operations, with
huge sums of money locked into development programmes. Contractors may have
partial or total design responsibilities, and in addition may undertake demanding
management and coordinating roles; patterns of working have never been so diverse.
As outlined in the introduction, this change of emphasis, together with the
C3)
16
increasing range and scale of work, has inevit

forms of building contract, both standard
se dried.
orm of tuildin
ern
ttoa
(<D
fl,
There are many advantages to using

normally be less expensive and genera more co
to arrange for one to be specially draft
relevant guidance, which is in tur
through having been tested in
courts:
rto a pros
ritati
fl,
For the majority of building

ave a stated role,
standard printed forms are eadi
lar are widely used,
and have the unique distinct
that
ibunal on which there
is representation of the professio
the
dies. As a consequence
these documents are eneraiiy
o be
ed in the interests of the
parties. A whole ran eof d ocu ents isles w av
over a variety of situations
from jobbing or m intena ce nd repair
rk on` e one hand to management
contracting and part ring rrangeme
0
th
Many of the forms published
by other bodie
rity Ever recent years. Although not
of n eased in op
offering suc an ext
ran 9, these re o en flexible documents that can be
adapted to uit a r
u msta n
,fore mple the NEC suite of documents.
n.,
(CD
3'<
(<D
'All parties in the construction process should

Forms without amendment' and this is
ice. Be bke am ndments can easily impair the balance of the
e m ning of t e contract conditions could be a matter for
een la
ers.
ere is also the practical point that if a contractor
wing that is proposed to use a special or amended form of
toy's first action will be to pass it to its legal advisers for checking.
en be reflected in the tender. It is sound advice to resist
ndme s wherever possible.
rt recom
bst of t
Iter tt nsart
,-r
T e
F).
use
Non-standard a
ay
instances where no standard form of building contract fits the
ents and a specially drafted agreement is needed. There is an
.trend towa ds non-standard agreements on commercial or larger contracts.
should be entrusted to a lawyer with the appropriate specialist
knowledge, and he or she should always be engaged directly by the client. Architects
without legal training and experience in such matters are strongly advised not to
attempt even seemingly minor changes to standard wording or drafting of additional
clauses which might make published documents non-standard.
there
CI-
ui
17
era
Standard forms of contract are drafted taking int

common law and statutory rules. It is generally usef
they give insight into why many aspects of a for
way, and aid the interpretation of these forms.
The Sale
Ulpt
ersta.Rd
th
ba
e
rule ,and
en
of Goods Act 1979
ith
Implies terms into contracts for the sale of goo regarding
ction
description, quality and fitness for purpo àid s
amp
rse
and the
the
14 implies a term that where the seller ells go
to 41. elle
pa
purpose
buyer, expressly or by implication, mak kno
is a
for which the goods are being bou
e con iti
th the goods
rcu mstances
for t
urpose. I
supplied under the contract will be. reason
ed
b
in which these rights can be exclude are li
i
._-+
tracts
hire of goods, and
Applies to contracts for w rk and na erials,
contracts for services. Impl
term into contracts fo :work d materials' equivalent
hich the property has
in
to the SOG terms listed abo wit respect
service
ct implies terms regarding care
been transferred uncle, th
act.
consi
and skill, time of pe orma
7c-
t(
raises
Applies where wo
work, and st
a dwelling
workman
so
that
is ca
r+
out
person t
%to see
connect
ing o
e
wor
th
dwelling, including design
in connection with the provision of

which he takes on is done in a
ofessio al manner, with proper materials and

elling wj befit for habitation when completed.
ffecf
ng various exclusion clauses void including: any clauses

ersonal injury resulting from negligence; any clauses
e of Goods Act 1979 Section 12 obligations (and
exclud
em in
Goods and Services Act); any clauses attempting
quivalent under the
e liabili
o ale o Goods Act 1979 Sections 13, 14 or 15 obligations (and
the equiva ent
der he upply of Goods and Services Act) where they are
operating again t any perso dealing as a consumer. It also renders certain other
exclusion clause oid in s far as they fail to satisfy a test of reasonableness, for
example liability for ne igence other than liability for death or personal injury, and
liability for breach of Sections 13, 14 and 15 obligations in contracts which do not
involve a consumer.
's
has the
ilitv for
r+.
cludinaJi
18
Unfair Terms in Consumer Contracts Regul
.-+
r
Applies to terms in contracts between a s
Zten
services and a consumer, and where the ter
:onsum
(this would generally include all standarr
who, in making a contract, is acting or pur
which would include a home owner: n ' nfai
significant imbalance in the partiesi-sights t detri
e
ing
regulations state that any such t
The Housing Grants, Constructs
ege-r
otidi
ct
uppr
i
ds and
tiated
dividua
is defies
person
business'
causes a
er, and the
mer.
dii
Iling
in the
h in the Act contain
Requires that all constructio con
stNe p
ts, th right to notice of the
certain provisions including e righ
non
end
t, and the right to take
amount to be paid, the right
ion. the parties fail to include
any dispute arising o of th e
n t r ttoa
to provide these rights (s.
these provisions in t eir con trac , the Abt,will
ntracts (England and Wales)
114) by means of he S em for Const ction
but does not apply to a
Regulations 1998.
e A t is of b r
ith
esidenti oc
construction c
i
CD)
Provides
r inter
commercia
of the
f
r
for late p
re
ervices. The rate
su
Secr eta
g rate.
deaZcy
on the late payment of debt in a

of interest is set by Order
being 8 per cent per annum over the official
State, th curren
de th right unless a contract contains a 'substantial'
ossibl
rd forms contain their own remedy).
(mos
sta n
purchaser
e Con
abloersons who are not party to a contract (termed 'third parties') to
be able to
inst a person who is a party to that contract. It is possible to
a third
rty rig is if a contract expressly agrees that a third party may
spec
that third party or where the contract purports to confer
The third party who is being given the right to enforce
a-benefit on the
her identified in the contract as a member of a class or
the contr+ust
rcula description. The contract may expressly exclude or limit liability.
a
Contracts Regulations 2006
for public procurement of contracts for works, services and

supplies. These Regulations implement the European Commission's Consolidated
Sets
out
never-
Directive, adopted in March 2004, into UK law, and cover the tendering and award
of public contracts. Strict rules now apply to frameworks agreements, for example,
they must not generally exceed a term of four years and the terms of any framework
must be determined at the outset.
19
Advising the client

vii
fl'
In some procurement contexts, the choice of contr, ct may/be d erh

factors, such as requirements of the funder. For ex
ple th
rld B Ak now quire
the FIDIC forms of contract to be used on pro c
er f6 millio ,andj
as if the NEC form may be the preferred choice or
e Olyr
is c nstru
programme. In such cases the form to be u ed will ha bi__w selec
befor
Architect and other consultants are appoipted.
n,3
,-+
fl,
fl'
r^+
0-a)
m-0
,-+
However it is frequently the case that here th

ite
ovi
essional
services, it may be his or her duty'to co ult vvi
andvis
Erri
ydr as to the
form of contract to be used' (Huds
gin
ohd B
C tracts 10th
Edition, 1970). These words mig
our
the ma
of architects
today, and it has been said that the b t cour
an
gainst' leaving
aive t
the Employer to make the cho)
t
rsem
many JCT forms
of contract refers to the cli fit eng ag m a p fessio
ult t to advise on and
to administer its terms'. Th J CT h
ctice Note: Deciding
lished a
on the Appropriate JCT Fd -m of Main Contrac
early written with the
interests of the clientin m
lated diagrams can be
ke Practic
,.+
downloaded from th
ite.
/ w
case record
of an -&r hitect being successfully sued for
recommending a ontra whioh
iteQheld not to ave been appropriate. But the
range of availab
rms Nnc(easin and a
(particularly in the case of JCf
forms of contr.
d to be pu ished t,
eep them current and consistent. Just
keeping up to daf
n a taxing business. Also, there is
such
sometim
a disconc
the publication of authorised
amend
nts a
in? ucti
e, particularly by bodies in the p ublic
sector w
have sl ng in
Advising on the edition of a
form
d and vheth r
are to be incorporated extends
th
Archit
are in carrying out this duty and requires a thorough
k owledae
a rt.
((DD
There are very fe
timn
luencatters.
fl,
,C+
partents
likely to be easy in the wider European context.

he meaning of provisions which may have been
ay be subject to interpretation under a different legal
btai s in the courts of England and Wales. Problems can also
ng on proje is overseas, where the contractor or suppliers are based
in another cou
and erhaps the law of the contract has not been clearly
established. Many standard forms can be adapted for use under the laws of Northern
Ireland or Scotland but not all. Some specifically state that they are not for use in
Scotland. The Scottish Building Contracts Committee has published its own range of
forms specifically for use under Scots law.
orms o
ems can arise in co'
hich
nslat
(D
visi
a-*
.-f
a`)
`+-
20
contract for
particular set of circumstances

fl)
Recommending
is
not something to
be undertaken lightly: it requires a knowled

contract in question should first be studied
and conditions, and also for its appropriat
odic
d me
bot
res
he
own ircu
a few architects who min*

referring to the importance of trust. T ey bla
being the one which is put into the dra e r and on
milli terel
An appropriate contract, fairly an44; mly
e!
ensure that things do not go wr
bf con
There are still
Dest ki
Oith performance
, for most present
rver prd
on the basis of a
a n
situations the cautious a ice m
enieh an a osphere of trust and
'handshake' agreement. Mil t cane
rstanding' that has not
to
ome
confidence is desirabl '
tp ple can have genuine but
and prop rly e cuted'
been fully document
f what
quite different uncle stand
Despite the Egan Report's state
measurement and bring reli n
ambi
rukpla
rmalZcuments
i
en o ce p ointed
difficu'
(19
e con
ue exis to e of
As architect Ronald G
Architectural
depends on
conside&ion t contrac
itect's Guide to Running o job,

entleman's agreement is that it
tlemen'!
and choice at the earliest possible time.
pro ssiN al services and building contracts, although

for ea
other. The method of procurement has
d documenta ion.
ntracts
iplica
ocu re
hod has not been decided before the architect
consultanSt may be the architect's duty to advise on the

If so, do not allow this to be left to other consultants.
ements and conditions are set down in writing and the
work starts.
ement exe
Recomme
If particul
e us
f ``t ndard forms of contract whenever
possible.
irc msta ces require specially drafted or extensively amended contracts,
tial that leg
advice is taken.
recording
a form of contract, study its contents and understand its

implications. It is important to set up a control system which ensures that stipulated
procedures are followed.
Before
21
22
Establishing a con
profile
There may be clients who choose t

increased efficiency and think that, it is
rice,
at breakneck speed for a knockbe dispelled at the outset.
The reality is that although t
usually cost, time and qual ,the
some compromise or consci s bal
ecog n r&ed in
balancing of priorities
Constructing Excelle
and careful though
urem
fact sh
s for any client are

nt invariably calls for
This need for careful

or example the useful
es adequate thinking time
such management tools as

as become part of life. To some
anc ndicator and
n
increasing
number of construction
ra ' rgon, k tfor'
all this mightj st b
a
u
reminder
of key points to be
eful
professiona
Ther
fore
it
might
prove an interesting
c
ecorded.
considere 'and
r
analysis
in advance of
f
r
cry
or
simi
diagrammatic
a gar
exercise t set u p
simply
a
manual
exercise
to help focus
ct.
Th'
could
be
any propose
what
level
of
quality
is required,
prior
or
example
alance
the
and to
and
for
operations
on
site,
ilable
re
con
truction
be
ho much tim
respects cos considerations are paramount.
visual pres
((D
whe
(DO
so-O
unt
fl,
iE
t of
iaton needed.
r+'
lure
als suggest where design responsibilities are to rest

the most uitable procurement methods and construction
turn will affect tendering arrangements and the amount and
ges mig
rofile
fl'
ich presents the three elements of cost, time, and quality

where they are not in conflict, these elements need
re 2.1 isarr
in terms
of contrac
ncP
an
visu
propriate c
s. Even
ideally balanced. Asking the right questions at the right time

profile which allows quick comparisons, and help in arriving
tract.
I
Figure 2.1 in-d*&t6s the contract priorities for a project at the minimum capital cost
to be built in the shortest possible time. There must be reasonable certainty over cost
and timing, and all this combined with the desire for reasonable design quality from
the client's consultants!
Taking these three elements in greater detail:

23
Establishing
contract profile
Priority (0 lowest-5 highest scale)

2 3 4 5
we
QUALITY
24
C2
Certkty
C3
st val
T1
tI
pital expenditure
er co tract price, no fluctuation
for
oney overall
est po Bible start on site
T2
Certainty,/over contract duration
T3
Q1
Top quality, minimum maintenance
Q2
Sensitive design, control by employer
Q3
Detailed design not critical, leave to contractor
o est possible contract period
`D-
TIME
ossible
/I
Establishing
contract profile
facto
building
until quite recently,
ubject
Des
h
e
oft
nefs
contracts. The repercussions are well kno
fail'
nguish
e
en
et, ometimes
to unrealistic cost constraints from the
s role has
os
The q ntityurve
between initial capital outlay and to
fina
vial
control
strin`nt
assumed greater importance becau
ave
seemed
s
contracts
man
throughout the project. To
ost tertai v. Desrtln and build or
attractive because they promise
rte.
let
on
usisvT',a
have
en
management contracts
no
sum, although the design Ofor motion '
wh
le
ri
s
ometim a`lte
Despite
the
con
tendering.
In this country, at least
fl,
h(0
dr
all too frequently the lowe
Now the emphasis ap

greater efficiency r ulting in
being encouraged.
It is particularly imp rtant
such questionVtothe ient
minis
rice
hiftih
I
clarify so
the outs'
considerations, by addressing
the lead consultant might wish
to raise:
"set
li
Contract Su
e clien height
àve
lirnite
unding and require the reassurance of
fixed
isk of fluct ation
recis'Wthe co of the work before operations start on site?

at the wo needs to be measured and described in detail
use o firm quantities.
s signed, in the event of variations is the client authorised to
enditure?
r"nal
Is
sour
the co-r9ract
ration
a
at the client has to rely heavily on some 'once and for all'
or other funding, and there may be conditions attached.
awarded to the lowest tenderer regardless of other
for money will not always be achieved by this process. Designing

figure ight mean excessive running and maintenance costs later on,
should take into account. There might also be stipulations
quality, imposed by a grant aiding body where this is conservation work.
the tenderer expected to allow for any increases in labour and materials etc.
when pricing?
Comment: it may be in the interests of the client to forgo cost certainty and accept
Q. Is
25
Establishing
contract profile
price based on known factors, assuming that fair

dealt with under fluctuations provisions. Much will d
at the time, on the anticipated duration of the jo
recovering the capital expenditure.
Q.
Ft
oroi
ted
eans
Is total accountability an imperative?

accounted for?
Comment: public bodies in particular are

are also understandably sensitive about ny aHegat1Rns4ubi
the client have rules or sta

competition when sub-contractor.
Q. Does
kng
or ers -toich
lierse invited
edobe derri
Comment: commercially minded Tents

opportunity for the best deal has been verloo
lists for selected items.
Q.
'
What is understood by 'c 'st consi de ations Capi

maintenance and life cycl costs
o be tak into
Comment: the lead consul nt h
a duty tom
the
implications.
Quality
No one really exp cts to
y a ofts
e for the pric of a family saloon, yet there
are clients who c venien o erlook the fac
s world you only get what you
pay for. It is essentia o agree what{ is meai by 'quality' both in respect of services
and the finis
dto d
at rr surable standards are to apply. For
example t
Might
to rais questions such as:
Q.
Are con
the degre
Co
m `rket-com
restig and public image likely to influence
ercl
nd
have a
ce
hose
style which expresses the efficiency or
of the company, and which they would wish to see
their bui
Q. Is
implant to use high
Co m yent: for example,
materials?
the profit might be located
in an environmentally sensitive
spot suc
serva-uon ea, or perhaps subject to stringent planning permission
conditions. On t
d, the project might just be an envelope for some
retailing or indu 'trial proces
:
this a listed or
building where alterations or extensions will require
higher than average standards of craftsmanship?
Q. Is
26
O+,
rya
Comment: it may not be possible to establish how much work is likely to be entailed,
or to describe and measure it before opening up. Yet control by the client as work
proceeds is essential, and any body responsible for funding might impose conditions.
Establishing
contract profile
it essential that all matters of design

control of the design team, and that sp
named or otherwise selected by the ch
Comment: where the architect is lead

contrary, this is likely to bring at first
tans
work is to be undertaken by others, t e respons
into the overall design will remain wit he3ead
it safe to entrust certain d ign

(with agreement to sub-let) ithout th
being impaired?
lit
-;'
-n'
to
y referred to in the
obkiq tion is
ied u e
andar forms of contract. Even
nsib
e design input, it might
esigns
bmi
to the client before work
Comment: unless a cont ctor

building contract, this is un
ly to
where the contractor or sub-c6 ractor
be essential to make
is actually carried o
Q. Is
or
ponce o an
ibility. ven
din ion ar
Q. Is
ly
?&icatio are
Q. Is
provisi
the building int ided to be relative
ce-free?
Tle
at can be achieved is minimum

lSo at' the
ected
e spy n? When will major components be in
radin or re acing.
th oJer II appearance intended to last for a
b cycle my illdu or a face-lift
ich will not involve structural change?
rammed at the outset?
eed fo sucf; event aliti
be
inable
aII
iii
an at
rpm
nap
ood com ercial e e for the client to provide for a constant site
motor th cont ctor' ontrol of quality?
cont t allow for this, and if so by what means will it be
ht
13e,
expected
:e thro
rel
the contractor in terms of quality management

ant KPI information?
song
he work only be performed by a firm with specialist expertise?

t mean selecting a contractor after interview and negotiation
ye tendering. It might result in appointing the contractor at
efit from advice on construction methods and materials,
ign stage
and possibly to
specialist design input. It would probably affect the
n o Nnfor ation. It could result in appointing a specialist firm as the main
iarodu
ing
neral builders' work to be sub-contracted.
,_
.-+
ment:
speed are not obviously happy bedfellows. Where fast construction relies
of numerous prefabricated major components and systems, much will
whether manufacture has taken place under monitored and controlled
in order that specified performance can be guaranteed.
-o
Quality and
on the use
depend on
conditions,
27
Establishing
contract profile
`m
Good supply-chain management can reduce both

stage
Savings can also be achieved through overlapping d V tailed
nstru
stages, where the contractor controls the flow of ecessari
the contract allows the contractor freedom in th choice
sub-c tractor
nd
substitutions. Real savings in overall proj `_t
omes th ugh f ti
management, and not by taking short cuts Ii prema
sheds I
Clients, who sometimes take a long time
e Lha thei
procee
are
understandably disappointed when an mm
sta
sable.
on si
Whatever method of procurement is ad pted, it is
rta
alto
nt time
for all the relevant matters to be properly
at
o ract
side
ge. Design
and build, for example, depends
its s
ss on
e
r he client's
requirements have been carefully
tim
Id be
lowed for this.
The overall time of a project from ince
tionls
tre er significance
than the time taken for site o
all t
he construction
industry has a poor record of,
fail
strua
time. Predictability is an im
for mos
tyre-
Time considerations can sig

explored thoroughly.
questions such as:
candy affect t
e,
thlead
cd sulta`rat m
there time for full br

matically dev) loped, so that the client's
detailed require nts cab prop
he tender documents?
Comment: this will b ssential for th
ering who need full information when
rsu price. nythi ig le could bring the uncertainty of
submitting
remeasu re
e eve
rapid lion being required, say in the case
of restori
hand-to-m th approach might be unavoidable.
rim
Q. Is
Q.
mpletion
ment: as
bo
liest Dessi e start,
a
they commen
Q.
to be an overriding objective?
ht be an overriding consideration which justifies the

ting the probability of some uneconomic working.
external pressures which make it imperative
lete by a certain
tch easonal trade for instance, or to be completed in time
is al eady programmed and immovable. In such a case a
etion date ght be needed despite the contractor pricing for the risk.
phased or sectionmpletion necessary?

Comment: for example, to allow some office units to be occupied, or parts of an
industrial complex to be commissioned, ahead of completion of the whole contract.
Not all contracts will allow for this, and to be effective it needs to be included in the
contract conditions as a programmed requirement.
Q. Is
A-+
28
contract profile
('1
Establishing
tove
it desirable to phase possession by

an limit '
parts of redevelopment of the Works, in rder t at
con ue during
the building work?
Comment: during redevelopment with'
si
is it esentia to co
and
also to accommodate some decantin of o
pa s and p cesse duri
site work?
Is it necessary to restrict operations
certain
es f day
termitt nt periods?
Many standard building cont;e s ap ar
ass
e
clusive pos ssion by the
contractor, and with small do sti
rod is
arts lar
is is n t practical and
Q. Is
bass
oi'ing
some allowances may be nee
29
enal
Which procureme
method?
ready bee( decide,

the procurement m thod wil
uthority laid
architect is appointed, either as the resu of mpa
co
tra
s
ve
lirri
tions,
or because circumstances or
ise
a
le
been
made
`y
the
clie
a
su
choice has already
the Architect.
In some instances
It is generally accepted th
practised in this country. Th raditid
in theory design and constructi
ree
ethod
ti al app
curement currently
ach, in which at least

epar
ents, design and build,
nag
ent, by which either the
responsibility. There are in
onv
which implies a mor integra

ap roach;
client or a contract r assumes he cen
hese methods. Moreover there
addition many varia its, h rid and compnc
s, w
Ithough possibly termed a
have been many r cent developm
more
cu ra
described as an approach to
procurement
mig
procuremen For e Cam e mo part ring arrangements are an over-arching
er co tracts let under one of the three key
agreement hich comDa one or
is it is freq ently possible to identify contracts let
methods. imilarl
,nageme
It is therefore useful to start by clearly
on a desig sand b
ods, before moving on to discuss some more
differe
e three prj cipal i
(DD
ial
r+.
rece
,-r
-'
+-V
od is Fikely to rove the most appropriate in a given situation

natu and sc pe of the work proposed, how the risks are to
sponsibility for design is to be placed, how the
and wh
ated, and on what price basis the contract is to be awarded.
remember is that the choice of form (or forms) of contract

til the procurement method and the type of contract have
twill can considering the following:
+-'
po rta n
led
been established'
defin d as devising an arrangement, then specifying the components

t at arrangement, and lastly detailing a method of joining or
ponents. Design can mean the overall concept or form of the
building, it can relate to the component parts including specialist installations, or can
be the result of meeting specified criteria for durability, performance etc.
`s
realise
It is important to establish:
how, if at all, design responsibilities are to be apportioned between the Architect as

31
Which procurement method?
,_+
lead designer, other consultants, the contractor and

suppliers;
what contractual provisions will apply to the desi
Coordination responsibility
3-l
This might include responsibility for workm nship, g
+(O
methods, programming, ordering, general coo

It is important to establish:
what contractual arrangements will ap

whether the Works are to be car,
combination of separate contracts either
fort
c
i^.
,-+
A contract might be let on t e basis of

sum
desired, then measurement o som
Alternatively a cost-plus app ach ight be appro
the final figure could di
gr tly fr' m the fire!
and what
tendering methods ar
sui
rest on the choice o procu r men
of Work
thod
for the 'plan
fbe ad
d a d
typeof contract will have implications
vim,
,-r
The procurement
fl)
Plan
not possible or
option.
altho h there is the risk that
The questions of what
ocuments will be needed, will
is
inly practical
roject into stages was devised by the

accept d throughout the building industry.
the 960s an
ince be
Work
move from re-design stages (Feasibility) through
The Outli e Plann
design a d con u ti n (Pr Cons ction P iod) to post-construction (Construction
Period) acts ies. It
been (widely a
t as the basis for calculating consultants'
fees
very usef description of work stages, particularly in traditional
Ives
m thods of procu
ent.
is
logical
RIBA in
appointed professionals are involved throughout

uction work stages are separated as is usual with
is in a linear pattern (see Figure 3.1).
fro
i,Q,nal
but the desi

procure
Itho gh similar work stages are still present, they are not so
r will normally be involved at design stage, to an extent
muc he is responsible for scheme design as opposed to
developing a design already produced by the client's consultants and embodied in the
client's requirements. Some of the work stages are arranged in a different sequence,
permitting parallel working or fast tracking to save time overall. The contractor will
normally continue detailed design during construction stages (see Figure 3.2).
Q-0
((DD
,O+
t.0
he contrac
Plan
32
of Work
is
still relevant to management procurement, whether management
contracting or construction management. nu re

simplified picture of operations. On a large roject
operA
or more works or trade packages and t
complex. There needs to be considerable
consultants and the managing contra
and abortive work can easily occur.
le,
n cz
7b orati
beco
tw
allel vv6
traditionaleth
u..
+--
In the traditional approach, th client a

design, cost control, and con ct atminis`
Th
responsible for carrying out
rk b
workmanship and material inclu
th
ons
ion,
d t
onsibili
contra
appointed for
--0
Procurement using
ere ,bight;
the contractor is
atter extends to all
and suppliers.
s to be engaged by the
in some cases the client will sele some
re-selected). In such cases
ed, n
contractor (variously r erred -t
ance, or the contractor's
the contractor may ake full res onsibiNY- for t
me way, in hich
e a collateral warranty between
responsibility may be limite
con ractor is usually chosen after
client and sub-contr ctor ill be esse
nd o uments
competitive to
ete information. However, the
r, eit
ugh negotiation or on the basis of
contractor ca be a
e d ea
partial or n 4ional
i
t sing
o stage endering or negotiated tendering, is

ràditional Method'. By this variant, design
imited extent. Whilst this allows an early start
cost.
erred IV as thee AcceI

an run
parallel'
m approlrr quires the production of a full set of documents

vited. Adequate time must be allowed for this.
oiigations. If th
erforma
vii
ment method assumes that design will be by appointed

of generally imply that the contractor has any design
e case, for example with specialist sub-contract work or
k, express terms should be included in the contract.
-t,
nts,
raditio
--c
oints consultants to advise on all matters of design, and cost,

y retains co trol over the design and quality required.
There is certaty-ecost, to the extent that a lump sum is known before work begins,
even if it has to be adjusted during the construction period as provided for in the
contract.
Q-3
(-r
The contractor depends heavily upon the necessary information and instructions from
the architect being issued on time. There is a risk of claims if they are delayed.
33
Information release dates are sometimes agreed

contractually binding can cause problems.
The client may decide which specialist firms the
contractor will require certain safeguards relati
All matters of valuation and payment are the
qntit
If it is impossible to define precisely the

still possible to adopt a traditional met
provisional sums or cost reimburse
solution: the fuller and more accuratethe
of the lump sum approach.
There are widely accepted codes

tendering, whether competitiv,
be used whenever possible.
Figure 3.1: Plan of Work4stages'fi-iditional

Pre-design
/"DXesn
Pre
onstr
ion
Construction
AB
K
L
Consultan
Contractor
Key
Appraisal and strategic briefing work by consultants
Outline and detailed proposals by consultants
3 Final proposals and production information by consultants
1
34
4 Tender documentation by consultants

5 Tender action
appointment of contractor
6 Mobilisation by contractor
7 Construction to practical completion and after comp
Procurement using design and b

The client may need to appoint consult
costs, if he does not have this,
responsible to a greater or lesser
and may appoint its own consu
construction, or for design
scheme design supplied by
ments and
contractor is
g out the work
fc,'r'total design and
ation based on a
Figure 3.2: Plan of Work sta

Pre-design
AB
'o
XPre-nstru-
Desig
Construction
T__
K
L
Consultants
Contractor
Key
1
2
3
4
5
6
7
Appraisal an
tegic iefing work by consultants
Outline proposals/client's requirements
Detailed proposals by contractor
Tender action including contractor's proposals
Final proposals by contractor and specialists
Production information
Mobilisation by contractor
Construction to completion and after completion
35
T-0
-0O
,-+
,.+
+-I
The contractor may be appointed either by comp eti veent

ten er or
the
t
negotiated agreement. Where a design and build agr, errs
ne
ate
contractor, it is sometimes referred to as 'Single rect D ign nd
'Id'.
ere
approach is made to a number of contractors, ev
is is a
o stag opera io
it
only the most promising proceeding to the sec
e, he agree ent is om
referred to as 'Competitive Design and Buil . It tend o f e sligh
ger, b
usually results in a more developed design and
cost and timid
I
r;,
Frequently, in deign-build procurement e cn

he
req
cont ctor to
appoint some or all of its consultants at e time the
a
uild
tra is entered
into. This process is usually referred
vati
r co ulta t
itchi, t requires a
complex tripartite agreement to ee
een cli
sultant and
into
contractor. In addition to the c
t-arch
d
ctor-a' itect terms of
appointment published by the RIBA, th IC pu
ita b
or novation and
fl,
,-f
E+-
collateral warranties.
Watchpoints
burnt
the most straightforward

de 'gn and
theory there is usually
single point of respo si ility. he cli t there re ha thevantage of only one firm
to deal with and
e fi rm to
me
ings o wr ng. In practice, however, the
client's requireme s are ten de led to
extent that the contractor's design
contribution, an theref re lick lit, is diminished.
In
15.
The client lacks

acceptable
relatively le,
trol
or
detai
road lin
ponsibilit
littl
oon
ation
design; however, this might be

eme are satisfactory and the detail
early as a reat deal of detailed design work can

contr, ctor, however, who benefits from the
Constru
proceed
opera
is
ects
is
on t h c
one of the
on time rests wholly with the contractor. There should

allegations that information from the client is late.
to be responsible for the flow of his necessary
active features of design and build.
is
-certain of c st, even to the extent that, if required, responsibility for
investigating sit a-n-c Jb-soi conditions can be made entirely the contractor's. Any
significant chan s in the cli nt's requirements will affect the Contract Sum however,
and are likely to pro'
There
+.V
Often the client requires that the contractor appoints the client's consultants to develop
the design under a consultant switch agreement or by novation. If this is not the case,
it is always advisable to ask for information about who the contractor intends using as
designer. Adequate professional indemnity insurance should always be a requirement.
E
36
The client should appoint consultants to advise

and it is important that adequate time is all
-.0
pTeparatTaQ OT t
req
hese a-be
oerly
The requirements might include specific

generally it is prudent to prescribe pe
reliance is placed on the contractor.
?fovisio
-6'
r-r
,--t
that a/
the absence of any stipulations to the

are absolute. However, they are u
of the professional's duty of us g reason
In
Valuation of changes by the

the client has no quantity s
rsentir'
le'
kiIIX)-4 carte
the
pon`sftkty o
rr
erve
difficult to evalua desig

schemes and prices ar
ender
used, and whether
ice is likely
e pri
It is often
Benefits can arise fro

contractor's awaren
that
contract
of
tion.
to work closely together. The

and delivery times can ensure
editiously.
arrent mar
oth Ieconom
,
.-+
ider,
desi neN and estim

s
ectively where both

med of the criteria to be
Id be
al
x-r
9-'
,-+
ent or rrepres tative oul be s ected with great care. He or she can
mber
the Jai
is organisatio a professional consultant, a project
r, dep
on t
ork, a clerk of works. The extent to
of th
tis e power, d to
for e client needs to be clearly established.
,-+
=+;
v,'
.3+
.-+
,-+
re are
ral v ian of managem nt procurement practised in this country, but
nt ontra is an
nage
onstru ion management are the two most common.
it
ana
ent
ntracts
lent usually starts by appointing consultants to
are ro ject dra tings and a project specification. The management contractor is
seec
by
roces f tender and interviews, and paid on the basis of the scheduled
e
e
sts an management fee.
es
T
td
,-r
Q-0
(.0
7c'
,-+
.-+
Its role is literally

nag the execution of the work, and he is not usually directly
involved in
g
t a of the construction work, which will be done in 'packages'
un
en
or ks ontractors usually appointed by the management contractor.
In some
ment arrangements, the management contractor might also accept
o
a design ability. In ' management contracting', works contractors are directly and
contractually
nsible to the management contractor. Its coordinated approach
and potential for flexibility results in greater operational speed and efficiency.
(1)
Where the management contractor's obligation is total where, that is, it accepts
responsibility for both design and construction
the arrangement is sometimes
referred to as 'Design, Manage, Construct'. It is usually featured as a contractor-led
37
t anno
procurement method, but there is no real reason

architect-led. Indeed, where small works are someti
contracts and coordinated by the Architect in the
comes close to being such a procurement mtho
degree of highly specialised expertise and e
operations which most architects are unlikel to poss
quail weft
nde irect des
ain
ntr tor, t
how er, dem d 4
fl,
d ou
3rD
of a
a
'+'
v,'
With 'construction management' agreem

usually a lead designer responsible or o
esi
a c
responsible for the management and c ordination
rk,
for directing the project and entering
tra
ontrs.
are directly and contractually respo
clie
e constr
some ways less accountable for time
takes
gist the'd
fl,
0-0
is
there
anager
ponsible
contractors
anager is in
the greater risk.
Watchpoints
Management procurement methods
projects where early compl Lion i
This method of procur
There is unlikely to be
on site, and the d ìsion
t s go
estimate on proje
atiork
infor
best
able.
a e
ds upon
cont
ead
ally
ited
ig
t pri
as
t
f confidence and trust.
before the work actually starts
to be taken on the basis of an
contr toVconstr ction

therefore put the cli is interests irst thr,
The manageme
anag"e
It is essenti
stage, s
edit and
throug
onst
contr for/construction manager at an early

are available to the design team
experti
tion per)
care
-+,
CD-
work
left to proceed in parallel with the site
ackages, thus reducing the time needed before the project
atdeal of detailed design will need to be left to specialist
'ration's
arts on sit
b-c
be of flexibility on design matters. The design can

proceeds, without sacrificing cost control. However,
wore for components or elements can be difficult, with an
lient has a consider

usted as
costTy
abor ve work.
Specialist contractbrrscai:i-be selected and appointed and materials on long delivery

ordered in good time without any of the uncertainties and complexities which attend
traditional nomination procedures.
Although the project proceeds on the basis of a contract cost plan only, effective cost
control is still possible with the help of an independent quantity surveyor.
38
O..
A competitive tendering element is retained

usually account for most of the overall pri
normally be on a lump sum basis.
This method of procurement is most a
le, co
that only large construction firms 'th the

suitable. At present these are relat ely
i
management is only likely to b
int est'Ao ex
expertise to undertake the high egret
nce
rien
-+0
A management contractor's sta

in adjusting to the idea of
providing a service in t
appointment of a managem
involved.
the` e
fl,
ay la
FtRq
th
nt. Be
+'O
itise
ce and have difficulty

ofi motive in favour of
r6' recommending the
interview the key staff
eri
ess
le vvork-
a s
ex
re lik
It
a manag ment cont actor o

onstr
nager should be appointed
because of his or h r assu e
r preferab
rove
bility to manage. He or she will
need to use and be milia with a vari
istic ted techniques to deal with the
coordination
at ofte a large ?Nmb
rks contracts.
Above all,
Wor*,,stage's
Pre
ign
age
re-construction
esign
Construction
CD
EF
EFG
EFG
K
L
Consultants/Managing Contractor
Managing Contractor /Works Contractors

I
39
Key
1
4
5
6
7
8
Appraisal and strategic briefing by consultants and contractor

Outline and detailed proposals
Appointment of contractor and agreement on trade or works a
Final proposals and production information (continuing pr,
Mobilisation
Production information and coordination of works pac
Tender action and adjustments (continuing process)
Construction to practical completion and after co
Contractual relationships
The pattern of contractual and func fta
the procurement method adopte
tionss shifts or
cording to
11
Figure 3.4: Contractual relationshi 0
traditiori
(lateral
eem
arranty
Collateral
-aqreemen
Contract for
ant
services
nt
cted
sub-contractors
uilding
co
Client selected
suppliers
act
Consult
tractor.
Domestic
sub-contractors
suppliers
the traditional approach, the client is in direct contractual relationship with the
consultants on the one hand and the contractor on the other. Any contractual links
In
40
for sub-contracts or sales contracts will be b)6tween he co
actor
question. The consultants have no contract
link th
t,
e Architect
or another consultant may be named
the
ildi
con act
ontract
administrator'. Where the client selectsny b-con actor' or su
may be
advisable to recommend collateral
en
to proZu t the clie 's interests,
ie
particularly in respect of matter
ntractor's
responsibilities.
th,ntr
rqh
idhe
Figure 3.5: Contractual rela
Consultants
sign
)
ild
Sub-contractors
suppliers
Contract for services
gna d buil , it is likely that in the absence of in-house professional staff,

the clie will wish o engage outside consultants to advise on the preparation of
requiremen
to evaluate and select tenders etc. Often one or more of these
consultants will switch from being appointed by the client to being appointed by the
contractor at the time the contractor is engaged. The main contractual link is between
the client and the contractor and if the client's agent or representative has only a
limited role. The contractor might also have a contractual link with his own design
consultants, and with sub-contractors and suppliers. As the contractor is wholly
r+'
r-.
'm'
With de
41
responsible for their performance, both in terms of esign aAd co tructi 0

might be less need for collateral agreements betwe n them/and e clitot.
Figure 3.6: Contractual relationships:

management contracting
nage
Ilat
agr
epa proAure
en
Client
Contract for
services
ks
contrac
Manageme
contra t
Works
tract
Consultants
Sub contractors
42
Nominated/
domestic suppliers
Figure 3.7: Contractual relationshi

construction management
in a management contract is between the client and the

all works contractors in direct relationship with
{ with
,-+
-p'
o be desirable to establish a contractual relationship between

the clie
n
eac works contractor by means of a collateral agreement. In
constru tion manag ment the contractual relationship is between the client and the
construc '
man er, with all trades contractors in direct relationship with the former.
Assessing the risks

building contract there is some degree of risk. People may be injured or property
damaged. This category of risk, often referred to as pure and particular risk, is usually
covered by the appropriate insurance. Contract conditions often make it a contractual
In every
43
obligation to take out the cover required (for exam

damage to property due to fire, storm, water, collap
fl,
Another category of risk is fundamental risk. This

nuclear pollution, supersonic bangs, etc. Such in
againjA
pel on
encepyibra` Qn, et
war,
ill inc
e amag due
re
is
all t e sub' ct of situ
(2'
third cate
liability, and no insurance cover is normally av able or n ded. T
ortioWin adva
often referred to as speculative risk, is somethin which ca
include
ses ' time or
as decided by the parties to a contract. T,
a erse w.
which are the result of unexpected groun con
shortages
labour
unforeseeable
of
or aterials,
to
out
sen
beyond the control of the contractor, It
losses
from
such
bear
arising
event
nr
%hl
-+,
Lt
With traditional lump sum contracts t
sually be a fair
at
intent
alan
be adjusted as
balance of speculative risk be
arties'
by
e contractor, the
required, but obviously the reater th e` risk`t be a
ionrri
-he app
`sk accepted by the
higher the tender figure is kely to
ending on the ty of co ract.
parties also varies considera
fl,
As can be see from Fig
with the contractor
lance o
the'
se
package is supplied onver -ely,

management pro reme pat
44
te
is
a a
al ance
e
d.
tive-,rAk will lie almost wholly

buil contract, where a complete
st on ous for the client where the
pec
Figure 3.8: Speculative risk

Contract Type
isk
ont ctor
Client
Design and build

Complete 'package' by supplier
vii
Design and build

Design input by contractor
Traditional lump sum

Fixed price
Traditional lump sum

Fluctuations
Traditional measure ent

Bill of approximate qua ities
Traditional mea
men
Fixed fee prime wosi
Traditional
Ment
Percentage
cost
Mana
nt c
45
Figure 3.9: Comparison of procurement metho

Complexity
Speed
Not the fastest of
methods.
straightforwa
but complicai
can arise if clieri
requires
Relatively fas
n efficient single
ontractual
ar ngement
scribed
Client c rrKrols
desig
and
ions to
large extent,
ri
ctor is
olly
nsib fob
achie
th
gyp'
,n.
ruction
erti within
accoun
ganisatipR.
be limited.
design
b ilding l.
in p
llel.
in'
,n.
Virtually none for

the client
once the contract
is
signed,
without heavy
cost penalties.
Flexibility in
developing
details or
making
substitutions is to
the contractor's
+L+
Client has little

say in the choice
of specialist
sub-contractors.
vii
ecause
rmance.
actor's
)den expertise
.Q1
uction fime
co
.-r
,7+
sauireme
esign
'in
ient's
ing
integ
lient ha
dir t contr
er th
o tractor's
fl-
Pre-ten
time
large) dep
s
on
e amou t of
de ail in th
advantage.
on site
'_^
is poss
before ten
have-even b
r so
Design and
nstruction skills
tegratedd at an
early stage.
Complex
management
operation
C51
orks
packages.
or
requiring
sophisticated
techniques.
Client requires
certain standards
to be shown or
described.
Managing
contractor
responsible for
quality of work
and materials on
site.
Client can modify

or develop
design
requirements
during
construction.
Managing
contractor can
adjust
programme
ICU
and costs.
46
ility
d quality
method.
invited
ow
III
con
'06
are useo.
ndards
ain
to b
certain
sub-c tractors
negotiated
tendering.
requires
Clie
c
Fle
C51
Desirable to have
all information at
tender stage.
Consider two
stage or
Basically
Qgr'ahty
Certainty
Competition
ibility
Respo
Risk
ary
Su
Certainty in cost
and time before
Competitive
tenders are
commitment to
possible for all

items. Negotiated
tenders reduce
build. Clear
accountability
and cost
monitoring at all
Can
competitive
element.
cl
-cu
divi on of de
n
an
onstruction.
Confu
Generally air and

lanced etwee
arties.
there is
in cost
uality
t the
eense of time.
ble
(OD
14
ere
m
desig inpu
m co
ctor
stages.
or
r-+
cialist
trac s an
sup
ropo
re
.-t
esentative
ring
Success depends
on the
management
contractor's skills.
An element of
trust is essential.
r0-.
rip
rip
construction.
mainly with
the client
almost wholly in
the case of
construction
management.
Lies
Benefits in time
and quality
but at the
expense of cost.
The professional
team must be
well coordinated
through all the

c))
anage nt
ractor is
poi
d
be use o
man gement
exper ise rather
tha because his
fe is competitive.
However,
competition can
be retained for
the Works
packages.
of quality.
ctor
for
co
Benefits in cost
and time but
at the expense
educes relian
on
the cent's
ecialist work
materials.
almost
oily with the
contractor.
n lie
detailed as this
ntra
r seeks
co ter
gre
com etitivene
fl,
prod
rawings
and Specifi ti
only.
divisi ,
t
con ed w re
the clie is
uire ents ar
design or
pert
ance.
Limite role for
o3,
cost plan,
Can be a cl
competitive ss.
o benefit asses
to
nt if
to
start building on
fitte
whi
uatefor
is
Is
are
inc de
both
pri and d
n.
D. ect d ' n a
uild v ry di
ult
t
Clie
cult for the
clien to co
stages.
fl,
fl,
Di
a-,
There is a
guaranteed cost
and completion
date.
rs.
47
Recent developments in procurement.

fl)
Some of the more recent developments in procure

in order of their appearance. The outline is very bri
consult the references in the bibliography.
outl'
l l
1,
er etails eader
'Guaranteed maximum price' (GMP) cont

GMP contracts have been around for some
time
pe *ng fl
the design build procurement meth , h
ev
re
ienced
tly t
something of a resurgance. There are o GMP sta'rtdS fo
of c
he FIDIC
silver book is the closest), so contrac
a
ed s
dard lump
sum form, or on the client's or con act
here are
of possible
arrangements, but normally the c tracto
for ac
cost incurred
plus a fixed fee, subject to an agree
iling.
re
w a stipulated
construction cost are passed
to
(or iri
ared) but the risk of
ses
any overrun is borne by the ontractor.
t exte
ri
assumed can only
be determined by examinin the t
df each
act. T
frequently claim to pass
all risks to the contractor, , but
practice
articu arly those drafted by
contracting companies
clau ?s which`
ional payment in limited
o+
sbe
rpm
0(D
as
..6
or exceptional circu
enable major capita

Governmen
public sect.
operatio
governor
or P3.
reisawi
mm
to res.
initi
the government in 1992 to

without initially requiring the input of
urpose
FI is'deliver all kinds of projects to the
nstru
of buil. ings and the provision of associated
funded nd operated through a partnership of
leas are
a
priva
ector ompanies, sometimes referred to as PPP
i'
ve
rojec
PFI) w,' &s
s,
to
int
funde
but they have some

ortia, usually involving large construction firms, are
c ptra ed
design
some cases manage new projects. The public
sec r authority first sign
t with a private sector "Operator". Frequently the
'Oper
sect
consortium which forms a special company called a
"special purpose ehicl
(S V) to build and maintain the asset. The consortium is
usually made up f a-Uuilding contractor, a maintenance company and a bank lender.
As well as signO
contra with the government, the SPV will enter into contracts
with other companies
esign and/or build the facility and then maintain it. The PFI
contract will typically last for 30 years, during which time the building is leased by a
public authority.
e way PFI projects are organised,
7c'
for providing the service, the Operator is paid for the work over the course
of the contract, linked to its performance in meeting agreed standards of provision.
In return
48
This payment is frequently above the price tha

the service. If the Operator fails to meet any,
lose an element of its payment until stand
after an agreed period, the public sector a
nc sec r coura<
ree
ds it
an
ove. sta and
c
2
led to erminate
>u
Constructing the Team

Sir Michael Latham's report Constructiri the eam
the dissatisfaction among client
se
ce a
construction industry. In particu r, it not
cts
e n-t
ran over budget, were not of th
ualit
at to high a proportion of
in
laim
turnover was spent on disp
ort
asi d the importance
adversarial forms of
of the client's role, the ne d for
procurement and contracts, tip
ctin s the team, and more
efficient ways of dealin
tes.
roveer
mwan
kdd
Partnering
Partnering had alrea y em rged prior to 1994,
given greater impetus by the
òrtnering can bring significant
above report wlch
ted
e are c n fi
t
benefits by im ro
q lity
timely ess o completion whilst reducing costs. " A
rusts g the Team
series of rep is fall 'ved cludin
the Best Practice Guide to
Partnering
lished y the R ading Construction Forum (RCF) in
Con r u
iced by th onstruction Industry Board in 1996,
1995; Pa nering
ea
and in 199 he R
follo up report
even Pillars of Partnering.
ctip
am d
g as
follows:
O.2
d morageme t approach to facilitate team working across

fundo entol components are formalised mutual
uti
methods, and on active search for continuous
+.S
It is a parent
efinition that partnering was not intended as
particular type
0-0
ent or procurement method, but an approach to

ai
e
roving performance over time, through team working,
curement,
t
im
p
early identf.i tion nd
olution of problems, and measurement of achievement
fl.
n_,,
fl,
o-0
obje tives. Many organisations developed partnering charters or

men s, and some publishing bodies produced standard versions of
these, s ch as the
non-binding partnering charter, all intended to be used
alongside a
ing contract, which could be based on any of the three principal
procurement methods. One standard form, PPC2000, was developed by the CIC
Partnering Task Force, comprised both the partnering objectives and elements of
design build procurement, and was uniquely a multi-lateral agreement (see the later
chapter on this form).
framewor
49
The Construction Industry Board

The Latham recommendations were put into
Construction Industry Board, set up in 1995;
implement, monitor and review' the recom
Although no longer in existence, it has had
securing 'a culture of co-operation, teamw
industry's performance'.
Rethinking Construction
Ton
,Construction
n Egan. This
tion, and made

cesses were felt
tion in accidents on
It also called for a
erative methods of
'"*
--I
0-v
The work of the CIB was given furthe_r

(DETR, 1998) prepared by the Cons
report echoed the Latham Report
comparisons with other industries, sue
to be more efficient. It point
site, and in the defects whi
significant improvement
t identified five drivers
procurement involving partri

for change, and four process
chain.
partnering the supply
fl,,
as
In
.--r
d in 1998 to coordinate the

recommendations through: the use
ups and knowledge exchange.
nchmark performance, be open and
standards in safety and respect for
ork to the rest of the industry through
It had vr ing groups covering: Key Performance
g; the Knowledge Exchange; Partnering the Supply Chain;
Training and Research; Sustainability and Respect for
o Constructing Excellence, and information about
can be found on its website.
O_.
implementation of
of demons
Demonstr
honest,
people
case histof
;;-
The Movement
The Egan report

e licit nd measurable targets for improvement. In 1999 M41
devised and pu ished a set
Key Performance Indicators (KPIs), which were refined
and re-publishe
ril 2 00). Eleven KPIs covered several aspects of the process of
construction but did not cover the performance of the product. In April 2000 the M41
piloted a set of Sustainability Indicators, which went some way towards redressing the
balance between process and product. A wide variety of organisations have now
developed KPIs, most recently Constructing Excellence has launched the 2006
2-6
-"'
r-.
Construction Industry Key Performance Indicators.

50
ntly
it
er
testy
'Achi ing Ex IIE
ro
NHS's annin
ProC
re21,
hich
lS
on Health sets out a range of initiatives t

operation and disposal of its estate. T se inc
partnering framework for the Depar
LIFT is an
ent of
initiative of the NHS fo the procur
(at a larger scale than those u
with principles of partnerin
N1qu
major projects
VZO, bi
CU
.-+
FI
fu
t initiat
ing arrangements
.-.
pto
In May 2000, Ministers launched 'Sold on H

and the Public Services Productivity Panel, as
procurement of
schools called 'LAPP'.
Prime Contracting
,-+
2003
y the Ministry of Defence
Prime contracting is system lau hched
nts. The Pri e Cori ctor, is the single client source
and other governme t dep<
it does not
is. som what confusing
for an integrated pro ss. ( e use of tl
o types of Prime Contract. The
eo ontract. Ther
relate to a Prim
aint nance of the entire estate within a
first is a cont ct for he`c rat-'an a
ntract)L: secon type is a stand-alone contract for
region (the egiona Prime
e projects wi
a planned through-life cost model,
the design nd co tructor
compliance period (the Stand Alone
Yi thro
which mu be cd
Prime Cont ct). T intention of the initiative is to foster a more
Capital Pr
p b'e weeq(
e Estates and the Prime Contractor and to
colla brativ6
Althou h the supply chain forms a partnership with
e clie
deli er better val
efense Est `tes are not part of that partnership.
Prim Co ractd
in'
G-)
Me
51
52
For traditional procurement

ing contracts
-
the contractor
the documents
thods. This might
e the contractor to
e of anything to the
r design. The contract
limited design obligation
.-_c
.01
Imo-
nn,
a"'
Under this method, with design se

are strictly work and material co
is to carry out and complete th
supplied by the client, and i
include the design of any empo
achieve the desired result. A rt fro
it
contrary expressly in the
wording may of cours be exten
by the contractor.
has`
,-+
xpres
for workma
terials and this is in respect of
dard of the co` tract
workmanship is concerned and
complying with
rms of me hantab qua ty etc. concerning goods and material
of satisfying plie
ntract rs of whatever description or status.
etc. This will ormal exten to all s
nsible for any efects, other than those which are
The contr for wi
ise fro
misuse. The contractor is not normally
ulty d ign
directly at ibutabf
mainAfaining he b
ing: any such requirement would have to be
responsible
expre,
in the c ntract./
fl,
-.o
The contractor is res onsib

i
co
types bf contr
available with the traditional procurement
als
here theyr Tract Sum is determined before construction starts,
htered in the Agreement;
rement
where the Contract Sum is accurately known only on

surement to some agreed basis;
cts: where the Contract Sum is arrived at on the basis of

ost reimburseme
cost of lal our, plant and materials, to which is added a fee to cover the
rof it.
tic
contrac
(DD
--I
The contractor undertakes to carry out a defined amount of work in return for an
agreed sum. This can be a fixed amount not subject to recalculation, in which case
there would be no opportunity for the client to make variations after work has started
on site. The sum is more likely to be subject to limited fluctuations, usually to cover
tax etc. changes not foreseeable at the time of tendering. The sum may be subject to
53
fluctuations in the cost of labour, plant and materials

provisions. Recovery may be by use of a formul
checking vouchers, invoices, etc.
ull flu
aThc, usin
o
calle
the Xediou
Lump sum contracts 'with quantities' are pric

bill of quantities. Items which cannot be acc rately
approximate quantity or a provisional sum, t these sh
rings
e coy
Lump sum contracts 'without quantitie,

d
the
gs and
another document. This may simply b a specifi
Zn
in which
case the lump sum will not be itemise
at i
the tent that the
Contract Sum is the total of the pri
b might
atisfactorily
described by Schedules of Work,
sum
total
priced items.
In the latter cases, an itemised break wn o
s
be useful basis for
valuing any additional work.
lump
end
en a supporting
Schedule of Rates or a Con act Sum A
will b
fro
the tenderer.
E-3
Sa
eore
OOH
ti-
Tenders can be prepared o the b

f notional
replaced by firm quantities ,itisi tended to
N-0
Iup
antiti
contract.
->>
emeasurem t' contracts. This is where the

work which the ontra r ndert,ekes to'
of for some good reason be
accurately measure
re before to ering
presumption is that it has been
substantiall desig
d that
reaso nably ccurate picture of the amount and
quality of 'what is req e i give
the nderer. Probably the most effective
measur ent
cts,
Inq least ri
to the client, are those based on
drawing nd ap
mate uantiti
ua)
These are also so etime refer ed
.-+
c.>_
isly the clienJJ4ks

4--
of the totak-est*and
(71
in'
to agcep
fìe risk involved in starting work with no accurate idea

this type of contract is best confined to small jobs.
(7D
Obvi
'+Q
ntracts ca also be based on drawings and a Schedule of Rates or

ces prepar,
e clie
for the tenderer to complete. This type of contract might
e ap
there
not enough time to prepare even approximate
r where
anti
ntity work is very uncertain.
+-'
A variant of this/s the meas red term contract under which rates can be established
for categories o
ork, al ough instructions or orders will be required before any
single job in the anticipated programme is carried out.
'+J
inn,,
Cost reimbursement contracts

2>1
These are sometimes referred to as 'cost plus' contracts. The contractor undertakes
to carry out an indeterminate amount of work on the basis that it is paid the prime
54
ftion th contr
or actual cost of labour, plant and materia

agreed fee to cover management, overhe
which are directly related to the Works is r
fee, which should be agreed beforehan
basis of the fee can give rise to man `varia
to be the most appropriate will dep d on the
profi
hec
th
rin
varia
ng pre isely w at co
s
)st olu contr ts.
ich
rat
tfo
rd.
Cost plus percentage fee

The fee charged is directly relat d
but it can also be on a slidina s c
to the p
l. Ho
work at maximum efficien

requirements are particul
os
for
ver,
var
is
to p
only Ii
tract.
rate percentage,
no real incentive to
e considered where
Cost plus fixed fee
The fee to be charg d

the amount and ty e
is
to work efficiently s
as
sin
e cos
is
`st
der
tender
bye
largely
remain prof
of
bporti
They
to t
ithin
appropriate provided that

contractor has an incentive
e agreed fee.
tion
iff rence' between the estimated cost and the

is that if, the latter cost increases due to the
en th fee will be reduced accordingly. This

realistic chance of ascertaining the amount and
ose ineffi
ends
on th
tinder st
su
reimbursement
cto r.
eseea
sed oWa targe,
type. The fee is related to an agreed target. The

act
prim ost ab e or be
e target affects the fee earned. On the whole this
type o
ntract isi of popular, and is likely to prove complex to administer.
is is a
fight variarl
revio
lways
en to the client to pay direct for the cost of labour, materials,
etc., W the contractor receiving only an agreed fee for managing
re-c
or
tKe execution o he
isAf cours
pIap,+
hod gained acceptance in the early 1980s with the introduction

of a 'wi contracto s design' variant of the standard JCT form. It was endorsed by the
preferred procurement option, and most publishers of standard
public secto
forms now produce documents which allow for a contractor's design responsibility.
This pro/ur-eTrrdnt m
tea,
The contractor may have responsibility for some or all of the design of the project. The
contract wording must expressly refer to this, and the extent of the design obligation
needs to be set out as clearly as possible.
55
The requirements of the client can be stated briefly a

little more than a site plan and schedule of accomm
likely to be stated in a document of several hundre
accompanied by a well worked out concept design.
might even be restricted to developing des
information based on the design informatio supplie
,-+
'How er,
ith
d
fhare
recis peci
role o the contr
for
podr 11
prep ring
tt
Unless the contract states otherwise, it see
v-0
he ' ility
olute
liability under which the contractor
rran fit ss
the
nded.
However, usually standard design and uild forms
ess
it t
liability
of the contractor to the normal profe
exer
re o ble
re and skill.
duty
Independent consultants engaged
ctor
herefor
n
r,
liability no
greater than normal. An indemnity r acce
f lia
's likely o be worthless
unless backed by adequate indemnity in ra nce,
dais is s
n that should be
checked before a contractor is
porn
re the
or
s not have in-house
designers and intends to us outside co sultan their
s
uld be established
before a tender is accepted
i
,-+
fl,
o-0
Generally it is better to
to prescribe in detail, ecz
firmly with the cont ctor.
Q=,
in to
vee
,-+
example) the more recise

out with the fixe intenti
shell designs.
It is claimed
bring cost
relative fr
most effe
of th
erf
quirement rather than
pons ility-for design and selection
s the r
with me ypes f development (housing, for
nts the ess likel it is that a tenderer will start
ietary co ponents or its own standard
s
is lea
of certainty on the Contract Sum and

tnteg rb n of d gn and working methods, and the
o use its p chasing power and market knowledge
ately, it is often very difficult to find out
just how co
O the matted of
cl
uld be possible to ensure a quicker start on site, and the

d construction should result in more effective
pr
How e1
ded for the client's consultants to prepare an
ade ate set of requireme
me is also needed to compare and evaluate offers
and sc Premes fro
tenderers. The success or otherwise of a design and build
operation depend
ent on the client properly setting out the requirements
in the first place
c4efully evaluating the contractor's proposals. Once the
contract is signed;
s are likely to prove costly, and the client has little further
opportunity to comme`n on how the requirements are to be met.
lam
,-+
((D
in'
56
om,
It may be possible to modify a traditional 'work and materials' agreement where it is

desirable to make the contractor responsible for design of part of the Works. For
example the Standard Form of Building Contract (SBC05) now incorporates provisions
for a Contractor's Designed Portion. Work such as piling, roof trusses etc. could well
of such an agreement,
wish to sub-contract such work, it would
design. These provisions, however, should
design obligations for a substantial part
original contract into one of a design
be made the subject
thoug
;h
vi,
Basically such contracts concent

suitab
contractor and are particula
requirements. There are man
designed by the client's pr es
major design role, to also eptM
out and maintain the operati
of a
nrrdi- q Q the
perhaps playing a sub
ill hav
the majority of such cases, deve
nts,igin
the
of a
wa
bv ffectivaw
faith
larg
tractor
ponslit'
pt
Jes
f intr
n.d
pertise of the
with complex
ement of a building
addition playing a
ement obligation to fit
cific period, and even
ing of the project. Clearly in
orms of contract specially
drafted to suit their requir

forms av
appoi
,,The c
am, and d ring c n

works ntra tors.
it
manage
part o
should preferabl
can
advise-she
uctid
nal team, and also a management

pre-construction stages will be as an
ruction it will be responsible for executing the
nt profess
in
actor' involve
is
possible o make an early start on site and achieve early

xibility it allows the client to develop the design during
matters of detail can be adjusted and finalised
a
ract to be successful there must be trust and good teamwork

professionals and the management contractor. The latter
ted no later than the outline design stage. The contractor
signrogramme, tender action, delivery of materials and goods,
pro ra m m es.
The ma agement co tractor will normally make a written submission which includes
ana ment fee, and will be appointed after interviews with the client
a propose
and the professional team. The fee will include for the total management service,
expressed as a percentage of the total project cost, and for a service to cover preconstruction stages should the project not proceed to site.
57
sfpf
of a c tract
roje
ec ation. The
ya t sts
ert
lat ,and
o
The management contractor undertakes the work on

prepared by the quantity surveyor, project drawing
client accepts most of the risk because ther
si
.+n
tht
programme. Competitive tenders for the Work

usually, though not always, be lump sum coq
an bills
f qua
There is a Standard Form of Management Co tract issu

the Standard Works Contracts and an Agr
r+,
works contractor.
Construction management
Again, the construction manager
paid a management fee.
ntracts, although
One basic difference from a ma gaaeme
ana
the constr
irec between the client
arranged and administered
t a greater measure
sense t k aives
and the trade contractors. Ithou
risk. The construction
all of
of control, it also means tha he or he a ccepts vi
manager is a coordin or, a d us ally canny
e hat the project will be
ctior
.-r
(D'
e proje, t an
risk. 0 viou
Construction many
contracts, b
likely
o
expertise
is
mentems t
rk by th
experience commerce
:l1
standard orms available
(Q'
th
have crease in popularity over management

proc rerr nt method has been undertaken by
b poke a reements. There are now also a few
is usi
struction ma agement.
nage; or}struc
development of the management approach, offering a
a single source. It can be led by the contractor, or by
is only likely when the design aspects of the project
The la
,n'
ice fro
me
,^+
fl,
ore rece
fal integra
a
svailable as yet, and developers or contracting

ially drafted forms. Architects involved in this kind of
lawyer to check forms, and advise on the terms.
de the scope of building contracts, a nd is the subject
special agreements.
elist
TisJ
Ther are no
organisa
work should
maher
Maintenance is
of facilities
+-'
Contracts where the Architect administers a series of separate trade contracts where
there is no main or general contractor, may also fall into this category. As well as
being the designer, the Architect assumes the managing and coordinating roles for
the project. This arrangement sometimes occurs with fairly small projects and is a
58
quite traditional way of working. Trades cont

client and the firms concerned.
ordinarily be
diet bè
Choosing the type of contract

trying to decide which type of con act to`
or herself (or others) a number of q stions:
itect
In
orrn
What is the nature or category
in
rk?
completely new
Comment: is it predominantly uilding
istina one
ork, maybe of a
building or an addition to an
Is it
ncerned with new
of a
oricuil
specialist nature such as re
alter
? Is its
allj bbing work, perhaps
uses for an old building,
olvin
sera
of
b which form part of a term
on a 'one-off' basis, or
fish
=r'
maintenance program
Q.
Who is to be resp 'nsible for esign.

rchTtect as lead designer and the
st entirely-* th th
Comment: is respo sibility
the
be dir ctly involved in any important
professional design ea m
re to e signifi
ign
t from specialist sub-contractors
aspect of desig P is
or suppliers?
ccnnrr
allow// and
ture
`mighie desir rile to carrr

of be possi le in
etimes o
ome
gar
exploratory work before going to tender,

ent. With work to existing buildings, problems
t after ite operations have started.
e
prepare
there
mme
ecessi
made'-crh the
information at tender stage?

for an early start on site mean that it will have
or approximate information, to be replaced later
fu,
instructi
t docu
is ar
eeded for a particular type
of contract?
hich can best be shown mainly in a drawn form? Are bills

roj ec
ent: is
S
uld the specification be a composite document which
or schedules ne
includes
des riptiVe sections, some scheduled and itemised, and some with
at is en to be the status of the respective sections or documents in
ofconflict r discrepancies?
Q.
What is t
et
d of selecting the contractor?
it to be by a direct negotiated approach, or by competition? Will

Comment:
tendering
be straightforward single stage, or is two stage tendering the
competitive
only practical answer? This might affect the information to be prepared and will affect
the time needed.
is
59
the client able to state his requirements precisel befoT wor, tarts:
des tan cha es
Comment: is it desirable or necessary to allow for adjust ents
during the course of the work? What flexibility is eeded{ nd he n e th critic
times for final decisions?
Q. Is
v4=
ore
st rts? '
the client need to know a precise Co tract
is construction cost of second Kv import
ce
ear
omple on
r
rental of sting
e
deal
(because, say, large sums of money are tiedo p
premises, or because of dependence on cono
ur
3(D
Q. Does
Comment:
E
Q.
20'
60
tracfor, o
v.`
Who is to be mainly responsible for c Q rdina#g

Comment: is responsibility to rest pri a
w the
to reserve the right to nominate s cialis8 o a
c
have work carried out by others whils
e con
is
sit
th
client wish
purch sin deals, or to

stilt inl Qsses on of the site?
Decisions on the preferred procurem

on the contract types which might be
contract to be used should d
particular project, which need
described in the contract form
events which might arise
needs therefore to be base
of prejudice, doctrinaire alleg
rounding the
and procedures
ons and foreseeable
he choice of form
rVand not be the result
;,o
,-
='O
onclusions
ual forms of
Some contract arran ments,

novel procurement r be proje
use of specially dra ed fo
familiar.
ments which might involve

xity, could well require the
of co idera
whi
y of architects are likely to be

orms of contract should prove satisfactory.
as b en to introduce option clauses and
table for use in a wider range of
,
more
ecent le slation and changing practices in the
constructs o7ndust
has ay
a-Fout a considerable increase in the number
an be c egon d
of fo
being standard. As a result there is now a
hd the ecision about which form, or even which
co iderable
on o
c mbina
is likely to b the most appropriate, becomes increasingly
fficult`to make.
For most buildi
in
involved, one r
ec
However, t
tend ncy
ecent
ake
suppleme is to
situation The
resp
blishe standard form which will satisfy the requirements, or will a

went be needed?
ff_axfensive am dry
eded, or if a specially drafted document seems advisable,
then the matter
e referred to the client for appropriate legal advice. An
mig t be small job in very straightforward circumstances which could be
e%cepti
adequate
ov red b an exchange of letters. Even so, such a task should never be
undertZe n
a standard form which uses widely understood terminology
might
ble. The in dustry has addressed the need for agreements which
can be used by consumers on domestic work where no consultants are involved during
construction, and the JCT home owners contracts, for example, are true consumer
contracts. In all cases care is needed to ensure that contract provisions satisfy the
requirements of relevant legislation.
th re a
-ti
iallt-
r-.
((DD
Q. Is
lid
61
Which contract form?
Q.
Q.
What standard forms are published, and whic

appropriate?
Chapters 6 to 13 below set out and compare, un
features of the forms most commonly in use today:
if the contractor wants to use its own orm

The client should be advised to pass any suc
ocumen
for an opinion. Even simply worded and a
ly
ar d
weighted in favour of the contractor's ow
ndNoe risk
What
the client.
Q.
What if the client wants alteration

This might in effect make the cont
oas
darfor
could f
e construed
contra proferentem. The basic rule
ever t
aame
is w ich might have
unintended effects on othe r
ses
he
of the whole
document. The Latham Rep rt recomr
ies
the construction
process should be encoura dto use s andard
rms
endment. Where
there are exceptional reason for s ch amendments, he Ark tect should make sure
that the client is aware of an
is the ris
should be dealt with
en
by his or her legal advi rsis the p ctic
point that ad hoc alterations
often lead to inflated ender
ices the risks.
and
as
0_0
ificant in`f'nce, a
is some mesa matter over which there is little
esult of t
need 6
mply with the standing orders of an
authority, or, b follovJ
fficia uid ce on Procedural matters. Several standard
forms of c tract
in alt
pu
ative v rsions, for use by either the private or
the publi sector 4
tabl The esent tre d is for forms in only one version which
can be use
egar
f sec or, ande di inction between what is permissible for
priva
public sec r use is no
ecoming more fluid.
fa ly
rk for government departments was invariably

orks contracts, then the responsibility of the
nt. Today the situation is less clear cut.
fl,
r
sth
r
c
out under one o
110,
ar ent of
it
fl,
L^1
ontra
fl,
mar
((D
Unio
30)3=`
now identifies three categories of authorities: central

hich seem to include NHS Trusts); sub-central
government bodie
hic include local authorities, police authorities, universities
etc.); private bodies subsidised by government (e.g. Arts Council or English Heritage
grant funded projects). Secondly, there are apparently no absolute rules about
whether these authorities should use the GC/Works contracts in preference to other
forms and the question is left fairly open-ended. The Latham Report clearly wished to
see their use reduced in favour of the New Engineering Contract, but there is a
the Eur
government de artments
62
considerable body of opinion in favour of co

would appear that most departments have
JCT, NEC or GC/Works forms.
ne
use o
vorKs-zo
fl,
discretion ver w
The GC/Works range of forms has been x

and all the forms have been extensiv, ly revi
They a
recommendations and recent legislat
wolf
Office, and the forms can be used
ther to
rprocur
ount X
in.
inoth t
Local authority requirements

The public sector (or, more
own version of the JCT Sta ar
the contract is referred to ;'the
provisions peculiar to local gove ment
and public versions h
au
ritii`bk
now th
ow
t/the o ract
com
.as
AZ
fd many years had its

rson administering
inistrator', and some
nt, the need for private
to take into account the

work for the pu lic se ;ua there m also
r client body. Some have firm
published requirem nts of the particular de tmen
nd
for m what a
e insist are made and procedures
views on the ch
administration.
c on
ning c tr
which are to
In
ing
appropri to form of contract, to be thoroughly
never of course be the justification for
miliarity s
effo to ep abreast of changes to published forms and
tract a ministration procedures.
tant,
it
en 96nsi
its pro ions.
es
time a
fects
,-+
make sure hat the editions of the contract forms and any
urrent issue and compatible. Checks are also
ents a
ure that
'contract administration forms are current and
form of building contract being used. Pads of forms can quickly
d it is unreasonable to expect office staff to check these things
It is for the contract administrator to check such matters.
becotne out
Personal prefer
evit bly some subjective element in choosing
architect
form of contract. An
eel a )personal allegiance to one or other of the professional bodies.

le, ACA m
hers might understandably incline towards an ACA form, while
For exa
ASI membe
rip
feel a brand loyalty for their published forms. A majority of

architects, mindful of the RIBA representation on the JCT and of its leading role
historically, might instinctively turn to the JCT's range of standard forms.
E
Of course, equally it might be the client body which has strong preferences not only
about the procurement method but also about the choice of form. Developers and
63
fl,
might stipu
members of organisations such as the British Property derati
forms which contain certain conditions. A project nanager mig adv theme
a form 'based upon' a well respected standard
rm
ally airl oos !), ora
ich
colla
agr ement
powerful funding body might require terms, in
necessitate considerable changes to those in t
ntract.
I
foi
Notwithstanding, the advantages of using a standa

overstated. Modern forms drafted by expgrts
d
should result in fairer conditions and faj
surrounding the choice of form, it sh Id be the
a
analysis of the situation - an exercis
fess
canno
d hoc
alter
th circum.7ta
hou
As discussed above, the choice of buil
ve implications
+-'
'r0
for the contract for professio

s
ognised this by its
e Lat
including a total
recommendation for a co plete fa mil of
dard
matrix of interlocking cons Itant '
ements
d con
cts' Publishers of some
building contract forms a o p v ide comp
u b-c6 tracts, and ancillary
documents including c
ajority of consultants at
ulta t agr merits
present seem to pr fer
po tin g ocu
blished by their respective
professional bodies
The form of buil ing co ract hos
overlooked when aIculatl
the f
for
have sig ficance which should not be

al services relating to contract
le, SBCO
dema
tha
thosE
.'^
.,_.
airly sophisticated procedures likely to

d under, say, MW05. The type of
Kt formivhich it s proposed to use, needs to be taken
id alwa ys assuming that the contract choice is
administratio
be far mor
contract,
into acc
known in
with
mn
tforward traditional lump sum contracts, there could be

eed t be borne in mind. For example, it might be expedient
t arr ge f
nary
eli
enabling contract to cover investigation work,
de oliti
ork, advan d . e wor etc. ahead of the main contract, and this should
not
fees; or again, it might be decided to have work
overlooked when a es
carried
a nu
ber f parallel trades contracts with the Architect assuming
a management
ordi ating role, and charging an additional fee for this
Eve
ar
cial facto
tly strai
whit
a"'
4--
E;
..O
The services provided acrd-andfee appropriate will always depend on the nature of the
work. For example, work on the preservation or restoration of historic buildings might
warrant a considerable departure from the Outline Plan of Work stages, with a great
deal of investigation and reporting needed in the earlier stages followed by unusually
frequent and detailed inspections both before and during construction.
64
Another matter which often brings close lin

contract for professional services is design
design liability to an extent agreed an
professional indemnity insurance purpose,
any liability that is more onerous, for
incautiously entering into some coll
when acting for a contractor involved
I
vii
65
nal
66
The Joint Contracts Tribunal Ltd

Major Project Construction Co tract 2
The Joint Contracts Tribunal
Standard Building Contra

The Stationery Office
GC/Works/1 With Q antities
The Institution of Ci
NEC Document
eers
Engineering a,
r
roject
proach.
Contra
C
nstru
9N,n
'
tract
ght of
wocurement.
also b
f the of
itional
osition
is pTaced
the list because it is a relatively new and

necessarily, it will be for a lump sum
ri-satile enough for use with either traditional or
first
ally, though n
seem like)
form
listed a ve, the last two are also suitable for use with
sum. T y are listed under this heading for convenience, and
as majo orms of contracts
67
68
Traditional procurement: standard lump sum forms
JCT MP05
Major Project Cons

2005 Edition
Background
it appears that for some time th
no longer entirely satisfied
act (JCT98) had
dertaking major
commercial developments. T, e se
ion is less of a clear
cut reality than it traditions was, a
.shes the contractor to
take responsibility for some det fed desi
ime requiring flexibility
and allowing the Emp "yer to
e
a me
The extended time scale
of major projects has frequently
d pro
phases, in parallel working
for both design and :onstr
, in payme
s relat
to progress and performance,
and with incentives f savi s in time
n th past this has often resulted in
employers
nditions in otherwise standard
sive
odificat ns
forms of con
b eskefor
p
sscessit
took t
the c rent
f introducing
(CD
a entirely new standard form to take

market. )is quite a significant departure from
ously
lishe
y JCT an in ormat, style and language, it breaks new
espects might ee to be something of a hybrid, although direct
C05 o D
/are of altogether helpful. However, it should
s
likely
those well tried forms of contract, if used
for
nstan
is intended. In other circumstances the two
might s o
appropriate option, and it appears they will
gside the Major Project Construction Contract (MP05).
ft
L.0
to
eec
Iteto
open and flexible but demands such attributes of its users. The
and language, and clear procedures make it immediately
att(active. How
is li
y to be an appropriate choice only for parties who are
ced
already expp
OD ations of a major scale, and who fully appreciate the nature
)and' rocedures. They may be relatively brief and uncomplicated, but
a hig level of understanding and involvement by the parties.
ocume
re
itfo
hET
elate
1)
O_(
MPF05 is much shorter than SBC05. This relative brevity is due in part to the use of
enabling clauses which avoid the inclusion of that which might be irrelevant for the
particular project, and allow the parties to include their own detailed project-specific
requirements on matters such as insurance.
69
6 Traditional procurement:
standard lump sum forms
JCT MP05
It is logically structured, but interestingly there are n 0 onven nal
ides
and the document goes immediately into the 43
ntract ondi ons hich
out under nine Section headings. The Conditions egin ith a un
II
all
definitions including the meaning of practical
4etion.
Unlike most other JCT forms, in MP05 the Cont

icularsappe aft
Conditions, at the back of the form. These r uire proj
ific in ryhation
entered, and the choice of option clau
be
icate i, l
es require
relating to completion by Sections, and i su ra
e
icula
ire-follow
Attestation. Understandably, this is a ontract to
as a
ec
The document also includes two
Th
t,.
artyRigh
of third party rights from the cont ctor i

of t
from the contractor in favour of a pd aser
an
last document includes the rWe--,-whi
gove
Contractor, and pricing inf mation.
elatin
Progress Payment schedul
analy
der, a
ricin
h
e in respect
d party rights
Document. This
payment to the
ce payment bond,
be attached where
relevant.
inl,grestir
ponsib
E m pJgye r';s,,R eq
ikion p
key
ional) desid
m e n ts;
ui
re
ure en u res
ntractor's d
r
may na
for
cialist
tar per
no ate t
er m
respo Bible f
Employe
their se
the co
im payments to
theln
the
there are provi ions for

benefits of saving
va
parties to agree upon;
will usually be made monthly, but may be to any

no provision for retention, but bonds or security
could be created if required;
T ere
o ret6ntio
ultant previously appointed and the contractor

performed pursuant to the Requirements;
Factor access to the site, rather than possession;
suraince arr
ub-con,
eration, bonus for early completion, and sharing of

improvements;
the Employer must appoint a sole representative who has authority to act in all
matters under the contract. Other consultants appointed by the Employer can expect
cooperation from the Contractor, but will have no authority under the contract to act
for the Employer.
70
JCT MP05
of comparisons, in this book t
employed for notes on the other forms of,
reflect the structure used in the actual con
For the purpose
g6is is
alto
CI
to be found in MPF05.
The form is published in one version

in both the private and public s
large commercial development
in f
it
rac
is
rele
oh
It is for a lump sum contracan

Particulars. The Employer' eq
is
is no specific reference to th se in th
accompanied by a Contract Su analysi
and the Proposals ar
on
Fl
ted in the Contract

uantities, but there
tor's Proposals must be
tion. The Requirements
is,t-obe
c&M include
ricinagr
able for use

mainly with
projects.
ment
is
founded.
00)
fl,
for a
ependen nd
contract administrator, and
administrative func ons r quired under he ontra are to be taken direct by the
Employer or theCont actor.
Empl er's
n ative may exercise all the powers
and function
There is no provisio
he
s obliged t
pletio
or wa
dinat
it
ipal
er is re
fort
y.,
Requirements is found, the contractor must notify the
t intends to follow. If the Employer wishes the contractor

,
that instruction
is
treated as
Change (10.2).
-arrWwithi the Proposals is found, the Employer will instruct the contractor
vision sho, Id be adopted and that instruction is not treated as a Change
a--_
which
(10.3).
for construction
onsible for the Requirements, and the contractor is not responsible

se, or for the adequacy of design contained in these (11.1).
Employer which
If a discr
is
that it has th competence and resources to act as CDM Coontra or, and esigner as required under the CDM Regulations
Vtdiscrepan
to proceedofherwi
complete the Project, that
L.0
e contr
execut.
of thg clesid (7.1).
Where the contractor takes over design, it warrants that it will perform to the standard
of reasonable skill and care appropriate to a competent professional, and does not
warrant fitness for purpose (1 1.3).
Should it be thought necessary to stipulate a fitness for purpose obligation, then the
71
JCT MP05
b le
Major Project Construction Contract Guide sugg

gives a reminder of some of the practical problem
provision (footnote to 1 1.3).
JCT
Materials and goods are to be of the kinds and
fit f6
Where described goods and materials are not
alternatives of an equivalent or better stand
standard, and acceptable to the Employe !will it-
arise
ds
he tended
rding
wit this
d o
'n the
urpos;
cur ble t
Itern
d th
Cha
ed
crib
The contractor is responsible for the repara
for re
these are to be submitted to th
as identified in the CP's, an as shown
Requirements or Proposals 12.2).
The Employer is to respond

either 'A Action', 'B Ac
The contractor
is
Iurtr
sign
ra m
nts to
Wing design
Zion' (12.1
ction
execut
accordingly (12.6.
o exe to ork
The contractor
comments are incoworate , and
The coif
submitted to
i
rkec
furth
tractoi
provided that the Employer's

copy of the document is immediately
ect to be paid accordingly (12.6.2).
to wofk mar d 'C Action', but must resubmit

he Empl er's comments (12.6.3).
i foyer and subsequently incorporated into

be by the
still responsible for ensuring that any design document
kith all the requirements of the contract (1210).
esign
repares is
in
acc
ntractor must oroc

pleti
(together with
es
arly and diligently to achieve practical completion

(15.1).
ompl tion by Sections, and completion dates for each Section

of da ages and bonus) are to be entered in the Contract
cr
The contract allo
Particulars.
The contractor must use reasonable endeavours to prevent or reduce delay to progress
or to completion (15.3).
72
JCT MP05
The contractor must notify the Employer whe
occurred and, if it agrees, the Employer will
RID
anion
actic Co'
actic
ertificete o
(15.4).
6:_
If the contractor fails to achieve pra

becomes liable for liquidated damag
'he co/MKIet
ntra
the
(16.1).
the m
With the consent of the Contr Et
u th
Project prior to practical compl in, an
17
part, the date, and the value o t e pa
Whenever the cont

likely to be delayed
cause of the
0-00
se
no
ss of the Project is being or is
ith notify the Employer of the
eticin of the Project (18.2).
ecomes awar
it
Ikel ye se ct upo
used by one of these events, it must

revise this a necessary (18.3).
tha
of r'eipt of uch n tifica on, the Employer must notify the contractor
comd
date as he or she then considers fair and
ent to t
pletion date should not be adjusted (18.4).
asons
dor
in
actor will be entitled

four are for 'neutral
y other persons on site,
acts of prevention by the
ay!
iously, an
No adjust_mRQt to
practical completion of the Project, the contractor may provide

n to support any further adjustment to the completion date, and
g that information the Employer must review decisions made
m or adjust the completion date (18.6).
M--
is
to ny caus
ontra or cons
pporti
s
non-
ctor
sue
tract, t
s. Of
Unless there is anything to

to an extension of time in r ect o
causes', and the other four rela to any
rform
valid suspension of
Employer. Interesti gly, advers
'
cmpletion date to bring
an earlier completion date is possible
(18.8).
Howeve , the Empl yer can investigate the possibility of acceleration by inviting
ontractor. The contractor must either make proposals or explain
proposa
om th
why it is impracticable to achieve an earlier date (19.1).
If the date
Employer
(20).
is
of practical completion is earlier than the completion date, then the

liable to pay the contractor a bonus at the rate entered in the Appendix
73
JCT MP05
3
Control
The contractor may not assign either the benefit
the consent of the Employer, and this would app
o,'burdeviof tVe-tontr'
design work (35.1).

However, the Employer may assign the benefi of the c
and furthermore the contractor consents
the Emp
benefit and burden of the contract to the
amdint
at any time (35.3).
buThir
Rights of third parties in general are e

part of the contract, in respect of th
The contract has no provision for a co entio

act
are to be administered direct b
er an
the Employer is required to a oint an
iplo`y is Rep
powers and functions of th Emplor nder th ontra
The Employer may appoint o

the Contractor, have no,,Ntho
mploy
"Istrato
ctor
tive
and the terms

tively. However,
o will exercise the
assur. d
er the cd
inting)and
with
nen
suc`f)
instru
s
,-+
others to gi e effea
z,3).
this may entitle the contractor to

s rrse to ai'Chang
However, not all instructions will be
i\exten ion of ti
h( e the contract states this, the contractor
This will not relieve the contractor of any
C+.
.-f
Where the contra or

Employer may enga
liable for th
Tent
of cooperation from
the Employer (21.2).
visers who,
be
is
aser or
da
eive
gations u
eE
findlrs
e.
show all t
If the work mate
tractor to open up and test work and materials. If

rdance with the contract, this will constitute a
goods are not in accordance with the contract, it
.1p
0)
fl,
fl-
Where work, m eriairs or gods are not in accordance with the contract then the
Employer may in uct their emoval, or may allow them to remain but with a price
reduction. The contrac r will not be entitled to loss and/or expense or extension of
time. The Employer may also instruct additional work necessary as a consequence, and
may also instruct further opening up and testing relating to similar work materials or
goods elsewhere (22.2). No such instructions shall be treated as a Change (22.3).
During the 12 months following Practical Completion (termed the Rectification
74
1CT
MP05
Period), the Employer may instruct the contr,
struztec then
Where the contractor does not remedy de

engage others to give effect to the instru
tified
After expiry of the Rectification Period,

issue a certificate to that effect (23.
Consultants may be pre-appoin
the
nWct
appointment will be novated
appointment and the propos Mod For
tion that the

f their original
and
e included in the
ct Particulars (24.1).
Requirements. This also requ
pro
to
The Model Form of Novat
ediatel
(24.2).
ontra
The Employer may a 6o recl ui th
subcontractors or nsulta nts) y inclu in g a
P
contractor may ch e, in e quirement Such
design or carrying
t of
orks (24.3)
solely
be
hinted
named specialists (that is,

of names from which the
ointments may be in respect of
`st
sponsi e un er the contract for services provided by

!und taken by named specialists (24.4).
Employer depends upon the novation of preof specialists being carried out in the
sand Tne app
consu
Fred under th releva contract clauses (24.5).
the contr ctN
`to
ppoirdconsult
ctor without he prior written consent of the Employer (24.6
ediately fo'WWing termination of such contracts, the contractor
loyer of the proposed replacement, and the Employer has seven
reasonable objection (24.8).
ithe eforE
mu no '
day in whic
contracto
ns fu
it
`tract Sum,
liable under the contract for replacement consultants or

ponsible for any delay and additional cost incurred (2410).
'4--
specialists, and e
AT exclusive, is entered in the Contract Particulars (31.1).

+-'
Pricingr6ent identified in the Contract Particulars is part of the contract, and

should contain the rules which will determine the method of payment, the Contract
Sum Analysis, and pricing information such as rates, preliminaries, and overheads
which can be used in the valuation of Changes.
The
Changes are alterations in the Requirements or Proposals which affect either the
75
JCT MP05
`^. -+.
Zt-j
-on
substance or manner of what the contractor is to pro

contractor is responsible for all further design
discrepancies and statutory requirements, Chang
required by the Employer.
th e ontra
exce
te
to
maip9v
,-+
Each party is to notify immediately the other if i

dered
rise to a Change, or any event occurs which hould b
ing
ratio
that ar6nstru
Change (26.1).
ent
No later than 42 days after practical c

provide particulars of any furth
aiu
of receipt of the particulars th Employer
pleti
spect
Eli
Valuation of a Change and any adjus

agreement, or by the Employer on
Contractor, or, if no quotation is re
valuation is to be inclusive of any
,..f
bas
ag
ense
a-3
ti,
0-0
,-+
etiord
co
q
on
3
e Pr
fair a atio
to 26.
ontractor may
and within 42 days
mo s valuations (26.9).
han
+ew rele
fl,
Tin
Other factors which may esult

adjustments
ontract Sum include
amendments to the Require ents nd Prop
s
`ted by the contractor
which will be cost savi gs
lue ftprovem is re ultin in a financial benefit to
the Employer (25), a a bo
a
able f6rearly ompl ion (20). The former will be
the proportion of a fy bene
as stared in the ontract Particulars, and the
latter will be at t
daily
table in t
Contract Particulars.
fl,
fl,
fl,
(D_
,-+
..,
nt deletions in the
to rece iv.Q payme
aer
Rele
(Progress Payment
Pricing Documen If no
rpm
,-+
,_..
fl,
by
Employe
itio
'+.
fl,
ma
articulars will indicate whether the contractor is

40(interim valuation), Rule B (stage payment), Rule C
ule (some other method). These Rules are described in the
Rule i selected then A will apply.
nom
Employe
included in
limited right to rei

rsement of loss and/or expense outside
ctor wishes to claim, it must give
Change If the
ide an
essmen of the loss and/or expense with
days of receipt of information, the
essay Within
t and otify the Contractor. Payment will be
3 amo
advice. ,-rayclaim for further ascertainment must be
in 42 days after practical completion of the Project, and
hese particulars and notify the contractor of any
ithin a further 42 days (27).
,-+
timely noti
informati
fl)
The contractor has

the inclusive
is tolra-e detailed application for payment not later than seven days
before payment is due, and the Employer is to issue a payment advice on the day of
each month as entered in the Contract Particulars (28.1).
The contractor
+}'
,-r
After practical completion the Employer will issue further payment advice at monthly
intervals, always provided that the amount due is not less than the figure entered in
76
JCT MP05
the Contract Particulars (28.2).
to state the amo

accordance with the Pricing Document), th
of any reductions. It should be noted t t
materials or cost fluctuations, althou
these
Each interim advice is
th
ract
ges, an
,-+
co
ny Ch
The Employer may withhold p

notice is given not later than se
states the grounds for withh
,-+
If payment is not made in
th6. ontra
n days befdre-die
corda
ounce's
,-+
attNb able
d that effective
ment, and which
each ground (29).
thract, iN
am
Final payment beco ees due w

ificati
the Employer consi rs that r ea nable time
taken place. The E
loye
us issue a fina
binding on the part Fes in elation
in
referred to ad
orI ration w
fi
30
as been certified, or when

wed for rectification to have
certificate, and this is final and
! subject to any dispute being
days (28.7).
ligati
requir
dertakWs regu tions a6
Lng the for,
Ompk,w.Ah all s tutory requirements and warrants that the
ept for that ontained in the Requirements) complies with
nd 11;
make any alications and give any notices required by statute

of relevant documents to the Employer (9.1).
en
mployer,
requirements (9.2
es in stat
announ
(10.5).
te that specific fees and charges are the responsibility of

pay all fees or charges in connection with statutory
trwill
bligations that arise after the Base Date and were not previously
ken into account and will be treated as giving rise to a Change
.-.-
fl,
The contractor is appointed as both CDM Co-ordinator and Principal Contractor for
the purposes of the CDM Regulations (1.2). The Contract Particulars also allow for
the name of a CDM Co-ordinator previously appointed by the Employer to be
entered, and if this person is to be retained then the contract would need amending
(7.2).
77
JCT MP05
The contractor indemnifies the Employer in respe

damage to property other than the Project, alway
course of carrying out the Project and are not
the Employer has responsibility (32.1).
.,r
0-0
The Employer indemnifies the contractor aga' st

lia lity, loss, clai
ens
or
proceedings arising under statute or co
la
in
ect f p sonal in' ry or
death and damage to property other t an the
e
a
mi
s as
t t these
arise in the course of carrying out the Pr 'ect arare
to
e ac
r neglect for
which the Employer has responsibili
,-r
Most major projects are likely to

contract requires the relevant documen
Contract Particulars (33.1).
Either party may be require to pro '
nd main in cov
an`dAhe other party may
request documentary eviden e (33 2). Failure to p o
e sati
ctory evidence within
seven days will allow tl, e of r pa
to tak out sur c and recover the costs
involved (33.3).
t provision and the insurer

ement these and this is not
0(D
-i.
Where compliance
requires remedial
treated as giving
'y.
Where cover, ga -tterorism is requir d

ceases to be available, the party
responsible or that in ra
must-n of y the oper party (33-7). The risk then rests
with the
+'i
Where pr
ssion in mnit insura e is r quired, a relevant deletion is required in
the Contract rticulars, an the limit o
demnity is to be entered. The contractor
ma be req ' e
take ut and maintain cover until 12 years from the date of
pr ctical co pletion
the
ect, always assuming that cover remains available at
co
cia
so
le
tes
-2).
iiay, by sui a further notice, terminate the employment of the

contractor if, afte
'
g giv n the contractor 14 days' notice of a material breach,
the contractor s failed to emedy the breach (38.1 and 38.2). The contractor's
employment may a
terminated in the event that the contractor becomes
The Emp
insolvent (38.3).
Material breach by the contractor is defined, and includes failure to proceed

regularly and diligently, failure to comply with an instruction, suspension of the
Project, breach of the CDM Regulations, breach of provisions relating to named
specialists or pre-appointed consultants (1).
78
JCT MP05
Upon termination, the contractor must
documents, and must not remove any mater,
permission. The Employer may then make
Project (38.4). Only when the Project has
for completion have been made, withi 'six r-6
issue a payment advice (38.5 and 38`
The contractor may, by issuing a
having given the Employer 14 ays no
failed to remedy the breach (3 L1 and 39.
employment in the event th
plo
Material breach by the
/ir
enge
t
mee
ents
o oth
termi tion, r/k
r,
a'
ateria
e c
eco
acto
es iftsOivent
t e contra
equipment from sit without delay,
Upon termination,
inateVhe contractor'
st ted in tie Co
ecifie
eril, ciXI co
Either party may ter
pkiod
suspended for
include force
t pro ide the Employer with all design

ant or eq pment from site without delay, and
nation the ,con actor

s,
a
rem
ccou
gs
aAfully
letion,
n
I,
ntracto
Project
to led. Note in particular Design Documents,

uirements and Proposals (1).
are set
ncluding a gender bias clause, and that a 'person'
firm, partnership, company, and any other body corporate (2).
ccess (not exclusive possession) to the site or parts of the site,
ree to have work undertaken by others at the same time
Dloye
eaves
asthe
t if the Project is substantially

rticulars due to causes which
(1
ns o man-made obstructions encountered by the
give rise
contr actor will only
vhere they could not have been foreseen (14.2).
in all desi n documents prepared by the contractor remains vested in the

contractor a
e Employer is given an irrevocable licence to use them for the
purposes of the Project. Where the contractor does not own the copyright in any
design document it shall procure a licence from the copyright holder (13.1 and 13.2).
Copyrig
The stated period in which acts are to be done will commence immediately after the
specified date. Christmas Day, Good Friday and bank holidays are excepted (3).
79
tD
JCT MP05
_(D
All communications between the parties relating to

or may be made electronically by the procedures sp
(5.1). Any notice under the Third Party Rights Sche
be given by actual delivery, registered post or r
9 Disputes
r
do to th Pro' ct (nole not s ply

e s
ediatio if the
7itte to
a ce
the ro ko of the
-+,
Disputes or differences between the parties in

the customary 'arising under this contr t
parties agree, or referred to adjudicati n
relevant Scheme for Construction Contr
Although the contract states that /he o ecti of

binding agreement, the only final re lution f di utes
proceedings. There is no provision for
00
80
tion shbu(
o
appe
to reach a
to be by legal
JCT MP05
This contract?
If considering using MP05 remember that:
ra
the Contr tor, t
er th their
i-contr for , are e
rie ed in
bstantial
uir d to
poi t a Re esentat' e who will
o he
plo r u er the c tract. Other
fa
horit n
the ontract to act
o
It is intended for use where both the Em to
respective teams of specialists and

commercial projects. The Employer
exercise all the powers and func
advisers may be appointed but
on behalf of the Employer.
is
are
rip
ha,
-+,
The Requirements and the

important that both are fu
be remembered that this cont
what is to be delivere
considered for inclu on are hel
is
nner
eqi,
ements stating clearly
is points which may be
de
in
is
-format
ormat but it should
rescri
'
t on
ve
contract, and it
heart
ere
for this contract.
for esign by the
loyer, shown and described in the

ntr tor. The Requirements may
onsu antspre-appointed by the Employer
e lis some of the matters which need to
be covere in th
no
agree nt, w ich should become part of the
isb to conside using the CIC Novation Agreement).
Req u rem nts (th part s rr
Normally
li
ty is t fit of
e care and skill, but the Requirements
could i
fitness for, pu rpo e bligation although there might be practical
iaht be i imio rta nt atter in the case of PFI projects.)
diffi
fl,
The contract provid
design
cto re ngages
(DG
u rth
.=+
Requirements, with
stipulate that
under a nova rion agr
_n+
(1)
.-f
.=r
mar-
an
fl,
+-.
O^^
articulars re uires entries on matters such as the Contract

m, Re ire ents, Propo Is, Prig g Document, names of Planning Supervisor,
Fun
adju
ator, ntries rely
to the application of option clauses such as those
0
ou
conditi s, liquidated damages, bonus rates, pre-appointed consultants
and ame
eciali
cost savings, payments, insurances, professional indemnity,
S
orxuff
r and shorter than either SBC05 or D1305, and which can

of the project. However, it should be approached with
becaus alth ugh the openness and apparent brevity of the Conditions is
admirabl , prb-ression and sometimes legal advice might be advisable to produce a
reasona
balance set of documents. The contractor assumes more risks and
under other JCT forms of contract, but provided that the risks can
responsibilitie
be fully identified and priced for at tender stage, this should not present a problem
for experienced operators. What effect this admirable document will have on the use
of the more traditional JCT forms remains to be seen!
tailore
(ND
E-0
vi'
.c
c.^
This is a form whi
81
JCT MP05
JCT
JCT
Major Project Construction Contract 2005

Major Project Sub-Contract 2005
References
JCT
Major Project Construction Contract Guide
Commentaries
Note: these relate to the previous edition of the
Sarah Lupton
Guide to MPF03
RIBA Enterprises (2003)
Neil F. Jones
The JCT Major Project Form
Blackwell Publishing (2004)
82
1CT SBC05
Standard Building
Background
as the RIBA
on (SBC05) is
39, 1963, 1980
Contracts Tribunal
LL.
The original agreed Standard Form

Form. In many respects the JCT
direct descendant through

vii
a se
and 1998, although now pubs

Limited OCT).
to overcome rious
appeared over time in
the 1963 Edition, and,
re
se
reco so
the Banwell Report - in
particular those relat gto t he tr atme t of
rs. At the time it was felt
that JCT80 had strut a fair
ce betwe
the
rests of the contracting parties
and others involved. nitiall concern wa-s,
sed
some who saw the form as
being much longer th
its
edecess,
emanding to administer, yet it
quickly gaine acce
eas th orm
d for major building projects in the
United King om. S Opleme is
avail ble to cater for contractor's design
and, secti hal co pled ?1;
ther with d umentation for nominating subcontracto and s
JCT80 was drafted
wer
t to 18 A/rhend n the last of which was an attempt to meet

commend ions in the Latham Report of 1994, and to ensure
h Nrt
f the ousin Grants, Construction and Regeneration Act
tion and, ayment provisions. The 1998 Edition of the
co olidated version of JCT80 which subsequently
((DD
((DD
nt edition of this long standing form. It constitutes a radical

mat, layout, language and content. The clauses have been
rt-g ouped and -n ber and the language has been clarified throughout. The
provisions of the
cti
Completion Supplement and the Contractor's Design
pple ent ave been incorporated in the form, as have the fluctuations
isions
omin ted sub-contractor provisions and the performance specified
work pr isions hav been omitted. The form contains a new design documents
submission
e, and provisions for Third Party Rights and warranties. For a full
e
analysis of the changes see the references at the end of this section.
Nature
to over 100 pages. The Articles of Agreement include Recitals, Articles,
Contract Particulars (to be completed by the parties) and an Attestation. The
SBC05 runs
83
JCT SBC05
xne par
t cariee
CND
0--
'c
--O
numbering of Recitals and Articles may vary depen

SBC05, and if incorporating any separate amend
to achieve consistency.
r.,
.-+
The Conditions are set out in nine Sections

iorl,1 deals witV defin
interpretation of the form. Section 2 sets o t the c
n s,
including its obligations with respect to
ogrammi
for
adjusting the completion date. Section 3, vers he ntro
uding
the giving of instructions. Sections 4 an 5 de wit va
ion a
Section
6 with insurance, Section 7 with assi ment nd
Pa
igh
n 8 with
termination, and Section 9 with dis
v
les a
included at
Sc
)ms oluti
the back of the form, which cover
as
sign su
n procedure,
insurance options, bonds and fluc
tions:
o,-
in'
Ce
Obviously such a contract is n

asy'read'an the)
ptions need to be
considered with great care.
mpl ,
ontra
equire very careful
consideration of whether
ses co ri à, into
ies/does not apply
category. Many of the cla
lude not onl
con tions but also detailed
procedures and rules. some
especi y th
rning extending time or
payment, might app
ut they re in nded to secure sound practice
and should be foll
iculo
the
;--r
-n,
Despite its lengt and co ple : y,N

basically si ple in its overall structure, and
the changes to Joe late
ition, ,An par
more logical layout, with the
grouping of so
erial under hedu
ake it much easier to navigate than its
predecessor,
r with
ratio f new provisions, may go some way
e int
towards r
t flag
popu rity.
1
e versions
use with quantities,
without quantities, or
s.
T e W
p fes
uld only be used where the Employer, through its

d at the time of tender a full set of drawings and
bill of quantities to S M
Information Release Schedule is part of the
docu
tatio
a
tte
t to identify responsibility for any further information
an
which might be ness
to mplify the contract during the carrying out of the Works.
sion
es
consultan
fl,
prove
Q_-
CND
ua
+.,
l./1
-4,
The Without Q ntities ver on also requires preparation of a full set of drawings to
be accompanied ei
a Specification or Schedules of Work. In order to give
valuation of variations and fluctuations a substantive basis the contractor is also
required to submit a Schedule of Rates or a Contract Sum Analysis; this should be
provided, and the measure of detail required of the contractor is often stipulated at
tender stage by the Employer.
,-+
=moo
.'^
vii
84
JCT SBC05
All three versions now incorporate sectional
pleti
and -ct-Contrak4o'r
Portion, both optional provisions. The first Ilows f
completion of the Works, and for setting
ate for li idat
dam
each section. The second allows for the c
r to
ign a identif' d
r
of the Works, and includes a new pr edu
D
ubmitti
its d ve
in
information for comment. The parties hould b a r
to se u any rep,
as to scope, format and timing of such
bmission
t Contract Par
parat
I
In response to the Employer's

Contractor's Proposals and a C
relates to the Contractor's D
variations.
th
ontr
at Offof t
equir
Anal Ys is
Po rtf
Thi
,Jatt
as
SBC05 requires the appointmm

to g
ct
the various contract
terms. The Employer w
II
oint a
ntract administrator to
itect
this role, and such a
rson wi ll b regax ed as
den and impartial. SBC05 also
provides for the Em loyer t
ploye
oint an
esentative' to act on behalf
of the Employer. A f otnot emphasises
ndam tal difference in roles.
for
rryt and comp
is
fl,
an and Statutory Requirements (2.1).
ly
with al
'M
st comp
tions
of any Contractor's Designed Portion, and

ct relating to the integration of the Portion
The c ntractor's liability for design is limited to the
of a
rchitect or other professional person.
6
(2.2
re
Archi
-.O
?mrat
goods an workman
are to be to the standard set out in the bills,
equire ents or Contractor's Proposals as relevant. If stated to be to the
chifect's sat action, hey are to be to the Architect's reasonable satisfaction. Where
are to be a standard appropriate to the Works (2.3).
r
slue directions to the contractor to make certain that the

be integrated into the design of the Works as a whole (2.2.2).
1.1
liabili y for design is limited to exercising reasonable care and skill

owever, y/here the contract is for housing work which is subject to the
ve Premises Act 1972, then this limit of liability might not apply.
tin
r+,
.i
The contractor must be notified if the Architect detects a defect in the contractor's
design, and the Architect must be notified if the contractor considers that its design
will be adversely affected by an architect's instruction. The contractor's obligations for
design work are otherwise not reduced (3.10.3).
85
JCT SBC05
The Contract Documents are to be read as a
Conditions and Appendix prevail (1.3).
the case of discrepancies in or divergence

instructions must be given (2.15).
In
The provision for dealing with a discrepan

or dive
Requirements, the Contractor's Proposals an he Apalys
Contract bills, except where specifica Xy stated

accordance with the Standard Metho of Measu
the
'se,
t,
The contractor must be provided wi

ies
e
Information Release Schedule by t e stat
(2provided with such further drawings detai
The contractor must keep on 5ite_b
The contractor is required o submit d

a
relation to the design (th 'Cor
Contract Documents, or a reas nably necesa
k 1 (2:
Editi
he cont
1).
refe ed to in the
must also be
ecessary (2.12).
d (2.8.3).
o
Docu
ents it prepares in
as set out in the
mission is to follow a
n&),
e su
42).
turnip the design documents marked either 'A

ntractor is to ex ute work marked 'A Action'
or 'B Action', in e cas
the
it
tincorpor e comments by the Employer.
The contractor mu`streviseNVawing marked
The Employer is to espo n by
Action', 'B Action; or 'C A tion
I
hedule 1:
executing an
er relieve/the co
copies 'ot hi master programme as soon as possible

equire a pre minary draft with the tenders.)
ie CDM
here
5)
gulati
airyany need to
the Employer to nominate a CDM Co-ordinator and

ctor. This is also a contractual duty (Articles 5 and
a r placement is also covered (3.26).
on
ant
Dates for posses

d co pletion should be entered in the Contract Particulars.
There is provi on for div' ing the Works into Sections, and setting separate
commencement a
co
letion dates, and rates of liquidated damages for each
section. All provisions relating to timing, for example extending the date for
completion, apply separately to each section, except that there is only one Final
Certificate.
i
a,.
The contractor must proceed regularly and diligently and complete on or before
86
JCT SBC05
completion date (2.4). Early completion is an opt 6n for
achieved, issue of the Practical Completion ertifica can t
the Employer is not obliged to assist the ntract in tern
iori
exceedir)o six
fl,
fl,
n-0
An option clause for deferment of po

subject to an Appendix entry (2.5).
-'
(ID
fl,
Notice of delay must be given in writin

yt
Co
toge
supporting
information including its estima
ke
ffect
?aMpletio (2.27.1). The
Architect is required to conside a new c
ion
te, ar
the contractor
Thi
ref
of his or her decision within 12 ,weeks -28
nt events' are listed
which are grounds for an e e
f tim
29 the
nt of which relates
to any impediment, preve tion o
t
mploy
e interim decision is
itect
la
th
subject to review by the
we ks following practical
completion. Whilst it
reduc
ion
y awarded, the original
contract period cann, t be reduc
there i
visi
for accelerating progress,
dures foN ealin
except by agreeme t. The p
elay and extensions of time
are detailed and ne d to e followed witb
e.
i
owere
he contr
e con acto
chitect (2 3) an
foyer
ctor
-20).
plete within th contract period is certified as a fact

ges may be deducted or otherwise
T32)he
mployer is obliged to give notice in writing
.
rrD
the E
bec
i,s,certifby the
ik oblige
d
Control
o asst -ime
without written consent refers to 'the contract, or any rights
rovi s for Third Party Rights to be assigned to purchasers/tenants and

IIIQ
funders. The requirement to grant third party rights to identified persons, together
with information regarding limits to the contractor's liability, must be set out in the
Contract Particulars. The rights are set out in Schedule 5.
The cont
fl,
instead.
partial possession (2.33), and where the Employer wants to use

ed works for storage etc., this is possible subject to proper
The
art
insur&me
to rectify defects (2.38) unless the Employer
agrees`"propriate deduction
The contract provides for collateral warranties to be provided by the contractor to

funders and purchasers/tenants, and by sub-contractors to the purchasers/tenants,
87
JCT SBC05
funders, and the Employer. The requirement to enter to war antie
in the Contract Particulars, the relevant persons nd su
together with information regarding limits to the ontrac or's bil
ust
)6_contractor-s
beams
iden
IA
The warranties to purchaser, funder and tenan

CWa/P&T, CWa/F, SCWa/F and SCWa/P&T. T
relation to the Employer, although this is no eferred
Sub-contracting any part of the work, in

written consent (3.7.1), and the contra, for is r
sub-contractors. It is a condition of any b-letti
certain provisions (3.9).
on the JCT/stand
iblish
Wa/E
tontr
E%
O:3
ate
Visits, inspections, etc. by th Architect or clerk

or affect the contracto 's
ci'n5ibilit
Contract Document (3.6).
The
i
flucl
rovisi nal surds
for is aauire
to permit the pre
t#, alth
the Archit
inspe
the Arc
d in o annexed
to the
g' to carry out

Ar
tects who use this
c oice at the time of
h' auctioning.
n
illa
of in any way diminish

Works in accordance with the
inriting,
(3.15) and e
form.
he
The contractor may sub-let to pers

list
Contract Bills. There must be not less f n thre
abl
the specified sub-contract v
fired ti
711
might consider whether the l require th contra for to
submitting its tender, in or er to dtim rage so-c ed 'D
Architect's instr tions lust

confirmation of
instr tioi
are empowered, an these-may
t`he
altho gh this can mean written

early defines what instructions
iations (3.14), postponement of work
).
the site full time

the Emp yer's clerk of works. The clerk of works
or
e can issue directions which require
e a coYnpeten person-in-charge on
ials do of comply with the contract, the Architect can order

Ae (3.1
Where, after consultation, it is agreed that nonforrhiiqT work sho
ain 3-18-2), then the Employer is entitled to an
riate deduction. Th
ct is empowered to order tests and inspection, and
n-co pliance in similar work elsewhere is covered (13.18.4
ere work
it re
The contract req

s all wo
to be carried out in a proper and workmanlike manner,
and in accordance wi
e Health and Safety Plan (2.1). In the event of failure to
comply, and although this might under other circumstances be interference with the
contractor's working methods, the Architect is empowered to issue instructions (3.19).
The contract does allow for work under the direct control of the Employer to be
carried out during the time that the contractor is in possession (2.7).
88
JCT SBC05
4 Money
ly
beadste
The Conditions provide for the contrr cto

including landfill tax, levies or contri utions p
(Schedule 7, Option A). Increases in the
st (Alabo
ccmanc
as net increases (Schedule 7, Opti
tions is
7, Option C), if either of these
ver
4er
--O
r+.
The Contract Sum is VAT exclusive (4.6) an

the Conditions (4-2).
e recovered
iculars.
rovisio
ai
or
,-+
O':0
in
h taxes,
of tender
les (Schedule
ed,`rtrM
Where provisional sums ha

contractor (3.16). In accor,
defined or for undefined
approximate quantity is includ
rdereo,
a variation has been
application of the v uation rule
e by
work
visio
be given to the
will be either for
arried out where an
's
are included, or where

the quantity surveyor's
(5'2
r be invited to s
chedule 2 Quotation' for work
addition, the cont ctor
which is the subiect o an ar itect's in ruct' n
a quotation, if accepted, would
the time implications and any loss
bind the cont ct
Pest cost f wo
The ork v ould not be carried out on this basis
and/orexpe e whi
was issued. In he event that the quotation is not
unless a c firme
issued to 'roceed with the work, but it will then
accepted an inst uctio
ation r. les and pro
ures (5 6.1).
be subject
In
ation
which is part of the Contractor's Designed
n of th Employer's Requirements and will be valued
odific
If th
Po
tte application for reimbursement of loss and/or

ontra1CV mus make
The grou s for
are set out (4 24) and include only
vv4
ov w hich e contractor has no control and which occur because of action
e b t
Emp
er. The procedures should be followed precisely, and the
tactor's p
writte notice and supporting information is a requirement
(4.23).
ns
ancation
4--'
Contract
ad nce payment of the contractor (4.8, an entry is required in the

icu'la rs) a nd this might be subject to an advance payment bond (Part 1,
6). The su is to be reimbursed to the Employer in agreed amounts and at
Schedul
agreed time
Interim payments to the contractor are made to the contractor following the issue of
Interim Certificate by the Architect at intervals as entered in the Contract Particulars
(usually monthly). Interim valuations will be made by the quantity surveyor (4-11). but
may arise from application by the contractor and his own assessment of the gross
89
JCT SBC05
valuation (4.12).
.-t
Interim Certificate must show the amount due,

t
calculation. Within five days of issue the Empl
writing of the amount of payment it intends to,
deduct must be clearly stated in a written no ce w
a
o
such action. This must be given to the contra
r no le
the
e
for final payment. The final date for paym
4
s fro
ate of issue
Interim Certificate, and if no valid noti c#s a
iv
e EZI
then
b
must be made in full. Failure to pay by he final
rp
of 5 per cent over current base rate,
cart aIso
th
ntra
suspend work (4.14).
Where the traditional operating of

ention
bonding (4.19), then this will a
terie
amount will be released at actical c
ton.
feren
There are precise procedur s to b --fe0wed in f

prep
tiorY of the final account
after practical completion ( ti 5). Is ue of the Fin
ificate within two months of
sending the final accot to e co ractor (a ays
that work to be carried
out at the end of th Rec
on Pe d has een s tisfactorily dealt with (4.15)).
h egard to notices, as those outlined
Similar rules apply
the Ffnal Ce ficate
above for Interim Certific tes, e cc
t the final dat for payment is 28 days from
the date of the rtifica
e
of-the Architect
is
onl
concltfsi_ve
ractL1.10
ices (2.1
The
omply with'a'll statutory obligations and give all required

entitled to recover fees and charges not otherwise
r is
(2.21
contrctor is to n ifs
hitect if it finds any conflict between statutory
req ements and the C
ocuments (2.171). The Architect must issue an
instr uc
a
e c tra or is thereafter not liable to the Employer under the
cont ract for any
- ompl ance with statutory requirements resulting from the
instruction (2.1
If divergences betw-eerrstatutory requirements and documents relating to the

Contractor's Designed Portion are discovered, the contractor is to propose the
necessary amendments, to be at its own cost unless one of the 217.2 exception
applies.
The contractor is empowered to carry out limited work for emergency compliance and
90
JCT SBC05
this will be treated as
#gly
variation to be value
The contractor is contractually obliged
wit t
>ly with
(D.
particularly, where the project is notifiabl

Construction Phase Plan and the healt
il
r+3
What a particular contract inclu

ep d to
Contract Particulars (for exampl K wh er
ti
amount of cover required, etc The Arch' c
call for documentary eviden
a 0< pass gthe
,-f
The contractor indemnifie the E

and injury or damage to
erty o
mini
backed by insurance (
the Contract Partic
in
'
ties
rec
d
or
respt of per
nt
fl'
18).
entries in the
the minimum
sue instructions,
cking.
injury or death (6.1
alw
to be
er required is entered in
oun
rks (6.2). This is
)-r-
If instructed, the c ntrac

take o
es insurance for the Employer
against the risk of c aims rising due t
uisa e. There is a list of exceptions,
and damage
no be at ibutable o an neg'Hge'nce by the Contractor. An entry
will indicate
er ma be req red 6.5), and the amount of cover to be
nt
provided.
treat
uranc
of0
(Schule
contracto
fo
xistir
3, Optio
esign,
stru
res a d the contents is a matter for the Employer
'mited to specified perils. New work in existing
and
still a matter for the Employer, requires all risks cover.
C)
--/,
to IeaJ
requi d to carry professional indemnity insurance to cover its liability

should be set out in the Contract particulars.
s_of
consequential loss arising due to design errors not covered
may be limited to a figure entered in the Contract Particulars.
a''
The contra
s
,-r
(Sch
be
isles where
w buildings are concerned and should
alue. It cary-Be taken out either by the contractor
tion A)#
e
ployer (Schedule 3, Option B). Normally it is
isk wi
contra or under Option A, since restoration under
riatio work
d will be valued accordingly.
reinstment
773
Insuranc
be for fu
fl,
.-e
'L-
the Cont act Particulars will show whether the Joint Code of Practice on
ion from Fire of Construction Sites is to apply (6.13) and if so, both
contractor must comply with it. In the event of non-compliance, the
insurers can specify remedial measures which must be undertaken. In the event that
terrorism cover is withdrawn and is no longer available, the situation and options
open to the Employer are dealt with in clause 6.10 as applicable.
'++
Termination
91
JCT SBC05
v,'
The Employer is allowed to terminate the employmen of the

ntr or by à ca+ ff
specified defaults (8.4). A warning notice may be sued
the rch' ct, b the
notice of termination is a matter for the Employe, In th case f
Ive
of t
Contractor, depending on the circumstances, th
mplo
might enter in
an
i
r+.
otion.
fl,
agreement with the contractor for continuatio

fl,
If no such agreement is reached, and in all o er cases,

Works completed by another contractor 18.7),
to ecid i
carried out and completed at all after de
con
of
(8.8).
ployely have
have the
cto
'
empl
The contractor is allowed to termina

n e
melt forpecifie
the Employer (8.9). Again, the proc ciures
e fol
meticu
of insolvency of the Employer, th contra
aye c
ter
employment.
.-+
Either party can terminate tl) employment o

(8.11).
The respective rights and d ories12) the parti1s
completion are set ou
ice
8 Miscellaneous
A list of definitio releva t to Co' s in sled (1-1). ules for interpretation are set
,Xnd that
out, including a g rider bi
ause,
6n' refers to an individual, firm,
partnership, c
nd any of er bodv
porate (1.4).
third
rights
nder the Contracts (Rights of Third
overed
1)
t this might be subject to reasonable
ps are conc ned.
Architect/has
der the exclusion of persons from the Works (3.2.1).
of the discovery of antiquities, the contractor is

to take all necessary action to preserve the status
12 ). The Architect must issue instructions, and the
`gained loss and/or expense (3.24).
>eca
ed
to inform the Arc

avoid di
an
9 Disputes
II of the Housing-Crants' Construction and Regeneration Act 1996 gives either
party a statutory right to refer any difference or dispute arising out of the contract to
adjudication. Article 7 of SBC05 provides for this.
Part
The procedure for adjudication is as set out in the Scheme for Construction
Contracts, subject to some limited provisions regarding the appointment of the
92
JCT SBC05
adjudicator (9.2).
The adjudicator's decision is binding on th
determined at arbitration or by legal proce
Article 8 establishes arbitration as an

the Contract Particulars indicate that
The appointment of the arbitrator
his or her powers are defined (
The parties agree that either
Arbitration is to be cond
Construction Industry Mo
Arbitration Act 1996 shal
s,
provided
apply.
rticulars, and
on of law (9.7).
005 Edition of the

the provisions of the
93
JCT SBC05
This contract?
If considering using SBC05 remember that:
Of
LA.
<<00
It is intended for substantial lump sum contr c

is available or us
without quantities. Work needs to be fully d cume d tende tage and
completion within a stated period. The con ;actor m3
e quire
desig
identified part of the Works, in which
m
be
def
ntra
Employer's Requirements at tender stag ! 0th
is the
with fully detailed design information; ideally at
r s
provided later may give rise to claims,
plo
is re
administrator and a quantity surve
If used for work in Northern Ireland

while for work in Scotland the
vers
be used.
Amendments are issued by the J

ro time to ti
The RIBA publishes contract dmiNstration for
It can include partial
ion, ands tional c mple ion. The completion date may
be subject to adjust ent if elays re cau
by a ran e on 'neutral events', as well
as by events whic are th respsibi
of the Employ, r.
k
It allows for sub-c

three names. A
whereby th
tractd
this 'listin
whether f
a list of not less than

no mechanism within SBC05
se any particular sub-contractor,
aspect of the work.
actor from
by
prov
an be requi
hin o r
there
is
uired relating to decisions on matters

(whether in lieu of retention, advance
the Works; Joint Fire Code; liquidated
fluctuations; and electronic communications.
are re
nd
ages; ad
ersta
ing of its pro
or note that SBC05 requires a comprehensive

s, many of which are detailed and likely to prove
nsuming.
o<3
SBC05 places mor,

Employer than some other standard forms, for example
MP05 or GC/Wo ks/1. The so etimes lengthy provisions are not always easy to grasp,
although the late dition
s gone a long way towards improving its clarity and ease
of use. The form is supported by a considerable body of case law, and many helpful
commentaries and guides. It is still probably the most widely used form for major
building work.
94
JCT SBC05
References
fact Gui
-contrail
ding n
1Cf
JCT
wow
.jct
rlier
Prac
itten
h JCT
Not
23:
(198
Pr
Note No
Reg
s (1995
Pr tice
e
28:
Pras
JCT
6:
ediation (1995)
ote (yellow covers):
n Contract Tendering
forms)
(')
Series
Nof
Building Contract With Quantities

Building Contract Without Quantities
Building Sub-contract Agreement
Building Sub-contract Conditions
Building Sub-contract with subcontractor's design Agreement
Standard Building Sub-contract with su
contractor's design Conditions
Contractor Collateral Warranty for a
Contractor Collateral Warranty for
Tenant
Sub-contractor Collateral Warranty for Funder
Sub-contractor Collateral War
Purchaser or Tenant
Sub-contractor Collateral arranty for E ployer
Standard
Standard
Standard
Standard
Standard
SaLu
Gui etc
RIBA
uk
Davi Chappell
SBG 5 Contract Administration Guide
IBA Publishing (2006)
James Davidson
JCT 2005 What's New?
RICS Books (2006)
95
GC/Works/1 (1998)
GC,/Works/1 With Qua

Background
GC/Works/1 first appeared in 1973 as a
central government departments. GC/W
is published for use in major civil engi
design and build, or management
government agencies and private
f,
The form is part of a family of GC/W

versions as follows:
GC/Works/1:
GCJWorks/1:
GC/Works/1:
GC/Works/1:
GC/Works/1:
GC/Works/1:
With Quantiti
Without Qua
-9-98)
Single Stage D
Two Sta e
nd Build (1
uild (1
With
With
racts
range of contracts
antiti
a
struct
structi
misL buildin
nt Trade Contract (1999)

ment Trade Contract (1999)
and engineering projects. The
further includes:
rks label is-comprehensive and
nd civi
ering inor works (1998)
nd ele ical enci veering works (1998)
engK eering, me, anical and electrical small works (1998)
ment cons tants (1999)
eement fo?, bnsultancy services (1999)
GC/Works/
GC/Work
GC/Wor
GC/Wor
GCNV W5'.
Works
C1Works/7.
C/W rks
C(
titie
ra
or /9: for operat

otions (199
r facili
term contract (1999)

m contracts (1999)
contract for equipment maintenance (1999)
nd maintenance of plant, equipment and
-+,N
GC/Works/1 (19 8) With Qu ntities is a particularly complete publication and can be

wide ange of applications. It is similar in structure to its
adapted to sui
immediate predecessor and even uses the same numbers for most of the Conditions.
There are fundamental differences, however, in the text which are not always
immediately apparent. The earlier published form was intended almost exclusively for
use by government departments and reflected the methods and procedures of
contract administration then used by them. The form was not intended to be even-
96
GC/Works/1 (1998)
handed in all matters, and the Project Manag
afforded
solut ut
many of his or her decisions being 'final an
ive/e`n`tecur t for is claimed
?rn
ample
ploy
(f
to be adaptable enough for use by non-c
NIna'rus
c.) and
local authorities, educational institution
to-produce
by private sector employers. To facilit e this
a form which strikes a fair balance be
een the
ver n the one
e has been
hand and those of the contractor. on
e o er.
Jai?
ct
t th
er's decisions
introduced, and there is recognit
are now open to adjudication.
com
ing
complies with the conditio soft
Act 1996 (Part II). Amendme 1, ap
take
only, was published in_ 000
claus
Excellence' initiativ
engineering and w le life costi
The form takes account o
datns
to
ham Report, and

and Regeneration
esign and build forms
e L
ts, Cons uc
rks/1
to
vernment's 'Achieving
over
isk management, value
over SQ, pages. There is JW introduction and contents list,

h ar
set ut in a clear graphic style using
well
ablishe terminology. Also included are a
straightfor and la m7s
mmary fo contract administrators); a detailed
s
Schedule f Tim
Particulars but with an Addendum for
alphabetic index--t],jpe cust ofm a ry
information et to
uppliedl- and the tender forms. The Contract
entrie
Ag r
versi s so hat th contract can be under Scots law, or under
les an Northe
Ireland.
th
The documen r
followed by 'the
,gtd fins w
Li
for use in nNjor building or civil engineering works.

bnditi
y th
d sub-contractors;
rance for design;
professional inde
incentive bergs for arly'-6ompletion;
charges;
on praymen
to the co ractor on the basis of stages, milestones or valuations;
s;
parent company guarantee;

collateral warranties.
The factual details relating to a particular contract and the incorporation of option
provisions will be determined on how the Abstract of Particulars is completed. The
97
GC/Works/1 (1998)
Abstract is detailed and among other things re qu es the name3-,of th Pro
Manager and Planning Supervisor (who may be th rojectilanr)
entered
There is also space for the adjudicator and the arbitr torto
ed in this dcbcumen
It is recommended in the notes that the same adiudic
in
all the Employer's related contractual docu ents;
consultants or others. This could be problem tic if the
tie
A Contract Agreement is to be execu

Government contracts are not normally, execu
attestation if required.
Synopsis
1
Intentions
a fair dealing clause
cooperative and open rela onship
There is
a
The contractor is to exec e th

Programme, with all reason le s
J-'o
with di
ks
and care,
form tin
ith the
part of the Works doe

Manager, then it mu
terms 'the Works'
The contractor
of such work care
(1
accordance with the

anlike manner. If any
ntra ands rejected by the Project
for a its own expense (31 [6]). The
fined
responsi ility for design work in respect
-d-sub-contractor or supplier. The
e
fessional duty to exercise reasonable
give a itness for purpose warranty (10
uire
out-by
contractor's li
skill and ca
hi
either
[ve A)
Alternativ
ave sabified iVelf about the conditions under which he
payment i3-,Alowed except for unforeseeable ground
itions
s'f
'
bills an
oration
ra
ctor must be prepar

of th Wgrks, a
competent contr
The 'contract'
is
to conform to the requirements of the
fit for their intended purposes (31[2]). The
`sfy the Project Manager in respect of the execution

sing the skill and care expected of an experienced and
_+.
con
be
ELF
00.0
qu
:ifi
ans the C htract Agreement, Conditions, Abstract of Particulars,

bitfs of quantities, Programme, tender, and the Employer's
Specification, drawii
written acceptance (1
st
[1
]).
If discrepancies occur between Specification and drawings, or between drawings, the

contractor is to draw the Project Manager's notice to any discovered (2[3]). The
Conditions prevail where documents conflict with them (2[1 ]).
98
GC/Works/1 (1998)
Bills of quantities are to be prepared in accor
identified, except where stated otherwise
are to be rectified by the Employer (3[31).
the
Vyicrr
The contractor is to receive a copy of

Works' in a form which the Project M agerco
fl,
The contract period will be state
in the
ay
tai,
will notify the contractor when

All notices under the contra
r o
slued 'durX fg th p gr
uitabf or r orodu
ide
ct
st
__10
iing1
tae
mi
rs
artic
the
[3
accordance with the

hole of the Works or
thYthe contract, and to the
tion (34[1 ]).
,C7
The contractor is required

proc
Programme, or as the Project
nager
ted ri
ject Mana
e dat
i
,-+
The date for comple ion is set out in or asc ained' om the Abstract of Particulars
(1 [1 ]). This envisages
ra ct al comp) on
It
9 not called such) and includes
all Th>I
s not
clearing of rub
orpo ated (34[2]).
i
ired
re
t submit-a, ogram
lo61 [11). The Pr
ion, a
(35[21), and the contractor is obliged to

ing requests for extensions of time and reat lest five ays before each meeting (35[31). If notice is
er is alrea dy aware of likely delay, he or she shall consider
nsi
(36[1 ]). The causes for which an extension may
(36[21), and the Project Manager is to indicate whether the
final. The Project Manager is to keep interim decisions under
ikon is possible (36[3]). It is interesting that weather is not
meetings
re to
mar
ogr ss, incl
until a`final
fl,
COQ
(D-
--O
+-C
it a writt
gram
ven, or
e prior to acceptance of the tender,

gramme is to be for the whole period
other specified information (33[11).
fl,
ris
g reed
iced as
ay.
ired to issue a written statement of progress within seven
The Project Manag
meeting (35[4]).
v,'
ss
is possible upon direction by the Employer, subject to

of contri tor's priced proposals (38). The contractor may also choose to
l5osals and Programme amendments for the Employer to consider.
on or com etion
r6)
The Project Manager shall issue a certificate when the Works, or any Section, are
completed in accordance with the contract (39).
+-.
0-O+
+-,
Failure to complete the Works or a Section (which includes clearance) by the relevant
Date of Completion makes the contractor liable to the Employer for liquidated
99
GC/Works/1 (1998)
damages (55). There is no reference to
certificate
BCD
--+
The Maintenance Period will be stated in the

contract accepts that there might be more tha
contractor is obliged to make good defects at Is
the Employer. Any arguments about liability d reirri
defects have been rectified.
ion-
rn leti
Pa
icu
D.
e IVWjA tenan e Perio

sst
rs
aand
to t
ent m
e satis a
io
t wa until
There is provision for completion of the

of Particulars (1 [1 ]).
There is provision for the Employer
and this also relates to completio
a,v
arly
sess
Control
The contractor is not allowe o assign
written consent of the Emp yer (61). S b-lettir
of the Employer or the Proj ct M
r (62[1 ]).
In any sub-contract, t
contractor is respons
imposed upon the
completed (62[41
rre
is requir
to
rtain terms (62[2]). The
ing th sub-c6 tract rs comply with all obligations
ntra c
m t see that sub-contract works are
acto
supplf(s/may
(63[1 ]). The c
is
sub-contra
will bear t
sub-con
complete
a pa
ted-(the
basis of a Prime Cost sum

for the performance of any nominated
tif o
lau
3A is stated to apply, the Employer
the e ent of determination of a nominated
gay r
ominate replacement or direct the contractor to
ere are o sta d procedures and no requirement to use
t. The cont for is given right of reasonable objection
entirely
nomin
spons)onal
(6
struoti
can be o
(Ii ted)
are
nager must be in writing (40[31) except for a few

ed later. The contract sets out what instructions
powered (40[2]).
te n y the Project Manager or delegated to his or her

representative (4 a re!
co tractor must comply forthwith. Instructions requiring a
variation are ter ed 'Vls'. T
Project Manager may require the contractor to submit
a quotation of the fu
of complying with a VI within 21 days of the instruction (40).
Instructio
In the event of failure to comply with the Project Manager's instruction, the Employer
may have the work done by others at the contractor's expense (53). This right extends
to rectifying defects (21[3]).
The Project Manager is to provide the contractor with information necessary for
100
GC/Works/1 (1998)
setting out the Works, and the contractor
the setting out (9).
is
for th cor
lely
-(D
The contractor shall employ a competent a

t (5) *4(/is to s pervise
in attendance at site during all workin
rs,
d supply t
Proje
a
returns (15). A clerk of works or Resid
r
vbe a point d, an
Manager or quantity surveyor may app int reores
cise th
powers which must be listed (4)
The Project Manager may in ect, exa n or

vet is
d out (31[4]).
Independent experts may be bro 101-it irt, tes
es o uita
ity-of Things, and if
their findings disclose nonit
e contra
t n e contractor must
bear the cost of rectificatio
ertest
ssar
connection with the
[51).
e exec
4 Money
The Contract Sum is
s
re
Proje
ire instruc
]) in
and
ns in
the
atio
iting
is as
gins
t Ma age
there
[1 ])
om the Project Manager before work

ovided for in the contract (42).
u
ems b
ay be by acceptance of a lump sum

`tity surveyor will value on the basis set
of o v iation instruction, or (43) in the case of other
d &u ptio costs may be included as part of the
uctions (40)
gre, ment,
c
rinance charges
stated per
(47[
able to the contractor only for limited reasons, and for

and43]). The rate is to be stated in the Abstract of Particulars
contr
tion
d disru tion expenses generally is limited (46[11). The
in the
d" ions. Interest and finance charges are expressly
overy of expenses depends on written application from the
ie Project Manager in time (46[3]). The application must meet
Qn3
';-.
O)._
Progress ayments, t rmed 'advances on account' (48), are based on either Stage
Payments, Llesto
Payments or Valuations (50[2]). Payments will include for work
executed to the satisfaction of the Project Manager, and the contractor is entitled to
95 per cent of the relevant sum, plus 100 per cent of certain other sums and certain
adjustments (48[2]). Stage Payment Chart and Milestone Payment Chart are defined
(1111).
After completion of the Works, the contractor
is
entitled to be paid the amount

101
GC/Works/1 (1998)
#f
uiiy
Th
the tent
estimated by the Employer as the Final Sum, less
mon s of
in
surveyor shall send a copy of the final account to th contr for
notif agr me or herw
certified completion (49[2]). The contractor m
hen th
final
o n is
ased
within three months. The other half of any
and AW t
Certificate is issued at the end of the last ai en ce Perio
contractor has complied with making good efects.
5
Statutory obligations
The contractor is to give all statutory n ices req ' e , ob ' any
loyer ill re'
s or
urs
and pay fees and charges arising. The E
rin 'pal
act
incurred. An obligation on the co r or ting
with the CDM Regulations is expr ssly st
The contractor is also required to cori

stated in the Abstract of Part
he is working (22).
The contractor is required t
storage and use of all Thing
ly
with all statuto

ht on to
requin
ll
6 Insurance
the duration o the Contract and the longest

rance; in rance against loss or damage
' liai
insurance against personal injury
atement va
required within 21 days from
The
e
be
evide
f-qp e ny, (8).
nder
native ).
e con actor may be required to maintain
the E ployer, he contractor and all sub-contractors
to the A stract of Particulars (Alternative B).
The contractor is r
uired
Maintenance Per od: e
ng
to the Works and
ma
=follrein
or damage
acceptance
insurance
in accor
and in connection with a contractor's

act of
ntractor may be required to take out and maintain
ce cover (8A).
ofessional
or damage to the Works and even extending to

the Works 0 9[61). This is in respect of any loss or
rises because of 'accepted risks', defined in (1[11),
ndit ons or unforeseeable circumstances beyond the control
of the contract r, the contr, ctor will be reimbursed by the Employer. There is an
absolute obliga ion on th contractor to reinstate, replace or make good to the
(19).
satisfaction of the Emp
T e co
tr
or
t'-6
00-0
an Things not
da ma
but
unforeseea
is
resp
for incorp
vrthis
oyer
-a
The contractor is to take precautions needed to take care of the site and the Works
against loss or damage from fire, and any other cause, and shall take all reasonable
steps for security and protection of the site and Works including lighting and
watching (13[1 ]).
102
GC/Works/1 (1998)
The Employer may determine the contr

Contractor. This is a discretionary power
upon some default by the contractor
addition, the Employer has the rig

by the contractor including insolvency
In
The contractor may determine

following determination by th
Matters following determ

'on
removal, transfer of sub- ntrac
surveyor shall ascertain and t
completion of the W
Mr
th
ar
Proje
Ngerl
The cont
quantity
the ost to the Employer of
reasonable notice before covering up

the Project Manager has examined the
`r
ns until
ProjMan'ageriay
order
th, replacement
of the contractor's site staff,

Manager has power to control the admittance
vii
TJe
ment, completion,
ground conditions (7(4)).
The Proje
work
in Co di on 57. The
'-`
uch as a requirement for passes (27), the taking of photographs

all employees of the Official Secrets Acts (29) may be an
the Abstract of Particulars.
r-+
obligations relating to the protection of the Works (13),

isance (14) and the removal of rubbish (34[2]).
There
is
ron
)for the discovery of antiquities (32[3]).
is
xtrem
wide provision for recovery of sums where money is owed by
the contractor or to the Contractor, under this or any other contract with the
There
Employer (51).
9 Disputes
There is provision for adjudication for the resolution of any dispute arising during the
103
GC/Works/1 (1998)
re
tice
course of the Works (59[1 ]). There are precise require, ents f 'r the
2
ays o the
and the procedures. A decision may normally be xpecte wit
notice. The adjudicator's decision is binding until e disp e is hally O et& ined
legal proceedings or by arbitration.
13
Arbitration is included in addition to adjudicati

(60[1 ]), and the arbitrator is given wide pow
104
ea
under t
of dea
co
ract.
ng wi
disp
es
GC/Works/1 (1998)
This contract?
If considering using GC/Works/1 rememb
for lump c
government, but it was substantially vise
wider application, including use by rivate sector
intended primarily for use by govnme
itho
a version for use with quantities
This was the major form
.-f
us
tion t alto
rthern Ireland or
iffer nces in arbitration
n Irelan
and Scots law. There

ntries, and a different
c(0
it can be used for work in End

Scotland. In the latter case
resulting from the contract eing
are relevant references to sta
e law
Contract Agreement f
Scots
given in the Comm tary unde
Back
fted f
er helpful information is
r,.
tages, de
e contractor with professional
it can include co pletio
indemnity ins uranc , sec rity measur
ession, acceleration and cost
'suppliers, mobilisation payment,
savings, bonus
no inati 0 o f sub- ntracN
lieu of retention. The wording is
bo
alternatives f r adv ce o n ac unt,
roced
are logical, and there are many
clear, with
good raphi Iyout.
featur sin e ro ons, for exa ple, that the contractor is to provide
interestin
gress
contract administrator, and that the
regular
p its for /com mer by t
contractor b rs any losse_ resul c from failures on the part of nominated sube whole the orm
aces more risk on the contractor than JCT
con actors. Qn
'v,
'
SB 05.
hen ckmpNing f
act detai
the Abstract of Particulars
is a
vital document
whicNo/tailor
t Manager, contract administration should
tines
0a)
0)(D
be relatively
obligations and responsibilities are clearly stated, the person
derable authority, and the procedures are not arduous.
eep a careful watch on the Schedule of Time Limits.
ihtfor
epor recommended that government departments then using

egin to change to the New Engineering Contract. The current
199 G
or s/1 f mily of forms may be seen as a robust response to that
It has merged as a versatile and well structured document which
suggests
embodies many of the Latham Report's points for 'an effective form of contract in
modern conditions'. Amendments to the design and build versions were published
in 2000, to introduce some of the recommendations of 'Achieving Excellence'.The
Government Central Advice Unit also publishes some excellent Information Notes from
time to time.
he 199
am
sh uld
fl,
ork
105
GC/Works/1 (1998)
GC/Works/1 With Quantities (1998) General
Conditions
106
NEC3
The Institution of Civil Engineers
New Engineering Contract Doc
Engineering and
Contract Third E
Background
This form is placed under
(ng o> `T clit-ional
ent and Lump Sum
Forms purely for reasons f conv'
it
ally pah
system which was a
bold and major initiative in
draft
onst c
co racts. This resulted in a
form which is adapta
in lump sum, design and
ed to
ble
build, or managem t procure
en neering and building works.
d for
i
a -Third Edition development of

tract NEC). This was an entirely new
contracts undertaken for the
by a panel of engineers and lawyers
The Engineering a
Con ru on Contra
what was first calle the ew Engine
hto draftingir
clean sheet'
cons
Institution
chaired by
Civil
o.
ers.
Barn
pare
of Coo
and
brand, London.
to
r+'
was
gi
Mar
aking one
purp
document suitable for traditional procurement,
c)or ma
gem t co acts. It was further claimed that it could be
ost t
s of civi engineering and building work, from largeably adapte fo
cale pr sect
mestic-sca work. Although drafted as a head contract, it
houg t that' could Iso be used as a sub-contract, thus providing the
s origi
II
tein b k to ack compa ' ility. The language of the form was such that it was
uitab le r use under UK law and also overseas.
terming
,.,
,-r
form to be exportable, understandable, and therefore likely

isnutes: was also drafted with plain language and relatively short
e precise meaning of some of the more unfamiliar
Has
yet to be defined by case law.
er,
pro
f fici
ad to fe
clauses kept
ity__s.V
v,'
fl,
n an
fl,
c>.
0-0
tfnent n the part of all parties: it was felt that there should be an end
to adve arial posturing by bringing into the contract an obligation for frank and open
discussion
lems as they arose, thereby minimising the risk of disputes
escalating to the point where time and costly overruns became inevitable. It was
further thought desirable to introduce incentives for good performance and early
completion.
3 Good m n
r(6
Sir Michael Latham bestowed high praise on
the original New Engineering Contract

107
NEC3
in his 1994 Report. After listing what he considered G be d irab featu
should be present in all modern construction contra
he s ted
at
e app ach
of the New Engineering Contract is extremely
-acti e' a d t t it ontai <
'virtually all these assumptions of best practice'.
went
to ad ocate c tain
changes to the New Engineering Contract, so e
hish were as f Ilows:
that the name should be changed to New Co struct ion

to NEQ
that there should be provision for a sec u tr t fu in
that there should be prompt payment rovision
-co
ctor
that there should be affirmation by the p ies
t al
lin
ere t
basis;
that core clauses should be left una ende nd

that terms of appointment for consulta sand
contract;
given to a
that consideration should
ly
*u
cobble su
tors-sliold
in
available).
f'-
omm nded tha

Departments should
begin changing to the
th a 'the use
ded) by private sector
gly
clients should be
d Sin
the
Report was published, with
its 13 principles for mod
ion of the form appeared in
1995. Reports in cate th,
een taken p widely, and that it is now
being used on pro' is in
se ors of car
on and engineering in various
parts of the w
A example o this is
t the English National Health Service
requires an
ende
r
of N K2 to e use on its Procure 21 projects.
.-+
The Latham Report also

str,
bus
tion
th
conce is
indicators a
thir
rt
opti s
ee increas
those dealina1with
0
ced some significant changes to the

register, 'Key Dates', key performance
introduced. The number of secondary
been made to existing clauses such as
ion events, correcting defects and adjudication.
intro
a nsla
fl,
The publi
suite. Ne
w Engineerin hand on
ction Contract system comprises 23 documents,
which i
We ICE-C3, a short ontract, sub-contracts, a professional services contract,
an adjudicator's
erm services contract, and a framework agreement,
together with r
nce notes and comprehensive flow charts. NEC3 is
intended as a refer
ment, and contains Core clauses and Optional clauses.
in'
-0.
fl,
The
108
O..
rpm
The Core clauses are set out in nine Sections, and apply in all contracts. The core
clauses allow for a flexible amount of contractor design, enabling the form to be used
in traditional and design build procurement. The Main Option clauses constitute six
sets of clauses A to F, and one set will be added to the Core clauses to adapt the
NEC3
document to the type of contract requir
Quantities or Activity Schedule; Target
Management Contract). These Main 0
payment system. For convenience, ver
with each of the six Main Options ar
/xample
rice
Cot
eim
relat to
ase
3 with t e cor
+n.
There are also Secondary Option

required. Some can only work in
are 22 headings (X1-X20, Y(UK and
to allow for performance bon

payment; sectional comp)
fluctuations; retention; bo
g
The NEC3
is a
no
as
lauses. There
cer
K)
w
can
ted as required
part erin
y
rma
icators; advance
imita
o
bility for design;
ont c is
mp
delay
es; low performance
to ta'
e co
itions to the intended
piece of draft
terminology could ause
or not
hic
ses
roblems
tense throughout is Iso r her disconce
attempting to nstr
its terms.
s
in
er inf
d has
to the
wage' but non-traditional

tion. The use of the present
een criticised by lawyers when
min
sum o o
def is
ou
is
h mea s that so
m
p_0
oncer
(o,
to more traditional standard forms.

contractor is paid the value of work
which is witho
delay or be covered by immediately
following ork',
ective work will be paid for during the
proje
tho h the co ractor
ultimately be responsible for correcting all
def ts. Ano
oblem tha the co tract does not state clearly the contractor's
Ot el of liability bf
n, a ough
e inclusion of Option X15 implies that it is
ende
ortunatel, this lack of clarity means that the form is
nt.
uently
Some conce `ts will
For exam
, and
the
'vi
'
r"6
mulate good management, emphasis is laid on the contractual

ve programming, sound management, and the need for early
ct Manager and the contractor in order that matters which
ss and additional costs can be properly considered at the
e recently introduced risk register is a further tool to
identification and management of potential problems.
Use
sa
select the appropriate Main Option. Then the Secondary Options
can be considered and incorporated as desired. It is necessary to determine the makeup of the contract content before completing the statements of Contract Data. The
Core clauses are relatively brief, and the information carried in the Works Information
and the Contract Data therefore becomes extremely important. Part One of the latter
consists of information to be provided by the Employer, and Part Two is data provided
,-+
fl.
First, it is n
109
6 Traditional procurement: standard
lump sum forms
NEC3
le/and tRe
by the Contractor. Because of the number of options

will be related to the selected options, completion o,
Contract Data needs to be precise and approache
Os
rma
at c re.
Synopsis of Core clauses
ramvocu
The intentions of the parties as indicated in

from the Core clauses, the choice of Op
by the Employer.
The contractual spirit of mutual try

Section' (10.1) of the Core clauses:
is expre
There are clear rules relating to

submissions, records, etc.) (1
unica
Early warning is a significan

difficult concept in practice
A register of risks is set

The register may be a
Project Manager m
ntract,,
start the pro ct ari incbded in the Contract Data.

du g the urse f the roject, and the contractor or
a risk r uction
ting t discuss the noted risks (16).
1ecanager
quired
notify t
tion to prov e the Works in accordance with the

necl in c s 11.2. It is important therefore to make
is full, clear and accurate,
e
contract
ntractor
y the contractor (21) and questions
lows
is
respons
is
of copyright are
'ooperation over providing information, and the

contractual obligation (25).
Title to plant, eq pri eml and aterials is normally vested in the Contractor, but may
pass to the Empl er where t e Supervisor marks goods and materials as being 'for the
contract' (70). The s
f title is allocated a complete Section of the Core clauses.
2
Time
vii
Starting and completion arrangements are straightforward (30). Possession of the site,
access and use is subject to conditions (33).
110
NEC3
Programmes should be identified in the Contr
Project Manager by the contractor. If the c
25 per cent of any amount that would oth
until the contractor complies (50.3). T
Programmes may be revised subject to
The Project Manager is empowered to i
not started until instructed (34).
,for other
fails
ro
ue o the o n t r
a
b incl
ed is des
ue iostru
hi
defin'
The contract may stipulate ' y Dates
or
ge
complete. This allows the work f on cont
the Empl e hr
urre
dovetailed with that of anot
efault
ainst t
a key date can be claimed
Procedures for using or to

to conditions. Posses on of a6
ipa
upon certification b
Manag
The Project Manager
the Proiect
e Employer are subject
art o
rtef the
whole site,
is
dependent
(35).
uire the contr

hieve ompleti
it a quotation for accelerating

contract completion date (36).
terve ing events, these may constitute

occur
re are
fisted, nd for weather in particular, precise
Compensat, n Eve
Contract D a. The contractor is obliged to notify
req u rem is can e in de'd
Project Manager will decide whether
f such/events,
the Projecf lanag
ue (61).
viousl t
early warning' requirement will betaken into
compe
d a complete Section 6 in the Core clauses.
on Ev tsar at
acco
Where dela
i
instruct the ontractor to submit

ssoaa
accor
if the con
quotation to deal with
e delays (62).
pensation Vents is a matter for the Project Manager in

pin rules and procedures (63 and 64). The Project Manager must
cto
his or her decision.
rol
he early
r+u1aaager nd the Supervisor are both given considerable powers, and

delegate. T e Project Manager is empowered to issue instructions to the
tin o changes of Works Information or a Key Date (14).
The contractor must submit names, qualifications and experience of key people.
Replacements are subject to acceptance by the Project Manager (24).
The Project Manager may order the removal of an employee from any further
connection with the particular contract (24.2).

111
NEC3
The contractor must arrange for access to Works, ma
Project Manager, Supervisor and others notified b
plant-(
_
ect NP-Qag
The contractor must obey instructions from the Pr
authorised under the contract (27.3).

The contractor is wholly responsible for th
contractors are subject to acceptance by the
work o
t&
Tests and inspections carried out by "the

tr
ay b,;-,,
sts,
Supervisor, who may also order the c tractor to-EkhW o
own tests (40).

The Supervisor may instruct the c tracto
not the Supervisor notifies him the
ractor
end of the Defects Correction
rch for-,defects
char
no r teren
The contract mak
obligation to assi
the b
efitxA co
to
ent,
Q..
,-+
Where Works have been t )ken over y the Emuploy

ject Manager is to
arrange access for the con actor o rrect defec Whe it is agreed that defects
need not be corrected, then there ay be
ork nformation and a cost
reduction (44).
ther than the contractor's
racts on termin tion of his employment (96).
4 Money
An Addend
ssential
saa Gra
takes acco
this affec
.-
mee
is on NEC3 in the United Kingdom),

nstruc on and Regeneration Act 1996 and
set ut in Section 5 of the Core clauses.
e Project
p
The
Vana(
ust show the amount of payment due, subject to

ction, and the basis on which the figures are calculated
oject Mana
any Emp
(Y2.2).
The date on
whit
payment on or before the date on which a payment

d payment is made on or before the final date for
fl,
e, and ea
meftx l.)-i).
aymen
the final date for payment
ecomes due is seven days after the assessment date, and

days after the date on which payment becomes due
is 21
(Y2.2).
If the Employer intends to withhold payment after the final date, he must notify the
contractor at least seven days before the final date, stating the amount he intends to
withhold and the grounds for so doing (Y2.3).
112
NEC3
Interest is payable on amounts due but npaid, and
Manager's certificate which is due but issue late. T e
in the Contract Data (51).
Suspension of performance by the cony fa
r
to make proper payment is treated as Comp
Y2.4).
There can be price adjustments fc(r
the event o/the
do
Option X1 (applicable only for Vain Opti
Adjustment Factor.
sa
n Eve
D)
culat
o1e
oykXfailure
inco
(60
orated by
under 6pplementary
ion
basis of
Price
tify t
The contractor is obliged to
anything in the Works

0
do
The standard isks to

to be carrie by th
Risks
not emised
corrects th Work
oul
e ill
form
al
if /he becomes aware of

)
at it complies with Statute,
'on
fl,
fl,
If the Project Manag

this may be a Comp
Pro' ct
hich
ec
ob
ried b
;),y0-r,.my
b ng ca
he Em loye are itemised, and any additional risks

Bred
the Contract Data (80).
ied
vii
respe
to be carried by the contractor
e Empl yer are
(81).
Each
arty in
arisin
fro
ies th
n
ent
ther 'n resp t of claims, proceedings, compensation or

'his at sk of the party concerned (83).
esp nsibil ties ar abled a d as stated in the Contract Data. Policies are to
in joi t names, a
en o
in the case of the contractor policies and
t to acceptance by the Project Manager. If the contractor fails
ployer may insure and charge to the contractor (85 and 86).
uranc
fl,
be
ils
Details of
7
jurahce obligations and
(1)
policies and certificates must be submitted to the

to submit, then the contractor may insure and charge
,-+
es,
~.,
co
cover are to be stated in the Contract Data.
Termina
Valid reasons for termination by the Employer and by the contractor are set out in
Termination Table (90.2).
the event of termination the Project Manager issues

within 13 weeks certifies final payment (90).
In
Termination Certificate and
113
NEC3
Following the certificate, termination procedures ar
Termination Table.
The Employer may elect to complete the Works hi
and may use any plant or materials to which h
er co
Payments which may be due on termination ar, as set o
8 Miscellaneous
Main Option clauses can include Activi

(for B or D).
Sch
Use of the NEC engineering and con uc

services contract seem to be re i red
su
ss o
ntract
ich
incorporated.
Secondary Option clauses ca beincor p rate to ma
for inflation (X1); changes i the l
2); m ulti e curr cies
+>,
r price adjustment
3); parent company
mpl ion (X5); bonus r ear
guarantee (X4); sectional
ompletion (X6); delay
damages (X7); partner' g (X ); p ormanc e onc
vanced payment to the
contractor (X14); limi do of ntra c
s de si ccii lia bi ty to using reasonable skill and
mag s (X17); limitation of liability
care (X15); retentio (X16). low erf or
c
(X18); key perfor
nce in
and aTditional onditions of contract (Z) may
be incorporated in whici
e stated i the Contract Data (option Z).
-Co
`dam
Option Y(UK)3 shou

the law of E glan
of third p y rights
Contract Data for all contracts to which

fern I` nd applies, and is a contracting out
(Right of Third Parties Act) 1999.
d into
e inc6rpora
les, a
Cont
9 Disput
met
dication
out in Options W1 and W2. Option W2
using Grants, Construction and Regeneration Act 1996
Alternative
tbeu
plies to
der`Qp
W1
the
etailed procedures
ksation TablLd Botion
Fs
contract and the Project Manager are to follow

including the limits on timing as set out in the
procedure which complies with the Act.
'
final and binding unless and until referred to a further
to be arbitration or legal proceedings will presumably be
stated in the Contract Data. If arbitration, the procedures to be followed appear not
to be stated in the contract and would presumably be for the parties to agree.
The adjudicator
ecision
'tribunal'. Whether this
114
is
NEC3
This contract?
If considering using the NEC3 remember
tkt:
The idea of Core clauses to which sele( e

clauses may be added to produce a
tract W
of circumstances is seductively attractiv

n
and the various options can res
producing great variability and risk o
clause and
n be t
re
al
ci
Nkor
Thkre
di
s W
The Contract Data and Works Info at io

former is not to be changed
ntra
supplied by the Employer
formats, and is information ne sary a
o a pa
this
pproac
lawy rs
on
is of the NEC3. The
ichme
nc
tia
orks Information
n be p
sented
in a
variety of
e law of the contract, the

There are no stated
`trictions'
language of the con ract, a n d t r)e curren of th onrdt should
be entered in Part
country
in which the site is
One of the Contrac Data. Cha ges in the w of e
p ' n
is incorporated. Additionally
located might be a
mpe sation Ev
Addendum Y(. 12
es account
ous ng Grants, Construction and
Adde
K)3 akes account of the Contracts (Rights
Regeneration ct 199
will be applicable for England and
of Third Pa ies) A 199
Wales, N rthern relar
(UK)3 will be applicable only to
England an Wale dd Nort ern Irela
cted in a for
w6 this engineering provenance, there is no
hi ct or
a tity sur yor by profession. The key persons are the
ages the pr curement of the Works for the Employer; and
er,
who
certai responsibilities on site for the Employer with
sor,
to an
lect M
Supe
he or
who
releva
e has
entri
r.
fl-
Pr
,v
As m
refe er
ervices.
m requires selecting or assembling the appropriate options, and

to 13 pages of Contract Data. Attestation is by a separate
quires attention to communications, early warnings,

rmation, and Compensation Events in particular. A cooperative
itude is essential with NEC3, and there is a strong emphasis on
ent.
is as
little legal pronouncement, but some well respected legal
commentators have expressed reservation over what they consider to be many
unresolved legal issues. However, the form seems to have been widely used without
serious problems.
There
vii
115
NEC3
and
and
and
and
and
and
and
and
and
and
and
and
and
and
and
construction
construction
construction
construction
construction
construction
construction
construction
construction
construction
construction
c22222-,,
contract
contract A: Priced contract
contract B: Priced contrac
contract C: Target contra
contract D: Target contract
contract E: Cost
contract F: Manag
contract: Guidan
contract: FlowKhart
subcontract
short subco
professional services contrac
professional services contract:
construction short
construction sho
Adjudicator's contract
Adjudicator's contract: guidance
Term services contract
Term services contract: gui
Term services contract: fl
Framework contract
Framework contract:
Procurement and co
Engineering
Engineering
Engineering
Engineering
Engineering
Engineering
Engineering
Engineering
Engineering
Engineering
Engineering
Engineering
Engineering
Engineering
Engineering
Commentary (rela
Brian Egglesto
The NEC3 E
Blackwell P,
116
Intermediate Building Contra

The Joint Contracts Tribuna
Minor Works Building
The Joint Contracts Tri

Repairs and Maintoance Con rac
Coma rcia
Association of Cons
ACA Form of Building Agrgement 1,992
hir
200 Edition
dAion 1998, 2003 Revision)
Scottish uilding Co ract Committee (SBCC)

SBCC Forms of Co tract
(Do
3.O
Just what constitutes a shorter form is arguable. For the purposes of this book, contracts which are
comparatively brief and easy to handle in terms of administration are included under this heading.
This need not necessarily imply that they are solely for smaller works nor indeed only suitable for
lump sum contracts.5ee also Chapter 8 below, in which short forms which are more likely to be
categorised as consumer contracts are covered.
118
Traditional procurement: shorter lump sum forms
JCT IC05/ICD05
Intermediate Buildi
Background
With the introduction of a then
0
he Standard
oplii
Form of Building Contract (JCT ),m
a hi
s fel
ked a contract
suitable for middle range jobs. he RIBA ex
s d t
on
in October 1981
the JCT set up a working pa
o epar
'in me 'a
for With considerable
input from constituent both
rti ar th
the
n of District Councils
oc'
and the Association of Me
o lita
ut rities,
nterm
ate Form appeared in
i
September 1984.
of 12 Am
h was to meet many of the
recommendations adeinf h4atham R ort o
94-*corporation of Amendment
12 ensured compl nce with Part II o
Hod ng Grants, Construction and
Regeneration
19 6 in Stpect of kdj_
a d payment provisions.
IFC84 was the subje
The 1998
IFC84. Th
have be n
.-+
Contract
which is
tion
nterni iate F
as basically a consolidated version of
most
entitled the Intermediate Building
n twos versa
orporates m ny significant changes, the scope of
ilar t rthM for SK05. T
'r provisions for naming sub-contractors
retained.
m iate uildi Contract ifs now published in two versions, one 'with
ision for the contractor to design an identified
tracto ' d sign' which
ort IN of th Work (ICD05), ar one which does not (IC05). In all other respects the
verz ins a e id enti al, therefore the points raised below can be assumed to apply to
bot version unle Vindicated otherwise.
am=
e Int
v_0
n,.
how run to over 80 pages. There are eleven Recitals in the

icles. The Conditions are arranged under nine headings, in
e wit
5. T p re is a contents list at the front which gives clause and page
numbers. ontr ct
iculars (to be completed by the parties) are also included at the
front, a d the Con tions are followed by four Schedules dealing with insurance
ed su -contractors, forms of bonds (in relation to advance payment, and
options,
off-site materia s and goods), and fluctuations.
versions
ICD05 version an
-l,
Q-0
,-+
The Intermediate Building Contract has the virtue of relative brevity, a clear layout and
commendably easy cross-referencing. Although the wording of the clauses is of
necessity truncated in parts, the Conditions should be adequate for the foreseeable
circumstances of most middle range projects. The introduction of the ICD05 version
119
JCT IC05/ICD05
,-r
expands the range of projects on which the form

to be a popular choice.
for sfiiWili
r-+
Oo'
,-r
c,_.
-+,
The inside front cover of IC05 (not part of th e

These refer to building works of simple c ntent a
installations. Most important, there is a remin
th this
eJ
mu
be priced entirely by the Contractor, and t
billed or specified at tender stage.
tea,
JCT Practice
Note 5 (Series 2) suggest
projects and it
v.-+
n-0
of up to f375,000 (at 2001 prices)

but accepted that contracts may
Experience suggests that the form
is
the nature
It is important to note that
e new Prac
suit
ty isr ica`t
ya
act de?iQd not ex'ceeN
assfu
ich sh
does
the'
its suggested.
0 'siderably larger
ica
mate determinant.
any limits in value
1ong`6,QTKkn
e use
tract value
12 months,
the
or period.
ICD05 lists an additional crite ion fd suitabilit
part
contractor is to design
that design have be n detai
r on
!e t
m is suitable where the

the Arks;and the requirements for
the mployer.
The notes state c àrty th t it i n

ble for desig and build procurement. The
dministrator (Article 3), and to
Employer is requi d to a of t an ar hitec
inted to un rta ke
duties required of a quantity surveyor
name whoever is a
(Article 4). T
twervison and Pr
ontractor will be identified in entries
to Articles
e Co
tract Do
me
ract Doc
ents as being the Contract Drawings,
ent or
e pecification. Where a sub-contractor is
s are also t
be included. For the ICD05 version, the
elude Employer's Requirements, Contractor's Proposals
CS'
d a ODP-4halvsis.
ws the contractor to tender either by pricing the

ecital (fifth
itemi
bills, Specification
ules (Option A), or to state just a lump sum based
t itemised for pricing (Option B). If the latter then the
on a Spe
Employer will req
cont}actor to submit a Schedule of Rates, or a Contract Sum
Analysis. The E
e wise to stipulate a Contract Sum Analysis option. The
Employer might al's
e it to be in a preferred format, and perhaps this should
be prepared by the quantity surveyor for completion by the tenderers.
Th
There is a provision for sectional completion, and if partial possession before practical
completion is required, then clause 2.25 provides for this.
120
JCT IC05/ICD05
is obliged to carry out an

Contract Documents and with the He th a
(2.1). The contractor must compl to the
Portion, and comply with all instructio of
of the Portion with the rest of t
The contractor
The quality and quantity of wo

and is related to the docum
included
in acc r
d stat
or
Co tracl
ith the
equirements
Designed
integration
d.
winged
other'
to`Pain th
relation to the design as real

(2.10.2, ICD05 only)
stipulated in the Co, tract Docu
2.10.
ments it prepares in
Contractor's Proposals
when necessary' or as
on
standard set out in the Contract

Materials, goods a d wor mNship are to
Requirements or Contractor's
Documents (2.1 an 4.1) including
chittL-Et's satisfaction, they are to be to
Proposals as r
sta tad to be t the
her no standard is set out, they are to be
satis
the Architec s reas ?na
2).
iate
Wor
a standard
e read
d
pe case o
ve priArity
r between documents (including the tender

'rrors i
sisten
ed sbb`-contra 'tor) corrective instructions must be given
O+'
fticulars for
13.1}
Apndix
stated otherwise, must be prepared in

exce, t
with tVe Standard Method of Measurement 7th Edition (2.12.1).
ce
,N+
act bH&,
ractor must be provided with two copies of the information

tion Release Schedule by the stated times (Third/Fourth
2e contractor must also be issued with further drawings as
t-6/complete the Works (2.11). Use of them is limited and
s is to be respected (2.8.3).
plicable; he co
to
ecital and clad
reasonab
Infor
O73
(CD
(110
ons oblige the Employer to nominate a CDM Co-ordinator and

where relevant a Principal Contractor. This becomes a contractual obligation also
(Articles 5 and 6 and clause 3.18) and any need to appoint a replacement is also
covered (3.19).
The CDM
121
JCT IC05/ICD05
for possession and completion must be enter

contractor must proceed regularly and diligently
completion date (2.4).
CoZe a Partl .i
iol
on r be
.-+
N-0
O_3
Dates
-'.
'-'
There is provision for dividing the Works into Se

commencement and completion dates, and
es
liqu
section. All provisions relating to timing, for
xte ing t e (
ly o
apply separately to each section, except at th&
Fina
I
.-.
t ex
Notice of delay must be given in writ hg by t
acto
the Works (on
any information
any Section) appears likely to be
u st
e con
reasonably necessary (2.19.4) he Arch
cons
we pletion date and
as he or she is able
to notify the contractor of hi s or her e ision,
riting,
it is stated, this must
to see the effect on comple on (2 9.1 Although
time
be within a reasonable time Relev nt 'event ' are
for, which the Architect is
nsions up to 12 weeks
empowered to make n
on
0). Re Xew
beyond practical co pletion
etion
ink
to
may
clucte
ils
on date, this act must be certified (2.22).

vered by the Employer (2,23).
rtified by
rectifdefects
(2.21).
-30) unless the Employer decides
late deductio instead.
.,this
is
IpioY,(
p ssible
to occupy part of the uncompleted Works for storage

roper insurance arrangements (2.6).
to assignment with ut'itten consent refers to 'the Contract or any rights

Sub- ttin any part of the work requires the Architect's written
122
The contract proves for c lateral warranties to be provided by the contractor to

funders and purchaser enants, and by sub-contractors to the purchasers/tenants,
funders, and the Employer (Section 7). The requirement to enter into warranties must
be set out in the Contract Particulars, the relevant persons and sub-contractors
identified, together with information regarding limits to the contractor's liability. The
warranties to purchaser, funder and tenant are to be on the JCT standard forms
JCT IC05/ICD05
CWa/P&T, CWa/F, SCWa/F and SCWa/P&T.
relation to the Employer, although this is
te JCT Also p
referYed to/iq_the orm.
subrovisi
or re firing
All sub-contractors are domestic. There i
ating to
e ork (3.7). T,14e proy cans
contractor to execute identified parts
requ
the se of e standard
named sub-contractors are set out in chedu
roug naming the
methods
ailable,
form sub-contract ICSub/NAM/A. T
ru
n regardi
a provisional
or an
sub-contractor in the Contract Do
for
o
ICSu
sum. Both require the use
ICSub/NAM/T.
i
fen
`1,
ee n
s, and sbl h
There is no provision for a is
es offer
necessary. However, the N SSma
ersio
care should be taken to state at this
sub-
LAC
t pers
-in-charge on the Works at all
f the Employer's clerk of works
or m teria
not co-r4efm to he contract, the Architect may order
Instructions re empowered concerning inspection
vaI fro
the ite`
there
a
par
elpful provision concerning similar work
x,(3.14
/s
kh may be s, spect
owing established failure (3.15).
ft
Aled
to'arrVout wo not forming part of the contract during the

fl,
rt..
ns empowered include for

of provisional sums (3.13).
iting
stponeme
The contractor is re u red to have a com

reasonable times (3- an
o permi
thority.
(3-3) who ha
ed
Zed
pr ctice should not be

ble clauses, although
d not under clause 3.7.
is in
possess]
in
subject to certain conditions (2.7).
VAT-exclusive (4.3) and may only be adjusted as provided for in
Co
ontra
or fluctuations (4.15 and 4.16). These are limited to tax etc.
chedule 4).
ums have been included, instructions must be given (3.13).
SMM7 applies, to distinguish between defined and undefined
this is partj ularly important where a provisional sum has been included for
contr
work (Schedule 2, paragraph 5).
ronal
ed,
ro
Applications for reimbursement of loss and/or expense must be made in writing by

the contractor (4.17). The grounds for a valid application are set out (4.18) and
include only matters over which the contractor has no control and which occur
because of action or failure by the Employer. The procedures must be followed
precisely. Other rights at common law are preserved.
O-0
123
JCT IC05/ICD05
e` stag
Interim payments to the contractor can be at pre

intervals of one month (unless stated otherwise). R
alternative rate is entered in the Contract Particular
is 5
(4*6 -mot
r ce
05 cles n
unle
use
an
ter
'retention').
ulatior(s (41 ).
Interim Certificates show the amount due and state
e
Within five days of issue, the Employer must otify the
ust
amount of payment it intends to make (4.8)
enn to
ction,
t
ro
be clearly stated in a written notice whic also is
fore
for final
and this must be given to the contractor of less tha
to
ue
the Interim
payment. The final date for payment
ays
1ved
ve
Certificate, and if no valid notices
e Empl
ent in full
t wi
ctintei st of 5 per cent
is required. Failure to pay by the fina
to for'
iaht t u
n work (4.11).
over current base rate, and can give the ontrac
n-0
r-
-Q!
+..
v,'
Z=+,
Within 14 days after practical

which only half the retentio money-Ls
_>,
erim
(4.9
date-of-isfic
preparatio
f a
count after practical
is a precise timescale or t
completion (4.13.1). Issof t Fina ertificat is wi
ays of sending the final
account to the Con
or ertify
that defe is have been made good,
whichever is the lat
There
alGertificate wi
ate,
is
28`dAys fro
In regard to notices, and the

ue of the Final Certificate (4.14).
the
igatio
tractor' duty t
1). T
ly
con racto
witK all sta tory obligations and give all required

itled to r over fees and charges not otherwise
2 3).
o notify, the Architect if it finds any conflict between statutory

Contr t Documents (2.15.1). The Architect must issue an
ntrac r is not liable for any non-compliance if it results
l carried ou
in a ordance with the Contract Documents or any
g-
contra-c
)uirement
truct
ha
ion
(2.15.3)_
carry out limited work for emergency compliance and
to be valued accordingly (2.16).
Q(D
The contractor is c-orAQct&ally obliged to comply with the CDM Regulations and
particularly, where the project is notifiable, to comply with duties in relation to the
Construction Phase Plan and the Health and Safety File (3.9).
6 Insurance
What
124
particular contract includes will depend to
large extent on the entries in the
JCT IC05/ICD05
.-+
Contract Particulars (e.g. whether option cla

cover required, etc.). The Architect may
documentary evidence and pass policies t
dt
to
is to indemnify the Emp

injury or damage to property other t an the
backed by insurance, and an entry wi state the
ecki
bnal in'
.-+
The contractor
uei t
for
,1 a
or
6 2).
If instructed, the contractor is t

the Employer
nc
ere
exceptions, and
against risk of claims arising d 'e to lega
glig
e b t
Con ctor. An entry in the
damage must not be attributabl
her
r may be
re and the amount of
Contract Particulars will in
cover to be provided (6.5)
ian
vii
Insurance of existi
(Schedule 1 Opon
although still
or is
detai
e
can
Emplor (Sch
ctures and
united to
nd
tents
str
the
uired to
e concerned and should

either by the contractor
ption B).
isks vJ
vii
Insurance of 'the Works' is

be for full reinstat
ent va
(Schedule 1 Option A) or by th
matter for the Employer

New work in existing buildings,
s a
ploye
rry
prosional
demnity insurance to cover its liability

be set out,i n the Contract Particulars.
i
icular will show whether the Joint Code of Practice on

n Sites is to apply (6.11) and if so, both the
y with it. In the event of non-compliance the
tractd
dial measur which have to be taken.
Contract
m Fire
thdrawn and
is
no longer available, the situation
inati
ploy
specified defaul
notice is rca-uired
ate the co
terminate the employment of the contractor by reason of

the event of the insolvency of the Contractor. A warning
he actual notice of termination by the Employer.
he contractor's insolvency, whether or not the Employer decides
ractor's employment, are set out in clause 8.5.3.
If the Emproy
ecides to terminate the contractor's employment, the respective
rights and duties of the parties concerning payment, removal and completion are set
out in detail in clauses 8.7 and 8.8.
The contractor is allowed to terminate its own employment for specified defaults of
the Employer (8.9) or in the event of the insolvency of the Employer (8.10).
125
JCT IC0511CD05
Either party can terminate the employment of the con
listet neutr ca
(811).
The respective rights and duties of the parties co qrning-ymeniremova
0
8.1 1 are se out in d*,tai
completion following termination under clause
clause (8.12).
8 Miscellaneous
Definitions are included 0.1).

There is
contracting out of third part
iahts,underth)a CoNf- acts
Parties) Act 1999 (1.6).

t
There
is
no reference to access for t
There
is
power to exclude pers
Arch i
quities.
Contract Sum Analysis (Sec
(original series, green cgver)
cital) is define.
seful ex
ITa n
2.5).
9 Disputes
rants, Cons, (ructio

II of the Housing
ifferenl
party a statu
adjudicatiq Article 7 p
Part
Act 1996 gives either

spute arising out of the contract to
d Regeneration
durO
isions
e adjudica or's derision is
ding on the parties at least until the dispute is finally

proceedings.
I
ation may be selecte

(Article
The appointment
are clearly defin
greed method for final determination of disputes
rbitr for is subject to clause 9.4, and the arbitrator's powers
The parties agree that either may appeal to the courts on a question of law (9.7).
Arbitration is to be conducted in accordance with the JCT 2005 Edition of the

Construction Industry Model Arbitration Rules and the provisions of the Arbitration
Act 1996 shall apply.
126
JCT IC05/ICD05
Where the Contract Particulars do not indica
then Article 9, legal proceedings, will auto
rticle
apply'
127
JCT IC05/ICD05
(-1
This contract?
If considering using IC05 or ICD05 remember tha
hout special. t instaRatio

fo tender The E plo
Q30
L.0
It is intended for building work of a simple con

and where the work is adequately specified o
required to appoint a contract administrator
rA
quan%
sAai
aisE incorp n ated.
site
sisin
A-4
-+,
too
i-+
If used for work in Northern Ireland an Ad

tion ch
le
The form is not suitable for use in Sco nd, an
re
Scotland, the appropriate SBC form sho d be med.
is
eyor.
+`J
There is now a version which provid s

the ntra
to desig
id citified part
of the Works. This depends on detail Emplo is quir
bein ssued at tender
stage. Although the contractor is to sub it furt
de n in
io
before work is
carried out, the Employer wo era e Fu he to se ut
ctly 0 hat information is
required and when in the Re m uirements. SIlO
t at ICD05 does not
also
no
include the detailed design s bmissb-n-E rocedure s out in BC E 5 and DB05.
r+
S`<
for partial p N ssess o n and

io
etion. There are also
provisions for the cont, ct an or its b-contr tors p provide collateral warranties
on JCT standard for
to pu Chas tenan fun ers a to the Employer. There are
no provisions for T i rd Pa
Rigl
It can include
ntrac
be n
are two procedures. The first
ed, anc the
requires the naming
ay seem inflexible but brings greater
be pre-con fact an
certainty. Th rsecon a
ming urih construction and is covered in the
s for
contract by provisiona
m: n bot
b-contractors are domestic and the
es the
responsibi ity oft e
icated documents is mandatory with
in C tra
r. Use of d
named s -contr for As e mai contr for is not responsible for named subcontractor d iqn, e ployer should be
ised to use an ICSub/NAM/E agreement
for
ch na
d
b-contr for involved in some design relating to their work.
(Do-
^.,.
-+-
It allows for sub-
a pz etin
the
rm"ossessid
cisions are required relating to matters including

ds (fo dvance payment, 'listed items'); insurance of the
Orm,
de
at.
L~'
W en
,n-
,-+
5-.
L.0
Wo'
0j1
W o s; Joint Fire Cod

A ted damages; fluctuations; and electronic
Ii
co mm
-cations. autior is peded over naming a quantity surveyor-this should not
be left blank and e n if he Er ployer does not agree to appointing a quantity surveyor,
the mechanism
the contra t still requires a name to be entered to fulfil this role
(usually that of th ArchitectY
(-n
tom
If acting as contract administrator note that while the procedural rules are less
demanding than those for SBC05, care is needed to make sure that action is taken
within a reasonable time even though no time limit is stated. This is particularly so
concerning named sub-contractors.
128
U'7
-43
Amendments are issued by the JCT from time to time. The form is available on disk.
The RIBA publishes contract administration forms for IC05 and ICD05.
JCT IC05/ICD05
(lD
nonOnO
p>>
Intermediate Building Contract

Intermediate Building Contract with contractor's
Intermediate Sub-contract Agreement
Intermediate Sub-contract Conditions
Intermediate Sub-contract with sub-contractor's
Intermediate Sub-contract with sub-cont
Intermediate Named Sub-contract Ten
Intermediate Named Sub-contract Cori
Intermediate Named Sub-contracto
Contractor Collateral Warranty for
Contractor Collateral Warranty f
Sub-contractor Collateral Warranty
Sub-contractor Collateral Wa
Sub-contractor Collateral
Intermediate Building Co
Intermediate Buildin Sub
129
JCT
MW05/MWD05
N
vrk
ea
The Agreement for Minor Building Works,
for minor building operations and mai tenarse
Form of Building Contract (then JCT63) as clearly i
long, compared with nearly 40 pag
t oe
with bills of quantities, and was sta.
suita
not exceed 8,000.
fn
in
whi
op
Fo=t w
here th
1963 Standard
the 1970s the RIBA, consci
nae
ew, simpler 'short
Form and the Minor Works 4greement,; set
approve
with acclamation in
form' of building contract. IBA C
June 1978. The aim was fo a fo
page contra_t
itions written in plain
v un r eight h
English and structured
accepted the proposal
in principle, but the re po
heicar vrking
ip w to-draft a new 1980 version
nifica
nce,
wever, and this was the first
of the Minor Works rm. It
rranged under ection headings. Incidentally
time that Conditio in JCT
resu
ce in the, rafting of IFC84.
the 'short form' oncept
vii
In
tai
MW80 was the subje

the Hou7ntrat
foi
of the
MW80.
Ament
In
11
Ame
tructio
ildin
of which was to take account of

tion Act 1996. The 1998 Edition
basically a consolidated version of
e last
egern
orks w
2005 the
J CT
of
inor Buil&"orks was revised along with all the other

new editions were published, entitled the Minor Works
inor Works Building Contract with contractor's design.
ding Con ?ract,àq
iifica.nt c
course, the introduction of the new version allowing
derta a limited amount of design. This new version will
hkaWcontracto 0
ubt be very welcom as is requently the case in practice that even on smaller
ome d gn ' put om the contractor is needed, and previously there had
m ithin lthe JCT suite.
91nzb4 f
s, a
vii
Q.;
'"*
The 2005 editio s also con in some other changes. The format, sequence, clause
numbering and ter
y have been revised, and the language used has been
clarified throughout. There is a new Contract Particulars Section at the start of the
Form. The Scheme for Construction Contracts has replaced the JCT's own adjudication
provisions, and legal proceedings, rather than adjudication, are now the default
mechanism for the final resolution of disputes.
130
JCT
MW05/MWD05
The Minor Works form has always been a

editions are undoubtedly an improvement
extensive use of this form.
all pr
en
cts.
uraq
vim,
73+
ice for
ands
The Minor Works Building Contract

now pu
contractor's design' which has prcvisio for e cd
portion of the Works (MWD05) an one wh
doe
respects the versions are identic
therefor h of
raise
to apply to both versions, unless
othese.
Both versions of the form e ove

up only around half of these. he Ag
and eight Articles, and
sons ar
but the
nclWe,,- ur
thon
t un
A two-page Contrac 'Particulars

at th
information relating o the
rt. There
two
Schedule 1, incorp ated by clause 7ers
incorporated by
.11, s,a fluctu tic
at the back of
aears on
fl)
fl,
in the G
fl,
use
et o
form requires entries of
ed'dles at the back of the form.

a udication, and Schedule 2,
Guidance Note is also included
he inside of the front cover of both versions,

dance Notes. These give a clear reminder that
rere the ient as engaged a professionally qualified person to
inistrator in administering the terms. It is for use
e contract a
works of simple character are to be carried out for an agreed
not for use with works for which bills of quantities are
tion is likely to be such that full labour and materials
ie d
e r quired. There is no provision in the form for the Employer
sub-contractors for specialist work.
3
itals (five in MWD05)

on headings.
e. However, it should be remembered

be the entire picture. Terms might be implied
e used with thought and treated with care.
relativ
ressWstated
?minim
sum. T
or
fluctuations provis
act Conditions take

R
tr ctor' design' version, unlike SBC05 and IC05, contains very brief
provision relating to hat design, and does not include requirements for approving
design info
do
or for the contractor to carry Professional Indemnity Insurance.
MWD05 should therefore only be used where the design input is limited, and should
never be used for design-build procurement.
,-+
The 'with
fl,
fl,
There can be 'Contract Drawings', a 'Contract Specification' or Schedules which are

also Contract Documents (First Recital). The contractor will price a detailed contract
document, or may provide a lump sum price supported by a Schedule of Rates (Second
131
JCT
MW05/MWD05
Recital). There are no supplements published to exte d the range
ohis cobra
Minor Works Agree ntis

est work,
tract
Housing Grants Construction and Regeneration A may rh"t )ply a d the
re
to ad
ca
will therefore not be subject to the statutory
nts relatin
and payment provisions. Nevertheless, th for ms
e the Vequir men t for
c
adjudication and certain procedures relating
pa ymen If
t
st ute,
they may be removed but only after takin lega dve.
In many instances where the
rey
nt
nsumer
Rgula ns
the c
care should be taken to explain th t

take legal advice. The JCT now as of
consumers in connection with work
their
been engaged, which may b
le.
or
oil
(SI
umer, or
tractscially
4/31
o which
might apply
mer should
d for use by
consultant has
Synopsis
1
Intentions
lete t
The contractor is obli
whe
Contract Document
requirements (2.1
s in accordance with the

applicable and the statutory
e Contr
or
is
is
toolMe further infor riatio
reasonably`Rec
ary
itect
(5,
ny
elating to the Contractor's Designed
MW, 05 only).
furt
information necessary to enable the
-4 in MWD05).
nsisten'
eated as
s ir1
or betw en Contract Documents shall be corrected and this may be

nstru
'variatio
(2.5.1).
rxa 0
i l
arty uncle
to
The,
erest
older that it will comply with the requirements of the

rchitect is to act as CDM Co-ordinator unless the name
d in Article 5.
Time
The Works may be commenced on and shall be completed by dates to be inserted in
the Contract Particulars (2.2 or 2.3).
The contractor is to notify the Architect if completion by the stated date is unlikely,
for reasons which are not within the contractor's control (2.7 or 2.8).
132
JCT
MW05/MWD05
The Architect is empowered to make such e

(Note: no specific grounds are listed.)
If the contractor fails to complete by the
damages (2.8 or 2.9) and the rate is t
there is no reference to a non-compl ion ce
Practical completion is certified by the
chit V (2
eferi-M
,-
ssior
s_r
ate..
lige
tify
period m b sta
ian ha
en
ha
Following this the contractor is

three months, although a long
by the Architect when this o
There is no provision for
Yentitle'dc
tract P,,i i.cu
for p
sectional completion.
nt witbeut Written c
itten konsent to subwcd
ract is
erson' Ts to
ion fdr a cl
e &,Qo pro
fl-
sub-contrac. or, and no provision for including a

at neith 'r is there anything which prevents this,
estssuitable ways of achieving this.
_+.
ote h Veve
s Ver: on su
'"'
provisi
oved fi
mall
-a,
(Dg
ons ar to b issue in writing (3.4 3.4.1) but may be oral and

lnstru
ns ma include variations (3.6.1) and this would
onement, s no specific reference is made elsewhere.
or testingg"r ripening up of work. In the event of failure to meet

Is, and problems over remedial works, refusal to certify leading
Id seem to be the ultimate sanction.
ork to be carried out by persons engaged directly by the
The Contract-S-fm is
AT-exclusive (Article 2).
is fixe price (4.10) except for limited fluctuations (tax etc.) provided for
by Schedule 2-(4.11). A percentage addition entry is required in the Contract
Particulars. (If none, NIL is entered.)
0-)
Instructions must be given if provisional sums are included (3.7). The cost of variations
is either to be agreed in advance or valued (3.6).
133
JCT
MW05/MWD05
Direct loss and/or expense is limited to variations

included in the valuation (3.6.3).
Progress payments are to be made at four-week)
issue certificates (presumably to the Employer).
a
different figure
is
Archi
per ce)
entered).
s of
he mod
Certificates of Progress Payment will
n
the
ou
nt
ntr for
calculations (4.3). The Employer must
intends
not
than
five
a
e
is
of
te.
Any
he
to pay
later
days
t
ttene
intention to withhold or deduct sum must e g
by
o
and the
is n tice
grounds for such intention must b
rf7state
t be iven to the
date
final date for
aymen
contractor no less than five days
valid notices
14
from
issue
te,
nd
if
o
is
days
th
e
date
t
rtifi
payment
e to
the final date for
have been given, then paym e '
ull
quire
the cu
se ra
and can also give
payment will attract interest f 5 per ce
4.7).
the contractor a valid right to stop wo
i
A penultimate certificate
releasing all
is
to belissued withi4
t half Ne
outstandimo
is to b issu
with 28 ys of either issue of the certificate
signifying comple on of
king bO_the eects, or the contractor submitting all
necessary infor
8.1). The ntractor is given three months
tion fo the f al a
(unless a different "ciure is
ted in he Contrac
iculars) from the date of practical
this.
completion t
Certifkat'e with
's apply to thèFi
The fi a
to f
ent in this
ue of e Fi al C tificat
r,
Q-1
The Final Certificat
ations
s
mply with all statutory obligations, including giving all
the contkactor's
n-6t
contractor
is
require
to not
chitect in writing if it finds any conflict between

other contractual obligations. Having done that, it will
under this contract (2.5 or 2.6).
is
S
i
obliged to omply with the CDM regulations and particularly, where
the project is note
e
comply with duties in relation to the Construction Phase
Plan and the Health and Safety File (3.9).
The contractor
6 Insurance
The contractor indemnifies the Employer in respect of personal injury or damage to

property (5.1 and 5.2). He is required to arrange insurance to back this (5.3). The
134
JCT
MW05/MWD05
minimum cover as
contractual obligati
Particulars (5.3).
The contractor is obliged to arrange insur
damage by perils specified in clause 5should be inserted.
There is no provision for the Employer
Joint names insurance of existi

alteration or conversion, is
requirement is for cover aga
The Employer may terminate t

satisfactorily with the,
Regulations, or if
warning notice, bu
for if it fails to proceed

obligations under the CDM
he Architect may issue a
r for the Employer.
or stated reasons (6-8 and 6.9).
The contractorKnay
Either party
suspended
The resp
the Condit
'Architect, presumably this is implied.

n
of any person from the Works (3.8).
to antiquities, terrorism cover, etc.

out of third party rights under the Contracts (Rights of Third
Grants, Construction and Regeneration Act 1996 gives either

party a syalbfer righ to refer any difference or dispute arising out of the contract to
adjudic ion. Articl 6 of MW05 provides for this.
-Adjudication is to be conducted according to the procedures set out in the Scheme,

except that the adjudicator and the nominating body may be stated in the Contract
Particulars.
There is an optional provision for arbitration (Article 7), and if disputes are required
to be resolved by arbitration then the Contract Particulars must state that Article 7 and
135
JCT
MW05/MWD05
Schedule
apply.
The appointment of the arbitrator is subject to A

defined in Schedule 1.
Arbitration
is to be conducted in accordanc
Construction Industry Model Arbitration Rul
136
Editi
JCT
MW05/MWD05
This contract?
If considering using MW05 or MWD05
emb
tha
his
for small building work q a sim

one-off' ture,
suitable
for jobbing or maintenance type w 'rk. The ar
ons one To use where
some design input is required from th contractot, n -one wnere it is na t. It can only
It is intended
ea
be used where the Employer has e ag

p
essi
C aDSUILanr ro e ct as contract
administrator. There is no prov, ion
antit a ra aitne ugh a quantity
b
o
surveyor may be named, it is ith no eci
le
r th
on ilA ions.
If used for work in Norther

The form is not suitable
Scotland, the SBC Scottish
Ad u tion Sche'du'lesh Id be incorporated.

land
wher th intended work is in
r'
use
or Wo
fd
is
JvailWe.
There is no provision br phas

co
letion, am p o
b-contractors, or design by
the contractor. The orm is dra ed to
pli
lude c
with the CDM Regulations,
and with the Housi g Gri ts, onstructio
nd R eneration Act 1996, whether or
not these apply in f to t particularrccl-*ac Whe, completing the form decisions
are required r
ng t insu nce of t e Wd ks a
damages for non-completion.
i
If acting as contra
adrri rtyistrato , not that Ithough the Conditions are likely to
prove ad uate f a r mo
itu ions, should th nature of the work require it, then it
might b advisa le t clari the` cedural les pre-contract, especially if working
with
con
Am ndmeri
T
RIBA
the fi t tim
ctor
r
ublis
sued
the
fro
time to time. The form is available on disk.
sc tract o ministr tion forms for MW05/MWD05.
at
98 was Appropriate for contracts up to 100,000 (2001
was so ti es used incautiously well beyond this. The new JCT
ic Note doe not suggest a limit in value for MW05, but it is unlikely to be
fo large ojects. Although the conditions are clearly worded and the
are b f and easy to administer, it should be remembered that the
Ded
aLru
p
ition to those expressly in the contract.
d-w may imp
er
in a
e JCT'su gg
pri
in va
ted
but
sle
fl-
The
suited to commercial rather than domestic work where
t-hpre-ifa'n be p oble s with the client remaining in occupation. For slightly larger
se wh ch require more comprehensive conditions, then IC05 might be
projects, or
a safer
For
nice.
ork on domestic projects, perhaps consumer contracts, then the
JCT forms o
e owners might be more applicable. The Minor Works Agreement
in
has featured
a surprising number of court cases, often due to use beyond its
intended limits or because of careless administration, and a RIBA expert has
commented that although it appears to be a favourite with the profession, at the
same time it appears to be little understood. It has limitations, particularly concerning
the design insurance and determination provisions, and needs to be treated with
respect and administered with diligence.
E
137
JCT
MW05/MWD05
Minor Works Building Contract

Minor Works Building Contract with contractor's design
Short Form of Sub-Contract
References
Practice Note JCT: Deciding on the Appropriate JCT
Commentaries
David Chappell
The JCT Minor Works Building Contract
3rd edn, Blackwell Science (2006)
Sarah Lupton
Guide to MW05
RIBA Publishing (forthcoming)
David Chappell
MWO5 Contract Administration

RIBA Publishing (2006)
138
JCT RM06
Repair and Maint

(Commercial) 20
Background
The Repair and Maintenance
ntract Co
on 'individual, substantiall
, pro
specified buildings or sit `s'. It
iced
Building Works of a Jobbin Chara
ployers w o ha
undertaken from me to
in the 6
would be reasona y exp rienced in co
use by home owner
does no
and
is inte
for w
ich
which requires small jobs
bu
u re
ions of Contract for

originally introduced in
in 1998.
paw and maintenance, and who

oning uch work. It is not intended for
o
role of
contract administrator.
ed small proj cts, but is not to be used as a term

m Cont ct would be more appropriate. It allows
ases or pri ng, either as a lump-sum contract, or as a rei
fferen
Mea
ntract,
ition
for
the
with
1990, but not re-published al

The form is for e
re
ixtu
k mea
of the two with defined work being priced

red using an agreed schedule of rates.
as
lativ y sh
running o 18 pages in total. Unusually for JCT contracts,
safo rm of in tatio to Tender, and a form of Tender. It also includes
Contract Particula r , and a g
ance note, together with 6 pages of conditions
ge un der
ven Sections. In contrast to the contract for Home Repairs and
tenanc this cwract follows the format of the 2005/2006 suite
he
06o
is
ai
use by local authority or commercial clients, who will be

orders for such work, and in dealing with contractor's accounts.
All the etails regar ing the work to be carried out and the information required
under t
ontra Particulars must be sent to the contractor at time of tender. In
particular, the contractor must be told on which basis it is to price the work, as a lump
sum and/or a schedule of rates, and the start and completion dates for the Works.
+"'
The contract will come into existence after the contractor has completed and returned
the Tender form, and the Employer has accepted that tender. The completed tender,
signed by the Employer and returned to the Contractor, is the evidence that
139
JCT RM06
O_'
agreement has been reached, and there is therefore o nee

an attestation. As an alternative, as explained in
e Gu
ployers
conditions may be incorporated by reference in an
relevant parts of the form should be marked 'no
or reals, acle
anclotethe
r,
06
in-Nhich ise th
fl,
It should be noted that the form does not incl de any

ce to health did saf
will ap
or to the CDM Regulations, although there mi t be occa
ffe
desi
either in full, or to the extent that Regulati
The form is generally compliant wit the
hovu ver,
Regeneration Act 1996. It should be not
for payment in a single stage, for so
this
several stages for payments will ne
ified.
ts,
not com
vh ith
Synopsis
1
Intentions
orry out
The contractor is obliged to blige

competent manner, in accor ance
ith all appj
As there are no article ,th
tender and the Cont ct
Works`
a regular, diligent and
islati n' (2.1).
carried
Pa rti
further infor.
bliged,
o car
epted
jes, these w,
or shall be completed by dates that are entered in
work ma
ployer must fix
tion date if the contractor
a n
is
delayed for
reason
its contr
nable endeavours to prevent delay (2.4).
ici,rfor
liq
dated damages.
There is no requirement for a statement of practical completion, and the rectification

periods runs for six weeks after the completion of the Works.
3
Control
There
140
is
no bar to assignment.
JCT RM06
is no provision for naming or listing
included in the specification.
There
The Employer may appoint
representati
The Employer may issue instructions r

is limited to those of 'a nature and s
Works' (3.4).
4 Money
The contract may be let on a lu
combination of these.
Variations are to be value

by the Employer on a fair and
and including an a
s,
or failing agreement
rates where applicable,
fered (3.5).
Payment may be b
If instalments are used, the

Employer must pay within 14
contractor is to inv
days of the invice
On comple
(4.4), whi
the JCsuite'Statutory Requirements' are not defined, instead

out the Works in accordance with all applicable
icable legislation' (2.1) would include the CDM regulations,
c mention of these in the conditions.
The con
or is to demnify the Employer in respect of personal injury or death, or
damag to property ther than the Works caused by its own negligence (5.1 and 5.2).
This is to-15 bac
by insurance, and an entry in the Contract Particulars will state
the minimum cover (5.4.2).
i
Unless otherwise agreed, insurance of the Works is the responsibility of the

contractor under a joint names 'all-risks' policy (5.4.1).
Insurance of existing structures against listed perils
is
the responsibility of the Employer
(5.4.2).
141
JCT RM06
7
Termination
Each party is entitled to
terminate the contract imme

insolvent, or after a seven day warning notice has b
material breach (6.1).
The Employer may terminate the contracto
corruption (6.2).
8 Miscellaneous
The contractor must take all reasona6
contractor's etc. are registered cardh
Scheme.
There is no reference to access for the
implied.
9 Disputes
Disputes may be resolved th

Scheme for ConstructioK-Contr
There is no arbitratio clause/ther
a claim through litigation.
re eit
party world have the right to pursue
incorporated forms of invitation and

order. Ità so (lows for a variety of methods of pricing,
ssioning work of this nature.
form doe not co

ovisions for liquidated damages or for retention, and
r
n where the contractor may be undertaking any
e is othi
oc
d to experienced employers on very short, onedesi n. It ill therefore b m
mer
p ects MW05 or MWD05 should be considered, and
off job For longer
where a s
jobs re a ticipated, MTC06 may be more appropriate. If the
Employer is there
occ pier of the property on which the work is to be carried
out, the homelo ner occupi contracts may be used.
Th
'
O-0
th
Related matters
Documents
Repair and Maintenance Contract (Commercial) 2006 edition (includes a Guidance Note)
142
ACA Form
Association of Consultant Archite
ACA Form of Build

Background
byye
(DD
fl,
When the ACA Form first app ed, itwas

a
retion against the
relatively complex procedur
ce
o years later some
of the advantages claime for
rm eva
eA
d when IFC84 was
introduced. Nevertheless, th
CA
rRitiativ it is still an interesting
an
form unencumbered by tad itior nd ha
e fir'
ished. The first edition
took two years and Xdrafts to ro ice. It
ed
t the new agreement was
suitable for use on very wider nge o
bs of
es and types (although the
initial reaction of le al co r entators steep
in th
hraseology of JCT documents
was cautious, not to ay di
issive).
rt.
a f,
he
rm
w hfch
contraan
0-
produce
architect
that the
'-{.
A ontracworkin
claimed that their intention was to
wa 'a flex
y balanced contract for an efficient
rking th a.
efficient client'. Early criticism was
rm w
fted u ilate
any contribu tion from contractors.
Indeed the
rmer 'Nation Fedel tion of Building Trades Employers advised its
ter int contra/is u g the ACA Form. However, it has been used
vii
obs, in ding fast-track projects. Major client bodies
essfully on
variet
t
ye
us
withou
problems, and the British Property Federation
pear
orm
opera
a
fthef, rm suitable for use under the BPF System of
o
ocremen hich vas not vJithdfawn until 1998.
At the outset
*r
^'+
viin
is little evid
ce of problems with the form, and no body of case law has yet
built upmay
that the ACA members using the form are, in line with the
nefficie architects working with efficient contractors.
included a number of significant improvements. The form

and revised from time to time. The Third Edition appeared in
dme is needed to take account of the Housing Grants, Construction
neration Act 1996 (Part II).
fl,
The second (1984

der r viev
ke t
The ACA has continued in its progressive and non-traditional path and recently
launched the first standard partnering contract. (See Chapter 13 below for further
details on PPC2000.)
Nature
fl..
The total document runs to over 30 pages. There
is a
contents page which lists the

143
ACA Form
Sections in which the clauses of the Conditions ar
are Vouped his
Agreement which includes alternative clauses relat gto t
appointed; who will be responsible for the pre aratio of
details; and whether the Works are to be compkte in Sec
is
olloW
s a
Flexibility is a feature of the form, made possi e by t

alter tives oth
Agreement and also at various points throug gut the Co
The
ies exe
the document either as a deed, or not as,,kd
at
e en
e Condition
expressed intention was to produce a for i wh'
w pl
wo ed. oweve
of the terminology used is peculiar to t e ACA for
m' t cau
administrative procedures are relativ,
then
s
tho
guidance on their detailed use.
t otRer-forms
Examples of where the terminology
completion date: the alternat e ciau

tensi
taking-over in parts, and p Bible accel ration;
contractor of his
ement,
extra costs: the production

of an architect's instruction,
information: the atte pt to

the supply of infor ation
design: the atte
contractor are eac
maticA
ontract th
ablis
iablefbdthe
ign
ofthe'
which follow after the Conditions.

is to be completed as one
operatio or Alrhative
be completed in Sections. A further
Schedule ovide or etail n the
ue of ' formation; what this is to be, who is to
be resoonsi
, awhen
t is to be pplied. A final Schedule provides stage
To help in m ing t'
The Time chedule o
ible, th
e are
the
rnati
wher
the job is
1the job
-0.
Q..
..
"e
cost r type of job for which the form is thought to be

o
ithout a bill of quantities and where no quantity
used where the Employer is private or is a local authority,
tion is by an Architect or by a supervising officer.
(13
r
suggested IT t
suits e. It app
can be
ed w h
surveyor '
ted. It an b
and where contr
inistr
Th re is
>.-
144
N-0
ms's
The contract ca
fixed rice, or fluctuations based on an ACA index can be
incorporated. The form may be used as a traditional work and materials contract, or
the contractor may be required to accept a measure of responsibility for design and
the provision of drawings. The flexibility in the document is made possible only by the
introduction of alternative clauses, and great care is needed to ensure that the
intended alternatives are clearly evident.
ACA Form
The Third Edition takes account of the Housing
Act 1996 (Part II).
onstru
on anit
Regg
The contractor is obliged to execute ari

strict accordance with the Contrac
skill, care and diligence (1.2).
What constitutes 'the Contr

Agreement, and incorporat
re is a
.-r
The provisions of the printed
Alternative 1) or may be
t he A
The drawings may b supplied sblely
takes responsibility
details
fo
hich
cohtractor
supplemented by dr wing,
2 in clause F of the
r
Alte
ative
1
or
is
will
Iso
be
evident
(2.1 Alternative 2). T
Agreement.
`r
ons)ble for-the
hd vvarrts con)
is res
him,
racy
ance
of drawings and other information

ith performance specifications and
purpo
is to
e Schk
phas
w
ers e
pntrid set o6f the

ernati e 2
aged directly by the Employer to carry out work

t, whilst he has possession (10.1).
i4ortant
alloor
dates. Alternative 1 is used for a single

possession in parts and/or completion by
ns.
giv the contractor possession to the date or dates stated in the

ractor is to commence immediately and proceed regularly
.-+
mployerto
,-+
Se
'ob.
permit o
and diligently (11
r''
ctor's, enO ement to extensions of time will be subject to Alternative or

laus 11.5. The first alternative includes solely delay caused by the
his architec or persons appointed under the CDM Regulations. The second
clu s for neutral causes. The Architect has 60 days in which to notify
the contractor of his or her decision, and decisions are subject to review within a
reasonable time of taking over (1 1.6 and 1 1.7).
cor
+-.
,-+
The Architect is also empowered to issue an instruction to accelerate or postpone the

dates set out in the Time Schedule. This is an unusual provision, although it may be
subject to the test of reasonableness. There must of course be a fair and reasonable
145
ACA Form
adjustment to the Contract Sum as
(1
1.8 and
result, and
1.9).
fl,
The onus is on the contractor to notify the Archit

taking over by the Employer. The contractor
outstanding items. The Architect may then is eaTa
architect's list of items which need attention b ore taking
even though there are outstanding items, And
is rsnect
of practical completion in JCT forms (1
a re reag_y
ìtract
Lis
cate r issu
Where the contractor has failed to have

dates, this fact is certified by the Ar
(1 1.3 Alternative 1 or Alternative
WoN,s rea
`Jor tk-inci ove
es may menpec
Outstanding work at taking over, repairs eplace

as instructed by the Archite
either=
or im
Period (12.2).
The contractor may be req
Works or any Section
3
allow the
sted
for
the
ertot
ueofaTac
Control
either party r
om this
is and
ney is
work by t
actors
ne,al
r
in Contract ocuments. This may be by way of a

n
m. If t Vs arises out of an architect's instruction,
siona
is
nar.ght of r
objection (9.3, 9.4 and 9.5). The
onsible f all sub-contractors, including those named (9.9). This
rs of
;*ign, compliance with performance specification, and
v be
or
pro
"sable
0.)
full-tine
e
sl
r y is
I
Facilities are to b
fl,
`s
'nsible for all management of the Works , and this

lanning and superintendence (5.1). The contractor
e manager a person approved by the Architect. This
d (5.2 and 5.3).
fl,
access and visits by the Architect, both

v_,
contractor is clearly
kks
to the Works
and workshops (4.1 and 4.2).
146
--0
_+.
far
Instructions and notices given by the Architect must be in writing (23.1) although the
contract does allow for oral instructions in an emergency, provided these are
confirmed in writing (8.3). Matters on which the Architect is empowered to issue
instructions are conveniently listed, and include removal of work or materials from the
ACA Form
site, dismissal from the Works, opening up
connected with the Works'. Immediate c
required (8 1).
fg varia ns, a
'an
by ;V con
ctor
4 Money
The Contract Sum may be adjusted in
will become the 'Final Contract Su-m
Agreement, and 15.1).
A quantity surveyor, if appointe

may be defined (15.2 and 1
The contract may include
is
cordance
oth , re e
named i
iEtions
flucf
rally
A index. Deleting this

and 18.3).
'
e inclu
ction with
cto rs
rah
ct's structions vvikta

vide
tract
i
fl,
of
(if appropriate)
be instructed and valuation made

otherwise on a fair and reasonable
7.3
is to the co
stage
ractorrill
rnative
the
ting th
and
ap
be either on the basis of monthly valuations

fl,
17.2,
comMance kan st
r ach
h
B)
(16.1).
htractor is to present the Architect with an

total due, and supported by documentary
fl,
not
.-+
Sched le
evi
ue an Interim Certificate within 10 working days of receipt of the

ting tN amount due and the basis of calculation (16.2).
0-O
t
mplo
p
contractor written of
ian five
da s
vrkg
oex.i tithe
is 10 day
fl,
nt
to withhold or deduct any sum, he must give the

wing the amount and grounds for such action not later
ore the final date for payment (16.5).
'-`
tion,
,-+
appli
ise entitled to payment of the amount certified. The final date

from the date of the Interim Certificate (16-3).
Retention of 5-p7cent will normally be retained by the Employer, and in the case of
private employers will be placed in a separate bank account without obligation to the
contractor for interest gained (16.4).
fl,
-c-
The contractor has 60 working days following the expiry of the Maintenance Period
within which to submit a final account (19-1). The Architect is required to issue the
147
ACA Form
Final Certificate
within 60 days after the contractor
under the Agreement (19.2).

The Final Certificate must show the amount
calculation is made. The final date for payment
of the Final Certificate 0 9.3).
5
on
vvRc
lowince
Unless instructed to the contrary, the c
requirements and to make applicatio
tracts Ngui
give rCotic
If there is any apparent conflict

t
e C
requirements, the contractor mus otify
(1.6). Where the contractor is respo ,ble fo
responsibility for ensuring co
wl statu
to c
pàees
ct
ing
The Contractor, where also appointed rincipal ontra

obligations in addition to tatut ry d-dties relatin o hea
include cooperating with t h Plan ing
in r
Safety Plan, and the
a
Saf
File.
d statutory
uean instruction
e also assumes
(2.5).
articular contractual
and safety (26). These
pect of the Health and
6 Insurance
In respect
of per
the contractor g
to the extent
to roperty other than the Works,

will be reduced proportionately
indemnt y-.ted to the injury or damage (6.3).
nal inj ry or
Rs
eat
oyer a
the
mployer
i,psurar e
ver ag
tract, althou
be by the conntractor (Alternative 1) or by the Employer

to be in joint names. The Conditions do not appear to
to be covered (6.4).
ernativ`
ate saecifi
ditidnaKnsurance
erty (other than the
nuis
nst these indemnified risks to no less

of course this will not limit his liability
("
irement for an agreed sum against damage to

is no negligence etc. by the Contractor,
here there
).
tractor to take out design indemnity insurance (6.6).
The contract includes for termination by the Employer for stated reasons of default.
The last one is simply where the contractor 'shall otherwise be in breach' of the
agreement (20.1). The Employer is to serve a default notice, which may be followed
by a termination notice. A dispute over this may be referred to adjudication (20.1).
148
ACA Form
The contract also includes for termination bf the c tract
for `s
default by the Employer. A default notice
n
may b issu
to e
termination notice. Adjudication may be ed
disn
re th re is
w4
theucontrattor's
Either party is given the option of to

grounds of insolvency. It is not auto
Either party is given the option of termi
causes (21).
ons 6f
ed
motion
(2
tinghe c
em'ployme
The consequences of terminati n, and act`bq'tQ beV

of site, sub-contracts) is deal
en
8 Miscellaneous
There is an optional
obstructions on the s
s"t
J of the Agr ement

of Third Parties Act) 999
Clause
be deleted and
the contract.
clau
ill
s that third part

not apply, but margi
sub stituted w
li
ie
nder the Contracts (Rights

note states that clause J may
who may be given rights under
I
is
advicy the
actor are hi s responsibility entirely irrespective of

rchitect
ers are
ess
ed
to site (10.3).
toe the p operty of the Employer (14.1). The contractor

Archite
There are aernati
for disputes to be resolved by four methods. There is first

adjudication (256), and finally provision for either litigation
fl-
AI
greer
liation (2
native
7-.>
ne
(Alternative 2) (25C).
sions relating to litigation and arbitration depending on
is English law or Scots law (25-11).
w of the contract
--+
Conciliati n can mea reference to a person named in the Agreement, or as otherwise

agreed f
e parties Where the parties sign any written agreement on the terms of
a settlement,this is to be regarded as final and binding (25.3).
Under the Housing Grants, Construction and Regeneration Act 1996 (Part II) the
parties have the right to refer any difference or dispute to adjudication. The
adjudicator may be named in the Agreement, or be otherwise appointed in
accordance with the CIC Model Adjudication Procedure (25.5).
149
ACA Form
Adjudication is to be conducted according to the CIC
and the adjudicator's decision will be final and bi
finally determined by arbitration or in the courts
Arbitration is subject to the provisions of the

law, or its counterpart if under Scots law. If t
of the arbitrator, the appointor is to be th
Arbitrators (25.9).
150
ACA Form
This contract?
If considering using the ACA form reme
It is intended for lump sum contracts,
e used rega
though
certain clauses may need to be delet
if th
ryer is
6tho . It may be
used with or without a bill of qua titles. W
needs
fully
'signed and
reasonably well documented at to de r
g
Itho
re is altern 'tive provision
for further detailing by either the
chi ct
the
ctor. j6 ossession and
completion may be in respect f a single
ct
od
onal completion
in accordance with a Time S
Th
plo
is q red t
ppoint an architect
or Supervising Officer, and
iQ a
tity surv
The form is stated to be su
relating to litigation a
law of Northern Irel nd.
A notable feature
most situations, for
including dra
insurance of, the
payment p riodic
Sections. he fo
contract s, de n
ooi
is lam
ila
itra
ther are alternative clauses

its suitability under the
his the
native clauses available to cover
ran'
relating to
-u C on
at
further necessary information

adverse ground conditions;
magi s; grounds for extensions of time
resol tion; possession and completion by
in ave
simple way with naming of suby sub tontr
s
the procedures are kept to a very
minimum. TU flexibility c
be ac eved all within the one document, and without
the eed
leme
olt-on document is the ACA Conciliation
Pr
edli'
cur'rts;
cedure 1998:
ompl ing
binati
co
',Of
ility
ticular care over selecting the appropriate

completing the Schedules. The form has a logical
e and the
nguage use-'is straightforward Fnglish. However, some of the
may b unfamiliar to regular JCT users.
he
uires p
f alter
di
inistr
r is
given considerable authority. The procedural rules are
ishes standard forms and certificates
for use with the
for traditional procurement, attractive, concise and modern.

ted to contracts which are middle range in value, and in this
pared with JCT IFC98. It seems not to have attracted adverse
-'tractors despite its unilateral production.
151
ACA Form
ACA Form of Building Agreement 1982; Third Edition 1998

ACA Form of Sub-Contract 1982; Third Edition 1998 (200
ACA98 Appointment of a Consultant Architect
Notes
152
GC/Works/2
GC,/Works/2 (1998
This is sub-titled as a Contract for uildi
Civil
a
Works, but it
is more in the nature of an int
ndin
rm
e major works
GC/Works/1 form and the G
orks/4 s m a
ks c
ded for contracts
act.
of between f25,000 and f2
in v
e, an
or
litio works of any value.
It replaces the former G
ks C1010 (1990).
0) a
e old s
eraKo-rrdition
,-+
It is published as a two volu

Commentary. The for
The form is for use
0-D
ith lu mp um terms ers in

e basis of Specification and
drawings only - ithout pr ision for t4s of
antities, and with the optional
requirement for the ontr =tor to subma
dule f Rates to enable fair valuation
of any variatio
'ral
Codditiotfs
some 45 p es and follow the well established
atter o clear Araphi`c
raightforward language and standard
he Introdu ion a
ontents list are followed by the Conditions of
4$, structi red L/ndE
e headings.
E
fl'
he
C/Woi`Fks for
there is a very useful Schedule of Time Limits
ndex. se of the odel Forms is essential. Model Form 1 contains
d endum; Model Form 2 is an Invitation to Tender
ti ulars an
wings; Model 3 is a Tender and Tender Price Form; Model Form
4 car7ies
urance Documents; Model Form 5 is a Performance Bond; Model
any Contract Performance Guarantee; Model Form 7 relates
djudicator; and Model Form 8 is an 'Order to Proceed'.
eat
Sotfie A p p o
The latter is in e ct
`struction to the contractor to proceed with the Works on
specifOd-d`tg. Th e is no separate Contract Agreement.
E
Use
.-+
,-+
GC/Worh1Z has rel ively limited provisions, but almost certainly adequate for the kind
of operations intended. As stated in the Commentary it is necessary when considering
a choice of this form compared with, say, GC/Works/1, to establish whether certain
features (e.g. sectional completion) are contractual requirements. If so, then this less
comprehensive document might not prove suitable. The choice must be determined
by the circumstances, the nature of the project, and the balance of risks to be covered.
153
GC/Works/2
As there is no formal Contract Agreement, a contract
when the Employer signifies acceptance of the contr,
houl
e in
writing to bring certainty to the arrangement, pa
as
alm
invariably be a 'construction contract' as defined in
Grant , Constr tion
and Regeneration Act 1996 (Part II). GQWork
no provisioh for a q n
surveyor, but a Project Manager and Planni
Super or
ould b-q na ed in
Abstract of Particulars, and the name of an a iudicator d a arbitr or may
be entered.
r*llt
Synopsis
1
Intentions
A fair dealings provision
is
include
The contractor is to carry out the Works

accor
(2), and instructions of the P ject Ma ge
5). T
Specification and shown o drawl n s, and wi nclu
works to be executed un er th co tract (1 ).
ey a
workmanlike manner and to he sa isfaction ofAli
iect
act Documents
described in the
ified or additional
s
The contractor is dee

affect carrying out
e sati
dditio-naL_
to
be executed
in
nager (19).
out all matters which might

will be allowed because of
misunderstanding
All 'Things' selec

described in t
of the contr
or for in
ication and rawin
by
agreeme
concluded by tender, acceptance,
Spec 'cation and drawings, etc., all taken
pancy, th e a detailed hierarchy (2).
Sri
ticula
er d raw'
e to lone
ion
is
ructions etc. may be issued by the Project Manager from

25).
apl
Tng t
give
e co
ate,
r by written order to proceed. He must thereupon

nd 'proceed with diligence' and complete by the Date
A reasonable exteA5 ion

ay be awarded by the Project Manager, only for
circumstances wholly beyond the contractor's control (23).
The Works must be cleared of rubbish and delivered up to the Project Manager's
satisfaction by the Date for Completion (21 [41).
154
GC/Works/2
Defects which appear in the Maintenance Pe,
must be made good to the satisfaction of th
The contractor cannot assign the con

the Project Manager (44). Sub-contr
Manager.
There is no provision for subEmployer or Project Manager.
i
riti
Instructions which r/lull in

quotation and ag ement, or
Manager, on fair ra es an
(26).
There
is
nor
er
The Projec Mana

cost will e bor e
e
r
pri
t setti
ter
f ecessary,
including
instrus confirmed in writing.
on wi
e v ued
herever practicable by prior
rele nt ch
r aywork, or by the Project
e
s, and will
clude r disruption or prolongation costs
ri
repre
and
an
out,
byeon
on any
truc
The Project Manager may

e
variations (25). Notices m t be
The contractor must comply
to t
tive ar
ctor where
contractor's person-in-charge.
empowered to order tests, and the
ings are not in accordance with the
contract
Th
Contra
Sum it defined
N, od the 'Final Sum' will be adjusted in accordance
ust give written instructions before provisional sum work

e valued as provided for in the contract (26).
is
contract
-.-0
.-r
certification by the Project Manager, shall be entitled to

advances on account (30). Valuations will be prepared by the
and, if ag ed by the Project Manager, the sum due will be certified by him.
The co ractor may,fiave to allow credit for old materials. 97 per cent of the value of
work execu
value of Things for incorporation will be paid during progress of
the Works (30).
On completion, the contractor can expect to be paid what the Employer estimates the
Final Sum to be, less half the retention (31 [11).
155
GC/Works/2
The Project Manager will send the contractor a draft fi al acc nt
hin si
after completion, which is certified by the Project Ma ger. T e Fi=orv
will b aid
when the Project Manager certifies that the Works
in a
tisfa
ate
lowin
the Maintenance Period (31).
((D
The contract fully complies with the Housing
ants,
Act 1996 provisions concerning payment pro
d u res.
The contractor is required to give all not es, pay a
supply all drawings required to s
suN noti
obligations (6). This includes the C
ions.
The contractor is required to comply

and use of all things brought on e site
The contractor is required to omply
in respect of the site (10).
regu atisns rel
wit
6 Insurance
The contractor is requ ed

respect of his empl ees o `site,
contracts (5[11).
The contractor sha
Things for whi
main iin
a
insure'iRhint
tractor
v+
is r
ponsi
d o inse
ployer's liability insurance in

t a similar provision in sub-
isks damage to the Works and

his will be for full reinstatement value
plus profess
The cont
damage
(5[21 and 8).
mployer in espect of injury to persons, loss or

y, loss f profit or use, and will cover this by insurance
'Employe is fb"t
ctur
d may e
certain specified risks arising from work to existing

out insurance (5[61 and 8).
oyer has
det'drmine the contract for specified grounds including
Matters followin determinat' n (payment, completion, removal, etc.) are dealt with
ro'e Manager must certify the cost of completion.
in Condition 39. T
fl,
The contractor may determine the contract for specific grounds, including insolvency
of the Employer (40).
156
fl,
Either party may determine the contract following suspension of the whole or
substantially the whole of the Works (41).
GC/Works/2
8 Miscellaneous
A full list of definitions
is
included (1).
There is no express reference to rights,r

Contracts (Rights of Third Parties) Ac
The contractor has obligations

for removal of rubbish (21[41).
thirQ parties, or tVcontr

vkatchìRg, Tlghting mid
Security matters such as admi ion to th

t 0
king
(15), and Official Secrets (17) m givee
liga
eva
of the
tir
protg6on
(7) and
(16), passes
ns.
9 Disputes
There is provision for adjudica n for ere lutio o

y spute arising out of the
contract (42). Therdecisi
ise equire ent
n tice of referral and the
or t
procedures to be
owed. T e a
dicato ma be amed in the Abstract of
Particulars, and his
inding on e par s, a least until finally determined
by arbitration.
i
Arbitration
given wide
isgi* as
he
form for filial
res`glutio"6 of
disputes and the arbitrator
is
157
GC/Works/2
This contract?
If considering using GC/Works/2 remember that:
It is intended for use when lump sum tende
g invited
drawings and a Specification only. Its use is no onger
d to ce(ral govern
nagerrWho is g
departments. The Employer is required to ap int a Pro
considerable powers to act for the Emplo
ct t,exclu d
tters whit
qu tity s
be listed in the Abstract of Particulars. Th
ilit , the
and functions normally ascribed to him re the resp
The form may be used in England a
or under Scots law. The arbitration rovisi
or
oprXi
the law
the
la
Condition 43.
The Conditions are general, a
r ra rtrs'L
in tailoring the contract to t
nature of he int ded
sectional completion. Ther is no pro Ision for n
suppliers by the Employer. T e tw volume pr
ti.
Model Forms should
std as ome o the
for some flexibility

is no provision for
supplemental to th
informative.
mmeotary
of sub-contractors or
mprehensive, and the
information which is
practical and particularly
Contract admini tration sho d b e stra' tforwa

always provided that the
administrator to k
t'tduble
be mie
oroughly conversant with the
res, and
e tim li
Rather unusually but very sensibly,
terminology,
progress m tings bec`
ntract
ligatio s, although there is no requirement
the
for
pro
r
wh is has m y fe ures not found in other short forms. The
substantial d cument w N& can cover a wide range of work which
is t o comp
fo C-to u s/ 4, but not justifying use of GC/Works/1. It may also be
se n as an al ernative
si nb-JCT forms MW98 and IFC98.
This
is
result
an
i
active'
fai r
Rela
Docume
GC/Works/2 (1998) C
Conditions, Mode
158
ng and Civil Engineering Minor Works in two volumes: General

mentary
GC/Works/4
GC/Works/4 (1998,
Background
=00
This is sub-titled as a Contract for

Small Works, and obviously int
works of a varied nature. It is
replaces Form C1001 (1990
i
It is published as a two vo
Commentary. The former ind
and'are set out in clear graphic style,

minology. There is a contents list
structured under seven headings.
1
dule of Time Limits. Use of the Model

the Abstract of Particulars; Model Form 2 is an
wings; Model Form 3 is Tender and Tender
icator's Appointment; Model Form 5 is the
3 are contract administration forms.
for most small contracts where

o form part, but choice should ultimately depend on the nature
he form accepts that either all the CDM Regulations will
ulations 7 and 13 will be applicable. It also takes account
nstruction and Regeneration Act 1996 (Part II).
`visions which should be sufficient
A fair d
on
is
included
(1
A).
Conditiprevail
=otract
in the event of discrepancy, except where special

supplementary conditions are included in the Abstract of Particulars (2.1).
Specification takes precedence over drawings unless otherwise instructed (2.2).
contractor responsible for care of site and Works, including sole responsibility for
protection, security, lighting, and watching over the site and Works (5).
159
GC/Works/4
Contractor indemnifies Employer in respect of any los
work under the contract (6). There is no provision f
gage wni
nce irrthis
Making good defects in the Maintenance Perio

Abstract of Particulars (7).
'state
The usual GC/Works provisions for matters s ch as occ

passes, photography and Official Secrets, are
luded in a
The contractor's dates for commence
Abstract of Particulars and subject to t e order
toeed.
The Works must be cleared of rub

satisfaction on completion (15).
A reasonable extension of time may be

circumstances beyond the co racto
withou
The contractor cannot assi

Manager (30).
There
is
no provision
f
tructi
The Project Manag

variations (17).
Valuation of varia ion instia.c Ons wh never

agreement, or b
oject Mana er on t
contract
basis
will be by prior quotation and

of fair rates and prices (18).
ovisions re
provtsion or pr
ion and di
the WoTks_01
e contract/price (t
ccepted) may be adjusted in the final account (21).
n`ttq-the contra or ill be a er completion, unless the Abstract of Particulars

that there will be a an
n account (20). This will mean one-third payable
after
-third _sf-tfiB wo
completed, with the remainder after completion.
Applications-must em deb the contractor to the Project Manager, and are subject
to certification b the Project Manager (22).
Pa
stat
the event of
to time, the contractor may be liable for liquidated
damages, or damages at large as stated in the Abstract of Particulars (26).
In
The Employer has the right to determine the contract for specified grounds,
including insolvency of the contractor (27).
The contractor has no rights to determine the contract.
160
GC,/Works/4
Adjudication is the only provision for resolv,,
adjudicator is binding until finally determin
include for arbitration. Alternatively the p
the adjudicator as final determination.
tratAn. but-the f6
agdee to
*cep
he de
There is no express reference to righ

Contracts (Rights of Third Parties) Act
This contract?
It is intended for use wh

lu
drawings and a Specificati
only.
departments, although some p isions
le the re
sector client (for exa
Employer is required to appoint Projec
a quantity surveyor.
ed on the basis of
fined to government
relevant to the private
under Condition 24). The
ere is no stated function for
used under the la

r Sco
Bred b
ion 29'
do
ions a rela
riend althoug limited, are adequate for most small
Partic ars bec
important document. The two volume
,Abstra
acti ly presente, althoUd
erhaps a trifle over-sophisticated for this class
eP
ntract
tern'
Form
inistrNtio
y is typical
infesting
be str ightforward, and the procedures are simple.

orks ut clear.
alternativehnall Works Contract, particularly where services

rt of the Works. Likely to appeal most to those already familiar
Works
ntracts.
basi
form
other
era
(1998) Contra t for Building and Civil Engineering, Mechanical and Electrical Small Works
mes: Gene
Conditions; Model Forms and Commentary
161
NEC3 (Short contract)
New Engineering Contract Document
Engineering and Con

Contract
Background
prbed
93
at frst
Although the New Engineering Con r
the Lat
f pro
which could be used across the wh le spe
ume
ch
the need for 'a simpler and shorter inor w
a contract
eport stated
a document, the
99 as one of the
d in
the ew NEC3 suite of
was
Engineering and Construction
as
NEC family. The form has n w been re
uide wftb flow Chart
documents. There is a usef
,-r
The form is obvii oFI a,

It
thoughtfully struct
miYorta
major document.
right up-front (t conv
tract, but it has been very

paired down version of the
ial peculiar to
particular contract is placed
cu ment), nd comprises:
C
more
mages; inte/est on
h with
ke
payments; limit of contractor's liability;

arbitration procedures (if relevant).
if so they are to be listed.
udicafor an
incor
igatio
onditions
loyer's
ntract of
ply
indicate wheth
nce: si ped and dated. The offer and acceptance bring about the
u rse.
Lit; a--cchedule
thquant
onthe
Works which the contractor is to carry out, and

ntra for is to design; list of drawings; list of specifications
any wor
applicable; cons a-M&s-lon th contractor such as sequence, timing, methods, and
conduct of wor - requireme is for a Programme, such as form, content, submission
to be provided by the Employer.
and updating; an
Wor
Site Information: ground conditions, access, position of adjacent structures etc.
The Conditions of contract, which occupy only 11 pages, are set out in a similar
although not identical way to those in the major form. The clauses are of necessity
briefer than those in the major contract, and some provisions are omitted entirely,
162
NEC3 (Short
contract)
such as testing, health and safety compliance

contract administrator or Project Manage
e(e is no
e E
rrk
authority for taking empowered actions.

The language used in the form has attr, c
Sta n
cumen
consistent with other
hic
is generally attractive. The only provi tons
peNe
demanding in terms of manage nt
Compensation Events, which are
p
mily/,
terminology
is
rd, the
balance
articularly
oncern the
ajor form.
Housing Grants,
ditions, there are
icular contract is a
then the payment
es,
whic
art
construction contract to
Contracts
Construction
nti
,
unle
provisions would also
Construction
ineering
and
Add
ndu
Y(U
K)
The
cl
uses
in
is left to apply.
e in the Contract Data. The
ncorpora
by r
Contract could be a a pted
ontra
is
(Rights of Third Parties) Act
ich
t
kes
account
o
Y(UK)3
Addendum
stated
to be applicable to the
ra
t&d,
and
tl
o
1999 may also
short contract
The contract as printed does, no
Construction and Regenera on
replacement clauses conc iing a
11
ontra
as
i~sticat
een
proc
ecifi
estrictioi on
natur
ed for use with straightforward work,

necessary, and where the risks are relatively
e of contract work for which it might be
he inte ded work which must be the determining
u res
tl
tio`
arties ac
erms use
ractual spirit of mutual trust and cooperation (10.1).

ct are helpfully and fully defined
ommunicatit s ar to bbb in writing, and if a period for reply

en withi tha period (12).
(1
is
1).
stated in the Contract
byer may gi e instructions which change the Works Information (13.2).

st obey empowered instructions issued by the Employer (13.1).
The Employer must allow the contractor access and use of the site (note: not
necessarily possession), and provide the services stated in the Works Information (14).
Early warning is a significant requirement in the contract (15).
163
NEC3 (Short
2
contract)
Time
Starting date and completion date are entered in
may not start before, and completion may be on or
The contractor must submit
each week (30.2).
The
n
dat
forecast of th
The Employer may instruct the contracto,

The contractor must submit a Program
on (31).
e as req
=Q3
events,
constitute
Where delay occurs due to cert
action or
tly arisi
Compensation Events (60). Ther are
These are for
e net al caus
inaction by the Employer, but als inclu
t pe
sical conditions
ainst
weather (measured in ratio of da
en ex
nd
event which delays
beyond those which could re onabfy ve
r ally be expected to
completion by more than t ro weeks a rd whi
coul
r
loc
for strike
occur. This would presuma ly no
omp nsation E ents;

The procedures for no
g the
ents
asses
or rates and the mec am
contract as those the maaor ford (62
a63
Control
ligatiorf can c nstitu
or cann
at the desig
lies
"
control mechanism (15).

s
designed, before the Employer has
the W rks Information (20).

may cancel any delegation (13.4).
oyer
ay instruct
e contract
ccess
employee (21.3).
for the Employer and others to work and to stored

-contracting, but the contractor remains wholly
re isWo consent req

sible (21).
There
is
ng.
no provi
The Employer
not the Employer
instruct
nò
contractor to search for defects (40.1) but whether or

of a defect, he is obliged to correct them (41).
e contractor
is to correct notified defects before the end of the

Defects Correction Period (stated in weeks in the Contract Data) (41.2), and the
Employer is to issue a Defects Certificate (41.3).
After completion the contractor
164
NEO (Short contract)

Uncorrected defects permit the Employer to en
the cost of which can be charged to the co
ers
42).
to
able fo
Until the Defects Certificate has been issue

in the event of loss of plant or material
once
The contractor's application will
and is for the amount due (
/orks4
o th
lude details
KQ 1).
o
Contract Data, half is

ificate is issued (50.6).
The Employer
is
to pa within thr
receipt of applicatio for pa

late payments (51).
expr es)obIi9
ions r
the
ent
fied ag inst aii
n
In part'
lar
ere is no
Regu ations,
co ractor SL
than p
ch
for Vterest becomes payable on
ting o sta ute or regulations, but these would

of statutory uty by the Employer, the contractor
eedings
d costs arising (81 .1).
erence to health and safety and the CDM

on for termination by the Employer if the
regula ion (90.3).
press
brea
ovide in
6 this occ
ssment day which follows
t from f
joiames the insurances stated
in the Insurance Table
insurance where this is stated in the Contract Data, and

ovided by the contractor (82.1).
The insuranGeJs for' eplac6ment cost in respect of loss or damage to plant, materials
nd e: ends from starting date to Certificate of Completion in the case
serial and Defects Certificate in the case of the Works.
Insurance-maq also e required in respect of the contractor's liability for damage to

property other t an the Works, and injury or death to persons for the minimum cover
as stated in the Contract Data.
The contractor's liability for loss or damage to the Employer's property is limited to
the amount stated in the Contract Data (80.1).
165
NEC3 (Short contract)

7
Termination
Both the Employer and the contractor have t
presumably means the contract, although not e
There are eight reasons stated which allow for

other party (90.2). The Employer may also t
The Employer must issue a Termination
cease work (90.1).
On termination the contractor must leave the site (91
the Works completed by others.
Em`ployeYmay have
Amounts due on termination are a

8 Miscellaneous
Use of the NEC Engineerin
necessary.
The Addendum Y(U K)2, is n6

provisions no doubt
Data.
contract, but payment

ed by reference in the Contract
The Addendum
the short form.

Clauses
9/tUK
93UK to
Construc
fo
ute resol
in th
and-Reaen ati
ion in e ort form should be replaced by clauses

Uni d Kin dom where the Housing Grants,
Act 1-496
aD
ies.
9 Dispute
S=t=orma
T
s is
t 'be by reference to adjudication (93).
be na
d in
theContract Data.
ud
or's de io is fina nd binding unless and until referred to a further
tri unal'. The Contract ata ho Id state whether arbitration is the tribunal, and if
so, w t the
pr cedure is to be.
T ea
166
NEC3 (Short
contract)
This contract?
remen%er Mat:
for use as a lump sum o r

rement confract f
uilding
and engineering works. Care is neede at the
to est lish t at th
onditions,
which are short but generally com ensurate ith ork o his na re, will be
is
adequate for the intended wor
em
on
e Offer and
Acceptance near the front of the
rks Information
tract`6
are particularly important and r quire full e
an
refu
by both parties.
It is intended
tad W
The law of the contract is

reference to the law of No
amendments necessary to
whele th
ing
to
ond iti
here is no express
aw. Pre
Id h
e in
ly any consequential
uded in Contract Data.
in
plici because whilst some of the
The document is rath dece
s ap p
Conditions are adm rably brie S d stra
tfo
e seem to be lightweight by
rks forms, for example over subcomparison with eq ivale
e s in othe
inor
contracts or insuran :e. Th clauses for
satio Events, however, seem rather
muMe difficult to abbreviate this NEC
out of
hort rm, alth ug
cling
d ditio ml time
oney.
proportor
with other
rthe pr
at first an
give
efiniti
form
rks, see
Mo
not
tion b theYs
is
NE
documents,
is
somewhat difficult to
nairofi
precision. The terminology is standard

clause. Recent UK legislation, where applicable
been taken into account. This keeps the form
denda can be a trifle confusing.
robably w come professional advice when it comes to

ainly e Compensation Events procedures suggest the
'delega for contract administration.
itted and experienced NEC users, this form must be seen as

family.
on Short Contract (June 2005)

2005)
n , Option X12 (June 2005)
nn
Engineering and Construction Short Sub-Contract
and Constru
K)3 (Ju
Notes
Engineering and Construction Short Contract Guidance Notes and Flow Charts
167
JCLI
Agreement
The Joint Council
JCLI
for Landscape Industri
Agreement for
La
Background
The JCLI originally had two standard form
and Without Quantities. In 1978 these
dsc e
A
ere
the then current JCT Minor Works A reement
sin
TNrK new
JCTd
opted
Section headed format (two years

additional
oft
clauses of specific relevance to Ian
include
ters as the
S. T
failure of plants, malicious damage
dditi
to cover plants
dead at practical completion. The form
r p rtial possession,
Prime Cost sums, objections to
n
loy and full fluctuations,
none of which were include
Minor
is fo
was considerably
revised in 1987, again in 1
urrently in
visa n of a 1998 edition.
Landscape contracts will mo
need to take account
'construction
of the Housing Grants,
pd Rege
96 provisions.
rs
1985 the
ed
dsc
the time some to al auth rities
In
(IFC84)
pu bli
JCLI al
for use on
contracts in exces
rgerI
ith a
elunt
th then JCT Intermediate Form

hought desirable because at
to use t standard JCLI Agreement on
f f75;
reeme
ced u res
gen
Supp rent
tracts.
onn
ndsb e Maintenance Works for use where

sible f the care of trees, shrubs and grass
ntracts' adjudication is a statutory right, and payment

the provisions of the Housing Grants, Construction and
ust co
orm refers to 'the
ministrator' and sets out respective duties (1.2).
t Bills, and these are to be prepared in accordance with

ierwi e 0.8).
ntra
The applicable la
whateve the nationality of the Employer, and wherever the Works
are situated, is the la
ngland (1.7).
Works may be subject to the 'CDM Regulations' (Fifth Recital). If mainly soft landscape
works then this is likely not to be 'construction work' and Alternative A will apply. If
landscape work includes earthworks, hard landscaping, drainage, demolition etc. this
might constitute 'construction work' in which case Alternative B will apply.
168
Agreement
There
is
---I
JCLI
There
is
provision for partial possession (2.6
tate
provision for replacement of plant
ch fad before
ompletion
(2.7).
There is provision for the maintena ce
tr
practical completion (2-8) either by he contr
plant
There is provision to cover maki

goo fcil4yving an
to practical completion, either tire tt co) acto 0
by a provisional sum (2.913).
'-`
Although the form does

contractors, there is refer,
expenditure of Prime Cost
is given to the contra
The contract may
Adjudication
arbitration or
is
efe
o an
ocecxures
ction
the cor
n st
ri
e fixed pric
gh)f re
for (8-1), and

tion 8.2 and
vide
t to
(4.7);
i
tc. post-
e, Ero'i
for
putes
le o
or theft prior
9A), or covered
les or nominating suba
administrator on the
ection to a nomination
x tc. changes (4.6).
y be finally determined by
169
JCLI
Agreement
This contract?
If considering using the JCLI Agreement remember
llt cov
up to practical completion, but maintenance i a ma

Landscape Maintenance Works. It is in one ve ion only,
or public sectors. There is provision for bills Qf qu tits The
a contract administrator (not necessarily
quantity surveyor.
Ag repi
tect
fl,
fl,
It is intended for new landscape work, both soft
fl,
O-0
i<able
Subject to anything to the contrary,
of The co`rgt Kt, vv atever the
are
ed, is t
of England.
nationality of the parties, and wher er th
resol on provisions
endm
he
For landscape contracts in Scotland,
i.nor
trac
be considered.
would be required, or preferably
i
flrk
fl,
uatio
There is no provision for pha d com plet n,
ape design by the
Contractor. There is provisio for ppTti possessio nomi tiorVof sub-contractors,
and clauses dealing with the ailur of plants, m
dam e or theft, and postdrafted o
pliance with the CDM
practical completion carekThe orm
structi
usiri
ts, C
Regeneration Act 1996.
i
easi
If acting as
difficulties
of retenti
is used in par
Con actor,
tor,
-expe in landscape operations might find
rleti
defects lia ility obligations and staggered release
les in
neral e straightforward but if the agreement
work bei
arried out on the same site by a Principal
r-+
loose lei
peculiar to Ian
JCL iss
fl,
rs
ao
030-Q0
form,
e required relatin to insurance of the Works,

pletion care. There is no
ractical c
nd entri
to be made in the text of the
0-0
ods, healt.
an
IQ)
fl,
When completing t e form

(comp)
damages for no
conventional appe ix to
Conditions.
over coordination of contract periods, Defects Liability

ments, indemnity and insurance.
ision
nd Practice Notes which give useful advice on
plant specification, watering, frost

ion, iability for plant failures and multiple Defects
k such as
The wording of he Conditio s closely follows those of the JCf form MW98 and
therefore the struct
la
age and terminology will be familiar to many. For large
hard landscape work it might be worth considering the use of the JCT form IFC98
suitably modified as an alternative.
170
JCLI
Agreement
Related matters
Documents
JCLI
JCLI
Agreement for Landscape Works 1998 Edition

Agreement for Landscape Maintenance W
References
JCLI
JCLI
Practice Note No 5 (February 2002)

Practice Note No 7 (February 2002
171
CIOB Forms
Chartered Institute of Building
CIOB Forms
of Contract
The Chartered Institute of Building was on

to 'she
ers
Society. It now has a wide range of
e
rsh'
'
h iri
torn,
consultants and clients. In 2002 it assimil ted the m
re and
b shi
the
Surveying Institute (ASI). The ASI at that t i
pub ' ed
tan
g
d forms of
contract and the CIOB consequently o ver eir p
ation. T
t range of
forms are virtually identical to those evi ou
he
pu
cont cts, with some
minor changes to the text and termino iv All
lion o inck des a Section
ee
,--r
.t
for completion at the start
rathe
conditions or an appendix as he ASI ver
requ
basis. The CIOB a o pubs
eratio
as befits an Institute
nd all branches of the
ntracts have each been
logists. These forms are for
a) lump sum as the contract
ties management, which is
fl,
N~Co
f6"
to cover a ide r nge of building

which counts contractors, arc tects, rchitectu
surveying profession a o
its
emb s. The Vtee
approved by the Briti Instit
use with traditional metho
CIOB forms exist
beyond the scope
s g/r
Q._
dition): suitable for all types of works, but primarily

of all types. It may be used either with or without
-contract forms and nominated sub-contract
Quo
Building/ContrA
nde
or19.P
of q
ities. CIOB o
mare available.
Conditi
in are commendably free from legal

ructured to a common pattern, with
uped under 11 headings. The contracts
(D
5-o
-E'
,andii`them
b-co? ra cts are
It
entries in the
donb-
f+'
n-0
Q-
O-v
ontr ct (2 04 Edition): intended for use with smaller works e.g.

private houses, al era ions or extensions, with the work shown and described in
cificationr Schedule of Works. Supplementary Conditions permit
drawings and/or
the use of bills of qu
ies if required. This contract also makes provision for
nominated sub-contractors and fluctuations if required.
CIOB Small
172
'.P
Minor Works Contract (2004 Edition): for use with straightforward jobs or minor
works of a relatively simple character carried out on a lump sum basis. It is not suitable
for use with bills of quantities or where it is intended to nominate sub-contractors.
CIOB
CIOB Forms
CIOB Mini Contract: in
two versions, for
oveme
Ho,
Use (1998 and 2000 Editions respectively),
The forms referred to in this Section are

Chapter 8 below for details of the Cl
CIOB forms are suitable
administrator
is
for use
needed in all c
to
"ses,
bu
t
a
}bracts lis
act.
to r o
maybe
er
ies. A contract
tect, surveyor or
o
Con
as 'the Architect'
efer
engineer. The contract admini ator
Wor
ontr t,
he
viser' in the Minor
in the Building Contract a
n!
tnote r
er on p. 1 states that
Works Contract regard s of
elete
pa
ess th contract administrator
the term 'Architect' must
rthele
ars t
`t the term when relating
is a Registered Archite
to contract adminis ation the
i
All the forms co

contract. There are
particular
conct
as
tract,
entries
tifythe parties and date of the
in which details relevant to the
citals, and t
g
' ion for attestation to be under
st b entered. There is
ie , or
a dee
Eac form has appendices peculiar to the
list o clauses. The forms appear to comply
as an '
eac
kng Grants, Co struction and Regeneration Act 1996
nd if so then the relevant provisions of
is ion b
en
enc
rief
rovisio
of adj
r Constructi
(2004)
of quantiti
of quantities or Specification. If the latter
supply a Schedule of Rates.
re drawings, and bills
ract d
icular contract are to be entered in the Agreement.
Details relating
the Employer as contract administrator is referred to as 'the

istra or'. If that person is 'Surveyor/Engineer' this will be an entry in
tals and the wording of the Conditions is deemed to have been changed.
oint
d by
The obligations-f the contractor and the role of the contract administrator are well
described (1 and 2).
The contractor must submit a Programme/progress chart within three weeks of
entering into the contract (4.11).

Key
contract dates are entered in the Agreement, and the contract administrator may
173
C10B Forms
award at his or her absolute discretion extensions of ti
of delay (4.4).
ed witf
acco
d
The contract requires practical completion (the d

approved in writing by the Contract Administrat rPart/Sectional Completion as the 'Employer ma requir
(4.6).
Failure to meet the completion date will r
confirmed in writing by the contract ad
The Employer may appoint a Clerk of
must be confirmed as contract ad
Domestic sub-contracting
administrator (5.1).
as
the
u`ft
ntrac
Ii
inistrat
poked
ipstru
nistr
(2.6).
is
There is provision for nomina èd sub-con

stated conditions (5.3 and 5 4).
-
ractor
The Contract Sum is V

d rates and prices for
e0usive.4luctuati
labour and materials
yB incded,
there
djustment by use of formula
rules. Otherwise only, chang
rge will e allowable (7.3).
The contract admi istrator/is embo
o order vari ions, and the order will also
the priced document; or rates
stipulate the basis r valuV(i.e. ei er acc
con ct administ tor;
quotation approved by the contract
approved by the
re is no quantity surveyor, then
administrator
rk). N
f the ccovfractor
measuring
tetht
are n mally is ed at monthly intervals, with payment

3 . Amounts payable to nominated sub14 days
in the Certificates, and the contractor must provide
omply means direct payment by the Employer (6.81).
,,.
Architect'
by the Emp
contr,
pr
f of
pay
hite 's Fi
r
4
been ade good fo
issued as soon as practicable' after any defects

:o
yg th end of the Defects Liability Period normally six
onclusive evidence that work, materials or goods are
the contr t (6.91).
must7y'with
--6
The contractor
all legal and statutory requirements, including giving
necessary notices and paying fees and charges legally demandable (1.3). If changes
from Contract Documents become necessary for reasons of statutory compliance, the
contract administrator must receive written notice from the contractor (1.31).
Compliance with health and safety CDM Regulations becomes
174
contractual
CIOB Forms
obligation as well as
statutory one (Agree
f da
Insurance of new work in joint names, aga

contractor (8.1), although the Employer m
of existing buildings against risk of da
Employer (8.2).
3-0
There is provision for determining the e

r o
of default on the part of either E pl
and
if
acts
out,
determination occur, yen
site, completion of the Works,, an
ag
d pen
arry th insura
ed perils sat tW
in
red
all
ra
nm
=hte
Disputes or differences are, o be

ted
his or her decision (10.1).
t resb ddt
(10.2). The contract lists the se
d ru
shortened arbitratio yprocedù
to refer a dispute to adjud icatio and tl p roce
an adjudicator and :ondu t o he adjudic (on (1
eT4A
sted reasons
are clearly set
ctor.
settlel,
%Oim
is
e. In
moval from the

cribed (9.1 and 9.2).
nistrator initially for
proceed to arbitration
can apply, including a
tion on the right of parties
ting to the appointment of
ntrac,(2004)
A headnote dicate tha he
the use of bill of uant ies.
CIOB Bu ding
Condition t the
a quantity
appoi
nom..,
for
is
inte ded
t shou
t be
vul
are
more
Con&
smaller works which do not warrant
for complex operations where the

ropriate. However, Supplementary
vide for bills of quantities, and for the
u ed
rveyg'
an
full Schedule,
,,,
personp
The
tt
i,
and the
by the Employer as contract administrator is referred to as

If the person is 'Surveyor/Engineer' then this will be a Recital
e Conditions is deemed to be changed.
of
e co-6tractor and
the role of the contract administrator are listed
act dates ar entered in the Conditions (4.1), and the contract administrator
r her absolute discretion 'an appropriate extension of time if
warranted by the circumstances' (4.4).
The contract requires practical completion, and this
acceptable minor items to be completed') (4.2).
is
defined (leaving 'only
Failure to meet the completion date will result in payment of liquidated damages, as
175
CIOB Forms
certified by the contract administrator (4.5).
Domestic sub-contracting is permitted, but only
approval by the contract administrator (5.1).
There is provision for nominated sub-contracto
stated conditions (5.3 and 5.4).
pliers,
The Contract Sum is VAT-exclusive. Fluct

labour and materials may be included
charges will be allowable (7.3).
The contract administrator may ord r riati
basis for valuation (i.e. according
the p
contract administrator; or quotation
prove
daywork) (7.2).
order i a(so
; or rate
e co
a
adm
e
s, a
cu
nor ally is ed at
5-0 -44 days (6- . Amo
e Certificate
fir
Architect's Interim Certifica

payment by the Employer
contractors must be identifi
ntervals (6.2) with

is for nominated subadvised (6.8).
Architect's Final Certi f kate t be iss d after ny d fects have been made good,
following the end o the DeActs Lk bility Pe-i iocl nor ally six months (6.9).
ory requirements, including
al and stat
st coryiply
fety
d 1.6).
Insurance of ewwc
oint na es ag nst-6 k of damage by listed perils is by the
1), altho
contractorr
h
e Emp
er may el t to carry this insurance. Insurance
uildi
agai s,it ri of da age by listed perils is at the 'sole risk' of the
of existin
-
Employe (8.2).
vides
"e
rmination
employment of the contractor for listed
rt of either the Employer or the contractor (9.1 and 9.2).
efere
to action and claims subsequent to determination.
limite
of
ere is ave
ns
ute ar to be si
e contract administrator initially for his or her
deci 'on (10.1). If not sate
resolved they may proceed to arbitration (10.2).
There
Iso a S
ion n th' right of parties to refer a dispute to adjudication, and
the procedures r ting to th appointment of an adjudicator and conduct of the
Di
adjudication (11
A headnote indicates that this form is intended for 'minor' works on

basis. No bills of quantities and no nominated sub-contractors.
Contract documents are drawings and
Health and Safety Plan.
176
lump sum
Specification or Schedule of Work, and
CIOB Forms
Details relating to the particular contract are
ered
of the Conditions.
The person appointed by the Employer as
or
is re
'Adviser'.
the role
contract dates are to be enter

in his absolute discretion, an ex nsion'
CoNdition
e ilae cir
Key
The contract requires practica

followed by a defects perio
mp
on
Failure to meet the completi
Sub-letting
is
ove
onths
Iv o
nt of
not per
uidated damages (4.1).
li
the Adviser (5.1).

AT-excl usi
is (7tions,
erim
'2), wi
I
rtificate
ill
y
fro
Employer
time to time at the discretion of the

within 14 days (6.3).
Q-6
Certiffcate
Ilbei ued after proper completion of the work and
defects fter thi
of the defects period (6.5).
contractor
usf omplyv(iith all tatutory requirements and pay all fees and
e (1.3).
nce otew wo k in joint `n rr s against specified perils is by the contractor (8.1).

ran
of existig buildings against specified perils is at the 'sole risk' of the
Empl yer
).
ins
trac
reasons on the
to actionsich m
Ived, they
termination of the employment of the contractor for listed

mployer or the Contractor. There is very terse reference
low (9.1 and 9.2).
to be submitted to the Adviser initially for his decision (10.1).
ay proceed to arbitration (10.2). There is also a Section on the
'fer a dispute to adjudication and the procedures relating to the
CD-
r_+
ies to
appointment of an adjudicator and conduct of the adjudication 0
1).
177
GOB Forms
If considering using CIOB forms remember that:

The intended scope of the contract is carried in a
eon each of he for
use
are all for lump sum contracts, and for pri ate o oc author
ti The
-memb
ml t also
d the
obviously for use by CIOB members, but
considerable interest and may use them.
th
to that
The Building Contract and Small Wor
Contr
trac
this
contract is English law, but the Minor
ks C
ilen
forms refer to adjudication procedur
bjec
the w o E Ian
The forms would therefore not ap ear to
and
itablese
rovis
Contract administrators should first be
ain th
ately cover the
nature of the intended work,ano
eck in'
ar tffi
e provisions for
d djudication satisfy
Practical Completion Certifi fates, insu nce, ai ermin
mited,
best used for traditional
their requirements. They are some,
to be light on detail
work. Certainly as far as pay'Dent concerned
required by the Housin
Coh 5truction
on Act 1996 and might
Ktructi
be subject to the Sch
e fo
Contr
ere is no provision for design
nd suppliers is provided for
by the Contractor, ut no ination
except in the Min `r Wor Cont
tare available for nominated
and domestic su
ontra
'
traightfo
ator
orw i
tfacl m
ree comp
uctur
considerabl authority, and contract administration

onve ional operation. There is a full range of
r
available.
inter ting forms, traditional in scope, clearly set out and

ainWworde Likely to appeal to clients, and certainly to smaller
Idin
Documents
Agreement for Appointment of Professional
Building Contract 200
Small Works Contract 2004 Edition
Minor Works Contract 2004 Edition
Domestic Sub-Contract 2004 Edition
Nominated Sub-Contract 2004 Edition
Contract Administration Forms
(eight in number, available in pad form)
178
Adviser
Agreement for Appointment of Planning

Supervisor
Notes
CIOB Contracts Guide
- Guide Notes on their use
SBCC
Documents
Scottish Building Contract Commi
SBCC Forms
of Co
Background
Scotland might form part of the
--o
rical reasons,
d Ki
do but ots w, fi
differs markedly from the la
la
a
Wa
statutes from
Westminster apply to Scotland, :dso
le
on
lies o
cotland. Sources
tho
f En Ian , a the fluence of Roman
of law in Scotland are not th
law and Canon law over ime
Ite
uniqu
system and courts
hkolog`j
con nental links in the past
structure, not to mention a istinctiv
what
has described as an
have also helped to
'intermediate betwe Civil la
confo
Despite pressure frj m En
measure maintained their oble and ind
out work in Sco
ed t take acc r
pro rty, de r
and in the la rel
u rse
English law f tort) nd o
8(o
aw, the Scots have in large

Therefore architects carrying
ificant differences in legislation,
adly speaking the equivalent of the
tland wer bften based on an exchange of letters

the pa , build' g co tr
irect trades contracts. The Emmerson
rather tha forma ocumq fits, and
highlights the di'9` ent circumstances in Scotland and concluded
Repor
9
de b
basis
as unsuitable for main contracting in the
tha the exis
com
nded t at closer links should be established with
b ' dino ind
party b appointed in Scotland, which duly resulted in
ittee. report from that committee, with the initiative
ation of
in Scotland, resulted in the formation of the
jIdinc
ntract Committee (SBCC) in 1964. The SBCC has now been
Scot h
a
company. The SBCC Ltd board is advised by a Consultative
tr ctured
m representative bodies from within the building industry
opff tee
in Scotland as fo
In
f
Scottish
The Roy Institution f Chartered Surveyors in Scotland;
C;
Scottish
Convention of Scottish Local Authorities,
Scottish Committee;
National Specialists Contractor's Council
Association of Consulting Engineers (Scottish Group),
Scottish Executive, Building Division,
Confederation of British Industry;
i
179
SBCC
Documents
Association of Scottish Chambers of Commerce.

This is obviously a wide representation compared,,
it
The Banwell Report, issued in March 1964,

common form of contract for all construction
q Engl
Wales was both desirable and practicable'.
plement
the Joint Contracts Tribunal inviting the Scottish uil ' g C
the Tribunal, and this invitation was ac p
in 96
'subj
SBCC to issue Tribunal forms in a m
ner whi
nfo
d
theme
d, Sccy
practice'.
SBCC Ltd is
therefore primarily res onsi
use in Scotland. It is also respon
kale
ation o
for
advising on the interpretation of these ontrac

and publishing guidance an
ractic
to nomi
party tribunals, and attendi g patio pal nd of r com
now the ' eleva

within JCT Ltd, and takes an ctive
JCT. SBCC Ltd is
rt in
uments for
g such forms,
Scot
proves
t to
ractice, drafting
mediators or third
uding those at the
Construction Industry
afting where Scots law
and practice dictate.
t
es
with the JCT 200 ,editio'
the ti
of new forms. The
forms are
The SBCC is curre 'fly in
nditioi
are entirely
incorporat
t. Thi
welcomed y the users.
Scotlan
tish Bu-i
ottish Buil
ications to bring them in line

produced the first of a suite
to the earlier SBCC 'supplements' but
e Sco ish Building Contract terms are now
signi cant step for the building industry in
as
ontract
ra ct
ottisl6
With
Sc tish`R6ilding Contrast
tinor
Scott' h Building Caiatract
Scottish
Contr ct G
proximate Quantities
orks
orks with Contractors Design
ill to be up
Scottish Building
contractor's design (2002 revision)
Scottish Measured Term Contract for Maintenance and Minor Works (2002 Revision)
with Scottish Supplement (Notes to Users),
Scottish Management Contract (2002 Revision) with Scottish Supplement,
Scottish Management Contract Phased Completion Edition (2002 Revision) with
Scottish Supplement.
180
SBCC
Documents
(Both these Management Contracts need th eMorks

Invitation; Tender and Works Contract; IScotti
Agreement; Works Contract/3/Scot (200

Works contractor (2002 Revision) and S,
ontrac
);
ntra
tes to
sers.)
Revisi
11
addition the SBCC also publishes it own ve

contract forms, the SBCC Contracts
contracts.
/Sco
ETIn, oye
of
f nomf-aatedAnd do
an2,,SBCC
`rsions
In
Use
The Conditions of the ada
Modifications relate to
determination, payment
rms
sub-c
ateria
off-si
e JCT documents.
IaQq y
omi
fini
ors and suppliers,
deducting liquidate
damages etc.
The most significan difference
ttesta
made in accordance with
Scots law. The SBC issues
dance on testati
procedures. Another difference
concerns dispute re flutio in Scotland.
bitrat n Act 1966 does not apply to
Scotland, and a
iron p ced u res
e quite distinct. Adjudication is
a statutory ri
SB CClkas pro
own Adjudication Agreement.
i
Scotla#who
dertaW
eek advice
ra cts
MW/S'eot05
ar
f,
ansons
cot05), and Minor Works Contract with

clearly closely modelled on MW05 and
ifferences between the JCT and SBCC versions of the forms
orks C ntra
(MV
t05)
(SD
WWD/
cot05
folio
the optional use of bills of quantities (second recital, third

pointment of a quantity surveyor (Article 4).
3-:
There is an additio
10 to deal with 'registration hereof for preservation and
ecutioxr
O-,
p,i'ovisio for Attestation as set out in MW05, but the contracts

e a page f the insertion of particulars of signing in a Testing Clause. Model
ce are set out at the back of the forms.
Applicable law
2
is
stated to be the law of Scotland (1.7).
Time
The wording of the clauses
is
identical, save for some clause number cross references.
181
SBCC
3
Documents
Control
Covered under Section heading 3 in MW05,
MW/Scot05 due to a provision for bills of quantities
Se, io
hem
rd nder S ction
3.
Wording of the provisions

for listed sub-contractors.
is
mainly the same h both fo
The main contractor may choose a dome is s

co ac
from
three names as set out in the Cont ct Docum t T
is a
maintaining the list at three, and a
r
on
ere
roJ
p laus
(4.3.2 and 4.3.3). This is similar to
4 Money
Covered under Section headi
The wording of the clauses
5
4 in
identic
ve for s
The wording of the cl
statuto
6Insurance
ction h6adinc6 in
ses is identic
account
ig 6
fit
W05 b Section heading 7 in the SBC versions.

ide 'ca in both forms, except for an additional
with pro edings in of erjurisdictions (7.1 -5) and adjustments to
tish le station (7.6).
hea
of
ut Sectio heading 6 in MW/Scot05. The

orms, except for some minor cross
throvisi
Ins is
iscel
ules are the same
The w
ms in respect of 1: Arbitration and 2: Fluctuations
t 2: adjudication
is different to take account of Scottish

nal
Part
legislation. Mere
diti
Schedule
3: Contract Documents under which
lis
all
the
documents
forming the contract.
the parties are r quired to
le
9 Disputes
II of the Housing Grants, Construction and Regeneration Act 1996 applies to

Scotland, and either party has a statutory right to refer any difference or dispute
arising under the contract for adjudication.
Part
The procedures and rules for adjudication in clause 8.2 are identical to those in MW05.
182
Documents
SBCC
96, alx
Arbitration in Scotland is not subject to the rbitrati n Act

1 sets out the relevant procedures and C
es wZr h
unless it has been selected in the Contrac P artic
s.
The alternative of court proceedings is
rights in relation to opening up and
re
n
Th
o in clause4 and
c
ce
icates
d d isions.
This contract?
If considering using MW/Scot
'+_
It is intended for building w

for work of such duration
fl-
used where the Employer

administrator. There is provisio
he or
be appointed, althou
ears t
for such matters as aluations.
required to design porti
the Works
This contract is
is
drafted to
Housing Gr nts,
As with
e formt eC
sta
nsu
C
and
ntrac
or
plia
with
stru ion ari
cotzK
cles
re is also a
e for
ing works in Scotland. The form

Regulations, and with Part II of the
erati n Act 1996.
vision for p aced completion. Unlike the JCT form,

sub-contractors by way of a list of three
this SBC
names
and is not suitable

uired. It can only be
Itant to act as contract
a quantity surveyor may
ified role under the contract
ed if the contractor is to be
re
f
edica
, de isions a e required relating to insurance of the Works

pletion. Ap opriate deletions will indicate whether the final
rbitrati n or court proceedings.
administra dr, the Conditions are likely to prove adequate for

procedural rules are simple.
form can be seen as more of a middle range contract

full SBC version of SBC05 cannot be justified. There is
CT IC05 form.
s SBCC
Related
Docum
SBCC
SBCC
Minor Works Contract 2005 Edition, 2006 Revision

Minor Works Contract with Contractors Design 2005 Edition, 2006 Revision
Notes
SBCC
Guidance Notes upon Dispute Resolution in Scotland
183
184

Agreement for Housing Gran, Works
intena
epairs a
f Building
ct 2004 Editio
tural erson entering into a contract for purposes
cts betW,,
nsu mer ' i.e. a
cularna p
on wish
have w rk carried out on his or her own house) and
(i.e. a
services in the course of their business).
pplie
ss, in pa
'
put at a disadvantage. The Unfair Terms in

er so that f
cts Regulations 994 (SI
94/3159) apply to contracts which have not been
nerati include all standard forms of building contract and
is d (e.g. thi would
re uire that here must be no unfair terms. Terms which are
al s ises), a
r
e th e which might ca, se a significant imbalance in the parties' rights to the
isu er
uch terms
not be binding on the consumer. The Regulations
lain, i elligible language.
pressed
to proteq 96
will normally
13-4
classed as consumer contracts, although some might also
185
00
986
XT HG(A)
Agreement for Ho,

HG(A) 2002 Editi.
Background
ibunal first dduce" vari
e Agreement for
Minor Works 1963 Edition,
wit? ous
w h were grant-aided
by the local authority. R ova
nts
under'
cal Government and
Housing Act 1989 saw t e intro
of f e 1994 Agreement for
in
r ions. The white-covered
Renovation Grant Works, whi
was
o
RG(A) closely follo wed the v
of the
ino
orks form and was for use
where an architect vas appoint d. The ink-cored
was a more maverick form
and was for use w iiere th
nt dealt di ctly wi the contractor and no architect
was appointed.
In 1970 the Joint Contracts
4z
With the intr, du

1996, a rev, ed for
Grant Wo s HG(
contrac is for
grant is
be
Reg
,C+
'_'
,-+
c"'
L/)
C,+
(.p
the ousin Gran Construction and Regeneration Act

ntract ca
nec sary and the Agreement for Housing
b
ed in 2002. It s persedes the RG(A) 1994 Edition. The
Narc
ct or con ract administrator is appointed, and a
o the Housing Grants, Construction and
t 1996.
ea arently no plans to revise the version for use
Is dire
ith the ontractor without appointing an architect or
and
e for er RG(C) is now so outdated that it must be
ISO, o
nurse, n. wer consumer contracts specially drafted for use
ilable.
Ive bi
eement for Housing Grant Works is closely modelled on the

ing Works MW98. The total document runs to 31 pages
my 10 of these. The Agreement includes six Recitals and
c e and f e Conditions are Section headed. An Appendix comprises copies
kno edgement and authority which must be completed by or on
f the payee of the grant, and sent to the local authority. This sanctions
the
al authority direct to the Contractor.
eement
but the Conditio
seven
A very helpful Guidance Note is included with the form, and this precisely summarises
the types of grant currently available, as well as giving some worthwhile advice on
contract administration relating to grant aid.
The Conditions reflect the nature of the work, and the wording is appropriate for
187
JCT HG(A)
'construction contracts' to which Part II of the Hous fig Gra ts,
Regeneration Act 1996 do not apply. Where Part
does pply the
concerning notices over payment procedures,
sta utor ob ati
requi
obviously be complied with in addition to the ex
ents
the
wording.
i
Adjudication is included as probably the most

the parties entitled to refer final resolution
reason, still insist on going to arbitration
need to be incorporated at the outse
probably be suitable.
olvind
..l-
hQ
coract
utes,
for some
avisionsn
Use
The form is intended for use where an rchite
appointed, and where a gran
Construction and Regenerati n Act 199
The Works are to be carrie out or aln agreed lu
fluctuations not even tax
cfi nges. The
Contract Drawings, co
cifica
pn, and
S
will be lump sum, ba ed upo,) prl\(ng
rele
ofe
The Fourth Recital ates th ft the 5eQt

Recital states the
m for hi
a gra
are made for paym eats of th gran
ides fo`r
ontractor
is
ments may comprise
ult.
The contractor's price
ntract Documents.
oyer has ap
ing uhder h
y out and
contracto
with no provision for
complete the Works in accordance with the
to per
hose described in the Contract Documents
The Architect
is
contractor to carry
(1
1).
liged to issue any further information necessary to enable the
ou-tlNorks (1.2).
Inconsistencies in or between Contract Documents shall be corrected and this may be

treated as a variation instruction (3.6).
The printed Conditions prevail (3.6).
188
JCT HG(A)
Where the project is notifiable under the CD
Principal Contractor must be identified, and
Recital, Articles 4 and 5 and clauses 1.3 a
chite f c
the c ntra
The contractor is to notify the

for reasons which are not with
uivi
ntm4nt ma
_or
if ne
date to b
The Works may be commenced on

a date to be inserted (2.1).
contractors or suppliers
Coons, a
areithin
in
cto
e co
s c
(2
co
of ti
The Architect is empower

(Note: no specific grounds
fisted.)
If the contractor fail o compr

damages (2.3) and the rate
certificate of non-c mplet
er is entitled to liquidated
is no reference to a
there
i,oserted
certi ed by th
tra
the c
oriso
ths, al ou
he Ar itec
rovisi
recti
defects. (The Defects Liability Period

inserted, 2.5.) A certificate is to be
been discharged.
ibligation
ferrin
possession, nor for partial possession, nor for
ion.
`tten consent refers
to 'this Agreement' (3.1).
nt to slob-contra
Written con
for naming
is n
sub-contractor, and no provision for including
approv
be issued in writing (3.5) but may be oral and confirmed
include variations (3.7) and this would presumably allow
no specific reference is made elsewhere.
actors 'co petent person'

(3.3). T
re is no provision
to be on site at all reasonable times (not

for a clerk of works.
is
There is no provision for testing, opening up or action in the event of non-compliance.

Non-payment would seem to be the ultimate sanction.
There is no provision for work to be carried out by persons engaged directly by the
Employer.
189
JCT HG(A)
4 Money
The Contract Sum is VAT-exclusive (Article 2).
unless stated of
The contract is fixed price
Docum
Where
a variation incurs additional work, the

chitec
whether this will be eligible for grant aid (3.7
Instructions must be given where provisio

work is either to be agreed in advance
valued
Direct loss and/or expense is limite
included in the valuation (3.7).
e in
fir va
riatibb s
ded
ons.
or
Provided that the contract period is to er th

ys,
r can request
that Progress Payments are ma
(4
eekly
e Architect is to
issue certificates to the Empl yer. Reten
ill be a
cent unless a different
figure is entered).
1
Certificates will show the am

e and the
of
ons. The final date for
payment by the Employis 14
Qrn issue
th
te. Failure to pay by the
final date for paymen
ill a
ct`Fnteres f5pe ent ver the current base rate, and
can also give the co tractor, a validht to
nd w rk (4.6).
f
r
tificate
t half the
The Final Cer,
signifying
issue
rficate
different iqure
is
fort
ser ed)
ys of either issue of the certificate

28
he def ts, or the contractor submitting all
account (4 ). He is given three months (unless a
to of ractical completion to produce this.
g go
mpletion o
necessary, inform
ificate, the inal date

e
14 d ys after practical completion

ention (4.2).
is
14 days from the date of issue
Certific
e
n
a resi
tial occupier (for example in the case of a landlord
wit a h
e in multiple cc
atio grant) then JCT HG(A) might be a 'construction
contr t' to which P t II o he using Grants, Construction and Regeneration Act
1996 ap
this c se t
Employer would be obliged to give notices to the
contractor as req it
der ections 10 and 11 of the Act. Notices would have to
be given within e applicab time limits, stating the amount proposed to be paid,
and any intention
old or deduct money. This would apply to Interim,
penultimate and Final Certificates, despite the absence of any such express provision
W ere
'c'
vii
+-.
in the contract Conditions.

Clause 4.4 covers the payment of the grant or any part of it directly to the contractor
by the local authority. Signed copies of the form of acknowledgement and authority
190
1CT HG(A)
n sen to t
(in Appendix to JCT HG(A)) must have
is
by h
Employer.
Certificates
ed
itec will t
contractor by the
ul dZn d e cted fra
the amount of the grant to be paid, and t is amo
ce sha
e Q
E
b
amount otherwise due to be paid by t
issue
the Cert ficate
the Employer within 14 days of the da
ts
oyes
It is the contractor's duty to com
required notices (5.1).
tlAre
The contractor is to notify

statutory requirements and
he will not be liable to the
itect
ritir
tract
1ethis
Where the CDM Regul

iafull a
the Employer is to e ure that th Plah-r in g
under th
out the duties requi
SO
DM
if hè
bligatio
ct.
i`Vthe Sixth Recital applies,

ativ
rv s an Principal Contractor carry
,aula ons.
6 Insurance
/ind
requir, d to mange
ontrac
is
requires an e
ry (6.2).
rCe of new works in joint names against

o
ed to arrange
This is for full reinstatement value, but note
specified Iclaus
of spe ically nclu de heft, vandalism or impact, and advice should
cover professional fees should be inserted.
A pe ntage
,-+
or
ect of personal injury or damage to

to ack this (6.1 and 6.2). The minimum
re
ra ce
of ex
event
Termination
4-
!l'
ay d termine the employment of the contractor if he fails to proceed

Wo ks, or wholly or substantially suspends carrying out the Works,
comes inso. vent (7-2).The latter does not mean automatic determination.
tafTtes the Architect may issue

matter for the Employer.
determination
In such
circur
warning notice, but notice of actual
is a
There
is
ac,
The contractor may determine his own employment for stated reasons (7.3).
fl,
fl,
fl)
ing stru ures, together with any new work which forms
convers n, s to be arranged by the Employer. As with clause
quirement is for cover only against specified perils (6.313). In the
e the Architect must issue instructions, and the cost of making
un r clause 3.7 as for a variation.
part
no provision for determination by either party for neutral causes.
191
JCT HG(A)
The respective rights and duties of the parties follow
the Conditions (7.2 and 7.3).
8 Miscellaneous
There
is
no definitions clause.
There is no reference to access for the Archi

The Architect may order the exclusion o
There
is
no reference to antiquities, to
There is a contracting out of third

Parties) Act 1999 (1.8).
ri
is ur
th-6"Contr (Rights
of Third
9 Disputes
Article 6 of JCT HG(A)98 pr

Procedures for referral to djudigal o,4, and theaRpointhcig of an adjudicator, the
powers and conduct of an
The adjudicator's dec' io
determined by legal
Article 7 determi
legal
decided b
192
that
rocee
'
bil,ding bathe pariies,
aleasf until the dispute is finally
bjec to dj 'cation,
p
disput s or differences shall be finally
There s no
io
r arbitration.
JCT HG(A)
This contract?
If considering using JCT HG(A) remember
It is intended for use in housing improv,
t'work, where 'contr
a
has been appointed and a grant
m- We und6r the/H
to b
Construction and Regeneration Act 1
ntracts
6. It is
short duration, with a fixed price
the app
is
nnrov
onr
quantity surveyor.
is for use only in
Construction and Regenera
Scotland.
The form
996Aaes
There is reference to grant paym

4.4. The Appendix is form
There is provision for adjudicatio
n-ot ex
t proc
fth Recitals, and clause

hority for grant payment.
itigation is the final means
wled
tfor a
of dispute resolutio
When completiog th
ri
completion a
of the Hou hg Gr
modificati
of th
for
relating to damages for nonthe contract is one to which Part II

nstrun add Re eneration Act 1996 applies, some
uses will be re uired (as those for MW98).
decision
e of flae
Work
minist tor th
ontra
escales are
elaxed`
mus e co
istrati
ral rules are brief and relatively easy to

it is important to watch out for any grant
within a specified time. The RIBA does not
'r HG(A), but some of those for MW98 could
A helpful guidance note is included, which

of grant currently available and provides commentary on the
ative of
ma>v
lotions.
Commentaries (relating to MW05

but relevant)
a'-m
a,c
David Chappell and Vincent Powell-Smith

The JCT Minor Works Building Contracts 2005
Guidance Note Housing Grant Works

(included with form of contract)
JCT Guidance Note for MW98 (included with
form of contract)
JCT
Sarah Lupton
Guide to MW05
193
JCT HOB
and HOC
Building Contract for a

/Occupier who has n
consultant to over
Building Contract
Agreement for
/Occupier wh
consultant t
It used to be thou t tha
hom mpr veme is might prove lucrative for
smaller builders, ch w
ost pa was n t of interest to professional
consultants. Ho ever, t e re nt b
ousing
'provements and the potential
for engagement in this arket ave show`
e need for forms of contract
appropriate
of work.
i
ms of`btyflding c ntract for home owners or occupiers

ut
me c building work. They both follow a relatively
atte in t at t h y are ckage in a folder, there are counterpart copies
or cus mer d the bui
and guidance notes. They are written in
reshi
comme dably free from jargon and legalist language which has
ined for t
rk for Clarity approved by the Plain English Campaign.
ysta
att
ket them widely through retail outlets such as book
e to
ps directly to custo
produced
to
c r
..C
The
ed i 1999 was the Building Contract for a Home Owner/

e wh re the customer chose to deal directly with a builder for
small e; ensions or repairs. Obviously this promised a significant
nts,
improvement o -oral arr
0)m
Occupier, sui
home improve
gements or poorly worded letters, and encouraged the

parties to consider me odically and agree the important points before concluding the
deal.
The second form published in 2001 was the Building Contract and Consultancy
Agreement for a Home Owner/Occupier who has appointed a consultant, and it
194
JCT HOB
and HOC
+'
followed the same attractive format for packa ng an presen tion. His c
ork now
esti
to be a more appropriate form for much f the rger- le
Minor
veyo , tha the J
build'
s
attracting the involvement of architects a
smalle work
a co m
ial ature.
Works Contract which is perhaps more s
to act
the c sto pr'' behalf,
It can be used only where a consultan s ap
Agre
t for ofessional
and the document folder includes a JCT Cons tan
nt t. It is likely t prove more
services which is dedicated for use with t is b d ng
ee
nts
blis d by t1j4 professional
appropriate in these circumstanc s
5
ions:
bodies. Both forms are now re blished
I
fl,
a-'
,,,
Nature
ccuust
rpm
se
The Building Contract for a
licat
h w en completed sets out
two parts. First there is a ques ionnair
ndly t
the
ct Conditions clearly and
the arrangements for t
two
The ustomer is provided with
simply worded uncle 11 headin
ential bui er, an
t of helpful guidance notes.
an enquiry letter to s
a Home Owner/Occupier is
Contract which has two parts;
nd P
is the Conditions set out under
t is als a two part document; Part is the
e Conditio
set out under nine headings, a total
servi(
an Pa
for the customer and the Contractor,
X. Ther yare cope
es of
e inside cover of the package.
otes are prj ted
consultan
of just 14
and G
uildi
fl,
The Building Contra and onsultanc

rather more for,
pear ce.The
Part 1 is the rrange en for th work,
nsul an Agree
13 heading ' The
o"
asy to un rstand. They are only suitable for construction

Ho ing Grants, Construction and Regeneration Act
not apply.
e CDM Regulations will not apply.
an
rt
II
of
must not be used where a consultant

ated cost
owlimit, but as will be obvious from the excellent tick
aox pproach used
document, and the basic contract Conditions,
it is for very small
ie
ork only. Incidentally, for architects who are involved in a
rtial s
ice
iestic work but whose clients nevertheless ask for advice about
pointing-a_builder, his form would be a sound recommendation.
-or a Home
30o3
The B ilding
s
pLOYdT
and Consultancy Agreement is for a home owner/occupier who

intends to ap'p
consultant to deal directly with the builder. Note that it is suitable
only for a home owner. If the work is being carried on as a business venture, then one
of the commercial contracts should be used.
Contra
a--
:L-
The Buil
+-.
195
JCT HOB
and HOC
Brief synopsis
1
Home Owner/Occupier
Lump sum contract. Note that contractor's quotati
Drawings and/or Specification or other docu

Either customer or contractor may deal with
building regulations and party wall cons
Facilities for Contractor, as ticked, to
provided
Contractor's responsibilities includ

orin
regularly disposing of rubbish, an leavin
Payment may be single payment or
invoices within 14 days, 95
after
Ime
e
d o
is
to omer.
each day,
'ng the work.
t mer to pay on
art and corhoetion date entered.
or
wok deta'k.
t t
ent
ins
e by
n an
agre
Working period may be

Working hours may be spe
Only customer can char
equ
II
anninq permition,
plic,1tions or
contra or to ubnWa price before work goes
ahead.
Customer can ext
wor peri
Insurance provisi s
cover for dama e to
Provision
if
ntractoris delay
custo er's
ork and unf' ed m
occupati
secu
'
for limited stated reasons.
insurance, contractor's all risks
rials, and public liability cover.
o premis s, very limited.
thmont
Defects per d is
s, and c
o
r will pay remaining 5 per cent of money
due,vgtd
ays of con actor puttin right any faults promptly reported by the
14
ing Contract and
art court proceedings, or may opt for adjudication.

y Agreement for a Home Owner/Occupier 2005
=O'
2 Bui
ty can
fl)
If isp
Descripti
e wor is d tailed in contractor's quotation/consultant's drawings
/consultant's spec i
No ills of quantities, but 'other documents' may be included.
.
is
VAT-inclusive. contractor to itemise this and

,-+
Lump sum contr

Contra or's price
show details of VAT c argeable.
for 'unexpected problems' which should have been foreseen by the

contractor from the documents or a site visit. Contract figure can only be changed up
or down if changes to the work are instructed.
,--r
Price includes
196
JC T HOB and HOC

A start and completion date should be enter
hours may be specified.
ntrac
guara
The customer can expect to receive the be
4x
The contractor's responsibilities includ car

and to be 'at the premises regularly t carry ou
duties and responsibilities'.
the
The customer's responsibilities
the working period, keeping

contractor to carry out work j
time.
dto fe
the
elude ov ing cess
r o
rking area
stru or
derh
ns
nece
rons
tvng in
The consultant will act for the stom
xtensions of time, and
two
in issuing certificates.
es, i
of the work,
second
after
contr
t
th
end
the
defects
period
and
th
actor has-re ctifie
of
no
hough
are
r
neta
consultant
must
be
of three months. Al
ertiflcàtes, the
OW4
the
tract
invoices
are
ontract
states
that
in
the
event
satisfied that
co
s
ith t e consulta, cjsj
he contractor must take this up
of any
directly with
r.
wor details
only y the consultant. Where an increase

ust quote t
extra cost and time involved before
mounts to a reduction of work, the
nere c
ropriè eduction.
be
likely,
e au
make an
consultan
to t
comp
nsult t or he c
ons
con
ake a
'for
it nd rea onable extension if the contractor is unable

reasons b and his control. If delay is caused by the
he con actor may also be entitled to costs.
ant isrespo ible for pla?afing permission, building regulations and party wall
nts Consult nts acting for the customer in serving party wall notices should
ve written authorisation, otherwise their capacity to act might
sure t
they
Welfare facilities tbbe
ded for contractor free of charge by customer are as ticked.
to ke all practical steps to prevent or minimise health and safety

omer and other occupants, to minimise environmental disturbance,
pollutio In return the customer undertakes to take notice of warnings by
not knowingly allow occupants or visitors to be exposed to dangers.
tractor
Payment may be a single payment or by instalments as agreed. Customer to pay 95

per cent of total amount due. If stage payments are selected, they should be clearly
defined and amounts stated.
Customer
is
expected to pay 95 per cent within 14 days after completion has been
197
JCT HOB and HOC

certified by the consultant. There is a three months D
of which the consultant will issue a list of any fauIZ
the remaining 5 per cent will be due within 14 days
ility
plet
n h
en re ified
bee ertifi
rce, co ac
fl,
Insurance provisions are minimal, and limited to

us
all risks cover for full cost of damage to
ork a
u
stipulated) and public liability cover. The cc)
ct liab ility ve
fl,
riod,
ese ave
terials (no
Provisions for occupation and security

re
s esare Ii to
ng in
residence the customer should be mad aware
t in a veni ce
r u ption
which might result, and the contra r sh o Id
mp ryrotective
measures as appropriate. If the cus
vaca
the rern\
er
hou e insurance
sp
policies should be checked, as most
do
where re ises are left
unoccupied beyond a stated pert
and
eci
a
ight become
advisable. Also the contractoro bligati n to a p t racti
a
common-sense
precautions' might require mething ore ecifie
th
peci cation.
fl,
fl,
rrgents
If disputes arise, either part, can

In the latter event the contr zto r
Council to be appointgT
Other rights and re
198
edies
ayopt for adjudication.
urt proce
y not apply_te h
no exting
hed
ation
Specialist Contractors
contract provisions.
and HOC
JCT HOB
This contract?
form is intended for use only t

customer wishes to appoint a consu nt, th
which gives a role for the consulta t. In suc
Agreement must also be used.
cu
nt t
approach to defining the servi fs and
ns
considerably from the RIBA S
II Works fo
Dwners
Each
to be
E04
be stra
tries,
s. If the
the version
onsultancy
al and clear
ly. These differ
d not be used.
are is
Problems could ex ft over po sessroQ

responsibility partic larly roati to servi
insurance.
insta
work sequence, design

or other specialist work, and
,--F
Helpful guida
are rovide ore F cMtract, and they should be read
carefully, pa icular
f the ersio where a consultant is appointed. As
e cas
yet there a no d Qicat dh contract
nistrat on forms available, but letters should
be clear) identifi d aser
where they re intended to serve as such.
e forrt adop a
miliar t most
plete
fresh and friendly approach which will

administrators. The presentation and
aging is ri
and cus m r orien ted. The terminology is straightforward and
e form
bly written i plain English. As Tony Bingham was moved to
e co
mme in uildin
99, 'This little form is a beauty'.
ember
yy
corms ract
atters
ments
1CT
uilding Contr'
Building Contract
ce Nòfe`s inclu
199
JCT HO/RM
Contract for Home

Maintenance
JCT
Background
The JCT published this contract for hom care and r
wo
20
inte
there was a form for all situations. It
d t
er
minor works for which even the H
e
ccu
Contract
long. The JCT have now re-publishe the d
t in
editi
revised format. The new version
own
edfree
e
The form provides a most u ful service

about, and commit to writi g, thosss tials
too often been left as vagu assu ptions.
Where the contractor

into an agreement su
.type
seem overly
with
a slightly
website.
ing
he co
own to
evio
short',
that
of very
re
form
ng work ever produced. The
ditional page of guidance notes. The
ith a
appr riate or thi kind and size of operations, clearly
ns. As with other JCT contracts for home
ort S
the Crystal ark of the Plain English Campaign.
ndar
ages long,
e
mini
set out in 11
no s sugge tha t repairs and maintenance might, for example, cover

ring, p
bing s tallations or even painting and decorating. The form
of
h buil
g work which might involve structural alterations,
whemore than o
ely to be involved.
guidan
fl'
ctrical re
i
An im
at the
reduce the likeli
small print of his
pha ied is that the customer should let the
contractor know
aq otation that this contract will be used. This will then

od of the c ntractor submitting
n
quotation which
is
subject to the
term
Brief synopsis
A two line description of the intended work is followed by
whether the premises will be in occupation at the time.
200
tick box indicating
JCT HO/RM
Documents are a 'specification' prepared eit
and the contractor's quotation.
The contractor's price is inclusive of VAT,
rate.
Facilities to be provided by the custo
Payment is not made until the wo

contractor's itemised invoice.
The contractor must carry 'eno
materials on site, in additio
A start date and the contraceriod

of working.
--+
anc-04 cbO full't-gsts of damage
h in
ened,tcgier wit the agreed daily hours
The contractor's obl, gation is

to leave the work a
Sub-contracting
The contract
is p
is r
%nromil
ible
the
and
ork
sto
req
om&tently and carefully', and

er's permission.
healand
environmental matters.
=safet
Third party
open to
There is no
ro
c a
I
visionn-for los or exp se, but the contract accepts that the parties may
tier in e eve t o ilure to keep to the contract.
Di putes can be
fer d
Lo 'a
dicati
and the right to litigation
is
preserved.
201
JCT HO/RM
If advising using JCT Home Repairs Contract rem

It is intended for repairs and maintenance w
Grants, Construction and Regeneration Act 1
certainly not be subject to the full CDM Regu
It is a modest form, but it must provid a more bu

lik
o
alinghan just
relying on a contractor's estimate, w the
ritt
r or
The
de
pair works
may be simple, but the cost could s em
ela ' ly la
xpense
t
stomer and
should be covered by a proper agre
There is no role under the co

for nstruc n
be approached for advice n a suita e
m an
recommendation. It migh also ,help to prot t cus
'cowboys' of the industry!
Related matters
Documents
JCT Contract
for Ho
References
JCT
202
Guidance
but they might

this should be a safe
er from the so-called
CIOB Mini Forms

The Architecture and Surveying In
Mini Form of Cont

Mini Form of Co
(Home Improv
Background
'ocument which they
sible to find a standard
the C106 took a

a Mini form of co
form appropriate for
architect or other pr
In 1998
neatly styled
for the client to appoint an

rator. At the time the Mini
andard forms, this is now
had no real com

published by the Cl
general use and the other developed

use with residential works.
The form is pr
in collabora
In
appear
for
ce an
with
tes
wri en in plat
`ructur the form--5- e omewhat conventional, and compared

er co r ts, not so friendly. Having said that, they are
fish a
req ire the inimum of effort to complete.
CT consu
E
of Conditions, and the Home Improvements

of the form come with a dedicated Letter
tender an
Eter of acceptance. The Conditions are to a Section
istent with that adopted generally for CIOB contracts.
s
"sions
arily for use by members of the CIOB, but there

by'-qp(n-members of that Institute.
T e
re r com
and bo
adminis
en
uire
is
no bar
1d for use in contracts up to the value of 6,000 at

e
1998 prices,
Employer to appoint an 'Adviser' to act as contract
Whilst the form for general use might well constitute a construction contract to which
Part II of the Housing Grants, Construction and Regeneration Act 1996 applies, the
version for residential work would certainly not. Whether or not the CDM Regulations
applied in full would depend on the nature, scale and duration of the intended works,
but there is no express contractual obligation in the Conditions.
203
CIOB Mini Forms

Brief synopsis
1
CIOB Mini Form
of Contract (General Use)
Completed Form of Tender and Letter of Acce

Documents' constitute the agreement betwe
Contract Documents are referred to as Spe ification/S

Contract Sum is VAT-exclusive. Any adj tments
be entered in the Schedule of Adjustm ts.
kg
The contractor's obligations includ

the Adviser's satisfaction' (this mig
Certificate) (1.1 and 6.4).
cause
thè rt+qrk
s
'to
ovacanclusiv
The Adviser's role includes `nspection of t`he

ractor
information and instructio to th
Dates for commencement
at the Adviser's disc
completion is delaye
re to
pletion are
d co
e
the Conditions, and

date where
t e contractor's control.
n
or
he may r evis
m sta es bey nd
thompletion
time, liquidated
or part
from
ract.
he co
is
to be confi (m ed
ontrac 4.3).
at e end the Adviser
the cont actor (4.4).
Xractornot-wed
is
to list defects 'he
without iften consent of the other party, and the

to sub-let any work without the written consent of the
viser (5).-15
Tie corgractis fixed

viser may
statutory payments (7.3).
atid'nf, and the order must also stipulate the basis for
a`,
The
r any changes in
valuation
ntractor wi be as agreed and entered in the contract, that is either

yCment (6
or by interim payments made from time to time at the
discretion of the Adviser
ac,
Payment to the
in a single main
a--'
ti-
Payment is to be made within a stated period (entered in the contract) of certificates

issued by the Adviser. A retention of 5 per cent (or other as entered) will be held by
the Employer until the Final Certificate (6.4 and 6.5). Retention money is held in trust.
204
CIOB Mini Forms

The Final Certificate would appear to be concl asive
goods are in accordance with the contract -6).
The contractor must comply with all legal a
and charges (1.2). Presumably these w
equireents,
statut
a
er and c
d pay
to the C ntract
LQsura
mover
Amount
property (other than the Works?)

de
al
'ury
entered in the contract. The contr, c
too le fo
Works, unfixed materials etc. a d must m
trac
a
names until the end of the Defe
Lial3rkty Pe
(8'
i
e, loss
r'sW ri
mploy
co
ng to the Adviser initially
adjudication (10.1).
Claims or disputes or
ene
a decision. If no 'resolved thin th
for
The adjudicator ma be a ers-6n agreed b wee n

e parties, or nominated by the
CIOB President. The ocedt4 res for ad'
do are conctly stated in the contract,
th adju cator is
and the decisi
be gard d as final and binding upon the
parties (10).
.-.
tiome
of th Conditio
'arm for Gen al
;Letter of
In aa
in th'
gl
fA
l
in the feneral
is n
User
V
fo
m refer to the appointment of an 'Agency', and the
the 'Adviser/Employer' as is the case for the

each case in signed by the Employer.
Urefers to the appointment of
replacement
such provision in this form.

use form refers to statutory increases being acceptable in
ice co ract. There is no such fluctuations provision in this form,
Ily fja ed price contract.
herwise fi
thus making it lit
fl,
termination by Contractor', refers in 9.2 ii) to delays of A weeks

in the General Use form. In this form 9.2 ii)
elays of '4 eeks or longer at the Employer's insistence, except by previous
d 'D
r).
,-+
ere
of the form are virtually identical with

the following exceptions:
s in tFii
ency, and n
er is s
d by
ue forfn- Th Lett
lausL,_2.3
Improve
t by rior agreement'
205
CIOB Mini Forms
If considering using an CIOB Mini Form remember that:

It is intended only for very small domestic work
nc the payment rocedwtes8id
adjudication provisions are simpler than woul oth e
'bQ r cl uir
Part II of the Housing Grants, Construction nd
ra ' n Act
versions of the form the Employer must a
n Adviser
Rtis
The Home improvement Agencies form

General Use form is suitable for use in E
is available for use in Scotland.
suita
use
The provisions are probably adequa

concerning insurance and determinati
of
The dedicated Letter of Invit ion, F orr of

der a
be used, because the last t o beco
ontrac ocum
documents, entries are also o be ade in the text the
The CIOB deserve

for a consulta
indeed an
friendly
la
uments
ni For
i For
206
tract (Ho
,--r
eme
If acting as contract ad
drawings) note that t
considerable discre
Certificate which
ngl
arwan Am
land and
b
ceptance should
en completing the
ditions.
is a
Advis
rson who prepares the
rule are rela 'vely m ple and the Adviser is given
ity. C
need d before issuing the Final
clusive.
for ('
I
pear
first to pr
such forms, which also provide
minis a
(not necessarily an CIOB member, nor
m re co entional than the more consumer

Standard Form of Building C
With Approximate Quantities

The Institution of Civil Eng
ICE
Conditions of Contract
eers
venth
The Institution of Ci
ICE
Engineer
Conditions of ontractfo
ibuna
ct
racts wh cr-are not

surement have
sed on a lump sum figure and which

en included as measurement contracts. It is
easurement to some degree, and that SMM

hich of course is not the same thing as 'approximate
e
ure and extent of the work is broadly known before
case ith 'cost plus' forms. These are dealt with separately
es of thi chapt
provide for substa ial am unt-bf
acknowled 4 that
t I mp ssum
Rules provide
'ar approximat
quantj
surement
wor
4 not ge
For the purp
Editid
in
207
208
Traditional procurement: measurement forms
JCT SBC05/AQ
Standard Buildin
Approximate Qu
Background
k is reasonably
is often insufficient tim (even whe t e s
of`N
m t
definable and measurable r
uts
to o let the drawings and
Ilo the
Specification in sufficient d ail t
ity surv or
fully measure, work
up and collate measuremeri in or e to epar
of qu tities on behalf of the
Employer for the purpose of ob (ning
to
such circumstances the
JCT Standard Buildin
ontra`c
Appro
ties may be appropriate.
ua
There
--I
This version of the tanda Xd-J,C form

first
ed in 1979 in response to
pressure from prop rty d velopers. The
ed a aditional method of building
procurement,
arly start on to a5
It was thought that this could
c oul
still be achiev di
e desc ibed
accordance with SMM Rules, even
though the uantit
k couidiot be acc rately determined. It has now been
revised an updat
005 edition, al g with the other forms in the suite.
vh
onsider
firm
ce
efore
ed for early completion outweighed the need

ork could start on site. Subsequent events
may have be h overstated and that the implications of not

itment d not been fully appreciated. This would seem
ini ally fewer copies of the Approximate Quantities
03-
Tbg-Keadnote
ate Quantities edition states that the form is for use 'for
larger works desig
where
or detailed by or on behalf of the Employer
tailed
ntr t pro` isions are necessary and with a approximate bill of quantities to
and uantity of the work, which are to be subject to re-measurement,
insufficient ime to prepare the detailed drawings necessary for accurate bills
ies~to be V oduced'.
...
Reference is made to bills of quantities setting out 'a reasonably accurate forecast of
the quantity of work to be done'. The form should not be used where only certain
Sections of the Works are approximate. In such cases the Standard Form With
Quantities should be used, and the relevant items might be marked 'Provisional' or,
if under SMM7, could be the subject of 'an approximate quantity'.
209
JCT SBC05/AQ
Brief synopsis
As might be expected the text of the With Approxi
closely that of the With Quantities version. The
Recitals differs, and Article 2 and Clause 4.2 ref
of a Contract Sum.
The With Approximate Quantities version diffe

rules) to take account of the fact that all
2.29.4 work whose quantity

Contract Bills is included as an additional
contract period.
In clause
The list of matters for which loss an

refers to work 'for which the
accurate forecast'.
Interim Certificates cover ' II wor

sured an
alue
the quantity surveyor'.
Valuations are always requir un r the Appro
to uanti ies form, and are to the
doc
usual valuation procec}es.
ents a
co
ut
ns are to be sent to the
quantity surveyor by
I
The use of price
210
forpftylaL-,for fluctuations QOption C)
is
not included.
JCT SBC05/AQ
This contract?
reme)nber'l-hat:
-ice
It is intended for use in substantial con

it is not/oossib
are full
quantities at tender stage. It permits a ertain a
of fast-track g,
he design
needs to be well developed and
in detail
efore
proximate
quantities are taken off. This alto
me esign`
pment it parallel with
construction work, but if the ap roxi m
ant
in
area of reasonably
accurate there can be penalties
both st a
me.
er SBC05 forms
the Employer is required to a
con
ad
sst t
and
withi
v-0
If used for work in Norther

while for work in Scotland
relan
ottish
be used.
e basic st
language and termi logy.

instead of a contract mps
those in the of
ersi Ps, b
for p bal p
ntract
the o
versions, using the same
eis th use of an ascertained final sum
lati
to valuation are simpler than
t aynYent provisions are similar.
,
of rment of possession, sectional completion
ortion. It allow, for sub-contractors to be chosen by
vii
essio
an
torfr
thr
names.
r+.
The form has the sa
lses sele
fl,
dministrator note that some of the procedural rules are detailed

e-consuming.
irn
row
the JCT from time to time. The form is available on disk.

administration forms for SBC05, many (though not all)
wiN this Approximate Quantities version.
è least risky
O-0
remeasurement option for the Employer, and allows
t found
in cost plus contracts. However, successful use depends

and accurate the approximate quantities are in the first place.
!p'
ng sc
ely to
ed.
(1)
li
wheth
sion;
-'0
are required relating to matters including

in lieu of retention, advance payment or
of th
orks; int Fire Code; liquidated damages; advance
ions. are is nee d to ensure that the relevant Supplements are
+Qg the for
211
JCT SBC05/AQ
Standard Building Contract With Approximate
Quantities
f'1 f"1
,-.
Standard Building Sub-contract Agreement

Standard Building Sub-contract Conditions
Standard Building Sub-contract with subcontractor's design Agreement
Standard Building Sub-contract with subcontractor's design Conditions
Contractor Collateral Warranty for a Funder
Contractor Collateral Warranty for a Purch
Tenant
Sub-contractor Collateral Warranty for a Fun
Sub-contractor Collateral Warranty for
Purchaser or Tenant
Sub-contractor Collateral Warran
David Chappell
SBC05 Contract Administration
RIBA Publishing (2006)
References
Standard Building Co
Standard Building S
JCT Practice Note: Dec
JCT Form
of Con
Series 2 JCT Pr
Practice Note
(includes,
212
ICE
Conditions
Conditions of
Measurement Ve
(September 19
ICE
Background
The sub-title of the docu
Agreement and Bond for
Construction: Measurement Ve
This is
ly imprecise nature of civil

table. The Conditions show
nd that it is not appropriate
form which
engineering operati
that the form is not

for lump sum cpntra
This ICE for
Consulting
under re
warrante
Civil Engineers, the Association of

Contractors Association. It is kept
revised 'when such action seems
_+O
quite distinct from the New Engineering

the Institution of Civil Engineers, are the
ontract Panel. These forms continue to be
g for the needs of the modernisers, as well as
s
(DD
ages long and comprises the Conditions of contract; a Form

in two parts, the first of which is to be completed prior
nd of which is to be completed by the Contractor; and a
The latter identifies the documents which form part of the

berawings, the Specification, and the priced bill of quantities, in
contract
addition to the Conditions.
Also include-&is4-1-r6ICE Form of Default Bond, and the Contract Price Fluctuations for
Civil Engineering Work and Structural Steelwork.
The Conditions are contained in 72 clauses, without any apparently logical sequence or
structure, but with historic precedence. However, reference is made relatively easy for
the uninitiated because there is a Table of Contents and a particularly detailed Index.
213
ICE
measurement forms
Conditions
The Form of Agreement identifies the Contrac

Appendix to the Tender will show detail such
period, completion by Sections, liquidated
insurance requirements etc.
The key person for contract administration is
in the event of his or her being unable t
tints,
en
es in
ment ate,
n
oavment and reten
n
't
mper is
successor.
Synopsis
'++
Intentions
v+'
The contractor undertakes to constru

inferred from the contract (8
The contractor is responsib for al I ite operations and
but not the design
of permanent works (unles expre sly provided in t contra ), nor for the design of
rks
temporary and permanent
signed
r.
ny design responsibility
e
ing r sonabl skill, are and diligence (8).
by
ork in trict ac
rdanc--m&K the c ntract, and to the satisfaction

daretobea eptable to the Engineer (13).
of the Engineer.
The definition of
'Contract' m
acceptance
Agreeme
WdH& inclu
Tender 0
rice
are
The qua
es
both
orary and permanent work. The

important Appendix) and written
t quant es, Specification, and the Contract
e tak
as being mutually explanatory (5).
s
esti m
actual quan
contract
nderi
e rates
atter , f iei could
ent possible (11 an
urth
neer
inspect and examine the site and its surroundings before

he quotes will be in the bill of quantities, and only if
ably been foreseen are encountered is additional
necessary drawings, Specifications and instructions to
om time to time (7).
`0)
The contractor in quired tOsubmit a Programme for approval by the Engineer, and
to revise it within 21
if the Engineer instructs (14).
All materials and workmanship shall be as described in the contract, and as

instructed by the Engineer. There is provision for samples and testing (36).
Facilities must be afforded by the contractor for work not in the contract but ancillary
214
ICE
Conditions
b==a
to the Works undertaken by other contracto

The duties and authority of the Engineer,
assistants, are all clearly defined (2).
Time
The contract may prescribe that posse ion of th
in portions (42).
The contractor is to commenc as soon

sib
er f
Date as stated in the Appendix
the rm
en
, or vv
The cont ct is
contract is entered into, or
ed d
expedition (41).
The time for completion
Completion by Secti
is
to
i
red
-_nay be a, rded'
Interim extensions of ti
delay;
Engineer within 28 ays ai er the cause o
The Engineer rWst
an extension ht
subject to f al revi
on
to all clai0
s u
ei `t of particulars, and may award
Th, overall extension of time awarded is
.-e'bf a clai
'44).
too sl w and no extension of time is possible,

o expedite matters. The contractor will
for taking such steps as may be necessary (46).
ress is
EnginE
ice ca
ntractor must inform the

nd supply detailed particulars.
-r,
given t d the co
to addition payme
o liqui
ae a Ce
ficate f Completion when the whole of the Works are

assed any final tests required by the contract (48).
(CD
ed and ha
ork and defects period runs from the date of substantial

to d in the Appendix to the Tender as the Defects Correction
Dr is o liged to finish any work outstanding, to deal with repair,
gr46d. The co
amendment, recd :r ti n, rectification and making good of defects either within
or
the peri
so i as may be practicable. A Defects Correction Certificate is to be
gine when he or she is satisfied, although this in no way relieves the
r of any lia ility (61).
The contractor is prevented from assigning the contract or any benefit or interest
under it without the written consent of the Employer (3).
The contractor is not permitted to sub-contract any part of the Works including their
design without giving written notice to the Engineer (4).
215
ICE
Conditions
Sub-contractors may be nominated, although the

objection (59). There is a detailed set of provisions f,
as is normal, the Employer is required to bear so
If any design obligation rests with the sub-contr
contract and the sub-contract (58[3]).
The contractor is wholly responsible for the
unless incorrect information was given b
own cost 0 7).
is g
th
f`ghht-a
atio
nhee
ndefa
occ
stated
the
curate se
any pert o Ire Wq'rk (4

efin Fin thb con`t(a (51
r-
The Engineer is empowered to suspen

variations, subject to their being of
The contractor is obliged to give
work before it is covered up (38).
The Engineer
is
in accordance
empowered
instruct
with the con ract,
art
oval
e
prope
site
.e-exec
e necessar
tantly o
agent or representativ
4 Money
Because this is no a lump
quay
of the priced bill
the figure finally_asc aine
ere is referen
or agr
(1[1])
r
ave bee
Tender,
sums Ana ryrime ost it

subject'of pr sional
su
oth defined (1 [11), and work or goods

and Prime Cost items may be ordered by
tam
t Engineer (51). Wherever possible quotations should

order. therwise variations are valued at the rates in the
act if applicable, or
i! at rates fixed by the Engineer, as the Engineer
d)sq reason
N,aywork is to be used as a basis if the Engineer thinks it
ble, and he rates will be as set out in the daywork schedule
ntract (56[ D.
4agr
'
d by
advance, t
"e2).
,-+
vii
roc
Payment is on the b'asi&_

monthly statement submitted to the Engineer (60[11). The
Engineer must issue a certificate within 25 days of delivery of a statement. Amounts
for nominated sub-contractors are listed separately. The certificate must show the
amount due and the basis of calculation. If the Employer intends to withhold
payment, he must notify the contractor not less than one day before the final date
for payment, and state the grounds for any deduction. Final date for payment by the
216
Conditions
I/1
ICE
t is mo hly s tem
Is to
ify,
the
ctor is enti ed t me
Employer is 28 days after delivery of the

Engineer (a quite tight timescale). If the En
to make proper payment to time, then t
overdue amount (60[7]).
Rate
of retention, and the limit of
re
ntion
(60[51).
Half the retention is released

it-hi-p- 14 daJ of th
days
Substantial Completion, and t e other ha v hin
Correction Period (60[6]).
Defect
ction Certificate, the
Not later than three mont s aft
rting documents. The
ccou
contractor is to give the E ineer a
nths
issu the
tificate which states the
Engineer then has up t
f c& cation (60[41).
ithin 2
amount due. Payme t is requi
.-
:-+
The contractor is ob iaed

give all
These might
tern orary
contractor II recei
Y men of
contr
all fees required by legislation.

it, then the
is
th7' Engineer certifies
rks.
ums
volved (26).
ides the Emplo er against the consequences of any

ill not pply if it arises because of compliance
th
the E ineer. There is no express obligation on the
doc i
s or instructions by the Engineer conform to
e found not to, the Engineer must issue
s,
ions g en
utory requ
structixTs,(26).
b,
ck whet
ts, b
Safe
du
la
statutory obligations on both employer and
- e ulati ns 199
tor, particul rly in respe of the Health and Safety Plan and the Health and
The E
loyer is obliged to appoint a Planning Supervisor and a Principal
Fi
ra ctor.
orporation of these provisions into the contract, the statutory
ough
also
cont tual obligations (71).
o
.
The New
Ne Roads a d
Jsa p
cular efer
e
ce-t
Works Act 1991 is given detailed attention (27). There is

ce to legislation on damage to highways (30) and unnecessary
oads and
footpaths (29).
is to take full responsibility for the care of the Works and materials for
incorporation, from the date of commencement until the Engineer has issued the
Certificate of Substantial Completion. The risk covers damage from any cause
whatsoever, except where the damage is due to the Employer, or is a defined
Excepted Risk, or is due to faulty design of the permanent works (20).
,-r
The contractor
217
ICE
Conditions
-''
The contractor is to insure in joint names, against h# risk ofdama

liciere
for the full replacement cost plus an additional 10 (er cen
to approval by the Employer before Works Co
encerO
tend stag
prudent for the Employer to state the kind of c
quire
C-0
ate,d inay b
The contractor indemnifies the Employer ag nst al

ss
and cl ms ar'sing I
orks. T
death or injury to any person, and damage to roperty other an th
are certain stated exceptions (22).
f thZxisks
The contractor is required to be insured gainst

the Employer has been indemnified (23-
ty of
The contractor's obligations concer,

Employer is indemnified in respect
7
Kkmen
is
4).
Termination
The Employer is given the ri
t to termi ate th
mplo
contractor in the
ified defaults by the
e site, have the work
the Defects Correction
e
of s
(-1
event of the contractor's ii, insolv nc

or becau
Contractor. The Employer is entitl d to take
completed, and postp
an settl vent of ccou
Period has expired (6 ).
O..
of
t ie rig
iven
ploye
Termination of nomi
rminate his o
or M
ted sub-co
racts
employment for specified
become; insolvent (64).
plo
i
8 Miscellane
Definitio
removal
Enbinee
is
to hav
relating to
:-t
'..f
event of discovery of fossils, antiquities, things of
nsio
intere
='G
eisp
haeoloai
'ntractor's employees (16).

rt.
The Engine
Works, the site and workshops (37).

ite and site access, beyond that prescribed in the
ontr tor's responsibility (42), although extensions of time and
applic ble in the event of failure to give adequate possession.
sses
contractor
is
to be removed from the site without
The rights and obligations of the parties on the outbreak of war are fully stated (63).
tin
There is a provision contracting out of the Contracts (Rights of Third Parties) Act 1999
(3[21).
218
ICE
Conditions
a4%
O-0
Special conditions can be properly

consecutively as a continuation (72).
9 Disputes
The terms of the contract require th tm
to the Engineer in the first instanc The En
decision in writing to both the Employe and4he c
reference (66).
,-r
actio
CO)))
a'
nnot
Since the Housing Grants, Co
ructio
-.,
of dissatisfaction
Engineer, then it become
consideration of the disp
If a matter
,-+
be conducted in
at
noticelof a
reference to the
agreement, seek
re 0 999) (66(5)).
genat
ren
e rig
i%udicati
djudi
1996 (Part II) came into

djudication. With the ICE
be iven, and adjudication is to
rocedure (1997) (66(6)).
Q.-
0 arbitration. The party seeking
inally etermine
e p
ICE
O-1
a"'
force, parties to the c

Conditions of Conu ct
cto
reso
ht,
tie
'liation
e s
ispute.
QM-
rve note
to refe Arbi atioMiis to be under the Arbitration Act
ce wit eith r the ICE Arbitration Procedure 0 997)
nduct d in ccord
tratio Rules.
tructi
.
219
ICE
Conditions
This contract?
If considering using ICE Conditions of Contract re
This is a contract primarily intended for use with
basis of measurement. It is not readily suitabl
find themselves involved in some secondary b
orl-Ml enaineeriM work

woe
will apply.
The form is for use under the law of E land an
es,
ma ale
for use in Northern Ireland and under S D,ts la
If th
con
o
Scotland or Northern Ireland, then
nt
enc ICE c Arb.
should be incorporated.
The Conditions are comprehensive,

the to
engineers, might need to b stud iedcar
Ily b
commencement and com etion, nor inatio of
variations, and design by th
Completing the form is,con

Conditions, in particul
entries istho
-'
admiastration the
pedigreq' It m
>>o
uments
Cond'
Ktemb)
Knciliation Procedure (199

97) '
97)
Condit
220
is
a logical structure and some legal

unds o being rather imprecise, but it seems
tice foY a veryong time.
it on
tion Procedu
is gi
n greater authority than
on under bu' ding contracts.
En
-contMed fore' without t need

e
for supplements. Much used
commentat
to have
endix'to the T&der
usually the case w h contact admaisf

It is the traditional
and with a di
amiliar to civil
flexibility over
ors, valuation of
is
ICE
Minor Works
ICE
Minor Works
Conditions of
Works Third Edit
ICE
Background
The sub-title to this form is Co
for use in connection wit
sponsoring authorities ar
Consulting Engineers, and
ontract Schedule
Construction. The
the Association of
Contractors.
This is a document ntended fo use wh e the

mall, the contract period six
months or less, t ere ate n nominati s, de n of the Works is essentially
complete, the contra for h no respo
desi n of the permanent works, and
do,not e eed f2 ,00 It isform suitable for straightforward
i
and,this includes th Conditions, an Appendix, and a Form

er 13 headings, and are commendably
diti o rys are
re d. The are pr aced by a full index, and helpful Guidance Notes,
ntract, e inc4
ith the form. This latest edition takes account
ing G
ction and Regeneration Act 1996.
ent. T e C
rasy
or lump
contracts, or with measurement contracts using a
tities, valuation based on a Schedule of Rates or a Daywork
t plus form. An Appendix entry will show which is applicable.
to appoint an Engineer to administer the terms of the

ovides for the appointment of a Planning Supervisor. A
entered in the Appendix, together with a period for completion.
mploy
contract. The fo
to
starting 4a
'etion of he
orks can be in phases.
Synop
1
Intentions
This
is
essentially
contract for engineering rather than building work.
The Employer must appoint an Engineer, who is to be named in the Appendix (2.1).
The Engineer may appoint a named Resident Engineer, and delegate any powers
except those dealing with disputes (2.2).
221
ICE
Minor Works
The contract means the Agreement (curiously qualifj d by tKe words 'if a
Conditions, the Appendix, and other items listed in he 'CohtractSche
not defined in the Conditions and the Contract S edule 4hich was i
Second Edition of this form has now been omitt
esuma
this c
referring to the drawings, Specification, priced
ties, Sch
documents now listed as part of the Form of g reeme (1
The contractor undertakes to perform an
responsibility for the care of the Works f me
issue of the practical completion Certifi ate (3.2).
s1).
ete he
ce
nt
The contractor is liable for design o y

expr
staffed in
respect of temporary works other han f
sign
the
standard expected is that of reasona
skill,
dili
The Engineer must provide
necessm in
He tak
uctio
(3.6).
Other persons engaged direc

2
Employer are t_q b
Time
The starting date
The contract peri
thAppe
ntered in
is
written instruction within
8 d
ix; if)not,
after acceptance of
will b
r must pr vide
ed where p ogress is delayed for reasons stated in

taken all reasonable steps to avoid.
vii
If required, th
date (4.3).
when the `Works are fit to be taken into use or

The Engineer is to certify practical completion, or must
what remains to be done to achieve it. Partial
pletion by Sections identified in the Appendix.
ted
completi
,-+
session by;
vise
sess
cont
possible
b
A Defects Correc on Period

stated in the App _dix (5.1
le where the
contractor fails to complete by the
f lows practical completion.
The duration of this will be
rt.
Completion is to be certified by the Engineer after the defects have been made good
and the Defects Correction Period has expired. Certification is in response to a request
by the Contractor, and shows that the contractual obligations have been discharged
to the Engineer's satisfaction (5.4).
222
ICE
Minor Works
Instructions which the Engineer is empo,

variations, testing, suspension of work, re
contract and exclusion of persons (2.3
Each
iss e a
list
accor
noti
nstructio'tor
is bound by ever
matter referred for disput esd,kjtion`(2-7
of the parties
it concerns
The contractor cannot assign th contract 61\anJ icrhts Lder

aIIy`r\ uirestie c
consent of the Employer (8.1).
consent.
The contractor may not

the Engineer (8.2).
-contr t anlmpart &ftze Wor
There is no referenc
o nomi
Notes suggest that pproved su -contr
ion.
by the Engineer in t ie Sp
full
for
is
tors
ppliers, but the Guidance

named and listed
rs can be
t and for the stability and safety
onsibili
the
is
of
me
rthods
used on any one contract. The Appendix
can
t used Options are for lump sum, measurement on
chedule
Rates, valuation on a Daywork Schedule and
in the tender figure.
ntitled to additional payments due to unforeseeable adverse

of delay or disruption to progress (6.1).
ontract
The contractor is
't a
monthly statement giving the value of work executed
items to be included (7.2).
to
ue an Interim Certificate, within 25 days of delivery of the
atement -3). The Appendix may include a minimum figure for any Interim
ertificate shall show the amount due and the basis on which it was
calculated. Payment by the Employer becomes due on certification, with a final date
for payment 28 days after delivery of the monthly statement. If the Employer intends
to withhold payment, he must notify the contractor not less than one day before the
final date for payment, and state the grounds for any deduction (7.10).
i
vii
Tom
.-+
ee`r-i's
223
ICE
Minor Works
Within 28 days after the Engineer has certified comp

of any outstanding work at the expiry of the
contractor shall submit a final account. Within 42
should issue the Final Certificate. The amount p
the final date for payment is 14 days later (7.6,
Half the retention is to be released within
completion Certificate, the remainder
completion (7.4 and 7.5).
ao
ma '
Corr tion Perio ,the
cep of t th ngin
on c ificatio ,and
f311owi
4 days o
Interest may be added to overdue pay

5
The contractor is required to compl
notices required, and pay all fe
Responsibility for any conse It, approval

oval licen
rests with the Employer. Th s wou
lude plan
matters of land law includin part walls conserA
issi
ere this has occurred because
Engin
).
fl,
a
The CDM Regula ions 1
utory obligati ns on both Employer and
rwise, the E
Contractor. Unle state
inates the Engineer to act as
Planning Supervisor
the ontrac r as P
cipal Contractor. There are requirements
nd Safety Plan and the Health and
under the R ulati
cernin
Safety File, nd these o
ions be"Goryiie contr, ctual as well (13).
the contractor an Appendix

to be
he cont# ctor is then obliged to take out joint names insurance in
nd pe
pect of to ipora
anent works. Unfixed materials and construction plant
incl
full va e against all loss or damage, bar Excepted Risks as
is re
fined
re
contract
The c
ractor
damage to
extent that the E
the cause (10.2)
itions 10.1).
indemnity against loss and claims for injury or

rty. This liability will be reduced proportionately to the
ose for whom he is legally responsible contributed to
loyL`r an
ployer or t
There are further exceptions to the contractor's liability for matters beyond his control
and in respect of which he does not indemnify the Employer (10.4).
Insurance required under the contract
224
is
subject to approval by the Employer (10.6).
ICE
Minor Works
There is no express provision for determinin

must rely on common law. The matter of
of contract obligations
is
left unexplor
Definitions are included as part of,

fl,
There is a contracting out of ri

(Rights of Third Parties) Act 199
9 Disputes
The terms of the contract req

the Engineer in the firs
n must be referred to
state his or her decision
ne month of the reference
writing to both th
(Addendum clause
in
If a matter of dissa
Engineer, the
resolved by reference to the

parties might, by agreement, seek
iliation Procedure (1999) (Addendum
consideratio
clause A-5)
Notice of referra to
conducted
actor
Zludic
ce
ion
wrh the,ICE
en to
ther party, and adjudication is to be

ludication Procedure (1997) (Addendum
claus
reference to arbitration. The party seeking

Arbitration is to be under the Arbitration Act
in act
ant with either the ICE Arbitration Procedure (1997)
Industry WWI Arbitration Rules.
225
ICE
measurement forms
Minor Works
If considering using the ICE Minor Works form renf ember that:
It is intended primarily for minor engineering
ks,iort duratior}/ not ercQe
250,000. It is for lump sum with or without bill o ua ties, or or m sure
contracts. The Employer is required to a oint an n
eer t6,6e con
f Eri n
administrator. The contract is for use under th la
nd Wales,
w
suitable for use in Northern Ireland or u
ro vied
in clak
It is a truly short but balanced form

Conditions are succinctly and clearl
Specification.
Completing the form

the Appendix.
is
hich -q,Ilow-!
straightforwar
rtes
Contract administration s could

considerable authority, and the p cedures are strai
riproject
Related matters
Documents
ICE
Conditions of
tract
Minor Work9Third E
Notes
ICE
226
Condit
ks
Third Editio
r p
JCT MTC06
Measured Term Co
Background
tra was
9 for use by
The Standard Form of Measured
Employers in both public and
ivate
w have
ckin need of
min im
m
viously tiresome
planned regular maintenance a
ork.
arat
and wasteful having to
raC%S foe
sm II job, and in some
repair
nde
short notice. In all
cases a contractor might b nee
dea
ntractor appointed to
such circumstances it is usua prefe
one
handle all such work under one ontra
spec
d, on terms previously
D
entero
agreed.
Competitive tender
nature of the intend
of the contract
commercial cli nt b
form specifi lly for
the 2005
itions
Term Co act'.
-r 4ited
eeme .. ith fi
Con tion set
cts
rm cont
es
taking into account the
be covered, and the duration

been used by corporate and
this JCT contract is the first standard

n re-published in 2006, in line with
in
rms the suit with the shorter title of 'Measured
ding
ck,
b1
as b
r-
/total docu en
bas s
area
on
the geogra
42 'aqs long, nd contains a Contents table, Articles of

kals and eigh Articles, Contract Particulars, an Attestation,
r nine ections headings, all following the pattern of
to the nature of the intended work as being 'maintenance and

e 'Contract Area' to be defined. The Employer is required to
trator, a person who has special significance under this
contract because
ate job within the period of the contract must be initiated
y an orclq ss ed b theontract administrator. The Fourth Recital also refers to CDM
ons co pliari e in respect of each separate order.
.---.
it also
..E
bodies the offer by the contractor to carry out work under the
erms of payment set out by the contract administrator, and
acceptance of this offer by the Employer.
d Recital e
ree
E.1-o
Article 3 identifies the name of the person or firm acting in the capacity of contract
administrator, and requires that any replacement needed must be nominated
within 14 days. Article 4 identifies the Planning Supervisor and Article 5 the Principal
Contractor. Entries in the Contract Particulars are particularly important with this type
of long term arrangement.
227
JCT MTC06
Details should be given of the types of work for whit, order may nissue d
properties in the Contract Area which may be incl ed
tl cor act, a
indication of the estimated value of work which
be anti ate alth gh n
guaranteed). There is opportunity to assign a pr
ode t ach a icipated der,,
for example an 'A' Code could require respons wit
f r hours. T e dura o
contract period, which will normally be for minimu o
e yea , sh Id als
entered. The terms for measurement, valuation nd paym t a under tems 8
of the Contract Particulars.
o
By nature the Measured Term Contract
can be no precise amount of work es

an enabling document, which allow
to be valued according to rates, pr
p
conic
iffers from I
shed at
oub4f an n Con
fic order
e of
ges
ered
Use
After the identity of the pa

an entry which states the
documents other than the
must be named under
date
t he 4
'the Recitals require
rea'. Ther is no ference to drawings or
terms of iae
Th contract administrator
erm 'Arc itect'
'sed at all in the contract.
.
derand arnot as
a d
d, or as a deed.
The Contract Pa culars quir a eri

stating the Eimurn and maximum value
of any one order be is d toget r wit
imate total figure or figure per
annum. A priori co ing for order may b
troduced, which would signal the need
for rapid re
contr for tq/speci
eiE)K t
orders such as emergency repairs
within sti
riods'
necessary to id
v-.
tify whether payment is based on the

Schedule of Rates. The contract can be
subject to fluctuations.
t and valuation can rest with either the contractor or

is
to undertake
With
:t'
administr
ated \Nlue
Contract Particulars should indicate whether the

urement and valuation, or conversely, that the
'sponsible. Alternatively it can be shown that only
ill be the responsibility of the contract administrator for
a contract
elativel ong duration, it is desirable that there should be a break
provision. The perio o notice required to bring this about is 13 weeks unless a
different period is entered in the Contract Particulars.
Synopsis
1
228
Intentions
JCT MTC06
The definitions in this contract have a particul
(1.1).
ance,
b>ausethei
conflict with Schedules, Specification o
work is
with the
e
and Safety
e Contract Area
-R'
The contractor is obliged to carry out ork whe

to be executed in a good and work
Contract Documents, empowere in
cti s,
d an
Plan. The contractor does not h e exclusiv
t to work iit
and the Employer can use oth
ovtractor hi wn
ur fo
if desired (2.1 and
2.3.1).
pply
The Employer has the right td
for carrying out work, an the
tracto
ma riaplan or equipment needed

ve r
ilities concerning these
(2.3).
If supplied by the En1 ployer
rials an
Schedule of Rates, a d the contractor is
failure to
).
ices he
Co-drdina
L7-
otifid
starting date are entered in the Contract
ty code imposed.
the contr,
blars (ite
ate Ad re onable com
starti
11
be
rog
There
s,
mme must
uo
the contractor where the contract administrator
(2-7).<
control of the contractor cause delay, an extension to the

'for compl on,.or eac order may be given by the contract administrator on a
10).
fair and reasonabl
i
req u red to make good any defects appearing within six months of
etion Date.
E
actor
The bar to assignment without written consent extends to the contract, or any part
share or interest (3.1). Sub-contracting in any order is restricted to the extent that
previous consent in writing of the contract administrator
is
required (3.2).
The contractor is obliged to employ a competent representative (3.3). (Note: there is
229
JCT MTC06
no reference to his or her being constantly or othe
Access to the site, which can be a complicated
se
up9h the
orks:
considerable burden upon the contract admini

entitled to a degree of possession sufficient to
any order. Where access is restricted, unp
daywork basis (3.4).
vious
initor,
Variations may be instructed by the co

variation under this contract is define
at cons
d
i
The contract administrator has the

the site (3.7).
If the contractor does in

administrator, then, after
Employer to give effect to
curred
wer t6
from the contract
comply
roper ioite, other
ie ins uction at the
rsons
ay be brought in by the
ctor' expense (3.8).
4 Money
The work covere
/by
is
ea.
sub*ctAo
mi
surement and valuation in
If daywork is the appropriate

basis, the Sched
of H
ly harge
va
he Order (5.4.1). Where neither
are appropriate, the air ra esorp ces sh apply. In the event that agreement is still
required, t
sha
e
tween
par
as a last resort it shall rest with the
contract a ministrator
h
ust
ult wit the contractor (5-5).
accordance with
agr
Rates (5-3-1)
I
ntract
is
inist
gres
the
asis (5.8).
rru pted
ecause of an instruction issued by the

other unproductive costs are valued
e or
and valuation rests with the person designated in the

It is
ssible to set a value limit whereby in the case of
lue r sponsibility rests with the Contractor. Above this
W an estim
unless there is anyt
e contrary, responsibility will rest with the contract
m
sure
Most work carri d ouTunder n order will be subject to Part II of the Housing Grants,
Construction a
Regener ion Act 1996, and the contract provisions relating to
payment take accoun
this.
:-r
Progress payments at monthly intervals may be appropriate, depending upon the

value of the order (4.3). In these cases the contract administrator should issue a
certificate which states the amount estimated as due for payment, and also the basis
on which this is calculated.
230
JCT MTC06
ent
Where the contract administrator is respons le for easu
Or r Co
certificate for payment is to be issued withi 56 da
alua n,
(4.4). Where the contractor is responsible f meas
in 6 da
trator
must be submitted to the contract a
ca
is issued
ithin 8
Completion Date, and, if acceptable, Fce
the lu of wor
of the account (4.5). In all cases the c ificat e m i show th
Nhich e v&e was calculaf,
under the order, together with the basi
ean
The final date for payment by

certificate. Within five days of t
notice to the contractor of th
e Em
or withhold money, then t

no later than five days befo
Failure to pay amount
at the rate of 5 per nt over ba
first became overd
days
is
date of th
t
ific
ma
mu
for
he
Erp
of issue of
'shall give written
If
e
plo r intends to deduct
notifie
ing of this intention
nt (4'
ment will attract interest

payments by the Employer
urren
(4-6-
and without prejudice to any

otices fro
the absence of an vali
dies,
ilure to ay
thdate for final payment on any
other rights a
certificate ca give
tract a righ to s pend performance of all contractual
to th particular order) (4.7).
of con
obligations, i.e. pr
In
oblig
tor's duty t compl
i,s entitl
to r4
ire in re
no
the c ntract administrator if he finds any conflict
an order. The contract administrator must issue
uiremen a
will be a variation. The contractor is then not liable for nonfrom the order or a subsequent variation (2.8).
nsi
ii
i
,-+
com lianc
ith all statutory obligations and give all required

es and charges not otherwise provided for
y work undertaken in response to an order.
igatio
of the Employer and the Contractor, with regard to the
Regulation ap ing o an order, and in particular Construction Phase Plans and
y les,
come contractual as well as statutory duties (3 9).
Health
MM
anfet
The con actor is to demnify the Employer in respect of death or injury to persons
erty other than the Works, which arises from carrying out an order
or damage
(6.1 and 6.2). This indemnity is to be backed by insurance, and an entry against item
13 of the Contract Particulars will state the minimum cover required.
k
Insurance of existing structures and contents which might be affected by an order is

the responsibility of the Employer (6.7). Cover will be for the full cost of reinstatement,
231
JCT MTC06
of e sta a p+
ctur am dmen will
twe the arts prior
repair or replacement after loss or damage due to

Where the Employer does not wish to insure the exi
need to be made to the form, which should be a
entering into the contract.
,-+
m re
,-f
All risks insurance of work or supply instructe under

e is the r
onsi
Contractor. It will most likely be covered by
annual .1 risks. Dolic
be a joint names policy. Cover for each or er is
Date (6.9).
the event that terrorism cover ceas

insurance shall inform the other par
in writing which clause 6.15 opti
tfarty
to be,_avaita,
e Em)fover must ihsftuct t
fl,
In
The Employer is allowed to erminate e

loym
ntractor for given
reasons (8.4). Termination ill aff
t e contr as a
though the default
may arise only in respect
an
der. The clause
ers to ork being 'materially'
suspended, disrupted gr de gyed, nd min
or ivia ns nces would clearly be
excluded by the word 'b
unre
nably
vexa'iiousfy' (8.4). A warning notice
is required before t
actua of
of de minaLion b the Employer. In the case of
insolvency, termin ion is o
8.5.1).
The contractor is
include failure by
payment (8-
'rminat its o
Employer to ay aq
Common
and the
remedies.
ract are
ination
is
by employer or contractor,
ithout prejudice to any other rights or
ties of the parties concerning outstanding payments and

rising from determination are set out in detail (8.9, 8.10).
'respec
rigxtts
direct los and/or
ontract inclu
whher ter
visions, which allow for determination of the

Such action could become
necessary on a to
ing ontract because of changes to the Employer's building
programme or e to a fluct ating workload. Thirteen weeks' notice (or lesser period
if previously agree 4s- r
fired (7.1).
The
contrac
es br
t by ither party after six months.
Rights of third parties under the Contracts (Rights of Third Parties) Act 1999 are
expressly excluded (1.5).
232
JCT MTC06
9 Disputes
right to refer any disput

to adjudication (Article 6 and clause 9.2).
Either party has
is stated to apply,
determination of disputes (9.4.1). W itten noti
reed
fl-
Where Article 7
The conduct of the arbitration an

(9.1.3 and 9.5). The parties agr
The JCT has adopted the 200
Arbitration Rules, and the p
e- is
thaermae ap
JCT
Editio`
th
f th4rbitration
Unless it is stated that Artic 7 app

be by legal proceedings and no` by arb
fl,
,-+
thee-finKcleter
Industry Model
shall apply.
nation of disputes
is
to
fl,
of resolving disputes may

There is a reference clause 9 1 0
diatio
relative
w co
ort duration of work carried
be particularly appr priate
out under individual order It will not remov the sta tory right to adjudication, nor
0 edings.
a contractual aareem nt td
fl,
fl,
233
JCT MTC06
This contract?
If considering using MTC06 remember that:
It is intended for maintenance and small wor
ween ,sine
three years' duration, and the approximate v ue o
tried o
as a sum either per annum or relating to the
ntract pe
for both private and public sector use. The_Emp er ' requ
administrator. The form avoids the nee fo um ou
par
appointed contractor may only carry o each sep t ob
en in
issued by the contract administrator
The applicable law of the contract
as printed for work in England and
other laws. There is an SBC Me
Scots law.
the
es.
ngla
,ere th
to c
Co
1.7 re
001
The form includes break rovisi

ommencT
mpletion of orders,
arrangements for site acces i, and cancellation
an
rders are subject to a
minimum and maxim
ea entered n th
ct Particulars. Contract
documents comprise, 'the'
Co
itions
dS edule of Rates. There is one
contract period and rders 're give comm ce ent a d completion dates. All work
is subject to mea reme
and
and this can e made the responsibility of
the contractor o he co act dmini trato
uctuati ns provisions may apply or the
contract may be fix price:
.-+
entrie n th Contr
Particulars are required on matters
cripti
of ty s of work; value of works; contract
rovisions; nd the break provision.
dell
sdard f,
-+,
Sin
rator, this_ eE*nsibility will extend to all work carried out

nclude the issuing of orders, and may include issue of
tructions, kariati
icates for Progress Payments, extension of time, and
ncell
re no standard format for orders, but the JCT Practice
to
and Gui
89 i luded a model Order Form and Completion
icate in Annex E w
d be adapted for use with MTC06. The JCT are
ew iuide to MTC06 in 2007.
r`t
rm of contract published specifically for term contract

itions ar clearly worded and Section headed.
234
JCT MTC06
Related matters
Documents
Measured Term Contract 2006 Edition
References
Measured Term Contract Guide (forthcoming
Practice Note MTC/1 and Guide
(includes excellent annexed material on
235
236
Traditional
procurement
Cost plus forms
Standard Form of Prime Cost
bntract 99S.Ed
nation
For the Employer who must procee
cost of labour, materials and plan plus a

plus sit
standard forms may be used in a c
exclusively under this arrangement.
237
t fort
of t to prick
nbut ther
aXagre
tractor's
rs to b
p
to pay the actual

ds and profit. Several
my one published for use
238
Traditional procurement: cost plus forms
10
JCT PCC98
Standard Form of
1998 Edition
Background
Repairs and rebuilding during
fast and sometimes even eme
materials plus a percentag

were an obvious answer at th
out that fixing contractor's
in the public interest
d unlik
In 1967 therefore, t
fee', thus introducin
should be able to reco
would only b Bust,
which altere the 'n
immediate'It-after t0,-Seco
d War called for
tion`CQntra s bdwa-on th cost of labour and
over
contrac
erheads and profit
fter e ar, th imon Report pointed
eo
t of the work was not
p
acce
o bu
owners in the future.
I4hed a
hich incorporated a 'fixed
ment of com
whils still ensuring that contractors
le of i eir
r abour and materials. Fixed fees
if th archite t wa precluded from issuing instructions
rks'.
the
rty to revis the form as essentially a Prime Cost

J CT s
UP wool
,ut wit
contr. ct fee e
d or a percentage basis as desired. The
1983 use
o headed format. An attempt was also made to
6
ich ar6
re the were changes to the scope of the Works.
requir not to increase labour and materials more
ctor W
ary to cart out the Works.
.
Contrac
eventually published in 1992, and
is
currently in
ent over 150 pages long, including an Appendix, with

relating to bonds, an Annex 2 to the Conditions relating
visio s, S plemental Provisions in respect of VAT, and Modifications
mS tion Completion under Article 7. These Modifications are quite
and clause throughout the contract which are affected as the result of
Tonal ompletion are identified by small letter 's' in the margin. This
arrangement of printing Sectional Completion provisions in the body of the text,
although convenient in many ways, does make for a rather bulky document and
arduous cross-referencing.
_Q
's a heav
an Annex 1 to the
9-'
The Articles of Agreement include seven Recitals and nine Articles, and the Agreement
may be executed under hand not as a deed, or as a deed if required.
ate,
239
10
JCT PCC98
'++J
The contract Conditions are set out under nine S ect

headi gs,'h
a Contents page at the front of the form. A key f ature
contracting is the provision of eight Schedules. T h se are ry port
s follo
on which a great deal of reliance is placed. The ch uIes a
i
fullZd7-lex-e
ti-
senwi
i
t co
s:
description of the natur

drawings (if any);
First Schedule:
Second Schedule: definitions of the Pri

site staff, materials nd
sub-contract works
Contract Fee
Third Schedule:
td
obds, r
se-
C. ;
erce fee;
Fourth Schedule: estimate of the
so
items of
Fifth Schedule:
the Spe ification;

items o work to be executed b
Sixth Schedule:
pd sub-contractors;
ominated suppliers;
Eighth Schedule:
ork o be executeq by t
Employer or others direct.
ould
efully comple, ed because the nature of the
kely
be let on minimal information.
intended work
th a tthe co
There may or ma
be drawing to acc
any the Specification, and the contents
of the Sche
fore vit for broth
ering and valuation purposes.
These schedules
i
itals, ter tatin in ge ral to s the nature of the Works (also to be

a
First Schedule), reference is made to a
clear as p ssible in
an any dra ings (which if used, are to be listed in the First Schedule).
T e Archite t/cont
t adm' istrator responsible for the preparation of these is the
erso na-ffi
. The
uantity surveyor is the person named in Article 4.
In
the
described
S
cificati
Th contractor unclertak t
ar out and complete the Works (as described in the
First
edule)
er
th o her items as instructed by the Architect (although
presumab y e scope f th contract may not be materially altered).
dertakes to pay the contractor the Prime Cost (hence the importance
'
econd Schedule) and the Contract Fee (Third Schedule).
There is provision for the fee to be revised if alterations in the nature or scope of the
Works justifies this.
The Employer
of the definitions
One criticism of this kind of contracting is the lack of incentive for the contractor to
work efficiently. Protection for the Employer is afforded (C1.5.1) in that the Architect
240
10
JCT PCC98
is empowered to disallow costs where the co
economically as possible, or uses a greater
tuber f op tive han
easonably
far a abour
required. However, this might not be easy o impl
ent n pra ice.
is concerned it could be very tricky for ar arc tect to ay 'yo haveXh
ed or six
carpenters but four could have done t
,-+
,-r
The Simon Report concluded that 'the c

is a
form of supervision, veto, and
trol to b
ing t
ccoun
practicable today, as in any even/it wo
ba
xer
'
ed
inmost rei rpb ursement

whether is would be
tant onitoring.
is db-q bt
co
call
Synopsis
The contractor
is
obliged to
accordance with the
Architect
(1
5).
Protection for the E*loyer(agairist wastefuNA e of

(1.5).
Quality and
(3-10).
lour and materials is a provision
sta.
with such urther drawings or details as are

The contr ctor
st b p vi
Specification (1.6). There are limits to
reasonably ecessa t explai and a
the
ecification nd all 91 aVings, and the confidentiality of rates must be
respe,
v0-
and complefion are to be entered in the Appendix. There is

t of possession for up to six weeks. The contractor is to proceed
d complete on or before the completion date.
en by the contractor in writing (2-5). The Architect is
tension of time should completion be delayed beyond the
corrrpleti6n date, prov ed the reason is one or more of the Relevant Events listed. The
Architect
ake i writing a fair and reasonable extension within 12 weeks of
receipt o he notice nd particulars.
,
Failure by the contractor to complete within the contract period is to be certified by

the Architect (2-2). Liquidated damages are then recoverable by the Employer.
Practical completion is to be certified by the Architect (2.8).
There
is
provision for partial possession by the Employer (2.9).
241
10
JCT PCC98
The contractor is obliged to rectify defects (2.10) w
within 14 days of the expiry of the Defects Liabili
otifie
The bar to assignment of the contract without

(3.1).
The contractor may not sub-contract wit
itterconse
Sub-contractors may be named and in uded

in or annexed to the Specification (3
Rn-a
There is also provision for nomin

forms and procedures, (i.e. NSC/T
Conditions incorporated by reference
ontr
Architect's instructions mu
work is not empowered.
The contractor is required
(3.6). The Employer is
although these mus
There is provisio
familiar
provision
is
for op
eof
JCT Co
inclu
Pr
at tB
There is pro,
(3.13) an
e
C);
(8A-1)
T*q
l(PCC);
be in wri
competent
e on the site constantly
oint a c rk of\wor+_s/Who can issue directions,
d as i
ructio by t e Architect to have effect (3.9).
have
i to
ing/.p,1 pectionand
he fair a
vela
nd of ection 3
to be
rk
informa
tes ing (3.11 and 3.12) and the

reasonable operation of this
r6-form.
rried ut b thers engaged direct by the Employer

t listed n the Eighth Schedule, and relevant
are
ification.
reis6
onac
rect loss
d/or e
e C6,ntraefFee is
ontractor may mak

expens
lift of)bt fevv
ut Article
2 refers
to a Prime Cost, Contract
Fee and any
ertained.
the Third Schedule, but may be adjusted (4.10).

application for reimbursement of direct loss and
cified headings or 'matters'. Common law rights are
preserved (4.13)
Interim valuatio are to b made by the quantity surveyor, and the contractor must
provide the quantity urveyor with necessary details of expenditure to enable
valuations to be made (4.4).
Certificates are to be issued monthly and the first date
Appendix.
242
is
to be
as entered in
the
10
JCT PCC98
=!-
Certificates should include for work properly ex

properly on site, an instalment of the fixed f
site where these are 'listed items', subject
requested provision of a bond (4.6).
e
f mat
Nia
oroo of o et
de
tabl
Interim Certificates must state what

calculation (4.2). Retention is applied
otherwise agreed.
#ie cos
ay
am
all Inter=
date of issue.
The final date for payment on I terim Ce
es
da
later
ifi
c
ployer
Not
a
the
should give
than five days after th
amoun
written notice to the contr `t
dying
oses to pay. If he
intends to withhold money, e mu
e c6 T&Qt
wr
otice not later than
five days before the date for fina ayme
Emp
ails
pay amounts properly
due by the date for fin
e con
as a
o suspend work (4.3).
<_-
issuf
of the Final Cer =ificate is n f later thaD two

Liability Period, or makin
od defect or fr
information from the Cont ctor, whicWE
est
Issue
t amou is duk and the basis of calculation. Not later

of the rtifi ate, t e Employer is to give the contractor
ount he propo es to pay. If he intends to withhold
itten n ice not later than five days before the
Final ate or payment is 28 days from the date of the
,-+
fl'
final date fo
certifi
12).
u.?
The Final Certif ate us

than five day, after t e iss u
written no 4ce spe fyingltk
money, In must
om the end of the Defects

receiving certain necessary
V.
t date
issue)
utory obligation
pr's c' uty to
the cbri
c`
`th
all statutory obligations and give all required
(5.1
cntr`ktor is t notify the Architect if he finds any conflict between statutory

ui/ements'wd the ocuments. The Architect must issue an instruction and the
liable to the Employer under the contract for any nononfr or is
The
compliance
withàt
for
IJbe
quirements resulting from the instruction (5.2 and 5.5).
em's owered to carry out limited work for emergency compliance,

as a variation and valued accordingly (5.4).
reate
for is obli ed to comply with the CDM Regulations and particularly, where
the project isi-tet+#iable, to comply with duties in relation to the Construction Phase
Plan and the Health and Safety File (5.20).
The cont
6 Insurance
The contractor indemnifies the Employer in respect of personal injury or death, unless
due to the Employer's negligence (6.1).

243
10
JCT PCC98
The contractor indemnifies the Employer in respect
that this
is
due to the contractor's negligence (6.1
The contractor is to maintain insurance to cover

cover required by contract is the sum entere
necessarily limit the contractor's liability.
th
ind6"n'
an
iies,
ppendix (6
).
the
This
If instructed, the contractor is to take out jo t n

es i7+u
against the risk of legal nuisance. There
of xc
ions,
be attributable to any negligence by t e contra
2
Insurance of 'the Works' is for all ris

names policy may be taken out b
e nevWauildirkas ar
cern
for 64ke Emplo
or 6.313).
ified
out in joint names by the

In
ployer (6- K).
the event of terrorism
Employer are stated in clau
over
;es 6.
Where insurance is r ui
to an extension of ti e foll
in
the Appendix
ainst
g
6.313
"I,--,
to be
ilabld,
and
er's
Wor
ss
s,
of liquidated damages due

then this should be entered
-3D).
An Appendix en
will s
iqtheJ
de of Practice on the Protection
from Fire of Constr tion Sites is
apply f so, both contractor and employer will
need to res
nce, the insurers can specify remedial
e event f non c
measures hich must
ertak
-3FC).
toy
pecifie
s allbVf ed
to letermineemployment of the contractor by reasons

warning notice may be issued by the Architect, but the
matter for the Employer. In case of insolvency of the
on
Me circumstances determination might be automatic
g
leTent/or the Employer might enter into an agreement
reement') for continuation or novation (7.5).
;2.1
Its (7.2) A
btice of d termin
ontr
ject`tdpossible rei
he contractox-(a
'
7
Dependingupon
cum tances, the Employer can have the right to make interim
arrangements f r certain wo k to be carried out during the holding period under this
agreement. He
still el
to have the Works completed by a different contractor,
or abandon the ideaò completing the Works altogether.
The contractor is allowed to determine his own employment for specified defaults by
the Employer (7.9). The procedures must be followed meticulously. In the event of
insolvency of the Employer, the contractor may elect to determine his own
employment.
244
10
JCT PCC98
actoor listed ne
Either party can determine the employment of,

(7.13).
''
The respective rights and duties of the

completion are set out in detail in the
8 Miscellaneous
A full list of definitions, many of t
cifi2qo
Special provisions apply to th keeping f co

concerning the ascertainment o rime
st iteib
sub-co
v_,
min
en
l/1
Section 8A of the form is

given up to nominated su
me
(1
iers.
-8).
Action necessary as
ities (3-16)
conseque
the Contracts
Third party rights

excluded 0.25)
is
included.
Third Parties) Act 1999 are
9 Disputes
The Housi g Gran
party a s tutory
adjudicatio Articl
d u res
Iitratio
of P
on and Regene ation Act 1996 (Part II) gives either

erence
dispute arising out of the contract to
98 prpvides or this.
udicati
detail in clause 9A.

etho'd for fin
ateme
been)delete
conducte"
resolution of disputes (unless the Appendix

tailed in clause 9B.
I
'+F
on
ref
accordance with the JCT 1998 Edition of the
en deleted as the chosen method, then clause 9C will apply
dispu
245
1.0
10
JCT PCC98
This contract?
If considering using PPC98 remember that:
for contracts where work mu

arteclon sit
work i such that
is
documentation, or where the nature of t e int
sion
ther pri ate
impossible to prepare full information. It is p lished in
e
or public sector clients. The Recitals call foKa Sp ifi ion t d s h drawings s are
ms of ork as
listed in the First Schedule, and an estim eo
st o
e
ime
may be
shown in the Fourth Schedule. The C tract Fee
ed
he c tra
h
ule.
e Employer
either on a fixed or percentage basis
izatei
r.
is required to appoint a contract a
an
antity s v
It is intended
"
thud
The form is for use in England and

published its own SBC Prime
tract
withdrawn.
for parti
facilitate this are included a
design by the Contracnor
PPC98 provides
etion (Modifications to
ere is no provision for
se ction
list of not less than three

which case the use
'dato
rocedures4 ollow closely those for JCT98,
ents arry the a
the
Sub-contractors ma be sel
names. Sub-contr tors a
of dedicated doc ments d
but the prescribe
SC do
When com
including
=dof the co
p formanc so
trac
ay also
m, ent ies ar
scion;
regLf
s
Oiste
d EDI. The
Fire Cod
r frog,
e nom nated, in
d relating to decisions on matters

items); insurance of the Works; Joint
ght Schedules should also be checked
for com
con
ticularly here
ator it is essefitial to follow carefully the procedural rules,

ns are made.
oes not
se for JCT98 can be'ada
from time to time. The form is available on disk.

dministration forms for use with PCC98 but many
d, self-contained but bulky document. The Conditions

-headed, but the procedures are rather complex for
administration.
o have sold in great numbers, not surprising perhaps as
ethod which brings considerable risks for the Employer.
this is a procuremen
However, it seems to have been used without serious problems, possibly due to
careful selection of the Contractor, a realistic attitude on the part of the Employer and
sound practice in contract administration.
This is an atfractiv
are Section hea
Q-0
246
10
JCT PCC98
-0p
Standard Form of Prime Cost Contract 1998 Edition

Amendment 1: 1999 (Construction Industry Sch
Amendment 2: 2000 (sundry amendments)
Amendment 3: 2001 (terrorism cover/Joint Fi Code/CIS)
Amendment 4: 2002 (extension of time/loss an xpe Ks )
,LL
Nominated sub-contractor forms:

NSC/T 98 (PCC): Part (tender invitati
,
NSC/T 98 (PCC): Part 2 (tender)
NSClr 98 (PCC): Part 3 (particular
itiori
NSC/A 98 (PCC) (agreement, con actor
ontra
NSC/N 98 (PCC) (nomination fro
chitect
ctor)
NSC/W 98 (PCC) (warranty agreemen
mploye
-contr
NSC/C 98 (PCC) (condition
(all these documents hav to be used i
ting subs ontra
1
or)
Nominated supplier for

TNS/1Tender
TNS/2Warranty
JCT Domestic Con ra
(no equire ent in con act th
Sub-contract A eemenf S
SC ,
dition
Sub-contract
ndition
SC/C/S
002 Edi
PCC/1'Md Guid (for the 1992 Edition but largely relevant for 1998)
CT Pra
t to JCT 8 butr itten with JCT80 in mind):
$es (relev
ice Note No
ai Contrac
(1992)
yency o
ctice No
o 27:
gulations 0995)
on oft e CDM
actice
to No 8: M iatiori 995)
PrrWce Note (yellow cd rs):

to 1: Constru on Industry S&eme
Practi
Not : Adjudi ation (includes text of agreements)
Practi
Note 3
surancT errorism Cover
Prac'fic
it iing on
Appropriate JCT Form of Contract
Seri
JCT
247
248
Design and build
procurement
Design and build forms
Design and Build Contract 20 5
Institution of Civil Engineer

ICE Design and Constru
GC/Works/1 Single tage Desi n
GC,/Works/1 Two S
age
ition (2001)
on
ark
and
DVsi
19
Traditional procurement rms o ontract do

rib ea
bf anything to the contrary, provide
for design by the
Con actor. ` 4ey are sim ly 'wb and'rfaterials' contracts.
The wording u
d in so
scan rd for
cont act ex essly includes for a limited measure of design
responsibility y the M h Contrac
sometinxes'by optio al or supplemental provisions.
With one
ception,
specifically
use
wit
is ch
nce
ign and
uild
d only
procu
the contractor.
249
rms of contract which have been drafted

and take full account of design responsibility by
with
250
Design and build procurement: design and build forms
11
JCT DB05
Design and Build

Background
During the mid-1970s, a time of
th iasm
pproachesto
building, contractor-led design id bui
e me
ablisltQ
ortant method
nt
of building procurement. It wa recom en
ED
Construction for
Industrial Recovery. The
part
t o th
ent development
management working gr up o
for
ey in
hority housing also
pressed its apparent advant es. Th
was a
raise
ith the Joint Contracts
Tribunal the need for a standa form
hic ,
ump sum, a contractor
would design and c struct f
rs' s
s to
requirements.
.-r
this time the D pa rtn

f the En
Building Trades Em oyers later to becon
the National Federation of

ction Confederation) had their
nd
e scales or p
here a building was designed
(sometimes u ng
to r-d aned
po nts) to a client's specific requirements.
However, n form
ct exis
fo use bj local authorities or the private sector
which fair appo one t
onsibilities, obli ations and risks of the parties. Clearly
a new fo
was eed d whi
deal wi the situation where the appointment
of neither n archit t nor a
rm w
fl-
pro acted, nd continued for six years. However, when

Form of Building Contract With
Edition (J
WCD81), it was an immediate success and
ildin ndustry. Supplementary Provisions introduced in
e usefulness and flexibility of WCD.
ase JCT/ tandard
`^.
islaed
DoaQ
By
the fo
up to the fact than
welcome)
.ct'.
ostl
fl,
(1)
inded. As t
eared, public sector housing has declined, and it has been used
r more complicated than those for which it was originally
statement in a 1987 report put it: 'Architects should face
and build is here to stay and that many clients appear to
sign and build is now an established procurement method with
contractor-led but frequently design-led.
f preparin
is re
'
fl,
fl,
import
fl,
a tender for design and build contracts with a substantial design

high. The JCT Series 2 Practice Note 6 Main Contract Tendering,
gives an excellent framework which should be adopted. If it is to be demonstrably
competitive both in design quality and price, then two stage tendering is essential
with design and build procurement.
The cos
251
11
JCT DB05
A new edition was published in 1998, wich was es

the 1981 edition and the 11 subsequent am
necessary to bring the form in line with the r
Construction and Development Act 1996. Th later
and represents a radical overhaul, with simila hanges t
co
J
o
ich
the
was
Itlousra
ate
s'o'
lirn
blish
23--I
The total document runs to over 100 pa

Recitals and nine Articles, and may be xecute
deed.
e
for
-- vhich
uranc
1 states the express ob
he co
b 'complete the
to the
f the Works' (note
design for the Works and car Ky out and
sign ana of ca
that the obligation is to co plete t
e design). In Article
This agent may be an
3 the Employer nominates a perso to act as Employ
gr any oth suit
n, and his or her duties
architect, surveyor, pro1( ct m
Id be c
rly
ed right from the outset.
and any limits to his or er
er' ha ing a duty in certain matters,
(The contract wordi
often
is duty might
and depending o the a
r might not rest with the
Employer's Agen
fl,
v0,
Article
in practice the form

a
'often used
it
substantia
consultant
co
ti-.
includin
However
Agent, and
scheme design has been developed to

racti
to appoint an architect and other
ments in considerable detail, often
de'* ed design nd even some production drawings.
loye is quite distinct from that of Employer's
o the
is
d ra
ti-
hou
nditi
is
Qs
...Q
arked resemblance to SBC05, and in parts the

difference between the forms is fundamental.
con
inistrator to act fairly as between the parties. The
th compatibility between the Employer's Requirements on
tor's Proposals on the other.
,e simila?fy
no role for a
he agree
its
-6_
By the Second ecital, the c ntractor is obliged to submit proposals, and a tender
figure. The contrac-to s
obliged to produce a Contract Sum Analysis. The Third
Recital places on the Employer the obligation to examine the Contractor's Proposals.
The wording falls short of a warranty by the Employer, but this obligation must be
treated cautiously because it is the Contractor's Proposals which prevail in the event
of a conflict. (The form is frequently amended to reverse this.) Where the Employer
accepts some divergence, the Employer's Requirements should be amended before
,-+
<(1
Fl;
..,
252
11
JCT DB05
,--r
relie
the Contract Documents are signed. This oes n
obligation to satisfy the Employer's Requi ments in to
components and materials, and standards f work an ip
are covered by performance specificati
sign;
rticuly
'=r
fl,
The Contractor's Proposals should re and to

consi ent
h th
mployer's
Requirements, indicating where amen
ent or a
6ation is tvis'table hey should
ns
less
loyer agr es to this, in
not include Prime Cost or provis,
which case the Requirements
st
e
ey s
t-nclu any necessary
ical d tai s,
rm
plans, elevations, Sections and
ab
'structural design,
ifica '
workmanship not
services layout drawings, a
ma
ire
ifically requested in
already provided in the E
. althod
vii
belie
those Requirements.
-6 makes the form equally

R
ription of accommodation
suitable for projects here ther
required', or a full "
n" prepa
oyer by his own consultants'
with planning permi sion ready obtaine
e 0 Pract e Note CD1/A.) The Employer's
Requirements
state learIy w ther',
oyer or the contractor is to be
als. Thi is a
st important matter, and experience
responsible f ob 'niri
suggests
t at
ast
ni g
is desirable before inviting
tend( rs. If e co ract
e responsible f r approvals, and these have not been
of nde? h en u e r clause 2.15.2, if the Employer's
obtaine by th da
Requireme n% have ated t at any men muents necessary to ensure compliance are
not t
dasaCh4 nge th mployer, the contractor may have to bear any
ext
bra tice No Fee CD/1A paras 11-13 for further guidance.)
The term Employer's
tract Payable in stages or periodically based on the

The
n.
nditi ns make no reference to bills of quantities or a
he Contra Sum Analysis will therefore be used for valuing
loyer's Requirements, valuations for interim payments, and for
sement of increased costs by the Formula Rules. The Contract
e su
itted with the tender, and the Employer's Requirements
rm
and headings to be used, possibly as prepared by the
sur yor consultant.
n c
lating t
naiys
might stipulate
Use
The for
,--r
`n
.F.
rub
*"'
places o the contractor the same design responsibility as that of an

architect or
appropriate professional designer (2.17). This of course is to use
reasonable skill and care. It is not an absolute warranty except to the extent that
housing designs must satisfy the provisions of the Defective Premises Act 1972. There
is now a requirement in the form for the contractor to take out professional indemnity
insurance to back this warranty. Details of the cover required, including the period for
which it must be taken out, are entered in the Contract Particulars.
253
11
JCT DB05
r-.
esig rauura
ntra Parti
he
app pria fig
uId to e advice
Liability for consequential loss occurring as the re,

contractor may be limited to an amount to be en
(2.17). Opinion is divided on the worth of this, and
be. As each set of circumstances is different, thp- E
insurance experts.
fl'
,-+
The form, as used, sometimes places respon i ility for

contractor. It also permits design input
mp er b
he
design warranty is only applicable 'insofa as
de n
the Contractor's Proposals'. There ca be prob
wh
ur
substantial design input, because
the e v t o
the`r
e b
i l
responsibility become blurred.
,-+
The Employer's Requirements may

erefor'
yth
'frpm a imple written
scheme design,
statement of performance req
dev
with outline specification and
gs dica
ge
nts, materials and
finishes, which may have re
I
nning p
. However, there is
pletion of the tender
no provision for design in
the Employer
documents, except by w
on or 'C
rm terms it. Where this
ge
h full co
of
ch variation, including any
occurs the Employer
ctor.
luati nisi the hands of the contractor.
consequential expen
i
ty con
authority of
Em
o inspe tion ins`
re
Q1-
sect
,-f
,-+
1'r
itect or contrac administrator in the contract

he Employer's Agent or other
er or his Agent is to be allowed access
ditional sense. The contractor might
have enga
td+èpare esigns and assist with production
nsider the Fchitect's work to be finished once he
drawings
wings. ome ntractors choose to retain an architect
or she ha
for site dutie
that drawl
are being correctly interpreted, or to see
wh subs
ccommodated without injurious consequential effects.
raised by their architect about workmanship and
iers regar,
teri
:e
rice, and consider that the inspection of work on
nt an contracts manager. Therefore it might be highly
is best-reft to their si
le for the Errloyer
to
advantage of clause 3.1 and appoint an architect
spe
and report back, to ensure that the standards of
alit y of materials is in accordance with the Requirements.
The fact that there
can leave the pro
person acting with t
to the Works
,--r
fl,
'(Q
Synopsis
1
Intentions
fl..
,-+
fl,
,.+
The documents are to be read as a whole, and the printed Articles, Conditions,
Appendices and Supplementary Provisions prevail in the event of any conflict (1.3).
254
rip
The contractor is obliged to carry out and complete the Works referred to in the
11
JCT DB05
Contract Documents (the Employer's Requir ents, e Co actor Prò
Contract Sum Analysis and the printed Con itions)
1 1
her
expr
to completing the design for the Works;
t elia ce u n t contr
materials, goods and workmanship of
neceary bu;'not refer
documents (2.2.1).
k
Kinds and standards will be either

Employer has specified these in th
contractor. If not, then the cont
se
referr
cumen
th
me
wh
and if the
ability on the
everx of failure (2.1
ill reduce
liab
in
and 2.2).
The Contractor's Proposals a
Recital) and the Employer
is that he is satisfied that the
com
d by a C
e b
:oyer
itact
refully,
R
ire
m Analysis (Second
ause the assumption
ents (Third Recital).
S
There is no means ithin f

a mismatch between the
Requirements and th Proposals. here
iscrep cy
hd within the Requirements,
the Proposals prevai Whe
re is a discr ancy
hin the Proposals, the Employer
is to be notified an he m
make a
c' ion bou the discrepancy and proposed
amendments (?11.2). his m ht cons ute a han
ble
is
u bject
,1 will
obvdign
ork to the extent that it warrants

is for housing work
efective remises Act 1972, the limit of liability
its
1). However, w ere the contract
terms
t app!
esign
arran
lo s
inc
use,
endix (2.11
for consequential loss not covered by

of profit, etc.) and can be limited to an
-3)
is re uired toorvb it drawings and other documents it prepares in

o the
umde 'gn (the 'Contractor's Design Documents'), as set out in the
or as reasonably necessary. The submission is to follow a
en
et
t in S edule 1 (2.8).
.-r
U)+-
The
es
ss
DJ:
br
care a d skiIJ
iso
'Ction'. The contractor is to execute work marked

,-+
'A Action'
of the latter it must incorporate comments by the Employer.
ust r vise drawings marked 'C Action and return for approval before
se
<<-
any
by returning the design documents marked either 'A
0-P
e Employer
Action', 'B
on', in he c
work( Schedule 1:
5).
.=r
No comments of the Employer relieve the contractor of any of its responsibility for
design (Schedule 1: 8.3).
The contractor is obliged to supply 'as built' drawings after completion, and before
commencement of the Rectification Period. These may or may not comprise part of
the Health and Safety File, according to the circumstances.
255
11
JCT DB05
In; ran ation
The CDM Regulations require the appointment of a

Contractor, and under Articles 5 and 6 and provisi
both employer and contractor become contractu
ohe
rin
uto
uto
2 Time
e enter
ntlwand
-,
An option for deferment of possessio

to an entry in the Contract Particular
not excee
;41o
There is provision for dividing t e

commencement and completion
section. All provisions relating to
apply separately to each sect] n, except
Event for
ing de
to strikes etc. affe
approvals, an
..,
which arise fter the b
is
lik
e
to
the
thelorks
to time, the Employer may recover

written notice to the contractor (2.29).
_0.
issues a
ufficient compliance by the contractor in providing

.y File, is signified by a written statement from the
gyp'
inclu
tract Particulars (2.26). The interim

no later than 12 weeks following
(L)
that it
awarded includes reference
g from necessary permissions or

requirements or terms of consents
bject Yo revie
plete
pletion,
Fina Certificate.
pporting information,
mpletion (2.24). The
th contra or o hiscision relating to the
na bl y ractica le an in any event within 12 weeks
of the
of chan
to ent
provi
s,
for completion,
ing
ich
the Pm-pl oye

decision
practica compl on
25-
ng separate
ages for each
mlbloyer, tod
wor
d da
The listed Releva
fy
xamp
ere
ands
s,
liq
c.
to th
tima
Notice of delay must be giv

including the contractor's
Employer is required
completion date as s
(2.25.2).
o Se
esf
an
roe
`<.
r+,
'n+
Dates for possession and completion should

The contractor must proceed regularly and dill
completion date (2.3).
rm ho or the
oyer (2.27).
tract
ris I bliged to
rectify defects unless the Employer decides

L(1
+-'
appr priate deduction instead (2.35).

r early
`se
or occupation by the employe (2.5.1) and for partial
Control
The bar to assignment without written consent relates to the contract 'or any rights
thereunder' is a (7.1).
256
11
JCT DB05
The contract provides for Third Party Rights
e assi ned to urcha
funders. The requirement to grant third pa y ngh to
tifie
with information regarding limits to the c ntract s li ility, ust
Contract Particulars. The rights are set o iSchedu 5.
i
The contract provides for collateral

funders and purchasers/tenants, and
funders, and the Employer. The re
in the Contract Particulars, th
together with information reg
provi
set o
tractor to
by/the
to th
to
urcha s/tenants,
st be set out
rranties
b- ntra ors identified,
The warranties to purchaser,

CWa/P&T, CWa/F, SCWa/F
relation to the Employer, alth
There is a requireme for wri n

sent
to the carrying out o work, but ISO to
tters
P,
sub-letting that the u b-c
shall con in cert
ina
ay b
na
b-co
ntal
Employer' instr,
ractors
P
confirmati
of o
(3.7
`structi
are em wer
and these ay
con ruction
or des
m
the
have a
The
and
ntrt
i
accor
in
provisions (3.4).
contractors or suppliers in the

part of the Employer's Requirements
2.1.
writin
although this can mean written

ditions clearly define what instructions
Change (3.9.1) and postponement of any
Employer cannot order a Change which
ut the contractor's consent.
mpetent person-in-charge on the site full-time
all work to be carried out in a proper and workmanlike manner,

the Health and Safety Plan (2.1.1).
under the direct control of the Employer to be carried

contractor is in possession (2.6).
V.Cie-'contract a
out during the ti
isio
ting which refers not only

-3). It is a condition of any
Venrork or
ate 'als do not comply with the contract, the Employer may instruct
o rem ve them from site (3.13.1). The Employer may also order any
Chan es necessary, which will not attract any extension of time or
consequ
addition to
ntract Sum. It may order tests and inspections (3.12) and the
likelihood of any non-compliance in similar work elsewhere is covered (3.13.3 and
Code of Practice).
vii
the
4 Money
The contractor is required to provide Priced Statements; there are strict timescales to
257
11
JCT DB05
aid cash flow; and non-payment to time can be a val
The Contract Sum is VAT-exclusive (4.4.1) and ma
in the Conditions (4.1).
The valuation of Employer's Changes can be `the

of the Valuation Rules set out in clauses 5.4 o 5.7 (5The contractor can recover increases in t
or ntri
the base date (Option A). Increases in la ur a
m eri
ay
by the traditional method (Option B)
by thus
he
ula
4.19).
Where provisional sums have
en in
instructions must be given about the expen
in
tt,-LMploye
The contractor must make

ritteri
tion
u rse ent of loss and/or
expense. The grounds for a alid applica pon are et out
n include loss arising
from delay in obtaining pla fining
scion, or o er con nts which the Employer
has undertaken
to obtain.
Interim payments d
r P m tt ose
der of r JCT,\ forms. They may be periodic
(Alternative B) or sta e pay ynts sterna
A). he ch sen method should be stated
in the Employer's equire ents,
e Contract Parti ulars (4.7).
Applications for erim
must be supported
details as sti
ulate
ntractor, and each application

the Employer's Requirements (4.9).
`-L
vs froom th date of receipt of each application.

mploVer mus notify the contractor in writing of the
tion to `thhold or deduct money must be stated
clearly in a
lich also
s Gt the grounds for such action. This must
be give
ontractor o less than Me days before the date for final payment.
6o valid n tices e giv
by the Employer, then payment in full must be made.
ilure
rop er
ue by the final date for payment will attract interest
nt over current base rate, and can also give the
outkarW ng amou
5 per
actor the right to
rk until payment is made (4.10).
er
The final d
is 14
+L,
Within fiv
amount e
v_`_
+L,
.+,
thr mo the following practical completion in which to submit

The
his detailed Final/AA
ht an the Final Statement (4.12.1). If the contractor fails to
submit these tw important ocuments within the timescale, the Employer is entitled
to prepare his own
count and Final Statement and, if not disputed, these will
be conclusive as to monetary matters (4.12.5).
r11
L+,
ti-
v0.
258
+L,
+L,
Final date for payment is 28 days from the date when the Final Statement from the
contractor or the Employer becomes conclusive. Failure to make payment in full by the
final date for payment will attract interest of 5 per cent over current base rate.
11
JCT DB05
and
r r quir
en
The contractor must comply with all sta
this
tract
oblig
required by statute (2.1). The only exceptio
se are in c
plia e
in the Employer's Requirements it is stat
ntr
permission, 2.1.2). All consents or p mission obt ed b he
passed on to the Employer (2.1.3).
I
The contractor can only claim fe,

Employer's Requirements by
adjustment to the Contract
itheN
The contractor is to notify t e Em
ploye
requirements and either the
equir to ari
The Employer's consent
anydiv
irerrhnr the
between statutory
ontractor's Proposals.
ents (2.15.1).
essary due to changes in

ract is Prà{ osals
Contract
ould normally constitute a
statutory requireme is aft -tW base dat then
not
wou
be at the contractor's
Change in the Em ,oyer' Requirement
yerquirements expressly preclude
ever, here th Er
expense (2-15the contractor's expense.
d m e r s woul
this, then nec
If amendments to
le
Xor is
is
e
iged
not iabl
Healt
Regulations and particularly, where
ply w-ittrfhe CD
with duties
to
relation to the Construction Phase
d Safe
mim#Jes th Employ, r in respect of personal injury or death, and

pertXothi han the orks (6-1). This is to be backed by insurance
=O'
contractor in
tor's negligence. An entry on the extent of cover

rticulars (6.5.1).
to.
the, contr'
Of-
caused b
required by the Co
vii
tin
d, the co 'tractor may be required to take out joint names insurance for the
risk of legal nuisance. This will have been stated in the
inst t
There is a list of exceptions, and damage must not have
emen
D-0
is
orks' follows the SBC05 provisions in clauses Schedule 3

B or Q. The full reinstatement value of work must include for
the cont ctor's design work. Which alternative clause is to apply should
mployer's Requirements and shown by deletions in the Contract
e
0p`-ffons A,
,-
the event that terrorism cover is withdrawn and is no longer available, the situation
and options open to the Employer are dealt with in clause 6.10.
In
The contractor required to carry professional indemnity insurance. The amount of
259
11
JCT DB05
'-r
ur Pr
cover and the period of expiry are inserted in the Contract P ticula The
Th
must be taken out immediately following exec tion o the
ntr
is
provision for inserting a level of cover for pollutio or con min tion
ims if no
is inserted, the level is the same as the level of co
in rted in e Co ract Parti
ars.
i
fl,
rt.
An entry in the Contract Particulars will show If the J

Code f Pra ice o
Protection from Fire of Construction Sites (stoapp
- 3) an
if so,
Employer and contractor must comply w
evence fno compliant
result in the insurers specifying remedi
7
Termination
The Employer is allowed to termin e th
the cob
specified defaults (8.4). One reaso is wh
suspe
design work and is therefore unable to scharg
liga
The Employer is first to is e a w
otice,
in
ay r flow this with the
determination notice. In th case of in DIvencc f the
o. the Employer may
at any time terminate the ntrac
mployme by no e (8.5.1).
=l;
The contractor is allow

if the Works are susp m
fo
(8.9.2). In the eve of in olven
determine its ow emplo
Either party can

(8-11-1). Onej
blameless.
e his o
e
em
for specified defaults or
to a default of the Employer

ied per dd
m loyer, the contractor may elect to
oft
empl anent
erminL,4l
in obtaini
plant'
of the parts concerning payment, removal and

ctive ri
s an
clb@
u
n are
t o, ind tail (
and 8-1/2). Note that the contractor's obligation
e Em loyer wit co ies of all drawings etc. prepared, and that
ovidin
bligation r payment includes design costs.
...
iscellane
ist
o`kditions
is
arty
he`Contracts (Rights of Third Parties) Act 1999 are

,for in the Contract Particulars (1.6).
Access for the
E
ployer's Ag nt, and any person authorised by the Employer, is to be
provided (3.1).
s_migh e subject to reasonable restrictions as far as access to
workshops is concerne'
Discovery of antiquities etc.
is
covered (3.15).
Sums payable in respect of royalties are deemed to have been included in the Contract
Sum, and the Employer is indemnified against infringements of copyright (2.18).
260
11
JCT DB05
However, where the contractor is complyi n with fnploy 's ins
cto
matters not covered by the Employer's Requi ements the
co racto
for infringements, and any additional sum are adoed t the
ntra-Lt Sum
the boundaries oftKe s

rtaM in the`contM of th
The Employer is wholly responsible for

contractor (2.9). This could be conside bly im
etc. Act 1996.
An appropriate deletion in the C tf

Supplemental Provisions apply, These
necessarily be relevant for all con
cts.
of the form, and they are as.
1: the contractor may be r uired
representative on site, and shou a char
consent of the Emplo er is req
2: the Employer is e titled t

(note not to be int duc
is
to notify the ERplo
wh
e a
,n
fl,
firm
ills,
ariatio
of
of time nd cor
t over
icatior :
ably
erso
ntrac
ogres
s,
e Employer's Requirements
f the Works). The contractor

een entered
into.
part of the Employer's Requirements,

asurement used is to be stated.
ajor na re have been issued by the Employer,

mitestimates of the anticipated effects in terms
ential expense, before work is authorised. If
the instruction may be withdrawn, or the
tiob,
...
Vac
ap ication for loss and/or expense as provided for

or ma
onus is on We contractor to include a detailed estimate in the
loyer may accept the estimate, or choose to negotiate, or refer
stn
atter to
The
int
of
dto s
ota
Ca4
ey
ies a
Jhe
or
ang
may b requir
the sufcc
pclu
're
sub'
later during
sho*
icu
Housirrant
Cor truction and Regeneration Act 1996 (Part II) gives either
righ to refer any difference or dispute arising out of the contract to
n.-Article 7 provides for this.
atutor
L.0
Procedure
r refe al to adjudication and the appointment of an adjudicator are
covered in clause 9.2. Any adjudication will be subject to the provisions of the Scheme
for Construction Contracts.
The adjudicator's decision is binding on the parties at least until the dispute is finally
determined at arbitration or by legal proceedings.
261
11
JCT DB05
as the method for finally,
9.3). Unless this provision is shown in the Contract
are to be referred for legal proceedings (Article 9
Arbitration may be agreed
262
Ydispu
s
to amply,
(Ar-8-aad
en di
utes
11
JCT DB05
This contract?
If considering using DB05 remember
rya
ccept resp
r of the
It is intended for use where the contra
71tu/iar
equire althgbgh c
etion of
Works to a greater or lesser extent as
nd care in
the design is a stated obligation. The ntractor
e reasable ski
e more th
ontractor is
achieving this (i.e. not a fitness
responsible for design, the cle èr th
ou dar
of
spor bility become.
ila
a fundamental
Whilst at first sight, this cont ct has man
for
istrator or quantity
difference is the absence o
ovisi
on
surveyor to act on the Em oye
England and Wales.
if. TR-rm is for'
The Scottish Building CoW t Corn
ubl i
199
Contractor's Design form (200
evisid
`~'
+-'
The Employer's R
contract and it is i
should be adequa
uirements and on tra

in
port
at they
ly d Ctailed in cove
particularly beKaause of
provisions av
s,
>
ubmis
ranges and io
a
rtarly those
incorporating the optional

ating to named persons in Employer's
es by the contractor relating to the
E
ts,
of
sals are the core of this

The Contract Sum Analysis
Co m eting the form requires care,
ct, Particulars and supplementary
c.-
dyer w Id
ntary P ovisi
numbe
usi
tt,,
ny limi to authority should be clarified, and a clear
what is erypowered by the Employer under the contract.
is(ng the Fhployer, care is needed to stay strictly within the
tment eee''ally once work starts on site. If acting for the
Ag
trar under a/novation agreement, accountability should be clearly established

and espe
263
11
JCT DB05
Design and Build Contract 2005

Design and Build Sub-contract Agreement 2005
Design and Build Sub-contract Conditions 2005
Contractor Collateral Warranty for a Funder
Contractor Collateral Warranty for a Purchaser or Tenant
Sub-contractor Collateral Warranty for a Funder
Sub-contractor Collateral Warranty for a Purchaser,
Sub-contractor Collateral Warranty for Employer
References
JCT Design
JCT Design
and Build Contract Guide

and Build Sub-Contract Guide
JCT Practice Note:
Deciding on the A
Series 2 JCT Practice Notes (yellow
Practice Note 6: Main Contract Te

Earlier JCT Practice Notes (relevant
Practice Note No 23: Contract Sum
JCT Practice
JCT Practice
Note CD/1 A (
Note CD/1 B (
David Chappell and Vi

The JCT Design and Buil
3rd edn, Blackw.
Sarah Lupton
Guide to D
RIBA Publis
264
11
ICE/D&C
ICE
Design and Co
of Contract
Seco
Background
the basis for
further
f procurement, and
e schemes more quickly
ay be higher'.
the early 1990s governme

awarding contracts for roa
endorsement of the rapid
the belief that there wou
and save money overall - even
as
In
n. It was a
ely introduction in 1992,
The ICE Design and
onakYCE Conditions. The
although obviously
of the two forms is
however, the 5iMilari
distinct.
As
with th traditi
al ICE
structure
same Section headings. There,

urpose the documents are quite
nditiorm4is for
ssoc ti
Engineerd, the
n, an
Asso
Contract
o
is
Consulting
kep
is produced by the Institution of Civil

ngineers and the Civil Engineering
gular review.
is includes the Conditions, a Form of Tender

of Agreement, a Form of Default Bond, and
obligations are for both permanent and temporary works. The

will be completed to show which documents are intended to be
ong these the Employer's Requirements and the Contractor's
Is.
foun
clause b c
e c(tract are in 72 clauses, and the sequence follows closely that

in t e traditional ICE Conditions. The Contents list and index on a
e basi are particularly helpful.
Use
Entries in Part 1 of the Form of Tender Appendix will show a contractor tendering
whether quality assurance or a performance bond is required, and provide detailed
information such as commencement date, time for completion, completion by
Sections, damages, payment provisions, CDM responsibilities and arbitration
procedures. Part 2 of the Appendix will be completed by the tenderer.
265
11
ICE/D&C
t
.-
.-+
The key person in terms of contract administration is

He or she is to be named in the Appendix Part 1, an
to act within the terms of the contract. In the
Employer must nominate a replacement.
Synopsis
The contractor undertakes to design, co

Iete
co
providing all design services, labour and aterials
hi
het
or a temporary nature as specified in or re onab`h to
m
beerr
In all design
obligations the contra
(8) and this includes accepting resp
sibility
ign
uding
manent
contract (8).
nd diligence
ble skilr,
clud
'
as
part of the
Employer's Requirements.
The contractor is to institut à quality ssura
which must be approved by he E
Repre
work at both design and co struc ion stages (8),
ntativ
fety of t e de
The contractor is resp

of all site operations
truct
n (8).
Definition of the orks

temporary an permanent work. Contract
means Condition of Con act, mplo rsr
uireme , Contractor's Submission and
gree
other documents
y the/ partie (1). T He documents taken together are
stated to be
lanator but i t4event of discrepancies between the
Contractor'
n
he Em Jo is
irements it is the latter which prevail
(5). (This i
of
D98.)
rip
i,
n prove
resdntatiye
0D0
c+.
.-+
@..
fo, esee
ave ins cted nd examined the site and surroundings,

by the Em
yer before tendering (11). In the event of
cial obstructions which could not reasonably have been
at
e contractor gives written notice to the Employer's
)ayme may be authorised (12).
i'
The contr
and t
ph ical con'
ontractor must su nit
II necessary design drawings to the Employer's

consent must be obtained before construction work is
st submit
fl,
her acceptance. It
programme to the Employer's Representative for his or
mrevised from time to time as necessary (14).
266
fl,'
The Works must be designed, constructed and completed in accordance with the
contract, and materials and workmanship must be as described in the contract, or be
to appropriate standards and codes of practice. There is provision for checks and
testing to be carried out.
11
ICE/D&C
Reasonable facilities must be provided for
Employer on or near the site of the Works
The functions and authority of the name
named assistants are clearly defined (
The contractor must start as

expedition and without de
tatty
,-+
The contract may prescrib
.-r
wit7 n
nalty, bu
n
!boe
ctorr
,lay
Tempo
not
ime even if t
tM to co
-`
Thex
'{+.
nd supply necessary particulars. The

ter than 14 days after the completion
re is no claim by the contractor.
plete the
e or any designated Section of the Works
loyer ma dedu
retain liquidated damages. These must not be
e no Thznitakfon to
uidated damages is stated in the Appendix
then Mquidat damages without limit shall apply (47).
fl-
here
ah
epres ntative
'ward
ctor
of tim
so be due
kind (4
day
ay
wf
fl-
er to give
of extensio
Plo
tive requests accelerated completion and the
es,
for payment shall be agreed between the parties
ion is taf
.r)
.-r
re aroaress is too ow to ensure completion by the date agreed, the Employer's

esentati T'ay noti
he contractor of his or her opinion, and the contractor is
obliged to take such e as may be necessary at his own expense (46).
ployerRe
a Certificate of Substantial Completion

opinion the whole or a designated Section of the Works is
substa tially compl ted. The contractor must notify the Employer's Representative
when com
as been achieved, and the Employer's Representative issues the
certificate within 21 days of notification, always provided that he or she is satisfied
Th-e-
when
esentative must issue
r her
(48).
-'
The contractor is obliged to complete any outstanding work and deal with repairs
during the Defects Correction Period. When the Employer's Representative is
267
11
ICED&C
satisfied,
Defects Correction Certificate
is
issued, alth
contractor of any liability (61).
)must
Prior to the issue of the Defects Correction Certifi

manuals and as-built drawings for the permen
co
(61).
a
obligation quite additional to material for the
itorltaieres
Neither party may assign the contract or

written consent of the other (3).
The contractor must first obtain c
change of the contractor's designe
Form of Tender, Part 2 (4).
ra
om
Em
oye
ore
rson`r rmed in th
The contractor
is permitted to
must notify the Employer' Represent
arriving on site (4).
?N Requir
give t
Repre
erect
resenw e maa
ility
7c'
instruc
moval from the site of any
omply wit the c
ct, and the removal and replacement
ip. Thi! will tens
replacement of work for which the
g3
ir6
E o
The Employer's
materials whic
of materials y cl wor
contractor as desici
order susp
The Employer's Representati

and order alterations t
ged t
it is c
rior
gust prov'de a necess y superintendence. A Contractor's

overa response it and may delegate to a nominated deputy
ement o the Employer's Representative (15).
I
r)-offender inc
rdance with the colt'
istru
n a
p sum, or such other sum as may be ascertained

nditions. The contract price will include for the
co pletion of the Works (1).
nclud d in the contract price (70).

Provisional sums a
rime ost sums are not referred to in the contract, but a 'Prime
Cost Item' means a Prime Cost sum for the supply of goods, materials or services (1).
Use of Contingency and Prime Cost Items require prior consent by the Employer's
Representative.
268
11
ICE/D&C
Variations to the Employer's Requirements
Employer's Representative the contractor
and delay involved. Otherwise, or if the es
variations will be by the Employer's Repr
in accordance with the contract (52).
ork
in accordance with the Federation of Civil
Dayworks (55).
dered,
ita
nd if
tim
eoft
of
cepte , val tion

fair a d reas na
on a da ork
sis ill
n
0.37
Payment to the contractor is

de on
sis
inter`
submitted to
the Employer's Representative s
he
tract,
ed by an Interim
Certificate within 25 days. T
ificat
ust sow e mou due and the basis
of calculation. If the EmYoyer
to
old pa
he must notify the
contractor not less than or day b
e fi
to for' ayment, and state the
grounds for any deduction.
date
ent
mployer is 28 days after
delivery of the contra or's m-or
Em) yer's Representative. In the
event of failure to ce ify, or failu
yer to make proper payment
to time, the contra for is
to intere
utstanding amounts (60).
I
o the Form of Tender, and the

they slue of the Certificate of Substantial
:orre tion Period (60).
'kill
han t ee m nth
the E
must
-r,
ill be shown in<he A
ten
and th
the date of he Defects Correction Certificate, the

entative a final account together with
ments. Th
mplo
Representative then has three months to verify
a Final 0 tific e. Fina date for payment by the Employer is within
days of certi
4ployer
(60).
tractor must give all noti

and pay all fees required by legislation. This might
ofd sign or construction relating to both temporary and permanent
Representative certifies this, then the contractor can expect
ream
The contractor in
the Employer against the consequences of any breach of

arises due to complying with an
by t e Employer's Representative. The contractor is not responsible
ning planni
permission unless the contract actually requires this. If the
equirr ents do not conform with statutory requirements, then the
Employer's Representative must issue necessary corrective instructions (26).
'-statutoGw6i`Ntion but this will not apply if this
fl,
fl,
+C-,
The CDM Regulations 1994 place obligations on both Employer and Contractor,
particularly in respect of the Health and Safety Plan and the Health and Safety File. The
Employer is obliged to appoint a Planning Supervisor and a Principal Contractor. With
the incorporation of these provisions into the contract, these statutory duties become
contractual obligations as well (71).
269
11
ICED&C
6 Insurance
The contractor takes full responsibility for the care
equipment from Commencement Date to Substa
any loss or damage from whatsoever cause, b
listed in the contract Conditions (20).
O-0
rks,
a rial '11 a
le on. Th risks i
Except
,-+
Jude th
The contractor must insure in joint names

ains risk
11 .11
temporary and permanent works for the
eins to
t co
cover additional costs (21). The term
ce
e fo
Employer.
There appears to be no requiremen

respect of design failure.
O-0
tract
claims for injury

There are stated
22).
'v,
The contractor indemnifies the

inst t
to persons and damage t property oth than
-
take ou
,-0
is required to
third party insurance co
stated in the Appen x to
extent of the contr tor's li
The contractor
mini
indemnit
cove equi
Qnder,
obliga
ployis ind
the
ut t
ccident
nified in-r
())
exceptions, and these remai the resczo sibility
is
mployer by taking out

ntract will be the figure
will not necessarily be the
DJ,
tractor` seven ays' notice in the event of specified

vency nd may, xpel the contractor without releasing
(65).
ler the c tr
Works, ascertaining the value of work already done,
ter termination, are set out in the contract (65).
d u res
.-t
E5.
arranoin
on the part of the Employer, which include
of spec
ency, the contracto

inate his own employment under the contract
s
ing sev
dNs' notice.-If default continues for a further seven days the
aso able dispatch remove all equipment from the site (64).
fl-
270
fl,
,-+
Following termi ation by th Employer, the Conditions provide for assignment of

not appear to include for design drawings which might
goods and materia
be necessary to complete the Works.
11
ICE/D&C
8 Miscellaneous
The Conditions include a full set of definiti
The Employer's Representative can requir
tractor
(16).
There is provision in the event o
archaeological interest, etc. (32).
things of
The Employer's Representative

Workshops. The Conditions refe
but not to offices where de
e site and the

als in manufacture,
Matters relating to the posse

the contract are mainly the resp
to give the contractor,
be awarded (42).
nd those prescribed in
here there is a failure
e and additional costs can
Is brought on to the site may
mployer's Representative (54).
In
the event df an o for
of vvK the
obligations of the parties are
as
stated (63)
ights of Third Parties) Act 1999 are

Spe
aft
con
ns
corp rated, nd they should be numbered consecutively

itions
contr t (72).
ay be
the standar Co
ract requirhat matters of dissatisfaction must be referred to

esentative in the first instance. The Employer's Representative is
er decision in writing to both the Employer and the contractor
ference.
agreemen
(1994).
n cannot be satisfactorily resolved by reference to the

tative, then it becomes a dispute. The parties might, by
deration of the dispute under the ICE Conciliation Procedure
Horants,
Since the
Construction and Regeneration Act 1996 (Part II) came into
force, all construction contracts carry a provision, either express or implied, that parties
to the contract have the right of reference to adjudication. With the ICE Conditions
of Contract a notice of adjudication is to be given, and adjudication is to be
conducted in accordance with the ICE Adjudication Procedure (1997).
271
11
ICED&C
All disputes may be finally determined by reference t
arbitration must serve a notice to refer. Arbitration
1996, and conducted in accordance with either t
or the Construction Industry Model Arbitration
sq
e par
ion.
nder he
itrats
itrat'
ced
Act
(19
This contract?
If considering using the ICE/D&C remem
This form is intended for design and buj
civil engineering work. It may be for,a
required to appoint an Employer's
The key features are the Em loyer's R eq ireme ts , an

ctor's Submission.
Unlike the JCT WCD98, in t e eve
ny conflic it is th Employer's Requirements
which take precedence. Th onus on the coat
to ch ck design information
supplied as part of
Emp yer' Require( ents.
s originating from the
contractor's designe
by
E ml loyer's Representative before
pp r
work is commence
ay re
the c ntractor's liability.
tl
and siiAnificint
od
nd build c tract. For civil engineers, the

oyer's Re
tative is likely to be much easier
chit cts acting finder t
onditions of the JCT WCD98 contract.
d Co)-,struct
272
Conditi
11
GC/Works/1 Design Build

GC/Works/1 Singl
Build (1998)
GC/Works/1 T
Build (1999)
GC/Works/1 Edition 3, for trade
a
published in 1989. Shortly
ocure ent
s fir
afterwards, with the emise of t e Prop e
Serv
A
, government departments
assumed responsib lity f
t it ow n pr '
e looked to non-traditional
procurement appro hes, esign an
d
icular, which was becoming
increasingly po,
respo e to t =ntee t, a ersion of GC/Works/1 for Single
Stage Design nd Buid w intro ced in 1993 nd is currently in a 1998 revised form
followed b a 199 version r Two
e Desi n and Build. In 2000 Amendment
was publi ed in espo se' t
ov ernment ' Achieving Excellence' initiative, and is
applicabl so botla forms It inclu
visions for risk management, value
mana
hole life c tang a
alue engineering.
hs
fl,
idBuild rsion is obviously an adaptation of the

C/Works/1
ntract. It is mainly a lump sum contract and
sepa to desi
input
phase. It is flexible in that it allows for varying
by
e contractor, as the contractor responds to the
ents by deve oping the design outlined in these documents.
sign
loyl r
1Q'
en
wo Sta
vii
fl,
l/1
,-+
and Build version is also mainly a lump sum contract, but

e sufficiently advanced to enable the contractor to submit
a-realistic tender's d
e is submitted initially together with a Schedule of Rates.
This is us
he construction price at the end of the design phase.
deign phase will not necessarily lead to the Employer proceeding
ee
with constr--ttdn.
Nature
For the purposes of this book, comments will in the main focus on the Single Stage
version of the design and build contract.
In common with other GC/Works forms, this comes as a two volume pack: first the
General Conditions which run to over 80 pages, and secondly the Model Forms and
N
N
273
11

Commentary. The General Conditions are prefaced b a ContE(nts lis, foIIo go-ac
in /otther QVV6*s/1
Index. Language and terminology is as that to
anima lar
contracts. The 65 clauses appear under the sta
very
nal fo fi. The
is also
number are identical with those found in the tea
t of Pa
iculars w
useful Schedule of Time Limits, the essen al
Addendum which is really a schedule of desi n inform ion, n Invi do to Ten
Tender and Tender Price Form, and the Contra Acifeem
a
Use
to e. N-clpsig
put required
The Single Stage version is without a sep ate
fired,
th Employer's
as i?7dica d
from the contractor will be to the e
f the Tender
e su
ed ass
Requirements. The Contractor's P pposa
together with a Programme,
indemnity insurance.
tails
professional
The Tender Price Form in dudes alte native ntries

using
Condition 10, Alternative A desig is ity limite
"
or Alternative
(warrant of itnes for purposo

'
fo`ra se
ate desan
stag
d Build provi
design documents;
professional
incentive b
finance c
mobilis
payments
right j h desi
+.nsurance
r desig
plet
perf,
rent com
(late
uil
rugs an
ctual detailsMating o a*articular contract, and the incorporation of option

provisio
ISe dete*inN by how the Abstract of Particulars is completed. The
Abstract is deta e-d-a d am ngst other things requires the names of the Project
Manager and P ' nning Supvisor (who may be the Project Manager). The provision
rtg on the Employer's benalt, and given so much authority,
of a Project Manag
design and build contracts. The adjudicator and the
in
is somewhat unusual
may
be
named.
arbitrator
also
The
Synopsis (Single Stage version)

The form is one of the family of GC/Works/1 contracts. The Conditions are broadly
274
11

/and it
fl,
similar to those of the traditional GC/Works/,

to repeat much of which appears earlier in
here
ant res
However, the design and build forms diffe
which are
e un
6 a b&&
follows:
as
evant to
The definitions include items mainly

Requirements, Contractor's
etc.
The fair dealing and team-wor

those responsible for desigg
the event of discrepan bet

is the Requiremen which
's
equir
eats and Contractor's
design and
reverse of the position
ts.
The professional in emnity ins
both the traditional

these would apply o
Zd
ante
re7 uirem
signand build ve
if 'dated in
is sa
that
ions
]),
ng to design are similar for

although in the former case
fP rticulars.
for the corr' ctness of setting out, and there is also

to
as built' drawings and other relevant
e Date of Com pletion (9).
withi
,-+
e contNctor
t on tl
fl'
JCT
--OR
with
pIo
L/)
Proposals, it
gi'
In
obli.catio
e pro sion
an
build
n Fo
"celera
.-t
traditional form
is
not included in the design
on.
ctor mu
btain
(10A),
r+'
is
Design Do
-s,
r-.
an be incorporated into the traditional

contra -t6r's des gn oblig
obligatio are sl
different from those for design and build (10).
prova
provide samples as are specified in the Employer's Requirements

efore commencing work (31[3]).
ovisio
differ (38).
ns, the design and build form makes no reference to

the sub-letting
conf
actors
(62). Obviously therefore, the nominated sub-contractor
aminated su
the raditional form is not used.
In
275
11

This contract?
If considering using GC/Works/1 Design and Buil
ro
Although there is a contractor's design provisi

thtraditional
is the true design and build version. Depen ng lar'
n i/rfforma
contained in the Employer's Requirements, a c ice betw
le stag
tendering will determine which versionf io, d an a
d form is
applicable.
ittn
The now defunct National Joint Consulta

Co
Industry Board, have both produce e
Co
or
build contractors. Both advocate at de
d bu'
through the two stage process, and
to tha
only where the Employer's

no risk of further modificati
v+-
When completing the co

Particulars is a key docu
incorporated, then in
This, of course, is th revers
for
re
etM
in
flict
wit
est achieved
ill be suitable
ign with little or
efin
the
the;
os' 'on
than o design and
nderin
tagrin
f any sp
e
rese7rt Construction
e se
forms, the Abstract of

ntary conditions are
ovf the printed Conditions.
ontracts.
The wording of th Condi ons i"Iea nd well presen ed. There are alternatives for
design liability epend
ier ,t
e professional duty to use
reasonable care an kill, ofor an
solut fitness for purpose.
i
(3p
traightforward and there is the

for Oxa'gress
etings in Condition 35. The Model
upporting ocument and must be used. There are
tract, nd a further 13 administration forms.
fl,
set departments targets to become best practice clients.

tegrated supply chain routes such as design and build,
d val
se
'AcWing
Exce
the Abstract of
Pa
..ten
3rD
se cover
account whole life costing and value management.

ay be progressed by incorporating Amendment
r GC/Works/1 Design and Build contracts.
This for
276
((DD
(D3
<l<
mos to those with experience of GC/Works/1, for the

terminology and roeeaures ill be familiar. It is particularly interesting because it
seems to give t
Employer, nd the Project Manager a degree of control over the
contractor not usua
d with design and build contracts.
11
GC/Works/1 Single Stage Design and Build (1998)nGe

GC/Works/1 Single Stage Design and Build (199
GCJWorks/1 Two Stage Design and Build (199
Amendment
1:
Achieving Excellence
277
278
Management
procurement
Management forms
t Cont?act'1,998\lditio
00o
Standard Form of Managem

tandar
vii
Works Contract 1998 Ed

Contract
The Joint Contracts i-ibunal Lt
Construction Man
gemerI A
reemen
The Joint Contracts
ith the
Trade Contra
Agreement.
d that
r
by
uilding contra for traditional procurement can be adapted

included in this chapter are those exclusively
However,
s where the pry opal rot or h the contractor is to manage the intended works, which
o er person 'under h or h control.
s
eral
'
279
280
Management procurement: management forms
12
XT MC98
Standard Form of
Contract 1998 E
Background
t e Employer
an
e over
gn, Specification
se
and contract administration
the
s o
in e nde professional team,
management contracts ar on
n.T
d Kingdom became
int l
popular during the 1980s, ut in cen vear
seem o have lost ground to
construction management. Ma iar clien
hav
more sophisticated and
well able to hand)
olvem
ocia
with this latter type of
i
fl,
fl,
v,o
For 'fast-track' projects where
r-.
procurement.
the advice
Contr is Committee, asked the JCT to
produce a
anagem rh cd
A the time, the only forms available
isatid
who
were those d ise
ntrac
t4Qg
orga
s
pioneered this kind of working.
ycq
rred orking procedures of the companies,
These were ften g ared
suit f
d rat
ith their particul r interests very much in mind.
and uncle tanda
:p'
U'+
-,,
In 1979 the RIBA C uncil,
ments
htractor, an
is ued Tb Stan
elated doc ments
r
m of Management Contract (MC87)

essary for management contracting. The main
contract
ween the Employer and the Management
cts bet een the Management Contractor and each
ca rr +qg out a p kage of the work.
the he
orks
Con
Th
ocu ents ar currently published in 1998 Editions and the Management Contract
for
is in amiliar
t with Section headed Conditions, whilst the Works Contract is
discr
parts, the first of which is itself in three parts namely:
cfim
Works Contract/
ntr t/1,
orks
ract/2
1: Invitation to Tender
tion 2: Tender
ction 3: Articles of Agreement (to which Sections
and 2 are
b-contract conditions, which may be incorporated by reference)

(Employer/Works Contractor agreement)
The main contract between Employer and Management Contractor covers both the
pre-construction period and the period of actual construction work. It contains a
detailed Contents list and the Articles of Agreement which follow include Recitals,
Articles and provision for attestation. The Conditions are followed by an Appendix in
281
12
JCT MC98
two parts, Part relating to information required g fore
erally nd
specific information which needs to be entered b,
do
c nstr
Necessary to this kind of document are the Schedul whit app r i
1
the VAT agreement.
Too
(:D
The First Recital refers to the description of the

and confirms that the Employer has appointe
roje
a profes
ered in t e FirstAch
am. oh'
'gird Re
rofessionaYI
ect of
,O+
confirms that the Management Contractor is to mop to w t

both in the Pre-Construction Period and t
do erio
set out in the Third Schedule.
Article 1 confirms the Management

defined in the Third Schedule, for
under Article 2.
tor's
The names of the Architect, th

to be entered in Articles 3A
to be entered in Article 5.
minist
Teem
nt t6\60dorrri
-kie
mp
fl,
'~'.
whi
,-+
{3j
fl,
In Article 6 the Employer

dert kes to ha
ings and the Project
Specification, and a
n
st P
prepa d as
s reasonably practicable
after the date of the ntract: By)k icle , he E
loye undertakes to have necessary
information prepay d by t profes iQnal tea`
n resp t of the Works Contracts.
fl,
The appointme
purposes of the CD
oft
of either part
PI
nning
egula Nons ar
utes to
final resolu
Kto be
r
hand an
O+,
ay be appointed by the Employer pre-construction, at
earl
oug
For his he will expect to
to carry o
reimbursed the
th
cka
bsts a
tea,
the c611 struction phi
contribute to the work of the professional team.

that the project proceeds to
Contractor will appoint Works Contractors
es'. For this he will be paid a management fee and be
defined in the Second Schedule.
'ee. Then, assuming
fl,
e Ma
a 4tage
Principal Contractor for the

Artcle 9. Article 8 confirms the rights
atio while Article 10 covers whether the
itratio or by litigation.
Sups
over
,-r
fl,
Management Con
tors
almost invariably selected by tender and after interview.
The fee is not usually the main criterion; this is above all a contract about resources
and the ability to manage effectively many Works Contractors.
The Management Contractor will advise on the choice of the Works Contractors. They
will normally be appointed on the basis of competitive tendering. The Management
282
12
JCT MC98
.-r
Contractor starts with a Contract Cost Pl.r'i and rogra me

responsible for the appointment of Works C tracto s, th
coo
and the provision of all site services and f cilities.
fl,
fl,
,--r
CND
Tight financial control is essential, and

ide ble reliance ' place
t
the
Management
Contractor
to
o
he
ost
PI
tota
of
onito
, eve
independent surveyor is appointed b he Emplo
e Man ement
under a contractual obligation to chi e co
letio on me, altho h any design
k p
developments or detailed cha ges
ag es
hi c-b occa as the work
proceeds could give rise to
e.
till requires the
e co
t en
you
Management Contractor to e '
n
allo
for acceleration of
parts of the Works.
r
The Contract Documents c

prise
ojec
(listed in the Fourth
ati
xed to the Appendix Part
Schedule), the Project S
a Con
t Pla
2), and the Articles, onditions, appeAdix an
ules' The fact that the work will
be carried out on si e by t
rks Con ctors i eferd to in the Second Recital.)
Synopsis
Intentions
The Manaa ment
fl,
ntracto
ndertak
o coo erate with the professional team (1.4).
Specific b ligati ns ar s e t
ti
nd the Third Schedule. These include
preparati o
f Pro mmess entering
orks Contracts, being responsible for the
contract and pr vi
those site facilities and services listed in the
Contr for is responsible for continuing supervision,
anag
project is car, ed through in an economical and expeditious
detaile records for the quantity surveyor to verify the
stror
Fia
is fully liable to the Employer for any breach of the

occasioned through breaches of Works Contracts (1.7).
ontractor
se
rch itectt
documents nece
10)
specific
The Con
Conditi
6 and 7).
he Management Contractor with further drawings and

explain and amplify the Project Drawings and Project
raocu
s
ents will be Project Drawings, Project Specification, Articles,

and App hdix, the Contract Cost Plan and the Schedules (1.3, also Articles
is to be as described in the Project Specification, and in the Specification or

bills of quantities for any Works Contract (3.8). There is no reference to Performance
Specified Work in MC98, but there is in the Works Contract.
Quality
The description of the Project is to be entered in the First Schedule.
283
JCT MC98
Project Drawings are to be listed in the Fourth Sched
2 Time
The Management Contractor proceeds to constructi
notice by the Employer (2.1).
At this point, the provisional dates (Append Part

(Appendix Part 2) for possession and completio
The Management Contractor is given p
is required to secure commencement a
1)
ssessi
and
ensure re
Deferment of possession for up to

(2.3.2).
gen
subject
oject
Completion
is
provided for
A.
Project extensions of time ay be ceded to t

Architect. The events or ite s whi h are relevan
extension requires the
men Contract tr
prevent delay (2.12).
Contr
itect
Completion of the
(2.13) and any

its best endeavours to
ses to ext6nd th
-L-d and has
contract period of a Works

right to dissent (2.14).
the completion date (2.3.1).
ject may be
Practical co
her opinio
t Contractor by the
u mber
he Architect and is subject to his or
roject
r fail
com ete the Project by the completion date,
to of non o pletion (2.9).
If the M
the Architec
Employ S MT
`rtificate-of, non-co
ides for p
efects.Liability Period must be scheduled by the

an 14 days after its expiry (2.5). When the defects
tect issues a certificate of completion of making good
..C
ects`-Q,lee made go
ect and delivered up
be
, th
ecti
Arc
to liquidated damages depends on the issue of
ial possession by
the Employer, subject to the consent
The contract provides for the issue of instructions to the Management Contractor to
accelerate the work. It is possible to establish a completion date earlier than the date
stated in Appendix Part 1, provided that clause 3.6 is shown to apply (3.6).
284
12
JCT MC98
The Management contractor has to identi

the Project and/or site in a list attached to
manager in the Appendix Part 2. The,
changes (3.1 and 3.13).
age
en
ers
ched
e,
ei
and
er
r
the Arc itect iOLlaui
The Architect is to issue written instru 'on o th

reasonably necessary (3.3). The str tion mi
req
Contracts variations (3.4). The `rchitect
to 'be inst
sums in Works Contracts (3.4).
i
The Architect has the pow to n

e Mataaement
ontractsto acc
work (3.5) and, an unusua term i
altering its sequence under stat circu
i
The Architect shall

ovide the
setting out, etc. for he Prom!
II
issu
of works (3.18).
actor' ust obtain vobcher o satisfy the Architect about the
matbkOls (3
must also comply with Architect's
(3
fr m the site of work not in accordance
king good of defective work (3.12).
th-e,i mediate
goo
concer
bntrac
ntract without written consent (3.19). However,

pendix Part 1 entry states that it is to apply,
right action against the Management Contractor
o tran
uent interes n the completed Works (3.20).
to assrqnmen
There is a b
an
ther
all
the
0)ioval
clause
hich
instructio
act (8.1).
ect of the
Management Cob
hey
app
arried o
r
if,
orks Contractors, and which are identified in the

are subject to the Conditions in Section 8 of the
Contracts, the Management Contractor's obligations in

vice versa are fully set out (3.21). Alleged breaches by the
r by Works Contractors are covered.
ntract allows for work not forming part of the contract to be

s directly engaged by the Employer whilst the Management
still has ossession of the site (3.23).
t by-'perso
r
4 Money
Payment is made by the Employer to the Management Contractor at agreed and
stated intervals, on Interim Certificates issued by the Architect. These can be issued at
both pre-construction and construction stages (4.1).
285
12
JCT MC98
Amounts due to Works Contractors are included, an nd he Ar hitec
ust
Management Contractor as to the amounts due,
ma b71p quit
r
to
nt
the Works Contractor (8.3). There is an option
earl finaay
Wor
Contractors, subject to certain safeguards (8.4).
-+.
Cost o
ag nent ConJractor's
fl,
O-+
Payments to the Management Contractor inclu

fort
carried out, reimbursement of amounts incurr by the
staff and services, and an instalment of the man em
4-5àod 4.6).
,-+
Retention is not deducted from the inst

3 per cent of the work not yet at practic
completion
sa
obligation to invest, and unless the
Works Contractor may require it to
epa
is released at practical completion o
e Proj
an
Marj
L/)
Interim Certificates are issued

t
in the Appendix in respec of the pr
construction (4.2).
ccount.
ue to the
y
nt by
ter is e
Management Co ractor
before the final da for p
ntractor, and the basis
ana
1'
Em oyeris 14 days from the date

Empl yer is to give written notice
,posedand if ums are to be withheld the
her writte notice not later than five days
giv
-+.
Certificates must show the
of calculation. The fin

of issue. Not later t an five
specifying the am nt of
ctiori
ent (4j
give pr per n ices
the o
nding
Inagement Cc
does not pay amounts properly due

ms will attract interest at 5 per cent
ntractor a right to suspend work (4.3).
issued n les than 28 days before the Final Certificate,

ing sums du to Works Contractors (4-11).
nn,
ng
.'The Constr
(4-9 an
fl,
pleti
ust provide the quantity surveyor with all information

Prime Cost no later than six months after practical
keerio Management Fee may be adjusted in accordance
-4,
Management C
cessa(ry
'the contract
issues the)Final
of the latest of t
ertificate not later than two months from occurrence

the contract (4.12).
d in
CDR
=foit
The requirement
C)-
--r
otices by theEmployer, and the application of interest

on amounts properly due and not paid by the final date of payment, also applies in
the case of the Final Certificate. The final date for payment is 28 days from the date
of issue.
Applications in respect of loss and expense made by
286
Works Contractor must be
12
JCT MC98
iii,
passed to the Architect by the Managemen

opinion that the application is valid and m
Contract, the quantity surveyor can be
actor.
If
ns s
asce tain
Icond
liqe Ar
collaboration with the Management Coptrac

5
fl'
The CDM Regulations require the ap

Principal Contractor. Various othe
and Safety Plan and the Healt
int
Krr
pa
e.
ul
ision
contract (5.18 to 5.21).
0-K73
Responsibility for complia

ces rests with the
islatiand servi
Management Contractor (
if t
or finds a divergence
between statutory requirements d Con
rther drawings etc. he
is to inform the Archi ect, who
hin seven days (5.2).
issue i
geontra
fl'
The Management C ntract r-+ mpowere to tak ctioM in any emergency to ensure
compliance, and su sect t( certain condit
this w
be deemed a variation to the
Management Cpntra
Works Co
to pr
other
emnifies the E,Mployer in respect of personal injury

an-the-actual corks (6.7 and 6.8). This is to be backed
v1
'ement
li able (5.4).
6.10)
nage nt C ntract is to take out joint names insurance for the
irk of le
nuisar e. There is a list of exceptions, and damages
attril table to ri y negligence by the Management Contractor
An
endi entry including the amount of cover is required
I
he Emplo
risks. This must be
apply, insurance of 'the Project' (i.e. work executed and site

ut by the Management Contractor in joint names (i.e. in his
or the full reinstatement value of the Project against all
fore any work begins on site.
o apply, the requirement to take out such insurance rests
with
yer.
.-T
D-0
,-+
,-+
the eve
hat to orism cover is withdrawn and is no longer available, the situation
and options open to the Employer are dealt with in clauses 6.4.10 and 6.5.4,
introduced by Amendment 4.
In
Where clause 6.5 is to apply, and the Project comprises alterations of or an extension
to existing structures, then the Employer is required to take out a joint names policy
in respect of the existing structures and contents. This is to be for the full cost of
287
12
JCT MC98
reinstatement etc. in the event of loss due to Specifi
Insurance for the Employer's loss of liquidated
Appendix Part 1).
thePfo cti
An Appendix entry will show whether the Joi

from Fire of Construction Sites is to apply (6F
Management Contractor must comply with
plo er and
if
is allowed to deterrri rRe the em

Contractor for reasons of default
war
Architect, but the notice of deter inatid
a matte
The Employer
In the case of insolvency of the Man

circumstances, determination.
or the Employer might elec
allow continuation or novae
The Employer is allowed

Contractor at will (7Construction Period
emen
matic
reem
ending on the
to p
V-5-
e reinstatement,
Agreement') to
determine th
course Tapp
The Management -ontra or is

of default by th m plod (7;,
determine hi
ine the em
Either party c
neutral cau
of the partj
ctive rkh% and

are
ou in d
ail (7
ist of defiditions rs.inclu

c e s s or
profes i n
rights of the
team l
ct
y on
or er t
Management
by the Architect
The Ar
ssured, but subject to restrictions to protect any

Contractor and Works Contractors (3.17).
e (ent
removal of the manager from the Project and the

a suitable replacement (3 14) subject to approval
C=sbecause
find
Where progress
of the discovery of antiquities, the Management
Contractor is obliged to inform the Architect, who must issue instructions (3.26 and
3.27).
There is a contracting out of third party rights under the Contracts (Rights of Third
Parties) Act 1999, introduced by Amendment 2.
288
12
JCT MC98
Section 8 also deals with relevant issues arisi
the terms of such contracts, nominated sup
m
iers
Wor Contr 'sir

or
ont tors,
fi al p men and
to
ontrac
Contrcto
Management Contractor under Works

expense reimbursement to Works
imp
First Schedule: Project description: a sh
be completed by Employer;
Second Schedule: definition of rime Cost

relating to Works Contracts; K-si
tai
materials, goods, plant, st
ices
Third Schedule: services to
Dfie
blehe
an
of
scope of
the
ent Contractor
tor;
ontr
on-site labour,
ment Contractor;
r
provi
e
o
latir
drawing
fa lities
plet
m
by
fed
selected from a list of rno+eoblig

period and after wo starts on bite;
yer;
ant. hey
seres t
be ' provided by the Management

the onstr ction of the Project, and initialled at
befo
P2
is
signed.
r0+
ion and Regeneration Act 1996 gives either

sing Gra ts, Co str
iq t to refer a differ hce or dispute arising out of the contract to
ovide for thi
icatio
Articl
arbitration as the agreed method for final determination of

ppendix entry shows that this has been deleted in favour of
,-r
proceedi
and 9C).
289
l"'
12
JCT MC98
If considering using MC98 remember that:
dministrat
.-+
It is intended for use where the Employer has

quantity surveyor and other advisers to make pa
has prepared project drawings and
ject Spec
drawings, Specifications and bills of
wor
Contractors enter into contracts direct th
M acient
is not a lump sum contract, and the s
paid by wit
e m
erto
fl,
vii
fl,
fl,
fl,
ork
ma
me
fee.
einth
fl,
The management contract is in

e ve
to or public
sectors. The Conditions apply to bo the p
uctib
a d construction
Appendix Part 2
d in
period and the operative details
ix Pa
ion,
celeration,
partial
respectively. The Conditions nclude
nt o
is
contra
sign. There also a
possession, performances ecified wor
Section relating to the Wor Con
rs and resp tive o
ations.
are
tor'
e s;
uId a
,-+
fl,
inist
Al
,-+
dealing rectly with the Management

inistration of Conditions in the
inv
i
t
e
re are ne erthel s
ome instances when the contract
d wit the V rks
cuments, and the procedural rules,
m iculously observed. The whole process
nee
coord in ion if unnecessarily abortive work is to
can be voluminous with this type of
ocume
uite arduo in terms of administration.
turn
ules
,-+
ct ad
d re tingtgdeferment of possession;
acc lerati n, management fee; Joint Fire
b
heck
for completeness of entries.
re requi
atN
0(D
(.O
When completing the f

insurance of the Proje `t; liq
Code; and EDI. The ve Sch
r
98 first appeared it was the first such standard form
aila e.
ent method seems to have declined in popularity,
ce4he4a-th
i
gi ng
agement as developer clients become more
ct
use expertise. It is a relatively high risk contract with
with im ress e
sop ' ticated 'with
d tim ele ents initially. It depends on goodwill and a high degree
impreci
s
of trust betwee
Empl yer, the professional team, and the Management
Contractor.
290
,-+
fl,
r+'
fl"
fien the p edeces
12
XT MC98
Standard Form of Management Contract

1998 Edition (MC98)
Amendment 1: 1999 (Construction Industry Sc
Amendment 3: 2001 (terrorism cover/Joint Fire Co
Amendment 4: 2002 (extension of time)
Phased Completion Supplement for Ma
References
Note MC11: Managem
Commentaries on the JCT Man
(both written for MC87 but still large
JCT Practice
JCT
Commentaries
Vincent Powell-Smith and
The JCT Management C
Kluwer Publishing (1988)
291
JCT MC98 WORKS
Works Contract 1 and

1998 Editions for us
Form of Managem h
Background
Contract Documentation for use w
includes the following:
Works Contract/1 (in three Se_
1 Invitation to Tender; Sect
n2The
Sectio
Works Contract/2 (Works ontract o r ditions)
Works Contract/3 (Employ y/Wor Contractor A
They can be used onl
although this is lar ly a
Contractor, effec
necessitates refe
e ad
nce
art
Oes
e19 Edition
CTWnagement Contract, and
f or t
eme t Contractor and each Works
inistra t an of 1te-rhain
anagement Contract often
Matt
'
&in the Work s ontract.
f Agr
ction 3) contain Recitals and Articles.
(Work Contr ct/1
ent is bet
e Ma
ment ontractor and the Works Contractor,
irst Re it
t the Mana#ement Contractor has entered into the
onfi
.ard Fo
of)Man gement Contr t.
E4-2
>.O
to 'numb ed documenYs' which are effectively Contract Documents.

confli between documents, the Works Contract Conditions are
d doc
ents (1.4). If bills of quantities form part of the Works
to SMM7 unless stated otherwise (1.10).
t/1 `Section 3) establishes Works Contractor's obligations.
tract Sum which will be a lump sum, and is VAT exclusive.
(in
Imo-
an be execu
t Contr t
d under hand but not as a deed, or as a deed. However,

is a deed then the Works Contract should be similarly
vii
Use
The choice of Works Contractors
292
rip
r=+
,-r
is a matter for agreement between the Architect and

the Management Contractor, although the agreement is of course between the latter
and the selected Works Contractor.
12
JCT MC98 WORKS

The Architect has relatively few direct ob
gation to
Is
Architect's opinion is the overriding factor c cernn

ra
ac
of off-site goods which may be included amou
un r a c tifica
Arc ect. S
respect of which a direction for payment
ed
nominated by the Architect. Administr ion D-f th
orks C tract m
for the Management Contractor, alth ugh the chi ct mus e otified
matters (e.g. extensions of time, comp li an ce with
ecti s, de ermin
r-
Synopsis
(clause numbers refer to Condit(
Intentions
vi'
The Works Contractor is oblig
nd c
fers
-+,
N, to
e even
eduliov
mnify t Ma ger'nt Contractor for liability to the

perf rman e under the Works Contract (1.8).
efaul
r+'
for
Works in accordance
dards, and obligations
ren
to a design obligation is
hich is a warranty to the
fl,
with the Works Contr

is, claus
relating to design a
performa
a reminder of the rr port
Cntof Work
Employer relating to esig
in
carry g out
will have been established in Works
I will
to a large extent on general progress of the
nage
nt
rac r is obliged to keep the Works Contractor
fore n
mmence is given (2.1).
i
ion 2. Starti
t, and
ciently infor
,..'.
fail to complete on time, the Management Contractor may

ment from the Works Contractor for any direct loss and
4-'
Works Coh
be
,-+
vii
``G
t"ses.
4A6-
fl,
Wor Co ractd
ive writ n notice to the Management Contractor in the
Subject to receipt of notice, particulars and
of del
and al ;o state
y, the question of granting an extension rests with the
st1
to of dc
eme Contr tor.
he must first notify the Architect, who has a right
Seril_f
e13rosed action (2.2 to 2.10).
Qom)
Practical ompletion i largely a matter for the Management Contractor and Works
Contracto , ut th consent of the Architect is needed before the Management
Contractor can issue a Certificate of practical completion of the Works (2.13 and 2.14).
Control
The Management Contractor is obliged to issue further instructions, directions,
drawings, Schedules as necessary for carrying out and completing work under the
Works Contract (3.1).
O_.
--o
fl,
fl,
293
JCT
MC98 WORKS
Relevant instructions issued by the Architect under

be passed down, and the Management Contrac
directions to the Works Contractor (3.3 and 3.4),
The Works Contractor may make reasonable

ary
rd
to epreli
issued under the Management Contract to ac elera
or alter is seq nce
The Architect must take this into account,
the V
t if the ri ice ands,
Contractor must comply. However, he ca)Zexp t
ei r)a ent for this/.
i
trec
4 Money
.2)
fo%96
is ap
ion A
(Par
'in
Statutory obligations concerning paym

Housing Grants, Construction and
The Works Contractor is paid by
Architect in Interim Certificate
valuation includes for work
on site, and it may also inc
Retention in respect of Wor

Works Contract (not
the
reached (4.23).
,f
t
re
Os a
'off-site
irected by the
o retention. The
as
These
ateria
materials properly
(ods (4.22).
ttracts is redu
eat under
The Works Contra or mu

ntractor, and if instructed the
quantity survey `r also,
tion nece ary for computation of the
Ascertained Final orks Cautract S Am (4.30
is no Final Certificate relating to
Works Contr
hat issued nder rta
4.12 of the Management Contract).
5
Statutory
The CD
Principal
Stat
th
se
relatM
ire n
s will
appoin
all
ent of
Planning Supervisor and
be covered in the main contract MC98.
are also like to implicate Works Contractors will include

and Safety Plan and the Health and Safety File (5E).
orks Contractor are concerned with tax matters to
The Works Co
ind mnifies the Management Contractor in respect of
personal injury `r death, and, amage to property (which may include the Project), and
is required to ins
ai
this (6.4 and 6.5).
Concerning loss or damage to the Project and to the Works, Works Contractors are
entitled to the benefits of the joint names policy for the Project (i.e. 6.6 to 6.8), but
this is not in respect of all risks, only for specified perils (defined in 1.3).
294
12
JCT MC98 WORKS
The Management Contractor has the right t

Contractor for reasons of default. Determi
ine
The Works Contractor has the right to

default by the Management Contrac or (7-7).
Rights and obligations following
to
ent oft
om
n nsolve cy is a
own
ploy
nt
r r
term
8 Miscellaneous
The provisions for nominate
covered by a Prime Cost o
Nomination
is a
iers
tT*e f
uded in
sum
:1).
matter for
9 Disputes
Statute requires an
djudicati o provisia n in a
have the right to e ter a

adjudication. The c16 ision
determination df-,the sput
ion contracts. Both parties

rising out of the contract to
ill b binding, at least until a final
proceedings (Article 3 and 9A).
4ferenc
i
rbitr
o
thod for final resolution of disputes

ceedings (Article 9B and 9C).
If coKsideri`
It/s inte
Ten
sole` v
ng
to
ch
the
n de r
SeleWai
ntractor
certifying
fo
for the Magement Contractor, but the invitation might need

mpatibility with the Management Contract Conditions. Similarly
Nketween the Management Contractor and Works Contractor.
heW orks ontractors is by agreement between the Management
an
ct administrator. The latter has a particular role in
ue0'the Works Contractors, applications for loss and expense,
ractical completion.
f
Contract 'onditions are Section headed and synchronise with those in the
t Contr t. If MC98 is used, then there is no choice other than to use WC98.
295
12
JCT MC98 WORKS
Works Contract/1 (1998)

Section 1 Management Contractor's Invitation to Tender
Section 2 Works Contractor's Tender
Section 3 Articles of Agreement: Attestation
Works Contract/2 (1998) Works Contract Condition

Amendment 1: 1999 (Construction Industry Sche
Amendment 3: 2001 (terrorism cover/Joint Fire
de/CIS/S,(uvlM)
Amendment 4: 2002 (extension of time/loss
ontract
296
JCT
12
GCM
Construction Man
C/CM
Background
.-+
The fundamental distinction etween m

d construction
management lies in the de ee
direct contractual
relationship with the Contr tors
y out work p
With management
contracting this will be ac hi
Mar
d tho
cent
tractor, and there will
also be an independent team
rofe`s
ind
architect and quantity
surveyor with overallsponsi
desig
administration.
-5.
whtheienf
fl,
With construction anage

the Con uctio
will be the key person or
firm with an overall spon ibility for coor na n an ontract administration relating
The lient als
t
as
ig
nt contribution to make, and is
rt
nt of
e age
Con ultant Team and nomination of a
tam Le der. e Con to Tea will have a major involvement in the
t peri
ar,dalt ugh likely to lave some involvement during the
t administration.
on peri
.
mentation for construction management. This

f the JCT, but was then overtaken by the
txtha
rt,
d the Housing Grants, Construction and
96
rt II). The raft was developed to take account of the full
cons `ruction management documentation eventually
i, and th
produced
raft d
uent
odies
L.0
'.,
cons
cum
is of an Agreement (C/CM) between the Client and the

a Trade Contract (TC/C) between the Client and each of
The is also an Invitation to Tender, a Tender document, and
rad Contractor to a purchaser or tenant, and funding organisation
+'j
onstruction Ma
the Trade Ceiatract
,-+
The Agre-emQ nt (
M) between the Client and the Construction Manager is an
attractively presented document, logically structured and with particularly clear layout
making referencing relatively straightforward.
,-+
There are four Recitals, the first of which refers to the building works being phased,
and a deletion is needed if this is to be a single stage operation. The Client undertakes
to appoint the Consultant Team, and to have prepared an Initial Brief and preliminary
297
12
JCT
GCM
Project Cost Plan. The other Recitals refer to the fact t yet the f CD
egulat
apply; the services to be performed by the Construc on Ma agernd at the
will be carried out under contracts directly betwee the Client a
e Colntracto
I
There are five Articles, which refer briefly to

Manager and the Client; the identity of t e Pla
Contractor; and the methods for resolving d utes.
ations of tKe Constru
incSupervior
an
tion he
The Conditions are relatively short (just
follows:
1.
Intentions of the Parties
2. Obligations of the Construction

3. Obligations
of the Client
4. Assignment and Sub-contr

5. Payment
6. Insurance and Indemnities
onstr
putes
Probably the mo signifi nt arts o the

pages in total). The act as refer, nce p,
c
je
Conditions,
the
ption
an
suran
nities,
of Reimbu able Cc
nits
urth, Mo
Inde
Servers to b
cction
Site Facilities and Se
ht Team;
Ninth, Cost Planning-arTd-Control;
Tenth, Adjudication;
Eleventh, Arbitration.
298
're the Schedules (taking up 35

is for much of what is carried in the
nnel;
be provided by the Construction Manager;
12
JCT C/CM
Some of the Schedules contain essential
ailed iy(formatk
entries to be made. They amplify many of t ZDrovisfcins
are at the very heart of the agreement.
find
Perhaps surprisingly for a form more

under hand or as a deed.
The nature of construction manageme

r
rem
only for major building works un
e
rienc
Construction Manager is large responsi
th
nag
Trade Contractors, this still leave the ctrent w
con3
cable
on a day-to-day basis for th
e-constru ti6Ran
of th
of the Project.
e of interest
Although the
coordination of
Any role for archit `_ts will b e s rn

Itant Team to which they
h ers
might be appointe under
nsultanc
gree
hey might also be named as
Consultant Team L ider rticularly for c
stage at pre-construction, but much
will depend onAhe ture bf the wor
art
Sche
he sc
el/ma
ient's
FAt
Cli
nt
is
to name the Team Leader, and to
mer ber. A copy of the Client's Initial Brief
Ian will be
veloped into the Project Brief and the

fy the 'Client's Representative' and the
nsultation between Construction Manager and
sure
m Lea r is 1,0 ut
commendable detail in Part C with clauses
d. Th
volve ent of the Consultant Team during the Prection Perio s, which should be covered in any consultancy
d in R rt D of the Eighth Schedule.
rr
Planlien
1
he
work o
must
are not involved directly in contract administration)
Subject to
contrary the work will be carried out in phases (First Recital).
thin
Possessior-and ontr of the site is given to the Construction Manager, but this will
ssarily be e lusive to the Construction Manager (1.5).
I
(_l
for the Client to use or occupy the site or the Project before
completion (1.6).
There
is
provision for partial possession by the Client
(1
-7).
The Construction Manager is to manage the Project in accordance with the Project
Brief, Project Cost Plan and Health and Safety Plan (2.1).
299
12
JCT C/CM
The Construction Manager must provide the services
A (Pre-Construction) and Part B (Construction)
Schedule).
d Fou
Sch
d side fa
uTF,Part
ities
xth
`^.
The Construction Manager must exercise skil

expected of a reasonably competent Con tructi
professional indemnity insurance as indicate n the Ap
The Construction Manager is not liable
(Eighth Schedule item 2.6).
The Client may appoint a Client's Rekres
the client 0.4).

The Client will appoint the Consultan
(3.2) and may appoint a Cost
st Ita
to
The Client will appoint Tr e Con trac ors,

ing in
the views of the
be ma after terview, an analysis of the
Consultant Team. Appointm nts wil
tenders, and a written repor by th ConstructiouxP
er (F, urth Schedule Part A).
Contract documents c m se Ti
and Appendix to the g ree m nt
Preliminary Cost Pla , and velo
Project Specifica n, an Pro1o
ifications, d Mails a
roject i ormat
Further drawings,
to explain or
leted R itals, rtic es, Conditions, Schedules

M). D
me s refE red to include the Initial Brief,
Brie,
Project rawings, Project Programme,
ect
Eighth Sc edule Part D item 1.2).
e co
Time
re is no s
rms,
e constr
by
Con
m Project Completio
teade
tion date with this agreement as found with traditional

iod runs from the date of commencement of work on
the scene, and ends with the date of issue of the
to (1.3).
Pro ramme prepared by the Construction Manager after

nsult nt Team. This will identify critical path, lead times, and
key milestones ( urth Sched e item 5.1). The Construction Manager will update and
expand this progr
liaison with the Client and Consultant Team (Fourth
Schedule item 5.4).
There vvi
rolec
consultation with
The Construction Manager will, before Trade Contract tenders are invited, prepare a
detailed week by week programme (Fourth Schedule item 5.2).
300
JCT
12
GCM
During construction the Construction Manage,

may cause delay in completing the Project
all matters related to progress after consul
item 9-11).
lent
e th
ite
((DD
Zh'esd
ons
tant
am
ma
8), a
ur1
The Construction Manager is not to b held re

caused by members of the Consuitan Team, b
.-+
efforts' to avoid or mitigate the ects
:3).
The Construction Manager, w h agreerit\by lei

certify practical completion in re ect
Cori
ract
2):
After completion of the

(CD
ast
ont
the Cd
on Manager with
agreement by the Consulta Team
will u he Int im Project Completion
Certificate and the Defects Liabii itv Perid
ally
s from the day named
in the Interim Projec
tificat
ce (2.2).
i
When defects in w rk carried4t under`

the Construction M nage will issue a Ce
of the Project (23).
advis the` Client that all obligations under the

(filled;
Client ill issue a Final Project Completion
nstruc
acts
acts have been made good,

aking Good defects in respect
(2.4).
structibp Moager personnel are to be entered in the Fifth

es retire the onsent of the Client (2.2).
ign the agreement without written consent (4.1).
ac,
nager cani'r4 sub-contract his obligations without the Client's

e Trade Contractors, after receiving recommendations from
d where relevant the Consultant Team Members (3.6.1).
onstructi
The Tradef_ ntrac
ttherwis
wiMe
ed
on the current JCT Trade Contract (TC/C) unamended,
with the Client (3.6.2).
may issue o the Construction Manager such instructions in writing as are

ecess
(3.7).
The Construction Manager will manage and coordinate the work of Trade Contractors
(Fourth Schedule item 9.2).

The Construction Manager will hold regular meetings with Trade Contractors and
provide monthly written reports for the Client and Consultant Team Leader (9.4).
301
12
JCT C/CM
The Construction Manager will arrange and chair re
which the Client and the Consultant Team will be
the minutes (9.5).
e is ako
r6oonsib
for
4 Money
(D<
The Client undertakes to pay to the Construc bn Mana

Management Fee as entered in Part 1 of the Se
VAT, can be adjusted if circumstances ch
.-t
Payment will be due in part on signi

intervals to be stated in the Appendi
In the construction period, the Con ructio

er
mit to
ent monthly
str
Perio Management
accounts which show sums due in reject
cost
ned in the Third
Fee (as shown in the Seventh Sc
reimb
struct
Schedule); and any other su sdue to t
age 5.3).
i
cent
er b
til pa men
is
made (5.5).
V'1
ti
r susp
rap
The usual five days' notices re re,

from the ient
payment is 17 days from the ate o issue of the Comt
on
Final payment to t e Cons uctio

r is dependen on the final account showing
the total sum du ander e a reem e t. Thi
e submitted not later than one
month after the dat f issue of th Final R ect Completion Certificate (5.6).
ply, )rkd tl
final
ManNger's a
full (Second Recital).

er is the Principal Contractor he must ensure that the
ith the Regulations (2.8),
ere the C nstruc
s appointed Planning Supervisor he must ensure

ulalions, and in particular Regulations 14 and 15 (2.9).
T'S
...
the Construction
ce with lh-eCAM
a,-
---_.
ger s to liaise with statutory authorities and statutory

ing to site s vices (4.1).
The Construction Manag is to advise the Client on orders to be placed with statutory
bodies, and to manage implementation of their work (4.2).
rere
The Construction Manager will monitor Trade Contractors' compliance with statutory
requirements and verify that all necessary approvals have been obtained (4.3).
302
12
JCT C/CM
r+'
Insurance and indemnities are dealt with
ditiohs'bbv a v
--I
to the Second Schedule.

The Construction Manager is to ind mni
personal injury and death, and agai t damag
than the Project (Second Schedule item 3).
The Construction Manager mus
injury or damage to property f

item 17.2).
rah
er ma
in re
the sum e
nclftr
d in
inst daims re
agree
requfired to
the A pendi
-5).
Insurance of the Pro ct wi be taken out

clieri under a joint names policy for
the II rei tatemen valu of
oject and replacement value of
site facilities, us
a ount
tered i the ppendix for professional fees. Where
the Project
mpris wo to exi
s ructui s, cover must include the contents
owned by he Cli
will be only in espect of Specified Perils (Second
Schedule tern 1);
I
:-+
,-+
all risks cover,
ination re
rmina on
Ivency,
uction
e Client
ay
r
f ilure
o exerc
anager's engagement.
the event of the Construction Manager's

i
egree of skill, care and diligence required under
eement (7.2)
rminate the engagement of the Construction Manager at will
The Client
e Constructio
client's ins
ncy; T
riod
The consequences
ay terminate his own engagement in the event of the

o pay amounts properly due; or if work is suspended for
six months (7.4).
of
8 Miscellaneo
Third party rights under the Contracts (Rights of Third Parties) Act 1999 are
excluded 0 -12).
The Agreement is to be construed in accordance with the law of England (8-1).
303
r..
JCT
GCM
The Agreement is not for use under Scots law.

9 Disputes
Article 5 confirms the right of either party to fee

difference or dispute (Article 5).
Nominators for an adjudicator can be agre
made in the Appendix (Tenth Schedule it
The conduct of the adjudication and of
the Tenth Schedule.
Final determination will be in the
Appendix shows that clause 8.3 (a

riate
letion in
Where arbitration applies, app
e arbi
appointors of an arbitrator.
e condu o
are covered in the Eleventh
A footnote to Section 8 of khe Cdknditions is
resolved by the procesf m
304
Apd -/Will
do
ayeTir er
nd
indicate the
fects of the award
tha disputes
may also be
JCT
12
GCM
This contract?
If considering using C/CM 2002 remembe
It is intended for use with large projects
sto e
eparate
contracts with members of the Consu ant Te
respp
r design,
the Construction Manager who will pr fide servic
nstruction
period and the construction perio
the
each
ho will carry
out and complete the Works. Th Client-asses
ugh a Client's
Representative and a Cost Cons Itant may aafsq'ke a
not a lump sum
agreement (although the Trr
the lient will pay the
Construction Manager rei
is anT
anageXer f
The form is not for use in

Scottish version.
The agreement is
one versi n on
and i
d contract in a standard
construction manag ment
f docume
The
nditions apply to both the preconstruction and con tructi
periods,
erati 'e details are entered in a single
Appendix.
phases and partial possession.
sin We for ctorni
i
Theiditi
When comp ting t
ar requ ed relating to preparing the Project

ding profession indemnity insurance; limitation of
liability;
yame
dard Tra e Contracts; reimbursable costs; and
he Co tructi A Man
payments
ring the pre-construction period. The 10
Sche
particul y im o rt
part of the Agreement and should be
the
aol eness entries.
If acting
desig
sign ons ant, reme

er that the Construction Manager may also
lie t in reparin the P ject Brief, make recommendations and review
nd o er dr wings. A c
working relationship with the Consultant Team
s
fl,
the
WLt+f-e functio
specifically states
entative, then remember that this could involve carrying out

o the Client, acting as agent unless the Agreement
fl,
se
rram ement which will appeal only to an experienced client probably

rvice It is relatively low risk for the Construction Manager. The
has the rte erit of being logically structured, clearly laid out, and in taking
`ver a very sophisticated operation.
is
an
O_<
decisi
suran
Cost Plan;
305
12
JCT C/CM
Related matters
Documents
Construction Management Agreement C/CM 2002
Trade Contract TC/C
Tender Document TC/T
Part 1: Invitation to Tender
Part 2: Tender by the Trade Contractor
Warranty TCWa/P&T (warranty to purchaser or to
Warranty TCWa/F (warranty to funder)
Fluctuations Code
Earlier JCT Practice Notes:

Practice Note No 27: Application of CDM Reg
Practice Note No 28: Mediation (199
ions
(1
Series 2 JCT Practice Notes (yellow covers):
Practice
Practice
Practice
Practice
Practice
Practice
Note 1:
Note 2:
Note 3:
Note 4:
Note 5:
Note 6:
Construction Ind st ry Sch

Adjudication (incl d es to of agreements)
Insurance, Terroris Cove
Partnering in des xt of n
binding arter)
ntrac
Deciding/6n the
iate 1 `Form of
Main
eludes m'
rms)
ntract T B ering
I
tion Ma
306
ation
12
JCT TQC
Trade Contract TC/

Background
This is the dedicated contract
d
Contractor (3.6.2 of C/CM Agr èmen
H
Special Trade Contract may be u d in lied by
be required by the Client.
twee
the
ev
em
or
f applicable the Client's
ascri
ain channel for contract

administration, how giver, will be e Co ru ctio
o
r who is to be regarded as
the agent of the Cli nt. Th
no direct c tract
relationship between a Trade
Contractor and the C suit t Team
e
Ita
Team Leader, but consultants
need to have
cable marking
owle
d understanding of the Trade
Contract in or, er to a ucptioj
re late an
ntici ate t degree of support and cooperation
on which t
Cons
pager
ions ay depend.
Representative), then eference
prec
orb
LA=
form and structure. The Agreement, which

to enable compatibility with C/CM, includes
he
st Recital refers to the use of the standard
d copi
of which are to be annexed to the Articles.
nt Team Lea er is given in the Tender TC/T Part 1.
tivel conv
undr han
rd seven A
fl-
is re
O=-
ct
pa s (compared with 19 for the C/CM Agreement),

led. These elude uniquely specified suppliers; performance
spec ed
fluctuations (the detailed provisions of which are published
sal tely). T
ur Schedules relating to a bond in lieu of retention; collateral
ies
ise
re to be on the JCT Trade Contractor Warranty forms);
Performance Bon
a J
document); Parent Company Guarantee (again not a JCT
issue). The
fo wed by Annexes in respect of EDI, Advance Payment Bond,
t pa yment for off-site materials, and Formula Adjustment.
ler 80 p
wl
>
Use
fflt- resultant Team Leader being co-signatory to Interim Certificates,

members of the Consultant Team have no express role under this contract.
Administration is in the hands of the Client or the Construction Manager. Architects
may of course act as the Construction Manager, and nearly all consultants will need
to work in close collaboration with the Construction Manager during the course of
the Works.
0-0
Except for
307
12
J CT
TC/C
Brief synopsis of Conditions

(likely to be of interest to the Consultant Team)
1
Intentions
Trade Contract tender documents may hclu
Specification, bills of quantities, or Schedule of Work.
a 'Priced Document' perhaps together )kith
,Tra'de
e& C
Schedule of Rates on which the Contra
,,
Arti s,. Conditi

othirlq sall over
The Trade Contract documents

completed Schedules. In the event
printed text (1.1 1).
Further necessary drawing

ain
the- ra
Contr
Drawings, details etc. must b retu r ed to the Co.
ilt' information required (1.22).
Performance Specified
2
Time
A commencem
t date
eriod are
ust work
ite will b
accor
uctio"ar ager llnay iss
Relevant Event (2.3).
instrVctions to postpone any work (2.1).

Trade Contractor to submit
may
otation fob acc
with the progress of the Project (2.1)

ent of delay by
evise
The Con
ce
written
he work (2.6).
ilure(by
expense to e
entered in t e App ndi
orks
complete to time may result in payment of direct

11). There will be a limit to financial liability if a
1
is
2).
certified by the Construction Manager (2.13).
Defects liability runs from ractical completion to the end of the Project Defects
Liability Period, w
ally runs for six months after Interim Project Completion
is certified (2.16).
Phased completion (2.20) and partial possession by the Client are possible (2.21).
308
12
JCT TGC
3
Control
The Trade Contractor must keep
person-
w
b;ding
Instructions are issued by the ConstructKn
,t
The Construction Manager

information (3.6).
pro
Access
person
is
site
yo
resp risible
to the Works for the Clie

is
provided for. Presuma y this co
The Construction Manage

Contractor may wish to su
disruption factors, and nee
issue
Var
uotdt to cov
resob-r-cbs43.19
4 Money
Payment by the clie t may be qrn the
sis of
sum) or the Ascerta
aMade Contra
Where the Tra
(Ar le
hen valuation of variations can
ractor's rice tatement, or Alternative B-valuation
made by th onstr ction anag
sin the v luation rules (4.4). Where Article 2.2
rk
applies, th valuati
mprised in the orks is by remeasurement based on
of
rates or
ices f
ured or
a Sched le of daywork prices (4.7).
in ract
Tr
be by Alterna Ave
m appli
e Co
actor may
:22).
b,
reimbursement of direct loss and expense due
entitl
make writte application to the Construction Manager for

the Appendix, or at agreed stages. Whether or
ervals
tered
st ction Manager, not later than 14 days after the
de the
t issue an Interim Payment Certificate signed jointly by the
der and the Construction Manager (4-11).
r
rst
9ltant
ient apply, and final date for payment is 14 days from the
erti 'cate. Failure to pay may result in payment of 5 per cent
the right of the Trade Contractor to suspend work (4 11).
e, a
the
ai n
e
of issue of
interest ovex base r
be at 5 per cent, and the Client acts in fiduciary as trustee but

invest. Alternatively, if so stated in the Appendix, a Trade
ay be used in lieu of retention (4.15).
rmal
Bond
t.
+-C
bligation
The Trade Contractor is to submit documents to the Construction Manager not later
than three months after practical completion of the Works, in order that there can be
final adjustments or ascertainment of the Final Contract Sum (4.17 and 4.18).
Subject to conditions stated in the Trade Contract, the client
is
to issue a Final Project

309
12
JCT TGC
yes b the cK-,n- rapp-I y,
Completion Certificate and a Final Statement. The

and the final date for payment is 28 days from the d
of the
al Statement
(419).
5
The Trade Contractor is to comply with statut
not already allowed for in the Trade Contract
be added to the Contract Sum.
`ry
requi
cu ments.
The Construction Manager will issue hstruction
statutory requirements, or emergenc
ontr
The Trade Contractor is to provide

concerning the Health and Safety
information for the Health and Safety
with ne
nnir`ta'S
ervis
The Trade Contractor indem ifies t e cfient in respe of clai

arising due to personal
injury or death (except whe due o the clier
for whom the client is
responsible), and da
orkZ provided that this is due
plyperty,Rther th
to the negligence of e Tra Co tractor -1 to V3). e Trade Contractor must take
ntered in the Appendix. This is the
out insurance cov rnotI ss
e figur
contractual limit not ne essa
of liability ( 4).
iect anti of th
M), and
name
covered under Client and Construction

ensure that Trade Contractors are to
icies an a waiver of subrogation rights (6.9).
t is
ploymei
urination nay
ult for
seq'ue+rc'es
de Contras-t
Client on the insolvency of the Trade Contractor, or in the

ed (7.2).
of dete
Of the Trade Contractor.
the Client are set out in the contract (7.6).
in
ine his own employment if the Client defaults or
may
10).
determina on by the Trade Contractor are set out in detail (7-11 ).

Either party may deterntKe the employment of the Trade Contractor where there is
no default but one or more of listed events occur (7.13) and the consequences of such
determination are set out (7.14 to 7.18).
The Client, except if he becomes insolvent, is entitled at any time to discontinue the
Project and to require the Trade Contractor to cease work (7.19).
310
12
JCT TGC
The contract provisions still leave other right
8 Miscellaneous
The contract
is
to be construed in accor,
There are supplemental provisions fo
td
The provision for uniquely specified supplier refe'-s to

Contract documents (8.1).
Performance specified work re uires
Third party rights under theAoq

(1.32).
each
pplier' namec,Vin the Trade
(Rig
"I).
1999 are ex cluded
9 Disputes
Article 6 confirms We right

difference or dispu
Nominators for an djudi

made in the A
nd
The conduc of
Final det minati n
on an A
to seek adibdication in the event of
itor
can
beac
effe
wiration
ree
nd Oown by appropriate deletions
of
jud icator's decision are covered (9A).
(9B) o by legal proceedings (9C) depending
This
r use
used
'
wit
the/atCT Client and Construction Manager Agreement

document. The Trade Contract is not for use
tter for the Client, but the necessary documents for tendering
nt Team, and issued by the Construction Manager on the
tendering will involve the TC/T Invitation and Tender
to-Trade Contract (TC/C) unamended.
The Trad
act C nditions are a substantial 118 pages long, and Section headed.
The clie t may acce a Special Trade Contract or amendments to TC/C, but otherwise
there is no
ut to use TC/C with the C/CM Agreement.
311
J CT
TC/C
Standard Form of Trade Contract TC/C 2002 Edition

Tender Document TC/T
Part 1: Invitation to Tender
Part 2: Tender by Trade Contractor
Warranty TCWa/P&T (warranty to purchaser or tenant)
Warranty TCWa/F (warranty to funder)
Fluctuations clauses for use with Trade Contract
Earlier JCT Practice Notes:

Practice Note No 27: Application of CDM
Practice Note No 28: Mediation (1995)
Series 2 JCT Practice Notes (yellow co
Practice
Practice
Practice
Practice
312
Note 1: Construction Indu

Note 2: Adjudication (incl
Note 3: Insurance, Terrori
Note 6: Main Contract Ten
Partnering
arrangements
Partnering agreements
Framework Agreement (F
Framework Agreement No
ndi
1CT Partnering Charter (N
1CT
((t
1CT
The Institution of Civil Engine

NEC3 Partnering Op o-r
rip
The Association of a onsult aA B rchitects

ACA Standard For of Cbntract for Proae
'Partnering is neit ra rtic%
culture and the ay in w Itch
ng PPC2000
proc ement ap oach, or is if a particular type of contract; it is about

is view and m age the project' (KT Note on Partnering).
tH ac articip
p to avoid adversarial conflict was the subject of a number of

Partnering as, n ethos/which
endorsed in b th the Latham and Egan Reports.
studies an publicati ns in e 19 s, a
form o project pa
pplicable to a single project, or strategic
Arrangemen may to
partneringhic ay embrace a umber projects over time.
orkin togeth to achieve the client's objectives for a project by

Proje Team Pa
enn is abo u
roach
hich effis ent coordinated working is measured against
ad
ting a manage nt
p rforrna n e i
ca tors nd to ets. There mu first be some formalised expression of agreement
his is ually achj ved by using either a free-standing non-binding charter
ween t
art ers, an
tf
single project or strategic partnering, perhaps through the
le p r
; a bin, ing agreem
fo a
dard contract; or by using a form of contract specially
r ing of additio al clauses in a s
dra
ncl
for
`s
rtnering.
Iti party
Ltd ICE, a1m1 ACA h e each taken different approaches to partnering. The GC/Works suite
k
reemen pr use with consultants' appointments only (GC /Works/5 General
a frame'
Conditions for the A
ointment
f Consultants:
313
Framework Agreement (1999)).
314
i6
Partnering arrangements: partnering agreements
13
JCT FA and FAIN
Framework A
Framework
Binding (FNN)
JCT
JCT
Background
the JCT published
a No
address the increased inter
extremely simple and onl

supplement any of t e main
"s
first publication to
was a model charter,

e on a single project to
in p
fl,
In 2001
ages
dard
pemnts, in addition to the model

ew Fram
ith a guide on their use. These
t
charter, one bindin and ne non- bindi
e model charter. They take the
phis cated do ume s
are longer and
tha they are intended for use alongside
a
ne
ode harter
same approa
he m
el ch
er as b en republished in a 2005 edition,
another co tract.
bsite. Together, these offer flexible options for those
downloa ble fr
i-Rioles in their contractual arrangements.
wishing
intro
artne
In 2005 the JCT pu lished
non-bindiri
the
ice
fl,
is a formal document by which the Client

on
vide gree to wor together in a collaborative and open manner,
It incl des provisions regarding framework objectives,
achie ag ed o jectiv
isi n making, collaborative working, the supply chain,
isatio
stru c t re and d
in
f infor ation, communication, confidentiality, risk assessment and
tion,
alth a d safety, sustainable development, value engineering, change
>, e
warning and team approach to problem solving, and
ica-tors.
ormance
Pr'
fl,
-version a Tittle longer at 18 pages, and has additional provisions relating

icable la (8) and dispute resolution (23-28), and has a facility for executing
merrtfunde hand or as a deed. The clause covering the legal status of the
t is different, but otherwise all clauses are identically worded.
k agreem
The bindia
Use
The Framework Agreements are intended to be used with either one or several
underlying contracts, and are entered into for a term set out in the framework
particulars at the back of the forms. They can be used alongside any other JCT
contract, and standard forms produced by other publishing bodies. They are bi-lateral
315
13
and
JCT FA
FA/N
agreements between the Employer and the Service ovider bets

client and contractor, or contractor and sub-contr tor). T, sew Lce
endeavour to see that the members of its supply chain
collaborative working.
f&
vider
iples
The Framework Agreements are intended to
pple
the underlying contracts. In the case of confli the unde
ontract+èvails
The Agreements state that 'the Framewor
ny way ha
en shal
legal or contractual effect or bearing apon he
r
tatio
on,
Th
enforceability of any of the Underlyin Contract
v
addition states that neither party sh
t
eo
the Framework Agreement.
.
merle
,-+
The Latham Report called for contract onditi

h
parties to deal fairly, and that
presumption to achieve 'w, -win'
blame. Unlike some standar forms,,
to act with mutual coopera ion an deal fairly, altho
But the climate is ch

improved, more eff} ient'
management of th supply, rocess:
creasin
teg ra t
inbia sp
of to
rath
ific duty for all

k with a general
than apportion
for parties
ay well be implied.
ressly call
placed on achieving
m working through better
Features (claus
Underlying contracts;
in
framewor
art and end gate,

In the indin
t (n ot,t
arbitrator
erformance indicators are to be set out

the name of the adjudicator and
a o provision for mediation).
versa
ere is
o..
'greater,
formance nd icat
identified in the Particulars, and the Guide usefully

rs published by the DTI Best Practice Programme.
r
he
othevvft
an
angements is emphasised
each party is to
rganisation and management diagram of its internal
'vi
arency of manag
Collaborative working (10), sl}aring of information and know-how (12) are all included.
The Service Provider is-Mendeavour to ensure members of its supply chain 'embrace
and adhere to' the principles of collaborative working set out in the Agreement, and
where practicable, engage them on terms reflecting those principles (11).
The Service Provider must consult the supply chain on essential aspects of the project,
e.g. design development and early warning (11).
316
JCT FA
13
and FA/N
The parties must endeavour to agree a com
g c tract,
Identification of risks (15) prior to enterin into a y un er
e service
provider must undertake a risk analysis with th o er pr ect pa 'cipan s. The
employer then prepares a risk
or matrix, t e perica
eviewed
and updated.
Value engineering (18) service proide nc rage to

gest saving easures, and
rov er's hare of/{he benefits if
Employer and service provider t
oti e t
implemented (there is no prior
,-r
pir
The parties are to endeavour tqa jree

(19).
top raptly
(2Msustain t a
Both parties are required
time quality cost
cosec. o
Health and safety

Agreements, with f
am
tea
y 0%
oTeGuide.
ap
ility E an
ation inc ed
es b
*re implementation
atter which may affect

blem solving (21).
ortant features of the

i
Related matt
Documents
317
X12
Partnering Optio
N EC3
Background
The Third Edition Engineering and
Employer and the Contractor, to act as st ed
trust and cooperation. This main con Tact also
matters likely to result in increased pri
ed
of the Works
tr
req
nt rdc t an
plor
ts
an
ire
in use.
0)-O
0-O
This partnering option, which touch

others
was published as a First Edition
1. It
itle
except the Adjudicator's Co tract. As
fie im
document, but is an option Which m
e incorpb.
any Team Members involved with Project, whether
is
consultants or sub-consultant If th Option
these contracts will ha
al re onsibili
sit
the
acting parties,
y NEC contract
sed
es,
is n
t afree-standing
o th e NEC contracts for

Con ctor, sub-contractors,
D
or ed, then the parties to
I
ommon.
The Option can b used f r sin le pi

rtnering
for strategic partnering over
several projects. It
of co e only e used Wii
contracts,
and does not result
C
in a multi-pa
itra
t
s.
fl,
ibutio
icators,
Cont,Yc Data,
me of which will not change (e.g.
ring formation n agreed methods of operating), and
hedu
f Cor Group Members, which might change
le of Partners will include identity and
e Wor s. The Sc
artners j oining and leaving dates, and details of Key Performance
gets, Neasure ent arrangements and any incentive payments. The
emb s will give identity of partners, and joining and
Both Sch
obably need revising from time to time.
b swill
short clauses set out under four headings, and the

dance notes on these clauses.
Use
is incorporàte6into the contracts of the partners by entering 'X12' in the
first line of Contract Data Part One: Data provided by the Employer and by
completing the 'Optional Statements' Option X12 entry, including identifying the
document in which the Partnering Information has been set out. The information for
this entry is suggested in the text of the NEC Partnering Option, and covers details of
_.1
The Option
318
13
X12
the Client, the Client's Objective, and Partner
Synopsis of clauses
The Option does not create legal partneRh
Each partner collaborates to achieve
of every other partner.

Each partner nominates a repres
4h 'Sulhoril
The Client is a partner.
mafion, aid-givi
Partners are to cooperate o e

matters likely to affect of er par
opinion and if so it must be ken fulTy;
A Core Group is sele d by t

The Core Group is le by the Clie
in the Option or th contr
le
forma 'on
is d
senta
for pr
nerin
ay give
ann'tkoNectiv
act on behalf of partners.

on not specifically defined
arin
perati
ed
as>4a conta
under the
gethe. 'as stNted, i-nhe Partnering Information in a spirit of

use com on in r
tion systems as set out in that Information.
work
amo
statedi the Schedule of Partners if the target stated
icator is im roved upon or achieved.
319
13
X12
This contract?
If considering using Option X12 remember that:
for use with any NEC contrac

it brings more than the two main contractin
but it does not create a multi-party contract.
It is intended only
xc e9
The responsibilities for Team Members ingbdeed u
There will be additional Contract Data,

The Option is a neat way of br,
partnering clauses set out the action
Documents
NEC3 Partnering Option: Optkon X1
First Edition (June 2001)
References
320
wide t
or's C B
partn B ing rej6 ionstip,
12
ill be in
addition
ted
Related matters
Construction Industry ouncil,
ter
tion
ioht ave.
to the contractual responsibilities whic
ntit)
I the Ndjudic
mt
M Partnering
ps, and the
13
PPC2000
r_+
The Association
of Consultant Arc
ACA Standard For

Project Partnerin
Background
ctht`k
,=+
_-r.
fl,
r+.
ventional
lementary, but
Partnering agreements and
there are essential difference
tween t fun
n o a ontr t and a partnering
al oblig
trictly between the
arrangement. The former
cont
ertain which, in the event of
contracting parties, and ide
ing &,th
tract and adherence to
dispute, can be tested in the co
Th
latter seeks to establish
sound administrati v proce-c es re es
key
d o putting the project first,
collaborative workin between
ers c
management tool. Obviously
invokes trust and f
ess, an?+operates a
nciples to contract Conditions.
there can be difficul 1sint ding to mares
I
Flying in the
Association
Cons
m, PPC2000 was produced by the

and
afted by David Mosey of Trowers &
attempt to bri g together partnering arrangements,
ention6 wis
ace
'ant rchite
fl,
UO=
Hamlins, S elicitors. his

br
and
consulta appoi tme t ter
buildin ontract into one document covering
cess o
eliveri g the
t is the first standard form of contract for
the whole
Ittf- arty building contract, and it is an architectproje
, it is th
first
ime
a partnering agreement and a building
led
a mergi
c
e par nering rocess.
ntial
it
men , with a closely interlocking set of terms, which

d
mediately
y to understand. Realistically the ACA advises that
ith the benefit of experienced legal and or other professional
advi
on its
station.
it John Egan in September 2000, it has received the

busing Forum, the Movement for Innovation, the Local
Giovernmeti &sk Fd ce, and the Construction Best Practice Programme. It has also
y th Construction Industry Council and the Housing Corporation.
LA.
it was
recommendation
Between the Tssy covers, there are 54 pages covering the Project Partnering
Agreement, the Partnering Terms, and Appendices.
The Partnering Agreement is signed or most likely executed as a deed, by the Client,
the Constructor, Client's Representative and each consultant or specialist member of
the Partnering Team. The Agreement will carry details of the Project, the site,
321
PPC2000
m.composition of the Partnering Team, Partnering
composition. The Design Team and Lead Designer ar
to the design development process as described i
noted. Details are entered on other matters usually
Data with conventional contracts, but here als,
and insurance cover to be carried out by eac
The Partnering Terms are set out under 2 hea%ing
but some terminology is peculiar to th
there is a full set of definitions. There e five
be summarised as follows:
ico
Appendix
1:
CIM
Ters
8 of/The
Appe dix or
matters ch
in
of
he
Aes,
Partn
ng
ea
tract
ti
guy
y b
con
Definitions
Appendix 2: Form of Joining Agreemeri With a

ime, a
will be changes to the Partner
e alre
in new joining parties who ill be bou
inevitably there
hanism for bringing
ed obligations)
Appendix 3:
Part 1. Form
of
Pre-Pimsess
preliminary or ena ing

Part 2. Form of C mmen
that the Projectis read
Ag ement ( is is'
e an agreement to cover
to be ndertak n by he Constructor)
nfir ation by the Partnering Team
reem
commencem t of work on site)
Appendix 4:
Part 1. Ins rant
Part 2. T ird Part
Part 3.
Part 4.
sura
iect an
nsura
rofes
Public Lia
art 1.Co ciliat

Part
Rart
3-4hitration
(i
cro
aditional boundaries. It is a combination of project
0 is uni
managemertr prin iples; lega conditions and procedural rules. It is logically structured,
with commenda le `crdss-ref encing. It holds out the prospect of an integrated team
mless d very of the Project, but it calls for a high degree of
approach and
of all concerned.
commitment on the
PCC2
r_+
Use
Reports indicate that PCC2000 has been successfully used for both private and public
sector projects ranging in value from multi-million pounds down to f600,000.
322
13
PPC2000
Partnering depends on an effective managem ht stru ure, a ntive dmi
do
and good communications. The Partnerin
earn
to
the
t will be
beneficial to set it up as soon as possible. CC200 acc pts t %thomp os Lion is
likely to change during the progress of th
o t. Ide y the r
em
p9 rtu n ity
to bring consultants, key specialists, ons
and so e su con ac ors and
suppliers together at pre-construction ages. Th art ring
m
be
liabilities
are proportional to their responsibilities,
am ince ve Nvments.
,
shtract
A Core Group is to be established ti the rt

to meet regularly to review an timul
s rea
Members must comply with
as
he
ss
mb%
am
rin
e,
Grou
The Client's Representative as con

le au
t He
she may call, organise,
r
an
attend and minute meetings
a k<erin Team, and may issue
instructions to the Con
powe edi b he P ne ng Terms. He or she will
also be responsible
r organisi g pa ne ring
or
op for the Partnering Team.
However, restrictions can be,
don his her a onn and these are to be entered
in the Project Partne 'ng A reement.
.
iser*ill bed person

nthusiasm and a knowledge of
partnering, a
pref e abl Ireac
ck record. He or she has a very wide
remit whic inclu s retie
g
r consistency with the Partnering
Documen ; prep
n
g Charter;
eparing any of the agreements listed
process, partnering relationships, and
in Appen N,3;
the p
partneri
acts; atten Fng rerfrl
meetings of the Core Group and Partnering
Tea
ms and resolution of disputes. A tall order!
Iving
The Partnering
arelisted
being:
tni
mmen
nen
Consultant's Ser
th
sa s;
I
any Joini
emei
the Price ramework;
the Key
Indicators;
any other Partnering Documents.
PerEe
Unless there is anything to the contrary, this is the hierarchy

prevail in the event of discrepancy or dispute.
of documents which
323
PPC2000
The ACA advises that at the time of signing the Pro
team should have agreed the following:
erin
Client's Project Brief and the Constructor's Projec

an initial Price Framework;
provisional Key Performance Indicators;
Consultant's Services Schedules and paymen erms for
With so many separate arrangements, t

e
rann
then
a lump sum contract. The Client is respo 'sible fob-r-- en
amounts properly due under the Cons Cant Pavme rRd fo
Constructor of agreed amounts pro
in r
ect o Pre-Fo6 sessi6
activities, and an Agreed Maxi
Framework and other relevant Part
by refe
Icula
ring D
ts.
Synopsis of clauses
is a uni
comparisons the same he dings are used as the
contract forms earlier in thi ook
(Despite the fact that thi
Intentions
Roles, expertise ark
Services Schedu
trust, fairness an
descry in the Project Brief and
respo 'sibiliti
erin
(Pa
utua
ich appl
Partnering
Client and
stages t
Also in
Consultant's
t) and Tea
Members work in a spirit of
for th
t of the Project (1.3).
me ber of the Partnering Team including
t out UQOr six h
dings in clause 4.1 and cover design

fl,
fl,
the Project vyi thin the agreed time, price and quality.
hasi novation, improved efficiency, costio of waste, and measurable continuous
Performance
o Key
Indicator targets (4.1).
fl,
effectivene
bjectives
rtner
em r o t,We
iect and for the mut
Parr
ed by Partnering Targets under 10 headings, and each

fl,
im
fl,
ndertakes to pursue these for the benefit of the

of the Team Members (4.2).
am Members shall act reasonably and without delay (1.7).
Do-c"Wments
govern the relationships between Partnering Team
The Partnering Documents comprise the Partnering Agreement, Partnering Terms,

together with any of the documents listed in clause 2.2.
Priority of documents in the event of discrepancy

clause 2.6.
324
is in
descending order as listed in
13
PPC2000
Partnering Team Members work to achieve tr
information, and integrate activities as a co
pera
and
te(3.1
Communications between Team

otherwise agreed (3.2).
'
e e
iting
Team Members are to establish a

Partnering Agreement (3.3).
Decisions of the Core Group are

comply with authorised decisio
y con
(3.6).
Partnering Team Members o

others as soon as he or sh
arly v
ing systeNaid e
ttersrsely a
Meetings of the Partnerin

are
scheduled or request
no-K ally b
Only matters on the agenda are dealt 0, an
nt's Representative as
Client's Representative.
are by consensus (3.8).
e
mber
are to devel
access to co
itiat
m Members s
tion by
ive is
keep-records as required by the Partnering Documents

of the Partnering Team (3-11).
t"ct in ac ordance with the Partnering Terms and other
acilitate
ershi
ct Paztneri
TYre'
Client's Repr
Group an
ents for secondments, office

and databases etc. as may
er joi t initiatives which might benefit the

sidered by t e Core Group (24.1).
flea m
such
ctlhg the project (3-7).
integrated design, supply, and construction
tative is authorised to represent the client in all matters, except

re Group, and always subject to any restrictions stated in the
ent (5.2).
ay issue empowered instructions to the Constructor (5.3).
esen tive is to call, organise, attend and minute meeti ngs of the Core
art eringTeam Members as required or scheduled (5.1).
The Clie 's Represe ative organises workshops for the Partnering Team Members,
and organise
monitors contributions of Partnering Team Members to value
value
management
engineering,
and risk management (5.1).
The Partnering Adviser as named in the Project Partnering Agreement may be replaced
at any time by a decision of the Core Group (5.7).
The Partnering Team Members may seek the advice and support of the Partnering
325
13
PPC2000
Adviser on a range of matters, including those liste
2 Time
he actiJ
The Partnering Timetable is a Partnering Docurperi

the Partnering Team Members during the pr co
The Project Timetable covers the period of co
truction
Agreement.
Members of the Partnering Team are t procee eg'ularl
and by the dates in the Partnering Tim able (Q-1).
The Project Timetable is to be ann
and entries will show the date o
osses
Constructor will submit the propose

review by the Core Group a
timeta
the Cli
Where the Project is to be omple ecl

to each Section and the Pr
y Sectio
of the site
programming may ke
interrupted posses on int
Comme
Agreement,
corn etion
(6.2). The
r
presentative for
dater
Con ructor rN
Possession
.s
adaccou
sentati
ins
roject
nyrrang
eleration,
imetable
deavour
ppro
to
r asons list d
i
clud nq
tension f the date for completion may be given for any one of 16
ue to matters beyond the Constructor's control and
ineu
rn
%ral
uses
8`3).
Th Constructor must no
}fent's Representative as soon as he becomes aware
of an f the ev
ted, nd upply appropriate evidence and detailed proposals
for overcoming tJae ev is o minimising their impact (18`4).
The Client's Representative /rhust respond within 20 working days of the notification
able extension of time. The Client or the Constructor has
and make a fair a
a
20 working days from the date of the Client's Representative's notice to dispute the
award 0 8`4).
An extension of time which affects consultants, and is not caused by their default, will
bring an equivalent extension of time for performance of Consultant's Services (18`7).
326
13
PPC2000
ve wor
ved. The Cli
The Constructor will give the Client's Represe

he considers that Project Completion has b
is
invited to inspect and test as appropriat

.
The Client's Representative, together

h
Members, shall inspect and test, and ithin t,
of this, the Client's Representative sha ssue
either confirming that Project Com tion
the Project which the Construct mus
i
`late
S
foll
`.-
Following completion of the Proj

r m'u rec fN nydefects, excessive
the Canstr
shrinkages or other faults in
olec" hicFi are\d
to materials, goods,
ng Documents. The
equipment or workmanshi not ir1 cco ance
ntere
Proj
Par_tneri g Agreement (21.4).
Defects Liability Period is to
a"'
ifiative _bra
efects hav
None of the ri
liga
tt
sub-contract
(25.2).
can
ctifie
PartlyerinAgreement may be assigned or

onsen of al the other Partnering Team Members
liqlns of th
e pno
0-0
Specialist and P ferr d Spi ialists,Tay be

resp Bible f, r the,Der
Construct
y the Cli
nstruc,V are gj en by the Client's Representative, and

ds of com unication for the Partnering Team (3.2).
in
ire
for inspection or testing of any part of the
tion at no cost to the Client of any designs, works, services,
uipment that are defective or otherwise not in accordance with
5(5-3).
mater,
Constructor
working d y f
of
iss
V e
ections to an instruction for specific reasons, within two

instruction (5.4).
.>_
mus promptly carry out empowered instructions issued by the

presentativ If it fails to do so after five working days of a further notice
ant, th lient may pay another party to carry out the instruction and the
by the Constructor (5.5).
>o+
--0
Any Partnering Team Member may propose a Change to the Client, and proposed
Changes shall be considered by the Client and the Client's Representative, and if
approved will be notified by the Client to the Constructor (17.1).
327
13
PPC2000
The Constructor within 10 working days will then sub
Change Submission setting out the likely effects in
e Client a Comtr
The Constructor and specialists are to

equipment of the types and standards s
Q!v
ent
ct
s
aNthe s
tO
the`Cl-t w
eceives
om 0 e sit& rrru t be
fl,
stru
men ement A
ana
reserv
nen
yice Schedules (16.3).

l/,
Partnering Team Members 're to imple

uality
in the Project Brief, Project Propo
nd Consu
From the date of the Co
Constructor is respon
site, unless otherwi
th6-i
sup
an
The Constructor is responsible for sec pity of the
Ownership of materials, goods a

incorporated into the Project, or
Such unfixed materials must not be
and clearly marked as owned
U57
missi
rs(ubiett to
`3.
Within five working days from the Constructor

Representative will either instruct the Constru
of any aspects until later) or withdraw the C
completion date, the
all ris
4 Money
The Constructor
Framework (P
are as ente
pay thes
The Ag
and other
Co
en
rease
If the
Performance Ind
each consulta
consequential ad
obepladin
ac drdance 01i
e Partnering Terms and the Price
nering Age emen
e amounts for pre-possession activities
f Pre- sse ion Ad ement and the Client undertakes to
will b evelo ed by reference to the Price Framework

uments
' is to be as entered in the Form of
I. This is the sum payable by the Client to the Constructor,
ses in accordance with the Partnering Terms.
link payment to performance targets stated in the Key

when the level of achievement of the Constructor or
rable, the Client's Representative will determine the
reduced payment (13.5).
Where an extension of the completion date is awarded for certain events, the
Constructor shall be entitled to additional payment in respect of site overheads and
unavoidable additional work or expenditure (18.5 and 18.6).
328
13
PPC200O
Applications for payment by the constructor
Client at the intervals stated in the Project Bri
Payment can also be related to payment
in the Price Framework. Applications mu
Project Brief, and such further infoy
reasonably require (20-2).
ultar
ach co
hee
.
ac
fea
ity sc
dul
ied b detail
e Clie 's Red
The Client's Representative will iss

with
ati
Constructor's application, specif, ing the m unt
and the basis of calculation all
accor anc
t
ousi
and Regeneration Act 1996.
to fo
me
lien
by
from date of issue of valua
rkin
s from r
eceipt of the
to be made
ts, Construction
d
15 working days
of VAT invoice from
the Constructor whichever

Applications for paym
by the Client, speci ing the p opos
calculation all in acc rdanc *44 the Hou
Act 1996. Final date for p ment by the
r 10
orking a
to r
to a notice issued
made, and the basis of
struction and Regeneration
orking days from the date of
eipt of VAT invoice from the
('9,4).
ction 6v-the Clie t must be made not later than two
for payme (20.6).
hholdi
nt by`fhe Clie,
Agreem
pend
t will
result in interest at the percentage specified in the

may give rise to a right by a consultant or
)a
rmanc until payment is received in full (20-17).
pllowing
oject Completion (or as stated in the Price

enta; ive shall issue to the Client and the Constructor
of the Agreed Maximum Price due, and the Client
seek to agree taking into account any adjustments, and subject
retention in the Price Framework (2014).
Fr
amoun
of issue of that account the Client's Representative shall

if not agreed the amount that the Client's
cons ers fair and reasonable. Final payment is due within 15
fr m d to of issue of the valuation (2014).
in 20 days
issue a valuation
1tive
rese
working
fd
ted amount, or
Within 211 orking d s following notice by the Client's Representative confirming that
the Construc
fulfilled all obligations in respect of rectifying defects, the Client's
Representative shall issue to the Client and the Constructor a Final Account. When
agreed this will be conclusive evidence as to the balance of the Agreed Maximum Price
due, and the Client's Representative shall then issue a Final Account valuation (20.15).
329
13
PPC2OO0
work'
If agreement on the Final Account is not reached w,

date of issue either the Client or the Constructor m
dispute as set out in clause 27 (2016).
5
medies fo
day r
esoly
the
v()
Partnering Team Members must comply w

force in the country stated in the Partnering
in the country in which the site is loca
requirements (25.4).
all la
ree Itent tt.
II
ntra
The Constructor will act as Princioa

Regulations, and the Planning Su
Partnering Agreement (7.1)
A be
for
fft
st
he )aL rmoses
erson aamed
All Partnering Team Members

fulfi eir ob
including development of t e Health pd
fety P
stated, this will also of cou se relate to the Hea
and
Each Partnering Team Me
all use reaso
individuals for whom

Member will be liab to
death caused by e ployee,
ers
eir
care to ensure that all

ring Contract, and each
r any loss, damage, injury or
ill an
to t
1
contW7-4).
6 Insurance
responsibilit
Agreeme
O'^
Where s
insuran
default of
the sit
including structures on it, will be the

t as shown in the Commencement
of
a
with waivers of subrogation (19.1).
ment Agre ment, the Constructor is to take out
other than the Project, not caused by
stru cto or
vii
fl,
Insurance of the
thi
t
e insure
h Nawl'ering Tea
nce for the amou
are those set out in Appendix 4 Part 1.
fl-
e risks-to
to take out and maintain third party liability

the Project Partnering Agreement and in
d in
Part 2 (19.3).
Professional ind mnay or pr duct liability insurance is to be taken out by Partnering

Team Member
amed in 'the Project Partnering Agreement in accordance with
Appendix 4 Part 3
330
vin
+`'
Further insurance as required by entries in the Commencement Agreement can

include environmental risk insurance (19.5), latent defects insurance (19.6), and whole
project insurance (19.7).
13
PPC2000
O,-+
The Client may terminate the appointment òf all P rtne ng

am embers
longer wishes to proceed with the Project e er bec
of fai ire to a ieve
conditions to a start on site as set ou
r
clabs 14.1 or f r any
foreseeable by the client prior to
to of -Ne Com enc e n t
Procedures for giving notice and the
nsequen
arbset out26-1
:!'
au
The Client (or Constructor as

Partnering Team Member for aterial b?
The appointment of a Partn
the`rtruct
point
or breaches of the P
A Partnering Team
specified defaults or
giving notice a
If after the
Project du
Represen
edu
are set o
Mem
susp
ntial act
ns
r for specified defaults

giving notice and the
26.4).
`r
rm
appointment in the event of

nts by the Client. Procedures for
t in the Partnering Terms (26.5).
es impos ible to proceed with or complete the

the Constru for must give notice to the Client's
must b convened to consider the position and
ions.
an ac ptabl solution cannot be found then the Client may
on the R oject
ssessinn
to of
to sp cifie
tive. A
possible
Partri
nfay termina
of the Par
each
nseq
orb
be uiII
pt oZ`nsolvent
The Client may terminate the
consequential actio
he ap
tPartn wing
it be
s,
is
ointme-M of any,
inns of that
ass
ne
ctive ro
in
Members are to use reasonable skill and care appropriate to their

e and responsibilities, and owe to each other such duty of care
tnering Agreement (22.1).
ber is to provide or obtain collateral warranties as listed
ng Agreement (22.2).
fl,
Each Partnering
-Q-the Prorect-Partn
((DD
HII
btain specialist warranties in favour of the Client (22.3).

,..
The Agree
nt ca
Iso include for a design obligation by the Constructor, and in this
event the obligation under clause 22.1 can be amended in the Project Partnering
Agreement whereby the Constructor accepts full responsibility to the Client for the
design, supply, construction and completion of the Project including the selection and
standards of all materials, goods, equipment and workmanship, and including any
design undertaken before or after the date of the Commencement Agreement by any
331
13
PPC2000
other Partnering Team Member. The Constructor may
the completed Project shall be fit for its intended p,
Section 8 in the Partnering Terms otherwise state
hands of the Lead Designer and other Design T
design with the object of achieving best valu
At pre-commencement stages the Lead Design

and Core Group, and following Client ap `roval, develobed de
Client and Core Group with detail suffi lent for
quirokto waaan
mentli
to de
to
-3).
Designer
Gro
con tatI
the
Following Client approval, and aft
e b s brings the
ther
n Team
applies for full planning permission an
ecia ' s, evelop ent of the Price
design to the level necessary for th selecti
atory approvals
do
Framework, and satisfying of plannin condi
(&3).
After commencement all fu her dean lwork is epare

com
and other Partnering Team Mem
or approva
periods stated in the Project imet ble (8-6).e'
Each Partnering Tea
M& ?er
other documents t at he p
Partnering Team
Memb
completion of t
Proje
Nothing in t
or rights to,
tains ' tellect al pry perty rights in all designs and

rants to the Client and other
r the
, but
copy and se such designs relating to
epares
reem fht
rtnering
less
Nothing
Member
ressK state
Partnering Terms confers any benefits

otherwise (22.4).
nts creates
rted into thecontract must be identified as special terms

must be set out in or attached to the Project Partnering
ent Agreement (28).
to s to k
Any
b reference o thi Ii
gree
r the Co
I
vent of
iffere
givp__noti e
The Partnering
shown in the Co
Adviser (27.2).
to
ce
or dispute with other Partnering Team Members,
e other Members and the Client's Representative (27.1).

s involved are to apply the Problem-Solving Hierarchy
ent Agreement, guided as necessary by the Partnering
Where use of the Hierarchy fails to provide an acceptable solution within a stated
timetable, the Client's Representative will convene a meeting of the Core Group in an
attempt to reach an agreed solution (27.3).
332
13
PPC2000
chose
refe
the
rsMedia
If the dispute is still not resolved, the part

conciliation as described in Appendix 5 Par,
alternative dispute resolution (27.4). The
ny o
m,be`raame
er
m the
Partnering Agreement.
f their
The parties involved may exercise the,
(27.5) in accordance with Appendix

Project Partnering Agreement.
adi
eren
cator
If the difference or dispute is no
arties may refer

is covered in
be named in the
the matter either to arbitration

Appendix 5 Part 3. The no
Project Partnering Agreem
ation
This contract?
If considering using
PC.
It is the only standar cc
i0 re
embe the
act specificall
The conditions
lai
o ed and
sy
a single contr ct bri
in
II im
tant r1
inevitably t s calls r an op
an
Contract dmini
demanding,
If
tultima
res
in
rati
an
prod
as appArent
artneri
arr
d initi
t of an archi ct-
roject partnering.
ea"owever attractive the

together in
notion of
binding relationship is,
i-nent under it seem likely to prove

een used in practice with successful results.
is is desired, then this form, which

competitors as yet.
is
the
ct for Project Partnering PPC2000

ontract for Project Partnering SPC2000
andard Fo
References
lanai
333
W
W
334
Taking into account

There will be times when operation
of contract. For example, some
the need for some additional sp
contract works proceed. This
contracts proceeding in se
unrelated standard agreeme
make sure that there is no
obligations of contra ng parti
andard form
contract, or
as the main
racts, or separate
ation of otherwise
n
ict or sp
are learly
ki
t ou
o
Standard forms curr ntly py im sded will a

most situations, although
this might necessitate the u of option cl
r sup ements as provided for in the
circumstances where only a
particular contrr,,t
ire may e ex pti
bespoke agre
ent
ve a`satisfact ry aan wer, and if so then this should be
structed directly by the client.
drafted by a experi
struc
yer
i
ntra t
the
count of eventualities that can be

%-a-rthe parties are expressed clearly, with
is as intended.
sly
0C:
to en
that ie inten
mat the alloct tion o
the common law of contract, and affected

s.
ry to take into account applicable legislation

least to have an awareness of what might
at
"sions,
misht need to be considered includes:
It is neces!
rr
and Management) Regulations 1994
(SI
1994/3140)
temporary and permanent works. The statutory duties for

tracto are usually made contractual obligations also.
early
t1w,?mp1oyer an
heck whether- the

it me
in respect
Unfair Ter-ft
in C
act terms take into account the role of the Employer in

and the obligations of the Planning Supervisor and Principal
the Health and Safety Plan and File.
s,
sumer Contracts Regulations 1994
(SI
1994/3159)
0-3D
ro
0-c
This legislation applies to contracts for goods and services between a consumer and
a supplier. The former will be a natural person acting in a personal way (e.g. a home
owner) and the latter a person acting in the course of business (e.g. a consultant or
a builder). This is primarily a consumer protection measure, and applies to any term
in a contract which has not been individually negotiated. It calls for fair terms, to be
335
14
Choice scenarios
expressed in plain intelligible language. An unfair

consumer. In assessing the requirement of good fai
parties will be taken into account.
willot
so care is
e
Check whether: one of the parties is a consu
eded
that the contract complies with the req uire nts
plain ang
erm s a
Most standard forms have not been indi ' ually
tia d. He e he pr
tracts' for sy
attempts to publish building contracts which e c nsu
r c
ildho or co
domestic works. Care is needed if draft g
as cla
appointment agreements to make c ain that the rm
understood by the consumer,
v,.
nji
fl,
dl
Housing Grants, Construction

Part II Construction Contracts
ion 7rtt 996,
This will apply to 'constructio

d this
professional services, interio or exterior ecora-on, la
It will not apply to contra 'ts wit
idential
cupiei
principally on
dwelling fo own
incCude contracts
for
building contracts.
roNded that the work is
occupation.
erms xpressly
Check whether: the o
adjudication, and w, ether Faym eet pro dures eet
the Act. If the Act 's appli able t not
ressly i
for Construction ontra
Re
ill automati
the6'right to refer disputes to

he requirements stipulated in
cluded for, then the Scheme
lly apply.
Party Wall etc. A
to d velop nt such as the Town and Country

etc., "this will. not usually feature in the contract
wall agr, ements or awards are concerned this
r co tract administration.
As with m
elatin
?fl
Planning
Conditi
might bri
er..
issued or receiv
aff
tructito cover p
hich might becom
at work will affect party walls, because if so notices might

the course of the Works, and construction work might
award. Contract Conditions should provide for
variations, extensions of time, disturbance costs,
11
fl-
that at co/rfimon law only the parties to a contract had obligations

The
and benefits fro
reement touched only the parties, and third parties were
outside the contract. Now this piece of legislation has brought the right of a third
party to enforce contractual terms, always provided that the contract expressly
provides for this or purports to confer a benefit, and that the third party is identified
in the contract. The contract may expressly exclude or limit liability.
It used to be h
*.,
336
Choice scenarios
14
ty rights re to
r.
re fired
an
taro egal
vice. f
ressly tate that
v':
BCD
('D
Check whether: it is intended that certain thi

whether the contract expressly includes thi
uncertain on this matter, it might be advis
published standard forms of building co
third parties under this legislation will
f Fai w has a b`
ctor,, who has promised
new prefabrica ed pa
odu
a sub
to the company he
owns. This will be supplied
ected
age. t
al de oration will be needed,
which the members fe
can ndert
sel
ernal works will also be
required, which mus e complet
iQr to d
loc contractor will be needed
to carry out this wor which-incl cles the c ess r
standing, bringing the site
to proper levels, dra cage,
the necessar
oncre base for the pavilion.
The tennis club in the afflue
to donate
he nat
of
t>
minor
wo&tpr th)s
preli inary contract, consider a lump sum

uch as JCT MW 5 might be appropriate if the work
straig
ver p si
wher there are sequential contracts, particularly
rac rs
, are volve The contractor responsible for erection must
ting
nd File c
N[2
beg'
act beinc
ica
(1)
mpede
Ì^
res.
possession on the due date and the site being

ompletion of the preliminary contract will need
e respective Nabilities for defects and damage clearly established
r example, MW05 only refers to defects in work under that
d by the original contractor). A separate Health and Safety
ill probably be required.
biz
ate. Pra
Scenario B
rmis ion f r the latest 'Homeforce' DIY Superstore contained a condition
acade f the 19th-century Boon Mills, which now occupies the site,
should b
tamed. ite clearance is imminent and the selected part of the listed
facade needs to e stabilised and protected in what could be a delicate operation. It
is decided that this work should be entrusted only to an expert demolition contractor.
(.0
Planning
n-0
+-C
,-+
Fin
(El
that the
Which contract?
A separate contract
is
required for the demolition work. Consider a suitable minor

337
14
Choice scenarios
P=}
works building contract e.g. GC/Works/2 (1998) or,

(e.g. the Standard Form of the National Federation
sure that the Specification and Conditions includ
and insurance, and that the contract for the b
contractor to work on the site occupied by th
II, a
ecia
act
ition con ctors
ake
dem
pro isio fo
ar s allo s for
other
i
Comment
vii
The demolition contractor needs to be

for
ear
ective
f m rial i
obligations for the safety and protectio
ed and
stored, it should be clearly stated. (Th Employer
ex
t to
ed if the
contractor is allowed to acquire salv
teria
emoon
can
dealt with
as a preliminary contract or as a su -con
the
'former, then
a Health and Safety Plan specific
quir e or it might be
this
fight
contained in the Plan produced b
incipa
cto r.
.
r(6
a_.,
Scenario C
Victoria Towers has been Ilow

trdeterioratever si e a disastrous fire last
century. Now Country Heri t e is repared t
s
sta
ial restoration and has
commissioned a det
su ey'Out
a
repo on
of the fabric. A
contractor will be ne ed to ar
cle ance a d op ping-up to allow investigation
work, the precise tent o which c not be
wn a 6e outset.
Consider cont
relevant
plus ap
standard
best
eliable buil er, pr

bly one with experience of this kind of
sup rvises raftsmen with a knowledge of the
ho
This
nlikely o be a lump sum contract, and a cost
only racticable/ne. It is doubtful whether any of the
s ffective cover this
is kind of operation, and it is probably
of letters and an agreed Schedule of rates,
dersona
SAO
work who
co
er pr6tection and
ese are no
operation. Retur
res are the contractor's responsibility, but check

work needs close direction, and the contractor
qu ting rates that this might not be a single continuous
to for further investigation are a likely requirement.
Sh
Trades contract
Scenario D
Champers is a popular cellar bar and restaurant in Westville. Success has brought
more sophisticated patrons, a need for expansion, and a more chic ambience. Further
vaults have recently become available, and these development ideas can now be
338
Choice scenarios
14
"
realised. The restaurant's reputation is such hat th e mu be n

o
down during building work, which may ne to be arrie ut a r at -ek
fashion. What is equally important, patro of Ch
per mus t a
mes
enjoy their food and wine safe from any
won of t, dus , unsavou sm
unwelcome noise resulting from the r
i
'
fl,
It has been suggested that whilst build
work an
ancecapf
p ro ded by one
nd kitchen
be
must be
ou
arri
per odic or phased
atio
rail direction will
the situation now
ate trades contracts.
reasonable building contractor, se

ally
left to specialists. It is envisaged th
ork
manner possibly over an extend period, an
be critical. The Architect agr
to, act
suggests that the role is dev
Which contract?
ouno mana moment,
The situation calls for.

Because of the inter
the builder is thougi

this could best
However, the
re of
ination, and firm control.
worK;
ikely to acgri eve
t by a consu
th
d lump sum contract with

esired result. It is thought that
ratin as
management contractor.
relatively small, and probably

N-volved a e lik
s con actsenter
into d ect b tween the client and each specialist
r. A s ort form (e.g. JCT MW05, one of the
e the ost sate
tory a
or G
be an app priate document to use for these,
additional conditions.
ere m
ateveNpfm, sho.
agreement,
include for matters such as the following:
ncemen and completion. Consider problems of phasing
an
Id
osses
stkte basis or valuing work done. State when payments are to be made and
ocedui sinvo
,y:
ol:
state
Establish procedu
nvolvecl_vMNs to
lities
architect's instruction before any deviation is made.

`sure integration and coordination of the various trades
responsible for setting up site access, welfare provisions and
etc.
Insuranc state wh will be responsible for insuring the existing structure, contents
and new w
sider cover for any consequential losses arising from the carrying
:
out of the work.

Termination: if this is to be included, state whether it is an option open to either party
and if so on what grounds. Trades contracts are almost certain to be construction
contracts to which adjudication would be a statutory requirement.
339
14
Choice scenarios
It might also be worth considering whether there sho Ad be a rov

event of key contractors falling behind, would allo the ar itec
no extra cost to the Employer) to bring the wor back
ti
bringing in an additional labour force, or even ano er fir
An architect involved in such a management r

for professional services with the Employer, d shoul
n w1171P
'
to
e ac
rn
ropria
r
t
co
riate
Contracts with substantial specialist co,

Scenario E
N-?
The catalytic degrader at Hotwells

ter
AssiateProduc
(1981) Ltd
very
has become redundant, and is du to be
late
d by
Nation from
Superlink Fibreoptics. The new de ched
om
i
e a
atively simple
structure, but the services installation it i o hou
complexity and
far exceeds the capital cost
the act
fl4ing
Which contract?
If the entire operation is to b
sum contract (e.g. JCT
d by one
for the i stall
sub-contractors.
Alternatively, the peciali
firm could be considered as the principal
contractor with erall r
iIity r rcar
work. The builder would then
be a sub-contracto respo ible f r care g out work on the building envelope
including ne ssa
dant bui ders' vv ork` onsider either a lump sum building
contract (e JCf98) o
ropr"gineerj g contract as the main form. Where
appropri e, a n
e w
is
nveniently s, If-contained, there could be separate
parallel
ntract fort e bu ding
rk and he engineering work.
.
former
Pte 4 Placing of Contracts with a Substantial Building

tent,
vised that where parallel contracts are used, great
is ded to e
effecti e coordination and to eliminate the risk of
ation. There might
complications where consultants with differing
nd
ies
der ifferent contracts of engagement are employed on the
ceclu re
rvice
e
dscape
vv,
For the proposed Eventide Homes cluster development, specially designed with the
needs of the over-60s in mind, it is thought that the external landscaping needs to
provide a particularly tranquil setting. The architect-led design team includes a
340
Choice scenarios
14
landscape architect, and although both soft

out, it is thought best to treat this as a sub
It is intended to use a particular landscape
is to be named u
er
appropriate forms either NAM or NSC
ing
to'
uildi
b- =ntrac
r.
IFC9
If the landscape firm
landsc
to
The Specification or bills of qua

special provisions to cover u
mbtesho
ties
ters
malicious damage or thef befo
ora ical
ordinarily appear in a building ntract,.
m
i,
Ian
ake,.
fail e
letion.
d
u
ecific reference to
aintenance, and
items would not
fl,
Developers Rushe & oulet -aaye acquir

office block in the City for
the proverbial song; and romptly set
ting it to make apartments
attractive to you
tives The site r eds
ons of an innovative landscape
architect, and uc
is will -be hard
using non-traditional materials and
dsca
specialist tec hology At
refore
ed th t although this work will proceed at
the same ti eas th buil
k it should be ui ertaken as a quite separate contract.
m contr ct (e.g JCN C98) perhaps modified after taking account

ctice 11 es Altern ively, if the type of work suggests that
riate
_4'
evant JCL
easurement
racticable (e
if there is a substantial amount of earthciated
rk of a civil engineering type), it may be more
of ditions of Contract for Minor Works.
is
ring
onsid
fl,
taine
ntract for landscape work, it is probably best administered
andscape
tect.
reful coordination will be needed if it is a contract in
parallel with anoth
Iclj g contract.
fl,
fl,
The new ouncil office under construction at Tan-y-groes have attracted a great deal
of media
est. W rk has not proceeded to programme and failure to complete by
the contract completion date would be a matter of intense civic embarrassment, as
arrangements are already in place for an opening ceremony by a distinguished person.
To make sure that this will go ahead as planned, it has been decided to omit all the
landscape work to the central sculpture court. The building can be occupied and the
landscape work can proceed at a later date under a separate contract.
341
14
Choice scenarios
Consider the JCLI Form of Agreement for Landsca

on the JCT MW05 contract, but includes additional
such as plant failure, malicious damage or theft,
will require a separate JCLI Agreement.
Thi
clos
mo led
for ealin
ith ;ffieation
maint ance.
tte+
i
It is perfectly acceptable for the administr for

the CLI
do s c a
than a landscape architect (e.g. an arc tect), ildinur)era
e utie
esuppos
which an architect experienced only,in
t not
s
bt
Contracts for fitting out

Scenario J
Ground floor shop units on ne ne

tes De
new a le
to be fitted out by tenants hey will as ume re
t o nsibi
and for providing shop onts, under direct co racts
developer's contract with tH prin Opal contr or.
to be left as shells,
ing out the interiors
ite separate from the
terioiork
be car`ried out u der a lump sum contract in

its gi'm pest
is could be y written acceptance of the
specialist firm's o r. HoOewer, sucVquotatid
often subject to each firm's own
conditions, a
ight not e acce t le. Architects acting for tenants might
be wiser t suggest
appropri e st dard rm of contract (e.g. JCT MW05 or
IFC98, de endin on th
and n ure of e work). Alternatively an agreement
suitable or inte for
rk is
from th
hartered Society of Designers (formerly
the Socie of In
trial Arti
sig rs).
Shop-fitting and
respect of each
the
nit.
an
site, care should be taken to establish respective site

ontractd is still
Tw4
spo ibil
s
rticula proper insurance arrangements. The principal
ractor might require
ractors to work in accordance with the Health and
Ian for
or the t6nant's work is carried out under separate unrelated
Heat
Safety Plan for these works might be necessary.
the_
-f,
ntracts
0-0
The oil rich port of Fyl-yr-Up requires new state of the art terminal facilities. This is likely
to be a large-scale and sophisticated construction operation calling for significant
engineering installations which must be coordinated and integrated with great
precision into a series of buildings which will operate as the necessary plant
342
Choice scenarios
14
housings. The conventional arrangement of

sub-contractors specialists is not likely to pro
detailed planning and coordination will b
on site, and there must be absolutely po
installation or integration problems.
in
ma
f ctory.
d be
re
tre endo
co
le.
isruptio
.-r
ys or
Consider a joint venture approa

ra
tract. If joint
venturing, then the selected ten ering c
ies
st b
combine under
one legally constituted partners p andacccep
nt =everaQ
lity. The use of a
8)
traditional lump sum form
no
y b precluded, as the
contractor would be a sing
ka s p
forme
hership or company.
The partnership ag $ement s

performance bond vould r r
rovid
be`reqq uired-.
particularly effectiv wher design input is

contributed by he
ious Decialist
rtn
the larger org is
quire
d several liability and a

ethod of working can be
with elements of the design
effectively coordinated within
contratt
for a-new
seve
er
ed u
of
oup
we
tice veterinary surgery in Fairmeadow became
of
36-week contract. His employment was
the
ms of the contract, and it is accepted that
question.
+-V
ctor (ideally under the same contract Conditions as the original)

first contractor. This might be achieved through negotiations
derer on the original tender list, but if the work has been
efforts and departure of the failed contractor, there will
e more one
certainly been inc aseethe Contract Sum.
,l<
If the cir umstances r climate for tendering has changed markedly since the original
tenders, it
h
e necessary to amend the original documents and invite new
competitive tenders. An insolvency practitioner acting on behalf of the original
contractor should be consulted and must be kept fully informed of all developments.
Employer's costs and expenses arising out of the determination might be part of the
claim to be brought against the original contractor.
0-'
343
14
Choice scenarios
jrds
le
ewha errat
o act
recei
3rv cou e of aftioh js
so
.-t
fl,
Work on the Limboland Fitness Centre was well ov

contractor's performance became progressively sl
no great surprise when a letter arrived from a fir,
discussions, it was generally agreed that the
have the contract completed by a substitute ontract&-
The contract just might be completed
nt
y rein st
substitute contractor accepts respons

the original contract. A deed of assi
Employer, receiver acting on
contractor.
ity
co
uld
I
.-+
r-.
fl,
previou
payable
fl,
.^+
'"'
ed
d novation. In this
for completing the

acceptable. A deed of
er, receiver acting on
ng
contr ctor w
complete t e work, an adjustment of the
almo i evitabl The
r might also have reservations
sibility for ork al
carried out and perhaps covered up,
ble The H s of taking on work undertaken by
be in
n be
ared b an additional single fixed premium
ew Healt and Safety Plan might be required.
fl,
fl'
Where a substitu
completion date
about acceptin
and additio
der
quired a
co
tor,
Alternatively, the contract mi tbecò ple

by re
case, although the substitut contractor night at-c ept re
Works, all the terms of th origi
ntract mig
not
novation would be require ,as a reed
behalf of the original
r, a n lthe subs 'tut
betw`
ass
tin
ation refurbishment scheme was complete except for a

reat reluctance, the architect yielded to pressure and
rtifie pr
ca
allow unhappy decanted tenants to resume
patio-n. Unfortunat
is to bring back the contractor to complete the
ding work fl-d. By
iry of the defects liability period the contractor had
mo ey was held back at practical completion, in addition to
The issue now is to have the work completed.
fl-
Dragon` iousm,
out n ing ite
fl,
cc.
--6
fl-
fl,
fl,
fl,
c+'
The outstanding work could be carried out on a lump sum or preferably a cost plus
basis by another contractor. An exchange of letters might be considered sufficient, but
this would probably still be a 'construction contract' to which the payment
procedures and adjudication option would apply. Depending on the extent and
c-0
344
Choice scenarios
14
nature of the outstanding work, it might be

MW05 or an ASI form).
A Specification or Schedule will be nee

The best course of action should first
should be kept fully informed of develo
Contracts for jobbing repairs o
When the date for judgin

announced, it was decide
Street facades as a group ope
renovation and some
needs repainting, a
work, and well with
0-o
a competition was
inting of several High
es is in need of some
dwork and ironwork also
ostly routine maintenance
For small -scal strai
tfo
enti
'
w rk is
woul
d, an
ti-
ident
s, tend rs mi ht be sought on the basis of minimal

cificati
r Sche ule. This might result in just a lump
t contractor's f ures could give a useful breakdown.
e su
t
any cases, but where a larger amount
ndarg4(Zrm of contract should be used (e.g. JCT MW05
and j
drawn infor ation nd a

sum, or if ufficie y ite is
An excha e of le er might
of work is inv ed, t en as
or a
uilders.
tr Vtedaavonaecontract, then the client would need to be

uthority to appoint a contract administrator.
nication would need to be clearly established to avoid the risk of
be
presume
ners issuing instructions directly. If the individual property
to separate contracts with a common contractor, then

standard forms are used, and the same contract
ink under each, coordination might be more exacting.
Cambrian ank, which has premises in major towns throughout the
Principality,
to embark on a programme of regular maintenance and repair.
It is envisaged that parcels of work on a regional basis will be offered for tender, in
some cases with the added proviso that appointed contractors must also make
themselves available to tackle emergency repairs at short notice.
The Ne
.'^
345
14
Choice scenarios
a term contract. Contractors can be selec

of rates. There may also be a standard call-out
contract might cover a specified number of pro
Orders would be issued to authorise ad hoc
of the approximate total value of the work e
C--
Consider
be avoided.
erri
The JCT publishes the Standard Form

Mea
Pd
bodies have their own model docu e s fo uch
require the presence of a contract dmini ato
TC%05. Some
on acts usually
tracts
%th
m loyer.
fl,
The Architect engaged by t
%ve
cquis
Allday fa
em
ily h
,-+
to update the cottage the have

alteration work and some ainte ance and
can safely be entrustedo th
y,
rk. It
vic on what
a
is
D0-
Scenario Q
needed
maamount of
agreed that this work
"
-.-
Assuming that th archite is se Vtcesarg, no longer reclfired, and that this is a private
residence for oc upatio Vby e AI
then consumer contract (e.g. JCT
Building Contract
a
wn r/OccWier) would be a safe recommendation.
fl,
An excha ge of
rs, or ve
asic formal greement (e.g. JCT Contract for Home
Repairs
d Ma tena ce) c uld b conside ed as an alternative, but neither is likely
to provide
equa contr ct Condi n The fact that this is work to a private
resi
nc
r
ner occ ation means that statutory requirements relating to
a Judication and
ment rovisions under the Housing Grants, Construction and
-Q-
pply.
346
Bibliography
rip
Chappell, D.
The JCT Intermediate Building Contra
Chappell, D.
The JCT Minor Works Buildi
3rd edn, Blackwell Science (
Chappell, D.
The JCT Design and B
3rd edn, Blackwell Sc
nom
Davidson, J.
JCT 2005 What's Ne
RICS Books (20
0,v2
Egan, Sir Joh
Rethinking
HMSO
(1
Egglesto
The
Bla
am,
Constructi
HMSO
(1
Sarah Lupton
rye
Guide to MPF03
347
Bibliography
0-O
Sarah Lupton
Guide to SBC05
Sarah Lupton
Guide to IC05
RIBA Publishing
(forthcoming)
Sarah Lupton
Guide to MW05
Sarah Lupton
Guide to DB05
E
MacRoberts, Solicitors
MacRoberts on Scottish uilding Co tracts

2nd edn, Blackwell Scienc t(forth omi g)
IAI
Y,1111
348
Index
ACA, see Association of Consultant Architects
Accelerated Traditional Method, 33
additional work, see variation of work
Agreement for Housing Grant Works

Edition OCT HG(A)), 187-93
36,56
alterations and extensions, buildin

minor works contracts)
(see also
Contract 2005, 253,
amended forms of contract, 17, 61,
Construction Contract,
su
tractors and
4,207,
'approximate quantities',
architect's appointment,
of Building (CIOB)
CIOB
1
LOB
design nd buil
ini Form
20, 64
procu
of Contract (CIOB Mini Forms),
men
363
manag
inor Works Contract (2004), 176-7
CIOBSmall Works Contract (2004), 175-6
architect's instruc ons, 3

architect's servi es, 15,
Iding Contract (2004), 173-5
ent, 3
ent pro
Architec
eying Institu
172-8,
58, 299
(ASI)
03-6
hitects
ment 1982
003 Rev
advising the client, 20-1

basic questions, 59, 60
procurement methods, 46-7

scenarios, 315-46
CIOB see Chartered Institute
of Building (CIOB)
Civil Engineering Contractors Association, see ICE
Conditions of Contract
:A 3tanc
clerk of works, 37
rtneringg
client's representative, 15, 37
Conditions o
client's requirements, 28, 36, 37, 56, 60

collateral warranties, 33, 36, 40
commencement date, 28, 33, 36, 59

ts, 17,
design and build contracts, 56
management contracts, 57
bills of quantities,
break provisions, 228, 232

Building Contract (and Consultancy Agreement)
for a Home Owner/Occupier (JCT
HOC/HOB), 194-9
Compensation Events (Engineering and

Construction Contract (NEC)), 111, 113,
164, 167
'Competitive Design and Build', 36
competitive tendering, 33, 39, 59
349
Index
C
completion contracts, 343
19
88
conservation work, 26
Construction (Design and Management)
Regulations 1994 (SI 1994/3140), 335
gn,
eg
,
an
09-10,
Cons
c1
15,, 162,
Construction Industry Board, 50

construction management, 38-9, 58, 297
contractual relationships, 42-3
ontra
plan of work, 33, 39-40
Construction Management Agreement C/CM
/ forks
(J
C/CM), 297-306
ICE
Construction Manager (JCT Construction

Management Agreement), 297
and Build Contrac
JCT
Measured Term Contra
2006
JCT
ntract
contrlactt profile`;
134
Contract
C
ntrac' 2005,`Q1
ification the
design j
ontractor's design (see also Contractor's

Designed Portion)
97
,
16
en36,
and build procu?
37,
ment,
33
al
tual relations
S31070
ACA Form of Building Agreement, 144, 145

Engineering and Construction Contract
(NEC), 110
min
ointmen
design an
9ctor ap
41
Consultant Tea m , 49, 57,

a
60
typks
BA-1
consultant's
ntract
'consultant switc h',
ontra
luctua
uctura
Contra
Intermediate Building C itracts, 124
Ski Its Ce
ntit
easu'red Te[m Con
JCT
Construction
rth Q
CchrNtion
JCT Irate
on,rme diate Bui
Construction Phase Plan

1CT Design
24
per
GC/Works/1 With Quantities (1998), 98

Design and Construct Conditions of
Contract, 265, 266
ICE
rocure
cure
ent, 42
JCT Design
traV4Lo al procureme
254, 255
tant's design liability, 56
JCT
and Build Contract 2005, 253,
Intermediate Building Contracts, 119,
121, 128
design and buii)6pfzaremenJ, 35
traditional procure?niL4
1-2, 33, 34
consumer contracts, 61, 185, 335-6

HG(A) 2002 Edition OCT HG(A)), 187-93
JCT
JCT Building Contract (and Consultancy
Agreement) for a Home Owner/Occupier
350
JCT
Major Project Construction Contract,
1CT
Minor Works Building Contracts, 131
JCT
Standard Building Contract 2005, 85,
86
JCT Trade
Contract, 308
Contractor's Designed Portion, 56-7

JCT
Intermediate Building Contracts, 121
71
Index
Contractor's Designed Portion (continued)

JCT
ariso
co
Standard Building Contract 2005, 85,

86, 89, 90
JCT
tract
46-7
al relate
forms f contr
contractor's liability, 18
ACA Form
ild
and
Minor Works Building Contracts, 132
ships,
t, 249-7
assessme t, 44, 4
of Building Agreement, 148

(NEC), 109
Engineering and Construction
Contract (NEC), 165
ty,
sig
ng an
C),
GCJWorks/1 With Quantities

JCT
(bantities (1998), 98
G C/Works,
Cont
uild Contract 2005, 254
Intermediate Building Contra

e
7, 91
contractor's responsibiliti
design and build
tanda
desig
tracts
ctor's Designed Portion)

r
traditional procure ent, 33, 53
ctor's designed portion, 56-7
contractor's staff,
design and build contracts, 35, 36, 55-6
of Thirc! PartiN Act
Contracts (Righ
Building Contracts, 125
Building Contract 2005, 81, 85
336-7
contractual 'elationsl ps, 15/40

r
management procurement, 37, 38

,
BA
traditional procurement, 33
ACA Form of Building Agreement, 145, 151
racts, 4Y-2
design ,and bui
ACA Standard Form of Contract for Project

Partnering, 332
re ment, 4
d
E6a

(NEC), 110
222
ontrac
ICE
Conditions of Contract for Minor Works,

+-'
1w.1
ICE
lZ-
Conditions of Contract Measurement
Version, 214
cosy
ICE
39-47
Contract, 266
Defective Pr
ses
see nsurance
Act
19 2, 18, 85
JCT
defects re ification, 53
defence cont
Major Project Construction Contract, 70,
71, 72, 81
51
JCT
demolition work, 337-8

Department of Health, NHS ProCure 21/1-IFT,
Standard Building Contract 2005, 85
domestic work (see also consumer contracts)

51
CIOB Mini Form
'Design, Manage, Construct', 37-8, 58-9
Forms),
Design and Build Contract 2005 (1CT DB05),
JCT
u-,
251-64
Contract 2005, 253,
254
of Contract (CIOB Mini
203-6
HG(A) 2002 Edition (JCT HG(A)), 187-93
rope
O_1
mage t
351
Index
0
a murrrjnce) co
domestic work (continued)

Contract for Home Repairs and
Maintenance (JCT HC/RM), 200-2
1CT
s,
51,
um
ice'
P) c
Minor Works Building Contracts 2005

OCT MW05/MWD05), 132
JCT
toric buildi
mlmprQveme
Egan Report, 10, 21, 50
employer's representative, see client's

representative
employer's requirements, see client's requireme
enabling works contracts, 64
home
con
hour gran
g,
see
87-9
rks
ement for ou
dition (J
Engineer (ICE Conditions of Contract), 214

223
nts, CbQstTn<tion
Engineering and Construction Contract Third

Edition (NEC3), 107-16
differ
Engineering and Construction Sho Ft Contract

(NEC3 (Short Contract)), 16 -7
ment o
ICNCondif1ons 6
Federation of Civil Engine ring Con acto

ICE
Conditions of Co ract for inor Wok
Third Edition (2
1), 221/6
ditionnN(2001),
E
fitting out wor
221-6
dition of Contract Measurement Version

Seventh dition (Sept 1999), 213-20
Design
d Construct Conditions of Contract
econd Edition (2001) (ICE/D&C), 265-72
Financial Control, 25
fitness for purpose obligat
.-
European context, 20, 62
ICH orm of Default Bond, 213

inde pity, see insurance arrangements
forms of ap
InsR
forms of c
Framework
tution of Civil Engineers, see
ICE; New
Engineering Contract Document (NEC)
nsurance arrangements, 43-4 (see also risk

assessment)
Fram
315-17
interest payments, 19
ements,
ctionkrel3itionships, se
relationships
interior work, 342

Intermediate Building Contracts 2005 (JCT
IC05/ICD05), 119-29
intermittent works, 338-9

GC/Works contracts
GC/Works/1 Single
273
S,
age Design an
GC/Works/1 Two Stage Designand Build (1999),
273-7
GC/Works/1 With Quantities (1998), 96-106
GC/Works/2 (1998), 153-8

GC/Works/4 (1998), 159-61
352
JCLI, see
Joint Council for Landscape Industries
(JCLI)
JCLI
Agreement for Landscape Works, 168-71
JCT, see
Joint Contracts Tribunal
jobbing repairs, see repair work

Joint Contracts Tribunal, 10-11, 17, 20
Index
Joint Contracts Tribunal (continued)
C1_
Agreement for Housing Grant Works HG(A)

2002 Edition (JCT HG(A)), 187-93
Jojf t Councj}'for Lan cape In

Aare6ment for Lan cape
re
stn'
co#itractsh342-
Building Contract and Consultancy

Agreement for a Home Owner/Occupier
who has appointed a consultant to ove
the work (JCT HOC), 194-9
cators
fl-
Building Contract for a Home

Owner/Occupier who has not app me
consultant to oversee the work(J
HOB),
194-9
laly, scape
to p
ent,
of Co
ay
99,
Construction Management
m Report,
C/CM (JCT C/CM), 297-30
X107
of coW
Contract for Home Repairs an
New',Rnai7reeri
tract 2005
ultant; 6,
31
335-6
FA),
ontractor's liability; design liability
315-17
!finding
(JCT
authority requirements, 63
to Buildi
sum contracts, 25, 53-4
5), 119,
roject
shorter lump sum forms, 117-83
nstru
standard lump sum forms, 67-1 16
9-82
m Contract 2
6 Editi
M41 (Movement for Innovation), 50
TC06),
Minor Works
MW
d
Repair
Idin Contracts O05

v 30-
(JCT,
I)
maintenance work (see also minor works contracts)
management contracts, 58
ainten
mmerc
maintenance period, see defects rectification
2006,
example, 345-6
JCLI
Xtandar
ilding
Agreement for Landscape Maintenance
Works, 168
SBC651,

Maintenance (JCT HO/RM), 200-2
JCT
ilding
Standard For
(JCT98), 69
JCT
Sta
Appro
SBCO
Stan
rd Fo
ate
/AQ
of
uanti
09-12
Form of
Measured Term Contract 2006 Edition
(JCT MTC06),
1998 Editior-OCT MC98), 281-91

Standard Form of Prime Cost Contract 1998
Edition (JCT PCC98), 239-47
Trade Contract TC/C OCT TUC), 307-12
Works Contract 1 and 2 and 3 1998

Editions (JCT MC98 WORKS), 292-6
228-35
and Maintenance Contract

(Commercial) 2006 edition (JCT RM06),
JCT Repair
139-42
Major Project Construction Contract
69-82
(JCT
MP05),
management contracting, 37-40

plan of work, 32-3, 39-40
353
Index
M
management contracting (continued)
risk assessment, 45
Buildi g
types of contract, 57-8
tesi
Management Contractor, 282, 283, 292
Am6
75
n Build,
management of the Works, see site management
management procurement, 37-40, 57-9

Version, 2
comparisons, 46-7

forms of contract, 279-312
edi*',9.uildin
JCT
plan of work, 32-3, 39
126,
risk assessment, 44, 45
JCT
Mrafroject
management responsibility, 32 (see also cori

administration; coordination of work; site
management)
Co
inorW(o_UBuildin
era
Measured Term Contract 2006 Edi on (JCT

MTC06), 227-35
ndard
measurement contracts, 54
standard forms, 207-
Mini Form of Contract

Ministry of Defence,
(Cl
203-6
51
005
Bering Contract Document (NEC)

hird Edition (NEC3), 107-16
try (2004),
,4),
Wor
SBCC
minor works contracts
CIOB
42
CT
Minor Works Buildin Contrac

MW05/MWDO ,, 130-8
CIOB Mi
nda
JCT S
Mini_Torms`),
175
Eng
Contr
Engineering and Construction Short

Contract (NEC3 (Short Contract)), 162-7
Partnering Option X12, 318-20
orks/
ns
of
(2001
NHS LIFT, 51
NHS ProCure, 51
nominated sub-contractors, see 'named' subcontractors and suppliers

non-standard agreements, 17,
61
Northern Ireland, applicable forms of contract, 20

GC/Works/2 (1998), 158

GC/Works/4 (1998), 161
Minor Works Building Contracts 2005

(JCT MW05/MWD05), 130-8
ICE
Scottish Building Contract Committee

(SBCC), SBCC Forms of Contract, 181-3
ICE
1CT
Movement for Innovation (M41), 50
354
Conditions of Contract Measurement
Version, 220
Contract, 272
JCT
Intermediate Building Contracts, 128, 137
Index
Northern Ireland, applicable forms of contract

(continued)
JCT
ini For
ieerin
),
of
Conic
tructi
d Co
-13
Standard Form of Building Contract

With Approximate Quantities 2005, 211
f Constructi
165
JCT
novation, 36, 41
Olympic construction programme, 20
Outline Plan of Work, 32

23
overseas projects, 20
ICE
Condltiorof
rsion, 21
rking
I
Contr
management proc
6ment,
traditional procur nent, 33

partial possession (see o o
commencement an
phase
Ag re
(ding
and Co
lding Contract (and Consultancy

ent) for a Home Owner/Occupier,
1W, 197
JCT
%ruc
t, 145
of
on ditio
JCT
Construction Management Agreement,
301
reemen for
La
struction
dscr V`
nageme)
169
Agreemen

Maintenance OCT HO/RM), 201
1CT
JCT Design
ild Contract 20
ng ConMcts, 120
JCT
and Build Contract 2005, 257-8
Intermediate Building Contracts, 123-4
Major Project Construction Contract, 70,

75-7
JCT
JCT
Measured Term Contract 2006, 230
Minor Works Building Contracts,

133-4
JCT
?CT
stc
and Maintenance Contract

(Commercial), 141
Contract,
JCT Repair
241
JCT
1CT Trael-PContra
rrange ents,
and
Standard Building Contract 2005,
89-90
forms, 31:
Standard Form of Management

Contract, 285-6
1CT
JCT
Standard Form of Prime Cost Contract,
Partnering`B.tion X12,18-20
242-3
Party Wall etc. Act 1996, 336
JCT Trade
payments to contractor
JCT
ACA Form of Building Agreement, 147

Partnering, 328-9
Contract, 309-10
Works Contract
SBCC Forms
and 2 and 3, 294
of Contract, 182
performance indicators, 50, 315, 328

personal injury, see insurance arrangements
355
Index
P
PFI
act (a1-'
(private finance initiative), 48-9, 71
Home 0
phased commencement and completion, 28-9,

85 (see also partial possession)
t Ag re

CIOB Forms
of Contract, 174
ICE
r Home Kepairs a
rac
GC/Works/1 With Quantities (1998), 99, 100
Maintena
Conditions of Contract for Minor Works,
ten-ftftate
JCT
JCT
Intermediate Building Contracts,
JCT
JCT Trade
MajdhA.TqjecKo structi
Contract, 71
Measured Term
6, 228, 230
Minor`W6rkss Buildin
Contract, 308
and For
With )appro
traditional
e also
JCT Stan
preliminary works con
239, 2}s
cts, 337-.40
JCT Trade Contract,
see 'named' s
iers
ts, see cost flu
rm of
l7
f lding, gree
f Contract, 172,
,f
Contrac
and Corii
)
price
309
uctuations, see cost fluctuations
Prim contracting, 51
e Cost Contract 1998 Edition (JCT PCC98),
239-47
CIOB Min`
Engi
of Building Contract
Quantities 2005, 209
Stan
ntract
Planning Supervisor, 335
28-9
g Contract 2005, 89
tandar
management procurement, 3
(NE
06
(Comm
design and build contracts, 3
uction
prime costs, 54-5

Contract, 268
ICE
Thir
GQVZrrks/1 With Quanti

orks/2
5
!i's
of Contr
Contract 2005, 253
Standard Form of Prime Cost Contract

1998, 245
JCT
Principal Contractor, 335

Private Finance Initiative (PFI),
Contract M
Version, 213, 216
and Construct Conditions of

Contract Second Edition (2001) (ICE/D&C),
268
ICE Design
JCT
Agreement for Housing Grant Works,
188, 190
356
Contracts 2005,
d Mai
JCT
plan of work, 32-3
possession dates,
possession)
Bu
48-9
ProCure 21, 51
procurement methods, 31-47
traditional procurement, 33-5

design and build contracts, 35-7
management procurement, 37-40

Index
krm of %ildiing
procurement methods (continued)

comparison, 46-7
re'
antities
43-5
risk assessment,
98), 158
recent developments, 48-51
professional services, 16, 64
998)/ntla
Project Cost Plan (JCT Construction Managem
bf C
Agreement), 299
CE De
provisional sums, 34
Public Contracts Regulations 2006,
ract,
1
CLI
public sector contracts, 51, 62-3
Aa7semenf
ttisli
quality considerations, 24, 26-7
tract, 179-83
CC Form
quantity surveyor, 25, 38, 58
Landscape Works, 169
Cwtrac Committee (SBCC),

letion see phased commencement
ectiori
'radar charts', 23-4
342
'reasonable skill and car
',
rectification period, see
37
efects
'Sing
ectification
refurbishment, see renova ion wd
of contract,
17, 61, 340
pose vehicle' (SPV), 48
Regional Prime
sign and Build', 36
irec
cial for
ialist contractors, 15, 27, 33, 38

(Engine ring an
(NEC))
10, 1
onstruc
appointment and management, 34

ulative risk, 44-5
ent' co
V (special purpose vehicle), 48

also maint nance
rk)
stage payments, 19
Stand Alone Capital Projects Prime Contract,
nn,
Housind
Agreeni
Standard Building Contract 2005 (JCT SBC05),
Main nana
2006 e ti n (JCT
epair an
k, see
(Commerc)
mainte
ent Enginee
i_sk
101, 2
(JCT
PPC2000,321-33
-5, 4
ods Act 1979,

SBCC, see Sc
Approximate Quantities 2005

SBC05/AQ), 209-12
Standard Form of Contract for Project Partnering
of Work, 3
asses5a<ent,
83-95
Standard Form of Building Contract 1998 (JCT98),
69
Standard Form of Building Contract With
ation work,
RIBA Plan
51
Works,
000
1CT
h B
ing Contract Committee
Standard Form of Management Contract 1998

Edition (JCT MC98), 281-91
Standard Form of Prime Cost Contract 1998

Edition (JCT PCC98), 239-47
standard forms of contract, 17, 61-5
(SBCC)
Schedule 2 Quotation, 89
starting date, see commencement date
Schedule of
sub-contractor appointment and management

(see also 'named' sub-contractors and
Rates, 54
Scotland, applicable forms of contract, 20,
179-83
suppliers)
357
Index
5
sub-contractor appointment and management
(continued)
Con
traditional procurement, 33
uctio
164

CIOB Forms
of Contract, 174
GC/Wd

(NEC), 112
ICE
ConditO
Engineering and Construction Short

Contract (NEC), 164
nditi
`-'

ICE
Conditions of Contract for Minor W,
223
Ver3i9nl
esign
Cont
Design and Construct Con

Contract, 268
JCLI
ct Co
ions of
esign a
Agreement for Landscap Works 16'

Agreement for Housing G ant Wo
Build Contract 2005, 256
uilding Contracts, 122
ediat
ks,
C3)
JCT
CbRs
67
greerRgnt or Housi
ICE Conditions of Contract Measuremen

Version, 216
ICE
of Co
15
Construction Contract, 72-3

Mea ured Term Contract 2006, 229
300
CT
1CT Design
ild Contract 20,05,
and
JCT
Intermediate
JCT
Major
iIding
n dacts,
Con ruction
Pr
JCT
70, 75
1CT
Mino Works Building Contracts, 132-3
JCT Rep
it and Maintenance Contract

ercial), 140
Standard Building Contract 2005, 86-7

Standard Form of Management
6, 230
Me
200
88, 94
ontract, 284
JCT Standard Form
of Prime Cost Contract,
241
Standard Form of Prime Cost Contract

1998 design and build contracts, 56
JCF
SBCC For
ply of
ensi
of
rti
and Servi
5rk,
19
JCT Trade Contract,

JCT
Works Contract
308
1
and
and 3, 293
Time Schedule (ACA Form of Building

Agreement), 145-6
Trade Contract TC/C (JCT TUC), 307-12
4,27-8,59
comparisons, 46

Partnering, 326-7
CIOB Mini Form
of Contract, 204
358
trades contracts, 38, 39, 64
construction management, 58-9

example, 338-9
JCT
Construction Management Agreement
C/CM (JCT C/CM), 297, 300
traditional procurement, 33-5

comparisons, 46-7
Index
traditional procurement (continued)

61
measurement forms, 207-35
term
risk assessment, 44, 45
la
ildin
late
or
onstructio
Project
consumer contracts, 185-206

JCT
cost plus forms, 237-47
3,
shorter lump sum forms, 117

standard lump sum forms,
1Cair an
omrl)
-116
work stages, 32, 34-5
CT'Sta
cl'akdki lding
two stage tendering, 33, 36, 59

GC/Works/1 Design Build, 273
Contra
1CT-Tr
4, 276
'withou
tr,
tracts egulations
stages,
309
84
'wi
977,
al warranties
ties, s
JCT Design and Build Co uaci
54,84
e plan
of work
and 2 and 3 1998 Editions (JCT
MC98 WORKS), 292-6
Works Contractors,
ac
g"' 282, 292
nsumer,Contrac
works
Wo
39
Bank funded projects, 20
ons, 37>54
X12 (NEC Partnering Option), 318-20

Ag
ment, 147
f Contra
B
PDT
Mini
or
or Proj ct
ditiorr'of Con
,216
Design-rod-Ce-Kstruct Conditions of
Contract, 268, 269
ICE
Agreement for Housing Grant Works,

190
JCT
Building Contract (and Consultancy

Agreement) for a Home Owner/Occupier, 197
JCT
359
forms of building contract currently available in the UX Ever since i

first publication in 1989, architects and other construction professic
have been turning to Which Contract? for guidance on whai procurement
strategies to adopt and how to identify the most appropriate contract for
a given set of circumstances. It has now been updated to take account of
domestic projects. Many will be using stan4ard forms of contract, and

often the frequently difficult choice of which rests with the lead consultant.
Fortunately, Which Contract? explains the tried and trusted techniques for
',-Z
fl.
--'-r --wntractual app;
:u ru:rrn Edition is an invawam

ne
start of every now project anv
n or her
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Which Contract - Choosing Appropriate Building Contract

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RI BA

Hugh Clamp, Stan

First Edition (1989) by Stanley Cox and Hugh Clamp

Second Edition (1999) by Stanley Cox and Hugh Clamp

Published by RIBA Publishing

Stock Code 58319

The rights of Stanley Cox, Hugh Clamp and Sa

All rights reserved. No part of th publics i .nay be repi u ced, s

Design and ty, iesettiA

of this boo which first appeared in 1989 and which was

heck the accuracy of the information given in this book, readers

Thinking about contracts

Which type of contract?

(Commercial) 2006 Edition

Traditional procurement: consumer contracts

Agreement for Housing Grant Works HG(A) 2002 Edition

Building Contract for

Contract for Home Repairs and Maintenance

Architecture and Surveying Institute Mini Form of Co `tract

Traditional procurement: measurement for

Standard Building Contract With Approxi

Conditions of Contract Measurement Ve ion Seve

Conditions of Contract for Minor W

Measured Term Contract 2006 Edi

10 Traditional procurement: cost p

Design and build procurem

JCT Design and Build

Design and Construct C nditi ns o Contract

GC/Works/1 Two Sta

act for Project Partnering PPC2000

This is the fourth edition of the popu

in the number of standard

The first three editio

been added to include recent

The last twenty-five years have seen

ts. The wide

1895, intended for tradit

World War there were extensive changes in

integrated ways of working, fairer tendering, improved payme t pro duress

The Egan Report (Rethinking Constructio, ,t

two reports, together ith

In 1998 the Joint Con acts Tribunal ecam

At around this time

then current forms were republished, with n

variants of the existing Intermedi

emanating from eight publis ing sources

e Civil Estate publish

contracts, plus the NEC

The first government sponsored standard

Association of Consultant Architects (A

Standard Form of Building Contr, ct

pan-industry forum repr entm

JCT Measured Term

The Seven Pillars of Partnering

6onse to E an, r4cus

tractor Handbook of Supply Chain Management

rtnering framework for the Department of Health and the

New part ering contract published by Association of Consultant Architects,

4 (second series): Partneri

tr tion proc ers on hh' construction projects

The term 'procurement method'

ely described as a network.

al re tionships from managerial links, and

professional consultants will be primarily concerned with two