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Interest payable is 5% per annum over the official dealing rate of the Bank of
England payable by employer if late until payment is made.
INSURANCE joint names for existing structures can be difficult to obtain. In which
case rely on employers own insurance and notify insurer, there may be an additional
premium.
Each party should seek advice from insurers before signing the contract.
LADS a genuine pre-estimate of losses that he is likely to suffer = must be a
certificate of non completion.
Provisional sum = sum included for work which may or may not be carried out, or
cannot be accurately specified in the original contract documents.
Allow X to carry out external decorations. = employer not sure what he wants yet.
If the employer decides he wants the decs done the CA and contractor agree a price
or the CA values the work.
Variation - a change the work, addition, omission, change of order or duration.
JCT 2011 Minor Works contract
Inside cover contract is suitable for: simple nature, designed by employer. CA, not
suitable for BILLS, named specialists, detailed control procedures. Contractors
design
Contents
Articles of agreement date, employer and address and contractor address
Recitals description of work at
Contract docs drawings, specification, schedules
Contractor has priced specification? Or SORs?
Finance Act 2004 is the employer a contractor at the base date? 7 days before
tender issue.
CDM notifiable?
Framework agreement?
Supplemental provisions in the schedule collaborative working etc
Articles obligations Contractor to carry out the works in accordance with the
docs.
Employer to pay the contract sum at the times and in the manner specified in the
conditions VAT exclusive sum of x or such other sum as shall become payable. CA
is .of.. if dies employer nominates new CA but cannot override previous
decisions/certificates.
CDMC
Principal Contract as defined by the CDM2007
Adjudication
Arbitration
Litigation is the standard must change to Arbitration if required.
Contract Particulars
Base date
CIS contractor or not?
CDM Regulations = notifiable?
Framework agreement?
Supplemental provisions?
Arbitration
CDM planning period
Date for Commencement of the Works
Date for completion
Liquidated damages
Rectification period
Retention
Supply of documentation for final cert amount 3 months
Fluctuation options = contribution, levy and tax changes
Percentage addition for fluctuations option
Contractors insurance = injury to persons or property insurance cover (for any one
occurance or occurances arising from one event) x
Insurance of the Works etc. works insurance by contractor in joint names
Works and existing structures insurance by employer
in joint names
Existing structures insurance by employer in own name
Percentage to cover professional fees (15%) by default.
Adjudicator and nominating body.
Arbitration
Attestation under hand as a deed
Conditions
Section 1 definitions and interpretation
Articles of Agreement = recitals, articles, particulars, attestation.
Conditions are all the clauses. Section 1 thro 7
Then schedules
All Risks Insurance = against the work executed and site materials.
Joint Names Policy =
Scheme for Construction Contracts Regulations 1998 = Adjudication
Collateral Warranty are between a funder and a subcontractor as a deed because
there is no consideration to pay. It creates contractual relationships between those
not party to the main contract.
Warrantor promises to carry out obligations under main contractor.
Liability restriction = no more liable than under main contract
Prohibited materials list
Requirement to maintain insurance
Provision to allow assignment of warranty
Copyright license
Funders can step in to take over main contract
Requirement to supply further warranties
Liability caps, net contribution clauses, .
Contracts (rights of 3rd party) Act 1999. Do not apply. A 3rd party cannot enforce a
term of the contract as it is not intended within the contract.
Specified Perils = fire, lightning, explosion, storm , flood, escape of water from tank,
apparatus or pipe, earthquake, aircraft, aerial, riot, civil commotion, but excluding
excepted risks.
Excepted Risks = radiation, nuclear, pressure waves from aircraft or supersonic
speeds.
Everything in writing
No third party rights conferred
Employer ensures CDMC carries out his and the contractor contruction phase plan
and welfare facilities and info for File
If employer replaces CDMC or PC then contractor must comply with CDMregs at no
cost or EOT.
SECTION 4 Payment
Contract sum exclusive of VAT
CIS is the employer a contractor? If so then you have to make deductions to
HMRC and give subbies notice.
Due dates for payments at intervals of 4 weeks calculated from the date for
commencement of the works. Not later than 5 days after each due date the CA to
issue an interim certificate for a sum equal to the percentage stated in the contract
particulars of what he considers to be the total value as at the due date
1. Work properly executed
2. Materials and goods on site adequately protected
Less the total of sums stated as due in previous interim certs.
Must say sum due from employer and the basis for calculation. The final date for
payment must be 14 days from the due date.
Due date after PC shall be 7days after PC/ payment within 14 days of the due date.
Thereafter interim certs issued at period of 2 months.
If interim cert not issued within 5 days contractor can give payment notice to CA
stating sum due at due date. And the basis for calculation.
Final date for payment postponed by how many days later than the 5 day period the
contractor has served their payment notice.
If the employer wants to pay less than the interim cert or the contractor payment
notice then not later than 5 days before final date for payment issue a pay less notice
(even if zero)
Interest due at 5% plus Bank of England rate.
If interest paid Contractor can still suspend performance or terminate.
If not paid, contractor can give notice of his intention to suspend performance of his
obligations under the contract (and grounds) to employer AND CA, if nothing for 7
days after notice, contractor can suspend until payment made IN FULL.
Contractor entitled to an additional reasonable amount of his costs due to this
exercise of his right to suspend. Apply to CA and detail to ascertained and included
in next payment if legit.
FINAL certificate and final payment.
Contractor to supply enough info to CA within period stated in particulars to enable
computation of the final account. Due date shall be 28 days after receipt of docs or if
later the date on the certificate of making good defects.
Not later than 5 days after due date CA to issue final certificate certifying sum due to
either employer or contractor and basis for calculation.
Final date for payment shall ne 14 days after due date.
FLUCTUATIONS
SECTION 5 Injury, Damage, and Insurance
All structural elements of a building can safely carry the loads expected to be
placed on them.
Foundations are adequate for any movement of the ground (landslip,
subsidence).
Large buildings are strong enough to survive an explosion without collapsing.
Part F Ventilation
1. Adequate ventilation must be provided to bathrooms, kitchens, shower rooms,
sanitary accommodation and other habitable rooms (domestic and nondomestic).
2. Roofs need to be well vented or designed to prevent moist air causing
condensation damage.
Part G Hygiene
3 aspects
1. Buildings are required to have satisfactory sanitary conveniences and
washing facilities.
2. All dwellings to have a fixed bath or shower with hot and cold water.
3. Unvented hot water systems over a size to have safety provisions to prevent
explosion.
2.
3.
4.
5.
6.
2.10.2