The JCT Minor Works Building Contracts 2005, Fourth Edition

259 Pages·2006·2.511 MB·English

by  David Chappell(auth.)

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The JCT Minor Works
Building Contracts
2005
i
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The JCT Minor Works
Building Contracts
2005
Fourth Edition
David Chappell
iii
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(cid:2)C DavidChappellandtheEstateofVincentPowell-Smith1990,1999,2004
(cid:2)C DavidChappell2006
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Firsteditionpublished1990byLegalStudiesandServices(Publishing)Ltd
Secondeditionpublished1999byBlackwellScienceLtd
Thirdeditionpublished2004byBlackwellPublishingLtd
Fourtheditionpublished2006
ISBN-13:978-14051-5271-6
ISBN-10:1-4051-5271-0
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Contents
PrefacetotheFourthEdition x
Chapter1 ThePurposeandUseofMWandMWD 1
1.1 Thebackground 1
1.2 TheuseofMWandMWD 2
1.3 ArrangementandcontentsofMWandMWD 4
1.4 Contractualformalities 6
1.5 Problemswiththecontractdocuments 10
1.6 Notices,timeandthelaw 15
Chapter2 ContractComparisons 17
2.1 Introduction 17
2.2 JCTcontractscompared 23
Chapter3 ContractDocumentsandInsurance 24
3.1 Contractdocuments 24
3.1.1 Typesanduses 24
3.1.2 Importanceandpriority 27
3.1.3 Custodyandcopies 29
3.1.4 Limitstouse 30
3.2 Insurance 31
3.2.1 Injurytoordeathofpersons 31
3.2.2 Damagetoproperty 32
3.2.3 InsuranceoftheWorksagainstfireetc. 34
3.2.4 Anewbuildingwherethecontractoris
requiredtoinsure 34
3.2.5 Alterationsorextensionstoexistingstructures 38
3.3 Summary 40
Chapter4 Architect 41
4.1 Authorityandduties 41
4.2 Expressprovisionsofthecontract 51
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Contents
4.3 Architect’sinstructions 58
4.4 Summary 67
Chapter5 Contractor 68
5.1 Contractor’sobligations:expressandimplied 68
5.1.1 Legalprinciples 68
5.1.2 Executionoftheworks 69
5.1.3 Workmanshipandmaterials 80
5.1.4 Statutoryobligations 82
5.1.5 Contractor’srepresentative 82
5.2 Otherobligations 83
5.2.1 Accesstotheworksandpremises 83
5.2.2 Compliancewitharchitect’sinstructions 83
5.2.3 Suspensionofobligations 84
5.2.4 Otherrightsandobligations 84
5.3 Summary 84
Chapter6 Employer 86
6.1 Powersandduties:expressandimplied 86
6.2 RightsunderMWandMWD 91
6.2.1 General 91
6.2.2 Damagesfornon-completion 91
6.2.3 Otherrights 92
6.3 DutiesunderMWandMWD 92
6.3.1 General 92
6.3.2 Payment 93
6.3.3 Retention 96
6.3.4 Otherduties 96
6.4 Summary 96
Chapter7 QuantitySurveyorandClerkofWorks 98
7.1 Quantitysurveyor 98
7.1.1 Appointment 98
7.1.2 Duties 100
7.1.3 Responsibilities 102
7.2 Clerkofworks 104
7.2.1 Appointment 104
7.2.2 Duties 108
7.2.3 Responsibilities 114
7.3 Summary 114
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Contents
Chapter8 SubcontractorsandSuppliers 116
8.1 General 116
8.2 Subcontractors 116
8.2.1 Assignment 116
8.2.2 Subcontracting 117
8.2.3 Nominatedsubcontractors 121
8.3 Statutoryauthorities 123
8.4 Worksnotformingpartofthecontract 125
8.5 Summary 127
Chapter9 Possession,CompletionandDefects 129
9.1 Possession 129
9.1.1 Introduction 129
9.1.2 Dateforpossession 130
9.2 Practicalcompletion 131
9.2.1 Definition 131
9.2.2 Consequencesofpracticalcompletion 138
9.3 Rectificationperiod 138
9.3.1 Definition 138
9.3.2 Defects,shrinkagesandotherfaults 139
9.3.3 Frost 141
9.3.4 Procedure 142
9.4 Summary 147
Chapter10 Claims 148
10.1 General 148
10.2 Extensionoftime 149
10.2.1 Legalprinciples 149
10.2.2 Liquidateddamages 150
10.2.3 Extendingthecontractperiod 152
10.3 Moneyclaims 156
10.3.1 General 156
10.3.2 Typesofclaims 158
10.4 Summary 161
Chapter11 Payment 163
11.1 Contractsum 163
11.2 Paymentbeforepracticalcompletion 165
11.3 Penultimatecertificate 168
11.4 Finalcertificate 168
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11.5 Effectofcertificate 171
11.6 Interestandwithholdingpayment 171
11.7 Retention 173
11.8 Variations 175
11.9 Orderofwork 177
11.10 Provisionalsums 177
11.11 Fluctuations 178
11.12 Summary 178
Chapter12 Termination 181
12.1 General 181
12.2 Terminationbytheemployer 182
12.2.1 Groundsandprocedure 182
12.2.2 Consequencesofemployertermination 188
12.3 Terminationbythecontractor 189
12.3.1 General 189
12.3.2 Groundsandprocedure 190
12.3.3 Consequencesofcontractortermination 199
12.4 Terminationbyeitheremployerorcontractor 200
12.5 Summary 201
Chapter13 Contractor’sDesignedPortion(CDP) 203
13.1 General 203
13.2 Documents 203
13.3 Thecontractor’sobligations 204
13.4 Liability 204
13.5 IntegrationoftheCDP 205
13.6 Contractor’sinformation 206
13.7 Variations 206
13.8 Othermatters 207
13.9 Summary 207
Chapter14 DisputeResolutionProcedures 208
14.1 General 208
14.2 Adjudication 212
14.2.1 Thecontractprovisions 212
14.2.2 TheScheme:startingtheadjudicationprocess 213
14.2.3 TheScheme:appointmentoftheadjudicator 215
14.2.4 TheScheme:theadjudicationprocess 217
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14.2.5 TheScheme:importantpowersanddutiesof
theadjudicator 218
14.2.6 TheScheme:thedecision 220
14.2.7 TheScheme:awardofcosts 221
14.3 Arbitration 221
14.3.1 General 221
14.3.2 Theappointmentofanarbitrator 223
14.3.3 Powersofthearbitrator 227
14.3.4 CIMARprocedure 228
14.4 Legalproceedings 232
14.5 Summary 232
TableofCases 235
ClauseNumberIndextoText 243
SubjectIndex 245
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Preface to the Fourth Edition
The Agreement for Minor Building Works has been the most widely
usedoftheJCTformsofcontract.Since1968,whenitwasfirstissued,it
hasbeenusedconsistentlynotonlyforsimpleshortcontractsofmod-
erate price for which it is intended, but also for much larger projects
forwhichitwasoftennotsuitedatall.Itwasaveryshortformandno
doubt its brevity accounted for much of its popularity. Together with
otherJCTcontracts,itwasentirelyrevisedin2005.Itwasrenamedthe
MinorWorksBuildingContractandthereisaneditionwhichallowsfor
contractor’sdesign(referredtoasMWandMWDrespectively).There
iseveryreasontobelievethatitspopularitywillcontinue.
The apparent simplicity of this contract was, and still is, deceptive.
Thingsomittedmaybeassignificantastheexpresstermsincluded.In
the preface to the first edition, it was remarked that, like all forms of
contract, it must be read against the considerable and growing body
of case law. Unfortunately, the case law continues to grow with little
equivalentdroppingoffofcaseswhicharenolongerrelevant.
Thisbookexplainsthepracticalapplicationsofthenewversionofthis
contractformfromthepointsofviewoftheemployer,thearchitectand
thecontractor.Itisnotaclause-by-clauseanalysis.Theformhasbeen
consideredundertopicheadingswheretheeffectofvariousclausescan
be gathered together. Legal language has been eschewed in favour of
simple explanations of legal concepts supported by flowcharts, tables
andsampleletters.Wherepossible,Ihaveattemptedtoprovideaclear
statement of the legal position in a variety of common circumstances
together with references to decided cases so that those interested can
readfurther.Occasionally,wherethepreciselegalpositionisnotclear,
aviewhasbeenoffered.Thisbookisintendedtobeapracticalworking
toolforallthoseusingMWandMWD.
Overadecadeandahalfhaspassedsincethefirsteditionwasdrafted.
Duringthattime,muchhaschanged.Thiseditionhasbeenheavilyre-
vised to deal with the complete rewriting and re-issue of the MW 98
contractwhichtookplacein2005effectivelyproducingtwocontracts,
onetraditionalasbefore(MW)andtheothercateringforthoseinstances
whenthecontractorisrequiredtoundertakesomedesignworkaswell
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