JCT Mechanisms Flashcards
Divergence from Statutory Requirements?
Contractor notify as soon as aware
CA issue Instruction within 7 days
Notice of delay?
Contractor notify as soon as apparent
CA up to 12 weeks give final determination
Contractor must constantly give further updates of information and progress works to best endeavours
Defects Period - notification by CA?
CA must notify defects no later than 14 days after Rectification period expiration
Collateral Warranties? (Subcontractors)
Executed and delivered by subcontractor within 14 days of receipt of contractor’s notice requiring execution
Named sub-contractors? (When enter into subcontract)
After entering into main contract, contractor within 21 days must enter into sub-contract with Named Subcontractor.
Instructions compliance?
Contractor within 7 days give notice of not complying
If CA issue ‘Notice of Compliance’ and contractor not comply within 7 days, CA can opt for an alternative person
Not in accordance, works?
Contractor 7 days [to rectify?], CA issue further notice, Contractor 10 days [to rectify?], CA [final notice?] 7 days, no resolution - dispute
Due Dates and Certificates?
Contractor issue valuation submission
7 days later the Due date
5 days later the Payment Certificate
14 days later - final date for client to make payment
5 days before final date for payment - Pay Less Notice
What is the Payment Notice?
What if not issued within timeline?
CA Payment Certificate (issued 5 days after Due date)
Not issued (but contractor did make a submission) - Contractor’s submission becomes valid
Not issued (but contractor did not make a submission) - Contractor submission then submitted becomes valid, but payment date extended to cover delay
Suspension for non-payment?
Failure not to pay 7 days after contractor notification, then contractor can suspend works.
Loss & Expense?
Contractor notify (as soon as becomes apparent - this is for EoT!)
Then costs submitted
Further submissions/updates as required
CA initial assessment within 28 days with subsequent amounts of 14 days allowing the contractor to understand/identify the difference
Final Adjustment?
Is the below different to that if an other flash card?
Not later than 6 months after PC the contractor submits all documentation needed for adjustment
Not later than 3 months after submission, the CA ascertains the adjustment and issues Statement
If contractor does not submit documentation within the 6 months after PC?
CA gives 1 month notice
If still no submission - CA makes assessment based on information in possession.
Final Certificate?
Issued by CA no later than 28 days AFTER the latest of the following:
-End of Rectification Period
-Date of Issue of the Making Good certificate
-Date on the Statement of Adjustment [ref earlier flashcard] [Note - this would only be the ‘latest’ if Rectification period was only 3 or 6 months, not 12 months]
Final payment?
‘Due’ date - the date of issue of the Final Certificate [earlier flashcard]
If Final Certificate not been issued, then the latest date on which it should have been issued
Daywork Vouchers?
Authorized no later than 7 business days after works executed
Loss or damage, existing structures?
Right of Termination - Notice given to the other within 28 days
If countered within 7 days then a dispute
Collateral Warranties: Rights Particulars?
Document that states the Collateral Warranties that are required
Contractor enter into warranty within 14 days of notification [either subcontractor or beneficiaries]
Termination [Notice] by Employer (contractor default)?
CA issues notice of default
14 days for contractor to respond
If no response and rectification/resolution not achieved within 21 days - Employer can Terminate by further notice
If the default rectified/resolved, any further defaults by the contractor - Employer can Terminate straight away
Termination [Notice] by Employer (contractor insolvency)?
CA can Terminate any time, even before issue of any termination notice - Employer can take reasonable measures to protect site
Final Account after Termination by Employer (completing the works)?
Final Account within 3 months after completion of the works and making Good Defects
Issued by Certificate - the ‘Notional’ Final Account
Final Account after Termination by Employer (not completing the works)?
Within 6 months of Termination, a notification
Then a ‘Notional’ Final Account
If no notification, then 8 months to issue the ‘Notional’ Final Account
Termination by Contractor (Employer default or insolvency)?
The processes as for Termination by the Employer, however, in relation to:
suspension: - taking in to account the suspension period identified in the contract.
Termination by Either Party (no Party at fault)?
Suspension period identified in the contract, then notice given by either party to Terminate
If no notice - then Termination 7 days after end of suspension period.
