Books about construction contracts tend to be dense and wordy, but what most architects, quantity surveyors, project managers, builders and employers are looking for is an easily navigable, simple guide to using a contract, written in plain language.
The JCT Standard Building Contract 2011 is an uncomplicated book about a complex and commonly used contract. It straightforwardly and concisely sets out exactly what the contract requires in various circumstances, as far as possible without legal jargon and without assuming any particular legal or contractual expertise from the reader. It explains, often from first principles, exactly what is meant by a contract and why certain clauses, such as extension of time clauses or liquidated damages clauses are present and more importantly, what they mean. The book is divided into many chapters, each with many sub-headings, to make it easy to read and to help readers to find relevant explanations quickly. Tables and flowcharts are used to ensure clarity and most chapters include a section dealing with common problems.
- Covers the recently issued JCT Standard Building Contract 2011
- Straightforward, concise, and as far as possible free of legal jargon
- Sets out exactly what the contract requires in various circumstances
- Includes many tables and flowcharts to ensure clarity
Table of Contents:
Preface xiv Abbreviations used in the text xvi
Notes before reading xvii
Part I Preliminaries 1
1 Introduction 1
1.1 What is a contract? 1
1.2 Purpose of building contracts 4
1.3 Types of construction contracts 4
1.4 Characteristics of a standard form 7
1.5 Commonly used contracts 9
1.6 Important background to SBC 11
1.7 SBC and variants 11
2 Basic matters 13
2.1 Works 13
2.2 Drawings 13
2.3 Specification 14
2.4 Schedules 15
2.5 Bills of quantities 15
2.6 The Standard Method of Measurement 16
2.7 Privity of contract and the Third Party Act 17
2.8 Third party rights and collateral warranties 18
2.9 Base Date 19
2.10 Common problems 20
3 About the contract documents 23
3.1 What constitutes the contract? 23
3.2 What are articles and recitals? 24
3.3 How to complete the contract form 25
3.4 Priority of documents 29
3.5 Errors, discrepancies and divergences 30
3.6 Custody and copies 34
3.7 Limits to use 35
3.8 Reckoning days 35
3.9 Certificates, notices and other communications 36
3.10 Applicable law 37
3.11 Common problems 37
4 Related matters 40
4.1 The Housing Grants, Construction and Regeneration Act 1996 as amended 40
4.2 Entire contracts 42
4.3 Express and implied terms 43
4.4 Limitation periods 44
4.5 Letters of intent 46
4.6 Quantum meruit 47
4.7 Limited companies 48
4.8 Bonds 49
4.9 Common problems 51
Part Ii Participants 53
5 The architect’s powers and duties 53
5.1 What the architect can do or must do 53
5.2 Specific requirements under the JCT contract 54
5.3 Powers 54
5.4 The architect’s design role under SBC 54
5.5 The architect as agent for the employer 61
5.6 No power to direct contractor 62
5.7 Issue of certificates 63
5.8 The issue of instructions 66
5.9 Instructions in detail 70
5.10 Issue of information 70
5.11 Duties under the contract 73
5.12 General duties 77
5.13 Does the architect have any duty to the contractor? 79
5.14 Common problems 79
6 The contractor’s powers and duties 82
6.1 What the contractor can do or must do 82
6.2 Person-in-charge 82
6.3 Access to the Works and premises 82
6.4 Carrying out the Works 96
6.5 Levels and setting out 98
6.6 Workmanship and materials 98
6.7 Contractor’s master programme and other documents 100
6.8 Statutory obligations 103
6.9 Antiquities 104
6.10 Drawings, details and information 104
6.11 Compliance with architect’s instructions 106
6.12 Suspension of performance 107
6.13 Does the contractor have a duty to warn of design defects? 108
6.14 Common problems 108
7 The employer’s powers and duties 110
7.1 What the employer can or must do 110
7.2 Express and implied powers and duties 110
7.3 General powers 115
7.4 General duties 122
7.5 Common problems 123
8 Consultants 125
8.1 General points 125
8.2 Quantity surveyors 126
8.3 Employer’s representative/project manager 128
8.4 Structural engineers, mechanical engineers and others 129
8.5 Common problems 129
9 The clerk of works 131
9.1 Method of appointment 131
9.2 Duties 131
9.3 Snagging lists 132
9.4 Defacing materials 132
9.5 Common problems 133
10 Sub-contractors and suppliers 134
10.1 General 134
10.2 Assignment 135
10.3 Sub-contracting 136
10.4 Listed sub-contractors 138
10.5 Named specialists 139
10.6 Common problems 140
11 Statutory authorities 143
11.1 Work not forming part of the contract 143
11.2 Statutory authorities in contract 143
11.3 The CDM Regulations 2007 145
11.4 Common problems 147
Part Iii Work in Progress 149
12 Insurance 149
12.1 Why insurance? 149
12.2 Types of insurance in the contract 149
12.3 What is an indemnity? 150
12.4 Injury to persons and property 151
12.5 Things that are the liability of the employer 152
12.6 Insurance terms 153
12.7 Insurance of the Works: alternatives 154
12.8 A new building where the contractor is required to insure 155
12.9 A new building where the employer insures 156
12.10 Alterations or extensions to an existing building 157
12.11 Benefits for sub-contractors 158
12.12 The Joint Fire Code 158
12.13 Terrorism cover 159
12.14 Common problems 159
13 Possession of the site 161
13.1 General 161
13.2 Date of possession 162
13.3 Common problems 163
14 Extension of time 165
14.1 Basics 165
14.2 Extension of time 166
14.3 Grounds 168
14.4 Procedure 177
14.5 Important conditions 186
14.6 Common problems 188
15 Liquidated damages 190
15.1 What are liquidated damages? 190
15.2 Procedure 191
15.3 Common problems 193
16 Financial claims 195
16.1 Loss and expense claims 195
16.2 Procedure 196
16.3 Effect on regular progress 200
16.4 The architect’s opinion 201
16.5 Ascertainment 202
16.6 Reimbursement under other contract provisions 203
16.7 Relevant matters forming the basis of a claim 203
16.8 Certification of direct loss and/or expense 207
16.9 Contractor’s other rights and remedies 208
16.10 Common problems 208
17 Architect’s instructions 210
17.1 Purpose 210
17.2 Scope 210
17.3 Common problems 216
18 Variations 219
18.1 What is a variation? 219
18.2 Does extra work always involve payment? 221
18.3 Valuation 222
18.4 Treatment of approximate quantities, defined and undefined provisional sums 227
18.5 If the conditions for carrying out other work are altered 228
18.6 Valuation of obligations and restrictions 229
18.7 Schedule 2 quotations 229
18.8 Acceleration 231
18.9 Daywork 232
18.10 Valuation of contractor’s designed portion 233
18.11 Common problems 233
19 Payment 235
19.1 The Contract Sum 235
19.2 Valuation 237
19.3 Method and timing 239
19.4 Payment procedure 240
19.5 Retention 243
19.6 Final payment 245
19.7 The effect of certificates 248
19.8 Off-site materials 250
19.9 Fluctuations 251
19.10 Common problems 252
20 Contractor’s design 254
20.1 Contractor’s Designed Portion (CDP) 254
20.2 Documents 254
20.3 The contractor’s obligations 255
20.4 Liability 258
20.5 Variations 259
20.6 Insurance 260
20.7 Common problems 261
Part Iv Closing Stages 263
21 Practical completion 263
21.1 Definition 263
21.2 What the contract says 263
21.3 Consequences 265
21.4 Partial possession and sectional completion 265
21.5 Common problems 267
22 Defects liability 269
22.1 During construction 269
22.2 Rectification period 271
22.3 Definition 271
22.4 Defects, shrinkages or other faults 271
22.5 Frost 272
22.6 Procedure 272
22.7 Common problems 275
23 Termination 276
23.1 General points 276
23.2 Termination by the employer 278
23.3 Grounds: contractor’s defaults 279
23.4 Grounds: insolvency of contractor 282
23.5 Grounds: corruption 283
23.6 Grounds: neutral causes 283
23.7 Grounds: insurance risks and terrorism cover 284
23.8 Consequences of termination for contractor’s default or insolvency 285
23.9 Consequences of termination for neutral causes or insurance risks 288
23.10 Termination by the contractor 288
23.11 Grounds: employer’s defaults 288
23.12 Grounds: insolvency of employer 292
23.13 Grounds: neutral causes 293
23.14 Grounds: insurance risks and terrorism cover 293
23.15 Consequences of termination for employer’s default, neutral causes or insolvency of the employer, etc. 293
23.16 Consequences of termination for insurance risks 294
23.17 Suspension of the Works by the contractor 295
23.18 Common problems 295
Part V Intractable Problems 297
24 Dispute resolution procedures 297
24.1 General 297
24.2 Adjudication 301
24.3 Arbitration 310
24.4 Legal proceedings (litigation) 317
24.5 Mediation 317
24.6 Common problems 317
Notes and references 319
Table of cases 330
Subject index 339
Clause number index to text 346
About the Author :
David Chappell BA(Hons Arch), MA(Arch), MA(Law), PhD, RIBA has 50 years of experience in the construction industry. David has worked as an architect in the public and private sectors, as a contracts administrator, as a lecturer in construction law and contracts procedure and as a construction contracts consultant. He was Professor of Architectural Practice and Management Research at The Queen’s University of Belfast and Visiting Professor of Practice Management and Law at the University of Central England in Birmingham. The
author of many books for the construction industry, he is Director of David Chappell Consultancy Limited, is a specialist advisor to the RIBA and RSUA and regularly acts as an adjudicator.
