MULTIPROJECT
Making sure everything goes your way
We are very pleased with the service provided by Multiproject. Together with my husband I run a construction company and often have several projects running at the same time, so we needed help with their planning and design estimates. Multiproject took full responsibility for preparing a plan for an architect and a schedule of works - helped establish a list of materials, equipment and the necessary number of employees. I highly recommend Multiproject services, especially for those who run multiple building projects at one time.

Chris from London

When carrying out the project we had a huge problem with a client who blamed me and my staff for late work, even though the problems were on his side. Unfortunately, the cost estimate and contract I created was incomplete and not very professional. That's when I decided to look into Multiproject and through them I was able to provide a professional cost estimate and a contract from a new customer and I had complete control over the work. I highly recommend all Multiproject services, are masters at their work in Britain.

John, from Slough
Professionalism from beginning to end - the company's employees are experienced in the realities of Britain's construction growth and helped me to organize my first building project in London.

Paul, London
Cooperation with Multiproject (SE) Ltd. is one of the best investments we’ve ever made, given our long experience in the construction industry. Multiproject (SE) is a reliable, rapidly growing company, managed in a modern way. They provide high quality customer service, expert advice and high level of professionalism of all employees. High range of services offered covers all needs of construction companies working in the UK.

AJA Brothers Ltd.
Bart Kolosowski – Multiproject
I have worked collaboratively with Bart Kolosowski on a number of projects recently. Several things set Bart aside from others in his profession: firstly, as he comes from a background in Construction he has a very thorough and practical understanding of materials, techniques, details and regulations; secondly he has a ‘hands-on’ approach and is prepared to make helpful suggestions and engage in problem solving; thirdly he has genuine interest and passion in the all facets of the industry, in particular in improving efficiency. This approach can only be in the interests of all parties, be they client, Contractor or Architect. We endorse this ethos and believe that investing in Multiproject’s services will provide a valuable return for either Contractor or Client.

Jonathan Holland
As a Refurbishment Contractor I wish endorse Multiproject (SE) Ltd, as quality servicing firm. My first experience with the company is quite extensive over the past two years including helping our Company with many major projects.
With many years of experience they are capable in many areas and finish everything within schedule and budget to the highest level. They have always conducted themselves professionally.
You may with confidence select their services and be assured that the service will be done well and the way it should be.

KS Sypien Ltd.

Introduction to contracts and standard construction forms.


Short guide to contracts.
Contract law does not only refer to large investments. Every day without realising it, we enter into many various contracts, which are not even in written form. Even such an activity as shopping at your local Tesco or off-licence if finalised with a contract. The seller agrees to sell us goods, and we agree to pay for it.
English and Welsh law (Scotland is governed by a separate legal code) defines a contract as a legally binding agreement between two or more parties. For a contract to be formed the following conditions have to be fulfilled:
• There must be a mutual assent between the parties
• The offer must be full and accepted
• The parties must intend for a contract to be legally binding
• Each of the parties must benefit from the agreement( e.g. one party provides service in return for financial compensation – each of the parties benefit)

Written versus oral agreement
Even though the law does not require a contract to be in writing, and, in theory, the verbal agreements can also be legally binding; it is usually difficult to establish what was the subject of the contract and under which conditions was it made.
It is especially important in the construction industry, where the conflicts arise often many months after the contract has been signed. An appropriately drawn contract should not leave any doubts or uncertainties as to the contract’s terms and conditions. The level of complexity of a contract is usually proportional to the amount of responsibility required by such an agreement.

Express and implied terms of contract
The English law divides the contract term categories into two categories: express and implied. Implied terms must be included in the contract and may come from one of the following sources:
• Statuary
• Terms implied by the court in previous similar cases
• Customary terms, generally known to be included in contracts in a particular trade
"The Housing Grants, Construction and Regeneration Act 1996" influences the terms and conditions of construction contracts. This will be widely discussed in another part of this guide. If a construction company supplies goods to the client, they are also bound by "Sale of Goods Act 1979" and "Supply of Goods and Services act 1982". The most important effect of those statutes is the guarantee obligations. The company supplying goods is responsible for all faults and defects of the products and bears costs of its repair or replacement. For instance, a plumber has installed a built in shower mixer. 3 months later the mixer displays a fault and needs to be replaced. If it was the client who purchased the item and supplied it to plumber, the latter may charge the client for replacement. If it was the plumber who supplied faulty goods, even if it was made at client’s request, they have to replace an item for free and cover the additional costs, like the cost of replacing the tiles.

Your own contract or standard form
The contract form should depend on the complexity of the project and be proportional to associated responsibilities and obligations. Even though it is possible to create one’s own contract this involves a danger of loopholes or its drawing up will be expensive. Moreover, all inconsistencies in the contract terms are settled in court to the detriment of the party responsible for drawing up given contract. English market provides many standard construction contract forms, which are eagerly used by the contractors. An additional advantage of standard forms is that procedures and terms of one form can be used on different projects.

Standard contract forms available
The most popular contract types are:
JCT – set of many various forms covering small renovation works through to large governmental projects. Those are the most popular contract forms. Those will be widely discussed in next parts of this guide.
NEC – gaining increasing popularity contract form for middle and large projects. Is it used in all projects related to the construction of Olympic venues.
ICE – used mainly in engineering projects.
GC/Works – used in large governmental projects
FIDIC – the most popular contract form in international contracts.
FMB – highly recommended for small and middle sized companies, due to their comprehensibility and terms favourable for contractors.



The above text is a short guide to basic construction contracts and forms. It should not be referred to as full advice.

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Mini Guides
JCT - Joint Contract Tribunal
JCT is an organisation uniting different groups of professionals within the British construction industry. Members of the JCT include professional associations of architects, surveyors, inspectors, estimators, building contractors and many others. Read More...
Forms of Property Aquisition
In the British construction industry acquisition or commissioning of properties or their elements is defined as "procurement". Available procurement routes include Traditional (lump sum), Design and Build, Construction Management, Management Contracting and others. Please refer to our guide for more information. Read More...
Tender offer from client's and architect's point of view.
Perceptions of the stages of a construction project often vary between the client/architect and the contractor. Investor and architect are involved in the project for months before the actual construction work commences; for a contractor however stages of the project include only the tender offer and construction. Read More...
Gantt Chart
Gantt or Bar chart is the simplest planning method. If appropriately constructed however, it can convey much information crucial for the completion of the project. Read More...
Schedule types
Schedules can be divided into several categories depending on their type and the accuracy of information. This includes Master Programme, Detailed Programme, Purchase schedule and others. Read More...
Risk management
Through use of available supporting software it is possible to include risk management procedures into the schedule. Convenient analysis of possible scenarios for different options of construction work. Read More...
Insurance from the point of view of the contractor
From the contractor’s point of view, construction insurance can be divided into three groups:

- "Employers Liability Insurance" (EL)
- "Public Liability Insurance" (PL)
- "Contract Works Insurance" (CW)

Read More...
Types of insurance in the JCT's contracts
The JCT contracts categorize insurance types legally required by the contract. One of the ways of categorisation is according to the level of cover: "Specified Perils" (SP) and "All Risk Insurance" (AR).
Read More...
Contractor's rights and duties
Contractor’s liability is limited to project between taking it over from the investor and practical completion. Those dates do not have to coincide with the actual construction period. Read More...
Investor's duties
The investor should hold a valid insurance covering the liability for death or bodily injury caused by his or his employees’ actions or negligence. In case of institutional investors PL and EL type of insurance should be appropriate. Read More...
Architect's role
The architect is not a party to a contract. They are employed by the investor as their representative. According to the JCT contracts however, the architect is obliged to make sure that the parties are aware of the insurance requirements and that the necessary policies have been acquired. Read More...
Contract Documents
A contract may include various documents describing the project and stating the cooperation conditions as long as they are approved by both parties. Read More...
Contract Administrator
person responsible for contract management and certifying any additional works, changes, contract extensions, accounts etc. Contract Administrator is usually the architect who supervised the preparation of the contract documentation. Read More...
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...
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