The JCT 05 Standard Building Contract, Second Edition

1 The JCT 05 Standard Building ContractLaw and Administration This page intentionally left blankThe JCT 05 Standard Building contract Law and Administration Second Edition Issaka Ndekugri Michael Rycroft AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORDPARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYOB utterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP, UK 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA First published by Arnold as The JCT 98 Building contract : Law and Administration, 2000 Reprinted 2006 Second Edition , 2009 Copyright 2000, 2009 Elsevier Ltd.

2 All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier s Science & Technology Rights Department in Oxford, UK: phone ( 44) (0) 1865 843830; fax ( 44) (0) 1865 853333; email: Alternatively you can submit your request online by visiting the Elsevier web site at , and selecting Obtaining permission to use Elsevier material Notice No responsibility is assumed by the publisher or the authors for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein.

3 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN: 978-1-8561-7629-3 For information on all Butterworth-Heinemann publications visit our web site at Typeset by Macmillan Publishing Solutions( ) Printed and bound in United Kingdom 09 10 11 12 13 10 9 8 7 6 5 4 3 2 1 ContentsPreface to Second Edition xxiPreface to First Edition xxiiiGlossary of Latin terms xxvAbbreviations xxvii1.

4 Style of JCT 05 Standard Building contract , contract execution and related problems Standard form contracts generally The Joint Contracts Tribunal Limited JCT 05: Use, style and criticism Use of JCT 05 Style of JCT 05 Criticism of JCT 05 Scope of this book JCT 05 Standard Building contract , With Quantities Documents forming the contract JCT 05: the printed form Contents Articles of Agreement Recitals, Articles, contract Particulars, Attestation Conditions Schedules contract Drawings Bills of Quantities Documents related to Contractor s Designed Portion (where applicable) Employer s Requirements Contractor s Proposals CDP Analysis Other documents: Standard Method of Measurement Other documents: Adjudication Agreements Other documents: Model Arbitration Rules Other documents.

5 Sundry descriptive documents 21vi Preparing the contract Documents Generally Agreement, contract Particulars, Schedules Articles of Agreement Recitals Articles contract Particulars Part 1: General contract Particulars Part 2: Third Party Rights and Collateral Warranties Attestation Conditions Drawings and Bills of Quantities Drawings Bills of Quantities Optional documents Amending the Standard contract Form Generally Amendment by introduction in the Bills and other documents Amendments to the printed Standard form Amendments to the Conditions in breach of the Construction Act 1996 Amendments and additions in breach of the unfair contract terms Act 1977 Amendments to alter periods under the Limitation Act 1980 Custody of contract Documents When things go wrong Two versions of a drawing revision.

6 The wrong version of which is signed contract Drawings listed do not correspond with Drawings signed Failure to complete the contract Documents Failure to complete the formalities Discrepancies Forming a contract and the Battle of Forms Letters of intent and the right to payment Letters of intent: meaning and effect Generally Letters of intent and Standard form contracts Letters of intent: right to payment Right to payment: introduction Quasi- contract and restitution What is quantum meruit? 662. Participants in the project and their roles under the contract The Employer Express contractual duties Implied contractual duties 74 Contents Duty not to interfere with the discretion of the Architect or Quantity Surveyor Rights of third parties The Employer as client under the Site Waste Management Plans Regulations The Employer s Representative The Contractor Materials and workmanship The common law position The contractual position Substitution of materials required under the contract The Contractor s duty to give notices The Contractor s design responsibility The Contractor s CDP

7 Obligations The Contractor s duty to warn Duty to comply with Architect s Instructions (AIs) Duties relating to the Contractor s master programme The Society of Construction Law s Protocol The contractual status of the Contractor s programmes Statutory Requirements Divergence in contractual requirements Unauthorized variations to comply with Statutory Requirements Duty to indemnify the Employer Insurance obligations Duties with respect to assignment and sub-contracting Obligations in respect of other contractors of the employer The principal contractor under the Site Waste Management Plan Regulations The Architect Duty to provide drawings.

8 Instructions and other information Items in the Information Release Schedule Information not listed in the Information Release Schedule Information from other designers Claims for delayed drawings and other information Quality control duties Evidence of Architect s satisfaction and appropriate materials and goods Inspection and testing Removal of non-conforming work and materials Acceptance of non-conforming work Variations and other instructions Defective work and Interim Certifi cates Exclusion of persons Withholding the Practical Completion Certifi cate Construction Skills Certifi cation Scheme 107viii The extent of the Architect s duty to supervise/inspect Certifi cation duties Duty to report on failings of other members of the design team Standard of skill and care expected of the Architect Liability of the Architect to the employer Liability of the Architect to the Contractor and other third parties The Quantity Surveyor Designers The Person-in-Charge (PIC) The Clerk of Works (COW) Suppliers and sub-contractors Joint liability 1173.

9 JCT 05 timetable Possession of site General principles Possession of site under the JCT 05 Completion Date Practical Completion Certifi cate Meaning of practical completion Effect of the Practical Completion Certifi cate Non-Completion Certifi cate Rectifi cation Period Liability for defects that appear during the Rectifi cation Period Defects after the Rectifi cation Period Consequential loss from defects Variations after practical completion? Certifi cate of Making Good Final adjustment of the contract Sum Final Certifi cate Conditions precedent to a valid Final Certifi cate Timetable for issue of the Final Certifi cate Payment on the Certifi cate Effect of Final Certifi cate Role of the Architect Adjustment of the contract Sum and claims Quality Adjudication, arbitration or other proceedings Dormant Proceedings Partial possession Early use/occupation by the Employer 1394.

10 Contractor designed work General Contractor s Designed Portion Works (CDP Works) Introduction 141 Contents CDP Documents: Employer s Requirements CDP Documents: Contractor s Proposals CDP Documents: Analysis Employer s response to Contractor s Proposals Execution: Contractor s Design Submission Procedure (Schedule 1) Execution: Integration into Architect s design Execution: Divergence and discrepancies Execution: Variations Specifi cation by performance Liability for design and installation Common law Standard : fi tness for purpose Reasonable skill and care JCT 05 Express obligation JCT 05 Liability for Employer s design, and obligation to check 1585.