Contract Practice

Question 1

What are the new changes to the JCT 2024 suite?

Answer 1

Brings supplemental provisions relating to Collaborative Working, Sustainable Development and Environmental Considerations into the main term.

Updates relating to the Building Safety Act.

Increases flexibility around the use of electronic notices, gender-neutral language and allowances for extensions of time and money relating to epidemics.

Introduces a new JCT Target Cost Contract.

Question 2

What is different between NEC3 and NEC4?

Answer 2

NEC 4 is gender neutral.

Changed references to ‘Employer’ to read ‘Client’.

Introduced a Valuation Engineering percentage for price options.

In the absence of a Project Manager’s response, the programme will be deemed accepted.

NEC4 places a positive obligation on the contractor to submit a payment application.

NEC4 makes the cost for preparing compensation events recoverable.

NEC4 allows for a retention bond.

Question 3

What documents are typically found in a Traditional Contract pack?

Answer 3

Form of Contract

Drawings

Bills of Quanities

Specifications

Schedules of Work

Infomation Release Schedule

Question 4

What documents are typically found in a D&B Contract Pack?

Answer 4

Form of Contract

Employer’s Requirements

Contractor’s Proposals

Contract Sum Analysis

Bills of Quanities

Question 5

What documents are typically found in an NEC Contract Pack?

Answer 5

Form of Contract

Conditions of Contract

Contract Data

Prices, Activities Schedule, Bill of Quantities

Site Information

Works Information

Question 6

What is a collateral warranty?

Answer 6

An agreement to give a third party rights under a contract that they are not a party to.

Question 7

What is the difference between sectional completion and partial possession?

Answer 7

Sectional Completion is agreed in advance and the contractor will have a defined scope and date for completion and possession for each section. With LADs applicable to each section.

Partial Possession is more flexible, is not pre-planned and may occur while works are ongoing. Any part given up for Partial Possession is deemed to have achieved Practical Completion, the retention must be released, the defects liability part commences and LADs are reduced appropriately. The client become responsible for that part and must secure and insure it.

The Contractor can refuse partial possession.

An alternative is for the Client to ‘use or occupy’ the works, where the possession remains with the Contractor.