CA | Mind Map

4 main types of building contracts
1. Standard Building Contract
  1. For larger works where most of the works have already been designed.
  2. Contractors design portion available
  3. Detailed contract provisions
    1. payment
    2. extentions of time
  4. employer to provide either
    1. drawings and bill or quantites
    2. drawings and sepecification/work schedule
  5. Building has already been designed and builder just builds the scheme
  6. various forms of pricing mechanismn
  7. at lease 3 versions of the contract
    1. With bills of quantites
    2. without bills of quantities
      1. contractor is given a set of drawings and a specification
    3. with approximate quantities
      1. not acurate
      2. quantities will change but the rates will remain
  8. structure
    1. reticals
      1. the agreement
      2. works required
      3. drawings and specification
    2. articles
      1. scope of works
      2. contract sum
      3. contract admin, qs
      4. form of dispute resolution
    3. contract partoculars
    4. attesation
      1. deed
        12 years liability
      2. Underhand
        6 years liability
  9. There are specific provisions in JTC SBC which the employer may defer the date for possession by up to 6 weeks, if the relevant entry is made in the contract particulars.
2. Intermediate Form
  1. used when
    1. proposed works are simple involving basic trades and skills
    2. project does not involve complex services
    3. project does not involve complex specialist works
    4. when fairly detailed contract provisions are required
3. Design & Build
  1. used where employer has defined his requirements
  2. where the contractor is to carry out the design and construction
  3. employers requirement documents
  4. contractor to provide priced contractors proposals
  5. provisions are as detailed as standard form contract
4. Minor Works
  1. up to half a million
  2. used when works are simple in nature
  3. employer provides drawings and / or a specification.
  4. it has less detailed provisons
    1. not very good for extentions of time, payment provisons etc.
standard building contract is the template upon which all the other forms are based upon.
1. The clauses for the other forms are either added or deducted from the clauses in the SBC
Performance bond
1. A mean of insuring a client against the risk of the contractor failing to fufil contractural obligations to the client.
2. usually set at 10% of the contract value
3. can help a client to overcome difficulties that have been caused by non performance of the contractor.
  1. can be used to help find a new contractor to complete the works.
JTC have 3rd party rights but dont usually get used as colleteral warranties brings in 3rd party rights
Payment Provisions
1. if you put an application for payment in. the employer does not put in his own notice or pay less notice than the contractor is entitled to the amount of money he has asked for.
Extension of time
1. Notice of delay by contractor to say:
  1. materials (circumstances)
  2. Cause or cause of delay
  3. identify relevant events
  4. expected date to complete
2. Contract Administrator to make their own assessment
  1. within 12 weeks after PC
  2. irrespective of any notice given by the contractor
3. loss and expense applications
  1. Contractor to make application as soon as it becomes apparent that regular progress has been affected
  2. identify relevant matters
  3. details of actual loss and expense may follow
  4. usually includes
    1. heads of claim
    2. prolongation costs
    3. head office overhead cost
    4. disruption
4. Relevant events
  1. variations
  2. advise weather
  3. delay on the party of a nominated subcontractor
  4. delay in giving the contractor possession of the site
5. A delay notice is required to be served by the contractor inline with the contract provisions
construction claims fall into two main categories
1. common law damages
  1. where there is a breach of a contract
  2. to put the injured party in the same position as they would be in if the contract has been performed
  3. 3 main elements of common law damages
    1. causation
      1. must be a direct link between the breach of contract & damage suffered
    2. remoteness
      1. can only claim losses which have arised naturally from the breaches
    3. duty to mitigate loss
      1. claimant is not permitted to allow their loss to mount up
  4. must show that there is a breach of a contract term.
  5. Proof of claim
    1. burden of proof (criminal)
    2. standard of proof beyond reasonable doubt on balance of proabability (civil)
2. claims under the contract
Liquidated Damages
1. must be a realistic estimate of damages suffered
2. cannot be a penalty
tendering
1. Single stage selective tendering
  1. Restricts the number of tenders being invited to submit bids.
  2. Pre-selecting a limited number of contractors to tender for the work
2. Two stage selective tendering
  1. negotiated tendering
  2. The purpose is not to involve the contractor with responsibility for design. lt is to get the main contractor involved, in an advisory capacity, before the scheme has been fully designed.
  3. forming a contract price at the end of stage one, based on the tendered preliminaires, overheads allowance and provisional sums for all other elements of the work.
  4. used when
    1. the building works are of very complicated nature;
    2. the magnitude of the work may be unknown at the time for selection of the contractor
    3. an early completion date is paramount
    4. the professional team wish to make use of the cotractors expertise when finalizing the design
3. negotiation
  1. the employer has worked with the contractor before.
bills of quantities
1. define the whole of the contractor’s obligation for quality and quantity of work.
certificates
1. two catogries
  1. certify the quantity of works done to date on which payment is calculated
  2. certify that an event has taken place (interim certificates)consist of those that record an event or non event
    1. Cerificate of practicle completion
    2. Certifcate of final completion
    3. certifcate of non completion
All main standard forms of contracts give power to the CA to order the exclusion from the works of specified persojns. This extends beyond the contractors own emplyees to include the employees of subcontractors.
materials on site
1. The value of unfixed materials and goods intended for works, whether they are on or off site, may be included in an interim certificate. If this is done, then the ownership of these materials and goods will pas to the employer as soon as the amount is duly paid.
liquadated damages
1. If possession is not then given on the date specified, the employer will lose the right to recover liquidated damages from the contractor in the event of late completion.

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	Created by nikki jones almost 6 years ago