Which Contract

RI BA Publishing
Which Contract?
f Ì K
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 1 85946 237 9
Stock Code 58319
The rights of Stanley Cox, Hugh Clamp and Sa Lu pto a

61L
, 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 in PO cati s Data

A catalogue record for is boo s avails e from Briti Libra
Publisher: Steven C ss
Commissioning Edit T,Kompso

Project Editor: Anna
Design and ty, iesettiA Millbank
Printed and ound by MP ComW
omplet revi s Fou Editi of this boo which first appeared in 1989 and which was
pd by s le ents iri e Second Edition was published in (1999) and the
003. F rms of eferred to are those believed to be current at the time
riting:
hile madet heck the accuracy of the information given in this book, readers
ould Iwa ake the hecks. ether the Authors nor the Publisher accept any responsibility
,,missta ements made in i isunde tandings arising from it.
4
Contents
Foreword age 7
Introduction 9
1 Thinking about contracts 15
2 Establishing a contract prgfil 23
3 Which procurement me 31
4 Which type of contract? 53
5 Which contract fo 61
6 Traditional procu st-Andard 16 67
JCT Major Project Co truc on Contr 2 69

JCT Standard uil ntrac 005 83
GC/Works/ With antitie 96
NEC Eng eering Contract T 107
7 Traditiona 117
JCT ilding 119

J racts 2 130
JU Reoal andlMaAenanc ontra `t (Commercial) 2006 Edition 139
(Third Edition 1998, 2003 Revision) 143
153
159
:C Engineering 162
LI Aareerrientfor 168
ontra 172
s of Con 179
8 Traditional procurement: consumer contracts 185
JCT Agreement for Housing Grant Works HG(A) 2002 Edition 187
JCT Building Contract for a Home Owner/Occupier 194
JCT Contract for Home Repairs and Maintenance 200
5
Contents continued
Architecture and Surveying Institute Mini Form of Co `tract ( enera

and Mini Form of Contract (Home Improvement A ncies)
9 Traditional procurement: measurement for
JCT Standard Building Contract With Approxi tities 2005
ICEConditions of Contract Measurement Ve ion Seve i~tion
(September 1999) 13
ICE Conditions of Contract for Minor W itio`(200 221
JCT Measured Term Contract 2006 Edi 227

10 Traditional procurement: cost p 237
JCT Standard Form of Prime Cost C tract itiori 239

11 Design and build procurem 249
JCT Design and Build Contr ;t 2005 251
ICE Design and Construct C nditi ns o Contract S ion (2001) 265

r
W
Build (1 273
GC/Works/1 Two Sta Des (1999) 273
12 Management pr urem emertrrorms 279
JCT Standard For of M ntr1998 E 281

JCTWorks Contract nd 2 and 3 998
Standard Fo trac 292
JCT Contt greeMent C/ 297
JCT Trad 307
13 Partn partneringreements
W
313
Framewo A) 315
Fra 315
Par:`nering Option 318
dard Fo rfi act for Project Partnering PPC2000 321
335
347
349
6
Foreword
This is the fourth edition of the popu 989. Since

that edition the book has increased Sid uge growth
in the number of standard formsth 15 contracts,
whereas this new edition inclu ed to cover the
new 2005 suite of JCT forms,. an lished at the time of
writing (the cut-off point opular ones are all
included. In addition the b er publishing bodies,
for example NEG and the Cl
The first three editio by Stanley Cox and Hugh
Clamp, and much ers has been retained, as it
is still relevant toda been added to include recent
developments and ocurement, together with a
chronology of contract.
Sarah Lupt
7
nal
8
Introduction
The last twenty-five years have seen f standard

forms of contract available for use in th ts. The wide
range of forms currently availabl of invention,
development and refinement. first 'Heads of
Conditions of Builder's Contrac BA with the London
Builders Society. Subseque tions of Contract in
1895, intended for tradit ifty years, there was
effectively only one standard his document has been
revised, expanded a ew editions, its current
manifestation bein the 200 ndard Building Contract,
available in three v riants.
In 1945 the Institut Engineer u andard form, the first available

for use on a r t on measure men basil' The first edition of Keating on
Constructio Contr' ad e r rence to b( h the ICE and the JCT Conditions of
Contract d, to the e r Hu on's Building and Civil Engineering
f-1
Contrac provi legal corn entary on the interpretation of these

forms.
es follo ng th ecb
World War there were extensive changes in fl,
in stry, u ing fro
an increased volume of construction, new
olo and new m thods of working. From the 1960s alternative
in-
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
,--r
nd build procurement, the Intermediate Form of Building

form of Management Contract, and the Measured Term
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
l0_
ICE wen on publi a further three forms, including the New Engineering Contract
,-4.
in 199 . FIDIC pu ished its first form in the 1950s, the Government published
L(1
((DD
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
9
Introduction
-+,
integrated ways of working, fairer tendering, improved payme t pro duress
rapid resolving of disputes by adjudication. It stressed e plZnsof 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 ns. It laid e fo o
°-'
d i
for new thinking about procurement, the pl ce of p neq, an he enefits f O

.-+
long-term relationships.
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 real l fficiy.
icu it stressed
the need for improvements in con on sts, 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 he number of
site accidents. The idea of g a n a re
rmanc me u re
i
nt indicators and
vii
er
benchmarking as aids to ach ving plan d an onsis t ro ment, reflected a
i
changing climate of opinion on pr ent.

These two reports, together ith rt II of t srn hts, Construction and
lowe as a dir t res It ofthe Latham Report, have
.-t
Regeneration Act 199 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.
In 1998 the Joint Con acts Tribunal ecam body with a distinct legal persona, The
Joint Contra ribu -
and a egiste db ness address. Its immediate concern
0QrCo
L' I
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
fl,
resulted in t F- u blic ion of 1998 edit of all its forms.

In 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
,-+
st
0 ner/ ccu r, an e ontra for Repairs and Maintenance) took account of

fl,
fl,
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
fl,
fl,
documents for u tion management procurement.

.-+
0rl-
At around this time

,-,..-+
era her publishing bodies produced new contracts. The ICE

ova
publishing the third edition of the NEC form, considerably expanding the earlier suite.
fl,
fl,
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 s ndar' o uildi ract

emanating from eight publis ing sources J w p is'hA
contract, including variants two evrk a e ent ph
contracts, warranties and gui Pro Advisor e Civil Estate publish
around 15 forms, including riants, contracts, plus the NEC
suite of 23 documents, and ACA including PPC2005. A
s,
list of contact detail bodie appendix A.
Figure 1 .1
Chronology of dev t of stand

Dates show:
first pu icati,on forms-(r luding

first ions ks and rep
ound of in itutes a
18 8 tit of Ci Engi eers

1 34 Roya ute o
ns itish Ar itects
870 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
09 RI=,o itio of Contract
1931 tra s Tribunal
RIB Sta dard Form of Contract
r+..
1939 Stan and Form of Contract

1945 ICE Con itions of Contract
1955 on Building Contracts
1963 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
1967 JCT Prime Cost Contract
1968 JCT Agreement for Minor Building Works
11
Introduction
1973 GC/Works/1
The first government sponsored standard uildiw co
Dog
;::
1973 Association of Consultant Architects (A
1979 JCT SFBC With Approximate Quantitie
1980 Standard Form of Building Contr, ct
.-f
JCT
Six variants, private and local auth 'city
1981 JCT Intermediate Form of Building C trac
1981 JCT Standard Form of Contract racer's D
1982 ACA Form of Building Agree nt
1987 JCT Standard Form of Manag ent Gontra`
1988 Construction Industry Cou (CI
pan-industry forum repr entm e built

1989 Which Contract?
1989 JCT Measured Term
1989 Association of Con Utant ArE
Amalgamation o the F I itect
Construction Surv ors I stitute
1990 GC/Works/2
1991 Reading Co tr oru
1992 Private Fin ce In' introd
Emphosi on red to blic seMTor borro
1992 ICE De gn and ons u( rtions of Co
(governm t dec
1993 G sign and
1993 first edi
1994 onstrung th
it Mi aelIT tho
,sting earn
âgConstruc on Forum -6 best practice guide to partnering
V)+
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
throughhe-IC
1995 sec ition
1996 Housin Grants, Co
1996 Partne in the
CIB
1997 Election of Tony Blair
PFI emphasis shifted to 'value for money'
1997 Lean Construction Institute
12
Introduction
1998 The Seven Pillars of Partnering

Reading Construction Forum
1998 JCT Ltd formed
1998 JCT standard forms
Revised to comply with H CR recom
1998 Rethinking Construction
Government sponsore revs indu
amour
=ti
identified five drivers or ng

which was partneri the supp in
1998 Movement for Innov 'on (NN
Established to ve e i le of
recommendoti
1998 Construction Best ctice
Working a CPB
learnt fr ons ation roject
1999 JCf Buil t for Ho Owne
1999 Achievin ence launch(
Govemme 6onse to E an, r4cus
lent, ving th effi
Guid t Tea r ering
CIC, c tain. ted heads of tJ
editio 20 2
del P oject P.
win Prime tractor Handbook of Supply Chain Management

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 r
Introd es rtnering framework for the Department of Health and the
NI
New part ering contract published by Association of Consultant Architects,

veto d by the CIC partnering task force
2000 GC/Uorks amendment
Supplemental clauses: risk assignment, value engineering
2000 Confederation of Construction Clients (CCC)
Formerly the construction Clients Forum, aims to encourage clients 'to
achieve value for money through best practice'
13
Introduction
2001 JCT Practice Note 4 (second series): Partneri
f_1
2001 Construction Clients Charter launched
Construction Clients Forum
+''
2001 Strategic Forum Replaces CIB

2002 JCT Building Contract for Home Owner/occ ier'With consultants agfeeergen
2002 Accelerating change
Strategic Forum. Sets out measurable rg ' g p erlorman
+,+
in
LL.
construction, including client em %t1o egr ng e teorr)l and

tap
people issues
2002 JCT Contract for Home Repair'
2002 JCT Construction Manage
2002 Architects and the Chan
RIBA
2003 Be (Collaborating for
Reading Constructn Forum erg with sign uil oundation
2003 Be Collaborative c ntracta ing Con uctio oru Working Group 2
2003 JCT Major Projects
+.,
2004 Constructing xcell

Includes: R esikq, Bui Foun tion, Construction Best Practice
iii
Programm Mli, e sing, ethin ng Construction, Be, LGTF

Construc
2005 NEC3
ORice of vernrravft Com erce recor sends the use of NEC3 by public
sect tr tion proc ers on hh' construction projects
2005
2005
2006
by Constructing Excellence
20W JCT)Cons fiction` ,:ccellence Contract (forthcoming)
14
The term 'procurement method' network of
relationships which are forme construction
companies, to enable a buildin ese relationships
--K
are formalised by entering in ateral (ie with two

parties), but are occasion y m Often 'chains' of
n-0
contracts develop, for ex ple c ervice-provider-main

contractor, main contractor-so ialist- 't-sub-contractor, sub-
contractor-supplier. u pN cha coined to describe this
relationship, but in r pa-1em is o en mo ely described as a network.
V),
In any given project en there will ally b network of bilateral contracts,
with each individual into sever-ar
It is important rac al re tionships from managerial links, and
in complex odern rocur m this is ometimes far from easy. A contract
.^-+
is usually f rmed onal offer unconditionally accepted (for a full
i
explanati see a nt led ch as F cus on Contract Formation). A legally

binding cont ct doe not h evidenced in writing, although it is good practice
to en is. Amo gs, legislation such as the Housing Grants
(Co enera Act 19 6 only apply to contracts in writing. It has
b the constructi on industry to use standard forms of contract,
a itten cume s are equally binding, and are often used on
larg glow).
ArcWii professional consultants will be primarily concerned with two

e ries of ose under which professional services are provided and those
tion ork is carried out.
Although different i ppdse, the two categories are essentially complementary. The
hori bli g tions of the professional acting for the client during the
and
S'^
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
r)'
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.
15
Thinking about contracts
Contracts for professional services

Leaving aside the fact that many architects offer Vage il ls t alv
directly building specific, it is for this latter rd re mmis r
Nowadays, architects increasingly find thems provid itial on
partial service, or a service which is not 'tradi onal' i nse th they/(night
be the lead consultant. Sometimes they s rt out a
l/)
eventually becoming part of the contracto ' o ssi to

au,
gladly rise to the challenge of an entre re eve

`-°
le
ti
suited to a construction management r le. But wh
0-0
services need to be covered by an ap,r op to c tracf
Some forms of appointment may quire he nature of

rte,
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
It might be that e app ntm
d is co
t
atib wit the procurement method.
p to a defined Plan of Work ti-
'-'
stage, and will n -d to ende 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
vii
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.
ntment is f r services as dsub-consultant, it is vital to check that the
eement k-to-b k form as far as terms are concerned, and that the
+-C
?gin
IS i
patible with those of standard RIBA forms of

`+-
nditi
-+,
o refe bly
poi*Qe dition forms are proposed, whether these relate to

eying charters or col anties, then a careful check is essential to ensure
o.-,
C3)
tobligati s e no more onerous than those which arise from the main
uilding
Building construction -to-day often entails complex and intensive site operations, with
ate.
huge sums of money locked into development programmes. Contractors may have
partial or total design responsibilities, and in addition may undertake demanding
C3)
management and coordinating roles; patterns of working have never been so diverse.
As outlined in the introduction, this change of emphasis, together with the
16
Thinking about contracts 1
increasing range and scale of work, has inevit rto a pros

forms of building contract, both standard se dried.
There are many advantages to using orm of tuildin

normally be less expensive and genera more co ern ttoa
fl,
to arrange for one to be specially draft
(<D
relevant guidance, which is in tur ritati
through having been tested in courts:
For the majority of building ave a stated role,
fl,
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 i 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
3'<
(<D
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 of n eased in op rity Ever recent years. Although not
offering suc an ext ran 9, these re o en flexible documents that can be
(CD
adapted to uit a r u msta n ,fore mple the NEC suite of documents.
n.,
rt recom 'All parties in the construction process should

use t 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.
bst of t
F).
en be reflected in the tender. It is sound advice to resist

,-r
T e I
Iter tt nsart ndme s wherever possible.
Non-standard a
there ay instances where no standard form of building contract fits the
ui 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.
CI-
17
Standard forms of contract are drafted taking int era

Ulpt I g ba
common law and statutory rules. It is generally usef ersta.Rd th e rule ,and
they give insight into why many aspects of a for en
way, and aid the interpretation of these forms.
The Sale of Goods Act 1979
Implies terms into contracts for the sale of goo regarding ith
description, quality and fitness for purpo àid s amp ction
14 implies a term that where the seller ells go the rse i and the
buyer, expressly or by implication, mak kno to 41. elle pa purpose
for which the goods are being bou is a e con iti th the goods
supplied under the contract will be. reason for t urpose. I rcu mstances
in which these rights can be exclude are li ed b
Applies to contracts for w rk and na erials, tracts hire of goods, and

contracts for services. Impl term into contracts fo :work d materials' equivalent
._-+
to the SOG terms listed abo wit respect in t(
hich the property has
been transferred uncle, th act. service ct implies terms regarding care
and skill, time of pe orma
7c-
consi
raises
Applies where wo is ca r+ out i connect th a dwelling, including design

work, and st person t ing o in connection with the provision of
a dwelling %to see e wor which he takes on is done in a
workman ofessio al manner, with proper materials and
so that elling wj befit for habitation when completed.
's has the ffecf ng various exclusion clauses void including: any clauses
cludinaJi ilitv for ersonal injury resulting from negligence; any clauses
em in exclud e of Goods Act 1979 Section 12 obligations (and
quivalent under the Goods and Services Act); any clauses attempting
r+.
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.
18
Unfair Terms in Consumer Contracts Regul

Applies to terms in contracts between a s r uppr ds and
services and a consumer, and where the ter Zten i dividua tiated
(this would generally include all standarr :onsum is defies person
who, in making a contract, is acting or pur business'
which would include a home owner: n ' nfai t causes a
significant imbalance in the partiesi-sights t detri er, and the
regulations state that any such t ing mer.
.-+
e
C
The Housing Grants, Constructs ege-r otidi ct 1
Requires that all constructio con Iling in the dii

h in the Act contain
certain provisions including e righ stNe p ts, th right to notice of the
amount to be paid, the right end non t, and the right to take
any dispute arising o of th e n t r ttoa ion. the parties fail to include
these provisions in t eir con trac , the Abt,will to provide these rights (s.
i
114) by means of he S em for Const ction ntracts (England and Wales)

Regulations 1998. e A t is of b r but does not apply to a
CD)
construction c ith esidenti oc
Provides f r inter e on the late payment of debt in a

purchaser
commercia su of interest is set by Order
ervices. The rate
of the Secr eta f State, th curren being 8 per cent per annum over the official
deaZcy
g rate. I r ossibl de th right unless a contract contains a 'substantial'
re for late p (mos sta n rd forms contain their own remedy).
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
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
a-benefit on the The third party who is being given the right to enforce
.
the contr+ust her identified in the contract as a member of a class or

rcula description. The contract may expressly exclude or limit liability.
c Contracts Regulations 2006

Sets out for public procurement of contracts for works, services and
never- s
supplies. These Regulations implement the European Commission's Consolidated
E
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

In some procurement contexts, the choice of contr, ct may/be d erh
fl'
factors, such as requirements of the funder. For ex ple th rld B Ak now quire
vii
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.
However it is frequently the case that here th ite
,-+
ovi essional
m-0
0-a)
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
r^+
Edition, 1970). These words mig our the ma of architects

today, and it has been said that the b t cour aive t an gainst' leaving
fl'
fl,
the Employer to make the cho) t rsem many JCT forms

,-+
n,3
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 lished a ctice Note: Deciding
on the Appropriate JCT Fd -m of Main Contrac early written with the
interests of the clientin m ke Practic lated diagrams can be
downloaded from th
,.+
ite.
There are very fe case record / w

of an -&r hitect being successfully sued for
V
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
((DD
forms of contr. d to be pu ished t,
timn
eep them current and consistent. Just
keeping up to daf such n a taxing business. Also, there is
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 luencatters.
form
Archit
d and vheth r partents
Advising on the edition of a
are to be incorporated extends
are in carrying out this duty and requires a thorough
,C+
fl,
th
k owledae a rt.
visi orms o likely to be easy in the wider European context.

(D
ems can arise in co' he meaning of provisions which may have been
nslat ay be subject to interpretation under a different legal
hich
a`)
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
.-f
a-*
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
E
forms specifically for use under Scots law.

Recommending contract for particular set of circumstances not something to
E
a a is
fl)
20
be undertaken lightly: it requires a knowled d me odic

contract in question should first be studied bot res
and conditions, and also for its appropriat he own ircu
There are stilla few architects who min* i bf con
referring to the importance of trust. T ey bla Dest ki
being the one which is put into the dra e r and on
An appropriate contract, fairly an44; mly milli terel
ensure that things do not go wr e!
Despite the Egan Report's state ambi n t

Oith performance
rukpla
measurement and bring reli n rmalZcuments
, for most present
situations the cautious a ice m a n rver prd on the basis of a

i
'handshake' agreement. Mil t cane enieh an a osphere of trust and

confidence is desirabl ' to ome rstanding' that has not
been fully document and prop rly e cuted' tp ple can have genuine but
quite different uncle stand f what
i
As architect Ronald G en o ce p ointed itect's Guide to Running o job,

Architectural P (19 difficu' entleman's agreement is that it
depends on e con ue exis to e of tlemen'!
h conside&ion t contrac and choice at the earliest possible time.
ntracts pro ssiN al services and building contracts, although

r
iplica for ea
n other. The method of procurement has
d documenta ion.
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

ement exe work starts.
Recomme e us f ``t ndard forms of contract whenever possible.
If particul irc msta ces require specially drafted or extensively amended contracts,
tial that leg advice is taken.
Before 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.
21
22
Establishing a con
profile
There may be clients who choose t

increased efficiency and think that, it is
at breakneck speed for a knock- rice,
be dispelled at the outset.
The reality is that although t s for any client are
usually cost, time and qual ,the nt invariably calls for

some compromise or consci s bal This need for careful
balancing of priorities ecog n r&ed in or example the useful
Constructing Excelle e fact sh urem es adequate thinking time
and careful though
whe visual pres such management tools as
anc ndicator and as become part of life. To some
((D
all this mightj st b ra ' rgon, k tfor' n increasing number of construction
professiona so-O eful reminder of key points to be
(DO
a u
considere 'and c ecorded. Ther fore it might prove an interesting
exercise t set u p
any propose
the
unt
alance
f r a gar
ct.
prior
cry
Th'
or
could
or
simi
be
r
example
iE
diagrammatic
simply a
what
manual
level
analysis
exercise
of
in advance of
quality
to help focus
is required,
ho much tim ilable be re con truction and for operations on site, and to
fl,
respects cos considerations are paramount.
als suggest where design responsibilities are to rest

r+'
rofile ges mig

dthe most uitable procurement methods and construction
lure turn will affect tendering arrangements and the amount and
t of iaton needed.
ich presents the three elements of cost, time, and quality
fl'
re 2.1 isarr
in terms of contrac s. Evenwhere they are not in conflict, these elements need
ncP an ideally balanced. Asking the right questions at the right time
visu I profile which allows quick comparisons, and help in arriving
propriate c tract.
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
2 Establishing a contract profile
Priority (0 lowest-5 highest scale)

1 2 3 4 5
we ossible pital expenditure
C2 Certkty er co tract price, no fluctuation
C3 st val for oney overall
TIME T1
T2
tI est po Bible start on site
Certainty,/over contract duration
T3 S o est possible contract period
QUALITY Q1 Top quality, minimum maintenance

Q2 Sensitive design, control by employer
/I
`D-
Q3 Detailed design not critical, leave to contractor I
24
Establishing a contract profile 2
In this country, at leastuntil quite recently, facto building

contracts. The repercussions are well kno Des .
nefs h e oft ubject
to unrealistic cost constraints from the et, ometimes e en fail' nguish
between initial capital outlay and to os The q ntityurve s role has
assumed greater importance becau dr
strin`nt
contracts
fina vial control
throughout the project. To man s ave seemed
h(0
attractive because they promise ost tertai v. Desrtln and build or

fl,
management contracts have en let on rte. usisvT',a

sum, although the design Ofor motion ' no
tendering. Despite the con le ri s wh ometim a`lte
all too frequently the lowe rice minis
Now the emphasis ap hiftih
greater efficiency r ulting in I
being encouraged.
It is particularly imp rtant clarify so considerations, by addressing

such questionVtothe ient the outs' e the lead consultant might wish
to raise:
"set li Contract Su
e clien height àve lirnite unding and require the reassurance of a 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?
at the client has to rely heavily on some 'once and for all'
r"nal sour or other funding, and there may be conditions attached.
Is the co-r9ract awarded to the lowest tenderer regardless of other

ration
for money will not always be achieved by this process. Designing
a 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.
Q. Is
when pricing?
Comment: it may be in the interests of the client to forgo cost certainty and accept
25
Z Establishing a contract profile
a price based on known factors, assuming that fair o

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

accounted for?
Comment: public bodies in particular are
are also understandably sensitive about ny aHegat1Rns4ubi
Q. Does the client have rules or sta kng or ers -toich

competition when sub-contractor. lierse invited
Comment: commercially minded Tents edobe derri
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 c
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 ercl restig and public image likely to influence

the degre
Co s have a hose style which expresses the efficiency or
m `rket-com nd ce of the company, and which they would wish to see
their bui
Q. Is i implant to use high materials?
Co m yent: for example,
: 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
Q. Is this a listed or building where alterations or extensions will require
higher than average standards of craftsmanship?
Comment: it may not be possible to establish how much work is likely to be entailed,
O+,
or to describe and measure it before opening up. Yet control by the client as work
rya
proceeds is essential, and any body responsible for funding might impose conditions.
26
Establishing a contract profile z
Q. Isit essential that all matters of design ?&icatio are ly

control of the design team, and that sp s or
named or otherwise selected by the ch
Comment: where the architect is lead ponce o an
contrary, this is likely to bring at first tans i ibility. ven
work is to be undertaken by others, t e respons din ion ar
into the overall design will remain wit he3ead
Q. Isit safe to entrust certain d ign to
(with agreement to sub-let) ithout th lit
-n'
-;'
being impaired?
Comment: unless a cont ctor n obkiq tion is y referred to in the
building contract, this is un ly to ied u e andar forms of contract. Even
where the contractor or sub-c6 ractor nsib e design input, it might
be essential to make provisi esigns bmi to the client before work
is actually carried o
Q. Is the building int ided to be relative ce-free?

an at inable aII 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?
eed fo sucf; event aliti be rammed at the outset?
iii
ood com ercial e e for the client to provide for a constant site
nap
motor th cont ctor' ontrol of quality?
rpm
cont t allow for this, and if so by what means will it be
ht 13e, expected the contractor in terms of quality management
:e thro rel ant KPI information?
song he work only be performed by a firm with specialist expertise?
ment: 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 i
and possibly to specialist design input. It would probably affect the

,_«
iarodu n o Nnfor ation. It could result in appointing a specialist firm as the main
ing neral builders' work to be sub-contracted.
Quality and speed are not obviously happy bedfellows. Where fast construction relies
°-o
on the use of numerous prefabricated major components and systems, much will
depend on whether manufacture has taken place under monitored and controlled
conditions, in order that specified performance can be guaranteed.
u
27
2 Establishing a contract profile
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
`°m
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 on si sable.
Whatever method of procurement is ad pted, it is rta alto nt time
for all the relevant matters to be properly side at tyre- o ract 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, strua fail
time. Predictability is an im for mos
Time considerations can sig candy affect t
explored thoroughly. e, thlead cd sulta`rat m
questions such as:
Q. Is 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
submitting rsu price. nythi ig le could bring the uncertainty of
rim
remeasu re e eve rapid lion being required, say in the case

of restori hand-to-m th approach might be unavoidable.
Q.
mpletion to be an overriding objective?
ment: as boa ht be an overriding consideration which justifies the
liest Dessi e start, ting the probability of some uneconomic working.
Q. they commen 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.
Q. Is 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
A-+
contract conditions as a programmed requirement.
28
Establishing a contract profile
('1
z
Q. Is it desirable to phase possession by

parts of redevelopment of the Works, in rder t at
an limit '
bass
tove
con ue during
the building work?
Comment: during redevelopment with' si is it esentia to co oi'ing 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 i 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
some allowances may be nee
29
enal
0
Which procureme
method?
In some instances the procurement m thod wil ready bee( decide,

architect is appointed, either as the resu of mpa uthority laid
or because circumstances or co tra s ve
I lirri tions,
choice has already been made `y the clie a ise a le su
the Architect.
It is generally accepted th ree ethod curement currently
practised in this country. Th raditid onv ti al app ach, in which at least
in theory design and constructi epar ents, design and build,
which implies a mor integra ap roach; nag ent, by which either the
1
ial
client or a contract r assumes he cen responsibility. There are in
addition many varia its, h rid and compnc hese methods. Moreover there
have been many r cent developm s, w Ithough possibly termed a
procurement mig more cu ra described as an approach to
procuremen For e Cam e mo part ring arrangements are an over-arching
agreement hich comDa one or er co tracts let under one of the three key
methods. imilarl is it is freq ently possible to identify contracts let
on a desig sand b ,nageme It is therefore useful to start by clearly
(DD
differe e three prj cipal i ods, before moving on to discuss some more
rece
r+.
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
+-V
and wh sponsibility for design is to be placed, how the

±-'
ated, and on what price basis the contract is to be awarded.

,-r
remember is that the choice of form (or forms) of contract

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

t at arrangement, and lastly detailing a method of joining or
realise
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.
It is important to establish:
how, if at all, design responsibilities are to be apportioned between the Architect as
31
3 Which procurement method?
lead designer, other consultants, the contractor and t

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

+(O
It is important to establish:
what contractual arrangements will ap fort

whether the Works are to be car, i c
combination of separate contracts either
A contract might be let on t e basis of not possible or

,-+
sum is
i^.
desired, then measurement o som option.

inly practical
Alternatively a cost-plus app ach ight be appro altho h there is the risk that
the final figure could di gr tly fr' m the fire! The questions of what
tendering methods ar sui and what ocuments will be needed, will
rest on the choice o procu r men
Plan of Work
The procurement thod fbe ad typeof contract will have implications
,-r
vim,
d a d
fl)
for the 'plan is logical n f

roject into stages was devised by the
RIBA inthe 960s an ince be accept d throughout the building industry.
The Outli e Plann Work move from re-design stages (Feasibility) through
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 Ives very usef description of work stages, particularly in traditional
I
m thods of procu ent.

e appointed professionals are involved throughout
fro
but the desi uction work stages are separated as is usual with
i,Q,nal procure is in a linear pattern (see Figure 3.1).
Itho gh similar work stages are still present, they are not so
r will normally be involved at design stage, to an extent
he contrac
muc he is responsible for scheme design as opposed to
t.0
Q-0
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,
,O+
permitting parallel working or fast tracking to save time overall. The contractor will
((DD
normally continue detailed design during construction stages (see Figure 3.2).
Plan of Work is still relevant to management procurement, whether management
32
Which procurement method? 3
contracting or construction management. nu re

simplified picture of operations. On a large roject ere ,bight; le,
or more works or trade packages and t operA n cz beco
complex. There needs to be considerable 7b oratii tw
consultants and the managing contra allel vv6
and abortive work can easily occur.
Procurement using traditionaleth

In the traditional approach, th client a th ons appointed for
--0
design, cost control, and con ct atminis` +-- ion, d t the contractor is
responsible for carrying out Th onsibili atter extends to all
u..
workmanship and material inclu rk b contra and suppliers.
in some cases the client will sele some s to be engaged by the

contractor (variously r erred -t ed, n re-selected). In such cases
the contractor may ake full res onsibiNY- for t ance, or the contractor's
responsibility may be limite me way, in hich e a collateral warranty between
client and sub-contr ctor ill be esse con ractor is usually chosen after
competitive to nd o uments ete information. However, the
contractor ca be a e d ea r, eit ugh negotiation or on the basis of
partial or n 4ional i
t sing o stage endering or negotiated tendering, is

erred IV as thee AcceI ràditional Method'. By this variant, design
an run i parallel' imited extent. Whilst this allows an early start
cost.
m approlrr quires the production of a full set of documents

vited. Adequate time must be allowed for this.
raditio ment method assumes that design will be by appointed
vii
E
nts, of generally imply that the contractor has any design
n
-t,
oiigations. If th e case, for example with specialist sub-contract work or

erforma k, express terms should be included in the contract.
oints consultants to advise on all matters of design, and cost,

y retains co trol over the design and quality required.
--c
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.
The contractor depends heavily upon the necessary information and instructions from
(-r
Q-3
the architect being issued on time. There is a risk of claims if they are delayed.
E
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
If it is impossible to define precisely the qntit

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
1 AB
3 F
4 5 H
6 J
7 K
L
Consultan s
Contractor
Key
1 Appraisal and strategic briefing work by consultants
2 Outline and detailed proposals by consultants
3 Final proposals and production information by consultants
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 ments and
costs, if he does not have this, contractor is
responsible to a greater or lesser g out the work
and may appoint its own consu fc,'r'total design and
construction, or for design ation based on a
scheme design supplied by
Figure 3.2: Plan of Work sta
Pre-design Desig XPre-nstru-'o Construction
1 AB 2 C
D 5 H T__ E
6 F 6 F
7 J
8 K
L
Consultants
Contractor
Key
1 Appraisal an tegic iefing work by consultants
2 Outline proposals/client's requirements
3 Detailed proposals by contractor
4 Tender action including contractor's proposals
5 Final proposals by contractor and specialists
6 Production information
7 Mobilisation by contractor
8 Construction to completion and after completion
35
-0O
The contractor may be appointed either by comp eti veent t
+-I
ten er or the
T-0
negotiated agreement. Where a design and build agr, errs
,.+
ne ate c
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 I
usually results in a more developed design and cost and timid
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
i
tra is entered
fl,
into. This process is usually referred vati r co ulta t itchi, t requires a

complex tripartite agreement to ee
c
sultant and
,-f
een cli
E+-
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
collateral warranties.
Watchpoints
Inthe most straightforward de 'gn and burnt
theory there is usually
a single point of respo si ility. he cli t there re ha thevantage of only one firm
15.
to deal with and -

e fi rm to me ings o wr ng. In practice, however, the
i
client's requireme s are ten de led to extent that the contractor's design
contribution, an theref re lick lit, is diminished.
The client lacks c trol or detai ects T design; however, this might be
acceptable road lin eme are satisfactory and the detail
relatively le,
Constru early as a reat deal of detailed design work can

proceed contr, ctor, however, who benefits from the
opera
ponsibilit on time rests wholly with the contractor. There should

littl allegations that information from the client is late.
is oon ation is
on t h c
one of the
to be responsible for the flow of his necessary
active features of design and build.
There 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'
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,
+.V
it is always advisable to ask for information about who the contractor intends using as
E
designer. Adequate professional indemnity insurance should always be a requirement.
36
The client should appoint consultants to advise pTeparatTaQ OT t req
-.0
and it is important that adequate time is all hese a-be oerly
The requirements might include specific ?fovisio
generally it is prudent to prescribe pe that a/
,--t
reliance is placed on the contractor.
r-r
-6'
In the absence of any stipulations to the

are absolute. However, they are u
of the professional's duty of us g reason le' kiIIX)-4 carte
Valuation of changes by the rsentir' the rr pon`sftkty o
the client has no quantity s erve
It is oftendifficult to evalua desig ectively where both

schemes and prices ar ender Id be med of the criteria to be
.-+
used, and whether ice is likely e pri ider, tion.
Benefits can arise fro desi neN and estim to work closely together. The
contractor's awaren s of arrent mar and delivery times can ensure
that a contract oth Ieconom
, al editiously.
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
,-+
9-'
r, dep on t ork, a clerk of works. The extent to
x-r
of th
tis e power, d to for e client needs to be clearly established.
ral v ian of managem nt procurement practised in this country, but

,-+
,-+
T re are
nage nt ontra is an onstru ion management are the two most common.
it ent ntracts lent usually starts by appointing consultants to
.3+
.-+
ana
=+;
v,'
are ro ject dra tings and a project specification. The management contractor is
seec td by roces f tender and interviews, and paid on the basis of the scheduled
e es e sts an management fee.
Its role is literally nag the execution of the work, and he is not usually directly
.-+
,-+
t a of the construction work, which will be done in 'packages'

7c'
involved in g
(.0
un en or ks ontractors usually appointed by the management contractor.

In some o ment arrangements, the management contractor might also accept
Q-0
a design ability. In ' management contracting', works contractors are directly and
contractually nsible to the management contractor. Its coordinated approach
,-r
and potential for flexibility results in greater operational speed and efficiency.
Where the management contractor's obligation is total where, that is, it accepts -
responsibility for both design and construction -
the arrangement is sometimes
(1)
referred to as 'Design, Manage, Construct'. It is usually featured as a contractor-led
37
procurement method, but there is no real reason t anno quail weft

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

v,'
is usually a lead designer responsible or o esi a c anager

responsible for the management and c ordination rk, ponsible
0-0
for directing the project and entering tra ontrs. contractors

are directly and contractually respo clie e constr anager is in
fl,
some ways less accountable for time gist the'd takes the greater risk.
Watchpoints
Management procurement methods a ebest ited t
projects where early compl Lion i able.
This method of procur ds upon ig f confidence and trust.

There is unlikely to be i cont t pri before the work actually starts
on site, and the d ìsion t s go ead ally as to be taken on the basis of an
estimate on proje infor atiork
The manageme contr toVconstr ction
therefore put the cli is interests irst thr,
It is essenti anag"e contr for/construction manager at an early
stage, s edit and experti are available to the design team
throug tion per)
onst
work care
CD-
left to proceed in parallel with the site

-+,
'ration's ackages, thus reducing the time needed before the project
arts on sit atdeal of detailed design will need to be left to specialist
b-c
lient has a consider be of flexibility on design matters. The design can

usted as proceeds, without sacrificing cost control. However,
wore for components or elements can be difficult, with an
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 ex
that only large construction firms 'th the nce re lik
suitable. At present these are relat ely i
management is only likely to b int est'Ao ex rien
-+0
expertise to undertake the high egret

A management contractor's sta ay la the` e ess eri ce and have difficulty
in adjusting to the idea of a s le vvork- ofi motive in favour of
fl,
FtRq
providing a service in t th nt. Be r6' recommending the

appointment of a managem itise It interview the key staff
+'O
e
involved.
Above all,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.
Wor*,,stage's a age
Pre ign esign re-construction Construction
1 A 2 CD
3 5 J
4 EF 6 EFG 6 EFG
7 H
8 K
L
Consultants/Managing Contractor
T
Managing Contractor /Works Contractors
I
39
Key
1 Appraisal and strategic briefing by consultants and contractor
2 Outline and detailed proposals
3 Appointment of contractor and agreement on trade or works a
4 Final proposals and production information (continuing pr,
5 Mobilisation
6 Production information and coordination of works pac
7 Tender action and adjustments (continuing process)
8 Construction to practical completion and after co
Contractual relationships
The pattern of contractual and func fta tionss shifts or cording to
the procurement method adopte 11
Figure 3.4: Contractual relationshi 0 traditiori
(lateral e eem arranty
Collateral
-aqreemen
Contract for ant
services
nt cted Client selected

sub-contractors suppliers
uilding
co act
Consult
tractor.
Domestic
sub-contractors
suppliers
Inthe 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
40
for sub-contracts or sales contracts will be b)6tween he co actor

question. The consultants have no contract link th
I th,ntr
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,
particularly in respect of matter rqh
ie idhe ntractor's
responsibilities.
Figure 3.5: Contractual rela
Consultants
sign
) ild
Sub-contractors
suppliers
Contract for services
With de gna d buil , it is likely that in the absence of in-house professional staff,
'm'
the clie will wish o engage outside consultants to advise on the preparation of
r-.
requiremen to evaluate and select tenders etc. Often one or more of these
r+'
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
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: nage epa proAure
management contracting
Ilat I agr en
Client
Contract for
services
ks
contrac s
Manageme
contra t
Works
tract
Consultants
Nominated/
Sub contractors
domestic suppliers
42
Figure 3.7: Contractual relationshi

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

{ with all works contractors in direct relationship with
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
-p'
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
In every
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
43
obligation to take out the cover required (for exam againjA pel on
damage to property due to fire, storm, water, collap encepyibra` Qn, et
Another category of risk is fundamental risk. This ill inc e amag due war,
fl,
nuclear pollution, supersonic bangs, etc. Such in is re all t e sub' ct of situ
liability, and no insurance cover is normally av able or n ded. T -third cate
(2'
often referred to as speculative risk, is somethin which ca ortioWin adva

as decided by the parties to a contract. T, include nr
ses ' time or
which are the result of unexpected groun con
unforeseeable shortages of labour or aterials,
a erse w.
%hl
Lt
beyond the control of the contractor, It sen to out
-+,
bear losses arising from such event

With traditional lump sum contracts t intent at sually be a fair
balance of speculative risk be arties' alan be adjusted as
required, but obviously the reater th e` risk`t be a by e contractor, the
higher the tender figure is kely to I -he app ionrri `sk accepted by the
parties also varies considera ending on the ty of co ract.
fl,
As can be see from Fig lance o pec tive-,rAk will lie almost wholly
with the contractor i the' se T a a buil contract, where a complete
package is supplied onver -ely, te e
al ance st on ous for the client where the
management pro reme pat is o d.
44
Figure 3.8: Speculative risk
Contract Type isk
Client ont ctor
Design and build

Complete 'package' by supplier
Design and build

Design input by contractor
vii
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
0
45
Figure 3.9: Comparison of procurement metho
Speed Complexity Y Qgr'ahty Fle ility
Not the fastest of Basically Clie requires Client c rrKrols

methods. straightforwa c ain ndards desig and
Desirable to have but complicai to b ow or ions to
ri
all information at can arise if clieri scribed large extent,
C51
tender stage. requires III
con ctor is
Consider two certain olly
stage or sub-c tractors nsib fob
negotiated are useo. achie th
'06
tendering. d quality
Relatively fas n efficient single lient ha Virtually none for

method. ontractual dir t contr the client
,7+
.-r
Pre-ten time ar ngement er th once the contract
,n.
large) dep s integ ing o tractor's in'
is 'in
signed,
e amou t of without heavy
gyp'
on esign rmance.
fl-
a
de ail in th ruction actor's cost penalties.
,n.
co
ient's erti within )den expertise Flexibility in
sauireme accoun be limited. developing
.Q1
uction fime ganisatipR. Client has little details or

ecause say in the choice making
vii
design of specialist substitutions is to

b ilding l. sub-contractors. the contractor's
+L+
in p llel. advantage.
on site Design and Client requires Client can modify

is poss nstruction skills certain standards or develop
'_^
9
before ten tegratedd at an to be shown or design
have-even b early stage. described. requirements
invited r so Complex Managing during
management contractor construction.
C51
orks
packages. operation responsible for Managing
requiring quality of work contractor can
sophisticated and materials on adjust
techniques. site. programme
and costs.
ICU
46
Certainty Competition Respo ibility Risk Su ary

14
Certainty in cost Competitive Can cl -cu
a
Generally air and in cost
(OD
i
P
and time before tenders are divi on of de n lanced etwee uality
commitment to possible for all an onstruction. arties. t the
build. Clear items. Negotiated Confu n eense of time.
accountability tenders reduce p ble ere
and cost competitive there is m
monitoring at all element. desig inpu
stages. m co ctor
or cialist
trac s an
r-+
sup rs.
There is a cult for the
a-,
Di Can be a cl r almost
n lie Benefits in cost
guaranteed cost clien to co t oily with the and time but
.-t
are divisi ,
and completion ropo Is whi con ed w re contractor. at the expense
date. inc de both the clie is of quality.
fl,
pri and d n. uire ents ar

D. ect d ' n a detailed as this
uild v ry di ult educes relian
t v uatefor on ctor
competitive ss. design or
rip
o benefit asses pert ance.

to nt if Limite role for
ntra r seeks the cent's
co ter
gre re esentative
com etitivene ring
for ecialist work construction.
a materials.
Clie is anage nt Success depends Liesmainly with Benefits in time

to
fitte co ractor is on the the client - and quality
o°°
start building on poi d management almost wholly in but at the

cost plan, be use o contractor's skills. the case of expense of cost.
rip
prod rawings man gement An element of construction

r0-.
o3,
and Specifi ti exper ise rather trust is essential. management.

fl,
only. tha because his The professional

fe is competitive. team must be
However, well coordinated
competition can through all the
c))
be retained for stages.

the Works
packages.
fl,
47
Recent developments in procurement.

Some of the more recent developments in procure outl' l l . 1,
in order of their appearance. The outline is very bri er etails eader

fl)
consult the references in the bibliography.

'Guaranteed maximum price' (GMP) cont
GMP contracts have been around for some pe *ng fl time
as the design build procurement meth , h ev re tly t ienced
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
sbe
for ac
o°+
cost incurred
plus a fixed fee, subject to an agree iling. re w a stipulated
0(D
construction cost are passed to (or iri ses ared) but the risk of
any overrun is borne by the ontractor. t exte ri assumed can only
rpm
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
or exceptional circu
initi ve PFI) w,' &s int the government in 1992 to

..6
enable major capita rojec s, to without initially requiring the input of

funde
Governmen urpose FI is'- deliver all kinds of projects to the
public sect. nstru of buil. ings and the provision of associated
operatio leas are
a funded nd operated through a partnership of
governor i' priva ector ompanies, sometimes referred to as PPP
or P3.
T reisawi but they have some
e way PFI projects are organised,
c mm to res. 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.

7c'
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.
In returnfor 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.
48
This payment is frequently above the price tha >u nc sec r coura<
the service. If the Operator fails to meet any, ree an ds it
lose an element of its payment until stand ove. sta and c
after an agreed period, the public sector a 2 led to erminate
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
turnover was spent on disp ort
of the client's role, the ne d for
procurement and contracts, tip
in laim
roveer mwan
kdd
asi d the importance
adversarial forms of
ctin s the team, and more
efficient ways of dealin tes.
Partnering
Partnering had alrea y em rged prior to 1994, given greater impetus by the
above report wlch ted e are c n fi t òrtnering can bring significant
benefits by im ro q lity timely ess o completion whilst reducing costs. " A
series of rep is fall 'ved cludin
i rusts g the Team -
the Best Practice Guide to
Partnering Con r u ctip lished y the R ading Construction Forum (RCF) in
1995; Pa nering ea iced by th onstruction Industry Board in 1996,
and in 199 he R follo up report even Pillars of Partnering.
am d g as follows:
d morageme t approach to facilitate team working across
O.2
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 a particular type

ent or procurement method, but an approach to
p curement, ai e t im roving performance over time, through team working,
early identf.i tion nd olution of problems, and measurement of achievement
0-0
obje tives. Many organisations developed partnering charters or

framewor men s, and some publishing bodies produced standard versions of
o-0
fl.
these, s ch as the non-binding partnering charter, all intended to be used

0
alongside a ing contract, which could be based on any of the three principal
fl,
procurement methods. One standard form, PPC2000, was developed by the CIC
Partnering Task Force, comprised both the partnering objectives and elements of
n_,,
design build procurement, and was uniquely a multi-lateral agreement (see the later
chapter on this form).
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
The work of the CIB was given furthe_r ,Construction
0-v
(DETR, 1998) prepared by the Cons

Ton
--I
n Egan. This
report echoed the Latham Report tion, and made
comparisons with other industries, sue cesses were felt
to be more efficient. It point tion in accidents on
site, and in the defects whi It also called for a
'"*
significant improvement erative methods of

procurement involving partri t identified five drivers
for change, and four process as partnering the supply
fl,,
chain.
The Movement d in 1998 to coordinate the

implementation of recommendations through: the use .--r
of demons ups and knowledge exchange.

Demonstr nchmark performance, be open and
O_.
;;-
honest, standards in safety and respect for

people ork to the rest of the industry through
case histof It had v®r ing groups covering: Key Performance
In 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.
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
Construction Industry Key Performance Indicators.

r-.
50
In May 2000, Ministers launched 'Sold on H

pto ntly it er testy
and the Public Services Productivity Panel, as 'Achi ing Ex IIE
on Health sets out a range of initiatives t i NHS's annin ro
operation and disposal of its estate. T se inc lS ProC re21, hich
a partnering framework for the Depar ent of H
initiative of the NHS fo the procur major projects
.-+
LIFT is an b
fu ing arrangements
.-.
(at a larger scale than those u CU VZO, bi FI
with principles of partnerin N1qu t initiat e procurement of

schools called 'LAPP'.
Prime Contracting
Prime contracting is system lau hched 2003 y the Ministry of Defence
and other governme t dep< nts. The Pri e Cori ctor, is the single client source
for an integrated pro ss. ( e use of tl is. som what confusing -
it does not
,-+
relate to a Prim eo ontract. Ther o types of Prime Contract. The
first is a cont ct for he`c rat-'an ai aint nance of the entire estate within a
ntract)L: secon type is a stand-alone contract for
in'
region (the egiona Prime

the design nd co tructor e projects wi a planned through-life cost model,
which mu be cd Yi thro compliance period (the Stand Alone
Capital Pr Prime Cont ct). T¢ intention of the initiative is to foster a more
G-)
colla brativ6 e p b'e weeq(

i Me e Estates and the Prime Contractor and to
deli er better val e clie Althou h the supply chain forms a partnership with
Prim Co ractd efense Est `tes are not part of that partnership.
51
52
For traditional procurement
Under this method, with design se ing contracts
are strictly work and material co the contractor
.-_c
-°°
is to carry out and complete th the documents
Imo-
.01
supplied by the client, and i thods. This might
include the design of any empo e the contractor to
achieve the desired result. A rt fro e of anything to the
a"'
nn,
contrary expressly in the it has` r design. The contract

wording may of cours be exten xpres limited design obligation
,-+
by the contractor.
The contractor is res onsib for workma terials and this is in respect of
-.o
fl,
complying with dard of the co` tract workmanship is concerned and

of satisfying plie rms of me hantab qua ty etc. concerning goods and material
i
etc. This will ormal exten to all s

als
The contr for wi
directly at ibutabf
co
ulty d ign
ntract rs of whatever description or status.
nsible for any efects, other than those which are
ise fro misuse. The contractor is not normally
responsible mainAfaining he b ing: any such requirement would have to be
expre, in the c ntract./
types bf contr available with the traditional procurement
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;
ost reimburseme cts: where the Contract Sum is arrived at on the basis of
tic cost of lal our, plant and materials, to which is added a fee to cover the
rof it.
contrac
The contractor undertakes to carry out a defined amount of work in return for an
--I
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
(DD
53
4 Which type of contract?
fluctuations in the cost of labour, plant and materials calle ull flu aThc, -
provisions. Recovery may be by use of a formul the Xediou usin o
checking vouchers, invoices, etc.
Lump sum contracts 'with quantities' are pric rings
bill of quantities. Items which cannot be acc rately e coy
approximate quantity or a provisional sum, t these sh
Lump sum contracts 'without quantitie, d the gs and
another document. This may simply b a specifi
case the lump sum will not be itemise at i
Zn
Sa in which
the tent that the
E-3
Contract Sum is the total of the pri b might eore

atisfactorily
ti-
described by Schedules of Work, sum total priced items.

OOH
Iup
N-0
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.
Tenders can be prepared o the b f notional antiti
replaced by firm quantities ,itisi tended to
contract.
These are also so etime refer ed emeasurem t' contracts. This is where the ->>
work which the ontra r ndert,ekes to' of for some good reason be
ua)
accurately measure re before to ering presumption is that it has been
substantiall desig d that reaso nably ccurate picture of the amount and
c.>_
quality of 'what is req e i give the nderer. Probably the most effective
measur ent Inq least ri to the client, are those based on
.-+
cts,
drawing nd ap mate uantiti
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
'+Q
r where ntity work is very uncertain.

in'
anti
(71
Obvi isly the clienJJ4ks to agcep fìe risk involved in starting work with no accurate idea
of the totak-est*and this type of contract is best confined to small jobs.
4--
(7D
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
Cost reimbursement contracts

inn,,
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
2>1
54
Which type of contract? 4
or actual cost of labour, plant and materia ftion th contr

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

but it can also be on a slidina s c l. Ho ver, for no real incentive to
work at maximum efficien i var is only Ii I o e considered where
requirements are particul to p - tract.
Cost plus fixed fee
The fee to be charg d is der

tender bye cto r. appropriate provided that
the amount and ty e of largely
i eseea contractor has an incentive
to work efficiently s as t remain prof ithin e agreed fee.
sin p bporti to t iff rence' between the estimated cost and the
e cos They tion is that if, the latter cost increases due to the
is su ose ineffi en th fee will be reduced accordingly. This
ends on th a realistic chance of ascertaining the amount and
tinder st
`st reimbursement sed oWa targe,
is is a fight variarl n t type. The fee is related to an agreed target. The

revio
act prim ost ab e or be
I
L e target affects the fee earned. On the whole this
type o ntract isi of popular, and is likely to prove complex to administer.
isAf cours lways en to the client to pay direct for the cost of labour, materials,
pIap,+ re-c etc., W the contractor receiving only an agreed fee for managing
tKe execution o he or
This pro/ur-eTrrdnt mhod 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
tea,
public secto preferred procurement option, and most publishers of standard

forms now produce documents which allow for a contractor's design responsibility.
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 'How er, fhare
likely to be stated in a document of several hundre
,-+
ith recis peci

accompanied by a well worked out concept design. role o the contr for
might even be restricted to developing des d prep ring podr 11
tt
information based on the design informatio supplie

Unless the contract states otherwise, it see he ' ility olute
liability under which the contractor rran fit ss the
v-0
nded.
However, usually standard design and uild forms ess it t liability
of the contractor to the normal profe duty exer re o ble re and skill.
Independent consultants engaged ctor herefor n r, liability no
greater than normal. An indemnity r acce f lia 's likely o be worthless
i
unless backed by adequate indemnity in ra nce, dais is s n that should be

o-0
checked before a contractor is porn re the s not have in-house

fl,
or
designers and intends to us outside co sultan their uld be established
,-+
s
before a tender is accepted
Generally it is better to in to of th erf quirement rather than
Q=,
s
to prescribe in detail, ecz is lea s the r pons ility-for design and selection
firmly with the cont ctor. vee with me ypes f development (housing, for
c
example) the more recise nts the ess likel it is that a tenderer will start
out with the fixe intenti
,-+
ietary co ponents or its own standard

shell designs.
It is claimed d of certainty on the Contract Sum and

bring cost tnteg rb n of d gn and working methods, and the
relative fr o use its p chasing power and market knowledge
most effe ately, it is often very difficult to find out
just how co
O the matted of s uld be possible to ensure a quicker start on site, and the
cl d construction should result in more effective
in'
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
((D
lam
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.
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
om,
0
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
56
be made the subject of such an agreement, ;h thoug the c tractor

wish to sub-contract such work, it would Jes pt ponslit'
f intr
vi,
design. These provisions, however, should of a a wa
design obligations for a substantial part bv ffectivaw n.d
original contract into one of a design
Basically such contracts concent pertise of the

contractor and are particula suitab faith larg with complex
requirements. There are man nts,igin ement of a building
designed by the client's pr es addition playing a
major design role, to also eptM ement obligation to fit
out and maintain the operati of a cific period, and even
perhaps playing a sub nrrdi- q Q the i ing of the project. Clearly in
the majority of such cases, deve ill hav orms of contract specially
drafted to suit their requir
forms av
appoi in nt profess nal team, and also a management

,,The c actor' involve pre-construction stages will be as an
am, and d ring c n ruction it will be responsible for executing the
works ntra tors.
it is possible o make an early start on site and achieve early
xibility it allows the client to develop the design during
a matters of detail can be adjusted and finalised
manage ract to be successful there must be trust and good teamwork

part o professionals and the management contractor. The latter
should preferabl ted no later than the outline design stage. The contractor
can advise-she signrogramme, tender action, delivery of materials and goods,
uctid pro ra m m es.
The ma agement co tractor will normally make a written submission which includes
a propose ana ment fee, and will be appointed after interviews with the client
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 pre-
construction stages should the project not proceed to site.
57
The management contractor undertakes the work on si of a c tract sfpf

prepared by the quantity surveyor, project drawing roje ec ation. The
-
client accepts most of the risk because ther ert thtya t sts
.+n
programme. Competitive tenders for the Work o lat ,and
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
works contractor.
r+,
Construction management
Again, the construction manager i
paid a management fee.
One basic difference from a ma gaaeme ntracts, although

arranged and administered the constr ana ctior
irec between the client
and the trade contractors. Ithou sense t k aives t a greater measure
of control, it also means tha he or he a ccepts vi all of risk. The construction
manager is a coordin or, a d us ally canny e hat the project will be
e proje, t an
(D'
th likely
risk. 0 viou o expertise
.-r
is
Construction many mentems t have crease in popularity over management

contracts, b rk by th proc rerr nt method has been undertaken by
experience commerce :l1 is usi b poke a reements. There are now also a few
standard orms available struction ma agement.
nage; or}struc
(Q'
ore rece development of the management approach, offering a

fal integra a single source. It can be led by the contractor, or by
fl,
ice fro
,n'
is only likely when the design aspects of the project

,^+
me The la
a
svailable as yet, and developers or contracting
elist
Ther are no
organisa
work should TisJ ially drafted forms. Architects involved in this kind of
lawyer to check forms, and advise on the terms.
Maintenance is
of facilities maher de the scope of building contracts, a nd is the subject
special agreements.
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 ordinarily be diet bè

client and the firms concerned.
Choosing the type of contract
In trying to decide which type of con act to` itect
or herself (or others) a number of q stions:
What is the nature or category orrn
Comment: is it predominantly uilding
building or an addition to an
specialist nature such as re
istina one
of a
in
oricuil
fish
=r'
rk?
Is it
completely new
ork, maybe of a
ncerned with new
uses for an old building, olvin
i alter ? Is its allj bbing work, perhaps
on a 'one-off' basis, or sera of b which form part of a term
maintenance program
Q. Who is to be resp 'nsible for esign.
Comment: is respo sibility st entirely-* th th rchTtect as lead designer and the
professional design ea m the - ccnnrr
be dir ctly involved in any important
aspect of desig P is re to e signifi ign t from specialist sub-contractors
or suppliers?
ture allow// and
`mighie desir rile to carrr exploratory work before going to tender,
of be possi le in e ent. With work to existing buildings, problems
etimes o ome gar t after ite operations have started.
there prepare fu, information at tender stage?
mme ecessi for an early start on site mean that it will have
made'-crh the or approximate information, to be replaced later
instructi
t docu is ar eeded for a particular type of contract?
ent: is roj ec hich can best be shown mainly in a drawn form? Are bills
or schedules ne S uld the specification be a composite document which
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?
Comment: it to be by a direct negotiated approach, or by competition? Will
is
competitive tendering be straightforward single stage, or is two stage tendering the
only practical answer? This might affect the information to be prepared and will affect
the time needed.
59
Q. Is the client able to state his requirements precisel befoT wor, tarts:
Comment: is it desirable or necessary to allow for adjust ents des tan cha es
during the course of the work? What flexibility is eeded{ nd he n e th critic
v4=
times for final decisions?

Q. Does the client need to know a precise Co tract ore st rts? '
3(D
Comment: is construction cost of second Kv import ce ear omple on

(because, say, large sums of money are tiedo p e deal r rental of sting
premises, or because of dependence on cono
E
ur
Q. Who is to be mainly responsible for c Q rdina#g o 0 sit

Comment: is responsibility to rest pri a w the tracfor, o th client wish
v.`
20'
to reserve the right to nominate s cialis8 o a purch sin deals, or to

have work carried out by others whils e con c is stilt inl Qsses on of the site?
60
Decisions on the preferred procurem onclusions
='O
on the contract types which might be ual forms of
,-«
contract to be used should d rounding the

particular project, which need and procedures
described in the contract form ons and foreseeable
events which might arise he choice of form
;,o
needs therefore to be base rVand not be the result

of prejudice, doctrinaire alleg e familiar.
Some contract arran ments, ments which might involve
novel procurement r be proje s of co idera xity, could well require the
use of specially dra ed fo
For most buildi s in whi y of architects are likely to be

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

-ti
Q. Is
iallt- went be needed?
ff_axfensive am dry eded, or if a specially drafted document seems advisable,
((DD
then the matter e referred to the client for appropriate legal advice. An
r-.
lid
e%cepti mig t be small job in very straightforward circumstances which could be
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.
61
5 Which contract form?
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:
Q. What 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
the client.
Q. What if the client wants alteration oas darfor

This might in effect make the cont andcould f e construed
as 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
i
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 en should be dealt with
by his or her legal advi rs- is the p ctic point that ad hoc alterations
often lead to inflated ender ices the risks.
ificant in`f'nce, a d 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 ative v rsions, for use by either the private or
0_0
pu
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.
ontra
L^1
fa ly c sth rk for government departments was invariably

fl,
fl,
it r r
out under one o orks contracts, then the responsibility of the

110,
ar ent of nt. Today the situation is less clear cut.
the Eur now identifies three categories of authorities: central

30)3=`
Unio
((D
mar
government de artments 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
fl,
62
Which contract form? 5
considerable body of opinion in favour of co use o ne vorKs-zo

would appear that most departments have discretion ver w ther to
fl,
JCT, NEC or GC/Works forms.
The GC/Works range of forms has been x rprocur

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

Local authority requirements
The public sector (or, more I au ritii`bk .as fd many years had its
own version of the JCT Sta ar ow now th rson administering
the contract is referred to ;'the t/the o ract AZ inistrator', and some
provisions peculiar to local gove ment com e d nt, the need for private
and public versions h
In work for the pu lic se ;ua there m also to take into account the
published requirem nts of the particular de tmen r client body. Some have firm
views on the ch for m what a nd e insist are made and procedures
which are to c on ning c tr administration.
tant, en 96nsi ing appropri to form of contract, to be thoroughly

it its pro ions. miliarity s never of course be the justification for
es time a effo to ep abreast of changes to published forms and
fects tract a ministration procedures.
make sure hat the editions of the contract forms and any
ents a urrent issue and compatible. Checks are also
ure that 'contract administration forms are current and
form of building contract being used. Pads of forms can quickly
,-+
becotne out d it is unreasonable to expect office staff to check these things

. It is for the contract administrator to check such matters.
Personal prefer
evit bly some subjective element in choosing a form of contract. An
architect eel a )personal allegiance to one or other of the professional bodies.
For exa le, ACA m hers might understandably incline towards an ACA form, while
ASI membe 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
rip
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
5 Which contract form?
members of organisations such as the British Property derati might stipu

fl,
forms which contain certain conditions. A project nanager mig adv theme
a form 'based upon' a well respected standard rm ally airl oos !), ora
powerful funding body might require terms, in colla agr ement Iich
necessitate considerable changes to those in t ntract.
Notwithstanding, the advantages of using a standa foi canno
overstated. Modern forms drafted by expgrts d d hoc alter
should result in fairer conditions and faj th circum.7ta
surrounding the choice of form, it sh Id be the hou
analysis of the situation - an exercis fess a
As discussed above, the choice of buil ve implications

for the contract for professio s e Lat ognised this by its
recommendation for a co plete fa mil of dard including a total
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
ulta t agr merits -
'r0
documents including c ajority of consultants at
+-'
present seem to pr fer po tin g ocu blished by their respective
professional bodies
The form of buil ing co ract hos mn have sig ficance which should not be
overlooked when aIculatl the f for al services relating to contract
administratio le, SBCO dema airly sophisticated procedures likely to .,_.
be far mor tha thosE d under, say, MW05. The type of

contract, Kt formivhich it s proposed to use, needs to be taken
- l
id alwa ys assuming that the contract choice is
.'^
into acc
known in
Eve with ar tforward traditional lump sum contracts, there could be
tly strai
cial facto whiteed t be borne in mind. For example, it might be expedient
a"'
s
t arr ge f eli nary enabling contract to cover investigation work,
de oliti ork, advan d . e wor etc. ahead of the main contract, and this should
.
not overlooked when a es fees; or again, it might be decided to have work

carried a nu ber f parallel trades contracts with the Architect assuming
4--
a management ordi ating role, and charging an additional fee for this
E°;
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
..O
deal of investigation and reporting needed in the earlier stages followed by unusually
frequent and detailed inspections both before and during construction.
64
Which contract form? 5
Another matter which often brings close lin

contract for professional services is design
I
design liability to an extent agreed an

professional indemnity insurance purpose,
vii
any liability that is more onerous, for
incautiously entering into some coll
when acting for a contractor involved
65
P
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 0
The Institution of Ci eers
NEC Document
Engineering a, Contra
r roject C
I nstru
9N,n
' tract is pTaced first i the list because it is a relatively new and
proach. seem like) ally, though n necessarily, it will be for a lump sum
also b ght of a form ri-satile enough for use with either traditional or
wocurement.
f the of listed a ve, the last two are also suitable for use with
itional sum. T y are listed under this heading for convenience, and
osition as majo orms of contracts
67
68
Traditional procurement: standard lump sum forms 6
JCT MP05
Major Project Cons

2005 Edition
Background
it appears that for some time th act (JCT98) had
no longer entirely satisfied 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
sscessit 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 sive odificat ns nditions in otherwise standard
forms of con b eskefor
p
took t to f introducinga entirely new standard form to take
(CD
the c rent eec ft 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
i
L.0
C05 o D /are of altogether helpful. However, it should

s
nstan
likely
for
Iteto those well tried forms of contract, if used
is intended. In other circumstances the two
might s o appropriate option, and it appears they will
gside the Major Project Construction Contract (MP05).
ocume open and flexible but demands such attributes of its users. The
elate re itfo
and language, and clear procedures make it immediately
att(active. How is li y to be an appropriate choice only for parties who are
already expp ced OD ations of a major scale, and who fully appreciate the nature
hET
)and' rocedures. They may be relatively brief and uncomplicated, but

a hig level of understanding and involvement by the parties.
1)
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
O_(
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 all II
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
entered, and the choice of option clau
relating to completion by Sections, and i su ra
be
e
icate i, l
icula
i
ific in ryhation
es require
i
ire-follow
Attestation. Understandably, this is a ontract to ec as a
The document also includes two s Th t,. artyRigh e in respect

of third party rights from the cont ctor i of t der, a d party rights
from the contractor in favour of a pd aser an h ricin Document. This
last document includes the rWe--,-whi gove payment to the
Contractor, and pricing inf mation. elatin ce payment bond,
Progress Payment schedul analy be attached where
relevant.
inl,grestir key i
ponsib ional) desid

E m pJgye r';s,,R eq ui re
m e n ts;
ikion p ure en u res

ntractor's d
r may na cialist ub-con,
e for tar per
er m no ate t ultant previously appointed and the contractor
respo Bible f their se performed pursuant to the Requirements;
Employe the co Factor access to the site, rather than possession;
suraince arr e parties to agree upon;
im payments to theln will usually be made monthly, but may be to any

s the T ere
o ret6ntio
ino provision for retention, but bonds or security
could be created if required;
there are provi ions for eration, bonus for early completion, and sharing of
benefits of saving va 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
For the purpose of comparisons, in this book t g6is is

employed for notes on the other forms of, alto
0
reflect the structure used in the actual con CI u
to be found in MPF05.
The form is published in one version a in f able for use

in both the private and public s rac it is mainly with
large commercial development oh rele Fl projects.
It is for a lump sum contracan is,t-obe s ted in the Contract

Particulars. The Employer' eq is c&M include uantities, but there
is no specific reference to th se in th tor's Proposals must be
accompanied by a Contract Su analysi ricin- tion. The Requirements
and the Proposals ar on agr ment is founded.
There is no provisio for a ependen nd contract administrator, and
fl,
00)
i
administrative func ons r quired under he ontra are to be taken direct by the
Employer or theCont actor. he
Empl er's n ative may exercise all the powers
and function
s obliged t execut. complete the Project, that is for construction

pletio of thg clesid (7.1).
e contr or wa that it has th competence and resources to act as CDM Co-
dinat ipal ontra or, and esigner as required under the CDM Regulations
L.0
it
Wfort
er is re onsible for the Requirements, and the contractor is not responsible
se, or for the adequacy of design contained in these (11.1).
Vtdiscrepan
y.,
Requirements is found, the contractor must notify the

Employer which t intends to follow. If the Employer wishes the contractor
to proceedofherwi , that instruction is treated as a Change (10.2).
-arrWwithi the Proposals is found, the Employer will instruct the contractor
a--_
If a discr
which vision sho, Id be adopted and that instruction is not treated as a Change
(10.3).
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
Traditional procurement: standard lump sum forms
JCT MP05
JCT Major Project Construction Contract Guide sugg b le rding n c
gives a reminder of some of the practical problem arise wit this d o

provision (footnote to 1 1.3).
Materials and goods are to be of the kinds and ds 'n the
fit f6 he tended urpos;
Where described goods and materials are not cur ble t

alternatives of an equivalent or better stand d th Itern
standard, and acceptable to the Employe !will ited Cha
crib
The contractor is responsible for the repara Iurtr sign

these are to be submitted to th for re
as identified in the CP's, an as shown ra m
Requirements or Proposals 12.2).
The Employer is to respond Wing design nts to
either 'A Action', 'B Ac Zion' (12.1
The contractor is t execut ction
accordingly (12.6.
The contractor o exe to ork
i rkec provided that the Employer's
comments are incoworate , and furth copy of the document is immediately
submitted to The coif tractoi ect to be paid accordingly (12.6.2).
to wofk mar d 'C Action', but must resubmit a

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

esign still responsible for ensuring that any design document
repares is in acc kith all the requirements of the contract (1210).
ntractor must oroc arly and diligently to achieve practical completion

pleti (15.1).
The contract allo s crompl tion by Sections, and completion dates for each Section
(together with es of da ages and bonus) are to be entered in the Contract
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 anion actic Co'
RID
occurred and, if it agrees, the Employer will ertificete o actic

(15.4).
If the contractor fails to achieve pra
6:_
'he co/MKIet
becomes liable for liquidated damag the ntra
(16.1).
With the consent of the Contr Et the m
Project prior to practical compl in, an u th ' sue
part, the date, and the value o t e pa 17
Unless there is anything to tract, t actor will be entitled

to an extension of time in r ect o s. Of t sefour are for 'neutral
causes', and the other four rela to any y other persons on site,
0-00
valid suspension of rform non- acts of prevention by the
Employer. Interesti gly, advers is no
Whenever the cont ctor ecomes awar ss of the Project is being or is

likely to be delayed e to ny caus it ith notify the Employer of the
cause of the Ikel ye se ct upo eticin of the Project (18.2).
ontra or cons tha used by one of these events, it must

pporti revise this a necessary (18.3).
s of r'eipt of uch n tifica on, the Employer must notify the contractor
ent to t comd date as he or she then considers fair and
asons pletion date should not be adjusted (18.4).
practical completion of the Project, the contractor may provide

dor
M--
r n to support any further adjustment to the completion date, and

in ay! g that information the Employer must review decisions made
iously, an m or adjust the completion date (18.6).
No adjust_mRQt to cmpletion date to bring an earlier completion date is possible

(18.8).
Howeve , the Empl yer can investigate the possibility of acceleration by inviting
proposa om th ontractor. The contractor must either make proposals or explain
why it is impracticable to achieve an earlier date (19.1).
If the date of practical completion is earlier than the completion date, then the
Employer is liable to pay the contractor a bonus at the rate entered in the Appendix
(20).
73
JCT MP05
3 Control
The contractor may not assign either the benefit o,'burdeviof tVe-tontr'
the consent of the Employer, and this would app
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).
Rights of third parties in general are e buThir is S d
part of the contract, in respect of th da aser or Tent
The contract has no provision for a co entio act "Istrato and the terms
are to be administered direct b er an ctor tively. However,
the Employer is required to a oint an iplo`y is Rep tive o will exercise the
powers and functions of th Emplor nder th ontra
The Employer may appoint o visers who, assur. d of cooperation from
the Contractor, have no,,Ntho er the cd the Employer (21.2).
mploy be inting)and
with suc`f) instru
Where the contra or nen s
Employer may enga others to gi e effea
,-+
liable for th z,3).
s rrse to ai'Chang this may entitle the contractor to

.-f
C+.
i\exten ion of ti However, not all instructions will be

.
h( e the contract states this, the contractor
eive This will not relieve the contractor of any

gations u
eE tractor to open up and test work and materials. If
findlrs show all t rdance with the contract, this will constitute a
e. If the work mate goods are not in accordance with the contract, it
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
fl,
fl-
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
0)°
goods elsewhere (22.2). No such instructions shall be treated as a Change (22.3).

.1p
During the 12 months following Practical Completion (termed the Rectification
74
1CT MP05
Period), the Employer may instruct the contr,
Where the contractor does not remedy de struztec then

engage others to give effect to the instru
After expiry of the Rectification Period, tified
issue a certificate to that effect (23.
Consultants may be pre-appoin tion that the

appointment will be novated the nWct and f their original
appointment and the propos Mod For I e included in the
Requirements. This also requ pro to e ct Particulars (24.1).
The Model Form of Novat ediatel

(24.2).
The Employer may a 6o recl ui th ontra named specialists (that is,
subcontractors or nsulta nts) y inclu in g a of names from which the
`st
P
contractor may ch e, in e quirement Such ointments may be in respect of
design or carrying t of orks (24.3)
be solely sponsi e un er the contract for services provided by

hinted !und taken by named specialists (24.4).
`to the contr ctNEmployer depends upon the novation of pre-

e
consu sand Tne app of specialists being carried out in the
Fred under th releva contract clauses (24.5).
ppoirdconsult
ctor without he prior written consent of the Employer (24.6
ithe eforE ediately fo'WWing termination of such contracts, the contractor

mu no ' 1 loyer of the proposed replacement, and the Employer has seven
day in whic reasonable objection (24.8).
contracto e i ns fu liable under the contract for replacement consultants or

ponsible for any delay and additional cost incurred (2410).
'4--
specialists, and e it e
`tract Sum, AT exclusive, is entered in the Contract Particulars (31.1).
Pricingr6ent identified in the Contract Particulars is part of the contract, and

+-'
The
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.
Changes are alterations in the Requirements or Proposals which affect either the
75
JCT MP05
substance or manner of what the contractor is to pro

`^. -+.
contractor is responsible for all further design Zt-j
r -on
th e ontra
te exce ing
discrepancies and statutory requirements, Chang maip9v to ratio
required by the Employer.
Each party is to notify immediately the other if i dered ,-+
that ar6nstru
rise to a Change, or any event occurs which hould b
Change (26.1).
Valuation of a Change and any adjus co etiord
Eli
ent
agreement, or by the Employer on bas o q p
Contractor, or, if no quotation is re fair a atio
,..f
ag on
valuation is to be inclusive of any I ense 3 to 26.
No later than 42 days after practical c pleti e Pr ontractor may
provide particulars of any furth and within 42 days
,-+
spect han
0-0
aiu
a-3
ti,
of receipt of the particulars th Employer +ew rele mo s valuations (26.9).

Other factors which may esult adjustments ontract Sum include
Tin
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
fl,
able f6rearly ompl ion (20). The former will be
(D_
the Employer (25), a a bo a
fl,
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,
The contractor has limited right to rei rsement of loss and/or expense outside
the inclusive Change If the ctor wishes to claim, it must give
timely noti ide an essmen of the loss and/or expense with
fl)
..,
informati essay Within days of receipt of information, the

1
t and otify the Contractor. Payment will be

rpm
Employe 3 amo
,-+
,_..
included in advice. ,-rayclaim for further ascertainment must be

ma by f in 42 days after practical completion of the Project, and
Employe hese particulars and notify the contractor of any
fl,
'+.
itio ithin a further 42 days (27).

,-+
fl,
r
nt deletions in the articulars will indicate whether the contractor is
nom
,-+
Rele
to rece iv.Q payme aer 40(interim valuation), Rule B (stage payment), Rule C
(Progress Payment ule (some other method). These Rules are described in the
Pricing Documen If no Rule i selected then A will apply.
is tolra-e detailed application for payment not later than seven days
The contractor
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).

E
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
,-r
76
JCT MP05
the Contract Particulars (28.2).

Each interim advice is to state the amo th co ract
accordance with the Pricing Document), th ny Ch ges, an
of any reductions. It should be noted t t
,-+
materials or cost fluctuations, althou these
The Employer may withhold p th6. ontra d that effective

notice is given not later than se n days befdre-die fi ment, and which
states the grounds for withh ounce's attNb able each ground (29).
If payment is not made in corda thract, iN

,-+
am n 30
Final payment beco ees due w ificati as been certified, or when
the Employer consi rs that r ea nable time wed for rectification to have
,-+
taken place. The E loye us issue a fina certificate, and this is final and
binding on the part Fes in elation ! subject to any dispute being
referred to ad orI ration w in 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 te that specific fees and charges are the responsibility of
mployer, trwill pay all fees or charges in connection with statutory
requirements (9.2
es in stat bligations that arise after the Base Date and were not previously
announ ken into account and will be treated as giving rise to a Change
(10.5).
The contractor is appointed as both CDM Co-ordinator and Principal Contractor for
fl,
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).
The Employer indemnifies the contractor aga' st ens lia lity, loss, clai or
proceedings arising under statute or co la in ect f p sonal in' ry or
0-0
death and damage to property other t an the t t these
.,r
e a s as mi
arise in the course of carrying out the Pr 'ect arare to e ac r neglect for
which the Employer has responsibili
Most major projects are likely to
,-r
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).
Where compliance t provision and the insurer
-i.
0(D
requires remedial ement these and this is not
treated as giving
Where cover, ga -tterorism is requir d ceases to be available, the party
'y.
responsible or that in ra must-n of y the oper party (33-7). The risk then rests
with the
Where pr ssion in mnit insura e is r quired, a relevant deletion is required in
+'i
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 m cia so le tes ( -2).
The Emp 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
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, /ir mee
permission. The Employer may then make enge ents
Project (38.4). Only when the Project has t o oth
r,
for completion have been made, withi 'six r-6 termi tion, r/k
issue a payment advice (38.5 and 38`
The contractor may, by issuing a

having given the Employer 14 ays no a' ateria
failed to remedy the breach (3 L1 and 39. e c acto
employment in the event th plo eco es iftsOivent
Material breach by the E
Upon termination, t e contra

equipment from sit without delay, a
Either party may ter inateVhe contractor' t if the Project is substantially

suspended for pkiod st ted in tie Co rticulars due to causes which
include force ecifie eril, ciXI co
nation the ,con actor t pro ide the Employer with all design
s, rem ant or eq pment from site without delay, and
a ccou
gs aAfully to led. Note in particular Design Documents,

letion, R uirements and Proposals (1).
n are set ,ncluding a gender bias clause, and that a 'person'
I, firm, partnership, company, and any other body corporate (2).
ntracto ccess (not exclusive possession) to the site or parts of the site,
eaves Dloye ree to have work undertaken by others at the same time
asthe Project (1
ns o man-made obstructions encountered by the contr actor will only

give rise vhere they could not have been foreseen (14.2).
Copyrig 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).
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
6
tD
JCT MP05
All communications between the parties relating to
_(D
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
Disputes or differences between the parties in r do to th Pro' ct (nole not s ply

the customary 'arising under this contr t e s 7itte to ediatio if the
parties agree, or referred to adjudicati n a ce the ro ko of the
-+,
relevant Scheme for Construction Contr

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

-format
-+,
important that both are fu ere rescri ormat but it should

ha,
'
be remembered that this cont t is ve t on e eqi, ements stating clearly

what is to be delivere nner de is points which may be
rip
considered for inclu on are hel in e J e for this contract.

The contract provid for esign by the
loyer, shown and described in the
fl,
s
Requirements, with u rth ntr tor. The Requirements may
design
stipulate that cto re ngages
onsu antspre-appointed by the Employer
under a nova rion agr e lis some of the matters which need to
be covere in th agree nt, w ich should become part of the
.=+
no
(DG
Req u rem nts (th part s rr

i isb to conside using the CIC Novation Agreement).
Normally li ty is t fit of
i Ie care and skill, but the Requirements
could i fitness for, pu rpo e bligation although there might be practical
.=r
_n+
diffi iaht be i imio rta nt atter in the case of PFI projects.)
.-f
(1)
articulars re uires entries on matters such as the Contract

m, Re ire ents, Propo Is, Prig g Document, names of Planning Supervisor,
O^^
S
mar-
to the application of option clauses such as those

+-.
Fun adju ator, ntries rely

0 ou conditi s, liquidated damages, bonus rates, pre-appointed consultants
fl,
and ame eciali cost savings, payments, insurances, professional indemnity,

an orxuff
This is a form whi r and shorter than either SBC05 or D1305, and which can
c.^
e tailore 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
I
vi'
reasona balance set of documents. The contractor assumes more risks and
°.c
E-0
responsibilitie under other JCT forms of contract, but provided that the risks can
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
(ND
of the more traditional JCT forms remains to be seen!
81
JCT MP05
JCT Major Project Construction Contract 2005

JCT 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
The original agreed Standard Form as the RIBA
LL.
Form. In many respects the JCT on (SBC05) is

direct descendant through a se 39, 1963, 1980
vii
a
and 1998, although now pubs Contracts Tribunal
Limited OCT).
JCT80 was drafted 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 i 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
United King om. S Opleme is
and, secti hal co pled ?1;
wer d for major building projects in the
avail ble to cater for contractor's design
ther with d umentation for nominating sub-
contracto and s
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
nt edition of this long standing form. It constitutes a radical

((DD
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
((DD
work pr isions hav been omitted. The form contains a new design documents
submission e e, and provisions for Third Party Rights and warranties. For a full
analysis of the changes see the references at the end of this section.
Nature
SBC05 runs to over 100 pages. The Articles of Agreement include Recitals, Articles,
Contract Particulars (to be completed by the parties) and an Attestation. The
83
JCT SBC05
numbering of Recitals and Articles may vary depen xne par

--O
°'c
0--
SBC05, and if incorporating any separate amend t cariee
CND
to achieve consistency.
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
r.,
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 )ms oluti v Sc les a Ce
included at
the back of the form, which cover as sign su n procedure,
insurance options, bonds and fluc tions:
in'
o,-
Obviously such a contract is n asy'read'an the) ptions need to be

considered with great care. mpl , ontra the
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 I
procedures and rules. some especi y th rning extending time or

payment, might app ut they re in nded to secure sound practice
;--r
-n,
and should be foll iculo

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 e int ratio f new provisions, may go some way
1
towards r t flag popu rity.
e versions use with quantities, without quantities, or

s.
T e W ua es uld only be used where the Employer, through its

sion s
p fes consultan d at the time of tender a full set of drawings and
prove
fl,
bill of quantities to S M Information Release Schedule is part of the

CND
Q_-
docu tatio an
a tte t to identify responsibility for any further information
which might be ness to mplify the contract during the carrying out of the Works.
+.,
The Without Q ntities ver on also requires preparation of a full set of drawings to
-4,
be accompanied ei a Specification or Schedules of Work. In order to give

l./1
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

=moo
provided, and the measure of detail required of the contractor is often stipulated at
,-+
vii
tender stage by the Employer.

E
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 parat
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, I
as to scope, format and timing of such bmission t Contract Par

E
In response to the Employer's equir th ontr

Contractor's Proposals and a C Anal Ys is at Offof t
relates to the Contractor's D Po rtf . Thi ,Jatt I as
variations.
SBC05 requires the appointmm to g ct the various contract
terms. The Employer w II oint a itect ntract administrator to
this role, and such a rson wi ll b regax ed as den and impartial. SBC05 also
provides for the Em loyer t oint an ploye esentative' to act on behalf
of the Employer. A f otnot emphasises ndam tal difference in roles.
for is rryt and comp

an and Statutory Requirements (2.1).
fl,
?mrat st comp 'M of any Contractor's Designed Portion, and

with al tions ct relating to the integration of the Portion
Archi
-.O
ly 6
(2.2 The c ntractor's liability for design is limited to the

re of a rchitect or other professional person.
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).
liabili y for design is limited to exercising reasonable care and skill

1.1
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.
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
.°i
tin
r+,
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).
In the case of discrepancies in or divergence
instructions must be given (2.15).
The provision for dealing with a discrepan or dive
Requirements, the Contractor's Proposals an he Apalys
Contract bills, except where specifica Xy stated the 'se,

accordance with the Standard Metho of Measu t, Editi 1).
The contractor must be provided wi ies e refe ed to in the

Information Release Schedule by t e stat (2- he cont must also be
provided with such further drawings detai ecessary (2.12).
The contractor must keep on 5ite_b d (2.8.3).
The contractor is required o submit d a o ents it prepares in

relation to the design (th 'Cor Docu n&), as set out in the
Contract Documents, or a reas nably necesa e su mission is to follow a
k 1 (2: 42).
The Employer is to espo n by turnip the design documents marked either 'A
Action', 'B Action; or 'C A tion ntractor is to ex ute work marked 'A Action'
or 'B Action', in e cas the itI tincorpor e comments by the Employer.
The contractor mu`streviseNVawing marked
executing an hedule 1:
er relieve/the co
copies 'ot hi master programme as soon as possible

E
equire a pre minary draft with the tenders.)

ie CDM R gulati the Employer to nominate a CDM Co-ordinator and
here on ctor. This is also a contractual duty (Articles 5 and
5) airyany need to ant a r placement is also covered (3.26).
Dates for posses d co pletion should be entered in the Contract Particulars.

i
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
a,.
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.
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
An option clause for deferment of po iori exceedir)o six
n-0
fl,
subject to an Appendix entry (2.5).

fl,
Notice of delay must be given in writin Co toge supporting

fl,
yt
information including its estima ke ffect ?aMpletio (2.27.1). The
Architect is required to conside a new c ion te, ar the contractor
of his or her decision within 12 ,weeks -28 Thi ref 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
subject to review by the itect la th we ks following practical
°-'
(ID
completion. Whilst it i reduc ion y awarded, the original

contract period cann, t be reduc there i visi for accelerating progress,
except by agreeme t. The p dures foN ealin elay and extensions of time
are detailed and ne d to e followed witb e.
owere bec
he contr ctor -20).
e con acto plete within th contract period is certified as a fact

chitect (2 3) an ges may be deducted or otherwise
the E foyer T32)he
. mployer is obliged to give notice in writing
rrD
i,s,certifby the
ik oblige to rectify defects (2.38) unless the Employer
d agrees`"propriate deduction instead.
The partial possession (2.33), and where the Employer wants to use
art ed works for storage etc., this is possible subject to proper
insur&me a
3 Control
o asst -ime without written consent refers to 'the contract, or any rights
The cont 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
fl,
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 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 ust beams
in the Contract Particulars, the relevant persons nd su )6_contractor-s iden

together with information regarding limits to the ontrac or's bil IA
The warranties to purchaser, funder and tenan on the JCT/stand

CWa/P&T, CWa/F, SCWa/F and SCWa/P&T. T iblish Wa/E
relation to the Employer, although this is no eferred t t`he form.
Sub-contracting any part of the work, in the Arc
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).
tontr
E% he
O:3
The contractor may sub-let to pers list d in o annexed to the

Contract Bills. There must be not less f n thre abl n g' to carry out
illa
the specified sub-contract v
711
ate fired ti Ar tects who use this
might consider whether the l require th contra for to c oice at the time of
submitting its tender, in or er to dtim rage so-c ed 'D h' auctioning.
Visits, inspections, etc. by th Architect or clerk of in any way diminish
or affect the contracto 's ci'n5ibilit Works in accordance with the
Contract Document (3.6).
Architect's instr tions lust inriting, altho gh this can mean written
confirmation of instr tioi
l The early defines what instructions
are empowered, an these-may i r flucl iations (3.14), postponement of work
(3.15) and e rovisi nal surds ).
for is aauire e a coYnpeten person-in-charge on the site full time

to permit the pre the Emp yer's clerk of works. The clerk of works
inspe t#, alth or e can issue directions which require
the Archit
ere work ials do of comply with the contract, the Architect can order
it re Ae (3.1 Where, after consultation, it is agreed that non-
forrhiiqT 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
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
The Contract Sum is VAT exclusive (4.6) an ly beadste
r+.
the Conditions (4-2).

The Conditions provide for the contrr cto ver h taxes,
--O
i
including landfill tax, levies or contri utions p 4er of tender

(Schedule 7, Option A). Increases in the st (Alabo e recovered
as net increases (Schedule 7, Opti ccmanc les (Schedule
7, Option C), if either of these tions is iculars.
Where provisional sums ha in t

be given to the
O':0
ed,`rtrM
contractor (3.16). In accor, rovisio will be either for

's
defined or for undefined ai work arried out where an

approximate quantity is includ or w visio are included, or where
a variation has been rdereo, the quantity surveyor's
,-+
e by
application of the v uation rule (5'2
Inaddition, the cont ctor r be invited to s chedule 2 Quotation' for work

which is the subiect o an ar itect's in ruct' n a quotation, if accepted, would
bind the cont ct Pest cost f wo the time implications and any loss
and/orexpe e whi The ork v ould not be carried out on this basis
.
unless a c firme was issued. In he event that the quotation is not

accepted an inst uctio issued to 'roceed with the work, but it will then
be subject ation r. les and pro ures (5 6.1).
If th ation which is part of the Contractor's Designed

Po odific n of th Employer's Requirements and will be valued
ontra1CV mus make tte application for reimbursement of loss and/or

nsThe grou s for
. vv4 ancation are set out (4 24) and include only
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--'
(4.23).
ad nce payment of the contractor (4.8, an entry is required in the

Contract icu'la rs) a nd this might be subject to an advance payment bond (Part 1,
Schedul 6). The su is to be reimbursed to the Employer in agreed amounts and at
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).
Interim Certificate must show the amount due, t
calculation. Within five days of issue the Empl i
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 e the
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 b e EZI then
must be made in full. Failure to pay by he final
.-t
rp
of 5 per cent over current base rate, cart aIso th ntra
suspend work (4.14).
Where the traditional operating of ention feren

bonding (4.19), then this will a terie
amount will be released at actical c ton.
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)).
Similar rules apply the Ffnal Ce ficate h egard to notices, as those outlined
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
omply with'a'll statutory obligations and give all required

ices (2.1 The entitled to recover fees and charges not otherwise
r is
(2.21
T 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 a variation to be value #gly 18). '
The contractor is contractually obliged t wit t C

particularly, where the project is notifiabl >ly with
(D.
Construction Phase Plan and the healt
ties
What a particular contract inclu

Contract Particulars (for exampl K wh er
amount of cover required, etc The Arch' c
ep d to
ti
r+3
il rec
d
entries in the
the minimum
sue instructions,
call for documentary eviden a 0< pass gthe or c cking.
The contractor indemnifie the E respt of per injury or death (6.1
,-f
in
and injury or damage to erty o nt a alw to be
rks (6.2). This is
fl'
backed by insurance ( mini oun er required is entered in

the Contract Partic
If instructed, the c ntrac take o )-r-
es insurance for the Employer
against the risk of c aims rising due t uisa e. There is a list of exceptions,
and damage nt
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
i
provided.
Insuranc isles where w buildings are concerned and should
be for fu reinstment alue. It cary-Be taken out either by the contractor
o
(Sch tion A)# e ployer (Schedule 3, Option B). Normally it is

be to IeaJ isk wi contra or under Option A, since restoration under
treat riatio work d will be valued accordingly.
uranc of0 f xistir stru res a d the contents is a matter for the Employer
(Schule 'mited to specified perils. New work in existing
--/,
3, Optio C) and i
still a matter for the Employer, requires all risks cover.
contracto requi d to carry professional indemnity insurance to cover its liability

fo esign, s_of should be set out in the Contract particulars.
consequential loss arising due to design errors not covered
a''
The contra
may be limited to a figure entered in the Contract Particulars.
,-r
773
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
'L-
.-e
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
fl,
open to the Employer are dealt with in clause 6.10 as applicable.

'++
8 Termination
91
JCT SBC05
The Employer is allowed to terminate the employmen of the

v,'
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 ti
Contractor, depending on the circumstances, th mplo might enter in an

otion.
r+.
agreement with the contractor for continuatio
fl,
If no such agreement is reached, and in all o er cases, ployely have

fl,
Works completed by another contractor 18.7), to ecid iw have the

carried out and completed at all after de of con cto ' empl
(8.8).
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 ice
completion are set ou
8 Miscellaneous
A list of definitio releva t to Co' s in sled (1-1). ules for interpretation are set
out, including a g rider bi ,Xnd that
ause, 6n' refers to an individual, firm,
partnership, c nd any of er bodv c
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).

>eca of the discovery of antiquities, the contractor is
ed to inform the Arc an to take all necessary action to preserve the status
avoid di 12 ). The Architect must issue instructions, and the
`gained loss and/or expense (3.24).
9 Disputes
Part 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.
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 s, provided
the Contract Particulars indicate that apply.
The appointment of the arbitrator rticulars, and
his or her powers are defined (
The parties agree that either on of law (9.7).
Arbitration is to be cond 005 Edition of the

Construction Industry Mo the provisions of the
Arbitration Act 1996 shal
93
JCT SBC05
This contract?
If considering using SBC05 remember that:
It is intended for substantial lump sum contr c is available or us Of

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
Employer's Requirements at tender stag ! 0th is the ntra
<<00
LA.
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
0
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 tractd by actor from a list of not less than
three names. A this 'listin prov , there isno mechanism within SBC05
whereby th an be requi d se any particular sub-contractor,
whether f hin o r aspect of the work.
uired relating to decisions on matters

are re
(whether in lieu of retention, advance
nd
the Works; Joint Fire Code; liquidated
ages; ad fluctuations; and electronic communications.
or note that SBC05 requires a comprehensive
ersta ing of its pro s, many of which are detailed and likely to prove
nsuming.
SBC05 places mor, Employer than some other standard forms, for example
o<3
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
Standard Building Contract With Quantities fact Gui
Standard Building Contract Without Quantities -contrail
Standard Building Sub-contract Agreement 1Cf ding n
Standard Building Sub-contract Conditions JCT F
Standard Building Sub-contract with sub- .jct
wow
contractor's design Agreement rlier Prac
Standard Building Sub-contract with su itten h JCT
contractor's design Conditions Pras Not 23:
Contractor Collateral Warranty for a (198
Contractor Collateral Warranty for Pr Note No
Tenant Reg s (1995
Sub-contractor Collateral Warranty for Funder Pr tice e 28: ediation (1995)
Sub-contractor Collateral War Series JCT P ote (yellow covers):
Purchaser or Tenant n Contract Tendering
(')
e 6:
Sub-contractor Collateral arranty for E ployer forms)
Nof
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 f,
central government departments. GC/W

is published for use in major civil engi
design and build, or management
government agencies and private
The form is part of a family of GC/W
versions as follows:
GC/Works/1: With Quantiti

GCJWorks/1: Without Qua -9-98)
GC/Works/1: Single Stage D nd Build (1
GC/Works/1: Two Sta e uild (1
GC/Works/1: With antiti C( struct nt Trade Contract (1999)
GC/Works/1: With titie structi ment Trade Contract (1999)
racts a misL buildin and engineering projects. The
range of contracts rks label is-comprehensive andfurther includes:
GC/Works/ nd civi ering inor works (1998)
GC/Work nd ele ical enci veering works (1998)
GC/Wor engK eering, me, anical and electrical small works (1998)
GC/Wor ment cons tants (1999)
GCNV W5'. eement fo?, bnsultancy services (1999)
Works term contract (1999)
C1Works/7. m contracts (1999)
C/W rks ra contract for equipment maintenance (1999)
or /9: for operat nd maintenance of plant, equipment and
otions (199
r facili
GC/Works/1 (19 8) With Qu ntities is a particularly complete publication and can be

adapted to sui wide ange of applications. It is similar in structure to its
-+,N
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
to be adaptable enough for use by non-c ?rn ploy (f ample
local authorities, educational institution NIna'rus c.) and
by private sector employers. To facilit e this to-produce
a form which strikes a fair balance be een the ver n the one
hand and those of the contractor. on e o er. Jai? e has been
introduced, and there is recognit ct t th er's decisions
are now open to adjudication.
The form takes account o com datns e L ham Report, and

complies with the conditio soft ing ts, Cons uc and Regeneration
n
Act 1996 (Part II). Amendme 1, ap to rks/1 esign and build forms
only, was published in_ 000 take to vernment's 'Achieving
Excellence' initiativ claus over isk management, value
engineering and w le life costi
The documen r over SQ, pages. There is JW introduction and contents list,
followed by 'the ,gtd fins w h ar set ut in a clear graphic style using
straightfor and la m7s
Li well ablishe terminology. Also included are a
Schedule f Tim s mmary fo contract administrators); a detailed
alphabetic index--t],jpe cust ofm a ry Particulars but with an Addendum for
entrie information et to uppliedl- and the tender forms. The Contract
Ag r versi s so hat th contract can be under Scots law, or under
th les an Northe Ireland.
for use in nNjor building or civil engineering works.

bnditi
y th d sub-contractors;
professional inde rance for design;
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 tie
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
A Contract Agreement is to be execu
Government contracts are not normally, execu
attestation if required.
Synopsis
1 Intentions
There is a fair dealing clause
a cooperative and open rela onship (1
The contractor is to exec e th J-'o ks with di accordance with the

Programme, with all reason le s and care, anlike manner. If any
part of the Works doe
Manager, then it mu
%
form tin
ith the ntra ands rejected by the Project
for a its own expense (31 [6]). The
terms 'the Works' fined
The contractor uire responsi ility for design work in respect
of such work care out-by hi -d-sub-contractor or supplier. The
contractor's li e either e fessional duty to exercise reasonable
skill and ca [ve A) give a itness for purpose warranty (10 -
Alternativ
ave sabified iVelf about the conditions under which he
payment i3-,Alowed except for unforeseeable ground
itions
qu f s'f oration to conform to the requirements of the
00.0
ELF
' is
:ifi i bills an ra be fit for their intended purposes (31[2]). The
con ctor must be prepar `sfy the Project Manager in respect of the execution
e
of th Wgrks, a sing the skill and care expected of an experienced and
competent contr
The 'contract'
_+.
ans the C htract Agreement, Conditions, Abstract of Particulars,

Specification, drawii st bitfs of quantities, Programme, tender, and the Employer's
written acceptance (1 [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 the mi

identified, except where stated otherwise Vyicrr rs r o
are to be rectified by the Employer (3[31).
The contractor is to receive a copy of slued 'durX fg th p gr

Works' in a form which the Project M agerco ide uitabf or r orodu
The contract period will be state in the st ct artic

fl,
__10
will notify the contractor when ay the
iing1
tae
All notices under the contra [3

tai,
e .
The contractor is required proc accordance with the

,C7
Programme, or as the Project nager hole of the Works or

ted ri i thYthe contract, and to the
ject Mana e dat tion (34[1 ]).
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
i
9 not called such) and includes
clearing of rub all Th>I s not orpo ated (34[2]). i
ris re ired t submit-a, ogram e prior to acceptance of the tender,

fl,
g reed lo61 [11). The Pr gramme is to be for the whole period

ion, a other specified information (33[11).
meetings re to (35[21), and the contractor is obliged to
e
it a writt ing requests for extensions of time and re-
ogr ss, incl
mar
at lest five ays before each meeting (35[31). If notice is

--O
gram
+-C
ven, or 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
(D-
final. The Project Manager is to keep interim decisions under

COQ
until a`final ikon is possible (36[3]). It is interesting that weather is not

fl,
iced as ay.
The Project Manag ired to issue a written statement of progress within seven
ss meeting (35[4]).
v,'
on or com etion 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.
The Project Manager shall issue a certificate when the Works, or any Section, are
r6)
completed in accordance with the contract (39).

+-.
Failure to complete the Works or a Section (which includes clearance) by the relevant
0-O+
+-,
Date of Completion makes the contractor liable to the Employer for liquidated
99
GC/Works/1 (1998)
damages (55). There is no reference to a certificate ion- rn leti
The Maintenance Period will be stated in the A f Pa icu s 1 D.

contract accepts that there might be more tha e IVWjA tenan e Perio
--+
contractor is obliged to make good defects at Is

BCD sst aand to t e satis a io
the Employer. Any arguments about liability d reirri rs ent m t wa until
defects have been rectified.
There is provision for completion of the
of Particulars (1 [1 ]).
There is provision for the Employer arly sess
a,°v
and this also relates to completio

Control
w
The contractor is not allowe o assign

written consent of the Emp yer (61). S b-lettir a rre
of the Employer or the Proj ct M r (62[1 ]).
In any sub-contract, t acto is requir to rtain terms (62[2]). The

contractor is respons ing th sub-c6 tract rs comply with all obligations
imposed upon the ntra c m t see that sub-contract works are
completed (62[41
supplf(s/may b nomin ted-(the
basis of a Prime Cost sum
(63[1 ]). The c is entirely r for the performance of any nominated
spons)onal
sub-contra tif o lau 3A is stated to apply, the Employer

will bear t the e ent of determination of a nominated
sub-con gay r ominate replacement or direct the contractor to
complete ere are o sta d procedures and no requirement to use
a pa t. The cont for is given right of reasonable objection
(6
I struoti nager must be in writing (40[31) except for a few

(Ii ted) can be o ed later. The contract sets out what instructions
are powered (40[2]).
Instructio 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).
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 is lely for th cor
the setting out (9).
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
-(D
-
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 non- it e contra t n e contractor must
bear the cost of rectificatio ssar ertest [51).
connection with the e exec
4 Money
The Contract Sum is 1 [1 ]) and
s re ire instruc ns in iting om the Project Manager before work

ems b gins is as ovided for in the contract (42).
u
f Proje t Ma age uctions (40) ay be by acceptance of a lump sum
there o . gre, ment, `tity surveyor will value on the basis set
]) in the c of o v iation instruction, or (43) in the case of other
atio d &u ptio costs may be included as part of the
tion d disru tion expenses generally is limited (46[11). The

E
in the d" ions. Interest and finance charges are expressly

O)._
e overy of expenses depends on written application from the

';-.
contr ie Project Manager in time (46[3]). The application must meet

Qn3
rinance charges able to the contractor only for limited reasons, and for
stated per (47[ and43]). The rate is to be stated in the Abstract of Particulars
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)
estimated by the Employer as the Final Sum, less the tent #f

Th . uiiy
surveyor shall send a copy of the final account to th contr for in mon s of
certified completion (49[2]). The contractor m notif agr me or herw
within three months. The other half of any o n is ased hen th final
Certificate is issued at the end of the last ai en ce Perio and AW t
contractor has complied with making good efects.
5 Statutory obligations
The contractor is to give all statutory n ices req ' e , ob ' any
and pay fees and charges arising. The E loyer ill re' urs s or
incurred. An obligation on the co r or ting rin 'pal act
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 ly with all statuto requin

storage and use of all Thing ht on to ll
6 Insurance
The contractor is ruired ma r the duration o the Contract and the longest
Maintenance Per od: e ' liai rance; in rance against loss or damage
to the Works and ng =follrein atement va insurance against personal injury
or damage f-qp e ny, (8). The evide e be required within 21 days from
acceptance nder I native ). e con actor may be required to maintain
insurance the E ployer, he contractor and all sub-contractors
in accor to the A stract of Particulars (Alternative B).
act of and in connection with a contractor's
ntractor may be required to take out and maintain
ofessional ce cover (8A).
T e co tr or is resp or damage to the Works and even extending to

for incorp the Works 0 9[61). This is in respect of any loss or
t'-6
an Things not
00-0
da ma but vrthis
rises because of 'accepted risks', defined in (1[11),
unforeseea 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
satisfaction of the Emp oyer
(19).
The contractor is to take precautions needed to take care of the site and the Works
±-a
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
Inaddition, the Employer has the rig
by the contractor including insolvency
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
Proje
ar
Mr
th
Ngerl
r a ment, completion,
in Co di on 57. The quantity
the ost to the Employer of
The Proje ground conditions (7(4)).

The cont reasonable notice before covering up
`r
work ( ns until the Project Manager has examined the
TJe ProjMan'ageriay order th, replacement of the contractor's site staff,

Manager has power to control the admittance
vii
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.
obligations relating to the protection of the Works (13),
r-+
isance (14) and the removal of rubbish (34[2]).
There is ron )for the discovery of antiquities (32[3]).
There 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
Employer (51).
9 Disputes
There is provision for adjudication for the resolution of any dispute arising during the
103
GC/Works/1 (1998)
course of the Works (59[1 ]). There are precise require, ents f 'r the
13 tice re
and the procedures. A decision may normally be xpecte wit 0 2 ays o the
notice. The adjudicator's decision is binding until e disp e is hally O et& ined
legal proceedings or by arbitration.
Arbitration is included in addition to adjudicati ea of dea ng wi disp es

(60[1 ]), and the arbitrator is given wide pow under t co ract.
104
GC/Works/1 (1998)
This contract?
If considering using GC/Works/1 rememb
This was the major form for lump c fted f us

government, but it was substantially vise tion t alto
wider application, including use by rivate sector
intended primarily for use by govnme
a version for use with quantities itho
it can be used for work in End rthern Ireland or
Scotland. In the latter case iffer nces in arbitration
resulting from the contract eing n Irelan and Scots law. There
.-f
c(0
are relevant references to sta e law ntries, and a different
Contract Agreement f Scots er helpful information is
given in the Comm tary unde Back I
it can include co pletio tages, de e contractor with professional

r,.
'v,
indemnity ins uranc , sec rity measur ession, acceleration and cost
savings, bonus no inati 0 o f sub- ntracN 'suppliers, mobilisation payment,
alternatives f r adv ce o n ac unt, bo lieu of retention. The wording is
clear, with good raphi Iyout. roced are logical, and there are many
interestin featur sin e ro ons, for exa ple, that the contractor is to provide
regular gress p its for /com mer by t contract administrator, and that the
contractor b rs any losse_ resul c from failures on the part of nominated sub-
'
con actors. Qn e whole the orm aces more risk on the contractor than JCT
SB 05.
hen ckmpNing f act detai , the Abstract of Particulars is a vital document

whicNo/tailor
tines t Manager, contract administration should be relatively
0)(D
ihtfor obligations and responsibilities are clearly stated, the person

0a)
derable authority, and the procedures are not arduous.

eep a careful watch on the Schedule of Time Limits.
he 199 epor recommended that government departments then using

am
G ork egin to change to the New Engineering Contract. The current
sh uld
fl,
199 G 3 or s/1 f mily of forms may be seen as a robust response to that

suggests It has merged as a versatile and well structured document which
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.
105
GC/Works/1 (1998)
GC/Works/1 With Quantities (1998) General

Conditions
o
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
i
bold and major initiative in draft onst c co racts. This resulted in a

form which is adapta ed to ble in lump sum, design and
build, or managem t procure d for en neering and building works.
The Engineering a Con ru on Contra a -Third Edition development of

what was first calle the ew Engine tract NEC). This was an entirely new
clean sheet' hto draftingir
cons contracts undertaken for the
Institution o. Civil
gi
ers. pare by a panel of engineers and lawyers
chaired by r Mar Barn of Coo and L brand, London.
was to
r+'
aking one purp document suitable for traditional procurement,

n an c)or ma gem t co acts. It was further claimed that it could be
ably adapte fo ost t s of civi engineering and building work, from large-
cale pr sect mestic-sca work. Although drafted as a head contract, it
s origi II houg t that' could Iso be used as a sub-contract, thus providing the
tein b k to ack compa ' ility. The language of the form was such that it was
fl,
°v,'
uitab le r use under UK law and also overseas.

f fici form to be exportable, understandable, and therefore likely
,-r
ity__s.V
ad to fe isnutes: was also drafted with plain language and relatively short
,.,
clauses kept e precise meaning of some of the more unfamiliar

pro
terming er, Has yet to be defined by case law.
3 Good m n tfnent n the part of all parties: it was felt that there should be an end
0-0
to adve arial posturing by bringing into the contract an obligation for frank and open
fl,
c>.
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
r(6
completion.
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:
f
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 ly cobble su
that terms of appointment for consulta sand *u tors-sliold in
contract;
that consideration should given to a
available).
omm nded tha

f'-
The Latham Report also Departments should

begin changing to the th a 'the use ded) by private sector
.-+
str,
clients should be gly 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 bus
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 publi tion e th intro ced some significant changes to the
suite. Ne conce is register, 'Key Dates', key performance
fl,
s h a nsla
indicators a thir rt introduced. The number of secondary
opti s ee increas been made to existing clauses such as
those dealina1with 0 ion events, correcting defects and adjudication.
The 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
in'
fl,
-0.
intended as a refer ment, and contains Core clauses and Optional clauses.
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
rpm
O..
108
NEC3
document to the type of contract requir /xample rice

Quantities or Activity Schedule; Target ; Cot
eim
Management Contract). These Main 0 ase relat to
payment system. For convenience, ver 3 with t e cor
with each of the six Main Options ar
+n.
There are also Secondary Option ses hic or not as

required. Some can only work in n h cer lauses. There
are 22 headings (X1-X20, Y(UK and K) w can ted as required
to allow for performance bon part erin y rma icators; advance
payment; sectional comp) imita o ont c is bility for design;
fluctuations; retention; bo mp delay es; low performance
g to ta' e co itions to the intended
The NEC3 is a no I piece of draft in wage' but non-traditional

terminology could ause roblems
s er inf tion. The use of the present
tense throughout is Iso r her disconce d has een criticised by lawyers when
attempting to nstr its terms.
Some conce `ts will to the

to more traditional standard forms.
(o,
oncer p_0
For exam , and the sum o o
m contractor is paid the value of work
which is witho def is is ou delay or be covered by immediately
min
following ork', h mea s that soective work will be paid for during the
tho h the co ractor ultimately be responsible for correcting all
'vi
proje
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
uently nt.
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
r"6
e recently introduced risk register is a further tool to

identification and management of potential problems.
Use
First, it is n sa select the appropriate Main Option. Then the Secondary Options
can be considered and incorporated as desired. It is necessary to determine the make-
up of the contract content before completing the statements of Contract Data. The
fl.
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
109
NEC3
by the Contractor. Because of the number of options le/and tRe

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

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

Section' (10.1) of the Core clauses:
There are clear rules relating to unica
submissions, records, etc.) (1
Early warning is a significan ntract,,

difficult concept in practice
A register of risks is set start the pro ct ari incbded in the Contract Data.
The register may be a du g the urse f the roject, and the contractor or
Project Manager m a risk r uction ting t discuss the noted risks (16).
quired 1ecanager
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 I lows y the contractor (21) and questions of copyright are
ntractor is respons 'ooperation over providing information, and the

is 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
Starting and completion arrangements are straightforward (30). Possession of the site,
vii
access and use is subject to conditions (33).
110
NEC3
Programmes should be identified in the Contr ,for other

Project Manager by the contractor. If the c fails ro
25 per cent of any amount that would oth ue o the o n t r
a
until the contractor complies (50.3). T b incl ed is des
Programmes may be revised subject to
The Project Manager is empowered to i ue iostru

not started until instructed (34).
The contract may stipulate ' y Dates hi defin'
complete. This allows the work f on cont or ge
dovetailed with that of anot urre the Empl e hr
a key date can be claimed ainst t efault
Procedures for using or to art o e Employer are subject
to conditions. Posses on of a6 ipa rtef the whole site, is dependent
upon certification b the Proiect Manag (35).
The Project Manager uire the contr it a quotation for accelerating

hieve ompleti contract completion date (36).
Where dela occur terve ing events, these may constitute
Compensat, n Eve re are fisted, nd for weather in particular, precise
req u rem is can e in de'd
i Contract D a. The contractor is obliged to notify
the Projecf lanag f such/events, Project Manager will decide whether
compe ue (61). viousl t early warning' requirement will betaken into
acco on Ev tsar at d a complete Section 6 in the Core clauses.
instruct the ontractor to submit a quotation to deal with

ssoaa e delays (62).
pensation Vents is a matter for the Project Manager in

accor pin rules and procedures (63 and 64). The Project Manager must
if the con cto his or her decision.
rol
he early o
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 plant-(

7 _
Project Manager, Supervisor and others notified b ect NP-Qag
The contractor must obey instructions from the Pr

authorised under the contract (27.3).
The contractor is wholly responsible for th work o
contractors are subject to acceptance by the
Tests and inspections carried out by "the tr ay b,;-,, t&
Supervisor, who may also order the c tractor to-EkhW o sts,
own tests (40).
The Supervisor may instruct the c tracto rch for-,defects (
not the Supervisor notifies him the ractor
end of the Defects Correction
Where Works have been t )ken over y the Emuploy ject Manager is to
,-+
Q..
arrange access for the con actor o rrect defec Whe it is agreed that defects
need not be corrected, then there ay be char
ork nformation and a cost
reduction (44).
The contract mak s no r teren to i n ent, ther than the contractor's
obligation to assi the b efitxA co racts on termin tion of his employment (96).
4 Money
An Addend ssential is on NEC3 in the United Kingdom),
takes acco saa Gra nstruc on and Regeneration Act 1996 and
this affec mee a set ut in Section 5 of the Core clauses.
.-«
e Project Vana( a payment on or before the date on which a payment

e, and ea d payment is made on or before the final date for
fl,
p meftx l.)-i).
The oject Mana ust show the amount of payment due, subject to
any Emp u ction, and the basis on which the figures are calculated
(Y2.2). 1
The date on whit aymen ecomes due is seven days after the assessment date, and
the final date for payment is 21days after the date on which payment becomes due
(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 i respe o o1e t

Manager's certificate which is due but issue late. T e
in the Contract Data (51).
Suspension of performance by the cony fa r i the event o/the E oykXfailure

to make proper payment is treated as Comp sa n Eve (60 inco orated by
Y2.4).
There can be price adjustments fc(r do i ion under 6pplementary
Option X1 (applicable only for Vain Opti D) culat o h basis of a Price
Adjustment Factor.
The contractor is obliged to tify t Pro' ct r if /he becomes aware of
anything in the Works do hich oul e ill al
0
If the Project Manag r corrects th Work form 'on at it complies with Statute,
this may be a Comp
fl,
fl,
The standard isks to ec

ob
ried b he Em loye are itemised, and any additional risks
vii
to be carrie by th ;),y0-r,.my Bred the Contract Data (80).
i
Risks not emised s b ng ca ied e Empl yer are to be carried by the contractor
(81).
Each arty in m k ies th ther 'n resp t of claims, proceedings, compensation or

co s arisin fro n ent w 'his at sk of the party concerned (83).
I uranc esp nsibil ties ar abled a d as stated in the Contract Data. Policies are to
be en o in joi t names, a in the case of the contractor policies and
t to acceptance by the Project Manager. If the contractor fails
~.,
fl,
ployer may insure and charge to the contractor (85 and 86).
es, policies and certificates must be submitted to the

(1)
to submit, then the contractor may insure and charge

,-+
ils
Details of jurahce obligations and cover are to be stated in the Contract Data.
7 Termina
Valid reasons for termination by the Employer and by the contractor are set out in a
Termination Table (90.2).
Inthe event of termination the Project Manager issues a Termination Certificate and
within 13 weeks certifies final payment (90).
113
NEC3
Following the certificate, termination procedures ar

Termination Table.
The Employer may elect to complete the Works hi er co
and may use any plant or materials to which h
Payments which may be due on termination ar, as set o
8 Miscellaneous
Main Option clauses can include Activi Sch

(for B or D).
Use of the NEC engineering and con uc su ntract a
services contract seem to be re i red ss o ich
incorporated.
Secondary Option clauses ca beincor p rate to ma r price adjustment
+>,
for inflation (X1); changes i the l 2); m ulti e curr cies 3); parent company
guarantee (X4); sectional mpl ion (X5); bonus r ear 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
`dam
care (X15); retentio (X16). low erf or c mag s (X17); limitation of liability
and aTditional onditions of contract (Z) may
-Co
(X18); key perfor nce in

be incorporated in whici e stated i the Contract Data (option Z).
Option Y(UK)3 shou e inc6rpora d into Contract Data for all contracts to which
the law of E glan les, a fern I` nd applies, and is a contracting out
of third p y rights Cont (Right of Third Parties Act) 1999.
9 Disput
Alternative dication met

out in Options W1 and W2. Option W2
tbeu using Grants, Construction and Regeneration Act 1996
plies to t
der`Qp n W1 the contract and the Project Manager are to follow
etailed procedures , including the limits on timing as set out in the
ksation TablLd Botion 2 Fs a procedure which complies with the Act.
The adjudicator final and binding unless and until referred to a further
ecision
'
'tribunal'. Whether this to be arbitration or legal proceedings will presumably be

is
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.
114
NEC3
This contract?
If considering using the NEC3 remember tkt:

The idea of Core clauses to which sele( e al clause and S
clauses may be added to produce a tract W ci n be t rek o a pa

of circumstances is seductively attractiv Nkor
Thkredi n this pproac
and the various options can res n s W ichme lawy rs
producing great variability and risk o
%
nc
The Contract Data and Works Info at io tia o on is of the NEC3. The
former is not to be changed ntra orks Information
supplied by the Employer n be p sented in a variety of
formats, and is information ne sary a
There are no stated `trictions' e law of the contract, the
language of the con ract, a n d t r)e curren of th onrdt should country be entered in Part
One of the Contrac Data. Cha ges in the w of e in which the site is
located might be a mpe sation Ev p ' n is incorporated. Additionally
Addendum Y(. 12 es account ous ng Grants, Construction and
Regeneration ct 199 Adde K)3 akes account of the Contracts (Rights
of Third Pa ies) A 199 will be applicable for England and
Wales, N rthern relar (UK)3 will be applicable only to
England an Wale dd Nort ern Irela
As m t cted in a for w6 this engineering provenance, there is no

refe er to an hi ct or a tity sur yor by profession. The key persons are the
°,v
lect M er, ages the pr curement of the Works for the Employer; and
fl-
Pr
t Supe sor, who certai responsibilities on site for the Employer with
who he or e has r. ervices.
m requires selecting or assembling the appropriate options, and

releva entri 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.
There 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
vii
serious problems.
115
NEC3
Engineering and construction

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
Engineering andprofessional services contrac
Engineering andprofessional services contract:
Engineering andconstruction short
Engineering andconstruction sho
c22222-,,
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
Commentary (rela
Brian Egglesto
The NEC3 E
Blackwell P,
116
Intermediate Building Contra
The Joint Contracts Tribuna

Minor Works Building C
The Joint Contracts Tri

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

SBCC Forms of Co tract
Just what constitutes a shorter form is arguable. For the purposes of this book, contracts which are
3.O
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
(Do
categorised as consumer contracts are covered.

0
118
Traditional procurement: shorter lump sum forms 7
JCT IC05/ICD05
Intermediate Buildi
Background
With the introduction of a then 0 oplii he Standard
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 i 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 oc' n of District Councils
and the Association of Me o lita ut rities, nterm ate Form appeared in
l
September 1984.
of 12 Am
IFC84 was the subje h was to meet many of the
t
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.
The 1998 E tion nterni iate F as basically a consolidated version of

IFC84. Th most entitled the Intermediate Building
Contract n twos versa orporates m ny significant changes, the scope of
.-+
i
which is ilar t rthM for SK05. T 'r provisions for naming sub-contractors
have be n retained.
e Int m iate uildi Contract ifs now published in two versions, one 'with
tracto ' d sign' which ision for the contractor to design an identified
-
ort IN of th Work (ICD05), ar one which does not (IC05). In all other respects the
am=
verz ins a e id enti al, therefore the points raised below can be assumed to apply to
bot version unle Vindicated otherwise.
versions how run to over 80 pages. There are eleven Recitals in the
v_0
n,.
ICD05 version an 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
options, ed su -contractors, forms of bonds (in relation to advance payment, and
off-site materia s and goods), and fluctuations.
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
,-+
-l,
Q-0
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
Traditional procurement: shorter lump sum forms
JCT IC05/ICD05
expands the range of projects on which the form

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

-+,
These refer to building works of simple c ntent a

c,_.
Oo'
installations. Most important, there is a remin th this

,-r
be priced entirely by the Contractor, and t

r-+
eJ mu
tea,
billed or specified at tender stage.
JCT Practice Note 5 (Series 2) suggest suit ty isr ica`t ya tract value
of up to f375,000 (at 2001 prices) act de?iQd not ex'ceeN 12 months,
but accepted that contracts may 1ong`6,QTKkn the' its suggested.
n-0
Experience suggests that the form assfu 0 'siderably larger

v.-+
e use o
projects and it is the nature e ich sh the mate determinant.
It is important to note that t e new Prac does ica any limits in value
or period.
ICD05 lists an additional crite ion fd suitabilit !e t m is suitable where the
contractor is to design part the Arks;and the requirements for
that design have be n detai r on the mployer.
The notes state c àrty th t it i n ble for desig and build procurement. The
Employer is requi d to a of t an ar hitec dministrator (Article 3), and to
name whoever is a inted to un rta ke duties required of a quantity surveyor
(Article 4). T twervison and Pr ontractor will be identified in entries
to Articles
e Co 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
tract Do me elude Employer's Requirements, Contractor's Proposals
d a ODP-4halvsis.
CS'
Th ecital (fifth ws the contractor to tender either by pricing the

itemi bills, Specification ules (Option A), or to state just a lump sum based
on a Spe t itemised for pricing (Option B). If the latter then the
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.
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
The contractor is obliged to carry out an in acc r ith the

Contract Documents and with the He th a d stat or equirements
(2.1). The contractor must compl to the Co tracl Designed
Portion, and comply with all instructio of integration
of the Portion with the rest of t
The quality and quantity of wo included i
and is related to the docum d.
winged other' ments it prepares in

relation to the design as real to`Pain th Contractor's Proposals
(2.10.2, ICD05 only) d a when necessary' or as
stipulated in the Co, tract Docu 2.10. on
Materials, goods a d wor mNship are to standard set out in the Contract
Documents (2.1 an 4.1) including Requirements or Contractor's
Proposals as r sta tad to be t the chittL-Et's satisfaction, they are to be to
the Architec s reas ?na satis her no standard is set out, they are to be
a standard iate Wor 2).
e read
d Apndix ve priArity
pe case o sisten 'rrors i r between documents (including the tender

fticulars for ed sbb`-contra 'tor) corrective instructions must be given
O+'
13.1}
act bH&, exce, t stated otherwise, must be prepared in
,N+
ce with tVe Standard Method of Measurement 7th Edition (2.12.1).

plicable; he co ractor must be provided with two copies of the information
to Infor tion Release Schedule by the stated times (Third/Fourth
ecital and clad 2- e contractor must also be issued with further drawings as
reasonab t-6/complete the Works (2.11). Use of them is limited and
s is to be respected (2.8.3).
The CDM ons oblige the Employer to nominate a CDM Co-ordinator and
(110
where relevant a Principal Contractor. This becomes a contractual obligation also

O73
(CD
(Articles 5 and 6 and clause 3.18) and any need to appoint a replacement is also
covered (3.19).
121
JCT IC05/ICD05
Dates for possession and completion must be enter CoZe a Partl .i

contractor must proceed regularly and diligently iol on r be
.-+
N-0
O_3
completion date (2.4).

There is provision for dividing the Works into Se
commencement and completion dates, and es
'-'
liqu
xte ing t e (
-'.
section. All provisions relating to timing, for I
apply separately to each section, except at th& ly o Fina
t ex
.-.
Notice of delay must be given in writ hg by t acto the Works (on

any Section) appears likely to be e con u st any information
reasonably necessary (2.19.4) he Arch cons we pletion date and
to notify the contractor of hi s or her e ision, riting, ink as he or she is able
to see the effect on comple on (2 9.1 Although time
. it is stated, this must
be within a reasonable time Relev nt 'event ' are for, which the Architect is
empowered to make n on 0). Re Xew nsions up to 12 weeks

beyond practical co pletion etion
ils to c on date, this act must be certified (2.22).
may clucte vered by the Employer (2,23).
rtified by (2.21).
rectifdefects -30) unless the Employer decides

late deductio instead.
IpioY,( to occupy part of the uncompleted Works for storage

.,this is p ssible roper insurance arrangements (2.6).
r to assignment with ut'itten consent refers to 'the Contract or any rights

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

5
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
122
JCT IC05/ICD05
CWa/P&T, CWa/F, SCWa/F and SCWa/P&T. te JCT Also p

relation to the Employer, although this is t referYed to/iq_the orm.
All sub-contractors are domestic. There i rovisi or re firing sub-

contractor to execute identified parts e ork (3.7). T,14e proy cans ating to
named sub-contractors are set out in chedu requ the se of e standard
form sub-contract ICSub/NAM/A. T methods ailable, roug naming the
sub-contractor in the Contract Do or an ru n regardi i a provisional
sum. Both require the use for o ICSu fen
ICSub/NAM/T.
There is no provision for a is pr ctice should not be

`1,
ee n s, and sbl h
necessary. However, the N SSma ersio es offer ble clauses, although
care should be taken to state at this sub- d not under clause 3.7.
iting ns empowered include for

LAC
stponeme of provisional sums (3.13).

The contractor is re u red to have a com
i t pers -in-charge on the Works at all
reasonable times (3- an o permi e f the Employer's clerk of works
(3-3) who ha Zed
ed thority.
or m teria not co-r4efm to he contract, the Architect may order
vaI fro the ite` Instructions re empowered concerning inspection
/s
rt..
x,(3.14 there a par elpful provision concerning similar work

kh may be s, spect ft
owing established failure (3.15).
Aled to'arrVout wo not forming part of the contract during the
fl,
is in possess] in subject to certain conditions (2.7).
Co VAT-exclusive (4.3) and may only be adjusted as provided for in

ontra
or fluctuations (4.15 and 4.16). These are limited to tax etc.
chedule 4).
ronal ums have been included, instructions must be given (3.13).
ed, i 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).
Applications for reimbursement of loss and/or expense must be made in writing by
ro
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
O-0
because of action or failure by the Employer. The procedures must be followed

precisely. Other rights at common law are preserved.
123
JCT IC05/ICD05
Interim payments to the contractor can be at pre e` stag (4*6 -mot

intervals of one month (unless stated otherwise). R is 5 r ce unle an
alternative rate is entered in the Contract Particular 05 cles n use e ter
'retention').
ulatior(s (41 ).
t
Interim Certificates show the amount due and state
Within five days of issue, the Employer must otify the e
amount of payment it intends to make (4.8) enn to ust
t
Z=+,
be clearly stated in a written notice whic also is ro ction,

and this must be given to the contractor of less tha fore for final
payment. The final date for payment to the Interim
r-«
ays ue
n-0
Certificate, and if no valid notices 1ved e Empl ent in full

+..
ve
ctintei st of 5 per cent
v,'
is required. Failure to pay by the fina

-Q!
to for' t wi
over current base rate, and can give the ontrac iaht t u n work (4.11).
Within 14 days after practical erim date-of-isfic

_>,
which only half the retentio money-Ls (4.9

There is a precise timescale or t preparatio f a count after practical
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
alGertificate wi In regard to notices, and the
t is 28`dAys fro the ue of the Final Certificate (4.14).

ate,
igatio
tractor' duty t ly witK all sta tory obligations and give all required
1). T con racto itled to r over fees and charges not otherwise
2 3).
contra-c o notify, the Architect if it finds any conflict between statutory

)uirement Contr t Documents (2.15.1). The Architect must issue an
truct ntrac r is not liable for any non-compliance if it results
ha l carried ou
g- in a ordance with the Contract Documents or any
ion (2.15.3)_
carry out limited work for emergency compliance and
n to be valued accordingly (2.16).
The contractor is c-orAQct&ally obliged to comply with the CDM Regulations and
°Q(D
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 a particular contract includes will depend to a large extent on the entries in the
124
JCT IC05/ICD05
Contract Particulars (e.g. whether option cla
.-+
cover required, etc.). The Architect may dt i uei t
documentary evidence and pass policies t to r for ecki
The contractoris to indemnify the Emp bnal in' or

.-+
injury or damage to property other t an the ,1 a 6 2).

backed by insurance, and an entry wi state the
If instructed, the contractor is t the Employer

against risk of claims arising d 'e to lega nc ere exceptions, and
ian
i
damage must not be attributabl glig e b t Con ctor. An entry in the

Contract Particulars will in her r may be re and the amount of
cover to be provided (6.5)
Insurance of 'the Works' is isks vJ e concerned and should

vii
be for full reinstat ent va can either by the contractor

(Schedule 1 Option A) or by th Emplor (Sch ption B).
Insurance of existi ctures and tents matter for the Employer
vii
str s a
(Schedule 1 Opon nd united to
i i New work in existing buildings,
although still r the ploye
or is r uired to rry prosional idemnity insurance to cover its liability

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

m Fire n Sites is to apply (6.11) and if so, both the
tractd y with it. In the event of non-compliance the
dial measur which have to be taken.
thdrawn and is no longer available, the situation
inati
ploy terminate the employment of the contractor by reason of
specified defaul the event of the insolvency of the Contractor. A warning
notice is rca-uired he actual notice of termination by the Employer.
he contractor's insolvency, whether or not the Employer decides

ate the co 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
7 Traditional procurement: shorter lump sum forms
JCT IC0511CD05
Either party can terminate the employment of the con r listet neutr ca
(811).
The respective rights and duties of the parties co qrning-ymeniremova
completion following termination under clause 0 8.1 1 are se out in d*,tai
clause (8.12).
8 Miscellaneous
Definitions are included 0.1).
There is a contracting out of third part iahts,underth)a CoNf- acts
Parties) Act 1999 (1.6).
t
There is no reference to access for t Arch i
There is power to exclude pers

quities.
Contract Sum Analysis (Sec cital) is define.
(original series, green cgver) seful ex
ITa n
2.5).
9 Disputes
PartII of the Housing rants, Cons, (ructio d Regeneration Act 1996 gives either
party a statu ifferenl spute arising out of the contract to
adjudicatiq Article 7 p
.
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 greed method for final determination of disputes

(Article
The appointment rbitr for is subject to clause 9.4, and the arbitrator's powers
are clearly defin
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 rticle

then Article 9, legal proceedings, will auto apply'
127
JCT IC05/ICD05
This contract?
(-1
If considering using IC05 or ICD05 remember tha
It is intended for building work of a simple con hout special. t instaRatio

L.0
and where the work is adequately specified o fo tender The E plo rA is

required to appoint a contract administrator quan% i s eyor.
Q30
If used for work in Northern Ireland an Ad tion ch le sAai aisE incorp n ated.
The form is not suitable for use in Sco nd, an re site sisin
too
-+,
Scotland, the appropriate SBC form sho d be med.

i-+
A-4
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 before work is
+`J
de n in io
carried out, the Employer wo era e Fu he to se ut t

ctly 0 hat information is
S`<
required and when in the Re m uirements. SIlO also no t at ICD05 does not
include the detailed design s bmissb-n-E rocedure s out in BC E 5 and DB05.
r°+
It can include for partial p N ssess o n and io3

etion. There are also I
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 allows for sub- ntrac be n ed, anc the are two procedures. The first
ay seem inflexible but brings greater
-+-
requires the naming be pre-con fact an

^.,.
(Do-
certainty. Th rsecon a s for ming urih construction and is covered in the

contract by provisiona m: n bot es the b-contractors are domestic and the
responsibi ity oft e in C tra r. Use of d icated documents is mandatory with
named s -contr for As e mai contr for is not responsible for named sub-
.
contractor d iqn, e ployer should be ised to use an ICSub/NAM/E agreement

b-contr for involved in some design relating to their work.
L~'
for ch na d
at.
W en a pz etin the Orm, cisions are required relating to matters including

de rm"ossessid b ds (fo dvance payment, 'listed items'); insurance of the
u
W o s; Joint Fire Cod Ii A ted damages; fluctuations; and electronic

-cations. autior is peded over naming a quantity surveyor-this should not
Wo'
co mm
0j1
o
L.0
5-.
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-
If acting as contract administrator note that while the procedural rules are less
tom
demanding than those for SBC05, care is needed to make sure that action is taken
(-n
within a reasonable time even though no time limit is stated. This is particularly so
concerning named sub-contractors.
Amendments are issued by the JCT from time to time. The form is available on disk.
-43
The RIBA publishes contract administration forms for IC05 and ICD05.
U'7
128
JCT IC05/ICD05
Intermediate Building Contract

Intermediate Building Contract with contractor's
(lD
Intermediate Sub-contract Agreement
p>>
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
nonOnO
Sub-contractor Collateral Wa
Sub-contractor Collateral
Intermediate Building Co
Intermediate Buildin Sub
129
JCT MW05/MWD05
Minor Works Building
The Agreement for Minor Building Works,

for minor building operations and mai tenarse
ea
N
vrk
in
whi
Form of Building Contract (then JCT63) as clearly i
long, compared with nearly 40 pag
with bills of quantities, and was sta.
t oe f
suita
fn op
Fo=t w
here th
not exceed £8,000.
In the 1970s the RIBA, consci nae 1963 Standard
Form and the Minor Works 4greement,; set ew, simpler 'short
vii
form' of building contract. IBA C approve with acclamation in

June 1978. The aim was fo a fo page contra_t itions written in plain
English and structured v un r eight h accepted the proposal
in principle, but the re po heicar vrking ip w to-draft a new 1980 version
of the Minor Works rm. It nifica nce, wever, and this was the first
time that Conditio in JCT rranged under ection headings. Incidentally
the 'short form' oncept resu ce in the, rafting of IFC84.
MW80 was the subje of 11 Ame e last of which was to take account of
tai
the Hou7ntrat tructio egern tion Act 1996. The 1998 Edition
of the Amentfoi ildin orks w s basically a consolidated version of
MW80.
In 2005 the inor Buil&"orks was revised along with all the other
J CT 91nzb4 f s, a new editions were published, entitled the Minor Works
B ding Con ?ract,àq inor Works Building Contract with contractor's design.
iifica.nt c course, the introduction of the new version allowing
hkaWcontracto 0 derta a limited amount of design. This new version will
ubt be very welcom as is requently the case in practice that even on smaller
i
ome d gn ' put om the contractor is needed, and previously there had
m ithin lthe JCT suite.
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
'"*
Q.;
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.
vii
130
JCT MW05/MWD05
The Minor Works form has always been a ice for s all pr cts.
73+
editions are undoubtedly an improvement ands en uraq
extensive use of this form.
vim,
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 but the act Conditions take
f
up only around half of these. he Ag nclWe,,- ur R itals (five in MWD05)
and eight Articles, and thon
sons ar t un on headings.
A two-page Contrac 'Particulars at th e form requires entries of
information relating o the rt. There two ed'dles at the back of the form.
Schedule 1, incorp ated by clause 7- ers a udication, and Schedule 2,
incorporated by .11, s,a fluctu tic Guidance Note is also included
at the back of
relativ e. However, it should be remembered

ressWstated be the entire picture. Terms might be implied
e used with thought and treated with care.
3 use aears on he inside of the front cover of both versions,

et o dance Notes. These give a clear reminder that
in the G
rere the ient as engaged a professionally qualified person to
e contract a inistrator in administering the terms. It is for use
?minim works of simple character are to be carried out for an agreed
fl,
fl,
sum. T not for use with works for which bills of quantities are
or ie d tion is likely to be such that full labour and materials
fl)
fluctuations provis e r quired. There is no provision in the form for the Employer
o sub-contractors for specialist work.
The 'with 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.
,-+
There can be 'Contract Drawings', a 'Contract Specification' or Schedules which are

fl,
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
fl,
131
JCT MW05/MWD05
Recital). There are no supplements published to exte d the range ohis cobra
In many instances where the Minor Works Agree ntis est work,
Housing Grants Construction and Regeneration A may rh"t )ply a d the tract
will therefore not be subject to the statutory re nts relatin to ad ca
and payment provisions. Nevertheless, th for ms
adjudication and certain procedures relating
c
pa ymen If
they may be removed but only after takin lega dve.
e the Vequir men t for
t st ute, . rey
nsumer nt or oil o which
Rgula ns 1 (SI 4/31 might apply
care should be taken to explain th t the c umer, or mer should
take legal advice. The JCT now as of tractscially d for use by
consumers in connection with work their consultant has
been engaged, which may b le.
Synopsis
1 Intentions
The contractor is obli lete t s in accordance with the
Contract Document whe applicable and the statutory
requirements (2.1
e Contr
or is toolMe further infor riatio elating to the Contractor's Designed

is reasonably`Rec ary (5, MW, 05 only).
itect ny furt r information necessary to enable the

-4 in MWD05).
nsisten' s ir1 or betw en Contract Documents shall be corrected and this may be
eated as a 'variatio nstru n (2.5.1).
e rxa 0 i l
arty uncle s to older that it will comply with the requirements of the
rchitect is to act as CDM Co-ordinator unless the name
.
The,
erest d in Article 5.
2 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 Yentitle'dc

damages (2.8 or 2.9) and the rate is t tract P,,i i.cu
there is no reference to a non-compl ion ce
Practical completion is certified by the chit V (2
tify
ate..
Following this the contractor is lige
three months, although a long period m b sta ) A
by the Architect when this o ian ha en ha e
There is no provision for eferi-M ssior ,- s_r for p

sectional completion.
nt witbeut Written c
itten konsent to subwcd ract is
erson' Ts to
e &,Qo pro ion fdr a cl
sub-contrac. or, and no provision for including a

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

i lnstru ns ma include variations (3.6.1) and this would
-a,
(Dg
onement, s no specific reference is made elsewhere.

or testingg"r ripening up of work. In the event of failure to meet
E
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.)
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).
0-)
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) Archi
issue certificates (presumably to the Employer). per ce)
a different figure is entered).
Certificates of Progress Payment will he mod s of
calculations (4.3). The Employer must n the ntr for
i i ou nt
he intends to pay not later than five days a t e is of ttene te. Any
intention to withhold or deduct sum must e g by o and the
grounds for such intention must b rf7state is n tice t be iven to the
contractor no less than five days date aymen final date for
payment is 14 days from th e t
date issue rtifi te, nd if o valid notices
have been given, then paym e ' ull quire e to the final date for
payment will attract interest f 5 per ce the cu se ra and can also give
the contractor a valid right to stop wo 4.7).
A penultimate certificate is to belissued withi4

releasing all outstandimo t half Ne
The Final Certificat 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 tion fo the f al a 8.1). The ntractor is given three months
(unless a different "ciure is ted in he Contrac iculars) from the date of practical
completion t this.
's apply to thèFi Certifkat'e with
Q-1
r,
The fi a to f ent in this

ue of e Fi al C tificat
ations
s the contkactor's mply with all statutory obligations, including giving all
n-6t
contractor is to not chitect in writing if it finds any conflict between

require is other contractual obligations. Having done that, it will
S under this contract (2.5 or 2.6).
The contractor 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).
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 a contractual obligati

Particulars (5.3).
The contractor is obliged to arrange insur

damage by perils specified in clause 5-
should 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 for if it fails to proceed

satisfactorily with the, obligations under the CDM
Regulations, or if i he Architect may issue a
warning notice, bu r for the Employer.
7
The contractorKnay or stated reasons (6-8 and 6.9).
Either party
suspended
The resp
the Condit
'Architect, presumably this is implied.
n of any person from the Works (3.8).

e 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 1 apply.
The appointment of the arbitrator is subject to A
defined in Schedule 1.
Arbitration is to be conducted in accordanc Editi
Construction Industry Model Arbitration Rul
136
JCT MW05/MWD05
This contract?
If considering using MW05 or MWD05 r emb tha .
for small building work q a sim

It is intended one-off' ture, suitable his
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
be used where the Employer has e ag p essi ea
C aDSUILanr ro e ct as contract I
administrator. There is no prov, ion b o antit a ra aitne ugh a quantity

surveyor may be named, it is ith no eci le r th on ilA ions.
If used for work in Norther I r' Ad u tion Sche'du'lesh Id be incorporated.

The form is not suitable r use c land wher th intended work is in
Scotland, the SBC Scottish 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 lude c pli iwith 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.
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 a con ctor the fi t tim
Am ndmeri r sued the fro time to time. The form is available on disk.
T RIBA ublis sc tract o ministr tion forms for MW05/MWD05.
e JCT'su gg atted 98 was Appropriate for contracts up to 100,000 (2001 f

pri ) in va but
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
sle
Ded
fo large ojects. Although the conditions are clearly worded and the
aLru are b f and easy to administer, it should be remembered that the
p
d-w may imp er in a e
ition to those expressly in the contract.
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
projects, or se wh ch require more comprehensive conditions, then IC05 might be
a safer nice. For ork on domestic projects, perhaps consumer contracts, then the
fl-
JCT forms o e owners might be more applicable. The Minor Works Agreement
E
has featured in 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.
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 m 0
specified buildings or sit `s'. It iced the J ions of Contract for
Building Works of a Jobbin Chara ich w originally introduced in
1990, but not re-published al with in 1998.
The form is for e ployers w o ha a bu which requires small jobs

undertaken from me to in the 6
and u re o paw and maintenance, and who
would be reasona y exp rienced in co oning uch work. It is not intended for
use by home owner does no i role of a contract administrator.
is inte ed small proj cts, but is not to be used as a term

i
for w h t Mea m Cont ct would be more appropriate. It allows
re
fferen ases or pri ng, either as a lump-sum contract, or as a re-
ntract, ixtu of the two with defined work being priced as
ition k mea red using an agreed schedule of rates.
he for lativ y sh
is running o 18 pages in total. Unusually for JCT contracts,
06o safo rm of in tatio to Tender, and a form of Tender. It also includes
ai
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
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
agreement has been reached, and there is therefore o nee or reals, acle
an attestation. As an alternative, as explained in e Gu anclotethe 06
O_°'
conditions may be incorporated by reference in an ployers r, in-Nhich ise th
relevant parts of the form should be marked 'no
It should be noted that the form does not incl de any ce to health did saf
or to the CDM Regulations, although there mi t be occa will ap
fl,
either in full, or to the extent that Regulati ffe desi
The form is generally compliant wit the ts,

Regeneration Act 1996. It should be not hovu ver, ,
for payment in a single stage, for so this not com vh ith
several stages for payments will ne ified.
Synopsis
1 Intentions
The contractor is obliged to blige orry out Works` a regular, diligent and
competent manner, in accor ance ith all appj islati n' (2.1).
As there are no article ,th carried

tender and the Cont ct Pa rti
bliged, further infor.

o car
epted
jes, these w,
work ma or shall be completed by dates that are entered in
ployer must fix a n tion date if the contractor is delayed for a 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 is no bar to assignment.
140
JCT RM06
There is no provision for naming or listing

included in the specification.
t
The Employer may appoint a 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 s, or failing agreement
by the Employer on a fair and rates where applicable,
and including an a fered (3.5).
Payment may be b If instalments are used, the
contractor is to inv Employer must pay within 14
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

i
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).
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 toterminate 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 E
implied.
9 Disputes
Disputes may be resolved th

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

order. Ità so (lows for a variety of methods of pricing,
ssioning work of this nature.
Th form doe not co ovisions for liquidated damages or for retention, and
th e is othi oc r n where the contractor may be undertaking any
desi n. It ill therefore b m d to experienced employers on very short, one-
O-0
off job For longer mer p ects MW05 or MWD05 should be considered, and
' I
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.
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
When the ACA Form first app ed, itwas byye a retion against the
relatively complex procedur ce o years later some
of the advantages claime for eA rm eva d when IFC84 was
fl,
introduced. Nevertheless, th CA an rRitiativ it is still an interesting

(DD
form unencumbered by tad itior nd ha e fir' ished. The first edition

took two years and Xdrafts to ro ice. It
1 ed t the new agreement was
suitable for use on very wider nge o es and types (although the
C
bs of
rt.
initial reaction of le al co r entators steep in th hraseology of JCT documents

was cautious, not to ay di issive).
J
At the outset heA ontracworkin claimed that their intention was to
produce a f, rm w hfch
wa 'a flex y balanced contract for an efficient
'-{.
architect rking th a. contraan efficient client'. Early criticism was

that the 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
essfully on vii variet obs, in ding fast-track projects. Major client bodies
t
°0-
pear ye us orm withou problems, and the British Property Federation

opera o a *r fthef, rm suitable for use under the BPF System of
ocremen hich vas not vJithdfawn until 1998.
is little evid ce of problems with the form, and no body of case law has yet
viin
E
built upmay that the ACA members using the form are, in line with the
^'+
nefficie architects working with efficient contractors.

The second (1984 included a number of significant improvements. The form
fl,
ke t der r viev 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).
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
The total document runs to over 30 pages. There is a contents page which lists the
fl..
143
ACA Form
Sections in which the clauses of the Conditions ar

are Vouped his is olloW
Agreement which includes alternative clauses relat gto t
appointed; who will be responsible for the pre aratio of s a
details; and whether the Works are to be compkte in Sec
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, s tho then
guidance on their detailed use.
Examples of where the terminology t otRer-forms i
completion date: the alternat e ciau tensi

taking-over in parts, and p Bible accel ration;
extra costs: the production contractor of his
of an architect's instruction, ement,
information: the atte pt to maticA
the supply of infor ation
design: the atte ablis ontract th
contractor are eac iablefbdthe d ign ofthe'
To help in m ing t' ible, th which follow after the Conditions.
e are the s
The Time chedule o rnati 1the job
is to be completed as one
wher
operatio or Alrhative the job is
be completed in Sections. A further
Schedule ovide or etail n the ue of ' formation; what this is to be, who is to
i
, awhen t is to be pplied. A final Schedule provides stage

-0.
be resoonsi
Q..
Th re is r suggested IT t cost r type of job for which the form is thought to be

suits e. It app
can be ed w h o ithout a bill of quantities and where no quantity
..
surveyor ' ted. It an b used where the Employer is private or is a local authority,
(13
and where contr inistr tion is by an Architect or by a supervising officer.

The contract ca "efixed 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
ms's
N-0
introduction of alternative clauses, and great care is needed to ensure that the
intended alternatives are clearly evident.
144
ACA Form
The Third Edition takes account of the Housing onstru on anit Regg
Act 1996 (Part II).
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
a
The provisions of the printed
.-r
re is a
The drawings may b supplied sblely t he A Alternative 1) or may be

supplemented by dr wing, details fo hich cohtractor takes responsibility
(2.1 Alternative 2). T is will Iso be evident r Alte ative 1 or 2 in clause F of the
Agreement.
`r is res ons)ble for-the racy of drawings and other information
him, hd vvarrts con) ance ith performance specifications and
purpo
is to permit o ers e aged directly by the Employer to carry out work

t, whilst he has possession (10.1).
e Schk pntrid set o6f the i4ortant dates. Alternative 1 is used for a single
phas 'ob. ernati e 2 alloor possession in parts and/or completion by
Se w ns.
mployerto giv the contractor possession to the date or dates stated in the
,-+
ractor is to commence immediately and proceed regularly

.-+
and diligently (11

cor ctor's, enO ement to extensions of time will be subject to Alternative or
r''
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).
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 a result, and a

(1 1.8 and 1 1.9).
The onus is on the contractor to notify the Archit a re reag_y

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

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

as instructed by the Archite either= or im
Period (12.2).
The contractor may be req sted allow the E ertot

Works or any Section for the i ueofaTac
3 Control
is and either party r
ney is om this
work by t
actors n
v be in Contract ocuments. This may be by way of a
ne,al or siona
pro m. If t Vs arises out of an architect's instruction,
r is nar.ght of r "sable
objection (9.3, 9.4 and 9.5). The
onsible f all sub-contractors, including those named (9.9). This
0.)
rs of ;*ign, compliance with performance specification, and
contractor is clearly 'nsible for all management of the Works , and this
fl,
r a
kks lanning and superintendence (5.1). The contractor
full-tine e manager a person approved by the Architect. This
fl,
`s sl
e r y is
I I d (5.2 and 5.3).
Facilities are to b access and visits by the Architect, both to the Works
v_,
and workshops (4.1 and 4.2).

Instructions and notices given by the Architect must be in writing (23.1) although the
far
E
contract does allow for oral instructions in an emergency, provided these are
_+.
--0
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
146
ACA Form
site, dismissal from the Works, opening up a fg varia ns, a 'an

connected with the Works'. Immediate c by ;V con ctor i c
required (8 1).
4 Money
The Contract Sum may be adjusted in cordance
will become the 'Final Contract Su-m oth , re e
Agreement, and 15.1).
A quantity surveyor, if appointe is named i iEtions
may be defined (15.2 and 1
The contract may include r flucf A index. Deleting this

rally ' and 18.3).
e inclu
ction with cto rs
ct's structions vvikta
rah
vide tract
not r ach
h comMance kan st be instructed and valuation made
fl,
s I
Sched le of (if appropriate) r otherwise on a fair and reasonable

17.2, 7.3
is to the co ractorrill be either on the basis of monthly valuations fl,

stage rnative B) (16.1).
and the htractor is to present the Architect with an
.-+
c
fl,
ap ting th total due, and supported by documentary

evi
ue an Interim Certificate within 10 working days of receipt of the

appli tion, ting tN amount due and the basis of calculation (16.2).
,-+
t mplo p to withhold or deduct any sum, he must give the

0-O
contractor written of wing the amount and grounds for such action not later
ian five vrkg da s ore the final date for payment (16.5).
'-`
oex.i tithe ise entitled to payment of the amount certified. The final date
nt is 10 day from the date of the Interim Certificate (16-3).
fl,
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
E
contractor for interest gained (16.4).

The contractor has 60 working days following the expiry of the Maintenance Period
-c-
fl,
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 on vvRc
calculation is made. The final date for payment lowince i
of the Final Certificate 0 9.3).

Unless instructed to the contrary, the c tracts Ngui to c
requirements and to make applicatio give rCotic d pàees
If there is any apparent conflict t e C ct d statutory
requirements, the contractor mus otify uean instruction
(1.6). Where the contractor is respo ,ble fo ing e also assumes
responsibility for ensuring co wl statu (2.5).
The Contractor, where also appointed rincipal ontra articular contractual

obligations in addition to tatut ry d-dties relatin o hea and safety (26). These
include cooperating with t h Plan ing in r pect of the Health and
Safety Plan, and the a Saf File.
6 Insurance
In respect of per nal inj ry or eat to roperty other than the Works,
the contractor g Rs the oyer a indemnt y-.- will be reduced proportionately
to the extent mployer h ted to the injury or damage (6.3).
i,psurar e ver ag nst these indemnified risks to no less
tract, althou of course this will not limit his liability
be by the conntractor (Alternative 1) or by the Employer

ernativ` to be in joint names. The Conditions do not appear to
ate saecifi to be covered (6.4).
ditidnaKnsurance irement for an agreed sum against damage to
erty (other than the here thereis no negligence etc. by the Contractor,
nuis e (" ).
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 ons 6f
default by the Employer. A default notice
n may b issu to e ed
termination notice. Adjudication may be ed re th re is w4
disn
Either party is given the option of to theucontrattor's

grounds of insolvency. It is not auto motion (2
Either party is given the option of termi tinghe c em'ployme

causes (21).
The consequences of terminati n, and act`bq'tQ beV en

of site, sub-contracts) is deal
8 Miscellaneous
There is an optional
obstructions on the s
Clause J of the Agr ement s"t s that third part nder the Contracts (Rights
of Third Parties Act) 999 ill not apply, but margi Inote states that clause J may
be deleted and a clau sub stituted w li ie who may be given rights under
the contract.
is
actor are hi s responsibility entirely irrespective of

advicy the rchitect
ers are ess to site (10.3).
ed toe the p operty of the Employer (14.1). The contractor
Archite
7-.>
ne greer for disputes to be resolved by four methods. There is first

liation (2 adjudication (256), and finally provision for either litigation
fl-
AI native (Alternative 2) (25C).

, There are aernati sions relating to litigation and arbitration depending on
w of the contract is English law or Scots law (25-11).
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 ooi 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
ila is lam ther are alternative clauses
relating to litigation a itra its suitability under the
law of Northern Irel nd.
A notable feature his the ran' native clauses available to cover
most situations, for relating to further necessary information
ility r
including dra -u C on
',Of edli' cur'rts;
adverse ground conditions;
insurance of, the atmagi s; grounds for extensions of time
payment p riodic resol tion; possession and completion by
Sections. he fo in ave simple way with naming of sub-

contract s, de n y 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 cedure 1998:
ompl ing he ticular care over selecting the appropriate
uires p
co binati f alter completing the Schedules. The form has a logical
di
e and the nguage use-'is straightforward Fnglish. However, some of the
I
may b unfamiliar to regular JCT users.

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 a Civil Works, but it

is more in the nature of an int rm ndin e major works
GC/Works/1 form and the G orks/4 s m a ks c act. ded for contracts
of between f25,000 and f2 in v e, an or litio works of any value.
It replaces the former G 0) a e old s ks C1010 (1990).
It is published as a two volu eraKo-rrdition

Commentary. The for
,-+
The form is for use ith lu mp um terms ers in e basis of Specification and
0-D
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.
he C/Woi`Fks for there is a very useful Schedule of Time Limits

fl'
ndex. se of the odel Forms is essential. Model Form 1 contains

ti ulars an d endum; Model Form 2 is an Invitation to Tender
wings; Model 3 is a Tender and Tender Price Form; Model Form
4 car7ies urance Documents; Model Form 5 is a Performance Bond; Model
E
any Contract Performance Guarantee; Model Form 7 relates

Sotfie A p p o eat
i djudicator; and Model Form 8 is an 'Order to Proceed'.
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.
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 r*llt
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.
Synopsis
1 Intentions
A fair dealings provision is include
The contractor is to carry out the Works accor act Documents
(2), and instructions of the P ject M-a ge 5). T s described in the
Specification and shown o drawl n s, and wi nclu i ified or additional
works to be executed un er th co tract (1 ). ey a to be executed in a
workmanlike manner and to he sa isfaction ofAli iect nager (19).
The contractor is dee e sati out all matters which might

affect carrying out dditio-naL_ will be allowed because of
misunderstanding
All 'Things' selec t by or for in
described in t ication and rawin
of the contr
Sri nagreeme concluded by tender, acceptance,
ticula Spec 'cation and drawings, etc., all taken
pancy, th e a detailed hierarchy (2).
er d raw' , apl ructions etc. may be issued by the Project Manager from
e to lone Tng t 25).
ion is give e co r by written order to proceed. He must thereupon

ate, 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 sub-
Employer or Project Manager.
The Project Manager may e i truc on any ter f ecessary, including

variations (25). Notices m t be i riti an I instrus confirmed in writing.
The contractor must comply
Instructions which r/lull in rion wi e v ued herever practicable by prior

quotation and ag ement, or rele nt ch
a e r aywork, or by the Project
Manager, on fair ra es an pri s, and will clude r disruption or prolongation costs
(26).
There is nor er e t setti out, n to t e contractor's person-in-charge.

The Projec Mana r and repre tive ar empowered to order tests, and the
cost will e bor e byeon ctor where 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 is
e valued as provided for in the contract (26).
r
certification by the Project Manager, shall be entitled to

.-r
advances on account (30). Valuations will be prepared by the

-.-0
contract 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 k
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
((D
in a tisfa ate lowin
the Maintenance Period (31).
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 regu atisns rel

and use of all things brought on e site
The contractor is required to omply wit

in respect of the site (10).
6 Insurance
The contractor is requ ed main iin e ployer's liability insurance in

respect of his empl ees o `site, a v+ d o inse t a similar provision in sub-
contracts (5[11).
The contractor sha insure'iRhint n isks damage to the Works and
Things for whi tractor is r ponsi his will be for full reinstatement value
plus profess
The cont mployer in espect of injury to persons, loss or

damage y, loss f profit or use, and will cover this by insurance
(5[21 and 8).
'Employe is fb"t certain specified risks arising from work to existing

ctur d may e 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
in Condition 39. T ro'e Manager must certify the cost of completion.
The contractor may determine the contract for specific grounds, including insolvency
fl,
of the Employer (40).

Either party may determine the contract following suspension of the whole or
u
fl,
substantially the whole of the Works (41).
156
GC/Works/2
8 Miscellaneous
A full list of definitions is included (1).

There is no express reference to rights,r thirQ parties, or tVcontr tir of the
Contracts (Rights of Third Parties) Ac
The contractor has obligations vkatchìRg, Tlghting mid protg6on (7) and
for removal of rubbish (21[41).
Security matters such as admi ion to th t 0 king (16), passes
(15), and Official Secrets (17) m givee eva liga 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 or t n tice of referral and the
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
i
by arbitration.
Arbitration isgi* as he form for filial res`glutio"6 of disputes and the arbitrator is
given wide
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
departments. The Employer is required to ap int a Pro nagerrWho is g
considerable powers to act for the Emplo ct t,exclu d tters whit
be listed in the Abstract of Particulars. Th qu tity s
and functions normally ascribed to him re the resp ilit , the
The form may be used in England a or the law
or under Scots law. The arbitration rovisi oprXi - the la
Condition 43.
The Conditions are general, a r ra rtrs'L for some flexibility
in tailoring the contract to t nature of he int ded is no provision for
sectional completion. Ther is no pro Ision for n i of sub-contractors or
suppliers by the Employer. T e tw volume pr ti. mprehensive, and the
Model Forms should std as ome o the information which is
supplemental to th mmeotary s practical and particularly
informative.
Contract admini tration sho d b e stra' tforwa always provided that the
administrator to k the
t'tduble be mie oroughly conversant with the
terminology, res, and e tim li Rather unusually but very sensibly,
progress m tings bec` ntract ligatio s, although there is no requirement
for a pro
This is an r wh is has m y fe ures not found in other short forms. The

active'
result i substantial d cument w N& can cover a wide range of work which
fai r
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.
Rela
Docume
GC/Works/2 (1998) C ng and Civil Engineering Minor Works in two volumes: General
Conditions, Mode mentary
158
GC/Works/4
GC/Works/4 (1998,
Background
This is sub-titled as a Contract for
=00
Small Works, and obviously int

works of a varied nature. It is i
replaces Form C1001 (1990
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
1 structured under seven headings.
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.
`visions which should be sufficientfor 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).
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 gage wni

work under the contract (6). There is no provision f nce irrthis
Making good defects in the Maintenance Perio 'state
Abstract of Particulars (7).
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
The contractor cannot assi withou
Manager (30).
There is no provision f
The Project Manag tructi
variations (17).
Valuation of varia ion instia.c Ons wh never will be by prior quotation and
agreement, or b oject Mana er on t basis of fair rates and prices (18).
contract ovisions re
provtsion or pr ion and di
the WoTks_01
e contract/price (t ccepted) may be adjusted in the final account (21).
Pa n`ttq-the contra or ill be a er completion, unless the Abstract of Particulars
stat 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).
Inthe event of to time, the contractor may be liable for liquidated
damages, or damages at large as stated in the Abstract of Particulars (26).
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 tratAn. but-the f6
include for arbitration. Alternatively the p agdee to *cep he de
the adjudicator as final determination.
There is no express reference to righ
Contracts (Rights of Third Parties) Act
This contract?
It is intended for use wh lu ed on the basis of

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

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

etern' y is typical orks ut clear.
infesting basi alternativehnall Works Contract, particularly where services

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

New Engineering Contract Document
Engineering and Con

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

thoughtfully struct more ply paired down version of the
,-r
It .
major document. miYorta ial peculiar to particular contract is placed

right up-front (t conv cu ment), nd comprises:
mages; inte/est on payments; limit of contractor's liability;

igatio udicafor an arbitration procedures (if relevant).
onditions incor if so they are to be listed.
h with indicate wheth
loyer's nce: si ped and dated. The offer and acceptance bring about the
ntract of u rse.
ke Li§t; a--cchedule thquant

Wor onthe
Works which the contractor is to carry out, and
any wor ntra for is to design; list of drawings; list of specifications
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
and updating; an to be provided by the Employer.
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
such as testing, health and safety compliance e(e is no

contract administrator or Project Manage e E rrk
authority for taking empowered actions.
The language used in the form has attr, c Sta n rd, the
terminology consistent with other
is cumen mily/, balance
is generally attractive. The only provi tons hic articularly
demanding in terms of manage nt peNe oncern the
Compensation Events, which are p ajor form.
The contract as printed does, no Housing Grants,

e
Construction and Regenera on ditions, there are
replacement clauses conc iing a icular contract is a
construction contract to whic art 11 es, then the payment
provisions would also nti , unle Construction Contracts
is left to apply. The cl uses in Add ndu Y(U K) ineering and Construction
Contract could be a a pted ncorpora by r e in the Contract Data. The
Addendum Y(UK)3 ich t kes account o ontra is (Rights of Third Parties) Act
1999 may also o ra t&d, and tl stated to be applicable to the
short contract
ontra as een s ecifi ed for use with straightforward work,

i~sticat proc u res necessary, and where the risks are relatively
estrictioi on tl e of contract work for which it might be
natur he inte ded work which must be the determining
tio` arties ac ractual spirit of mutual trust and cooperation (10.1).
erms use ct are helpfully and fully defined (1 1).
ommunicatit s ar to bbb in writing, and if a period for reply is stated in the Contract
en withi tha period (12).
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
2 Time
Starting date and completion date are entered in The
may not start before, and completion may be on or n dat
The contractor must submit a forecast of th
each week (30.2).
The Employer may instruct the contracto,
The contractor must submit a Program e as req on (31).
Where delay occurs due to cert events, constitute

Compensation Events (60). Ther are tly arisi action or
inaction by the Employer, but als inclu e net al caus These are for
=Q3
weather (measured in ratio of da ainst t pe sical conditions

beyond those which could re onabfy ve en ex nd event which delays
completion by more than t ro weeks a rd whi coul r ally be expected to
occur. This would presuma ly no for strike r loc
The procedures for no omp nsation E ents;

or rates and the mec am asses g the ents
contract as those the maaor ford (62
i a63
3 Control
ligatiorf can c nstitu control mechanism (15).
or cann
at the desig
oyer
lies " s designed, before the Employer has
the W rks Information (20).
may cancel any delegation (13.4).
ay instruct n employee (21.3).
e contract ccess for the Employer and others to work and to stored
re isWo consent req -contracting, but the contractor remains wholly

sible (21).
There is no provi ng.
The Employer instruct e contractor to search for defects (40.1) but whether or
not the Employer nò e contractor of a defect, he is obliged to correct them (41).
After completion the 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).
164
NEO (Short contract)
Uncorrected defects permit the Employer to en : ers to

the cost of which can be charged to the co 42). /
Until the Defects Certificate has been issue able fo
in the event of loss of plant or material /orks4
once o th KQ 1).
The contractor's application will lude details o
and is for the amount due (
Contract Data, half is
ificate is issued (50.6).
The Employer is to pa within thr ssment day which follows

receipt of applicatio for pa t from f for Vterest becomes payable on
late payments (51).
expr es)obIi9 ions r ting o sta ute or regulations, but these would
n the ent ch of statutory uty by the Employer, the contractor
fied ag inst aii eedings d costs arising (81 .1).
In part' lar ere is no press erence to health and safety and the CDM
Regu ations, than p on for termination by the Employer if the
co ractor SL brea regula ion (90.3).
ovide in joiames the insurances stated in the Insurance Table
e insurance where this is stated in the Contract Data, and

6 this occ 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
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
E
The Employer must issue a Termination
cease work (90.1).
On termination the contractor must leave the site (91 Em`ployeYmay have
the Works completed by others.
Amounts due on termination are a
8 Miscellaneous
Use of the NEC Engineerin

necessary.
The Addendum Y(U K)2, is n6 contract, but payment

provisions no doubt ed by reference in the Contract
Data.
The Addendum
the short form.
Clauses 9/tUK i ute resol ion in e ort form should be replaced by clauses
93UK to , fo s in th Uni d Kin dom where the Housing Grants,
Construc and-Reaen ati Act 1-496 aD ies.
9 Dispute
S=t=orma s is t 'be by reference to adjudication (93).

T be na d in theContract Data.
T ea 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.
166
This contract?
remen%er Mat:
It is intended 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
adequate for the intended wor
Acceptance near the front of the
are particularly important and r quire full e
em
an
is
tract`6
refu
on
=
e Offer and
tad W
rks Information
by both parties.
*
The law of the contract is ing whele th here is no express

reference to the law of No to aw. Pre ly any consequential
amendments necessary to ond iti Id h e e in uded in Contract Data.
The document is rath dece in s ap p plici because whilst some of the

Conditions are adm rably brie S d stra tfo e seem to be lightweight by
comparison with eq ivale R
e s in othe inor rks forms, for example over sub-
contracts or insuran :e. Th clauses for satio Events, however, seem rather
out of proportor hort rm, alth ug muMe difficult to abbreviate this NEC
cling d ditio ml time oney.i
rthe pr with other NE documents, is somewhat difficult to

at first an give nairofi precision. The terminology is standard
form efiniti clause. Recent UK legislation, where applicable
rks, see not been taken into account. This keeps the form
Mo tion b theYs denda can be a trifle confusing.
robably w come professional advice when it comes to
ainly e Compensation Events procedures suggest the
is 'delega for contract administration.
itted and experienced NEC users, this form must be seen as a
family.
and Constru on Short Contract (June 2005)

K)3 (Ju 2005)
nn n , Option X12 (June 2005)
Engineering and Construction Short Sub-Contract
Notes
Engineering and Construction Short Contract Guidance Notes and Flow Charts
167
JCLI Agreement
The Joint Council for Landscape Industri
JCLI Agreement for La

Background
The JCLI originally had two standard form dsc e
and Without Quantities. In 1978 these ere A sin
the then current JCT Minor Works A reement TNrK new opted a
Section headed format (two years oft JCTd additional
clauses of specific relevance to Ian S. T include ters as the
failure of plants, malicious damage
dead at practical completion. The form
Prime Cost sums, objections to n
dditi
rs to cover plants
r p rtial possession,
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 'construction need to take account
of the Housing Grants, pd Rege 96 provisions.
In 1985 the JCLI al ed
pu bli Supp rent o th then JCT Intermediate Form
(IFC84) for use on dsc
rgerI tracts. hought desirable because at
the time some to al auth rities elunt to use t standard JCLI Agreement on
contracts in exces f f75;
reeme ndsb e Maintenance Works for use where
sible f the care of trees, shrubs and grass
ith a onn ntracts' adjudication is a statutory right, and payment

ced u res ust co the provisions of the Housing Grants, Construction and
gen
orm refers to 'the ministrator' and sets out respective duties (1.2).
ntra t Bills, and these are to be prepared in accordance with
ierwi e 0.8).
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
JCLI Agreement
There is provision for partial possession (2.6 tate
provision for replacement of plant

---I
There is ch fad before ompletion

(2.7).
There is provision for the maintena ce tr plant tc. post-
practical completion (2-8) either by he contr for e, Ero'i
There is provision to cover maki goo fcil4yving an or theft prior

to practical completion, either tire tt co) acto 0 9A), or covered
by a provisional sum (2.913).
Although the form does

'-`
efe o an ocecxures les or nominating sub-

contractors, there is refer, n st ction the cor a administrator on the
expenditure of Prime Cost s ri gh)f re o le o ection to a nomination
is given to the contra
The contract may e fixed pric (4.7); t to x tc. changes (4.6).
Adjudication is p vide for (8-1), and i putes y be finally determined by

arbitration or tion 8.2 and
169
JCLI Agreement
This contract?
If considering using the JCLI Agreement remember
It is intended for new landscape work, both soft llt cov

up to practical completion, but maintenance i a ma Ag repi
Landscape Maintenance Works. It is in one ve ion only,
fl,
or public sectors. There is provision for bills Qf qu tits The

a contract administrator (not necessarily tect
fl,
quantity surveyor.
Subject to anything to the contrary, i<able of The co`rgt Kt, vv atever the
O-0
nationality of the parties, and wher er th are ed, is t of England.

fl,
For landscape contracts in Scotland, endm he i resol on provisions

would be required, or preferably i.nor trac be considered.
There is no provision for pha d com plet n, flrk

uatio ape design by the
0
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 post-
practical completion carekThe orm drafted o pliance with the CDM
fl,
usiri ts, C structi Regeneration Act 1996.

When completing t e form easi e required relatin to insurance of the Works,
(comp)
damages for no an ractical c pletion care. There is no
conventional appe ix to form, nd entri to be made in the text of the
Conditions.
If acting as tor, ao -expe in landscape operations might find
030-Q0
0-0
difficulties rleti defects lia ility obligations and staggered release

of retenti les in neral e straightforward but if the agreement
IQ)
is used in par work bei arried out on the same site by a Principal
Con actor, over coordination of contract periods, Defects Liability
fl,
ments, indemnity and insurance.

r-+
ods, healt.
JCL iss loose lei ision nd Practice Notes which give useful advice on
rs peculiar to Ian w plant specification, watering, frost
k such as
ion, iability for plant failures and multiple Defects
fl,
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 Agreement for Landscape Works 1998 Edition
JCLI Agreement for Landscape Maintenance W
References
JCLI Practice Note No 5 (February 2002)

JCLI 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 b shi the re and
Surveying Institute (ASI). The ASI at that t i pub ' ed g tan 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 pu
.the cont cts, with some
,--r
minor changes to the text and termino iv All ee lion o inck des a Section
for completion at the start rathe requ entries in the
conditions or an appendix as he ASI ver donb-
CIOB forms exist to cover a ide r nge of building eratio as befits an Institute
which counts contractors, arc tects, rchitectu
N~Cond all branches of the
surveying profession a o its emb s. The Vtee ntracts have each been
fl,
f6"
approved by the Briti Instit logists. These forms are for
use with traditional metho a) lump sum as the contract
basis. The CIOB a o pubs ties management, which is
beyond the scope
,andii`them in are commendably free from legal

-E'
b-co? ra cts are ructured to a common pattern, with

5-o
It Conditi s g/r uped under 11 headings. The contracts
Building/ContrA dition): suitable for all types of works, but primarily

Quo
Q._
°(D
nde or19.P of all types. It may be used either with or without

of q ities. CIOB o -contract forms and nominated sub-contract
mare available.
ontr ct (2 04 Edition): intended for use with smaller works e.g.
O-v
CIOB Small
private houses, al era ions or extensions, with the work shown and described in
Q-°
cificationr Schedule of Works. Supplementary Conditions permit

f+'
drawings and/or
n-0
the use of bills of qu ies if required. This contract also makes provision for
nominated sub-contractors and fluctuations if required.
Minor Works Contract (2004 Edition): for use with straightforward jobs or minor
'.P
CIOB
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.
172
CIOB Forms
CIOB Mini Contract: in two versions, for Ho, oveme

Use (1998 and 2000 Editions respectively),
The forms referred to in this Section are t }bracts lis

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

All the forms co enc entries tifythe parties and date of the
contract. There are rief citals, and t g in which details relevant to the
particular conct st b entered. There is ' ion for attestation to be under
as ie , or a dee Eac form has appendices peculiar to the
tract, 1eac as an ' list o clauses. The forms appear to comply
rovisio kng Grants, Co struction and Regeneration Act 1996
of adj is ion b en nd if so then the relevant provisions of
r Constructi
(2004)
of quantiti
ract d of quantities or Specification. If the latter
re drawings, and bills
supply a Schedule of Rates.
r
Details relating icular contract are to be entered in the Agreement.
oint the Employer as contract administrator is referred to as 'the

d by
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.
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).
The contract requires practical completion (the d as ed witf
approved in writing by the Contract Administrat r- acco d
Part/Sectional Completion as the 'Employer ma requir the C ntrac
(4.6).
Failure to meet the completion date will r u`ft Ii

confirmed in writing by the contract ad inistrat
The Employer may appoint a Clerk of poked

must be confirmed as contract ad nistr ipstru t s (2.6).
Domestic sub-contracting is
administrator (5.1).
There is provision for nomina èd sub-con ractor
stated conditions (5.3 and 5 4). (-
The Contract Sum is V e0usive.4luctuati d rates and prices for
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
stipulate the basis r valuV(i.e. ei er acc the priced document; or rates
approved by the con ct administ tor; quotation approved by the contract
administrator rk). N tetht i re is no quantity surveyor, then
measuring f the ccovfractor
Architect' are n mally is ed at monthly intervals, with payment
by the Emp 14 days 3 . Amounts payable to nominated sub-
,,.
contr, in the Certificates, and the contractor must provide

pr f of pay omply means direct payment by the Employer (6.81).
hite 's Fi r 4 :o issued as soon as practicable' after any defects
been ade good fo yg th end of the Defects Liability Period normally six -
onclusive evidence that work, materials or goods are

the contr t (6.91).
The contractor must7y'with 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
--6
contract administrator must receive written notice from the contractor (1.31).
Compliance with health and safety CDM Regulations becomes a contractual
174
CIOB Forms
obligation as well as a statutory one (Agree

Insurance of new work in joint names, aga f da ag H d pen is
contractor (8.1), although the Employer m arry th insura e. In
of existing buildings against risk of da ed perils sat tW eT4A
Employer (8.2).
There is provision for determining the e sted reasons

3-0
of default on the part of either E pl r o ctor. are clearly set

out, and if determination occur, yen
site, completion of the Works,, an
acts
settlel,
%Oim
i in red
all
moval from the
cribed (9.1 and 9.2).
Disputes or differences are, o be

his or her decision (10.1).
(10.2). The contract lists the se
ted
t resb ddt
d ru
nm ra
=hte
nistrator initially for
proceed to arbitration
can apply, including a
shortened arbitratio yprocedù tion on the right of parties
to refer a dispute to adjud icatio and tl p roce ting to the appointment of
an adjudicator and :ondu t o he adjudic (on (1
ntrac,(2004)
A headnote dicate tha he
i for is inte ded smaller works which do not warrant
the use of bill of uant ies. t shou t be u ed for complex operations where the
nom..,
CIOB Bu ding vul e more a ropriate. However, Supplementary

Condition t the Con& vide for bills of quantities, and for the
appoi a quantity rveyg'
are an
full Schedule,
D
,,,
personp by the Employer as contract administrator is referred to as

tt m i If the person is 'Surveyor/Engineer' then this will be a Recital
i, and the e Conditions is deemed to be changed.
The 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 is defined (leaving 'only
acceptable minor items to be completed') (4.2).
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 pliers,
stated conditions (5.3 and 5.4).
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 s, a eorder i a(so

basis for valuation (i.e. according the p cu ; or rate
contract administrator; or quotation prove e co a adm

daywork) (7.2).
Architect's Interim Certifica nor ally is ed at ntervals (6.2) with
payment by the Employer 5-0 -44 days (6- . Amo is for nominated sub-
contractors must be identifi e Certificate fir advised (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).
st coryiply al and stat ory requirements, including
fety d 1.6).
Insurance of ewwc oint na es ag nst-6 k of damage by listed perils is by the

contractorr 1), altho
- h e Emp er may el t to carry this insurance. Insurance
of existin uildi agai s,it ri of da age by listed perils is at the 'sole risk' of the
Employe (8.2).
ns of
vides rmination "e employment of the contractor for listed
rt of either the Employer or the contractor (9.1 and 9.2).
o
ere is ave limite efere to action and claims subsequent to determination.

E
Di 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 i 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
adjudication (11
A headnote indicates that this form is intended for 'minor' works on a lump sum
basis. No bills of quantities and no nominated sub-contractors.
Contract documents are drawings and a Specification or Schedule of Work, and

Health and Safety Plan.
176
CIOB Forms
Details relating to the particular contract are ered i
of the Conditions.
The person appointed by the Employer as or is re
'Adviser'.
the role
Key contract dates are to be enter CoNdition
in his absolute discretion, an ex nsion' e ilae cir
{
The contract requires practica mp on e ove
followed by a defects perio Iv o onths
Failure to meet the completi nt of li uidated damages (4.1).
Sub-letting is not per the Adviser (5.1).
AT-excl usi
is (7-
tions, a
erim C rtificate ill d fro time to time at the discretion of the

'2), wi y Employer e within 14 days (6.3).
I Certiffcate Ilbei ued after proper completion of the work and
defects fter thi
Q-6
of the defects period (6.5).

contractor r usf omplyv(iith all tatutory requirements and pay all fees and
e (1.3).
ins 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 ).
trac termination of the employment of the contractor for listed

reasons on the mployer or the Contractor. There is very terse reference
to actionsich m low (9.1 and 9.2).
to be submitted to the Adviser initially for his decision (10.1).
Ived, they ay proceed to arbitration (10.2). There is also a Section on the
ies to 'fer a dispute to adjudication and the procedures relating to the
CD-
r_+
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

are all for lump sum contracts, and for pri ate o oc author ti The
use
obviously for use by CIOB members, but -memb ml t also d the
considerable interest and may use them.
The Building Contract and Small Wor Contr th to that
contract is English law, but the Minor ks C trac ilen this
forms refer to adjudication procedur bjec the w o E Ian
The forms would therefore not ap ear to itablese
and
Contract administrators should first be ain th rovis ately cover the
nature of the intended work,ano eck in' ar tffi e provisions for
Practical Completion Certifi fates, insu nce, ai ermin d djudication satisfy
their requirements. They are some, mited, best used for traditional
work. Certainly as far as pay'Dent concerned
' to be light on detail
required by the Housin Coh 5truction on Act 1996 and might
be subject to the Sch e fo Ktructi Contr ere is no provision for design
by the Contractor, ut no ination nd suppliers is provided for
except in the Min `r Wor Cont tare available for nominated
and domestic su ontra
traightfo
ator considerabl authority, and contract administration

orw i onve ional operation. There is a full range of
tfacl m r available.
ree comp inter ting forms, traditional in scope, clearly set out and
uctur ainWworde Likely to appeal to clients, and certainly to smaller
Idin
Documents
Agreement for Appointment of Professional
Building Contract 200 Adviser
Small Works Contract 2004 Edition Agreement for Appointment of Planning
Minor Works Contract 2004 Edition Supervisor
Domestic Sub-Contract 2004 Edition
Nominated Sub-Contract 2004 Edition Notes
Contract Administration Forms
(eight in number, available in pad form)
CIOB Contracts Guide - Guide Notes on their use
178
SBCC Documents
Scottish Building Contract Commi
SBCC Forms of Co
Background
Scotland might form part of the d Ki do but ots w, fi rical reasons,
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
--o
of law in Scotland are not th
law and Canon law over ime Ite uniqu system and courts
structure, not to mention a istinctiv hkolog`j con nental links in the past
have also helped to what has described as an
'intermediate betwe Civil la
Despite pressure frj m En confo aw, the Scots have in large
8(o
measure maintained their oble and ind Therefore architects carrying
out work in Sco ed t take acc r ificant differences in legislation,
and in the la rel pro rty, de r adly speaking the equivalent of the
English law f tort) nd o u rse
In the pa , build' g co tr tland wer bften based on an exchange of letters

rather tha forma ocumq fits, and irect trades contracts. The Emmerson
Repor 9 highlights the di'9` ent circumstances in Scotland and concluded
tha the exis de b basis as unsuitable for main contracting in the
b ' dino ind com nded t at closer links should be established with
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
Scot h jIdinc ntract Committee (SBCC) in 1964. The SBCC has now been
tr ctured a company. The SBCC Ltd board is advised by a Consultative
opff tee
i i m representative bodies from within the building industry
in Scotland as fo
f
Scottish i
The Roy Institution f Chartered Surveyors in Scotland;

I
Scottish C;
Convention of Scottish Local Authorities,
National Specialists Contractor's Council -
Scottish Committee;
Association of Consulting Engineers (Scottish Group),
Scottish Executive, Building Division,
Confederation of British Industry;
179
SBCC Documents
Association of Scottish Chambers of Commerce.

This is obviously a wide representation compared,, it theme
The Banwell Report, issued in March 1964,

common form of contract for all construction q Engl d, Sccy
Wales was both desirable and practicable'. plementI
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
practice'.
SBCC Ltd is therefore primarily res onsi ation o uments for
use in Scotland. It is also respon kale for g such forms,
advising on the interpretation of these ontrac ractice, drafting
and publishing guidance an ractic to nomi mediators or third
party tribunals, and attendi g patio pal nd of r com uding those at the
JCT. SBCC Ltd is now the ' eleva t Scot Construction Industry
within JCT Ltd, and takes an ctive rt in proves t to afting where Scots law
and practice dictate.
t
The SBCC is curre 'fly in es ications to bring them in line
with the JCT 200 ,editio' the ti as produced the first of a suite
of new forms. The forms are to the earlier SBCC 'supplements' but
are entirely nditioi e Sco ish Building Contract terms are now
incorporat t. Thi a signi cant step for the building industry in
Scotlan welcomed y the users.
tish Bu-i ontract

ottish Buil ra ct
ottisl6 With proximate Quantities
Sc tish`R6ilding Contrast tinor orks
Scott' h Building Caiatract orks with Contractors Design
Scottish Contr ct G
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 ontrac /Sco

Invitation; Tender and Works Contract; IScotti ETIn, oye
Agreement; Works Contract/3/Scot (200 Revisi ); ntra of
Works contractor (2002 Revision) and S, tes to 11 sers.)
Inaddition the SBCC also publishes it own ve f nomf-aatedAnd do

contract forms, the SBCC Contracts an2,,SBCC `rsions
contracts.
Use
The Conditions of the ada rms IaQq y e JCT documents.
Modifications relate to fini omi sub-c ors and suppliers,
determination, payment off-si s a ateria deducting liquidate
damages etc.
The most significan difference ttesta i 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.
dertaW Scotla#who ar
ra cts eek advice f,
MW/S'eot05 ansons
orks C ntra cot05), and Minor Works Contract with

(MV
WWD/ t05)
clearly closely modelled on MW05 and
a
ifferences between the JCT and SBCC versions of the forms
(SD
s folio
cot05 the optional use of bills of quantities (second recital, third

3-:
r
pointment of a quantity surveyor (Article 4).
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
O-,
ce are set out at the back of the forms.
Applicable law is stated to be the law of Scotland (1.7).

2 Time
The wording of the clauses is identical, save for some clause number cross references.
181
SBCC Documents
3 Control
Covered under Section heading 3 in MW05, Se, io hem
MW/Scot05 due to a provision for bills of quantities rd nder S ction
3.
Wording of the provisions is mainly the same h both fo

for listed sub-contractors.
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
(4.3.2 and 4.3.3). This is similar to p laus
4 Money
Covered under Section headi 4 in
The wording of the clauses i identic ve for s
The wording of the cl statuto
6Insurance
ction h6adinc6 in ut Sectio heading 6 in MW/Scot05. The

ses is identic orms, except for some minor cross
hea ig 6 fit
W05 b Section heading 7 in the SBC versions.
i
of throvisi ide 'ca in both forms, except for an additional

Ins is
with pro edings in of erjurisdictions (7.1 -5) and adjustments to
e account tish le station (7.6).
iscel
ules are the same f ms in respect of 1: Arbitration and 2: Fluctuations

The w le P t 2: adjudication
is different to take account of Scottish
legislation. Mere diti nal Schedule Part 3: Contract Documents under which
the parties are r quired to lis all the documents forming the contract.
9 Disputes
II of the Housing Grants, Construction and Regeneration Act 1996 applies to

u
Part
Scotland, and either party has a statutory right to refer any difference or dispute
arising under the contract for adjudication.
The procedures and rules for adjudication in clause 8.2 are identical to those in MW05.
182
SBCC Documents
Arbitration in Scotland is not subject to the rbitrati n Act

1 sets out the relevant procedures and C
The alternative of court proceedings is

rights in relation to opening up and
This contract?
es wZr h
unless it has been selected in the Contrac P artic s.
re
n
, 96, alx
Th
o in clause4 and
ce icates
c
d d isions.
If considering using MW/Scot
It is intended for building w and is not suitable

for work of such duration
'+_
re uired. It can only be

used where the Employer Itant to act as contract
administrator. There is provisio a quantity surveyor may
fl-
be appointed, althou he or ears t ified role under the contract

for such matters as aluations. ed if the contractor is to be
required to design porti the Works
This contract is
is drafted to
Housing Gr nts,
nsu
C
plia
cotzK
sta
stru ion ari

with e formt eC
and or ing works in Scotland. The form
Regulations, and with Part II of the
erati n Act 1996.
As with J vision for p aced completion. Unlike the JCT form,
this SBC ntrac cles f sub-contractors by way of a list of three
names re is also a edica
e for , 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.
s SBCC form can be seen as more of a middle range contract
full SBC version of SBC05 cannot be justified. There is
e
CT IC05 form.
Related
Docum
SBCC Minor Works Contract 2005 Edition, 2006 Revision
SBCC 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

Building Contract for a
epairs a intena
f Building
ct 2004 Editio
cts betW,, nsu mer ' i.e. a tural erson entering into a contract for purposes
ss, in pa cularna p on wish have w rk carried out on his or her own house) and
' (i.e. a pplie 1 services in the course of their business).
to proteq 96 er so that f put at a disadvantage. The Unfair Terms in

cts Regulations 994 (SI 94/3159) apply to contracts which have not been
is d (e.g. thi would nerati include all standard forms of building contract and
al s ises), a re uire that here must be no unfair terms. Terms which are
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
pressed lain, i elligible language.
will normally 13-4 classed as consumer contracts, although some might also
185
00
986
Traditional procurement: consumer contracts 0
XT HG(A)
Agreement for Ho,

HG(A) 2002 Editi.
Background
In 1970 the Joint Contracts ibunal first dduce" vari e Agreement for
Minor Works 1963 Edition, wit? ous4z 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
Renovation Grant Works, whi was in o r ions. The white-covered
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.
With the intr, du the ousin Gran Construction and Regeneration Act
1996, a rev, ed for ntract ca nec sary and the Agreement for Housing
(.p
Grant Wo s HG( b ed in 2002. It s persedes the RG(A) 1994 Edition. The

contrac is for Narc ct or con ract administrator is appointed, and a
C,+
L/)
grant is be o the Housing Grants, Construction and

t 1996.
c"'
ea arently no plans to revise the version for use

,-+
Reg
w Is dire ith the ontractor without appointing an architect or
e for er RG(C) is now so outdated that it must be '_'
,C+
and
ISO, o nurse, n. wer consumer contracts specially drafted for use
Ive bi ilable.
eement for Housing Grant Works is closely modelled on the

eement ing Works MW98. The total document runs to 31 pages
but the Conditio my 10 of these. The Agreement includes six Recitals and
seven 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.
I
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
$ Traditional procurement: consumer contracts
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
obviously be complied with in addition to the ex requi ents the i coract
wording.
Adjudication is included as probably the most olvind utes,
..l-
the parties entitled to refer final resolution for some

reason, still insist on going to arbitration hQ P avisionsn
need to be incorporated at the outse
probably be suitable.
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 with no provision for
-
fluctuations not even tax cfi nges. The ments may comprise
Contract Drawings, co S cifica pn, and ult. The contractor's price
will be lump sum, ba ed upo,) prl\(ng rele ofe ntract Documents.
The Fourth Recital ates th ft the 5eQt oyer has ap
Recital states the m for hi a gra t
are made for paym eats of th gran
ides fo`r ing uhder h
contracto y out and complete the Works in accordance with the
ontractor is to per
hose described in the Contract Documents (1 1).
The Architect is liged to issue any further information necessary to enable the
contractor to carry 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 Coons, a uivi _or

Principal Contractor must be identified, and ntm4nt ma if ne
Recital, Articles 4 and 5 and clauses 1.3 a
The Works may be commenced on date to b

a date to be inserted (2.1).
The contractor is to notify the chite f c p in 6 h

for reasons which are not with the c ntra s c 1 (2
contractors or suppliers areithin e co cto co
The Architect is empower of ti

(Note: no specific grounds fisted.)
If the contractor fail o compr er is entitled to liquidated

damages (2.3) and the rate i i,oserted there is no reference to a
certificate of non-c mplet
certi ed by th
tra
the c oriso recti defects. (The Defects Liability Period
ths, al ou einserted, 2.5.) A certificate is to be
he Ar itec ibligation s been discharged.
rovisi ferrin possession, nor for partial possession, nor for

ion.
`tten consent refers to 'this Agreement' (3.1).

Written con nt to slob-contra
is n for naming a sub-contractor, and no provision for including a
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' isto be on site at all reasonable times (not
(3.3). T re is no provision for a clerk of works.
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).
The contract is fixed price unless stated of 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 e in ded
work is either to be agreed in advance valued fir va ons.
Direct loss and/or expense is limite riatibb s or
included in the valuation (3.7).
Provided that the contract period is to er th ys, r can request
that Progress Payments are ma eekly (4 e Architect is to
1
issue certificates to the Empl yer. Reten ill be a cent unless a different
figure is entered).
Certificates will show the am e and the of ons. The final date for
payment by the Employis 14 Qrn issue th f
te. Failure to pay by the
final date for paymen ill a ct`Fnteres f5pe ent ver the current base rate, and
r
can also give the co tractor, a validht to nd w rk (4.6).
tificate 14 d ys after practical completion

t half the ention (4.2).
The Final Cer, rficate issue 28 ys of either issue of the certificate
signifying mpletion o g go he def ts, or the contractor submitting all
necessary, inform i fort account (4 ). He is given three months (unless a
different iqure is X ser ed) f to of ractical completion to produce this.
ificate, the inal date is 14 days from the date of issue

e Certific
W ere 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
'c'
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
1
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
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)
(in Appendix to JCT HG(A)) must have n sen to t

contractor by the Employer. Certificates is ed by h itec will t
the amount of the grant to be paid, and t is amo ul dZn d e cted fra ts
amount otherwise due to be paid by t E b ce sha e Q l oyes
the Employer within 14 days of the da issue the Cert ficate
It is the contractor's duty to com
required notices (5.1).
The contractor is to notify

statutory requirements and
tlAre itect
tract
ritir if hè
bligatio
i
he will not be liable to the 1ethis c ct.
Where the CDM Regul iafull a ativ i`Vthe Sixth Recital applies,
the Employer is to e ure that th Plah-r in g SO rv s an Principal Contractor carry
out the duties requi under th DM ,aula ons.
6 Insurance
/ind re ect of personal injury or damage to

requir, d to mange i ra ce to ack this (6.1 and 6.2). The minimum
ontrac requires an e ry (6.2).
ed to arrange rCe of new works in joint names against
,-+
or is o i
specified Iclaus
i This is for full reinstatement value, but note
of spe ically nclu de heft, vandalism or impact, and advice should
A pe ntage cover professional fees should be inserted.
of ex ing stru ures, together with any new work which forms
fl)
part rconvers n, s to be arranged by the Employer. As with clause

fl,
quirement is for cover only against specified perils (6.313). In the

event e the Architect must issue instructions, and the cost of making
un r clause 3.7 as for a variation.
7 Termination
4°-
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.
!l'
In such tafTtes the Architect may issue

circur a warning notice, but notice of actual
determination matter for the Employer.
is a
The contractor may determine his own employment for stated reasons (7.3).
ac,
fl,
There is 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 ri is ur th-6"Contr (Rights of Third

Parties) Act 1999 (1.8).
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 ' bil,ding bathe pariies, aleasf until the dispute is finally
determined by legal
Article 7 determi
legal s that bjec to dj 'cation,
p disput s or differences shall be finally
decided b rocee There s no io r arbitration.
192
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 to b m- We und6r the/H
Construction and Regeneration Act 1 6. It is ntracts
short duration, with a fixed price is nnrov
the app onr
quantity surveyor.
The form is for use only in E
Construction and Regenera 996Aaes n-ot ex

Scotland.
There is reference to grant paym t proc fth Recitals, and clause
4.4. The Appendix is form wled hority for grant payment.
There is provision for adjudicatio tfor a itigation is the final means
of dispute resolutio
When completiog th for decision relating to damages for non-
completion a ri i e of flae Work the contract is one to which Part II
e
of the Hou hg Gr nstrun add Re eneration Act 1996 applies, some
modificati of th uses will be re uired (as those for MW98).
ontra minist tor th ral rules are brief and relatively easy to
escales are elaxed` it is important to watch out for any grant
k mus e co n within a specified time. The RIBA does not
istrati 'r HG(A), but some of those for MW98 could
ative of A helpful guidance note is included, which

ma>v s of grant currently available and provides commentary on the
lotions.
Commentaries (relating to MW05

but relevant)
David Chappell and Vincent Powell-Smith
a,c
a'-m
The JCT Minor Works Building Contracts 2005

JCT Guidance Note Housing Grant Works Sarah Lupton
(included with form of contract) Guide to MW05
JCT Guidance Note for MW98 (included with
form of contract)
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
i
for engagement in this arket ave show` e need for forms of contract
appropriate of work.
produced ms of`btyflding c ntract for home owners or occupiers
to c r 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
..C
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 ysta I rk for Clarity approved by the Plain English Campaign.
iatt e to ket them widely through retail outlets such as book
ps directly to custo
The ed i 1999 was the Building Contract for a Home Owner/

Occupier, sui e wh re the customer chose to deal directly with a builder for
home improve nts,
small e; ensions or repairs. Obviously this promised a significant
0)m
improvement o -oral arr 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
°+'
0
to be a more appropriate form for much f the rger- le Iesti ork now
attracting the involvement of architects a build' s veyo , tha the J Minor
Works Contract which is perhaps more s smalle work a co m
a-'
ial ature.
fl,
,,,
It can be used only where a consultan s ap to act the c sto pr'' behalf,
and the document folder includes a JCT Cons tan Agre t for ofessional
services which is dedicated for use with t is b d ng nt t. It is likely t prove more
i
appropriate in these circumstanc s ee nts blis d by t1j4 professional

bodies. Both forms are now re blished 5 ions:
Nature
The Building Contract for a seccuust
two parts. First there is a ques ionnair licat h w en completed sets out
the arrangements for t ndly t the ct Conditions clearly and
two The ustomer is provided with
rpm
simply worded uncle 11 headin
an enquiry letter to s ential bui er, an t of helpful guidance notes.
The Building Contra and onsultanc a Home Owner/Occupier is
rather more for, pear ce.The Contract which has two parts;
uildi
Part 1 is the rrange en for th work, nd P is the Conditions set out under
13 heading ' The nsul an Agree t is als a two part document; Part is the
1
consultan servi( e Conditio set out under nine headings, a total
fl,
s an Pa
of just 14 es of X. Ther yare cope for the customer and the Contractor,
0
and G otes are prj ted o"

e inside cover of the package.
an asy to un rstand. They are only suitable for construction

rt II Ho ing Grants, Construction and Regeneration Act
of
not apply. e CDM Regulations will not apply.
The B ilding -or a Home must not be used where a consultant

30°o°3
s pLOYdT o owlimit, but as will be obvious from the excellent tick

ated cost
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.
The Buil and Consultancy Agreement is for a home owner/occupier who
Contra
intends to ap'p consultant to deal directly with the builder. Note that it is suitable
:L-
a--
only for a home owner. If the work is being carried on as a business venture, then one
0
of the commercial contracts should be used.

+-.
195
JCT HOB and HOC
Brief synopsis
1 Building Contract for a 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 plic,1tions or anninq permition,
building regulations and party wall cons
Facilities for Contractor, as ticked, to provided e f c e by e to omer.
Contractor's responsibilities includ orin equ ent t t d o each day,
regularly disposing of rubbish, an leavin II c n an after i is 'ng the work.
Payment may be single payment or agre ins Ime t mer to pay on

invoices within 14 days, 95
Working period may be or art and corhoetion date entered.

Working hours may be spe
Only customer can char wok deta'k. contra or to ubnWa price before work goes
ahead.
Customer can ext d wor peri if ntractoris delay d for limited stated reasons.
Insurance provisi s custo er's h insurance, contractor's all risks
cover for dama e to ork and unf' ed m rials, and public liability cover.
Provision f occupati a secu ' o premis s, very limited.
Defects per d is thmont s, and c o r will pay remaining 5 per cent of money
due,vgtd 14 ays of con actor puttin right any faults promptly reported by the
c
If isp p ty can art court proceedings, or may opt for adjudication.

fl)
2 Bui ing Contract and C s a y Agreement for a Home Owner/Occupier 2005

=O'
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.
.
VAT-inclusive. contractor to itemise this and

,-+
Lump sum contr Contra or's price

. is
show details of VAT c argeable.
Price includesfor '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
196
JC T HOB and HOC
A start and completion date should be enter ntrac

hours may be specified.
The customer can expect to receive the be 4x guara
The contractor's responsibilities includ car the
and to be 'at the premises regularly t carry ou dto fe
duties and responsibilities'.
The customer's responsibilities i elude ov ing cess the
the working period, keeping rking area r o stru or
contractor to carry out work j derh h ns e nece
time.
The consultant will act for the stom tvng in rons xtensions of time, and
in issuing certificates. two es, i of the work,
and second after th contr actor has-re ctifie t th end of the defects period
of three months. Al hough OW4 are no r neta ertiflcàtes, the consultant must be
satisfied that the co tract s invoices are ontract states that in the event
of any ith t e consulta, - cjsj he contractor must take this up
directly with r.
e wor details be only y the consultant. Where an increase

likely, ust quote t extra cost and time involved before
e au nere c mounts to a reduction of work, the
make an a ropriè eduction.
consultan ake a it nd rea onable extension if the contractor is unable
t comp to t 'for reasons b and his control. If delay is caused by the
nsult t or he c he con actor may also be entitled to costs.
ons ant isrespo ible for pla?afing permission, building regulations and party wall
con nts Consult nts acting for the customer in serving party wall notices should
sure t they ve written authorisation, otherwise their capacity to act might
Welfare facilities tbbe ded for contractor free of charge by customer are as ticked.
tractor 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.

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 i ility riod,

of which the consultant will issue a list of any fauIZ ese ave en re ified
the remaining 5 per cent will be due within 14 days plet n h bee ertifi
Insurance provisions are minimal, and limited to us rce, co ac

fl,
fl,
all risks cover for full cost of damage to ork a u terials (no
stipulated) and public liability cover. The cc) ct liab ility ve
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 er vaca the rern\ hou e insurance
policies should be checked, as most do where re ises are left
c
sp
unoccupied beyond a stated pert and eci rrgents
ight become
fl,
a
advisable. Also the contractoro bligati n to a p t racti a common-sense
fl,
precautions' might require mething ore ecifie th peci cation.
If disputes arise, either part, can s urt proce ayopt for adjudication.
In the latter event the contr zto r y not apply_te h ation I Specialist Contractors
Council to be appointgT
Other rights and re edies e no exting hed contract provisions.
198
JCT HOB and HOC
This contract?
Each form is intended for use only t Dwners s. If the

customer wishes to appoint a consu nt, th to be the version
which gives a role for the consulta t. In suc onsultancy
Agreement must also be used. al and clear
E04
cu nt t
approach to defining the servi fs and ns ly. These differ
considerably from the RIBA S II Works fo d not be used.
be stra are is
tries,
Problems could ex ft over po sessroQ work sequence, design

responsibility partic larly roati to servi insta or other specialist work, and
insurance.
Helpful guida are rovide ore F cMtract, and they should be read
carefully, pa icular e cas f the ersio where a consultant is appointed. As
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.
,--F
e forrt adop a plete

fresh and friendly approach which will
yy
miliar t most administrators. The presentation and

corms ract
aging is ri and cus m r orien ted. The terminology is straightforward and
e form e co bly written i plain English. As Tony Bingham was moved to
mme in uildin ember 99, 'This little form is a beauty'.
atters
ments
uilding Contr'
1CT Building Contract
ce Nòfe`s inclu
199
JCT HO/RM
JCTContract for Home

Maintenance
Background
The JCT published this contract for hom care and r wo 20
i re that
there was a form for all situations. It inte d t er t .type of very
minor works for which even the H e ccu Contract seem overly
long. The JCT have now re-publishe the d t in editi witha slightly
revised format. The new version own edfree e website.
The form provides a most u ful service ing
about, and commit to writi g, thosss tials he co
too often been left as vagu assu ptions.
Where the contractor i evio own to
into an agreement su
short', ndar form ng work ever produced. The

ages long, ith a ditional page of guidance notes. The
e mini t appr riate or thi kind and size of operations, clearly
set out in 11 ort S ns. As with other JCT contracts for home
the Crystal ark of the Plain English Campaign.
guidanno s sugge tha t repairs and maintenance might, for example, cover
ring, p
ctrical re bing s tallations or even painting and decorating. The form
fl'
of i h buil g work which might involve structural alterations,

whemore than o ely to be involved.
An im pha ied is that the customer should let the contractor know
at the aq otation that this contract will be used. This will then
reduce the likeli od of the c ntractor submitting a quotation which is subject to the
small print of his n term
Brief synopsis
A two line description of the intended work is followed by a tick box indicating
whether the premises will be in occupation at the time.
200
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 h in anc-04 cbO full't-gsts of damage and
materials on site, in additio
t
A start date and the contraceriod ened,tcgier wit the agreed daily hours
--+
of working.
The contractor's obl, gation is the ork om&tently and carefully', and
to leave the work a
Sub-contracting is p t req sto er's permission.
The contract is r %nromil ible healand

=safet environmental matters.
Third party
open to
There is no visionn-for los or exp se, but the contract accepts that the parties may
c a
I i ro c 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 but they might

be approached for advice n a suita e m an this should be a safe
recommendation. It migh also ,help to prot t cus er from the so-called
'cowboys' of the industry!
Related matters
Documents
JCT Contract for Ho
References
JCT Guidance
202
CIOB Mini Forms
The Architecture and Surveying In
Mini Form of Cont

Mini Form of Co
(Home Improv
Background
In 1998 the C106 took a 'ocument which they
neatly styled a Mini form of co sible to find a standard
form appropriate for for the client to appoint an
architect or other pr rator. At the time the Mini
had no real com andard forms, this is now
published by the Cl
The form is pr general use and the other developed

in collabora foruse with residential works.
In appear ce an `ructur the form--5- e omewhat conventional, and compared

with tes CT consu er co r ts, not so friendly. Having said that, they are
wri en in plat E fish a req ire the inimum of effort to complete.
s of Conditions, and the Home Improvements

"sions 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.
arily for use by members of the CIOB, but there is no bar

by'-qp(n-members of that Institute.
T e re r com en 1d for use in contracts up to the value of £6,000 at

1998 prices,
and bo r uire e Employer to appoint an 'Adviser' to act as contract
adminis
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.
The contractor's obligations includ kg thè rt+qrk 'to a

the Adviser's satisfaction' (this mig cause s ovacanclusiv
Certificate) (1.1 and 6.4).
The Adviser's role includes `nspection of t`he

information and instructio to th ractor
Dates for commencement a d co pletion are the Conditions, and
n
at the Adviser's disc e or he may r evis thompletion date where
completion is delaye m sta es bey nd t e contractor's control.
re to from time, liquidated
he co ract. or part
is to be confi (m ed
ontrac 4.3).
at e end the Adviser is to list defects 'he
the cont actor (4.4).
without iften consent of the other party, and the
Xractornot-wed to sub-let any work without the written consent of the
viser (5).-15
Tie corgractis fixed r any changes in statutory payments (7.3).

The viser may atid'nf, and the order must also stipulate the basis for
a`,
valuation
Payment to the ntractor wi be as agreed and entered in the contract, that is either
ac,
or by interim payments made from time to time at the

a--'
in a single main yCment (6

discretion of the Adviser
Payment is to be made within a stated period (entered in the contract) of certificates
ti-
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 statut equireents, d pay
and charges (1.2). Presumably these w a d to the C ntract
er and c LQsura mover
property (other than the Works?) al 'ury de i Amount
entered in the contract. The contr, c too le fo e, loss
Works, unfixed materials etc. a d must m a trac r'sW ri
names until the end of the Defe Lial3rkty Pe (8'
mploy
co
Claims or disputes or ene ng to the Adviser initially

fora decision. If no 'resolved thin th adjudication (10.1).
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,
i
and the decisi th adju cator is be gard d as final and binding upon the
.-.
parties (10).
tiome Improve
of th Conditio s in tFii of the form are virtually identical with
'arm for Gen al User the following exceptions:
;Letter of
er is s d by
ue forfn- Th Lett
lausL,_2.3
In aa£
l
in the feneral
in th'
gl
fA V
e
fo
ency, and n
m refer to the appointment of an 'Agency', and the
n
the 'Adviser/Employer' as is the case for the
each case in signed by the Employer.
Urefers to the appointment of a replacement

ere is n such provision in this form.
use form refers to statutory increases being acceptable in

,-+
herwise fi ice co ract. There is no such fluctuations provision in this form,

r).
thus making it lit Ily fja ed price contract.
termination by Contractor', refers in 9.2 ii) to delays of A weeks

d 'D
fl,
! t by rior agreement' 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
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 Rtis
Part II of the Housing Grants, Construction nd ra ' n Act

versions of the form the Employer must a n Adviser
The Home improvement Agencies form s suita use ngl

General Use form is suitable for use in E land and arwan Am
is available for use in Scotland.
The provisions are probably adequa of b

concerning insurance and determinati
The dedicated Letter of Invit ion, F orr of der a
eme e ceptance should
be used, because the last t o beco ontrac ocum en completing the
documents, entries are also o be ade in the text the ditions.
If acting as contract ad for (' Advis rson who prepares the
,--r
is a
drawings) note that t I rule are rela 'vely m ple and the Adviser is given
considerable discre ity. C need d before issuing the Final
Certificate which pear clusive.
The CIOB deserve first to pr such forms, which also provide

for a consulta minis a (not necessarily an CIOB member, nor
indeed an m re co entional than the more consumer
friendly la
uments
ni For
i For tract (Ho
206
Standard Form of Building C
With Approximate Quantities
The Institution of Civil Eng eers

ICE Conditions of Contract venth
The Institution of CiEngineer

ICE Conditions of ontractfo
ibuna
ct 2 Editid
For the purp es of thi chapt racts wh cr-are not sed on a lump sum figure and which
provide for substa ial am unt-bf surement have en included as measurement contracts. It is
acknowled 4 that t I mp ssum easurement to some degree, and that SMM
E
Rules provide 'ar approximat hich of course is not the same thing as 'approximate
quantj surement e ure and extent of the work is broadly known before
wor 4 not ge case ith 'cost plus' forms. These are dealt with separately
in
207
208
Traditional procurement: measurement forms 9
JCT SBC05/AQ
Standard Buildin
Approximate Qu
Background
There is often insufficient tim (even whe t e s of`N k is reasonably
definable and measurable r m t uts to o let the drawings and
Specification in sufficient d ail t Ilo the 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 I to such circumstances the
JCT Standard Buildin ontra`c Appro ua ties may be appropriate.
This version of the tanda Xd-J,C form first ed in 1979 in response to

--I
pressure from prop rty d velopers. The ed a aditional method of building

procurement, vh arly start on to a5 It was thought that this could
still be achiev di c oul 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.
onsider e ed for early completion outweighed the need

firm ce efore 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
Tbg-Keadnote ate Quantities edition states that the form is for use 'for
...
03-
larger works desig or detailed by or on behalf of the Employer where

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
9 Traditional procurement: measurement forms
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
In clause2.29.4 work whose quantity

Contract Bills is included as an additional
contract period.
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
usual valuation procec}es. Idoc ents a co ut ns are to be sent to the
quantity surveyor by
The use of price forpftylaL-,for fluctuations QOption C) is not included.
N
210
JCT SBC05/AQ
This contract?
reme)nber'l-hat:
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 -ice 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. withi
er SBC05 forms
the Employer is required to a con ad sst t and
If used for work in Norther relan
v-0
while for work in Scotland ottish

be used.
The form has the sa e basic st t the o versions, using the same
language and termi logy. eis th use of an ascertained final sum
instead of a contract mps lati to valuation are simpler than
those in the of ersi Ps, b t aynYent provisions are similar.
for p bal p essio of rment of possession, sectional completion
vii
ntract ortion. It allow, for sub-contractors to be chosen by

torfr an thr names.
r+.
+Qg the for are required relating to matters including

o
wheth
in lieu of retention, advance payment or
-'0
sion;
o
fl,
of th orks; int Fire Code; liquidated damages; advance

ions. are is nee d to ensure that the relevant Supplements are
lses sele ed.
ng sc dministrator note that some of the procedural rules are detailed

irn
(1)
li ely to e-consuming.
the JCT from time to time. The form is available on disk.
administration forms for SBC05, many (though not all)
row
wiN this Approximate Quantities version.

è least risky remeasurement option for the Employer, and allows
O-0
t found
in cost plus contracts. However, successful use depends
and accurate the approximate quantities are in the first place.
!p'
211
JCT SBC05/AQ
Standard Building Contract With Approximate

Quantities
Standard Building Sub-contract Agreement
Standard Building Sub-contract Conditions
Standard Building Sub-contract with sub-
contractor's design Agreement
Standard Building Sub-contract with sub-
contractor's design Conditions
f'1 f"1
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
ICEConditions of
Measurement Ve
(September 19
Background
The sub-title of the docu
Agreement and Bond for
Construction: Measurement Ve
This is a form which ly imprecise nature of civil
engineering operati table. The Conditions show
that the form is not nd that it is not appropriate
for lump sum cpntra
This ICE for f Civil Engineers, the Association of
Consulting Contractors Association. It is kept
under re revised 'when such action seems
warrante
quite distinct from the New Engineering
_+O
s
the Institution of Civil Engineers, are the
ontract Panel. These forms continue to be
g for the needs of the modernisers, as well as
ages long and comprises the Conditions of contract; a Form
y
o
in two parts, the first of which is to be completed prior

nd of which is to be completed by the Contractor; and a
(DD
The latter identifies the documents which form part of the

contract berawings, the Specification, and the priced bill of quantities, in
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 Conditions
The Form of Agreement identifies the Contrac tints, a en es in

Appendix to the Tender will show detail such n ment ate, n
period, completion by Sections, liquidated oavment and reten
insurance requirements etc.
The key person for contract administration is 't
in the event of his or her being unable t mper is
successor.
Synopsis
'++
1 Intentions
The contractor undertakes to constru
v+'
inferred from the contract (8

The contractor is responsib for al I ite operations and but not the design
temporary and permanent rks signed e by

of permanent works (unles expre sly provided in t contra ), nor for the design of
r. ny design responsibility
ing r sonabl skill, are and diligence (8).
ork in trict ac rdanc--m&K the c ntract, and to the satisfaction
of the Engineer. daretobea eptable to the Engineer (13).
The definition of e WdH& inclu es both orary and permanent work. The
'Contract' m Tender 0 s important Appendix) and written
acceptance rice t quant es, Specification, and the Contract
Agreeme are t e tak as being mutually explanatory (5).
The qua esti m

actual quan
contract inspect and examine the site and its surroundings before
nderi e rates he quotes will be in the bill of quantities, and only if
atter , f iei could ably been foreseen are encountered is additional
ent possible (11 an
urth necessary drawings, Specifications and instructions to
neer 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
to the Works undertaken by other contracto b==a

The duties and authority of the Engineer, d
assistants, are all clearly defined (2).
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
contract is entered into, or ed d The cont ct is

expedition (41).
The time for completion is to
Completion by Secti i red (
Interim extensions of ti -_nay be a, rded' ntractor must inform the

Engineer within 28 ays ai er the cause o delay; nd supply detailed particulars.
to all clai0
-r,
The Engineer rWst on s u ei `t of particulars, and may award
an extension ht .-e'bf a clai Th, overall extension of time awarded is
subject to f al revi '44).
EnginE ress is too sl w and no extension of time is possible,

t
ice ca given t d the co o expedite matters. The contractor will
to addition payme for taking such steps as may be necessary (46).
o liqui
ae a Ce ficate f Completion when the whole of the Works are

(CD
ed and ha assed any final tests required by the contract (48).
ork and defects period runs from the date of substantial

to d in the Appendix to the Tender as the Defects Correction
gr46d. The co Dr is o liged to finish any work outstanding, to deal with repair,
amendment, recd :r ti n, rectification and making good of defects either within

the peri or 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 is g n th f`ghht-a

objection (59). There is a detailed set of provisions f, atio
ndefa
as is normal, the Employer is required to bear so nhee occ
If any design obligation rests with the sub-contr stated the
contract and the sub-contract (58[3]).
The contractor is wholly responsible for the curate se
unless incorrect information was given b
own cost 0 7).
The Engineer is empowered to suspen any pert o Ire Wq'rk (4
r-°
variations, subject to their being of efin Fin thb con`t(a (51
The contractor is obliged to give

work before it is covered up (38).
The Engineer is empowered instruct oval f site
in accordance with the con ract, art e prope .e-exec
e necessar
agent or representativ tantly o
4 Money
Because this is no a lump n ere is referen
of the priced bill quay ror agr
the figure finally_asc aine (1[1])
ave bee Tender,
sums Ana ryrime ost it oth defined (1 [11), and work or goods
subject'of pr sional su and Prime Cost items may be ordered by
tam
t Engineer (51). Wherever possible quotations should

d by
4agr d ' advance, t 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 "e2).
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.
Payment is on the b'asi&_ monthly statement submitted to the Engineer (60[11). The
roc
Engineer must issue a certificate within 25 days of delivery of a statement. Amounts

vii
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
ICE Conditions
I/1
Employer is 28 days after delivery of the t is mo hly s tem
Engineer (a quite tight timescale). If the En Is to ify, the
to make proper payment to time, then t ctor is enti ed t me
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

Substantial Completion, and t e other ha v hin days
Correction Period (60[6]).
Not later than three mont s aft Defect ction Certificate, the
contractor is to give the E ineer a ccou rting documents. The
Engineer then has up t nths issu the tificate which states the
amount due. Payme t is requi ithin 2 f c& cation (60[41).
The contractor is ob iaed give all is all fees required by legislation.

:-+
These might tern orary rks. th7' Engineer certifies it, then the
contractor II recei Y men of ums i volved (26).
ides the Emplo er against the consequences of any

.-±
contr
s, th ill not pply if it arises because of compliance
ions g en b, the E ineer. There is no express obligation on the
ck whet doc i s or instructions by the Engineer conform to
utory requ ts, b e found not to, the Engineer must issue
structixTs,(26).
f - e ulati ns 199 la statutory obligations on both employer and
tor, particul rly in respe of the Health and Safety Plan and the Health and
Safe Fi .The E loyer is obliged to appoint a Planning Supervisor and a Principal
ra ctor. ough orporation of these provisions into the contract, the statutory
du also o cont tual obligations (71).
The New
Ne Roads a d Works Act 1991 is given detailed attention (27). There is
Jsa p cular efer ce to legislation on damage to highways (30) and unnecessary
e ce-t oads and footpaths (29).
The contractor 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
217
ICE Conditions
The contractor is to insure in joint names, against h# risk ofdama

for the full replacement cost plus an additional 10 (er cen liciere
-''
s
to approval by the Employer before Works Co encerO ate,d inay b
C-0
prudent for the Employer to state the kind of c quire tend stag
The contractor indemnifies the Employer ag nst al ss and cl ms ar'sing I
death or injury to any person, and damage to roperty other an th orks. T
are certain stated exceptions (22).
The contractor is required to be insured gainst f thZxisks

the Employer has been indemnified (23-
The contractor's obligations concer, ty of Kkmen is
Employer is indemnified in respect 4).
7 Termination
The Employer is given the ri t to termi ate th mplo econtractor in the
event of the contractor's ii, insolv nc or becau of s ified defaults by the
Contractor. The Employer is entitl d to take e site, have the work
(-1
of
completed, and postp an settl vent of ccou the Defects Correction
O..
Period has expired (6 ).
iven t ie rig rminate his o n employment for specified

ploye or M plo become; insolvent (64).
Termination of nomi ted sub-co racts i
8 Miscellane
Definitio
The Engine removal 'ntractor's employees (16).
eisp
rt.
nsio event of discovery of fossils, antiquities, things of

='G
haeoloai Iintere
Enbinee is to hav Works, the site and workshops (37).
s relating to sses 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.
'..f
contractor to be removed from the site without

:-t
e is
The rights and obligations of the parties on the outbreak of war are fully stated (63).
There is a provision contracting out of the Contracts (Rights of Third Parties) Act 1999
tin
(3[21).
218
ICE Conditions
Special conditions can be properly

O-0
consecutively as a continuation (72).
a4%
9 Disputes
The terms of the contract require th tm,-r actio

to the Engineer in the first instanc The En
°a°'
decision in writing to both the Employe and4he c

CO)))
reference (66).
of dissatisfaction nnot
-.,
If a matter e s cto reso reference to the

Engineer, then it become ispute. tie ht, agreement, seek
a"'
e p
consideration of the disp ICE 'liation re 0 999) (66(5)).
O-1
Since the Housing Grants, Co ructio genat 1996 (Part II) came into
,-+
force, parties to the c e rig ren djudication. With the ICE

Conditions of Conu ct a noticelof a i%udicati be iven, and adjudication is to
be conducted in at djudi rocedure (1997) (66(6)).
inally etermine 0 arbitration. The party seeking
Q.-
t
rve note to refe Arbi atioMiis to be under the Arbitration Act
.
QM-
nduct d in ccord ce wit eith r the ICE Arbitration Procedure 0 997)

tructi tratio Rules.
219
ICE Conditions
This contract?
If considering using ICE Conditions of Contract re
This is a contract primarily intended for use with orl-Ml enaineeriM work
basis of measurement. It is not readily suitabl
find themselves involved in some secondary b 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 o con
Scotland or Northern Ireland, then nt enc ICE c Arb.
should be incorporated.
The Conditions are comprehensive, the to amiliar to civil
engineers, might need to b stud iedcar Ily b isflexibility over
commencement and com etion, nor inatio of s ors, valuation of
variations, and design by th
Completing the form is,con entries istho
Conditions, in particul endix'to the T&der
admiastration the En is gi n greater authority than
°-'
is
usually the case w h contact admaisf on under bu' ding contracts.
It is the traditional -contMed fore' without t need
e for supplements. Much used
and with a di pedigreq' It m a logical structure and some legal
commentat it on unds o being rather imprecise, but it seems
w tice foY a veryong time.
>>o
to have
uments
Cond'
Ktemb)
Knciliation Procedure (199
tion Procedu 97) '
97)
Condit
220
ICE Minor Works
ICE Minor Works
ICEConditions of
Works Third Edit
Background
The sub-title to this form is Co ontract Schedule
for use in connection wit Construction. The
sponsoring authorities ar the Association of
Consulting Engineers, and 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
i
do,not e eed f2 ,00 It isform suitable for straightforward
and,this includes th Conditions, an Appendix, and a Form

ent. T e C diti o rys are er 13 headings, and are commendably
rasy 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.
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.
mploy to appoint an Engineer to administer the terms of the
contract. The fo ovides for the appointment of a Planning Supervisor. A
starting 4a to entered in the Appendix, together with a period for completion.
'etion of he orks can be in phases.
Synop
1 Intentions
This is essentially a 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 ete he s1). He tak
responsibility for the care of the Works f me ce nt u
issue of the practical completion Certifi ate (3.2).
The contractor is liable for design o y expr staffed in

respect of temporary works other han f sign the E
standard expected is that of reasona skill, dili

The Engineer must provide a necessm in uctio
(3.6).
Other persons engaged direc Employer are t_q b
2 Time
The starting date is ntered in thAppe ix; if)not,
written instruction within 8 d after acceptance of
The contract peri will b
If required, th r must pr vide a

date (4.3).
ed where p ogress is delayed for reasons stated in
vii
e cont taken all reasonable steps to avoid.
when the `Works are fit to be taken into use or

session by; The Engineer is to certify practical completion, or must
vise what remains to be done to achieve it. Partial
,-+
sess n possible pletion by Sections identified in the Appendix.

ted b le where the contractor fails to complete by the
completi
A Defects Correc on Period f lows practical completion. The duration of this will be
stated in the App _dix (5.1
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
rt.
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, iss e a list

variations, testing, suspension of work, re o noti accor
contract and exclusion of persons (2.3
Each of the parties is bound by ever nstructio'tor
it concerns a matter referred for disput esd,kjtion`(2-7
The contractor cannot assign th contract 61\anJ icrhts Lder
consent of the Employer (8.1). aIIy`r\ uirestie c
consent.
The contractor may not s -contr t anlmpart &ftze Wor

the Engineer (8.2).
There is no referenc o nomi ppliers, but the Guidance
Notes suggest that pproved su -contr tors a rs can be named and listed
by the Engineer in t ie Sp ion.
full r onsibili t and for the stability and safety
for is t the
is of me can used on any one contract. The Appendix

rthods t used Options are for lump sum, measurement on
chedule Rates, valuation on a Daywork Schedule and
in the tender figure.
ontract ntitled to additional payments due to unforeseeable adverse

of delay or disruption to progress (6.1).
The contractor is 't a monthly statement giving the value of work executed
r items to be included (7.2).
to
ee`r-i's ue an Interim Certificate, within 25 days of delivery of the
i
atement -3). The Appendix may include a minimum figure for any Interim
E
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
Tom
for payment 28 days after delivery of the monthly statement. If the Employer intends
vii
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).
.-+
223
ICE Minor Works
Within 28 days after the Engineer has certified comp f311owi ma ' ao
of any outstanding work at the expiry of the Corr tion Perio ,the
contractor shall submit a final account. Within 42 cep of t th ngin
should issue the Final Certificate. The amount p on c ificatio ,and
the final date for payment is 14 days later (7.6,
Half the retention is to be released within 4 days o
completion Certificate, the remainder
completion (7.4 and 7.5).
Interest may be added to overdue pay
The contractor is required to compl
notices required, and pay all fe
Responsibility for any conse It, approval

oval licen issi
rests with the Employer. Th s wou lude plan
matters of land law includin part walls conserA
ere this has occurred because
Engin ).
The CDM Regula ions 1 a utory obligati ns on both Employer and

Contractor. Unle state rwise, the E inates the Engineer to act as
Planning Supervisor the ontrac r as P cipal Contractor. There are requirements
fl,
under the R ulati cernin nd Safety Plan and the Health and
Safety File, nd these o ions be"Goryiie contr, ctual as well (13).
r
to be the contractor an Appendix
is re re he cont# ctor is then obliged to take out joint names insurance in
pect of to ipora nd pe anent works. Unfixed materials and construction plant
incl full va e against all loss or damage, bar Excepted Risks as
fined e contract itions 10.1).
The c ractor loyL`r an indemnity against loss and claims for injury or
damage to rty. This liability will be reduced proportionately to the
extent that the E ployer or t ose for whom he is legally responsible contributed to
the cause (10.2)
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 is subject to approval by the Employer (10.6).
224
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,

There is a contracting out of ri
fl,
(Rights of Third Parties) Act 199
9 Disputes
The terms of the contract req n must be referred to

the Engineer in the firs state his or her decision
inwriting to both th ne month of the reference
(Addendum clause
If a matter of dissa resolved by reference to the
Engineer, the parties might, by agreement, seek
consideratio iliation Procedure (1999) (Addendum
clause A-5)
Notice of referra to Zludic ion en to ther party, and adjudication is to be

conducted actor ce wrh the,ICE 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 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
administrator. The contract is for use under th la f Eri n nd Wales,
suitable for use in Northern Ireland or u w ro vied in clak
It is a truly short but balanced form hich -q,Ilow-! r p

Conditions are succinctly and clearl .
Specification.
Completing the form is straightforwar rtes
the Appendix.
Contract administration s could
considerable authority, and the p cedures are strai
w riproject
Related matters
Documents
ICE Conditions of tract Minor Work9Third E
Notes
ICE Condit ks Third Editio
226
JCT MTC06
Measured Term Co
Background
The Standard Form of Measured tra was 9 for use by
Employers in both public and ivate w have ckin need of
planned regular maintenance a min im m ork. viously tiresome
and wasteful having to entero
arat raC%S foe sm II job, and in some
D
cases a contractor might b nee nde repair short notice. In all

such circumstances it is usua prefe dea one ntractor appointed to
i
handle all such work under one ontra spec d, on terms previously
agreed.
Competitive tender -r 4ited on bas s es taking into account the

nature of the intend the geogra area t be covered, and the duration
of the contract rm cont cts been used by corporate and
commercial cli nt b ding this JCT contract is the first standard
ck, b1
form specifi lly for n re-published in 2006, in line with
as b
the 2005 itions rms the suit with the shorter title of 'Measured
r-«
in
Term Co act'.
/total docu en s 42 'aqs long, nd contains a Contents table, Articles of

eeme .. ith fi kals and eigh Articles, Contract Particulars, an Attestation,
Con tion set r nine ections headings, all following the pattern of
to the nature of the intended work as being 'maintenance and

it also e 'Contract Area' to be defined. The Employer is required to
trator, a person who has special significance under this
.---.
..E
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.
bodies the offer by the contractor to carry out work under the
d Recital e
erms of payment set out by the contract administrator, and
ree
acceptance of this offer by the Employer.
Article 3 identifies the name of the person or firm acting in the capacity of contract
E.°1-o
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 o
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.
By nature the Measured Term Contract iffers from I p conic
can be no precise amount of work es shed at oub4f an n Con
an enabling document, which allow e of fic order
to be valued according to rates, pr ges ered i
Use
After the identity of the pa date t he 4 'the Recitals require

an entry which states the rea'. Ther is no ference to drawings or
documents other than the terms of iae Th contract administrator
.
must be named under 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 eiE)K t contr for tq/speci orders such as emergency repairs
within sti riods'
necessary to id tify whether payment is based on the
Schedule of Rates. The contract can be
v-.
subject to fluctuations.
t and valuation can rest with either the contractor or
Contract Particulars should indicate whether the
is to undertake urement and valuation, or conversely, that the
administr 'sponsible. Alternatively it can be shown that only
:t'
ated \Nlue ill be the responsibility of the contract administrator for
With 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 Intentions
228
JCT MTC06
The definitions in this contract have a particul ance, b>ausethei

(1.1).
conflict with Schedules, Specification o

The contractor is obliged to carry out ork whe ework is
to be executed in a good and work e with the
Contract Documents, empowere in cti s, d an and Safety
Plan. The contractor does not h e exclusiv t to work iit e Contract Area
and the Employer can use oth ovtractor hi wn
-°R'
ur fo if desired (2.1 and
2.3.1).
The Employer has the right td pply ma riaplan or equipment needed
for carrying out work, an the tracto 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 3 ).
ices he Co-drdina
otifid
L7-
the contr, starting date are entered in the Contract

blars (ite There ty code imposed.
starti ate Ad re onable com
11 be s,
rog mme must the contractor where the contract administrator

uo (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
fair and reasonabl 10).
actor req u red to make good any defects appearing within six months of
E
etion Date.
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 se up9h the orks:
Access to the site, which can be a complicated i
considerable burden upon the contract admini vious

entitled to a degree of possession sufficient to
any order. Where access is restricted, unp
daywork basis (3.4).
Variations may be instructed by the co initor, at cons
variation under this contract is define
d
i curred
The contract administrator has the wer t6
the site (3.7).
If the contractor does in comply from the contract
administrator, then, after roper ioite, other rsons ay be brought in by the
Employer to give effect to ie ins uction at the ctor' expense (3.8).
4 Money
The work covere /by ea. is sub*ctAo mi surement and valuation in
accordance with e agr If daywork is the appropriate
Rates (5-3-1)
basis, the Sched of H ly harge va he Order (5.4.1). Where neither
I
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).
ntract is p gres rru pted ecause of an instruction issued by the
inist the other unproductive costs are valued
e or
asis (5.8). ,
m sure and valuation rests with the person designated in the

It is. ssible to set a value limit whereby in the case of
W an estim lue r sponsibility rests with the Contractor. Above this
unless there is anyt e contrary, responsibility will rest with the contract
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.
Progress payments at monthly intervals may be appropriate, depending upon the
:-r
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
y
Where the contract administrator is respons le for easu ent
certificate for payment is to be issued withi 56 da Or r Co
(4.4). Where the contractor is responsible f meas ean
alua n,
must be submitted to the contract a trator in 6 da
Completion Date, and, if acceptable, Fce ca is issued ithin 8
of the account (4.5). In all cases the c ificat e m i show th the lu of wor
under the order, together with the basi Nhich e v&e was calculaf,
The final date for payment by t e Em y is days e of issue of a

certificate. Within five days of t date of th ific he Erp 'shall give written
notice to the contractor of th t ma If e plo r intends to deduct
or withhold money, then t mu notifie ing of this intention
no later than five days befo for nt (4'
Failure to pay amount ment will attract interest
at the rate of 5 per nt over ba urren payments by the Employer
first became overd (4-6-
Inthe absence of an vali otices fro and without prejudice to any

other rights a dies, ilure to ay thdate for final payment on any
certificate ca give tract a righ to s pend performance of all contractual
obligations, i.e. pr of con to th particular order) (4.7).
oblig
tor's duty t compl ith all statutory obligations and give all required
i,s entitl to r4 es and charges not otherwise provided for
ire in re y work undertaken in response to an order.
s no the c ntract administrator if he finds any conflict

r uiremen a an order. The contract administrator must issue
will be a variation. The contractor is then not liable for non-
,-+
nsi ii
com lianc i from the order or a subsequent variation (2.8).
igatio of the Employer and the Contractor, with regard to the
MM Regulation ap ing o an order, and in particular Construction Phase Plans and
Health anfety les, come contractual as well as statutory duties (3 9).
The con actor is to demnify the Employer in respect of death or injury to persons
k
or damage erty other than the Works, which arises from carrying out an order
(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.
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
repair or replacement after loss or damage due to m re of e sta a p+

Where the Employer does not wish to insure the exi
,-+
ctur am dmen will

need to be made to the form, which should be a twe the arts prior
entering into the contract.
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
,-f
Date (6.9).
In the event that terrorism cover ceas to be,_avaita, tfarty

insurance shall inform the other par e Em)fover must ihsftuct t
in writing which clause 6.15 opti
fl,
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 'rminat its o
include failure by Employer to ay aq
payment (8-
Common d whher ter ination is by employer or contractor,
and the ract are ithout prejudice to any other rights or
remedies.
'respec rigxtts ties of the parties concerning outstanding payments and

direct los and/or rising from determination are set out in detail (8.9, 8.10).
The ontract inclu es br visions, which allow for determination of the

contrac t by ither party after six months.
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).
Rights of third parties under the Contracts (Rights of Third Parties) Act 1999 are
expressly excluded (1.5).
232
JCT MTC06
9 Disputes
Either party has right to refer any disput

a
to adjudication (Article 6 and clause 9.2).
Where Article 7 is stated to apply, reed
determination of disputes (9.4.1). W itten noti
fl-
e- is 1
The conduct of the arbitration an

(9.1.3 and 9.5). The parties agr thaermae ap
The JCT has adopted the 200 JCT Editio` th Industry Model
Arbitration Rules, and the p f th4rbitration shall apply.
Unless it is stated that Artic 7 app thee-finKcleter nation of disputes to

,-+
is
fl,
be by legal proceedings and no` by arb
There is a reference clause 9 1 0 diatio of resolving disputes may

fl,
be particularly appr priate relative w co ort duration of work carried

fl,
out under individual order It will not remov the sta tory right to adjudication, nor
a contractual aareem nt td 0 edings.
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 the ngla ,ere th

as printed for work in England and es. A to c 1.7 re
other laws. There is an SBC Me m Co 001
Scots law.
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.
rator, this_ eE*nsibility will extend to all work carried out

Sin
r`t dell 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.
sdard f, 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 n
For the Employer who must procee nation of t to prick aXagre to pay the actual
cost of labour, materials and plan plus a t fort tractor's i ds and profit. Several
standard forms may be used in a c plus sit nbut ther p rs to b my one published for use
exclusively under this arrangement.
237
238
Traditional procurement: cost plus forms 10
JCT PCC98
Standard Form of P
1998 Edition
Background
Repairs and rebuilding during a immediate'It-after t0,-Seco d War called for
fast and sometimes even eme tion`CQntra s bdwa-on th cost of labour and
materials plus a percentag over contrac erheads and profit
were an obvious answer at th fter e ar, th imon Report pointed
out that fixing contractor's p eo t of the work was not
in the public interest d unlik acce o bu owners in the future.
In 1967 therefore, t I4hed a hich incorporated a 'fixed
fee', thus introducin ment of com whils still ensuring that contractors
should be able to reco le of i eir r abour and materials. Fixed fees
would only b Bust, if th archite t wa precluded from issuing instructions
which altere the 'n the rks'.
J CT s UP wool rty to revis the form as essentially a Prime Cost

,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.
ctor W requir not to increase labour and materials more
ary to cart out the Works.
Contrac eventually published in 1992, and is currently in
's a heav ent over 150 pages long, including an Appendix, with
an Annex 1 to the
_°Q
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
I
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,
E
although convenient in many ways, does make for a rather bulky document and
arduous cross-referencing.
The Articles of Agreement include seven Recitals and nine Articles, and the Agreement
9-'
may be executed under hand not as a deed, or as a deed if required.

ate,
239
10 Traditional procurement: cost plus forms
JCT PCC98
The contract Conditions are set out under nine S ect

'++J headi gs,'h
i fullZd7-lex-e
a Contents page at the front of the form. A key f ature senwi
ti-
contracting is the provision of eight Schedules. T h se are ry port i t co
on which a great deal of reliance is placed. The ch uIes a s follo s:
First Schedule: description of the natur

drawings (if any);
Second Schedule: definitions of the Pri g
site staff, materials nd obds, r td se-
sub-contract works C. ;
Third Schedule: Contract Fee - erce fee;

Fourth Schedule: estimate of the so
Fifth Schedule: items of
the Spe ification;
Sixth Schedule: items o work to be executed b pd sub-contractors;
ominated suppliers;
Eighth Schedule: ork o be executeq by t Employer or others direct.
These schedules ould efully comple, ed because the nature of the
intended work kely
i th a tthe co be let on minimal information.
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.
c
In the itals, ter tatin in ge ral to s the nature of the Works (also to be
described a clear as p ssible in First Schedule), reference is made to a
S cificati 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.
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).
The Employer dertakes to pay the contractor the Prime Cost (hence the importance
of the definitions ' 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.
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
JCT PCC98
is empowered to disallow costs where the co

economically as possible, or uses a greater tuber f op tive han easonably i
required. However, this might not be easy o impl ent n pra ice. far a abour
,-r
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
,-+
The Simon Report concluded that 'the c trol to b xer ' ed inmost rei rpb ursement
is a form of supervision, veto, and a ccoun ing t
. is db-q bt whether is would be
practicable today, as in any even/it wo p ba call co tant onitoring.
Synopsis
The contractor is obliged to

accordance with the
Architect (1 5).
Protection for the E*loyer(agairist wastefuNA e of lour and materials is a provision
(1.5).
Quality and sta.

(3-10).
The contr ctor st b p vi with such urther drawings or details as are

reasonably ecessa t explai and a Specification (1.6). There are limits to
the ecification nd all 91 aVings, and the confidentiality of rates must be
respe,
and complefion are to be entered in the Appendix. There is

t of possession for up to six weeks. The contractor is to proceed
v0-
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
JCT PCC98
The contractor is obliged to rectify defects (2.10) w otifie

within 14 days of the expiry of the Defects Liabili
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 Rn-a lift of)bt fevv
in or annexed to the Specification (3
There is also provision for nomin ontr e s (8A-1) T*q

forms and procedures, (i.e. NSC/T C); l(PCC);
Conditions incorporated by reference
Architect's instructions mu be in wri
work is not empowered.
The contractor is required t have competent e on the site constantly
(3.6). The Employer is i to a oint a c rk of\wor+_s/Who can issue directions,
although these mus d as i ructio by t e Architect to have effect (3.9).
There is provisio for op ing/.p,1 pectionand tes ing (3.11 and 3.12) and the
familiar JCT Co eof Pr vela he fair a reasonable operation of this
provision is inclu at tB nd of ection 3 d r6-form.
There is pro, to be rried ut b thers engaged direct by the Employer

(3.13) an rk are t listed n the Eighth Schedule, and relevant
informa ification.
reis6 onac ut Article 2 refers to a Prime Cost, Contract Fee and any
rect loss d/or e ertained.
e C6,ntraefFee is the Third Schedule, but may be adjusted (4.10).
ontractor may mak application for reimbursement of direct loss and
expens c 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 is to be as entered in the
Appendix.
242
JCT PCC98
Certificates should include for work properly ex f mat

=!-
#ie cos
properly on site, an instalment of the fixed f ay tabl de Nia
site where these are 'listed items', subject oroo of o et
requested provision of a bond (4.6).
Interim Certificates must state what e am
calculation (4.2). Retention is applied all Inter=
otherwise agreed.
The final date for payment on I terim Ce es da date of issue.
Not later than five days after th a issuf
ifi c the ployer should give
written notice to the contr `t dying amoun oses to pay. If he
<_-
intends to withhold money, e mu e c6 T&Qt wr otice not later than i
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).
Issue of the Final Cer =ificate is n f later thaD two om the end of the Defects
Liability Period, or makin od defect or fr receiving certain necessary
information from the Cont ctor, whicWE est 12).
The Final Certif ate us t amou is duk and the basis of calculation. Not later
than five day, after t e iss u u.?
of the rtifi ate, t e Employer is to give the contractor
fl'
written no 4ce spe fyingltk ount he propo es to pay. If he intends to withhold

,-+
money, In must itten n ice not later than five days before the
final date fo V.Final ate or payment is 28 days from the date of the
certifi t date issue)
utory obligation
the cbri pr's c' uty to `th all statutory obligations and give all required
c` (5.1
The 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
onfr or is liable to the Employer under the contract for any non-
compliance withàt quirements resulting from the instruction (5.2 and 5.5).
for em's owered to carry out limited work for emergency compliance,
IJbe reate as a variation and valued accordingly (5.4).
The cont 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).
6 Insurance
The contractor indemnifies the Employer in respect of personal injury or death, unless
due to the Employer's negligence (6.1).
243
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 t e ind6"n' iies, an the
cover required by contract is the sum entere th ppendix (6 ). This
necessarily limit the contractor's liability.
If instructed, the contractor is to take out jo t n es i7+u i
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 e nevWauildirkas ar cern

names policy may be taken out b for 64ke Emplo
or 6.313).
ified
out in joint names by the E ployer (6- K).
"I,--,
In the event of terrorism over g to be ilabld,
Employer are stated in clau ;es 6. 6.313 and
Where insurance is r ui ainst er's ss of liquidated damages due
to an extension of ti e foll Wor s, then this should be entered
in the Appendix -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 e event f non c nce, the insurers can specify remedial
measures hich must ertak -3FC).
toy s allbVf ed to letermineemployment of the contractor by reasons

pecifie Its (7.2) A warning notice may be issued by the Architect, but the
btice of d termin matter for the Employer. In case of insolvency of the
ontr
ject`tdpossible rei
he contractox-(a
Dependingupon
'
7
g on
;2.1
Me circumstances determination might be automatic
leTent/or the Employer might enter into an agreement
reement') for continuation or novation (7.5).
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
JCT PCC98
Either party can determine the employment of, actoor listed ne

(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 P
Special provisions apply to th keeping f co me

concerning the ascertainment o rime st iteib (1
Section 8A of the form is
l/1
min sub-co
v_,
en
given up to nominated su iers.
-8).
Action necessary as conseque ities (3-16) is included.

Third party rights the Contracts Third Parties) Act 1999 are
excluded 0.25)
9 Disputes
The Housi g Gran on and Regene ation Act 1996 (Part II) gives either
party a s tutory ref erence dispute arising out of the contract to
adjudicatio Articl of P 98 prpvides or this.
d u res udicati detail in clause 9A.
Iitratio etho'd for fin I resolution of disputes (unless the Appendix
ateme been)delete tailed in clause 9B.
conducte"
'+F
on accordance with the JCT 1998 Edition of the
i en deleted as the chosen method, then clause 9C will apply

e dispu
245
1.0
JCT PCC98
This contract?
If considering using PPC98 remember that:

It is intended for contracts where work mu arteclon sit
documentation, or where the nature of t e int work i such that is "
impossible to prepare full information. It is p lished in e sion ther pri ate

or public sector clients. The Recitals call foKa Sp ifi ion t d s h drawings s are
listed in the First Schedule, and an estim eo ime st o e ms of ork as
i
shown in the Fourth Schedule. The C tract Fee ed he c tra may be

either on a fixed or percentage basis izatei thud h ule. e Employer
is required to appoint a contract a an antity s v r.
The form is for use in England and

published its own SBC Prime tract
withdrawn.
PPC98 provides for parti , se ction etion (Modifications to
facilitate this are included a =dof the co ere is no provision for
design by the Contracnor p formanc so
Sub-contractors ma be sel the trac list of not less than three

r frog, a
names. Sub-contr tors a ay also which case the use
e nom nated, in
of dedicated doc ments d 'dato rocedures4 ollow closely those for JCT98,
but the prescribe SC do ents arry the a
When com m, ent ies ar regLf d relating to decisions on matters
including scion; s Oiste items); insurance of the Works; Joint
Fire Cod d EDI. The ght Schedules should also be checked
for com
con ator it is essefitial to follow carefully the procedural rules,
ticularly here ns are made.
from time to time. The form is available on disk.

oes not dministration forms for use with PCC98 but many
se for JCT98 can be'ada
This is an atfractiv d, self-contained but bulky document. The Conditions

are Section hea -headed, but the procedures are rather complex for
administration. o have sold in great numbers, not surprising perhaps as
this is a procuremen ethod which brings considerable risks for the Employer.
Q-0
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.
246
JCT PCC98
Standard Form of Prime Cost Contract 1998 Edition

Amendment 1: 1999 (Construction Industry Sch
-0p
Amendment 2: 2000 (sundry amendments)
Amendment 3: 2001 (terrorism cover/Joint Fi Code/CIS)
,LL
Amendment 4: 2002 (extension of time/loss an xpe Ks )
Nominated sub-contractor forms:
NSC/T 98 (PCC): Part (tender invitati
1 , or)
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
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 $es (relev t to JCT 8 butr itten with JCT80 in mind):
ice Note No yency o ai Contrac (1992)
ctice No o 27: on oft e CDM 4 gulations 0995)
actice to No 8: M iatiori 995)
Seri JCT 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
247
N
0
248
Design and build
procurement
Design and build forms

Design and Build Contract 20 5
Institution of Civil Engineer

ICE Design and Constru on ition (2001)

GC/Works/1 Single tage Desi n ark 19
GC,/Works/1 Two S age DVsi and B
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, is ch nce d only with rms of contract which have been drafted
specifically use wit ign and uild procu and take full account of design responsibility by
the contractor.
249
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
of building procurement. It wa recom en nt ED Construction for
Industrial Recovery. The part t o th ent development
management working gr up o for ey in hority housing also
I
pressed its apparent advant es. Th was a ith the Joint Contracts
.-r
raise
Tribunal the need for a standa form hic , ump sum, a contractor
would design and c struct f s to rs' s requirements.
By this time the D pa rtn f the En the National Federation of
Building Trades Em oyers later to becon
Do°aQ
ction Confederation) had their
fl-
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 pro acted, nd continued for six years. However, when
islaed ase JCT/ tandard 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.
the fo eared, public sector housing has declined, and it has been used
r more complicated than those for which it was originally
inded. As t statement in a 1987 report put it: 'Architects should face
(1)
up to the fact than and build is here to stay and that many clients appear to
welcome) e .ct'. sign and build is now an established procurement method with
fl,
ostl contractor-led but frequently design-led.

The cos f preparin
a tender for design and build contracts with a substantial design
fl,
fl,
import is re high. The JCT Series 2 Practice Note 6 Main Contract Tendering,
fl,
'
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.
251
11 Design and build procurement: design and build forms
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
co
J
o
ich
the
i Itl-
ate
ousra
s'o'
Construction and Development Act 1996. Th later was blish lirn

and represents a radical overhaul, with simila hanges t
The total document runs to over 100 pa

23--I
Recitals and nine Articles, and may be xecute

deed.
e for -- vhich
uranc
Article 1 states the express ob he co b 'complete the

design for the Works and car Ky out and to the f the Works' (note
v0,
that the obligation is to co plete t sign ana of ca e design). In Article

fl,
3 the Employer nominates a perso to act as Employ This agent may be an

architect, surveyor, pro1( ct m gr any oth suit n, and his or her duties
and any limits to his or er Id be c rly ed right from the outset.
(The contract wordi often er' ha ing a duty in certain matters,
and depending o the a is duty might r might not rest with the
Employer's Agen
in practice the form 'often used scheme design has been developed to
a substantia it is co racti to appoint an architect and other
consultant ments in considerable detail, often
includin f de'* ed design nd even some production drawings.
ti-.
However o the loye is quite distinct from that of Employer's

Agent, and
d ra
ti-
hou arked resemblance to SBC05, and in parts the

nditi Qs ,e simila?fy difference between the forms is fundamental.
is no role for a con inistrator to act fairly as between the parties. The
its
...Q
he agree th compatibility between the Employer's Requirements on

tor's Proposals on the other.
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.
-6_
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
<(1
,-+
of a conflict. (The form is frequently amended to reverse this.) Where the Employer
Fl;
accepts some divergence, the Employer's Requirements should be amended before
252
JCT DB05
the Contract Documents are signed. This oes n relie

obligation to satisfy the Employer's Requi ments in to sign;
components and materials, and standards f work an ip rticuly
,--r
are covered by performance specificati
The Contractor's Proposals should re and to fl,

consi ent h th mployer's
Requirements, indicating where amen ent or a 6ation is tvis'table hey should
'=r
e
not include Prime Cost or provis, ns less loyer agr es to this, in
which case the Requirements
plans, elevations, Sections and
services layout drawings, a
st
ical d tai s,
ifica '
ebelie
rm
ma
ey s
n
ab
t-nclu any necessary
'structural design,
workmanship not
vii
already provided in the E ire . althod ifically requested in

those Requirements.
The term Employer's R -6 makes the form equally
suitable for projects here ther ription of accommodation
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
responsible f ob 'niri als. Thi is a st important matter, and experience
suggests t at ast I ni g is desirable before inviting
t
tend( rs. If e co ract e responsible f r approvals, and these have not been
obtaine by th da of nde? h en u e r clause 2.15.2, if the Employer's
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.)
n c tract Payable in stages or periodically based on the
n. The 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
lating t sement of increased costs by the Formula Rules. The Contract
naiys e su itted with the tender, and the Employer's Requirements
might stipulate rm and headings to be used, possibly as prepared by the
sur yor consultant.
Use
The for 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
*"'
.F.
rub
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
`n°
insurance to back this warranty. Details of the cover required, including the period for
,--r
which it must be taken out, are entered in the Contract Particulars.
253
JCT DB05
esig rauura
r-.
Liability for consequential loss occurring as the re, r

contractor may be limited to an amount to be en he ntra Parti
(2.17). Opinion is divided on the worth of this, and app pria fig i
be. As each set of circumstances is different, thp- E uId to e advice

insurance experts.
The form, as used, sometimes places respon i ility for

contractor. It also permits design input mp er b
design warranty is only applicable 'insofa as he
,-+
de n
fl'
the Contractor's Proposals'. There ca be prob wh the`r

substantial design input, because the e v t o ur i l e b
responsibility become blurred.
The Employer's Requirements may erefor' yth 'frpm a imple written
statement of performance req dev scheme design,
with outline specification and gs dica nts, materials and
,-+
i ge
finishes, which may have re I nning p . However, there is
no provision for design in the Employer pletion of the tender

documents, except by w on or 'C
h full co
ge g
rm terms it. Where this
ch variation, including any
occurs the Employer of
consequential expen ctor. luati nisi the hands of the contractor.
The fact that there itect or contrac administrator in the contract
1'r
can leave the pro ty con he Employer's Agent or other

person acting with t authority of Em re er or his Agent is to be allowed access
to the Works o inspe tion ins` ditional sense. The contractor might
,-+
have enga sect td+èpare esigns and assist with production

Q1-
drawings nsider the Fchitect's work to be finished once he

or she ha wings. ome ntractors choose to retain an architect
,-f
for site dutie that drawl are being correctly interpreted, or to see
wh subs ccommodated without injurious consequential effects.
E
'(Q
iers regar, raised by their architect about workmanship and

teri :e rice, and consider that the inspection of work on
is best-reft to their si nt an contracts manager. Therefore it might be highly
le for the Errloyer to advantage of clause 3.1 and appoint an architect
fl,
and report back, to ensure that the standards of

,--r
spe
alit y of materials is in accordance with the Requirements.
Synopsis
1 Intentions
The documents are to be read as a whole, and the printed Articles, Conditions,
,.+
fl,
Appendices and Supplementary Provisions prevail in the event of any conflict (1.3).
,-+
fl..
The contractor is obliged to carry out and complete the Works referred to in the
rip
E
254
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 k
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).
t
Kinds and standards will be either t se referr cumen and if the
Employer has specified these in th me th ill reduce ability on the
contractor. If not, then the cont wh liab in everx of failure (2.1
and 2.2).
The Contractor's Proposals a com d by a C itact S m Analysis (Second
Recital) and the Employer e b refully, ause the assumption
is that he is satisfied that the :oyer R ire ents (Third Recital).
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
br is ble its o»bvdign ork to the extent that it warrants
care a d skiIJ 1). However, w ere the contract is for housing work
u bject terms efective remises Act 1972, the limit of liability
,1 will t app!
esign arran inc es for consequential loss not covered by
DJ:
lo s use, f ss of profit, etc.) and can be limited to an

endix (2.11 -3)
The is re uired toorvb it drawings and other documents it prepares in

U)+-
o theumde 'gn (the 'Contractor's Design Documents'), as set out in the

or as reasonably necessary. The submission is to follow a
.-r
en
et t in S edule 1 (2.8).
e Employer iso by returning the design documents marked either 'A
0-P
Action', 'B 'Ction'. The contractor is to execute work marked 'A Action'
,-+
on', in he c seof the latter it must incorporate comments by the Employer.

<<-
c ust r vise drawings marked 'C Action and return for approval before
any work( Schedule 1: 5).
No comments of the Employer relieve the contractor of any of its responsibility for
design (Schedule 1: 8.3).
.=r
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
JCT DB05
The CDM Regulations require the appointment of a o- In; ran ation rin
Contractor, and under Articles 5 and 6 and provisi he uto
both employer and contractor become contractu s uto
o
2 Time
Dates for possession and completion should e enter

The contractor must proceed regularly and dill ntlwand
'n+
completion date (2.3).

r+,
`<.
-«,
An option for deferment of possessio not excee

to an entry in the Contract Particular
There is provision for dividing t e W o Se s, ands ng separate
commencement and completion esf liq d da
roe
an ages for each
section. All provisions relating to xamp ing for completion,
;41o
apply separately to each sect] n, except ere is Fina Certificate.
Notice of delay must be giv to th mlbloyer, tod pporting information,

including the contractor's tima of the lik mpletion (2.24). The
c.°
Employer is required fy th contra or o hiscision relating to the
completion date as s na bl y ractica le an in any event within 12 weeks
(2.25.2).
The listed Releva Event for ich e awarded includes reference
to strikes etc. affe ing de n wor g from necessary permissions or
approvals, an of chan to requirements or terms of consents
which arise fter the b to ent the tract Particulars (2.26). The interim
..,
C
decision the Pm-pl oye bject Yo revie no later than 12 weeks following
practica compl on 25-
plete thelorks to time, the Employer may recover

(L)
provi that it issues a written notice to the contractor (2.29).

»-«
s,
_0.
pletion, inclu ufficient compliance by the contractor in providing

gyp'
rm ho or the .y File, is signified by a written statement from 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
3 Control
The bar to assignment without written consent relates to the contract 'or any rights
thereunder' is a (7.1).
256
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 i
with information regarding limits to the c ntract s li ility, ust set o

Contract Particulars. The rights are set o iSchedu 5.
The contract provides for collateral provi d by/the tractor to
funders and purchasers/tenants, and to th urcha s/tenants,
funders, and the Employer. The re to rranties st be set out
in the Contract Particulars, th b- ntra ors identified,
together with information reg
The warranties to purchaser,
CWa/P&T, CWa/F, SCWa/F
relation to the Employer, alth
There is a requireme for wri n sent ting which refers not only
to the carrying out o work, but ISO to tters -3). It is a condition of any
sub-letting that the u b-c P,
shall con in cert provisions (3.4).
na ina contractors or suppliers in the

b-co ractors ay b part of the Employer's Requirements
ntal P isio 2.1.
Employer' instr, in writin although this can mean written

confirmati of o `structi (3.7 K ditions clearly define what instructions
are em wer and these ay Change (3.9.1) and postponement of any
con ruction or des Employer cannot order a Change which
m the ut the contractor's consent.
have a mpetent person-in-charge on the site full-time
The ntrt s all work to be carried out in a proper and workmanlike manner,
and i accor the Health and Safety Plan (2.1.1).
V.Cie-'contract a under the direct control of the Employer to be carried
0
out during the ti e contractor is in possession (2.6).

Venrork or ate 'als do not comply with the contract, the Employer may instruct
the o rem ve them from site (3.13.1). The Employer may also order any
consequ Chan es necessary, which will not attract any extension of time or
addition to ntract Sum. It may order tests and inspections (3.12) and the
vii
likelihood of any non-compliance in similar work elsewhere is covered (3.13.3 and

Code of Practice).
4 Money
The contractor is required to provide Priced Statements; there are strict timescales to
257
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 (5-
The 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 in tt,-LMploye
instructions must be given about the expen
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 ntractor, and each application

must be supported details as sti ulate the Employer's Requirements (4.9).
`-L
The final d is 14 vs froom th date of receipt of each application.

Within fiv mploVer mus notify the contractor in writing of the
+L,
amount e tion to `thhold or deduct money must be stated

s Gt the grounds for such action. This must
v_`_
clearly in a lich also

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
outkarW ng amou 5 per nt over current base rate, and can also give the
+L,
actor the right to er rk until payment is made (4.10).
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
r11
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
L+,
be conclusive as to monetary matters (4.12.5).

ti-
Final date for payment is 28 days from the date when the Final Statement from the
+L,
+L,
contractor or the Employer becomes conclusive. Failure to make payment in full by the
v0.
final date for payment will attract interest of 5 per cent over current base rate.
258
JCT DB05
The contractor must comply with all sta r r quir en and
required by statute (2.1). The only exceptio this tract oblig I
in the Employer's Requirements it is stat se are in c plia e

permission, 2.1.2). All consents or p mission obt ed b he ntr w
passed on to the Employer (2.1.3).
The contractor can only claim fe,

Employer's Requirements by
adjustment to the Contract S
The contractor is to notify t e Em itheN anydiv between statutory

requirements and either the ploye irerrhnr the ontractor's Proposals.
The Employer's consent equir to ari ents (2.15.1).
If amendments to t ract is Prà{ osals

Contract
le essary due to changes in
statutory requireme is aft -tW base dat then ould normally constitute a
Change in the Em ,oyer' Requirement wou not be at the contractor's
expense (2-15- ever, here th Er yerquirements expressly preclude
this, then nec d m e r s woul the contractor's expense.
k
Xor is o iged c ply w-ittrfhe CD Regulations and particularly, where

is not iabl , to with duties n relation to the Construction Phase
e Healt d Safe
contractor in 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'
d, the co 'tractor may be required to take out joint names insurance for the
inst t risk of legal nuisance. This will have been stated in the
vii
emen There is a list of exceptions, and damage must not have

D-0
tin
tor's negligence. An entry on the extent of cover

to.
the, contr' is
Of-
caused b
required by the Co rticulars (6.5.1).
eorks' follows the SBC05 provisions in clauses Schedule 3

B or Q. The full reinstatement value of work must include for
0p`-ffons A,
the cont ctor's design work. Which alternative clause is to apply should
mployer's Requirements and shown by deletions in the Contract
,-«
Inthe 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.
The contractor required to carry professional indemnity insurance. The amount of
259
JCT DB05
cover and the period of expiry are inserted in the Contract P ticula The ur Pr
'-r
i
must be taken out immediately following exec tion o the ntr Th 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
fl, Z
in rted in e Co ract Parti ars.
An entry in the Contract Particulars will show If the J Code f Pra ice o
Protection from Fire of Construction Sites (stoapp
rt.
- 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 in otice, 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).

The contractor is allow e his o em for specified defaults or
=l;
if the Works are susp m fo e ied per dd to a default of the Employer

(8.9.2). In the eve of in olven oft m loyer, the contractor may elect to
determine its ow emplo
Either party can erminL,4l empl anent
(8-11-1). Onej in obtaini plant'
blameless.
ctive ri s an clb@
u of the parts concerning payment, removal and
n are t
t o, ind tail ( and 8-1/2). Note that the contractor's obligation
...
ovidin e Em loyer wit co ies of all drawings etc. prepared, and that
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
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 Employer is wholly responsible for the boundaries oftKe s

contractor (2.9). This could be conside bly im rtaM in the`contM of th
etc. Act 1996.
An appropriate deletion in the C tf icu sho*

Supplemental Provisions apply, These e i ota I
necessarily be relevant for all con cts. ey Ca4 ably

of the form, and they are as.
1: the contractor may be r uired int A
representative on site, and shou a char erso
consent of the Emplo er is req
2: the Employer is e titled t e a sub' ntrac e Employer's Requirements
-
(note not to be int duc later during ogres f the Works). The contractor
is to notify the ERplo r wh ,n the sufcc s, een entered into.
pclu ies a part of the Employer's Requirements,

firm ills, Jhe m asurement used is to be stated.
fl,
're of
ariatio or ang of ajor na re have been issued by the Employer,

may b requir dto s mitestimates of the anticipated effects in terms
of time nd cor ential expense, before work is authorised. If
t over the instruction may be withdrawn, or the
icatior :
or ma ap ication for loss and/or expense as provided for
onus is on We contractor to include a detailed estimate in the
tiob, loyer may accept the estimate, or choose to negotiate, or refer
Vac
...
atter to
stn
The Housirrant Cor truction and Regeneration Act 1996 (Part II) gives either
atutor righ to refer any difference or dispute arising out of the contract to
n.-Article 7 provides for this.
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
L.0
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
-
JCT DB05
Arbitration may be agreed as the method for finally, Ydispu s (Ar-8-aad

9.3). Unless this provision is shown in the Contract s to amply, en di utes
are to be referred for legal proceedings (Article 9
262
JCT DB05
This contract?
If considering using DB05 remember

It is intended for use where the contra ccept resp 71tu/iar r of the
Works to a greater or lesser extent as equire althgbgh c etion of
the design is a stated obligation. The ntractor e reasable ski nd care in
rya
achieving this (i.e. not a fitness e more th ontractor is

responsible for design, the cle èr th
`~'
ou dar of spor bility become.

Whilst at first sight, this cont ct has man a fundamental
+-'
ila
difference is the absence o ovisi for on istrator or quantity
surveyor to act on the Em oye if. TR-rm is for' usi England and Wales.
The Scottish Building CoW t Corn ubl i i 199
Contractor's Design form (200 evisid
The Employer's R uirements and on tra sals are the core of this
contract and it is i port at they in h The Contract Sum Analysis
should be adequa ly d Ctailed in cove Co m eting the form requires care,
particularly beKaause of numbe of ct, Particulars and supplementary
provisions av
dyer w Id e incorporating the optional
ntary P ovisi rtarly those ating to named persons in Employer's
c.-
E
s,
ts, a ubmis es by the contractor relating to the
ranges and io
>
s Ag tt,, ny limi to authority should be clarified, and a clear

nwhat 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
trar under a/novation agreement, accountability should be clearly established
and espe
263
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 and Build Contract Guide
JCT Design 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 Note CD/1 A (

JCT Practice Note CD/1 B (
David Chappell and Vi

The JCT Design and Buil
3rd edn, Blackw.
Sarah Lupton
Guide to D
RIBA Publis
264
ICE/D&C
ICE Design and Co

of Contract Seco
Background
In the early 1990s governme asthe basis for
awarding contracts for roa n. It was a further
endorsement of the rapid f procurement, and
the belief that there wou e schemes more quickly
and save money overall - even ay be higher'.
The ICE Design and ely introduction in 1992,

although obviously onakYCE Conditions. The structure
of the two forms is same Section headings. There,
however, the 5iMilari urpose the documents are quite
distinct.
As with th traditi al ICE nditiorm4is for is produced by the Institution of Civil
Engineerd, the ssoc ti o Consulting ngineers and the Civil Engineering
Contract Asso n, an is kep 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.
e c(tract are in 72 clauses, and the sequence follows closely that

s foun in t e traditional ICE Conditions. The Contents list and index on a
clause b c 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
ICE/D&C
The key person in terms of contract administration is t

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 co Iete uding

providing all design services, labour and aterials hi het manent
or a temporary nature as specified in or re onab`h to m beerr t contract (8).
In all design obligations the contra ble skilr, nd diligence
(8) and this includes accepting resp sibility ign v ' clud as part of the
Employer's Requirements.
The contractor is to institut à quality ssura

which must be approved by he E Repre ntativ
work at both design and co struc ion stages (8),
The contractor is resp fety of t e de
of all site operations truct n (8).
Definition of the orks temporary an permanent work. Contract

i,
means Condition of Con act, mplo rsr uireme , Contractor's Submission and
other documents gree y the/ partie (1). T He documents taken together are
stated to be lanator but i t4event of discrepancies between the
Contractor' he Em Jo is irements it is the latter which prevail
rip
n r
(5). (This i of D98.)
The contr ave ins cted nd examined the site and surroundings,
i'°°
and t e by the Em yer before tendering (11). In the event of

c+.
ph ical con' cial obstructions which could not reasonably have been
0D0
fo, esee n prove at e contractor gives written notice to the Employer's

a
@..
resdntatiye )ayme may be authorised (12).

.-+
ontractor must su nit II necessary design drawings to the Employer's
consent must be obtained before construction work is
st submit programme to the Employer's Representative for his or

her acceptance. It mrevised from time to time as necessary (14).
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
fl,'
to appropriate standards and codes of practice. There is provision for checks and
0
testing to be carried out.
266
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 tatty

named assistants are clearly defined (
The contractor must start as s

expedition and without de
The contract may prescrib
,-+
er to give
of extensio s of tim
ay so be due f
wf
'{+.
kind (4
fl-
-°`
ah . Thex
wit7 n nd supply necessary particulars. The
.-r
e z day ,lay
epres ntative Tempo not , I ter than 14 days after the completion
'ward ime even if t re is no claim by the contractor.
ctor tM to co plete the w

e or any designated Section of the Works
fl-
E loyer ma dedu retain liquidated damages. These must not be

nalty, bu e no Thznitakfon to uidated damages is stated in the Appendix
I
then Mquidat damages without limit shall apply (47).

here a Plo tive requests accelerated completion and the
n
!boe e
ctorr a
r
ion is taf
es, for payment shall be agreed between the parties
re aroaress is too ow to ensure completion by the date agreed, the Employer's

.-r
esentati T'ay noti he contractor of his or her opinion, and the contractor is
.r)
obliged to take such e as may be necessary at his own expense (46).

Th-e- ployerRe a Certificate of Substantial Completion
esentative must issue
when i opinion the whole or a designated Section of the Works is
r her
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
(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
ICED&C
satisfied, a Defects Correction Certificate is issued, alth

contractor of any liability (61).
Prior to the issue of the Defects Correction Certifi )must
manuals and as-built drawings for the permen coa ra
obligation quite additional to material for the (61).
Neither party may assign the contract or itorltaieres

written consent of the other (3).
The contractor must first obtain c om Em oye \ ore
change of the contractor's designe rson`r rmed in th
Form of Tender, Part 2 (4).
The contractor is permitted to

must notify the Employer' Represent rior t
arriving on site (4).
The Employer's Representati order susp
and order alterations t ?N Requir
ged t give t Repre
it is c erect (
The Employer's resenw e maa instruc moval from the site of any
g°3
materials whic omply wit the c ct, and the removal and replacement
E o
of materials y cl wor ip. Thi! will tens replacement of work for which the
7c'
ir6
contractor as desici ility (
gust prov'de a necess y superintendence. A Contractor's

overa response it and may delegate to a nominated deputy
I
ement o the Employer's Representative (15).
r)-offender inc p sum, or such other sum as may be ascertained

rdance with the colt' nditions. The contract price will include for the
istru n a 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
ICE/D&C
Variations to the Employer's Requirements

Employer's Representative the contractor
dered,
ita
nd if
tim
u
eoft
and delay involved. Otherwise, or if the es of cepte , val tion
variations will be by the Employer's Repr n fair a d reas na E
in accordance with the contract (52). ork on a da ork sis ill

in accordance with the Federation of Civil
Dayworks (55).
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 he must notify the
0.37
to old pa
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
I
to time, the contra for is to intere utstanding amounts (60).

ill be shown in<he A o the Form of Tender, and the
'kill t they slue of the Certificate of Substantial
-r,
ten n
and th :orre tion Period (60).
han t ee m nth the date of he Defects Correction Certificate, the

must the E 4ployer 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 (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

'-statutoGw6i`Ntion but this will not apply if this 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).
The CDM Regulations 1994 place obligations on both Employer and Contractor,
+C-,
particularly in respect of the Health and Safety Plan and the Health and Safety File. The
fl,
Employer is obliged to appoint a Planning Supervisor and a Principal Contractor. With

o
the incorporation of these provisions into the contract, these statutory duties become
fl,
contractual obligations as well (71).

269
ICED&C
6 Insurance
The contractor takes full responsibility for the care rks, a rial '11 a
equipment from Commencement Date to Substa le on. Th risks i
O-0
any loss or damage from whatsoever cause, b Jude th Except

listed in the contract Conditions (20).
,-+
The contractor must insure in joint names ains risk

temporary and permanent works for the eins to11 .11
t co
cover additional costs (21). The term ce e fo
Employer.
There appears to be no requiremen tract take ou

O-0
respect of design failure.
The contractor indemnifies the inst t claims for injury

'v,
to persons and damage t property oth than- There are stated

exceptions, and these remai the resczo sibility the
()) 22).
,-0
The contractor is required to e indemnit mployer by taking out

third party insurance co mini cove equi ntract will be the figure
stated in the Appen x to Qnder, ut t is will not necessarily be the
extent of the contr tor's li
obliga ccident
ployis ind nified in-r
tractor` seven ays' notice in the event of specified

vency nd may, xpel the contractor without releasing
DJ,
ler the c tr (65).
d u res Works, ascertaining the value of work already done,

arranoin ter termination, are set out in the contract (65).
E5.
.-t
of spec on the part of the Employer, which include

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).
Following termi ation by th Employer, the Conditions provide for assignment of

,-+
fl,
goods and materia not appear to include for design drawings which might
fl-
be necessary to complete the Works.
270
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 things of
archaeological interest, etc. (32).
The Employer's Representative e site and the
Workshops. The Conditions refe als in manufacture,
but not to offices where de
Matters relating to the posse nd those prescribed in
the contract are mainly the resp here there is a failure
to give the contractor, e and additional costs can
be awarded (42).
Is brought on to the site may

mployer's Representative (54).
In the event df an o for k of vvK the obligations of the parties are as
stated (63)
ights of Third Parties) Act 1999 are
Spe I con i ns ay be corp rated, nd they should be numbered consecutively

aft r the standar Co itions contr t (72).
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.
n cannot be satisfactorily resolved by reference to the

tative, then it becomes a dispute. The parties might, by
agreemen deration of the dispute under the ICE Conciliation Procedure
(1994).
Since the Horants, 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
ICED&C
All disputes may be finally determined by reference t

arbitration must serve a notice to refer. Arbitration r
ion.
nder he
e par
itrats
sq Act
1996, and conducted in accordance with either t itrat' n ced (19
or the Construction Industry Model Arbitration
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 tl
Emp yer' Require( ents. s originating from the
contractor's designe pp r od by E ml loyer's Representative before
work is commence ay re the c ntractor's liability.

and siiAnificint 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 Conditi
272
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 ocure ent s fir published in 1989. Shortly
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
increasingly po, I hs d icular, which was becoming
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 1
was publi ed in espo se' t ov ernment ' Achieving Excellence' initiative, and is
applicabl so botla forms It inclu fl,
visions for risk management, value
mana hole life c tang a alue engineering.
signidBuild rsion is obviously an adaptation of the
en 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
1Q'
loyl r ents by deve oping the design outlined in these documents.
wo Sta and Build version is also mainly a lump sum contract, but
,-+
ee
e sufficiently advanced to enable the contractor to submit

l/1
fl,
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
vii
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
Commentary. The General Conditions are prefaced b a ContE(nts lis, foIIo go-ac
Index. Language and terminology is as that to in /otther QVV6*s/1
contracts. The 65 clauses appear under the sta anima lar
a
number are identical with those found in the tea nal fo fi. The is also very
useful Schedule of Time Limits, the essen al t of Pa iculars w
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
Use
The Single Stage version is without a sep ate to e. N-clpsig put required
from the contractor will be to the e fired, as i?7dica d th Employer's
Requirements. The Contractor's P pposa e su ed ass f the Tender
together with a Programme, a a tails professional
indemnity insurance.
The Tender Price Form in dudes alte native ntries
Condition 10, Alternative A desig is ity limite using
"
or Alternative B (warrant of itnes for purposo

'
fo`ra se ate desan s

stag
d Build provi
design documents; right j h desi

.
professional +.nsurance r desig
incentive b plet
finance c
mobilis
payments
perf,
rent com
(late
uil rugs an
The 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
of a Project Manag rtg on the Employer's benalt, and given so much authority,
is somewhat unusual in design and build contracts. The adjudicator and the
arbitrator may also be named.
Synopsis (Single Stage version)

The form is one of the family of GC/Works/1 contracts. The Conditions are broadly
274
similar to those of the traditional GC/Works/, /and it here e un
fl,
i
to repeat much of which appears earlier in 6 a b&&
However, the design and build forms diffe ant res

which are as follows:
The definitions include items mainly evant to
Requirements, Contractor's
etc.
The fair dealing and team-wor obli.catio

those responsible for desigg
In the event of discrepan bet pIo 's equir eats and Contractor's
is the Requiremen which reverse of the position
gi'
Proposals, it
with JCT design and ts.
ante re7 uirem ng to design are similar for

--OR
The professional in emnity ins
L/)
both the traditional Zd d signand build ve ions ]), although in the former case
these would apply o if 'dated in that fP rticulars.
is sa e for the corr' ctness of setting out, and there is also
0
t on tl e contNctor to as built' drawings and other relevant
,-+
withi e Date of Com pletion (9).
fl'
contra -t6r's des gn oblig an be incorporated into the traditional
r-.
obligatio are sl different from those for design and build (10). -s,
Design Do is (10A),
.-t
r+'
e pro sion n Fo e traditional form is not included in the design

an build r on.
ctor mu provide samples as are specified in the Employer's Requirements
btain prova efore commencing work (31[3]).
"celera ovisio differ (38).
Inthe sub-letting ns, the design and build form makes no reference to
aminated su conf actors (62). Obviously therefore, the nominated sub-contractor
the raditional form is not used.
275
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.
The now defunct National Joint Consulta
Industry Board, have both produce e
Co
Co or
ittn e se
rese7rt Construction
than o design and
build contractors. Both advocate at de d bu' nderin est achieved
through the two stage process, and to tha tagrin ill be suitable
only where the Employer's re for efin ign with little or
no risk of further modificati
When completing the co etM in the forms, the Abstract of

Particulars is a key docu f any sp ntary conditions are
incorporated, then in c flict the; I ovf the printed Conditions.
v+-
This, of course, is th revers e os' 'on wit ontracts.

The wording of th Condi ons i"Iea nd well presen ed. There are alternatives for
design liability epend i ier ,t e professional duty to use
reasonable care an kill, ofor an solut fitness for purpose.
traightforward and there is the

for Oxa'gress etings in Condition 35. The Model
upporting ocument and must be used. There are
(3p
tract, nd a further 13 administration forms.

set departments targets to become best practice clients.
3rD
..ten
se cover t tegrated supply chain routes such as design and build,

d val account whole life costing and value management.
fl,
se 'AcWing Exce ay be progressed by incorporating Amendment

the Abstract of Pa r GC/Works/1 Design and Build contracts.
This for mos to those with experience of GC/Works/1, for the

terminology and roeeaures ill be familiar. It is particularly interesting because it
<l<
((DD
(D3
seems to give t Employer, nd the Project Manager a degree of control over the
contractor not usua d with design and build contracts.
276
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

Standard Form of Managem t Cont?act'1,998\lditio
00o

Works Contract 1998 Ed tandar
vii
Contract
The Joint Contracts i-ibunal Lt

Construction Man gemerI A reemen
The Joint Contracts

Trade Contra ith the
Agreement.
d that
r
s eral
/ uilding contra for traditional procurement can be adapted
However, ' included in this chapter are those exclusively
s where the pry opal rot or h the contractor is to manage the intended works, which
by o er person 'under h or h control.
279
280
Management procurement: management forms 12
XT MC98
Standard Form of
Contract 1998 E
Background
t e Employer
For 'fast-track' projects where an
se e over gn, Specification
v,o
and contract administration the s o in e nde professional team,

management contracts ar on n.T int l d Kingdom became
fl,
fl,
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
procurement.
r-.
In 1979 the RIBA C uncil, the advice Contr is Committee, asked the JCT to
U'+
-,,
produce a anagem rh cd A the time, the only forms available
were those d ise ycq ntrac t4Qg orga isatid s who pioneered this kind of working.
:p'
These were ften g ared suit f rred orking procedures of the companies,
and uncle tanda d rat ith their particul r interests very much in mind.
e J is ued Tb Stan m of Management Contract (MC87)

elated doc ments essary for management contracting. The main
ments r the he contract ween the Employer and the Management
htractor, an s Con cts bet een the Management Contractor and each
orks ca rr +qg out a p kage of the work.
Th ocu ents ar currently published in 1998 Editions and the Management Contract
is in amiliar for t with Section headed Conditions, whilst the Works Contract is
cfim discr parts, the first of which is itself in three parts namely:
x
Works Contract/ 1: Invitation to Tender

orks ntr t/1, tion 2: Tender
ction 3: Articles of Agreement (to which Sections 1 and 2 are
ract/2 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 Management procurement: management forms
JCT MC98
two parts, Part relating to information required g fore

1 erally nd
specific information which needs to be entered b, c nstr do
Necessary to this kind of document are the Schedul whit app r i
the VAT agreement.
The First Recital refers to the description of the ered in t e FirstAch
(:D
roje
and confirms that the Employer has appointe am. oh'
Too
a profes 'gird Re
confirms that the Management Contractor is to mop to w t rofessionaYI
both in the Pre-Construction Period and t do erio r ect of
set out in the Third Schedule.
,O+
Article 1 confirms the Management tor's Teem nt t6\60dorrri

defined in the Third Schedule, for whi -kie E mp
'~'.
under Article 2.
The names of the Architect, th minist
fl,
to be entered in Articles 3A
to be entered in Article 5.
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
fl,
{3j
information prepay d by t profes iQnal tea` n resp t of the Works Contracts.

,-+
The appointme oft nning Sups Principal Contractor for the

fl,
PI
purposes of the CD egula Nons ar over Artcle 9. Article 8 confirms the rights
of either part utes to atio while Article 10 covers whether the
final resolu Kto be itratio or by litigation.
r hand an
e Ma ay be appointed by the Employer pre-construction, at

O+,
a 4tage earl oug i contribute to the work of the professional team.

For his he will expect to 'ee. Then, assuming that the project proceeds to
the c611 struction phi th Contractor will appoint Works Contractors
fl,
to carry o es'. For this he will be paid a management fee and be

tea,
cka
reimbursed the P bsts a defined in the Second Schedule.
Management Con tors almost invariably selected by tender and after interview.
fl,
The fee is not usually the main criterion; this is above all a contract about resources
,-r
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
JCT MC98
Contractor starts with a Contract Cost Pl.r'i and rogra me

responsible for the appointment of Works C tracto s, th coo
.-r
and the provision of all site services and f cilities.
Tight financial control is essential, and ide ble reliance ' place t
CND
fl,
of the Management Contractor to tota
,--r
onitoo he ost PI , eve
independent surveyor is appointed b he Emplo e Man ement

fl,
under a contractual obligation to chi e co letio on me, altho h any design

developments or detailed cha ges k p ag es hi c-b occa as the work
r
proceeds could give rise to e. e co till requires the

Management Contractor to e ' t en you n allo for acceleration of
parts of the Works.
The Contract Documents c prise ojec (listed in the Fourth

Schedule), the Project S ati a Con t Pla xed to the Appendix Part
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
1 Intentions
The Manaa ment ntracto ndertak o coo erate with the professional team (1.4).
fl,
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
stror contract and pr vi those site facilities and services listed in the
Fia anag Contr for is responsible for continuing supervision,
project is car, ed through in an economical and expeditious
detaile records for the quantity surveyor to verify the
ontractor is fully liable to the Employer for any breach of the

se occasioned through breaches of Works Contracts (1.7).
rch itectt he Management Contractor with further drawings and

documents nece explain and amplify the Project Drawings and Project
specific 10)
The Con raocu ents will be Project Drawings, Project Specification, Articles,
Conditi s and App hdix, the Contract Cost Plan and the Schedules (1.3, also Articles
6 and 7).
Quality 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.
The description of the Project is to be entered in the First Schedule.
283
1 2 Management procurement: management forms
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 1)
(Appendix Part 2) for possession and completio
The Management Contractor is given p ssessi
is required to secure commencement a ensure re and gen
Deferment of possession for up to subject t
(2.3.2).
oject
Completion is provided for A.
Project extensions of time ay be ceded to t t Contractor by the
Architect. The events or ite s whi h are relevan u mber (2.13) and any
extension requires the men Contract tr its best endeavours to
prevent delay (2.12).
Contr ses to ext6nd th contract period of a Works
itect -L-d and has e right to dissent (2.14).
Completion of the ject may be the completion date (2.3.1).
Practical co roject he Architect and is subject to his or
her opinio
If the M r fail com ete the Project by the completion date,
the Architec to of non o pletion (2.9).
Employ S MT to liquidated damages depends on the issue of a
`rtificate-of, non-co
ects`-Q,lee made go efects.Liability Period must be scheduled by the

..C
ect and delivered up an 14 days after its expiry (2.5). When the defects
be ecti , th Arc tect issues a certificate of completion of making good
ides for p 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
JCT MC98
The Management contractor has to identi age en ers ei er

the Project and/or site in a list attached to ched e, and r
manager in the Appendix Part 2. The, the Arc itect iOLlaui

changes (3.1 and 3.13).
The Architect is to issue written instru 'on o th
reasonably necessary (3.3). The str tion mi reqi
Contracts variations (3.4). The `rchitect to 'be inst i
sums in Works Contracts (3.4).
The Architect has the pow to n e Mataaement

i
work (3.5) and, an unusua term i ontractsto acc

altering its sequence under stat circu
The Architect shall ovide the
setting out, etc. for he Prom! II issu
of works (3.18).
n actor' ust obtain vobcher o satisfy the Architect about the
f goo matbkOls (3 must also comply with Architect's
concer (3 1 0)ioval
fr m the site of work not in accordance
bntrac th-e,i mediate king good of defective work (3.12).
There is a b to assrqnmen ntract without written consent (3.19). However,

ther an clause hich if, pendix Part 1 entry states that it is to apply,
hey
all s the I o tran right action against the Management Contractor
uent interes n the completed Works (3.20).
app
arried o orks Contractors, and which are identified in the

r instructio are subject to the Conditions in Section 8 of the
act (8.1).
Contracts, the Management Contractor's obligations in
ect of the vice versa are fully set out (3.21). Alleged breaches by the
Management Cob r by Works Contractors are covered.
ntract allows for work not forming part of the contract to be

t by-'perso s directly engaged by the Employer whilst the Management
r still has ossession of the site (3.23).
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
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 to r i
earl finaay
-+.
the Works Contractor (8.3). There is an option nt Wor
Contractors, subject to certain safeguards (8.4).
Payments to the Management Contractor inclu
O-+
Cost o
fl,
fort
carried out, reimbursement of amounts incurr by the ag nent ConJractor's
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

obligation to invest, and unless the sa I Marj
Works Contractor may require it to epa ccount.
is released at practical completion o e Proj an
Interim Certificates are issued t

L/)
in the Appendix in respec of the pr ctiori

construction (4.2).
Certificates must show the a ue to the ana ntractor, and the basis
of calculation. The fin y nt by Em oyeris 14 days from the date
of issue. Not later t an five
1°'
ter is e Empl yer is to give written notice

specifying the am nt of ,posedand if ums are to be withheld the
-+.
Management Co ractor e giv her writte notice not later than five days
before the final da for p ent (4j
give pr per n ices does not pay amounts properly due
the o nding ms will attract interest at 5 per cent
Inagement Cc ntractor a right to suspend work (4.3).
fissued n les than 28 days before the Final Certificate,
ing sums du to Works Contractors (4-11).
nn,
Management C ust provide the quantity surveyor with all information

-4,
cessa(ry ng Prime Cost no later than six months after practical

pleti .'The Constr keerio Management Fee may be adjusted in accordance
fl,
'the contract (4-9 an
issues the)Final ertificate not later than two months from occurrence
of the latest of t d in the contract (4.12).
=foit
CDR
The requirement 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
C)-
--r
of issue.
Applications in respect of loss and expense made by a Works Contractor must be
286
JCT MC98
passed to the Architect by the Managemen actor. If liqe Ar

iii,
opinion that the application is valid and m Icond ns s

Contract, the quantity surveyor can be d asce tain
collaboration with the Management Coptrac
The CDM Regulations require the ap int Krr
Principal Contractor. Various othe pa ul

and Safety Plan and the Healt ~ e. ision
fl'
contract (5.18 to 5.21).

Responsibility for complia islatiand servi ces rests with the
0-K73
Management Contractor ( if t geontra

or finds a divergence
between statutory requirements d Con rther drawings etc. he
is to inform the Archi ect, who issue i hin seven days (5.2).
The Management C ntract r-+ mpowere to tak ctioM in any emergency to ensure
this w
fl'
compliance, and su sect t( certain condit be deemed a variation to the

Management Cpntra Works Co li able (5.4).
'ement emnifies the E,Mployer in respect of personal injury

v1°
to pr other an-the-actual corks (6.7 and 6.8). This is to be backed

6.10)
nage nt C ntract is to take out joint names insurance for the
irk of le I 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
apply, insurance of 'the Project' (i.e. work executed and site

ut by the Management Contractor in joint names (i.e. in his
he Emplo or the full reinstatement value of the Project against all
risks. This must be fore any work begins on site.
o apply, the requirement to take out such insurance rests with
yer.
the eve hat to orism cover is withdrawn and is no longer available, the situation
,-+
In
and options open to the Employer are dealt with in clauses 6.4.10 and 6.5.4,
.-T
D-0
introduced by Amendment 4.
,-+
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
JCT MC98
reinstatement etc. in the event of loss due to Specifi

Insurance for the Employer's loss of liquidated
Appendix Part 1).
An Appendix entry will show whether the Joi thePfo cti
from Fire of Construction Sites is to apply (6F plo er and
Management Contractor must comply with if
The Employer is allowed to deterrri rRe the em

Contractor for reasons of default war
Architect, but the notice of deter inatid a matte
In the case of insolvency of the Man emen ending on the

circumstances, determination. matic to p e reinstatement,
or the Employer might elec reem V-5- Agreement') to
allow continuation or novae
The Employer is allowed determine th
Contractor at will (7- course Tapp
Construction Period
The Management -ontra or is determine hi
of default by th m plod (7;, T
Either party c ine the em

neutral cau
ctive rkh% and of the partj
are s ou in d ail (7
ist of defiditions rs.inclu
c e s s or profes i n team l ssured, but subject to restrictions to protect any

rights of the e (ent Contractor and Works Contractors (3.17).
The Ar ct or er t
y on removal of the manager from the Project and the
Management C=sbecause
find a suitable replacement (3 14) subject to approval
by the Architect
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
JCT MC98
Section 8 also deals with relevant issues arisi m t 6 Wor Contr 'sir
the terms of such contracts, nominated sup iers to or ont tors,
Management Contractor under Works ontrac fi al p men and
expense reimbursement to Works Contrcto
imp ant. hey a
First Schedule: Project description: a sh Dfie scope of the

be completed by Employer;
Second Schedule: definition of rime Cost blehe r ent Contractor

relating to Works Contracts; K-si tai an m ontr tor; on-site labour,
materials, goods, plant, st ices fed by ment Contractor;
Third Schedule: services to provi
selected from a list of rno+e- oblig latir
period and after wo starts on bite;
of
yer;
e
o t drawing
fa lities d seres t be ' provided by the Management

plet befo the onstr ction of the Project, and initialled at
P2
l
is signed.
sing Gra ts, Co str ion and Regeneration Act 1996 gives either
iq t to refer a differ hce or dispute arising out of the contract to
r0+
ovide for thi

P icatio
Articl s arbitration as the agreed method for final determination of

ppendix entry shows that this has been deleted in favour of
,-r
proceedi B and 9C).
289
l"'
JCT MC98
If considering using MC98 remember that:
It is intended for use where the Employer has dministrat

.-+
quantity surveyor and other advisers to make pa
f
fl,
has prepared project drawings and ject Spec

drawings, Specifications and bills of wor
vii
fl,
Contractors enter into contracts direct th M acient

is not a lump sum contract, and the s paid by wit
e m
fl,
erto
fl,
e
ork ma me fee.
The management contract is in einth

to or public
fl,
e ve
sectors. The Conditions apply to bo the p uctib a d construction
period and the operative details are
d in ix Pa Appendix Part 2
respectively. The Conditions nclude nt o ion, celeration, partial
possession, performances ecified wor contra sign. There also a
is
Section relating to the Wor Con s rs and resp tive o ations.
When completing the f re requi d re tingtgdeferment of possession;
insurance of the Proje `t; liq atN m e s; acc lerati n, management fee; Joint Fire
Code; and EDI. The ve Sch ules uId a b heck for completeness of entries.
ct ad inist tor'
t
dealing rectly with the Management
,-+
(.O
turn Al
e inv i t inistration of Conditions in the
T re are ne erthel s ome instances when the contract ,-+
0(D
d wit the V rks cuments, and the procedural rules,

nee m iculously observed. The whole process
coord in ion if unnecessarily abortive work is to
fl,
can be voluminous with this type of

,-+
ocume
uite arduo in terms of administration.
fien the p edeces r 98 first appeared it was the first such standard form
ent method seems to have declined in popularity,
fl"
aila e. ce4he4a-th
gi ng i ct agement as developer clients become more
with im ress e use expertise. It is a relatively high risk contract with
r+'
sop ' ticated 'with

impreci s d tim ele ents initially. It depends on goodwill and a high degree
of trust betwee Empl yer, the professional team, and the Management
,-+
fl,
Contractor. 1
290
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
JCT PracticeNote MC11: Managem
JCT Commentaries on the JCT Man
(both written for MC87 but still large
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_ art

1 Invitation to Tender; Sect n2The Sectio Oes
Works Contract/2 (Works ontract o r ditions)
Works Contract/3 (Employ y/Wor Contractor A
They can be used onl e19 Edition CTWnagement Contract, and
although this is lar ly a Matt f or t eme t Contractor and each Works
Contractor, effec e ad inistra t an of 1te-rhain
' anagement Contract often
necessitates refe nce t &in the Work s ontract.
f Agr (Work Contr ct/1 ction 3) contain Recitals and Articles.

ent is bet e Ma ment ontractor and the Works Contractor,
irst Re it onfi t the Mana#ement Contractor has entered into the
.ard Fo of)Man gement Contr t.
to 'numb ed documenYs' which are effectively Contract Documents.

>.O
confli between documents, the Works Contract Conditions are

E4-2
d doc ents (1.4). If bills of quantities form part of the Works

to SMM7 unless stated otherwise (1.10).
1 (in t/1 `Section 3) establishes Works Contractor's obligations.
tract Sum which will be a lump sum, and is VAT exclusive.
Imo-
an be execu d under hand but not as a deed, or as a deed. However,

t Contr t is a deed then the Works Contract should be similarly
vii
Use
The choice of Works Contractorsis a matter for agreement between the Architect and
the Management Contractor, although the agreement is of course between the latter
r=+
,-r
rip
and the selected Works Contractor.

292
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
i
respect of which a direction for payment Arc ect. S

r-«
ed
nominated by the Architect. Administr ion D-f th orks C tract m i
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
Synopsis
(clause numbers refer to Condit(
1 Intentions
vi'
The Works Contractor is oblig nd c Works in accordance

with the Works Contr is, claus fers dards, and obligations
relating to design a performa ren to a design obligation is
fl,
-+,
a reminder of the rr port Cntof Work hich is a warranty to the

Employer relating to esig
mnify t Ma ger'nt Contractor for liability to the
r+'
for N, to in
e even efaul perf rman e under the Works Contract (1.8).
eduliov carry g out i will have been established in Works

ion 2. Starti I will to a large extent on general progress of the
t, and nage nt rac r is obliged to keep the Works Contractor
ciently infor fore n mmence is given (2.1).
e Wor Co ractd ive writ n notice to the Management Contractor in the
Qom)
of del and al ;o state t"ses.

Subject to receipt of notice, particulars and
y, the question of granting an extension rests with the
``G
fl,
vii
st1 to of dc
eme Contr tor. he must first notify the Architect, who has a right
,..'.
4A6-
,-+
Seril_f e13rosed action (2.2 to 2.10).
Works Coh fail to complete on time, the Management Contractor may

4-'
r
be ment from the Works Contractor for any direct loss and
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).
3 Control
The Management Contractor is obliged to issue further instructions, directions,
fl,
--o
drawings, Schedules as necessary for carrying out and completing work under the
O_.
fl,
Works Contract (3.1).
293
JCT MC98 WORKS
Relevant instructions issued by the Architect under t e

be passed down, and the Management Contrac
directions to the Works Contractor (3.3 and 3.4),
The Works Contractor may make reasonable to epreli ary rd i o
issued under the Management Contract to ac elera or alter is seq nce
The Architect must take this into account, t if the ri ice ands, the V
Contractor must comply. However, he ca)Zexp t trec
ei r)a ent for this/.
4 Money
fo%96
.2)
Statutory obligations concerning paym is ap

'in
Housing Grants, Construction and ion A (Par
The Works Contractor is paid by t as irected by the

Architect in Interim Certificate These re s o retention. The
valuation includes for work Os a materials properly
on site, and it may also inc 'off-site ateria (ods (4.22).
Retention in respect of Wor ttracts is redu

Works Contract (not the,f eat under
reached (4.23).
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 ire n appoin ent of a Planning Supervisor and a
Principal s will all be covered in the main contract MC98.
Stat are also like to implicate Works Contractors will include
th se relatM 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
JCT MC98 WORKS
The Management Contractor has the right t ine t e to ent oft

Contractor for reasons of default. Determi n nsolve cy is a om
The Works Contractor has the right to own e ploy nt r r
default by the Management Contrac or (7-7).
Rights and obligations following term
8 Miscellaneous
The provisions for nominate iers w tT*e f

covered by a Prime Cost o sum uded in
Nomination is a matter for :1).
9 Disputes
Statute requires an djudicati o provisia n in a ion contracts. Both parties

have the right to e ter a 4ferenc rising out of the contract to
adjudication. The c16 ision ill b binding, at least until a final
determination df-,the sput i proceedings (Article 3 and 9A).
rbitr thod for final resolution of disputes
o ceedings (Article 9B and 9C).
If coKsideri`
It/s inte sole` v fo
Ten ng for the Magement Contractor, but the invitation might need
f
to ch mpatibility with the Management Contract Conditions. Similarly
the n de r Nketween the Management Contractor and Works Contractor.
SeleWai heW orks ontractors is by agreement between the Management
ntractor an ct administrator. The latter has a particular role in
certifying ue0'the Works Contractors, applications for loss and expense,
ractical completion.
s 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
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 GCM
Construction Man
C/CM
Background
The fundamental distinction etween m d construction
.-+
management lies in the de ee whtheienf direct contractual
relationship with the Contr tors y out work p With management
contracting this will be ac hi d tho Mar cent tractor, and there will
-5.
also be an independent team rofe`s ind architect and quantity

surveyor with overallsponsi desig administration.
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
fl,
t The lient als
. as ig nt contribution to make, and is
rt e age nt of 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
on peri t administration.
produced raft d mentation for construction management. This
cons uent odies f the JCT, but was then overtaken by the
txtha rt, d the Housing Grants, Construction and
rt II). The raft was developed to take account of the full
'.,
96
i, and th cons `ruction management documentation eventually
L.0
cum is of an Agreement (C/CM) between the Client and the

onstruction Ma a Trade Contract (TC/C) between the Client and each of
+'j
the Trade Ceiatract The is also an Invitation to Tender, a Tender document, and
rad Contractor to a purchaser or tenant, and funding organisation
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
JCT GCM
Project Cost Plan. The other Recitals refer to the fact t yet the f CD egulat I
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
There are five Articles, which refer briefly to ations of tKe Constru
Manager and the Client; the identity of t e Pla incSupervior an
Contractor; and the methods for resolving d utes.
The Conditions are relatively short (just tion he
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 c 're the Schedules (taking up 35

pages in total). The act as refer, nce p, is for much of what is carried in the
Conditions,
ption
suran
the
an
je
Inde nities,
nits of Reimbu able Cc
urth, Mo I Servers to b
cction nnel;
Site Facilities and Se be provided by the Construction Manager;
ht Team;
Ninth, Cost Planning-arTd-Control;
Tenth, Adjudication;
Eleventh, Arbitration.
298
JCT C/CM
Some of the Schedules contain essential ailed iy(formatk

entries to be made. They amplify many of t ZDrovisfcins find
are at the very heart of the agreement.
Perhaps surprisingly for a form more

under hand or as a deed.
The nature of construction manageme r rem e of interest
only for major building works un e rienc Although the
Construction Manager is large responsi th nag coordination of
Trade Contractors, this still leave the ctrent w con3 cable
on a day-to-day basis for th of th e-constru ti6Ran
of the Project.
Any role for archit `_ts will b e s rn

might be appointe under
h ers
nsultanc
bgree
Itant Team to which they
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
h Sche art he Cli nt is to name the Team Leader, and to
he sc work o mer ber. A copy of the Client's Initial Brief
ient's el/ma rr Ian will be
veloped into the Project Brief and the
FAt Planlien must a fy the 'Client's Representative' and the
sure nsultation between Construction Manager and
1 m Lea r is 1,0 ut commendable detail in Part C with clauses
d. Th volve ent of the Consultant Team during the Pre-
ction Perio s, which should be covered in any consultancy
d in R rt D of the Eighth Schedule.
are not involved directly in contract administration)
Subject to thin contrary the work will be carried out in phases (First Recital).
Possessior-and ontr of the site is given to the Construction Manager, but this will
I
ssarily be e lusive to the Construction Manager (1.5).
for the Client to use or occupy the site or the Project before
(_l
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
JCT C/CM
The Construction Manager must provide the services d Fou Sch uTF,Part
A (Pre-Construction) and Part B (Construction) d side fa ities xth
Schedule).
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
The Client will appoint Tr e Con trac ors,

Consultant Team. Appointm nts wil
ing in to the views of the
be ma after terview, an analysis of the
tenders, and a written repor by th ConstructiouxP er (F, urth Schedule Part A).
Contract documents c m se Ti e co leted R itals, rtic es, Conditions, Schedules

and Appendix to the g ree m nt M). D me s refE red to include the Initial Brief,
Preliminary Cost Pla , and velo ect Brie, Project rawings, Project Programme,
Project Specifica n, an Pro1o Eighth Sc edule Part D item 1.2).
Further drawings, ifications, d Mails a
to explain or roject i ormat
2 Time
re is no s tion date with this agreement as found with traditional

rms, e constr iod runs from the date of commencement of work on
by teade Con the scene, and ends with the date of issue of the
m Project Completio to (1.3).
There vvi Pro ramme prepared by the Construction Manager after
rolec
consultation with 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).
The Construction Manager will, before Trade Contract tenders are invited, prepare a
detailed week by week programme (Fourth Schedule item 5.2).
300
JCT GCM
During construction the Construction Manage, e th lent ma

may cause delay in completing the Project Zh'esd ite 8), a
((DD
all matters related to progress after consul ons tant am ur1

item 9-11).
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 Cori
certify practical completion in re ect ract 2):
After completion of the ast ont the Cd on Manager with

agreement by the Consulta Team will u he Int im Project Completion
(CD
Certificate and the Defects Liabii itv Perid ally s from the day named
in the Interim Projec tificat ce (2.2).
When defects in w rk carried4t under` acts have been made good,

the Construction M nage will issue a Ce aking Good defects in respect
of the Project (23).
nstruc advis the` Client that all obligations under the
acts h (filled; Client ill issue a Final Project Completion
(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).
nager cani'r4 sub-contract his obligations without the Client's

ac,
e Trade Contractors, after receiving recommendations from

onstructi d where relevant the Consultant Team Members (3.6.1).
The Tradef_ ntrac wiMe on the current JCT Trade Contract (TC/C) unamended,
ttherwis ed with the Client (3.6.2).
t 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
JCT C/CM
The Construction Manager will arrange and chair re

which the Client and the Consultant Team will be i e is ako r6oonsib for
the minutes (9.5).
4 Money
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
(D<
Payment will be due in part on signi

intervals to be stated in the Appendi
.-t
In the construction period, the Con ructio

accounts which show sums due in reject
Fee (as shown in the Seventh Sc reimb
er
str
mit to
cost
oent monthly
Perio Management
ned in the Third
i
Schedule); and any other su sdue to t struct age 5.3).
The usual five days' notices re re, from the ient
rap
payment is 17 days from the ate o issue of the Comt on
ti r cent er b
til pa men made (5.5).
V'1
r susp is
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).

ere the C nstruc er is the Principal Contractor he must ensure that the
ith the Regulations (2.8),
e the Construction s appointed Planning Supervisor he must ensure
a,-
ce with lh-eCAM
T'S
ulalions, and in particular Regulations 14 and 15 (2.9).

...
R
---_.
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
rere
bodies, and to manage implementation of their work (4.2).

The Construction Manager will monitor Trade Contractors' compliance with statutory
requirements and verify that all necessary approvals have been obtained (4.3).
302
JCT C/CM
Insurance and indemnities are dealt with
r+'
i ditiohs'bbv a v
to the Second Schedule.
--I
The Construction Manager is to ind mni inst daims re

personal injury and death, and agai t damag
than the Project (Second Schedule item 3).
The Construction Manager mus rah in re
injury or damage to property f the sum e
item 17.2).
nclftr agree
er ma requfired to
d in the A pendi -5).
Insurance of the Pro ct wi be taken out I clieri under a joint names policy for
all risks cover, the II rei tatemen valu of oject and replacement value of
site facilities, us a ount tered i the ppendix for professional fees. Where
mpris wo to exi s ructui s, cover must include the contents
,-+
:-+
the Project
owned by he Cli will be only in espect of Specified Perils (Second
Schedule tern 1);
ination re uction anager's engagement.

rmina on ay e Client i the event of the Construction Manager's
Ivency, r f ilure o exerc egree of skill, care and diligence required under
eement (7.2)
The Client rminate the engagement of the Construction Manager at will
e Constructio ay terminate his own engagement in the event of the

client's ins ncy; T o pay amounts properly due; or if work is suspended for
riod f six months (7.4).
The consequences 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 E
Appendix shows that clause 8.3 (a

Where arbitration applies, app riate letion in t Apd -/Will indicate the
appointors of an arbitrator. e condu o e arbi do nd fects of the award
are covered in the Eleventh
A footnote to Section 8 of khe Cdknditions is ayeTir er tha disputes may also be

resolved by the procesf m
304
JCT 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 each the 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 S
Scottish version.
The agreement is one versi n on

i and i d contract in a standard
construction manag ment f docume The nditions apply to both the pre-
.
construction and con tructi periods, erati 'e details are entered in a single
Appendix. Theiditi sin We for ctorni phases and partial possession.
When comp ting t ar requ ed relating to preparing the Project

decisi
Cost Plan; suran ding profession indemnity insurance; limitation of
liability; yame dard Tra e Contracts; reimbursable costs; and
payments he Co tructi A Man 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 s sign ons ant, reme er that the Construction Manager may also
a se the lie t in reparin the P ject Brief, make recommendations and review
fl,
desig nd o er dr wings. A c working relationship with the Consultant Team
entative, then remember that this could involve carrying out

WLt+f-e functio o the Client, acting as agent unless the Agreement
fl,
!
specifically states h
is an rram ement which will appeal only to an experienced client probably

u 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
O_<
`ver a very sophisticated operation.
305
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 ions (1
Practice Note No 28: Mediation (199
Series 2 JCT Practice Notes (yellow covers):

Practice Note 1: Construction Ind st ry Sch
Practice Note 2: Adjudication (incl d es to of agreements)
Practice Note 3: Insurance, Terroris Cove
Practice Note 4: Partnering in des xt of n binding arter)
Practice Note 5: Deciding/6n the I iate 1 `Form of ntrac
Practice Note 6: Main ntract T B ering eludes m' rms)
tion Ma ation
306
JCT TQC
Trade Contract TC/

Background
This is the dedicated contract d twee
Contractor (3.6.2 of C/CM Agr èmen H ev the
Special Trade Contract may be u d in lied by em or a
be required by the Client.
ascri f applicable the Client's

Representative), then eference e prec i 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 orb
e Ita Team Leader, but consultants
need to have cable marking owle d understanding of the Trade
re late an
Contract in or, er to a ucptioj ntici ate t degree of support and cooperation
on which t Cons pager ions ay depend.
form and structure. The Agreement, which
LA=
ct is re tivel conv n
dundr han to enable compatibility with C/CM, includes
rd seven A
O=-
st Recital refers to the use of the standard
fl-
he
d copi of which are to be annexed to the Articles.
nt Team Lea er is given in the Tender TC/T Part 1.
pa s (compared with 19 for the C/CM Agreement),
ler 80 p
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 wl fo wed by Annexes in respect of EDI, Advance Payment Bond,
>
t pa yment for off-site materials, and Formula Adjustment.

Use
Except for 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
0-0
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.
307
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 e& C
,Tra'de ,,
Schedule of Rates on which the Contra
The Trade Contract documents Arti s,. Conditi

completed Schedules. In the event othirlq sall over
printed text (1.1 1).
Further necessary drawing
ain the- ra e Contr
Drawings, details etc. must b retu r ed to the Co.
Performance Specified ilt' information required (1.22).

2 Time
A commencem t date eriod are
ust work i accor ce with the progress of the Project (2.1)

ite will b
evise ent of delay by a Relevant Event (2.3).
The Con uctio"ar ager llnay iss instrVctions to postpone any work (2.1).
may Trade Contractor to submit a written
otation fob acc he work (2.6).
ilure(by complete to time may result in payment of direct

expense to e 11). There will be a limit to financial liability if a
entered in t e App ndi 1 2).
orks is 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
JCT TGC
3 Control
The Trade Contractor must keep a person- yo site
* Instructions are issued by the ConstructKn ,t b;ding

w
1
The Construction Manager is resp risible pro

information (3.6).
Access to the Works for the Clie
person is provided for. Presuma y this co
The Construction Manage issue Var
Contractor may wish to su uotdt to cov
disruption factors, and nee 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 in ract (Ar le hen valuation of variations can
m appli
be by Alterna Ave ractor's rice tatement, or Alternative B-valuation
Tr e Co
made by th onstr ction anag sin the v luation rules (4.4). Where Article 2.2
applies, th valuati of rk mprised in the orks is by remeasurement based on
rates or ices f ured or a Sched le of daywork prices (4.7).
.
actor may b, entitl reimbursement of direct loss and expense due

:22).
r make writte application to the Construction Manager for

ervals tered V
the Appendix, or at agreed stages. Whether or
de the st ction Manager, not later than 14 days after the
o rst t issue an Interim Payment Certificate signed jointly by the
9ltant der and the Construction Manager (4-11).
ai n the ient apply, and final date for payment is 14 days from the
e of issue of erti 'cate. Failure to pay may result in payment of 5 per cent
interest ovex base r e, a the right of the Trade Contractor to suspend work (4 11).
rmal be at 5 per cent, and the Client acts in fiduciary as trustee but
bligation invest. Alternatively, if so stated in the Appendix, a Trade
+-C
t.
Bond ay be used in lieu of retention (4.15).
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
JCT TGC
Completion Certificate and a Final Statement. The yes b the cK-,n- rapp-I y,
and the final date for payment is 28 days from the d e of the al Statement
(419).
The Trade Contractor is to comply with statut `ry requi
not already allowed for in the Trade Contract cu ments.
be added to the Contract Sum.
The Construction Manager will issue hstruction

statutory requirements, or emergenc
The Trade Contractor is to provide ontr with ne
concerning the Health and Safety nnir`ta'S ervis
information for the Health and Safety
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 plyperty,Rther th orkZ provided that this is due
to the negligence of e Tra Co tractor -1 to V3). e Trade Contractor must take
out insurance cov rnotI ss e figur ntered in the Appendix. This is the
contractual limit not ne essa t
of liability ( 4).
iect anti of th covered under Client and Construction
M), and t is ensure that Trade Contractors are to
name icies an a waiver of subrogation rights (6.9).
ploymei Of the Trade Contractor.
urination nay Client on the insolvency of the Trade Contractor, or in the

ult for r ed (7.2).
seq'ue+°rc'es of dete in the Client are set out in the contract (7.6).
de Contras-t may ine his own employment if the Client defaults or
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).
m
310
JCT TGC
The contract provisions still leave other right
8 Miscellaneous
The contract is to be construed in accor,

There are supplemental provisions fo
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
(Rig
td pplier' namec,Vin the Trade
A
"I).
1999 are ex cluded
9 Disputes
Article 6 confirms We right to seek adibdication in the event of a

difference or dispu
Nominators for an djudi itor can beac ree nd Oown by appropriate deletions
made in the A nd
The conduc of effe s of jud icator's decision are covered (9A).

Final det minati n wiration (9B) o by legal proceedings (9C) depending
on an A
This
r use ' h the/atCT Client and Construction Manager Agreement

used wit 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 Note 1: Construction Indu
Practice Note 2: Adjudication (incl
Practice Note 3: Insurance, Terrori
Practice Note 6: Main Contract Ten
312
Partnering
arrangements
Partnering agreements

1CT Framework Agreement (F
1CT Framework Agreement No
1CT Partnering Charter (N ndi
((t
The Institution of Civil Engine

NEC3 Partnering Op o-r
The Association of a onsult aA B rchitects

rip
ACA Standard For of Cbntract for Proae ng PPC2000
'Partnering is neit ra rtic% r proc ement ap oach, or is if a particular type of contract; it is about
culture and the ay in w Itch tH ac articipis view and m age the project' (KT Note on Partnering).
Partnering as, n ethos/which p to avoid adversarial conflict was the subject of a number of
studies an publicati ns in e 19 s, a endorsed in b th the Latham and Egan Reports.
Arrangemen may to form o project pa pplicable to a single project, or strategic
partneringhic ay embrace a umber projects over time.
Proje Team Pa enn is abo u orkin togeth to achieve the client's objectives for a project by
ad ting a manage nt roach hich effis ent coordinated working is measured against
p rforrna n e i ca tors nd to ets. There mu first be some formalised expression of agreement
ween t art ers, an his is ually achj ved by using either a free-standing non-binding charter
fo a le p r ; a bin, ing agreem tf single project or strategic partnering, perhaps through the
r ing of additio al clauses in a s dard contract; or by using a form of contract specially
dra for Iti party rtnering.
Ltd ICE, a1m1 ACA h e each taken different approaches to partnering. The GC/Works suite
ncl `s a frame' kN reemen pr use with consultants' appointments only (GC /Works/5 General
Conditions for the A ointment f Consultants: Framework Agreement (1999)).
313
M
_
314
i6£
Partnering arrangements: partnering agreements 13
JCT FA and FAIN
JCT Framework A
JCT Framework
Binding (FNN)
Background
In 2001 the JCT published a No "s first publication to
address the increased inter t in p was a model charter,
fl,
extremely simple and onl ages e on a single project to
supplement any of t e main dard
In 2005 the JCT pu lished ew Fram pemnts, in addition to the model

charter, one bindin and ne non- bindi t ith a guide on their use. These
are longer and phis cated do ume s 1 e model charter. They take the
same approa a ne ode harter tha they are intended for use alongside
another co tract. he m el ch er as b en republished in a 2005 edition,
downloa ble fr bsite. Together, these offer flexible options for those
wishing intro artne i-Rioles in their contractual arrangements.
non-bindiri on is a formal document by which the Client

fl,
d the ice vide gree to wor together in a collaborative and open manner,
Pr'
achie ag ed o jectiv . It incl des provisions regarding framework objectives,

isatio stru c t re and d isi n making, collaborative working, the supply chain,
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
fl,
ormance i ica-tors.
The bindia -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
k agreem t is different, but otherwise all clauses are identically worded.
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 Partnering arrangements: partnering agreements
JCT FA and FA/N
agreements between the Employer and the Service ovider bets n f&
client and contractor, or contractor and sub-contr tor). T, sew Lce vider
endeavour to see that the members of its supply chain iples
collaborative working.
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 en shal ny way ha
legal or contractual effect or bearing apon he r on, tatio
enforceability of any of the Underlyin Contract Th . v
addition states that neither party sh t merle
eo
the Framework Agreement.
The Latham Report called for contract onditi h inbia sp ific duty for all
parties to deal fairly, and that of to k with a general
,-+
presumption to achieve 'w, -win' rath than apportion

blame. Unlike some standar forms,, for parties
ressly call
to act with mutual coopera ion an deal fairly, altho ay well be implied.
But the climate is ch creasin placed on achieving

improved, more eff} ient' teg ra t m working through better
management of th supply, rocess:
Features (claus
Underlying contracts; art and end gate, a erformance indicators are to be set out
in framewor In the indin versa the name of the adjudicator and
arbitrator t (n ot,t ere is a o provision for mediation).
'greater,
o..
formance nd icat e identified in the Particulars, and the Guide usefully

rs published by the DTI Best Practice Programme.
r
arency of manag -
each party is to
'vi
angements is emphasised
he othevvft an rganisation and management diagram of its internal
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 and FA/N
The parties must endeavour to agree a com
-
Identification of risks (15) prior to enterin into a y un er g c tract, 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 pir
Employer and service provider t oti e t rov er's hare of/{he benefits if
,-r
implemented (there is no prior
The parties are to endeavour tqa jree cosec. o y 0% es b *re implementation
(19).
Both parties are requiredtop raptly am e oTeGuide. atter which may affect
time quality cost (2Msustain t a tea ap blem solving (21).
Health and safety ility E an ortant features of the
Agreements, with f ation inc ed i
Related matt
Documents
317
1 3 Partnering arrangements: partnering agreements
X12
N EC3 Partnering Optio

Background
The Third Edition Engineering and tr req
Employer and the Contractor, to act as st ed i nt rdc t an
trust and cooperation. This main con Tact also
plor
ts an
matters likely to result in increased pri ed ire
of the Works in use.
This partnering option, which touch others the acting parties,

0-O
0)-O
was published as a First Edition 1. It sed y NEC contract

except the Adjudicator's Co tract. As itle
fie im es, is n t afree-standing
document, but is an option Which m e incorpb. I io th e NEC contracts for
any Team Members involved with Project, whether Con ctor, sub-contractors,
consultants or sub-consultant If th Option is D or ed, then the parties to
these contracts will ha al re onsibili sit 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 C contracts, and does not result
in a multi-pa itra
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
e Wor s. The Sc le of Partners will include identity and
ibutio artners j oining and leaving dates, and details of Key Performance
icators, t gets, Neasure ent arrangements and any incentive payments. The
fl,
emb s will give identity of partners, and joining and

s. Both Sch b swill obably need revising from time to time.
short clauses set out under four headings, and the
dance notes on these clauses.
Use
The Option 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
_.1
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
318
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.
Partners are to cooperate o e mafion, aid-givi

matters likely to affect of er par ay give
opinion and if so it must be ken fulTy; ann'tkoNectiv
A Core Group is sele d by t act on behalf of partners.

The Core Group is le by the Clie senta on not specifically defined
in the Option or th contr
le for pr arin
nerin perati
forma 'on is d ed as>4a conta
under the
work gethe. 'as stNted, i-nhe Partnering Information in a spirit of
use com on in r tion systems as set out in that Information.
amo statedi the Schedule of Partners if the target stated
icator is im roved upon or achieved.
319
w
X12
This contract?
If considering using Option X12 remember that:
It is intended onlyfor use with any NEC contrac xc e9 I the Ndjudic or's C B ntit)
it brings more than the two main contractin mt a partn B ing rej6 ionstip,
but it does not create a multi-party contract.
The responsibilities for Team Members ingbdeed u ter tion 12 ill be in addition
to the contractual responsibilities whic ioht ave.
There will be additional Contract Data, a ted
The Option is a neat way of br, 0 ps, and the

partnering clauses set out the action
Related matters
Documents
NEC3 Partnering Option: Optkon X1
First Edition (June 2001)
References
Construction Industry ouncil, wide t M Partnering
w
320
PPC2000
The Association of Consultant Arc

r_+
ACA Standard For

Project Partnerin
Background
Partnering agreements and ventional ctht`k lementary, but
tween t fun n o a ontr t and a partnering
r+.
there are essential difference
,=+
fl,
arrangement. The former cont al oblig trictly between the
_-r.
contracting parties, and ide ertain which, in the event of

dispute, can be tested in the co ing &,th tract and adherence to
sound administrati v proce-c es re es Th latter seeks to establish
collaborative workin between key I ers c d o putting the project first,
invokes trust and f ess, an?+operates a management tool. Obviously
there can be difficul 1sint ding to mares nciples to contract Conditions.
Flying in the ace ention6 wis m, PPC2000 was produced by the

Association f Cons 'ant rchite and afted by David Mosey of Trowers &
Hamlins, S elicitors. his br attempt to bri g together partnering arrangements,
UO=
fl,
consulta appoi tme t ter and buildin ontract into one document covering
the whole cess o eliveri g the t is the first standard form of contract for
proje l , it is th first Ittf- arty building contract, and it is an architect-
led ime a mergi a partnering agreement and a building
c e par nering rocess.
ntial d men , with a closely interlocking set of terms, which

mediately y to understand. Realistically the ACA advises that
it s ith the benefit of experienced legal and or other professional
advi on its station.
it was it John Egan in September 2000, it has received the
recommendation busing Forum, the Movement for Innovation, the Local
Giovernmeti &sk Fd ce, and the Construction Best Practice Programme. It has also
LA.
y th Construction Industry Council and the Housing Corporation.
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 CIM
to the design development process as described i 0 8 of/The Ters
noted. Details are entered on other matters usually d in Appe dix or C tract
Data with conventional contracts, but here als, matters ch ti
and insurance cover to be carried out by eac of Partn i ng ea
The Partnering Terms are set out under 2 hea%ing he guy
but some terminology is peculiar to th ico y b
there is a full set of definitions. There e five
be summarised as follows:
Aes, con
r
Appendix 1: Definitions
Appendix 2: Form of Joining Agreemeri With a inevitably there
will be changes to the Partner ime, a hanism for bringing
in new joining parties who ill be bou e alre ed obligations)
Appendix 3:
Part 1. Form of Pre-Pimsess n Ag ement ( is is' e an agreement to cover
preliminary or ena ing to be ndertak n by he Constructor)
Part 2. Form of C mmen reem nfir ation by the Partnering Team
that the Projectis read commencem t of work on site)
Appendix 4:
Part 1. Ins rant iect an
Part 2. T ird Part nsura
Part 3. rofes r Public Lia
Part 4. sura
art 1.Co ciliat

Part
Rart 3-4hitration (i
0 is uni aditional boundaries. It is a combination of project

r_+
PCC2 cro
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
approach and mless d very of the Project, but it calls for a high degree of
commitment on the of all concerned.
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
PPC2000
Partnering depends on an effective managem ht stru ure, a ntive dmi do ,
and good communications. The Partnerin earn the to 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
shtract 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.
A Core Group is to be established ti the rt rin am mb%
to meet regularly to review an timul ss he P e,
Members must comply with as s rea b e r Grou
The Client's Representative as con le au t He she may call, organise,

.
attend and minute meetings r an 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. -
The Partnering 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
in Appen N,3; the p process, partnering relationships, and
partneri acts; atten Fng rerfrl meetings of the Core Group and Partnering
Tea Iving ms and resolution of disputes. A tall order!
s arelisted a being:
tni
mmen
nen
Consultant's Ser
th sa s;
I
any Joini emei

the Price ramework;
the Key PerEe Indicators;
any other Partnering Documents.
Unless there is anything to the contrary, this is the hierarchy of documents which
prevail in the event of discrepancy or dispute.
323
PPC2000
The ACA advises that at the time of signing the Pro erin
team should have agreed the following:
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

a lump sum contract. The Client is respo 'sible fob-r-- en then
amounts properly due under the Cons Cant Pavme rR- d fo
Constructor of agreed amounts pro in r ect o Pre-Fo6 sessi6
activities, and an Agreed Maxi Icula by refe
Framework and other relevant Part ring D ts.
Synopsis of clauses
(Despite the fact that thi is a uni
comparisons the same he dings are used as the
contract forms earlier in thi ook
1 Intentions
Roles, expertise ark respo 'sibiliti descry in the Project Brief and Consultant's
Services Schedu s (Pa erin t) and Tea Members work in a spirit of
trust, fairness an utua n for th t of the Project (1.3).
Partnering ich appl me ber of the Partnering Team including
Client and t out UQOr six h dings in clause 4.1 and cover design
stages t the Project vyi thin the agreed time, price and quality.
fl,
fl,
Also in hasi novation, improved efficiency, cost-

effectivene io of waste, and measurable continuous
fl,
fl,
im o Key Performance Indicator targets (4.1).

bjectives ed by Partnering Targets under 10 headings, and each
fl,
rtner
em r o t,We Parr ndertakes to pursue these for the benefit of the
iect and for the mut 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 is in descending order as listed in
clause 2.6.
324
PPC2000
Partnering Team Members work to achieve tr and pera ' e e

information, and integrate activities as a co e te(3.1 .
Communications between Team iting

otherwise agreed (3.2).
Team Members are to establish a
Partnering Agreement (3.3).
Decisions of the Core Group are y con
comply with authorised decisio (3.6).
Partnering Team Members o arly v ing systeNaid e
others as soon as he or sh ttersrsely a ctlhg the project (3-7).
Meetings of the Partnerin are nt's Representative as
scheduled or request no-K ally b I Client's Representative.
e
Only matters on the agenda are dealt 0, an are by consensus (3.8).
mber are to devel ents for secondments, office

access to co sand databases etc. as may
flea m er joi t initiatives which might benefit the

such i itiat sidered by t e Core Group (24.1).
m Members s I keep-records as required by the Partnering Documents

tion by of the Partnering Team (3-11).
ive is t"ct in ac ordance with the Partnering Terms and other
acilitate a integrated design, supply, and construction
tative is authorised to represent the client in all matters, except

ershi re Group, and always subject to any restrictions stated in the
ct Paztneri ent (5.2).
TYre' Client's Repr ay issue empowered instructions to the Constructor (5.3).
esen tive is to call, organise, attend and minute meeti ngs of the Core
Group an 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
engineering, value management 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
w
PPC2000
Adviser on a range of matters, including those liste
2 Time
The Partnering Timetable is a Partnering Docurperi he actiJ

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 Comme Agreement,

and entries will show the date o osses d datercorn etion
r `
(6.2). The
Constructor will submit the propose timeta presentative for
review by the Core Group a the Cli
Where the Project is to be omple ecl y Sectio
to each Section and the Pr
Possession of the site Con ructor rN
programming may ke .s adaccou nyrrang
interrupted posses on int
sentati ins eleration,
roject imetable
deavour
A ppro to tension f the date for completion may be given for any one of 16
r asons list d ineu ue to matters beyond the Constructor's control and
rn
%ral
i clud nq 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
and make a fair a a able extension of time. The Client or the Constructor has
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
PPC2000
The Constructor will give the Client's Represe ve wor

he considers that Project Completion has b ved. The Cli
is invited to inspect and test as appropriat
.
The Client's Representative, together h `late P
Members, shall inspect and test, and ithin t, S foll

of this, the Client's Representative sha ssue i a
either confirming that Project Com tion
the Project which the Construct mus
Following completion of the Proj the Canstr r m'u rec fN nydefects, excessive
`.-
shrinkages or other faults in olec" hicFi are\d to materials, goods,
equipment or workmanshi not ir1 cco ance ng Documents. The
a"'
Defects Liability Period is to ntere Proj Par_tneri g Agreement (21.4).
ifiative _bra can

efects hav ctifie
None of the ri PartlyerinAgreement may be assigned or

liga
liqlns of th
sub-contract tt e pno onsen of al the other Partnering Team Members
(25.2).
Specialist and P ferr d Spi ialists,Tay be
0-0
Construct resp Bible f, r the,Der

y the Cli
nstruc,V are gj en by the Client's Representative, and in

ds of com unication for the Partnering Team (3.2).
ire for inspection or testing of any part of the

tion at no cost to the Client of any designs, works, services,
mater, uipment that are defective or otherwise not in accordance with
5(5-3).
Constructor ections to an instruction for specific reasons, within two
working d y f iss of V e 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
>o+
by the Constructor (5.5).
Any Partnering Team Member may propose a Change to the Client, and proposed
--0
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
PPC2000
The Constructor within 10 working days will then sub e Client a Comtr
Change Submission setting out the likely effects in
Within five working days from the Constructor th6-i
U57
missi ,
Representative will either instruct the Constru rs(ubiett to reserv
`3.
of any aspects until later) or withdraw the C
The Constructor and specialists are to an sup
equipment of the types and standards s e nen
The Constructor is responsible for sec pity of the ct aNthe s

Ownership of materials, goods a tO the`Cl-t w
Q!°v
ent s
incorporated into the Project, or stru eceives
Such unfixed materials must not be om 0 e sit& rrru t be
fl,
and clearly marked as owned
Partnering Team Members 're to imple uality

in the Project Brief, Project Propo yice Schedules (16.3).
l/,
nd Consu
From the date of the Co men ement A completion date, the

Constructor is respon ana all ris
site, unless otherwi
4 Money
The Constructor obepladin ac drdance 01i e Partnering Terms and the Price
Framework (P nering Age emen e amounts for pre-possession activities
are as ente f Pre- sse ion Ad ement and the Client undertakes to
pay thes
The Ag will b evelo ed by reference to the Price Framework

and other uments ' is to be as entered in the Form of
Co en I. This is the sum payable by the Client to the Constructor,
rease ses in accordance with the Partnering Terms.
If the link payment to performance targets stated in the Key

Performance Ind when the level of achievement of the Constructor or
each consulta rable, the Client's Representative will determine the
consequential ad 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
PPC200O
Applications for payment by the constructor ach co ultar

Client at the intervals stated in the Project Bri hee fea
.
Payment can also be related to payment ac ity sc dul

in the Price Framework. Applications mu ied b detail
Project Brief, and such further infoy e Clie 's Red
reasonably require (20-2).
The Client's Representative will iss ati with eceipt of the
Constructor's application, specif, ing the m unt d to be made
and the basis of calculation all accor anc
i t ousi ts, Construction
and Regeneration Act 1996. to fo me by lien s 15 working days
from date of issue of valua rkin s from r of VAT invoice from
the Constructor whichever
Applications for paym to a notice issued
by the Client, speci ing the p opos made, and the basis of
calculation all in acc rdanc *44 the Hou struction and Regeneration
Act 1996. Final date for p ment by the orking days from the date of
r 10 orking a eipt of VAT invoice from the
to r ('9,4).
hholdi ction 6v-the Clie t must be made not later than two
for payme (20.6).
nt by`fhe Clie, t will result in interest at the percentage specified in the
Agreem )a may give rise to a right by a consultant or
pend rmanc until payment is received in full (20-17).
pllowing oject Completion (or as stated in the Price
Fr 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
amoun retention in the Price Framework (2014).
in 20 days of issue of that account the Client's Representative shall
1tive
issue a valuation
rese
working
fd ted amount, or 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).
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
PPC2OO0
If agreement on the Final Account is not reached w, work' day r e

date of issue either the Client or the Constructor m medies fo esoly the
dispute as set out in clause 27 (2016).
Partnering Team Members must comply w all la
force in the country stated in the Partnering ree Itent tt.
in the country in which the site is loca II st
requirements (25.4).
he )aL rmoses
v()
The Constructor will act as Princioa ntra r for

Regulations, and the Planning Su A be fft erson aamed i
Partnering Agreement (7.1)

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 ill an care to ensure that all
individuals for whom to t ring Contract, and each
Member will be liab to ers 1 r any loss, damage, injury or
death caused by e ployee, eir contW7-4).
6 Insurance
Insurance of the the sit including structures on it, will be the

fl,
vii
responsibilit stru cto or thi t as shown in the Commencement

Agreeme of a with waivers of subrogation (19.1).
Where s ment Agre ment, the Constructor is to take out
O'^
insuran other than the Project, not caused by

default of t
e risks-to e insure are those set out in Appendix 4 Part 1.

fl-
h Nawl'ering Tea to take out and maintain third party liability

nce for the amou d in the Project Partnering Agreement and 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
Further insurance as required by entries in the Commencement Agreement can
+`'
vin
include environmental risk insurance (19.5), latent defects insurance (19.6), and whole
project insurance (19.7).
330
PPC2000
The Client may terminate the appointment òf all P rtne ng

O,-+ am embers
longer wishes to proceed with the Project e er bec au
of fai ire to a ieve
conditions to a start on site as set ou clabs 14.1 or f r any r
foreseeable by the client prior to to of -Ne Com enc e n t

:!'
Procedures for giving notice and the nsequen arbset out26-1

The Client (or Constructor as t he ap
Partnering Team Member for aterial b? f tPartn wing orb
The appointment of a Partn be uiII

pt oZ`nsolvent
The Client may terminate the point the`rtruct r for specified defaults
or breaches of the P edu `rgiving notice and the
consequential actio are set o Partri rm 26.4).
A Partnering Team Mem nfay termina appointment in the event of
specified defaults or each of the Par nts by the Client. Procedures for
giving notice a nseq ntial act ns t in the Partnering Terms (26.5).
If after the to of ssessinn es impos ible to proceed with or complete the
it be
Project du to sp cifie the Constru for must give notice to the Client's
s,
Represen tive. A is
must b convened to consider the position and
possible ions. an ac ptabl solution cannot be found then the Client may
susp on the R oject
ointme-M of any,
inns of that
HII ne Members are to use reasonable skill and care appropriate to their
s ctive ro e and responsibilities, and owe to each other such duty of care
ass in tnering Agreement (22.1).
Each Partnering ber is to provide or obtain collateral warranties as listed
fl,
((DD
-Q-the Prorect-Partn ng Agreement (22.2).
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
PPC2000
other Partnering Team Member. The Constructor may quirokto waaan

the completed Project shall be fit for its intended p,
Section 8 in the Partnering Terms otherwise state mentli
hands of the Lead Designer and other Design T to de to
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 -3).
Following Client approval, and aft Gro con tatI the Designer
applies for full planning permission an ther n Team e b s brings the
design to the level necessary for th selecti ecia ' s, evelop ent of the Price
Framework, and satisfying of plannin condi do atory approvals
(&3).
After commencement all fu her dean lwork is epare
and other Partnering Team Mem or approva com
periods stated in the Project imet ble (8-6).e'
Each Partnering Tea M& ?er tains ' tellect al pry perty rights in all designs and
other documents t at he p epares r the , but rants to the Client and other
Partnering Team Memb copy and se such designs relating to
completion of t Proje
Nothing in t rtnering reem fht Partnering Terms confers any benefits

or rights to, less e ressK state otherwise (22.4).
Nothing nts creates
Member
Any to s to k
I rted into thecontract must be identified as special terms
b reference o thi Ii must be set out in or attached to the Project Partnering
gree r the Co ent Agreement (28).
vent of iffere ce or dispute with other Partnering Team Members, a

givp__noti e to e other Members and the Client's Representative (27.1).
The Partnering s involved are to apply the Problem-Solving Hierarchy

shown in the Co ent Agreement, guided as necessary by the Partnering
Adviser (27.2).
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
PPC2000
If the dispute is still not resolved, the part

conciliation as described in Appendix 5 Par,
alternative dispute resolution (27.4). The r
chose
o
rsMedia
m,be`raame
refe
ny o
the
er
m the
Partnering Agreement.
The parties involved may exercise the, f their d eren
(27.5) in accordance with Appendix adi cator
Project Partnering Agreement.
If the difference or dispute is no arties may refer

the matter either to arbitration ation is covered in
Appendix 5 Part 3. The no be named in the
Project Partnering Agreem
This contract?
If considering using PC. i0 re embe the

It is the only standar cc act specificall d roject partnering.
The conditions lai o ed and sy 1 ea"owever attractive the notion of
a single contr ct bri in II im tant r1 together in a binding relationship is,
inevitably t s calls r an op an
Contract dmini rati an prod i-nent under it seem likely to prove

demanding, as appArent een used in practice with successful results.
If tultima in artneri arr is is desired, then this form, which is the

res t of an archi ct- d initi competitors as yet.
andard Fo ct for Project Partnering PPC2000

ontract for Project Partnering SPC2000
References
lanai
333
W
W
334
Taking into account
There will be times when operation andard form
of contract. For example, some n contract, or
the need for some additional sp as the main
contract works proceed. This racts, or separate
contracts proceeding in se ation of otherwise
unrelated standard agreeme
make sure that there is no ict or sp ki
obligations of contra ng parti are learly t ou
Standard forms curr ntly py im sded will a most situations, although
o
this might necessitate the u of option cl r sup ements as provided for in the
particular contrr,,t ire may e ex pti circumstances where only a
bespoke agre ent ve a`satisfact ry aan wer, and if so then this should be
drafted by a experi struc yer structed directly by the client.
i
s the ntra t sly count of eventualities that can be

to en that ie inten %-a-rthe parties are expressed clearly, with
0C:
mat the alloct tion o is as intended.
w the common law of contract, and affected

s. ry to take into account applicable legislation
It is neces!
"sions, at least to have an awareness of what might
rr
misht need to be considered includes:

n and Management) Regulations 1994 (SI 1994/3140)
early temporary and permanent works. The statutory duties for
t1w,?mp1oyer an tracto are usually made contractual obligations also.
heck whether- the act terms take into account the role of the Employer in
it me s,and the obligations of the Planning Supervisor and Principal
in respect the Health and Safety Plan and File.
Unfair Ter-ft in C sumer Contracts Regulations 1994 (SI 1994/3159)
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
0-c
ro
owner) and the latter a person acting in the course of business (e.g. a consultant or
0-3D
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 t m willot

consumer. In assessing the requirement of good fai
parties will be taken into account.
Check whether: one of the parties is a consu so care is eded e

that the contract complies with the req uire nts erm s a plain ang
nji
Most standard forms have not been indi ' ually tia d. He e he pr
tracts' for sy
v,.
attempts to publish building contracts which e c nsu r c

as cla ildho or co
domestic works. Care is needed if draft g
appointment agreements to make c ain that the rm
dl
fl,
understood by the consumer,

Housing Grants, Construction a ion 7rtt 996,
Part II Construction Contracts
This will apply to 'constructio d this incCude contracts for

professional services, interio or exterior ecora-on, la building contracts.
It will not apply to contra 'ts wit idential cupiei roNded that the work is
principally on a dwelling fo own occupation.
Check whether: the o erms xpressly the6'right to refer disputes to
adjudication, and w, ether Faym eet pro dures eet he requirements stipulated in
the Act. If the Act 's appli able - t not ressly i cluded for, then the Scheme
for Construction ontra Re ill automati lly apply.
Party Wall etc. A

As with m elatin to d velop nt such as the Town and Country
Planning etc., "this will. not usually feature in the contract
Conditi wall agr, ements or awards are concerned this
?fl
might bri r co tract administration.
w er.. at work will affect party walls, because if so notices might

issued or receiv the course of the Works, and construction work might
aff award. Contract Conditions should provide for
11
tructi- to cover p variations, extensions of time, disturbance costs,

hich might becom
It used to be h that at co/rfimon law only the parties to a contract had obligations
E
fl-
and benefits fro The 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.
336
Choice scenarios 14
Check whether: it is intended that certain thi ty rights re to

('D
BCD r.
whether the contract expressly includes thi an re fired

v':
uncertain on this matter, it might be advis taro egal vice. f
published standard forms of building co ressly tate that
third parties under this legislation will
The tennis club in the afflue f Fai w has a b` ctor,, who has promised
to donate new prefabrica ed pa
a 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.
he nat e of t> e wo&tpr th)s preli inary contract, consider a lump sum
minor 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 biz possession on the due date and the site being
mpede
res.
Ì^
(1)
ate. Pra ompletion of the preliminary contract will need

ica I
e respective Nabilities for defects and damage clearly established

beg' r example, MW05 only refers to defects in work under that
N[2
act beinc d by the original contractor). A separate Health and Safety

nd File c ill probably be required.
Scenario B
Planning rmis ion f r the latest 'Homeforce' DIY Superstore contained a condition
(.0
that the acade f the 19th-century Boon Mills, which now occupies the site,
Fin
should b tamed. ite clearance is imminent and the selected part of the listed
+-C
,-+
(El
facade needs to e stabilised and protected in what could be a delicate operation. It

n-0
is decided that this work should be entrusted only to an expert demolition contractor.
Which contract?
A separate contract is required for the demolition work. Consider a suitable minor
337
14 Choice scenarios
works building contract e.g. GC/Works/2 (1998) or, II, a ecia i act
(e.g. the Standard Form of the National Federation ition con ctors .ake
sure that the Specification and Conditions includ pro isio fo
P=} dem
and insurance, and that the contract for the b ar s allo s for other
contractor to work on the site occupied by th
Comment
The demolition contractor needs to be ear for ective
obligations for the safety and protectio f m rial i ed and
stored, it should be clearly stated. (Th Employer ex t to ed if the
vii
contractor is allowed to acquire salv teria . emoon can dealt with

as a preliminary contract or as a su -con the 'former, then
r(6
a Health and Safety Plan specific this fight quir e or it might be

contained in the Plan produced b incipa cto r.
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 eliable buil er, pr bly one with experience of this kind of
work who dersona sup rvises raftsmen with a knowledge of the
SAO
relevant ho This nlikely o be a lump sum contract, and a cost

plus ap only racticable/ne. It is doubtful whether any of the
standard s ffective cover this is kind of operation, and it is probably
best of letters and an agreed Schedule of rates,
co
er pr6tection and s res are the contractor's responsibility, but check

ese are no Sh work needs close direction, and the contractor
qu ting rates that this might not be a single continuous
operation. Retur to for further investigation are a likely requirement.
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 i
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

It has been suggested that whilst build work an ancecapf p ro ded by one
fl,
reasonable building contractor, se ally nd kitchen

be must be
0
left to specialists. It is envisaged th ork arri ou per odic or phased

manner possibly over an extend period, an atio rail direction will
be critical. The Architect agr to, act the situation now
suggests that the role is dev ate trades contracts.
Which contract?
The situation calls for. ouno mana moment, ination, and firm control.
Because of the inter re of worK; d lump sum contract with
the builder is thougi u ikely to acgri eve th esired result. It is thought that
this could best t by a consu 1 ratin as a management contractor.
However, the N-volved a e lik relatively small, and probably
y
s con actsenter into d ect b tween the client and each specialist
e the ost sate tory a r. A s ort form (e.g. JCT MW05, one of the
0
! or G be an app priate document to use for these,
ere m additional conditions.
agreement, ateveNpfm, sho. Id include for matters such as the following:

s ncemen and completion. Consider problems of phasing
an osses
,y:stkte basis or valuing work done. State when payments are to be made and
ocedui sinvo
ol: state architect's instruction before any deviation is made.

Establish procedu `sure integration and coordination of the various trades
nvolvecl_vMNs to e responsible for setting up site access, welfare provisions and
lities 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

0 ' n w1171P
event of key contractors falling behind, would allo the ar itec to e ac
no extra cost to the Employer) to bring the wor back ti rn t
bringing in an additional labour force, or even ano er fir
An architect involved in such a management r ropria co
for professional services with the Employer, d shoul r riate
Contracts with substantial specialist co,
Scenario E
The catalytic degrader at Hotwells ter AssiateProduc

very (1981) Ltd
has become redundant, and is du to be d by late Nation from
N-?
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 d by one
sum contract (e.g. JCT 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 ceclu rePte 4 Placing of Contracts with a Substantial Building

rvice tent, vised that where parallel contracts are used, great
e 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
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 landsc ing a to'

out, it is thought best to treat this as a sub to uildi
It is intended to use a particular landscape b- =ntrac r.
is to be named u
If the landscape firm er IFC9
appropriate forms either NAM or NSC
0
The Specification or bills of qua ties mbtesho ake,. ecific reference to

special provisions to cover u ters m Ian fail e d aintenance, and
malicious damage or thef befo i,
ora ical letion. u items would not
ordinarily appear in a building ntract,.
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
fl,
architect, and uc is will -be hard dsca using non-traditional materials and
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.
a m contr ct (e.g JCN C98) perhaps modified after taking account

ctice 11 es Altern ively, if the type of work suggests that
_4'
evant JCL
easurement is racticable (e if there is a substantial amount of earth-
ring ciated rk of a civil engineering type), it may be more
riate onsid of ditions of Contract for Minor Works.
taine ntract for landscape work, it is probably best administered

andscape tect. reful coordination will be needed if it is a contract in
fl,
parallel with anoth Iclj g contract.
The new ouncil office under construction at Tan-y-groes have attracted a great deal
0
of media est. W rk has not proceeded to programme and failure to complete by

fl,
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
C
landscape work can proceed at a later date under a separate contract.

fl,
341
14 Choice scenarios
Consider the JCLI Form of Agreement for Landsca Thi clos

i mo led
on the JCT MW05 contract, but includes additional for ealin ith ;ffieation
such as plant failure, malicious damage or theft, maint ance. tte+
will require a separate JCLI Agreement.
It is perfectly acceptable for the administr for the CLI do s c a
bt
than a landscape architect (e.g. an arc tect), ildinur)era
e utie esuppos
which an architect experienced only,in s t not
Contracts for fitting out
Scenario J
Ground floor shop units on ne ne

new a le tes De to be left as shells,
t o nsibi
to be fitted out by tenants hey will as ume re ing out the interiors
and for providing shop onts, under direct co racts ite separate from the
developer's contract with tH prin Opal contr or.
Shop-fitting and terioiork be car`ried out u der a lump sum contract in

respect of each nit. 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).
the Tw4
spo ibil s an
ontractd is still
ractor might require

site, care should be taken to establish respective site
rticula proper insurance arrangements. The principal
ractors to work in accordance with the Health and
Ian for the_ or the t6nant's work is carried out under separate unrelated
i
Heat Safety Plan for these works might be necessary.
ntracts
-f,
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
0-0
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 in a ma

sub-contractors specialists is not likely to pro f ctory. tre endo
detailed planning and coordination will b d be re t co le.
on site, and there must be absolutely po ys or isruptio
installation or integration problems.
.-r
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
traditional lump sum form 8) no y b precluded, as the
contractor would be a sing ka s p forme hership or company.
The partnership ag $ement s rovid d several liability and a

performance bond vould r r be`reqq uired-. ethod of working can be
particularly effectiv wher design input is quire with elements of the design
contributed by he ious Decialist rtn effectively coordinated within
the larger org is
contratt
for a-new oup tice veterinary surgery in Fairmeadow became

r seve h we of 36-week contract. His employment was
er ed u the ms of the contract, and it is accepted that
of question.
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
+-V
e more one
certainly been inc aseethe Contract Sum.
If the cir umstances r climate for tendering has changed markedly since the original
,l<
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
0-'
claim to be brought against the original contractor.
343
14 Choice scenarios
Work on the Limboland Fitness Centre was well ov jrds le

contractor's performance became progressively sl so ewha errat
no great surprise when a letter arrived from a fir, o act recei
discussions, it was generally agreed that the fl,
3rv cou e of aftioh js
have the contract completed by a substitute ontract&-
.-t
The contract just might be completed y rein st nt ass

substitute contractor accepts respons ity co tin der
the original contract. A deed of assi uld quired a g ed
Employer, receiver acting on I co tor, a
contractor.
Alternatively, the contract mi tbecò ple d novation. In this
.-+
by re
r-.
case, although the substitut contractor night at-c ept re for completing the
fl,
Works, all the terms of th origi ntract mig not acceptable. A deed of
novation would be require ,as a reed betw` er, receiver acting on
behalf of the original r, a n lthe subs 'tut
Where a substitu contr ctor w ng

complete t e work, an adjustment of the
completion date almo i evitabl The r might also have reservations
fl'
fl,
about acceptin sibility for ork al carried out and perhaps covered up,
'"'
and additio be in ble The H s of taking on work undertaken by

previou ared b an additional single fixed premium
.^+
a n be
payable ew Healt and Safety Plan might be required.
fl,
Dragon` iousm, ation refurbishment scheme was complete except for a

out n ing ite reat reluctance, the architect yielded to pressure and
fl-
rtifie pr ca allow unhappy decanted tenants to resume

patio-n. Unfortunat is to bring back the contractor to complete the
cc.
--6
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,
The outstanding work could be carried out on a lump sum or preferably a cost plus
fl,
c+'
fl-
basis by another contractor. An exchange of letters might be considered sufficient, but

fl,
this would probably still be a 'construction contract' to which the payment

fl,
c-0
procedures and adjudication option would apply. Depending on the extent and
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 a competition was

announced, it was decide inting of several High
Street facades as a group ope es is in need of some
renovation and some dwork and ironwork also
needs repainting, a ostly routine maintenance
0-o
work, and well with uilders.
For small -scal strai tfo and j s, tend rs mi ht be sought on the basis of minimal
drawn infor ation nd a cificati r Sche ule. This might result in just a lump
sum, or if ufficie y ite is t contractor's f ures could give a useful breakdown.
An excha e of le er might e su t
i any cases, but where a larger amount
of work is inv ed, t en as
ti-
ndarg4(Zrm of contract should be used (e.g. JCT MW05

or a
I e enti w rk is be tr Vtedaavonaecontract, then the client would need to be

ident ' d, an woul presume uthority to appoint a contract administrator.
nication would need to be clearly established to avoid the risk of
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.
The Ne Cambrian ank, which has premises in major towns throughout the
Principality, to embark on a programme of regular maintenance and repair.
E
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.
345
14 Choice scenarios
Consider 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
C--
of the approximate total value of the work e

be avoided.
The JCT publishes the Standard Form Mea Pd erri TC%05. Some
bodies have their own model docu e s fo uch tracts on acts usually
require the presence of a contract dmini ato %th m loyer.
Scenario Q
The Architect engaged by t

cquis
%ve vic on what
D0-
Allday fa ily h em needed
fl,
is
to update the cottage the have a maamount of

alteration work and some ainte ance and rk. It agreed that this work
,-+
can safely be entrustedo th
residence for oc upatio Vby e AI

"
y,
Assuming that th archite is se Vtcesarg, no longer reclfired, and that this is a private
-.-
then consumer contract (e.g. JCT

Building Contract a wn r/OccWier) would be a safe recommendation.
An excha ge of rs, or ve asic formal greement (e.g. JCT Contract for Home
fl,
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
i .
resi nc r ner occ ation means that statutory requirements relating to

-Q-
a Judication and ment rovisions under the Housing Grants, Construction and
pply.
346
Bibliography
Chappell, D.
The JCT Intermediate Building Contra
rip

Chappell, D.
The JCT Minor Works Buildi
3rd edn, Blackwell Science (
Chappell, D.
The JCT Design and B
3rd edn, Blackwell Sc
Davidson, J.
nom
JCT 2005 What's Ne

RICS Books (20
Egan, Sir Joh

0,v2
Rethinking
HMSO (1
Egglesto
The
Bla
am,
Constructi
HMSO (1
Sarah Lupton
Guide to MPF03
rye
347
Bibliography
Sarah Lupton
0-O
Guide to SBC05
Sarah Lupton
Guide to IC05
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 H
Edition OCT HG(A)), 187-93 36,56 (see also
alterations and extensions, buildin

minor works contracts) Contract 2005, 253,
amended forms of contract, 17, 61,

Construction Contract,
su
tractors and
of Building (CIOB)
'approximate quantities', 4,207,
CIOB Iding Contract (2004), 173-5
architect's appointment, 1
LOB inor Works Contract (2004), 176-7

CIOB°Small Works Contract (2004), 175-6
architect's instruc ons, 3
ini Form of Contract (CIOB Mini Forms),
architect's servi es, 15, 1 20, 64
design nd buil procu men
d 363
manag ent pro ent, 3 58, 299

advising the client, 20-1
Architec eying Institu (ASI)
basic questions, 59, 60
172-8, 03-6
procurement methods, 46-7
hitects
scenarios, 315-46
ment 1982
003 Rev CIOB see Chartered Institute of Building (CIOB)
Civil Engineering Contractors Association, see ICE
:A 3tanc Conditions of Contract

rtneringg clerk of works, 37
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, Compensation Events (Engineering and
break provisions, 228, 232 Construction Contract (NEC)), 111, 113,
Building Contract (and Consultancy Agreement) 164, 167
for a Home Owner/Occupier (JCT 'Competitive Design and Build', 36
HOC/HOB), 194-9 competitive tendering, 33, 39, 59
m
349
Index
completion contracts, 343 19

conservation work, 26 88
Construction (Design and Management) gn, eg an Cons c1
Regulations 1994 (SI 1994/3140), 335 , 09-10, 15,, 162,

Construction Industry Board, 50
construction management, 38-9, 58, 297
contractual relationships, 42-3
plan of work, 33, 39-40 ontra per 24
Construction Management Agreement C/CM (J

/ forks rth Q ntit
C/CM), 297-306 ICE CchrNtion ontra
Construction Manager (JCT Construction
Management Agreement), 297 on,rme diate Bui
JCT Irate
Construction Phase Plan easu'red Te[m Con

1CT Design and Build Contrac Contra luctua
JCT Intermediate Building C itracts, 124 uctura
JCT Measured Term Contra 2006 contrlactt profile`;
JCT Minor Works Building C ntract 134 Contract , 60
ntrac' 2005,`Q1 C ntract
f typks
9ctor ap
BA-1 S31070
Construction Ski Its Ce ification the design j

'consultant switc h', 41
Consultant Tea m , 49, 57, 97 ontractor's design (see also Contractor's

consultant's a ointmen , 16 Designed Portion)
and build procu? en36, 37, ACA Form of Building Agreement, 144, 145
Engineering and Construction Contract
min
ment,
(NEC), 110
al 33
GC/Works/1 With Quantities (1998), 98
tual relations
ICEDesign and Construct Conditions of
design an rocure
Contract, 265, 266
m cure ent, 42
JCT Design and Build Contract 2005, 253,
traV4Lo al procureme 254, 255
tant's design liability, 56 JCT Intermediate Building Contracts, 119,
121, 128
design and buii)6pfzaremenJ, 35 JCT Major Project Construction Contract, 71
1CT Minor Works Building Contracts, 131

traditional procure?niL4 1-2, 33, 34 JCT Standard Building Contract 2005, 85,
86
consumer contracts, 61, 185, 335-6
JCT Trade Contract, 308
JCTAgreement for Housing Grant Works
HG(A) 2002 Edition OCT HG(A)), 187-93 Contractor's Designed Portion, 56-7
JCT Building Contract (and Consultancy JCT Intermediate Building Contracts, 121
Agreement) for a Home Owner/Occupier
350
Index
Contractor's Designed Portion (continued) and ild

JCT Minor Works Building Contracts, 132 co ariso , 46-7
JCT Standard Building Contract 2005, 85, c tract al relate ships,
86, 89, 90 forms f contr t, 249-7
contractor's liability, 18 n assessme t, 44, 4
ACA Form of Building Agreement, 148
(NEC), 109
sig ty, V 5
Engineering and Construction S
ng an
Contract (NEC), 165
C),
GCJWorks/1 With Quantities
G C/Works, (bantities (1998), 98
JCT Design and Build Cont
uild Contract 2005, 254
JCT Intermediate Building Contra
e Building Contracts, 125
7, 91
tanda Building Contract 2005, 81, 85
contractor's responsibiliti
desig
design and build c 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
Contracts (Righ of Thirc! PartiN Act 1
management procurement, 37, 38
336-7 BA ,
contractual 'elationsl ps, 15/40

r
i traditional procurement, 33
ACA Form of Building Agreement, 145, 151
design ,and bui racts, 4Y-2
ACA Standard Form of Contract for Project
re ment, 4 Partnering, 332
d
E6a
(NEC), 110

1w.1
Conditions of Contract for Minor Works,

+-'
ICE
lZ- 222
ontrac ICE Conditions of Contract Measurement
cosy Version, 214
39-47 ICE Design and Construct Conditions of
Contract, 266
JCT Design and Build Contract 2005, 253,
O_1
mage t rope , see nsurance z

254
Defective Pr ses Act 19 2, 18, 85
JCT Major Project Construction Contract, 70,
defects re ification, 53
71, 72, 81
defence cont . 51
JCT Standard Building Contract 2005, 85
demolition work, 337-8 domestic work (see also consumer contracts)
Department of Health, NHS ProCure 21/1-IFT, 51
CIOB Mini Form of Contract (CIOB Mini
'Design, Manage, Construct', 37-8, 58-9 Forms), 203-6
Design and Build Contract 2005 (1CT DB05), JCT Agreement for Housing Grant Works
251-64
u-,
HG(A) 2002 Edition (JCT HG(A)), 187-93

w
351
Index
0
domestic work (continued) a murrrjnce) co
1CTContract for Home Repairs and s, 51, 2
Maintenance (JCT HC/RM), 200-2 um ice' P) c
JCTMinor Works Building Contracts 2005
OCT MW05/MWD05), 132
toric buildi
Egan Report, 10, 21, 50
employer's representative, see client's
mlmprQveme
representative
home n con g, see
employer's requirements, see client's requireme
enabling works contracts, 64
hour gran rks 87-9
ement for ou g
Engineer (ICE Conditions of Contract), 214 dition (J
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
European context, 20, 62
r ment o
ICNCondif1ons 6
.-«
ditionnN(2001), 221-6
Federation of Civil Engine ring Con acto ICE
Conditions of Co ract for inor Wok E C dition of Contract Measurement Version
Seventh dition (Sept 1999), 213-20
Third Edition (2 1), 221/6
Design d Construct Conditions of Contract
Financial Control, 25
econd Edition (2001) (ICE/D&C), 265-72
fitness for purpose obligat
ICH orm of Default Bond, 213
fitting out wor
inde pity, see insurance arrangements
forms of ap
InsR tution of Civil Engineers, see
ICE; New
forms of c Engineering Contract Document (NEC)
Framework nsurance arrangements, 43-4 (see also risk
Fram assessment)
315-17 interest payments, 19
ements, 1
interior work, 342
ctionkrel3itionships, se Intermediate Building Contracts 2005 (JCT
relationships IC05/ICD05), 119-29
intermittent works, 338-9
GC/Works contracts
GC/Works/1 Single S, age Design an JCLI, see Joint Council for Landscape Industries
273 (JCLI)
GC/Works/1 Two Stage Designand Build (1999), JCLI Agreement for Landscape Works, 168-71
273-7
JCT, see Joint Contracts Tribunal
GC/Works/1 With Quantities (1998), 96-106
jobbing repairs, see repair work
GC/Works/2 (1998), 153-8
Joint Contracts Tribunal, 10-11, 17, 20
GC/Works/4 (1998), 159-61
352
Index
Joint Contracts Tribunal (continued) Jojf t Councj}'for Lan cape In stn'

Agreement for Housing Grant Works HG(A)
C1_
f Aare6ment for Lan cape
2002 Edition (JCT HG(A)), 187-93 re co#itractsh342-
Building Contract and Consultancy
Agreement for a Home Owner/Occupier cators
who has appointed a consultant to ove
fl-
the work (JCT HOC), 194-9

laly, scape
Building Contract for a Home
Owner/Occupier who has not app me to p ent, 7
consultant to oversee the work(J HOB), ay of Co

194-9 99,
Construction Management m Report, X107
C/CM (JCT C/CM), 297-30
of coW
Contract for Home Repairs an
New',Rnai7reeri
ultant; 6, 31
tract 2005 (
335-6
FA), 315-17 ontractor's liability; design liability

!finding (JCT 1
authority requirements, 63
to Buildi sum contracts, 25, 53-4
5), 119,
shorter lump sum forms, 117-83
roject nstru
standard lump sum forms, 67-1 16
1
9-82
m Contract 2 6 Editi
TC06), M41 (Movement for Innovation), 50
Minor Works B Idin Contracts O05 (JCT,

maintenance period, see defects rectification
MW v 30- maintenance work (see also minor works contracts)
Repair d ainten management contracts, 58
mmerc I) 2006, example, 345-6
2
JCLI Agreement for Landscape Maintenance
Xtandar ilding Works, 168
SBC651,
JCTContract for Home Repairs and
Standard For ilding Maintenance (JCT HO/RM), 200-2
(JCT98), 69
JCT Measured Term Contract 2006 Edition
Sta rd Fo of (JCT MTC06), 228-35
Appro ate uanti
and Maintenance Contract
JCT Repair
SBCO /AQ , 09-12
(Commercial) 2006 edition (JCT RM06),
Stan Form of A 139-42
1998 Editior-OCT MC98), 281-91
Major Project Construction Contract (JCT MP05),
Standard Form of Prime Cost Contract 1998 69-82
Edition (JCT PCC98), 239-47
management contracting, 37-40
Trade Contract TC/C OCT TUC), 307-12
Works Contract 1 and 2 and 3 1998
plan of work, 32-3, 39-40
Editions (JCT MC98 WORKS), 292-6
353
Index
management contracting (continued)

risk assessment, 45
types of contract, 57-8 Buildi g Am6
Management Contractor, 282, 283, 292 tesi n Build, 75
management of the Works, see site management

management procurement, 37-40, 57-9
Version, 2
comparisons, 46-7
forms of contract, 279-312
JCT edi*',9.uildin
plan of work, 32-3, 39 126, 8
risk assessment, 44, 45 JCT Mrafroject Co
management responsibility, 32 (see also cori inorW(o_UBuildin
administration; coordination of work; site
management)
era
Measured Term Contract 2006 Edi on (JCT
MTC06), 227-35
ndard
measurement contracts, 54
standard forms, 207-
JCT S nda
Mini Form of Contract (Cl B Mini_Torms`), 203-6 42
Ministry of Defence, 51 CT Wor s
Minor Works Buildin Contrac 005 SBCC F

MW05/MWDO ,, 130-8
Bering Contract Document (NEC)
minor works contracts
CIOB Mi try (2004), hird Edition (NEC3), 107-16
CIOB S ,4), 175 Engineering and Construction Short
Eng Contract (NEC3 (Short Contract)), 162-7
Contr Partnering Option X12, 318-20
orks/ NHS LIFT, 51
of
r ns
(2001
NHS ProCure, 51
nominated sub-contractors, see 'named' sub-

contractors and suppliers
non-standard agreements, 17, 61
Northern Ireland, applicable forms of contract, 20

GC/Works/2 (1998), 158
GC/Works/4 (1998), 161
1CT Minor Works Building Contracts 2005 ICE Conditions of Contract Measurement
(JCT MW05/MWD05), 130-8 Version, 220
Scottish Building Contract Committee ICEDesign and Construct Conditions of
(SBCC), SBCC Forms of Contract, 181-3 Contract, 272
Movement for Innovation (M41), 50 JCT Intermediate Building Contracts, 128, 137
354
Index
Northern Ireland, applicable forms of contract ini For of Conic

(continued) ieerin d Co tructi
JCT Standard Building Contract 2005, 94 ), 1 -13
JCTStandard Form of Building Contract f Constructi
With Approximate Quantities 2005, 211 165
novation, 36, 41
Olympic construction programme, 20

Outline Plan of Work, 32
23
overseas projects, 20
ICE Condltiorof C
rsion, 21
rking
I
Contr
management proc 6ment, 3
traditional procur nent, 33

partial possession (see o o phase JCT lding Contract (and Consultancy
commencement an Ag re ent) for a Home Owner/Occupier,
(ding e t, 145 1W, 197
and Co %ruc on ditio of JCT Construction Management Agreement,
301
reemen for La dscr V` T , 169 1CTContract for Home Repairs and

Maintenance OCT HO/RM), 201
struction nageme) Agreemen
JCT Design and Build Contract 2005, 257-8
ild Contract 20 JCT Intermediate Building Contracts, 123-4
ng ConMcts, 120 JCT Major Project Construction Contract, 70,

75-7
JCT Measured Term Contract 2006, 230
JCT Minor Works Building Contracts,
133-4
?CT stc
Contract, JCT Repair and Maintenance Contract
(Commercial), 141
241 JCT Standard Building Contract 2005,

89-90
1CT Trael-PContra ,
1CT Standard Form of Management

rrange ents,
Contract, 285-6
and forms, 31:
JCT Standard Form of Prime Cost Contract,
Partnering`B.tion X12,18-20 242-3
Party Wall etc. Act 1996, 336 JCT Trade Contract, 309-10
payments to contractor JCT Works Contract 1 and 2 and 3, 294
ACA Form of Building Agreement, 147 SBCC Forms of Contract, 182
ACA Standard Form of Contract for Project performance indicators, 50, 315, 328
Partnering, 328-9
personal injury, see insurance arrangements
355
Index
PFI (private finance initiative), 48-9, 71 act (a1-'

phased commencement and completion, 28-9,
Home 0
85 (see also partial possession)
ACA Form of Building Agreement, 145 t Ag re
CIOB Forms of Contract, 174
rac r Home Kepairs a
GC/Works/1 With Quantities (1998), 99, 100
Maintena
ICE Conditions of Contract for Minor Works,
ten-ftftate Bu
MajdhA.TqjecKo structi Contract, 71
JCT Intermediate Building Contracts, 1

JCT Measured Term 6, 228, 230
Minor`W6rkss Buildin Contracts 2005,
JCT Standard Building Contract 2005, 8
JCT Trade Contract, 308 JCT d Mai
plan of work, 32-3 (Comm 06 e
design and build contracts, 3 tandar g Contract 2005, 89

management procurement, 3 and For of Building Contract
traditional With )appro e Quantities 2005, 209
Planning Supervisor, 335 Stan

ntract
possession dates, 28-9 e also
possession) JCT Stan
239, 2}s
preliminary works con cts, 337-.40
JCT Trade Contract, 309
see 'named' s
iers L
price uctuations, see cost fluctuations
ts, see cost flu Prim contracting, 51
rm of B f lding, gree e Cost Contract 1998 Edition (JCT PCC98),

l7 239-47
f Contract, 172, prime costs, 54-5
CIOB Min` ,f Contrac ICEDesign and Construct Conditions of

Contract, 268
Engi and Corii uction
(NE ) Thir JCT Design and Build Contract 2005, 253
GQVZrrks/1 With Quanti JCTStandard Form of Prime Cost Contract

1998, 245
orks/2 5
Principal Contractor, 335
!i's of Contr
Private Finance Initiative (PFI), 48-9
f Contract M ProCure 21, 51
Version, 213, 216 procurement methods, 31-47
ICE Design and Construct Conditions of traditional procurement, 33-5
Contract Second Edition (2001) (ICE/D&C), design and build contracts, 35-7
268
management procurement, 37-40
JCT Agreement for Housing Grant Works,
188, 190 contractual relationships, 40-3
356
Index
procurement methods (continued) krm of %ildiing re'

comparison, 46-7 antities
risk assessment, 43-5
recent developments, 48-51 98), 158
professional services, 16, 64 998)/ntla

Project Cost Plan (JCT Construction Managem bf C
Agreement), 299
CE De
provisional sums, 34
ract,
Public Contracts Regulations 2006, 1
CLI Aa7semenf Landscape Works, 169

public sector contracts, 51, 62-3
ttisli Cwtrac Committee (SBCC),
quality considerations, 24, 26-7
CC Form tract, 179-83
quantity surveyor, 25, 38, 58 letion see phased commencement
ectiori
n
'radar charts', 23-4 s 342

'reasonable skill and car ', 37 'Sing irec sign and Build', 36
rectification period, see efects ectification cial for of contract, 17, 61, 340
refurbishment, see renova ion wd pose vehicle' (SPV), 48
Regional Prime ialist contractors, 15, 27, 33, 38
(Engine ring an onstruc appointment and management, 34
t (NEC)) 10, 1
ulative risk, 44-5
ent' co
V (special purpose vehicle), 48
stage payments, 19
also maint nance rk)
Stand Alone Capital Projects Prime Contract,
nn,
51
1CT Agreeni Housind Works,
1
Standard Building Contract 2005 (JCT SBC05),
83-95
epair an Main nana (Commerc)
2006 e ti n (JCT Standard Form of Building Contract 1998 (JCT98),
69
k, see mainte
Standard Form of Building Contract With
Approximate Quantities 2005 (JCT
ent Enginee 101, 2
SBC05/AQ), 209-12
000
ation work, Standard Form of Contract for Project Partnering

RIBA Plan of Work, 3 PPC2000,321-33
i_sk asses5a<ent, -5, 4 Standard Form of Management Contract 1998
Edition (JCT MC98), 281-91
ods Act 1979, Standard Form of Prime Cost Contract 1998

Edition (JCT PCC98), 239-47
SBCC, see Sc h B ing Contract Committee
(SBCC) standard forms of contract, 17, 61-5
Schedule 2 Quotation, 89 starting date, see commencement date
Schedule of Rates, 54 sub-contractor appointment and management

(see also 'named' sub-contractors and
Scotland, applicable forms of contract, 20,
suppliers)
179-83
357
Index
sub-contractor appointment and management

(continued) Con uctio
traditional procurement, 33 164
CIOB Forms of Contract, 174
Engineering and Construction Contract GC/Wd
(NEC), 112 ICE ConditO
Engineering and Construction Short
Contract (NEC), 164 nditi of Co
GC/Works/1 With Quantities (1998), 100 Ver3i9nl 15
`-'
ICE Conditions of Contract for Minor W, I esign CbRs ct Co

223 Cont 67
ICE Conditions of Contract Measuremen

greerRgnt or Housi
Version, 216
ICEDesign and Construct Con ions of
Contract, 268
JCLI Agreement for Landscap Works 16' esign a Build Contract 2005, 256
JCT Agreement for Housing G ant Wo ks, ediat uilding Contracts, 122
C3)
Construction Contract, 72-3

Mea ured Term Contract 2006, 229
300 CT Mino Works Building Contracts, 132-3
1CT Design and ild Contract 20,05, JCT Rep it and Maintenance Contract
JCT Intermediate iIding n dacts, ercial), 140
JCT Major Pr Con ruction JCT Standard Building Contract 2005, 86-7
70, 75 Standard Form of Management
1CT Me 6, 230 ontract, 284
200 88, 94 JCT Standard Form of Prime Cost Contract,
241
JCF Standard Form of Prime Cost Contract
SBCC For of rti 1998 design and build contracts, 56
ply of and Servi JCT Trade Contract, 308
ensi 5rk, 19 JCT Works Contract 1 and 2 and 3, 293

Time Schedule (ACA Form of Building
Agreement), 145-6
Trade Contract TC/C (JCT TUC), 307-12
trades contracts, 38, 39, 64
4,27-8,59
construction management, 58-9
comparisons, 46
example, 338-9
JCT Construction Management Agreement
ACA Standard Form of Contract for Project
C/CM (JCT C/CM), 297, 300
Partnering, 326-7
traditional procurement, 33-5
CIOB Mini Form of Contract, 204
comparisons, 46-7
358
Index
traditional procurement (continued)

contractual relationships, 40-1 61
measurement forms, 207-35 term late ildin or
risk assessment, 44, 45 la Project onstructio
types of contract, 53-5

consumer contracts, 185-206
JCT
cost plus forms, 237-47
3, 1
shorter lump sum forms, 117 3

1Cair an
standard lump sum forms, -116 omrl) 1
work stages, 32, 34-5 J CT'Sta cl'akdki lding

two stage tendering, 33, 36, 59
GC/Works/1 Design Build, 273 4, 276 1CT-Tr Contra , 309
JCT Design and Build Co uaci ties, s al warranties
types of contract, 53-60 'wi 84

'withou , 54,84
977, 1
stages, e plan of work
C tracts egulations tr, t 1 and 2 and 3 1998 Editions (JCT
MC98 WORKS), 292-6
nsumer,Contrac ac g"' 282, 292

Works Contractors,
works 39
x Wo Bank funded projects, 20
ons, 37>54
X12 (NEC Partnering Option), 318-20
Ag ment, 147
f Contra or Proj ct
B PDT
B Mini
or s
0
ditiorr'of Con
,216 f
ICEDesign-rod-Ce-Kstruct Conditions of
Contract, 268, 269
JCT Agreement for Housing Grant Works,
190
JCT Building Contract (and Consultancy
Agreement) for a Home Owner/Occupier, 197
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
--'-r ---
fl.
wntractual app;
:u ru:rrn Edition is an invawam

ne start of every now project anv
n or her
s.co
9 IIVIIIIIIII111111113711

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RI BA Publishing

Published by RIBA Publishing

ISBN-13 978 1 85946 237 9

Stock Code 58319

The rights of Stanley Cox, Hugh Clamp and Sa Lu pto a

All rights reserved. No part of th publics i .nay be repi u ced, s

British Library Catalogui in PO cati s Data

Commissioning Edit T,Kompso

2 Establishing a contract prgfil 23

4 Which type of contract? 53

6 Traditional procu st-Andard 16 67

JCT Major Project Co truc on Contr 2 69

JCT ilding 119

Architecture and Surveying Institute Mini Form of Co `tract ( enera

ICE Conditions of Contract for Minor W itio`(200 221

JCT Measured Term Contract 2006 Edi 227

JCT Standard Form of Prime Cost C tract itiori 239

JCT Design and Build Contr ;t 2005 251

ICE Design and Construct C nditi ns o Contract S ion (2001) 265

JCT Standard For of M ntr1998 E 281

This is the fourth edition of the popu 989. Since

The last twenty-five years have seen f standard

In 1945 the Institut Engineer u andard form, the first available

Contrac provi legal corn entary on the interpretation of these

re ent a stand d forms began to appear. The JCT published the

nd build procurement, the Intermediate Form of Building

This upw curv is reflected in the activity of other publishing organisations.

for new thinking about procurement, the pl ce of p neq, an he enefits f O

changing climate of opinion on pr ent.

Regeneration Act 199 h

significantly affected rocur en etho and he to t of current contract forms.

was to up ,lade and co oidate th d cumen previously published by the Joint

resulted in t F- u blic ion of 1998 edit of all its forms.

0 ner/ ccu r, an e ontra for Repairs and Maintenance) took account of

documents for u tion management procurement.

At around this time

era her publishing bodies produced new contracts. The ICE

then current forms were republished, with n

There are currently over 40 s ndar' o uildi ract

Chronology of dev t of stand

first pu icati,on forms-(r luding

18 8 tit of Ci Engi eers

1939 Stan and Form of Contract

pan-industry forum repr entm e built

try Board (CIB)

1998 The Seven Pillars of Partnering

identified five drivers or ng

win Prime tractor Handbook of Supply Chain Management

New part ering contract published by Association of Consultant Architects,

2001 JCT Practice Note 4 (second series): Partneri

2001 Strategic Forum Replaces CIB

construction, including client em %t1o egr ng e teorr)l and

2004 Constructing xcell

Programm Mli, e sing, ethin ng Construction, Be, LGTF

are formalised by entering in ateral (ie with two

contracts develop, for ex ple c ervice-provider-main

explanati see a nt led ch as F cus on Contract Formation). A legally

ArcWii professional consultants will be primarily concerned with two

iod fight be significantly conditioned by the wording of the

the type of procurement to be adopted and the role to be played by other

Contracts for professional services

eventually becoming part of the contracto ' o ssi to

gladly rise to the challenge of an entre re eve

services need to be covered by an ap,r op to c tracf