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.

Importance of following contractual procedures during construction project delivery.

Introduction
Contracts and contract procedures can be very detailed and complicated in terms of Contractor’s obligations. Lack of knowledge of these procedures often leads to delays, conflicts with architect, contract administrator or client, and, in extreme circumstances, to loss of profit or even financial penalties.
What are procedures
Most of the standard building contracts (JCT, FMB, etc.) have built in mechanisms for avoiding conflicts during projects’ delivery and, when conflict arises, mechanisms to resolve it. These mechanism are called procedures.

They are usually described in the “Conditions” section of a contract. It is very important to get familiar with these conditions prior to starting works on site to avoid potential delays of the project and following penalties.

Knowledge of contract’s conditions is also required during tender preparation as many of them carry financial ramifications.
Example of contractual procedures
We will use procedures of JCT Minor Works contract for additional works, also called Variations, as an example to explain how the mechanism works (JCT MW, 3.6).

Every construction project, especially refurbishments, has changes to Scope of Works during the construction phase of the project. JCT MW contract requires that, prior to any changes, Contract Administrator (CA) issues instructions to Contractor with description of additional works to be carried out (or changed or omitted). It is also required to agree a price prior to the Contractor carrying out the instruction, if possible.

In practice, following these procedures, when additional works are identified by Contractor (or required by Client), the Contractor should prepare a quotation for these works along with estimate of additional time required to complete these works and hand it in to CA for approval. Once the works, their cost and time has been approved, CA should issue the instruction for these works and only then these works should be carried out by Contractor.

There are also provisions for situation when the instruction has been issued prior to Contractor’s cost estimate for additional works. In this case the works will be valued by CA on a fair and reasonable basis using relevant prices in Contract Specification/ Priced Schedule of Works/ Schedule of Rates, etc.
Consequences of not following procedures
In our practice, we often observe, especially with less experienced contractors, that they fail to follow these procedures. They often agree additional works directly with the Client rather than with Contract Administrator and don’t wait for instructions to be issued by CA, which is in clear breach of the contract. Too many times we have seen situations, when Contractor carried out additional works agreed with the Client and not confirmed by Architect’s Instructions. Occasionally these additional works were changed or demolished altogether due to the Client’s lack of technical knowledge or bad design / decision. Most times in these cases the Contractor was refused payment for additional works he carried out as he did not have Instructions issued by CA.
Summary
We hope that the above example demonstrated the importance of following contractual procedures during construction project delivery. We also aimed at demonstrating that not following of these procedures carries a very real risk of consequences, often financial, to the side in breach of procedures.

At our consultancy we have an in-depth knowledge of these procedures and hands-on experience of their implementation as well as execution of non-compliance. We offer free telephone advice and Contract Management services that will ensure your compliance with any contractual obligations. Give us a call today!!

Should you have any questions or comments about this article, or any other contractual matter, please contact Multiproject (SE) Ltd and we will be happy to discuss it.
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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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