MULTIPROJECT
Making sure everything goes your way
Architect's Instruction
Instructions given by the Contract Administrator, which are necessary to carry out any changes to the contract. They have to be stated in writing; in case of verbal instructions the architect has to submit a written document within 2 days. Read More...
Provisional Sum
Refers to the estimated sum included in contract to cover the costs of work, materials or equipment where the actual cost is not known at the time of signing the contract. It is most often used when the work specification has not been completed. Read More...
Interim Certificate
Is a certificate issued by an architect authorising the client to a partial payment for the works completed to date, when the payoff is scheduled before termination of work. It is prepared according to cost estimate presented by the contractor. Read More...
PC Sum (Prime Cost)
Is a term used when creating estimates and defining the price of material and resources, when the actual const cannot be established. Read More...
Base Date
Rarely found in smaller projects, due to their short life span. It is the time when the contractor's offer has been prepared to reflect the current market conditions, usually 10 days before the proposal is put forward. Read More...
Extension of Time
Procedure/certificate which allows a change of the completion date agreed by the contract. The certificate can be issued by the Contract Administrator when due to the circumstances beyond contractor's control work can not be completed on time. Read More...
LADs (Liquidated Ascertained Damages)
Often described as a penalty for late completion of work. In fact it is not a penalty, but a compensation for the costs incurred due to late completion. This sum is stated in the contract and should reflect the actual costs for the client. Read More...
Variation
In general, all variations from the range or specifications of the work. Read More...
ADR - 'Alternative Dispute Resolution'
'Alternative Dispute Resolution' - this term refers to all forms of resolving a contractual dispute, which are not judicial proceedings to change the contractual sum. Every such change has to be confirmed by an architect's written instruction. Read More...
Mediation
It is a voluntary procedure, both parties have to agree to such a solution and are not obliged to accept the terms of the agreement. This procedure involves employing an accredited mediator, who organises a meeting of both parties in the same time and premises, but in two different rooms. Read More...
Adjudication
Is a form of resolving contractual disputes existing from 1996 and created especially to the needs of the construction industry. It is included in the JCT contracts as a standard. Both sides have to agree to it when signing a contract. Read More...
Arbitration
An alternative to the court proceedings, established for many decades. Initially this solution was simple and inexpensive, however in the last few decades procedures and costs neared to those incurred by full judicial action. Read More...
Litigation
Is a term to describe formalised judicial proceedings. It is available to both parties of a contract. The only occasion, when parties lose their right to litigation as a consequence of former use of 'arbitration'. Read More...