Building Contract Dictionary, Third Edition

442 Pages·2001·5.729 MB·English

by  David Chappell, Derek Marshall, Vincent Powell?Smith, Simon Cavender(auth.)

Building Contract Dictionary
Also of interest
The JCT Intermediate Form of Contract
Second Edition
David Chappell & Vincent Powell-Smith
0-632-03965-5
The JCT Design and Build Form
Second Edition
David Chappell & Vincent Powell-Smith
0-632-04899-9
The JCT Minor Works Form of Contract
Second Edition
David Chappell & Vincent Powell-Smith
0-632-03967-1
Powell-Smith & Sims’ Building Contract Claims
Third Edition
David Chappell
0-632-03646-X
Parris’s Standard Form of Building Contract
Third Edition
David Chappell
0-632-02195-0
Building Contract Dictionary
Third Edition
David Chappell
Derek Marshall
Vincent Powell-Smith
Simon Cavender
Foreword by His Honour Judge Peter Bowsher QC
#D.Chappell,D.Marshall,S.Cavender&the DISTRIBUTORS
EstateofVincentPowell-Smith2001
MarstonBookServicesLtd
BlackwellScienceLtd POBox269
EditorialOffices: Abingdon
OsneyMead,OxfordOX20EL OxonOX144YN
25JohnStreet,LondonWC1N2BS (Orders: Tel:[phone]
23AinsliePlace,EdinburghEH36AJ Fax:[phone])
350MainStreet,Malden
MA021485018,USA USA
54UniversityStreet,Carlton BlackwellScience,Inc.
Victoria3053,Australia CommercePlace
10,rueCasimirDelavigne 350MainStreet
75006Paris,France Malden,MA02148-5018
(Orders: Tel:[phone]
OtherEditorialOffices: 7813888250
Fax:[phone])
BlackwellWissenschafts-VerlagGmbH
Kurfu¨rstendamm57 Canada
10707Berlin,Germany LoginBrothersBookCompany
324SaulteauxCrescent
BlackwellScienceKK Winnipeg,ManitobaR3J3T2
MGKodenmachoBuilding (Orders: Tel:[phone]
7-10KodenmachoNihombashi Fax:[phone])
Chuo-ku,Tokyo104,Japan
Australia
IowaStateUniversityPress BlackwellSciencePtyLtd
ABlackwellScienceCompany 54UniversityStreet
2121S.StateAvenue Carlton,Victoria3053
Ames,Iowa50014-8300,USA (Orders: Tel:[phone]
Fax:[phone])
TherightoftheAuthortobeidentifiedasthe
AuthorofthisWorkhasbeenassertedin Acataloguerecordforthistitleisavailablefrom
accordancewiththeCopyright,Designsand theBritishLibrary
PatentsAct1988.
Allrightsreserved.Nopartofthispublication ISBN0-632-03964-7
maybereproduced,storedinaretrievalsystem,or
transmitted,inanyformorbyanymeans, LibraryofCongressCataloging-in-Publication
electronic,mechanical,photocopying,recording Data
orotherwise,exceptaspermittedbytheUK Buildingcontractdictionary/DavidChappell...
Copyright,DesignsandPatentsAct1988,without [etal.].–3rded.
thepriorpermissionofthepublisher. p.cm.
Rev.ed.of:Buildingcontractdictionary/
FirstEditionpublishedbyTheArchitecturalPress VincentPowell-SmithandDavidChappell.
1985 1985.
SecondEditionpublishedbyLegalStudies& Includesbibliographicreferences.
Services(Publishing)Ltd1990 ISBN0-632-03964-7
ThirdEditionpublishedbyBlackwellScience 1.Contructioncontracts–GreatBritain–
2001 Dictionaries.I.Chappell,David.II.
Powell-Smith,Vincent.Buildingcontract
SetinTimesandproducedbyGrayPublishing, dictionary.
TunbridgeWells,Kent
PrintedandboundinGreatBritainby KD1641.A68P692001
MPGBooksLtd,Bodmin,Cornwall 343.410078624003–dc21 2001035006
TheBlackwellSciencelogoisa Forfurtherinformationon
trademarkofBlackwellScienceLtd, BlackwellScience,visitourwebsite:
registeredattheUnitedKingdom www.blackwell-science.com
TradeMarksRegistry
PREFACE
It is just over ten years since the second edition of this book was published. It was
conceived as a handy reference for architects, quantity surveyors and other
construction professionals as well as for contractors and their staff. Since the first
editionin1985,ithasbeengratifyingtolearnthatanumberofconstructionlawyers
have also found the book useful. It is hoped it will also provide a useful reference
for civil engineers, even though it does not address engineering contracts
specifically,Itis,asthetitlesuggests,adictionaryandnothingmore.Ourtreatment
is not exhaustive and we do not claim that the definitions are authoritative. The
book is a vade mecum and not a legal textbook (cid:2) there are a good many of those
and we have included a selected list for further reading.
A broad view has been taken of the words and phrases to be included so that,
althoughtheyarenotallpurelycontractual,theyarealllikelytobeencounteredin
connection with building contracts. With a few exceptions, we decided against
including definitions of Latin terms, because good legal dictionaries are readily
available and we wish to keep this book to a manageable size. The selection of
words, phrases and concepts for inclusion is our own, but we have valued the
suggestions of many practitioners.
Partlyasaresultofthesuggestionswehavereceivedandpartlyduetothemany
changes in law, legislation and building contracts over the last ten years, the book
has substantially changed and, in terms of numbers of entries and coverage,
enlarged.Someofthelengthytablesinpreviouseditionshavebeenremovedleaving
just a few tables and other illustrations which seem to be really useful. All the
original entries have been reconsidered and updated in the light of case law and
legislation, in particular the Housing Grants, Construction and Regeneration Act
1996, the Contracts (Rights of Third Parties) Act 1999, the Late Payment of
Commercial Debts (Interest) Act 1998, the Human Rights Act 1998, the Con-
struction (Design and Management) Regulations 1994, the Scheme for Construc-
tion Contracts (England and Wales) Regulations 1998 and the Civil Procedure
Rules. We have referred to a wide range of contracts including JCT 98, IFC 98,
MW 98, WCD 98, PCC 98, MC 98, ACA 3, GC/Works/1 (1998), NEC, NSC/C,
DOM/1, DOM/2.
Anybookofthiskindwillomitwordsthatshouldbeincludedandviceversa.We
will be glad to receive, care of the publishers, any suggestions for inclusions or
deletions for incorporation in a future edition.
Where terms within a definition have their own entry, this has been indicated as
‘qv’. Related terms and their definitions have been listed at the end of the main
entry as ‘See also’.
Itneedhardlybesaidthatweareindebtedtotheauthorsoftheleadingstandard
textbooks,andthereareanumberofotherpeopletowhomweowespecialthanks.
First to His Honour Judge Peter Bowsher QC for writing a foreword. Next to the
lateProfessorVincentPowell-Smithwhohadtheideaforthisbookandwhoplayed
amajorpartinlayingdownitssolidfoundation.WearealsogratefultoBlackwell
v
Preface
Science for undertaking the third edition and to Jane Oldfield and the staff of the
RIBA Information Unit for digging out useful facts. We owe a special debt of
thankstoAnthonySpeaightQCwhokindlyreadthroughthetextandmademany
helpfulsuggestionsforitsimprovement.Wealone,however,takeresponsibilityfor
the text in its finished state.
Wearegrateful toRIBAPublications forpermission toreproduce someoftheir
standard forms. The front page of the Housing Grants, Construction and
Regeneration Act 1996 is reproduced under the terms of Crown Copyright Policy
Guidance issued by HMSO.
The text is corrected, so far as we are aware, until 31 December 2000, but a few
later developments have been noted at proof stage.
David Chappell, Tadcaster
Derek Marshall, Tadcaster
Simon Cavender, London
vi
FOREWORD
by His Honour Judge Peter Bowsher QC
When starting to read law as an undergraduate, the first law book I bought was
Wharton’sLawLexicon,abookIstillhaveanduse.OnappointmentasanOfficial
Referee, I bought the Penguin dictionaries of Building, Civil Engineering, Architec-
tureandElectronics.IfIhadknownthatthisbookwastheninexistenceinitsfirst
edition,Iwouldhaveboughtthatalso.Itwouldhavebeenanenormoushelptome.
I congratulate the authors and warmly recommend their work.
Peter Bowsher
St Dunstan’s House
Fetter Lane
London
vii

ABBREVIATIONS
ACA 3 Association of Consultant Architects Form of Building
Agreement 1998
ARB Architects Registration Board
ARCUK Architects Registration Council
BPF British Property Federation
CD 81 JCT Standard Form of Building Contract With Con-
tractor’s Design 1981
CDM Regulations Construction (Design and Management) Regulations
1994
CE/99 RIBA Conditions of Engagement for the Appointment
of an Architect
CIC Construction Industry Council
CIMAR Construction Industry Model Arbitration Rules
CIS Construction Industry Scheme
CPR Civil Procedure Rules
EDI Electronic data interchange
DOM/1 and DOM/2 Standard Form of Sub-Contract for Domestic Sub-
Contractors
FIDIC Federation Internationale des Ingenieurs-Conseils
GC/Works/1 (1998) General Conditions of Government Contracts for
Building and Civil Engineering Works 1998
GMP Guaranteed maximum price
ICE Institution of Civil Engineers
IFC 84 JCT Intermediate Form of Building Contract 1984
IFC 98 JCT Intermediate Form of Building Contract 1998
IN/SC IFC 84 and 98 Domestic Sub-Contract
JCT Joint Contracts Tribunal
JCT 63 JCT Standard Form of Building Contract 1963
JCT 80 JCT Standard Form of Building Contract 1980
JCT 98 JCT Standard Form of Building Contract 1998
JCT 87 JCT Management Contract 1987
LLP Limited liability partnership
MC 98 JCT Management Contract 1998
MW 80 JCT Agreement for Minor Building Works 1980
MW 98 JCT Agreement for Minor Building Works 1998
NAM/A IFC 84 and 98 Named Sub-Contractor Articles of
Agreement
NAM/SC IFC 84 and 98 Named Sub-Contractor Conditions
NAM/T IFC 84 and 98 Named Sub-Contractor Tender
NEC Engineering and Construction Contract (formerly the
New Engineering Contract)
NHBC National House Building Council
ix
Abbreviations
NSC/A JCT Standard Form of Nominated Sub-Contract
Articles of Agreement
NSC/C JCT Standard Form of Nominated Sub-Contract
Conditions
NSC/N JCT Standard Form for Nomination Instruction for a
Sub-Contractor
NSC/T JCTStandardFormofNominatedSub-ContractTender
NSC/W JCT Standard Form of Employer/Nominated Sub-
Contractor Warranty
PC Prime cost
PCC 92 JCT Standard Form of Prime Cost Contract 1992
PCC 98 JCT Standard Form of Prime Cost Contract 1998
qv, qvv quod vide (cid:2) indicates a term that has a definition of its
own
PFI Private Finance Initiative
PM Project manager
RIBA Royal Institute of British Architects
SFA/92 and SFA/99 RIBA Standard Form for the Appointment of an
Architect
SMM7 Standard Method of Measurement of Building Works,
7th Edition
SW/99 RIBA Small Works Agreement
TCC Technology and Construction Court
WCD 98 JCT Standard Form of Building Contract With Con-
tractor’s Design 1998
Works Contract/2 Works Contract Conditions
x