What’s Wrong with Retention?

Blog Author: Peter Hibberd Retentions meet a real need and aren’t a problem in themselves – it’s how they are administered that needs fixing The clarion call for no retention has persisted for many years and has once more initiated action. This time BEIS undertook a consultation “on the practice of cash retention under construction contracts”, with its outcome imminent. Meanwhile a private members’ bill from Peter Aldous received its first reading but its second is delayed until October. The cynical might consider this a…

Joint Names Clauses Create Own Problems

Blog Author: John D Wright  – JD Risk Associates Summary Standard contract forms such as JCT have a long history of words and phrases being adjusted to meet the evolving demands of business and to develop more compatibility with associated businesses such as insurance. The latest adjustments under JCT 2016 provide further clarity but the fundamental question of who bears the risks in any given situation continues to exercise the minds of all who advise on such contracts. JCT 2016: the final touches? The move…

JCT Standard Building Contract 2016: Simply Fair

Understanding contractual provisions can be complicated but a solid legal framework that also reflects fair payment guidance is essential For payment to work effectively it is necessary for the parties to act properly. Facets of acting properly include good faith, appropriate skill and knowledge of the payment process. Where these attributes exist, few problems regarding payment should occur. Contract authoring bodies for their part can only specifically address the payment process but the simplicity or otherwise of that process has an impact on the ability…

MW 2016 Insurance: Not Sure How to Complete Clause 5.4C Particulars?

Possible solutions for you to consider: The following is an extract from ‘Insurance under the Minor Works Building Contract 2016’. This extract outlines possible solutions where clause 5.4C is to operate i.e. those circumstances where clauses 5.4A and 5.4B are not appropriate. The full text is available at https://corporate.jctltd.co.uk/insurance-under-the-minor-works-buildingcontract-2016/. Clause 5.4C is to apply where clause 5.4A does not apply and clause 5.4B cannot apply because the relevant insurance is not available. As a consequence one has to make other arrangements and which clause 5.4C…

Insurance under the Minor Works Building Contract 2016

Introduction Carrying out building works regardless of their size and scope involves risks not only for the builder but the employer. The principal purpose of the building contract is to allocate those risks. That is done by way of the contract terms including the provision of indemnities and requirement for insurances. This note deals with the Minor Works Building Contract 2016 (MW) and Minor Works Building Contract 2016 with contractor’s design 2016 (MWD). It looks first at the insurance provisions dealing with the Works including…

JCT Design and Build Contract 2016: Simply Fair

At the time of the government’s consultation on Building a Responsible Payment Culture I commented on the balance between legislative intervention and the freedom to contract. At that time it was debatable whether further legislative intervention in contractual payment was desirable. Other commentators also expressed doubts. However the driver then, which still prevails, was that the payment process still needs improving. Therefore, it is not wholly surprising that we have seen further legislative change and government guidance as regards fair payment, albeit not as extensive…

JCT celebrates success of latest Edition at Parliamentary Reception

JCT’s Construction Industry Parliamentary Reception, celebrating the success of the release of the JCT 2016 Edition of Contracts was held yesterday (5th May 2017) at the House of Commons, London. Since its launch, the JCT 2016 Edition has been welcomed positively by the industry, with an unprecedented level of sales through the JCT online store, www.jctltd.co.uk. Victoria Peckett, chair of JCT’s Drafting Sub-Committee and head of construction at CMS-Cameron McKenna LLP, addressed guests, identifying three main areas that were important in the creation of the…

JCT Design and Build and JCT Standard Building Contracts 2016 – Part II

JCT has published the new edition of 2016 Design and Build Contract in conjunction with the Design and Build Sub-Contract for use with it. The purpose of this note is to outline the principal changes from the previous 2011 edition and answer some frequently asked questions. Part I of this article was published in the February edition of JCT News. How is Loss and Expense for delay dealt with? Section 4 which deals with loss and expense still requires prompt initial notification of claims, or…

JCT Minor Works 2016: payment made easy

Our latest JCT 2016 Edition blog explains the new payment process in the JCT Minor Works Building Contract… The interim payment process need not be difficult. Actually, it is quite straightforward under the JCT framework for payment, which complies with the requirements of legislation and reflects the fair payment charter. An easy way to understand the process is to recognise that the Interim Valuation Date (a defined term in the contract), which also applies to JCT sub-contracts and sub-sub contracts, is the key factor in…

JCT Minor Works 2016: insurance provisions

Our latest JCT 2016 Edition blog looks at the insurance provisions in the Minor Works Building Contract… The JCT Minor Works Building Contract (Minor Works) is designed for smaller, basic construction projects where the work is of a simple nature. Accordingly, the insurance provisions are shorter and simpler than those in contracts such as the JCT Design and Build Contract. However, it is still very important to carefully consider the insurance provisions contained in Section 5 of the contract and ensure that they meet the…