Escolar Documentos
Profissional Documentos
Cultura Documentos
Which Contract?
f `I 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
, Desig
Publisher: Steven C ss
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
3 Which procurement me 31
5 Which contract fo 61
5
Contents continued
W
Build (1 273
GC/Works/1 Two Sta Des (1999) 273
12 Management pr urem emertrrorms 279
313
Framewo A) 315
Fra 315
Par:`nering Option 318
dard Fo rfi act for Project Partnering PPC2000 321
335
347
349
6
Foreword
7
nal
8
Introduction
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
nt indicators and
vii
er
benchmarking as aids to ach ving plan d an onsis t ro ment, reflected a
i
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
st
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,
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
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
12
Introduction
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
13
Introduction
f_1
2001 Construction Clients Charter launched
Construction Clients Forum
+''
in
LL.
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
+.,
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
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
hori bli g tions of the professional acting for the client during the
and
S'^
15
Thinking about contracts
le
ti
suited to a construction management r le. But wh
0-0
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-
'-'
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
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?gin
IS i
nditi
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o refe bly
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
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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.,
T e I
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
Thinking about contracts
._-+
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
'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+.
18
Thinking about contracts 1
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
.
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
Thinking about contracts
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
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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.
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
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.
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`)
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
a a is
fl)
20
Thinking about contracts 1
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
((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,
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
TIME T1
T2
tI est po Bible start on site
Certainty,/over contract duration
T3 S o est possible contract period
/I
`D-
24
Establishing a contract profile 2
being encouraged.
"set li Contract Su
e clien height `ave lirnite unding and require the reassurance of a fixed
isk of fluct ation
25
Z Establishing a contract profile
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
-;'
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
ood com ercial e e for the client to provide for a constant site
nap
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
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
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
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-+
28
Establishing a contract profile
('1
z
29
enal
0
Which procureme
method?
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
po rta n
led til the procurement method and the type of contract have
been established' twill can considering the following:
It is important to establish:
31
3 Which procurement method?
suppliers;
what contractual provisions will apply to the desi
Coordination responsibility
This might include responsibility for workm nship, g
3-l
It is important to establish:
sum is
i^.
Plan of Work
The procurement thod fbe ad typeof contract will have implications
,-r
vim,
d a d
fl)
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
--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..
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
n
-t,
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
3 Which procurement method?
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
Which procurement method? 3
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
3 Which procurement method?
-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
e, he agree ent is om
referred to as 'Competitive Design and Buil . It tend o f e sligh ger, b I
r;,
Frequently, in deign-build procurement e cn he req cont ctor to
appoint some or all of its consultants at e time the a uild
i
tra is entered
fl,
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.
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,
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
36
Which procurement method? 3
-.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'
.-+
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-'
x-r
of th
tis e power, d to for e client needs to be clearly established.
,-+
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
.-+
,-+
involved in g
(.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)
37
3 Which procurement method?
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
'+'
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.
'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
38
Which procurement method? 3
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
FtRq
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
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
3 Which procurement method?
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
Collateral
-aqreemen
Contract for ant
services
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
Which procurement method? 3
Consultants
sign
) ild
Sub-contractors
suppliers
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
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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
3 Which procurement method?
Ilat I agr en
Client
Contract for
services
ks
contrac s
Manageme
contra t
Works
tract
Consultants
Nominated/
Sub contractors
domestic suppliers
42
Which procurement method? 3
construc ' man er, with all trades contractors in direct relationship with the former.
,-+
43
3 Which procurement method?
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'
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
Which procurement method? 3
Traditional Ment
Percentage cost ,
Mana nt c
0
45
3 Which procurement method?
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
.-r
,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
in p llel. advantage.
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
Which procurement method? 3
(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
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sup rs.
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,
47
3 Which procurement method?
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
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
Which procurement method? 3
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
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 `ortnering 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
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
3 Which procurement method?
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
'"*
chain.
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
50
Which procurement method? 3
.-+
LIFT is an b
fu ing arrangements
.-.
(at a larger scale than those u CU VZO, bi FI
,-+
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'
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,
by the contractor.
The contractor is res onsib for workma terials and this is in respect of
-.o
fl,
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
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
anti
(71
Obvi isly the clienJJ4ks to agcep f`ie 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
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
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,
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,
55
4 Which type of contract?
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
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
,-+
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
Which type of contract? 4
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
4 Which type of contract?
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
e proje, t an
(D'
th likely
risk. 0 viou o expertise
.-r
is
ice fro
,n'
me The la
a
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
Which type of contract? 4
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
4 Which type of contract?
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=
ur
60
Decisions on the preferred procurem onclusions
='O
on the contract types which might be ual forms of
,-«
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?
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
it r r
Unio
((D
mar
62
Which contract form? 5
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.
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
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?
+-'
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 .,_.
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
.
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
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
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
(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
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
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
ire-follow
Attestation. Understandably, this is a ontract to ec as a
inl,grestir key i
70
Traditional procurement: standard lump sum forms 6
JCT MP05
0
reflect the structure used in the actual con CI u
to be found in MPF05.
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
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.,
-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
crib
The contractor must use reasonable endeavours to prevent or reduce delay to progress
or to completion (15.3).
72
Traditional procurement: standard lump sum forms 6
JCT MP05
The contractor must notify the Employer whe anion actic Co'
RID
0-00
valid suspension of rform non- acts of prevention by the
Employer. Interesti gly, advers is no
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).
73
6 Traditional procurement: standard lump sum forms
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
,-+
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)°
74
Traditional procurement: standard lump sum forms 6
1CT MP05
ppoirdconsult
ctor without he prior written consent of the Employer (24.6
specialists, and e it e
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
6 Traditional procurement: standard lump sum forms
JCT MP05
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,
(D_
the Employer (25), a a bo a
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)
..,
Employe 3 amo
,-+
,_..
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
+}'
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
Traditional procurement: standard lump sum forms 6
JCT MP05
,-+
materials or cost fluctuations, althou these
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,
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
6 Traditional procurement: standard lump sum forms
JCT MP05
.,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
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 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).
78
Traditional procurement: standard lump sum forms 6
JCT MP05
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
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
Traditional procurement: standard lump sum forms
JCT MP05
_(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
80
Traditional procurement: standard lump sum forms 6
JCT MP05
This contract?
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.
'
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
_n+
diffi iaht be i imio rta nt atter in the case of PFI projects.)
.-f
(1)
S
mar-
This is a form whi r and shorter than either SBC05 or D1305, and which can
c.^
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
81
6 Traditional procurement: standard lump sum forms
JCT MP05
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
Traditional procurement: standard lump sum forms 6
1CT SBC05
Standard Building
Background
The original agreed Standard Form as the RIBA
LL.
a
and 1998, although now pubs Contracts Tribunal
Limited OCT).
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
6 Traditional procurement: standard lump sum forms
JCT SBC05
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,-
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,
provided, and the measure of detail required of the contractor is often stipulated at
,-+
vii
84
Traditional procurement: standard lump sum forms 6
JCT SBC05
ly 6
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+,
85
6 Traditional procurement: standard lump sum forms
JCT SBC05
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
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
Traditional procurement: standard lump sum forms 6
JCT SBC05
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
owere bec
he contr ctor -20).
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
6 Traditional procurement: standard lump sum forms
JCT SBC05
funders, and the Employer. The requirement to enter to war antie ust beams
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
Traditional procurement: standard lump sum forms 6
JCT SBC05
4 Money
The Contract Sum is VAT exclusive (4.6) an ly beadste
r+.
ed,`rtrM
e by
application of the v uation rule (5'2
(4.23).
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
Traditional procurement: standard lump sum forms
JCT SBC05
valuation (4.12).
Interim Certificate must show the amount due, t
calculation. Within five days of issue the Empl i
rp
of 5 per cent over current base rate, cart aIso th ntra
suspend work (4.14).
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
The contractor is empowered to carry out limited work for emergency compliance and
90
Traditional procurement: standard lump sum forms 6
JCT SBC05
in
and injury or damage to erty o nt a alw to be
rks (6.2). This is
fl'
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
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
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
8 Termination
91
6 Traditional procurement: standard lump sum forms
JCT SBC05
r+.
agreement with the contractor for continuatio
fl,
(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
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
Traditional procurement: standard lump sum forms 6
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 (
93
6 Traditional procurement: standard lump sum forms
JCT SBC05
This contract?
LA.
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.
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
Traditional procurement: standard lump sum forms 0
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
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:
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
6 Traditional procurement: standard lump sum forms
GC/Works/1 (1998)
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
Traditional procurement: standard lump sum forms 6
GC/Works/1 (1998)
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.
97
6 Traditional procurement: standard lump sum forms
GC/Works/1 (1998)
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'
_+.
98
Traditional procurement: standard lump sum forms 0
GC/Works/1 (1998)
__10
will notify the contractor when ay the
iing1
tae
e .
gram
+-C
iced as ay.
The Project Manag ired to issue a written statement of progress within seven
ss meeting (35[4]).
v,'
The Project Manager shall issue a certificate when the Works, or any Section, are
r6)
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
6 Traditional procurement: standard lump sum forms
GC/Works/1 (1998)
100
Traditional procurement: standard lump sum forms 6
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).
4 Money
The Contract Sum is 1 [1 ]) and
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
6 Traditional procurement: standard lump sum forms
GC/Works/1 (1998)
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).
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
Traditional procurement: standard lump sum forms 6
GC/Works/1 (1998)
Ngerl
r a ment, completion,
in Co di on 57. The quantity
the ost to the Employer of
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
6 Traditional procurement: standard lump sum forms
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.
104
Traditional procurement: standard lump sum forms 6
GC/Works/1 (1998)
This contract?
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
'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.
105
6 Traditional procurement: standard lump sum forms
GC/Works/1 (1998)
106
Traditional procurement: standard lump sum forms 6
NEC3
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
°v,'
ity__s.V
ad to fe isnutes: was also drafted with plain language and relatively short
,.,
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>.
completion.
Sir Michael Latham bestowed high praise on the original New Engineering Contract
107
6 Traditional procurement: standard lump sum forms
NEC3
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).
.-+
str,
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.
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
Traditional procurement: standard lump sum forms 6
NEC3
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
'
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
6 Traditional procurement: standard lump sum forms
NEC3
notify t
110
Traditional procurement: standard lump sum forms 6
NEC3
rol
he early o
The Project Manager may order the removal of an employee from any further
connection with the particular contract (24.2).
111
6 Traditional procurement: standard lump sum forms
NEC3
,-+
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.
.-«
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
Traditional procurement: standard lump sum forms 6
NEC3
If the Project Manag r corrects th Work form 'on at it complies with Statute,
this may be a Comp
fl,
fl,
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).
ployer may insure and charge to the contractor (85 and 86).
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
6 Traditional procurement: standard lump sum forms
NEC3
8 Miscellaneous
+>,
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
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
The adjudicator final and binding unless and until referred to a further
ecision
'
114
Traditional procurement: standard lump sum forms 0
NEC3
This contract?
%
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
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.
serious problems.
115
6 Traditional procurement: standard lump sum forms
NEC3
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
The Joint Contracts Tribunal Ltd
Intermediate Building Contra
Association of Cons
ACA Form of Building Agrgement 1,992 hir dAion 1998, 2003 Revision)
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
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.
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
eJ mu
tea,
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
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 `arty 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'
There is a provision for sectional completion, and if partial possession before practical
completion is required, then clause 2.25 provides for this.
120
Traditional procurement: shorter lump sum forms 7
JCT IC05/ICD05
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
13.1}
act bH&, exce, t stated otherwise, must be prepared in
,N+
The CDM ons oblige the Employer to nominate a CDM Co-ordinator and
(110
(Articles 5 and 6 and clause 3.18) and any need to appoint a replacement is also
covered (3.19).
121
Traditional procurement: shorter lump sum forms
JCT IC05/ICD05
liqu
xte ing t e (
-'.
section. All provisions relating to timing, for I
t ex
.-.
rtified by (2.21).
122
Traditional procurement: shorter lump sum forms 7
JCT IC05/ICD05
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.
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
123
Traditional procurement: shorter lump sum forms
JCT IC05/ICD05
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=+,
ays ue
n-0
ve
ctintei st of 5 per cent
v,'
to for' t wi
over current base rate, and can give the ontrac iaht t u n work (4.11).
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).
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
Traditional procurement: shorter lump sum forms 7
JCT IC05/ICD05
.-+
cover required, etc.). The Architect may dt i uei t
documentary evidence and pass policies t to r for ecki
str s a
(Schedule 1 Opon nd united to
i i New work in existing buildings,
although still r the ploye
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.
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
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
The parties agree that either may appeal to the courts on a question of law (9.7).
126
Traditional procurement: shorter lump sum forms 7
JCT IC05/ICD05
127
Traditional procurement: shorter lump sum forms
JCT IC05/ICD05
This contract?
(-1
If considering using IC05 or ICD05 remember tha
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
-+,
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
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°+
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
-+-
(Do-
for ch na d
at.
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
,-+
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
Traditional procurement: shorter lump sum forms 7
JCT IC05/ICD05
Sub-contractor Collateral Wa
Sub-contractor Collateral
Intermediate Building Co
Intermediate Buildin Sub
129
7 Traditional procurement: shorter lump sum forms
JCT MW05/MWD05
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
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,`aq 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
Traditional procurement: shorter lump sum forms 7
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,
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
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.
,-+
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
Traditional procurement: shorter lump sum forms
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
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
Traditional procurement: shorter lump sum forms 7
JCT MW05/MWD05
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
nt witbeut Written c
itten konsent to subwcd ract is
erson' Ts to
e &,Qo pro ion fdr a cl
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
_+.
(Dg
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
Traditional procurement: shorter lump sum forms
JCT MW05/MWD05
r,
ations
s the contkactor's mply with all statutory obligations, including giving all
n-6t
6 Insurance
134
Traditional procurement: shorter lump sum forms 7
JCT MW05/MWD05
The resp
the Condit
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
Traditional procurement: shorter lump sum forms
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
Traditional procurement: shorter lump sum forms 7
JCT MW05/MWD05
This contract?
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
Traditional procurement: shorter lump sum forms
JCT MW05/MWD05
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
Traditional procurement: shorter lump sum forms 7
JCT RM06
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
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
Traditional procurement: shorter lump sum forms
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,
epted
jes, these w,
ployer must fix a n tion date if the contractor is delayed for a reason
its contr
140
Traditional procurement: shorter lump sum forms 7
JCT RM06
On comple
(4.4), whi
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
7 Traditional procurement: shorter lump sum forms
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
implied.
9 Disputes
There is no arbitratio clause/ther re eit party world have the right to pursue
a claim through litigation.
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
Related matters
Documents
Repair and Maintenance Contract (Commercial) 2006 edition (includes a Guidance Note)
142
Traditional procurement: shorter lump sum forms 7
ACA Form
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,
C
bs of
rt.
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
'-{.
built upmay that the ACA members using the form are, in line with the
^'+
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
Traditional procurement: shorter lump sum forms
ACA Form
be resoonsi
Q..
surveyor ' ted. It an b used where the Employer is private or is a local authority,
(13
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
Traditional procurement: shorter lump sum forms
ACA Form
The Third Edition takes account of the Housing onstru on anit Regg
.-r
re is a
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
,-+
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
+-.
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
Traditional procurement: shorter lump sum forms
ACA Form
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
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.)
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_,
contract does allow for oral instructions in an emergency, provided these are
_+.
--0
146
Traditional procurement: shorter lump sum forms 7
ACA Form
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
vide tract
not r ach
h comMance kan st be instructed and valuation made
fl,
s I
c
fl,
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
within which to submit a final account (19-1). The Architect is required to issue the
147
7 Traditional procurement: shorter lump sum forms
ACA Form
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
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
Traditional procurement: shorter lump sum forms 7
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
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
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
Traditional procurement: shorter lump sum forms
ACA Form
150
Traditional procurement: shorter lump sum forms 7
ACA Form
This contract?
.
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
151
Traditional procurement: shorter lump sum forms
ACA Form
Notes
152
Traditional procurement: shorter lump sum forms 7
GC/Works/2
GC,/Works/2 (1998
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
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
Traditional procurement: shorter lump sum forms
GC/Works/2
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).
er d raw' , apl ructions etc. may be issued by the Project Manager from
e to lone Tng t 25).
154
Traditional procurement: shorter lump sum forms 7
GC/Works/2
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
Traditional procurement: shorter lump sum forms
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.
5 Statutory obligations
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.
6 Insurance
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,
fl,
156
Traditional procurement: shorter lump sum forms 7
GC/Works/2
8 Miscellaneous
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
7 Traditional procurement: shorter lump sum forms
GC/Works/2
This contract?
Rela
Docume
GC/Works/2 (1998) C ng and Civil Engineering Minor Works in two volumes: General
Conditions, Mode mentary
158
Traditional procurement: shorter lump sum forms 7
GC/Works/4
GC/Works/4 (1998,
Background
This is sub-titled as a Contract for
=00
It is published as a two vo
Commentary. The former ind
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
Traditional procurement: shorter lump sum forms
GC/Works/4
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
Traditional procurement: shorter lump sum forms 7
GC,/Works/4
This contract?
(1998) Contra t for Building and Civil Engineering, Mechanical and Electrical Small Works
era
161
Traditional procurement: shorter lump sum forms
It .
loyer's nce: si ped and dated. The offer and acceptance bring about the
ntract of u rse.
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
Traditional procurement: shorter lump sum forms 7
ommunicatit s ar to bbb in writing, and if a period for reply is stated in the Contract
en withi tha period (12).
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).
163
7 Traditional procurement: shorter lump sum forms
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).
e contract ccess for the Employer and others to work and to stored
The Employer instruct e contractor to search for defects (40.1) but whether or
not the Employer n`o 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
Traditional procurement: shorter lump sum forms 7
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).
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).
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.
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
Traditional procurement: shorter lump sum forms
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
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
166
Traditional procurement: shorter lump sum forms 7
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.
*
Notes
Engineering and Construction Short Contract Guidance Notes and Flow Charts
167
Traditional procurement: shorter lump sum forms
JCLI Agreement
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
Traditional procurement: shorter lump sum forms 7
JCLI Agreement
169
7 Traditional procurement: shorter lump sum forms
JCLI Agreement
This contract?
fl,
quantity surveyor.
Subject to anything to the contrary, i<able of The co`rgt Kt, vv atever the
O-0
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,
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
Traditional procurement: shorter lump sum forms 7
JCLI Agreement
Related matters
Documents
JCLI Agreement for Landscape Works 1998 Edition
JCLI Agreement for Landscape Maintenance W
References
171
Traditional procurement: shorter lump sum forms
CIOB Forms
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
CIOB Small
private houses, al era ions or extensions, with the work shown and described in
Q-°
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
Traditional procurement: shorter lump sum forms 7
CIOB Forms
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
(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.
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
7 Traditional procurement: shorter lump sum forms
C10B Forms
Domestic sub-contracting is
administrator (5.1).
There is provision for nomina `ed 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-
,,.
contract administrator must receive written notice from the contractor (1.31).
Compliance with health and safety CDM Regulations becomes a contractual
174
Traditional procurement: shorter lump sum forms 7
CIOB Forms
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..,
are an
full Schedule,
D
,,,
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
Traditional procurement: shorter lump sum forms
CIOB Forms
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).
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
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.
176
Traditional procurement: shorter lump sum forms 7
CIOB Forms
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
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 ).
177
7 Traditional procurement: shorter lump sum forms
GOB Forms
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
Traditional procurement: shorter lump sum forms 7
SBCC Documents
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
f
Scottish 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
Traditional procurement: shorter lump sum forms
SBCC Documents
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.
180
Traditional procurement: shorter lump sum forms 7
SBCC Documents
MW/S'eot05 ansons
s folio
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-,
181
Traditional procurement: shorter lump sum forms
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.
4 Money
Covered under Section headi 4 in
The wording of the clauses i identic ve for s
5 Statutory obligations
The wording of the cl statuto
6Insurance
hea ig 6 fit
W05 b Section heading 7 in the SBC versions.
i
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
Traditional procurement: shorter lump sum forms 7
SBCC Documents
re
n
, 96, alx
Th
o in clause4 and
ce icates
c
d d isions.
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
The Joint Contracts Tribunal Ltd
Agreement for Housing Gran, Works
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).
will normally 13-4 classed as consumer contracts, although some might also
185
00
986
Traditional procurement: consumer contracts 0
XT HG(A)
The Joint Contracts Tribunal Ltd
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
L/)
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.
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)
ontractor is to per
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
Traditional procurement: consumer contracts 0
JCT HG(A)
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
$ Traditional procurement: consumer contracts
JCT HG(A)
4 Money
The Contract Sum is VAT-exclusive (Article 2).
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
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
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
Traditional procurement: consumer contracts 0
1CT HG(A)
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
,-+
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)
7 Termination
4°-
The contractor may determine his own employment for stated reasons (7.3).
ac,
fl,
191
$ Traditional procurement: consumer contracts
JCT HG(A)
9 Disputes
192
Traditional procurement: consumer contracts 0
JCT HG(A)
This contract?
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
193
$ Traditional procurement: consumer contracts
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
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
Traditional procurement: consumer contracts 0
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
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
fl,
s an Pa
of just 14 es of X. Ther yare cope for the customer and the Contractor,
0
a--
only for a home owner. If the work is being carried on as a business venture, then one
0
195
$ Traditional procurement: consumer contracts
Brief synopsis
1 Building Contract for a Home Owner/Occupier
Lump sum contract. Note that contractor's quotati
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.
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
196
Traditional procurement: consumer contracts 0
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.
197
$ Traditional procurement: consumer contracts
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,
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
Traditional procurement: consumer contracts 0
This contract?
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,
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
atters
ments
uilding Contr'
1CT Building Contract
ce N`ofe`s inclu
199
$ Traditional procurement: consumer contracts
JCT HO/RM
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'
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
Traditional procurement: consumer contracts 0
JCT HO/RM
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.
201
$ Traditional procurement: consumer contracts
JCT HO/RM
Related matters
Documents
JCT Contract for Ho
References
JCT Guidance
202
Traditional procurement: consumer contracts 0
203
$ Traditional procurement: consumer contracts
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
valuation
Payment to the ntractor wi be as agreed and entered in the contract, that is either
ac,
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
Traditional procurement: consumer contracts 0
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.
! 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
$ Traditional procurement: consumer contracts
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.
uments
ni For
i For tract (Ho
206
The Joint Contracts Tribunal Ltd
Standard Form of Building C
With Approximate Quantities
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.
Tbg-Keadnote ate Quantities edition states that the form is for use 'for
...
03-
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
210
Traditional procurement: measurement forms 9
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
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
sion;
o
fl,
(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
t found
in cost plus contracts. However, successful use depends
and accurate the approximate quantities are in the first place.
!p'
211
9 Traditional procurement: measurement forms
JCT SBC05/AQ
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
Traditional procurement: measurement forms 9
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
y
o
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
9 Traditional procurement: measurement forms
ICE Conditions
Synopsis
'++
1 Intentions
The contractor undertakes to constru
v+'
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
Traditional procurement: measurement forms 0
ICE Conditions
2 Time
The contract may prescribe that posse ion of th
in portions (42).
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
9 Traditional procurement: measurement forms
ICE Conditions
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
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
Traditional procurement: measurement forms 9
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).
These might tern orary rks. th7' Engineer certifies it, then the
contractor II recei Y men of ums i volved (26).
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
9 Traditional procurement: measurement forms
ICE Conditions
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).
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..
8 Miscellane
Definitio
The Engine removal 'ntractor's employees (16).
eisp
rt.
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
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
Traditional procurement: measurement forms 9
ICE Conditions
a4%
9 Disputes
reference (66).
of dissatisfaction nnot
-.,
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
,-+
t
rve note to refe Arbi atioMiis to be under the Arbitration Act
.
QM-
219
9 Traditional procurement: measurement forms
ICE Conditions
This contract?
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
Traditional procurement: measurement forms 9
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
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
9 Traditional procurement: measurement forms
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
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
Traditional procurement: measurement forms 9
for is t the
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
9 Traditional procurement: measurement forms
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
5 Statutory obligations
The contractor is required to compl
notices required, and pay all fe
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
Traditional procurement: measurement forms 9
9 Disputes
225
9 Traditional procurement: measurement forms
If considering using the ICE Minor Works form renf ember that:
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
Traditional procurement: measurement forms 9
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
handle all such work under one ontra spec d, on terms previously
agreed.
in
Term Co act'.
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
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
Use
must be named under erm 'Arc itect' 'sed at all in the contract.
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'
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
Traditional procurement: measurement forms 0
JCT MTC06
-°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-
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
9 Traditional procurement: measurement forms
JCT MTC06
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). ,
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
Traditional procurement: measurement forms 9
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,
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.
231
9 Traditional procurement: measurement forms
JCT MTC06
Date (6.9).
Rights of third parties under the Contracts (Rights of Third Parties) Act 1999 are
expressly excluded (1.5).
232
Traditional procurement: measurement forms 9
JCT MTC06
9 Disputes
e- is 1
is
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
9 Traditional procurement: measurement forms
JCT MTC06
This contract?
r`t dell nclude the issuing of orders, and may include issue of
tructions, kariati icates for Progress Payments, extension of time, and
.
-+,
234
Traditional procurement: measurement forms 9
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
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'.
's a heav ent over 150 pages long, including an Appendix, with
an Annex 1 to the
_°Q
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-'
239
10 Traditional procurement: cost plus forms
JCT PCC98
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:
sub-contract works C. ;
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
Traditional procurement: cost plus forms 10
JCT PCC98
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
241
10 Traditional procurement: cost plus forms
JCT PCC98
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
Traditional procurement: cost plus forms 10
JCT PCC98
#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
<_-
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'
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 with`at 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
10 Traditional procurement: cost plus forms
JCT PCC98
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 idea`o 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
Traditional procurement: cost plus forms 10
JCT PCC98
l/1
min sub-co
v_,
en
given up to nominated su iers.
-8).
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
245
10 Traditional procurement: cost plus forms
1.0
JCT PCC98
This contract?
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
Traditional procurement: cost plus forms 10
JCT PCC98
-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
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
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
`^.
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,
fl,
import is re high. The JCT Series 2 Practice Note 6 Main Contract Tendering,
fl,
'
251
11 Design and build procurement: design and build forms
JCT DB05
J
o
ich
the
i Itl-
ate
ousra
s'o'
e for -- vhich
uranc
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-.
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;
252
Design and build procurement: design and build forms 11
JCT DB05
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
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
253
11 Design and build procurement: design and build forms
JCT DB05
esig rauura
r-.
de n
fl'
i ge
finishes, which may have re I nning p . However, there is
for site dutie that drawl are being correctly interpreted, or to see
wh subs ccommodated without injurious consequential effects.
E
'(Q
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
Design and build procurement: design and build forms 11
JCT DB05
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'
,-+
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
11 Design and build procurement: design and build forms
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
`<.
-«,
roe
an ages for each
section. All provisions relating to xamp ing for completion,
;41o
C
decision the Pm-pl oye bject Yo revie no later than 12 weeks following
practica compl on 25-
s,
_0.
oyer (2.27).
3 Control
The bar to assignment without written consent relates to the contract 'or any rights
thereunder' is a (7.1).
256
Design and build procurement: design and build forms 11
JCT DB05
The contract provides for Third Party Rights e assi ned to urcha
funders. The requirement to grant third pa y ngh to tifie i
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
4 Money
The contractor is required to provide Priced Statements; there are strict timescales to
257
11 Design and build procurement: design and build forms
JCT DB05
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+,
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
Design and build procurement: design and build forms 11
JCT DB05
5 Statutory obligations
The contractor must comply with all sta r r quir en and
required by statute (2.1). The only exceptio this tract oblig I
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
the, contr' is
Of-
caused b
required by the Co rticulars (6.5.1).
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.
259
11 Design and build procurement: design and build forms
JCT DB05
cover and the period of expiry are inserted in the Contract P ticula The ur Pr
'-r
i
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
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
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
Design and build procurement: design and build forms 11
JCT DB05
However, where the contractor is complyi n with fnploy 's ins cto
matters not covered by the Employer's Requi ements the co racto
for infringements, and any additional sum are adoed t the ntra-Lt Sum
're of
...
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
261
11 Design and build procurement: design and build forms
-
JCT DB05
262
Design and build procurement: design and build forms 11
JCT DB05
This contract?
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
>
263
11 Design and build procurement: design and build forms
JCT DB05
References
JCT Design and Build Contract Guide
JCT Design and Build Sub-Contract Guide
Sarah Lupton
Guide to D
RIBA Publis
264
Design and build procurement: design and build forms 11
ICE/D&C
Use
Entries in Part 1 of the Form of Tender Appendix will show a contractor tendering
whether quality assurance or a performance bond is required, and provide detailed
information such as commencement date, time for completion, completion by
Sections, damages, payment provisions, CDM responsibilities and arbitration
procedures. Part 2 of the Appendix will be completed by the tenderer.
265
11 Design and build procurement: design and build forms
ICE/D&C
.-«
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
The contr ave ins cted nd examined the site and surroundings,
i'°°
ph ical con' cial obstructions which could not reasonably have been
0D0
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
266
Design and build procurement: design and build forms 11
ICE/D&C
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.
esentati T'ay noti he contractor of his or her opinion, and the contractor is
.r)
The contractor is obliged to complete any outstanding work and deal with repairs
°-'
267
11 Design and build procurement: design and build forms
ICED&C
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
268
Design and build procurement: design and build forms 11
ICE/D&C
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
-r,
ten n
and th :orre tion Period (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 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,
the incorporation of these provisions into the contract, these statutory duties become
fl,
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
()) 22).
,-0
.-t
fl,
goods and materia not appear to include for design drawings which might
fl-
270
Design and build procurement: design and build forms 11
ICE/D&C
8 Miscellaneous
271
11 Design and build procurement: design and build forms
ICED&C
This contract?
d Co)-,struct Conditi
272
Design and build procurement: design and build forms 11
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
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'
wo Sta and Build version is also mainly a lump sum contract, but
,-+
ee
fl,
with constr--ttdn.
Nature
For the purposes of this book, comments will in the main focus on the Single Stage
version of the design and build contract.
In common with other GC/Works forms, this comes as a two volume pack: first the
General Conditions which run to over 80 pages, and secondly the Model Forms and
N
N
273
11 Design and build procurement: design and build forms
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
d Build provi
274
Design and build procurement: design and build forms 11
fl,
i
Proposals, it
with JCT design and ts.
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.
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+'
275
11 Design and build procurement: design and build forms
This contract?
..ten
((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
Design and build procurement: design and build forms 11
277
278
Management
procurement
Management forms
Contract
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
The Joint Contracts Tribunal Ltd
Standard Form of
Contract 1998 E
Background
t e Employer
For 'fast-track' projects where an
se e over gn, Specification
v,o
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.
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
281
12 Management procurement: management forms
JCT MC98
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+
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
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
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
282
Management procurement: management forms 12
JCT MC98
.-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
Synopsis
1 Intentions
The Manaa ment ntracto ndertak o coo erate with the professional team (1.4).
fl,
283
1 2 Management procurement: management forms
JCT MC98
2 Time
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
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
Management procurement: management forms 12
JCT MC98
4 Money
285
12 Management procurement: management forms
JCT MC98
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 4-5`aod 4.6).
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,
issues the)Final ertificate not later than two months from occurrence
of the latest of t d in the contract (4.12).
=foit
CDR
of issue.
Applications in respect of loss and expense made by a Works Contractor must be
286
Management procurement: management forms 12
JCT MC98
The Management C ntract r-+ mpowere to tak ctioM in any emergency to ensure
this w
fl'
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
12 Management procurement: management forms
JCT MC98
288
Management procurement: management forms 12
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
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+
289
l"'
12 Management procurement: management forms
JCT MC98
f
fl,
vii
fl,
erto
fl,
e
ork ma me fee.
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
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+'
Contractor. 1
290
Management procurement: management forms 12
XT MC98
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
1 2 Management procurement: management forms
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
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'
fl,
-+,
r+'
for N, to in
e even efaul perf rman e under the Works Contract (1.8).
vii
st1 to of dc
eme Contr tor. he must first notify the Architect, who has a right
,..'.
4A6-
,-+
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,
293
1 2 Management procurement: management forms
294
Management procurement: management forms 12
9 Disputes
If coKsideri`
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
12 Management procurement: management forms
296
Management procurement: management forms 12
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.
96
i, and th cons `ruction management documentation eventually
L.0
the Trade Ceiatract The is also an Invitation to Tender, a Tender document, and
rad Contractor to a purchaser or tenant, and funding organisation
297
12 Management procurement: management forms
JCT GCM
Project Cost Plan. The other Recitals refer to the fact t yet the f CD egulat I
5. Payment
onstr
putes
ht Team;
Ninth, Cost Planning-arTd-Control;
Tenth, Adjudication;
Eleventh, Arbitration.
298
Management procurement: management forms 12
JCT C/CM
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
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
12 Management procurement: management forms
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).
300
Management procurement: management forms 12
JCT GCM
:3).
The Construction Manager, w h agreerit\by lei Cori
certify practical completion in re ect ract 2):
Certificate and the Defects Liabii itv Perid ally s from the day named
in the Interim Projec tificat ce (2.2).
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
12 Management procurement: management forms
JCT C/CM
cost
oent monthly
Perio Management
ned in the Third
i
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
ce with lh-eCAM
T'S
R
---_.
The Construction Manag is to advise the Client on orders to be placed with statutory
rere
302
Management procurement: management forms 12
JCT C/CM
r+'
i ditiohs'bbv a v
to the Second Schedule.
--I
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);
The consequences of
8 Miscellaneo
Third party rights under the Contracts (Rights of Third Parties) Act 1999 are
excluded 0 -12).
303
r..
1 2 Management procurement: management forms
JCT GCM
9 Disputes
304
Management procurement: management forms 12
JCT GCM
This contract?
Scottish version.
construction and con tructi periods, erati 'e details are entered in a single
Appendix. Theiditi sin We for ctorni phases and partial possession.
!
specifically states h
has the rte erit of being logically structured, clearly laid out, and in taking
O_<
305
12 Management procurement: management forms
JCT C/CM
Related matters
Documents
Construction Management Agreement C/CM 2002
Trade Contract TC/C
tion Ma ation
306
Management procurement: management forms 12
JCT TQC
LA=
ct is re tivel conv n
dundr han to enable compatibility with C/CM, includes
rd seven A
O=-
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,
>
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
12 Management procurement: management forms
J CT TC/C
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 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).
Phased completion (2.20) and partial possession by the Client are possible (2.21).
308
Management procurement: management forms 12
JCT TGC
3 Control
The Trade Contractor must keep a person- yo site
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
12 Management procurement: management forms
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).
5 Statutory obligations
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 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).
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).
310
Management procurement: management forms 12
JCT TGC
8 Miscellaneous
A
"I).
1999 are ex cluded
9 Disputes
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
1 2 Management procurement: management forms
J CT TC/C
312
Partnering
arrangements
Partnering agreements
'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 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
d the ice vide gree to wor together in a collaborative and open manner,
Pr'
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
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+`evails
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
,-+
'greater,
o..
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
Partnering arrangements: partnering agreements 13
-
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
0)-O
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,
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
Partnering arrangements: partnering agreements 13
X12
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
13 Partnering arrangements: partnering agreements
X12
This contract?
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
Related matters
Documents
NEC3 Partnering Option: Optkon X1
First Edition (June 2001)
References
Construction Industry ouncil, wide t M Partnering
w
320
Partnering arrangements: partnering agreements 13
PPC2000
,=+
fl,
arrangement. The former cont al oblig trictly between the
_-r.
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.
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
1 3 Partnering arrangements: partnering agreements
PPC2000
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
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
Partnering arrangements: partnering agreements 13
PPC2000
s arelisted a being:
tni
mmen
nen
Consultant's Ser
th sa s;
I
323
1 3 Partnering arrangements: partnering agreements
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
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,
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).
324
Partnering arrangements: partnering agreements 13
PPC2000
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
13 Partnering arrangements: partnering agreements
PPC2000
2 Time
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
326
Partnering arrangements: partnering agreements 13
PPC2000
`.-
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).
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
13 Partnering arrangements: partnering agreements
PPC2000
The Constructor within 10 working days will then sub e Client a Comtr
Change Submission setting out the likely effects in
U57
missi ,
`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
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
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
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
Partnering arrangements: partnering agreements 13
PPC200O
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
13 Partnering arrangements: partnering agreements
PPC2OO0
he )aL rmoses
v()
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
vii
include environmental risk insurance (19.5), latent defects insurance (19.6), and whole
project insurance (19.7).
330
Partnering arrangements: partnering agreements 13
PPC2000
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
event the obligation under clause 22.1 can be amended in the Project Partnering
Agreement whereby the Constructor accepts full responsibility to the Client for the
design, supply, construction and completion of the Project including the selection and
standards of all materials, goods, equipment and workmanship, and including any
design undertaken before or after the date of the Commencement Agreement by any
331
13 Partnering arrangements: partnering agreements
PPC2000
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
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
Partnering arrangements: partnering agreements 13
PPC2000
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
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
Most standard forms have not been indi ' ually tia d. He e he pr
tracts' for sy
v,.
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
BCD r.
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
`I^
(1)
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
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
Scenario C
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
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
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.
,y:stkte basis or valuing work done. State when payments are to be made and
ocedui sinvo
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
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
is to be named u
If the landscape firm er IFC9
appropriate forms either NAM or NSC
0
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.
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.
The new ouncil office under construction at Tan-y-groes have attracted a great deal
0
341
14 Choice scenarios
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
the Tw4
spo ibil s an
ontractd is still
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
342
Choice scenarios 14
e more one
certainly been inc aseethe Contract Sum.
If the cir umstances r climate for tendering has changed markedly since the original
,l<
343
14 Choice scenarios
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
fl,
about acceptin sibility for ork al carried out and perhaps covered up,
'"'
a n be
payable ew Healt and Safety Plan might be required.
fl,
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-
c-0
procedures and adjudication option would apply. Depending on the extent and
344
Choice scenarios 14
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-
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
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
D0-
Allday fa ily h em needed
fl,
is
y,
Assuming that th archite is se Vtcesarg, no longer reclfired, and that this is a private
-.-
An excha ge of rs, or ve asic formal greement (e.g. JCT Contract for Home
fl,
a Judication and ment rovisions under the Housing Grants, Construction and
pply.
346
Bibliography
Chappell, D.
The JCT Intermediate Building Contra
rip
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
RIBA Enterprises (2006)
Sarah Lupton
Guide to IC05
RIBA Publishing (forthcoming)
Sarah Lupton
Guide to MW05
RIBA Publishing (forthcoming)
Sarah Lupton
Guide to DB05
RIBA Publishing (forthcoming)
E
MacRoberts, Solicitors
MacRoberts on Scottish uilding Co tracts
2nd edn, Blackwell Scienc t(forth omi g)
IAI
Y,1111
348
Index
349
Index
f typks
9ctor ap
BA-1 S31070
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
350
Index
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
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
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
353
Index
354
Index
Contr
management proc 6ment, 3
355
Index
ten-ftftate Bu
356
Index
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
357
Index
JCT Agreement for Housing G ant Wo ks, ediat uilding Contracts, 122
C3)
358
Index
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
--'-r ---
fl.
wntractual app;
s.co
9 IIVIIIIIIII111111113711