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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.

Common terms in JCT contracts.


Part 1.

At any contact with JCT contracts, it is crucial to know the basic terms and definitions appearing in them. In the next few articles we will try to explain terms and definitions, which every contractor should be familiar with.

Terms in JCT contracts:

Contract Documents - contract may include various documents describing the project and terms of cooperation, as long as they are approved by both parties. The most common sets of contract documents include:

  • Project drawings;
  • Project drawings and specification quoted by main contractor;
  • Project drawings and scope of work quoted by main contractor;
  • Project drawings, specification and scope of work, one of which is quoted by main contractor.

The above sets of documents together with contract clauses included in the standard JCT form conclude in a legally binding contract.
All documents included in the contract are equally important. In case If the documents are not fully compatible the general contractor is obliged to report a problem to contract administrator and request a clarification.
Contract Administrator - person responsible for managing the contract and certifying all additional works, changes, contract extensions, accounts, etc. The contract administrator is usually the architect, who supervised the preparation of contract documentation. Even though they are employed by the client, the Contract Administrator has a legal obligation to remain impartial.
Architect's Instruction - instructions issued by contract administrator necessary to apply any changes or alteration to the contract. They have to be issued in writing, or, if given verbally, they need to be confirmed in writing within 2 days. Instructions can be given in order to:
  • change the scope of work;
  • extend contract time;
  • request the reopening of certain previously completed works;
  • request the removal of materials, equipment or certain individuals from the site;
  • request from the contractor to complete works in accordance with contract documentation;
  • request from the general contractor to repair faults;
  • certify expenditure of provisional sums, etc.

The contractor is legally required to follow architect’s instructions as soon as possible. They should not ignore the instructions, regardless of whether they agree with them or not. Instructions can be sent to contractor’s office or given to contractor’s representative directly on-site.

Any arrangements made between the client and the contractor, and not confirmed by the architect are not in any way legally binding and should not be implemented by the contractor.
Provisional Sum - this term defines the estimated sum indicated by the contract, including workforce, materials and equipment, final cost of which is not yet known at a time of signing the contract. It is usually used, when the specification of works has not yet been completed or when the scope of work requires previous demolition works. "Provisional Sum" is not legally binding and the contractor will be compensated according to actual costs, regardless of the amount indicated in the contract.
Interim Certificate - certificate issued by the architect authorising the client to partial payment for completed works before the final completion. It is prepared according to a valuation provided by the general contractor. After the receipt of such certificate the contractor may invoice the client, and the invoice needs to be paid within 14 days.
Sources:

Chappell D., 2008. The JCT Minor Works Building Contracts 2005. 4th edition. Oxford. Blackwell Publishing
Chappell D., 2003. Understanding JCT Standard Building Contracts. 7th edition. London. SPON Press.
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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
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Tender offer from client's and architect's point of view.
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Insurance from the point of view of the contractor
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- "Public Liability Insurance" (PL)
- "Contract Works Insurance" (CW)

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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).
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Contractor's rights and duties
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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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