The JCT Standard Building Contract 2011: An Explanation and Guide for Busy Practitioners and Students

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.