JCT contracts Flashcards
liquidated damages notices
Under most JCT forms of building contract, before the employer can deduct or claim liquidated damages for delay, it must issue, first, a ‘WARNING NOTICE’.
To state that the employer may require payment of, or may withhold or deduct, liquidated damages;
and secondly a ‘DEDUCTION NOTICE’ confirming that it requires the contractor to pay liquidated damages and/or will withhold or deduct liquidated damages.
CASE LAW
Grove Developments Ltd v S&T (UK) Limited
Procurement type
- Traditional - client/designer & builder.
- Design and build - builder responsible for both design and building.
- Management.
NB: With management contracts, the client appoints a full professional team and a management contractor who is responsible for managing the carrying out of the works.
The management contractor does not directly undertake any of the construction work, which is broken down into packages and carried out by works contractors.
types of contract
Lump sum.
Measurement contracts.
Cost Plus contracts. (eg 20% on top for overheads and profit)
How do I select contracts?
Depends on;
whether domestic or commercial
the cost of project.
LD’s to be applied?
Is there design, who is responsible?
Any amendments to JCT
Can have an impact on other sections, so beware and seek advise.
JCT contracts for smaller, more straightforward projects
seek to avoid, and DO NOT recognise, a need for any ancillary documents.
Are there any Resources to decide on type of contract?
Yes, JCT have a flowchart and document on appropriate selection of contracts.
Intermediate Building Contract
This contract is more detailed and contains more extensive control procedures than the Minor Works Building Contract (MW).
Not suitable where the Contractor is to design discrete part(s) of the works
Minor Works Building Contract
where the work involved is simple in character.
Not suitable where the Contractor is to design discrete part(s) of the works.
what is the extension of time clause?
Extension of time clauses are included in building contracts to prevent ‘time becoming at large’.
They give the CA power to extend time for delays which are the result of actions or inactions on the part of the employer or the architect as well as for other reasons for which neither employer nor contractor are responsible.
why would a contractor seek extension of time?
Limit LD’s & seek to recover loss of costs/expenses.
Who issues an extension of time?
The CA/ architect
Issuing EOT
If there is a delay to completion caused by a Relevant Event, then the Architect/CA must give a notice in writing setting out a “fair and reasonable” extension of time.
The notice should be given as soon as the Architect/CA is able to estimate the length of the delay to the completion date.
If the Architect/CA does not consider that completion is delayed or that the cause was a Relevant Event, he does
not have to give a notice stating this.
Reasons for an EOT?
Adverse weather conditions;
force majeure;
employer’s failure to give access to the site;
compliance with employer’s instructions;
acts of prevention by the employer.
