CONTRACTUAL PROCEDURES IN THE CONSTRUCTION INDUSTRY

Cover......Page 1
Contractual procedures in the construction industry......Page 2
Contents......Page 6
List of figures......Page 14
List of tables......Page 15
List of boxes......Page 16
Preface......Page 17
Acknowledgements......Page 19
Table of relevant statutes......Page 20
Part 1 Contract law......Page 24
The nature of law......Page 26
Sources of english law......Page 27
The courts......Page 31
The lawyers......Page 34
Expert witnesses......Page 35
Modernisation......Page 36
Some legal jargon......Page 37
Definition of a contract......Page 40
The elements of a contract......Page 41
Offer and acceptance......Page 42
Form......Page 43
Unenforceable contracts......Page 44
Misrepresentation......Page 45
Express and implied terms......Page 46
Limitations of actions......Page 47
The unfair contract terms act 1977......Page 48
Agency......Page 49
Discharge under condition......Page 51
Frustration......Page 52
Assignment......Page 53
Remedies for breach of contract......Page 54
Liquidated damages......Page 55
Quantum meruit......Page 56
Settlement of disputes......Page 58
The reasons why disputes arise......Page 59
Claims......Page 60
Adjudication......Page 65
Arbitration......Page 66
Litigation......Page 75
Alternative dispute resolution......Page 76
Institute of commercial litigators......Page 78
Part 2 Procurement......Page 80
The standard form of contract for building works......Page 82
Employer and contractor......Page 83
Main contract forms......Page 84
Joint contracts tribunal (JCT) forms......Page 85
Other main forms of contract......Page 91
Subcontract forms......Page 94
Other forms of contract......Page 95
The housing grants, construction and regeneration act 1996......Page 96
Other contractual documentation......Page 97
Appointment of consultants......Page 98
Contract strategy......Page 99
Contracts in use survey......Page 100
Major issues to be resolved......Page 105
Employers’ essential requirements......Page 107
Procurement management......Page 108
Coordinated project information......Page 109
Conclusions......Page 110
Contract procurement......Page 111
Measurement contracts......Page 112
Cost reimbursement contracts......Page 114
Contractor selection......Page 116
Contractual options......Page 120
Review......Page 132
Contract selection......Page 134
Employers’ requirements......Page 135
Factors in the decision process......Page 136
Conclusions......Page 147
Contract documents......Page 150
Form of contract......Page 151
Contract drawings......Page 152
Contract bills......Page 155
Schedule of rates......Page 158
Contractual provisions......Page 159
Design and build......Page 161
Advantages and disadvantages......Page 162
Choice of design and build......Page 163
Contractual arrangements......Page 164
Selection factors......Page 165
Use worldwide......Page 167
Public private partnerships......Page 169
Form of contract......Page 170
Conclusion......Page 174
Procurement in the twenty-first century......Page 175
Relevant published reports......Page 177
Clients’ main requirements......Page 178
Major considerations (see also chapter 7)......Page 179
Procurement selection......Page 180
Current considerations......Page 181
Risk analysis and management......Page 188
Other industry comparisons......Page 192
Lean construction......Page 193
Lean manufacturing......Page 194
Production and management principles......Page 195
Lean production......Page 196
Supply chain management......Page 197
Lean-thinking construction......Page 198
Case studies......Page 200
Conclusion......Page 201
Part 3 Process and parties......Page 202
Partnering......Page 204
Categories of partnering......Page 206
Evaluating partnering......Page 207
Summary......Page 210
Supply chain management......Page 211
The underlying principles of supply chain management......Page 213
Marketing......Page 217
Customer satisfaction......Page 220
The development process......Page 221
Feasibility and viability......Page 225
Demolition......Page 228
Environmental impact assessment......Page 229
Neighbourhood environmental data......Page 230
Parties involved in theconstruction industry......Page 232
Employers......Page 233
Landowners......Page 236
Professional advisers......Page 237
Contractors......Page 242
Regulation......Page 246
Professional bodies......Page 249
Construction associations......Page 252
Industry skill needs......Page 253
Communication principles......Page 260
Site meetings......Page 262
Site diaries......Page 264
Planning and programming......Page 268
Constructing the team (latham report)......Page 272
Rethinking construction (egan report)......Page 274
Rethinking construction (achievements, next steps and getting involved, 2002)......Page 277
Construction best practice (cbpp)......Page 279
Constructing excellence......Page 281
The construction industry......Page 284
Health and safety in the construction industry......Page 285
The construction industry......Page 297
Environmental impact assessment......Page 304
Conclusions......Page 308
Part 4 Standard form of building contract......Page 312
Introduction, articlesof agreement, appendix......Page 314
Articles of agreement......Page 315
Settlement of disputes – adjudication (article 5)......Page 316
The appendix......Page 317
Quality of work during construction......Page 323
Statutory obligations, notices, fees and charges (clause 6)......Page 324
Provisions for use where the appendix states that all the CDM regulations apply (clause 6a)......Page 325
Work, materials and goods (clause 8)......Page 326
Person in charge (clause 10)......Page 329
Clerk of works (clause 12)......Page 330
Performance-specified work (clause 42)......Page 331
Costs of construction......Page 333
Variations and provisional sums (clause 13)......Page 334
Variation instruction – contractor’s quotation in compliance with the instruction (clause 13a)......Page 339
Contract sum (clause 14)......Page 340
Materials and goods unfixed or off site (clause 16)......Page 341
Loss and expense caused by matters materially affecting regular progress of the works (clause 26)......Page 342
Certificates and payments (clause 30)......Page 344
Time factor of construction......Page 353
Practical completion and defects liability (clause 17)......Page 354
Partial possession by employer (clause 18)......Page 355
Date for possession, completion and postponement (clause 23)......Page 356
Extension of time (clause 25)......Page 357
Determination by employer (clause 27)......Page 362
Determination by contractor (clause 28)......Page 365
Determination by employer or contractor (clause 28a)......Page 368
Works by other parties......Page 370
Assignment and subcontracts (clause 19)......Page 371
Works by employer or persons employed or engaged by employer (clause 29)......Page 372
Nominated subcontractors (clause 35)......Page 373
Nominated suppliers (clause 36)......Page 380
Injury and insurance of the works......Page 383
Injury to persons and property and indemnity to the employer (clause 20)......Page 384
Insurance against injury to persons and property (clause 21)......Page 385
Insurance of the works (clause 22)......Page 387
Erection of new buildings – all-risks insurance of the works by the contractor (clause 22a)......Page 388
Erection of new buildings – all-risks insurance of the works by the employer (clause 22b)......Page 390
Insurance of existing structures – insurance of the works in or extensions to existing structures (clause 22c)......Page 391
Joint fire code – compliance (clause 22fc)......Page 392
Contributions, levy and tax fluctuations (clause 38)......Page 394
Labour and materials costs and tax fluctuations (clause 39)......Page 398
Use of price adjustment formulae (clause 40)......Page 400
Value added tax – supplemental provisions (clause 15)......Page 403
Construction industry scheme (clause 31)......Page 405
Clauses of a general nature......Page 408
Interpretations, definitions, etc. (clause 1)......Page 409
Contractor’s obligations (clause 2)......Page 411
Architect’s instructions (clause 4)......Page 413
Contract documents (clause 5)......Page 414
Settlement of disputes – adjudication – arbitration – legal proceedings (clause 41)......Page 416
Part 5 Subcontract conditions......Page 420
Documents......Page 422
Action under the 1991 procedure......Page 423
Tender NSC/T: part 1......Page 424
Tender NSC/T: part 2......Page 426
Agreement NSC/A......Page 427
Agreement NSC/W......Page 428
Subcontract conditions NSC/C......Page 429
Section 1: Intentions of the parties......Page 430
Section 2: Commencement and completion......Page 432
Section 3: Control of the works......Page 434
Section 4: Payment......Page 436
Section 4A/4B/4C: Fluctuations......Page 439
Section 6: Injury, damage and insurance......Page 440
Section 7: Determination......Page 443
Annexes......Page 445
Domestic subcontract conditions......Page 446
Appendix To DOM/1......Page 448
The JCT Domestic subcontract conditions (DOM/1C)......Page 451
Part 6 other contract conditions......Page 452
Agreement for minor building works......Page 454
Clause 3: Control of the works......Page 456
Clause 5: Statutory obligations......Page 457
Clause 8: Settlement of disputes......Page 458
Practice note M2......Page 459
JCT Intermediate form of building contract......Page 462
Intention of the parties......Page 463
Possession and completion......Page 464
Control of the works......Page 465
Payment......Page 467
Statutory obligations, etc......Page 468
Determination......Page 469
Interpretation of the contract......Page 470
Annexes......Page 471
Professional bodies in the built environment......Page 472
Cases of interest......Page 474
Contract and procurement websites......Page 504
Bibliography......Page 506
Index......Page 510