JCT DB 16 Flashcards
What are the differences/changed between 2011 and 2016?
- an extension of (Works) Insurance Option C to allow alternative solutions
- inclusion of provisions for the grant of Performance Bonds and Parent Company Guarantees
- 28-day window to respond to loss and expense
- IVD introduced 7 days prior to the due date
- IVD is every month after PC, previously every 2 months
What sections does the AGREEMENT refer to?
- Recitals
- Articles
- Contract Particulars
- Attestation
What is included in the recitals?
Explanatory, scene-setting in nature.
1 - description of works
2- In response to the ERs the contractor has provided the CPs and CSA
3 - employer has examined the CPs and is satisfied they meet ERs
What section of the recitals is the client required to fill?
1 - description of the works ONLY
5 - [if the work is not sectioned, reference to work being sectioned in item 5 should be removed]
What are the articles?
State obligations, identify parties and dispute resolution
1 - Contractors oblibations 2- Contract Sum 3 - EA 4 - Location of ERs and CPs 5 - Principal designer 6 - Principal contractor 7 - Adjudication 8 - Arbitration 9 - Legal proceedings
What are contract particulars?
A schedule of variables used to “fill the gaps” in the conditions of contract.
What sections of the articles need to be filled in?
2 - Contract Sum
3 - Empoyer’s Agent
5 - Principal Designer
6 - Principal Contractor
What is attestation?
The action of being a witness to or formally certifying something.
Declaring that the contract is genuine
What are the two ways a contract can be executed in the attestation section?
- Under hand (simple contract)
- As a deed
What are the limitation periods for a contract executed under hand vs as a deed?
Under hand = 6 years
As a deed = 12 years
How are collateral warranties between the third party and the contractor executed?
The mode (under hand or as a deed) will reflect that in the main contract, as will the limitation period.
What is included in Contract Particulars?
- Section description and values
- References/identifiers for ERs, CPs and CSA
- Whether arbitration apply/do not apply
- base date
- date of possession of site
- Limit of liability for loss
- Liquidated damages (amount per [week/day])
- Rectification period
- Fluctuation provision
- Method of payment
- IVD
- Retention percentage
for more I would refer to the contract
What is the contracts position on arbitration if neither entry is deleted?
Article 8 and clauses 9.3 to 9.8 DO NOT APPLY
What is the default length of time for the rectification period?
6 months
What is the default fluctuation provision?
JCT fluctuations Option A
What are the payment alternatives?
Alternative A - Staged payments
Alternative B - Periodic payments
What is the default payment position?
Alternative B
What date in the contract dictated the payment cycle?
Interim Valuation Date, NOT Due Date
How are contracts executed under hand?
- Parties or authorised representatives sign in the presence of a witness
- witness signs and sets out his name and address below each party signature
How are contracts executed as a deed?
Separate page for Employer and Contractor
Four methods:
A) signed by two directors or director and company secretary
B) affixing company’s common seal in presence of a director and the Company Secretary or two Directors or other duly authorised officers
C) signed by a single director in the presence of a witness who attests the signature
D) Where the employer or contractor is an individual, he may sign in the presence of a witness who also signs and sets out name and address
What are the sections in the conditions of contract?
1 - Definitions and Interpretation 2 - Carrying out the works 3 - Control of the works 4 - Payment 5 - Change 6 - Injury, damage and insurance 7 - Assignment, performance bonds and guarantees, collateral warranties and third party rights 8 - Termination 9 - Settlement of Disputes
What does section 2 “Carrying out the works” cover?
- Contractors obligations
- Transfer of possession to contractor and control of site up to PC
- Discrepancies and divergences
- Liability in respect of contractors design work
- Unfixed materials and goods
- Adjustment to Completion Date
- PC, lateness and LDs
- Partial possession
- Defects
- Contractor’s Design Documents (CDD)
What is the general obligation of the contractor?
Carry out and complete the Works in a proper and workmanlike manner in compliance with the Contract Documents, Cons Phase Plan, Statutory requirements
and complete design for the works in compliance with the requirements in the ERs/CPs
How long must the contractor insure the site for?
from possession up to and including the date of PC
Can the client defer possession of the site?
If the CPs say clause 2.4 applies, yes, not exceeding 6 weeks.
What happens in the case of an error, discrepancy or divergence discovered in the Contract Documents?
Contractor must notify the Employer immediately with their proposed amendment.
Employer will issue an instruction to rectify
Who is responsible for the cost of errors in Contract Documents?
The responsibility lies with the party that is responsible for the document in question; e.g.
ERs (that are not dealt with in CPs) = employer
CPs/CDD/CSA = contractor