Assignment Construction Law BSM 575
Added on 2020-03-16
4 Pages627 Words53 Views
Changes arising in the JCT Design and Build Standard Form Contract 2016[Author(s) name(s):]BSM575: Construction Law[Tutor(s) name(s):][Institutional Affiliation:]
1A Construction Contract is an instrument encompassing the agreement between parties; thatis the client or employer and the contractor, outlining the rights and obligations of bothparties in a particular transaction.1 The contractor agrees to supply work and materialnecessary for construction while the client agrees to pay the agreed consideration for servicesrendered. Under the Housing Grants, Construction and Regeneration Act 1996 it isrecognised as an agreement with regard to ‘construction operations’.2 The Joint ContractsTribunal (JCT) provides various standard forms that’s can and have been used in theprocurement stage as well as contract processed in contraction.3 In 2016, the JCT published anew edition of the Design and Build Contract,4 the following summary aims to outline thechanges included in this edition as compared to its 2011 predecessor. The changes introduce Interim Valuation Dates (IVD) which serves the objective ofcomplying with the Fair Payment Campaign by the Government aimed at achieving standardpayment terms within the industry by 2015. For the JCT, the incorporation of IVD aims toprovide a more synchronised and fairer system.5 The IVD is agreed on by parties within thecontract guided by the standard form; they should be in the same day each month during theduration of the project or on the nearest business day where that is not applicable. Where notspecified, the IVD will by default fall a month after the Date of Possession. Another notable change is the simplification of The Contract Particulars in the ArticlesAgreement by the deletion of the Particulars section. Previously this section led to confusionwith regard to Third Party Rights as it set out the warranty as well as third party1 Robert Gordon University, Topic 2: Building Contracts Generally (Robert Gordon University 2017) 12 Housing Grants, Construction and Regeneration Act 1996 Part II, ss 104-107; See, John Adriaanse, Construction Contract Law (4th edn, Macmillan Education 2016) 2-3.3 Built Intelligence, ‘JCT Selecting the Right Contract’ (YouTube, 27 June 2014) https://www.youtube.com/watch?v=Q_z6zxkkGNs accessed 11 October 2017.4 Suzanne Reeves, ‘JCT Design and Build 2016 Contract’ (Wedlake Bell, 6December 2016) https://wedlakebell.com/frequently-asked-questions-jct-design-and-build-contract-2016/ accessed 11 October 20175 Edward Colclough, ‘Payment under JCT 2016: Interim Valuation Dates- another date to remember?’ (FenwickElliot, 3 May 2017) https://www.fenwickelliott.com/blog/contracts-documentation/payment-jct-2016-interim-valuation-dates accessed 11 October 2017
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