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Are Milestone Payments an Adequate Payment Mechanism in Construction Contracts?

Blog Author: Martin Ewen – Fenwick Elliott In the recent case of Bennett (Construction) Limited v CIMC MBS Limited (formerly Verbus Systems Limited)¹ Court of Appeal considered whether milestone payments in a construction contract constituted an adequate mechanism for payment in terms of the Housing Grants, Construction and Regeneration Act 1996, as amended (“the Act”). Martin Ewen explains more. Facts Bennett contracted to Verbus the design, supply and installation of 78 prefabricated modular bedroom units for a new hotel in London. The units were to…

Contracting for Offsite Construction

Blog Author: Peter Hibberd Offsite construction of buildings is the future but then it has been for over 70 years. It has provided a solution to a problem ever since the first major offsite construction programme involving prefabricated public housing following the 1944 Housing Act. Thereafter, many different types of offsite production, especially for public housing, were developed. Offsite construction is not new or modern, it simply experiences continuous refinement and recurring times of high importance. To manufacture, design, fabricate, and assemble building elements at…

New ‘Coronavirus and JCT Contracts’ article available

JCT has released an article, authored by Peter Hibberd, past-chair, JCT, aimed at contractors, clients and contract administrators to provide information on understanding how the effects of coronavirus impact JCT contracts, what the contracts provide for to deal with such events, and how parties can ensure compliance. With the coronavirus having such an unprecedented impact on construction projects, it is important that all parties to the contract are able to understand the key areas of the contract that come into play, and what action may…

JCT Construct. Learn more about building and creating your JCT contracts online

JCT launches JCT Construct – a new digital contract drafting service

JCT has launched the latest in its range of digital contract services, JCT Construct. JCT Construct is a subscription-based contract drafting system with advanced editing features, enabling users to create and amend JCT contracts in a secure, flexible, and easy to use online environment. With JCT Construct’s powerful tools the JCT contract text itself can be edited, enabling users to add their own amendments, clauses, or other customised text. This is alongside being able to use the same intuitive Q&A process as the JCT On Demand service to fill in contracts comprehensively. The system…

JCT Prime Cost Contract among new digital products on JCT On Demand

JCT has added more contracts from its current 2016 Edition to its On Demand digital service, increasing the range of JCT contracts available to purchase and fill in online. The latest release of new products includes the JCT Prime Cost Contract (PCC), JCT Measured Term Contract (MTC), JCT Repair and Maintenance Contract (RM), and their associated guides. Recently the service was updated to include the full range of JCT Sub-Contracts, which added to the range of best-selling JCT contracts that have been available for some…

JCT Chair to take part in Construction Blockchain Session at Futurebuild 2020

JCT Chair, Richard Saxon CBE, will be participating in the “Construction Blockchain: BIM and Smart Contracts” session at Futurebuild on Wednesday 04 March 2020. The session, hosted by the Construction Blockchain Consortium (CBC), outlines the emerging applications of distributed ledger technology, and includes the presentation of a white paper from the CBC, for which Richard wrote the forword. Delegates will be updated on developments in technologies such as Blockchain, DApps, and smart legal contracts, and why they need to be considered in order to fully…

JCT Interviews…Charles Edwards

In this series we shed some light on some of the key people who are involved with or give their time to support JCT, to ensure that all areas of the construction industry are represented and can contribute to the development of our contracts. We will look at how our interviewees contribute to JCT specifically, and gain their views on JCT’s wider role within the industry. Head of Chambers and Barrister at New Temple Chambers Fellow of the Chartered Institution of Civil Engineering Surveyors Member…

House Lessans, County Down, Northern Ireland

This family home, built on the site of a small farmstead in County Down, Northern Ireland, used basic materials but a high level of attention to detail to create an outstanding quality building on a very modest budget. Designed by McGonigle McGrath Architects, with Hans Crosby as main contractor, it was winner of both the RIBA and Grand Designs House of the Year 2019 and was built on a JCT Intermediate Building Contract. The brief for this project was to create a simple property to…

Digital Technology Will Change the Culture of the Construction Industry

  A vision for the future of the construction industry and society as a whole was shared by Professor Alan Penn in delivering the JCT Povey Lecture 2019, entitled “Our digital future: space and place in a digital world”. Professor Alan Penn delivered his lecture to JCT delegates at 18 Smith Square, London on Wednesday, 20 November 2019. Professor Alan Penn showed that throughout human history, developments in technology have impacted the way in which we have developed our built environment, and how we have…

Construction Contract Mistakes: That Wasn’t Quite What We Meant

Blog Author: Victoria Peckett – CMS When rectifying contracts to fix drafting mistakes, what happens if the parties disagree on what was meant? Construction contracts are often so voluminous that it can be easy for mistakes to creep in when putting them together and for the executed contract not to reflect what the parties think they have agreed in all respects. Often these mistakes can be sorted out by agreement — either the parties will amend the erroneous parts in manuscript before dating them, or…